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Value Chain

Essay by   •  December 1, 2017  •  Essay  •  310 Words (2 Pages)  •  914 Views

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Aberilla, Jufiel

Ayson, Shayne Anne

Oca, Cherry Feb L.

COSMETICS INDUSTRY

VALUE PROPOSITION

We devote in delivering a 5 in 1 benefit cosmetics formulated with 90% natural ingredients and minerals that provides a 24/7 soothed, nourished, sunscreen protected (SPF 40) skin that also minimized pores and whitens skin for a youthful radiant skin.

PROFIT PROPOSITION

   

  • Good social media linkages
  • Minimize labor production and capitalize with overhead
  • Establish e-commerce dealing site

UNIQUE-SELLING PROPOSITION

 

  • Strict compliance of necessary standards for production and commercial use
  • High investment on packaging and design
  • Finest natural ingredients for cosmetics from primary producers

VALUE CHAIN

[pic 1]

Information needs for the following activities:

Inbound Logistics

  • Feasible natural ingredients to use
  • FDA and DOH regulations regarding the ingredients to be used of cosmetics
  • Prospect suppliers of raw materials and machineries
  • Suppliers and their location relative to location of factories to facilitate efficient and low-cost transportation of raw materials

Manufacturing

  • FDA regulations regarding the production of cosmetics
  • Safety measures to be observed within the factory
  • Extent and concentration of product line and specialization
  • Product and service design, product differentiation and packaging

Outbound Logistics

  • Feasible target market
  • Distribution strategy: centralized or decentralized distribution
  • Location of warehouses and distribution outlets relative to target market

Sales and Marketing

  • Prices of competitors
  • Target market and its buying behavior
  • Competitive advantage and unique product characteristics
  • Effective advertising and promotion techniques

Services

  • Customer needs and preferences
  • Feedback and suggestions channel for customers
  • Feasible add-on services to offer for every cosmetics

Firm Infrastructure

  • Machineries and workers needed
  • VMGO statement
  • Applicable business and organizational structure
  • Appropriate facility layout

Human Resource Management

  • Internal rules and regulations
  • Effective reward and reinforcement system
  • Job descriptions and specifications
  • Scheduling of seminars, trainings and workshop

Technology Development

  • Innovations and breakthroughs in the cosmetics industry
  • Feasibility research of incorporating natural ingredients on make-up products
  • Applicable information system and network topography
  • Monitoring and safeguarding methods on assets susceptible to fraud

Procurement

  • Prospects resellers

...

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