Market research on Dayjs Selfcare Collection

Name: Monifa Robinson

Registration No.:1000201349
School: Clarendon College
Centre #: 100020
Territory: Jamaica

Year : 2021
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Table of Content
Content

Market Research Page

Introduction ………………………………………………………………….……… 4

Objectives ………………………………………………………………………. …..5

Population and Sample………………………………………………………………..6

Methodology …………………………………………………………………… ……7

Findings and Analysis of Result………………………………………………………8

Conclusion and Recommendation ………………………………………….…..........19

Reference …………………………………………………………………………… .20

Appendix ………………………………………………………….……………….….21

Product design ………………………………………………………………..…….…22

Questionnaire………………………………………………………………..………... 23

Business Model

Mission and Vision Statement………………………………………….……………...26

Objectives ……………………………………………………………………………..26

History of the Venture……………………………………………………………....…27

Value Proposition……………………………………………………………………...27

Beneficiaries ………………………………………………….………………………28
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Operations…………………………………………………………………………..….28
Product differentiation ……………………………………………………………..…..29

Income generation …………………………………………….……………………….30

Growth ……………………...………………………………………………………….31

Summary of financial Analysis of the Venture ……………….……………………….32

Dayjs selfcare collection cash flow statement ……….……………………….………..33

Selfcare products statement of comprehensive income …………………………….….34

Selfcare product statement of financial position…………………………………….….35

Introduction
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The name of the business venture is Dayj’s Selfcare Collection we are based in May Pen,

Clarendon and can be found online on all social media platforms. With the business being online

it helps form improved client service through flexibility and faster delivery of products. Delivery

is offered island wide through various courier and bearer services in Jamaica. Dayj’s Selfcare

Collection was created solely to provide both men and women with natural handmade items to

assist in maintaining themselves as well as to get rid of unwanted skin conditions and help them

to feel comfortable and look their best. Some of these products include: soaps – which treat acne

and hyperpigmentation, lip balms, body butters and scrubs which helps with exfoliation,

soothing and softening of rough or dry skin.

Dayj’s selfcare collection is a sole trader business which seeks to provide customers with high

quality products which bring forth exemplary benefits. Johnathan Korchak (2020) defines a sole

trader as a self-employed person who owns and runs their own business as an individual. He or

she is entitled to keep all profits but is liable for all losses.

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Objectives
1) To find out what age and income group of persons will be willing to purchase products

within Jamaica.

2) To find out the number of competitors and who are the main competitors to Dayjs

Selfcare Collection in Jamaica.

3) To ascertain what percentage of the consumers will be willing to purchase our selfcare

products in year one off operations in May Pen Clarendon Jamaica.

4) To determine if there is increasing or decreasing demand for our selfcare items between

2020-2021.

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Population and Sample

The population the business will be targeting in May Pen, Clarendon are persons within the age

group of 15 – 24 years old and more inclined towards the beauty industry. Stratified sampling

will be used to issue the questionnaire.

Stratified sampling is a type of method in which the total population is divided into smaller

groups or strata to complete the sampling process. The strata are formed based on some common

characteristics in the population data which in this case is age.

Twenty questionnaires were issued on January 14, 2021.

Methodology
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The methods used to carry out this research are interview and questionnaire. Twenty

questionnaires were issued using stratified sampling in the town of May Pen, Clarendon on

January 14, 2021 to persons within the age group of 16 years to 24 years old.

The questionnaires were completed on spot and returned. Questionnaires were used because they

provide an effective means of measuring the behavior, attitudes, preferences and opinions of

large numbers of students more cheaply and quickly than other methods. It also amounts as a

primary data source which is very suitable for this research. The questionnaires consisted of ten

questions which were close ended. Respondents completed them by underlining the answer that

best suited them.

The second data collection method utilized was an interview. An interview was used because it

allows for firsthand data collection. The interview question consisted of open-ended questions so

that in depth information would be collected. The interview were carried out on January 15, 2021

with five persons within the age group of 18 years to 24 years old in May Pen Clarendon.

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Findings and Analysis

1) What is your age range?

25% 10%
15%

50%

12 to 16 17 to 20 21 to 22 23 and over

Fig.1

According to fig. 1, 10% of the respondents stated that their age range is between 12 to 16y

years old, 15% stated 17 to 20 years old, 50% stated 21 to 22 years old and the remaining

25% stated in the age group 23 years and over.

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2) What is your salary scale?

70%

60%
60%

50%

40%
percentage

30%

20%
20%

10% 10%
10%

0%
$6000-$10000 $11000-$20000 $21000-$39000 $40000 and over

salary amount (JMD)

Fig.2

In relations to the diagram above 10% of the respondents stated that their salary lies within

the scale of $6,000-$10,0000, 10% stated $11,000-$20,0000, 20% stated $21,000-%39,000

and the remaining 60% stated $40,000 and over.

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3) What is the best medium that we can use to advertise our products to you?

physical marketing 5%

website 10%

facebook 30%

instagrsam 55%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Fig.3

With regards to the diagram above 5% of the respondents stated that physical marketing is

the best medium that can be used to advertise our products, 10% stated website, 30% stated

Facebook and the remaining 55% stated by Instagram.

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4) How do you rate the quality of our products on a scale of 1-10?

 5%
17% 8%

70%

1 to 3 6 to 7 8 to 9 10

Fig .4

The diagram above shows the response of respondents in relation to the quality of our

products on a scale of 1-10. 5% stated 1-3, 8% stated 6-7, 70% stated 8-9 and the remaining

17% stated 10.

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5) Why do you purchase our products?

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 70%

60%
60%

50%

40%

30%
30%

20%

10%
10%

0%
for family for personal use for resale

Fig 5

According to fig.5, 10% of the respondents stated that they purchase our products for family

members. 30% stated for personal use and the remaining 60% stated for resale.

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6) What is your demand like for selfcare products on a scale of 1-10?

 Sales

5%
5%

80%

10%

1 to 3 4 to 6 7 to 8 9 to10

Fig 6

According to the diagram above 5% of respondents stated that their demand for selfcare

products range from 1-3, 5% stated 4-6, 10% stated 7-8 and 80% stated 9-10.

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7) What selfcare item do you demand the most?

 Item Percentage

soap 30%

Lip gloss/ lip balm 40%

Body scrub 10%

Body butter 20%

Table 1

According to the table above 30% of the respondents stated that they demand soap the most,

40% stated that they demand lip gloss/ lip balm, 10% stated that they demand body scrub

and 20% stated that they demand body butter the most.

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8) What is your preferred way of shopping?

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
online physical store

Series 1

Fig 7

In relations to the figure 7 above 85% of the respondents stated that they rather purchasing

from an online platform and 15% stated that they rather a physical store.

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 Analysis of Results

Product Characteristics

Dayjs Selfcare Collection is a cosmetics brand that sells affordable products that assist

customers in maintaining themselves as well as to get rid of unwanted skin conditions and

help them to feel comfortable and look their best. Some of the products include soaps –

which treat acne and hyperpigmentation, lip balms, body butters and scrubs which helps

with exfoliation, soothing and softening of rough or dry skin. Our products are handmade

and 100% natural. Our formulas contain a variety of natural ingredients which are packed

with benefits for then skin. This reduces any harmful effects that may occur with the usage

or other products with contain harsh chemicals. We also take into consideration the skin

types of our customers which is extremely important because the skin serves as the body’s

first barrier against bacteria and in order to properly care for the skin knowledge of the

different skin types must exist.

Market Analysis

In relations to figure 6, where 80% of respondents stated that their demand for selfcare items

range from 9-10, it can be concluded that there is indeed a market for our products. Our products

help with unwanted skin conditions such as hyperpigmentation and acne, chapped lips

exfoliation and soothing of the skin which are problems people face on a daily basis. However,

there is a possibility that a new business might develop and pose a threat to us. There is great

demand for our products in our proposed area of operation and an even greater market can be

achieved if our products are marketed to a larger audience.

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Sales Analysis

If our products are sold for $1 000 each and the projected number of customers per year is 50

purchasing two items each time, then Dayjs Selfcare Collections projected annually sales are to

gain $200,000 JMD. The products offered by Dayjs Selfcare Collection are not seasonal and

therefore will be offered all year round. There is room for a potential increase in our annual sales

if our services are offered to a larger market.

Customer Analysis

The main customers of Dayjs Selfcare Collection are retailers and consumers. According to fig 2.

majority of our customers are in the age range of 21 to 22 years group and belong to the salary

scale of $40 000 and over. Most of our sales come from other businesses for retail purposes,

with this being so we make it a priority to provide them with reasonable wholesale costs where

they can make a decent profit after reselling.

Promotion and Advertising.

The most effective medium that can be used to inform our customers about our products are

Instagram and Facebook from figure 3 where 55% of the respondents stated Instagram and 30%

stated Facebook. These social platforms will allow our products to reach a wide variety of

audience within minutes.

Another effective way of advertising is also through popular radio stations that are recognized by

young adults. It is more memorable, provides remarkable results, offers cost effectiveness and

time efficiency.
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Pricing Strategy

Our suggested retail price varies per item, prices range from $350.00-$1 000.00 per item. Up to

25% discounts are offered to customers when purchasing wholesale, wholesale discounts start as

low as 3 items. Our products are supplied all year round with no price increases regardless of

season or demand. In building our brand we strive to remain affordable so that every and anyone

can purchase our products.

Competition

A lot of competitors can be found in the cosmetic and selfcare industry some of which include

Bath and Body works, MAC Cosmetics and Dove. There is a combination of fragmented and

concentrated sellers. These companies provide on a larger scale and own a large share of the

market. However, these products can sometimes contain ingredients that are harmful and

damaging to the skin and are very costly, they are also manufactured in a factory and don’t

necessarily have the customers best interest at hand. Dayjs selfcare collection on the other hand

is a small homebased selfcare brand which has the customers best interest at hand. All formulas

are 100% natural which helps to eliminate the harmful effects that might come from the

chemicals in factory made products of larger companies. We also take into consideration the

different types of skin that our customers possess. Most of our competitors are also based in

other countries while we are based in Jamaica. However, to retain our share of the market we try

to remain true to our self and our customers by providing only quality products and continue to

provide remarkable customer service to remain a part of the beauty industry.

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 Conclusion and Recommendation

It can be concluded that there is room for our products in the market, customers will always try

and support new ideas. Majority of our purchases come from retailers and consumers, so it is

important to remain affordable. Customers also want to know that the brand can be trusted as

such we will continue to provide them with quality products that are 100% natural and not

damaging to the skin. This research provides information on how marketable and what demand

for our product is like, it provides information on how profitable the business is, valid

information about pricing and advertising.

Recommendations that can assist the business in achieving its objectives include:

1. Providing free samples to the community of operation to entice buyers. By doing so they

will get a feel of what the product is like and experience its benefits.

2. Using a variety of promotional mediums such as social media and well-constructed

advertisements to draw the attention of potential buyers.

3. Remaining affordable to all by avoiding drastic hikes in prices for selfcare products.

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 Reference

Collins (2021). What is an interview. Retrieved from

http://www.collinsdictionary.com/amp/english/interview

Korchak, Johnathan (2020). What is a sole trader. Retrieved from

https://www.informdirect.co.uk/business-management/what-is-a-sole-trader/

McLeod, Sual (2018). Questionnaire; Definition, Design and types. Retrieved from

http://www.simplypsychology.org/questionnaires.html

Production Design
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 Questionnaire

Instructions: Please select the appropriate response for each question. This information will

be kept confidential and there is no need to write your name on the questionnaire.

1) What is your age range?

A. 12-16

B. 17-20

C. 21-22

D. 23 and over

2) What is your salary scale?

A. $6000-$10000

B. $11,000-$20000

C. $21,000- $35000

D. $40000 and over

3) What is the best medium that we can use to advertise our products to you?

A. Facebook

B. Instagram

C. Website

D. Physically

4) Are you aware of any other businesses suppling similar natural handmade products in May
Pen Clarendon?
A. Yes

B. No
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5) How do you rate the quality of our products on a scale of 1-10?

A. 1-3

B. 6-7

C. 8-9

D. 10

6) How do you find our pricing?

A. Reasonable

B. Cheap

C. Costly

D. Other _____________

7) Why do you purchase our products?

A. For resale

B. For personal use

C. For family

D. Other

8) What is your demand like for selfcare products on a scale of 1-10?

A. 1-3

B. 4-6

C. 7-8

D. 9-10
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9) What selfcare item do you demand the most?

A. soap

B. Lip gloss/ lip balm

C. Body scrub

D. Body butter

10) What is your preferred way of shopping?

A. Online

B. Physical store

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 Business Model

Dayjs Selfcare Collection Mission Statement

Dayjs Selfcare Collection seeks to provide its customers with 100% organic and cruelty free

selfcare products that will give maximum satisfaction to customers while remaining affordable.

Dayjs Selfcare Collection Vision Statement

Dayjs Selfcare Collection would like to become the first-choice brand for natural selfcare items

in Clarendon through the distribution of authentic and high-quality products.

Objectives

This business aims to:

 Satisfy the wants and needs of its customers.

 Maintain a competitive edge in the cosmetics industry.

 Monopolize the selfcare market in May Pen Clarendon.

 Grow its target market throughout the entire parish of Clarendon.

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 History of the Venture

Dayjs Selfcare Collection was created to generate income for the entrepreneur and make profits

while providing natural and cruelty free selfcare items. Such as soaps lip balms and lip glosses.

All ingredients used to formulate our products are all natural and well known by most

individuals and have been used in one way or another over the years such as coconut oil and

turmeric root powder. The products of large companies and manufactures are mainly chemical

based and minimal natural ingredients if any. This business operates as a sole proprietorship.

Value Proposition

Value is created when customer needs and wants are being met. Everyone has a need for selfcare

items, men, women both young and old. Dayjs Selfcare Collection helps to provide healthy, fresh

and flourishing skin. When compared to other products in the market our products are reasonable

and affordable.

We offer a variety of skincare items so that customers can choose what works best for them. We

are an online based business which allows for fast access to our products wherever you are at any

time. We also provide customers with the main ingredients used in our products and the benefits

associated with each. Although we mainly focus on customers in May Pen Clarendon, deliveries

are done to all parishes in Jamaica by using different bearer services so customers can order our

products and receive within the comfort of their home. Our customers are guaranteed to receive

remarkable results from using our products such as clear and acne free skin, hydrated lips and

healthy skin.
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 Beneficiaries

At Dayjs Selfcare Collection we aim to sell our products to businesses and residents located in

the parish of Clarendon. We cater for business-to-business sales as well as business to customer.

We process raw materials and then sell the finished product to our customers. A value chain is a

step-by-step business model for transforming a product or service from idea to reality. According

to Tardi, Carla (2020) a value chain helps increase a business's efficiency so the business can

deliver the most value for the least possible cost.

Operations

In order for our completely natural product to be highly competitive in the organics market, the

product must be standardized. Each product will contain the same ratio of ingredients. For

example, two teaspoons of turmeric powder to one pound of our soap base and one ounce of

coconut oil to every two ounces of soy and bee's wax. By perfect ratio of ingredients in each

product of Dayjs Selfcare Collection will help determine the products success. If a 1:2 ratio is

developed by the business, it will be maintained.

Accounts on the different social media apps and sites will be used to showcase and advertise our

products. As the business progresses, other mediums such as: radio and television advertisements

will be used.
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 Product Differentiation

Dayjs Selfcare Collection brings new and unique products into the cosmetics market. All

ingredients used to create our products are 100% natural. These days few if any products are

100% natural and organic.

Dayjs Selfcare Collection products helps to get rid of unwanted skin conditions such as acne,

dark spots and hyperpigmentation. Our lip care products also help to hydrate and moisturize the

lips leaving them soft, moist, and smooth. The cost of our products ranges from ($150- $1 000)

which is very reasonable and affordable when compared to other cosmetic brands with prices

($1 200 and over). Our market research suggests that our price is within the range that majority

of the respondents would be willing to pay for our products.

Dayjs Selfcare Collection products are affordable and guaranteed to work.

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 Income Generation

This business aims to make money through personal savings of the owner, loans from family and

friends and through the sale of its products. Operating leverage is a measure of how revenue

growth translates into growth in operating income. It is a measure of leverage, and of how risky,

or volatile, a company's operating income is.

If the business should make yearly sales of $200 000 and expense of $159,250, then its profit

before taxes will be $40,750.

Our business has a small profit margin and medium volume operation. The production

capabilities of our business are in the growing stage of development; however, we will manage

to produce affordable and a moderate turnover rate.

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 Growth

Our main focus is to start selling our products within the May Pen Community, as the business

develops, we hope to expand our reach to the entire parish of Clarendon and eventually we hope

to distribute our products in all parishes of Jamaica.

Firstly, we will focus on building our name and good reputation within the May Pen town. After

the first twelve months we will seek to expand our reach to neighboring communities in the area.

Once the business is successful, after the first five years have passed, we hope to develop a

physical location and start distribution of our products within other parishes of Jamaica and even

ship to other neighboring countries. The business will operate under the growth model.

Operation under this model means we seek to gain profits and reinvest the profits into the

business for further expansion and provide profits for potential investors in short and long-term

projections.

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 Summary of Financial Analysis of the Venture

Capital Requirements Sources

$60,000 cheque Loan from family member

$75,000 cash Personal savings

Graphics design software and printer Personal savings

($10,000)

Equipment ($20,000) Personal savings

Containers ($30,000) Purchase

Raw materials (65,000) Purchase

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 Dayjs Selfcare Collection

Cash Flow Statement for the year ended 31 March 2022

$ $

Net income 34 637.5

Add Income tax 6 112.5

Operating Profit before Working Capital Charges 40 750

Increase in accounts receivable (10 000)

(10 000)

Cash generated from operations 30 750

Income tax paid (6 112.5)

(6 112.5)

Net Cash Inflow from Operating Activities 24 637.5

Cash Flow from Financing Activities

Net Cash Flow from financing activities 60 000

Net Increase in Cash and Cash Equivalents 84 637.5

Cash and Cash Equivalents at Beginning 75 000

Cash and Cash Equivalents at End 159 637.5

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 Dayjs Selfcare Products

Statement of Comprehensive Income for the Year ended March 31, 2022

$ $ $

Net sales 200 000

Cost of goods sold (57 000)

Gross profit 143 000

Less operating expenses

Selling and distribution 40 000

Shop rent 48 000

Administrative Expenses 14 250

(102 250)
Income from operations before taxes 40 750
Tax expense (15% * 40 750) (6 112.50)

Net Income 34 637.50

COMPREHENSIVE NET INCOME 34 637.50

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 Dayjs Self-care Products
Statement of Financial Position as at March 31, 2022
$ $
ASSETS
Non-Current Assets
Equipment 20 000
Printer 10 000
Total non-current assets 30 000
Current Assets
Inventory 19 000
Accounts receivable 10 000
Bank 60 000
Cash 99 637.50
Total Current Assets 188 637.50
Less Non-current Liabilities
Loan from family members (60 000)
TOTAL NET ASSETS 158 637.50
Financed by:
Owners’ Equity
Capital: (personal savings) 75 000
Reserves
Retained Earnings ($49 000 * + $34 637.50) 83 637.50
TOTAL OWNER’S EQUITY & TOTAL NET ASSETS 158 637.50
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Registration Number:-
Allocation of Marks for Market Research (30 marks)
Marks Marks
Awarded
1. Research Objectives (2)

- At least TWO objectives clearly stated and relevant to 2 2

the topic chosen
- ONE objective clearly stated and relevant to the topic 1

2.Target / Sample (4)

- Population /Sample selection process adequately 3-4 4
described
- Population /Sample selection process moderately 2
described
- Population /Sample selection process inadequately 1
described

3. Methodology (4)
- 3Thorough description of methodology used. 4 4
- Fair description of methodology used 2 -3
- Inadequate description of methodology used 1

4. Questionnaire (6)
- Questionnaire well constructed 5-6 6
- Questionnaire fairly constructed 3-4
- Questionnaire inadequately constructed 1 -2

5. Findings and Analysis (10)

- Comprehensive analysis of findings 8 - 10 8
- Moderate analysis of findings 4-7
- Inadequate analysis of findings 1-3

6. Conclusion (4)
- Conclusion related to findings and analysis 4
- Conclusion fairly well related to findings and analysis 2 -3 3
34

- Conclusion not closely related to findings and 1

analysis
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TOTAL MARKS (30) 27

Allocation of Marks for Business Model (30 marks)
Marks Marks
Awarded
1. History of Venture (2)
- Comprehensive description of concept and venture 2 2
- Weak description of concept and venture 1

2. Mission/ Vision Statement (2)

- Mission and vision statement clearly stated 2 2
- Mission and vision statement not clearly stated 1

3. Value Proposition (3)

- Comprehensive description of value proposition 3 3
- Moderate description of value proposition 2
- Inadequate description of value proposition 1

4. Beneficiaries (2)
- Comprehensive description of beneficiaries 2 2
- Inadequate description of beneficiaries 1

5. Operations (2)
- Comprehensive description of operations 2 2
- Inadequate description of operations 1

6. Product differentiation (3)

- Comprehensive description of product differentiation 3 3
- Moderate description of product differentiation 2
- Inadequate description of product differentiation 1

7. Income Generation (4)

- Comprehensive description of income generation 4
- Moderate description of income generation 2-3 2
- Inadequate description of income generation 1

8. Growth (2)
- Comprehensive description of venture growth model 2 2
- Moderate description of venture growth model 1

9. Summary of Financial Analysis (3)

- Comprehensive treatment of financial request and 3
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cash flow statement

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- Moderate treatment of financial request and 2 2

cash flow statement
 - Inadequate treatment of financial request and 1
cash flow statement
10. Presentation of Project (7)
- Table of content presented in an acceptable format 1 1
- Information communicated using correct grammar 1 -2 1
- References presented in appropriate format 1-2 2
- Information in project report presented in logically 1-2 2
and coherently

TOTAL (30) 26

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