Clackamas High School
Anna DePaepe, Chloe Hennessy,
Oksana Leontyuk, Rebeca Leusca, Alia Malik
Mr. Kirby
Table of Contents
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Executive Summary:
Description…………………………………………………………………………………………………………. 3
Legal Form……………………………………………………………………………………………………….… 3
Mission Statement…………………………………………………………………………………………….. 4
Goals/Objectives……………………………………………………………………….……………………… 4
Management Team………………………………………………………………………………….………… 4
Product:
Description………………………………………………………………………………………………………… 5
Purpose…………………………………………………………………………………………………………….… 5
Characteristics…………………………………………………………………………………………………...6
Market Analysis:
Strategy…………………………………………………………………………………………………………….. 6
Market Size………….………………………………………………………………………………...………… 7
Target Market………………………………………………………………………………………….……….. 7
Competition…………………………………………………………………………………………………….… 8
Marketing:
Customer Outreach………………………………………………………………………………..….………9
Marketing Mix………………………………………………………………………………….………………….9
Product……………….…………………………………………………………………………………………….10
Price………………………………………………………………………………………………….……………..10
Promotions…………………………………………………………………………………….………………… 10
Works Cited…………………………………………………………………………………..……..………...11
Executive Summary
Description
The facial scrub started as a family recipe shared between the family and
friends of Rebeca Leusca. The product was an excellent alternative to facial care
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products sold in-stores and soon became popular with customers acquainted with
Rebeca’s friends and family. Rebeca knew the wonderful results of the scrub and
decided to put a price on it.
She was familiar with the inner workings of her father’s business and had taken
business classes in previous years and decided to put the knowledge together to
create SugarScrub. The business was structured within her home, but as the orders
became larger and more frequent, the business was set up online and the
management team was put together.
Legal Form
Our partnership is divided between five individuals. A partnership was the
logical choice when the team was put together. It ensured that any future decisions
we make are the right ones. Our approach into the business was easy and the start-up
costs were low as a result of them being divided among the five of us. Although, we
all have our own specialisation within the business, we practice adequate
communication to keep the business functioning efficiently.
Rebeca decided against a sole proprietorship because of the unlimited liability
that came with it. The debt payments would come from her own funds which were
limited at the time. Another disadvantage to a sole-proprietorship was the lack of
continuity. Rebeca wanted to provide people with a final solution to acne and
blemishes even after her death. The partnership secures the business even after the
death of any one of the partners. It guarantees the success of the business and an end
to acne once and for all.
Mission Statement
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Our promise to our customers is to provide affordable and effective care
through our current product, SugarScrub.
Goals and Objectives
Our goal is to provide an affordable facial scrub that works and helps women
and teenagers with acne issues. The scrub is chemical-free and completely organic. It
treats acne directly. With continued use, we guarantee positive results.
We have made progress, as a business, since the team was put together and are
currently considering a consignment offer from New Seasons. As the product is
distributed in the local stores, we hope to begin introducing other organic skin care
products such as moisturizers, astringents, face wipes, etc.
Management Team
Rebeca has responsibility over SugarScrub as CEO and is in charge of appointing
our management team. Oksana has taken the title of Chief Operating Officer: insuring
the business can deliver day after day and tracking measurements in order to take
action when business isn’t delivering. Alia is Chief Financial Officer and it is her
responsibility to create budgets and financing and to figure out which customers,
business lines and products are profitable. Our Chief Marketing Officer, Chloe, helps
the company position our product, differentiate it from our competitors' products,
enlist distributors, and make sure customers learn to crave our product. Anna was
appointed Chief Technology Officer to keep up with technology trends, integrate
those trends into the company's strategy, and make sure the company keeps current
when it's necessary. This team was put together to ensure the efficiency and success
of the business.
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Product
Description
SugarScrub is a natural alternative to a facial cleanser. It eliminates blemishes,
exfoliates and moisturizes the skin and brightens the complexion. Sometimes simpler
is better. SugarScrub contains only 3 ingredients: raw sugar, lemon and olive oil.
These simple ingredients put together creates a quick and effective scrub for the
body.
Purpose
Acne, America’s most common skin disease, is a result of one or a combination
of one of the following reasons such as genetics, a change in hormone levels, stress
increase and even as a side effect to medication. The fact that 85% of teenagers
(between the ages of 12 and 24) in the U.S. suffer from acne and that 40+% of them
will do nothing to treat it is unacceptable. SugarScrub is easy to use and effective
enough to bring those percentages to an all-time low. From the light cases to the
heavy, acne is treatable and our product provides acne sufferers with a final, almost
immediate solution. From the light cases to the heavy, acne is treatable.
Characteristics
SugarScrub is an organic, all-natural facial scrub. It leaves skin feeling
rejuvenated and fresh without the harsh effects of chemicals. Sugarscrub contains 3
naturally simple ingredients that clear blemishes and bacteria as well as exfoliate the
skin to prevent the clogging of pores. Lemons are naturally antibacterial and are rich
in vitamin C and citric acid, so they can help brighten and lighten the skin when used
over time. Vitamin C is a great antioxidant for neutralizing free radicals and boosting
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collagen production. It plays part in lightening age spots and/or dark spots such as
acne scars. Raw sugar is a gentle exfoliant that sloughs away dead skin cells that
could clog pores. Olive oil, the last ingredient, is loaded with nutrition and
antioxidants like vitamins A and E and neutralizes the possible drying effects of the
lemon. SugarScrub is a brightening, moisturizing exfoliant that is not limited to the
face, but can be applied to the whole body.
Market Analysis
Strategy
Since we are entering a monopolistic competition, there are few barriers to
entry. It costs money to startup a business, but we split the cost equally among the
five of us. We are in a competitive market, therefore beating our competitors is
essential for the success of our business. Our product offers better features with a
cheaper price compared our competitors. We will advertise via social media and in
magazines to get our product out there.
Market Size
The market structure we are entering is monopolistic competition, one in
which firms have many competitors, but each one sells a slightly different product.
There are a large number of firms selling differentiated products which gives the firm
partial control over price. Unlike oligopolies and monopolies, monopolistic
competition gives freedom to enter or leave the market, as there are no major
barriers to overcome. Stiff competition between firms gives us an advantage because
our product has the best features and price compared to our competitors. We have a
high potential for growth. Once our SugarScrub takes off, we will expand our business
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by creating more products to sell, which will appeal to a wider range of customers.
This will allow us to compete with bigger skincare brands and generate larger profits.
Target Market
Our Target market is women and teenagers who struggle with acne. Our
product is available for anyone to buy with its affordable price. SugarScrub not only
treats acne, but erases dark spots such as acne scars and age spots. People suffering
with acne scars will see noticeably clearer skin after just one week of using
SugarScrub.
Competition
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Our entering this particular market structure, presents us with a lot of
competition. We will be competing against dominant acne treatment industries such
as Proactiv and Neutrogena.
Both Proactiv and Neutrogena products are made from numerous
unpronounceable chemicals. The active ingredients are chemicals that dry and irritate
sensitive skin making it prone to more breakouts. Our product’s simple ingredients act
fast and target blemishes naturally without the harsh effects of benzoyl peroxide or
salicylic acid. The cost per ounce of Neutrogena purifying scrub is 25% more than
SugarScrub while the cost per ounce of Proactiv Exfoliating face scrub is 13x more.
We offer our customers a more affordable and simple way to clean their face.
Marketing
Customer Outreach
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Since our target audience is teenage girls and young women, we will be using a
lot of social media. Our first step is setting up our website and then using social
media to get people more aware of our product. We’ll use a variety of media such as
instagram, twitter, facebook, and pinterest. Another thing we want to do, is hire
someone with a lot of followers/friends on their page, so they could advertise our
product for us. An additional option to get our product known is posting flyers. We
will post them in coffee shops and shopping places that are popular with women. We
will be appealing to the customers with advertisements that compliment them after
the amazing results. Dermatologists are being paid to falsely advertise the chemicalbased products sold by large industries, but we promise to keep our advertisements
updated and honest.
Marketing Mix
We will advertise our product on social media websites such as Facebook,
Twitter and Instagram. We will also have our own website where people can purchase
our facial scrub. A popular way we want to market our product, is to hire a popular
woman/girl to advertise our product on a social media website. They could post a
picture of our product on instagram or facebook and give details of what it does and
where to buy it. Another way we want to advertise is to post that we will be a free
giveaway if people like, follow our page, repost our post, and tag us in it. Also, we
have to run our ad on the radio and a magazine. For the radio, the advertisement will
be about one minute and will give information about the product and where people
could buy it. For the magazine, we want to show a picture of our product, details of
how it helps and how it’s organic, where people can buy it and the deals we have.
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Product
Our product is a homemade sugar scrub that only has three natural ingredients.
No chemicals and no mystery ingredients. It is sold in a 6 ounce glass recyclable jar.
SugarScrub is easy to use. Apply to a dry or wet face, gently scrub, then rinse
thoroughly.
Price
The production cost is $1 per jar. The ingredients used are of the highest
quality: 1oo% natural turbinado cane sugar, organic extra virgin olive oil and freshly
grated lemon zest. All components will be bought in bulk from local suppliers to keep
shipping costs to a minimum. Our plan is to sell a 6 ounce jar at the cost of only
$8.99.
Promotions
To launch our business, customers will be given a limited time offer to receive
a free jar with their first purchase. After the initial promotion, a “buy one, get one
50% off” discount will be available to all our customers. As the business grows,
additional deals and coupons will be provided.
Works Cited
Acne. American Academy of Dermatology, 2015. Web. 15 Jan. 2015.
<https://www.aad.org/dermatology-a-to-z/diseases-andtreatments/ad/acne>.
"Acne Resource Center - Acne Statistics." Acne Resource Center - Acne Statistics.
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Web. 13 Jan. 2015. <http://www.acne-resource.org/understanding-acne/acnestatistics.html>.
Economics Online Ltd. "Monopolistic Competition." Monopolistic Competition.
Economics Online, 2015. Web. 14 Jan. 2015.
<www.economicsonline.co.uk/Business_economics/Monopolistic_competition.ht
ml>.
"Monopolistic Competition." Policonomics, 2012. Web. 10 Jan. 2015.
<http://www.policonomics.com/monopolistic-competition/>.
“Oligopoly and Monopolistic Competition.” AmosWEB Encyclonomic WEB*pedia,
AmosWEB LLC, 2000-2015. Web. 14 Jan. 2015. <http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=oligopoly+and+monopolistic+competition>.
"The 9 Best-rated Face Scrubs." TODAY. N.p., 2015. Web. 14 Jan. 2015.
<http://www.today.com/style/9-best-rated-face-scrubs-1C8543629>.
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