Marcus Lemonis Vs The Lano Company
The Owner(s): Miranda and Layne Coggins
In this episode of the profit, Marcus Lemonis visits The Lano Company. The Lano Company is a small skin care and cosmetics business located in Kansas City, Missouri. This is a company that shares the benefits of natural ingredients in beauty products.
The Lano Company promotes natural skin care and facial products with healthy vitamins that nourish the skin. The business is a wholesaler and a distributor of natural skin-care products such as LED lit, LED light up lip gloss, non-drying natural lip stain pens, long-lasting lip plumper with mirror, and more.
The Lano Company started in 2005 by Miranda Coggins. Her husband, Layne Coggins, helps her manage the business. The business began when Miranda was looking for an all-natural product that will cure her chapped lips, while she was breastfeeding her daughter. Because she was unable to find one, she decided to make her own and shared it with her family and friends. The outcome was great and she decided to put up her own beauty product line.
Although the company is growing and getting popular, it is still struggling with a huge identity crisis. The company made and produced some products that no one wants. Their products are all around the place and they cannot focus on their core company concepts.
Problems/Issues In The Business Found By Marcus
- Advertising and design are not trendy enough for its target audience.
- Not all-natural ingredients.
- The absence of lanolin in most products.
- The business is not sustainable.
- The manufacturing process is slow and obsolete.
- Lack of direction.
Marcus is convinced that The Lano Company has a lot of potential. When he visited the company’s facilities, he noticed that there are so many products that are not connected with the company’s major campaign which is the use of all-natural ingredients and lanolin. Miranda insisted on expanding her range by making products like brushes and tweezers.
Although some of the products earn a bit, many are not generating profit and are just stocked in the warehouse. Marcus pointed out that it was a waste of money. He wanted to encourage Miranda and Layne to stick to lanolin-products.
He initially proposed on investing $500,000 for 30% ownership. The Coggins rejected the proposal and suggested a $500,000 for 20% deal. For 10% annual equity and 20% profit share, Marcus agreed. He signed the check, shook hands and closed the deal.
Solutions Suggested/Implemented by Marcus To Improve The Business
- Marcus suggests new product development.
- New company logo and design.
- Creation of a line of products containing lanolin.
- Integrate the manufacturing process.
- Have a business partnership with big retailers.
During The Show…
In the earlier days of The Lano Company, Miranda got excited and overbought and overproduced items that are not really marketable. Marcus wants the business to be sustainable, so he suggested concentrating on lanolin-based products and to create a brand. He also recommended throwing all the factory-defects and the products that didn’t sell.
Marcus brought the Coggins to Birchbox to promote their product and hopefully win a partnership. They received incredible feedback and were inspired to re-invent and produce better concepts and products.
They also visited the Rejuvenol Laboratories to see the manufacturing facility and how will it help The Lano Company to manufacture their product easier, faster and cheaper.
Conclusion and Updates on the Business
After all the warehouse cleaning, having a new process in place and a selection of products containing lanolin are done, they are in the process of changing the logo. They agreed to have it simple, meaningful and more attractive.
Marcus brought Miranda to Parlor to sell the new set of products and hear interesting feedback. They also went to QVC to market their new collection. They received great comments and significant recommendations.
Luckily, The Lano Company got a monthly subscription from Katia. She is the co-founder of BirchBox. The Lano Company is enjoying a new success and bigger opportunities today. We wish them all the best.
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