Looks Deluxe Tests Business Model for On-the-Go Refreshment Stops
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The document outlines the development of a business concept called "Looks Deluxe" over 5 days, which provides high-quality bathroom and changing facilities for professionals on-the-go in major cities. It documents customer research, iterations to the business model canvas, testing of hypotheses, and next steps to partner with established beauty retailers looking to enter the US market. The goal is to determine customer needs, validate the value proposition, and identify how to make the business profitable.
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Looks Deluxe Tests Business Model for On-the-Go Refreshment Stops
- 1. Looks Deluxe Team 27 Day 1 Day 2 Day 3 Day 4 Total Customers 23 9 21 19 72 Key partners 3 16 3 2 24 Total 26 25 24 21 96 Cumulative total: 96 A chain of "refresher" stops in big cities - a service that offers professionals to stop over during the day and fix their appearance.
- 3. BUSINESS MODEL CANVAS (DAY 1) KP KA VP CR CS • • • • • Current Need: “looking good” is a basic human need which on-the-go professionals struggle to fulfill Customers should trust in us to make their lives easier while always offering a high quality service B2C Professionals without a 9-to-5 desk job who are on the go • Bankers • Consultants • Entrepreneurs • Real-estate Agents • Journalists/Reporter s • Models/Actors • • Conference Organizers Spa Product Brands Luxury Bathroom Stores Implementation Running the Service Selling Marketing KR • • • Space Human – assistants, spa professionals, receptionists, custodial staff Products – shampoos/soaps/ha ir-driers/ironing boards etc Primary Service: High-quality and accessible bathrooms, showers and changing rooms distributed around big cities New York Midtown Secondary Service: Manicure/Pedicuring, Express Massage, Ironing/Steaming Word-of-mouth popularity CH Physical Service (on location) Website/Email/Phone/F acebook/Twitter Salaries >$50k B2B • SMEs C$ R$ Facility Space Rent Staff & Products Utilities Waste Installation/Renovation Maintenance Marketing & Customer Acquisition Subscription Fee (Parallel to a Gym Membership Fee)
- 4. Private shower facilities Day 1 Day 5 Day 4 Day 2 Day 3
- 5. TESTING OUR HYPOTHESES – DAY 1 Would customers pay a subscription fee in order to guarantee quality? Interviewed customers in Grand Central Station, targeting professionals Would students interviewing for jobs use this service? Interviewed customers in Grand Central Station and Union Square Customers preferred to pay by use Students were not interested in paying for the service
- 6. BUSINESS MODEL CANVAS (DAY 2) KP KA VP CR • • • • • Primary Service: High-quality and accessible bathrooms, showers and changing rooms distributed around big cities Get – Word of mouth, advertisement through key partners, general advertisement, branding Keep – Online booking, perks for frequent customers or package deal, Grow – Expand to multiple locations within New York, expand nationwide/internationa lly, word of mouth, popularity • • • Conference Organizers Spa Product Brands Luxury Bathroom Stores Small fitness centers (such as yoga studios) Implementation Running the Service Selling Marketing KR • • • Space Human – assistants, spa professionals, receptionists, custodial staff Products – shampoos/soaps/ha ir-driers/ironing boards etc C$ Facility Space Rent Staff & Products Utilities Waste Installation/Renovation Maintenance Marketing & Customer Acquisition Secondary Primary Service: Manicure/Pedicure, Express Massage, Ironing/Steaming, Shaving, Make Up, Feminine Care Offering these services to SME’s without their own facilities CH Physical Service (on location) CS B2C Professionals without a 9-to-5 desk job who are on the go • • • • • • • Age range 23-50 Bankers Consultants Entrepreneurs Real-estate Agents Journalists/Repo rters Models/Actors Salaries >$50k B2B • SME’s Website/Email/Phone/F acebook/Twitter Pay-per-Usage (range of willingness to pay is $20 - $40) R$ Subscription Fee (Parallel to a Gym Membership Fee) Subscription Fee for package deals
- 7. MARKET SIZE (CUSTOMERS) Available Market Workers in Manhattan Served Market Women, salary >50K, commute to NY or travel more than 30 min to work Target Market 5% of served market Total Available Market: 2,3M Served Available Market: 500K Target Market: 24K Source: U.S. Census Bureau, 2011 American Community Survey
- 8. COMPETITIVE ANALYSIS 19.1% of people in New York have a health club membership GuavaSuites
- 9. Private shower facilities Day 1 Day 5 Day 4 Day 2 Day 3 Yoga/fitness studios lacking shower facilities
- 10. TESTING OUR HYPOTHESES – DAY 2 Would clients of small yoga/fitness studios without their own showers use our service? Would customers want full services (manicures, hair stylists, etc.) to be provided? We interviewed managers and employees at small yoga studios around Union Square Interviewed customers in Grand Central Station and Union Square, as well as young professionals in London and Paris Managers would endorse the idea There was greater demand for products being provided and a personal, private space rather than services.
- 11. BUSINESS MODEL CANVAS (DAY 3) KP KA VP CR • • • • • Primary Service: High-quality and accessible bathrooms, showers and changing rooms distributed around big cities Get – Word of mouth, advertisement through key partners, general advertisement, branding Keep – Online booking, perks for frequent customers or package deals, Grow – Expand to multiple locations within New York, expand nationwide/internationa lly, word of mouth, popularity • • • Conference Organizers Spa Product Brands Luxury Bathroom Stores Small fitness centers (such as yoga studios) Implementation Running the Service Selling Marketing KR • • • Space Human – assistants, spa professionals, receptionists, custodial staff Products – shampoos/soaps/ha ir-driers/ironing boards/feminine care, etc. Primary Service: Products/Amenities Offered: Manicure/Pedicure, Express Massage, Ironing/Steaming, Shaving, Make Up, Feminine Care, Showers, Coffee Offering these services to SME’s without their own facilities C$ FC – Installation/Renovation VC – Facility space rent, staff & products, utilities & waste, maintenance, marketing & customer acquisition CS B2C Professionals without a 9-to-5 desk job who are on the go • • • • • • • Age range 23-55 Bankers Consultants Entrepreneurs Real-estate Agents Journalists/Repo rters Models/Actors CH Salaries >$50k > $75 k Physical Service (on location) B2B • SME’s Website/Email/Phone/F acebook/Twitter Pay-per-Usage (range of willingness to pay is $20 - $40) R$ Subscription Fee (Parallel to a Gym Membership Fee) Subscription Fee for package deals
- 12. Private shower facilities Day 1 Day 5 Day 4 Day 2 Yoga/fitness studios lacking shower facilities Day 3 Services and male customer base
- 13. TESTING OUR HYPOTHESES – DAY 3 How difficult is it to access restrooms in New York City? Would customers at small yoga/fitness studios without showers use our service? Talked to managers and employees at eight cafes/shops/hotels in Union Square Spoke to fitness class goers, receptionists, and managers Many restrooms are made accessible to the public There was no need for our service; most people traveled home directly after their classes
- 14. TESTING OUR HYPOTHESES – DAY 3 Would men contribute to our customer base? Customers were not interested in paying a subscription fee. Spoke to potential customers in Grand Central Station & Union Square, as well as young professionals in London/Paris Interviewed potential customers in Grand Station and Union Square The male archetype was younger than what we hypothesized Some customers would be willing to pay a subscription fee for permanent services such as lockers
- 15. BUSINESS MODEL CANVAS (DAY 4) KP KA VP CR • • • • • Primary Service: High-quality and accessible bathrooms, and changing rooms distributed around big cities Get – Word of mouth, advertisement through key partners, general advertisement, branding, capture large customer groups through B2B deals Keep – Online booking, perks for frequent customers or package deals, Mobile app Grow – Expand to multiple locations, services base on demand • • • • Conference Organizers Spa Product Brands Luxury Bathroom Stores Small fitness centers (such as yoga studios) Retail Beauty Stores (Sephora) Implementation Running the Service Selling Marketing KR • • • Space Human – assistants, receptionists, custodial staff Products – shampoos/soaps/ha ir-driers/ironing boards/feminine care, etc. Products/Amenities Offered: Manicure/Pedicure, Ironing/Steaming, Shaving, Make Up, Feminine Care, Showers, Coffee, lockers FC – Installation/Renovation VC – Facility space rent, staff & products, utilities & waste, maintenance, marketing & customer acquisition B2C Professionals without a 9-to-5 desk job who are on the go • • • • • • • • Age range 23-55 Age range: Female 23-55 Male :23-35 Bankers Consultants Entrepreneurs Real-estate Agents Journalists Models/Actors CH • • Physical Service (on location) Salaries > $75 k Website/Email/Phone/F acebook/Twitter Offering these services to SME’s without their own facilities C$ CS B2B • SME’s R$ Pay-per-Usage (range of willingness to pay is $20 - $40): Pricing tactic: Volume base Subscription Fee (offers a locker) Subscription Fee for package deals
- 17. Private shower facilities Day 1 Day 5 Day 4 Day 2 Yoga/fitness studios lacking shower facilities Day 3 Profitability Services and male customer base
- 18. COST ANALYSIS Initial Investment: Operational Costs: • • • • • • • • • Remodeling Installation Supplies Etc. Total: $572,300.00 Space Utilities Human resources Supplies Etc. Total: $43,300.00 Based on a model with 12 suites and charging a pay-per-use fee of $20… We would require a turn-over rate of approximately 100 customers per day.
- 19. CONCLUSION
- 20. BUSINESS MODEL CANVAS (DAY 5) KP KA • Retail Beauty Stores • • Conference Organizers Spa Product Brands Luxury Bathroom Stores • • • • • • • Find Key Partners (B2B) Branding Implementation Running the Service Selling Marketing KR • • Space Human – assistants, receptionists, custodial staff Products VP CR Primary Service: High-quality and accessible bathrooms, and changing rooms distributed around big cities Products/Amenities Offered: Manicure/Pedicure, Ironing/Steaming, Shaving, Make Up, Feminine Care, Showers, Coffee, lockers Get – Advertisement, Word of mouth, branding Keep – Online booking, package deals, Mobile app Grow – Expand to multiple locations Get – direct sales Keep - increase customer traffic + hassle free operations CH Physical Service (on location) Website/Email/Phon e/Facebook/Twitter Pay fee for being their premises • Competitive edge for well-established US brands to enter the US market CS Professionals without a 9-to-5 desk job who are on the go Age range: Female 23-55 Male :23-35 Entrepreneurs Real-estate Agents Journalists Models/Actors Sales persons Salaries > $75 k Direct Sales Force C$ FC – Installation/Renovation VC – Facility space rent, staff & products, utilities & waste, maintenance, marketing & customer acquisition Retail Beauty Stores New to the US Market (e.g. Space.NK) R$ Pay-per-Usage (range of willingness to pay is $20 - $40): Pricing tactic: Volume base Subscription Fee (offers a locker) TBD B2C B2B
- 21. Private shower facilities Day 1 Next step: Partnership Day 5 Day 4 Day 2 Yoga/fitness studios lacking shower facilities Day 3 Profitability Services and Male customer base
- 22. NEXT STEPS Find a way to solve the customer need and make this business profitable Determine what well-established foreign beauty retailer brands are looking into entering the US market Talk to Decision Makers (TBD) at Space.NK– see if they have considered central locations and test the barriers to entry they have faced Decide on ways to cut costs while preserving the Luxury Brand
- 24. CUSTOMER-VALUE CANVAS (B2C) Value Proposition Customer Segment Products and Services: • Convenient, high-end bathrooms and changing areas • More convenient than returning to your home or office • More luxurious than using a Gain Creators: Starbucks’ restroom • Multiple locations • High-end facilities Jobs to be Done: • Have a convenient, clean, private place to touch-up appearance Pain Relievers: • Reduces the uncertainty of finding a clean restroom • The moment of peace after/before a day at work Pains: • The rush, the stress, the mess • Lack of clean public restrooms • Hassle of carrying around daily necessary products such as razors, make-up, etc. Gains: • Feeling more confident in your appearance • Remove the stress of rushing around with no place to rejuvenate
- 25. CUSTOMER SEGMENT (B2C) • On-The-Go Professionals: • • • • Female: 23-55 Male: 23-35 Accessible salary: > $75,000 Who commute more than 30 minutes to work Cares about their appearance – attaches a value of at least 7/10 Has a client-facing job and travels to meet their clients Goes out for dinners at least twice a week Does not have excellent facilities at work or at their gym Willing to use cabs as a form of transport in place of public transport Values privacy, convenience/efficiency, cleanliness and luxury
- 26. ARCHETYPES (B2C) Rebecca (27) Johanna (44) Thomas (30) Real estate broker Hedge Fund Manager Product Designer Salary 300K Single and Dating… Salary 91K Needs to refresh before going to see a client Goes to benefit events after work Salary 80K