faces Business plan: Finding a blue ocean
SVA MASTERS IN BRANDING PROJECT
MARKET OPPORTUNITY
The Beauty Salon and Cosmetic industry is a projected to continue growing 3.3% into 2017 and is a $49.3 billion dollar industry. Revenue within the cosmetic industry in the United States has increased by 3.8% over the last year (2013 to 2014 and is projected to increase another 3% in 2015.
challenge
The MBA 101 class assigned the development of a business plan. This solo project required identifying a 'blue ocean' for a new potential business, outlining the concept, market opportunities and the goals in developing the brand/business.
INSIGHTS
Getting your makeup done professionally can be unsatisfying and unglamorous. Makeup counters offering free makeovers often push products, leaving women feeling obligated to make a purchase. Others have described leaving a makeover "not feeling like me" since the products being used are new or in season and don't always compliment the customers natural features or skin tone. The environment in which getting your makeup done is also often unglamorous, with makeup being applied in busy stores while the makeup artists attention is often distracted by other customers shopping. My research also identified how culture today influences the way women look and feel about themselves.
EXECUTIVE SUMMARY
FACES is a beauty bar that offers women a professional makeup experience in a relaxing and personal environment, that allows your makeup artist to focus solely on you! Today, women constantly feel the need to look their best at all times and FACES is here to help. With our menu of four signature faces, we provide our clients with the perfect look–no matter what the occasion.
FACES is the ideal destination for women who are image conscious and currently spend time and money cultivating their look. These women know the importance of looking their best at all times and want to conquer there day by putting their best face forward. FACES not only helps you look your best, but helps you feel your best!
CONCEPT
WHAT: Beauty bar offering professional makeup application. it will take a service that is currently viewed as a luxury and make it an affordable luxury.
WHY: Because when you look good, you feel good! It supports the ability to transform the way you are perceived, and therefore feel.
WHERE: FACES beauty bar will be launched in Manhattan, New York. It is currently ranked the number one American city with a population of 400,000 more women then men.
services
FACES offers four specific signature looks, all at $40. Seasonal looks would be available periodically for special occasions or holidays.
For clients who use our services more than twice a month, a membership package would be offered. These services would be paid for up front.
business strategy
BUSINESS MODEL: Sales (from services rendered) and subscription based with a membership offering.. Opportunity to sell private label products as business expands.
COMPETITIVE POSITIONING: Where women who want a relaxing and personal beauty bar experience go to cultivate their look.
GO-TO-MARKET: Launch strategy will utilize promotional tacts such as word of mouth and key social media influencers. Word-of-mouth would target areas where women currently spend time and money to pamper themselves (nail and hair salons, gyms, an yoga studios). FACES would have a strong social media presence and would reach out to key influencers like Mrs. Lilien, an arbiter of the elusive ladylike pleasures, chief ambassador of the elevated life style, and Joy Cho, owner of Oh Joy!, mother of two and designer.
Competitive Positioning: Price of services vs. unprofessional application or profession finished look.
financials
Initial start up costs are projected at $49,823. The number of units (services) that need to be sold in order to break even is 754. Projections place BEP within the first month of business and the initial investment being paid off in 12 months.
Additional information on the business plan are available for download.