SALES AND DISTRIBUTION MANAGEMENT PROJECT

SALES STRATEGY OF A COSMETIC

SUBMITTED TO: MS. RIYANKA

SUBMITTED BY:

● YASH GOYAL – TY A- 3097

● DIKSHA GOYAL- TY B – 3121
● NAMAN BANSAL – TY B- 3150
● NIKITA VIRMANI- TY D- 3353
● RAJVIK AGARWAL- TY D- 3359
● TARUN RAMESH BABU- TY D- 3384

 ACKNOWLEDGEMENT
We would like to acknowledge the hard work done by each and every member of the team
first and foremost, following which, we would like to thank our professor for the course, Ms.
Riyanka, and our director, Dr. Adya Sharma for enabling us to use the resources made avail-
able and guiding us through the journey that was this project. This project is a unified body of
work, and we hope to evaluate it is as much of a pleasure as it was to make.

Due regards,
Team Luxe Lip co.



 INDEX

Sr. Topic Page

No. Number
1 Introduction: The Product 4

2 Distribution Channels 7

3 Sales Strategy and Process 8

4 Sales Promotion 9

5 Sales Training Process 11

6 Selling Process 13

7 Related Costs 16

8 Target Market 17

9 Summary 19

 INTRODUCTION

Luxelip co. Introducing Luxelip, our 5-in-1 lipstick pencil, curated exclusively for your lip
care needs. This pack of wonder has enticing shades ranging from flaming red to subtle
nudes. It is enhanced with the moisturizing properties of Jojoba Oil and the goodness of vit-
amin-e that gives your lips the much-needed nourishment they need. It"s not just your ordi-

nary lip makeup product, it"s a lip pencil by you through thick and thin! Our idea to create a
vegan, clean, cruelty-free 5-in 1 lipstick is to help all the beauties out there to have the best of
the natural chosen ingredients and formula to take care of that beautiful skin. The Luxlip lip-
stick is the right fit for you if you have been looking for a highly pigmented versatile lipstick

 sealed with the properties of a moisturizer that keeps your lips from drying. While locking in
the moisture, it fixes any damage and holds the softness of your lips even the during peak
winters. Just carry this one sleek stick with five striking shades, open the cap of the stick and
gently pop the color bullet and push it in the bottom of the stick, play with the desired color
and you are ready to make that confident entrance, wherever you go, on the go. Its soft but-
tery formula will help you glide through your day and be the star of all your meetings and
vacations. Our Luxlip is the best travel-friendly product you can ask for because with just one
stroke of this creamy, moisturizing beauty and you"re all set to create different looks every
single time. With our latest launch, the Luxlip, bid farewell to multiple makeup lip products
and say hello to a cruelty-free, vegan, hassle-free, travel-friendly, easy-to-carry pack of love!

Lipstick Market Dynamics

Trend
The use of powder for the lips, especially in matte lipsticks is the latest trend followed in the
lipstick market. It is gaining huge momentum among women, owing to matte finish and
smooth & creamy texture. It contains hydrating ingredients including vitamin E, glycerin, and
coconut oil, which keeps the lips pigmented. It gives a natural look to the lips as it needs to
be dabbed with the fingertip, leaving a nice color stain on the lips.

Driver
Inclination toward e-commerce beauty websites is one the major factors driving the lipstick
market, globally. E-commerce platforms have transformed the beauty industry in the past few
years. It is majorly due to increasing internet penetration worldwide.
Globally, the internet usage rate in 2017 stood at 48%, with more than 3.47 billion internet
users, out of which female users accounted for 45% share.
Apart from this, the lipstick market is registering major demand for lipstick products from
working women population. The maximum share of lipstick was constituted by the age group
between 20-40, among women. It is due to change in their lifestyle and rising appearance
consciousness. A lipstick is considered as a need among working women which gives them
confidence to their personality.

 Opportunity
Inclination toward social media marketing is one of the major opportunities being exhibited
in the lipstick market. Social media marketing is becoming increasingly popular in the pro-
motion of beauty products, which includes lipstick, eyeliner, kajal, blush and other cosmetic
products. It allows to personally interact with existing and potential customers, build brand
awareness, directly target customers with marketing campaigns, and measure the conversion
rate from social media users to lead generation.

Lipstick Market Competitive Landscape

In the recent past, players in the lipstick market have particularly focused on partnership and
facility expansion to expand their customer base and increase their growth opportunities. For
instance, in January 2019, Avon Products Inc. announced the partnership with Rappi Inc., an
on-demand service delivery provider and launched the availability of over 100 products to its
customer in Sao Paulo, in Brazil and Bogota and Medellin, in Columbia.
Some of the key players in the lipstick market include L’Oréal SA, Shiseido Company Limit-
ed, Revlon Inc., Avon Products Inc., Oriflame Holding AG, Coty Inc. Amorepacific Corpora-
tion, The Estée Lauder Companies Inc., Christian Dior SE, and Inglot Sp.

 DISTRIBUTION CHANNELS

1. Internet retailing in collaboration with leading online stores- Myntra and Nykaa
Collaborating with a leading beauty store helps our brand to access an established market for
our
Product . Moreover, it shall help us to reduce our overhead costs. Selling online will
eliminate the need for maintaining expensive retail premises and customer-facing staff, al-
lowing
us to invest and capitalize in better marketing and customer experience via the internet.

2. Direct selling via our Instagram retail store

By leveraging the selling store features of Instagram, we aim to connect with the tech-savvy
demographic, appeal to the visual interests of the viewers, engage with our prospects and
leverage the content generated by others (including customers and influencers).
Building brand awareness and familiarity is our key to #soft sell” the product since consumers
naturally follow brands, they identify with which ultimately drives more product conversions,
considering the Instagram integration algorithm. During the launch period, our key strategy is
to
offer our product to budding influencers and bloggers as PR hampers in light of getting better
visibility and garnering trust amongst the audience.

3. Offline selling via supermarkets, department stores

Offline selling shall assist our target audience with a personalized buying experience and
shall
cater to the market segment that does not has an inclination towards online buying owing to
past
experiences. It shall ensure less product return rate and no time delivery. At first, during the
launch period, our primary focus will be to ensure availability of the product in the met-
ropolitan
cities- Kolkata, Mumbai, New Delhi, Bangalore, Ahmedabad, and Pune.

 SALES STRATEGY AND PROCESS

The sales strategy is the plan or procedure that will be implemented to attain the sales objec-
tives. Our strategy aims to facilitate the company's meaningful positioning of itself and its
offerings.

These are the steps we have taken for our sales strategy:

Establish a sales strategy and begin with a milestone.

Create specific consumer target profiles
Incorporate SWOT analysis
Define market strategy
Establish success-oriented revenue goals
Use distinct positioning
During our product's first year on the market, these are the primary distribution channels:

Direct selling via our Instagram retail store- By utilising the selling store capabilities of
Instagram, we hope to interact with the tech-savvy audience, appeal to the visual interests of
the viewers, engage with our prospects, and harness the material created by others.

Offline selling via supermarkets and department stores - Offline selling will provide our
target audience with a personalised shopping experience and will cater to the sector of the
market that does not favour internet purchasing due to previous negative experiences.
It will ensure a lower rate of product returns and on-time delivery. Initially, during the launch
time, we will prioritise ensuring product the availability in major urban areas.

Internet retailing in partnership with India's premier beauty retailer Nykaa- Collabora-
tion with a prominent beauty retailer facilitates our brand's access to an established market. It
allows us to invest and capitalise on superior internet-based marketing and customer service,
hence reducing our overhead costs and reducing our expenditures on costly retail space.

 SALES PROMOTION

Discounted Pricing: Adding a discount to your goods significantly increases sales since con-
sumers assume they are paying less than the product's actual value. During celebrations, we
intend to give seasonal discounts of up to 15%, including Bonanza Diwali specials, Rakhi
discounts, Karwa Chauth offers, and many others. As consumers prefer to spend more on fes-
tivals than on ordinary days, offering discounts during festivals can significantly enhance our
overall revenue.

Product Giveaways: This is an excellent marketing strategy since, as we all know, "Every-
one likes a freebie." Giving out a product allows potential customers to test our goods and
encourages individuals to make a purchase. It contributes to the brand's memorability and
provides value and a reason to purchase. We want to execute this strategy using Instagram,
our primary engagement tool. We want to execute this strategy using Instagram, our primary
engagement tool.

Coupon Giveaway: As we anticipate significant sales through online channels, delivering

virtual coupons to our customers will make the promotion more exclusive and encourage
people to visit our online store. This strategy will help us maintain satisfied customers and
win back any dissatisfied ones.

Buy More, Save More Combo: This strategy encourages customers to purchase more of your
product. For our combination price, we intend to sell a single item for ₹799 and a pair of

items for ₹1400. Thus, clients are satisfied as they receive a reasonable discount, and we gain

from increased sales. It's a win-win situation.

Instagram advertisements: Instagram ads have been shown to be beneficial, as they in-
crease brand awareness, website traffic, and lead generation. According to Instagram, 75% of
Instagram users who are inspired by sponsored posts take action. We can easily select our
target population, which boosts the likelihood of converting visitors into buyers. We have de-

 cided to post sponsored content 7 days in a month, which will cost around Rs.16000/per
month and approximately Rs. 2 lakhs annually.

Banners & Posters: Since we also engage in physical retail through department shops and
supermarkets, banners are required. We intend to sell our product in urban regions, so hang-
ing banners and posters in crowded and public areas must attract people's attention to our
product. We will distribute banners to stores that frequently sell huge volumes of our mer-
chandise. This will aid in both the promotion of our goods and the maintenance of positive
relationships with our retailers.

Promotion through emerging influencers: In today's society, individuals are easily influ-
enced by celebrities. We intend to promote our product through Instagram influencers in the
beauty and care business. As our product falls under the category of Beauty & Care, we have
chosen this form of advertising because it quickly attracts the interest and trust of the general
public.

Collaboration with Salons: It is common knowledge that there is no better venue to market
beauty items than in a salon. We've partnered with well-known salons in our targeted urban
areas. We have chosen to pay a predetermined percentage commission on the sale of each
product. This is another ethical and cost-effective technique for promoting and selling our
products. This will aid in spreading the word about our product through word of mouth.

 SALES TRAINING PROCESS

The cosmetics industry is very competitive. Customer-facing personnel must be aligned with
and exude the brand's values, as well as be intimately knowledgeable of each product's pri-
mary strengths and differentiators, in order to stay ahead of competitors and effectively drive
sales each season. Customers also seek out beauty specialists for their in-depth product
knowledge, the latest beauty trends, and application expertise. It is a challenging profession
that requires people to continually absorb new information and develop new skills, in addi-
tion to knowing how to sell and communicate successfully with clients.

For the Sales Training Process, we will use the ACMEE technique.
Aims- The training's goal is to instil efficient sales strategies as well as product knowledge to
assist point-of-sale workers in providing individualised services to consumers seeking beauty
advice and closing more sales.
Contents- The training's material will be separated into three sections:
(a) Knowledge - When it comes to buying for beauty, customers want to compare active in-
gredients, formulae, textures, and colours, among many other differentiators.
Assisting your sales colleagues in becoming knowledgeable about your goods so that they
can deliver on your brand's strengths and promises, widen their sales pitch, and develop trust
with clients.
(b) Skill - Modifying the sales pitch based on the consumer, determining how and when to
use sales-related marketing rules and offers, and designating which other items to up-sell and
cross-sell will considerably increase sales.
(c) Attitude - The customer is king, therefore always be a good listener, understand the
client's needs, and remain confident and passionate about the selling process.

Methods - We will use classroom/conference training to teach sales trainees about selling as a
functional component, management practises of selling, various underlying difficulties of
selling, creativity in selling, the role of selling in cross-functional interaction, and so on. The
lecture technique creates a participatory atmosphere in which trainees may actively partici-
pate by listening to lectures, taking notes, asking questions, clarifying doubts, and receiving
ideas. Written materials and instruction manuals are frequently distributed to participants.

 Some instructors employ audio-visual tools to enliven lecture sessions and pique trainees' at-
tention.
After the selection process, the shortlisted applicants will get Classroom Training. The train-
ing will be led by the head of training and development, who will split the themes of instruc-
tion among the specialists on his team. Following the orientation session for chosen candi-
dates, the training will take place. Depending on the severity of the pandemic, training will
take place in either offline or online classrooms. On a quarterly basis, Rs 50,000 has been al-
lotted for training.
Evaluation- Because our organisation is new, the focus of our training programme is on pro-
ductivity. Salesperson reaction, knowledge acquisition, behavioural change/learning transfer,
organisational results, and generating more leads, discovering more prospective clients, and
closing more sales pitches.

 SELLING PROCESS

The selling process of a salesperson is a series of procedures that he or she follows when sell-
ing a product. The selling process is a comprehensive cycle that begins with finding con-
sumers and finishes with a contract being signed with them. It is especially important in B2B
sales, since the sales cycle is longer and the deal may take longer to complete. The selling
process in B2C may be shorter. The selling process aids in improving business sales and, as a
result, sales income and profits. The selling process is comprised of seven steps:

1. Prospecting: The initial step of the sales process in which the salesman discovers po-
tential consumers. It is the starting point for the rest of the sales process. Before pre-
paring a sale, conduct research to identify people or businesses that are interested in
the product/service. In our business, the prospect category will be youthful and upper
or upper-middle-class clients with enough disposable cash to spend on their appear-
ance. Our prospective consumers are women between the ages of 20 and 55.

 2. Pre-approach: The firm performs research on a prospect, learning about the cus-
tomer's needs and gathering any relevant background information about the individual
or organisation. Before making a sales call, we gathered information about potential
clients and got to know them.
3. Approach:- The approach is the step in which the salesman meets the customer for the
first time. This is your opportunity to create a solid first impression. The introduction
of the product, explanation of the goal, and development of a relationship with the
prospect are critical. The significance of first impressions in establishing the trust of a
consumer cannot be emphasised. First and foremost, you must establish rapport with
the consumer. A company might take several tactics; nevertheless, we are using the
product route. We will provide a free trial to assess and evaluate the product across
several platforms.
4. Presentation refers to the process in which the salesman discusses how the product
will meet the demands of the consumer and provide value to his or her life. It will be
offered on a variety of channels, including internet retailing in cooperation with pre-
mier beauty retailer Nykaa, direct selling via our Instagram retail store, and offline
selling through supermarkets and department stores.
5. Objections Handling: During this stage, the salesman clarifies all of the customer's
uncertainties and queries, as well as all of his objections to acquiring the items. When
dealing with objections, keep the following points in mind:
Recognizing our clients' input and giving solutions by respecting their points of view.
Inquiring about their views to discover if there are any possible solutions.
We'll also be anticipating and responding to what consumers say. One such situation
is as follows:
Objection: I'm sorry, but I don't have time today.
Response: Not an issue. I'd be pleased to meet with you later this week for a ten-
minute talk.
6. Closing: The process of inviting a consumer to place an order for a product. To per-
suade the prospect to close, provide an additional incentive, such as a free month of
service or a discount. There is hardly no standing room: Declare that time is of the
essence to create urgency. 'The price will go increase after this month,' for example, or

 'We only have sixty things left.' Additionally, provide an Early Bird discount to the
first few customers of the goods.
7. Follow-Up: This is the final stage of the sales process in which the salesperson con-
tacts clients to ensure their satisfaction and to build a relationship with them in order
to do business with them again. Customers will be contacted through email or the on-
line buying site to provide feedback on the goods.

 RELATED COSTS

Particulars Type of Expenditure Amount Annual

Machinery One Time Cost 10,00,000/- 0
Land Operative 50,000/- 6,00,000/-
Purchase One Time Cost 15,00,000/- 0
Electricity Operative 10,000/- 1,20,000/-
Maintenance Operative 25,000/- 1,50,000/-
Miscellaneous Operative 20,000/- 2,40,000/-
Salaries Operative 3,00,000/- 36,00,000/-
Marketing Operative 30,000/- 3,60,000/-

It is important to state that the amount required to start lipstick line production business in a
country like India. There are slight differences in the area of incorporating the business in the
city of your choice (Tier 1/ Tier / Tier 3), in terms of paying employees and in renting or leas-
ing a facility for the business etc.
Here, we have taken the case of starting the business in a Tier 1 Metropolitan City.
The approximate key expenses we are expected to make when starting a lipstick line produc-
tion business are as follows.

 TARGET MARKET

Our goal in developing a lipstick that is vegan, clean, and cruelty-free is to assist all of the
world's beauties in having access to the best natural ingredients and formulations for caring
for their gorgeous skin.

Our company wants to appeal to youthful, upper-middle-class consumers who are rich and
prepared to spend money on their appearance. The brand intends to concentrate more on col-
or cosmetics and skin care, which helps it successfully appeal to a wide age range of 20 to 55
years. This group's members are mostly focused on preserving their beauty and avoiding the
early indications of aging. They have a reputation for being innately fascinated by industry
trends and have a clear preference for them.

Through a comprehensive marketing mix, influencer marketing, extensive social media cov-
erage, cordial PR relations with up-and-coming influencers, and a prominent display space in
specialty stores, beauty salons, and supermarkets, our brand has captured the attention of
youth and upper or upper middle class societies.

Expected sales and Forecasting technique

The projection of future sales revenue is known as a sales forecast. In order for a company's
leadership to effectively manage day-to-day operations and future-proof its strategic vision,
sales forecasting skills are essential.We will predict the sales for our product based on histori-
cal data, the state of the current sales pipeline, and market trends.

We must be aware of a few key product-related heads in order to anticipate sales in a seam-
less, efficient, and precise manner. The sales target is one of these heads. The current objec-
tive for our company is to bring in enough money to cover overhead costs and go beyond the
point at which the costs of manufacturing and distributing the product become profitable.

We'll use qualitative sales forecasting methods for our merchandise. This is mostly due to the
lack of available data regarding our product, which is comparatively novel and unique in the
industry. Our product's market acceptance and penetration rates are also unknown.

This method uses human judgment to translate qualitative data into quantitative projections.
We'll be doing market research to figure out how much of a demand there is for the product.
This will entail a number of organized and official procedures.

To gather specific statistical information about our product and to learn the opinions of poten-
tial clients, surveys will be distributed for primary market research.Secondary market re-
search will be conducted using public and commercial sources. According to these sources,
the lip liner market will expand at a compound annual growth rate (CAGR) of 5.24 percent
during the next five years.Length of Sales Cycle Forecasting is the technique we'll employ
for sales forecasting. This approach uses information on the length of time it takes to turn a
client into a "paying" customer. This strategy will be ideal for our goods because we'll be
selling it through a variety of online and offline distribution channels. As a result, we will be
able to predict how much each channel will sell.

 SUMMARY

The lipstick market is estimated at $9.2 billion, it is supposed to develop at a CAGR of 6.6%
till 2024. The main considerations contributing in the rapid development of the market incor-
porate, rising interest for lipsticks from working ladies, and tendency toward online e-com-
merce sites

In view of variety, the lipstick market is portioned into red, pink, naked, maroon, dark, or-
ange, green, silver, dim, dark, violet, yellow, white, blue, purple, multicolor, and gold. Of
these, variety red class is assessed to hold most elevated income share in 2021. Not-
withstanding, the variety bare is projected to enroll the quickest CAGR, on the lookout, dur-
ing the gauge time frame.

As far as tool, the lipstick market is grouped into lipstick cream, lipstick range, lipstick pen-
cil, lipstick tube/stick, and fluid lipstick. Of these, the market for lipstick tube/stick classifica-
tion is assessed to hold the biggest income share in 2020, and would proceed to emphatically
during the conjecture time frame also, trailed by lipstick cream, lipstick range, and others.

Based on age, the lipstick market is ordered into under 20, 20-30, 31-50, and more than 50.
Of these, under the age 20-30 is assessed to hold most elevated income share in 2021, and
would keep on posting development in the figure period too. In view of conveyance channel,
the lipstick market is fragmented into restorative store, grocery stores/hypermarkets, general
stores, retail chains, on the web, parlors, and staple shops. Of these, departmental stores class
is assessed to hold biggest income share in 2021.