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.
The Value Chain
Inbound
Logistic
• Purchase chemical ingredients from BASF.
• Plant Scheduling
• Plant Capacity
• Combine the chemical with our natural ingredients.
• Bottling & Packaging
Operations • Quality Control
• Inventory Management
Outbound • Distribute to major cosmetic retailers and distributors.
Logistic • On Time Delivery
• Pricing
Marketing • Placement
& Sales • Promotions
Service
• Customer Call Center
• Customer Survey
• In-store Inventory
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…
20%
• spends $1-$10 on polish a month
44%
• spends $11-$20 on polish a month
24%
• spends $21-$30 on polish a month.
Survey says…
52%
change
polish daily
32%
change
polish daily
10%
change
polish daily
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
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.
Advertisements
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
Stop - Competition Matrix
Sales Projection
$2,000,000
$1,500,000
Break-even
$675,136
$1,000,000
Revenue
EBIT
$500,000
$0
Q1
($500,000)
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
•
•
•
•
•
•
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
Income Statement (5 Year)
Year 2
Year 1
Year 3
Year 4
Year 5
Revenue
$353,496
$2,898,802
$6,504,596
$9,722,135
$13,464,343
COGS
$106,049
$869,640
$1,951,379
$2,916,640
$4,039,303
$1,149,502
$1,890,380
$1,890,380
$1,890,380
$1,890,380
$30,000
$30,000
$30,000
$30,000
$30,000
($932,054)
$108,781
$2,632,837
$4,885,114
$7,504,660
$60,000
$60,000
$60,000
$60,000
$60,000
($992,054)
$48,781
$2,572,837
$4,825,114
$7,444,660
$0
$7,317
$870,865
$1,636,639
$2,527,285
($992,054)
$41,464
$1,701,973
$3,188,475
$4,917,376
Expenses
Depreciation
EBIT
Interest
Taxable Income
Taxes
Net Income
Year 1
Investment $
Year 2
Year 3
Year 4
Q1 Q2 Q3 Q4
Research Development
Product Production
Logistics
Investment $
Retail Partnerships
Positive Cash Flow
Breakeven
Nail Polish Production
Advertising
Payback Investors
Earn Expected Revenue
Road Map
Year 5
Back-up Slides
Survey Results
What are your most favorite nail polish brands?
China glaze
7%
Mary Kay
5%
Estee Lauder
5%
Revlon
8%
OPI
33%
L'Oreal
10%
Sally Hansen
7%
Essie
25%
Survey Results
How often do you change polish because
they are chipped/ looks bad?
Monthly Daily
6% 10%
Bi-weekly
32%
Weekly
52%
Survey Results
How much do you spend on nail polish each month?
$31- Above
12%
$21-$30
24%
$1-$10
20%
$11-$20
44%
Survey Results
• Would you like to pay a little more for longer
lasting nail polish?
Competition Matrix Expanded
Operations Expenses
Year 1
Q1
Salaries
Payroll Taxes
Q2
Year 2
Q3
Q4
Q1
Q2
Year 3
Q3
Q4
Q1
Q2
Year 4
Q3
Q4
Q1
Q2
Year 5
Q3
Q4
Q1
Q2
Q3
Q4
$151,250 $186,250 $216,250 $310,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000 $380,000
$11,571
$14,248
$16,543
$23,715
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
$29,070
Rent
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
Utilities
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
Advertising
$22,500
$24,750
$29,700
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
$37,125
Selling Expenses
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
Insurance
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
Depreciation
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
Office Expenses
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
$3,150
Total Expenses
$219,221 $259,148 $296,393 $404,740 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095 $480,095
Income Statement (Expanded)
Year 1
Year 2
Q1
Q2
Q3
$25,578
$49,188
$98,376
$180,355
$537,787
$662,396
$787,005
$7,673
$14,756
$29,513
$54,107
$161,336
$198,719
$211,721
$251,648
$288,893
$397,240
$472,595
$7,500
$7,500
$7,500
$7,500
($201,316)
($224,717)
($227,530)
$15,000
$15,000
Taxable Income
($216,316)
Cul. Cash Flow
($216,316)
Revenue
COGS
Expenses
Depreciation
EBIT
Interest
Q4
Q1
Q2
Year 3
Q3
Q4
Q1
Q2
Q3
Q4
$911,614
$1,552,367
$1,601,555
$1,650,743
$1,699,931
$236,101
$273,484
$465,710
$480,467
$495,223
$509,979
$472,595
$472,595
$472,595
$472,595
$472,595
$472,595
$472,595
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
($278,491)
($103,644)
($16,418)
$70,808
$158,035
$606,562
$640,994
$675,425
$709,857
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
($239,717)
($242,530)
($293,491)
($118,644)
($31,418)
$55,808
$143,035
$591,562
$625,994
$660,425
$694,857
($456,033)
($698,563)
($992,054) ($1,110,699) ($1,142,117) ($1,086,308)
($943,273)
($351,711)
$274,282
$934,708
$1,629,564
Year 4
Year 5
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
$2,332,158
$2,397,742
$2,463,326
$2,528,909
$3,243,116
$3,325,096
$3,407,076
$3,489,055
$699,647
$719,323
$738,998
$758,673
$972,935
$997,529
$1,022,123
$1,046,717
$472,595
$472,595
$472,595
$472,595
$472,595
$472,595
$472,595
$472,595
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$1,152,416
$1,198,324
$1,244,233
$1,290,142
$1,790,086
$1,847,472
$1,904,858
$1,962,244
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$1,137,416
$1,183,324
$1,229,233
$1,275,142
$1,775,086
$1,832,472
$1,889,858
$1,947,244
$2,766,980
$3,950,304
$5,179,537
$6,454,678
$8,229,765 $10,062,237 $11,952,095 $13,899,339