Innovation and Business Development for Cawarra Cosmetics - Desklib

This report discusses the innovation and business development for Cawarra Cosmetics with Smart Fx Mirror. It identifies the benefits and problems of the plan, evaluates the business model, and provides recommendations. The report is relevant to business and marketing courses and is associated with a university or college. Desklib offers study material with solved assignments, essays, dissertations, and more.

Running head: INNOVATION AND BUSINESS DEVELOPMENT
INNOVATION AND BUSINESS DEVELOPMENT
Name of the Student
Name of the University
Author Note

1
INNOVATION AND BUSINESS DEVELOPMENT
Executive Summary

2
INNOVATION AND BUSINESS DEVELOPMENT
Table of Contents
1. Introduction............................................................................................................................3
2. Identification of Innovation....................................................................................................3
3. Evaluating Business Model....................................................................................................3
4. Development of the Case Documentations............................................................................3
5. Problems of the plans.............................................................................................................3
6. Benefits of the Plans...............................................................................................................3
7. Strategic Response of the plan...............................................................................................3
8. Option Analysis of the project...............................................................................................3
9. Recommendations..................................................................................................................3
10. Conclusion............................................................................................................................3
11. Reference..............................................................................................................................3

3
INNOVATION AND BUSINESS DEVELOPMENT
1. Introduction
Innovation is one of the pivotal issues that needs to be addressed in a business
organization in order to make the institution competitively advantageous in the premise of the
market. Market demands a variety of products that needs to cater to the needs of different
kind of requirements of the consumers. Innovation leads to a number of benefits for the
company as a whole as with time, consumers get the variety in products that they demand
from the market in terms of both different products as well as the quality. If a company do
not cater to the theory of innovation, then they may fall behind the race and other companies
can get their place in the longer period. In this report, business innovation and development
associated with is to be analysed Cawarra Cosmetic line is to be discussed. The following
paragraphs highlight the innovation of Smart Fx Mirror, which will help the consumers in
choosing the preferred cosmetics of their choice.
2. Identification of Innovation
Sustainability of a company can be maintained by making adequate changes in the
policies of the company keeping in the mind the needs of the consumers whose satisfaction is
their main goal. Therefore, even the idea of innovation in a company can be made by using
the concept of sustainability in the longer period. The concept of the Cawarra cosmertic
brand in developing the Fx Smart Mirror can be a sustainable change associated with
customer satisfaction, which can make the company more prone to attract a huge number of
customers in their arena. The Fx Smart Mirror makes sure that the customers can try on the
products without application on face. They can take pictures in the camera, which will be as
clear as a mirror. The smart device will then help in analysing the face structure, the skin tone
of the customer and the skin type so that the customer can make better choices in their
cosmetic buy. The device can also analyse if the requirements of the customers are meeting

4
INNOVATION AND BUSINESS DEVELOPMENT
with the products nor not. The customers are to fill up a requirement form which will state
their preference and their expectations that will help the mirror analyse and state the products
required for the customer. Therefore, Cawarra Cosmetics tried to develop an electronic
device enabled mirror that can be beneficial to the customers and will help in making better
choice.
Innovation should also lead to ease of the consumers and if any innovation fails to do
so, then that innovation can be seen in the light of negative customer satisfaction. Like every
innovative idea, the Fx Smart Mirror is an amalgamation of positive and negative aspects that
can needs to be addressed. Though the mirror seems to be worth all the hype as the customers
can get their work done without any hassle, some of the aspects of the mirror can pose a
serious concern for the users. The system runs on battery operated device and so needs to be
charged on a continuous basis. Other than this, the size of the product also makes a huge
difference on the innovation. As the product size is comparatively big in relation to the smart
phones that is used on a regular basis, it is not possible for the user to carry it wherever she
goes. This makes the device only available at the physical stores in which the product of the
particular brand is sold. Innovations are to be done in such a way so that it can cater to both
personal and professional needs of the user but the Smart Fx Mirror can only be used for the
professional needs of the brand.
3. Evaluating Business Model
The evaluation of business model is done in the following paragraph

Running head: INNOVATION AND BUSINESS DEVELOPMENT
Key
Partner
 Inv
esto
rs
 Ad
vert
iser
s
Key
Activity
 Pu
rc
ha
se
of
ra
w
ma
ter
ial
s
 Cu
sto
me
r
rel
ati
on
an
d
su
pp
ort
ac
co
rdi
ng
to
the
ne
ed
s
of
Proposition
of Value
 Pricin
g
accor
ding
to the
comp
etitive
marke
t
 Differ
ent
choic
e of
cosme
tics
 Broad
range
of
advert
iseme
nts
and
prom
otions
to
deal
with
the
custo
mer
needs
and
requir
ement
Relationship
with
consumers
 Identif
icatio
n and
segme
ntatio
n of
custo
mers
accord
ing to
the
potent
ial
buyin
g
needs
 Satisf
action
of
custo
mers
 Perso
nalizat
ion of
produ
cts
accord
ing to
the
needs
and
requir
ement
Key
resource
 Bra
nd
pros
pect
 Ava
ilabi
lity
in
the
mar
ket
Channels
 W
e
b
si
te
Segments
of
Consumers
 Bea
uty
salo
ns
 Big
mar
ket
for
the
bea
uty
con
scio
us
peo
ple
 Hou
seh
olds
 Sta
ndal
one
stor
es
of
the
bra
nd
Cost
Structure
 Pur
cha
se
of
devi
ce
part
s
and
asse
mbl
ing
the
m
 Arti
fici
al
Inte
llig
enc
e
req
uire
 Mar
keti
ng
and
pro
mot
ion
of
the
pro
Streams of
Revenue
 Cont
ribut
ion
of
the
cons
ume
rs
 Pro
moti
on
of
the
bran
d by
the
influ
ence
rs
and
othe
rs

1
INNOVATION AND BUSINESS DEVELOPMENT
the
co
ns
u
me
r
s s of
the
custo
mers
duct
 Sala
ries
of
the
peo
ple
in
the
who
le
pro
cess

Running head: INNOVATION AND BUSINESS DEVELOPMENT
4. Development of the Case Documentations
4.1 Problems of the plans
One of the major problems in this issue is to make the consumers understand the
problems associated with the whole system. There are people who have no idea on the
technical field and even do not know how to run artificial intelligence on their phones or
computer device. This may be a problem of the older generation who do not have any idea
about the kind of technological development the world is going through. They like the old
school thought process that enables them to apply makeup on themselves and test if it can suit
their skin or not. They do not find it promising enough to purchase any product before buying
it from the retailer inspite of the promises done by the company.
Another problem that is faced by the customers is the allergic reaction that can happen
if the ingredients of a particular product are not applied to the customer face directly. There
are ingredients present in the cosmetic product that can hamper and damage the skin of the
client and so if the products are not directly applied on the skin, the customer can have no
idea about the kind of reaction she may face.
Third problem is the problem of discrepancy that is faced by the customer if they use
any electronic device instead of the manual mirror. The technical mirror can have some
beautification process that helps the customers pick the wrong product for their skin.

1
INNOVATION AND BUSINESS DEVELOPMENT
4.2 Benefits of the Plans
4.3 Strategic Response of the plan
8. Option Analysis of the project
Summary of the Results of the Analysis:
Capital Costs $0
Whole of Life Costs $337,500
Present Value of Benefits $2,543,360
Present Value of Costs $280,081
Benefit Cost Ratio 9.08
Net Present Value $2,263,279
0 1 2 3 4
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 275000 275000 275000 275000 275000
Benefit 2 250000 250000 250000 250000 150000
Benefit 3 105000 105000 105000 105000 105000
Total Benefits (mid-year) $630,000 $630,000 $630,000 $630,000 $530,000
Present Value of Benefits (mid-yr) $606,218 $561,313 $519,734 $481,235 $374,860
Present Value of Benefits $2,543,360
Cost 1 -$25,000 -$25,000 -$25,000 -$25,000 -$25,000
Cost 2 -$27,500 -$27,500 -$27,500 -$27,500 -$27,500
Cost 3 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Total Costs (mid-year) -$67,500 -$67,500 -$67,500 -$67,500 -$67,500
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$67,500 -$67,500 -$67,500 -$67,500 -$67,500
Total Capital Costs $0
Total Whole of Life Costs -$337,500
Present Value of Costs (mid-year) -$64,952 -$60,141 -$55,686 -$51,561 -$47,742
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$64,952 -$60,141 -$55,686 -$51,561 -$47,742
Present Value of Costs -$280,081
Net Cash Flows $562,500 $562,500 $562,500 $562,500 $462,500
Net Present Value (by year) $541,266 $501,172 $464,048 $429,674 $327,118
Cumulative NPV $541,266 $1,042,438 $1,506,486 $1,936,161 $2,263,279
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.606$ 0.561$ 0.520$ 0.481$ 0.375$
Present Value of Costs ($million) 0.065-$ 0.060-$ 0.056-$ 0.052-$ 0.048-$
Cumulative Net Present Value ($million) 0.541$ 1.042$ 1.506$ 1.936$ 2.263$

2
INNOVATION AND BUSINESS DEVELOPMENT
9. Recommendations
10. Conclusion

3
INNOVATION AND BUSINESS DEVELOPMENT
11. Reference