Team vogue final

Instant, personalized and unbiased beauty recommendations from experts you can trust!

Team Vogue presents

Website: http://www.beauty-insight.com Facebook: http://www.facebook.com/beautyinsightTwitter: http://www.twitter.com/beauty_insightYouTube: http://www.youtube.com/thebeautyinsight

Kathryn KaganMitesh BohraCarter ReueShino Yamamoto

http://www.beauty-insight.com/

http://www.beauty-insight.com/

http://www.facebook.com/beautyinsight

http://www.twitter.com/beauty_insight

http://www.twitter.com/beauty_insight

http://www.youtube.com/thebeautyinsight

Beauty Insight – As of Today

Team Vogue Business ConceptInitial Business

Concept • Provide personalized

recommendations of the best beauty products from a range of different price points by industry experts

• Revenue from product sales and online advertisement

• A start-up with a similar concept (ShoeDazzle) recently received $40 million in funding

Size of The Opportunity

• Untapped business opportunity in beauty recommendation services and online product sales

• Target Addressable Market $12.6 billion

• Served Available Market $6 billion

Team

•10+ years experience in advertising, sales & marketing in the beauty industry

Background

•Business concept

•Industry knowledge

•Network with beauty experts

•Public relations

Expertise & Team Role

•Co-founder and President of InfoBeans

•Board of Directors at InnovizeTech

Background

•Technology•Management •Entrepreneurship experience


•Naval officer•IT and Operations at Stryker Medical

Background

•Sales•Customer relations

•Operations


•Product marketing, business development at Microsoft

Background

•Marketing•Project Management

Expertise & Team

Role

Kathryn Kagan Mitesh Bohra Carter Reue Shino Yamamoto

The Start - Business Model Canvas (1/5) Key Partners Key Activities Value Proposition

Customer Relationships

Customer Segments

Cost Structure

Revenue

Streams

COSMETIC & SUPPLY COMPANIES

PUBLISHING HOUSESBeauty/Fashion/Gossip magazinesFASHION HOUSESRunway showsBeauty trendsSOCIAL NETWORKING

CUSTOMIZED SERVICECustomizing the perfect combination of products for clients. Tracking purchases to understand the evolution of their usage and be able to offer them precisely what they need and want. CREDIBILITY

RANGE OF PRODUCTSOffering the best products across different price points to create the perfect “product prescription”

INTERACTIVE SERVICECombination of self-service and personal customer service ONLINE COMMUNITYCustomer “experts” feedback and recommendations

CAPTURING CUSTOMER PREFERENCES

PERSONALIZED SERVICEBuild behind-the-scenes staff to provide one-on-one instant messaging with customers. INDUSTRY EXPERTSAccess to excellent artists and well-trained staff with unsurpassed product knowledge. ONLINE PLATFORM

VALUE DRIVENStaff (most expensive)Overhead for websiteCOGS

ADVERTISING (60%)

MARGINS ON SALE OF PRODUCTS

DIRECTDelivery of products and servicesCREATE AWARENESSPR through key partners. Print, TV, online media and industry makeup artists

Key Resources Channels

BEAUTY ENTHUSIASTSThose who love products and know that that this is THE place to get all of their favorite items and the hottest new trendHIGH MAINTENANCEClients who demand personal attention and customization for their beauty routineBEAUTY ADVERSETimid clients who are not sure what to purchase and need some direction. They want to have the category paired down

Untapped business opportunity in beauty recommendation services and online product sales

Target customers are: ‒ Beauty enthusiasts‒ High maintenance ‒ Beauty adverse

Lessons Learned in Aug 2011WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND

Conducted market analysis for the US market:

‒ TAM $12.6 billion‒ SAM $6 billion

Validated business opportunities through:

‒ >530 online surveys ‒ Personal interviews with

91 women‒ 13 beauty experts

recruited Developed the initial web site

design

Our value proposition resonates with Women:

‒ Personalized, unbiased beauty recommendations for products within your budget from beauty experts you can trust

Larger addressable market:‒ Women in 18-44‒ High frequency‒ Already

buying/researching online

Business Model Canvas (2/5)Key Partners Key Activities Value

PropositionCustomer

RelationshipsCustomer Segments


Cost Structure

Revenue

Streams



Personalized, unbiased recommendations for products priced for your needs from beauty experts you can trust

CREDIBILITY




PERSONALIZED SERVICEBuild behind-the-scenes staff to provide one-on-one instant messaging with customers


SUBSCRIPTION MODEL OR PAY-PER-USEADVERTISING (60%) MARGINS ON SALE OF PRODUCTS


BEAUTY ENTHUSIASTS Women 18-44, urban, already buying and/or researching online, into cosmetics

HIGH MAINTENANCE FREQUENCYClients who demand personal attention and customization for their beauty routine.BEAUTY ADVERSETimid clients who are not sure what to purchase and need some direction. They want to have the category paired down.

INDUSTRY EXPERTSAccess to excellent artists and well-trained staff with unsurpassed product knowledge. Chemist, Dermatologist, Ingredient’s specialistONLINE PLATFORM

Primary target customers are:

‒ High frequency

Channel: ‒ Women want to access

services on mobile ‒ Women search for

beauty recommendations

Revenue stream: ‒ Subscription & Pay-per-

use would work the best

Lessons Learned in Sep 2011 Validated hypothesis

through: ‒ 40 customer

interviews ‒ Beta customer

onboarding ‒ >5 expert interviews

(i.e. Google, Bare Essentials, Smashbox)

Promotion to drive traffic: ‒ Daily beauty tips on

Facebook page

Another primary customer target identified:

‒ High frequency‒ Less frequent, high

volume Channel:

‒ Women want to access services at home/private

‒ They don’t search, trust community feedback and word of mouth the most

Revenue stream‒ Other revenue model

might work better (prepay)

WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND


PropositionCustomer



Cost Structure

Revenue

Streams








SUBSCRIPTION MODEL OR PAY-PER-USEOffer complementary consultation for the first-time users. Charge fee to access on-going services.

DIRECTWeb site (no mobile yet) CREATE AWARENESSUser community, social mediaPR through key partners. Print, TV, online media and industry makeup artists.

Women 18-44, urban, already buying and/or researching online, into cosmetics

HIGH VOLUME & HIGH FREQUENCYClients who demand personal attention and customization for their beauty routine

INDUSTRY EXPERTSAccess to excellent artists and well-trained staff with unsurpassed product knowledge, as well as skincare specialists such as dermatologist. CREATIVE & UX TEAMONLINE PLATFORM

We are doing well! We could make this work.

Have multiple revenue streams.

Lessons Learned in Oct 2011 Revisited our business

model: ‒ Explored simpler

revenue models, like ‘Freemium’

‒ Explored facial recognition technologies (i.e. ModiFace or open source)

Continued customer validation:

‒ 20 more women interviewed

‒ Receiving feedback and beauty questions on FB

Continued promotion on: ‒ Twitter, Slideshare in

addition to Facebook Started building the

website

Scalable business model:

‒ Requires a “Recommendation rules-engine” that accumulates expertise from beauty experts

‒ Automated instant recommendations requires almost zero marginal cost

Revenue model: ‒ Offer pre-paid

subscription and timed auto-shipments

How would this scale? Too many revenue models

would confuse the customer.


WHAT WE DIDN’T THINK

Business Model Canvas (4/5) – MAJOR PIVOTKey Partners Key Activities Value

PropositionCustomer



Cost Structure

Revenue

Streams

FACIAL RECOGNITION & ONLINE MAKEUP TECHNOLOGY


SOCIAL MEDIAFriends and friends of friends

Build a massive beauty ontology, taxonomy and attributes cross-linked with products in the industry


FREEMIUM

DIRECTWeb site Mobile apps later

Women 18-44, urban, already buying and/or researching online, into cosmetics buying in high volume or high frequency who demand personal attention and customization for their beauty routine

Beauty industry experts with unsurpassed product knowledge, as well as skincare specialists such as dermatologist

CREATIVE & UX TEAM

RULES ENGINE

INSTANT, personalized, unbiased recommendations for products priced for your needs from beauty experts you can trust

A minimal viable products for step 1-3 is required for product validation (i.e. get paying customers)

More interactive content is needed to drive more traffic to the site

Possible archetype in 13-20 age segment

Lessons Learned in Nov 2011 Developed additional

features: ‒ Call to actions for step

1-3 ‒ Beauty experts page

Developed promotion content:

‒ Ran FB promotion for the new archetype

‒ Video make-up tutorials

Participated in the Columbia Venture Fair in NY

‒ 3 VCs asked for follow-up

Conducted customer validation event:

‒ 20 women at Stryker (approx. 15 mins each)

13-20 is not the right set yet

Women “loved” the concept

They were thrilled to hear about automated facial features recognition and makeup effects

We need to make the profile capture more dynamic and specific to the target variations

We need seed funding to proceed!



PropositionCustomer



Cost Structure

Revenue

Streams






FREEMIUM



$$$ NEED SEED MONEYBeauty industry experts with unsurpassed product knowledge, as well as skincare specialists such as dermatologist

CREATIVE & UX TEAM

RULES ENGINE


Women are more interested in the look and the “how to” than in products

Women 13-20, urban, researching online

Getting out of the building is vital to shaping business model

Blogging works – 58 posts, 24 comments from mentors

Get expert advice whenever possible (i.e. teaching team, mentors, industry experts)

Don’t afraid to change the business model if it makes sense (i.e. Jim’s advice for facial recognition technology)

You can build MVP at low cost; Have a working MVP is a key to get customer validation started and to get VCs interested

Teamwork, teamwork, teamwork

Lessons Learned – Final ThoughtsWHAT WE LEARNED VIABILITY OF

BUSINESS CONCEPTWHAT’S NEXTBEYOND THE

COURSE Feedback from VC confirmed that our business model is unique

We need $250K to develop a beauty recommendation engine and test the viability of our business model with early adaptors

We plan to follow up with VCs from the venture fair as well as others to seek funding

“Great concept, no one else in the space is doing this and it really fills a need. If you get an offer from Sephora or Ulta-take it! They could easily try to replicate your idea and would rather pay you than take the time to and money to recreate it themselves.”

Drew Baird, Vice PresidentStar Avenue Capital

User feedback has been positive, at 464 FB Likes, we believe there is consumer interest in this and it is worth pursuing as a business

The fun journey has just begun…

Thank You• Steve for challenging us to do better all the

way through • Jim for the come-to-Jesus moment! • Oren for providing unique advice and getting

it! • Jon for the great advice from a VC

perspective! • Bhavik for keeping us on track

Teaching Team

• Rashmi and Adi for making yourselves available throughout the course and providing valuable, honest feedback Mentors

• Jeremiah for introducing us to April and her team at Google

• All for helping us with the survey and interviews Classmates

The JourneyBusiness Model Canvas

The Start - Business Model Canvas (1/5) Key Partners Key Activities Value Proposition

Customer Relationships

Customer Segments

Cost Structure

Revenue

Streams



CUSTOMIZED SERVICECustomizing the perfect combination of products for clients. Tracking purchases to understand the evolution of their usage and be able to offer them precisely what they need and want. CREDIBILITY




PERSONALIZED SERVICEBuild behind-the-scenes staff to provide one-on-one instant messaging with customers. INDUSTRY EXPERTSAccess to excellent artists and well-trained staff with unsurpassed product knowledge. ONLINE PLATFORM


ADVERTISING (60%)

MARGINS ON SALE OF PRODUCTS



BEAUTY ENTHUSIASTSThose who love products and know that that this is THE place to get all of their favorite items and the hottest new trendHIGH MAINTENANCEClients who demand personal attention and customization for their beauty routineBEAUTY ADVERSETimid clients who are not sure what to purchase and need some direction. They want to have the category paired down


PropositionCustomer



Cost Structure

Revenue

Streams




CREDIBILITY






SUBSCRIPTION MODEL OR PAY-PER-USEADVERTISING (60%) MARGINS ON SALE OF PRODUCTS


BEAUTY ENTHUSIASTS Women 18-44, urban, already buying and/or researching online, into cosmetics

HIGH MAINTENANCE FREQUENCYClients who demand personal attention and customization for their beauty routine.BEAUTY ADVERSETimid clients who are not sure what to purchase and need some direction. They want to have the category paired down.

INDUSTRY EXPERTSAccess to excellent artists and well-trained staff with unsurpassed product knowledge. Chemist, Dermatologist, Ingredient’s specialistONLINE PLATFORM


PropositionCustomer



Cost Structure

Revenue

Streams








SUBSCRIPTION MODEL OR PAY-PER-USEOffer complementary consultation for the first-time users. Charge fee to access on-going services.

DIRECTWeb site (no mobile yet) CREATE AWARENESSUser community, social mediaPR through key partners. Print, TV, online media and industry makeup artists.

Women 18-44, urban, already buying and/or researching online, into cosmetics

HIGH VOLUME & HIGH FREQUENCYClients who demand personal attention and customization for their beauty routine

INDUSTRY EXPERTSAccess to excellent artists and well-trained staff with unsurpassed product knowledge, as well as skincare specialists such as dermatologist. CREATIVE & UX TEAMONLINE PLATFORM

Business Model Canvas (4/5) – MAJOR PIVOTKey Partners Key Activities Value

PropositionCustomer



Cost Structure

Revenue

Streams






FREEMIUM



Beauty industry experts with unsurpassed product knowledge, as well as skincare specialists such as dermatologist

CREATIVE & UX TEAM

RULES ENGINE



PropositionCustomer



Cost Structure

Revenue

Streams






FREEMIUM



$$$ NEED SEED MONEYBeauty industry experts with unsurpassed product knowledge, as well as skincare specialists such as dermatologist

CREATIVE & UX TEAM

RULES ENGINE


Women are more interested in the look and the “how to” than in products

Women 13-20, urban, researching online

Team vogue final

Education

Transcript of Team vogue final