Business Plan for Sodashi's Organic Shampoo Launch in Australia Market

This business plan is about Sodashi's launch of organic shampoo in Australia market. The report covers the product offering, market analysis, target market, marketing mix, financial plan and critical risks. Sodashi is a prime Australian cosmetics company that deals in organic skin care products. The company is launching its first range of organic shampoos by the name organic hair volumizing shampoo. The shampoo is made of 100 percent natural ingredients such as Aloe vera, water, Guar, Dragon fruit, Willow Extract, Acai and Capacu Butter. The focus of this product is to deal with hair issues such as hair volumizing. The price range of product has been proposed $24.95 for 1 liter. The main objective of launching this product is to provide organic substitute of chemical-based shampoos. Similarly, Sodashi is looking forward to providing prime quality products. It has mainly focused on high group income people living in society because of premium value for goods.

BUSINESS PLAN
11700112 Ganesh Purja
11700205 Bhupinder Singh

EXECUTIVE SUMMARY
Business plan is a document which contains business goals, methods on how it can be
attained and achieved within given period of time. The organisation needs to make effective
business plan before launching its new or existing product in market. Through this one can
achieved result in smooth and effective manner. The report is based on Sodashi which is
launching new organic shampoo in Australia market. The idea behind such business is to provide
consumer with 100% organic product and fulfils their need and demand. It has focused female
segment of society having age 20+ and targeting upper segment people of society. It has
followed premium pricing and selective distribution strategy because of famous brand having
high value in Australia market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Background to the idea...........................................................................................................4
Mission...................................................................................................................................4
Product offering......................................................................................................................4
Market analysis: industry analysis, competition....................................................................4
Primary Target market............................................................................................................7
Marketing: Product, price, distribution, promotion................................................................7
Financial Plan.........................................................................................................................8
Critical risks............................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning is very important for a business. It helps in setting goals and objective of a
company. This report is based on a business plan of Sodashi which is Australian organic product
company that is launching organic shampoo in Australian market.
MAIN BODY
Background to the idea
Sodashi is one of the Australian's cosmetics prime company that deals in organic skin
care products. The respective organisation is looking forward to launching organic shampoo
which are made of natural ingredients (Barrow, Barrow and Brown, 2012). This product will
help in grabbing large number of customers as many individuals are looking for organic skincare
and cosmetic solutions. Additionally, organic shampoo can be used by any kind of customers
like males, females, young, old, etc. Hence, the respective organisation has a high scope of
earning profitability from the local as well as international market. This also leads in creating
brand value and image of that particular company in environment.
Mission
The mission of Sodashi is to serve organic cosmetics solutions to customers in order to
promote natural products and healthy lifestyle among customers.
Product offering
Sodashi is launching its first range of organic shampoos by the name organic hair
volumizing shampoo. The shampoo is made of 100 percent natural ingredients such as Aloe vera,
water, Guar, Dragon fruit, Willow Extract, Acai and Capacu Butter. The focus of this product is
to deal with hair issues such as hair volumizing (Beheshti, Meek and Kaufman, 2012). The price
range of product has been proposed $24.95 for 1 liter. The main objective of launching this
product is to provide organic substitute of chemical-based shampoos. Similarly, Sodashi is
looking forward to providing prime quality products. It has mainly focused on high group
income people living in society because of premium value for goods.
Market analysis: industry analysis, competition
Market analysis is a tool which helps in understanding the attractiveness of market in the
respective industry. It is dynamic study of specific market of particular industry. It is business

plan which provide knowledge and information about surrounding in which business is operated.
This helps in knowing about internal and external factors of environment. It can be understood
by industry analysis and analysing competitions in the market. Thus, industry analysis is
discussed below:
Industry analysis:
It can be described as a tool which helps in understanding different aspect of industries
and their influence on company (Brinckmann and Kim, 2015). It helps in identification of
threats, opportunities faced by business and focusing resources on developing capabilities that
leads to competitive advantage. Every company has to analysis industry for smooth running of
their business in competitive market. Thus, in order to study these elements, Porter's five force
model can be practised which studies five different aspects of industry. These are discussed
below:
Threat of Competitors: This element studies threat of rivals in the industry (Burns and
Dewhurst, 2016). As Sodashi deals in cosmetics and skin care products, there are various other
competitors that share the same market dealing in similar organic products. Some of them are
Stem Organics, The Jojoba Company, Go-To, etc. Thus, it can be analysed that threat of
competitors to Sodashi is high.
Illustration 1: Porter's Five force Model
Sources: Porter's Five force Model, 2019

Threat of Substitute- Every organisation needs to face problem of substitute. The
substitute of Organic products is regular chemical based products which are widely used in the
market. Some of the organisation providing these products are Garnier, Wella, David Mallet, etc.
This reflects that threat of substitute for Sodashi is very high. In order to beat competition and
substitute, Sodashi need to provide high quality with unique ingredient in their products.
Bargaining power of buyer- Sodashi is a big brand that deals in unique organic
products. It is one of the most prime organic company in Australia. Due to this, bargaining
power of buyers in very low. It can charge any price for product with customer and they are
ready to pay because of chemical free ingredients in it. Here, the price of company work rather
than buyer because of limited entity producing same type of products.
Bargaining power of supplier- Sodashi is an Australian based company that provides its
services through online marketing and selling (De Oliveira, Shayani and De Oliveira, 2013). Due
to huge business of company, supplier will not tend to lose such prime customer. Thus,
bargaining power of supplier is low. There are very less suppliers so it power is high which is
plus point for business to earn maximum profits. Supplier power is low because of limited
ingredients required to manufacture products.
Threat of new entry- The attractiveness of organic business is very high. Thus, there is a
high risk of new companies entering into this business. It requires high investment and there are
many other organisations available in Australia who are ready to enter in such business. The risk
involved in such business is high because of target customer. As every individual cannot prefer
to buy such high cost products for daily use. There is only particular consumer who purchase
organic shampoo for their hairs.
Competition
It is rivalry between two or more company, entities for scare good and services (Gately
and Cunningham, 2014). It arises usually between two existing or new enterprise coming into
market with same or different types of products. Sodashi has many competitors surviving in
market which deals in same type of product. In order to survive in competitive market,
organisation should introduce some unique feature in their product so that they can beat
competition. Before, launching new product, it is very important to became aware of need and
demand of people and work accordingly. Here, Sodashi has analysed industry very effectively to

know about rivalry, supplier bargaining power, buyer bargaining power, entry and exit. This
helps in earning maximum profit for organisation and surviving in competitive era.
Primary Target market
In order to understand the primary market, STP model can be practised which studies
segmenting, targeting customers and positioning the product in market. Thus, STP of Sodashi is
mentioned below:
Segmentation- In this step, the customers are categorised in small groups based on their
demographics, psychographics and geographic segments. The demographics for Sodashi
includes age, gender, profession, etc. Similarly, psychographics of respective organisation is
consisting of lifestyle, beliefs, attitude and interest (Haag, 2013). Furthermore, geographic
defines the locality of the customers that are targeted. Here, segmentation helps in knowing
about segmented market for product and identifies their age group, locality and others. This is
done by every company before launching any new or existing product in market.
Targeting- It is the process in which customers are targeted on basis of different factors.
On basis of segmentation of market, people are targeted to provide particular goods or services.
This factor helps in understanding the targeted customers of Sodashi. Thus, demographics of
Sodashi is targeted mostly on female customers under the age group of 20+. However, by
launching products like organic shampoos, Sodashi can grab a bigger market by serving both
males and females. Similarly, the focused customers are of upper middle class as the products
belong to premium category.
Positioning- It is the place which brand occupies in customers mind and distinguished
from competitors (Macaulay, 2018). It helps in creating awareness among individual regarding
new product arrival in market. In order to create position, company need to use various tools.
Here, Sodashi has good brand and image in market so it does not require enough market position
in mind of customers. People of Australia prefer to use organic product more for their hairs
which is benefit for company.
Marketing: Product, price, distribution, promotion
Marketing mix is set of tools which firm uses for persuading its objectives in target
market. There are mainly four decision which are made for marketing mix such as product, price,
place and promotion. Before launching any product in market, it is very important to view 4P's
and according make plan. The descriptions of 4P's in context to Sodashi are described below:

Product- Product is item which satisfies need and want of customers. It can be tangible
and intangible. Here, Sodashi is launching new product that is shampoo in Australia market
which contains 100% natural ingredients. As it is luxury brand which provide products of skin
care to their consumers. Currently it wants to sell shampoo with high quality features. In order to
attract, it has used plastic bottles packaging and labelling for their consumers. Thus, business
plan should be made on unique and different products in order to survive in competing market.
The idea behind such product is due to need and demand of people.
Price- It means amount customer pay for product. It determinants impact supply, demand
and profit margins (Massa and Tucci, 2013). There are different types of pricing strategy which
company can adopt such as competitive, premium, normal. Here, under context of Sodashi, it has
use premium pricing strategy for product because it contains natural ingredient. It has focused
high income level people who can easily afford it. This help Sodashi to earn maximum profit by
selling it. Thus, price of shampoo for 1 litre is $24.95 which is very costly than others shampoo.
Place- It refers access of goods and providing convenience to consumers for buying of
products. It is also known as distribution channel. There are different strategies regarding
distribution such as selective, exclusive, intensive. In context of Sodashi, selective has been used
because it has focused high group income people living in society. Currently, it has planned to
cover Australia market but in coming day it will target other countries too. There is proper
channel of selling product which can be online and offline that is in stores. The customer feel
convenient to purchase such needed goods easily.
Promotion- It refers marketing communications which comprise elements like
advertising, direct marketing and sales promotion (Schutz, Rezg and Léger, 2013). It is very
important tool to reach to target customers. Such tools used by organisation differ from each
other. Sodashi has used social medial for promotion of their new product in market as large
number of people are connected through internet. It provides convenient to consumer about
upcoming goods and service in market. As it does not require more promotional because people
are already aware of such brands and their products.
Financial Plan

PROJECT BUDGETING TEMPLATE
TASK DESCRIPTION STATUS
PROJECT 1 Initial investment 200000
Task Planning 20000
Task Allocation of raw material 50000
Task Preparation of the related documents 95000
Sub-
task Office expense 22000
Sub-
Task Factory rent 45000
Sub-
Task Salary to staffs 28000
Sub-
Task packaging 0
Task Transportation 20000
Task Advertisement cost 15000
SUBTOTAL 200000
The above table provide the information related with the projection of total cost which is
required during the production of organic Shampoo. All the specific task or associated sub task
which will be taken into account while manufacturing process is planned as per the provide
initial cost of 200,000.
Critical risks
A business risk is said to be a process that can have an impact on future activities because
of which achieving goals can be difficult. Furthermore, risk has a strong relationship with
rewards because to gain benefits or competitive advantage it is important that company takes
some kind of risk. While making a business there might be a possibility that Sodashi face

different types of risk and these can be further classified into six categorises and these are
explained below:
Physical Risk- This is commonly related to employees, assets and building. In terms of
Sodashi company common risk that can be faced by them are fire, water damage, theft or
vandalism (Ward, 2016). Therefore, it is important for firm to consider this risk so that
precautions can be taken, and large damage can be avoided. For example: In their premises,
company must install security cameras, fire safety measures so that major accident can be
avoided.
Strategic Risk- According to today's scenario, because of cosmetics made of highly
chemical substance large number of companies are moving towards organic products. For this,
organisation made business objectives according to which products are being made. Therefore, in
relation with products made by Sodashi i.e. organic shampoo company had to make strategies
like what resource are required for developing the product whether it is giving profit or not.
Therefore, strategic risk can be avoided if company proper measures are taken by using key
performance indicators, potential risk etc.,
Compliance Risk- There are some rules and regulations that are formulated by
regulatory bodies and which are required to be followed by companies in order to run their
business in an effective manner. For example: company must follow legislations of hiring
employees. Along with this, as company is making organic products so there might be a
possibility that some herbal species are prohibited for using. Therefore, it is crucial that Sodashi
focus on this and make their products accordingly. As a result, this will protect company from
getting into any legal activity.
Human Risk- Basically this risk is related to employees who are working within the
organisation (Wentzensen and Wacholder, 2013). Company can face issue if their workers are
incompetent in performing their task. But, in context with Sodashi, as it going to make organic
shampoo so, there might be a possibility that customers who are using the same have some
reactions on their body. Therefore, it is crucial that company consider different skin of human so
that it do not harm in any case.
Technological Risk- With the change in course of time, many new and latest
technologies have evolved. Gone those days when people use to churn in order to extract
valuable essence of herbs. Other than this, technological risk can arise while securing data and

information from cyber-attacks. In order to do so, company can develop their own anti-virus and
malware software so protecting data and illegal activities.
Financial Risk: Running a business requires a lot of capital and money so as to execute
plans in an effective manner. Therefore, it is crucial that company have sufficient amount of
money in order to fulfil needs and wants of customers. In relation with Sodashi, as they are going
to manufacture organic shampoo and ingredients that are used are costly. Thus, for company it
will be important to utilise finance appropriately for getting better outcomes.
CONCLUSION
From above report it can be concluded that Sodashi need to analyse market effectively
and efficiently in order to survive in competition. It has come up with new product of organic
shampoo in market where it has focused female segment of society having 20+ age and targeted
high-income group of people. It has also analysed industry in order to know about threat,
substitute, entry, exit and rivalry.

REFERENCES
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