1. DAY/NIGHT
NAIL POLISH

2. TABLE OF CONTENTS
EXECUTIVE SUMMARY 2
BUSINESS DESCRIPTION AND VISION 6
DEFINITION OF THE MARKET: RESEARCH & ANALYSIS 13
DESCRIPTION OF PRODUCTS AND SERVICES 25
ORGANIZATION & MANAGEMENT 31
MARKETING & SALES STRATEGY 36
FINANCIAL MANAGEMENT 42
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3. EXECUTIVE SUMMARY
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4. EXECUTIVE SUMMARY
Day/Night is the newest innovation of nail polish that offers a unique and edgy
accessory to any style of outfit that fits to one’s personality. Our products are specially
formulated based on high tech color­changing effects: thermochromism and
photochromism to dominate the trendy styles of the nail polish industry. The two
formulations are to achieve the effects of nail polish after being put in light and change
with heat. Use Day/Night to instantly watch your nails change with you.
CURRENT POSITION AND FUTURE OUTLOOK
After a lot of research on the nail polish industry, we have found a good
opportunity in the market for a color and heat changing nail polish.
In 2012, nail polish sales topped out at $768 million, up 32% from 2011
according to Women’s Wear Daily. The article also reported that the upward trend
wasn’t going to go anywhere: which has been proven to be correct. In 2014, $8.54
billion dollars was spent on nail services, which include manicures, purchasing nail
polish, etc, according to the Nails Magazine Big Book about the nail polish industry in
2013­2014 (Nails Magazine, Jan. 1, 2014). The nail polish effect has taken charge in
the past years based on multiple reasons; nail care isn’t just about grooming, but more
about personal style and self expression. Also, social media has a massive impact on
the trends of nail polish where nail art is one of the top five most tagged items on both
Pinterest and Instagram (Nails Magazine, Jan.1, 2014). Day/Night is in a good position
with a positive outlook by entering markets that continue to grow and make an impact
everyday.
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5. MARKETING STRATEGIES
With our color­changing nail polish, we plan to gain brand recognition, gain and
build clientele and build emotional relations with consumers. To reach this goal, we plan
on utilizing social media, promotional discounts, product sampling in Beauty Boxes,
displays in nail salons, and pop up shops.
To promote our brand, we will open a specialty boutique at Fashion Island Mall in
Newport Beach, CA, and have an opening event party with product samples and
brochures. At the mall, we’ll have signs up that explain our new store, distribute flyers to
people walking around mall, and give invitations/samples to neighbor stores.
MANAGEMENT
Management roles will be divided between the three members of Day/Night LLC.
Yessenia Arambula will act as Merchandise Buyer, Monica Morelos will act as Director
of Visual Merchandising and MaryLou Mercado will act as the Director of Marketing,
Public Relations and Advertising. All members will run and manage the specialty
boutique to maintain and ensure the quality of customer service and environment of the
store.
FINANCIALS & FINANCING
The members of Day/Night will invest $10,000 each into the company. We are
applying for a $100,000 loan from a bank with a 10% interest that will be paid with
monthly installments over 10 years. The loan and personal funds amount to $130,000;
and will cover the start­up costs to create this nail polish line and to open up a boutique.
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6. EXIT STRATEGY
Our exit strategy is to do an LLC interest transfer. One or more partners can sell
or transfer their interest in the company to another person but will make sure that in the
LLC operating agreement, the outline for transferring or assigning LLC interests and the
rights and/or obligations of the assignee to avoid potential conflicts.
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7.
BUSINESS DESCRIPTION & VISION
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8.
DESCRIPTION OF THE COMPANY
DAY/NIGHT is a nail lacquer brand that has come to dominate the nail industry.
We offer nail lacquers that change color with its surrounding temperatures and light
exposure, causing the color change to take effect in seconds. This fast changing
formula has been developed using advanced technology that use infused color to create
captivating results. The lacquer bottle was designed to protect the lacquer from
exposure of temperature change or light exposure. The lacquer color change starts to
work as soon as the brush touches the nail. The brush was designed to give the most
even and precise lacquer application. We offer 16 innovative shades, 8 temperature and
8 photo, that are high quality that won’t chip or fade, quick drying time, fragrance free
and has a one time easy application.
Our DAY/NIGHT specialty boutique offers a great atmosphere that is fragrance
free as our product is. We strive in having the best customer service by having highly
trained and knowledgeable technicians available. We at DAY/NIGHT want our
customers to leave having a positive and comfortable experience that reflect our brand’s
mission statement.
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9.
MISSION STATEMENT
Our mission at DAY/NIGHT is to provide high quality lacquers that make our
customers feel as innovative as the formula on their nails. We strive in having the best
customer service by providing highly trained and knowledgeable technicians available. It
is important for us to use advanced technology to ensure our brand standards are
always met. We want to empower women to be bold and beautiful with just one simple
brush stroke.
BUSINESS GOALS & OBJECTIVES
DAY/NIGHT’s goal is to increase our brand awareness. We want to use different
forms of communication to spread our brand awareness. We want to make our lacquer
brand to become the innovators of the nail industry. It is important for us to gain
customer loyalty to be recognized as providing the best customer service. We want to
be committed in using advanced technology that will help us stand out from our
competitors. We want to create an emotional relationship with our customers, so we
better understand their needs.
Our objective is to increase our store sales or exceed our monthly target sales. In
order to achieve our target sales we will use social media platforms to bring in more
in­store traffic, increase customer satisfaction, control costs in production and
operations, provide resources to employees to remain productive, productive and
positive employee environment, and profit margin on product sold.
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10.
BUSINESS PHILOSOPHY
DAY/NIGHT’s philosophy revolves around customer satisfaction. We strive in
customer service by using advanced technology, being innovative, in order to produce
high quality lacquers.
● Technology­ We focus the quality of our product on advanced technology. We
always ensure that we use the appropriate technology. It is important for us to
produce high quality lacquers that will stay true to the brand and always meets
our customers needs. We are constantly researching new types of technology to
develop our product more efficiently for the brand and our customer.
● Innovation­ We always strive to have more effective services, products, and
ideas. We believe that a simple idea can grow into something ground breaking.
Our product is constructed by recognizing a great idea and using advanced
technology to get to the end result. We want to remain competitive in our industry
market to increase our brand awareness and growth.
● Service­ Our customers is what helps to expand our products. We are attentive
to the needs and wants of our products by our customers. It is very important that
all of our employees are knowledgeable on the product to answer question
and/or concerns. When our customers have concerns regarding our product, we
strive in having clear communication skills that involve being patient, giving them
time and appreciation.
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11. ● Products­ Our products always satisfy the customer because we are constantly
finding new ways of improvement. We aim in always having trained professional
who dedicate their effort in creating high quality lacquers. We are constantly
conducting market research to find out what customers want and need from our
brand.
TARGET MARKET
The DAY/NIGHT customer are women between the ages of 18­25 years old,
technology savy, digital environment, and innovative trendsetters. According to
Women’s Wear Daily, Millennials remain the key age demographic for online
commerce, spending more money online in a given year than any other age group. This
includes 70 percent of them who use their smartphone or tablet one or more times a
month as part of their shopping process (WWD, AUG. 11, 2014).
DESCRIPTION OF THE INDUSTRY
The nail industry grew to a record $8.54 billion in 2014 (Nails Magazine, January
1, 2014), but we believe we’ll see more and more young people look to a nail career
with greater interest now because it’s an opportunity to earn a good living, make your
own flexible hours, and do something that is creative and fun. The industry is the source
of so many jobs, not just nail techs and salon owners, but beauty dealers,
manufacturers, and all the other kinds of suppliers whose focus is nails (Nails
Magazine, January 1, 2012)
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12. According to Nail Magazine, Nail care isn’t just about grooming anymore, but
stepping outside of the commonplace of a french manicure. Women are more willing to
wear bright and bold lacquer colors. Nail services aren’t just the only driving force in the
industry, it’s the products themselves that are a driving force. This is all due to the fast
growing consumer needs of self­expression (Nails Magazine, January 1, 2015)
The industry is the source of so many jobs, not just nail techs and salon owners,
but beauty dealers, manufacturers, and all the other kinds of suppliers whose focus is
nails. The reason behind the nail industry growth is due to celebrities, do­it yourself,
social media, nail art, and product innovation. All of these categories have helped
growth in revenue sales in services and products. It’s a great time to be in the
business,especially if you stay on top of the leading trends and provide customer
service and pampering that the DIY­er doesn’t get to experience when she’s doing her
own nails (Nails Magazine, January 1,2015)
According to Nail Magazine, no celebrity this year had more effect on nails than
Michelle Obama, who wowed an international audience at the Democratic National
Convention with her lavender­hued nails. Drugstore sales of polish and nail products
have soared: polish sales are up 59%, 36% increase in natural nail products, and a
100% increase of top and base coats Facebook and Twitter remain popular places to
share your favorite nail art designs, but Instagram and Pinterest are newer platforms
that nail techs — and ​Nail Art ​your clients — have taken to with a passion."Boutique"
nail brands carve their own niche. Deborah Lippmann has always been the darling of
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13. beauty editors, but there are more high­priced, small­volume brands than ever,
including Butter London, Nars, and Rescue Beauty (Nails Magazine, January 1, 2014).
COMPANY STRENGTHS AND CORE COMPETENCIES
DAY/NIGHT is entering the an industry that is continually growing by the
demands of the beauty world. DAY/NIGHT is more than just a lacquer nail product, we
are innovators dedicated in producing high quality products for our customers. We
produce high quality products by using advanced technology that enables us to meet
our company’s needs and wants. Our innovation comes from ideas that have been
constructed through intensive market research always focusing on our customer
satisfaction. Our high quality lacquers are fragrance free, quick dry time, won’t chip or
fade, for an easy application process. Our strength revolves in our customer
satisfaction. We strive in customer service by using advanced technology, staying
innovative, in order to produce high quality lacquers.
Yessenia Arambula, Monica Morelos, and MaryLou Mercado are graduating from
the Beauty Program at the Fashion Institute of Design and Merchandising in 2015. All
three of them have gained knowledge about current beauty industry topics. They are all
educated on the needs and demands of beauty consumers. Yessenia effectively brings
business strategies and tactics to market new ideas, Monica uses her background in
research and development to help the brand produce high quality results, and Marylou
uses her product development background to create products and packaging for the
brand.
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14.
DEFINITION OF THE MARKET:
RESEARCH & ANALYSIS
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15.
BUSINESS INDUSTRY AND OUTLOOK DESCRIPTION
We researched a lot of information about the beauty industry before we started
our business plan to really understand not only the nail industry, but also the beauty
industry. From the research, we learned that the nail polish industry has come to a huge
turn and has been getting more popular and trendy. According to Franchise Help, “the
beauty industry continues to expand globally, with projections claiming 8.5% growth by
2014” (Franchise Help, 2015). According to Times Magazine, Women’s Wear Daily
reported that the nail polish sales hit a record in 2012, at $768 million in the U.S., a 32%
gain over 2011. The article continues, saying that “like lipstick, nail polish is often
considered an economic indicator.” The trend seems to be continuing, with decorative
treatments, including “patterned nail stickers and textured polishes…” Social media is
also having a huge impact on the nail polish industry. Lori Silverstein, chief beauty
officer for Peninsula Beauty, attributed the company’s 30% growth to apps like
Instagram, which let the users share pictures of their nail art (Times, Jan. 28, 2013).
GCI Magazine reported that nail care has been one of the strongest performing
categories from the past years with marketing techniques like partnerships with
celebrities and major movies have helped promote consumer interest. Also, it reported
that the category has been even more aggressive, noting that nail care sales for the
52­week period August 11, 2013 reached $1.7 billion in total ​U.S. supermarkets,
drugstores, mass market retailers, etc. (GCI Magazine, Jan. 27, 2014).
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16.
PRIMARY RESEARCH
We conducted a nail polish survey with a sample group of 22 individuals. We
wanted to gain a better understanding of what today’s consumer wants from high end
nail polish, while taking to detail the habits and actions of this consumer to allow us to
gain the knowledge of they’re buying ways; also, to give a better understanding of
where the market stand on thermal nail polish. The survey for the most relevant
questions are as follows:
● Are you willing to spend more money on what’s new and innovative?
○ 90 % answered Yes, I love trying new things
○ 10% answered No, I stick to the basics.
● Which idea interests you the most?
○ 35% answered Nails that change color in the sun/ dark
○ 37% answered Nails that change color with your mood
○ 18% answered Nails that maintain the color all day
○ 10% answered I don’t care.
● How frequently do you wear nail polish?
○ 59% answered Always
○ 35% answered Often
○ 5% answered Sometimes
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17. ○ 1 % answered Never
● How much are you willing to spend on a single bottle of nail polish?
○ 4% answered Less than $5
○ 79% answered $6 to $10
○ 6% answered $11 to $15
○ 11% answered $16+
● What do you look for in nail polish?
○ 25% answered Price
○ 67% answered Brand
○ 2% answered Ingredients
○ 4% answered Follows trends
○ 1 % answered Unique/ sets you apart
● When it comes to fashion or cosmetics do you consider yourself
○ 52% answered Risk taker
○ 2% answered More natural look
○ 45% answered Trendy type
○ 1% answered Stick to the basics
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18. We also conducted focus group interviews. Through our primary research
results, we have learned about nail industry topics, customer behavior, and the
importance of quality and results from a nail polish. The surveys and focus groups were
very important because it helped us structure our marketing strategy.
SECONDARY RESEARCH
For the secondary research, we have researches many websites, articles, beauty
industry reports, and magazines.
● www.nailsmag.com
● www.time.com
● www.cosmeticsandtoiletries.com
● www.hoovers.com
● www.womensweardaily.com
● www.prizm.com
From these sources, we found the main idea for our business plan. Many articles
and beauty industry reports have aided our knowledge about customers’ wants and
needs and what is the nail polish trends that are being acknowledged, and what
consumers expect from their nail polish. With these sources, we extended our business’
unique selling point as an edgy, fun, sophisticated color­changing nail polish that have
unique packaging that is equally creative.
To decide on a store location, we researched areas where other beauty stores
are located, thus being where our target market is. According to Nails Magazine’s Big
Book, California represents a full quarter of all nail techs in the U.S. and grew 11% from
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19. 2014­2015, so we knew indefinitely that California was the state. (Nails Magazine,
2014)
A Lifestage group that would fit into our demographic would be Young Achievers.
The Young Achievers are the Young, hip singles in a lifestage group of
twenty­somethings who’ve recently settled in metro neighborhoods. Their incomes
range from working­class to well­to­do, but most residents are still renting apartments in
cities or close­in suburbs. The group included 7 segments, Young Influentials, Young
Digerati, Bohemian Mix, Greenbelt Sports, Up­and­Comers, Urban Achievers, and
Boomtown Singles.The group has a decidedly progressive sensibility “in their tastes as
reflected in the group’s liberal politics, alternative music, and lively nightlife. Young
achievers segments are twice as likely as the general population to include college
students living in group quarters.” (Prizm, 2014)
As far as exact locations, we found that our target market was, according to
PRIZM’s Market segmentation, Young Influentials. Young Influentials were “once known
as the home of the nation’s yuppies, Young Influentials reflect the fading glow of
acquisitive yuppiedom. Today the segment is a common address for middle­class
singles and couples who are more preoccupied with balancing work and leisure pursuits
and who live in apartment complexes surrounded by ball field, health clubs, and
casual­dining restaurants.” (Prizm, 2014)
Demographic traits would include:
● Urbanicity​: Suburban
● Income​: Midscale
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20. ● Income producing assets​: Below avg
● Age ranges​: <55
● Presence of kids​: HH w/o kids
● Homeownership​; Renters
● Employment levels​: WC, Service, Mix
● Education levels​: College graduate
● Ethnic diversity​: White, Black, Asian, Hispanic, Mix
This fitting with our demographic, being our secondary target market, we looked
into a place where this could fit, that being Newport Beach, in Fashion Island. Fashion
Island has many stores, including Ulta and Urban Decay’s first flagship store, so our
demographic would fit into that lifestyle.
Another segment from the Young Achievers that fits into our demographic is
Up­and­Comers. According to PRIZM, “Up­and­Comers is a stepover, midscale singles
before they marry, ave families, and establish more deskbound lifestyles. Found in
second­tier cities, these mobile adults, mostly 25­44, include a disproportionate number
of recent college graduates who are into athletic activities, the latest technology, and
nightlife entertainment.”
There demographic traits include:
● Urbanicity:​ Second City
● Income:​ Upper Mid
● Income Producing Assets:​ Moderate
● Age Ranges:​ 25­44
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21. ● Presence of Kids:​ HH w/o Kids
● Homeownership:​ Mix, Renters
● Employment Levels:​ Professional
● Education Levels:​ College Graduate
● Ethnic Diversity:​ White, Asian, Mix
The last segment in the Young Achievers categories that fits into our
demographic are the Young Digerati. “Young Digerati are the tech­savvy and live in
fashionable neighborhoods on the urban fringe. Affluent, highly educated, ethnically
mixed, Young Digerati communities are typically filled with trendy apartments and
condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars­
from juicing to coffee to microbrew.”
The Young Digerati is apart of the wealthier side of the Young Digerati, having
lifestyle traits including shopping at Bloomingdale’s, traveling to Asia, reading Dwell,
watching Independent Film Channel, and having an Audi A3. The demographic tratis
include:
● Urbanicity:​ Urban
● Income:​ Wealthy
● Income Producing Assets:​ Elite
● Age Ranges:​ 25­44
● Presence of Kids:​ Family Mix
● Homeownership:​ Mix, Renters
● Employment Levels:​ Management
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22. ● Education Levels:​ Graduate Plus
● Ethnic Diversity:​ White, Asian, Hispanic, Mix
Continuing with our secondary research, we implemented a lot on trying to find
information on the nail industry, including nail services not just nail polish, to really
understand the importance and the relevance of this industry. According to the Nails
Magazine Big Book analysis of 2014­2015, 40% of salon environments include a dress
code of require a uniform. (Big Book, 2014) This is tremendously important as to our
store, because we want to look as professional and we can. Also, the analysis
continues asking “How much do you spend per month on nail supplies?” 18% said
$1­50, 25% said $51­100, 28% said $101­$200, 16% said $201­300, 6% said $301­400,
2% said $401­500, and only 5% said more than $500. The average cost spent each
month is $275. With this in mind, we can keep our costs relatively low by maintaining a
budget each month and knowing that if we go over the monthly budget, it can hurt us. It
gave us a range of how much we should spent on nail supplies, which in our case, is
only nail polish.
IDENTIFY YOUR TARGET MARKET
According to the survey results, our target market is a customer aged 16­24
years old. When it comes to cosmetics they consider themselves to be more of a risk
taker. They enjoy spending time getting pampered and are willing to spend monthly on
beauty products. The target market includes Generation Y, also known as Millennials,
who is predicted to surpass the boomer generation in spending power and become the
most active spenders of the first half of the 21st century. The report dove into Millennial
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23. consumer behavior regarding beauty, identifying and exploring attitudes and values that
will shape their purchasing patterns over the next decade
(themarketresearcheventblog.com, Nov. 18, 2014).
DEMOGRAPHIC AND PSYCHOGRAPHIC PROFILE
❏ Demographic:
❏ Gender: Women
❏ Location: Fashion Island Mall, Newport Beach, CA
❏ Age: 18­25
❏ Education: Attending College/College graduate
❏ Income: $20,000+
❏ Social Class/Occupation: Middle to Upper Class
❏ Race: All apply
❏ Psychographic
❏ Part time/Full time job/student
❏ Spending money on technology
❏ Enjoys traveling
❏ Loves to shop for beauty and fashion
❏ Spends time researching online before making purchase
❏ Questions surroundings and researches to find answers
❏ Always looking for new ways to communicate with other
❏ Spends her money on innovative products
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24.
TRENDS IN THE TARGET MARKET
According to the Nails Magazine’s Big Book, the top 5 most frequently added
services in 2014, the number one was Gel at 35%, the second was specialty
manicures/pedicures at 23% and the third was Nail art at 12%. That being said,
specialty manicures/pedicures and nail art is where our companies lies. Although in our
store, we won’t be giving manicures, we will be giving an experience to the consumer,
showing them, and letting them test out our product under various light and heat
sources. Also, even though, again, we won’t provide the manicures or nail art, we’re
planning on working with companies to ensure our product goes directly into the hands
of the nail technicians to promote and have an in­salon marketing such as posters and
our products. (Big Book, 2014)
Also, the reports state that only 67% of Americans use social media, but 92% of
nail techs do. This shows as a huge impact on the nail industry by showing how it’s
becoming popular, and how it’s going to continue to grow because in the past 2 years,
Pinterest has gone from 0% to 88%. These statistics continue to show the biggest
growth for the nail industry, social platforms. These trends being kept in mind, Day/Night
will continue to maintain all social media outlets, but more importantly, reaching out to
the nail techs on Instagram and Pinterest that have a following, by providing samples
and seeing if they enjoy the project. (Big Book, 2014)
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25. CURRENT AND/OR ANTICIPATED MARKET SHARE
Our company is going to obtain a good holding of the nail polish industry
because our product appeals to the Millennials who are continuing to look for something
new. Although there is competition in the marketplace for color­changing nail polish and
nail polish in general, we provide something that is new. Our product has both light
sensitive color­changing nail polish and thermal changing nail polish. Other brands
simply have one or the other. Also, our competitors show a more fun and girly side of
the nail polish industry, reaching out to a younger demographic; while our brand is for
the 18­25 year old women who are seeking more edgier and trendy items. We provide
something that isn’t new, but we’re going to show it in a new light and market is
tremendously different to what the current color­changing nail polish is doing. Also, with
our formulation being everything in one, the consumers will be more likely to accept the
new product, based on our primary research. From our research of the huge impact
social media has on the nail polish industry, we have knowledge in our hands and know
how to work the marketplace in our favor: having brand awareness, thus higher market
capitalization.
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26. DESCRIPTION OF PRODUCTS AND
SERVICES
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27. OUR PRODUCTS AND SERVICES
Day/Night provides color thermal and photo changing nail polish. Our nail polish
is the nail polish that caters to consumers wants ­ fast drying, non chipping, long lasting,
pigmented, and fragrance free. Our primary packaging is a cube sized bottle with a
black matte overspray all around. To see the product there will be a sun and moon
window on each side so you can see the product. The cap is a matte black tapered cap
with Day/Night engraved on the side. Our secondary packaging will be made of high
quality cardboard with screen printed holographic all over. Also, the brand name, logo,
and nail polish shade will be screen printed black matte on the secondary packaging.
The customer service in our nail boutique will only be quality service. Each
employee will be knowledgeable and well educated on the products. We will provide
sampling stations where customers can test out the nail polish and experience thermal
and photo effect.
Our Product Offering​:
● Thermal Color Changing Nail Polish ­ This nail polish will react to temperature of
90 degrees and higher. When your fingertips have reached the required
temperature, you will notice the color change.
○ Hot/cold ­ orange to blue
○ Sun/Moon ­ gold to silver
○ Fire/Water ­ aquamarine to hot pink
○ Summer/Winter ­ bronze to chrome
○ Desert/Beach ­ Tan to sky blue
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28. ○ Tan/Pale ­ shimmery brown to shimmery nude
○ Melt/Freeze ­ red brown to blue with purple undertones
○ Humid/Breeze ­ Warm fuchsia purple to cool green
● Photo Color Changing Nail Polish ­ This nail polish will react to any source of
light whether its indoor lighting or sunlight. When your nails are in contact with
light, you will notice the color change.
○ Light/dark ­ white to black
○ Positive/Negative ­ mint to deep burgundy
○ Shine/Shadow ­ pale yellow to deep gray
○ Flash/Dull ­ magenta to plum
○ Neon/Dim ­ highlighter pink to navy blue
○ Day/Night ­ holographic blues and greens to holographic black pinks and
purples
○ Luminous/Matte ­ Pearl pink to matte barbie pink
○ Radiant/Gloomy ­ bronze with blue shimmers to gray with silver shimmers
COMPETITION
Day/Night provides thermal and photo color changing nail polish. We analyzed In
The Mood and Rubywing to determine our differentiation in this specific market. We
chose Ruby Wing because they offer photo color changing nail polish and we chose In
The Mood since they offer thermal color changing nail polish.
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29. Factor Day/Night Strengths Weakness Competitor
A: Ruby Wing
Competitor
B: In The
Mood
Importance to
Customer
Product Color
changing Nail
Polish
We provide
both photo
and thermal
nail polish.
Masstige and
edgy brand.
May not
appeal to
older
demographic.
Minimal
brand loyalty
and product
exposure
because
we’re a new
brand.
Photo color
changing nail
formula ­
responsive to
any form of
light.
Thermal color
changing nail
formula ­
responsive to
heat.
1
Price $8­$10 Inexpensive
price
point/budget
friendly.
Consumers
may consider
the product
to be low­mid
quality.
Cheaper
alternatives
($8 and
under).
Consumers
may prefer a
different
brand with
same price
point.
$8 $10 1
Quality High Quality ­
lasts all day,
non­chipping,
quick drying,
fragrance
free, only
needs one
coat per
application.
Catered to
consumer
wants/needs.
High quality
and low
maintenance.
Not vegan,
organic, or
natural.
High quality
and mastered
formula.
Environment
ally safe and
vegan
formula.
Low quality
formula.
Requires two
coats for
pigmentation.
1
Selection 16 shades (8
thermal and 8
photo)
Different
color
combination
shades.
Variety of
different
color
combinations
.
Consumer
may not like
the color
combination.
36 shades 10 shades 3
Service Educated
staff. In store
product
sampling.
Hands on
experience
with the
product.
No salon/nail
services
No service
since its only
available
online
No service
since its only
available
online
1
Reliability Good
customer
service.
Mastered
formula.
Safety
requirements
and testing.
Online
customer
service.
Reliable
formula.
Online
customer
service.
Formula can
improve.
1
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30. Stability Brand new
company to
the nail
industry.
Non existent
negative
feedback.
Still a small
company in
the industry.
Still a small
company in
the industry.
4
Expertise All
employees
are
knowledgeabl
e of products
and safety
precautions.
Well
educated
employees
3
Company
Reputation
No reputation
­ new to the
industry.
No relevant
reputation.
No relevant
reputation.
2
Location Newport
Beach, CA ­
Fashion
Island
A lot of foot
traffic with
high
disposable
income.
Competitors. Ecomerce but
located
Freeport, NY
Ecommerce
but located
Carlstadt, NJ
3
Appearance Sophisticated
, edgy, trendy
Appeals to
demographic.
Looks
high­end but
trendy.
May not to
appeal to
others
Boho chic
and
sophisticated
.
Cute and
girly.
1
Sales Method Product
sampling ­
getting the
consumer to
try/use the
product
Customers
will be able to
use the
product and
experience
the effects.
Customers
may not want
to do their
nails at that
moment.
Requires
them to
remove or
paint over
their current
manicure
Online sales ­
description
and USP
Online sales ­
description
and USP
3
Advertising Social media,
promotional
discount,
visual
merchandisin
g in nail
salons, PR ­
send product
to
Youtubers/bl
oggers/instag
rammers.
Social
Media/PR ­
Low budget
and
influential.
Visual
merchandisin
g ­ can try the
polish and
purchase at
the salon.
Social Media
­ Not
everyone
uses social
media.
PR ­ not
everyone
watches
specific
people.
Visual
merchandisin
g ­ may not
notice
displays.
Print Ads.
Social Media
Primarily
social media.
1
Image Edgy,
sophisticated
, bold, daring
Appeals to
demographic.
Different.
Boho chic
and
sophisticated
.
Cute and
girly.
1
29

31. *Importance to customer is rated on a scale of 1­5, 1 being very important and 5 being
the least important .
UNIQUE SELLING POINT
Day/Night’s unique selling point is offering color changing nail polish that is quick
drying, fragrance free, and long lasting as well as our brand image. Since we are an
edgy and sophisticated brand, we want our customers to find their edgy side when
wearing our nail polish. With our colors and effects you are not only wearing just any
polish but unique nail polish. You will be able to select from 16 different colors that react
to either heat or light . In our nail boutique, our sales team will always have Day/Night
nail products on their nails. Also they will dress in an edgy and sophisticated style to
reflect the brand. The sales team will also help the customer apply the nail polish and
answer any questions about the product and company.
30

32. ORGANIZATION & MANAGEMENT
31

33. DESCRIPTION OF COMPANY ORGANIZATION
Day/Night will function by three founders and creators of the company; Yessenia
Arambula, Monica Morelos, and MaryLou Mercado. Day/Night is their primary source of
income and intends to make it their career. Each person is responsible for their position
and tasks:
● Providing world class customer service
● Creating a relatable connection with the customer
● Represent the brand through our products
LEGAL STRUCTURE
Day/Night will be a legally stated Limited Liability Company (LLC), to establish
that all owners are only taxed once. Also by being an LLC, the owners equity is
protected. If Day/Night ever wants to expand and wants to raise money through venture
capital, we are obligated to terminate the LLC.
SPECIAL LICENSES AND/OR PERMITS
In order to operate our boutique in the City of Newport Beach, CA, the only type
of license required is a business license. The business license applies to cosmetics,
beauty supplies, and perfume stores. No permit is required to operate or sell product at
this time.
32

34. BIO DESCRIPTION OF KEY MANAGERS
● Yessenia Arambula: Merchandise Buyer
○ Responsibilities:
■ Analyze market trends to determine which colors should be sold
■ Evaluate prior sales to establish future sales goals
■ Manage Sales and gross margin projection
■ Research and negotiate with suppliers
■ Inventory management
■ Place orders and ensure inventory is properly distributed
■ Research and analyze consumer demands
■ Manage consumer profile
■ Identify Growth opportunities and risks in assortments
Yessenia is responsible for selecting which products and colors to sell
within the retail store. Utilizing our company’s programming system, Yessenia will
track inventory, sales, clientele, and other analytics.
● Monica Morelos: Director of Visual Merchandising
○ Responsibilities
■ Lead the team in create design themes and plans for window and
in­store displays, signage, and pricing concepts.
■ Conducting research on current and future trends in design and
lifestyle, and associated target market features
33

35. ■ Identifying and sourcing materials for merchandising display
concepts
■ Maintaining a budget and negotiating with suppliers of visual
materials
■ Create visual merchandising packs to communicate visual
guidelines including layout principles, visual dressings and signage
■ Assembling or dismantling visual displays in windows or in­store
■ Leading and motivating teams to complete displays to tight
deadlines
■ Seeking feedback from colleagues and customers on the visual
impact of displays and implementing changes.
Monica is a creative and detail­oriented individual. It is her responsibility to
create the atmosphere and environment of our retailer. She is also responsible
for creating visual displays, product promotion, and store merchandising. Monica
is able to execute our brand image through visual merchandising. .
● MaryLou Mercado: Director of Marketing, Public Relations, and Advertising
○ Responsibilities
■ Develop and facilitate all marketing strategies tailored to brand
image and products
■ Develop and plan marketing budget
■ Create promotional materials
34

36. ■ Manage public relations, consultants and vendors
■ Manage social media platforms
● Create 12 month calendar
■ Create and execute advertising campaigns
■ Planning and executing PR activities and events
■ Tracking competition
MaryLou has a niche for relating the brand and product to the consumer. It is her
responsibility to analyze trends, research on our brand’s consumer behavior, and
develop marketing campaigns to expose our brand and products.
35

37. MARKETING & SALES STRATEGY
36

38. OUR MARKET
Our market is technology­driven lacquer trends that are taking the nail industry
by storm. The growth of the nail industry isn’t just for grooming services anymore, but
for self­expression. There is a 8.54 billion dollar growth in the nail services in just the
past year. The products themselves are the driving force of the industry, making nail
companies constantly having to create innovative products. Nail art will continue to grow
because it has been aspiring the social world at large, using bold colors and designs.
There are different forms of nail polish trends like strips, color change effects, textured,
magnetic and crackle.
The DAY/NIGHT customer are women between the ages of 18­25 years old.
She is technology savy, enjoys a digital environment, and is an innovative trendsetter.
She loves to travel and explore to make her own new discoveries regarding fashion.
Our customer understands the importance of being first in making a bold statement.
She is intelligent when it comes to her shopping skills. She wants to be knowledgeable
about her products before she makes a purchase. She performs her research ahead of
time by search online for the information she needs before she makes a commitment.
According to Women’s Wear Daily, Millennials remain the key age demographic for
online commerce, spending more money online in a given year than any other age
group (WWD, AUG. 11, 2014).
37

39. CHANNELS OF DISTRIBUTION
We are distributing our product through our specialty boutique, which will be
located at Fashion Island Mall in Newport Beach, CA. Our product will be only available
in our store, which customers will have the opportunity to experiment with the nail
polishes. We wanted to locate our specialty boutique in Fashion Island Mall because it
is an upscale open air lifestyle shopping experience. It is important for us to be
surrounded by innovative beauty and fashion, to draw in the traffic that we would like to
visit our boutique. We want our customers to come in and be educated by our trained
employees about our nail polishes. Having customers test our products and answer any
questions about our products in our location, is very important to us. We want everyone
wearing our product to live in the technology­driven world we do. We will also launch an
online website to help customers research our product with the goal of them making a
purchase.
THE FOUR P’S SALES STRATEGY
1. Pricing Strategy
Our brand determines our own niche as a boutique brand . We have technology­driven
polishes perform at a high­quality level. Our packaging is made of high quality
materials representing our brand which is sophisticated and edgy. We want to
give the consumer a great value product.
The price range for our nail polishes is between $8 and $10. It is important for us to
make a high­quality product at an affordable price. We want our customer to express
themselves at more affordable rate. Our goal is for our customer to become loyal to
38

40. the brand, so it is important for the range to stay affordable. The price range depends
on the color and function of each product.
Product Function Price
Nail Polish Thermal $8
Nail Polish Photo $9
Nail Polish Thermal/Photo Matte $10
​ 2. Promotion Strategy
​To promote our specialty boutique we will have a party to attract traffic. At this event we
will have our highly trained staff ready to answer questions about our products. We will
be handing out brochures with our brands and product information. Our goal is for each
potential customer to leave with knowledge of our brand and our products. All of our
nail polishes will be out on displays, so that customers can play around with the
different colors. Our staff will be there to explain to them the function of each of the
nail polishes we offer. We always plan to promote our website in the event for those
customers that don’t have time to stay and can research about us on our website.
The promotion of the boutique is very important because it will be the first time
that we will be reaching our customers. If the customer decides to make a purchase
on the day of the promotion, a 25% discount will be given with the purchase of two
products. If no purchase is made on the day of the promotion, a 15% discount will be
given if they decide to make the purchase within a 3 day period.
39

41. Our website is extremely important to us because it will bring in revenue for our
customer who prefers to do her research on about her shopping online. We will have live
demos online, so they have an opportunity to experience as well. Once on our
website we will invite them to follow us on our other social media outlets. We want their
friends and family to discover our brand and potentially become a future customer. Once they
have tried out the product and loved the quality, the word about our brand will travel quick.
3. Products Strategy
DAY/NIGHT products are technology­driven color changing nail polishes. We only
offer three nail polishes that contain different functions and results. The result of the
products have great quality with no chip or breakage, and long lasting color. We strive
in researching for new advance technologies that can allow us to make our products
more effective.
Our unique selling point is our color changing nail polishes with surrounding
temperature and light source. The color pigments of our nail polishes are different
from other types of nail polishes. We want to make sure that the result of the product
has an excellent performance rate. We want our customer to be able to change the
color of their nail polish without having any trouble removing it.
Our customers will be drawn to our product due to the quality and results. Our
sophisticated and edgy packaging will draw attention customers attention. This will
result in the discover of our color changing nail polish that will transform their nails
forever.
40

42.
4. Place Setting
The nail boutique will be located in Fashion Island shopping center, in Newport Beach,
CA. It is located in the heart of Newport Beach, Fashion Island shopping is Southern
California’s premier coastal shopping and dining experience. Located with panoramic
ocean views and towering palm trees, Fashion Island shopping features prestigious
department stores and specialty boutiques (visitnewportbeach.com, Jan. 1, 2015)
Newport Beach is a great location because it has ten distinct neighborhoods, each
having their own personality and story to share.
41

43.
FINANCIAL MANAGEMENT
42

44.
FINANCIAL MANAGEMENT
Our financial figures are educated estimates based upon our primary and
secondary research. Each member of Day/Night will be making a personal investment
of $10,000. We will then be taking out a $100,000 loan from the band with a 10%
interest rate to be repaid over the course of 10 years. From our personal funds and
bank loans we will have $100,000 for our business start­up.
43

45.
DAY/NIGHT: Estimate of Start­up Costs
Initial Expenses
Inclusive Business fees for 750 sq. ft $75,000
Legal/Accounting 2,000
Office Supplies 200
Advertising and Promotion 1,000
Account Payable 3,000
Total Initial Expenses 81,000
Monthly Money Reserves
Salaries and wages 3,200
Rent 1,500
Advertising/Promotion 500
Utilities, telephone and internet 200
Insurance 200
Maintenance and repairs 150
Accounting/ legal fees 200
Office supplies 100
Freight/delivery 150
Total Monthly Expenses $6,200
Start up Inventory $10,000
Total Start­up costs $109,600
Total Start­up requirements $109,600
44

46.
DAY/NIGHT
Projected Income Statement for Year 1; March 1, 2015
GROSS SALES
Sales $124,000
Less: Cash discounts 1,000
Total net sales 123,000
Cost of Goods Sold
Beginning Inventory $10,000
Plus: Purchases 3,600
Less: Ending Inventory 1,000
Total Cost of Goods Sold $12,600
Gross Profit Margin $110,400
Total Operating Expenses
Salaries/wages $38,400
Rent 18,000
Advertising/Promotion 7,000
Utilities, telephone, internet 2,400
Insurance 2,400
Maintenance/repairs 1,800
Accounting/legal fees 4,400
Office Supplies 1,200
Freight/delivery 1,900
45

47. Loan Payment with interest 15,858.12
Contingencies 1,392
Total operating expenses $94,750.12
Net Profit $15,649.88
46

48.
47

49. DAY/NIGHT
Break­Even Analysis
Classified Costs
Projected Sales $124,000
Projected Fixed Expenses $33,858.12
Projected Variable expenses $60,892
Variable Cost Percent
Variable cost percentage 49.11%
Contribution margin
Contribution margin percentage 50.89%
Break­even sales $60,896.40
Break­even range $55,000 to $70,000
Calculation
Break­even sales $60,896.40
Variable costs $29,906.02
Contribution dollars $30,990.17
Fixed costs $30,990.17
Net profit/loss $0
48