Risk: The viability of the product relies on customers entering stores. This is because the sales staff facilitate the formula consultations that make the products fully bespoke. Without this initial meeting customers will not be able to tailor the products as successfully. Dealing with the Risk: The store environment must be very inviting and offer incentives for customers to enter. This could come in the form of offering a percentage sales discount on the first product refill in-store; offering more experiential elements such as a waste-free café; and creating an innovative visual merchandising strategy through collaborating with interesting artists and furniture designers.
Risk: There may be a failure with the products’ lifespan. Due to the brand opting for natural ingredients there is a risk of the product growing bacteria. This would be costly to the business as it would mean that customers would lose trust in the brand. Dealing with the Risk: The products must go through rigorous microbial product testing at a laboratory before launching and quality control measures must be put into place to make sure all products are of the same standard. The products should also be clearly labelled with a best before date to give customers a realistic expectation of the product’s lifespan prior to purchase.
Risk Assessment and Contingency Plan Risk: As a new brand, B.E.A.M may struggle to compete with existing luxury cosmetic brands that have an extensive history and strong consumer trust. It may be difficult to encourage customers to change their spending habits and consider buying from B.E.A.M instead. Dealing with the Risk: As a backup plan, B.E.A.M could consider a brand partnership with an existing British luxury cosmetic brand such as Charlotte Tilbury. This would help the existing brand to develop a sustainable product offering and allow B.E.A.M to access their well-established customer base with greater ease.
Risk: External factors in the socio-economic environment may impact national consumer spending. This will impact consumer’s willingness to spend on luxury items and will make it difficult for B.E.A.M to reach the target sales revenue. Dealing with the Risk: B.E.A.M must implement a cohesive communication strategy to highlight the sustainable product benefits clearly to the customer. Emphasizing sustainable aspects helps customers feel less guilty about purchasing a luxury product. This will ensure that B.E.A.M maintains steady sales and profitability.
B.E.A.M bettering environment and mind
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