| Summary: | 碩士 === 輔仁大學 === 國際創業與經營管理學程碩士在職專班 === 98 === Company:
XY adaption is the tailor of skin care. We provide men with all‐natural customized
skin care solutions that adapt to their individual needs ensuring a perfect fit to
their skin and providing superior performance. At a time where companies
launch generic products to satisfy a wide variety of consumers, XY Adaptions
wants to remind them that we are all individuals and one size does not fit all.
Market opportunity:
The stigma of males spending money on personal care other than shaving and
deodorant has disappeared. Aided by the media, it is no longer taboo to spend
money on appearance and the skin care market has largely benefitted from this
fact. With a great potential for growth, big players such as Nivea have moved in
and are taking the mass market like a storm. From 1999 to 2003, 1000 new
products entered the market. Instead of entering the crowded mass market, XY
will exploit market niches while they battle each other to become market leaders.
They develop the need for men to use skin care through heavy advertising and
education but they can’t satisfy every customers needs. Between 2003 and 2008
the male skin care market grew 128.4% and is forecasted to grow a further
42.1% before 2013. The fact is that “75% of American adults would like to have
more customized products and 70% of them are willing to pay more for it” XY will
fulfill this demand in the arena of skin care. Industry analysts have predicted
customized skin care will be the next big step in the cosmetics industry which
further expands the potential for future growth. In addition natural is already
becoming mainstream with 70% of men using some sort of natural grooming
product already. Although some players have already entered the custom skin
care market they are targeted at women and a key success factor when selling to
men is to remove oneself as far as possible from the “feminine” perception. XY
adaption will be the pioneer filling this gap in the market and establishing a
strong brand image in order to become the leader of premium custom skin care
for men.
Strategy:
My goal will be to educate and cultivate customers about XY Adaptions, gain early
adopters and use movers and shakers to make the message viral. By
accomplishing these goals I can change the leading customer pattern. Other
companies such as “Ryanair” and “Monster” have found success using this
strategy. I will realize these goals through my entry and marketing strategy. I will
enter San Francisco initially and create a stronghold for my company by creating a
cluster of barbers where my product will be sold. This will provide protection
from competition and accessibility to consumers. Barbers aligned with my target
market provide a professional endorsement and will educate consumers and
drive early adopters through push marketing. Furthermore sport celebrity
endorsement will cultivate consumers and combined with early adopters will
become the mover shakers.
Competition
Competition in the premium custom skin care market targeted at men is
currently non‐existent in the U.S. Although premium custom skin care
competitors exist, they cater to women and this is exactly the reason they cannot
be a serious threat to XY. Through my branding and packaging I will appeal to
males. I will also make consumers switch from competing generic premium
brands by offering higher value for money.
Management Team
The founder is a business graduate from Newcastle University who has knowledge
of the perfume and cosmetics industry through experience and is a determined
individual with great passion for business.
Finance:
The venture with an initial investment of $60,000 provides a great financial
opportunity with a high rate of return on investment of over 730% after year 3
growing exponentially over the following years. Low start‐up costs, low fixed
costs and an average gross margin of 70% further increases the financial
attractiveness of the venture. The return on investment far outweighs the level of
risk and high growth in the market provides potential for an even greater return
in the future.
|
|---|
