Mac Makeup

“FAB” Model - Customer Value Proposition (page163 -165)

Problem/Need of the B2B Company you are selling to? Feature/Fact of Your Company that can solve this Problem/need

Fact … Advantage

How can Fact be used to help B2B Company

So that… Benefit

Value to B2B Company

Which means to YOU…? Sales tool that will PROVE this Benefit?

(Step 4)

1. Increase profit • Competitive price

• Special discount for volume purchase

• retail cost at $19.00 • Retail price suggested markup • Generates a higher profit (29% markup)

2. Receive advertising support and promotional discount • Launching new product

• Ad campaign • Consumer awareness will be created. • Will drive more store traffic

• Gain competitive advantage

3. Need high quality product/service that satisfies consumers’ needs • Longwearing color comparing to other product

• Increase consumer’s interest and attention

• No customer return • Increase sales

• Never lose sales opportunity

Industry Profile

The cosmetic industry in Canada seems to become mature and saturated (Skin Care in Canada). But due to the trend that driven by the increase in the aging population of Canada and the importance attached to be seen as young and youthful, the overall demand for the cosmetic industry remains strong (Skin Care in Canada). During the period of 2006-2010, the cosmetic industry shows a growing rate of 3.9% (CAGR) and generating total revenues of $729.9 million, in 2010 (Make-up in Canada). Then again, the performance of the market is forecast to decelerate in the future five-year period, since the many products (such as the anti-aging products) already have reached their target market (Beauty and Personal Care in Canada). To penetrate market and increase revenue, cosmetic companies are reaching out to younger target audiences who are more fashion forward and practices beauty at formative stage (Beauty and Personal Care in Canada).

Company Profile...