Nudestix: Thriving in Spite of a Global Pandemic

Executive Summary

Nudestix has the potential of scaling its growth and presence from over 30 countries to over 150 countries in the world in 3 years with the suitable measures in place. 

The company produces relevant selling beauty products in the current dynamic market and interconnected global society. 

The focus on engagement with clients and training them on the use and value of various products help clients create interest in the company’s products, make referrals, and increase client loyalties. 

The company should consider building capacity for scaling and systematically expanding to increase its customer bases, fan bases, global presence, production capacity, distribution, and continuous improvement. 

Since the company is premised on meeting the clients’ changing beauty needs, the management should consider creating subsidiaries for different market regions and customer tastes across the globe that will help the firm meet its clients’ needs in various regions without compromising on its mission, quality, and relevance to the products to its clients.  

The company should also maintain its current model of maintaining as of use and products that can be used on the go as the current culture is prevalent with such practices where people who want things that can be used fast and efficiently while achieving excellent results like those that would be achieved for products that take longer to achieve and use.  

The bottom-line is simplicity., ease of use, engagement, and speed such that the products remain relevant and affordable to its clients across the globe since clients want value for their money while having their needs or wants to be met.  

Company Background/Current Situation

Business and its History

The company’s name is Nudestix Inc. (Nudestix), a global firm that deals in cutting-edge beauty products that are unique, eco-friendly, and relevant to changing times and customer preferences and needs.  

The company was started by Jenny Frankel, its chief executive officer, her daughters, Frankel’s dad, and her husband (Nudestix Inc., 2021). 

Nudestix has been in existence for about seven years since its inception in 2014 and has since expanded to having its products in over 30 countries and over 850 distribution points due to its tremendous growth.  

The current situation is that Nudestix continues to feel the negative effects of challenges and uncertainty of the current global Covid-19 pandemic, among other issues.  

Nudestix was conceived by Jenny Frankel, relying on her two decades of experience in the beauty industry and training as a chemical engineer coupled with an eye for business. 

The company started when Frankel had taken early retirement to be with her teenage daughters Ally and Taylor.  

The creation of Nudestix was inspired by Frankel’s observation of her daughters’ beauty behaviors through the entrepreneurial lens and identifying a gap in the market as the girls did not find beauty products suitable to their daily needs. 

The founder was further inspired by the need for multitasking sticks and a smart on-the-go modern routine.  

The need for easy-to-use products that shorten makeup routines and admiration for natural looks with neutral tones were crucial factors in the inception of Nudestix, which had its first product produced in May 2014 (Nudestix Inc., 2021) .  

Key facts and relevant information

Known:  

The company, Nudestix, is headquartered in Toronto, Ontario, Canada. 

Jenny Frankel and Taylor Frankel started Nudestix. 

Nudestix is a for-profit company. 

The company's name is premised on leaving one’s facial appearance ‘nude,’ that is, maintaining one’s natural beauty rather than hiding it under heavy makeup (Katsimente & Eldås, 2020) . Hence the products are meant to be light, easily applicable, and safe for use to maintain one’s natural beauty but give some radiance and glow to it. 

Nudestix deals in beauty cosmetics and fashion products.  

The primary funding type for the company is Angel funding. 

The company was launched by Jenny Frankel with her two teenage daughters Ally and Taylor. 

The company has grown immensely since its inception in 2014, with its product range increasing from 41 to over 100today. 

Facts not known: 

The financial value of engagement with clients and client training. 

The amounts earned from the collaborations and partnerships in terms of new clients and profit impacts. 

Nudestix Goals/Objectives

To help people with hectic schedules achieve the touch of color and radiance, they need while maintaining their natural beauty. 

To promote modern and natural beauty for busy people. 

To create multi-purpose beauty products for 10-minutes makeup routines that are easily portable in bags for quick retouches. 

To develop products that maintain one’s natural look, are modern, on-the-go, and complements or enhance one’s natural features.  

To promote natural beauty and protect skin by creating amazing-colored products which are vitamin-fueled to act as moisturizers and antioxidants. 

Business Analysis

External Analysis

Market Analysis  

a) PEST analysis’s 

Political:  Strict guidelines on manufacturing products to ensure safety and quality require Nudestix to acquire several approvals from international and national governing bodies. Since most of the products are based on skin-to-skin contact bodies, such as the    FDA, have to give the necessary approval, which cist Nudestix finances. However, the company is currently well established within Europe and should have minimum safety issues as it already meets the strict currency rules. The company could have problems when it comes to getting similar approvals overseas, which have different ways of doing such approvals. 

The company has to deal with the requirements, much as the submission of ingredients used in the manufacturing process, which could be challenging. 

Economic:  The issues of economic recession in the pasta and currently the Covid-19 pandemic is a form of the recession on its own since it has halted many economic activities.  

The growing amounts of money that governments make from taxing beauty products could prompt these governments to increase taxes which will affect the performance of Nudestix that could negatively impact its performance. 

Social 

Efforts by companies such as Loreal’s in the distribution of sanitizers and lotions to front-line workers could affect the popularity of Nudestix even the firm works on product sing environmentally friends’ safe products it uses,  

Technological:  The current technological advancements affect the production, distribution, and interactions that Nudestix should be alert always to take corrective measures, 

b) Porters five forces analysis 

Nudestix, under porter’s five forces analysis, has the following issues: 

The threat of new entrants: Nudestix faces stiff competition and the likelihood of having new entrants into the industry because of the profitable industry that beauty is, which has for some time given its players' great profit returns, and thus many new firms will be attracted to join and thus lower profitability. 

The threat of substitutes: Since Nudestix is reasonably new on the market, there is also the problem of clients having several alternatives in terms of goods that can sort their beauty needs. Therefore, the substitute goods weaken the company is barraging because customers could easily switch to other companies with similar products at fairer costs. 

The competitor rivalry:  The company Nudestix faces stiff competition from other beauty products companies. Thus, they have to invest more in advertising and handle issues of rivalry that do not augur well with clients. 

Suppliers' bargaining power:  The power of suppliers of Nudestix is currently low, which gives the company a chance to raise its profits as the current beauty products raw materials suppliers have flooded the market, giving manufacturers several options. 

Customers' bargaining power: the customers can highly since they have several beauty products and companies. The company has to provide facilitating coatomer offers and increase the positive marketing of the firm to help it get and keep more customers. Moreover, the number of competing firms is low, making the customers generally have higher bargaining power. 

Competitive analysis 

Company	No. of Employees	Annual revenue in $ millions
Nudestix	121	34.8
Estee Launder	5000	2,000
Covergirl	374	51.8
Supergoop	73	1.8
Dior	150,479	68.2
Shiseido	40,000	8.9
Lancôme	9,000	5200
Coty	19,000	4.6
Sephora	40,000	11800
Clarins	10	10

Table 1: The Competitive analysis of Nudestix Inc. 2020 (Nudestix Inc., 2021) 

Nudestix has competitors such as Estee Lauder, Covergirl, Supergoop, Door, Coty, Sephora, and Clarins.  

Estee Lauder, which was founded in 1946, unlike Nudestix’ 2014 and has 4879 more employees than Nudestix, is a major competitor, especially in the persona; products segment, and even though Estee is based in New York, it is a worthy competitor that Nudestix should be wary of.  

On the other hand, Covergirl stands out as Nudestix’s major rival with more extended existence since 1962 and $17M million more annual revenue than Nudestix. 

A Supergoop competes against Nudestix in logistics wholesale, and a real distributor wand was founded in 2007. 

Nudestix has more competitors but looks to have the chance of survival and staying ahead of its competition through its innovative methods and unique models and products. Moreover, the company is equally much ahead of its competitional terms of customer bases, growth, and market share compared to its competitors how have been in existence much longer, which is a good sign of early dominance in the market (Watkiss & Krol, 2021) .  

Internal Analysis

Company SWOT 

Strengths:  High and effective social media presence on Instagram, YouTube, Tumblr with a large following that helps build its brand image positively globally. 

Weaknesses:  The website has SEPO issues since it does not return popular makeup searches, and the website has insufficient security to protect clients’ identities.  

Opportunities:  Nudestix has a chance of making substantial website sales, getting more major beauty retailers on board. The company could earn lots of revenues for selling their beauty products directly through the company website, which brings in more revenue than selling through partners, which implies revenue sharing. The more the retailers, the more the customers, 

Threats:  Nudestix faces the threat of losing clients to well-established beauty products brands such as Sephora and others that have been around for longer than presently. 

Target Market and Segmentation

Nudestix Target market includes: 

Beauty beginners and experts 

Millennials 

Primarily women 

People seeking easy application of beauty products 

Women that love to maintain naturalness and enhance their natural features using the right products. 

Financial analysis

Currently, Nudestix Inc makes an average of USD 4,36 million annually. 

Figure 1: The annual revenue of Nudestix Inc. as at December 2020 (Nudestix Inc., 2021) . 

Problem Identification and Definition 

Closure of shops 

Closure manufacturing companies 

Stoppage of class and some marketing events 

Social media influence 

Solutions to the Key Problems

Maintain authenticity, destructiveness, and innovativeness in their operations and product development. 

In the current Covid-19 era, Nudestix must scale up its virtual operations and global distribution through the best means possible o ensure that clients get their products timely. 

Customers build their trust and loyalty whenever they feel the company is there to stay since they have the confidence, they can continue greeting the products they like in the long run.  

Maintain Uniqueness: 

The uniqueness of Nudestix of promoting natural looks as a perfect fit for any face resonates well with most people globally and will help the company maintain relevance for an extended period.  

Increase Engagement 

The company Nudestix should keep its engagement model and fast-track its engagement endeavors. The engagement allows the company to get genuine feedback from existing clients and gives the clients opportunities to ask questions, air out their grievances and preferences, and learn more about its products. 

In this way, clients will be more satisfied and have their beauty needs met, promoting them to remain loyal and refer other clients to the firm’s products. In the current Covid-19 era, the best way to central engagement is online or virtually and creating packages that reward existing clients for helping in marketing the economy and its products.  

Engagement can also help clients increase their bounce rates on the firm’s website and browse other pages longer out of genuine interest.  

Nudestix also enjoys its unique packaging and stick design which it needs to maintain and improve to separate itself from the many beauties and cosmetics firms competing for these same clients. 

Improve inclusivity and diversity 

Nudestix promotes self-expression in beauty encourages people to leave with courage and fearlessly stand together, 

The firm should continually ensure that clients feel welcome and honored in every good way by ensuring that their employees reflect their stance of promoting diversity and honoring self-expression. 

The Covid-19 pandemic has come with uncertainty, primarily due to restrictions in travels and operations that inconvenience several businesses and personal activities from their regular happenings (Katsimente & Eldås, 2020) .   

Nudestix will solve the issue by planning on keeping the business growth within this environment,  

The plans will be made to keep as many manufacturing point firms working as much possible, keep stores that can be open, and find alternatives such as online retailing for their products and services to address the beauty needs of clients across the globe timely amidst the pandemic.  

The online stores will remain open for purposes of delivering online orders and actualizing the shipments from warehouses. However, all these activities will be done in liaison with local government regulations and adherence to the counselor directives of both the World Health Organization (WHO) and Centers for Disease Control and Prevention (CDC) (Tambunan, 2021) . 

The problem of supply chain and order interruptions is also a significant problem that can be sorted out by increasing the number of certified manufacturing partners based on facility and evidence-based methods that will help the problem of product uniaxiality at any point.  

The problem of temporarily closed stores, suspension of store makeup services can be solved by resorting to online solutions like training and teaching learners online and delivering goods to achieve results better than shown in figure 3 (as shown in the appendix) 

Implementation Plan

The managers and organization leaders should be under instructions to ensure good manufacturing practices for cosmetics by properly testing waw materials on quality and supplier level before production commences in the company’s manufacturer partner facilities. 

Cleanliness and hygiene are of uttermost importance and will thus be upheld in all the facilities that handle the company’s goods, especially the GMP-certified manufacturing centers and plants. 

Project Management Plan

Nudestix intends to enhance its competitiveness in the market through an increased customer base, vast fan base, increased reachability, consistent production and supply of good services, and staying ahead of all its competitors (Nudestix Inc., 2021) .  

The project will involve increasing the company’s competitiveness and bargaining power in the content of the cosmetic industry by developing a unique cosmetic chain with over 250 cosmetics that meet the needs of various clients across the globe (see figure 4 in the appendix). 

The key participants will involve the founder Jenny and other key company leaders especially the global management team developing customized plans for various partner centers sites and personnel. 

The project will initially run in the first 3 to 6 months; the company will offer several discounts on selected products to help get new customers buying and the older wone referring the company to others. 

The second phase will include data and information from customers on any new products they would like to buy based on their tastes and buying capacity.  

Nudestix will model a network exchange model that will help build its bargaining power with other cosmetic brands. In addition, the network will target college students and middle-income working classes women for the products.  

The package will also include a variety of discounts and products that meet the needs and demands of various groups of people in the global markets. 

As part of the project, targets to increase the company's earnings by 30% in the first year of implementation by featuring popular products and their unique solutions, thus encouraging an exchange network between clients and Nudestix. 

The project will have over 80% of its activities online since the beauty instills turned online. As a result, the product managers will be cognizant of new consumers after fresh norms and niche products.  

Managers will also be under instructions to report any viable enterprises that the company can acquire or partner with or co-launch products to increase its market feasibility. 

The critical aspect of the project will be keeping in touch with the transition in the company’s market share and growth throughout the practices to ensure a positive trend. 

The project will also keep trends in check, especially on the competitor's top cosmetics, brands, or companies, to determine what they are doing differently and decipher opportunities for change.  

The last aspect that the project will focus on includes the strategies to ensure that strategies being used have the most impact and resonate with the clients' preferences while beating the competition when it comes to marketing growth and the company's success.  

Measurement/Tracking & Contingency Plan

The quantities of goods sold, shipped, and delivered will be tracked monthly by computing the weekly, daily, and hourly orders at every stage. The company will assess the impacts of Covid-19 on business by checking these quantities against the sales, volume, profits margin, and business growth.  

The measurement and tracking will be done at different levels, including the distributors, the partners' shops, and the main regional dispatch points.  

The tracking will also be based on the different types of products and the outcomes consolidated in a single document to help depict any discrepancies and changes in such effects over periods and compare products to each other.  

The contingency plan is to produce a natural and sustainable product and not just mass production or give clients a discount. The project aims to focus on quality and the correct formulation by regularly considering customer reviews and checking the most sustainable, healthy, and friendly formulation. 

If plan A fails the plan B would be to win clients through being process superiority issues on the approach of organic, clean, and natural with the campaigns promoting quick to apply organic or natural products to attain annual revenues of $54.5 by the year 2028, 

It all lies in how the company will define to its customers as that will depend on their receptivity on whether they would like to purchase the products.  

The plan B is premised on being wary of any likely toxicity in the products of the competition and ensuring thus the products of Nudestix are safe, made from natural ingredients and essential oils to keep the company relevant and likable in the market.  

Moreover, when consumers become more informed about the downsides of certain personal beauty are practices and the need to using safe products as well as protecting their skin, they will build interest in Nudestix price, which will help the company create products that resonate well with trends in goods they are willing to purchase for their top-quality expectation levels for a growth experience. 

Plan B also considers or is sensitive to the varying cultures, rituals, and ethnicities coupled with the diversity as it is a vital driving force on how people shop and engage in beauty activities either individually or in groups. 

They limit the chances of failure; the project will consider the significant difference among various age groups such as the millennials, which affects their purchasing choices coupled with their philosophy towards organic goods. 

The purchasing decisions basis on media or online reviews is a great area that the project will consider to promote the firm’s desired narrative.  

References

Katsimente, A., & Eldås, I.-M. (2020). How do Social Media Entrepreneurs Monetize YouTube? 

Nudestix Inc. (2021, October 18). About us . Retrieved from Nudestix Inc.: https://www.nudestix.com/pages/about-us 

Tambunan, T. (2021). Micro, small and medium enterprises in times of crisis: Evidence from Indonesia. Journal of the International Council for Small Business, 1-25 , https://doi.org/10.1080/26437015.2021.1934754. 

Watkiss, L., & Krol, S. (2021). Nudestix: Thriving in Spite of a Global Pandemic. Ivey ID: 9B21M026.https://www.iveypublishing.ca/.