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It's A Beautiful Day
Jennifer Vishnevsky

Everyone loves a little primping and pampering, so focus some of your first-quarter sales efforts on tapping into the fun beauty market.

Cha-cha-cha-changes. The iconic Avon Lady has been the face of the cosmetics company for over a century, but the industry is seeing another face. According to Avon, which uses door-to-door salespeople to sell its beauty products, an increasing number of men have joined the industry. The good news is, there’s a whole new market out there for beauty products. What was once a female-focused genre is seeing a boom among men, both young adults and baby boomers alike. And the industry seems bulletproof. The U.S. cosmetic and toiletries sector generated more than $10 billion in revenue last year from 13,000 beauty-centered stores nationwide, according to Ibis World Reports. So if you’re looking to beautify your portfolio, consider following these tricks of the trade.

Shave and a Haircut … Plus More

He might not have a full head of hair, but that didn’t stop Brian Guest from walking straight into the Lise Rivard salon in Toronto. “It caught my attention because she went the extra mile. She did a makeover when she bought the building. It was intriguing to see somebody go that far with style and design,” says Guest, president of Mediacation (asi/267029).

So, one day when he had some extra time, he pulled in and got a haircut. Guest knew that the salon had a lot of unexercised potential. “The owner had elevated the salon very well. I felt that she was ready to tackle other challenges, such as revenue streams,” he says.

Guest introduced the idea of not just selling shampoos and related items, but expanding into the spa and lifestyle areas. “We began profiling the customers and gathering information. We knew their birthdays, likes and dislikes and information about their style. It was helping us find proper ways to advertise to these clients,” he says. By doing some research, he and the owner created a list of items to start off with. “For example, we’ve got about 10 different items going into the spa category. We’ve put in different branded aromatherapy oils, as well as a number of other items that are part of that,” he says.

Since the salon is independent, Guest knew that it was important to take baby steps. “I began with one simple item. I told her that it would help her get her brand out there and it would act as an additional source of revenue. One of the tricks was not to go too big or too small. Now she’s handing as many of the branded items over the counter as she is shampoos,” he says.

Guest found that the items have been very effective for bringing clients back for repeat business. “We have various teas that have gone into branded mugs. People can wake up, have the tea, see the mug and decide to come in for another massage,” he says. “The products are helping to drive sales and remind people of the other services that are available,” he says.

Surprisingly, one of the popular items is unrelated to the industry. “We branded lever-type wine openers. One purpose is as an appreciation gift, but also as a seasonal gift. The owner has gotten a few clients from these because people are using them at holiday parties: ‘Look at this beautiful wine opener; here’s the salon that gave it to me,’ ” Guest says.

With these successes under their belts, they have gone even further. “We took one weekend and we made an agreement with our local debosser to take the backs of the chairs and create some artwork. We built a welcome message throughout the whole salon,” he says.

Another initiative resulted from the client’s difficulty in getting customers to book pedicures, manicures and massages. Guest decided to have employees’ smocks printed with a message, like “half off your first massage.” Within a month, the client’s biggest problem was that she needed to hire another employee to keep up with demand. “Right now, off of this salon alone, we have exceeded $100,000 in sales,” he says.

Guest is ready to branch out. “We’ve built some point-of-sale material. This salon has also been a great opportunity for us because we’re essentially advertising ourselves as well. Customers are coming into the salon and sitting down with their stylist. Just about every time, I’ve gotten a referral from their customers. For us, without even expecting it, we’ve been getting referrals in different markets, like education, finance and telecom,” he says.

Marketing Makeover

For about 10 years, Adrian Constantin worked for a company that specialized in promotional marketing and package design. Many of the accounts that he created at the time operated in the cosmetics and beauty industry, with Givenchy as his largest account. “I was actually part of the team that launched Very Irresistible Givenchy in Canada back in 2003,” he says. As a team member, he quarterbacked the development of many point-of-purchase materials that were used for the launch. “I find that beauty companies are very demanding of their marketing, and I always enjoy a good creative challenge,” he says.

Later in his career, Constantin went into business with his brother and decided to join forces with Proforma, launching Proforma iPrint Group Inc. (asi/491647). Shortly after, he was presented with the opportunity of working with Michael Germain, a global cosmetics and beauty company. “They were revamping their media kits and collateral materials, and I jumped through a few hoops to help them reproduce the rich black and vibrant gold embossing that’s become their signature look and feel,” he says.

Constantin acquires all of his clients through a combination of direct marketing and direct sales initiatives. “I start every client-acquisition campaign with an in-depth analysis of my objectives for the campaign. This includes defining the type of work that I want to create, the economic value to both parties and the target audience for the campaign. I am very selective about the companies that I target. I never buy lists; I always create my own. This gives me an opportunity to learn about the companies that I want to partner with and their markets,” he says.

One of his strengths is assembling strong proposals that provide a value-added service for a prospect. “I am genuinely interested in learning about my clients’ businesses, so I ask a lot of questions, which helps me build such proposals, often after a single meeting. I find that this approach works well with companies in the beauty industry, and it opens the door to learning more about a prospective client and takes the relationship to a whole new level very, very quickly,” he says.

Constantin also spends a considerable amount of time navigating social media sites and LinkedIn in particular, to learn about the people that he is about to market to. “In doing so, I often discover information that helps me build an entire campaign. It also helps me to build a real rapport with prospects, particularly when I get on the phone with them,” he says.

He has carved out areas of specialty including direct marketing, promotional marketing and commercial printing. “I have assisted my clients with everything from their uniforms, their signage, and gift-with-purchase programs to trade promotions and recognition awards,” he says. He has sold posters, catalogs, folders, pamphlets, apparel, food gifts and more. “The process for selecting products and solutions that we offer is highly dependent on our relationship with the client and the role we play in their marketing. Some clients outsource more of their marketing processes than others. We also have clients that employ huge marketing departments, and the workflow at such companies is very political in nature. As a solutions provider, it’s my job to understand all of these predicaments to integrate at every level with every client, every single day,” he says.

Focusing on marketing has led to a big payoff for Constantin. He has generated about $250,000 in business from his beauty clients. Recently, he worked on a direct marketing campaign for an upscale Calgary based medical spa, targeting their inactive clients. “We developed a 5-inch by 7-inch multi-page brochure that focused on providing a visual and emotional sense of what the client’s experience at the spa would be like,” he says. He included a gift-with-purchase promotion, which was a pre-payment towards various private-label products that the client markets, like lotions and scrubs. The client also offered additional discounts if the client brought their spouse. “The idea was to turn this into a family experience,” he says. The campaign delivered a 200% return and a 30% response rate. “Our objective is to become a real-time extension of our clients’ marketing departments and to shape every aspect of their marketing, printing and promotional merchandising,” he says.

Referrals Paint a Pretty Picture

For Dina Heidger, owner of Brand Central Promotions (asi/145001) and the 2012 Advantages Sales Rep of the Year, breaking into the beauty market came down to her husband’s connections. “He referred me to the marketing people he knew at a division of Johnson & Johnson. They were launching a new product line targeted toward plastic surgeons. Since my background is product design and branding, marketing people seem to have confidence in working with me. Fashion and beauty also go hand in hand, so fashion customers will always want beauty-related giveaways,” she says.

On the product launch project for Johnson & Johnson, new sales reps needed bags, doctors’ offices needed patient giveaways and front-office staff needed wearables promoting their new product. “Brand Central Promotions produced about 5,000 rhinestone-studded T-shirts along with several other giveaways for patients, and it was a huge success. I also like to present custom products, either a complete custom idea or a different way to brand a more standard product,” says Heidger. Her largest beauty customer has ordered more than $100,000 in the past few years. “As with all customers, the trick is to find the quality customers who have a substantial budget for marketing and promotions,” she says.

A Corporate Connection

As mentioned, if you’ve tried pitching more hair brushes and nail files than you care to count, it might be time to take a different path. The beauty market has many layers and more importantly, many needs. So why not pitch a technology item to a cosmetics store? Danny Rosin, president of Brand Fuel Inc. (asi/145025), has successfully worked in the retail sector with The Body Shop and Burt’s Bees by focusing on corporate connections.

For example, Brand Fuel produced items for the outside sales force at Burt’s Bees. “They’re a massive retailer. They have sales reps who are trying to sell to other retail stores and partners. We looked at what they take with them to go into battle,” says Rosin. The reps were taking samples and examples of what displays might look like in the retail environment.

Brand Fuel took a different angle. “We took their marketing collateral and put it in a presentation kit. Then we inserted a nice journal book that was eco-friendly because that’s the message of their company,” he says. The distributor also recognized the importance of spotlighting Burt’s Bees flagship product, its lip balm. “We said, let’s put the presentation on a USB drive that looks exactly like the lip balm. Now that’s the single thing they use; they don’t use printed collateral anymore,” he says.

Thousands of the lip-balm-shape USBs have been handed out internally and used at shows. “The sales team was looking to differentiate themselves in a crowded space. Everyone is trying to get on the shelves at Walgreen’s. We produced a sophisticated package, not just a flyer and a sample,” he says.

Burt’s Bees ended up becoming one of the distributor’s top 50 clients. “They’re owned by Clorox and now that we have those guys as clients, the next stop is to knock on Clorox’s door. You start out small, work really hard and win them over,” Rosin says.

Brand Fuel has also mirrored this success by nurturing a new relationship with The Body Shop. Rosin’s friend, who is involved with his charity organization Band Together, is the interim CEO at the corporation.

From the CEO, Rosin learned that The Body Shop was looking to open up new stores and create a new look. “How could we be a part of that?” he wondered. It also turned out that The Body Shop was releasing a limited-time chocolateflavored product. “They wanted us to come up with something creative, so we pitched different scenarios for them. One was similar to Beatlemania, which they liked. We went and found some graphics that were similar to that type of musical genre with screaming fans who had fantastic frenzied interest in the product. Now it’s Chocomania,” he says.

The Body Shop executives plan to mail the press material and full-size samples of the product. Brand Fuel also pitched a fondue set, which The Body Shop will use to get the buzz out.

Naturally Beautiful

When Nina Shatz was approached about a project for a beauty line, getting involved was a no-brainer. “It was one of the coolest things I’ve ever done in the business. It was for a product named Befine. It was sold in stores like CVS and Target,” says the director of Red Ball Promotions (asi/346567).

At the time, Befine was part of the natural product movement and launched day- and evening-wear products. “They came to me looking for a gift with purchase; not as high-end as something from Clinique, but still pretty substantial,” says Shatz. She put together a case with a zipper in the front that was printed on both sides. “If you flipped it upside down, it would be a different color and zipper. So one side was day and one side was night,” she says.

The cases were packaged with samples of the product and put in all the stores. Red Ball produced about 5,000 cases and made $25,000 off the gift with purchase.

Shatz also worked on another project involving shot glasses that were displayed at a trade show. “We made smoothies with ingredients that were in the skin-care products. We took the beauty out of the box,” she says.

And with all of the different beauty products pushing to be at the forefront of natural and antiaging makeup these days, she recommends thinking outside the usual recommendations. “You can’t just think about selling people a nail file or a mirror. Everyone’s been there and done that. People are looking for something that represents their brand, but isn’t necessarily part of a brand,” she says. For example, instead of pitching a brush for a hair product, you might want to do a silky smooth cloth. “Your hair could be as silky and smooth as this cloth. Look outside of what the product really is,” she says.

If you’re targeting a market with a difficult budget, pitch some reasonably priced items. “A lot of the people who work in salons are independent contractors. Aside from limited funds, they also have limited clientele. They have difficulty finding reasonably priced giveaways in a salon, so focus on that,” she says.

And if you haven’t had any experience in the market, start off small. “Look at a beauty magazine and cold call some of the smaller businesses listed. They need bags, labels and packaging. If you’re trying to get started, focus on those companies instead of those like Clinique or L’Oreal. People get their hair and nails done. Everyone knows someone who goes to a spa. Open your mouth and network,” she says.

Jennifer Vishnevsky is a staff writer for Advantages.

Beauty Dos and Don’ts

Do: Recommend tasteful items with a high perceived value, whether they are expensive or not. “the beauty market is a luxury market,” says Heidger. “One of my clients wanted something inexpensive, yet nice, to give to customers, and it needed to be long-lasting for women. I recommended a full-color, salon-style nail file, the large oval type with the foam-padded center. The item was not expensive, yet it was high-end for a nail file – something ladies would use and keep for a long time.”

Do: Focus on packaging. How will it be presented? Can you have the item placed in an organza bag or have a custom ribbon tied around it?

Don't: Choose items that look cheap or can be found at a discount store. “Don’t be afraid to recommend something a bit beyond their budget if it is of better quality,” says Heidger.

Don't: Ignore trends. Although there are classic items that always sell, many of your customers will want to be privy to the most popular items for each season.

Trend Tracker

According to edward Schack, cosmetics industry veteran and principal of eeS Cosmetics Solutions, Inc., the beauty market remains strong. “the cosmetic and personal-care industry fares pretty well. Women may not have $200 or $300 to go out and buy a lavish outfit, but they have a little bit of money to just change makeup slightly and keep up with some of the trends,” he says. “If a woman has an emotional bond and a product gives her the impression that she’s looking better, she’s going to feel better and continue to go out and purchase that product.”

One of the hottest sectors for the industry is the men’s market. American consumers spent $4.8 billion on men’s grooming products in 2009, according to euromonitor International. In 1997, the figure was half that – $2.4 billion. The fastest-growing men’s segment is skin care, with the category growing more than fivefold over the period, to $217 million from $40.9 million.

“Men want to take better care of themselves and look younger at the same time. We’re seeing many large global companies catering to the men’s market by adding new products and new designs,” Schack says.

Going green also plays a huge part in purchasing decisions. According to Datamonitor, 28% of consumers deliberately avoid certain cosmetics or toiletries because of fears about certain ingredients, and 39% are somewhat or extremely concerned about parabens or petrochemicals used in beauty product formulations. “Organics have been very strong over the last several years. Consumers are starting to understand that natural ingredients in general are much better for them. Our younger generation is very concerned about reducing their carbon footprint. They are purchasing products that are as green as possible,” he says.

Schack believes that the major market trend for 2012 will be natural products that incorporate biological activity. “For example, blueberries have antioxidants and they’re anti-inflammatory,” he says. However, the claims have to be provable, as consumers are savvier than ever. “they want to hear the science behind the claims,” he says.



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