Entrepreneurial Opportunities: Market Gap Analysis in Beauty Cosmetics

This report delves into the identification and evaluation of entrepreneurial opportunities within the beauty cosmetics industry. It begins with an introduction to entrepreneurship and the selection of beauty cosmetic products as the focus. The report then examines various sources of entrepreneurial ideas and innovation, including macro-environmental factors, social and technological influences, and Drucker's sources of innovation. Following this, it explores market gap analysis, customer identification, market segmentation (behavioral, demographic, and geographic), and the analysis of product and service offerings. Furthermore, the report utilizes Porter's five forces model to assess the industry environment. The report also includes primary and secondary research methods, as well as a questionnaire. The report concludes with a SWOT analysis and an evaluation of the competitive market environment within the beauty cosmetics sector.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
P1 Evaluation of different sources of entrepreneurial ideas and innovation.....................................3
P2 Explain rational and market gap by using relevant tools and technique.......................................5
TASK 2....................................................................................................................................................7
P3 Evaluation of gap analysis with specific entrepreneurial idea......................................................7
P4 Interpret data appropriately to provide evidence of market potentials.......................................9
TASK 3..................................................................................................................................................11
P5 Implement of SWOT framework that support objective assessment of entrepreneurial idea. . .11
P6 Evaluate the competitive market environment..........................................................................12
CONCLUSION.......................................................................................................................................13
REFERENCES.........................................................................................................................................14

INTRODUCTION
Entrepreneur is the person who bear risk to start or launch own business which help to
generate profits from different operations. It is a exercise that help to design business and
then start it into actual process which signify its activities that are offer to market. Usually in
this case opportunities are identified that are present in market an entrepreneur convert this
into potential market. It help to manufacture new goods and services by managing and
organising different resources. In this present assignment report beauty cosmetic products are
chosen that include highlighters, moisturiser, eye brow and make up remover etc. The major
motive of this report is to explore ideas and innovation which determine the market gap
between company and market by implementing relevant tools and techniques. Along with
this SWOT is also executed which help to evaluate market environment and to predict its
viabilities and capabilities.
TASK 1
P1 Evaluation of different sources of entrepreneurial ideas and innovation
In order to identify different sources of idea and innovation are depend on the market
and customer needs and wants. It signify this process require strong research and
development which help to examine needs of customer. The changes that are incurred in
external environment create different opportunities that are mention below.
Macro environment- The manufacture and development of beauty products depend on
different factors that are relate with particular sector and region. It specify that each beauty
product require different innovation which is mention below:
Social factors- In present scenario customers are attracting towards unique products
that help to consume different products it determine that customer requires constant changes
in products to satisfy their need and demand. Now a days industry are moving towards green
environment (Grégoire and Shepherd, 2012). As in this entrepreneur develop beauty skin
products that does not impact negatively on environment.
Technological factor- Business are operating its activities and delivering their
products at globalised level. This process is implement by the sustenance of technology
which signify the importance of technology in present scenario. In the case of beauty

products it is essential to adopt technology in manufacturing process because it help to match
to achieve target quickly.
Drucker’s sources of innovation
Entrepreneur who predict market opportunity and modify its products and services to
match them with the needs of customer. For this case entrepreneur who deal with beauty
products need to develop business idea with different sources of innovation which is describe
by Peter F Drucker as below:
Unexpected- This innovation came in market with uncertainty it is sudden change to
that make product different from its substitute. In context of beauty cosmetic product it is
sudden change that take place by chance. For this new ideas combine together to develop
product in market.
Market structure- For an innovation market structure work as chance as they all are
inter-relate with each other. Like beauty cosmetic products use world wide web to improve
the product. This create booming stage for the development of beauty products which signify
its importance among overall world.
Incongruities- Entrepreneur face different challenges and clashes that take place in
process of innovation. For this individual explore different alternatives that help to build
different opportunities in the case of beauty cosmetic product to produce.
Necessity- It is essential need of market that exists in the deep mind set of think. For
this usually company use innovation as base which signify needs of customer. Beauty
cosmetic product is processed by thinking of an entrepreneur to fulfil their needs with new
ways. Idea is created by an entrepreneur to satisfy consumer needs.
Demographics- This source of innovation is generate on the lifestyle, society etc. with
this entrepreneur develop strategy which aware customers about benefits of beauty products.
It today era this work as motivation as it help to determine need of customer based on their
location.
Changing perception- The change of perception in the mind of consumer give birth to
innovation (Elenurm, 2012). It is the change that lead to success in case of beauty products.
This change perception develop opportunity for entrepreneur to explore new market for the
product.

From the above paragraph it is concluded that an organisation has to maintain several sources
through which they maiantain new ideas. It will increase qualitiy of their products through
which it is easy to maintain entreprenuerial innovation and accomploish company goal
quickly. Along with this Drucker's innovation help to understand the market and to predict
upcoming opportunities in market.
P2 Explain rational and market gap by using relevant tools and technique
The ideas that are defined by entrepreneur are developed specifically for target
market. It helps to identify market gap effectively with execution of tools and technique. In
context of beauty cosmetic, entrepreneur identify demand and manufacture product which
meet with customer demand
Identifying customer
An entrepreneur create or lead different ideas that help to determine needs of
customer. It help to deliver right products or services at right time. Entrepreneurial ideas are
developed for specific target segment which determine it is manufactured for a group of
particular people. In context of beauty cosmetic this product is developed to attract large
number of customers it is formulated to improve opportunities that help to increase its sell as
this product are developed for target people. For this it is developed for particular group that
are made of age, gender, income etc.
Market Segmentation
To segment market different potential customers are identified that share similar
characteristics. Customers share wide aspect that create several groups and execute strategy
for their particular group. For creating new ideas and to identify new innovation customer are
analysed that respond on similar items. These types of innovation are defined below:
Behavioural segmentation- This is defined as process by which groups are divided
into smaller groups that has same buying behaviour. For the case of beauty cosmetic it
include brand loyalty, purchase pattern etc. it help to communicate with different customer
which determine their behaviour on the needs of customers.
Demographic segmentation- For this market segment it is necessary to find out age,
religion, gender etc. of different customers. In present scenario beauty cosmetic are dealing in
wide range of products it signifies that they cover large area of market. This helps

organisation to target their customer between all segments. Under this beauty sector it is
divided among specific groups.
Geographic segmentation-The geographic segment is concerned with board target
audience that are located in specific area. This marketing approach that start with small
venture deal in small groups which show that their business deal in local market. For beauty
cosmetic entrepreneur it is necessary that form this small segmentation they generate high
profits. As it help to identify community size, season and customer preference for their
customer (Eesley and Roberts, 2012).
Product and services
Tangible products- The development of tangible product it perceived by customer
with touch. In this customer has directly impact on products with features such as drop and
pick. In the case of beauty products an entrepreneur manufacture products that are easy to
handle and help customer to consume it easily.
Intangible products- Services that are provided by an entrepreneur or individual to
customers are usually intangible. This factor includes price, goodwill, brand image etc. like
for beauty cosmetic it will be growing industry that develop with expansion of new features.
Industry environment:
The environment of an industry is impacted by economic, political and social
conditions of market. Products of beauty cosmetic is based on view and ideas of an
entrepreneur that is impacted by economic cycles of company.
Porter’s five forces mode
Porter’s model is examined by toolkit that inter-relate with planning which is used to
increase profits for firm which govern the growth rate of an industry. With this an
entrepreneur is able to study overall market that relate with beauty cosmetic sector. The
major use of this model is to identify gap that occur when new product is launched in market.
Threats of new entrants- An industry is hold all companies and combine work of them
together so that they identify growth and size of the industry. It help companies to earn
profits for long term and sustain their business for longer period. In case of beauty sector it is

essential that company develop their infrastructure and adopt new technology which help
them to take an competitive advantage among its rivals.
Threats of substitutes- Large number of companies develop similar products that has
similar characteristic and offer their services or product to satisfy need of equal group and
customers. These impacts on entrepreneur by decide their low price which attract customer to
purchase company new product. As beauty cosmetic creates their customer brand loyal and
decrease increase their sale. In this risk is incurred by revenue factor and automation in
technology.
Bargaining power of buyers- The price of product is consider with different factors in
this the major factor is power that hold by customer. For case of beauty cosmetic
management easily switch on different buyers that are not impact by price factor. But in
competitive market consumer enjoy more purchasing power which administrate that customer
has more alternative to buy singular product (Davis, 2012).
Bargaining power of supplier- In this case an entrepreneur has to face difficult
situation. In context of beauty cosmetic it is essential for them to purchase raw material to
complete the process of developing a finished product. For this entrepreneur develop healthy
relations with its supplier. As is raw material is not deliver by supplier then it slow down the
process of manufacturing products. For these contracts, rules and regulation are factor that
help entrepreneur to complete production process effectively.
Competitive rivalry- The competitive force is mention as rivals or other companies
that exist in market and give healthy competition to beauty cosmetic. In present scenario
companies formulate different strategy to attract more number of customers. It help them to
increase sale of its products. For the entrepreneur of beauty cosmetic they execute defensive
strategy that helps to enter their product in competitive products.
TASK 2
P3 Evaluation of gap analysis with specific entrepreneurial idea
For better understanding of market a particular group of individual do systematic
research. It helps them to identify the need of customer and innovate their product according
to the research. This research is based on primary or secondary data which help to identify
customer and objective specifically. Market research for beauty cosmetic is mention below:

Primary research- The primary research is done by interacting directly with consumer
or individuals. For this research team developed questionnaire, interview, survey etc. In case
of beauty cosmetic it is beneficial because it help to establish new product in market.
Secondary research- It is done on the base of data that is already available in
organisation. For the completion of this research data is available in library, reports and on
internet etc. which explain scope in beauty industry briefly and help to formulate new
business idea.
Questionnaire
Name:
Address:
Age:
Q1 Are you aware about beauty cosmetic product or not?
Yes
No
Q2 Is you are familiar about product of Beauty Cosmetics?
Yes
No
Q3 Did you are providing satisfaction?
Yes
No
Q4 Is their having issues related with Beauty Cosmetics?
Yes
No
Q5 Do you want product from online marketing sources?
Yes
No
1) Are you aware with the concept of “Globalisation'? Frequency

a. Yes 35
b. No 15
Q1 Are you aware about beauty cosmetic product or not?
Yes
No
6
4
Q2 Is you are familiar about product of Beauty Cosmetics?
Yes
No
8
2
Q3 Did you are providing satisfaction?
Yes
No
9
1
Q4 Is their having issues related with Beauty Cosmetics?
Yes 8

No 2
Q5 Do you want product from online marketing sources?
Yes
No
8
2
P4 Interpret data appropriately to provide evidence of market potentials
Q1 Is Beauty Cosmetic product is known about you or not?
Yes 6
No 4
Mean 5
Median 5
Mode 2

Yes No
0
1
2
3
4
5
6
Series1
6
4
Interpretation- In the total respondent 6 of the customer are aware about company product
other 4 does not aware about beauty cosmetic.
Q2 Is you are familiar about product of Beauty Cosmetics? Frequency
Yes 8
No 2
Mean 6
Median 6
Mode 0

Yes No
0
1
2
3
4
5
6
7
8
Frequency
8
2
Interpretation- From above observation it is identified that 8 respondent are familiar with
product while other 2 are not in favour.
Q3 Did you are providing satisfaction?
Yes 9
No 1
Mean 2.5
Median 5.5
Mode 1