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Shiver store
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Table of Contents
TOC \o "1-3" \h \z \u 1.0.Introduction PAGEREF _Toc5105558 \h 3
2.0.Business Model PAGEREF _Toc5105559 \h 3
3.0.Product and Services PAGEREF _Toc5105560 \h 4
4.0.Market Analysis PAGEREF _Toc5105561 \h 4
5.0.Target Market PAGEREF _Toc5105562 \h 4
6.0.Key Competitors in the Market PAGEREF _Toc5105563 \h 5
7.0.Competitive Advantage PAGEREF _Toc5105564 \h 6
8.0.Opportunity PAGEREF _Toc5105565 \h 6
9.0.Marketing strategies PAGEREF _Toc5105566 \h 7
10.0 Barrier to entry PAGEREF _Toc5105567 \h 7
10.0.Finance PAGEREF _Toc5105568 \h 7
11.0.References PAGEREF _Toc5105569 \h 9
Introduction
Shiver store is a startup company, started with the aim of providing personal care to clients. It is a partnership limited liability company registered under the company’s Act. It intends to provide personal care service, which includes nails hygiene, armpits, and general body care for both men and women. Besides, it will also sell body personal hygiene products, which include body oil, lotion, shampoo, perfume, and other related products. It intends to invest in online and store products to help it increase its market share. It focuses on customer service delivery and therefore, customers are the key focus of the company. The core aim of the Shiver store is to be the best company in the provision of hygienic services to customers in the United States. It intends to utilize technology in the application of its services to customers. It shall have an app for delivery of services and connecting to customers across the country and therefore, it will have both physical store and online store platform to give it’s a larger market share.
Shiver store slogan is “customers are the kings and queens and deserve utmost care.” Therefore, the main objective of Shiver Store is to take the utmost care of its customers. Shiver store will first open its stores in New York, where it has acquired a store to introduce its services and products to the market.
Business Model
Shiver Store will offer service and products to the market with a focus on beauty and personal care of both men and women. The prices of the services and products will be based on market factors and affordable to clients. The pricing of the products will factor in the cost of logistics and other factors, like wages and the inflation rate in New York City.
Product and Services
Shiver Store main services are personal care. It offers hair, nail, facial, and message to clients. It intends to sell body care products in its store and online platform as well. Its stores will be stocked with body lotions, oil, perfume Shampoos, and ointment or hair. Other products will be nail oils, which are required by customers.
Market Analysis
The beauty market in the United States is valued at over $35.9 billion and it is expected to grow at the rate of 15% per year CITATION Mic19 \l 1033 (Patterson, 2019). It is one of the markets, which still remain underutilized in terms of the application of technology in the provision of services. Traditionally, the business was left for small business but the trend has changed due to demand for personal body care across the country. There is a high demand for such services making the nail and hair care to be a core business in the United States CITATION Nac18 \l 1033 (McCain, 2018). Studies have also shown that men have started to look into personal care and therefore, the number of men turning for nails, facial and hair care have increased over the years. Men and women have left traditional home care to seek the services of companies like Shiver store and therefore, the market continues to expand. A survey indicates that the market continues to increase because many people have the desire to feel good and look well. It drives the market and has also increased the business opportunities for companies offering personal care services.
Target Market
Shiver Store primary target market is both male and female from both middle and upper-income earners. The demographics of the target are both genders aged between 18 years to 70 years. The key and high-end target markets are upper-income earners with an average annual income of $ 100,000 to $250,000 both employed and business oriented people CITATION Per18 \l 1033 (Romanowski, 2018). The age bracket for its high-end clients is between 30 years to 65 years living in a high-end neighborhood in the New York area.
The secondary target is anyone who can walk in for the services. Shiver Store customer service policy welcomes every customer to the store and opens to provide services to all customers without demographic discrimination. A survey conducted indicates that most men seek services or hair, nails and facial after every 14 days. It is also established that more men are joining the services and therefore, the target market is growing and it will be profitable for Shiver store to focus on both men and women across the country. The tertiary target markets are kids or teenager. It shall also have services for kids since kids have also been seeking beauty services in accompany of their parents.
Key Competitors in the Market
RMS Beauty, Pacifica, Beauty Cosmetic and Opas Shop are some of the companies providing personal care services in New York. RMS Beauty is a key competitor of Shiver Store since it provides almost similar services as Shiver Store. RMS beauty provides body, hair and general care to women and men and has stores in New York City. Analysis established that RMS has been in business for several years and therefore, it has a market share CITATION Mic19 \l 1033 (Patterson, 2019). It has experienced employees and wide financial support since it has been in operation for several years. However, it has not integrated its services with technology a key aspect, which Shiver Store intends to utilize to expand its market share. Besides technology, Shiver Store intends to invest in customers through effective service delivery and research. This will help the company to increase its market share hence high sales volume and profitability.
Competitive Advantage
Shiver Stores has developed an app for services delivery. It focuses on both online and physical stores, which many companies in the industry have not utilized. However, the main competitive advantage is its pricing strategies, service delivery and the use of technology. Shiver stores believe in their customers and treat customers with the utmost care. It delivers products to customers at the homes and also has home services, which many of its competitors do not have. It intends to integrate its services to offer online personal care, and online store as well, which shall be a unique service delivery in the industry. Through this is expected to grow its market share at 15% per year.
Opportunity
The United States economy has realized economic growth in the last quarter and is expected to continue to grow. The inflation is low and the unemployment rate has reduced over the last six months and therefore, the spending rate of people has also increased. It is likely to increase the spending rate of people in luxuries activities like personal care. The beauty industry is being taken serious and many partners are coming to invest as a result of the increased number of people seeking for personal care. Even corporate are not left behind since has been increasing demand from corporations such as media and public relation (PR) firms in the country. This has created a lot of business opportunity for the company to utilize and increase its market share. The economy of the U.S. is also steady and it is expected to continue realizing growth in the next two years and therefore, investing in beauty and personal care would be a great business deal with a good business return.
Marketing strategies
Shiver Store shall use both traditional and modern marketing method where technology will be used to sales it is brand in the market. It shall focus on the brand market rather than brand to increase market share and sales. Shiver Store intends to use advertisement, promotion, and social media to market its products and brand to the market. It shall have a YouTube video, which illustrates its services running constantly on its web site and its social media platform Facebook, Twitter, and Instagram. The social media platform will help the company to get young and adults clients. It shall ad its brand on TV and on print media, which are paid ad for a specific period. It shall also have indoor and or digital signage within the malls and stores in major streets in New York and the surrounding region.
10.0 Barrier to entry
The most barriers to entry into the market are high finances required for the startup. There are a lot of funds required to purchase equipment, business registration, and purchase of stock. It makes it difficult for several companies to join the market. It is also important to point out that stiff market competition and legal requirements are also some of the bottlenecks in the market, which prevent entry by other companies.
Finance
Startup requires an estimate of $250,000 for the company to open its first store. The finances will be used for the purchase of products, renting a store, and purchase of other operating items. It is expected to make a sale of at least $ 5,000 per month and an increase of 20% every month for a period of 12 months during its first year of operation. It is also expected to break the even within its first quarter of operation and in the second quarter, it is expected to realize profits and then increase by at least 10% in every quarter during its first and second year of operation.
References
BIBLIOGRAPHY McCain, N. (2018). Performance of beauty and Personal Care Industry. Journal of beauty and
therapy, 2-14.
Patterson, M. (2019). Personal and Beauty care Industry.
https://www.forbes.com/pictures/lmj45jdlf/top-10-global-beauty-brands/, 2-45.
Romanowski, P. (2018). Biggest Cosmetic Companies in the World.
https://chemistscorner.com/the-20-biggest-cosmetic-companies-in-the-world/, 2-25.
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