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.
Fair & Lovely case study and how it triggered Indians unfair obsession with white skin. How Indians considers dark skin as inferiors.? this unethical belief has been deeply rooted in our system for ages and we need to find a way to fight out of this.
Fair & Lovely case study and how it triggered Indians unfair obsession with white skin. How Indians considers dark skin as inferiors.? this unethical belief has been deeply rooted in our system for ages and we need to find a way to fight out of this.
We have studied the market of Skin cream in India, segmented it in 4 ways, chose a company of study and a brand under that company, compared it with its major competitor. All the data are from reliable sources. I tried to mention them wherever I could. Moreover, this just my view of the market. It could be different in a million ways. We have used only secondary data here.
Fair & lovely - A case study on marketing strategies of fairness cream brands.Ahtezaz Parways
This PowerPoint Presentation is about the marketing strategies of various fairness cream brands categorized under : Market leader, Market Challenger, Market Follower and Market Nicher. It is made by referencing the Hard Copy of a Case study named : Fair & Lovely : Creating Demand.
This presentation shows which products are considered to be cosmetic products in the EU and which conditions they need to fulfill to be considered cosmetics.
Marketing and Advertising strategy of Fair & LovelyRevathi Basara
Presented at St.Mary's Degree college as an assignment for Advertising subject. this presentation includes the latest information about advertising and marketing styles of the product ( Fair & Lovely) and the criticisms it has to deal with in society.
We have studied the market of Skin cream in India, segmented it in 4 ways, chose a company of study and a brand under that company, compared it with its major competitor. All the data are from reliable sources. I tried to mention them wherever I could. Moreover, this just my view of the market. It could be different in a million ways. We have used only secondary data here.
Fair & lovely - A case study on marketing strategies of fairness cream brands.Ahtezaz Parways
This PowerPoint Presentation is about the marketing strategies of various fairness cream brands categorized under : Market leader, Market Challenger, Market Follower and Market Nicher. It is made by referencing the Hard Copy of a Case study named : Fair & Lovely : Creating Demand.
This presentation shows which products are considered to be cosmetic products in the EU and which conditions they need to fulfill to be considered cosmetics.
Marketing and Advertising strategy of Fair & LovelyRevathi Basara
Presented at St.Mary's Degree college as an assignment for Advertising subject. this presentation includes the latest information about advertising and marketing styles of the product ( Fair & Lovely) and the criticisms it has to deal with in society.
Medico Co.A recent survey revealed that 95 of West Australian.docxroushhsiu
Medico Co.
A recent survey revealed that 95% of West Australians are aware of the high risk of skin cancer through prolonged exposure to the sun. The sun does not discriminate. Just about anyone engaged in outdoor activities is at risk and sun bathers run the highest risk. It was once believed that the danger lies in prolonged, continuous exposure to the harmful rays of the sun. However, it is now clear that brief but frequent exposure to the sun is just as bad. This would suggest the need for sun protection on a daily basis regardless of the nature of outdoor activities. The Cancer Council's "Slip! Slop! Slap!" message has been effective in educating the public about the importance of "slipping" on a shirt, "slopping" on some sunscreen and "slapping" on a hat when going outdoors every time. The program has been extended to include “seek!” (shelter) and “slide!” (on a pair of sunglasses). Although the sale of sunscreen has doubled in the past 10 years, there is concern that sunscreen is not used at least 50% of the time. The rest of the survey result involving a good cross-section of the population, is as follows:
Reason for not using sunscreen
while outdoor (any activity) Response
Don't bother, never got into the habit of using one, etc. 20%
Don't need it except when at the beach 80%
Inconvenient, difficult to apply, oily, sticky, uncomfortable, etc. 70%
The survey, published recently in a health journal, drew your attention. You are the marketing manager of the Medico Co. of Perth.
Medico & the Moisturiser Market
Medico is the largest locally-owned pharmaceutical company - but pales in comparison with the multinational companies which dominate the Australian pharmaceutical market. The company was founded in 1948 and is well known locally for its range of high quality moisturisers sold under the Medico brand. Moisturisers are simply lotions that restore and maintain the skin's natural moisture and are used mainly by women and babies. Familiar brands include Vaseline Intensive Care, Johnson's Baby Lotion, Olay, Dove and Nivea. Apart from the more expensive moisturisers from the leading cosmetic houses, there are at least 30 brands of mainstream moisturisers on the market available in supermarkets, discount stores, department stores, and pharmacies. Medico's moisturiser division also contract manufactures for retail chain stores (supermarkets, discount stores, pharmacies, etc.) under their house/store brands, and these account for about 50% of the division's sales volume.
Marketing
The company's own brand of moisturisers is sold through all pharmacies in the Perth metropolitan area. They are priced at a premium, about 50% more than other mainstream brands, allowing pharmacies to take a higher mark-up for supporting the brand at retail level. As such, the Medico brand is the best selling range among retail pharmacies. It is considered a specialty brand and is the only formulation that penetrates deep into the skin lea.
Cosmetic giants segment the global cosmetic marketSuman Bhattarai
this case is about the market segmentation of great market leader for the cosmetic product; they are targeting emerging market of the world. This case study also analyse which marketing strategies they used and how they survive and win the market.
Step1: Product Management
Selecting a Winning Product
Market Segmentation
Market Analysis
Competitor Analysis
The Requirements Specification
Step 2: Situation analysis
Over-view
Market Place
BCG matrix
POD vs. POP
SWOT analysis
Step 3: Marketing Strategy
Target segment selection
TOWS Matrix || actions
Positioning || Battle of minds
Step 4: Communications MIX
Objective
Advertising
PR activity
Social media
more about me take a look @
http://www.slideshare.net/AbdulrhmanTantawy/atantawy-visual-resume
Brand Trends Report on the male grooming market - changing consumer behaviour, interview with brand owners and results of an beauty industry leaders' online survey. Published 2017, updated in 2018. To find out more please visit www.twobytwo.co.uk
Business model interrogation and developmentiWant tutor
The company of Thomas Cook is the parent organization of Thomas Cook Ireland and United Kingdom, Condor Airlines along with other such related subsidiaries until the year 2007, when there had been a merger with MyTravel Group PLC. The combination of this new organization had been known as Thomas Cook Group PLC. This had also been listed under the London Stock Exchange(Calder2013). In the current era, it has been identified as one of the leading travel groups across the globe, with an appropriately focused strategy, a portfolio of brands leading the market, a flexible model of business, and a team of approximately 31,000 individuals(Ahwere 2012). The entire group shows commitment towards the achievement of vision. The vision is to go further for making the dreams of others come true(Ingle, 2008). The organization gives huge importance to the customers and is focused on delivering sustainability in valuing the shareholders
The neuroprotective role of glp1 receptor aganist in people with mood disorderiWant tutor
The human body consists of a number of hormones. Each and every hormone has a different function. Like many others group of hormones, ‘Incretins’ is a group of gastrointestinal hormone which exists both in the periphery and also in the central nervous system of the human body. In the recent times it has been found that this hormonal group has varies number of functions in the human body which effects the structure and the functioning of the brain. The situations which are related to mood disorders are associated with the brain and have similar alterations and functions. The conditions which are related to mood disorders are as a result of the defects which may reflect in the form of memory, learning and other execution function (Hlscher, 2011). Such kind of defects are observed in a number of humans mainly who are having some or the other kind of metabolic disorder. Also those patients who are suffering from the mood disorders have a co-morbid metabolic conditions. This reports examines the role of GLP-1 receptor for the treatment of people who are suffering from mood disorders.
With increasing competition and globalization, companies around the world are trying to find effective strategies to reduce costs, increase sales and maintain their profitability. While some companies are successful in doing so, others seem to have fade away and become obsolete. The once big power houses like General Motors have found it difficult to compete with the emergence of innovative Japanese car manufacturers such as Toyota Motor Corp.
What needs to be done across these organizations is the employment of better and innovative management techniques. One such option is using a Sustainable Supply Chain Management
Is it true that today's society is impacted with the cultural values for example dance, movements and expressions from the pasts? According to Vaughan, D. and Cunningham, M. (2002), the expression and gesture of an artist worth more than action, in today’s culture Artistic expression pays a civilly prevalent. In today’s society dance plays a very important role, to communicate their ideas through various medium. The variety form of dance use the oldest expressions from the culture, and experiment it in a new style. For many in the society dance are entertainment, education, stress release, and a form of worship. Beyond everything in life the thoughts of dance and art serves a greater purpose, artist believes that dance denotes the meaning of tradition and the results of its expression depicts the reaction of culture on society. Dance is an initiation of culture and tradition to the human torso in its most raw form, whether one is bringing up their hand or performing in ballet, in whatever way the artist is holding out and holding back the tradition and style alive (Vaughan, D. and Cunningham, M. 2002).
How michael hakene can be considered to be an auteuriWant tutor
There are a number of film directors which comes up with new stories, concept and movies every year. Some of those gain popularity on national level, while other throughout the world. Filmmakers implement different ideas and strategies for the success of the films. They try different situations and scenarios and implement the same in order to product the best film. There are a large number of theories which are popular and are widely used by the filmmakers. One such theory, among various others which has been devised out for the betterment of the movies is the Auteur theory. In this research we will study about Auteur theory in detail and will research on its implementation by the directors. On a particular basis we will be analysing that how ‘Michael Hanekar’ who is a very popular Austrian director, can be considered as in auteur. The detailed discussion would be done on the theory of auteurs with the complete explanation of the implementation of this theory on in the movies by the directors. In the study will be performed on how ‘Michael Hanekar’ was truly an auteur. We will be understanding the differences in the movies of Haneke and other directors and will find the reasons why he is actually called as an auteur.
Management is one of the key requirements for an organization. It forms one of the most important paradigm for the organization and it is something which determines the success of an organization. In an organization there are a large number of different management related operations such as operations management, human resource management, Research & Development, Leadership development, finance management and a number of other departments. It is the management which formulates the strategies for the organization to function in a proper manner. Thus, management forms to be a key feature for an organization. In this research paper, we have identified the management culture in Google, which is one of the largest software company in the world. In order to identify the same, we have studied their management culture which is followed there along with the management strategies which are formulated in operations department, human resource management and their organizational culture.
Eastern and western photography differencesiWant tutor
According to Michel de Certeau, the western culture of photographic influences has remained limited to mediating a message through what can be observed that is evoking the essence of natural beauty(Nisbett et al, 2003). The perspective of people in the west with regard to the above mentioned figures will be limited to an art work based on photographic elements to enhance tourist aspects of the place and attract them to its natural beauty(Paine et al, 1955). There is no approach made to conquer the viewer with respect to understanding of the culture from the west. The conception holds to focus more on elaborating the photographic element of the overall photo rather than its parts(Nisbett et al, 2001).
Many times, our life sticks around the crossroad, something which leads us in such a situation, where one has to leave one important element and choose the other. It is such a stage of skepticism which decides our entire future. Yuefei was left in a similar situation. On one hand, it was his mother, Charlotte and his entire family and on the other hand, it was his motherland, which was seeking his requirement. He mulled over the two deciphering situations, but could not come to a conclusion (Juel, 1988). He told about his vision and confusion to me. He told that he wanted to join the army but can’t leave his mother and family.
Business module innovation management and forecastingiWant tutor
This a two-part report carrying out an analysis of innovation development in Google Inc USA, and the evaluation of the forecasting method at Ford. In the innovation development and analysis, the creativity and innovation of the firm is analyzed along with the implications introduced by means of organization structure, culture, and change management. As with any impediments to processes, the innovation management of company would also have faced some challenges and these challenges are then discussed in context.
A primary research analysis is conducted with Simply Energy. The purpose of the research is to identify and assess how the company provides its consumers with needed services and also to find out satisfaction levels of the customers. Recommendations are made for increasing sustainability initiatives in order for the company to face current competitive situations.
Investigate the impact of csr on brand perception. a case study of mtn in nig...iWant tutor
Every organization gets involved in one or the other activities so as to promote their company and its product. As discussed earlier, the MTN requires striving for contribution towards the society’s wellbeing to try and present a favorable business image. The consumers, no more, tend to be examining the corporate feedback to the society seriously. The CSR initiatives by the MTN include the categories of economic empowerment, education and health. Finding out the extent of consumer’s positive perception towards the MTN brand can be enhanced by the CSR initiatives. Even the marketing managers would be benefited by this research as it will be help them preparing marketing plan and strategies based on the results.
Critical analysis of the strategic and tactical approaches of coca colaiWant tutor
The following essay shall discuss the importance of brand management and brand campaigning. The company chosen for the essay is “Coca-Cola”. In the first part of the essay we shall see how Coca Cola has retained itself as a top most brand in the beverage industry globally. Also a very important part of this essay is the brand proposal for Coca Cola- launching a new product, per se, snacks and how the company can add to its product lines and product mixes. How important is brand reputation and brand campaigning, has been explained in depth throughout the essay.
Located in Casablanca, Morocco, Argan Oil Company is the Moroccan leader in the production of argan oil. The company has been in the culinary and cosmetic argan oil extraction for 10 years and is now looking to expand to the international market under the brand name Argoco. The plan is to position Argoco as a luxury argan-based cosmetic brand and first introduce a range of seven cosmetic products to the Saudi market: anti-inflammatory massage argan oil, relaxing massage argan oil, anti-cellulite massage argan oil, argan based soap bar, argan based shampoo, argan based shower gel, and finally pure argan oil. Since the company manages the whole production process, Argoco guarantees the purest argan oil that can be found worldwide and the rest of the products are all made from natural ingredients.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
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This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
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ANALYZING THE OPPORTUNITY FOR LUBRIDERM PRODUCT RANGE ENTRY INTO THE UNITED KINGDOM
1. 1
ANALYZING THE OPPORTUNITY FOR LUBRIDERMPRODUCTRANGE
ENTRY INTO THE UNITED KINGDOM
STUDENT NAME
COURSE NAME
DATE
2. 2
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.
3. 3
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
4. 4
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.
5. 5
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
6. 6
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
7. 7
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
8. 8
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.
9. 9
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
10. 10
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
11. 11
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.
12. 12
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
13. 13
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
14. 14
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.
15. 15
References
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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:
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[Accessed on 25 Feb 2015]
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16. 16
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