Ipsy Case Study

Because IPSY offers a wide assortment of products, the key success factors for each of them are different. Nevertheless, the key success factors for IPSY overall divide as follows: price, good quality, and reliability. First, the monthly payments for an IPSY bag in the United States are USD $10 dollars. This includes the five full size or sample size products, the makeup bag, and shipping. Although IPSY ships products from newborn brands for the most part, the monthly cost of the subscription does not compare to the cost of the products, even if they are sample size. As an illustration, I made an analysis of the glam bag I received in March. Exhibit 3.2 shows all the products that came in my glam bag. After doing research on the web pages of the products received, the estimate sum of the product cost is USD $53.03 dollars without adding neither shipping costs nor the cost of the bag. Converting this price to Mexican pesos and assuming that a glam bag contains products closely related to the ones of this analysis, a Mexican customer would be paying about MXN $187 a month for a glam bag worth MXN $989.

They believe in every single product brand they feature and if IPSY does not love a product, the customers will never receive it. Besides the quality, analysis that IPSY conducts with the product brands they collaborate with, IPSY allows customers to review the products received each month. This reviews will be beneficial for both parties, IPSY and the Partner brands. When IPSY receives all the data from the customer’s product reviews, they sort the products from the best rated to the worst rated. In this way, they can keep using brand that had the best quality and discontinue the ones that did not do so. IPSY forwards this information later to the partner brands so that they can use it to improve the quality of the products that customers did not