Business Plan For Hair Straightener Product - Assignment Solution

Introduction

This business plan is being composed for a hair straightener product to be marketed within the Australian personal care appliances market. The unique value proposition (UVP) of this particular product is its use of cold air to straighten hair. Apart from that, unlike the conventional flat iron, this particular product is equipped with a mechanism of discharge of vitamins and minerals which may be applied externally to hair whilst straightening the hair.

This plan is divided into different sections. The first section contains information on the entire business model in the form of business canvas. This section is followed by information on the market and the market size for the hair straightener product. The section describes the recent trends of hair care appliances in the Australian market and the various attributes of the market such as the size and the growth rate. The fourth and fifth sections of the business plan outline the operations and technology, and human resources of the business respectively. Finally, important financial projections for the initial phases of the launch of the product have been presented as the profit analysis.

2. Business Model Canvas

UNIQUE HAIR STRAIGHTENER

KEY PARTNERS

The subcontracting companies which will contracted for prototyping and product designing will be the key partners.

The distribution companies which will be contracted will also be a strategic partner in a business.

The third key partner is the human resource and recruitment companies which will be engaged for the recruitment process.

KEY ACTIVITIES

New product development and product research are two important activities which holds a prime importance for the business. This is due to the reason that the business promotes itself on the basis of innovation and novelty of its products.

Prototyping and product designing are the second important activity.

Marketing, sales and distribution are the third key activities of the business.

VALUE PROPOSITIONS

The first value proposition is that of the utilisation of cold air technology for hair straightening.

The second value proposition is that of the discharge of minerals and vitamins externally so that the hair remains nourished and fresh and are not damaged by the straightening process.

CUSTOMER RELATIONSHIPS

In-store customer centric facilities will be made available for the customer.

The customers may reach out to the company through its stores.

The customers can also reach out to the company through its online platform.

CUSTOMER SEGMENTS

Demographic

Psychographic

Behavioural

KEY RESOURCES

Financial and human resources are the key resources which are being discussed head in the plan.

CHANNELS

The first channel is through walk-in; the customers may walk into the stores at their convenience depending upon the store timings.

The second channel is through the online platform which will remain open for sales 24/7.

COST STRUCTURE

Human resources employed for the business activities form the first key component of the cost structure.

The key partners engaged in order to deliver value to the customers form the second key component of the cost structure.

REVENUE STRUCTURE

Two revenue streams may be identified: online platform and in-store sales.

3. Market

3.1. Market Size

At a global level, the personal grooming and hair care appliances industry is a USD 930 million industry (Alliedmarketresearch.com, 2019). The personal care electrical appliances market is most probably expected to grow to AUD 28,007 million by the year 2022. This is to say that the market for the personal care electrical appliances such as the hair care, hair removal and the oral care appliances is gigantic. The market has not fully matured which is indicated from the fact that the market size is continuously growing and is expected to reach the magnitude of AUD 28,007 million in the year 2022 (Statista, 2019). Experts have presented many different reasons for the growth of the market including improving economic condition of Australia, a growing aging population and an increasing annual disposable income. These have been regarded as the key drivers of the personal care electrical appliances market within the country. A restraint has also been identified namely that of a lack of awareness and novelty in the personal care electrical appliances market.