Information Dashboards

NEW PRODUCT IDEA (Online cosmetic surgery advice and solutions):

We will have one set of cosmetic surgery doctors who will remain online
24 hours a day, 7 days a week, give online advice to the site visitor.
Show them with the help of pictures and videos the improvement that can
be made, quote a price for the cosmetic improvement and direct them to
an empanelled cosmetic surgeon who will carry out the surgery. This
surgery will be carried out with complete anonymity and not even the
operating surgeon will know the identity of the patient. To further
protect the identity of the patient, the surgery will be conducted at a
confidential operating theater and to avoid payment by credit card, the
bill may be paid in cash.

TARGET MARKET AND THE BENEFITS OF THE PRODUCT TO THE TARGET MARKET:



The target market is the movie and television industry where the actors
are willing to spend money for high quality cosmetic improvements if
confidentiality is maintained. These are also easy to target as the
publicity material and other communication can easily be sent to them by
direct marketing agencies for a small fee. The competitors are the
surgeons in Los Angeles and in other parts of Southern California who
are already operating. However, they lack quality assurance, which a
brand name and a systematic referral system have. Several surgeons have
earned a bad reputation of actually defacing the ‘stars’. So if our
business can establish a strong brand name and reputation and oversee
the performance of its surgeons then there is an excellent market for
our business.

The benefits it brings to the consumers is that they receive the
standardized advice and counseling not from a predatory surgeon but from
a reputed panel of experts who have the interest of the customer at
heart. Depending on the identified and accepted needs of the customer,
the best surgeon who is empanelled will be chosen and he will
confidentially carry out the operation under the supervision of our
company. We are not a private hospital or a private clinic but a
specialized online service provider for a specialized service.

There are two types of competitive advantage--cost and differentiation.
Cost advantage occurs when the firm is able to deliver the same benefits
of competitors at a lower cost. Differentiation advantage is when a firm
delivers benefits that exceed those of competing brands. A firm must
have resources or capabilities that are superior to those of its
competitors in order to establish and thus sustain a competitive
advantage.

For this particular problem, I will employ a differentiation focus
strategy. In the differentiation focus strategy, a business aims to
differentiate within just one or a small number of target market
segments. The special customer needs of the segment mean that there are
opportunities to provide products that are clearly different from
competitors who may be targeting a broader group of customers. An
important issue for any business adopting this strategy is to ensure
that customers really do have different needs and wants - in other words
that there is a valid basis for differentiation - and that existing
competitor products are not meeting those needs and wants.

In this case, our customers will be high-profile celebrities who want to
engage in cosmetics surgery without having others find out. By
providing a confidential online setting where they can have their
questions answered, set up an appointment and have their surgery
conducted in a private place allows for this. Most other cosmetic
surgeons do not offer advice online so this is a competitive advantage
for online advice and surgery resources. The surgery will take place in
an operating theater and payment will be in the form of cash. These are
the key capabilities.

The macro trend analysis for the cinema industry and for the plastic
surgery industry can be culled from this secondary data.

Film Production: Market Size: The US market for film production grew a
dramatic 10.6% from 2000 to a value of US$8.41 billion in 2001, which
itself was in line with the 23% annual increases in theatre revenue,
largely due to ticket price increases.

• Film Production: Market Sectors: Capturing a 91.7% market share at a
value of US$7.7 billion, the new release sector was the largest of the
US film production market in 2001.

• Film Production: Share of Market: Market shares in the US film
production market can fluctuate radically, due to the unpredictable
nature of the box office performances of each company’s new releases.

• Film Production: Marketing Activity: With an advertising expenditure
of US$3.8 billion, Disney had the largest sum of money for marketing its
products in 2001.

• Film Production: Corporate Overview: The US market for film
production saw a sharp rise in the number of films produced, from 628 in
1999 to over 800 in 2001.

• Film Production: Distribution: During the past six years, the
average number of screens per site has increased to 5.6 from 3.6.

• Film Production: Viewer Profile: Moviegoers, unlike television
audiences, can be reached across age groups, making this medium a very
efficient buy.

• Film Production: Market Forecasts: the US film production market is
expected to grow 23.3% over the 2002 to 2006 forecast period to a value
of US$11.0 billion.

• Film Production: Sector Forecasts: Increasing 23.5% to a value of
US$10.0 billion in 2006, new releases are expected to continue to be the
largest US film production market sector.

Apart from this, please consider the growing popularity of plastic and
reconstructive surgery for the movie industry.

Talk about knee-jerk reactions! When Demi Moore, 41, saw Star's photo of
her saggy knees in our July 19 "Celebrity Flaws" story, she supposedly
ran straight to her plastic surgeon.

In fact, according to the American Academy of Plastic Surgeons, nearly
4,000 teenagers, ages 18 and younger, underwent breast augmentation last
year, more than a 24 percent increase from the year.

It's a match made in plastic-surgery heaven. Joan Rivers, the fashion
critic who for years has openly joked about her own cosmetic surgery,
will guest star as herself on the season finale of the FX.

French performance artist Orlan, who has undergone numerous plastic
surgeries to transform her face and body to challenge traditional
perceptions of beauty, says art "has to shock." And two top plastic
surgeons are at odds over who did what to Michael Jackson's nose.

From the secondary data, it is obvious that both the movie industry and
plastic surgery in the movie industry is on the rise and is likely to
increase further. So, there is assured growth and market demand for the
website and its services.

SUMMARY CONCLUSIONS:



The secondary data shows tremendous scope for the cosmetic plastic
surgery industry in California. The segment to be targeted is the
top-notch movie stars who without even their family members’ knowledge
can undergo surgery in the best clinics. For this, the broadest range of
cosmetic strategies both surgical and non surgical will be available,
for instance if a movie star has battled with fat on her upper arms,
buttocks or stomach then the suitability of liposuction could be
considered and if a person is interested in non surgical strategies then
demabrasion or botox treatment can also be administered by the doctors
on staff. The website will surely help the star realize her goals for
image enhancement. Our company’s cosmetic surgery members would be
fully trained and certified by the national association as well as being
members of the California Society of Plastic Surgeons and experienced in
the most effective cosmetic surgery techniques.

THE FIVE FORCES:

First, the surgeons who are experienced in dealing with the movie stars
and have the experience of the latest plastic surgery procedures have to
be empanelled. Their charges are to be determined before the empanelling
and in proportion to their expertise. Second, the customers would be
informed of the cost of the operation online and they have to agree to
the charges by making an advance payment this would preclude any
bargaining at a later date.

Third, the website would try to empanel the best plastic surgeons and
make a contract with them precluding them from entering into a similar
contract with another website. Fourth, the obvious substitutes are the
non-surgical procedures, and our website would offer a combination of
surgical procedures as well as non-surgical procedures. Also, as a part
of the second year expansion project, high tech non-plastic surgical
health improvement facilities like high tech weight reduction centers
for celebrities would be established to avoid customer leakages to
substitutes. Finally, there are individual plastic surgeons who meet
the current needs of the movie stars in California, the best among those
should be empanelled by our website but the other will easily be out
competed because of the systematic organization, quality of service and
confidentiality provided by the website.

LIST OF QUESTIONS TO BE ADDRESSED THROUGH MARKITING RESEARCH:



1. What will be the total billing in the first year of operation?

2. How many customers will enlist the help of the website?

3. What will the per customer revenue be for the website in the first
year?

4. What is the list of the potential customers in the target segment?

5. What is the price level of services that will be acceptable to these
customers?

6. What will be the medium of reaching the potential customers?

7. What communication will appeal to the target consumers that will
persuade them to try the services?

8. What is the familiarity of the target customers with Internet and
what is their frequency of use?

9. Which plastic surgeons are the most reputed among the movie industry
in Southern California? How can they be contacted? How can they be
persuaded to be empanelled?

10. What are the competitors’ prices for the various procedures being
offered by our company?

11. What measures can the website take for building confidence in the
prospective customers with regards to the quality of the services
provided, the cost of the services, the follow up “check ups” and
the confidentiality of the services?

12. Who are the sources or the agents through which the stars can be
approached?

13. What will be the commission paid to these agents for their services?


14. What is the profile of the typical prospective customer of the
website?

15. What are the habits and preferences of the target customer?

RESEARCH PLAN:

RESEARCH OBJECTIVES:



1. To determine the expected sales of the website.

2. To determine the target market for the website.

3. To determine the price level to be charged to the potential
customers.

4. To determine the media to be used for reaching the target customers.

5. To determine the internet friendliness of the potential customers.

6. To determine the profile of the potential customers.

7. To determine the habits and preferences of the potential customers.

DESIGN OF THE PLAN:



1. First, to use secondary information about the movie industry and the
plastic surgery industry in the movie industry limited to the area of
Southern California. The sources will range from trade publications to
internet sources.

2. Second, to use syndicated sources to get a report on the plastic
surgery industry in the movie industry.

3. Third, survey- interviewing to be use to collect primary data
including the use of observational methods.

4. Fourth, the use of sampling methods for the selection of sample for
survey.

5. Fifth, measurement of the data collected.

6. Sixth, the tabulation of the data collected and data processing.

7. Seventh, preliminary data to be analyzed.

8. Eighth, data analysis and forecasting of sales.

METHODS TO BE USED:



1. Mainly trade journals and Internet for secondary data.

2. The CMS report on the movie industry and on the plastic surgery
industry for secondary data.

3. Observational methods will be through recording the behavior of the
target customer through indirect methods.

4. The sampling will be done by sampling design given below.

5. The data will be entered on a spreadsheet, and calculations and
analysis done from the data collected.

SAMPLE:



The target population will be all the potential users of cosmetic
plastic surgery in Southern California. The sampling frame will be the
list of all entertainment industry persons who may purchase plastic
surgery services. The sampling unit will be each member of the
entertainment industry who may purchase the services of the constructive
plastic surgery. To determine the sample size, a small-scale pilot study
will be carried out to determine an estimate of the standard deviation.
Then, take a sample size that will give us a 95 percent confidence
level. Using a combination of contact agents and prior notifications,
this will reduce non-response or refusals bias.

STATISTICS EMPLOYED:



This will be a combination of means, standard deviation and a
correlation coefficient matrix. This matrix will be used to do cluster
analysis.

OBSERVATIONAL RESEARCH:



This will be mainly through the observations made through the website.
These are the items that are clicked by the potential customers. As a
part of developing the list of preferences of the potential customers,
especially the movie industry, the observations will be made of the
behavior of the actors. For example, the hairdressers who are patronized
by the movie stars, the cosmetics which are most popular and the
outfitters who are most visited by the target customers.

ESTIMATE OF THE MARKET SIZE/ FORECAST:

From the secondary data, the estimate of the market size of the cosmetic
plastic surgery industry in the movie industry. From this data, we will
use moving averages or exponential smoothing to estimate the market size
in the year of launching of the website. Based on the percent of the
market share that will be targeting for the first year, we will be able
to get an estimate of the sales during the first year.

TARGET MARKET FOR ONLINE COSMETIC PLASTIC SURGERY:

Demographic description: age: above 35 years, sex: both sexes, family
size: Single/married 4-6, income: gross more than $6M yearly,
occupation: entertainment industry star, education: undergraduate or
lower, family life cycle: married and having children, religion:
Christian. Nationality: American or a green card holder.

Geographic description: residing in Southern California.

Behavioral description: sociable and high need for achievement.

MATRIX FOR THE SEGMENT:

MARKET ATTRACTIVENES

High
Medium Low



COMPETITIVE

Top Stars/internet savvy Aging stars Strugglers

Top Stars/no internet Ambitious stars Young Beginners

Top Stars/ P Surgery Done Aging stars/ P Surgery Done
Strugglers/Beginners/ Surgery Done

POSITION

High

Medium

Low

POSITIONING STATEMENT:

The website will provide excellent, high quality advice and service
related to Cosmetic Plastic Surgery mainly in the area of Southern
California. The services in relation to those of our competitors will be
of the highest quality, maintain confidentiality and at reasonable
prices.

PERCEPTUAL MAP:

Marina:

Marina Plastic Surgery is home to two board-certified HYPERLINK
"http://www.marinaplasticsurgery.com/doctor.cfm" Southern California
Plastic Surgeons . Serving the cosmetic surgery needs of patients from
the Los Angeles area and around the world, they are dedicated to
offering the latest advancements in HYPERLINK
"http://www.marinaplasticsurgery.com/nse/" Cosmetic Plastic Surgery
and HYPERLINK "http://www.thestevensinstitute.com" \o "Los Angeles
Medical Day Spa" Medical Spa Services . They have partnered two Plastic
Surgeons with a Medical Day Spa and a Make-Up Artist to provide all of
the services needed to look the very best!



The board certified plastic surgeons, HYPERLINK
"http://www.marinaplasticsurgery.com/doctor.cfm" Dr. Grant Stevens* and
Dr. David A. Stoker , are internationally recognized for their
experience with cutting edge technology including laser breast surgery,
power-assisted liposuction, and minimal incision facelifts. Whether
looking for a temporary or permanent improvement, they will listen to
your needs and financial considerations to match with the best resources
and procedures available. They are committed to providing the
personalized attention deserved... because aging should be a beautiful
experience!

HYPERLINK "http://www.marinaplasticsurgery.com/"
http://www.marinaplasticsurgery.com/

Southern California Plastic Surgery Group:

Plastic and reconstructive surgery covers a wide spectrum of organ
systems and body parts. Most people think of plastic surgery as being
synonymous with cosmetic surgery. They specialize in rhinoplasty (nose
surgery), eye surgery, facelifts and breast reconstruction as well as
eyelid surgery, body conturing, and liposuctioning.

Plastic surgeons also include the repair of tendons, nerves, blood
vessels, and bones of the hand and wrist. They are the leaders in the
new field of microsurgery. Plastic surgeons were the first to re-attach
body parts such as hands, fingers, arms and legs. In addition, they
perform skin grafting and treatment of slow or poor healing wounds. They
are engaged in surgery of the jawbone and facial skeleton. Common
procedures that are done in this area include reduction of prominent
ears, nose and recessed or protruding chins. Surgical treatment of head,
neck and skin cancer with its potentially devastating cosmetic
consequences is an area of special expertise for the plastic surgeon.

HYPERLINK "http://www.face-doctor.com/" http://www.face-doctor.com/

Beautysurg.com:

HYPERLINK "http://www.la-plastic-surgery.com/doctor.html" Dr.
Jonathan Hoenig , a leading innovator in the field of facial cosmetic
surgery, is located in Los Angeles, California. Dr. Hoenig provides
exceptional aesthetic facial plastic surgery, HYPERLINK
"http://www.la-plastic-surgery.com/cosmetic.html" cosmetic surgery ,
and HYPERLINK "http://www.la-plastic-surgery.com/reconstructive.html"
reconstructive surgery to patients from all over Southern California as
well as from across the United States. With offices conveniently located
in Santa Monica and Encino, suburbs of Los Angeles, the practice is less
than 20 miles from the Los Angeles International Airport (LAX).

Dr. Jonathan Hoenig is a world-renowned innovator of modern
oculoplastic, facial plastic and reconstructive surgery techniques. He
is a pioneer in state-of-the-art approaches for the HYPERLINK
"http://www.la-plastic-surgery.com/mid_face_lift.html" cheek or midface
lift and minimal incision, endoscopic browlift. Dr. Hoenig's
contributions in the fields of ophthalmic plastic (eye-related) and
facial plastic surgery have changed the lives of many by enhancing
features, rejuvenating appearance, and boosting self-esteem.



HYPERLINK "http://www.la-plastic-surgery.com/"
http://www.la-plastic-surgery.com/

GENERIC BUSINESS LEVEL STRATEGY:



The generic business strategy is to differentiate by providing the best
cosmetic plastic surgery treatment to the premium segment.



There are two basic objectives:

1. First, strive to identify the best available professional to do the
job.

2. Second, strive to see that the charges are not irrationally high.

To operationalize this strategy by:

1. Preparing the list of the most reputed plastic surgeons and those
whose results have been acclaimed as remarkable. This information will
remain in the data base of the website for the reference of the
managers.

2. Online counseling is done by the empanelled plastic surgeons that are
connected to the internet and are available 7 days a week 24 hours a
day.

3. Once the needs of the patient are identified and a quotation is
confirmed, then, the empanelled doctor will try to contact the
‘best’ available doctor in Southern California and negotiate the
charges with him and discuss the clinic or the hospital where the
operation will be carried out.

4. Once the surgeon has given an appointment and the operating theatre
is booked, the patient is informed of the appointment, the approximate
time the patient will have to remain confined and the time after which
the patient can restart work.

5. After the operation, the website plastic surgeon supervising the
procedure will independently verify the results and recommend any touch
ups which may be required.

WHY THIS STRATEGY MAKES SENSE GIVEN THE ENVIRONMENTAL CONDITIONS:



The environmental conditions are:

1. A large number of competitors.

2. Every competitor trying to offer every possible service to every
customer creating doubts about the services being offered.

Results of surgery are not seen immediately. This is the real problem in
case of cosmetic surgery. Once the surgery is over, the customer is
supposed to pay and leave. The customer’s operation site is swollen so
that the final result of the operation is not known and the patient has
to trust the surgeon that a good job has been done. After fifteen days,
the patient discovers that the results are not what had been expected
and the patient rushes to another plastic surgeon to rectify the results
of the previous operation. So, the strong point lies in the ability to
provide the service that is offered and the results promised. This
develops from the ability to identify the surgeons with consistent
results, negotiate with them about their rates and locations of
operations, supervise their work using the plastic surgeons and provide
after operation service including any rectification free of charge. What
will happen is an established and impeccable reputation for excellent
results.



The need to tell the patients “Please remember that the relationship
with your plastic surgeon does not end when you leave the operating
room. If you have questions or concerns during your recovery, or need
additional information at a later time, you should contact your
surgeon.”

The need to reassure them “ Since the healing process is gradual, you
should expect to wait up to one year to see the final results of your
surgery. You are likely, however, to begin enjoying your new look within
weeks of your surgery. Occasionally, a touchup may be desired to
further improve the results. If this is the case, the additional
procedure is usually less extensive than the original operation.
Straining, bending and lifting should be avoided during the early
postoperative period. In many instances, you may be able to return to
work within a week or ten days after surgery. Most normal activities
including exercise can usually be resumed within three weeks. It will
be a few months before you can expose your reshaped nose to direct
sunlight. Your nose will be sensitive during this time, and you must be
conscientious about using a sun block to protect your skin. If the bones
of your nose were altered, it may be a number of weeks before you can
wear glasses without special support such as tape.”

In short, the care should be an ongoing process and not that of “one
time selling”.

SPECIAL ENVIRONMENTAL FACTORS:



1. The doctor whose service is commissioned may be a competitor.

2. The doctor who does the operation may try to approach the patient
directly and draw the patient away.

3. Once a patient is identified, the doctor or competitor may try to
violate the confidentiality of the client.

NEW ECONOMY TOOLS:

1. Dot Com (the online cosmetic surgery advice and solutions website).

1.1. The "dot-coms" are the most visible enablers of the new economy.

1.2. E-commerce, is fundamentally changing ordering processes:

- Qualified as a fully enabled eCommerce site?

- Yes.

- Because by definition, eCommerce allows a company to transfer
ownership of a product or service via a monetary transfer and delivery
of that product or service to the end user, the customer.

1.3. Providing surgery advice and solution then quoting a price as a
product – these are solid products – the customer (i.e. actors /
stars) can “order” or “purchase” them via the Internet directly.
Delivery times have been slashed, and costs sharply cut. Everyone
benefits.

1.4. Provides rich information as well as customized and interactive
services.

1.5. Focusing on Internet sales.

1.6. Automation.

1.7. Offers a full spectrum of “products” (i.e. solutions advices,
etc).

- As quoted from the paragraph:

“…broadest range of cosmetic strategies both surgical and non
surgical will be available, for instance if a movie star has battled
with fat on her upper arms, buttocks or stomach then the suitability of
liposuction could be considered and if a person is interested in non
surgical strategies then demabrasion or botox treatment can also be
administered by the doctors on staff.”, and “…offer a combination
of surgical procedures as well as non-surgical procedures”.

2. Information Technology.

2.1. Leverage Internet technologies to create effective intranet within
the company that link up employees at different levels and locations.

2.2. In the forefront of providing the customers the benefits of
connectivity through the worldwide web.

2.3. Rapid technology transfer.

3. Computer.

4. Distributed Computing: Internet / web.

4.1. An interactive process with customers to find out what they need.

4.2. Is another value added tool that will help to market the business,
streamline the information technology processes and better serve the
customers.

5. Market Disruption Analysis.

5.1 Use to identify where to launch new businesses to compete with
startups.

5.2 Differentiation (competitive advantage).

5.3 Providing a safe and confidential environment for them whilst
offering excellent services with experts – this is something other
competitors can’t compete with.

6. Customer Relationship Management (CRM), which aspires to turn
internet technology toward identifying and building loyalty among
valuable customers.

6.1 The website will provide excellent, high quality advice and service
related to Cosmetic Plastic Surgery and will be of the highest quality,
maintain confidentiality and at reasonable prices – all of these will
attract loyal customers.

7. Quality support services.

7.1 As quoted, “…the strong point lies in the ability to provide the
service that is offered and the results promised” (regarding after
surgery servicing and results).

7.2 The need to tell the patients “Please remember that the
relationship with your plastic surgeon does not end when you leave the
operating room. If you have questions or concerns during your recovery,
or need additional information at a later time, you should contact your
surgeon.”.

7.3 Providing a touchup service to improve the result when necessary.

7.4 “…the care should be an ongoing process and not that of “one
time selling”.

PRODUCT’S STAGE IN LIFE CYCLE:

The product’s stage in its life cycle is the growth stage, the reason
being that the target market is not ignorant to the cosmetic plastic
surgery nor is this product entirely unknown and unavailable to the
movie stars. On the other hand, the market has not yet reached the
maturity stage where there is a slowdown in growth because the product
has been accepted by most of the target industry.



So, the product’s stage is the growth stage and this is a stage of
rapid market acceptance and profit improvement.

APPROPRIATE MARKETING STRATEGY:



The appropriate strategy is that of Rapid-Penetration. The assumptions
of this strategy are:

1. The market is large in size, which is the case with the size of the
cosmetic plastic surgery industry in the Southern California movie
industry.

2. The market is relatively unaware of the product, that is the online
consulting and arrangement of cosmetic plastic surgery.

3. The buyers are price sensitive, this may not be true about the
millionaire stars that will be targeted, however, every millionaire has
the anxiety that they will be fleeced and they want to avoid it.

4. There is strong potential competition. There are other doctors as
well as clinics that have started selling their products online and pose
a creditable threat.

5. The cost falls with increased production and accumulated
manufacturing experience. The cost of production does not fall
substantially by way of doctor’s fees but the website’s overhead
including the salaries of plastic surgeons employed to reply to the
doctors will fall with volume.

THE STRATEGY:



Launch the website providing the lowest quotations to the potential
customers and back it up with heavy promotion. The quotations can be
kept low because the website is in a better position to bargain with the
best plastic surgeons than the patients themselves and the optimal rates
for clinic bookings with confidentiality can be negotiated by the
website.

The advantages:

1. The bargaining power with the plastic surgeons.

2. The access to all the practitioners and knowledge of the fair market
rate of their work.

3. The ability to provide free after operation touch ups confidentially.


4. The assurance to practitioners that the company can be a source of
work to them in the future and are not one time customers.

5. The promotion of the website improves the bargaining power with the
plastic surgeons.

This price advantage should be combined with powerful promotion by way
of advertising, both on the internet and other media, strategically
placed articles in the movie industry magazines and websites, special
discounts, aggressive commissions offered to movie agents for access and
work, and impressive personal selling.

BENEFITS:



The low-price high promotion strategy is likely to bring the website the
fastest rate of market penetration and the largest share of the online
cosmetic surgery advisory and solutions market.

ORGANIZATIONAL STRUCTURE:

Mediocre Results

Beautysug.com

Southern California Plastic Surgery Group

Marina

Southern California Plastic Surgery Group

Inexpensive

The Website

Marina

Inexpensive

Expensive

Good Quality

Marketing Director

Responsible for overall marketing efforts and pricing

E-Commerce Manager

Webmaster

Marketing Research Manager

Marketing Research Associates

Direct Marketing Manager

Advertising Manager

Surgeon Relationship Manager

Operating Surgeon Liaison/Coordinators

Head Consulting Doctor

Consulting Doctors

Client Relations Manager

Customer Service and Referral Associates

Design and maintenance of website and manages all e-commerce and
internet promotion

Identify new markets and current marketing efforts (focus groups, etc.)

Markets to targeted groups like movie star agents

Internet and other advertising methods

Combination sales and project managers