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Cosmetics Manufacturing Business Plan


Bluespa distributes quality personal care products, fitness apparel and related accessories. This is accomplished through a combination of company-owned retail outlets and wholesale distribution.

3.1 Product Description

Skin Care
The initial launch for skin care products will be our "Water" range. The products in this range have been developed in our labs in Brittany. The Brehat archipelago is unique in the entire world for its wide range of sea algae and seaweed. For four billion years the warm waters of the Gulf Stream have been flowing north along the French coast creating a unique ecosystem. The details of our product development and the relationship between the sea and the human body will be explained in greater detail in the marketing section. In this section we intend only to define the initial product range, each products benefits and our pricing strategy. Our methodology in choosing the water range for our initial launch is based on two primary issues:

  1. The benefits of thalasso treatment are just coming to light in America.
  2. Our name and logo make this launch of products from the sea a natural. We will be able to develop a meaningful and moving product story through this relationship.

The Water Range

Biocatalyst Tonic

Purpose: Finishes cleansing and leaves skin perfectly clean. Relieves, soothes and softens skin. Reactivates the physiologic epidermis' functions. Prepares the skin for make up. Hydrates the entire upper layer of epidermis.

Primary ingredients: Corallina officinalis contains trace elements of marine minerals and in excess of 300 enzymes. They promote elasticity of the dermis' structural fibers (keratogenesis). This ingredient prepares the skin for cosmetics. Critmum maritimum extract adds purifying and regenerating properties. Rose water contributes a relaxing effect.

Skin type: All

Use: Spray on nightly after make up removal and before applying night creams or during the day to relieve stress and brighten the complexion.

Eye makeup remover

Purpose: Removes eye make up. Soothes and relieves sensitive skin in eye area. Fortifies eyelashes.

Primary ingredients: Rhodophycea extract promotes remineralization and hydration of skin while fortifying eyelashes. Rose water to tone sensitive skin while soothing and relieving eye shadows.

Skin type: All

Use: Soak on cotton ball lightly and gently apply on eyelids to remove make up.

Cleansing cream

Purpose: Soothes skin during make up removal. Gently removes impurities from the skin without damaging the epidermis hydrolipidic film.

Primary Ingredients: Crithmum maritimum extract is rich in essential oils with regenerating and anti-inflammatory properties. Shea butter to nourish the skin and add suppleness. Palm oil and Groundnut oil act as cleansing agents and soothe the skin.

Skin types: Sensitive, delicate and mature skins--gentle enough to be suitable for use as a baby cream.

Use: Apply on face and neck nightly to remove make up. Finish with Biocatalyst Tonic.

Multi protection day cream

Purpose: Acts like a second skin. Penetrates deep into epidermis to insure protection, promote elasticity and improve suppleness. Clarifies skin while soothing and hydrating.

Primary ingredients: Ulva lactuca extract, a fragile green algae that can resist wave pressure up to 20 tons per cubic centimeter because of an elastic fiber network similar to elastin. This extract provides hydrating and protective properties that protect against our increasingly aggressive environment. Shea butter nourishes skin and acts against dehydration.

Skin types: Dry and Normal

Use: Gently massage a few drops onto clean and toned skin each morning.

Regenerating facial scrub (micro marbles)

Purpose: Cleans off dead skin cells to promote regeneration of healthy new cells. Enlightens complexion and imparts radiance to the skin. Softens and purifies the epidermis.

Primary ingredients: Spherical micro-marbles exfoliate without causing irritation. Crithmun maritimum extract purifies epidermis and boosts cell regeneration.

Skin types: All

Use: Every other week for dry and sensitive skins, weekly for oily and normal skin types. Apply gently on clean skin, rinse with water and apply Biocatalyst Tonic.

Hydrating Cream Mask

Purpose: Softens skin. Provides equilibrium for cutaneous functions. Regenerates, while providing firmness. Maintains hydration of the epidermis.

Primary ingredients: Ulva lactuca extract is efficient in fighting skin slackening. Codium tomentosum extract provides long-lasting deep hydration of the upper epidermal layer. Enriched vitamin A, for skin regeneration.

Skin types: Is suitable for all skin types but most beneficial for sensitive skin.

Use: Apply on face, around eye contour area and on the neck after a gentle exfoliation. Allow to settle for three to five minutes, then wipe off excess with a soft tissue.

Purifying Cream Mask

Purpose: Smoothes skin. Regenerates, enlightens and firms the skin. Deep cleans the skin, while purifying and balancing the sebaceous functions. Maintains hydration of the upper layers of the epidermis.

Primary ingredients: Laminaria digitata extract. This brown algae has anti-lipasic and sebostatic activities to fight against inflammation and regulate sebaceous secretions. Critmum maritimum extract rich in essential oils that purify the epidermis and boost cellular regeneration. Vitamin A palmitate, to reinforce suppleness.

Skin types: Oily and combination skins.

Use: Apply on face (except eye area) and neck after a peeling or when skin is tired. Allow to settle for five to seven minutes, then gently remove excess.

Peel-Off facemask

Purpose: Forms a polymeric mask that cleans the skin and lightens the complexion.

Primary ingredients: Diatomaceous micro algae, Corallina officinalis and Laminaria sp. combine to increase cell metabolism.

Skin types: All

Use: Apply to face weekly. Leave on the face approximately ten minutes then peel off starting from the neck.

Royal sea cream (remineralizing face, body and hair algae mask)

Purpose: Toning, relaxing, remineralizing and detoxifying for the face, body and hair. Used as a hair mask it nourishes the bulb, soothes the scalp and strengthens the hair shaft. Applied on the body it becomes a remineralizing source.

Primary ingredients: Rhodophycea and Pheophycea provide minerals necessary to improve metabolism and elasticity of skin fibers. In addition they aid in the elimination of skin toxins. Red seaweed adds hydrating properties to the upper epidermal layer that are essential to skin suppleness.

Skin types: All

Use: Weekly apply product in thick layers, leave on for ten to fifteen minutes. Finish with a shower or a shampoo.

Body lotion (intensive hydration)

Purpose: Fights dryness, restores and maintains hydrolipidic film, nourishes, regenerates, prevents aging and improves elasticity. Protects skin from the harsh environment. Leaves the skin firm and smooth.

Primary ingredients: A powerful marine osmoregulator extracted from green seaweed and Chondrus crispus extract maintain an in-depth long-term hydration rate of the epidermis. Carraghenans work on the skins surface with the skins natural proteins to create a protective film. Vegetable oil from Karite butter increases cell regeneration and insures suppleness.

Skin types: All

Use: Apply daily on dried skin all over the body with a soft circular motion.

Super firming gel (algae firming gel)

Purpose: A firming and toning effect on the skin combined with a lipolytic action to support the acceleration of the elimination of fat cells.

Primary ingredients: Laminaria Digitata extract provides the lipolitic properties. Pelvetia Canaliculata improves blood circulation.

Skin types: All

Use: Gently massage the gel into belly, hips, and buttocks. For legs and thighs apply with an upward motion.

Tensing and regenerating cream

Purpose: Smoothes and tenses the epidermis. Prevents dehydration of dry skin areas. Re-enforces cutaneous elasticity. Creates an instant lifting effect.

Primary ingredients: Algae oil from Laminaria digitata is rich in vitamin A to protect from free radicals and aid in fiber regeneration, vitamin E which promotes hydration, vitamin C to speed up the healing process and vitamin F (from the Omega 6 family) to promote suppleness and nourish the skin.

Skin types: All

Use: In morning and evening apply a small amount of the active serum on arms, tummy, legs, bust and/or buttocks. Slightly massage until fully absorbed into the skin.

Sparkling sea pebbles

Purpose: Relaxes and soothes the skin. Re-mineralizes the skin by providing trace elements and minerals required for the body's natural balance. Delicately perfumes the skin.

Primary ingredients: Atomized sea water extracted from the Gulf Stream is combined with Patchouli (anti-inflammatory), lemon zest and mint (invigorating) and essential oils for aromatheraputic benefit.

Skin type: Hypoallergenic for all skin types.

Use: After stepping into the bath place the pebble in the small of the back to benefit from the Jacuzzi effect. It can also be used for a very relaxing footbath.

Soothing after-sun gel

Purpose: Quickly calms the epidermis after sun exposure. Instantly stops the heat sensation. Rehydrates the epidermis.

Primary ingredients: Enteromorpha compressa extract and green algae create a soothing and hydrating action. This combination of ingredients has a peptide action that has been proven excellent in fighting problems caused by over-exposure to the sun (tightening, stinging, itching and heat sensation). It also reduces the intensity and duration of sunburn. Codium tomentosum extract is a powerful marine osmoregulator that helps in maintaining the epidermis hydration rate at the optimal level.

Skin types: All

Use: Apply generously on face and body. Within two hours of applying after-sun gel apply the hydrating milk to preserve and enhance the skins beauty.

Sun care hydrating milk (SPF 8)

Purpose: Protect the skin from the suns harmful rays. Ensure a uniform tan. Soften and smooth skin. Preserve the epidermis hydration.

Primary ingredients: A mix of three algae extracts to obtain protection against UVA and UVB rays while still allowing the skin to tan. A vegetable oil cocktail, rich in vitamins A and E to reinforce the skins hydration capacity and nutrients to ensure the skins suppleness. Glycerin provides a natural dampener to soften and smooth the skin.

Skin types: All

Use: Apply in an even layer all over the body. Renew application frequently during extended periods of sun exposure.

Anti-aging protective sun cream (SPF 12)

Purpose: Ensure a safe and rapid suntan. Preserve epidermal hydration. Fight against premature aging of the skin caused by the sun.

Primary ingredients: Chritmum Maritimum and Phaeodactylum Tricornotum phylo plankton combine to create a natural synergy rich in the essential fatty acids EPA/DHA. This ensures cellular regeneration and the formation of ceramids that are essential to the balance of the hydrolipidic film. Oil of Karite butter ensures the skin will maintain a supple texture and appearance. Palm oil (nourishing and softening), liquorice extract (anti-inflammatory) and a insaponifiable of Soya and Avocado extract aide in maintaining the skins fiber and give the cream its total care capacity.

Skin types: All

Use: During or before sun exposure. Apply frequently during extended periods of exposure to the sun.

Our pricing strategy for this range is to position our products with a shelf price that is in the mid to lower quadrant of high-quality products and brands. We have accomplished this by making careful market comparisons and adjusting our packaging size.

Fitness Apparel

Our initial apparel launch will be very tight and well focused. The range will include seven styles. Three of the styles will be offered in three colors with the remaining four offered in black. Sizing will be S-M-L in all items. The total number of stock keeping units will be 39. This creates a very manageable and understandable assortment. Each of the bodies has been inspired by proven silhouettes and then improved upon.

Long sleeve poly pique V-neck

Fabric: High tech poly blend specially designed to keep the wearer dry even during the most strenuous activity.

Activity: Medium to high activity workout.

Colors: Three (Black, plus two seasonal fashion colors)

Sizes: S-M-L

Suggested Retail: $78

Wholesale: $36

Landed Cost: $18

Long sleeve poly pique mock

Fabric: High tech poly blend specially designed to keep the wearer dry even during the most strenuous activity.

Activity: Medium to high activity workout.

Colors: Three (Black, plus two seasonal fashion colors)

Sizes: S-M-L

Suggested Retail: $78

Wholesale: $36

Landed Cost: $18

Lycra jacket - hip length

Fabric: Mid-weight stretch sport Lycra

Activity: Wear to and from the gym.

Color: Black

Sizes: S-M-L

Suggested Retail: $128

Wholesale: $60

Landed Cost: $30

Lycra pant

Fabric: Mid-weight stretch sport Lycra

Activity: Special loose fit designed for yoga. Also excellent fit for the over 40 woman who no longer wants to wear tights to the gym.

Color: Black

Sizes: S-M-L

Suggested Retail: $98

Wholesale: $46

Landed Cost: $23

Lycra tight

Fabric: Mid-weight stretch sport Lycra

Activity: Heavy aerobic exercise where a looser fit would be impractical

Color: Black

Sizes: S-M-L

Suggested Retail: $98

Wholesale: $46

Landed Cost: $23

Lycra short

Fabric: Mid weight stretch sport Lycra

Activity: Heavy aerobic exercise

Color: Black

Sizes: S-M-L

Suggested Retail: $68

Wholesale: $32

Landed Cost: $16

Lycra long sleeve crew top

Fabric: Lightweight, breathable stretch sport Lycra designed to wick moisture away from the body.

Activity: Post workout top designed to keep muscles warm and loose.

Color: Black

Sizes: S-M-L

Suggested Retail: $88

Wholesale: $42

Landed Cost: $21

Rib cotton crew

Fabric: Lightweight ribbed cotton

Activity: To and from the gym

Colors: Black and two seasonal colors

Sizes: S-M-L

Suggested Retail: $38

Wholesale: $16

Landed Cost: $8

3.2 Competitive Comparison

Bluespa will occupy a unique market position. No other brand offers a specialty line that includes skin care, cosmetics, fitness apparel and accessories. However, within each category significant brands do exist. Quality and price vary widely within each group. Bluespa will be positioned as a quality brand. We have eliminated the drugstore and discount brands from this comparison.

In the skin care and cosmetics category the competition can be divided into three groups: Commercial--i.e. MAC, Origins, Philosophy, Erno Laslo and Shesheido; Clinical--i.e. Kiehl's, Clinique, Clarins and Dr. Hauscha; Spa--private label brands associated with spas.

The commercial brands are primarily sold through department stores. They vary widely in quality from Origins to Shesheido. They also vary widely in price. Their major advantage is their financial strength and their department store relationships.

The clinical brands are perceived to be "authentic." Their image is based upon the perception of treatment qualities verses purely cosmetic benefits. These brands are sold through their own retail outlets, specialty stores, department stores and/or health food stores. Kiehl's is perceived as one of the most authentic of the clinical brand.

The spa brands are sold almost exclusively at the spas they are associated with. This close affiliation provides a validation for the products but limits their ability to achieve wide market distribution. Bliss and Aveda are notable exceptions. These two brands have achieved wide market distribution and brand recognition.

In fitness apparel and accessories the female customer has been grossly overlooked. Reebok and Avia had the best chance of capturing her at one time. However Reebok abandoned her to try to become a "legitimate" sports brand and acquired Avia. Avia has since been sold and has all but disappeared. Meanwhile the big two brands (Nike and Adidas) have ignored her. Recently Nike announced the formation of a women's division as a separate business unit. While this offers the possibility of a major competitor in the women's fitness category, it also highlights the opportunity. Puma is the only brand that has developed a line of fitness apparel focused specifically at this consumer. Their Nuala line has been developed with Christy Turlington. They have positioned this line to sell through women's specialty stores rather than traditional sport retailers. Early sales have been exceptional, further highlighting the potential within this category.

Bluespa will develop our market position by combining a retail strategy that includes a day spa with a wholesale distribution strategy. Bluespa will acquire the validity afforded the spa brands and access to broad distribution. Bluespa skin care and cosmetic products will offer therapeutic benefits to the user based upon the principles of Thalasso therapy in our water line and Botanical treatments in our earth line. Our color cosmetics will be mineral based and provide the user with esthetic benefits while nourishing the skin. In addition to providing retail appropriate packaging we will develop bulk sizes for distribution within the spa trade. Most day spas use generic products and do not have the ability to develop a private label line. The apparel and accessory lines will combine the newest in technical fabrics with fit specifications that allow the wearer full range of movement. We have developed affiliations with select yoga and fitness facilities for our apparel. All of our products will be positioned at the quality conscious consumer. Our marketing campaign and PR positioning will reinforce the Bluespa image. Our message will be to identify the benefits of our products and to develop an image that makes Bluespa products highly desirable. Meanwhile, our pricing strategy will be to maintain retail price points in the lower quadrant of the top quality brands. A detailed comparison of our pricing as it relates to our target market is in the appendix.

3.3 Sourcing

Skin care

Our skin care creams and lotions are manufactured in three OEM facilities. Two are in France, one is in Southern California.

Our primary facility is located in Brittany, on the north coast of France. They are considered one of the top algae specialists in the world. They process in excess of 500,000 tons of algae per year (30% of the current dry weight production world wide) for both agrochemical and cosmetic use. Founded in 1957, the company has grown to $300,000,000 in annual sales with 300 employees.

Our partnership gives us access to the following critical resources:

  • The ability to produce both small run (10 kg) and large volume (10,000 kg per day) of creams and lotions.
  • An innovative R&D department with a strong technical background.
  • An experienced quality control department.
  • Managed compliance with Government rules and regulations.

Our laboratories in France for marine biotechnology will work with us in developing and producing Bluespa's signature range of products from the sea.

Our second facility is located in the South of France. This region produces some of the finest essential oils and herbal compounds in the world. The facility gives us access to the latest developments in aromatherapy, skin care, fragrances and essential oils.

Our third factory is located in southern California. Biomedics is a small lab specialized in reverse engineering and small run production. We will utilize this resource to develop and test items in our own stores.

Packaging for the skin care products is being purchased from Luxepack. They manufacture in Europe and have distributors in the United States. This combination allows us to have access to the needed packaging at each of our production facilities without the need to purchase or warehouse large quantities. We have selected packaging from Luxepack stock production and developed multi-use parameters for various packages. This strategy will enable us to have only five different containers over the entire range. We will label each product with a self-adhesive label rather than screen-printing the packages, further leveraging the cost and efficiency of the packaging.

Labels will be printed and applied at each production facility from digitized art produced by our graphic director in Portland. This will provide us with complete creative control while allowing us to maximize efficiency at the factories.


Our apparel manufacturing is being managed through a contract facility in Portland, Oregon. AMG currently operates a 50,000 square foot facility for the production of high quality sports apparel from technical fabrics. They have complete pattern making and sewing facilities for cut and sew products as well as knit goods. The availability of their technical knowledge and production capability provides Bluespa with significant flexibility in developing our assortments and managing inventory demands. During the early phases of development AMG will also handle fulfillment of apparel orders.

Pricing structure - skin care

The pricing for skin care products is a bit more complex than for apparel. Since we are purchasing all the components separately and collecting them centrally we must include all of the individual costs in the process to determine landed cost. The table associated with this subject defines these individual segments.

Pricing structure - apparel

Our apparel pricing structure positions Bluespa as a quality brand. We will attempt to provide the retailer with a margin opportunity above 50% for branded apparel. Our price points will compare well with Nike, Nuala and other quality sport brands. We will be very well priced in comparison to Prada sport, Polo sport and the other designer brands venturing into this area.

3.4 Future Products

A corner stone of our strategy is the creation of sustainable growth through a combination of new product launches and replenish-able basics. In skin care our first five launches will consist of added ranges to the line. Bluespa's product line is based on five elements of the universe. Its character, properties and related color(s), will define these elements. Body care products will be scented with essential oils that are known to create or improve the related character. All body and bath products, except after sun care, will ultimately be offered in five ranges. Sun care will only be offered in balancing, calming and soothing. Because face creams and lotions are meant to rebalance and moisturize the skin, face care will be unscented and will only be offered in the Water range. Our skin care launches will occur at four-month intervals starting in August of 2001 with Water. Followed by the Earth range in the spring of 2002, Air in mid 2002, Fire in August 2002 and Metal in spring of 2003.

The colors associated with each range will allow us to create a line of cosmetics that works for all skin tones and an apparel assortment that covers the basics and can respond to color trends. The initial apparel launch will be August 2001. Our cosmetic launch will occur in spring 2002. These dates are for wholesale. Our retail stores will have the respective groups available by Spring 2001. Future products will be tested in our retail stores four to six months prior to their wholesale launch. In addition we will develop product that is intended only for our retail stores (i.e. brushes and sponges). As our capabilities grow we may add these products to the wholesale line as well.

Bluespa is launching a brand. The successful execution of this strategy will provide us with the ability to transcend into other categories in the future, as long as we define our image and stay true to the base precepts. (Much like Ralph Lauren has done with his tie business.) For example, properly executed these five precepts can be applied to home products. We believe our ability to create new product opportunities and growth will only be limited by our imagination and our ability to attract talented people who understand the concept of branding.