MGT711 Entrepreneurship: Venture Report for Dr. Jart Dermask Expansion

This venture report analyzes the potential for Dr. Jart Dermask, a skincare brand known for its innovative formulations, to expand its business in Melbourne, Australia. The report begins with an executive summary, outlining the business's mission and objectives, followed by an overview of the product, which includes six types of masks designed to address various skin concerns. The target market is identified as the population of Melbourne aged 15-60, with a focus on both male and female consumers. The report details the business model, emphasizing customer relationship management, value propositions, customer segments, key activities, resources, partnerships, and cost structures. The strategy section outlines plans for advertisement, quality promotion, limited product releases, skincare consultant training, and cooperation with other companies. The marketing plan includes market research, target market identification, competitive analysis, SWOT analysis, and budget allocation, with an emphasis on partnerships with retail stores and online sales. The production and operation plan covers manufacturing setup and raw material sourcing, and the human resources section addresses staffing, training, and recruitment strategies. The report concludes with a summary, pitching the investment potential of Dr. Jart Dermask's expansion into the Australian market.

RUNNING HEAD: VENTURE REPORT
Venture report
Name of the Student:
Name of the University:
Author’s Note:

1VENTURE REPORT
Executive summary:
Dr Jart Dermask is a business organisation, which is launched online in 2005, that produces
skin mask for the consumer to solve the skin problem and skin related problem. Dr Jart
Dermask is the blender of skincare, art and science. This report will help Dr Jart Dermask
identify the new venture for business expansion. This report will analyse the positive aspect
of the location. The reason will be identified in this report which will help the business
organisation to increase its business.

2VENTURE REPORT
Table of Contents
Overview of the product:...........................................................................................................3
Overview of the target market:..................................................................................................3
Overview of the business model:...............................................................................................4
The strategy:...............................................................................................................................5
The marketing plan:...................................................................................................................6
The look of production and operation plan:...............................................................................6
Human resources needs:.............................................................................................................7
Summary:...................................................................................................................................9
References:...............................................................................................................................10

3VENTURE REPORT
Overview of the product:
Dr Jart Dermask is known all over the world for their innovative formulations that use
high quality active ingredients and approved to be safe for all skin types (Dr.Jart+ 2019). This
business organisation develops six types of the mask which are vital hydra solution, soothing
hydra solution, clearing solution, wrinkles solution, brightening solution, protecting solution,
and peeling solution (Dr.Jart+ 2019). This business organisation is focused on inventing
innovative mask for every face. Every face with a skin problem can use the musk.
Overview of the target market:
Dr Jart Dermask business organisation is interested in expanding its business. The
targeted market of this organisation is Melbourne of Australia. Melbourne, which is a rapidly
growing city of Australia, can be an attractive location for Dr Jart Dermask to expand its
business. The economy of Melbourne was higher than that of Singapore, and New Zeeland in
the financial year 2016-2017 (Invest.vic.gov.au 2019). As the population of the city is
increasing at a considerably faster rate, it is believed that by 2030 Melbourne will be the most
populated city of Australia. The state-defined payroll tax of Melbourne in second lowest. In
comparison with other extensive cities of Australia, Melbourne has low economic
vulnerability and risk. Doing business in Melbourne is easier because it is the cheapest
business location in Australia. The cost of office leasing, utility cost and the prices of land in
Melbourne are the lowest in the country. The transport infrastructure and access to the
international market are the reason to expand business in Melbourne (Invest.vic.gov.au
2019). People of Melbourne between the ages of fifteen to sixty are the targeted group of this
company while expanding the business in Melbourne. Both male and female of Melbourne
are the targeted consumers of this company. This business organisation will provide the

4VENTURE REPORT
products to the people who are interested in taking appropriate care of their skin and got skin
problem like pimples and dark circle and acne.
Table 1: Demographic and economic data of Melbourne
Source: (Abs.gov.au 2019)
Population of Melbourne 4.8 million
Population Growth rate 3.73% (2018)
Population density of Melbourne 453/km2
GDP of Melbourne $303.6 billion
Consumer price index 1.6%
Average weekly earnings $1,633.80
Transport system Privatised transport system. This location is
well connected to the developed transport
system.
Supportive government Government is supportive of the business
organisation
Overview of the business model:
The business module, followed by the Dr Jart Dermask business organisation, will be
discussed in this part. To improve the customer relationship, this business organisation
provide VIP card. For purchasing the products of Dr Jart Dermask, the company provide gifts
to the VIP customers. To build a good relationship with the customer, birthday presents are
delivered by the company (Ascarza et al. 2018). To improve the value of the products of this

5VENTURE REPORT
business organisation, there are several propositions. The products of this company will fix
the skin problem of consumers. To maintain a good skin condition, the product of this
company will help. This business organisation provides the best quality products with the
lowest prices in comparison with other skincare products of rivalry companies. The quality of
the products and the price of it will influence the consumers to use the products of Dr Jart
Dermask. This business organisation is successful in building its brand reputation. As a
reliable brand, this business organisation will attract consumers. To identify the potential
customer, this company has done the customer segment procedure. The potential customer of
this company are students, stars, office workers, mother, and YouTubers. The principal
activities of this company are cooperating with YouTubers and stars to promote the products.
This company spend a vast amount of money for the advertisement purpose. The essential
resources of this company are the best skin research group, which help the business
organisation to modify the products, invent new skincare products and maintain the quality
(HBS Working Knowledge 2019). This company uses the high quality raw material to build
the skincare products. To uphold the quality of the products and create the products, Dr Jart
Dermask uses advanced technologies. This business organisation is interested in enhancing
its share in the market. That is the reason Dr Jart Dermask is developing the partnerships with
retailers, facial salons, shopping centres like David Jones Pty Limited, and skin clinic. Online
websites, Facebook and Instagram and other social media site, are used by the company to
promote and advertise its products. To evaluate the cost structure, this company evaluate the
labour costs, raw materials, and delivery fee. For the revenue streams, Dr Jart Dermask
evaluates the product profits and agency fee (Vallurupalli and Bose 2018).
The strategy:
Dr Jart Dermask is interested in increasing its market share by expanding its business.
To do that, this business organisation has to follow a strategy which contains sufficient

6VENTURE REPORT
advertisement, promotion of the mask’s quality, limited productions, skincare consultant
training, pricing framework, co-operating with other companies (Andrews et al. 2016). The
company has to prepare a plan for the advertisement. Skincare products are familiar to most
of the people. There are several skin care products available in the market. What is the way to
differentiate the products of Dr Jart Dermask with other company? Dr Jart Dermask has to
use informative advertisement for the promotion, which will attract the consumers. The
advertisement, which reveals the ingredients of the product and discloses the impact of the
product on the ordinary people, attract the consumer. The advertisement inspires consumers.
The company deliver several skin masks. The company has to promote the quality of the
mask. To generate the demand for the products in the market, Dr Jart Dermask has to produce
limited products. It will help the company to maintain the quality and deliver the best
products to the customers (Van den Bulte et al. 2018). Skincare consultant training will help
the company to promote the products. The training will help the consultant to know about the
company’s products and the way to apply the products based on the person’s age. To
maximise its market share, Dr Jart Dermask has to cooperate with other companies. It will
help Dr Jart Dermask to be aware of the products, strategy and business plan of other rivalry
companies. In order to gain success, a company must optimism is the price. Cost-based
pricing must be taken in to consideration by the company in question as it would help in
gaining a fixed profit to the overall cost of the product (Macchion, Danese and Vinelli 2015).
Coca-Cola Company follows this strategy. Before investing this company analyse the venture
location. The market of the location, the market demand for the location is evaluated by the
company management team. It helps the company to understand the market demand. The
company will provide the products of the organisation according to the market demand.

7VENTURE REPORT
The marketing plan:
To develop the marketing plan for the Dr Jart Dermask, a few steps should be done.
Melbourne is the proposed destination, where the company will expand its business. At first,
the appropriate market research has to be done to understand the market and demand for the
new market. The company will get an idea of the market. A specific description of the
targeted market will help the company to identify the potential customer. The targeted market
group of this company are from school, star, office worker, and mother (Cox Pahnke et al.
2015). The company has to occupy the minds of its potential customers. The positioning of
the company will help the consumers to distinguish the products of Dr Jart Dermask from
other companies. Before expanding its business, this organisation has to do competitive
analysis. Consumer priorities on unique and real benefit. To provide a unique benefit to the
consumer, the company has to know the competition. Instead of focusing on the competitors,
the company should focus on the consumers. To develop the marketing strategy, the company
has to do a SWOT analysis, which will help the company to identify its strength, weakness,
opportunities and threat. For the marketing plan, the company has to fix a budget. For the
expansion of business in Melbourne will be like this. The company will develop a partnership
with retail stores and shopping centre. For the promotion of the product, the company will
spend a vast amount of money on advertisement. Through the social networking site, the
company will promote its product. The company will focus on generating its online sale
(Wallace 2019). The marketing team of Coca-Cola creates several innovative plans for
marketing to attract potential customers of the location. The marketing plan will evaluate the
market and according to market demand, this company create a marketing plan. The
marketing plan focuses on the product details to provide important information about the
product to the potential customer. The marketing plan helps Coca-Cola Company to
maximise its business in new venture location and create brand loyalty.

8VENTURE REPORT
The look of production and operation plan:
For Melbourne, the production plan will help the company to settle its budget. The
production of the skin mask will be managed through the manufacturer team. The head of the
manufacturing team of the company will help the company to set up a new manufacture
centre in Melbourne. The head of the manufacturing team will give the cost of setting up the
new manufacture centre. The accessories of the production and raw material will be provided
by the raw material supplier of the company. This company manufactures the best quality
skin products. To do that the company has to collect the raw material with the best quality.
Human resources needs:
In the near future, Dr Jart Dermask Company has to fulfil human resources needs.
Staffing is a procedure which recognises the ideal person for the right place. The company
has to train the employees to gain a favourable outcome form the staff. The staff will be
nurtured by the management team of the company. Coca-Cola Company follows the trend,
which is after recruiting the most eligible candidates for the company this organisation
provides training and development courses to the employee so that they can perform better.
For the business expansion in Melbourne, the company will prepare an accurate job
description. The vacancy advertisement with accurate job description will be circulated
through social media site, newspaper and the official site of the company (Chang and
Wyszomirski 2015). The recruitment strategy of the company should be attractive so that the
business organisation can attract the best candidates and hire the candidates for the vacant
post. After the recruitment procedure is completed, the company will train the employees for
the job. This training will be beneficial for newly recruited employees. Through this training
season, the recruited staff will learn about the company, the operation procedure of the
company, and every detail of the product. For the newly set up manufacturing centre of
Melbourne, the company needs employees, who will be guided by the existing production

9VENTURE REPORT
team of the company (Burns 2017). This training will help the staff to maintain the quality of
the product. To run the business successfully in future, the company needs the strength of
human resource. For the advertisement, management, production, and distribution, the
company needs several candidates as staff. Human resources specialist support the business
by conserving the cost while developing the compensation packages, staff assistance group,
and benefits material. The human resource group of the company will help the company to
achieve the company’s vision. To operate the business successfully, the authority of the
company depends on the human resource team (Kiss and Barr 2015). The human resource
team will analysis the objectives of the organisation, identify the human resource, predict the
demand and supply of the human resource, develop the action team, who will work with the
human resource, monitor the operation and production, control the operation and deliver the
feedback to the higher authority.

10VENTURE REPORT
Summary:
In Australia, Melbourne is the fastest growing city. Skin mask from Dr Jart Dermask
is known skin product in Australia. By 2030, Melbourne will be the most populated city in
Australia. The attractive market size, proper infrastructure, and the low cost production of
Melbourne, the number of potential customers will be beneficial for the company. Melbourne
can be the best option for Dr Jart Dermask to maximise its market share and business growth.

11VENTURE REPORT
References:
Andrews, M., Goehring, J., Hui, S., Pancras, J. and Thornswood, L., 2016. Mobile
promotions: A framework and research priorities. Journal of Interactive Marketing, 34,
pp.15-24.
Ascarza, E., Neslin, S.A., Netzer, O., Anderson, Z., Fader, P.S., Gupta, S., Hardie, B.G.,
Lemmens, A., Libai, B., Neal, D. and Provost, F., 2018. In pursuit of enhanced customer
retention management: Review, key issues, and future directions. Customer Needs and
Solutions, 5(1-2), pp.65-81.
Abs.gov.au (2019). Australian Bureau of Statistics, Australian Government. [online]
Abs.gov.au. Available at: https://www.abs.gov.au/ [Accessed 18 Oct. 2019].
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Chang, W.J. and Wyszomirski, M., 2015. What is arts entrepreneurship? Tracking the
development of its definition in scholarly journals. Artivate: a journal of entrepreneurship in
the arts, 4(2), pp.11-31.
Cox Pahnke, E., McDonald, R., Wang, D. and Hallen, B., 2015. Exposed: Venture capital,
competitor ties, and entrepreneurial innovation. Academy of Management Journal, 58(5),
pp.1334-1360.
Dr.Jart+ (2019). About. [online] Dr.Jart+. Available at: https://us.drjart.com/pages/about
[Accessed 14 Oct. 2019].
Dr.Jart+ (2019). Masks. [online] Dr.Jart+. Available at:
https://us.drjart.com/collections/masks?sort=manual&compactView=true [Accessed 14 Oct.
2019].

12VENTURE REPORT
HBS Working Knowledge (2019). Overcoming the Challenges of Selling Brand New
Technology (Hey, Need a 3-D Printer?). [online] HBS Working Knowledge. Available at:
https://hbswk.hbs.edu/item/hey-buddy-wanna-buy-a-3-d-printer-cheap?cid=wk-sm-li-
sf90324084&sf90324084=1 [Accessed 14 Oct. 2019].
Invest.vic.gov.au (2019). A great place to do business - Invest Victoria. [online]
Invest.vic.gov.au. Available at: http://www.invest.vic.gov.au/why-melbourne/tech-city-
melbourne/a-great-place-to-do-business [Accessed 14 Oct. 2019].
Kiss, A.N. and Barr, P.S., 2015. New venture strategic adaptation: The interplay of belief
structures and industry context. Strategic Management Journal, 36(8), pp.1245-1263.
Macchion, L., Danese, P. and Vinelli, A., 2015. Redefining supply network strategies to face
changing environments. A study from the fashion and luxury industry. Operations
management research, 8(1-2), pp.15-31.
Vallurupalli, V. and Bose, I., 2018. Rabbit or Tortoise? Rethinking Customer Acquisition at
Dravya Bank. Communications of the Association for Information Systems, 43(1), p.22.
Van den Bulte, C., Bayer, E., Skiera, B. and Schmitt, P., 2018. How customer referral
programs turn social capital into economic capital. Journal of Marketing Research, 55(1),
pp.132-146.
Wallace, T. (2019). How to Build an Ecommerce Sales Funnel to Drives Growth [21
Examples]. [online] The BigCommerce Blog. Available at:
https://www.bigcommerce.com.au/blog/ecommerce-sales-funnel/#the-awareness-stage
[Accessed 14 Oct. 2019].

13VENTURE REPORT