Entreprenuers: Anna Nguyen, Ameena Khan, David Nickel, Jerry Tsai, Sabika Abbas,Tony Abadie, Wajeeha Rasul, Zach Johnson
Mission Statement We are committed to creating the world's leading nail polish that provides customers a stylish and longer lasting solution that will revolutionize the cosmetic industry. --Iris Colors
Problem • Inconvenience of repainting nails • Tip wear and shrinkage • Time and cost consumption at nail salons • 40%of nail polish users experienced cracking within 1 week of painting their nails.* * Primary Research Survey Results
Our solution at your finger tips • Iris colors combines high-quality, stylish nail polish with a self-healing solution. • Our self-healing solution is derived from natural substances, it is completely safe. • Hassle free, easy to apply • Cost and time effective • Fast Drying
Style meets technology • Fast drying • Long lasting colors • Easy to apply • Natural, fake, acrylic, & gel
Value Adding Strategy • We add value to our product by taking what would otherwise be a normal nail polish, and adding several key, natural ingredients. • The result is a self healing nail polish that looks better and lasts longer than any other nail polish on the market. • Self healing techonology available for natural, fake, acrylic, & gel
Our Distinctive Resources Aside from the normal "nail polish" mixtures we will use: • Chitosan • Oxetane
Revenue Generation • Sell to premium cosmetic retailers such as MAC, Sephora, or Ulta. • Distribute products to major cosmetic distributors throughout the country. • Charge premium for our patented self healing technology.
Iris Quality • Self healing technology • Longer lasting without compromise • Patented idea, eliminating the competition • Creates an innovative brand reputation
How much do women spend on nail polish? • Survey says…
Market Overview • The Nail Care Market in the U.S probes deeply into the fashion industry. • Nail centric fashion culture that has transformed women’s nails into fashion accessories • Innovative fashion-forward nail care products that empower women to imitate nail salon effects in their own home in a cost-effective way.
Market Trends and Growth • Over the whole of 2010, sales rose 15% to $530 million. • Nail polish market sales grew 26% in 2012. http://www.marketresearch.com/Packaged-Facts-v768/Nail-Care-Retail-Products-Professional-6488979/
Market Entry • Entry barrier is high due to large companies such as OPI, Essie, China Glaze, Avon. • The largest competitors will compete with one another, and our company will be able to gain market share and a loyal consumer while staying under the radar. • Our products will last longer than our competitors with innovative self healing technology.
Start - Operations Order processing, forecasting, and inventory management • Forecasting, order processing, and inventory will be managed by Oracle • Orders are processed online and through phone Procurement • Materials will be purchased from BASF chemical company • Chitosan and Oxtetane • Bottling and packaging will be outsourced Inbound Logistics • Raw materials are shipped from BASF Chemicals via truck • Real time inventory updates Manufacturing • Nail Polish is manufactured and stored on site to ensure quality • Stored in large containers until shipping to bottlers
Operations Continued Outbound Logistics • On time delivery to bottlers with order tracking via truck • Bottlers will distribute to affiliated retailers After Service Sales • Inventory Management for retailers • Display Setup for retailers • Customer Service available via phone and email Personnel, facilities, and equipment required • Oracle System, hardware for computers • Plant that will handle manufacturing, temporary storage, and shipping to bottlers • Mixing machinery, Storage Bottles • Manufacturing employees, truck drivers, inventory managers, customer service personnel
Marketing • Target Market – High-End cosmetic retailers • Market Positioning – Mid-high quality nail polish segment • Marketing Strategy and budget - Offer promotions and service to retailers • Advertising , promotion, distribution - First shipment and product display is free, Quantity discounts will be offered for high quantity buyers • Pricing Strategy and sales forecasts – Pricing will be around $10 to the retailers and 45,000 units are expected to break even
Advertisements will be created in-house by our team of expert artists.
Risk Assessment Technical Risk • Low Risk Market Risk – High risk due to the number of competitors, possible imitation, and/or retaliation Cost Structure – Medium risk relative to competitors Financial Risk – Medium risk is due to high start-up costs and assumptions of sales Operations Risk – Low Risk
Sales Projection Break-even $675,136
Funding & Investment Data • Initial Investment Needed: $1,142,117 • ROI: 12.17 times initial investment • Profit Margin: 36.52% (at year 5) • Payback Period: 2.25 years • 1st Profit: 1.5 years • Break-even: $675,136 at 67,154 units
Q 1 Q 2 Q 3 Q 4 Investment $ Research Development Product Production Road Map Logistics Investment $ Retail Partnerships Positive Cash Flow Breakeven Nail Polish Production Advertising Payback Investors Earn Expected Revenue
Survey Results What are your most favorite nail polish brands?
Survey Results How often do you change polish because they are chipped/ looks bad?
Survey Results How much do you spend on nail polish each month?
Survey Results • Would you like to pay a little more for longer lasting nail polish?