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promote YOYO Lip Gloss in these types of establishments. Consumers can also purchase YOYO Lip Gloss directly through the web.

Angie is waiting for her first shipment of YOYO Lip Gloss to be loaded onto its shipping vessel before contacting potential distribution channels. This strategic decision was made due to industry giants Angie will be combating within the lip gloss sector and because she does not want to distribute a sub-par product or make a delivery commitment to her distribution channels that cannot be met. Angie wonders how this decision will impact sales of YOYO Lip Gloss. She could have marketed her product to her target stores before shipping the product to the U.S., but she felt that was too high risk a strategy. She sought the comfort of having a completed production quantity of high quality product in her possession before launching her sales efforts. Still, her decision to postpone her marketing efforts may leave her with unsold inventory, creating excess carrying costs and thus delaying the success of YOYO Lip Gloss.

Once Angie distributes her initial product she needs to consider how she will grow her business. Is one product enough to remain competitive in the market? Angie is preparing to extend the YOYO Lip Gloss product line soon after its launch. In Phase II, YOYO Replacement Tubes will be introduced enabling consumers to refill their lip gloss without repurchasing the entire YOYO package (See Exhibit I – YOYO Replacement Tubes). Angie believes that the YOYO replacement tubes will generate additional revenue for retailers and help establish customer loyalty.

In Phase III, YOYO Light up reels as well as the next set of YOYO characters and colors will be introduced, followed by Phase IV, which will feature the YOYO Light Up Replacement Tubes. In Phase V, YOYO Lip Gloss will introduce the YOYO Wallet which will also serve as a case for the reels, tubes, and trading card stickers. In Phase VI, Angie’s product line extension plans include a modified YOYO Lip Gloss whose target market will be young adult females. This modified product will be a variation of her current lip gloss, and it will target prestige outlets such as Sephora.


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