Business Development Plan for Rose Petals - An Organic Cosmetic Store in Gulshan, Dhaka

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Added on  2023/05/23

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This business development plan outlines the feasibility of Rose Petals, an organic cosmetic store in Gulshan, Dhaka. The plan includes market research, product and service feasibility, legal feasibility, technological feasibility, and organizational feasibility. The plan also includes information on the benefits of organic cosmetics, the target market, and value-added features.

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BUSINESS
DEVELOPMENT PLAN-
ROSE PETALS

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CHAPTER 1: Introduction
Gulshan, Dhaka is an affluent neighborhood in
the capital city of Bangladesh
Starting a beauty, cosmetic and fragrance shops
is a fairly easy business as it is less capital
intensive
Ever-increasing cosmetic demand in the global
market
This business plan would aim for introducing
original cosmetic products to the customers.
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Rationale for business concept
Dearth of high end fragrance and cosmetic
retail shops in Gulshaan
Growing number of expatriates and diplomats
Ready to invest on their skincare and beauty
routine, but are unable to find a suitable shop
locally
Beauty and cosmetics business is a profitable
business with not excessive investment
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Selection of Scenario
Rose Petals would have different perfumes,
cosmetics, personal grooming and toiletries
which would be manufactured from natural
products
The primary ingredients of the products would
be natural and organic substances
Rationale- There is an increasing preference of
customers towards organic cosmetics over
regular cosmetic products

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Terms of Reference
Purpose of the project would be to construct a
high end cosmetic shop based in the high profile
area of Gulshan, Dhaka
There would be people who would look after the
design and construction of the new store building
Another team would look after the manufacturing
of the organic cosmetics and procurement of the
raw materials
The quality check would ensure that the
cosmetics would have premium quality
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Research Objective
To understand the attitude of the local
customers regarding organic cosmetic
products
To determine the needs and preferences of
the high profile expatriates living in Gulshan
To understand the profitability of natural and
organic cosmetic products in Gulshan, Dhaka
To compare between the standard cosmetic
products and organic cosmetic products
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Research Questions
What is the attitude of the local consumer for
organic cosmetics?
What are the general preferences and needs of
the expatriates residing in Gulshan?
What are the trends of profitability of natural and
organic cosmetic products in Gulshan, Dhaka?
Provide a comparison between the standard
cosmetic products and organic cosmetic products

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Tools & Theory
Variety of tools and techniques used for this
research purpose
Tools like Porter’s Five Forces Analysis would
be used for understanding the market
attractiveness
Strategic analysis models- SWOT analysis,
Ansoff matrix, blue ocean strategy, value chain
analysis, business model canvas
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Actionable Assumptions
It is assumed that there is consistent increase
of demand for organic cosmetics in Dhaka
It is assumed that there is fairly adequate
number of expatriates living in Gulshan, Dhaka
It is assumed that there would be consistent
growth of the new business over the years
It is assumed that there would be adequate
capitalization of the firm
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Time Scale
Market Research
Product Development
Production Planning
Project Management
International Marketing
Commencement of store
operations
Rigorous marketing
Promotional campaigns
Evaluation of the store
performance
15-Aug 23-Aug 1-Sep 9-Sep 18-Sep 26-Sep 5-Oct 13-Oct 22-Oct 30-Oct

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CHAPTER 2: Outline of business
Rose Petals would be based on natural as well
as organic cosmetics that would be
manufactured within the local facility of Dhaka
The store facility would be located at the
Gulshan
The organic products can be termed as the
chemical, physical and biological ingredients
that have a connection with the nature
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Meaning of organic cosmetics
Organic cosmetics are being made with
materials which do not have synthetic
chemical compounds
Organic beauty products are usually USDA
certified
Terminology “organic” is referred to the class
of specific chemical compounds that is derived
from animals or plants that includes all the
essential carbon compounds
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Meaning of organic cosmetics… Contd…
Primary difference between the normal
cosmetics and the organic cosmetics are that
the former is produced from synthetic
materials that go through laboratory
manipulation as well as they are synthetic
versions of the different natural ingredients

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Need for organic cosmetics
No harsh chemicals
Eco friendly
Natural nourishment
Prevents pre-mature ageing
Huge increase in the demand of the organic
cosmetics all over the world
Tremendous increase in the USA cosmetics
market
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Benefits of organic cosmetics
Smooth wrinkles and there would be
disappearance of the sun spots
Organic cosmetics would also be helpful for
the treatment of dull skin
Significant reduction of acnes
Improvement in texture of skin
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Side-effects of synthetic cosmetics
Instances of skin rashes, irritations and
redness
Caused by the high percentage of parabens
and synthetic substances in the cosmetic
substances
They are toxic to the skin and hence if used
regularly, can harm the skin in the long run

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Products and Services
Store retail outlets would be a departmental
store
Wide display of the existing cosmetic products
and also information about the upcoming
cosmetic products
Main ingredients of the organic cosmetics
would be paraben free, gluten free and
natural substances
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Products and Services… Contd..
Major product categories of Rose Petals-
Skin care routines
Make up products
Nail care ranges
Fragrances
Hair Care
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Partnership
Partnership of the new business would be
limited to two individuals Mr. Abdul Zafar and
Mr. Zayeed Ali
Both the partners would have equal rights as
well as responsibilities as far as the
management of the business entity is
concerned
Partnership profits would be linked to the
individual partners

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Segmentation
Primary target market for this product is the
high-profile females living in the area
Different categories of segmentation based on
the type of products such as make up
products, skin care products, fragrances, hair
care and others
Segmentation would also be based on
demographic characteristics, socio-economic
background of the people
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Target Market
Organic cosmetics and skin care products
would be initially marketed to the females
Urban, educated and well-settled female
population would be targeted
Based on behaviour displayed by the
customers
Target market would also be based on the high
profile females, who are employed either full
time or part time
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Value added features
Early bird offers and various kinds of discounts
that would woo the customers
Buy One Get One Free’ offer
Lower priced product among both the
products would be free of cost
Buy one and get 15% off” on the second
product
Ptheir products in beautiful decorative boxes,
so that it attracts the attention of the females

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Services provided
Number of services to the customers
They should be able to visualize all the
products of the company
Shop manager must focus on convenience of
the potential customers
Store must make use of the exclusivity factor
once there is commencement of the store
operations
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Windows of Opportunity
Window of opportunity should be conceived
well by the new business venture- 10 years
Illustrate the maximum time period during
which the new firm would be able to capture
the new market
New entrants would be entering into the
market when the new window is being
opened
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CHAPTER 3: Feasibility Research
Complete research study involves the
adequate research information and the
systematic techniques
Assemble the relevant information related to
the market feasibility of conducting the
business
Applied research methods would generate
ideas about the appropriate techniques

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Research Methods
Research methods are categorized into three
different divisions- research philosophy,
research approach, and research techniques
Research philosophy- positivism, realism, and
interpretivism
Research approach is also classified into two
divisions, such as deductive and inductive
approach
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Data Collection Methods
Business plan is based on the mixed research
methods, such as primary and secondary
data collection processes
Primary data collection process will be
ensured by conducting the quantitative
research process
Adequate amount of people will take
participation on a survey process
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Sampling Techniques (Non-Probability)
Sampling techniques determine the use of the
proper method while conducting data for a
particular purpose
Use of the non-probability sampling
techniques would be appropriate
Non-probability sampling is the most common
type sampling techniques that require lesser
time and efforts

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Sample Size
Quantitative survey is organized by associating
50 customers from Dhaka that are frequently
purchasing the cosmetic products from
different companies
Results derived from this survey would specify
the actual needs and demands of the
customers
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Industry Attractiveness
Industry of skin care and cosmetic products in
Dhaka is quite flourishing
Customers in Bangladesh are much attentive
towards the quality of the products
Unilever holds almost 45% of the soap,
personal care, and detergent products
Kohinoor holds 20%, Keya 13% and Square
holds 18% per annual market share
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Porter’s Five Forces Analysis
Bargaining Power of the Customers (High)
Threat of Substitutes (High)
Threat of New Entrants (Moderate)
Rivalry among the Existing Firms (high)
Bargaining Power of the Suppliers (High)

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Market Analysis
Rose Petal will also be established by
recognizing market feasibility
Unilever ensures the majority of the market
share in selling cosmetics and toiletries
products in Bangladesh
During the winter season, Square becomes
the market leader by capturing 40% of market
share
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Market Attractiveness
Establishment of the startup business requires
identifying the basic needs and necessities of
the potential customers
Quantitative data analysis process would be
appropriate to gather the responses from the
customers
Survey based analysis would be undertaken
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Market Attractiveness (Questions and
Responds)
1. When do you purchase the cosmetics and
toiletries products?
Option Response
Frequency (%)
Number of
Responses
Total
Respondents
Once a week 20% 10 50
Often 30% 15 50
Once in a
month
16% 8 50
As per
Requirement
34% 17 50

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Market Attractiveness (Questions
and Responds)…. Contd…
2. What are the most attractive features you
look for while purchasing the cosmetics
products?
Option Response
Frequency (%)
Number of
Responses
Total
Respondents
Quality 36% 18 50
Price 30% 15 50
Packaging 10% 5 50
Chemicals/
materials
24% 12 50
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Market Attractiveness (Questions
and Responds)…. Contd…
3. Which brand would you prefer the most for
the cosmetics?
Option Response
Frequency (%)
Number of
Responses
Total
Respondents
Unilever 30% 15 50
Kohinoor 28% 14 50
Square 36% 18 50
Others 6% 3 50
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Market Attractiveness (Questions
and Responds)…. Contd…
4. How far do you agree that pricing structure
influence the customers’ motives of purchase?
Option Response Frequency
(%)
Number of
Responses
Total
Respondents
Strongly Agree 20% 10 50
Agree 30% 15 50
Neutral 28% 14 50
Disagree 16% 8 50
Strongly
Disagree
6% 3 50

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Market Attractiveness (Questions and Responds)…. Contd…
5. How far do you agree that the quality of the
skin care product is essential?
Option Response Frequency
(%)
Number of
Responses
Total
Respondents
Strongly Agree 32% 16 50
Agree 36% 18 50
Neutral 8% 4 50
Disagree 14% 7 50
Strongly
Disagree
10% 5 50
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Product and Service Feasibility
Quantitative analysis signify that there is the
high demand of the cosmetics and toiletries
products among the customers in Dhaka.
Rose Petal needs to consider the preferable
features of the beauty and skin care product
Customers compare prices which means that it
is essential to restructure the pricing strategy to
attract more numbers of the customers
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Legal Feasibility
Beauty care products that have the discrete
functionalities are available in the market.
Legislative aspects of the country is against the
anti-competitive practices like price setting,
through agreement, abuse of dominant
position, and deterring supply
National Parliament of Bangladesh passed the
considerable completion law in the year of 2012
for preventing the malpractices and corruptions

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Technological Feasibility
Euro monitor calculation identifies that
Bangladesh has the greater future prospects in
terms of developing the technological
feasibility
Market intelligence and comprehensive
market size are quite feasible for developing
the technological functionalities
Development of the technological parameter
is quite feasible
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Organizational Feasibility
Segmentation, Targeting and Positioning Model
will be used to determine their organizational
feasibility
In the case of Rose Petal, the target segment will
be the higher end customers looking for herbal
and natural products for their cosmetic use
Rose petal have products for different
demographical segments ranging from child care
to men’s care and women’s care
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Human Resource Requirement
Human resource management plays an
important role in enhancing the productivity
of the employees as well as the organizations
Initiating various employee welfare schemes
including employee retirement schemes
Rose petal is involved in the beauty care
business-aim for motivated employees
Importance of organizational leadership

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Financial Feasibility
Rose Petal requires concentrating on the
available capital assets that are necessary for
the operational functions and resource
allocation process
Startup cost for the business is estimated up
to 10000000 USD for next 5 years business
plan
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START UP COSTS
Particulars Amount
License Cost $ 15,000.00
Legal fees paid to consultants $ 10,000.00
Deposit for rent for retail outlets $ 20,000.00
Remodelling Expense $ 25,000.00
Furniture Expenses $ 30,000.00
Advertisement expenses $ 23,000.00
Expenses to create the website $ 10,000.00
Expenses to create the online appilcation $ 6,000.00
Deposit to the electricity department $ 15,000.00
Opening inventory of products $ 500,000.00
Total Start up expenses $ 654,000.00
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Expected Revenue in the next 5 years
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $ 150,000.00 $ 225,000.00 $ 337,500.00 $ 506,250.00 $ 759,375.00
Cost of goods sold (all variable) $ 120,000.00 $ 180,000.00 $ 270,000.00 $ 405,000.00 $ 607,500.00
Gross Profit/ Contribution $ 30,000.00 $ 45,000.00 $ 67,500.00 $ 101,250.00 $ 151,875.00
PV Ratio 20.00% 20.00% 20.00% 20.00% 20.00%
It has been assumed that the organisation will earn a profit of 20% on sales.
Operational Expenses
Particulars Amount
Rent $ 10,000.00
Electricity $ 4,000.00
Insurance $ 4,500.00
Maintenance Expenses $ 3,200.00
Stationery $ 4,800.00
Salaries And Wages $ 20,000.00
Total Cost (all fixed costs) $ 46,500.00
Selling Price pu $ 100.00

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Sources of Finance
Particulars Amount
Equity 300000
Long term loans 354000
Total Funds 654000
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Chapter 4: SWOT Analysis
Strength Weakness
High quality product
Independent retailer
Use of innovation
Skilled workforce
Natural and organic cosmetic products
New in the market
Low penetration in the market
Brand image is not strong
Huge cost of promotion
Opportunities Threat
Market is growing
Use of more innovation
Increase in demand of high end cosmetic
products
Multinational rivals in the market
Stiff competition in the market
Frequent changes in the market trends
and needs of the consumers
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Ansoff Matrix
Rose petal will have use diversification and
product development to capture the
consumers in this market segment
Products that are being developed are catered
to the niche market and the target customers
are premium in nature
Product development is one of the options
that the company will have to use if they want
to increase their growth rate in the market

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Blue Ocean Strategy
Company is relatively new and it will be very
difficult for the company to compete with the
multinational giants
Company will have to develop products, which
will stand out in the market otherwise
Demands for the organic and natural products
have increased significantly
Company can capitalize this opportunity to
make use of this demand in the market to create
their own market segment
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McKinsey’s 7s Framework Analysis
Rose petal will have to make use of innovation and
product development
Flat organizational structure where there are no mid
level managers
Rose Petal will start off with 1 development center in
Dhaka and 5 exclusive retail outlets in Dhaka
Focus on recruitment and selection process
Tagline for the company is “where nature meets
nurture”
Company is looking for employees who are full of zeal
Clear about the culture of the organization
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Value Chain Analysis
Inbound logistics- Establishing their own
warehouses where they can store their finish
products
Outbound logistics- Setting up exclusive retail
outlets for making the products available to
the consumers
Marketing and sales- Appoint talented
individuals
Operations- Eco friendly containers
Service- Correct way of usage of the products

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Business Model Canvas
Key partners- Abdul Zafar and Zayed Ali
Key activities- Establishing exclusive retail outlet
Key resources- Establishing contracts with various
five star hotels
Value proposition- Product is very unique
Customer relationship- Rose petal is trying to
provide the consumers with best experience
Channels - exclusive retail stores
Cost structure
Revenue streams
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Chapter 5: Business Plan
Local cosmetic manufacturers hold almost
60% of the share in the domestic toiletries and
cosmetics market
Local cosmetic manufacturers hold almost
60% market share
Unilever holds the majority of the market
share
Sector is mostly dependent on the 60%
imports of the products
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The Company
Rose Petals- Startup cosmetic business that
plans to establish business in Gulshan, Dhaka
Most of the expatriates and diplomats are
working and living in this location
Major motto of the company is to introduce
the original product to the target customers
and increase the sales ratio
Developing more relative products that can be
useful for the high end customers

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The Market
Location- Majority number of the high end
customers and business expatriates
Area is much westernized
Business is targeting these high end customers
and educating them to recognize the
difference between originality and fakes
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Operation Plan
Bangladesh already has different types of
popular cosmetics products present in the
market
Operational plan of Rose Petals will have to
focus on gaining product excellence
Rose Petals requires special attention at the
time of transportation so that it can able to
maintain the quality
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Implementation Plan
Rose Petals will have to focus on structuring all
the internal procedure into different
departments
Rose Petals need to develop a separate team
that will make sure all the customers remains
satisfied
Rose Petals to gain sustainability in the market
Rose Petals can focus on developing five years
contract with the suppliers or distributors

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Development Plan
Location: choose such a convenient location that
customers can easily avail to the counter
Investment: business experts at the very initial
stage should invest average amount of money
for every single operation cost
Supply chain management: Customers should
receive the product within a particular time
Management team and employees:
Recruitment of skilled manpower
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Business Sustainability
Critical Success Factors- Customer service
providers should treat every single employee
with equal respect and dignity
Risk Assessment- business managers can
overcome any kind of sudden crisis
Financial Plan- startup cost is estimated up to
US$10000000 for next five years
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Summary
Business plan is structured for Rose Petals
Being the capital city of Bangladesh, majority
of the expatriates and the diplomats are living
and working in Dhaka
Study provides the ideas about the financial
projection and the market feasibility for the
business sustainability
Company has the greater chance of sustaining
the business and achieve profitability

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