Date:

To:
From:

April18,2016
PattyCady
AlieHelland,ReillyBerggren,DustinPatchen,DylanJacot,
EdwardHawley
FeasibilityReportforanULTAStoreintheQuadCities

Subject:

AttachedisthefeasibilityreportwecreatedtodetermineifanULTAstorewouldbeaviable
optionforthequadcityarea.Wefoundinformationoncompanybackground,conducteda
marketanalysis,developedalocationproposal,andamarketingplan.Fromthereweanalyzed
ourinformationanddeterminedifULTAwasapracticalstoretobringtothePalouse.

Tofindthisinformationwedividedtheresearchupamongourgroup.Wewereabletofind
populationinformationfromthegovernmentcensus,andthemajorityofotherinformation
fromtheULTAAnnualReport.WecontactedthePalousemalltoseeiftheyhadpractical
optionsforalocation.Thenwecompiledourvariousinformationintoonedocumentand
createdthefeasibilityreport.Secondaryresearch,foundwasusedinthisreport.

WefoundthatULTAwouldbeagreatstoretocometothePalouse.ThePalousemallisthe
locationwebelievewouldbestsuitbothULTAscustomersandthecompany.Wefoundwith
littletonodirectcompetition,andfourcollegesoruniversitiesintheareatherewouldbe
enoughbusinessthroughouttheyeartoensureULTAismakingaprofit.ULTAsabilitytokeep
customerslongtermandthepopulationdemographicsintheareawillprotectULTAsrevenue
evenduringthesummermonthswhenstudentsarenotintown.

Feasibility Report for

Pullman/Moscow Location

ReillyBerggren,EdwardHawley,AlieHelland,DylanJacot,andDustinPatchen

April18,2016
1


English402,Section1
Project4:CollaborativeResearchandRepurposing

ULTABeautyPullman/MoscowLocation:
AFeasibilityReport

Preparedfor: PattyCady

Preparedby: ReillyBerggren,EdwardHawley,AlieHelland,DylanJacot,andDustin
Patchen

April18,2016

Table of Contents

ExecutiveSummary

Introduction

ProblemStatement

CompanyOverview

MissionStatement

HistoricalDirectionandResults

BusinessGoals

CustomerBase

LocationofOperations

FutureProjections

MarketAnalysis

Industry

SWOTAnalysis

CompetitionAnalysis

10

TargetMarket

10

PopulationAnalysis

10

GrowthOpportunities

11

LocationProposal

11

MarketingPlan

12

StrategiesandTactics

12

Positioning

12

ChannelsofDistribution

13
3

Rationale

13

Conclusion

13

References

15

OriginalPitchProposal

16

Executive Summary
WeresearchedthefeasibilityofbringinganULTAstoretothequadcityarea.Wefoundthe
beautyproductsandsalonmarketinthePalousehasnotbeenadequatelyfilledbythestores
alreadyhere.Withoutanyrecognizablebrandingthesalonsintheareadonotdrawstudents,
thuslosethatcustomerbase,storesalreadyinplacehaveextremelylimitedmakeupoption.
Therearemanybeautysupplystoresthathavethepossibilityoffillingthisvoid,wechoseto
lookintoULTAbasedontheircustomerserviceandexclusiveproducts.In2014thebeauty
productsandsalonmarketintheUnitedStateswasa$121billionindustry(opaciuk).

TofindinformationaboutULTAandtheirmarketrequirementsweusedinformationfound
online.ULTAisgrowingatafastpace,inthelastfiveyearsnetincomehasincreasedby
$46,525,000peryearonaverage(AnnualReport).Theresearchconcludedtherewasan
adequatemarkettobringULTAinto.Thepopulationinformationfoundtherewas79,000
womeninthequadcities,creatinganamplecustomerbase(census.gov).ThePalousemall
wouldbetheideallocationsbasedofftheirspaceavailable,ULTArequires10,000sqft,and
spaceinthemallcouldberenovatedtofitthesespecificneeds(AnnualReport).Toeffectively
marketULTAitisimportantweneedtousebothdirectmailservices,alongwithalargesocial
mediapresence.ULTAalreadyhasarewardprograminplace,ULTAmateRewards,thisprogram
representsover80%ofnetsales(AnnualReport).Weplantousethisprogramandthebenefits
offeredinittoappealtothefouruniversitiesinthearea.

WedeterminedULTAwouldfulfilltheneedsofthecommunitywhilealsomakingaprofitfor
thecompany.ItwouldbefeasibleforULTAtoopenastoreinthePalousemall.Werecommend
ULTArentsandrenovatesspaceavailableinthemalltomaximizetheireffectivenessinthe
community.

Introduction
Todeterminethebestcourseofactionfortheinvestor,ourteamhasbeentaskedwith
researchingthefeasibilityofopeninganULTABeautystorelocationinthePullman/Moscow
area.Inthisreport,wereviewULTAsbusinessgoalsandexaminethequadcitiespopulation,
marketanalysis,locationproposal,andamarketingplanforimplementation.

InadditiontoULTAswebsite,mostofourresearchhascomefromULTAs2014annualreport.
Thisdetailedandextensivedocumentdetailsthevisionandgoalsofthecompanyaswellas
howtheyhaveperformedinthepast.

Currently,therearenoestablishedcosmeticsretailersthatsellprestigebeautyproductswithin
50milesofthePullman/Moscowarea.TheclosestULTAlocationisinSpokane,whichis80
milesaway.WebelievethatthereisahighdemandandlowcompetitionforanULTABeauty
store.WebelievethebestlocationforthisstoreisinthePalouseMallinMoscow,Idaho.The
purposeofthisfeasibilityreportistoprovidetheinformationnecessaryfortheinvestorto
decidewhetherornottoinvestinthisproject.Ourteamwillalsoprovideanopinionaboutthe
feasibilityofthisproject.

Problem Statement
Inthequadcityareatherearealotofwomenwhosebeautyproductandsalonneedscannot
bemetbythestoresavailablenow.Thereisalackofstorescateringtotheyoungmarket.
WomenofallagesanddemographicsuseproductssoldbyULTA.Manywomenpreferhighend
makeupbrands,butareunabletopurchasetheminthePalousearea.Theoptionsformakeup
inthePullman/Moscowarealimitedtothedepartmentstoresthatselldrugstorebrands.
LewistonandClarkstonalsohaslimitedoptions,whiletheyhaveasalonsupplystoretheydo
nothavethemakeuptocompetewithULTAinthatcategory.

Salonsintheareadonothaveaconcretereputationwithstudents.Studentsoftentravelhome
togettheirhairdone,thequadcitiesarelosingoutontherevenuethatitcouldgenerate.
Aestheticiansandbeauticiansintheareadonothaveanywellknowncompaniesthattheycan
workfortomakeanameforthemselves.Nocompaniesintheareahavebrandrecognitionand
thereputationofcommendableservice,makingitdifficultforthevariousbeautytechniciansto
findworktofurthertheircareer.Withoutopportunities,likepositionswithULTA,thereisno
drawtokeepqualitytechniciansinthequadcities.

Company Overview
MissionStatement
ULTABeautyis
focusedonprovidingaffordableindulgencetocustomersbycombiningthe
productbreadth,valueandconvenienceofabeautysuperstorewiththedistinctive
environmentandexperienceofaspecialtyretailer.Offeringmorethan20,000productsfrom
over500wellestablishedandemergingbrands,ULTAhasquicklybecomeoneofthelargest
andmostsuccessfulbeautyretailersintheUnitedStates
(ULTAWebsite).

HistoricalDirectionandResults
Before
1990,prestige,massandsalonproductsweresoldexclusivelythroughdistinctchannels.
Departmentstoressoldprestigeproducts,drugstoresandmassmerchandiserssoldmass
products,andsalonsandauthorizedretailoutletssoldprofessionalhaircareproducts.25years
ago,RichardE.GeorgeopenedthefirstULTAstoreandchangedthecosmeticsretail
experience.ULTAskeybusinessaspectsofonestopshopping,acompellingvalueproposition,
convenientlocationsandawelcomingshoppingenvironmentarewhathasmadeULTAoneof
thetopcosmeticsretailersintheunitedstates
(ULTAWebsite).

BusinessGoals
MostofULTAsbusinessgoalsareaboutgrowth.ULTAhopestohavemorethan1,200storesin
theUnitedStatesandareworkingtowardincreasingecommerceto10%oftheirbusinessin
thenextseveralyears.Overall,ULTAhopestocontinuetoacquirenewcustomersandbetter
thecustomerexperienceattheirstores
(AnnualReport).

In2014,ULTAsetouttorefreshtheirlongtermgoalsandgrowthplan.Theydefinedtheir
visionforthefuture,whichistobethemostlovedbeautydestinationoftheirguestsandthe
mostadmiredretailerbytheirassociates,communities,partners,andinvestors.ULTAhas
identifiedsixstrategicimperativestodeliversustainablegrowth
(AnnualReport).

1. Acquirenewguestsanddeepenloyaltywithexistingguests.
2. Differentiatebydeliveringadistinctiveandpersonalizedguestexperienceacrossall
channels.
3. Offerrelevant,innovativeandoftenexclusiveproductsthatexciteourguests.
4. Deliverexceptionalservicesinthreecoreareas:hair,skinhealthandbrows.
5. Growstoresandecommercetoreachandservemoreguests.
6. Investininfrastructuretosupportourguestexperienceandgrowth,andcapturescale
efficiencies.

CustomerBase
ULTApridesitselfbyhavingavariedcustomerbase.Theirproductsandservicesappealtoall
incomelevelsandages.ULTAhasmerchandiseatall
pricepointssonopersonisexcludedfrombeingableto
affordtheirproducts.ULTAputsalldemographics
productsunderoneroof.Productsthatappealtoyoung
girlsallthewaytoproductsforelderlywomenareall
foundwithinoneULTAstore.Inadditiontotheir
extensivewomensproductsULTAoffersmerchandise
menaswell.Mostbeautyproductcompaniesfocus
mainlyonwomen,ULTAoffersmensproductssuchas:
cologne,haircare,andskincare.Theyhavehighend
mensproducts,likeextravagantshavingkits,in
additiontostandardshampooandfacecareproducts.
TokeepcustomersULTA'sULTAmateRewards,which
sendscouponstocustomersontopoftrackingpoints
customersearnonpurchasesgivingrewardsforpoint
values.ULTAscouponsandsaleshelpmakethem
accessibletoalldemographics,oftenmakinghighend
makeupsimilarinpricetodrugstorebrands.Since
ULTAscustomerbaseissobroadtheymuststock
productsthatappealtoeachdemographicinthemarket.

LocationofOperations
ULTACorporateheadquartersislocatedinBolingbrook,Illinois.Theircentralizedlocationinthe
UnitedStateshasmadethemappealingtoboththeeastandwestcoast.In2014ULTAhad774
totalproperties,currentlytheyhavemorethan860locationsasofthebeginningof2016.ULTA
storeareacrossthewholecounty,locatedinall48contiguousstates(AnnualReport).ULTAs
threedistributionfacilitiesarelocatedinArizona,Illinois,andPennsylvania.

FutureProjections
Withthesestrategies,ULTAworkstowardtheirvisionofbeingthemostlovedbeauty
destinationandretailerbyguests,associates,andinvestors.Thecustomerrelationshipisoneof
ULTAsmosteffectivetoolsforsuccess.Theloyaltyprogram(ULTAmateRewards)grewto
reach15millionactivemembersin2014andrepresentedmorethan80%ofnetsales(Annual
Report).Valuingthecustomerandtheirexperienceinstoreshasbeeneffectiveinretaining
customers,frequencyofpurchases,andincreasedspendingpertransaction.

Market Analysis
Industry
Thebeautyproductsandsalonservicesindustryhasbeengrowingoverthelasttwentyyearsat
arateof4.5%onaverageperyear(opaciuk).In2014,whichisthemostrecentdataavailable,
totalretailsalesforthebeautyproductsandsalonservicesindustryintheUnitedStateswere
$121billion.$71billionoftotalsaleswasinbeautyproducts,salonserviceswhichconsistsof
$50billionoftotalsales(AnnualReport).

ULTAhasauniquespotinthebeautyproductsandsalonservicesmarketbecausetheyhave
suchvariedproducts.Notonlydotheyofferalllevelsofproducts,rangingfromdrugstore
brandmakeupandhaircareallthewaytohighendprestigeproducts,theyalsohavesalon
servicesinstore.ULTAcompetesinallareasofthemarketwhileitscompetitorsonlyofferone
ortheother.Thereisnodirectcompetitioninthequadcityarea,theonlycompetitorsforULTA
wouldbesalons,anddepartmentstoreswhoselldrugstorebrandmakeup.Nostoreinthearea
coverthediversityofproductsinthewayULTAdoes.

SWOTAnalysis
AsweweredoingresearchintoULTAasacompanyandtheiroperationsaswellastheir
customerswewereabletocomeupwiththestrengths,weaknesses,opportunities,andthreats
tocompany.SomeofthestrengthsthatwecameupwithistheconveniencethatULTAisaone
stopshopforallbeautyneedsmakingitdesirableasadestinationforwomeninneedofbeauty
supplies.AnotherstrengththatkeepscustomerscomingbackistheULTAmaterewards
programthatrewardscustomersforcontinualshoppingatULTAstores.Therewardsprogram
allowsthebuildupofpointstohelplowerthepriceoftheirnextpurchase.ThestaffofULTAis
specialized,highlytrained,skilled,andknowledgeableofallproductsthatULTAcarries.ULTA
carriesawiderangeofproductsandbrands,sotheyhaveaproductforeverycustomer.
AnotherstrengththatULTAhasistheinstoreeventsthathelppromoteproductsandgive
customerstheknowledgeonhowtousethem.AnotherdrawtotheULTAfranchiseisthatthey
havetheirownbrandit'sofaveragequalityyetisagoodprice.

WeaknessesofULTAthatwediscoveredisduetotheirwidevarietyofproductsandbrands
theycarrytheymusthaveahighinventorystoragecost.DuetothehighstandardsthatULTA
hasfortheiremployeesittakesanextensiveamountoftrainingwhichcoststhecompany
moneyandtheprocessofhiringnewemployeestakeslongerthanmostotherbeautysupply
storesbecauseofthattraining.Anotherweaknesswediscoveredistheyareaveryfocused
marketfocusingonlyonbeautysuppliessotheirstoresdonotofferanythingtothosenot

interestedinbeautysupplies.Wealsonoticedthattheydonotadvertiseatalltowardsmales
eventhoughtheydocarryproductsthatareformen.

OpportunitiesthatarepresentedforULTAinthequadcitiesisthatitwouldexperiencefirst
moveradvantagebybeingthefirstofitskindinthearea.Otheropportunitiesthatexistforthe
areaisalltheeventthatarehostedbythetwouniversitiesintheregion,therearemultiple
graduations,footballgames,concerts,andothercampusranactivities.

ThreatsthatfaceULTAaretheotherstoresintheregionthatsellmakeupsuchasriteaid,
Walmart,Safeway.ThesalonsoftheregionsinceUltaoffershaircuttingservicesaswellashair
coloringsthroughtheirsalon.

CompetitionAnalysis
ULTAscompetitionwillprimarilybeaselectfewofbeautyretailers,salons,anddrugstores.
ThesecompaniesincludeSephora,TessasPowderRoom,SallyBeautySupply,IdentitySalon
DaySpa,PoppysalonandSpa,EssenceSalon,HairandFaceSalon,GreatClips,TheManShop,
WalMart,RiteAid,Shopko,andWalgreens.Althoughthesecompaniessellbeautyproducts
thatwillcompetewithULTAs,noneofthesecompaniesprovidetheselectionandknowledge
thatanULTAhas.

TargetMarket
ULTAisaonestopbeautyshop,asinyoucangetjustabouteverythingyouwilleverneedfor
beautysuppliesallinoneplace.ULTAsprimarytargetmarketiswomenofallagesandraces.
Althoughtheirprimarytargetarewomen,theyalsosellproductsformenofallagesandraces.
ULTAsellsavarietyofproductsthatrangefromveryhighendproductsdowntodrugstore
productsallinthesameplace.Thismakestheirtargetmarketjustabouteveryonefrommento
women,witheveryrangeofincome.

PopulationAnalysis
Therearenearly79,000womeninthequadcitiesarea(census.gov).Thatamountofprimary
customersmakesthisareaperfectforanULTAtocomein.Pullman,Moscow,Lewiston,and
Clarkstonareallshowingpositiveeconomicandpopulationgrowth.InPullmanthemedian
familyincomeis$42,555,Lewistonhasamedianhouseholdincomeof$45,431,Moscowhasan
estimatedmedianhouseholdincomeof$33,175,andClarkstonsmedianhouseholdincomeis
$29,227allofthesenumbersarebasedoffof2013statistics(CityData).Medianagesinthese
citiesandtownsarearound35to45yearsofage(CityData).Thatbeingsaidthepoolof
potentialcustomerswithdisposableincomeisquitelargeforthisareaandbasedoffofaverage
commutetimestowork,anULTAlocatedinthePalouseMallinMoscowwillnotbetoofarofa
drivefortheresidentsofallthequadcities.Theaveragefamilyincomeforthisareaisover
10

$37,000.Thisnumberisweigheddownbytheamountofstudentsintheareathatliveinthe
quadcitiesanddonotworkfulltime.Forexampleinpullman45percentofthepopulation
makeslessthan$20,000ayear(CityData).

GrowthOpportunities
ULTAsGrowthopportunitiesaretremendous.Thier2014annualreportsshowsome
impressivenumbers.Inthelastfiveyearstheyhaveincreasedtheirnetsalesbyanaverageof
$446,650,000peryear,increasenetincomebyanaverageof$46,525,000,andincreasedtheir
storecountby96.25storesperyear.Evenmoreimpressiveisthatinthelastyearthese
increasedhavebeenaboveaverage.Theirnetsalesfromincreasedby$570,800,000,net
incomeincreasedby$54,300,000andopenedup99storesinthelastyear(AnnualReport).In
thelast5years97.94%ofthestoresthatopenedupstayedopen.Therefore,thechancesof
theoneopeningupinourproposedlocationhasaveryhighchanceofbeingsuccessful.

Location Proposal
TobringULTA
tothePalouse
weneedto
providea
locationthat
hasenough
square
footagein
additionto
adequatefoot
traffic.ApossiblelocationwouldbeinthePalousemall.The
currentopeningsinthePalousemallprovidealargeenough
space,alongwithenoughfoottraffic.ThePalousemallisalsoasuitablelocationbecauseitisa
centralizedlocationinMoscowthatisclosetothemainbusiness.Thelargestgrocerystoresin
townarewithinonemileofthemall,bringingfamiliestotheareaonaregularbasis.ULTA
storesarelargerthananormalstorefrontbecausetheynotonlyhavethemerchandisesection
whichtakesaround9050sq.ft.,butalsoasalonwhichtakesabout950sq.ft.ThePalousemall
hasalocationacrossfromOldNavythatwouldofferadequatefoottrafficandthevaried
customerbaseULTAmaintains.AbackupoptiondiscussedwasanewbuildingonthePullman
Moscowhighway,thislocationwouldgiveustheabilitytocreatethestoreinwhateversizeand
styleneeded.Ultimatelyitwasdeterminedthatthemallwouldbeamorecosteffectivechoice.

11

Renovatingalocationismuchlessexpensivethanbuildinganewlocation,especiallysince
necessarysquarefootageisavailable.

Marketing Plan
StrategiesandTactics
InordertogetourULTAstoreofftoagoodstart,ourmarketingandpositioningofthestore
needstoaccomplishafewkeythings.Thefirstthingthatweneedtoaccomplishisinforming
ourtargetaudiencethatULTAiscomingtotheirarea.Thesecondobjectivethatweneedto
accomplishisconvincingindividualstobringtheircosmeticandbeautyneedstoULTAinstead
ofwheretheyhavebeenaddressingthem.Thelastobjectiveneededtobeaddressedis
convincingourcustomerstokeepreturningtoULTA.

Positioning
ThepositioningofourULTAbeautyproductswithintheestablishedmarketiskeyinachieving
marketpenetration.ULTAneedsto
bepositionedinamannerthat
establishesthestoreasadistributor
ofpremiumbeautyproducts,butat
anaffordableprice.Inorderto
achieveacostleaderstatuswithin
thismarket,itisimperativethatthe
storebeknowntohavethebrands
thatconsumersknowaboutandare
usedtoseeing,butatacostthat
eithermatchesorbeats
competitors.Byprovidingtheir
productsatcompetitiveprices,
ULTAwillbecomeeitherthe
consumer'sprimarysupplier,ora
supplieroflipstickluxuries,where
consumerswillcometospenda
littleextramoneytobuy
themselvessomethingthatthey
normallywouldpasson.We
determinedthatthisisthebestmannertoattractcustomersfromacrossthemarket,and
establishthelargestconsumerbase.
12


ChannelsofDistribution
BasedonULTAsmarketingstrategyprovidedintheir2014annualreport,themainchannels
previouslyusedtoincreaseawarenessofnewstoresweredirectmailadsandfreestanding
newspaperinserts(2014AnnualReport).Althoughthesemethodshaveobviouslyworkedin
thepast,webelievedifferentmethodsmayworkmoreefficientlyinthisparticularmarket.
Remaininginthenewspaperswillbekeywiththeolderportionsofthetargetmarket,and
placingadsinUniversitynewspaperswillincreaseexposureonthecampuseslocated
throughoutthearea.Aspeoplemovetowardsaneverincreasingsocialmediapresence,itis
importantthatourmarketingmethodsadjustwiththem.CreatingaQuadCityULTAFacebook
pageandTwitteraccountwouldhelpusreachindividualsthatusetheInternetastheirprimary
resourcefornewsandentertainment,aswellasprovidingamorecostefficientmethodto
reachourconsumers.ThelastchannelwewoulduseincorporatesgettingULTAproducts
physicallyintothehandsofourtargetmarket.Wewouldaccomplishthisthroughproviding
samplestoconsumersthroughULTAboothsthatwillbetemporarilysetuppriortotheopening
ofthestore.Settingupboothsliketheseoncollegecampusesandinareaswithhighfoot
traffic,suchasthePalouseMall,allowustopotentiallyincreasetheanticipationaswellas
awarenessoftheintroductionofthestore.

Rationale
Afterestablishingthechannelstobeusedtoreachourconsumers,itisimportantthatweget
therightmessageacrosstotheminordertodrivedemand.Ourmarketingplanneedsto
convinceourtargetmarkettoswitchfromtheircurrentbeautyproductprovidertoULTA.In
ordertodothis,weplanaremarketingULTAasanaffordablepremiumsupplier.The
consumerswillbeabletopurchasesuperiorbeautyproductsforsimilarpricesthattheyare
usedtopaying.Theywillbeabletosamplemultiplelinesofproductswithindifferentprice
rangesinordertodeterminethebestoptionfortheirneeds.Allowingthecustomerstohandle
theproductsphysicallywillbeakeydriverinconvincingthemtoswitchtoULTA.

Conclusion
WebelievethatitisfeasibletointroduceasuccessfullongtermULTABeautystoretothe
quadcitiesarea.Thelackofcompetitionintheareaisoneofthekeyreasonswebelievethat
ULTAwillbeabletomaintainconsistentprofitsthroughouttheyear.Nationallytherehasbeen
acontinualincreaseinthemarketofbeautyproductsandULTAistheidealretailertobring
thoseproductstoourarea.Evenduringtheslowmonthstherewillbeanadequatecustomer
base.Intermsoflongruncompetition,itisimportantthatULTAisintroducedtothemarket
soon,inordertoobtainandholdafirstmoveradvantage.Withover79,000womeninthearea
13

inneedofabeautyretailer,themarketsizeislargeenoughtosupporttheneedsofanULTA
store(census.gov).Alsowithmanyeventsbringingpeoplefromacrossthestateandperhaps
evennationally,ULTAwouldbenefitfromincreasedvolumesofpeopleforspecialoccasions
suchasfootballgamesandfamilyweekendsattheuniversities.UsingULTAstraditional
marketing,directmailandnewspaper,aswellasusingaheavysocialmediapresenceand
visitinglargetrafficareas,accessingthemarketshouldnotbeaproblem.Takingadvantageof
ULTAscurrenthighgrowthrate,andthenewlyavailablespacelocatedatthePalouseMallis
alsokeyinproducingasuccessfulstore.

14

References
opaciuk,Aleksandra,andMirosawoboda."GLOBALBEAUTYINDUSTRYTRENDSINTHE21st
CENTURY."ActiveCitizenshipbyKnowledgeManagementandInovation.N.p.,June2013.Web.
17Apr.2016.<http://www.toknowpress.net/ISBN/9789616914024/papers/ML13365.pdf>.

PrivateCollection.Web.12Apr.2016.
<http://ir.ULTA.com/phoenix.zhtml?c=213869&p=irolhomeProfile&t=&id=&>.

PrivateCollection.Web.12Apr.2016.<http://www.palousemall.com/images/slide4.jpg>

PrivateCollection.Web.12Apr.2016.
<http://images04.spotzot.com/static/April/4112016/146044389342/lr_2924_11741_11742_Ult
aBeauty_Collection_04122016_PN_01.png>.

QuickFacts.UnitedStateCensusBeuro.JohnH.Thompson,1July2015.Web.10April2016

ULTA.2014AnnualReport,2015.Web.10April2016.

ULTA.N.p.,2000.Web.3Apr.2016.<www.ulta.com>.

15

ORIGINALPITCHPROPOSAL

To:
PattyCady
From:
ReillyBerggrenR.B.
Subject:
ULTAPitchProposalMemo
Date:
February29,2016

ThepurposeofthismemoistoprovidedetailsfromtheULTApitchproposalabouthowandwhytheir
companyshouldputastoreinthePullman/Moscowarea.

Background
ULTABeautyisthelargestbeautyretailerintheUnitedStateswithover860storeslocatedallacross
thecountry.Sinceopeningtheirdoors25yearsago,theyhavebecomethepremierdestinationfor
makeup,nails,mensandwomenshair,fragrance,andskincare.ULTAoffersmorethan20,000
productsfromover500beautybrandsacrossallcategoriesandpricepoints.ULTAalsooffersa
fullservicesalonineachstorethatfeatureshair,skin,andbrowservices.ULTABeautyisrecognized
foritscommitmenttopersonalizedservice,funandinvitingstores,anditsindustryleadingrewards
program.ULTApridesitselfonhavingAllThingsBeauty,AllInOnePlace.Withtheirgoalofexpansion,
IbelievethatthePullman/MoscowareawouldbeanideallocationforanULTAstore.Thereisno
directcompetitionandIbelievethatthereisahighdemand.

Outline
Themainareasthatourteamwillneedtofocusonwillbeassessingdemand,findingalocation,and
findingemployees.Ibelievethatthereisahighdemandforalargecosmeticsretailerinthisarea,but
myviewmightbeskewedbecauseIamacollegestudent.Ourteamwouldneedtoidentifydemand
fromotherdemographicsinthePullman/Moscowarea.IthinkthatthePalouseMallwouldbean
excellentlocationforanstore.Ourteamwouldneedtofindoutiftherewereanyretailopeningsin
themallorinanothercomparablearea.Findingemployeeswillbethemostdifficultaspectofthis
project.Asidefromretailsalesassociates,mostemployeesrequirespecialskillsandtraining.Hair
stylists,estheticians,prestigebeautyexperts,makeupartists,andmanagersareafewexamples.It
willbeimportantforourteamtofigureoutiftherearepeoplewiththeseskillsinthisareaorif
peoplewouldbewillingtoreceivetraining.

TeamInformation
Awellroundedteamwouldconsistofpeoplewhoarepassionateaboutthisidea.Itwouldhave
peoplewhoareexcellentresearchers,willingtoworkhardandcommunicateefficiently.Team
memberswouldgainteamworkandcommunicationskills,inadditiontoabetterknowledgeofthe
retailcosmeticindustry.

Recommendation
Iwelcomeanysuggestionsorrecommendationstomakethisprojectasuccess.Feelfreetocontact
meatanytime.
16