Business plan for VIVID anti-wrinkle retinol cream

Business Plan Outline: (For a make believe product I evented called, VIVID)

The Company is into manufacturing and marketing of the wonder cream VIVID which has proven abilities to iron out facial wrinkles caused due to aging. The cream contains the active ingredient Retinol which is richly textured and quickly absorbed. This useful night cream works all the while a person is asleep so that while he/she gets up, he/she will feel firmer having a smoother healthier looking skin. Instead of just exfoliating the surface layer of the skin, VIVID's anti-wrinkle treatment releases pure and active Vitamin A below the surface of the skin, thereby reducing the signs of aging. Due to this, skin renews itself and the fine lines and wrinkles are noticeably reduced. VIVID is the only non-prescription Face cream available having proven properties to diminish fine lines and wrinkles. When applied regularly to the skin, it will build a smoother and rosier radiance. (Retinol Wrinkle Treatment)

The cream is designed to be applied to the hands as also to the face and is capable of being used by both the sexes to erase lines, reduce and remove wrinkles and to wipe out spots which appear due to aging. VIVID contains 600,000 IU Retinyl Palmitate per 2 ounce jar which is the strongest cream available. Coming to the functioning part, VIVID does not just exfoliate the surface layer of the skin similar to other OTC wrinkle treatment. It has Retinyl which is a Vitamin A derivate which occurs naturally within the body. During the initial months of use, the skin turns smoother as also softer. Following use of three months, brown spots vanish, fine lines around the mouth and eyes starts diminishing, and would disappear. VIVID's carefully formulated Retinol cream does not have the after effects of the prescription Retin-A. VIVID has been able to achieve this by only using pure and active Retinol -Vitamin A The cream also has 500 mg of soothing Vitamin E This cream is considered as 'hypoallergenic, non-comedogenic and also non-photo toxic'. (Retinol Wrinkle Treatment)

Marketing:

The product will be marketed to the baby boomers. Remarkable changes are happening as baby-boomers approach 'old age'. Majority of the baby boomers have crossed the age of 50 and when one widens the definition to take into account the 'war baby' cohort, in that case a lot of them are retired and awaiting Social Security. This generation has not imitated the earlier generation, but has been among the trendsetters. The members belonging to this group have an increased involvement rate in sporting activities. As a result, apart from experiencing the difficulties linked with aging, they will also experience a lot of sports related problems. Besides, the concept of 'looking one's age' does not appeal to a majority of numbers belonging to this demographic group, both male as well as female and their dependence on cosmetic products has already been exhibited. (B-111R Drugs & Cosmetics for Aging Baby Boomers: A Surging Market)

Financial Management:-

VIVID possess a number of competitive strengths that give a powerful platform for implementing its techniques for growth which is marked by attractive combination of its product and an effective means of distribution. The business model of VIVID is designed to provide the product of the highest quality. The product has a strong recognition of its brand and brand perception in its important markets. The company maintains a wide variety of cosmetics products and puts a major importance on development of product and innovation. Its pricing strategy is designed to reinforce the position of VIVID as a brand which provides luxury which is within reasonable means. The supply chain that concentrates on the quality of product and enhanced distribution, gives VIVID with an effective system for delivering its products as the company expands. The company has a strong financial base and proven high cash flow generation. (Oriflame Annual Report 2004)

The company benefits from a powerful financial base, consisting of strong cash flows, healthy margins and a variable cost base. In the opinion of Euromonitor, international sales of cosmetics products was 186 billion euros in the year 2004 showing an average growth rate of 5.0% for the 1997-2004 periods with especially strong growth in Eastern Europe growing at 8.4% yearly. Skin care constitutes the biggest category. They account for 67% of the total sector sales with skin care growing speedily compared to the industry average during the last seven years. VIVID's traditional strength in these areas permits the company to acquire considerable advantages from their underlying growth momentum. Skin care products are expected to influence the sector growth in the coming years. (Oriflame Annual Report 2004)

Conclusion:-

As compared to creams which sell for $90 or higher per ounce, it is the guarantee of VIVID that wrinkle lines will vanish when used over a 30 day period. Majority of the women see immediate results. VIVID has been receiving a lot of enquiries every week enquiring the causes regarding selling the product for 10% of the price charged by Estee Lauder for a comparable Retinol cream. We provide our answer that we have tested our Retinol against theirs and our cream wins by a large margin. However, we lack the marketing savvy of Estee Lauder which is beneficial to our clients. Majority of the large cosmetic companies give greatly publicized anti-aging wrinkle cream. What they are unsuccessful in disclosing that these products speed up the aging process of the skin and increase the risk of skin cancer. Clinical studies in the U.S. And Europe demonstrate the effects of these skins to be short-term based and cause damage in the short-term and an important factor of aging of skin in the long-term. (Retinol Wrinkle Treatment, 2 OZ)

VIVID has received testimonials from several users who have vouched for its safety acknowledging that VIVID is the best and they have found it not only to be pleasant to use, but far more efficient compared to any other cream which they have used. One more testimonial says that it is the best out of all anti-aging creams the user has ever experienced. The user goes on to declare that that she has spent quite a lot on other creams from our competitive products, but VIVID is the best. Another user has to say that VIVID not just makes the face look smoother, but it makes the customer feel better with it on. The product is non-greasy and thus it does not appear shiny. She narrates that she does not wear powder or base on a regular basis, but it makes her feel better and will not have to worry of running the risk to worry about turning shiny at day time. (Retinol Wrinkle Treatment, 2 OZ) Thus the product would prove beneficial to its customers.