INVESTMENT PROPOSAL DOCUMENT

FOR

“GENTLE CARE” NAIL MANICURE MACHINE

BY

MARIA MALA
1911872
COHORT 16

MODULE: CB 3008 PRODUCT AND SERVICE INNOVATION

RGU / BHMS
12.02.2020

WORD COUNT [Word count]

 Executive Summary

“Gentle care” manicure machine is an advanced and completely innovative version

of nail care these days. The main task of the devices is to provide a fast and pleasant
solution for all women and men in their beauty routine.

The main goal is to attract investors in order to spread the businesses around
European countries and America. The product is a revolution in nail industry,
although it needs to survive and differentiate among its competitors.

Paper includes the analysis of effective using and integrating device into Asian
market, as well as more other techniques for better understanding of the product.

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 Table of Contents

1. Introduction...............................................................................................................1
1.1. Paper’s Objective...............................................................................................1
1.1. Problem Definition and Solution.......................................................................1
2. Features, Benefits and Market Opportunity..............................................................1
2.1. Gap Analysis......................................................................................................1
2.2. Features and Benefits.........................................................................................1
2.3. Market Opportunity...........................................................................................2
3. Market Strategy........................................................................................................2
3.1. Porter’s 5 Forces Industry Analysis...................................................................2
3.2. Competitive Positioning....................................................................................3
3.3. Marketing Strategy............................................................................................4
3.4. Generic Go-to-Market Strategy.........................................................................5
3.5. Fictional Persona...............................................................................................5
4. Financial Model........................................................................................................6
5. Conclusion................................................................................................................8
6. Bibliography.............................................................................................................9

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 1. Introduction

“Gentle care” is manicure machine, settled in China’s city Beijing. Machine was
produced to make nails of every woman and man as nice finish of their look or
image. However, the current nail device is not an innovation on the market, because
it has many alternatives, as well as competitors. Though, with new features and
instruments, that “Gentle care” improved, it will take a leading place on the market.
Devices gives a possibility to choose any pattern, a person wants to apply on the
nails, which is regulated with app. In addition, it fits to absolutely every type of nails
and can make any shape with a file inside the machine.

1.1. Paper’s Objective

The objectives of the paper is to analyse the company’s benefits and threats in order
to attract investors and show that the idea of “Gentle care” machine is progressive
and reliable. The company is seeking for investment of 100 000 Francs in exchange
for 18% of business.

1.1. Problem Definition and Solution

The main aim of the product is time-saving. The whole procedure takes from 10 to
15 minutes, which is significantly lower than wasting 2 hours in beauty salon.
“Gentle care” will become pressures, especially for businesswomen, mothers,
teenagers and even men, who want to have accurate and beautiful nails in short time
and reasonable price, which is the second solution. This manicure machine will pay
off 9 procedures in beauty salon and work even longer to satisfy the customer needs.

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 2. Features, Benefits and Market Opportunity

Feature means something that a product has in its product. If the product has more
features than its competitors, than it will be more valuable and will have greater
demand on the market. Benefits means, how successfully and productively a
customer will use a product. The more benefits it has, the bigger chances are to get
actual customers.

2.1. Gap Analysis

Gap analysis is a method of determining whether a business is on the right way for
its improvement and whether the requirements are matching customers’ needs.
Table 1
Gap Analysis
No Current Gap Desired Goal Weigh- Audience
ting
(1-4,
1=lowest,
4=highest)
1 Women are spending Minimize Businesswomen,
a lot of time for manicure time 4 pregnant women,
manicure and spend it on mothers, men
business
2 Limited skills of the To be able to Creative people,
nail artists and nail do the most 3 teenagers, bloggers
design difficult and
complex
designs
3 Expensive Will cover Businesswomen,
procedure, that needs expenses of pregnant women,
to be done twice a nine manicure 4 mothers, men,
month procedures creative people,
teenagers, blogers,
elder people
4 Machine may seem Possibility to Every target audience
to be unsafe, when control the 2
2
 putting a finger whole process
inside through an app

The most actual problem is time-saving, because normal manicure in beauty salon
takes 1,5 or even 2 hours, while using “Gentle care” nail machine, consumers will
need to spend only 10 minutes for the whole procedure. It is well known, that not
every nail artist is able to create a required design of a painting or picture, so
machine will solve all the problems, a person just need to upload a photo to an app
and control the whole process.
Many customers are complaining about the cost of the machine of 500 Francs,
however it will cover the expenses for the nine manicure procedures in salon and can
be used even for much more manicure procedures.
As some of the customers may worry to but their finger inside the machine and
would prefer a nail artist to the manicure, it will not be an issue for “Gentle care”,
because as it was mentioned before, everything can be controlled and visible through
the phone app.

2.2. Features and Benefits

Table 2
Feature Benefit Matrix
No Feature Benefit a Benefit b Benefit c
1 Colour cartridge Various Economic use of
paintings colours
2 Phone app Browse different Control the Saves favourite
designs and whole manicure manicure designs
pictures process
3 Nail file Makes desired Makes nails
shape and size of more accurate
the nail
4 Weight- 1.6 kg Easy to transfer Take on holidays

The main feature of “Gentle care” machine is colour cartridge, because with this
tool, a user can paints her or his nails in any colour and make any design, that can be
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found in the app or browsed from the internet. Also, it is possible to save the most
favourite manicure design for future and choose it for different occasions. On top of
that, machine has a file to structure a shape and a size of the nail and give it an
accurate, shiny and healthy look, however it is now made for cuticle care.

2.3. Market Opportunity

Market opportunity analyses and forecasts the future of certain product, how it will
behave now on the market during the next few years, which customers and
competitors are to expect.
According to Nail polish market analysis (2017), nail market size covered USD 6.89
billion in 2015 and is still growing. People of different and categories and sex are
visiting beauty salons. As new technologies are slowly replacing humans work, it is
possible, that “Gentle care” machine’s market will be popular among women, men
and teenagers. Firstly, machine will spread on Asian market, especially Chinese
people, as similar machine was already founded there. Asian market is very massive
and can be well tested, before it goes into Europe and America, where people are
more conservative and need to be prepared and know that the product was checked
and used successfully by someone (Norton 2012). As the production will be directly
in China, in capital city Beijing and then the sales of machine will spread on the
whole China, later it will reach other Asian countries markets, like Korean, Japanese,
possible Indian and Thailand. People of these countries prefer to distinguish and
express themselves from others, even through bright manicure, so a big amount of
people, such as mothers, businesswomen, teenagers will be interested in this new
manicure machine, that will help them to reach their results in a short time. The
popularity of “Gentle care” machine will not only start on Asian market, the purpose
is to take over Europe and USA.
As of nowadays, the need of professional, creative and accurate manicure is a
necessity of every female and even male beings, especially when it needs to be done
fast and save money. That’s why, the need of nail market development will always
be on high demand.

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 3. Market Strategy
Market strategy is taking a big role in businesses’ overall idea or plan and helps to
attract customers so that in future they will they can become potential customers of
the certain products that a company provides.

3.1. Porter’s 5 Forces Industry Analysis

Table 3
Investment Threat and Attractiveness

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 Figure 4
Investment Attractiveness Analysis

Analysing the figures above, the most important and threatening is new entrants,
because nail industry is popular and developing very fast, so possibility of
competitors on the same market is critically high. The same situation is with
substitutes, because every product is different with less or more functions and the
customer can choose, what will be the best for her/him.
Customers, who are ready to buy “Gentle care” nail machine will probably have
questions and arguments about the price, as it costs 500 Francs, however they don’t
understand that it will pay off in some time and even save money for future
manicure procedures.
Product will have various suppliers and can look for cheaper alternatives. As the
product is developing on the market, suppliers will always have potential customers
and there will be no issues of changing one to another.
Rivals can become a serious problem of current product, as every company offers
different quality and price, it is hard to survive and to differentiate among other
services.

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 3.2. Competitive Positioning
Competitive positioning will help to examine how the current product differentiates
from others on the market and what value it will create for future customers.

Table 5
Competitive Positioning

“Gentle care” machine already has some competitors on the market, but as it was
mentioned before, with different quality and features. For example, the main rival is
O’2 Nails, the concept of work is the same, however there are difficulties in set up.
Two other devices, Tuoshi NP 10 and Kunhewuhua also have advantages and
disadvantages, such as the second machine can paint five fingers at the same time
though its size is relatively big and inks are not economic. Tuoshi NP 10 main cons
is that it is not suitable for all nail types. Apart from this, Gentle care machine is
focused on nail shaping, that other machines don’t have, as well as easy in use and
traveling, cartridges are expensive, but economic in use and will fit for any nail type.

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 3.3. Marketing Strategy

To create a demand for a product, it should be well promoted and advertised. As the
production is in China, so first of all, promotions will be oriented and occupy Asian
market. Every customer and beauty salon owner needs to evaluate and check the
device in work, so a kind of event or master class can be held to show how “Gentle
care” works. In addition, indoor advertisement can be useful, as there are always
many people in malls, supermarkets, shops, cafes, and forms of advertising include
flyers, posters. And the most popular option is social media advertising, such as
banner ads and Instagram/Facebook, to tell people and show the features and the
work of manicure machine.
The initial price of “Gentle care” manicure machine is 500 Francs including the
instruments inside the machine, cartridge with more than 20 colours and a bag to
carry device.
Production of “Gentle care” manicure machine will start in China, in capital city
Beijin, due to cheap workforce and potential target market. However, the goal is to
spread on other Asian countries and in future to occupy European and American
market. But, first of all, device should be tested and checked before integration to a
bigger market.
Budget consists of 20 000 dollars and will be divided for the whole year, according
to the month and type of advertisement.

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 3.4. Generic Go-to-Market Strategy

Table 6
Bowman’s strategy clock
Bowman’s strategy clock is a model that consists of eight strategies, and shows what
place the product occupies on the market, based on perceived value and price.

Tuoshi NP 10 and O’2 Nails and Gentle care manicure machines were put in fourth
position, which is Differentiation. It means that these devices are well known for
their excellent quality and have great value on the market. In spite of its high price,
they are still valued and justified among buyers.
Gentle Care, meantime, reaches the sixth position, that is failure strategy or risky
high margins. The price of the product was set high, however, in exchange,
customers do not get any extra benefits regarding the perceived value. Anyway,
buyers will find a product, that contains more perceived value for lower or the same
price.

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 3.5. Fictional Persona

Table 7
Fictional Persona
Persona Name Emily Rose

Background Manager of Sales&Marketing in a company in Poland

Firstly worked as shop assistant for 3 years. Then in
public relations for 4 years
Divorced (3 children)

Demographics Female
Age 40-45
Income 10 000$
Warsaw

Identifiers Testy demeanor

Email and calls on work phone
Goals Motivated and operative team
Control the working process and avoid mistakes
Challenges New, not trained employees
Control the deadlines for all employees
What can we do? To do more trainings before starting the job
Hire more qualified staff
Real quotes “I need to hire more staff and personal assistant because
I am overloaded with work every day and even don’t
have time for my family”

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 “I am a manager and always have many meetings, but no
time to prepare myself for them, because even a manicure
takes only 2 hours for me. I wish everything could be
done faster”.
Common objectives Some people are worried about the safety of the manicure
machine and the cost can become an obstacle.
Marketing Innovative “Gentle care” manicure machine saves your
messaging time
Elevator pitch We ensure that with our product you will always look
well groomed and unique, it will save your time,
especially if you are a busy businesswoman or a mother.

4. Financial Model
- The price of the product is 1100 Francs.
- 24 000 Francs will be spent for advertising per year, relatively 2000 Francs
per month.
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 - Total cash inflow will be 550 000 Francs for one year.

Figure 8
1st Year Sales

Company will start to sell “Gentle care” manicure machine with 10 pieces per
month, such as in January and expects to grow the sales with next months. For
example, a peak of manicure machine will reach its highest sales in August and
September, 60 pieces per every month during the first year.

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 Figure 9
Break-Even Analysis

Break even will be reached in 3,5 years.

The company is looking for investment of 100 000 Francs in exchange of 18% of
business.

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 5. Conclusion
To summarise, “Gentle care” manicure machine is the better and more improved
version than its competitors and it has a great potential to occupy not only Asian
market. With correct and competent advertising and feedbacks of the customers, it
will grow fast in demand and attract more investors to develop the product further.
The need of neat, bright nails relates to every person, who cares about his or her
appearance, as well as values time and money.
The geographical position of machine production also plays a big role in terms of
expenses and target market. The workforce in China is cheap, so the main focus
needed to be done on professional equipment, instruments and advertising, for future
internationalisation of the device into new market.

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