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please provide a 2-3 paragraph response to Angel shave club-KC

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please provide a 2-3 paragraph response to Angel shave club-KC. You helped me with my response (see attached)

Your response posts should be building on the original post’s initial idea. Do you have additional insight to share regarding the valuations, success, or failure of the pitches? To make things a little easier, I would suggest replying to posts you either strongly agree with or strongly disagree with, and then explain why you feel the way you do. I’m looking for your unique insights, applications, and opinions here. Try not to repeat what has already been stated

Shark Tank ABC network reality television show “Shark Tank” offers entrepreneurs the opportunity to pitch their concepts to a panel of investors for a chance to obtain funding. Whether they get an offer for funding or not, they remain to reap the free advertising that emanates with showing up on a show with more than eight million average audiences per episode. The core concept of shark tank is to help entrepreneurs who need the extra drive to jump start their venture. While no pitch will make a company a success, only hard work will do that. Numerous strong ventures have failed to pitch themselves appropriately for several reasons, missing out on solid opportunities. Can anybody else do what you do? Entrepreneurs can think that their ideas are unique and impossible to imitate, but how realistic is that? An entrepreneur must sell a potential investor for what the business is worth as well as sell the vision on how much of a profit can be made. Iskara Tsenkova and her husband came to the Sharks with the hopes of receiving a $300,000 investment for a 10% share of their company, Angel Shave Club. Iskara failed to close the deal with the Sharks for several reasons; firstly, although the company has seen 390,000 dollars in sales over the last year, the business is not sustainable in the event that a big box store or another prominent subscription service begins offering a similar service. Investing in such a business will be taking significant financial risks since they lack sufficient funds to market and sustain the venture, which poses a great advantage to any prominent business willing to begin offering the same products. Most entrepreneurs fail because their corporations are invisible to the world as they can’t stand spending money on advertising and PR, compared to prominent companies. For instance, it took a U.K-based taxi finding app Hailo more than a year and a half to understand it was not up for rumble with deep-rooted contestants like Lyft and Uber. Despite receiving a significant investment from high profile ventures, Hailo did not find any need to compete with Lyft and Uber. Also, the problems experienced with their supply chain is concerning since a flawed supply chain management system can be costly in more ways than just one. Lastly, the churn rate and the financial risks associated with investing in the company don’t match with the Sharks valuation. To be blunt, a higher churn rate is expensive for any business and pushes a company to rival with the pressure and difficulty of bringing enough new clients in to plug up in the ship. A higher churn rate eventually undermines the business’s ability to make a profit and affects its return on investment Reference Shark Tank Products. (2021, May). Full pitch- Shark Tank: Angel Shave Club for Women S10 E11 P2. [YouTube]. https://www.youtube.com/watch?v=8MiK8jQB-j8 Angel Shave Club As a female who typically does not appreciate higher priced beauty products and who has limited time to ship, I thought the initial idea for Angel Shave Club was great. With that being said, the target customer of women in general was too broad and marketing it in a pink, highly feminine packaging limited the target to a very narrow section within the category of women. I would further that there was a failure to take the preferences of women in today’s society into account. There are many women who might not associate with such a feminine brand and offering. The overall marketing strategy would benefit from a narrowed target market and different brand appeal strategy. Given the product and industry, I would target tech savvy consumers ages 16-28 with a cheaper price offering. In addition, a healthy marketing mix of strong promotions across social channels such as Instagram and TikTok, a well-done online ordering channel, competitive pricing, and differentiated products would be needed to make this concept competitive with the bigger names in the space. The pricing of this product would need to be competitive and the distribution could take into account the social trends towards circular supply chains and transparency with carbon footprints. By appealing to the littles extras that these demographics care for, the business could then create greater customer equity and brand following. The margins to make and sell the product were too small with Angel Shave Club. This coupled with the churn rates given a lack of product diversification did not make this a scalable product or idea. In order to compete, Angel Shave Club would benefit from adding products into their subscription mix with a product development strategy. The second portion would be to clue into the cultural and social environment to get a stronger pulse on what consumers actually want. A good example of this type of company is Billie, which is a company I currently buy from. Their idea was based around the fact that men and women shave differently and utilizes the pink tax appeal. Their subscriptions start with the razors but add in other products as the consumers works through their lifecycle. This company was thoughtful by creating an inclusivity that didn’t previously existed in the market and educates the consumer throughout their lifecycle so you gain more than simply a purchased product. Their razors specifically include colors outside of pink, diversification with imagery, and a clean, transparent approach to product sustainability and environmental impacts so the consumer can feel good about their purchases. Ultimately, the base idea behind Angel Shave Club was good but they needed a stronger breakthrough opportunity. A concept that truly offered something different than what currently exists in the market. This would be done through a stronger message and pull, product diversification, and a better planned subscription model in order to become truly become successful and scale.