Professional Documents
Culture Documents
Melodie Davis-Bundrage
2019-10-01
Abstract
Katy Stoka, real estate professional turned beauty industry innovator and entrepreneur, invented the first
magnetic false eyelashes. Her original, and now patent-pending, reusable magnet “falsies” debuted in
2016 as the first product for her company One Two Cosmetics. With a tagline of “Make Beauty Effortless”
and a vision of simplifying the application of false eyelashes, Stoka researched, developed, and launched
One Two Magnetic Lash. One Two Cosmetics, 2016 Allure Best of Beauty Award Winner and 2018 The
Knot Beauty Award Winner in the false lash category, has surpassed $20 million in sales and recently
debuted on the Home Shopping Network (HSN), where their lashes sold out. The company has also
been featured in WWD, Vogue, and Cosmopolitan magazines. With the success of the brand’s signature
product, One Two Cosmetics now seeks to expand their product line into color cosmetic eye products and
skin care.
This case study documents the product development process of creating One Two Magnetic Lashes
from idea to launch and introduces students to the stages of product development required to launch
fashion and beauty products. Students are asked to analyze each stage One Two Cosmetics completed
to develop their original product, and compare and contrast against textbook Stage Gate and product
development processes. Students will research and recommend a new product for One Two Cosmetics to
develop and create a preliminary market launch plan for the new product. The case includes a worksheet
offering three product choices: students will further research these, assess each products’ pros and cons,
and finally select one to launch. This case study is targeted at students undertaking fashion business
courses focusing on product development or fashion entrepreneurship.
Table of Contents
Learning Objectives .............................................................................................................................. 1
Introduction .......................................................................................................................................... 2
Business Problem ................................................................................................................................ 3
Business Questions .............................................................................................................................. 8
Teaching Notes and Grading Guide ...................................................................................................... 8
References and Further Reading .......................................................................................................... 9
Appendices ........................................................................................................................................ 11
Learning Objectives
Upon completion of this case, students will be able to:
1
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
• Identify and understand the stages of product development that One Two Cosmetics completed in
order to develop their signature product.
• Demonstrate an understanding of the stages of product development by completing the case study
worksheet in the appendix.
• Analyze each stage of product development included in the case against textbook processes learned
during the student’s academic career.
• Research, brainstorm, and make decisions about a potential product extension for One Two Cosmetics.
• Create a preliminary cost sheet and market launch plan for a new cosmetic product appropriate for the
One Two Cosmetics brand.
Introduction
One Two Cosmetics was founded in 2014 by Katy Stoka. By relying on her expertise in the luxury real
estate market and her understanding of the luxury-oriented target consumer, Katy invented the One Two
Magnetic Lash and launched her entrance into the luxury cosmetics market. After six months of research
and one and a half years of planning, developing, and testing the signature product of the company, One
Two Magnetic Lash was soft launched in the spring of 2016.
Katy felt that she could fill a prominent gap in the market caused by a need for a modern lash adhesive
product with updated packaging. Although market research on the specific niche of lash adhesive or
magnetic lash products was difficult to find, research showed that lashes were trending and she knew
there was a global market for a new invention; big, bold eyelashes - whether enhanced by falsies,
mascara, or extensions - were becoming one of the biggest trends in cosmetics and considered a must
have beauty accessory. Although lash services and false strip and individual lashes were at the top of
consumer lists of beauty products to purchase, no one had invented false lashes that secured to the
eye with magnets instead of glue. Katy consequently decided to capitalize on this unique niche and
launched her entrance into the growing lash industry with newly developed magnetic lashes. Statista
( 2017 ) reported the top ten leading false eyelash and adhesive brands earned annual sales totalling
$88.7 million. Furthermore, the global value of the false lash market was projected by Market Research
Future in 2017 to grow to $1,754 million by 2023 ( Market Research Future 2017 ). Katy trademarked her
company and secured the first design and utility patents for magnetic lashes, as she realized her idea
could be a game changer and disruptor in the lash sector of the beauty industry.
“Making Beauty Effortless” was made the tagline for the company and communicated the ease and
instant gratification customers would appreciate from the faster application of no mess, non-toxic, and
user-friendly lashes. The lashes were first soft launched to family and friends and then hard launched
on social media. The company spent nothing on paid advertising—Katy instead heavily relied on social
media and word of mouth to gain the attention of her target market. In the summer of 2016, beauty editors
began to report on the magnetic lash product, which earnt One Two’s Magnetic Lash the Allure Best of
Beauty Breakthrough Award. After the company’s first sell out and back order that summer, the product
received its first national news coverage on the Today Show. In spring 2018 the product, described by
Katy as “targeted to female customers aged 18–80,” launched on the home shopping network (HSN); the
HSN platform was ideal for product demonstrations, and allowed customers to be educated on how to
apply and care for their magnetic lashes beyond the platform of YouTube (where they had showcased
this information previously). The launch on HSN resulted in One Two Cosmetics selling $1 million of the
product in one day. In 2018, the lashes were launched on Sephora.com which extended the brand’s
reach to luxury consumers. With the goal of making lash application easier for consumers, One Two
2
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
Cosmetics has managed to attract a large customer base by focusing on at home customer tutorials and
education.
The current business model of One Two Cosmetics includes a direct to consumer strategy, through
utilizing television sales and exclusive retail partner web sales. These channels were specifically chosen
by Katy to reach the brand’s target consumer: “lash lovers and beauty junkies over a wide geographical
area that desire a product to augment their natural lashes without additional salon appointments.”
Customers can purchase the lashes from the company website ( One Two Cosmetics 2019 ) and
from Sephora ( n.d. ) and HSN ( 2019 ). The magnetic lashes are priced between $59–$89, which is
competitively priced at a range that is between the cost of salon visits and drug store lashes and thus
appropriate for a luxury at home experience product. Through displaying a before and after image, Figure
1 demonstrates how One Two’s Magnetic Lashes change the appearance of a model.
Figure 1. Before/After Model Image with Magnetic Lashes. © One Two Cosmetics.
Business Problem
3
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
4
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
5
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
6
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
Figure 3. One Two Magnetic Lashes final product. © One Two Cosmetics.
Students should complete the business questions below and the optional case assignment from the
perspective of a member of the product development team at One Two Cosmetics, with the goal of
recommending and developing a new product for One Two Cosmetics.
7
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
Business Questions
1. As an entrepreneur, how did Katy Stoka discover that her idea would be a viable business opportunity?
What next steps would you take to determine if your intuitive idea could be developed into a viable
business?
2. What are the stages of product development, and what is done in each stage? Compare and contrast
marketing stage gate processes versus product development within fashion merchandising. See
References and Further Reading for texts that cover both types of product development lessons.
3. How did One Two Cosmetics determine appropriate new channels to sell their signature product,
magnetic lashes?
4. As an entrepreneur, what might you learn from One Two Cosmetics in identifying opportunities to
expand a product line, serve a wide-range target market, and sell through multiple retail channels?
5. What growth strategies would you suggest for One Two Cosmetics to ensure their brand stays
competitive in the growing lash and eye makeup markets and so that they continue to develop
products of interest to the current audience they have captured?
6. What future opportunities might there be for One Two Cosmetics to expand their product line and
extend their brand? Brainstorm at least three potential products that One Two Cosmetics may consider
for their brand in the near future.
7. Complete the case worksheet to launch a new product for One Two Cosmetics. Choose one of three
products. How should the company develop and test the product, protect the product, and guarantee
profit for the launch?
The author usually uses the case study materials over two class periods. The first day is for reading,
preparation, discussion, and summarization of the case along with a review of textbook materials
on product development. The second day is for group work and presentation of the completed team
assignments. Learning is consolidated at the end of the second class period as each team presents
the details of their product including specifications, financials, and a marketing plan with an emphasis
on potential profitability and viability for the brand. Each class typically lasts for 75 minutes. The author
provides a point system for grading the assignment within the assignment worksheet. Once the worksheet
has been completed in class the author has also adapted the assignment for inclusion in a mid-term or
final exam to prove evidence of learned concepts.
The below teaching notes correspond to the respectively numbered business questions above.
8
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
1. Students can discuss the importance of initial market research and the product discovery stage of
product development. They can discuss the idea funnel and creating an idea management system in
the workplace. They can also draw on personal experiences of lightbulb ideas that turned into products
completed by people they know or find a current article about a new product launch (within one year)
and share the idea and how it originated.
2. Students can draw on Chapter 7 in the Dynamics of Fashion textbook or the Winning New Products
text listed in the further reading section that teach the stage gate system of product development. It is
recommended that this case be assigned as an intermediate case after the introductory level product
development chapter has been studied or course completed.
3. Students should reflect on the One Two Cosmetics target market. The channels selected are linked
very closely to how their target customer shops for demonstration products and draws customers of the
needed level of disposable income. In regard to demographics and psychographics of the customer,
Sephora and HSN venues were chosen because of their access to a mid-tier luxury customer and
ability to demonstrate the product.
4. The founder of One Two Cosmetics describes the age range for her products as eighteen to eighty and
has chosen retail channels that cover this wide age range. Students should discuss the pros and cons
of adopting a large target market, and recommend appropriate channels for the extended product line.
5. Note for the instructor: One Two Cosmetics management has not documented some of their
milestones such as initial YouTube success that may be key to their growth strategy on venues where
demonstration is possible. Students should think about the future products need for the same high
level of demonstration and if alternative channels should be included in the new strategy. Students
should research more online reports on the specific product category they choose to further develop in
the case assignment.
6. Students should be creative here. The opportunities are endless and no parameters are provided to
allow students to be creative. During the optional next question and completion of the case worksheet,
the authors have provided some guidance and parameters to narrow down the type of product. There
are possibilities in color cosmetics, skin care, and eye accessories within the beauty industry.
7. Students should consider the history of the brand and their past challenges with trademark
infringement, the use of low-priced marketing, zero advertising, and the absolute necessity to ensure a
safe product for consumers. They determine through research and discuss their ideas or thoughts on if
the new products will require different or the same types of levels of testing, protections, and expenses.
Students can discuss product extension risk factors. Students can further explore product pricing,
margins, and provide ideas on a market launch plan.
Cooper, Robert. 2011. Winning at New Products . 4th edn. New York: Basic Books.
Team Fact.MR. 2017. “6 Key Insights on False Eyelash Market for Forecast Period 2017–2022.”
Fact.MR, October 5. Accessed December 8, 2018. https://www.factmr.com/media-
release/280/false-eyelashes-market .
9
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
Market Research Future. 2017. “False Eyelashes Market Research Report—Forecast to 2023.” Accessed
December 8, 2018. https://www.marketresearchfuture.com/reports/false-
eyelashes-market-2921 .
Markovinovic, Monica. 2016. “Magnetic Lashes Are Here to Help All the Girls Who Suck at Applying
Falsies.” Huffington Post Canada, July 4. Accessed November 30, 2018. https://
www.huffingtonpost.ca/2016/07/04/magnetic-lashes_n_10803440.html .
Moorhouse, Victoria. 2018. “Everything You Need to Know About Magnetic Lashes.” InStyle, September
18. Accessed November 30, 2018. https://www.instyle.com/beauty/magnetic-
eyelashes .
Novak, Lexi. 2016. “Best in Beauty 2016.” Allure Magazine. Accessed November 30, 2018. https://
www.allure.com/review/one-two-lash-false-lashes .
One Two Cosmetics. 2019. “One Two.” Accessed August 3, 2019. https://
www.onetwocosmetics.com .
Statista. 2017. “Annual Sales of the Leading False Eyelashes and Adhesives in the United States in
2017.” Accessed December 8, 2018. https://www.statista.com/statistics/323101/
sales-of-false-eyelashes-and-adhesives-in-the-us/ .
Stoka, Katy. 2017. “I Created a Trending Product and Everyone Ripped It Off.” Swaay, 25 September.
Accessed November 30, 2018. http://swaay.com/created-trending-product-
everyone-ripped-off/ .
Stone, Elaine and Sheryl Farnan. 2018. Dynamics of Fashion . New York: Bloomsbury Publishing,
Fairchild Books.
Thomas, Bobbie. 2017. “Black Blush Will Change Your Makeup Routine Forever—Here’s Why.” Today,
March 23. Accessed November 30, 2018. https://www.today.com/style/black-
blush-magnetic-lashes-beauty-products-try-spring-t109545 .
10
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
Appendices
11
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
12
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.
Concept to Commercialization
13
The author(s) wrote this case solely to provide material for class discussion and independent learning.
The authors do not intend to illustrate either effective or ineffective handling of a situation. The
comments and interpretation presented are not necessarily those of the company or its employees.
© Bloomsbury Publishing Plc. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without
the permission of Bloomsbury Publishing. Copying or posting of this publication is an infringement of copyright.