Submitted by: Lindsay Gail W. Torralba-Garcia -
Subject/ Section: Managerial Entrepreneurship/ MBAH-02
Topic: Business Plan outline for DermNation skin care line
Submitted on: May 28, 2016
I. Executive summary
There are 4 core products of the DermNation skin care line. Namely, (1) Acne treatment kit, (2) Whitening kit, (3) Sunscreen, (4) organic Lip conditioner.
DermNation is a sole proprietorship sister company of Wilson & Ayache Medical Aesthetics Clinic. Wilson & Ayache Medical Aesthetics Clinic is a specialty clinic focused on premium products and services in cosmetic surgery and aesthetic dermatology. The clinic is based on a boutique concept, located in Legaspi Village, within the central business district of Makati City, catering to class A,B patients that prefer discretion, avoiding crowded malls and hospitals. DermNation was born out of the observed demand by Wilson & Ayache Clinic Physicians, Dr. Lindsay Gail Wilson Torralba-Garcia (cosmetic surgeon) and Dr. June Paul Ayache Garcia (dermatologist), wherein they saw the need for good quality products at affordable prices. Since the clinic dispenses premium "high-end" skin care products, the doctors have noted the active ingredients in these and have sought and compared premium raw materials produced and available in the Philippines for local manufacturing with the intent to also help the local industry. Manufacturing skin care products with high quality raw materials locally, enabled the doctors to provide products at a more affordable price with results that can almost match premium brands. The locally produced skin care line also garnered a high patient satisfaction rate and feedback. DermNation enabled the clinic to cater to the class C,D and the provincial market.
II. Market Planning
The customer need that is being filled by the DermNation brand is providing good quality skin care products at an affordable price. The main advantage of the products will be the ingredients as formulated by the doctors based on what they have seen and observed with patient usage of products, their complaints, likes and dislikes from over the counter products to the ones dispensed at the clinic, ranging from high to low end skin care products.
The doctors will work hand in hand with a chemist and a compounding company that can manufacture their specified formula. Raw materials are preferably sourced locally.
Future products that will be offered will be (1) modified versions of the core products as adapted to market demand and consumer feedback, and (2) Innovation in the organic virgin coconut oil lip conditioner to be used on atopic dermatitis and skin allergies.
The distribution of the product will be initially at provincial groceries, dental clinics, spa's, parlors and drugstores under consignment. The initial distribution will serve as a pilot study to garner consumer feedback and turn over rate of products. These products will be available through e-commerce in the near future.
The cosmeceutical industry is growing and very innovative. The future of the industry is the continuous innovation of organic products and a modified version of these organic products with incorporated medications. In Asia Pacific, specially in the Philippines, cosmeceuticals are geared towards anti-aging or products that are able to deliver younger looking results.
The customers are primarily Asians wherein the formula as customized by the doctors to best suit and provide satisfactory results in Asian skin. The local demographic of the provincial cities as well as the market of the individual consignee's must be investigated.
The competitors are other locally manufactured products such as human nature organic products and Belo as products "formulated" by Dr. Vicki Belo. The strengths of these competitors are that they are well known brands already with a wide variety of skin care products and skin care lines, along with celebrity endorsers. The weakness for human nature is the limitation of products to organic materials which may produce results at a slower pace or be ineffective compared to products with a hybrid of organic and some medication in it's ingredients.
The position of DermNation skin care line in the cosmeceutical market will be affordable high-quality skin care products formulated by physicians using high-quality locally grown raw materials in the Philippines.
The competitive advantage of DermNation is the constant interaction of it's pioneer doctors with dermatologic concerns of consumers, wherein these physicians are not limited to the laboratory but garner first hand information about patient concern through their daily interaction with patients. DermNation may start with only 4 core products, but it's continuous innovation will offer better versions of these products so that the company may be a forerunner in addressing specific dermatologic and aesthetic concerns.
The image and packaging of DermNation products will be clean and simple with the logo of DermNation having green, representing medicine, yellow and orange as something refreshing, friendly or can elicit trust. The logo is a small letter D with representation of the layers of the skin.
The pricing strategy of the core products will be sold as kits and will be at par or 10% less with the competition as their products are usually sold individually. There will be more convenience in the part of the consumer, as a kit would contain everything that he/she will need for a specific concern. For example, the body whitening kit will contain a whitening soap and sunscreen.
The goal is to penetrate the Philippine provincial market in 2 years time, then to expand to e-commerce with continuous innovation in core products that may also cater to the international market in 5 years time.
The promotional plan is to introduce and display the products in trusted establishments in the province, such as dental clinics, spas, supermarkets and drugstores.
III. Management description
The Pioneer doctors will be hands on in managing DermNation starting with 2 employees functioning as sales representatives and the one's that oversee inventory in establishments. Accounting and marketing shall be outsourced. The first year of distribution, consequently a pilot study will be localized in the Ilocos region. Personnel will be employed within the local area.
IV. Financial Plan
The capital should be able to shoulder the expenses for an entire year. The re-order level of each establishment must be 100% replenishment of products every 3 months. The goal is to break-even in 2 years and have at least 20% increase in net revenue on the 3rd year.
<Hi Dra, we will follow the prescribed business plan format Thank you
Lindsay Gail Wilson Torralba-Garcia, M.D.
Cosmetic Surgeon
Wilson & Ayache Clinic
Lower ground floor, Legaspi Park View Bldg.
134 Legaspi St., Legaspi Village, Makati City 1229
Philippines
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