Skintology Skin Care Products Business Plan Essay Example

layer of the skin. It contains Vitamin A, which is usually used as acne treatment and anti-wrinkle treatment.

Vitamin A is absorbed through the skin and increases the rate of skin turnover and gives an increase in collagen giving the skin a more youthful appearance. It also contains glycolic acid, which is a natural fruit acid (AHA) most often used by dermatologists in professional peel treatments to reduce the appearance of wrinkles, acne scarring, and hyperpigmentation. Once applied, it reacts with the upper layer of the epidermis, weakening the binding properties of the lipids that hold the dead skin cells together.This allows the outer skin to "dissolve", revealing the underlying skin. Moreover, it has Vitamin C, an antioxidant which combats the effects of free radicals, which are the unstable molecules in the environment that can cause aging of the skin. Use of vitamin C also boosts the production of collagen in the skin.

Vitamin E is added to moisturize the skin MICRO DIAMOND SCRUB does not aspire to compete with other facial cleansers or facial scrubs in the market. It will not compete for a piece of the market share of cosmetics industry giants like Ponds, Olay or Eskinol.MICRO DIAMOND SCRUB is a cheaper alternative to professional treatments that are very popular right now like chemical peels, diamond microdermabrasions and crystal dermabrasions performed by dermatologists. After 10 consecutive days of use, MICRO DIAMOND SCRUB delivers the results of the aforementioned treatments.

Users of MICRO DIAMOND SCRUB can enjoy the results of professional peels without the hassle of finding a dermatologist, leaving their houses and booking appointments.MICRO DIAMOND SCRUB is also a much cheaper alternative to professional dermatological treatments

which cost about P1,500 to P3,000 per session.

The concept of this product is to create an entirely new market and to not compete with other facial cleansers or facial scrubs in the market today. I chose the name MICRO DIAMOND SCRUB as the product name to connote that it is an alternative to the very popular diamond microdermabrasion. MICRO DIAMOND SCRUB and diamond microdermabrasion are different in form.However, they have the very same function, which is to eliminate old, dry, dull skin cells and to reveal newer, younger-looking skin.

MICRO DIAMOND SCRUB is also a cheaper substitute to imported at-home microdermabrasion systems, like Philosophy’s Microdelivery Wash and Kiehl’s Epidermal Re-texturizing Microdermabrasion, with prices ranging from P1,500 to P5,000. What differentiates MICRO DIAMOND SCRUB from these at-home microdermabrasion systems in the market today is its gentle formula that is safe enough to use everyday in lieu of facial cleansers and other facial scrubs. Moreover, none of these at-home microdermabrasion systems are self-heating.

How do I use the product?

Gently massage MICRODIAMOND SCRUB over wet skin for about 1 to 2 minutes, avoiding the eyes. MICRODIAMOND SCRUB is safe enough to be used gently.

What are the ingredients of the product?

Deionized Water, Polycedene, Cetyl Stearyl Alcohol, Tocopherol Acetate (Vitamin E), Parfum, Glycerine, Phenoxyethanol, Methylparaben, Buthylparaben, Ethylparaben, Retinoic Acid (Vitamin A), Citric Acid (Vitamin C), glycolic acid. The product has no petrochemicals or colourants. . When will the product expire? Three (3) years after manufacturing.

The Marketing Strategy

What is the marketing strategy of SKINTOLOGY? The marketing strategy of SKINTOLOGY is what I would like to call value innovation, which is to eliminate all of the factors that other cosmetic companies compete

over that do not create value to the costumers like celebrity endorsements, glamorous advertisements and ornamental packaging and to replace said factors with attributes that buyers value like reasonable price and outstanding product performance.In trying to outperform their rivals, most cosmetic companies spend enormous amounts of money on glamorous advertisements and ornamental packaging making their cost structures very high. Because good quality raw materials are costly, the said companies will have to sacrifice the quality of their products by substituting the said good quality raw materials with poorer quality raw materials in order to reach their targets costs and target profit margins.

Because SKINTOLOGY will not compete with other cosmetic brands, SKINTOLOGY is highly differentiated and will attract an entirely new market.It will not try to win other cosmetic companies’ market share. By eliminating all the factors that do not create value to the consumer, SKINTOLOGY was able to create a product that is not a competitor to existing facial cleansers or facial scrubs. As mentioned earlier, MICRO DIAMOND SCRUB is an alternative to professional microdermabrasion treatments.

Hence, MICRO DIAMOND SCRUB will create a new, undefined and untapped market space. It would be very unlikely for other cosmetic companies to adopt SKINTOLOGY’s marketing strategy. This is because it is very costly for a company to replace a strategy that it has been using for years.Moreover, building a new brand image is more difficult for an existing company than a new one. Furthermore, when a company offers a leap in value, it rapidly earns brand buzz and a loyal following in the marketplace. Even large advertising budgets by an aggressive imitator rarely have the strength to overtake the

brand buzz earned by the value innovator.

For example, the strategy of The Body Shop which shunned glamorous models and expensive packaging left major cosmetic houses the world over actionless for years because imitation would signal an invalidation of its current business models.

What is the strategic price? My suggested retail price for MICRO DIAMOND SCRUB is P120 for a 50ml tube. It is around P60 more expensive than the average facial scrub or facial wash offered by Eskinol and Ponds in the markets today. It is also P20 cheaper than the age defying facial cleansers offered by Olay and Ponds.

It is around P1380 or more cheaper than a professional microdermabrasion treatment and imported at-home microdermabrasion treatments. In line with my general marketing strategy of driving costs down while creating value for the consumers, I want the product to have a reasonable retail price.However, I do not want to have a very low retail price because I do not want the users to perceive the product as ineffective. For cosmetics consumers, price equals quality. I would like my brand to be perceived as credible, effective, reliable, functional and of good quality.

Moreover, SKINTOLOGY does not want to rely solely on price to create demand. It shall offer something novel and effective to create irresistible market buzz.

Packaging In developing MICRO DIAMOND SCRUB, I want the packaging to connote credibility, reliability and functionality.

Hence, MICRO DIAMOND SCRUB is packaged in a tube for the customer’s convenience in its use and storage. The color of the tube is white to suggest credibility as most prescription cosmetics and reliable skin care lines like Kiehl’s and Philosophy have simple, white containers. The packaging design

is both simple and elegant to signify that the brand is confident and does not have to try too hard to persuade consumers to choose the product. The front side of the package provides for a simple product description.

The description is direct, without fancy exaggerations.When I was still developing the product concept, I visited every cosmetics store and realized that most products promised results. However, none of them stated which of their ingredients are most beneficial to your skin and why. I often saw the lines, “lightens skin” or “with gluthathione.

” However, none of these products explained which ingredient lightens the skin or how glutathione is good for your skin. Thus, the backside label of MICRO DIAMOND SCRUB’s tube provides for an informative approach to describe the product. It states the active ingredients of the product and what they do for the users.The backside of the package also states the directions for use and the ingredients. When I was determining product costs, I realized that packaging is relatively expensive.

After speaking to other experts in the cosmetic industry, I learned that most products in the market sacrifice good quality content for very attractive packaging. Keeping my general marketing strategy in mind, I chose not to compete with other companies over product packaging design and instead, have designed a packaging that show the credibility, reliability and good quality of the product.

Advertising In order to cut down costs and create additional value for consumers, I think that the best modes for advertising MICRO DIAMOND PRODUCT is through alternatives to advertising like asking writers to write about the product in magazines and newspapers, requesting radio disc jockeys to promote

the product in the radio airwaves and call for lifestyle television shows’ segment producers to devote a television show segment promoting the product. These alternatives to conventional advertising are usually free. Moreover, consumers rely on the perceived expertise of writers, disc jockeys and lifestyle television show hosts in choosing what to buy.

These alternatives to conventional advertising seem more reliable and persuasive than paid advertisements. After awarding the exclusive distributorship agreement to the chosen company and after being informed of where the product will be available, I shall commit to an intensive project of using all of my contacts in obtaining these no-cost alternatives to advertising as means of promoting MICRO DIAMOND SCRUB. I also expect the exclusive distributor of MICRO DIAMOND SCRUB to use its contacts to procure free modes of advertisement. C.

Exclusive Distributorship Agreement OfferI would like to award an exclusive distributorship agreement to only one company which can make MICRO DIAMOND SCRUB as accessible as possible to masses of buyers all over the Philippines and with which I can build a very strong, loyal and honest business relationship with. I do not want to have several distributors because I do not want these distributors to compete with one another and eventually drive the retail price down.