Leadership in Action News from the Beauty Industry’S Think Tank Volume 3, Issue 2 | Summer 2011

Leadership in Action News from the Beauty Industry’s Think Tank Volume 3, Issue 2 | Summer 2011

Beauty for All: Innovations in Mass Retail Target Sponsors 2011 Capstone Projects and Event

On May 19th, graduating students Next, were the Capstone Present- from the Class of 2011 presented their tions, the main event of the evening. Capstone projects, with over 700 This year’s assignment brief from people from the beauty industry in Target was to imagine the future of attendance. This was the second year beauty at Mass, considering key growth that it was necessary to hold this event categories such as prestige, naturals in Haft Auditorium, in order to accom- and fashion. The students researched, modate a wider industry audience, prepared and presented a business including members of the trade and case, merchandising strategy and mar- consumer press. keting plan, taking into consideration Laurie Lam, Director of Marketing demographic and cultural trends, as Anahita Mekanik of IFF, Class of 2011, at L’Oréal Professionnel and the new well as technology. One area that was a presents “The Beauty Sphere,” an idea to bring prestige beauty merchandising and Chairperson of the Alumni Association, significant part of all three projects was products to Mass retail. opened this year’s Capstone with a the key role that digital/social media visual journey of Capstone presenta- and technology play in the future of tions made over the past decade. She retail at Mass. In this issue, starting on illustrated specific examples of how stu- page 3, you will find all three Capstone dent predictions and recommendations White Papers. Visit fitnyc.edu/cfmm to became future indicators of industry see the videos from this exciting event. change. Lam emphasized the ability of Dr. Joyce Brown, President, FIT, wel- the FIT Think Tank to always have its comed everyone to the event on behalf finger on the pulse by adding, “It’s as if of FIT, and was followed by keynote we possess a hidden power within the speaker, Will Setliff, Vice President industry, for the industry, and undoubt- Marketing at Target. Mr. Setliff noted Target Vice President of Marketing Will edly, it’s this power that brings you all the importance of focusing on the Setliff delivers keynote remarks at the 2011 back to the Capstone event every year.” continued on page 11 Capstone event.

Corporate Finance Students (Class of 2012) visit NASDAQ

As part of her Corporate

Cosmetics and Fragrance Marketing and Management Marketing and Fragrance Cosmetics Program Degree Master’s Finance course, Dr. Brooke Carlson arranged for the Class of 2012 to participate in NASDAQ/NYSE’s closing stock market ceremony on May 10. The students are pictured with (left to right) Dawn Duncan, vice president for Development; Dr. Carlson, assistant professor, and Stephan Kanlian, program chair. The students received a tour of the stock exchange, and the FIT logo appeared on the Times Square Jumbotron. By using New York City as a “Living Laboratory,” this visit allowed the students to witness firsthand the inner workings of the business world and a key aspect of our industry. n Alumni Faculty Members Achieve Career Milestones by Stephan Kanlian, Chairperson, FIT Master’s Program

There can be no greater Development Committee. At ELC, Mark of Fashion (first honors evidence of the continued has created programs in Innovating for and distinction), started success of our talented Excellence and Greenhouse Leadership, as her career as a financial graduates than our two well as working on William Lauder’s Brand analyst in the venture alumni faculty members, Equity Symposium and the Bringing Out Your capital industry, then joined Mark Polson (Class of Best program. Mark also works with leading L’Oréal USA in 2005 on 2002) and Leslie Harris academics from Harvard’s Business School the Kiehl’s marketing team. Mark Polson (Class of 2008). Both were on customized content for ELC’s Bryn Mawr Leslie Harris In 2009, Leslie joined promoted this year to roles College internal training program. He was Garnier, in new category as corporate Vice Presidents and both are lead- recently promoted to Vice President, Global development, and at FIT she brought her ing corporate initiatives under the direction of Business Creativity and Innovation, and is knowledge of fashion history to the faculty the chief marketing officers at their respective partnering with the Corporate Marketing team of the graduate program, teaching the course companies, The Estée Lauder Companies and to create and support their programs, includ- in History and Strategic Development of the L’Oréal USA. ing the MX: Marketing Excellence Forums and Beauty Industry. This year, she was pro- Polson, a trained industrial designer, Global Digital Education. For the past several moted to lead the Garnier Skincare Product parlayed his graduate education at FIT into years, Mark has served as a faculty evalua- Innovation team as AVP Product Innovation, an innovation and training role in Global tor for the FIT program’s annual Capstone and tapped by L’Oréal’s CMO to lead a corpo- Management Strategies at The Estée Lauder projects. rate-level skin care innovation team. Companies (ELC). With his unique back- Harris, who entered the FIT graduate As members of the program’s faculty, Mark ground, he pioneered the curriculum for program with a Bachelor of Arts degree in and Leslie also serve as an example of excel- a course in Managing the Creative Process Economics from Wellesley College (cum lence among our alumni and as an inspiration on the FIT graduate program in 2007, and laude) and a Master of Arts degree in Fashion in the classroom to incoming cohorts of future serves on the FIT program’s Professional History and Theory from the London College industry leaders. n

Alumni Association by Alumni Association Chair, Laurie Lam, and Vice-Chair Douglas Bender

It’s shaping up to be a bustling year for the ing in the creative thinking, problem solving, Join the Alumni Association Alumni Association. In March, we were passed research, and dialogue they had experienced in the baton from former co-chairs Rebecca our classrooms and think tank initiatives. www.fitalumniassociation.org Heck, Class of 2007, and Vivianna Barrera, Together as a group, we’ll continue to dive (your donation is tax deductible) Class of 2008, to continue to lead and grow deep into brainstorms and think tank work- our Alumni Association. Since then our focus shops with industry partners and external n Exclusive Industry Events has been on solidifying and strengthening the firms to do what we love most. It will be a mul- n Discounts foundation of this group. This summer we wel- tidisciplinary approach to propose viable solu- n Access to Life and Health Insurance come the Class of 2011 to our esteemed family tions, recommendations, and ideas to everyday n Free subscription to FIT’s HUE of over 170 alum. business challenges we face as an industry. magazine Our Alumni Association is committed to n Industry Updates, Connections and building a long-term relationship between the LOOKING AHEAD Networking FIT Master’s Program, its graduates and corpo- As our careers, responsibilities and job rate partners. Our first priority is to ensure that titles evolve, it will be important to leverage our alumni feels supported post-graduation. our industry network and to provide ongoing This involves strengething the long-standing training programs, career counseling/develop- Stay Connected relationship and support received within spon- ment, and executive mentorship opportunities. soring companies. We will also look for unique This will be possible thanks to support from Like us on Facebook: opportunities for alumni to continue connect- from the Industry Advisory Board, Professional www.facebook.com/FITMPSAlum ing and engaging. Development Committee, executive mentors, We are the only program of its kind to respective human resource entities, program provide specialized advanced education supporters and, of course, our growing net- Follow us on Twitter: opportunities for emerging executives that also work of over 170 graduates to date. You will be twitter.com/#!/FITBeautyGuru serves as a think tank of innovative leadership seeing some exciting changes to the Alumni for the beauty industry. This is the heart and Association following the feedback we are soul of the FIT Master’s Program. Doug and I receiving from surveys with the graduates and have heard from many graduates and they too their supporting companies. Please join and have expressed the desire to continue engag- get involved. n

2 Volume 3, Issue 2 | Summer 2011 We are pleased to provide here papers by the three Capstone project teams summarizing their May 19 presentations. Due to space constraints, detailed bibliographies and some supporting visuals have been omitted here but are available in downloadable versions of these papers appear- ing in the program’s section of the FIT website: http://www.fitnyc.edu/cfmm. These papers are works of the graduating students, and any repro- duction or use of this material requires their written permission.

Fashion and Beauty at Mass

Authors: LaSháda Allen, Asha Daniels, Corey proliferation of fast fashion and fast beauty. By times the consumer mindset; however, by Reese, Melanie St-Amour, Kadi Thompson understanding these trends, retailers must ask creating an enticing experience where she can themselves how they can leverage the fashion browse curated, trend-right assortments, she Introduction and beauty connection while further driving saves time by no longer needing to make that Fashion and beauty are inherently linked the Mass consumer. Additionally, how might extra trip to another retailer. and women throughout time and all over the retailers encourage the consumer to link pur- An “in and out” beauty and accessories world understand this. In today’s over-saturat- chase decisions between the two categories? aisle offers her items that tie into the color ed world, companies have wooed consumers By speaking to her in a way that is familiar with personalization and customization and and connecting beauty with fashion is the way brands across all industries are starting to retailers can grow sales of two of the highest take note. For years, consumers have received margin categories at Mass. fashion and beauty tips from their favorite Traditional media has changed and with the magazines. However, fashion and beauty are rise of instant communication brands have not merchandised and marketed together at adapted their marketing to a more expressive Mass, the way they’ve always been linked in generation. With this in mind, retailers must magazines. Conversely, prestige companies develop a 360 approach that links fashion and such as Dior and Chanel have been leveraging beauty at every step of the consumer’s life: this connection in order to create one com- enticing her with in-store merchandising, mon message to the consumer. While Mass entertaining her with events, enamouring her brands have successfully made the connection outside of the store and engaging her on the go of the season or back to a fashion collection by sponsoring major fashion events such as with digital strategies. In doing so, she will rec- that is currently being sold by the retailer. Maybelline’s tie with Fashion Week, they have ognize that convenience, value, and engaging Incorporating digital media in the aisle with not yet translated that connection into the experiences are now available at her favorite runway shows and behind the scenes clips retail space. Mass retailer. with makeup artists is an easy way to reinforce In the consumer’s eyes, the lines have the link between fashion and beauty, promot- blurred. She is shopping in multiple channels Entice Her In Store ing sales in both categories. for beauty products and apparel, and looking When it comes to enticing consumers Creating seasonal stories within the for value in each. She sees high and low fash- with visually disruptive merchandising in an apparel department entices her to make add-on ion being mixed on the pages of her favorite environment that deliberately prolongs browse purchases. A fixture highlighting “Summer magazines. The traditional channel approach is time, IKEA’s global strategy has made them an Essentials” offers a curated assortment of now irrelevant. According to Wendy Liebmann, industry leader. Their one-way layout encour- swimsuits, sunhats and sarongs while also CEO of WSL Strategic Retail, “This Mass ages customers to see the store in its entirety, reminding her to buy sunscreen, sunless tan- channel shopper is smart.” While 68% of which helped the Swedish company earn ner and seasonal nail colors. By offering her consumers say they learned lessons during the over twenty-three billion euros in 2010. Their a total look on one fixture, she is more likely recession, they continue to shop and are look- merchandising strategy showcases product in to add impulse items to her basket and saves ing at purchases differently. 72% of shoppers various lifestyle concepts to appeal to as many her time by not having to seek out multiple pay attention to price and they expect good customers as possible. This strategy is not departments. Adding beauty samples and cou- quality at low prices. Additionally, this shift in limited to IKEA’s 300 stores across the globe. pons onto the tags of apparel is also a way to value will not end as the economy continues 712 million visitors/year visit the IKEA website to improve. 64% of shoppers are proud to be and 197 million catalogues are published in frugal and cautious. Today, Mass retailers use twenty-nine languages, all of which leverage lower prices to attract and retain consumers. this disruptive merchandising strategy. The next challenge is to offer an enhanced Creating a similar journey throughout shopping experience, framing it as additional a Mass retailer, consumers can experience value in order to retain these consumers as fashion and beauty in their natural habitat: brands and retailers continue to compete for together. By blurring the boundaries between this frugal yet sophisticated shopper. beauty aisles, apparel departments and fitting There are three overarching trends that are rooms, Mass retailers can provide curated shaping consumer behavior in-store, out of assortments that make “getting the look” both store and online: the popularity of one-stop convenient and fun. In today’s oversaturated shopping, the advice of curators, and the and busy world, getting “in and out” is often-

Volume 3, Issue 2 | Summer 2011 3 encourage sampling and trial. Mass retailers beauty and fashion are often an be debuted and sold together in the space. The While fitting rooms at Mass retailers are afterthought. The consumer is in the store for First Friday’s event could also feature beauty oftentimes uninspiring, consumers who try on their weekly shopping and beauty and fashion and fashion by season, with the latest boot clothes result in a 67% conversion rate com- purchases are often an impulse. Another way styles and lip-gloss shades to get you ready pared to 10% for those who don’t. Knowing to bring beauty and fashion together in Mass for fall. It could also be featured by color, with she may be in a hurry, express dressing rooms is by making it an exclusive focus in Mass. fragrance, clothing, and nail polishes all in throughout the apparel department will entice Taking a nod from events like “Fashion’s Night coordinating of-the-moment shades. her to quickly try on apparel, increasing the Out” and exclusive registry events at stores The event space would also be a perfect likelihood of purchase. While she’s in the like Crate and Barrel, Mass retailers can use place to leverage the booming bridal market. dressing room, simple mirror decals highlight- existing store space and re-merchandise it to Since many brides are already registering in ing the color of the season will remind her to hold monthly events catered around fashion stores like Target, First Friday’s could launch pick up the latest beauty products on her way and beauty. A Fall 2010 “Fashion’s Night Out” exclusive limited time collections, where a out. event in Harlem, NY drove a 50% increase in curator selects everything you need to get a By upgrading the experience in the main foot traffic with 75% of customers purchasing complete look for a rehearsal dinner, wedding fitting room area, retailers can entice her to product. shower, and honeymoon. All from one store. buy beauty and fashion. Creating a fun com- A First Friday’s “Get the Look” event, would munal space and leveraging the digital media work perfectly in Mass. Every first Friday of Enamour Her Out of Store seen in the beauty and accessories aisle will the month would feature the latest looks and In order to continue to capture the con- encourage her to spend more time trying on beauty concepts displayed together in the exist- sumer’s attention and reinforce the connec- clothes, driving conversion, transactions and ing fashion space. Featuring fun drinks and tion that fashion and beauty can be linked at average dollars per sale. Strategically placing appetizers that are sold in the grocery depart- retail, it is necessary to enamour the consumer impulse beauty towers around fitting room ment, these added touches give the consumer outside of the store. Retailers need to continue lines promotes impulse purchases and poten- the event feel that is usually only available at the in-store conversation with interesting tially captures new customers who may not an upscale department store. One stop shop- marketing and merchandising concepts in the have shopped the beauty aisles. Positioning a ping, with a complete look, curated for the world outside their doors. Pop up stores, col- virtual vanity near the fitting room serves as an consumer. lege campus events, retailer sponsored movie incremental beauty destination, giving vendors The space is an exciting way for Mass retail- nights and home shopping partnerships all exposure that rivals the current beauty aisle offer the opportunity for retailers to continue endcaps. In lieu of testers, the vanity is outfit- the fashion and beauty conversation. ted with an iPad on which she can give herself Pop up stores first came on the scene in a virtual makeover and then add corresponding 2003 and flourished through the recession shades to her basket. due to the increased availability of vacant retail According to an InsightExpress study, “82 space. Now mainstays for luxury and Mass percent of consumers already use mobile brands and retailers, pop-up stores provide phones during their shopping trips, so it’s criti- a unique opportunity for Mass retailers to cal that retailers understand and embrace this enamour consumers and showcase what is new shopping behavior.” Incorporating QR new, while also creating buzz. The popular- technology and iPads inside of fitting rooms ity continues to grow; for example, Toys R’Us allows consumers to scan apparel and receive ers to promote and leverage existing designer opened 600 pop-up stores across the US in recommendations of fashion and beauty collaborations within the store. In Target for 2011 compared to 90 in the previous year. products that complete the look. Dragging pic- example, the “Get the London Look” event Open for a limited time in highly trafficked tures of the various items into a digital basket would feature existing beauty brands like urban locations, these stores would provide triggers a merchandise runner that collects the Rimmel and Boots and fashion from British penetration into markets where Mass retailers items to put aside at guest services for her to designer Luella Bartley. Representatives from do not have brick and mortar stores. pick up. the brands would be at the event to help Mothers and daughters continue to shop By utilizing fixtures that showcase fashion increase awareness, and show the latest beauty together and with limited bonding time avail- and beauty together, and offering consumers and fashion looks from across the pond. A able in our increasingly busy world, retailers curated assortments throughout the store, partnership with the airline Virgin Atlantic have the opportunity to provide a cross-gen- Mass retailers can entice consumers to stay would offer a trip to London, so shoppers erational family experience. A pop-up store longer and spend more money. This strategy can wear their new look on an actual trip to centered around back-to-school shopping for answers the need of convenience and value of London. the daughters and back-to-beauty-school shop- time, while also offering her an elevated shop- Once a shopper has attended a First Friday ping for mothers, would allow a Mass retailer ping experience which will retain her in the event, they will get an online preview and to focus on age appropriate looks and highlight long run. invite to the next event, so they can RSVP to the season’s trends. Pop-up stores could also assure a spot. In a Mass retailer like Kohl’s, be opened during New York Fashion Week Entertain Her in Store the event space would be the perfect oppor- and allow consumers to share in the runway Once the consumer is in the store, how tunity for a Vera Wang “Get the Look” event. experience. Set up to resemble the backstage of do retailers keep her entertained and com- Completed looks from her flirty Simply by Vera a fashion show, stores would be outfitted with ing back for beauty and fashion? In many clothing line and her new makeup line could vanity mirrors, make up artists, hairdressers

4 Volume 3, Issue 2 | Summer 2011 and clothing racks. Retailers could easily show- how people shop, by bringing the advantages case the season’s latest fashion and beauty in a of the Web to the in-store experience.” In the single space. comfort of her home, a consumer “virtually” Retailers can continue to enamour her tries on fashion items, and then the site recom- by taking fashion and beauty to her directly. mends beauty products to her to complete the Marketing tour buses operate as a sort of look. Discounts prompt her to join a synchro- mobile pop-up store and adding a social media nized shopping session to share her look with dimension can further entice consumers to friends in real-time via social networks, all of participate. A “Campus Cube” would update that while she is shopping. Beauty brands like the traditional campus tour bus. The promo- M.A.C are already starting to implement these tional cube would allow students to sample “synchronized” social shopping sessions. It is a new looks, shoot videos of themselves and great opportunity for retailers. upload and share their new looks on facebook Second, a beauty and fashion personal and on twitter enticing their friends to partici- store. stylist could leverage all brands sold under a pate. Outfitted with a selection of fashion and retailer’s roof to create a connection between beauty merchandise, the Cube would create an Engage Her Online fashion and beauty. For example, Target could experience that speaks to how students com- In recent years, strategies to engage con- launch “TARGET MY STYLE.” On the website, municate and express themselves today. Calvin sumers online have led to double digit growth a consumer would take a quiz answering Klein recently relaunched the CKOne unisex of e-commerce, digital technologies and social questions about her favorite beauty products, fragrance using a combination of social media, networks. All of which have impacted the con- runway looks and fashion accessories. Then, applications, and pop-up events. Launched in sumer’s behavior. While shopping, she “diggs” the beauty and fashion personal stylist would March 2011, the CK One Virtual box has con- through “delicious” products, “facebook” her curate assortments and email her suggested nected 80,000 consumers. friends to “meet up” on “foursquare” and com- looks weekly. This concept could be applied in- Highlighting fashion and beauty products pare prices of product in stores nearby. The store with a style consultant asking a consumer during retailer sponsored movies is yet another consumer is in control of her shopping experi- to fill out the same quiz on an iPad and then way to enamour her out of store. In April ence and sharing that experience with her helping her locate items. This concept is simi- 2010, P&G and Wal-Mart kicked off the family friends. In order to stay relevant in the face of lar to the popular website sendthetrend.com, movie night initiative when they presented the this empowered consumer, retailers are trying which tailors collections to subscribers after premiere of “Secrets of the Mountain.” In the to complete a digital check-list to resonate with they’ve created a fashion profile online. Now, one year since the partnership began, Wal-Mart her. Wal-Mart’s acquisition of Kosmix (a social imagine the impact if a retailer could curate and P&G have reached 16 million viewers. media platform) for $300 million shows that looks across multiple categories and brands Retailers could adapt this concept to showcase retailers are trying to accomplish it, whatever – leveraging its natural expertise of one-stop beauty and fashion by sponsoring a “Movie and the price. shopping place for beauty and fashion either A Make Over” night on television. Makeover However, simply checking off boxes is in-store or online. spots would appear during commercial breaks not enough to win the game; retailers must Finally, flash sale sites have changed and show consumers how to get an up-to-date engage the consumer. As stated in the “New the retail model and, they are here to stay. look of her favorite movie characters, showcas- Rules of Retail” by Robin Lewis and Michael However, to avoid over-saturating the consum- ing the latest styles and trends all available Dart, “Well-edited retail brands….which know er’s inbox, this flash sale site offers a new prop- in-store. their consumers’ likes and dislikes, provide an osition. Twice a month, curated looks would be Co-branding, co-marketing and cross-selling emotionally connecting experience in which picked by beauty and fashion bloggers. Similar are marketing tactics increasingly utilized to less is more.” To engage the customer and con- to Gilt, Rue La La, Ideeli and newly launched leverage assets and combine the strengths of nect fashion and beauty online, there are three My Habits by Amazon, this site would offer two or more brands. A partnership between a concepts that could easily help her get the look: deals but also, engage with fashion and beauty Mass retailer and a home shopping channel combining augmented reality with social com- mood boards to show the customer how easy it would provide the retailer access to the 90 mil- merce, utilizing a digital personal stylist and is to get a deal and a look in just one click. lion households that home shopping channels the creation of a unique flash sales site. reach every day. The association would provide The concept of combining augmented real- Conclusion an excellent way to tell the story behind fashion ity and social commerce is right on trend and Our world is driven by connections. and beauty, while offering her the authentic is a natural next step for retailers. The retail Consumers are not only connecting with each and personal communication consumers are potential is huge. According to freelance pod other, they are also connecting to brands, seeking today. An easy way for a Mass retailer caster, Paul Skeldon, “You turn the augmented causes and technology, all at a speed unlike any to access this channel would be through a col- reality technology into something that creates generation has experienced before. Mass retail- laboration. Pairing a beauty brand like Sonia genuine revenue streams. Retail and gaming ers must become even more connected to the Kashuk with the fashion of Calypso St. Barth are the obvious areas that can deliver revenues consumer conversation. They must entice her for Target, would be the perfect match for with augmented reality right now. The real in-store, entertain her with events, enamour showcase on HSN. This would give Target the money lies in turning augmented reality into her at home and engage her online. If retail- opportunity to explain the concept behind the the consumer space with games, entertain- ers continue to ignore the natural connection collections, highlight their beauty partnership, ment and education. In the next 12 to 24 between fashion and beauty, they just might reach consumers at home and draw them into months you will see it everywhere, changing get disconnected from the conversation. n

Volume 3, Issue 2 | Summer 2011 5 Naturals and Cosmeceuticals at Mass

Authors: Stephanie Dishart, Pei Wong, Tanja market will grow 14%, reaching $4.2 Billion by Lindermeier, Evelyn Lu, Lindsay Novellano 2017. If a new product is not natural, it is the epitome of science with supercharged results Introduction giving fearful aging consumers another avenue In the US, the natural category grew 12% for wellness in their search for the fountain of last year versus 2% total beauty according to youth. Kline. Due to this tremendous growth, Ulta, This parallel is a global phenomenon. Last Walgreens and many other retailers have creat- year, natural beauty grew 21.3% in Brazil and ed specialty sections. However, today the chal- 13.3% in China, according to Kline. Yet cosme- lenge is that it is no longer just indie brands ceutical brands like Vichy, La Roche Posay, and out health insurance can be well over $200. All introducing truly natural products for niche Eucerin, as well as nutricosmetic brands like the while, a large proportion of our population consumers. Major Mass natural introductions Japanese Fancl, are top-selling, new introduc- is aging, and in need of more regular health from Unilever, Procter & Gamble, L’Oréal tions in Watson’s and traditional Chinese maintenance. Already, we see corporations and Johnson & Johnson, have met previously medicine shops alike. From our travels to stepping up to meet this national challenge. deterring price and performance thresholds for China this March, it is clear that “Better City, At this year’s NACDS, P&G, no doubt their consumers, often going beyond specialty Better Life,” the theme of the World Expo, was inspired by the success of their “Lookfab standards. For example, L’Oréal recently intro- not just about sustainability, but a shift in the Moments” popup boutiques, expanded their duced Garnier Pure Clean with claims on 94% Chinese consumer’s mindset. For the first services from beauty and grooming into well- biodegradable formulas that are paraben, dye time since 2001, economic growth parameters ness. In the Wellness center, a dentist was on and silicone free in 100% recyclable, 50% post- set by the government have been reduced to hand to measure plaque while a doctor con- consumer recycled bottles. Mass is shifting the 7%. A new focus has been put on happiness, sulted on visitors’ true heart age. Pharmacies natural definition. intellectual property and financial stability, the are already evolving into mini health clinics to This paradigm is not just in beauty. Naturals fundamentals of wellness. meet the demand for smart, simple, medical are omnipresent across categories, even in Together, naturals and cosmeceuticals rep- solutions. 76% of Americans shop the Mass some unexpected places. For example, this fall, resent the spectrum of beauty options global channel – more than any other channel. Wendy’s introduced Natural Cut Fries with consumers need today as an integral facet of Therefore, this is where we have the greatest Sea-Salt, resulting in a 17% increase in fry their wellness lifestyle. Yet they also represent opportunity (and the largest square footage) to orders at launch. Lays new tagline is “Lays, we the ultimate in consumer confusion and the make the biggest impact. Beyond just provid- make them natural, you make them fun.” New need for awareness, education, and engage- ing convenience, Mass retailers are in position launches for bleach, fertilizer, and paint are ment. Today, consumers need solutions, not to make a real impact on total family health “green,” “organic” and “natural” respectively. just in beauty, but in every category, so that and national consumer wellness. The bold contradiction of these introductions consumers can live looking good, feeling good The Wellness Center is a destination for is merely a symptom of mainstream America’s and doing better. Mass retail is the only place smart simple services. It will take the Mass wellness fever. Even paper towels, the epitome this can happen with its price democracy and concept of one-stop-shopping into one-stop- of commodity, have become powerfully emo- all-encompassing assortment. In essence, its shopping-AND-services. To be a true destina- tional with natural’s safe authenticity. With ubiquity represents a tremendous opportunity tion for health and wellness, this center will major corporate sustainability commitments for positive impact. In conjunction, we must be take care of a consumer’s most common medi- and marketing campaigns to leverage them, realistic that most of the U.S. population would cal needs. In addition to prescription drugs, plus an engaged gen Y and baby boomer popu- much rather wear toning shoes and drink a V8 the health center will offer services such as flu lation, this is just the beginning. However, the than hit the gym or cut up celery. Wellness at and allergy shots, vaccinations, and diet and challenge is that today, even the word “green” Mass needs to be easy, creating choice and sav- nutrition counseling. is still grey for consumers. Despite ongoing ing time – the crux of convenience, the num- If the consumer needs more informa- efforts from agencies, corporations, retailers ber one reason after price that consumers shop tion about his or her health condition, they and beyond, natural and organic certifications at Mass. Through simple solutions in service, can experience the total body diagnostic of abound with no clear authority. education, and merchandising, and through the future. It will measure vitals, screen for The line between beauty and pharmacy authentic connections, Mass retail becomes the deficiencies, and make recommendations for has also blurred, but the numbers tell a very wellness authority. diet, supplements, and even skincare products. clear story. According to the American Society These results are stored online, so the con- of Plastic Surgeons, 12,000 teens had Botox Service Solutions sumer can track health progress on an ongoing injections last year and cosmetic surgery rose Every day, we are reminded that American basis. This is an opportunity to leverage the 9%. Unregulated claimed levels of actives have health is declining. Over 63% of Americans are expertise of the pharmacy and health clinic to risen to meet this demand for efficacy. In the either obese or overweight. Diabetes and heart drive front-of-store sales while making a posi- U.S., cosmeceuticals will continue to outpace disease are national crises. A compounding tive impact on overall consumer health. nutricosmetics, yet globally both, with close factor is that healthcare costs are rising, and For services of a more indulgent variety, proximity to the pharmacy, have exponential unaffordable to many Americans. In fact, 1 in consumers can make use of the Beauty Bar. opportunity. Global Industry Analysts reported 6 Americans do not have health insurance, and Consumers get a pedicure while shopping on last month that the global nutricosmetics the average cost of a single doctor’s visit with- an iPad, picking up the order on the way out…

6 Volume 3, Issue 2 | Summer 2011 with a fresh coat of polish. The best part is, if they have the option to speak directly with essentials like prescription pickups, milk, and she liked the nail polish she tried, it is for sale health and beauty experts via a skyping kiosk. toilet paper. The Zipline can also be expanded in the same store. What’s unique about this Strategically located between beauty, pharmacy, to an urban model. Like a corner convenience beauty bar concept is that each station will be and grocery, this kiosk provides the option store, Mass retailers can truly reach the urban sponsored by a different beauty brand every to call one of several types of experts. With consumer, stocking the same top-selling skus month. For Mass brands that typically don’t Microsoft ‘s recent acquisition of Skype and and offering the same discounts without the have their own spas or salons, this presents an its 170 million users, you can imagine the big city inflation. Additionally, the Zipline opportunity to showcase their latest products potential. could also be a potential housing for private- and collect valuable consumer feedback. Finally, the shopping cart can use a state of label brands. There will also be medical spa services, the art makeover. Introducing the Electronic On the main floor, beauty products need leveraging the authority of the in-store phar- Cart Companion. This updated shopping cart to be better distinguished and should be macy. We are, after all, entering the age of will feature a touch screen and a high tech categorized according to the regimen consum- lunch-hour facelifts and drive-by Botox. Such product recognition system. As consumers ers follow at home. This would not only help services will only build credibility for the Mass shop and place items in the basket, facts about consumers filter products but educate them retailer as a comprehensive wellness authority. products, ingredients, and usage pop-up on the on how to use the product as a regimen from A retail partnership with Allergan would be shopping screen. This new shopping cart also the first steps of exfoliating and cleansing to akin to JCPenney’s partnership with Sephora: checks off shopping lists and features a GPS the last steps of what type of sunscreen they more distribution for Allergan’s products, guide to add in the ease of finding products. should be wearing. more accessibility for the consumer, and more To entertain children sitting in the basket, the End-caps should be used for more than revenue for the retailer. For brand manufactur- settings can be changed to feature games and just promotions. For instance, imagine an ers, imagine what a lip plumping service would movies. end-cap filled with products that contain key do for lipstick sales in the next aisle. Ensuring that consumers feel educated is trend ingredients like vitamin A or beauty critical to ensuring the success of Mass as a recommended spices? An even more perfect Education Solutions wellness authority. After all, feeling smart feels opportunity resides in the travel-size retail sec- As previously mentioned, the Wellness good, and shoppers that feel good are sure to tion. This location would be ideal for products Center will be an obvious touch point for return again and again. inspired by places like the Amazon Rain Forest education. However, education must also exist and Asia, especially when it comes to naturals. outside its walls. The proliferation of products Merchandising Solutions Obviously, there is only so much retail and skus available at Mass is astounding. A GPS for products is worthless if retail- space to execute new ideas and logistically, Consumers are overwhelmed and confused. ers cannot keep the consumer happy at the it is expensive to change end caps for every Something as simple as choosing a shampoo most important place of all – the shelf. In new concept. Introducing a simple solu- quickly becomes a daunting task. This makes 2010, about 30% of women surveyed found it tion – the Roving End-Cap, a truly versatile education just as, if not more critical for Mass confusing to choose a beauty product. In fact, cart that affords many options, including shoppers than prestige shoppers. Moving the platforms that allow for brand sponsorship. traditional Beauty Advisor model into Mass has Cross-selling products can be easily accom- not proven successful. However, we believe the plished. For example, a Roving End-Cap with following educational solutions will be success- an “Energize” theme could carry fragrances ful in Mass retail. that excite you, supplements that wake you up, 67% percent of consumers research a prod- and facial products that make your skin glow. uct or ingredient on a manufacturer’s website To top it all off, consumers get a free smoothie before purchasing. Online is the natural plat- highlighting foods that help revive the mind form for information. What Mass retailers can and body. Retailers not only gain incremental do immediately is establish a sponsored micro- sales but additional retail space that is easy to site. It should be separate from the ecommerce change and can be used to test pilot new ideas, site but seamlessly link back to it. Mywellness. products and concepts. Best of all, the Roving com is a digital platform that lives online or according to WSL, with the burgeoning market End-Cap can easily go where the traffic is and on your phone. The format is uniquely linked for private-label brands, 14% of consumers helps guide consumers to the right product. to storytelling. Because this site’s sole purpose bought store brands by mistake. Mass retailers is to educate, consumers will identify it as a and brands have to better segment the beauty Authentic Connections reputable source of information. To elevate the section at the shelf without confusing or over- Retailers can contribute to consumers’ better site’s legitimacy, it will include testimonials whelming the consumer. health and well-being by helping them make and information from experts like dermatolo- Time is often the difference between a good the right product choices by making authentic gists and aestheticians. If consumers require day and an exhausting one. For consumers connections between 1) pharmacy and beauty, customized educational guidance, they can set who simply need more time in the day, the 2) products, and 3) products and community. up an account, log in and make mywellness. Wellness Zipline. Designed to get consumers This leads to increased consumer satisfaction com a digital destination for their personal in and out, this area of the store is organized and ultimately increased loyalty and sales. wellness. by non-browsing categories with top-selling Retailers can help consumers make bet- If consumers are looking to optimize their skus. As a result, consumers can quickly ter health and wellbeing choices by clearly personal wellness education in the store, complete their shopping lists for everyday connecting the pharmacy with the beauty

Volume 3, Issue 2 | Summer 2011 7 aisle. Introducing the Care Cabinet, a vir- supported by Tylenol. Energy Star-rated light bulb really green if it tual medicine and beauty cabinet that is the The Wellness Guide concept also has poten- remains on after everyone leaves the room?”25 ultimate resource for the online consumer. tial application in the store. In this scenario, in- It is about the choices we make to live looking First, like Fresh Direct, the Care Cabinet stores store merchandising would be more consum- good, feeling good and doing better. current products for online re-order or pick- er-centric in that it would group products in a Introducing Swellness: Integrated and up. One added benefit is that based on usage problem/solution format. For example, if the simple wellness solutions in service, educa- recommendations, it can auto-refill and send consumer is having trouble sleeping, she can tion, merchandising and connections. This products so that you never run out of pre- visit the “Sleep Well” aisle in the store. This concept leverages serious sustainability, health scriptions, toothpaste or night cream. It also aisle would feature cross category products for and societal issues with a positive twist for an suggests products based on previous shopping better sleep, such as fabric softener, night time all-encompassing destination to help eco-con- habits or changing seasons. Second, like CVS skin repair serums, aromatherapy, bath salts, scious, sophisticated and every-day consumers and Walmart.com, the Care Cabinet houses and moisture wicking pajamas. The online and alike “Live a Swell Life.” Through Swellness, OTC drugs and provides a diagnostic tool. in-store execution of the wellness guide ben- Mass retail becomes the consumers’ wellness However, the Care Cabinet also indicates drug efits the retailers since consumers see better authority. By offering the consumer experi- interactions and needs based on items already results through product combinations, which ences, helping them to reach their goals and in it. For example, if a prescription creates sun increases consumer satisfaction and loyalty. by saving them time, their experience online sensitivity, the Care Cabinet will suggest a sun- While product performance is an impor- or in-store leaves them transformed. A perfect screen. This Care Cabinet allows consumers tant criterion for purchase, more and more fit with beauty, Swellness brings back the to narrow the digital space and connects phar- Americans choose products with a triple feel-good power of the lipstick factor that we macy, beauty and personal care in a way that is bottom line. In fact, in 2010 the market for have lost. With an integrated approach, Mass impossible for traditional bricks and mortar. certified, sustainable products went up to $56 retailers gain incremental sales and magnetic If retailers want to become the authority for billion. This environment forces retailers to loyalty. wellness and help U.S. consumers shift behav- take a stand on sustainable and ethical sourc- Swellness is not naïve of the Mass environ- ior towards a healthier lifestyle, they should ing, as shown by UK consumers’ vote for the ment. Instead, it utilizes its power, addressing focus specifically on women, who make 85% of “the greenest” supermarkets. serious issues with the potential to make a household purchase decisions. Since most of One way retailers reinforce their ethical difference in the lives of millions. It has the them are mothers, they are the gatekeeper to sourcing in the eyes of the consumer, is offer- power to do even more. In mid-March, AdAge the family’s health and wellbeing. It is impor- ing sustainable certified products. However, called $400 billion-plus Wal-Mart the “biggest tant to help her choose the right products, and as mentioned earlier, the plethora of certifica- and most vigorous of a new breed of private- also set a good example for her children. In tions dilutes the authenticity of the certifica- sector regulators.” With government-like leveraging the scientific expertise and equity tion. Retailers should go one step further and mandates Wal-Mart and their obliged suppliers of brands, retailers can create the authority offer sustainable sourcing partnerships with will reduce greenhouse gas emissions, invest to offer higher value solutions like wellness local farms such as organic olive, wine or aloe in the community, reduce sodium by 25% and programs to consumers.19 farms. Products from this exclusive partner- trans-fatty acids by 100% by 2015 among other The Wellness Guide is for mothers and is ship would be offered to consumers, thereby impressive goals. In 1996, Target walked away available online and as a mobile application. allowing them to support the farm while from cigarettes. Can you imagine if all Mass This Wellness Guide will empower mothers ensuring transparency of the product’s organic retail followed suit? This may not be too far to create rituals at home for herself or her skincare ingredients’ origin. Such an exclusive away and the impact would be epic. children that are scientifically proven to work, retailer-owned product line would increase In conclusion, Mass retail is powerful and thereby helping her to easily achieve her well- consumer engagement. This unique story today through simple solutions for wellness it ness goals. Multiple wellness programs will be telling value could be leveraged to enhance becomes the Swellness authority. n available within the three wellness benefits of consumer loyalty programs by offering unique “Looking Good,” “Feeling Good” and “Doing opportunities like family trips to local farms Better.” Each wellness program will be spon- to learn about organic farming. Furthermore, sored by a brand and developed in partnership 64% of consumers are willing to pay a pre- with their scientific experts to ensure quality mium for products that support a cause they outcomes. For example, the Wellness Guide are interested in, boosting the potential for could feature a weight management program incremental sales. sponsored by Nivea or a better sleep program Conclusion Wellness is no longer the absence of sick- ness or wishful thinking. It is approachable and holistic. Instead of right and wrong, eco, natural, green, or cosmeceutical, wellness is about conscious consumption and the role products play in your life. “Is Tom’s of Maine toothpaste really green if consumers leave the water running while they brush their teeth? Is an

8 Volume 3, Issue 2 | Summer 2011 Beauty For All: The Future of Prestige at Mass

Authors: Alison Aidlin, Elizabeth Del Pozo, Lead the thinking. Capture the heart.” tise. A dedicated Beauty hostess is present to Devin Homsey, Anahita Mekanik, Liza Rapay Social Responsibility: Michael Porter of welcome shoppers and assist them if they’d the Harvard Business Review said, “There’s a like. Headsets are also available with thematic Shifting Consumer Demands connection between competitive advantage and tutorials, guided tours throughout the beauty • From Needing Stuff to Demanding social issues.” This is crucial to the Millennials and fashion department, or the latest audio Experiences who are more diverse ethnically, socially, and books available in the store. • Conformity to Customization economically than any other generation in his- Level 1 – The human touch. The first sphere • Plutocracy to Democracy tory. Brands cannot ignore their power. helps consumers define their needs or areas of • Wanting New to Wanting New + Now + interest. It is a source of education and story Everywhere merchandising telling for the brands and the retailer. There • Self to Community The brands that make a mark on us fully are 4 modular stations equipped for on the go! Consumers are in control and we need to engage our five senses. They have in common services such as makeovers and skin analysis, listen. In their eyes, the lines between Mass that indefinable love factor we instinctively rec- as well as a virtual beauty post where consum- and prestige are more blurred than what we ognize. As Kevin Roberts, CEO Worldwide of ers may scan QR codes for detailed product see. As the demand side shifts, we must cater Saatchi & Saatchi says, “The senses are the fast information, access the store website to post to consumer needs and build a symbiotic track to human emotions.” Lovemarks such as their product review on the spot, or place an relationship where retailers, manufacturers Cirque du Soleil offer their fans an experience order for home delivery. and brands, can benefit from one another. As in which they can inject their own emotions, Level 2 – The playground. The second sphere Mindy Grossman of HSN said, “The days of fantasies, tastes and smells. is the heart of the playground in which prod- trying to get a consumer to come to you are Drawing inspiration from such brands, we ucts are regrouped by category. The objective over. You really have to be in the consumer’s aim to transform the next generation Mass of this new classification is to better assist in world, wherever, whenever and however.” beauty aisle into an experiential outlet beyond finding the perfect product for her. Dedicated a convenience destination. How? By offering product displays include the Color Bank, Skin The Mind and Heart Connection her what she is not expecting from Beauty Solutions, the Fragrance Bar and Body Rituals. It’s no longer about the physical connection brands in Mass today: an inspiring source of There is also an interactive display for pop-ups of products or services. What’s important is product discovery through a unique 6-perience with a Microsoft Touch screen. These counter- building the mind and heart connection. We that engages her five senses and her mind. top height fixtures allow consumers to freely define this as neuro-emotional connectivity. From Consumerism to Culture: Iconic touch and try products. Stock is stored under Just as we pay $4.00 for a cup of Starbucks cof- prestige brands (Prada, Apple) have already each section for easy replenishment like wine fee, it’s not just coffee; it’s a home-away-from- abolished the boundaries between fashion, bottles. The first two spheres are also the mod- home experience. architecture, design and contemporary art. els for smaller urban stores. They offer distinctive, intimate, yet public Level 3 – The full mix. The third sphere Prestige in Mass spaces which people love to be in and interact is comprised of open-sell units, which blend Our goal is to strengthen the consumer con- with their products. This meshing of consump- product display, visual communication and nection in-store and online by offering prestige tion and culture has heightened consumers’ stock for easy self-navigation. Best Sellers and in the Mass environment and presenting a expectations. Newness are also highlighted within these little something unexpected. From high productivity to high product– units. Combining intent-based shopping with • merchandising: Understanding how a connectivity: Our merchandising philosophy discovery and play is only one facet of our consumer shops in a particular store is key. builds upon the trademark attributes of Mass – model for we all know it won’t suffice unless How do we draw her to beauty? This is a accessibility, freedom and value – to elevate the she can find her favorite beauty toys. huge opportunity where the retailers and overall shopping environment. Our new floor brands can leverage each other’s strengths. design is both inviting and inclusive, break- product assortment • product assortment: A strategic balance ing away from the traditional linear layout to When shopping for beauty and fragrance, between core and limited offerings. Core create a new mindset of sharing and shopping consumers look for delivery on a heartfelt emo- products that she expects to find and limited together. High product-connectivity becomes tional desire just as much as functional use. offerings that are unexpected, injecting new- the new lens to drive sales. Mass tends to just sell products as commodi- ness and creating excitement. INTRODUCING The BeautySphere: A ties without nearly as much aspiration and • micro-marketing: Mass marketing is a multi-sensory playground where she can emotion as we see in Prestige. strategy of the past; micro-marketing is a discover great How do we elevate new way of satisfying her demands. With products and con- the product assortment? access to consumer information, we can nect with a tribe With a 3-tier strategy now better localize and segment our offerings. of like-minded to elevate the Product • digital connectivity: We are all chasing beauty lovers. The Assortment Model – digital insights. Let’s transform the quantita- circular design focusing on The Heroes, tive data mining into a qualitative experience is organized The Experientials and that is more relevant and useful. Lynne around three The Prestige. Greene said it best, “Follow the behavior. rings of exper- The Heroes: Mass is

Volume 3, Issue 2 | Summer 2011 9 full of iconic products. The first tier focuses Moving beyond the product assortment, for the brand, retailer and customer. on existing core brands to showcase their let’s engage her through customized initiatives Mother’s Day: The store will create a bond- hero products in much the same manner that and relevant communication opportunities. To ing experience for Mothers and Daughters Prestige does. Creating heroes will elevate reach individual communities, more emphasis in collaboration the customer’s experience to enhance the and resources need to be placed on local mar- with Bumble and product and brand perception. According to keting. It’s all about “Mass personalization.” Bumble, offering Estée Lauder’s Jane Hudis, “the hero prod- Providing relevant promotions to enrich the on the go ser- uct becomes consumer experience creates a winning situ- vices to promote a the engine that ation for all. The benefits? Increases in sales, curated selec- fuels the brand.” reductions in inventory and markdowns, and tion of products. With the 40th more importantly it loyalizes beauty custom- The brand will benefit from exposure to new anniversary of ers. customers and the store will leverage its on- Maybelline’s A higher level of engagement can be reached premise facilities such as the photo-studio to Great Lash, this by: Localizing the Customer, Personalizing the keep the customer in the store longer and give is a perfect oppor- Message, and Maximizing Resources. their customer the ability to share the experi- tunity to celebrate the product and its heritage Localizing: Content in the right context. ence with friends and family. and connect with the consumer. Localize the message by integrating the use August: The busiest time for back-to-school The Experientials: The second tier merchan- of geo-fence marketing tactics to segment and shopping, Clinique will engage all these shoppers dises by lifestyle to create emotional relevance. target the RIGHT customer. Using retailer by offering a limited edition 3 Step trial kit. Products will be curated across categories – for customer data- The set would be merchandised in the Beauty instance, a slumber party collection features bases, prestige Sphere and in key touch points such as the mud masks to a classic sleepover DVD. brands will be jeans department and the school supplies aisle. Collections will capitalize on what is in the able to “fence-off” The ULTIMATE shopping companion: We news as well as partnerships with role models geographic areas will engage the consumer with the ultimate whose popularity spans categories to not only to send messages shopping companion – the Smartphone. A animate Beauty, but allow Beauty to be mer- to customers who recent Google study shows that 79% of smart- chandised seamlessly in other departments. opt-in to their service. Starbucks is implement- phone consumers use their phones to help If she’s not shopping in Beauty, let’s bring ing this tactic in select locations and customers them with shopping. 95% of smartphone own- Beauty to where she is. who come within a one-mile vicinity of the ers look for local information on their devices The Prestige: The third tier brings prestige store will get a coffee coupon. Geo-fence can and 88% of those owners act within one day. products to Mass. The consumer wants what be arranged near an event or location that is This will be a key tool to announce localized she wants where she wants it. The first step related to the brand/store. collaborations in Mass merchants. would be to revive brands that already have Personalizing: For prestige to engage in credibility and cachet with limited distribu- Mass, we propose delivering personalized digital connectivity tion such as Paula Dorf or Dr. Brandt. This messages for complimentary limited services. From virtuality to reality, how do we offer creates a renaissance that re-introduces these Using customer profile databases, the brand an experiential connection beyond the store? prestige brands to lapsed and new consumers. can send a targeted message to loyal customers The answer: Digital Connectivity. According to The second is to create limited partnerships in select locations based on gender, ethnicity, Natalie Massenet, “When you’re selling from with contextually relevant prestige brands to age group, profession and interests. And to a digital screen you need to reach out to the introduce a new product, or feature icons like increase retention, a personalized customer consumer in entirely new ways… give them a the Clinique 3-Step Program. care message could be sent post-event. reason to come to your website.” Digital con- What Are The Benefits? Strategic planning In beauty we envision Elizabeth Arden’s Red nectivity is integrated into the online experi- is paramount for brands to maintain relation- Door Spa Services being offered to customers ence by entertaining, educating and evolving ships within the traditional channels. The in select locations through Groupon for an with the consumer. products would differ so as not to compete, exclusive time period. This promotion would ENTERTAIN me: Introducing Beauty 4 You. available in smaller sizes. Much like HSN and only come to life when the qualifying number The website combines the fun of discov- QVC appearances boost sales in other chan- of customers pre-purchase the service. ery with the best of multifunctionality. Our nels, featuring these limited prestige products Maximizing: Our approach in beauty will consumer wants to dream. And we need to would drive foot and e-commerce traffic, and maximize resources and reduce risk. Prestige INSPIRE her! lead to incremental share and sales growth. brands would set the parameters and qualify The main home page is the gateway to The benefit to Mass, in addition to elevating the criteria to receive the discounted service. the digital playground. From here consum- the assortment, is the halo effect for existing Aligning resources, the prestige brand will ers explore product assortment through sub brands and lift to core business. Visiting the bring its expertise and the retailer will facilitate domains, with store or going online to see what the buzz is the pop-up event. This allows prestige to the central beauty all about generates brand awareness and helps engage in a Mass environment while protect- image resembling boost the retailer’s credibility and expertise in ing its cachet and price point. a makeup vanity. Beauty. ENGAGE with Pop-Up Activity: Prestige When a product is comes to life in Mass through a calendar of selected, it POPS micro-marketing pop-up events, a beneficial value proposition up into the per-

10 Volume 3, Issue 2 | Summer 2011 sonal beauty vanity. Add everything! Remove weekly emails, including “Best in Beauty” polish change. items, switch shades, swap brands. Build a picks, invitations to pop-up services, or sneak Because inner beauty is just as important as personal beauty wardrobe! This play on reality peeks into limited edition products and sur- outer beauty, let’s make our future beautiful offers a differentiated online experience that is vival kits. together. more relevant and personal to her. EVOLVE with me: Beautiful For the Future Consumers are looking for play and inti- (BFF Club) is the loyalty program that targets Future of Prestige at Mass macy. Gaming through social media, online the mind, body and heart. The basis of this Through a multisensory playground, an quizzes and apps enhance the interaction program is to leverage expanded assortment, localized and personal- and provide a sense of adventure and escape social connectivity as a ized experiences, digital engagement, and outside of their daily routines. In the “Eye Spy” form of value for today and social responsibility, we can inject NEW values Beach Game, customers search for hidden tomorrow. BFF Members that focus on the consumer. Because it’s all items like a sunscreen bottle. Once the object receive points (from dollars about the customer. is found, questions are asked about skincare spent, writing product n Engage her senses. Without the experiential protection or beach safety. reviews or commenting on the Beauty Stylist’s dimension, she won’t be engaged. EDUCATE me: The Virtual Beauty Stylist blog), which they turn into rewards. n Curate for her. Make it easy for her to find is that great combination of beauty expert and Playing online games and entering contests products she wants and discover something personal friend. Socialize via emails, texts or can earn you points as well as community special. video chats – 24 hrs a day. Upload your photo activism through volunteering, donating, or n Target the right customer. Collaborate to from Facebook and the Virtual Beauty Stylist recycling beauty packaging. Once points are personalize the message. will match your perfect foundation shade accumulated, they can be gifted to family and n Capture her heart. Make the online experi- and suggest complementing color palettes. friends or to charities. BFF Points can also be ence personal and relevant. Leveraging targeted micro-marketing initia- redeemed for beauty samples, limited edition From the company to the consumer, and the tives the Beauty Stylist will send personalized products or complimentary services like a nail community, BEAUTY IS FOR ALL! n

Capstone 2011 continued from page 1

“guest” (Target’s term for their customer) and always searching for new ways to meet the wants and needs of their guests and to “delight” them. This was Target’s second event collaboration with the FIT Master’s Program. The Graduation Awards Ceremony followed the student’s presentations. The Scholarship Recognition Professors Carlson and Kanlian with Alumni Association Chair Professor and Advisory Board member Mary Manning Awards were presented this Laurie Lam (Class of 2009) and Vice Chair Douglas Bender (Class with Class of 2010 Capstone Group Leaders Nichole year by Dr. Brooke Carlson of 2007). Kirtley (L’Oréal) and Marixsa Rodriguez (VSB). to: Devin Homsey, Chanel; Evelyn Lu, Zeel.com; Anahita Mekanik, IFF; Professor Stephan Kanlian presented the Lindsay Novellano, Elizabeth Arden; and evening’s final award, the Department Medal. Pei Wong, Chanel. The Outstanding Scholar The award is selected by the faculty, and FIT Master’s Program Award was presented on behalf of the faculty awarded to the graduating student who has Faculty Contacts to Stephanie Dishart, L’Oréal USA. Shashi excelled throughout the program in every area:

Batra, President, Victoria’s Secret Beauty pre- academically, professionally, in the area of lead- CHAIRPERSON sented the Victoria’s Secret Beauty Recognition ership and in service to the program and fellow Stephan Kanlian for Outstanding Leadership award, as selected students. This year’s recipient was Stephanie 212-217-4306 by her peers in the Class of 2011, to Kadi Dishart of L’Oréal USA. [email protected] Thompson of Victoria’s Secret Beauty. The evening concluded with a wonderful ASSISTANT PROFESSOR Normally awarded to an adjunct faculty reception hosted by Target, where students, Dr. Brooke Carlson member, this year’s Estée Lauder Companies alumni and industry executives got a chance to 212-217-4252 Faculty Leadership Award, presented by Jane meet and greet and discuss the exciting ideas [email protected] Hertzmark Hudis, Global Brand President, presented earlier that evening. n www.fitnyc.edu/cfmm was a surprise write-in campaign for new full- more photos on page 12 time faculty member, Dr. Brooke Carlson.

Volume 3, Issue 2 | Summer 2011 11 Leadership in Action: Recognizing Achievement

Save the Dates!

Class of 2014 Application Deadline (for Fall 2012 admission) Thursday, March 15, 2012 For details visit our website: fitnyc.edu/cfmm

Capstone Presentations Class of 2012 Thursday, May 17, 2012 Shashi Batra, President of Victoria’s Secret Professor Brooke Carlson receives the Estée Haft Auditorium at FIT Beauty (VSB), presents the VSB Leadership Lauder Companies Faculty Leadership Award Award to Kadi Thompson, a VSB employee from the brand’s Global President Jane Hudis. and Capstone Group Leader, as voted by her peers in the Class of 2011.

FIT Program Chair Stephan Kanlian Liza Repay of Clinque, Class of 2011, presents digital engage- Executive Mentors for the FIT Pro- presents the Department Medal to ment as a key component in the future of Mass retail. gram Rochelle Bloom, President of the L’Oréal’s Stephanie Dishart, who also Fragrance Foundation, and Camille received the Outstanding Scholar McDonald, President of Bath & Body Award for the Class of 2011. Works.

Professor Brooke Carlson with Scholarship Recognition recipients (left Waiters dressed in red and a jazz trio were revealed at the end of the to right) Lindsay Novellano (Elizabeth Arden), Pei Wong (Chanel), Anahita event to welcome attendees onstage for a Target-sponsored reception. Mekanik (IFF), Devin Homsey (Chanel) and Evelyn Lu (zeel.com).

12 Volume 3, Issue 2 | Summer 2011