Business Description, Memo and Proposal
The report on the hair industry in the Dominican Republic identified key trends in the market. With regards to consumer behavior, the female population in the country dedicates significant part of the budget to hair treatment products. However, the economic slowdown in 2013 reduced the surplus income, resulting in rationalizing of the budget. The implication is that unless women were able to acquire the products are a relatively inexpensive price, these trends in consumer behavior were bound to change. This would in turn affect the profitability of the industry. As such, the purpose of this project is to investigate this situation with the aim of proposing solutions. The proposed solution is the creation of a new business involving the importation of Keratin treatment into the Dominican Republic and offering the imported product at a considerably low price compared to the similar products in the domestic market.
Project Memo
Summary
This memo presents an overview of the various elements of the project. Some of the elements include the topic of the project, the problem under investigation, the rationale for the problem, preliminary solutions to the problem under investigation, the intended audience for the project documents and any existing knowledge on the topic.
What Is my Topic?
The topic informing the project is on a new business located in the Dominican Republic. The new business is inspired by recent economic conditions globally. The purpose of this project is to meet needs in the market created by the diminishing economic conditions in the recent global economic recession.
What Is the Problem Being Investigated?
Trends in the Dominican Republic show that the hair care industry has been reeling in the downward pressure resulting from the economic slowdown experienced in 2013. The problem is that the economic slowdown put pressure on the consumers because women in this country devote substantial money and time to hair care. Due to the economic slowdown, consumers have had to rationalize their expenditure. Continued rationalizing of expenditure could see consumer behavior change, thereby hurting the hair industry. Finding a way to sustain current consumer behavior in the Dominican Republic under the current economic conditions is imperative (Euromonitor International 2014).
Why Do You Need to Investigate this Problem?
As espoused earlier, market trends in the Dominican Republic show that women devote significant expenditure on hair care. However, the economic slowdown means that there is less surplus income to spend on hair care. This might result in changes in consumer behavior, especially if the current economic conditions persist. It is important to investigate this problem in order to avoid shifts in consumer behavior that could affect profitability in the industry.
What Are your Preliminary Ideas for Improvement?
In order to solve this problem, a new business with a new business model - the topic of this project- is required. By importing keratin treatment at a lower cost into Dominican Republican, the products can be offered at considerably lower prices, thereby meeting the needs under the current economic conditions, and sustaining consumer behavior in the market.
Who Is the Audience for your Project Documents?
The primary for the project documents is the course instructor. His approval is a prerequisite for the commencement of the project. Based on the contents of the documents, the course instructor will offer a verdict on the fate of the project. Fellow peers have shown interest in the project. Given that the proposed solution amounts to a new business, there is every intention to keep the stakeholders to a minimum.
What Do I Know about this Topic?
There are numerous Keratin treatment products in the market. These products offer different hair treatment options for the consumer. These products also have varied strengths, all designed to suit the diverse needs of the consumers.
Conclusion
The project is informed by the identification of a problem in the hair care industry in the Dominican Republic. The problem is significant in that it represents potential changes in the hair care industry that could affect future business profitability, especially if the economic conditions persist. The proposed solution entails the formation of a new business that imports keratin treatment at into the Dominican Republic and offer the product at considerably lower prices.
Project Proposal
Project Synopsis
The proposal will highlight elements on the project under which keratin treatment will be imported into the Dominican Republic and sold at relatively lower prices. The purpose of the project is to investigate the rationalization of expenditure on hair care due to the current economic conditions resulting from the economic slowdown in 2013, possibly resulting in changing consumer behavior. The proposed solution is to meet the hair care needs of consumers in the Dominican Republic at affordable prices thereby sustaining the current consumer behavior.
The report on the hair industry in the Dominican Republic identified key trends in the market. With regards to consumer behavior, the female population in the country dedicates significant part of the budget to hair treatment products. However, the economic slowdown in 2013 reduced the surplus income, resulting in rationalizing of the budget. The implication is that unless women were able to acquire the products are a relatively inexpensive price, these trends in consumer behavior were bound to change (Euromonitor International, 2014). This would in turn affect the profitability of the industry. As such, the purpose of this project is to investigate this situation with the aim of proposing solutions.
The proposed solution is the creation of a new business involving the importation of Keratin treatment into the Dominican Republic and offering the imported product at a considerably low price compared to the similar products in the domestic market. The implementation of the project is limited by the fact that the economic slowdown affected the global economy, and not just the Dominican Republic. As such, the prices of consumer products are expected to have increased in many global markets. However, the partnership with Keratherapy-a major player in the industry-is mutually beneficial. It is important to implement this solution because it will ensure that the Dominican hair industry continues to consumer their products.
Plan of Action
The implementation of the project will first entail a study of the hair care industry in the Dominican Republic. Although the proposal and the memo highlight trends in the industry, more research is required in order to provide more foundation upon which the analytical report will be authored. This will rely on marketing studies and consumer behavior studies in the industry (Dade, 2010). This is important because it will help predict consumer behavior resulting from the economic slowdown. The study of the market trends will also reveal the prices of various hair care products within the industry. Additionally, it is necessary to carry out market research on the products of Keratherapy in order to get the perceptions of the consumers on the products.
This is an important exercise before importing the products as it helps predict the reception of the product in the market and how it might compete against rival products. It is when these activities have been sufficiently carried out that the analytical report will be written. The analytical report will contain a detailed account of all the activities mentioned above. It will also contain the detailed account of the proposed solution relative to the findings from the market research and the study of the trends in the market. The following graphical presentation shows a breakdown of the project schedule.
Qualifications
Although it is a relatively new company formed in 2010, Keratherapy has revolutionized the hair care industry by differentiating its products. The company has developed pioneer products in the industry, thereby enjoying unrivalled success from such products. The company also has a large network consisting of numerous distributors. Consequently, its products are vended in over thirty seven countries. The company also has a diverse product line with over sixteen products. This qualifies the company to partner for the implementation of the project. The project will benefit from its differentiated and diverse product line, its extensive network and its expertise in keratin treatment products (Keratherapy 2014).
Conclusion
The proposed solution not only establishes a business entity, but also meets the needs of the consumers in the hair industry. The solution is innovative in that it handles a situation that affects the entire industry. The solution also uses a different model compared to other players in the industry. Its implementation is informed by research on both the trends in the market and the perception of the product in the market. There is need to undertake the project, not just for its foundation, but also because of what it promises, and the implications that the alternative could have on the industry.
References
Dade, C. (2010). Much Ado About Straightening: Old Black Salons Face New Rivals: Clients Take a Flier on Dominicans, and Stylists Tear Each Other's Hair Out. The Wall Street Journal, Retrieved from> http://online.wsj.com/articles/SB1000142405274870 3322204575226553332638676
Euromonitor International (2014). Hair care in Dominican Republic. Retrieved from> http://www.euromonitor.com/hair-care-in-dominican-republic/report
Keratherapy (2014). Our story. Retrieved from> http://www.keratherapy.com/our- story/#sthash.dMKiNpyH.dpbs
