Estate of Paul Mitchell, Deceased, Patrick T. Fujieki, Executor - Page 11

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          Hair setting and                                                            
          styling products  Hair Sculpting Lotion; The Spray; Fast Drying             
          Sculpting Spray; Freeze and Shine Super                                     
          Spray; Super Clean Gel; Sculpting Foam;                                     
          Super Clean Spray                                                           
          Permanent wave                                                              
          products            The Solution; Special Perm Neutralizer; Awapuhi         
                              Conditioning (Box) Perm                                 
               3.  Marketing and Distribution                                         
               JPMS' marketing effort primarily targeted, and the                     
          distribution network was primarily oriented toward, hair stylists           
          and salon owners who sold hair care products to their customers,            
          rather than direct marketing to the consumers themselves.  Mr.              
          Mitchell's popularity and reputation with hair stylists were used           
          to introduce JPMS' products, and the hair shows were used to                
          increase the visibility of JPMS and its products.                           
               JPMS' marketing strategy included the use of distributors to           
          promote its products. As of April 21, 1989, JPMS had 38                     
          distributors in the United States and 13 distributors in 12 other           
          countries. Nearly all of the distributors had an exclusive                  
          geographic territory. The distribution network was generally                
          composed of friends of Messrs. Mitchell and DeJoria who believed            
          that Mr. Mitchell's reputation as an avant-garde hair stylist, and          
          Mr. DeJoria's business background, would sell the JPMS products.            
          As of April 21, 1989, JPMS had no written agreements with its U.S.          
          distributors.                                                               
               Mr. DeJoria's organizational and marketing skills, combined            
          with Mr. Mitchell's artistic creativity and expertise, allowed JPMS         




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