HANZ DE FUKO - POLAND By: Cang Pham & Hanh Nguyen Started in San Francisco – February 2009 CEO – David Alfonso COO – Christopher Zent Concept – “One of A Kind” Made in U.S.A POLAND Population = 38.54 million inhabitants 6th largest country in Europe 70th largest in the world Capital – Warsaw (1.7 million inhabitants) Official language is Polish Currency is Zloty (PLN) OTHER CITIES Lódź (782,000) Kraków (758,000) Wrocław (639,000) Poznań (576,000) Gdańsk (462,000) Szczecin (415,000) MARKET OVERVIEW Adopt privatization and economic liberalization Export partners: Germany, the UK, the Czech Rep., France, Italy, the Netherlands, and Russia Economy Sector: Services (63%), Manufacturing (33.3%), and Agriculture (3.6%) United States and Poland GDP growth 20% from 2008 – 2013 ECONOMIC POSITION 2015, Economic freedom score is 68.6 42nd freest in the world GDP = $815.5 billion GDP per Capita = $21,214 Unemployment is 10.4% Inflation = 0.9% ELECTRONIC COMMERCE Over 70% have Internet access 72% conduct online transactions M-commerce 28% of smartphones users visit online shops E-commerce growth 20% per year 2013, Poles spent $8.4 billion online HANZ DE FUKO QUICKSAND Increasing the use of beauty products from herbs and natural ingredients High demand of grooming and fashion in Poland. Competitors: Procter & Gamble, L’oreal Opportunity to develop a premium hair product Hanz de Fuko has marked a good market for organic treatments, “one of a kind” hair care products. DISTRIBUTION & SHIPPING Shipping by airplane (2-3 weeks) to Warsaw. Sephora : 50 bottle to every Sephora store (about 17 stores) Hair salons : 15 bottles to one hair salons (about 10 salons) Giving 1,000 sample size of Hanz de Fuko for free purchase gifts. PRICING & COSTS One of the best selling of the product line: Hanz de Fuko Quicksand (hair gel style) Quantity: 60ml Price: €15.96 Direct of cost sales: € 5,470 Sephora Discounts: € 4,950 -- (€ 4.95 per unit) Hair Salon Discounts: €593 -- (€ 3.95 per unit) Sample products: €2,000 -- (€2/unit) Shipping cost: €1,000 -- (1,000 unit) Sticky note: €500 Net profit: € 1,437 => €1.5/unit (10% ROI) PROMOTION Personal selling: hair salon’s dealers Social media: Facebook, Twitter, Pinterest,YouTube,… (feedbacks, ratings) Coupons: 10% of €50 purchase =>encourage the purchase or sale of our products for the first launching YOUTUBE DanielAlfonsotv – 91,365 subs & over 9.9 million views BluMaan – 207, 010 subs & over 12.8 million views TheGentlemansCove – 119,401 subs & over 7.5 million views TheSalonGuy – 130,465 subs & over 17 million views