Introduction
The Dudebox project is a business idea that was developed after a detailed market research revealed despite the huge demand, men still find it difficult accessing personal hygiene and grooming products in one package. It was revealed that although these products exist, they have not been bundled in one package that meets all the needs and expectations of the male clientele. This huge market gap created the interest to develop a business that would take advantage of the opportunity. The Dudebox has three bundles, Basic, Premium, and Elite packages, costing $15, $20, and $25 per month or $117, $150, and $180 per year respectively. The aim of the study was to develop an actionable business proposal and within the budget that had been made available. Accessing data during this period of COVID-19 pandemic was challenging, but the study was a success.
World Market Trends
The market research revealed that the majority of men in the corporate world have become increasingly sensitive about their personal hygiene and grooming. However, many cosmetics companies still focus more on female than male clientele. Globally, the population of men is relatively equal to that of men, but they have a greater purchasing power than women (Mei & Wang, 2021). As such, they present a huge market potential that this company will not ignore. In Europe, the United Kingdom, Germany, France, and Italy will be some of the targeted market. In North and South America, Canada, Mexico, and Brazil will be the main markets, besides the United States which is the home country. In Asia, it will target China, Japan, and India, while in Africa, Egypt, South Africa, Nigeria, and Kenya will be the main targets. The Dudebox will rely on manufacturers of these grooming products such as Procter & Gamble Company, Henkel AG & Co. KGaA, and Head & Shoulders to source for these products.
The aim of this new company is to achieve rapid growth in the local market of the United States before expanding regionally and then globally. When it starts its operations, it will primarily focus in the market within the state of Illinois, with the headquarter being in Chicago. It will then spread to the neighboring states before expanding to the entire country. The plan is to spread to the regional markets of Canada and Mexico within the next 2-3 years of operation. The next target will be Europe, before moving to Asia, South America, and finally Africa. Factors such as the market size, purchasing power of customers, and political/legal environment in the foreign markets will influence this growth. The management will embrace market participation to ensure that it does not exploit small-scale suppliers but instead work closely with them to achieve mutual growth.
Technology is redefining the retailing sector around the world. Traditionally, people had to visit brick-and-mortar stores such as Walmart to purchase items that they need. However, online retailing through giant online retailers such as Amazon.com and eBay has gained massive popularity. Online travel companies such as Uber are also getting into this industry through the Uber-Eats applications (Coad & Storey, 2021). The Dudebox will need to monitor, understand, and embrace these emerging technologies to ensure that it remains competitive. New tendencies caused by these new technologies and major global events such as COVID-19 pandemic must also be monitored for the firm to know how to evolve accordingly.
The Local Market
The initial market analysis that was conducted showed that the local market in the United States has a number of characteristics, which are similar to many other countries around the world. For instance, it was a global phenomenon that men have a higher purchasing power than women, which is a benefit the Dudebox will enjoy. Both in the United States, Canada, and European countries, there is a relatively large population of the middle class with an attractive purchasing power. Government policies and regulations about business operations are relatively the same in these countries. The main difference was noticed between the US and China in terms of government’s control of business activities. Chinese government has a stronger power in defining operations of a firm. The purchasing power in Africa and parts of Asia is significantly lower than that in the US.
The Dudebox seeks to solve a common problem that men face when they want to purchase personal hygiene and grooming products. It seeks to develop 3 packages, all of which have all the personal hygiene products plus extra products based on a client’s personal needs. Men will no longer have to spend time sampling these products from various retailers because they will be bundled up in one package and delivered to them conveniently. The market research had confirmed the viability of the targeted market segment in terms of its size and the purchasing power.
The analysis of the local market reveals that there is a huge potential for growth. The political environment has been stable, which is conducive for the Dudebox’s growth. Economically, the United States has enjoyed a long period of growth, which means that purchasing power of the targeted customers is high. The social environment in the country, especially the emerging trend where men have become increasingly conscious about their physical image, will benefit the growth of the company. emerging technology is also redefining the approach that firms take to deliver their products to their customers, and this new firm will need to adjust accordingly. The United States has enacted policies meant to protect its natural environment. The company will need to ensure that its operations do not pollute the environment (Szaky, 2019). Legally, the country has strict laws meant to protect consumers, the government, and business entities from unfair practices.
Objective Customer and Value Proposition
The primary aim of the marketing department of this firm is to embrace customer-sensitive strategies that can enable it attract and retain a large pool of loyal customers. It was based on Customer Centric Model (Lazenby, 2018). The firm seeks to have an effective feedback mechanism through social media platforms. It also seeks to empower its frontline workers to ensure that they can effectively handle customers’ needs. The department of marketing should be effectively financed to enable it achieve its strategic objectives. The market research has identified specific characteristics of customers that make them attractive. The company will target adult male clients who are in formal employment in North America, Europe, Asia, South America, and Africa. The product will target men with varying lifestyle.
It was critical to have a value proposition that would help define a positive perception of customers towards the company’s brand and its products. In order to develop a unique value proposition, the management of the Dudebox focuses on what it does well, what competitors do well, and what customers need and care about (Simon & Fassnacht, 2019). The goal is to use unique capabilities of the firm to outperform rivals in meeting customers’ expectations in the best way possible. The strategy will enable the company to attract and retain a large pool of customers. They will be constantly reminded that the company will protect their interests instead of just focusing on making profits and achieving growth.
Company Structure and Processes
The Dudebox needs a clearly defined company structure that not only defines the leadership of the company but also the roles that have to be conducted by specific leaders. At the top of the leadership structure will be the chief executive officer, who will have the company secretary as the chief legal advisor. The CEO will be supported by departmental heads responsible for various operations within the firm. As shown in figure 10 of the report, the marketing director, finance director, logistics and procurement manager, and the human resource manager. At the time of making its initial entry into the market, the company will have a total of 34 employees. The number is expected to growth rapidly as the firm expands its operations.
The United States’ government has a set of rules and regulations that companies have to follow when they intend to start operating in a given market. The management of the Dudebox will start by ensuring that all the rules and regulations set by the government are complied with. It will make formal applications to relevant government departments, invite government agents for the supervision of the facility, and wait for the approvals and government permits before starting operations. The mission of this new firm is to empower men by increasing their confidence and performance through personal grooming and hygiene products. Its principal values will include integrity, accountability, diversity, quality, leadership, passion, and collaboration.
The Dudebox has gone through most f the stages of product development. The first one was idea generation after the initial market research revealed that there was a gap that needed to be filled. The second step was screening of the idea to determine its viability in the local and international market. The third step involved concept development and testing, where the three packages (basic, premium, and elite) were developed. The next step involved marketing strategy and development where the team did market research and developed pricing for each of these packages. The team had also conducted a business analysis to determine the path that the new firm will take when it starts operations. The next step is product development, and the company has identified products that will be available in each package. Test marketing and commercialization are yet to be done. Using the SWOT model, the report has identified strengths and weaknesses of the firm, and opportunities and threats in the market.
Marketing Plan
The management of the Dudebox needed to develop a mission that would guide the path it would take in its operations. The mission of the firm is to be the leading provider of hygiene and personal care products for men. For the firm to achieve this mission, it was equally important for the firm to have effective marketing strategies. The marketing department will use both the traditional mass media and the social media platforms to pass its promotional messages to its clients. About 75% of the budget will go to social media while the remaining 25% will be spent on mass media. Facebook, YouTube, and WhatsApp will be the preferred social media platforms. On the other hand, Radio and television commercials will be prioritized in the mass media segment.
Branding is critical for a firm because it helps in its identification. The Dudebox has developed a brand image that it will be using in the market. Figure 12 in the report shows the brand image, with logo, colors, images, and brand mantra clearly defined. The management has also developed a positioning strategy that will be used to achieve the intended goals of the firm. It will be positioned as a brand that offer quality products in the most convenient way. Convenience will be one of the unique selling points for the firm. The pricing policy took into consideration the purchasing power of the targeted customers and the need to create an image of high quality products for clients. The pricing of the products has been set at slightly more than the market average to emphasize on quality that is offered.
The sales and marketing unit of this firm understands the significance of having an effective distribution channel to ensure that products reach customers in time and at the lowest cost possible. As Mei and Wang (2021) suggests, the shorter the distribution channel, the lesser the cost and the greater the efficiency. As such, the company will use the Producer -Retailer (The Dudebox)- Consumer strategy. It will be getting these products directly from producers, then selling them directly to consumers. The company will also use a diverse promotional strategy to reach a wide audience. Advertising, sales promotion, direct marketing, personal selling, sales promotion, and public relations will all help in promoting the company’s brand and its products.
The company has developed a product design that was based on the needs and expectations of customers. The personal hygiene and grooming products have been bundled in three packages, reflecting needs and purchasing power of the targeted customers in each class. Although the firm is not manufacturing these products, hence may not define their individual designs, it has developed a unique package that is unlike what is available in the market. The strategy is based on a market data that had been collected in the initial research. The goal was to understand tastes and preferences of customers and meet them in the best way possible to facilitate growth of the company.
Economic and Financial Plan
The finance department had to develop an economic and financial plan to define how the firm would spend its resources to achieve specific financial objectives. One of the critical analysis that had to be conducted was the payback period. The investors and financiers of the firm would be interested in knowing when they will recoup their investment. The analysis shows that if all goes as expected, the company will break-even in about 2 years. Within this period, the investments made in the project will be recovered through sales of the company. a budget was developed of USD 1,950,000 of the available USD 2,000,000.
The finance department had to determine the profitability of the firm as a way of determining its financial viability. The financial statements developed, especially the profit and loss (P&L) account show that in its first year of operations, the company will make a net loss. The loss is attributed to the heavy initial investment that the firm has to make and challenges that the firm will face as a new company. However, it will make a quick recovery by the end of second financial year when it will start making net profits. The analysis of assets and liabilities, as shown in the firm’s balance sheet, shows that as it starts its operations, a significant amount of the firm’s assets will be financed through long-term loans.
The company’s finance department also had to calculate the return on investment as a way of convincing investors about the viability of the project. As shown in the ROI analysis, it is evident that the value of investment outweighs its cost. It means that the activities of the company will be generating a greater value than that cost that will be needed to finance them. The primary source of capital for this company will be direct investment that will be made by the business owner and a long-term loan that will be obtained from the relevant financial institutions. It is expected that as the firm expands its operations nationally, regionally, and internationally, it will be able to attract investors to finance its expanded operations.
Conclusions
The Dudebox project is a business idea that focuses on offering personal hygiene products and other extras to male clients. Although men have a high purchasing power and have become sensitive about their personal grooming, especially those in the corporate world, cosmetic and related companies have failed to meet their needs in the best way possible. The idea is to create bundles of these personal hygiene products and present them in 3 packages based on the demand and purchasing power of customers. The goal is to ensure that men can access all these products with ease despite the limited time they have to shop. The Dudebox business project will have a significant impact on the business owner and investors who will benefit from its profits. It will benefit men who will have access to products they need with ease. The government will benefit from the taxes and the community will enjoy new employment opportunities.
References
Coad, A., & Storey, D. (2021). Taking the entrepreneur out of entrepreneurship. International Journal of Management Reviews, 22(4), 378-407.
Lazenby, K. (2018). The strategic management process: A South African perspective. Van Schaik Publishers
Mei, M., & Wang, T. (2021). Place and corporate philanthropy: A systematic review. International Journal of Management Reviews, 22(4), 310-324.
Simon, H., & Fassnacht, M. (2019). Price management: Strategy, analysis, decision, implementation. Springer.
Szaky, T. (2019). The future of packaging: From linear to circular. Berrett-Koehler Publishers.