Lubriderm proposes to directly sell its men's moisturizing product line in the UK through internet sales and indirectly through third-party vendors. The opportunity exists because most creams in the UK market do not specifically address men's skincare needs. Lubriderm's product brings therapeutic value for daily use. The target market is metrosexual males ages 18 and above, concentrated in urban areas. The plan is to price products competitively and promote through samples to gain market share from competitors like Lotil cream. Financial projections estimate profits of $198,000 in year one.

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ANALYZING THE OPPORTUNITY FOR LUBRIDERMPRODUCTRANGE
ENTRY INTO THE UNITED KINGDOM
STUDENT NAME
COURSE NAME
DATE

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1. EXECUTIVE SUMMARY:
The problem that is identified in the United Kingdom cosmetic and daily cream market is
that there is no special moisturizing cream for men that addressed their skin care issue
specifically. Most of the creams in the market are high level street brands that might not be for
daily use and does not address special needs for men’s skin. Lubriderm’s men’s product brings
therapeutic value and addresses the needs for men’s moisturizing needs. Lubriderm is currently
sold in the United Kingdom through some third party vendors, non-affiliated with the company.
The Lubriderm organization proposes to sell their product directly through the internet and also
indirectly to the UK’s metrosexual males who are the target segment and others.

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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY: .............................................................................................................................................................2
INTRODUCTION ...............................................................................................................................................................................4
2. THE PROBLEM AND THE OPPORTUNITY ................................................................................................................................4
2.1.BUSINESS OVERVIEW ................................................................................................................................................................4
2.2.PRODUCT SERVICE FEATURES ....................................................................................................................................................4
2.3.MARKET ANALYSIS....................................................................................................................................................................5
2.4.MARKET STRATEGY ...................................................................................................................................................................6
3. TARGET MARKET.........................................................................................................................................................................6
3.1.MARKET SEGMENT (CONSUMERS AND PROFILE)........................................................................................................................7
3.2.4 P’S OF MARKETING................................................................................................................................................................7
3.2.1. Product..........................................................................................................................................................................7
3.2.2. Price and Promotions .................................................................................................................................................7
3.2.2. Place ..............................................................................................................................................................................8
4. COMPETITION..............................................................................................................................................................................8
4.1.DIRECT COMPETITION ...............................................................................................................................................................9
4.2.INDIRECT COMPETITION............................................................................................................................................................9
5. OPERATIONS AND PROCESSES.................................................................................................................................................9
5.1.INBOUND PROCESSES................................................................................................................................................................9
5.1.1. Indirect Export and Internet ......................................................................................................................................9
5.2.OUTBOUND PROCESSES ..........................................................................................................................................................11
6. FINANCIAL SUMMARY .............................................................................................................................................................11
7. MILESTONES AND TIMELINES OF THE PROJECT.................................................................................................................13
CONCLUSION ..................................................................................................................................................................................13

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INTRODUCTION
The plan for launching Lubriderm Men’s range of products is discussed in the plan. The
gap in the market and the opportunity for Lubriderm is discussed alone with the market for
men’s cosmetics. Lubriderm will launch its products both directly through internet based units
and through indirect export. This will give Lubriderm better coverage to its target market of
metrosexual males and also men in general.
2. THE PROBLEM AND THE OPPORTUNITY
2.1. Business Overview
Lubriderm lotions started off as an independent formulation of Dr. Louis Scheluse a
pharmacology professor in the year 1945 (Lubriderm, 2015). Used for dry and itchy skin, the
formulations range grew to become usable by different consumer segments, which were looking
for a light weight cream or a daily day cream. As of 2006 Lubriderm lotions is a part of the
Johnson Consumer Products Company.
2.2. Product Service Features
Lubriderm comes in three different formulations. The formulations are for extra dry skin
to normal, normal skin and sensitive skin. It has a different product for men, and then there are
therapeutic lotions for itchy skin also. Lubriderm is not prescribed for children under a certain
age.

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Source: Lubriderm Collections, 2015
2.3. Market Analysis
The cosmetic industry in the United Kingdom can be broken down into several
diversifying segments. It is a fast growing industry and is forecast to grow by more than 16
percent in 2016 and this growth has not been impeded by the economic recession (Aidin, 2014).
It is the niche segments that contribute to much of its growth. Lubriderm here plans to take
advantage of such a niche segment only. A recent study shows that more than 52 percent of
people rate their skin as being sensitive and this is not just the women (Hart-Davis, 2011). The
sensitive skin care product range for men is seen to be low in the United Kingdom.
Unique Selling Proposition: While some brands address the sensitive skin care issues in
general, they do not cater to the men specifically. Lubriderm’s men’s lotion is a special
therapeutic skin care for men only. These are men from the age group of 18 and above who work

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or live around the urban environment as this is where Lubriderm would launch its product
primarily.
2.4. Market Strategy
The market strategy that is employed here is one where the unique selling proposition is
presented to the niche segment. Lubriderm will set its distribution centers and point of sales
based on metropolitan areas where it has identified through secondary research that the
consumption of cosmetics is quite high (Souiden, & Diagne, 2009).
Strengths Weaknesses
Lubridermisverycompetitively priced
It isa name value brandinthe UnitedStates;
the brand can hence sell itshistoryandthe
goodreputationthatit enjoysinthe United
States.
Furthermore itisnot newtothe United
Kingdom.People whohave travelledtothe
UnitedStatesandwho have workedor
studiedthere are aware of thisbrand.The
UK Amazonsite showsthatpeople fromthe
UK buy thisbrandfrom thirdparty sellers
that are notaffiliatedtoLubriderm
There are cosmeticbrandsthatmenmight
preferusing
It isnew to doingbusinesswiththe United
Kingdom
Opportunities Threats
There are ample opportunitiesinthe urban
market
The internetbasedsaleswillalsobe helpful
for Lubriderm
ContaminationRisksorcompliance issuesin
transportof the product.
3. TARGET MARKET

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3.1. Market Segment (Consumers and Profile)
 The men’s therapeutic range of products from Lubriderm is the main point that will be
highlighted. This will attract male consumer audience from the age range of 18 and
above.
 The metrosexual male is the primary psychographic segment identified for the product.
They need lotions for everyday use that is more general in terms of fragrance and is more
specific in addressing male skin needs.
3.2. 4 P’s of Marketing
3.2.1. Product
The key points of the product that will be sold and its unique points will be highlighted in
the marketing campaign
 The product is a therapeutic range of moisturizer for everyday use. The current
moisturizers for men are street brands which research studies show men are wary of
using. They opt to use cosmetic ranges such as Avene that their girlfriends use rather
than using the street brands. This also applies to the high end street brands (Bianaca,
2013). Lubriderm is a therapeutic moisturizer that includes the benefits of the
cosmetic range and is also an everyday moisturizer
 Lubriderm is more cost effective. Bianaca (2013) discusses the rising costs of
moisturizer uses that is triggered by men. Lubriderm will help the consumer control
costs.
3.2.2. Price and Promotions

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 The pricing of Lubriderm is more economical compared to the other high street
brands. Also in the launch promotions Lubriderm plans to release the product with
promotional offers that will be helpful for customers.
 Second Lubriderm plans to release its products in one of its short sample ranges. This
will be helpful for customers that want to try out Lubriderm before buying it. The
trying out process is also made more economical for people.
3.2.2. Place
Rakesh Agarwal, the CEO of Escentual a product line for cosmetics states that “Twenty
years ago most men wouldn’t have dreamed of using a moisturizer but nowadays it is much more
common-place thanks to role models like David Beckham” (Bianaca, 2013). However the CEO
also notes that men still have not gotten to buy their own moisturizers and might tend to use their
partners products. Some of the reasons cited for this are that they do not prefer to do the
shopping for moisturizers in person (Bianaca, 2013). In this context by making Lubriderm
available online, where they can just click and have it delivered to their homes; the product
would have better sales. The internet point of sales will not have regional coverage bar. The
physical points of sales on the other hand will be restricted to only the metropolitan areas as
research studies note that the metrosexual male is more concentrated in these areas
4. COMPETITION
There are many skin care products for men in the United Kingdom. However none of
these products are therapeutic everyday usage for itchy skin and other skin conditions such as
what Lubriderm brings to them.

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4.1. Direct Competition
The main direct competition is in the form
of Lotil original cream. (Image source:
Quine, 2014). This is a cream that is made
in a nourishing way for dry skin. It also
claims that it has antibacterial properties
and that it is a cream for all men who
moisturize.
However this direct competition suffers because it is not presented as for everyday use. Also the
therapeutic benefits that Lubriderm offers for the everyday user are not advocated for in the use
of Lotil. Furthermore the cost of Lotil is around 6.29 pounds for 114 ml, wheras Lubriderm
offers 709 ml for 5.75 pounds which is a much economical rate.
4.2. Indirect Competition
Some of the indirect competition that exists for Lubriderm are the normal skin care range
of creams that are targeted at women in general. These range from mild cosmetic creams such as
Clinique, to that of high profile cosmetic creams such as Lancôme, Dior, and more.
5. OPERATIONSAND PROCESSES
5.1. Inbound processes
5.1.1. Indirect Export and Internet

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The indirect export method employed for Lubriderm would be the Licensing method. The
Licensing method is where a contract could be established with a product seller. They could act
as licensed sellers of the product. This would be better for Lubriderm, as the company will not
have to invest in manufacturing units and more within the United Kingdom. Furthermore there
will be lesser chances of any of forms of occurrence of compliance breaches. The internet based
trade is organized by means of third party sellers that would be licensed to sell the product.
Having physical point of sales of the licensed sellers would give better reach to the men
living in urban areas, such as around London and other metropolitan cities. However there would
also be significant sales segments that are living in other suburban area or area with lesser
accessibility to super marts. These people would benefit by placing their orders online and
having the product delivered to their door steps.
5.1.2. Legal Requirements: Since a licensed agent will be used as direct representative,
the licensed agent will make the customs declaration for Lubriderm. Lubriderm will be the
declarant in this case and will be liable for customs debt if any are not fulfilled. An import
declaration should hence be filed out by the company. Some of the charges that will be
applicable for Lubriderm are the customs duty and the import VAT (HM Revenue and Customs,
2013).
Cosmetic products to the United Kingdom such as moisturizers have to follow the
regulations as set in the United Kingdom of European Regulation (EC) No 1223/2009 on
Cosmetic Products or the EU Cosmetics Regulation. Penalties for breach of this regulation are in
the amount of fines ranging from £5,000 to £20,000 pounds and hence Lubriderm will work with

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its compliance and legal department so as to enforce compliance both at its end and the agents
end (UK Department for Business Innovation & Skills, 2013).
5.2. Outbound Processes
The distribution network that is planned is one that uses third party distributors. This will
be better for Lubriderm. Also Lubriderm will not directly contract with the third party
distributors. Lubriderm will use the contacts of its licensed agents. This is a positive point for the
company as the company is spared the scouting research that it will have to undertake. Most new
companies might fail to procure the right distributors, however the agents being in the country
would know these networks better.
6. FINANCIAL SUMMARY
A bank loan is the best type of financing for the expansion venture being proposed for the
company. The bank loan can be taken out for the organization, and the loan can be taken out in
the home country. The bank loan will be amortized over a period of three years, so as to give the
company time to recover its expenses in establishing licensed partnerships, the company may be
able to tax deduct for the amortizations costs under Part VI of Form 4562.

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Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3
Annual cumulative price (revenue) increase - 2.00% 4.00%
Annual cumulative inflation (expense) increase - 2.00% 4.00%
Interest rate on ending cash balance 0.50% 0.50% 0.50%
Year 1 Year 2 Year 3
Revenue
Gross revenue $1,020,000 $1,040,400 $1,082,016
Cost of goods sold 472,500 481,950 501,228
Gross margin $547,500 $558,450 $580,788
Other revenue [source] $0 $0 $10,000
Interest income $1,000 $0 $0
Total revenue $548,500 $558,450 $590,788
Operating expenses
Sales and marketing $40,000 $40,800 $42,432
Payroll and payroll taxes 60,000 $61,200 $63,648
Depreciation 40,000 40,800 41,600
Insurance 40,000 $40,800 $42,432
Maintenance, repair, and overhaul 15,000 15,300 15,600
Utilities 30,000 $30,600 $31,824
Property taxes 15,000 $15,300 $15,912
Administrative fees 18,000 $18,360 $19,094
1. Year-one revenue expectancy
Lubriderm Men's (Standard Size)Compact Size Promotional Samples Family Size
Number of units sold annually 5,750 3,750 750 8,750
Average sales price per unit $120.00 $80.00 $40.00 $0.00
Annual revenue per product $690,000 $300,000 $30,000 $0
Total year 1 revenue $1,020,000
2. Year 1 cost of goods sold
Lubriderm Men's (Standard Size)Compact Size Promotional Samples Family Size
Expected gross margin per product 50.00% 40.00% 25.00% 0.00%
Annual cost of goods sold per product $345,000 $120,000 $7,500 $0
Total year 1 cost of goods sold $472,500
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment 15%
4. Number of years for straight-line depreciation 5
5. Annual tax rate 30%
6. Loan Value $80,000

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Other 4,000 $4,080 $4,243
Total operating expenses $262,000 $267,240 $276,786
Operating income $286,500 $291,210 $314,002
Interest expense on long-term debt 3,590 2,866 2,106
Operating income before other items $282,910 $288,344 $311,897
Loss (gain) on sale of assets 0 0 1,000
Other unusual expenses (income) 0 0 0
Earnings before taxes $282,910 $288,344 $312,897
Taxes on income 30% 84,873 86,503 93,869
Net income (loss) $198,037 $201,841 $219,028
7. Milestones andTimelines of the Project
Milestones for Project
 Conducting a comprehensive investigation into Existing Gaps in a given market (2-3
Months)
 Survey style Target Market Analysis (2 Months)
 Feasibility Studies based on financial aspects (1 Month)
 Business Description and Expansion (Product Based Strategy) (1 Month)
 Marketing Plan (1 Month)
 Competitors Study and Revision of Marketing Plan (1 Month)
 Financial Plan (Costs, Logistics etc) (1 Month)
Conclusion

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Lubriderm attempts to bring its product to the United Kingdom. At present it targets a
very niche segment which are, the men who want a daily wear moisturizer that also provides
therapeutic care to their skin. As noticed in the business planning, there are opportunities for
Lubriderm that would help secure good sales in this segment. In future Lubriderm would also be
able to plan for product expansion, and can bring in its whole range of products to the United
Kingdom market.

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References
Aidin, B. 2014. Business face of UK Beauty, Raconteur, Available at:
http://raconteur.net/business/business-face-of-uk-beauty, [Accessed on 25 Feb 2015]
Bianaca, L. 2013. Metrosexual men cost their partners £230 every year, Available at:
http://www.dailymail.co.uk/femail/article-2352279/Metrosexual-men-cost-partners-230-year-
beauty-products-bid-look-groomed-like-David-Beckham.html, [Accessed on 25 Feb 2015]
Hart-Davis, A. 2011. Half of us suffer sensitive skin, Mail Online, Available at:
http://www.dailymail.co.uk/femail/article-1354257/Half-suffer-sensitive-skin--natural-products-
blamed--calm-down.html, [Accessed on 25 Feb 2015]
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Lubriderm. 2015. About Lubriderm. Available at: https://www.lubriderm.com/about-us,
[Accessed on 25 Feb 2015]
Quine, O. 2014. 10 best men's skincare products, Available at:
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Souiden, N., & Diagne, M. 2009. Canadian and French men's consumption of cosmetics: a
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