Tarte Cosmetics-Maureen Kelly

14Dec2009 Filed under: Entrepreneure Stories, Entrepreneurs Author: Bikash

COMPANY: Tarte cosmetics
FOUNDER: Maureen Kelly, 36
LOCATION: New York City
2008 REVENUE: $12 million
EMPLOYEES: 34
START-UP YEAR: 1999
START-UP COSTS: $18,000 for 5,000 makeup fills and containers
BREAKEVEN: Five years out, on undisclosed sales
BIGGEST EXPENSE: Cost of product
QUALIFICATIONS: The insights of a lifelong beauty-products junkie

In 1999, Maureen Kelly found out that she wanted a different line of cosmetics than the existing ones. She wanted make-up was formulated with healthy, natural ingredients; was easy to apply, and that came in great-looking packaging she’d be proud to pull out in public. As there was no such make up line available so she created one herself.

Kelly started Tarte Inc, the company that has grown exponentially since then. It offers women all the things she wanted herself in one line of cosmetics. Here is her story:

Starting

Kelly started tarte out of her one bedroom apartment in 1999. She did not like the beauty products, the content, the packaging of the existing products. She noticed that most of the cosmetics use synthetic and unhealthy ingredients.

Kelly was dreaming about a cosmetics line that would address all the needs that had been overlooked. She wanted easy-to-use products that would help to recreate beautiful, makeup-artist-inspired looks without much effort. Kelly wanted elegantly designed product packaging which she would love to take out in the public. She wanted healthy products for her skin. So Tarte was born.

Determining product’s marketability

Kelly wanted to create makeup that was easy to use, less time consuming and comes with easy carrying facility. She decided her needs: easy-to-use products, healthy ingredients and chic packaging.

Kelly created innovative products for the market. Her first product -cheek stain was an alternative to the traditional stains that streaked, were alcohol based, dried very quickly and were generally difficult to use. Her product was gel-based, push-up blush stick which became an instant success which still continues to be her best-selling product. She actually filled a gap and then slowly took it to the next level.

Markets and selling

Kelly launched tarte at Henri Bendel and beauty.com. At present her products are available at Sephora, Bergdorf Goodman and over 200 stores nationwide. In December 2003, she launched her website, tartecosmetics.com. In February 2005 she made her first live appearance on QVC.

Initially it was hard to find the stores for her products. Kelly thinks that just keep knocking on as many doors as possible and never taking no for an answer is the mantra for success.

Publicity and marketing

Kelly thinks that it’s how it’s delivered that makes all of the difference. You need to take care of two key audiences: the media and the customer. You need to have them by your side if you want to sell your products. You need to have a marketing and PR team. You need to tell your story they way you want.

Your website is your important bet. Sometimes you cannot handle the way your story is told. But your website in under your total control and you can use it to convey the messages you want and to communicate with the customers and media. Your website can become your viral marketing tool.

Kelly also sends newsletters and monthly emails to her customers. She hosts quarterly contests to keep it exciting.

At the initial stage you will have to become your own publicist and send your product to editors and magazines to spread the word. However, you will have to be creative in sending your product to the Editors to have a much better chance of getting it in the right hands because editors have so many products cross their desks each day and you will have to make sure yours stands out.

Finance your business (personal contributions, loans from friends & family, loans from bank, credit cards, outside investors?)

Kelly self-financed tarte with my savings and some credit cards. She put $20,000 on it and never looked back.

Financial projections

Tarte is estimated to make $20 million in retail sales this year