BEAUTY & GO. La Belleza que se bebe EGADE CONSULTING GROUP MARLENE KELLENBERGER DANIEL VALENZUELA FEDERICO SALAZAR ALEX SANCHEZ

Transcription

1 BEAUTY & GO La Belleza que se bebe MARLENE KELLENBERGER DANIEL VALENZUELA FEDERICO SALAZAR ALEX SANCHEZ EGADE CONSULTING GROUP

2 Agenda q Problem Statement q Analysis q Recommenda4on: q Priori4za4on q Implementa4on q Financials q Q&A

3 Problem Statement q How we should priori4ze markets and distribu4on channels to maximize the poten4al of the product and the JV. q What product, pricing and marke4ng/communica4ons strategies would be op4mal for each of the markets/ channels you think we should pursue?

4 Analysis- Forces of Porter Power of Buyer- MID New Market Big Poten4al Market Globally Power of Supplier- Low Ver4cal Integra4on Rivalry Barriers of Entry- Mid Patent Big Established Big Player Threats of Subs4tutes- Mid Beauty Products Vitamins, Nutri4onal supplement

5 Analysis- SWOT Strengths First mover Patent of MacroAn4oxidants Dynamic segment Strong and complementary JV partners Cold press method Opportuni/es Up and coming market High demand for similar offerings Not too many compe4tors Weaknesses Sales channels not clearly iden4fied Low margins in retail Threats Compe4tors- strong poten4al second movers Economic fluctua4ons

6 Customer Archetype JENNIFER q They live in ci4es q They are young q Informed skep4c, connected (online) q Trendy q Fashionable q Willing to try new products q Project good lifestyle q Wants to look good, health conscience

7 Market PrioriSzaSon 1. Hemisferio Norte Asia North America Europe 2. Emergentes Middle East La4n America

8 JusSficaSon Hemisferio Norte q Take advantage of first movers q Biggest customer base q High purchasing power Asia Health and beauty oriented Successful launch in Vietnam Poten4al MALE segment in Japan Aspira4onal North America Purchasing role model in Americas High number of poten4al buyers Europe Faster response to market Company brand recogni4on Healthy lifestyle

9 JusSficaSon Emergentes Middle East High purchasing power (Dubai, Emirates, Qatar, Oman) La4n America Image seekers North America followers

10 ImplementaSon Global Strategy q Build trust: Make informa4on about claims available QR code (in point of sale and packaging) Strong social media campaigns q Free Social Media market Samples to viral marke4ng q Double down on R&D about the benefits of the products

11 ImplementaSon Hemisferio Norte - ASIA Product Tradi4onal Channel High end supermarkets and stores (brand recogni4on) Push for online sales (Alibaba) Beauty / cosme4c stores spas Pricing and marke4ng European image Aspira4onal Healthy Not gender oriented

12 ImplementaSon Hemisferio Norte North America Product Tradi4onal Channel High end supermarkets and stores (Trader joes, whole foods) Partner with Starbucks Health clubs (gyms, spas) Online (Amazon) Pricing and marke4ng Offer subscrip4on model Healthy Middle to high class

13 ImplementaSon Hemisferio Norte Europe Product Tradi4onal Channel Replicate model of Corte Ingles (like Galerie Lafayede) Pharmacies Pricing and marke4ng Offer subscrip4on model Healthy Middle class to high

14 ImplementaSon Emerging Middle East Product Tradi4onal Upgraded (Test) Channel High end shopping malls Spas Beauty centers Pricing and marke4ng Willing to pay more Quality/ Luxury

15 ImplementaSon Emerging LaSn American Product Tradi4onal Channel High end supermarket Spas Beauty centers Gyms Country clubs Pricing and marke4ng Aspira4onal Follower of NA

16 ImplementaSon Timeline Asia North America Europe Middle East Latin America Short Mid Long Year 1 Year 2-4 Year 5- After

17 Financial ProjecSons % of Sales by Category 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 60% 50% 40% 30% Retail Health and Beauty International Dist On Line Linear (Retail) Linear (On Line) % of Cost of good sold by Category 40% 35% 30% 25% 20% 15% 10% 5% 0% % Margin by Category Retail Health and Beauty International Dist On Line Linear (Retail) Linear (On Line) 20% 10% 0% Retail Health and Beauty International Dist On Line Linear (Retail) Linear (On Line) Accelerate On Line Sales!!

18 Financial ProjecSons 25% Net Income as % of Sales 20% 15% 10% 5% 0% Online Sales vs Budget Allocated Retail Sales vs Budget Allocated 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Web Page & Other Budget Growth of Online Sales PR & Promotion and Events Growth of Retail Sales Divert Budget from PR to Online Marke4ng

19 Warnings Skin Products Pyramid model i.e. Nerium op/mera Trending business model Loyal customers for a period of 4me Looked as a 2 nd income Big scale Although not Beauty from within directly, grabs a share of the market Pepsico If proven successful will probably regret not entering the JV Shared know how for several months with Natura Bisse Has the size and connec4ons to approach a Skin Product company itself Distribu4on Channels already established Presence on several points of sale Followers will show up soon

20 Recommend Daiku to Invest q Macro An4oxidants patents owned by the JV q Know how on both, Cold Press Juices and Skin Care q AMC and Natura Bisse are very Solid and Successful companies q Have Global Presence already q Distribu4on Channels for current products already established q Nina Storms connec4ons on Internet world can compliment and explode On Line business model for Beauty & Go

21 Q&A