XY Adaptions: A Business Plan

• Main Authors: Mena Canellas Juan Ignacio, 梅凱璜
• Other Authors: Ed Jen-Huarn Shyurng
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/99496762455266513321

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.