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Mistura Beauty Solutions
Southeast Solutions
“Beauty Simplified” – Mistura
vision
How can Mistura continue to grow while confronting its infrastructure and capital
needs?
Introduction Analysis Alternatives Recommendation Implementation
Key Issue
I. IntroductionII. Analysis
a) Porter’s Five Forcesb) S.W.O.T.c) Value Chaind) Current Marketing Mixe) Financials f) Product Life Cycleg) Key Success Factors
III. AlternativesIV. RecommendationV. ImplementationVI. Conclusion
Table of Contents
Introduction Analysis Alternatives Recommendation Implementation
Threat of New Entrants
Supplier Power Competitive Rivalry
Buyer Power
Substitutes
-Moderate-Saturated market-Few barriers to entry-Small firms may start easily
-Moderate-Dependent on supplier prices-Differing options for suppliers
-Strong-Price-conscious-Knowledge of products is high-Can easily shop around from other providers
-Weak-Make-up has no other comparable alternative
Introduction Analysis Alternatives Recommendation Implementation
Porter’s Five Forces
Overall strength of forces: ModerateIf making sound business decisions, a firm can earn profits in industry
-Moderate-Several other producers-No direct competitor for natural, simple choice
- Multiple brandchoices
Strengths
• Offers small number of natural, easy to apply products*
*Distinctive competence• Availability in retail stores• Environmentally sound packaging• Devoted CEO• Free publicity
Weaknesses
• Lack of capital and infrastructure
• Lack of personnel• Expensive supply chain• Oversight required• Late paying bills
Opportunities
• Developing relationship with Jen Coutu and London Drugs
• Growing interest in Mistura• Baby boomers
Threats
• Change in consumer preferences
• Numerous competitors: Bare Minerals, MAC, Sheer Cover, etc.
• Product formula security• Ease of entry into market
S.W.O.T.
Introduction Analysis Alternatives Recommendation Implementation
General Administration
Research, technology, and systems development
Procurement
Inbound Logistic
sOperations Outbound
logisticsMarketing and sales Services
Pro
fits
-In-house distribution saves shipping but distributor needs are high-Value lost due to necessity of high oversight of outbound shipping
Value Chain
Introduction Analysis Alternatives Recommendation Implementation
Promotion • Dragon’s Den
• Ottawa Small Business Award• Chantal Sutherland as spokeswoman• Presenting sponsor at Golden Globes• Print Media
• Shape• The Globe
and Mail• Elle
• CBC Radio
Placement
• Retail stores
• Rexall• Lawtons
Drugs • Sears
•Pending other retail stores
• Jean Coutu• London
Drugs•Shop NBC
Price
• Competitive with other firms
• Affordable• High-
quality• Package
deals• Refills sold
at discount
Product
•Quality yet simple makeup choices
• 6-in-1 beauty solution
• Luminada• Plump and
Glow Lip Gloss
• Retractable make-up applicator brush
Introduction Analysis Alternatives Recommendation Implementation
Current Marketing Mix
Financials
Introduction Analysis Alternatives Recommendation Implementation
2010 2011 2012 2013 2014
-2000000
-1000000
0
1000000
2000000
3000000
4000000
5000000
Net Profit/LossSalesCost of Goods SoldOperating ExpensesDeficit/Surplus
Introduction
Accelerated Growth Maturity Decline
Introduction Analysis Alternatives Recommendation Implementation
Product Life Cycle
x
Sale
s a
nd
Pro
fits
1.Provide simple beauty2.Grow production3.Financial Soundness4.Continue control of company
.
Key Success Factors
Introduction Analysis Alternatives Recommendation Implementation
Alternative #3
Become a publically traded
company
Alternative #2
Seek out a venture capitalist
investment
Alternative #4
Sell Mistura
Alternative #1
Renovation of marketing
Alternatives
Introduction Analysis Alternatives Recommendation Implementation
Renovation of Marketing Strategy
Advantages Disadvantages
No ownership dilution Lack of capital unaddressed
Larger customer base Lack of product development
High bankruptcy risk
Does not address infrastructure needs
Alternative #1
Introduction Analysis Alternatives Recommendation Implementation
Seek out a Venture Capitalist Investment
Advantages Disadvantages
Quick funding source Risk of denial
Capital to meet infrastructure needs Diluting ownership
Capital for additional research and development
Inclusion of expertise
Alternative #2
Introduction Analysis Alternatives Recommendation Implementation
Become a Publically Traded Company
Advantages Disadvantages
Potential strong funding source Loss of control
More publicity Regulations
Uncertainty of valuation
Alternative #3
Introduction Analysis Alternatives Recommendation Implementation
Sell Mistura
Advantages Disadvantages
CEO profits Does not align with vision of the owner
Company goals still achieved Lose control of company
Prevents future profits
Alternative #4
Introduction Analysis Alternatives Recommendation Implementation
Go PublicVenture Capital
Leave the Market
Revamp Short-Term Strategy
Key Success Factors
Weight
Ranking Weight
Ranking
Weight
Ranking Weight
Ranking
Weight
Provide Simple Beauty
.4 5* 2 5* 2 1* .4 2* .8
Grow Production
.25 4 1 3 .75 1 .25 3* .75
Financial Soundness
.25 3 .75 4 1 5 1.5 3 .75
Continued Control of Company
.1 2 .2 4 .4 1 .1 5 .5
Total
Ranking Scale1. The alternative does not effectively address this criterion.2. The alternative may contribute to readdressing this criterion3. The alternative provides an average solution to this criterion4. The alternative provides an above average solution to this criterion5. The alternative effectively addresses this criterion
***Weighted Competetive Strength Analysis
Weighted Competitive Strengths
Introduction Analysis Alternatives Recommendation Implementation
Go PublicVenture Capital
Leave the Market
Revamp Short-Term Strategy
Key Success Factors
Weight
Ranking Weight
Ranking
Weight
Ranking Weight
Ranking
Weight
Provide Simple Beauty
.4 5* 2 5* 2 1* .4 2* .8
Grow Production
.25 4 1 3 .75 1 .25 3* .75
Financial Soundness
.25 3 .75 4 1 5 1.5 3 .75
Continued Control of Company
.1 2 .2 4 .4 1 .1 5 .5
Total 3.95 4.15 3.0 2.8
Ranking Scale1. The alternative does not effectively address this criterion.2. The alternative may contribute to readdressing this criterion3. The alternative provides an average solution to this criterion4. The alternative provides an above average solution to this criterion5. The alternative effectively addresses this criterion
***Weighted Competetive Strength Analysis
Weighted Competitive Strengths
Introduction Analysis Alternatives Recommendation Implementation
Decision:
Seek Investment from Venture Capitalist
Introduction Analysis Alternatives Recommendation Implementation
Recommendation
Financials
Introduction Analysis Alternatives Recommendation Implementation
Venture Capital Funding Allocations
Increased Revenue 3.000.000
VP of Operations 100.000
Marketing Director 100.000
R&D 100.000
Marketing 750.000
Corporate Social Responsibility 50.000
Infrastructure Expansion 1.300.000
Repay Debt 500.000
Increased Expenses 2.900.000
Margin for Error 100.000
VP of Operations3%
R&D3%
Marketing25%
Corporate Social Re-
sponsibility2%Infrastructure Expansion
43%
Repay Debt17%
Room for Error7%
Capital Allocations
Short-TermReach out to venture capitalist
Hire VP of operations to transfer oversight of daily operations
Begin research and development on eyeliner, mascara, etc.
Hire marketing director
Introduction Analysis Alternatives Recommendation Implementation
Implementation
Short-Term
Reach out to venture capitalist
Hire VP of operations to transfer oversight of daily operations
Begin research and development on eyeliner, mascara, etc.
Hire marketing director
Introduction Analysis Alternatives Recommendation Implementation
Implementation
6 months3 months 9 months
Milestone Review
12 months
Long-Term
What Who
Buy advertising on WE, Oxygen, HGTV Marketing Director
Work with Susan G. Komen Foundation for Breast Cancer to set up sponsorship walks
Ms. Marcus & Marketing Director
Begin research and development on nail polish Ms. Marcus
Introduction Analysis Alternatives Recommendation Implementation
Implementation
Long-Term
Buy advertising on TV stations, other new promotion
Set up breast cancer awareness sponsorship walks
Begin research and development on nail polish
Introduction Analysis Alternatives Recommendation Implementation
Implementation
Milestone Review
18 months15 months 21 months24 months
Promotion • Dragon’s Den• Ottawa Small Business Award• Chantal Sutherland as spokeswoman• Presenting sponsor at Golden Globes• Print Media
• Shape• The Globe and
Mail• Elle
• CBC Radio
•Print advertising• TV Networks•Susan G. Komen sponsorship
Placement
• Retail stores
• Rexall• Lawtons
Drugs • Sears• Pending
other retail stores
• Jean Coutu
• London Drugs
• Enter into new locations
• Online store
Price
• Competitive with other firms
• Affordable• High-
quality• Package
deals• Refills sold
at discount
Product
•Quality yet simple makeup choices
• 6-in-1 beauty solution
• Luminada• Plump and
Glow Lip Gloss
• Retractable make-up applicator brush
•New Products•Eye cream•Mascara•Eye shadow•Nail polish
(natural)
Introduction Analysis Alternatives Recommendation Implementation
Current Marketing Mix
Introduction Analysis Alternatives Recommendation Implementation
Financials
Introduction Analysis Alternatives Recommendation Implementation
Financials
Risk Probability Solution
Venture capitalists not interested in investing
Low
Consider either going public with company or filing for Chapter 11 Bankruptcy
Sales of current products drop Moderate
Focus on sales of current products before considering expansion
Proposed new product lines unfeasible
Low
Look into other product lines such as sunscreens or wrinkle serum
New product lines unpopular Moderate
Spend more on advertising. If no improvement, reassess production
Contingency
Introduction Analysis Alternatives Recommendation Implementation
Mistura Beauty Solutions
Southeast Solutions
“Beauty Simplified” – Mistura
vision
