Business students analyze market

A University of Richmond marketing class is getting hands-on experience while it develops several potential marketing schemes for a Merle Norman makeup studio that's expected to open in The Shops at Willow Lawn on Oct. 13.

Students from Kiersten Maryott's 9:45 a.m. marketing class are getting the opportunity to work with Colleen Moore, the owner of the coming Merle Norman franchise, which will specialize in Merle Norman products, but also sell jewelry, handbags and small trinkets. The store will also offer teeth whitening and, potentially, massage therapy, junior Rebecca White said.

Moore told the students that she hoped to attract college-age customers because product loyalty is important to the company. Moore, 58, has been using the products since she was 17, she said.

During the first week of class, Moore visited the class to talk about her business. Since then, the students have been divided into several groups and have begun to meet with Moore to discuss the marketing needs of the business, she said. Merle Norman was founded in 1931, but hasn't invested in much national advertising.

"They haven't done a lot of advertising over the years," she said. "The problem is going to be getting word out and figuring out a really enticing way to get people into Merle Norman."

Each group will present a final proposal to Maryott and Moore at the end of the semester, in time for the store's grand opening later this year.

Successful projects will "analyze the company and relay creative marketing suggestions designed to achieve the goals of the company," according to Maryott's instructions. The proposals will sum up a semester's worth of research into different mediums of advertising, as well as different promotional ideas, White said.

"We have to look at the costs to run TV or newspaper or radio ads," she said. "We'll do surveys and in-depth interviews with people from the different target age groups.

"We'll create what we think will work best for discounts. She can't put the makeup on sale, but other things, like if you come in you get 10 percent off a handbag."

Because the business is just opening, students will also have to take into account its current financial situation and develop a scheme that works for a new business, White said.

White's group decided to look at other makeup stores in the area such as Sephora and Ulta and the two other local Merle Norman stores.

Merle Norman products are middle-of-the-road beauty products. They are better quality than the products that can be found on the shelf in a convenience store, but not as expensive as the products found in a department store, Moore said. What sets Merle Norman apart from those is that Merle Norman is sold in a studio setting with a "try it before you buy it" philosophy, she said.

"It's not like going to CVS and having to buy it without trying it on," White said of Moore's products. "It's not cheap. But, it's not like high-end department stores where you feel like you have buy whatever they put on your face."

Since the company's inception more than 70 years ago, it has operated in a way that allows customers to try the products before spending their money on them, Moore said. When customers come into the studio, they will be offered a facial and a makeover.

Moore is interested in providing the full experience for her customers and will offer advance teeth-whitening services, potentially a masseuse, and she's considering hosting events such as wine and cheese nights, or a "girls night out" party for girls in their young teens that are just starting to use makeup, she said.

Moore said she had been excited to work with Richmond students because she felt they could help her reach younger age groups including teens and preteens.

Getting connected with Maryott's class was just a fluke, Moore said. Maryott had already lined up a doctor to work with her class, but at the last minute needed to find someone else. Moore's neighbor is the professor who works in the office across from Maryott and mentioned Moore's business to her, she said.

"It's completely awesome," Moore said. "I've been thrilled!"

Moore, who said she had three grown children, spent the last 18 years doing administrative work for a law firm. When her position was eliminated, she used the opportunity to make a career switch.

"I did lots of soul searching," she said. "I decided I didn't want to go back to the legal business or the corporate world - I wanted to be my own boss."

Using her own savings and an investment from her parents, Moore has been able to open the franchise without taking out a small business loan yet. She said she planned to be a very involved owner - she's only hiring one other employee at first. She said she hoped to eventually have two.

"I just need to start selling a lot," she said. "I'm also intending to have my mother helping me. She's 80, so now I just need some younger faces."

Perhaps those younger faces will come through the university. White said she would be visiting the store for a facial when it opened, but in the mean time was excited for the opportunity to develop what she called a "marketing mix" for a real client.

"And yes, we get bonus points if [our proposal] gets picked," she said.

Contact staff writer Jacki Raithel at jacki.raithel@richmond.edu