Maiya Mikell

Management
February 27, 2016
Probing Questions
Question 1: Value Proposition
Premises 1: Value Proposition explains why a customer will patronize your store verses a
similarly competitive store. An example of value proposition is providing a feeling of elation for
customers who want to find their perfect shade of foundation, blush, or whatever make-up need
they have at a reasonable price.
Premises 2: According to Special Chem. writer Nancy Jefferies Enhanced value
propositions continue to attract consumers. She also states that consumers are seeking, and
finding, advanced products, with targeted benefits, at accessible price points.
Question: What are your value propositions or targeted benefits that consumers seek at
an accessible price?
Ms. Donte Sparks response: What makes Lolade different from other cosmetic companies is
our products are paraben free and our skincare products are comprised of organic ingredients.
That just a small part of what makes us different from other companies. One of the big things
that makes us different is why we started Lolade, our vision and where we are going with our
company. We started our company out of a heart of giving. We are philanthropic in a sense of
supporting organizations. Some organizations that we support are the Childrens Choir, Doctors
without Order, and Saint Judes. We also was able to send two young ladies to the Florida State
University Ladies Learning to Lead conference. So in a sense we feel like our mission of giving
one thing that makes us different. A lot of our clients have a heart to give, so when they hear
what our vision and mission is they want to support use. Clients fell as though they are making
their face to help make someone elses life different and better. Lastly another thing that sets us
apart is our store model. Our store is small and set up like a boutique. Instead of it feeling like
youre walking into a retail chain, it feels like youre walking into a place that is a part of your
community.

Question 2: Channels
Premises 1: which is the various ways of communicating, allocating, and selling the
value of a product to customers. There are 5 different parts of channels which are awareness,
evaluation, purchase, delivery, and after sale. I would like to specifically talk about the
evaluation section of channels, which is the phase where the products that a business is evaluated
to see whether it lives up to the value it promised.
Premises 2: According writers Tsung-Ju Yang and Chun-Hung Liu to understand the
decision-making process of consumers the cosmetics companies will research product quality.

The researchers use questionnaires method and use SPSS and AMOS statistical software to
analysis the samples of the cosmetics consumers.
Question: How do you get your customers to evaluate whether your product is high
quality?
Ms. Donte Sparks response: To get Customers to evaluate our products we do a try before you
buy method. We also do complementary consultations were we get them to try our products and
they decided whether they want to make a purchase or not. I would say honestly about 95% of
our patrons who try any of our products make a purchase. We never do a consultation where a
person says the product didnt work for them. We also have a mechanism where clients can give
feedback and a Forum where they can do the same. Clients also give reviews through YouTube
and various other social media platforms.

Question 3: Cost Structure

Premises 1: Cost structure explains how much the resources that a business needs to
deliver its value proposition will cost.
Premises 2: Industry Canada states that the largest expense category for most retail
establishments is the cost of goods sold and in 2012, it accounted 47.7% of total expenses.
Question: What would be your main cost for your cosmetics company? What other costs
does your company have outside of the ones that were included in Premise 2?
Ms. Donte Sparks response: The highest cost is inventory. Also with us having a brick-andmortar location is a big cost to us on a monthly basis, but defiantly inventory is the biggest.
Other big costs are expenditures on keeping up the location. Marketing is a big expense as well.
The biggest expense use to be employees but we cut back on employees. A lot of my start-up
costs went into testing product prototypes because manufactures are not going to send you
products for free. Many manufacturers produce different types of results. We had to go through
different types of products because the color, ingredients, coverage, and pigment in colors
wouldnt work for consumers.

Question 4: Key Partnerships

Premises 1: Key Partnerships is the different partnership a business must have to deliver
my value propositions. An example of a key partnership for a cosmetic company is a relationship
with a cosmetics & beauty products manufacturing company.
Premises 2: According to Retail Touch Points cosmetics brands like Maybelline relies on
its retail partners to engage customers and sell its vast line of products.

Question: What key partnership do you have with cosmetic manufactures to get your
products developed? Do you find it hard to find manufacturing companies that creates products
for individuals of color?
Ms. Donte Sparks response: Yes, it is defiantly harder to find manufactures for women of
color. I found my manufactures by doing a lot of research; As far as finding out what other
brands use a specific manufacturer. Usually brands never disclose who their manufacturer is but
there are certain things the one can look into to find manufactures of other cosmetic companies.
Some of them are located not just in the USA but all over the world.

Question 5: Key Resources

Premises 1: Key Resources are the different type of resources that a business will need to
deliver the value proposition. The main key resource for a cosmetics company is the product. In
order to get products they first have to be created by a manufacturer (as stated in the previous
question).
Premises 2: According to a study done my Ranjan Kumar on market value propositions
59% of the respondents to a survey stated that products containing herbs and sea minerals are
their preference when buying cosmetics.
Question: Do you want your products to be composed of certain ingredients? How
involved are you with the research and development phase that manufactures do for you
cosmetic products?
Ms. Donte Sparks response: I dont personally create the products; as you know we hire a
manufacturer, one of the best in the world actually. They produce cosmetic products for brands
such as Iman and Clinique so theyre highly experienced in what they do. As far as my
involvement goes I tell them what it is that Im looking for and what I want. Also what products I
want in my finished product. A lot of people think that because I have my own brand, that Im
the executive director of the brand. They think Im in the kitchen cooking up all of my own
products, but thats not true. I still do have a lot of authority in what goes into my products and
manufacturers listen to our concerns. If there is something we dont like they listen.
Ive gone through so many products because I didnt like the texture or color pigmentation of a
product. Im particularly specific because we serve women of all ethnicities but specifically
women of color; so finding the right shades and pigments was essential. However, Im not
involved in the formulation of the product but we do have a team of dermatologists and chemists
for our skin care line. They work together to bring our ideas for this line to life.

Word Cited
"Collaboration Becomes Key To Success For Retailers And Suppliers." Collaboration Becomes
Key To Success For Retailers And Suppliers. N.p., n.d. Web. 03 Mar. 2016.
"Cosmetics, Beauty Supplies and Perfume Stores (NAICS 44612) : Retail Revenues and
Expenses." Canadian Industry Statistics (CIS). N.p., 26 Nov. 2015. Web. 3 Mar. 2016.
"Hair Care's New Value Proposition." - SpecialChem. N.p., n.d. Web. 03 Mar. 2016.
"How to Improve the Customer Loyalty in the Cosmetics Industry." IEEE Xplore. N.p., n.d.
Web. 03 Mar. 2016.
"Value Proposition of Beauty and Cosmetic Companies." Value Proposition of Beauty and
Cosmetic Companies. Ranjan Kumar, n.d. Web. 03 Mar. 2016.