ecobeautylab opportunity analysis project - technology entrepreneurship class - stanford university

EcoBeautyLabTechnology Entrepreneurship - Opportunity Analysis Project

Is Our Idea Worth Pursuing?

The Idea

How big is the market?

Hypothesis Value Proposition (Customer Pains and Solution) Customers

Experiments

Results

The Idea

The IdeaA platform that empowers consumers to create their own eco-friendly personal care product that is safe,

simple and stunning.

Market Size ResearchPersonal Care Products Industry

Market Size Research(Personal Care Products)

Global United States

Eco-Friendly

E-commerce

$350 Billion

Market Size Research(Personal Care Products)

Global United States Eco-Friendly

E-commerce

$160 BillionBreakdown:Skincare: $24 billionMake-up: $18 billionHair-care: $38 billionPerfumes: $15 billion

Market Size Research(Personal Care Products)

Global United States

Eco-Friendly E-commerce

2011: $5 billion

Market Size Research(Personal Care Products)

Global United States

Eco-Friendly E-commerce

2012-2017 (Expected Growth):

$8 Billion

Market Size Research(Personal Care Products)

Global United States

Eco-Friendly

E-commerce

2012: $9.6 billion

(40% jump from 2010, third higher than the projected growth rate for e-

commerce over all)

Market Size Research(Personal Care Products)

Global United States

Eco-Friendly

E-commerce

2012-2017 (Expected Growth):

8.8%

HypothesisValue Proposition - Customer pains and solutions

Problem 1Lack of consumer control and personalization options to cater to unique customer needs

Solution 1Offer customization options and features that

resonate with consumers

Problem 2 False Labeling and Marketing Gimmicks (to cover up toxic chemicals & animal testing)

Solution 2Transparency and education of the product

development process

Problem 3Most beauty sites are cumbersome

Solution 3Visually stunning platform that guarantees use of use in

manipulating product choices

Problem 4Overwhelmed by choices

Solution 4: CurationCurate the customization options by taking away

unwanted choices

Experiments

Experiments

Sample Size: 50

Online Survey: 20

Face-to-Face: 30

Customer Profile

Age: 13 – 24Occupation: Teenager/StudentIncome: Allowance from affluent parentsPain 1: Lack of customization options to express their unique identityHabits: Spend a lot of time consuming and creating content on social networks

Age: 25 - 35Occupation: Busy Working ProfessionalIncome: Disposable IncomePain 2 & 3: Overwhelmed by choicesFrustrated with cumbersome beauty sitesHabits: Make well-informed decisions based on research from women’s magazines

Age: 35 - 50Occupation: Multi-tasking MomIncome: DisposablePain 4: Disenchanted with marketing gimmicks and false labelingHabits: Highly involved with the community and passionate about safe products

ClarissaThe Online Influencer

JenniferThe Multitasking Mom

ValentineThe Sophisticated Shopper

Results

ResultsDo customers really have the

pains we’ve guessed?

YES

Other Pains• Unable to physically try products• Time-consuming process to

educate themselves

Alternative solutions offered

• Good Return Policy• Sample Sizes