An industry overview in the U.S. and the location you will potentially start this business
The beauty sector has gained interest from many investors due to the demand for their products. The industry has thrived due to the many users of the beauty products that range from the natural beauty oils to the skin lightening creams. Venturing into this area, the business will focus on the beauty products such as lotion oils and creams that will help in toning the skin. The oils will be suitable for applications on the skin throughout the year to prevent the skin from being affected by the hot climate during the summer and also the chilling weather of the winter. This will make the products to be competitive in the market, and products will be valuable throughout the year and in all the seasons.
The target market will be the individuals living in the areas that experience extreme weather conditions during the winter and also the summer. The extreme weather tends to have an effect on their skin and the products will help in maintaining their skin complexion and tone. This will be helpful as they will be using the same products throughout the year and in all the seasons without changing for the others that are designed to be used in certain seasons. The ability of the product to be used in all the seasons will make it be used by many of the people who care about the tone of their skin. The products will be suitable for use by individuals of the age 5 years and above as the young kids mostly have a tender skin and they are not exposed to the harsh environments during the extreme weather conditions.
To be competitive, the product will offer the users a fresh look and also a scent that will be attractive. To avoid people who dislike scents from using it, the product will have non-scented variations for individuals who will prefer them. The product will further help in restoring the skin tissues that have been worn out such as removing scars and black heads on the skin of the users (N Sabirova, 2014). The product will be useful in maintaining the glow and the moisture in the skin. This will avoid it cracking under the extreme heat of the summer or the cold during the winter. As such, the users will be assured of their skin maintaining the same complexion and look in all the seasons thus they won’t have the need to change to other products.
Having grown up with people who were conscious about their skin, I learned the importance and the need for such products in the market. The change from one product to the other as the seasons change led to my desire to produce a product that will suit their needs throughout the year. The products need to be usable on all kinds of skin so i will produce products that favour people with different kinds of skins and complexions. The products will be beneficial to the users as it will help in maintaining and restoring their skin tone and also giving their skin a glow.
Marketing of the products will be done over the internet and they will also be marketed using other media such as social media and also direct marketing will be employed on the market for the products. Direct marketing will help in getting direct response from the customers on the product. It will also be used to give the buyers direct information about the products and also educate them on its benefits and its uses (FORBORD, 2004). Paid media advertising will help in sensitizing the masses about the new products and its importance. This will help in creating awareness and it will increase the demand for the product by the buyers and also by retailers who will feel the need to retail the product.
Information regarding the competitive environment
There are many beauty companies that have invested in products that help in maintaining the skin complexion, skin moisture and also tone. The product will comprise all these elements and it will be usable in all seasons. This will make the product to be competitive as the other ventures produce products that are associated with each season but the product will be usable throughout the year and also offer the same results on the skin without changing the application or the product (Casadesus-Masanell & Zhu, 2012). There are many companies that deal with beauty products and they focus on the skin toning and also the maintenance of the skin moisture which will make the market a competitive one to enter. The standards set in the market for a new entrant are high and this makes the new products face stiff competition thus the need to make them unique to enter the market and be competitive.
An analysis of the market that identifies risks, opportunities, trends in growth
The main risk of the market is the high competition from rivals and also the threat of new entrants. There are many producers of the same purpose in the market and the risk of being substituted is high as there are other cheaper products that promise the same results to the users as the products that are to be introduced. The opportunities available for the product will be the market as it is wide and the forces of demand outweigh the supply of the quality products that are needed (Sung & Sung, 2016). The trends in growth are determined by the maintenance of the customers to the product. There are opportunities for growth in the industry and also there are new methods that will measure the trends and offer advice on the course of action that will help in improving the market rating and acceptance of the products in the market and also bringing more customers.
Franchise opportunities
There are many companies that will be willing to partner in the production of the product and also use their name in the market. These companies have been in the production of beauty products for a long time and they have established a solid market for their products. Introducing the product and associating it with them will attract a huge number of customers for the products and help in establishing it as a powerful product in the market (Djordjevic, 2015) . The franchise will help in introducing it to the market and also marketing it using their methods that they have tried and used and felt they were most successful in introducing new products into the market, such as the beauty cream.
References
Casadesus-Masanell, R., & Zhu, F. (2012). Business model innovation and competitive imitation: The case of sponsor-based business models. Strategic Management Journal, 34(4), 464–482. https://doi.org/10.1002/smj.2022
Djordjevic, B. (2015). The Significance of Franchise. Archives of Business Research, 3(2). https://doi.org/10.14738/abr.32.612
FORBORD, M. (2004). CO-CREATING SUCCESSFUL NEW INDUSTRIAL NETWORKS AND PRODUCTS. Advances in Business Marketing and Purchasing, 13, 211–335. https://doi.org/10.1016/s1069-0964(04)13002-0
N Sabirova, D. (2014). Application of a Market Competitive Profile in the Process of Making Strategic Decisions. Asian Social Science, 10(20). https://doi.org/10.5539/ass.v10n20p73
Sung, H., & Sung, J. (2016). An Analysis of Market Maven’s Shopping Behavior and Multi-Channel Usage in the Fashion Retailing Market. Fashion Business, 20(2), 134–148. https://doi.org/10.12940/jfb.2016.20.2.134