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Summary1 - Presentation

2 - Main products

3 - Advertising campaign

4 - New export market

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7-12

13-23

24-30

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5 - Appendices 31-40

Presentation

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Presentation

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Name of the company: Rose

Date of creation: 31/10/2008

Headquarter: 43 rue de Ponthieu 75008 Paris

Localisation: headquarters in Paris, production place : Grasse

Subsidiaries: New York, San Francisco, London, Amsterdam, Barcelona, Rome

Size: 120 employees

Philosophy: Beauty by Nature

Paris Rome New York

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Presentation

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A native from Grasse, Mrs Loos Clergeau founded Rose officially in

2008, but the idea was in her mind for many years.

She decided to develop her idea in 2007. She started by launching a

business plan and a communication plan in order to raise funds.

Her idea was to create a company devoted to natural cosmetics, with

products made in France by small local producers.

Due to her motivation and perspicacity she won the titles «Prix de

l’entreprenariat 2008» and «Créatrice d’avenir» titles that reward

brilliance and initiative.

Anais Loos Clergeau

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Thanks to this award she won 50 000€ which allow her to develop

partnership with local producers such as EARL LA VIOLETTE located

in Grasse, well known for its production of high-quality flowers.

Then Anais Loos Clergeau decided to pay a tribute to her city by giving

the name Rose to her company. As we know, Grasse is well known for

its flowers and in particularly because of its roses production.

In September 2008 she was able to show samples to cosmetic shops,

in order to develop partnerships with distributors. One month later she

had already created a partnership with Sephora

Grasse - France

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Presentation

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At the beginning in 2008, the products were only sold in France, but as the sales were increasing every month, Rose decided to implement subsidiaries in the natural market. Firstly, the company choose to established an office in London, capital of fashion and luxury goods. The company employed 4 executives to study and understand the English market. Rose made a first partnership with a famous luxury retailer. As it was a success the board-directors took the decision to stay permanently.

2008In 2009, the company continued to develop its influence and made partnership with Spain, Italy, Netherlands.

2009In 2010, a report showed an important number of orders via rose website from the United States, so Rose choose to open subsidiaries there.This fast development allow the company to be very quickly well known and recognized in the world as a quality company which sales a large range of cosmetic products.

2010In 2012 Rose plan to conduct a study on the Asian market, because the luxury goods demand was increasing faster than expected. For example, according to some experts China will soon be the first country in luxury goods consumption.

2012

Timeline

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Rose is currently a medium size company, which has only 120

employees but with an important growth: between 2009 and 2011 the

turnover has more than doubled. In 2011 the turnover reached 15

million.

The Company

Firstly, the headquarter was located in Grasse, but it was not very

convenient to develop partnership with international distributors, so the

company decided to relocate to Paris in 2010.

Location

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2009 2010 2011 2012

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Presentation

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Organization Chart

Anais Loos ClergeauChief Executive Officer (CEO)

Elaine GuillonChief Marketing Officer (CMO)

Luocong SunChief Financial Officer (CFO)

Yaxin ZhouProduct Manager (PM)

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Main Products

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Main Products

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We have decided to offer to customers a small range of products

to customers, but only to offer the best. All our products are made

in factory in the south of France and only use all natural and

organic products, in order to manufacture high quality products.

The fact that Rose is the leading brand of natural cosmetic

products in French pharmacies is very demonstrative of the

French cosmetic market as a whole. Women look for products

that are both beautiful and good for their health. Using our

products is an enjoyable experience beyond their efficacy

because everything we create is attractive and elegant, from the

textures of our cream formulas to their fragrances.

French nature

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Main ProductsMoisturizing creamCrème de Rose, is a special product for the brand, it was the first one to be launch.

Four years after its creation, it’s still our number one product. This multi-purpose

cream nourishes, repairs, and protects skin thanks to its unique concentration of

precious plant extract a silicon-free formula. This is why we decided to start

exporting the cream the Rose abroad, as it is really representative of the quality of

our products. What is a moisturizing cream? Creams are generally consisting of two

basic components, an oil phase and an aqueous phase. A cream is formed when the

oil phase is successfully emulsified into the water, producing an emulsion of stable

and solid consistency. As Rose is only using good quality products, the result is that

we are producing an excellent quality cream, we only use distilled mineral water, and

premium oils, from rare and organic herbs, to make sure we only give the best to our

clients. The factory is located in the South of France, a place famous for its

knowledge of perfume, and its ability to extract essential oil from herbs and flowers.

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Main Products

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Functions of the “Crème de Rose” creamA cream is used to deliver and hold nutrients and medications on

the skin's surface. Both the oil and aqueous components can be

used as a carrier. The skin has a limited capacity to absorb many

oils and is responsive to surface medications such as herbal

extracts, and to vibrational energies such as Flower essences.

This is why our creams are not saturated with products, Rose

knows that it is not by adding considerable amount of active

elements that our cream will be efficient, but by the right dose of

every elements. This led to the efficacy of Crème de Rose, directly

related to the quality of the added ingredients, their concentration

and how well either the oil or the water deliver ingredients on the

skin's surface and facilitate its absorption into the skin.

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How the herbal and flowers extracts are prepared is crucial in determining their efficacy in our cream. Our factory

receive fresh delivery of plants and flower from the region every morning, because for a top quality finished product

the raw materials also have to be good quality.

We have decided that we will start by launching two different version of crème de jour on the Chinese market.

Functions of the “Crème de Rose” cream (next)

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Main Products

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A 24HR Moisture Cream for dry and very dry skin. Re-hydrates,

de-thirsts, energizes. This “lact-aroma” emulsion, a combination

of 8 plant Oils (Lupin, Peas, Green Tea, Acacia, Almond, Coconut,

Oat, non-GMO Soy) with moisturizing and fatigue-fighting benefits

and Essentials Oils with relaxing properties, offers a long lasting

hydration by helping recreate a moisture reserve. It draws up and

diffuses water continuously throughout all epidermal layers

(Pomegranate, 5 Plant Saps). Enriched with Plant Oils, it

nourishes the driest skin types. Hydrated for 24 hours and re-

energized, skin feels supple and comfortable. For morning and

night. Apply morning and evening to face and neck previously

cleansed with a cleansing lotion. Avoid contact with eyes.

Crème de Rose (pot)

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A 24HR Moisture Cream for sensitive skin. Re-hydrates and calm

sensitive and dry skin. This lotion is a combination of 2 extracts of

plant Oils (Lavender and Almond) with moisturizing benefits and

calming properties, offer a long lasting hydration and calm the

skin by offering a free paraben solution. It draws up and diffuses

the calming lotion continuously throughout the epidermal layers.

Hydrated for 24 hours. For morning and night. Apply morning and

evening to face and neck previously cleansed with a cleansing

lotion. Avoid contact with eyes.

Crème de Rose (bottle)

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Advertising Campaign

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Advertising Campaign

A new ad campaign will show our potential customers how we

position Rose, and the “Crème de Rose” that we plan to sell on

the Chinese market. Those advertisements will be the most

important aspect of our marketing plan. Brand positioning, as well

as product or service positioning, can be expressed in many

ways, from a simple slogan to an entire campaign. We have

decided to collaborate with a really famous actress, Zhang Ziyi, to

reflect the prestigious side of our brand. The colors uses in our

brand are also very light, to give an impression of light and

elegance.

New Ad Campaign

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Advertising Campaign

First we identify the target audience, we decide whom the message is for, in

the case of Rose the main targets are the middle and the upper class, the

new generation, who now have access to western products, and are

attracted by consumption. Though the current target who is interesting for

Rose is the upper class. They are educated, married, and live in cities, which

already represent a large number of women. And also the hundreds of

millions of women who today are not middle class but who will soon be

joining the existing consumers After we assessed the competition, and we

discovered that if there is no Chinese equivalent brands to Rose, there is

also a lot other brand. Those brands are Korean, American, French … but

the common factor is that luxury beauty products in China are often sold by

foreign brands.

Planning an advertising campaign or Structuring the communication mix.

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Advertising Campaign

Regarding the legal and regulatory environment, the rules are

less restrictive in China, and if a product meets the French

legal requirements it can be sold on the Chinese market

without any problem. There is no need to adapt or to change

the product by itself. We changed the name of the products, so

Chinese customers can memorize it easily, but it was not a

legal obligation.

Legal regulations

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Advertising Campaign

What would the marketer like the audience to do after they

get the message? For us it is simple, we want to aware

customers that our Crème de Rose will be soon available

in the Sephora shops. Make a big event of that, so people

get exited about this event too. Our marketing objectives

are of course to increase the sales of Rose, and succeed

to position our products. And at the same time build a

strong network with our distributor Sephora. The first

action that we will take to increasing brand awareness will

be to conduct an advertisement campaign in magazines.

The response sought

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Advertising Campaign

appealing to the audience. In our case we thought women’s magazines,

and in particular Vogue, and Bazaar. They both are read by the upper

class, our main target. We know that women who read those magazines

have money and are attracted by fashion and brand. First those

magazines are expensive for the Chinese population, and then they only

present brands and expensive clothes and cosmetics, so women reading

Vogue and Bazaar are our exact targets. We know that having an

advertisement in this magazine is a good investment.

The Target

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After, we choose the message. Concerning the source’s attributes, what about the

product or company rose want to communicated. We want to show an appropriate

image of the brand, all the ideas of the culture, what the brand Rose represent have

to be presented. And what is the most appropriate medium, which one is the most

Advertising Campaign

Our financial department calculated the price for printing our commercials on

Vogue and Bazaar and regarding the fact that the target is perfectly defined, it

appears to be the best investment. (€30,000 per page) The cost per thousand

readers is really reasonable. Our budget is determined by a fixed percentage

of sales. We hope to cover 15% of the market of luxury moistening creams

during the first quarter of 2012. And as in France and all the other European

countries we achieved this objective, we think it can be possible in China too.

And thanks to the European sales we can afford to pay for an quite expensive

campaign in China. About the time for our advertisement, we have decided to

start the promotion one week before the Chinese New Year, as during this

period fortunate people can offer Crème de Rose as an expensive an valuable

gift, because during this period a lot of gifts will be exchanged.

Advertising budget

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Advertising Campaign

After the launch of the campaign we will have to collect

the feedback. We will probably carry out a market

research to monitor how effective the promotion was.

Does the people know what is Rose? Do they know the

name of our products? “A report called "Marketing to

the New Chinese Consumer”, presented at Global

Advertiser Week in Beijing by the World Federation of

Advertisers in association with Forbes Insights

explores how major brands are approaching China's

emerging consumer, based on a survey of 310 China-

based marketing executives and follow-up interviews. “

Feedback

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We know that eight out of ten China based marketers

said the biggest opportunity to grow in China is to go

beyond saturated cities like Beijing and Shanghai. But

we still think it is important to start by those big cities.

Like all foreign brands will start by implementing their

brand in Paris. In fact in China there is more than a

hundred cities with a population exceeding 1 million of

inhabitants, so it let plenty of other cities, not only

Beijing and Shanghai. Which make more

opportunities for us, and less chance to face a

saturated market in the next few years.

Advertising Campaign

The Chinese Government is also very committed to

developing the western part of the country in order to

minimizing the gap between the urban rich east cost

and the remaining hundreds of millions living in poverty

in the countryside. “According to McKinsey, half of

China's 100 largest cities will experience at least 50%

growth in consumption between 2008 and 2015, and

25 will double their consumption.” This is why it the

perfect moment for our brand to settle in China, in a

moment where all western brands are new.

Feedback (end)

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Advertising Campaign

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Chinese advertising

Advertising Campaign

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Rose advertising campaign“ Rose Products soon to be available in your Sephora shops ”

Advertising Campaign

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Rose advertising campaign“ Rose Products soon to be available in your Sephora shops ”

New Export Market

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Rose is already successful in France and in the European markets, sales

margin have doubled in only four years. Moreover the new settlement in

the United States enables the company to increase more the turnover.

Since its establishment Rose received good feedback from the United-

States. Rose has only been introduced to the American market in

September 2011 but is already well implemented on this market, it

reaches the same level of its competitor established there for many

years such as Chanel. Due to these advantages and increasing turnover

rates, Rose has the financial capacity to settle on a new market. After

having made studies and a business plan the company decided to

explore the Asian market.

Why does Rose want to explore an other foreign market ?

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New Export Market

New Export MarketM

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Total population: 1,338,299,500Population growth rates: 0.5%

GDP growth: 10,3% GDP: $6 273.49 billions

GDP per inhabitants: $4 677 GDP by sector: industry 46.8%, services 43.6%, agriculture 9.6%

GNP: $10.09 billionsAverage gross salary: $4,260 yearly

Imports of goods and services: 22,3% Exports of goods and services: 26,7%

Goods trade balance: $181,8B Imports of goods: $1,396B

Exports of goods: $1,577.8B Exchange rates (CNY per usd): 6.77

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Production and Income

Trade

Population

China

China is known for its large population, vast

territory, and rich natural resources. China has a

population of more than 1.1 billion, an area of 9.6

million square kilometers, and identified reserves of

150 different minerals. The Chinese economy has

been growing fast since 1949, and especially in

recent decades, the implementation of economic

reform and the adoption of an "open door" policy

Chinese market

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New Export Market

have exercised a great influence on Chinese economic development. China's GNP has grown from about RBM 360

billion in 1978 to nearly RBM 1,800 billion in 1990. The growth rate of real GNP in each of these years exceeded

about 9%, and so as the growth in foreign exchanges.

This economic development has resulted in a

significant increase in the living standards of the

Chinese people and have generated a growing

demand for imported goods. In response to this

huge and rapidly increasing market potential,

overseas companies have been fervently pursuing

opportunities in the consumer goods and service

markets. Louis Vuitton, Chanel and many other

Strong foreign goods demand

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household names established subsidiaries in important cities such as Beijing, Shanghai and Guangzhou. The

influence of western habits has been key in this development, as have rising average incomes in China. Today, with

fast increasing income and consumer purchasing power, China presents unprecedented opportunities for small and

medium sized foreign consumer goods.

The Chinese market has a fast growing purchasing power.

And an increasing demand for quality western products.

China's increasing economic strength and living standards

have created a market with huge purchasing potential.

China will soon be the largest consumer of luxury goods.

China has now realized that importing is the way to develop

the economy and raise consumption. The rapid and

continuing increase in imports shows clearly that China is

not only a big market for exporters now, but also is

potentially a huge market with many business opportunities.

And French luxury products benefit from a good image.

The opportunities of this market

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High competition from cosmetic brands such as Chanel, Lancôme...

Important Counterfeit products market

Important duty rates on luxury foreign goods.

Complicated administrative process.

The threats of this market

Rose already has a significant experience in several countries, such as

in Europe, but also in the United states. The company which already

has an established reputation offers a range of high quality products.

Moreover there are few Chinese cosmetic brands to compete with.

The strengths for Rose in the Chinese market

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In order to succeed Rose has planned to recruit Chinese employees

and to develop an Asian department, because it is very important to

understand the special needs of Chinese people, and to be aware of

cultural differences. Products will also be adapted to the Chinese

market, the name of the company will be translated into an easily

pronounceable word for Chinese people : Bai Hua. The company has

already created new packaging especially for the Chinese market. It

is also important to select an adapted distribution channel, because

in China

The strategic plan

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the relationship between a brand and its distributor does not work in the same way as in Europe. That is why it is

essential to build a strong network with local retailers. Rose also planned to launch a massive advertising campaign

after the Chinese new year, which starts the 23 of January.

Appendices

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