Identifying Entrepreneurial Opportunities: Kyra Beauty Product Report

This report delves into the entrepreneurial opportunity of launching Kyra, a new beauty product aimed at addressing facial marks. The analysis begins by exploring various sources of entrepreneurial ideas and innovation, emphasizing the importance of selecting a business model with long-term stability. It examines the rationale behind choosing the cosmetic sector, considering economic, social, technological, and political factors. The report discusses different types of innovation, including process, product, and incremental innovation, and highlights sources of innovation such as unexpected changes, incongruities, and market needs. Furthermore, it analyzes the target market for Kyra, focusing on females aged 30-55, and employs Porter's Five Forces model to assess the competitive landscape. The report also outlines the tangible and intangible benefits of Kyra, providing a comprehensive overview of the entrepreneurial venture and its potential for success.

IDENTIFYING
ENTERPENURE
OPPORTUNITES
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............3
P2 The rationale and the market gap for a specific entrepreneurial............................................6
P3 Gap analysis in the evaluation of a specific entrepreneurial idea..........................................9
P4 Interpretation of data to provide evidence of market potential............................................11
P5 SWOT analysis to assess the entrepreneur idea...................................................................11
P6 Competitive and market environments in which the idea will be launched........................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
An individual has variety of options to start a new business with. It is important that the
mode of commencing same is selected in a way that the most effective outcomes are achieved.
With the advancement in globalization this has become more crucial to select the appropriate
mode of commercial idea which can lead to enhancement of an individual. The external factors
for every enterprise keep on fluctuating and therefore it has to be identified that which option
will have maximum stability and will give positive returns in the long run. For entrepreneur the
major concern is to implement the idea which is being selected in the same manner as expected
as the forces of environment makes it difficult to deal with the continuous changes (Farmer, Yao
and Kung‐Mcintyre, 2011). The business idea which is taken in this report is of launching a new
beauty product for females which will help them in getting rid of different face marks in a short
run. Kyra is a daily product which will be launched in different parts of UK with a view of
capturing maximum market share. As people are very much health conscious it is expected that
this will turn into a favorable option for the entrepreneur and hence the profit margin will be
raised. The following report will talk about the variety of sources that are available for an
entrepreneur to select the appropriate options and will also discuss the factors affecting same
using the different tools.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
An entrepreneur is a person who takes risk on his own responsibility with an aim of earning
higher returns. An entirely new concept is launched by him which has the capacity to attract
market towards it and hence the competitive advantage is achieved. He/she is an individual who
instead of working under some other superiors commence own start up and achieve the desired
results. The scale of operation may vary to the degree of investment made as there are option s of
doing large medium and low allocation of resources. All the rewards and loss are suffered by an
entrepreneur alone and there is no liability of the third party in this type of business. He has the
capabilities of exploring the market opportunities into business and earn maximum returns
specifically at the initial stages. In order to achieve success in long run it is important that
business is started with an option which has minimum chances of failure and involves less risk.
When a start-up is launched market study is done so that different ideas can be evaluated and
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compared as this helps in identifying the best suitable option. There is a difference between the
two concept innovation and invention which can be better understood from the figure given
below:
Figure 1: Innovation, Invention, and Creativity: What is the Difference?
The idea of choosing the cosmetic sector was influenced by different forces some of which
are given below:
Economic factor – in order to capture greater market, share it is important that such
business idea is launched which is easily accepted in the market. At initial stages customer’s do
not like to spend much as they find it difficult to trust a new brand (Duru, 2011). Therefore, to
choose an idea which demands less investment is good as this way the total risk involve gets
reduced and hence it becomes easy to capture more market. The new idea of launching Kyra is
chosen as it is an economic product and can be easily placed to sell on a high scale.
Social Factors - Apart from this the social factors also includes the demand in society and
hence this is the major reason why the idea of launching a beauty product is selected. Women are
very particular about their looks and therefore can be easily influenced with a product that may
lead to a positive change in their appearance.
Technological factors – To carry out different operations and to start a new business latest
technologies are also required which demands investment in high amount. As the degree of
danger involve in the start-ups is high it is risky to choose an option demanding high cost
applications. Therefore, to choose the option of a cosmetic is beneficial as through this more
results can be achieved with the investment of less cost. Manufacturing a new cream is less
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complicated and there are high chances of getting success if an effective medium of marketing is
used.
Political factors – The selection of a particular business idea is highly influenced by the
current political conditions of a particular place. it has to be recognised that weather the
government has favourable conditions for the selected business or not. If it is found that there are
high taxes and restrictions imposed by government towards the selected idea than the same may
get effected. Since the selected start up belongs to an industry which faces limited restrictions the
same may prove to be beneficial (Grégoire and Shepherd, 2012). There are distinct variety of
innovation in business:
1. Process innovation – This is the most common way of innovating the business in which
present code of conduct is replaced with an improved method. The new procedure which
is adopted has the capacity to give better results to the firm.
2. Product innovation – It is another option through which modification can be brought in
the business. By adding variety or more feature to the existing product demand for same
can be raised and high revenue can be generated.
3. Incremental innovation – It is a combination of distinct small and continuous
improvements that can be made in different areas of business. It can be product process or
any section in which there is a scope of change.
Sources of innovation
Innovation is the process through which changes in the existing products are made so that
their overall value can be raised. It is an effective tool that can be implemented in order to raise
the scale of operation and to increase the capacity of a particular unit. Invention on the other
hand is entirely a different process as in this a totally new product is received which is developed
on a new scale. In the chooses business idea the concept of invention is used as a fresh cream is
launched for the public which will serve a different objective for the users. In the start-ups both
these concepts are used on a wide scale as without these a business idea is incomplete as it will
not be considered as new. The scope of innovation is high in this type of business as
entrepreneurs can use variety of methods in their production process or product. There are
different sources of innovation which are as follows:
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1. The unexpected – Any sudden change in the external surroundings can be referred as a source
of innovation as by exploring to same there are chances that business may earn higher
returns.
2. The incongruity – In case of inefficient present working system it is assumed that by
innovating the same the productivity can be raised.
3. The process need – This is another source of innovation in which it is identified that through
changing the present working system better and effective results can be achieved.
4. The industry and market need – Competition is tough in different sectors and in order to
achieve the competitive advantage it is of great importance that change is maintained as it
assist in maintain the interest of distinct clients.
5. Demographics – This is another major source of innovation as investigative look at the link
between economic growth, innovation, vitality and entrepreneurship in an aging population,
and provides a smart strategy for the future.
6. Changes in perception, Meaning and Mood – Chances of modifications develops in case of
alteration in the present system of working. As now society is more health freak it is easy to
position the selected product in market.
7. New knowledge – With the increase in present information it is observed that it becomes easy
to modify the products. Like in case of Kyra scope has improved as now with the assistance
of same best quality products can be delivered in market.
P2 The rationale and the market gap for a specific entrepreneurial
The targeted customers of the new brand launched is females falling under the age group of
thirty to fifty-five. It is very much important that before a product is actually launched in the
market targeting of customers is doe in an appropriate manner. This helps in making the changes
in the offerings and delivering the most demanded item. Apart from this targeting process also
helps in deciding on the marketing activities for the customers as after recognising the behaviour
of clients it can be identified that which mode of promotion can act as the most appropriate one.
In order to analyse the industry there are various tools that are available among which Porter’s
five force model is the most effective one (Fuentes and et.al., 2010). Through the same it can be
identified that what completion is prevailing in the market so that accordingly arrangements are
done. Give below is the competitive analysis of cosmetic section which will help in
understanding the problem that will be faced while taking a new entry in the same.
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1. Behavioural – Under this technique entrepreneur by understanding the nature of distinct
customers can raise its total sales. people are divided into homogeneous groups so that their
desires are better served.
2. Demographic – This is another mode of raising the revenue chances for the business. under
this total market is sub divided on the basis of same age, sex and caste. It is so because this way
their desires are better understood and accordingly satisfaction level can be improved.
3. Geographic – Last but not the least it is that segmentation in which market is supplied as per
their area. It helps in maintaining the right quantity of supply so that non availability of product
is avoided.
Apart from the above models use of different other techniques can also be done in order
to raise eh total sales of the new business idea. Some of them are as follows:
4. Tangible and intangible benefits of Kyra
Tangible Intangible
It is easy to carry and handy for the users. The cost of the product is maintained to
minimum which makes it price friendly.
The designing of product is done such that it
can attract maximum customer’s.
Continuous use of Kyra will lead to major
positive change on the users face.
The production of cream is done in such a
manner that is easy to apply and users will not
find it sticky.
The ingredients used in this cream are friendly
to all skin type.
5. Porters 5 force model
Industry competitors – In the cosmetic industry the degree of rivalry is high still it is a
good option to start a new business with. It is due to the fact that once an entrepreneur is
successful in establishing its brand in the eyes of customers, long term connections can be
developed. When clients start trusting a brand they become permanent customer’s and lead to
high buyer’s loyalty. Therefore, it is beneficial to take efforts towards competing the already
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existing brands as this may prove to be beneficial for an entrepreneur in a long run (Kraus,
Kauranen and Henning Reschke, 2011).
Bargaining power of suppliers – The products required for the production of cosmetics
are not complex and are easily available. There a number of suppliers for a particular ingredient
which makes this industry less dependent on the parties supplying raw material. Therefore, this
makes it a favourable option for starting a start-ups and hence desired results can be achieved
from the same.
Bargaining power of customer’s – There are a number of units that are dealing in this
business and hence makes it more customer oriented sector. Maximum power is held by
customer’s and the entrepreneurs dealing in this sections need to run their operations as per the
demand in the market. Still it is considered as a good option as once the brand is favoured by the
clients they develop a positive perspective towards it and help in the development of same
(Korsgaard, 2013).
Threats of substitute – It is the factor that measures the danger which is present in a
particular industry due to the presence of other alternatives. There are series of brand that are
already existing in the market and hence while implementing Kyra risk of high competition will
be unavoidable. It is important that the most effective medium of connection with market is
chosen as this can help in placing the new product effectively in the eyes of customer’s.
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Figure 2Product life Cycle
(Source: Bhasin. H, 2018)
The above product life cycle shows that when a new product is launched in market it
experiences growth in the initial stage and gradually reaches to a no profit no loss situation and
thereafter starts decline. It shows that maximum efforts should be given in the starting so that
supreme returns are received and profitability is maximised. Strategies should be planned in a
way that revenues are generated.
P3 Gap analysis in the evaluation of a specific entrepreneurial idea
Gap analysis is the process through which the difference between actual and desired results
are identified. It is an effective tool as through this it can be recognised that why deviations are
observed so that the same do not repeats in future. In order to implement the new idea in market
successfully it is required that proper training is provided to the employees so that their
contribution can be used to reach at the desired standards (Nassif, Ghobril and Silva, 2010). To
collect information regarding the new idea aid from different primary and secondary sources can
be taken as this will help in minimising the gap. There are different techniques which are
available through which the associated data can be gathered and some of them are discussed
below:
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Survey – This is one of the most effective tool of getting the customer response as through
this interaction firm different service uses can be done and accordingly changes and additions to
own product can be made. This helps in making the offering more acceptable and hence the
difference in actual and expected sales can be reduced.
Data on net – the another mode of getting the relevant information is from the past records
available on net as through them it can be identified how customers are responding to different
products so that accordingly the offering can be modified (St-Jean and Audet, 2012).
Executive Summary
Development plan is the method through which a plan is developed for the new product.
The company is launching a new product known as Kyra. This product is applicable for the users
who have dark spots on their face within 2 weeks. The targeted customers are identified within
this development plan so as to launch the product successfully.
Description of the business
There is basic need for the people to use beauty products. In various countries there are
various industries which are running successfully in this sector. The new beauty product is
developed and going to be launched in the market known as Kyra. This product is helpful in
removing the dark spots in a short run. The main advantage of this beauty product is that it is
surely does not provide any type of harshness to the body of user. This will erase the dark spots
of customer within 2 weeks.
Market Research
This is known as the research of market with the help of segmentation, targetting and
positioning.
Segmentation
It is the position of customer according to the product. The segmentation of the product
can be done by two ways such as:
Demographics: This is the basis on which the customer is divided such as age, gender, income,
education, marital status, type of occupation etc. To the new product Kyra, these factors are the
necessary fro segmenting the customers.
Psycho-graphics: This factor includes personal choices of the customer such as attitude, life
style, hobbies, risk aversion, penalty etc.
Targetting
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Targetting is the function in which the segmented customer are targetted to use the new
product. In case of Kyra, the targetted customers are the age group between 20-45, it is made for
female, the income group is limited from middle to high, specially for the women who are
suffering with the occupation of running out from home. Apart from that, it also includes the
customers who wants to be look good with glowing skin. This is the way through which
targetting is done for the customers.
Positioning
It is the step of establishing the organization among the customers. The new product does
not have so much position in the market but in the upcoming time it will surely gain the name
and fame among its targetted customers. The rivalry will certainly increase and the organization
will surely gain the advantage of it.
Financial Plan
Particulars 2019
Cash Flows From Investing Activities
Investments in property, plant, and equipment -1997
Property, plant, and equipment reductions 667
Acquisitions, net 587
Purchases of investments
Sales/Maturities of investments 19
Other investing charges
Net cash used for investing activities -724
Cash Flows From Financing Activities
Long-term debt issued 757
Long-term debt repayment -2096
Common stock issued
Repurchases of treasury stock
Cash dividends paid -2781
Other financing activities -8
Net cash provided by (used for) financing activities -4127
Net change in cash -4851
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Cash at beginning of period 1114
Cash at end of period -3737
Free Cash Flow
Capital expenditure -1997
Free cash flow 2492
Supplemental schedule of cash flow data
Cash paid for income taxes 1439
Cash paid for interest 215
Market Plan
In order to make the product available for the customers, the company is going to
introduce new product development. This will help them identifying the feasibility in the real
world. After that, there are various promotional channels which can be introduced by the new
product Kyra. The advertisement channel which will be best suitable for the company is social
media platform. This platform will allow the company to target its customers easily and speedily.
The Marketing Mix
Marketing mix is the procedure of identifying the feasibility of the new product in the
market. There are four P's through which feasibility of the new product Kyra can be evaluated.
Place:
It is the feature in which the place is identified in which the product is going to be
launched. In case of Kyra, the product is launched in UK. This will help the organization to
target the customers which have been identified by the organization.
Product:
The product used within the company is Kyra. This product is specified in removing the
dark spots of females. This will help them to erase them within just 2 weeks.
Price:
The pricing strategy is concluded in this section of the marketing mix. The pricing
strategy is also an important feature in placing the product into market. The pricing strategy of
the product is moderate pricing strategy. This will help the target customers to capture the
product of the company easily.
Promotion:
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