What is the business potential of selling this cosmetic premix vs. the ingredient

  • Case Study - Insight Solutions
  • Cosmetics Applications

The Challenge

Identify the business potential to sell the premix instead of the ingredient

A global supplier of cosmetics ingredients has developed an innovative premix which enables the formulation of various personal care products with enhanced sensorial experience. As they were only producing one of the ingredients initially, they wanted to know if selling this premix could be a good strategic move. But due to their limited market connections and resources, they couldn’t know if they should invest in it. They approached us to understand:

Which cosmetics companies will value the new premix and why?
What are the top applications of interest to focus on?
What cosmetic claims are most considered by the end users?
What are the potential volumes and price acceptance in each application?

SpecialChem Insight Solutions

6 months to test the cosmetic market and identify partners

To collect direct market feedback in a short timeframe, we created and shared unbranded material concepts to our broad community of cosmetics formulators and manufacturers via our digital channels. We encouraged professionals to share their feedback and interviewed the most interesting profiles to get a deeper technical and marketing understanding. By combining additional insight sources including bibliography, promotion performances and online behavior analysis, we provided all the knowledge required to take the right decision.

The Benefits

  • Faster time-to-market: 2 years minimum
  • Very strong chance of commercial success
  • Faster and higher ROI
  • Intensive cost and resources savings to acquire that level of knowledge
  • Reliable partners with strong projects
  • Direct access to the broadest audience in the coating industry: 4 Million users and 500,000 profiled members in 2019
  • Complete market understanding of the coating markets
  • 100% unbranded exposure and unbiased feedback

The Results

6 months to get all the insights needed to take the right strategic decision

At the end of our mission, we identified:

  • 1 Region + 2 Applications with a strong interestto focus on with the reasons why
  • Second-priority applications with lower yet interesting potential
  • 28 validation partnersdispatched to test the premix in real condition
  • Clear value propositions and price acceptance for each application
  • List of technical data to generate to demonstrate the value to cosmetic formulators
  • Pros & Cons of the 2 business models (premix vs ingredient) to drive the decision

As next steps, we recommended to start educating the top priorities markets on the premix benefits with the identified value propositions and data generated with the partners.

Testimonial

“We’ve been impressed by the level of recommendations and the clarity of themarketing elements to market our premix offer” The client valued the number and quality of the partners and the level of recommendations we provided, especially the value propositions which are key to highlight the benefits of their offer and maximize their chance of success.

Do you want to test the business potential of your new chemical product?

We help you to identify the best market opportunities and product positionings. We also connect you with the right partners to uncover any performance gaps or unmet requirements to maximize your chances of commercial success.
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