Team vogue final
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Team Vogue presents Beauty Insight, a start-up that provides personalized and unbiased beauty recommendations from experts. The business concept involves using customer preferences to provide customized product recommendations across various price points. Revenue would come from product sales and online advertisements. An analysis found the opportunity resonates with women ages 18-44 who are already buying beauty products online and interested in personalized recommendations from trusted experts.
Team vogue final
- 1. Team Vogue presents Instant, personalized and unbiased beauty recommendations from experts you can trust! Website: http://www.beauty-insight.com Kathryn Kagan Facebook: http://www.facebook.com/beautyinsight Mitesh Bohra Carter Reue Twitter: http://www.twitter.com/beauty_insight Shino Yamamoto YouTube: http://www.youtube.com/thebeautyinsight
- 2. Beauty Insight – As of Today
- 3. Team Vogue Business Concept Initial Business Concept Size of The Opportunity • Provide personalized • Untapped business recommendations of the best opportunity in beauty beauty products from a range recommendation services of different price points by and online product sales industry experts • Target Addressable Market • Revenue from product sales $12.6 billion and online advertisement • Served Available Market $6 • A start-up with a similar billion concept (ShoeDazzle) recently received $40 million in funding
- 4. Team Kathryn Kagan Mitesh Bohra Carter Reue Shino Yamamoto •10+ years •Co-founder and •Naval officer •Product experience in President of •IT and marketing, b Background advertising, sales Background InfoBeans Background Operations at Background usiness & marketing in the •Board of Directors Stryker development beauty industry at InnovizeTech Medical at Microsoft •Business concept •Sales •Industry knowledge •Technology •Marketing Expertise & Expertise & •Customer Expertise & Team Role •Network with Expertise & •Management Team Role relations Team Role •Project beauty experts Team Role •Entrepreneurship Management •Operations •Public relations experience
- 5. The Start - Business Model Canvas (1/5) Key Partners Key Activities Value Proposition Customer Customer Relationships Segments COSMETIC & SUPPLY CAPTURING CUSTOMER CUSTOMIZED SERVICE INTERACTIVE SERVICE BEAUTY ENTHUSIASTS COMPANIES PREFERENCES Customizing the perfect Combination of self-service Those who love products combination of products for and personal customer and know that that this is PUBLISHING HOUSES PERSONALIZED SERVICE clients. Tracking purchases service THE place to get all of their Beauty/Fashion/Gossip Build behind-the-scenes staff to understand the evolution favorite items and the magazines to provide one-on-one instant of their usage and be able ONLINE COMMUNITY hottest new trend messaging with customers. to offer them precisely what Customer “experts” feedback FASHION HOUSES and recommendations HIGH MAINTENANCE they need and want. Runway shows Key Resources Channels Clients who demand Beauty trends CREDIBILITY personal attention and INDUSTRY EXPERTS DIRECT customization for their SOCIAL NETWORKING Access to excellent artists RANGE OF PRODUCTS Delivery of products and beauty routine and well-trained staff with Offering the best products services unsurpassed product across different price points BEAUTY ADVERSE knowledge. to create the perfect CREATE AWARENESS Timid clients who are not “product prescription” PR through key partners. sure what to purchase and ONLINE PLATFORM Print, TV, online media and need some direction. They industry makeup artists want to have the category paired down VALUE DRIVEN Revenue ADVERTISING (60%) Cost Staff (most expensive) Structure Overhead for website Streams MARGINS ON SALE OF PRODUCTS COGS
- 6. Lessons Learned in Aug 2011 WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND Untapped business opportunity Conducted market analysis for Our value proposition resonates in beauty recommendation the US market: with Women: services and online product ‒ TAM $12.6 billion sales ‒ SAM $6 billion ‒ Personalized, unbiased beauty recommendations Target customers are: Validated business for products within your opportunities through: ‒ Beauty enthusiasts budget from beauty experts ‒ >530 online surveys you can trust ‒ High maintenance ‒ Personal interviews with ‒ Beauty adverse 91 women Larger addressable market: ‒ 13 beauty experts recruited ‒ Women in 18-44 ‒ High frequency Developed the initial web site design ‒ Already buying/researching online
- 7. Business Model Canvas (2/5) Key Partners Key Activities Value Proposition Customer Customer Relationships Segments INTERACTIVE SERVICE COSMETIC & SUPPLY CAPTURING CUSTOMER Personalized, unbiased BEAUTY ENTHUSIASTS Combination of self-service COMPANIES PREFERENCES recommendations for Women 18-44, urban, and personal customer products priced for your service already buying and/or PUBLISHING HOUSES PERSONALIZED SERVICE needs from beauty researching online, into Beauty/Fashion/Gossip Build behind-the-scenes staff experts you can trust cosmetics ONLINE COMMUNITY magazines to provide one-on-one instant Customer “experts” feedback messaging with customers CREDIBILITY HIGH MAINTENANCE FASHION HOUSES and recommendations FREQUENCY Runway shows Key Resources RANGE OF PRODUCTS Channels Clients who demand Beauty trends Offering the best products personal attention and INDUSTRY EXPERTS across different price points DIRECT SOCIAL NETWORKING customization for their Access to excellent artists to create the perfect Delivery of products and beauty routine. and well-trained staff with “product prescription” services unsurpassed product BEAUTY ADVERSE knowledge. Chemist, CREATE AWARENESS Timid clients who are not Dermatologist, Ingredient‟s PR through key partners. sure what to purchase and specialist Print, TV, online media and need some direction. They industry makeup artists want to have the category ONLINE PLATFORM paired down. VALUE DRIVEN Revenue SUBSCRIPTION MODEL OR PAY-PER-USE Cost Staff (most expensive) ADVERTISING (60%) Structure Overhead for website Streams MARGINS ON SALE OF PRODUCTS COGS
- 8. Lessons Learned in Sep 2011 WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND Primary target customers are: Validated hypothesis through: Another primary customer ‒ High frequency ‒ 40 customer interviews target identified: ‒ Beta customer onboarding ‒ High frequency Channel: ‒ >5 expert interviews (i.e. ‒ Less frequent, high ‒ Women want to access Google, Bare Essentials, volume services on mobile Smashbox) Channel: ‒ Women search for beauty recommendations Promotion to drive traffic: ‒ Women want to access ‒ Daily beauty tips on services at home/private Revenue stream: Facebook page ‒ They don‟t search, trust ‒ Subscription & Pay-per-use community feedback and would work the best word of mouth the most Revenue stream ‒ Other revenue model might work better (prepay)
- 9. Business Model Canvas (3/5) Key Partners Key Activities Value Proposition Customer Customer Relationships Segments INTERACTIVE SERVICE COSMETIC & SUPPLY CAPTURING CUSTOMER Personalized, unbiased Women 18-44, urban, Combination of self-service COMPANIES PREFERENCES recommendations for already buying and/or and personal customer products priced for your service researching online, into PUBLISHING HOUSES PERSONALIZED SERVICE needs from beauty cosmetics Beauty/Fashion/Gossip Build behind-the-scenes staff experts you can trust ONLINE COMMUNITY magazines to provide one-on-one instant HIGH VOLUME & HIGH Customer “experts” feedback messaging with customers FREQUENCY FASHION HOUSES and recommendations Clients who demand Runway shows Key Resources Channels personal attention and Beauty trends customization for their INDUSTRY EXPERTS DIRECT SOCIAL NETWORKING beauty routine Access to excellent artists and Web site (no mobile yet) well-trained staff with unsurpassed product CREATE AWARENESS knowledge, as well as skincare User community, social specialists such as media dermatologist. PR through key partners. CREATIVE & UX TEAM Print, TV, online media and ONLINE PLATFORM industry makeup artists. VALUE DRIVEN Revenue SUBSCRIPTION MODEL OR PAY-PER-USE Cost Staff (most expensive) Offer complementary consultation for the first-time Structure Overhead for website Streams users. Charge fee to access on-going services. COGS
- 10. Lessons Learned in Oct 2011 WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND We are doing well! We could Revisited our business model: Scalable business model: make this work. ‒ Explored simpler revenue ‒ Requires a Have multiple revenue models, like „Freemium‟ “Recommendation streams. ‒ Explored facial recognition rules-engine” that technologies (i.e. accumulates expertise ModiFace or open source) from beauty experts WHAT WE DIDN’T THINK Continued customer validation: ‒ Automated instant How would this scale? ‒ 20 more women recommendations Too many revenue models interviewed requires almost zero would confuse the customer. marginal cost ‒ Receiving feedback and beauty questions on FB Revenue model: Continued promotion on: ‒ Offer pre-paid ‒ Twitter, Slideshare in subscription and timed addition to Facebook auto-shipments Started building the website
- 11. Business Model Canvas (4/5) – MAJOR PIVOT Key Partners Key Activities Value Proposition Customer Customer Relationships Segments FACIAL RECOGNITION Build a massive beauty INSTANT, personalized, SOCIAL MEDIA Women 18-44, urban, & ONLINE MAKEUP ontology, taxonomy and unbiased Friends and friends of already buying and/or TECHNOLOGY attributes cross-linked recommendations for friends researching online, into with products in the products priced for your cosmetics buying in high COSMETIC & SUPPLY industry needs from beauty volume or high COMPANIES experts you can trust frequency who demand personal attention and Key Resources Channels customization for their beauty routine Beauty industry experts DIRECT with unsurpassed product Web site knowledge, as well as Mobile apps later skincare specialists such as dermatologist CREATIVE & UX TEAM RULES ENGINE VALUE DRIVEN Revenue FREEMIUM Cost Staff (most expensive) Structure Overhead for website Streams COGS
- 12. Lessons Learned in Nov 2011 WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND A minimal viable products for Developed additional features: 13-20 is not the right set yet step 1-3 is required for ‒ Call to actions for step 1-3 product validation (i.e. get Women “loved” the concept ‒ Beauty experts page paying customers) Developed promotion content: They were thrilled to hear More interactive content is ‒ Ran FB promotion for the about automated facial features needed to drive more traffic to new archetype recognition and makeup effects the site ‒ Video make-up tutorials We need to make the profile Possible archetype in 13-20 Participated in the Columbia capture more dynamic and age segment Venture Fair in NY specific to the target variations ‒ 3 VCs asked for follow-up We need seed funding to Conducted customer validation proceed! event: ‒ 20 women at Stryker (approx. 15 mins each)
- 13. Business Model Canvas (5/5) Key Partners Key Activities Value Proposition Customer Customer Relationships Segments FACIAL RECOGNITION Build a massive beauty INSTANT, personalized, SOCIAL MEDIA Women 18-44, urban, & ONLINE MAKEUP ontology, taxonomy and unbiased Friends and friends of already buying and/or TECHNOLOGY attributes cross-linked recommendations for friends researching online, into with products in the products priced for your cosmetics buying in high COSMETIC & SUPPLY industry needs from beauty volume or high COMPANIES experts you can trust frequency who demand personal attention and Key Resources Women are more Channels customization for their interested in the look beauty routine $$$ NEED SEED MONEY and the “how to” than in DIRECT Women 13- Beauty industry experts products Web site 20, urban, researching with unsurpassed product Mobile apps later online knowledge, as well as skincare specialists such as dermatologist CREATIVE & UX TEAM RULES ENGINE VALUE DRIVEN Revenue FREEMIUM Cost Staff (most expensive) Structure Overhead for website Streams COGS
- 14. Lessons Learned – Final Thoughts VIABILITY OF WHAT’S NEXT WHAT WE LEARNED BUSINESS CONCEPT BEYOND THE COURSE Getting out of the building is vital Feedback from VC confirmed We need $250K to develop a to shaping business model that our business model is beauty recommendation engine Blogging works – 58 posts, 24 unique and test the viability of our comments from mentors “Great concept, no one else in the business model with early Get expert advice whenever space is doing this and it really fills a adaptors possible (i.e. teaching team, need. If you get an offer from mentors, industry experts) Sephora or Ulta-take it! They could We plan to follow up with VCs easily try to replicate your idea and from the venture fair as well as Don‟t afraid to change the would rather pay you than take the business model if it makes others to seek funding sense (i.e. Jim‟s advice for time to and money to recreate it facial recognition technology) themselves.” Drew Baird, Vice President You can build MVP at low cost; Star Avenue Capital Have a working MVP is a key to get customer validation started User feedback has been and to get VCs interested positive, at 464 FB Likes, we Teamwork, teamwork, teamwork believe there is consumer interest in this and it is worth pursuing as a business
- 15. The fun journey has just begun…
- 16. Thank You • Steve for challenging us to do better all the way through Teaching • Jim for the come-to-Jesus moment! • Oren for providing unique advice and getting it! Team • Jon for the great advice from a VC perspective! • Bhavik for keeping us on track • Rashmi and Adi for making yourselves available Mentors throughout the course and providing valuable, honest feedback • Jeremiah for introducing us to April and her team at Classmates Google • All for helping us with the survey and interviews
- 18. The Start - Business Model Canvas (1/5) Key Partners Key Activities Value Proposition Customer Customer Relationships Segments COSMETIC & SUPPLY CAPTURING CUSTOMER CUSTOMIZED SERVICE INTERACTIVE SERVICE BEAUTY ENTHUSIASTS COMPANIES PREFERENCES Customizing the perfect Combination of self-service Those who love products combination of products for and personal customer and know that that this is PUBLISHING HOUSES PERSONALIZED SERVICE clients. Tracking purchases service THE place to get all of their Beauty/Fashion/Gossip Build behind-the-scenes staff to understand the evolution favorite items and the magazines to provide one-on-one instant of their usage and be able ONLINE COMMUNITY hottest new trend messaging with customers. to offer them precisely what Customer “experts” feedback FASHION HOUSES and recommendations HIGH MAINTENANCE they need and want. Runway shows Key Resources Channels Clients who demand Beauty trends CREDIBILITY personal attention and INDUSTRY EXPERTS DIRECT customization for their SOCIAL NETWORKING Access to excellent artists RANGE OF PRODUCTS Delivery of products and beauty routine and well-trained staff with Offering the best products services unsurpassed product across different price points BEAUTY ADVERSE knowledge. to create the perfect CREATE AWARENESS Timid clients who are not “product prescription” PR through key partners. sure what to purchase and ONLINE PLATFORM Print, TV, online media and need some direction. They industry makeup artists want to have the category paired down VALUE DRIVEN Revenue ADVERTISING (60%) Cost Staff (most expensive) Structure Overhead for website Streams MARGINS ON SALE OF PRODUCTS COGS
- 19. Business Model Canvas (2/5) Key Partners Key Activities Value Proposition Customer Customer Relationships Segments INTERACTIVE SERVICE COSMETIC & SUPPLY CAPTURING CUSTOMER Personalized, unbiased BEAUTY ENTHUSIASTS Combination of self-service COMPANIES PREFERENCES recommendations for Women 18-44, urban, and personal customer products priced for your service already buying and/or PUBLISHING HOUSES PERSONALIZED SERVICE needs from beauty researching online, into Beauty/Fashion/Gossip Build behind-the-scenes staff experts you can trust cosmetics ONLINE COMMUNITY magazines to provide one-on-one instant Customer “experts” feedback messaging with customers CREDIBILITY HIGH MAINTENANCE FASHION HOUSES and recommendations FREQUENCY Runway shows Key Resources RANGE OF PRODUCTS Channels Clients who demand Beauty trends Offering the best products personal attention and INDUSTRY EXPERTS across different price points DIRECT SOCIAL NETWORKING customization for their Access to excellent artists to create the perfect Delivery of products and beauty routine. and well-trained staff with “product prescription” services unsurpassed product BEAUTY ADVERSE knowledge. Chemist, CREATE AWARENESS Timid clients who are not Dermatologist, Ingredient‟s PR through key partners. sure what to purchase and specialist Print, TV, online media and need some direction. They industry makeup artists want to have the category ONLINE PLATFORM paired down. VALUE DRIVEN Revenue SUBSCRIPTION MODEL OR PAY-PER-USE Cost Staff (most expensive) ADVERTISING (60%) Structure Overhead for website Streams MARGINS ON SALE OF PRODUCTS COGS
- 20. Business Model Canvas (3/5) Key Partners Key Activities Value Proposition Customer Customer Relationships Segments INTERACTIVE SERVICE COSMETIC & SUPPLY CAPTURING CUSTOMER Personalized, unbiased Women 18-44, urban, Combination of self-service COMPANIES PREFERENCES recommendations for already buying and/or and personal customer products priced for your service researching online, into PUBLISHING HOUSES PERSONALIZED SERVICE needs from beauty cosmetics Beauty/Fashion/Gossip Build behind-the-scenes staff experts you can trust ONLINE COMMUNITY magazines to provide one-on-one instant HIGH VOLUME & HIGH Customer “experts” feedback messaging with customers FREQUENCY FASHION HOUSES and recommendations Clients who demand Runway shows Key Resources Channels personal attention and Beauty trends customization for their INDUSTRY EXPERTS DIRECT SOCIAL NETWORKING beauty routine Access to excellent artists and Web site (no mobile yet) well-trained staff with unsurpassed product CREATE AWARENESS knowledge, as well as skincare User community, social specialists such as media dermatologist. PR through key partners. CREATIVE & UX TEAM Print, TV, online media and ONLINE PLATFORM industry makeup artists. VALUE DRIVEN Revenue SUBSCRIPTION MODEL OR PAY-PER-USE Cost Staff (most expensive) Offer complementary consultation for the first-time Structure Overhead for website Streams users. Charge fee to access on-going services. COGS
- 21. Business Model Canvas (4/5) – MAJOR PIVOT Key Partners Key Activities Value Proposition Customer Customer Relationships Segments FACIAL RECOGNITION Build a massive beauty INSTANT, personalized, SOCIAL MEDIA Women 18-44, urban, & ONLINE MAKEUP ontology, taxonomy and unbiased Friends and friends of already buying and/or TECHNOLOGY attributes cross-linked recommendations for friends researching online, into with products in the products priced for your cosmetics buying in high COSMETIC & SUPPLY industry needs from beauty volume or high COMPANIES experts you can trust frequency who demand personal attention and Key Resources Channels customization for their beauty routine Beauty industry experts DIRECT with unsurpassed product Web site knowledge, as well as Mobile apps later skincare specialists such as dermatologist CREATIVE & UX TEAM RULES ENGINE VALUE DRIVEN Revenue FREEMIUM Cost Staff (most expensive) Structure Overhead for website Streams COGS
- 22. Business Model Canvas (5/5) Key Partners Key Activities Value Proposition Customer Customer Relationships Segments FACIAL RECOGNITION Build a massive beauty INSTANT, personalized, SOCIAL MEDIA Women 18-44, urban, & ONLINE MAKEUP ontology, taxonomy and unbiased Friends and friends of already buying and/or TECHNOLOGY attributes cross-linked recommendations for friends researching online, into with products in the products priced for your cosmetics buying in high COSMETIC & SUPPLY industry needs from beauty volume or high COMPANIES experts you can trust frequency who demand personal attention and Key Resources Women are more Channels customization for their interested in the look beauty routine $$$ NEED SEED MONEY and the “how to” than in DIRECT Women 13-20, urban, Beauty industry experts products Web site researching online with unsurpassed product Mobile apps later knowledge, as well as skincare specialists such as dermatologist CREATIVE & UX TEAM RULES ENGINE VALUE DRIVEN Revenue FREEMIUM Cost Staff (most expensive) Structure Overhead for website Streams COGS
Editor's Notes
- #4: Slide 1 – Team Name, with a few lines of what your initial idea was and the size of the opportunity
- #5: Slide 2 – Team members – name, background, expertise and your role for the team
- #6: Slide 9 - Business Model Canvas Version 3 (use the Osterwalder Canvas do not make up your own).
- #8: Slide 9 - Business Model Canvas Version 3 (use the Osterwalder Canvas do not make up your own).
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- #12: Slide 9 - Business Model Canvas Version 3 (use the Osterwalder Canvas do not make up your own).
- #14: Slide 9 - Business Model Canvas Version 3 (use the Osterwalder Canvas do not make up your own).
- #19: Slide 9 - Business Model Canvas Version 3 (use the Osterwalder Canvas do not make up your own).
- #20: Slide 9 - Business Model Canvas Version 3 (use the Osterwalder Canvas do not make up your own).
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