ecobeautylab opportunity analysis project - technology entrepreneurship class - stanford university
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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