HANOI UNIVERSITY FACULTY OF MANAGEMENT AND TOURISM -------------------o0o----------------- ENTREPRENEUR REPORT Tutor: Mr. Phan Hoang Quan Member: Group 2 - Tutorial 3 Pham Thi Hang - ID: 1704000046 Han Khanh Linh - ID: 1704000068 Nguyen Thuy Linh - ID: 1704000074 Nguyen Thi Phuong - ID: 1704000096 Nguyen Thi Trang - ID: 1704000115 Date: January 5th, 2020 Table of Contents A. Innovation idea - Lickmylips. Sources of innovation.
Ideas of Lickmylips. Current marketing situation. Objective and issues. Customer-centric strategy.
Human resource plan. Cashier and store manager. Online page caretakers. 360-degree feedback method:.
Key Performance Indicators (KPI). Allow employees’ involvement. Build employees' self-esteem. Build reward policies.
Source of fund & Initial Investment. The source of funds. The Sales Budget. Cash Collection Schedule.
Cash Payments Schedule in relation to Purchases Budget. Necessary costs required for operations. Cash Budget based on the Cash Collection and Payments Schedule. Difficulty related to cash flows.
Projected Income Statement. 50 Abstracts Nowadays, women have a tendency to use natural beauty products, especially cosmetic handmade is becoming a trend attracting many young people. Therefore, our company wants to develop its own brand name, and focus first on handmade lipstick products. Those products can solve most of the problems in which customers get trouble using cosmetics such as lipstick contaminated with lead, poisoning, and allergies, … “Lick my lips” is introducing and spreading the handmade organic lipstick, which guarantees the customers’ health and beauty.
o Mision: By creating the best handmade organic cosmetic products and providing the most memorable experience through special treatments and services to customers, “Lick my lips” guarantees perfection in every product. It’s the right mix of health, beauty, and uniqueness. o Vision Business performance and strategy Product and service quality Environment and social responsibility Employees’ commitment A. Innovation idea - Lickmylips I.
Sources of innovation Nowadays, women tend to use natural beauty products, especially cosmetic handmade. It is becoming a trend attracting many young people. Therefore, our company wants to develop its own brand name and focus first on handmade lipstick products. Those products can solve almost all of the problems in which customers get trouble using cosmetics.
Besides, the type of innovation is duplication. Most of the women bought poor quality lipsticks such as lipstick contaminated with lead. Lipsticks are absorbed through the skin, causing poisoning and allergies. Besides, a little lipstick will follow the food inside the body during eating and drinking, causing cancer.
Lead in lipstick reacts with enzymes in the stomach, potentially disrupting the digestive system. Even worse, the toxin from lipstick can cause fertility disorders in women. As a result, women tend to look for natural products to protect their health, and handmade lipstick is one of the products most sought by women. This helps to attract many potential customers for the company and get a large amount of sales revenue.
Ideas of Lickmylips The product is made from natural ingredients and comes in a variety of colors. When customers come to the showroom, they will experience mixing colors and taste according to their preferences. Besides, the lipstick case will be printed with the customer's signature or photo or will print whatever the customer asks for. With such experience, customers can easily express their personalities and own a lipstick that belongs to them.
Moreover, consumers make lipsticks to give to relatives and friends. Besides, when the customer runs out of products, the customer can bring the lipstick shell to the showroom to recycle the shells. Consequently, the company’s target customers are the person who loves making up, handmade lipsticks, and users 20 years and older. Additionally, time for customers to receive the products if done at the showroom will be 1-2 hours, and if customers order through the company's Website, it will be 2-3 days; besides, the expiry date of handmade lipstick is still two years from the date of manufacture.
Current marketing situation 1. Political factors Vietnam is considered as one of the safest countries in the world, according to the GPI report - Global Peace Index. The government always tries to reduce the rate of crime or violence in the country, which stimulates national economics to grow and develop. Besides, during COVID-19, Vietnam is ranked in the top 20 safest countries COVID-19.
Economic factors According to The World Bank, Vietnam is one of the countries having the highest growth rates in the region. Due to the extensive economic integration, the Vietnamese economy was also affected by the COVID-19 pandemic, but Vietnam is one of the few countries in the world that do not forecast an economic recession, thanks to the proactive countermeasures. The goods consumption status in Vietnam has always shown positive signs. In addition, the government has always promoted the movement of Vietnamese people priorly use Vietnamese goods, creating favorable conditions for small and medium enterprises.
2 Turning to the cosmetic market in Vietnam, the amount of money spent on beauty products in Vietnam has steadily increased since 2015. However, national cosmetics businesses only account for about 10% of the market, the remaining 90% are distributors from foreign. This is both an opportunity and a challenge for cosmetic businesses in Vietnam. Social factors Recently, Gen Z, a group of youngsters born since 1996, is getting more and more attention from society, especially the market.
Generation Z is also known as the connected generation, which will determine the consumer’s future of the economy. According to Nielsen's "Generation Z - Future Consumers" study, more than 70% of respondents say that they have a certain influence on shopping decisions and activities of their families such as entertainment, home appliances, clothing, food, and drinks. Therefore, it is time for businesses to plan their actions to stay ahead of the trend “connecting with gen Z”. Generation Z loves to experience new things and some of them also desire personalization.
41% of Generation Z in Nielsen's research says that they are always willing to have new experiences even though they have already had familiar brands for frequent use. Therefore, this imparts a huge opportunity for brands to intrigue this generation with interesting, innovative, or unique customer experiences, products, or services. In addition, they are global residents with extensive knowledge, Gen Z is also concerned with social responsibility, the environment, and gender equality. For those businesses that want to attract this group, they need to be ready to create a true brand with the values that Gen Z is looking for.
Environment There are many environmental problems in Vietnam, as a result of the Vietnam War, as well as the rapid industrialization of Vietnam since the economic reform in 1986. According to reports from the Vietnamese government, some of the main issues raised are soil pollution, degraded forest resources, loss of biodiversity, water pollution, air pollution, and solid waste management. 3 Recently, the issue of climate change is becoming a major concern in Vietnam. According to a World Bank study, Vietnam is one of the countries most affected by climate change.
Not only the government but also businesses and enterprises need to have primary responsibility for environmental issues in Vietnam. Products Our company focuses on various types of organic lipsticks and lip care which is made of processed organic ingredients from qualified supplies. Especially, when customers come to the showroom, they will experience mixing colors and taste according to their preferences following a safe customizing process. “Lick my lips” also provides engraving service for customers to create their own GREEN packaging by printing with the customer's signature or photo or will print whatever the customer asks for.
With such a unique experience in the process of making their own lipstick, our products are not only a tool for customers to easily express their personalities but also proof to confirm that this lipstick belongs to them. Customers The target customers of the company are most of them are 20 to 35 years old living in well- educated areas who appreciate high-quality Vietnamese-made products, normally spending for their cosmetic products more than 1,000,000 VND and they usually care more about the origins and quality of the products and wanna support local brands. They share the same characteristics that are analyzed by AIO – activities, interests, and opinions ● Interests: Makeup, new experience, natural products, and local brands ● Activities: Latest makeup product and new trend update, health-conscious, sustainability focusing ● Opinions: The "I" concept requires independence, self-control, ego, uniqueness in personality. Competitors On the aspect of service, until now, there has not been any single company in Vietnam that got involved in this service.
In terms of the product’s ingredients, our direct competitors are organic & vegan cosmetic brands: ● Local organic cosmetic brands: Cỏ mềm HomeLab, LaNa, Skina, Cocoon, Mita. ● International organic cosmetic brands (that are sold on the Vietnamese market) d. Supplier “Lick my lips” makes the contract and the commitment with some companies and organizations to get the material in the country. ● Công Ty TNHH Xây Dựng Cơ Khí Chế Tạo Máy Miền Nam: Provide technologies ● Công ty cổ phần quốc tế Organic: provide training and ingredient ● A Chau Company: Supply recycling material to make the green packaging ● Government The company will study and develop more about cosmetics importing from foreign countries to assure the quality to meet customers’ satisfaction.
Internal analysis To become a start-up company, it is necessary to predict and understand what main components of internal environments impact the success of an entrepreneur. By determining 4 main resources including financial resources, physical resources, technology resources, human resources; we have a better view of the overall situation as well as control the in-house conditions better. When starting a new business, it is no doubt that it is crucial to have money; due to the limited investment, the company only operates based on the funding collected by 5 founders’ savings and if the operation is exceeded our expectation’s equity, it is considered to look to private financing sources such as parents or friends. 5 When it comes to the physical resources, some appropriate realistically assets such as the retail operation, the processing lipstick equipment, website, or the showroom’s decoration, etc are the sufficient requirement in order to ensure a proper working space with high productivity and performance Technology resources are provided by our third-party Công Ty TNHH Xây Dựng Cơ Khí Chế Tạo Máy Miền Nam - years co.
specializing in maternity, cosmetic manufacturing, and product development imported from East Asia. We also associate with Công ty cổ phần quốc tế Organic in terms of receiving its training from experts to process organic ingredients and apply its technology in making cosmetics. The success of a business relies on the talent and strength of its staff since our company concentrates on mainly the service. “Lick my lips” will try to develop a human resource system that not only serves our marketing strategy: customer-centric but also chooses potential candidates having well-understanding and long-commitment within the organization.
● SWOT analysis - Strengths The company gets a lot of strengths in the products, service, and operation. The first is about products. The product’s design is so unique, therefore, it can express the customers’ personalities. The items for consumption are made completely natural and advanced production technology.
Moreover, the unique lipstick shell is designed with the customer's signature, and the lipstick color and lipstick design are all according to the customer's requirements, so each customer will own lipstick for themselves, it shows its own characters. Besides the intensive products, our company has impressive services for customers. Normally, consumers have the experience of creating their own lipstick at the store, besides, will be able to choose their favorite color to mix, in addition to being able to design their own lipstick.
