Cosmetic Industry Business Plan

This assignment delves into the cosmetics industry, examining current market trends, consumer behavior, and the competitive landscape. It utilizes frameworks like Porter's Five Forces, SWOT analysis, and Ansoff's Matrix to analyze market opportunities and potential challenges. The assignment also explores business strategies for success in this dynamic industry, including blue ocean strategy, product differentiation, and marketing tactics.

Business Development Plan

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1Background of the business...................................................................................................5
1.2 Rationale for business concept ............................................................................................5
1.3 Selection of scenario..............................................................................................................6
1.4 Terms of reference.................................................................................................................6
1.5 Research objective ................................................................................................................7
1.6 Research questions ...............................................................................................................7
1.7 Tools & theory.......................................................................................................................7
1.8 Actionable assumption .........................................................................................................8
1.9 Time scale ............................................................................................................................9
CAHPATER 2: OUTLINE OF THE BUSINESS.........................................................................10
2.1 Concept statement................................................................................................................10
2.2 Products & services.............................................................................................................10
2.3 Partnership...........................................................................................................................12
2.4 Segmentation ......................................................................................................................12
2.5 Target market ......................................................................................................................13
2.6 Perceptual mapping .............................................................................................................14
2.7 Value added features ...........................................................................................................14
2.8 Services provided ................................................................................................................15
2.9 Windows of opportunity......................................................................................................16
CHAPTER 3: FEASIBILITY RESEARCH.................................................................................17
3.1 Research methodology and data collection methods...........................................................17
3.1.1 Research methods............................................................................................................17

3.1.2 Data collection methods....................................................................................................18
3.1.3 Sampling technique ..........................................................................................................19
3.1.4 Sample size ......................................................................................................................19
3.2 Industry attractiveness........................................................................................................19
3.3 Porter’s five force analysis.................................................................................................20
3.4 Market analysis....................................................................................................................21
Forecasting the business climate................................................................................................22
3.5 Market attractiveness ..........................................................................................................23
3.5.1 Market attractiveness questions and responds..................................................................23
3.6 Product and service feasibility.............................................................................................25
3.7 Legal feasibility...................................................................................................................25
3.8 Technological feasibility .....................................................................................................26
3.9 Organizational feasibility.....................................................................................................26
3.10 Human resource requirements ..........................................................................................26
3.10.1 Human resource management.........................................................................................27
3.10.2 Requirements and selections..........................................................................................27
3.10.3 Human resource development ......................................................................................27
3.11 Financial feasibility............................................................................................................28
3.11.1 Start-up cost ..................................................................................................................28
3.11.2 Operational cost..............................................................................................................28
3.11.3 Break-even point ...........................................................................................................29
3.11.4 Revenue projection 3......................................................................................................29
3.11.5 Sources of finance...........................................................................................................30
CHAPTER 4: STRATEGIC ANALYSIS & BUSINESS MODEL..............................................31
4.1 Swot analysis.......................................................................................................................31

4.2 Ansoff's matrix.....................................................................................................................32
4.3 Blue ocean strategy.............................................................................................................33
4.4 Mc Kinsey 7’s framework analysis.....................................................................................35
4.5 Value chain analysis...........................................................................................................37
4.6 Business model canvas ......................................................................................................38
CHAPTER 5: BUSINESS PLAN..................................................................................................41
5.1 Industry...............................................................................................................................41
5.2 The company .......................................................................................................................41
5.3 The market ..........................................................................................................................42
5.4 Operational plan..................................................................................................................43
5.5 Implementation plan...........................................................................................................43
5.6 Development plan...............................................................................................................44
5.7 Business sustainability .......................................................................................................45
5.7.1 Critical success factors ....................................................................................................45
5.7.2 Risk assessment ..............................................................................................................46
5.8 Financial plan ......................................................................................................................48
REFERENCES .............................................................................................................................50

CHAPTER 1: INTRODUCTION
1.1Background of the business
In this, by considering the market trend business entity has taken decision in relation to
opening fragrance and cosmetic retail shops in Dhaka. The name of the proposed business will
be ‘Rose Petals’. Entrepreneur will open the new cosmetic retail shop in Gulshan, Dhaka because
at this place majority of the offices are running. In addition to this, several diplomats also live at
this place which in turn also contributes in the sales and profit margin of the firm (McKeever,
2016). Business entity will offer quality and branded cosmetics to the customers through such
shop namely Olay, Avon, Loreal, Nivea, Lakme, Dove etc (Markets of the Future in Bangladesh,
2017). Moreover, such products are commonly bought by the customers who reside in
Bangladesh, Dhaka.
By considering this, it can be stated that luggage party goods are offered by most of the
retailers to the customers of Dhaka. Thus, sole trader will offer all the leading brands to the
customers via such retail shop. In this, entrepreneur will target all the people who have high
disposable income and beauty loving office women. In addition to this, focus on offering original
products to the brand loving customers (Yang and et.al, 2014). Along with this, business entity
will focus on persuading customers by making them aware with the products and service of
organization. The present business plan will shed light on the business idea, concept and target
market. Besides this, proposed plan will also provide deeper insight about the extent to which
external factors have impact on Rose Petals. Furthermore, study will also depict financially
viability of cosmetic retail shop.
1.2 Rationale for business concept
The rationale behind the selection of cosmetic’s retail business is that it is economic and
business centre of the country. Besides this, from assessment it has been identified that Dhaka is
one of the fastest growing start up hubs in the world. Hence, it is one of main reasons behind the
selection of Dhaka for starting business venture (Islam, 2016). Thus, by opening retail shop at
Dhaka, firm can attain success by offering beauty products or services to the large number of
customers. In the recent times, interest level of individuals towards the beauty products is

increasing rapidly. Now, both professionals and non-professionals make use of beauty products
so that they can look stylish and nice. Besides this, now individuals prefer to visit salon more in
order to look nice and beautiful. Hence, by taking into consideration such trends organization
has taken decision to open the cosmetic retail shop in Gulshan, Dhaka.. Thus, by offering
cosmetic retail beauty products to Salon sole trader can attain high profit margin. Besides this, by
providing other people with quality cosmetic products firm can be able to achieve its goals.
Thus, all the above depicted aspects are the major factors that must be considered while making
selection of business (Truong, 2015).
1.3 Selection of scenario
Cosmetic industry has become the highly growing sector. In modern era people like to
use cosmetic products in order to look nice. Women and men go to beauty saloon for make over
frequently. There are many cosmetic brands which revenues are increasing continuously every
year. The reason of selecting this business ideas is that, cosmetic retail shop would be able to
grow well and owner will be able to earn more profit through this business. Cosmetic industry of
Bangladesh has market of around 4000 corers BDT. Small retail shop have good opportunities to
earn high profit in this sector (Brenner and Headrick, 2016). By entering into this market Rose
petal will be able to earn high profit and it will help in getting success in the cosmetic industry.
Another objective of opening a retail shop in Gulshan is to enhance satisfaction level of
consumers and gaining international presence. Purpose of the study is to make effective business
plan so that owner can open cosmetic retail shop in Gulshan Dhaka successfully. For that
entrepreneur will have to look upon resource allocation, budget plan, skills require, risk
management aspects. All these things will support the owner in opening the retail cosmetic shop
in Gulshan and getting success in this market.
1.4 Terms of reference
Owner will have to conduct deep research for knowing better about Gulshan location and
cosmetic market of Bangladesh. Individual will allot responsibilities to all involve persons as per
their capabilities and skills. It will support in accomplishing the goal of the organization. Main
objective of opening a cosmetic retail shop in Gulshan Dhaka is that to earn good profit and gain
success in this new market (Suntikul, 2016).

1.5 Research objective
To carry out study in the structured manner it is highly required for the researcher to
develop specific aims and objectives. Moreover, without having clear and precise objectives
researcher would not be in position to conduct study in an integrated manner. Research
objectives, pertaining to the present study, are enumerated below:
 To investigate the trend of Cosmetic Retail sector in Dhaka.
 To identify the risk level that is associated with the business of opening cosmetic retail
shop in Dhaka.
 To assess the viability of concerned business plan in terms of both financial and non-
financial aspects.
 To recommend the suitable ways to an entrepreneur that ensures smooth functioning of
business.
1.6 Research questions
In the field of research, scholar is required to frame appropriate questions by taking into
consideration the objectives. Moreover, questions provide direction to the scholar and thereby
help in conducting study in the best possible manner:
Question 1: What is the trend of cosmetic retail sector of Dhaka?
Question 2: What is the extent to which starting retail cosmetic shop in Dhaka is financially
and non-financially viable?
1.7 Tools & theory
In the present business plan, various tools and techniques have been used. Swot analysis
will be applied in this study that would help in analysing the strengths and weaknesses of Rose
petals. SWOT analysis will be beneficial tool for the current investigation because that would
help in knowing the potential of the cited firm whether it is able to run its business in Dhaka or
not (Vorster, 2014). By using this theory issues in the system can be analysed and effective
strategies will be made so that cited firm can get establish in Gulshan. Dhaka is the new country
for the Rose Petals thus, through SWOT it will be able to know opportunities for the business in

the Dhaka nation. Ansoff matrix theory will also be used in the present business plan. This tool
will assist in making proper aims and objective of establishing the business in the Dhaka. It
would be most effective theory because that would help in addressing risk in the business. In this
way researcher will be able to make effective strategies so that it can enter in a completely
differed market easily (Quynh Trang Nguyen, 2013). Ansoff matrix includes market penetration,
market development, product development and diversification. All these strategies will be
helpful for scholar in getting overview that how it can make effective business plan for the Rose
petals.
Researcher will also include porter's five forces theory in the business plan. It would
assist in knowing supplier's power, customer's power etc. That will aid in knowing factors that
may cause difficulty to the Rose petals in establishing the business in Dhaka. Researcher will be
able to find solutions to these problems so that it can make effective business plan. Another
theory which will be used by the investigator is Mc Kinsey 7’s framework analysis. It includes
strategy, structure, system, shared values, skills, style and staff (LI and ZHANG, 2016). That is
considered as most effective tool for making business plan. This theory will help the researcher
in knowing skills required to enter into Dhaka. In addition, it will give in-depth detail about way
of operating the retail shop in new location so that company can perform well in the new market.
1.8 Actionable assumption
It is considered as most important part of business plan. In this researcher will have to
pay attention on two main assumptions whether consumers want that product or not and whether
business owner will be able to make profit in the new location or not. One of the major
possibility in the business plan will be that people prefer to buy cosmetic products of the Rose
petals. That would help in competition analysis (Stark and et.al, 2015). It is a known fact that if
Rose petals offers some innovative cosmetic products to consumers then consumers demand can
be upwardly drifted. Researcher will have to look upon the fact that business plan can be
prepared in such a manner so that products of the organization can meet customers expectation.
Researcher assumes that Rose petals will earn more profit in the Dhaka’s market.
Researcher will have to do proper market research and have to prepare budget accordingly (Wu,
Yeh and Woodside, 2014). In this way they will be able to make effective business plan, that

would support cited firm in getting expected returns over their investments. For getting good
returns over investments pricing strategies will be included in the business plan.
Researcher will have to concentrate on skills required in human resources to work in the
retail shop in Dhaka (Łopaciuk and Łoboda, 2013). By this way scholar will include all these
persons in the business plan through which it can make it more effective In the present study
researcher will explain the start-up budget for the Rose petals, that would support in calculating
the profit to be generated in the future. These actions will assist scholar in preparing business
plan properly by paying attention of each aspect.
1.9 Time scale
Business entity will prepare and follow specific timeline or chart to draft business plan
within the suitable time frame. Moreover, timeline will clearly indicate to the scholar about the
time within which specific activity needs to be completed. Hence, by following the below
mentioned plan, business entity would become able to accomplish tasks within 12 weeks.

CAHPATER 2: OUTLINE OF THE BUSINESS
2.1 Concept statement
Dhaka is the potential market for cosmetic retail sector. Entrepreneur is planning to open
retail shop of fragrance and cosmetic retail products in Gulshan. The proposed business name is
'Rose Petals'. Gulshan, Dhaka is the place where most of the offices are running and potential
customers live near this location (Mata-Gómez and et.al, 2014). There are many diplomats are
living near the place and they have potential to buy products of the company. Thus, it has great
chance to get high profit by opening a retail shop in the Dhaka. That is the main reason of
opening fragrance and cosmetic retail shop in the Gulshan, Dhaka. Entity is planning to provide
quality and branded products to its valuable clients. It will concentrate of consumer's needs so
that they feel satisfied and buy its products frequently. It will offer cosmetic products of Olay,
Avon, Loreal, Nivea, Lakme, Dove etc.
Demand of cosmetic shop in the Gulshan, Dhaka is very high because near to this place
there is no retail shop of fragrance and cosmetic products. Entity will provide products and
services as per the needs of target audience. It will pay attention of price element and will offer
products at affordable rates so that it can cover mass audience. To market its products it will take
support of social media (Butler, 2013). Rose Petals will create its website where information
related to products and services, its prices will be available. It will make connection with the
people through social networking sites. Furthermore, firm will design and implement the social
media campaign in order to make people aware about the new business. All cosmetic products
which it is going to offer will be purchased by good suppliers those who can give quality
products at affordable rate. By this way entity will be able to offer same products at affordable
rate to the end users (Rocha and et.al, 2014).
2.2 Products & services
Entrepreneur is planning to open retail shop of fragrance and cosmetic retail products in
Gulshan, Dhaka. In which company will provide retailing cosmetics, retailing perfumes, personal
grooming, toiletries products to its potential buyers. The main aim of the entity is to offer
products and service to customers as per their need (Uggetti and et.al, 2014). Thus, it is planning

to analysing requirements of potential buyers and accordingly it will provide products to
population of Gulshan, Dhaka.
Objective of entrepreneur is to maximize profit by selling quality cosmetic and beauty
products to the customers through retail shop. It will operate its business by following legal
norms. Products and services of Rose Petals retail shop are described as following:
 Hair care and shower products
 Fragrances
 Nail care products
 Sun care, baby care products
 Cosmetics
 Skin care products
 Deodorant and shaving products
Entrepreneur will offer hair care products to the valuable clients. This will include all
items that can help in caring of hairs. All this hair care products will be branded and that would
give guarantee to the consumers. It will provide conditioner, gel etc. to the end users. It will offer
perfumes and nail care products as well (Stephenson, 2014). Furthermore, it will provide services
of guarantee to potential buyers. It will also provide services of home delivery. Customers will
get option to call in the retail shop and order their products. After that concern person will
deliver ordered item to the end users. Home delivery will be free from any charges. In addition,
Rose Petals will also give services of replacement of damage goods. Customers will have option
that if they get damaged products then they will be able to change their products with the correct
one. This will enhance trust of the potential clients and they will take services of the company
frequently. It will also provide them cash card in which on every purchase consumers will get
some points which can be converted into cash. These all products and services will help the
entrepreneur in attracting more customers towards the fragrance and cosmetic retail shop in
Gulshan, Dhaka.

2.3 Partnership
Rose Petals Retail shop establish their business in Gulshan, Dhaka, in which manager of
the cited firm make partnership with country's suppliers and branded company. It is beneficial
for the business because by making partnership with suppliers, organisation can receive high
quality products in an appropriate time at a right place. It can be said that agreement with
suppliers give an opportunities to the business to achieve its planned growth (Voigt, Buliga and
Michl, 2017). On the other side, company also make agreement with branded company which
make positive impact on their operations. It is useful for the firm to face the new changes in the
different environment. By making partnership with other companies helps them to deal in
diversified culture by which company give focuses to different people and work as per their
need. It is also useful for the cited firm to make effective customer reach by using various
marketing tools. In addition to this, it also broadens the business horizon and network which
make positive impact on the business growth. Rose Petal retail industry also make partnership
with research partners for making effective investigation about quality and price of related
products. By connection with beauty-streams also beneficial for the cited firm by which it can
forecast the services provided to the customers (Uter and et.al, 2013). For example: Rose Petal
Retail shop make partnership with Beauty streams by which it can analysis the style of
packaging done by the workers.
2.4 Segmentation
There are mainly four bases on the basis of which company can segment its customer
market namely demographic, geographic, psychographic and behavioural. Moreover, it is not
possible for the business entity to satisfy the needs and expectations of whole market (Segal and
Podoshen, 2013). Hence, business entity of Rose Petals will segment its customer base on the
basis of following aspects:
Demographic: Income
Business entity will target people who have high disposable income because affordability
is one of the main aspects that have greater influence on the decision making of customers. The
rationale behind the selection of high income group people is that they are high interested
towards purchasing quality and branded products. In addition to this, people who fall in the
category of high income group have financial capacity in relation to purchasing branded

products. Thus, by taking into account such aspect customers will be segmented by the business
entity on the basis of income level (Koller, Muhr and Braunegg, 2014).
Psychographic: Personality characteristics, lifestyle
For attaining success in the strategic business environment business entity will make
focus on segmenting customer base on the basis of personality characteristics and lifestyle.
Moreover, now professional women prefer more to use beauty and other cosmetic products.
Besides this, individuals who regularly make use of branded products to reflect their high living
standard will also be the target market of Royal Petals (Luo, 2013).
Behavioural: Buyer readiness stage
Royal Petals entity will also segment its customers in accordance with buyer readiness
stage. Moreover, at the time of making selection of branded cosmetic products individuals do not
make in-depth investigation.
2.5 Target market
Fragrance and cosmetic retail shop will offer quality products to the consumers. The main
target market of the company will be men and women between age of 18-30 years. Younger
peoples like to look stylish and they use such type of cosmetic products frequently. They like to
use branded quality products so that they can take care of their skin, hairs and nails. Thus, Rose
Petals will target this age group persons (Pervin, Ranchhod and Wilman, 2014). Now-a-day
college going persons and official persons use this type of items so that they look different from
others. It is the right target market for the entity and by targeting this age group persons company
can be able to increase sales volume and profit of the organization.
Mainly it will target women those who are between age 18-25. This age group girls go
salon and use beauty products for looking better. They will buy the cosmetic products of the
organization frequently. Dhaka is the place where young girls are using such type of beauty
products frequently, but they have less option to get branded items. By targeting this group of
people company will be able to accomplish its objective of getting established in the Gulshan,
Dhaka. It will help in earning high profit and gaining competitive advantage (Rahman, 2015).

2.6 Perceptual mapping
Illustration 1: Perceptual mapping
Source: (Sarker, 2014)
Owner will open its retail shop in the Gulshan, Dhaka. It will offer products and services
as per the quality of brand. Some branded products will be costly but they will have quality. On
other hand others will be cheaper as compare to other costly products. Ponds products will be
cheaper and company will offer them at affordable rates. On other hand Olay and L'oreal will be
of high prices. They both have unique quality and it will depend upon the choice of the
consumers that with whom they want to go (Voigt, Buliga and Michl, 2017). Some consumers
like to use costly and quality products whereas others like po use quality but cheaper products.
Both these brands have unique characteristics and offer good cosmetic items to the consumers.
Rose Petals will give multiple options to the clients and so that they can make their choice
easily.
2.7 Value added features
Value added features are those features which are extra or plus services provided by the
company to its valuable consumers. In this, customers can get standard service by paying little
cost to the organization (Butler, 2013). The retail shop of fragrance and cosmetic products that
owner is planning to open in the Gulshan, Dhaka will provide some additional service to its

valuable customers in order to getting established in the market successfully. Rose Petals will
give facility of testing to potential buyers. In which clients those who are coming to the retail
shop will be able to test the products before buying it. There are many people those who do not
want to purchase the items before testing it properly. Thus, cited firm will give them option to
test the cosmetic products before buying it (Stephenson, 2014). By this way they will feel happy
and satisfy that will attract more people towards the retail shop.
Owner of the Rose Petals will also provide extra training to the valuable customers those
who want to buy its quality cosmetic products. It will give make up training, makeover, hair
services etc. That will attract more clients towards the band and they will like to take experience
of the company. In addition, people will be able to get their favourite brand product instantly. It
will also sell its products to small shop keeper (Quynh Trang Nguyen, 2013). They want retail
products at affordable prices. So company will provide products to them immediately.
Furthermore, shopping from its official website will be another value added feature of the
Rose Petals. In which retail shop will offer customers to buy their favourite products through
company website. This will make them feel satisfy and they will be able to purchase products
whenever they want to buy it (McKeever, 2016). In addition, they will get free home delivery
services that will make them satisfy towards the brand.
2.8 Services provided
Rose Petal Retail shop not only provide cosmetic products in Dhaka but also provide
services to their customers. In respect ton this, it provide customer care services by which
customers can share their feedback to the firm. It can be said that by getting the feedback from
them company make effective changes in their functions. It also provide attracting application in
online with review and videos of their products which is beneficial for the customers to get
enough information about the products. Company also arrange the events and arranging the
campaigns so that it can attract the customers it a large scale and involve the customers by
making them as brand ambassadors (Islam, 2016). Loyalty programs can help businesses build a
more significant relationship with their customers and would, in the long run, help them increase
their clientele. Firm also provide loyalty bonus to their customers and offers various services
such as discount, vouchers, free delivery, free first trial etc. to their customers. Rose Petal Retail
shop also provide guarantee to their customers by which it can attract the customers in a large

number. It also provide sales or discount on first visit and cited firm also demonstrate their
products by which they will provide guide about the products (Koller, Muhr and Braunegg,
2014). Hence, Rose Petal Retail shop's sales members apply various selling techniques by which
it can provide various services to their customers in Dhaka. These methods generate greater sales
and will help you reach your cosmetic goals faster.
2.9 Windows of opportunity
There are many opportunities for the Rose Petal cosmetic Retail shop, this element is
considered as one of the most important part of business plan and has compelled owner to open
cosmetic retail shop in Gulshan, Dhaka. Now-a-days people like to use beauty and cosmetic
products to look nice and stylish. Increasing demand of beauty products is opportunity for Rose
Petal Retail shop because it will help the owner in gaining successful in this industry. Most of the
women are spending huge time in beauty saloon in order to look nice (Voigt, Buliga and Michl,
2017).
In the modern era women like to use branded cosmetic products and they use such type of
items frequently in offices as well. That increases demand of beauty products. Thus, Rose Petal
Retail shop has vast opportunities because in Dhaka income sources are good and population is
able to spend money for purchasing such type of cosmetic products. Cited firm is planning to
offer wide range of products and services to customers and shop will be located near in Gulshan
which is near to many offices (Stephenson, 2014). Thus, people will be able to access the shop
easily. That is why organization is able to get high profit in this beauty industry.

CHAPTER 3: FEASIBILITY RESEARCH
Research methodology is the essential chapter of the study that is used to gather in-depth
information about the subject matter. It includes several tools and techniques that support
researcher in collecting detail about the topic (Koller, Muhr and Braunegg, 2014). Selection of
appropriate method is necessary in the research methodology that assists in developing better
understanding about the topic. Data collection, sampling, sample size, research methods are
common tools that are included in this chapter. These all elements aid scholar in getting
optimistic result. This section will define appropriate tool for and proper justification of selecting
this method will be given.
3.1 Research methodology and data collection methods
Research philosophy is the tool that define phenomenon of gathering data and conducting
the study in effective manner. For collecting the information about the subject meter researcher
has to collect in-0depth information about the topic. Entrepreneur is planning to open a retail
cosmetic shop with the name of Rose Petals in the Gulshan Dhaka. For that it is very important
to know about relevant information about market condition (Pervin, Ranchhod and Wilman,
2014). For that scholar will take support of interpretivism philosophy, it would be suitable
technique for the present study because that would assist in gathering all in-depth detail about
cosmetic industry in Dhaka. This will be beneficial in making effective planning for establishing
the new business in the Gulshan Dhaka.
3.1.1 Research methods
Research design is considered as effective tool of research methodology that is used to
analysis and measure the information properly. There are several kinds of methods that are used
to carry out the study in effective manner such as descriptive, experimental, review etc. But for
the present business plan scholar will take support of descriptive research design. It is the
framework which determine how an investigation will be conducted (Wu, Yeh and Woodside,
2014). Descriptive research design is the theoretical analysis tool which concentrate on issues
and helps in defining the situation in effective manner. Descriptive research design will be

helpful in making effective business plan so that entrepreneur can establish its cosmetic business
Rose Petals more successfully (Rocha and et.al, 2014).
Research approach can be defined as the way of conducting investigation. It can be from
general to specific manner or from specific to general way. This tool supports the scholar in
understanding about the topic and developing the effective business plan. Inductive and
deductive are two main methods of research approach (Sarker, 2014). Selection of appropriate
tool depend upon the type of study. Present study is for developing the business plan so that
cosmetic shop can be establish in the Gulshan Dhaka. For that researcher will take support of
inductive research approach, it would be better option for the scholar because by this way
individual will be able to involve theories and will be able to carry out the study in effective
manner.
3.1.2 Data collection methods
Data collection is the most essential part of business plan, before making any planning
researcher has to collect all relevant information about products, consumer needs, market
condition, industry performance etc. In the absence of this technique researcher will not be able
to understand the topic well (
Koller, Muhr and Brauneg). Present business plan is for opening the cosmetic retail shop in the
Gulshan Dhaka, it is a big business and for establishing this retail shop in this location it is
essential to develop better understanding about the market. Dhaka is very potential market and
ladies and professional ladies like to use quality branded beauty products. Investigator needs to
take support of primary and secondary data collection sources. Both these sources would be
beneficial for the scholar in making effective planning for the Rose Petals. In order to know
about buying behaviour of population, their needs and demand, their test scholar will take
support of primary sources. In which individual will use questionnaire technique and will ask the
questions with public of Gulshan. That would support the researcher in knowing their
preferences. That would assist in designing the products as per their requirements of the
customers. On other hand, scholar will also take support of secondary data collection sources for
knowing about market condition, industry analysis (Luo, 2013). Secondary sources will be
beneficial for the researcher in knowing about potential of the Dhaka market. By this way

individual will be able to know how to establish cosmetic retail shop in the Gulshan, Dhaka.
Both these tools will be helpful for the scholar
3.1.3 Sampling technique
It is considered as one of the major tool that supports in conducting the investigation in
effective manner. It can be defined as selecting the correct sample from the population in order
to gather in-depth information about the subject matter. For making the business plan for
cosmetic retail shop researcher will take support of simple random sampling technique. It is
basic sampling tool in which scholar can select the group of people as sample randomly. In this,
each member has equal chance to get selected (Stark and et.al, 2015). It is one of the simple and
easiest technique of assembling the samples for conducting the investigation in effective manner.
By choosing this method scholar can gather real and in-depth information about subject matter,.
That would assist in gathering good information about the cosmetic retail shop. Simple random
sampling will be beneficial for the researcher and by this way individual will be able to make
effective plan for establishing its business in the Gulshan, Dhaka.
3.1.4 Sample size
It is another part of investigation and plays significant role in the study. Selection of
appropriate sample size helps in gathering good information about the topic. By this way
researcher will be able to develop better understanding about the subject matter. For preparing
the business plan scholar will select 25 women those who live near to Gulshan. They can tell
effectively about their choice and needs (Truong, 2015). It will support the scholar in making
effective plan through which entrepreneur can be able to get established its cosmetic retail shop
in the Gulshan, Dhaka successfully.
3.2 Industry attractiveness
The entrepreneur has planned to install a cosmetic and beauty shop in Gulshan, Dhaka.
The area is researched to have no retail shop of cosmetic and beauty products. The modern age
women are becoming more interested in the cosmetic products. The industry attractiveness is
not just bordered to women, men and children are also potential consumers of the cosmetic and
beauty item (Yang and et.al, 2014). The products also cover health and performance issues
which makes its scope wider. The demand will increase in the coming time for cosmetic and
beauty products due to the increase in usage of the product my wider section of society. Men

have also gained a potential interest in skin care and shape looks, the beauty items for men such
as shaving and trimming kits are of high demand now. Women with a modern approach have
become more concerned about their skin and beauty in the region which grows the market for the
beauty related products for women. Therefore, the demand for such products are very high
without adequate supply in the area. The industry possesses a potential for growth and
development in the area (Vorster, 2014). The retail shop established has a high scope for
flourishing in the market. The marketing strategy is feasible on the run. The competition is
doesn't exist as there is no shop for cosmetic products in the area. The area is sacked with
majority of offices which gives the business a large set of study customers as the Rose petal plan
focuses on the beauty loving men and women. The location is also resident to a lot of diplomats
which gives an audience to the retail shop in the very base of the area. The shop is planning to
launch with branded products from companies of already steady brand value in the market.
These beauty products line include Olay, Avon, Loreal, Netrogena, Nivea, Biore, Shishedo,
Lankome, Dove, Estace & lauper. The luggage and party goods are offered by all the other retail
outlets in the area (Łopaciuk and Łoboda, 2013). The Rose petal retail shop has planned to offer
original branded products to the brand lover. It also plans on spreading awareness among the
customers about the original and fake products offered by the retail outlets. The rose and petal
retail shop is planning on offering products from brands such as Chanel, Gucci, Dolce &
Gabbara, Cristian Dior, Prada, Bvlgari, Herms, Tom ford, Armani.
3.3 Porter’s five force analysis
The potter's five model is an analysis of an industry on the basis of the five competitive forces of
every industry. Its helps determine the competitive magnitude of an industry and also discover
the strengths and weaknesses of the industry (Uggetti and et.al, 2014).
Competition in the industry: The competition prevailing in the cosmetic and beauty industry in
Gulshan Dhaka is very low, i.e. the competition is not available in the market for a cosmetic
and beauty retail shop as the area doesn't have a shop of such sort.
Potential of new entrant in the market: the potential for a new is very easy in the current market
as no competition is prevailing, and a new business may need less investment to set up a
business in the cosmetic market of gulshan. The Rose petal have a potential opportunity to
enter the market with less investment in the current scenario (Butler, 2013).

Power of suppliers: power of suppliers refers to how much a supplier can push up the prices of
the products. With no other supplier of the product in the market of the cosmetic and beauty
items the power of supplier is very high in the present scenario.
Power of customers: This specifically deals with the ability customers to push prices down. It is
affected by how many buyers, or customers, a business has, and how much it would cost a
customer to switch from one brand to another. The smaller and more mighty a consumer
base, the more power it has (Sarker, 2014).
Threat of substitutes: The Rose petal retail shop is planning to sell cosmetic and beauty products,
the threat of substitute is moderate or low as there are no cosmetic shops in the current
scenario but there can be in the future.
3.4 Market analysis
Cosmetic market of Dhaka has been grown up by 1 billion in the year 1999. Cosmetic
products market is considered as largest industry in entire world.
Illustration 2: cosmetic categories
Source: (Segal and Podoshen, 2013)
Approx 15% market is captured by cosmetic products. Skin care products have covered
30% market and hair care has covered 25% market share. The objective of Rose Petals is to gain

success in the Gulshan market and gain high profit in this market. For accomplishing this
objective scholar has to analysis the market effectively so that it can meet with its objective.
Entrepreneur will target the market on the bases of demographic segmentation. This
would be perfect option because with the help of this individual will be able to attract more
people towards the brand. A s it is going to offer all luxurious branded cosmetic products to the
valuable customers. It is planning to target professional women and ladies t5hose who are
interested in the beauty products. On the bases of age and income it will target the consumer so
that it can achieve its objective soon (Mata-Gómez and et.al, 2014). Gulshan is the place where
majority of offices are running and there are may diplomats are living. It will target high
disposable income people, women those who live to use such type of cosmetic products etc.
Population of Dhaka is quit high and people have sufficient income sources. Thus, Rose Petals
will be able to get success in this market.
Features Competitor 1 Competitor 2 Rose Petals
Revenues 750000 800000 Estimation 400000 in
one year
Number of employees 10 5 5
Price Low Average Average
Quality Low Average Superior
Choice Large Low Average
Delivery No Charges 50 per
delivery
Free home delivery
Forecasting the business climate
It is forecasted that Rose Petals will earn 400000 within one year. It will provide superior
quality cosmetic products to the consumers. That will enhance their satisfaction level and will
attract more people towards the brand. It will help the entity in gaining competitive advantage so

that it will be able to meet its target. It is forecasted that some competitors of the Rose Petals are
operating their business at large scale (Wu, Yeh and Woodside, 2014). It will have sufficient
monitory and physical resources that will support the entrepreneur in establishing its business in
the Gulshan Dhaka. It is forecasted that cosmetic retail shop will be able to earn reasonable profit
in near future in this location. Business climate of the entity will be positive and it will be able to
gain success in the new market (Brenner and Headrick, 2016).
3.5 Market attractiveness
Cosmetic and fragrance stores are running since longer duration in entire world. People
like to use such type of beauty products so that they look nice and look different from others.
3.5.1 Market attractiveness questions and responds
How Rose Petal will be able to satisfy need of customers?
Response: It has been analysed that by identifying needs of customers and by providing them
products as per their requirements company will be able to satisfy its valuable consumers.
Organization will allocate resources effectively and will utilize skills of the employees
effectively. That would support in controlling over operations. By this way it will be able to
accomplish its objective. Quality, cost effective product and good packaging will support in
fulfilling clients needs.
Who will be target audience for cosmetic business in Gulshan?

Response: Rose Petal will target women those who live near to Gulshan. They will be potential
customer of the company and they will buy these beauty products frequently. Men will also be
target persons because they also like to use such type of cosmetic products.
How much competition can Rose Petal face in Gulshan Dhaka?
Response: Cosmetic industry is facing high competition, there are many brands which offer
quality beauty products to mas audience. It creates huge pressure on the new retail cosmetic shop
Rose petal because in such environment it would be difficult for entity to sustain in the market
for longer duration. But effective business planing can support in achieving goal of the
organization.
What is the trend of cosmetic retail sector of Dhaka?

Response: It shows that cosmetic industry is growing well and market trends are changing
rapidly. It is essential to identify current needs of costumers and provide them product
accordingly. By this way entity will be ale to sustain in the market for longer duration.
3.6 Product and service feasibility
Rose Petal Retail shop is new to this market, it offers wide range of products to
consumers, various payment options, quality products. Its main strength is its skilled employees
and management. They concentrate on needs of consumers and accordingly provide them
services. Rose Petal Retail shop will be honest to customers and will give full description of
products offer by the entity. It will also give home delivery services to its valuable consumers
and deliverance of services will be done as per the promises made by its skilled employees. That
would help retail shop in increasing trust and loyalty of potential buyers. Thus, cited firm will be
able to enhance its sales volume to great extent (Mata-Gómez and et.al, 2014).
It will provide services to its customer as per their need and for knowing their
requirements Rose Petal Retail shop will take their feedbacks and will involve them in general
meeting. That will support the organization in knowing about demand of target audience and by
this way it will be able to fulfil their requirements. It will offer cosmetic products to clients on
the bases of their need and purchasing capacity. Products of cited firm will be hair care, shower
products, Fragrances, Nail care products, Sun care, baby care products, Cosmetics, Skin care
products, Deodorant and shaving products etc (Stark and et.al, 2015). In addition, it will also
provide services of free home delivery, cash discount, cash on delivery etc.
3.7 Legal feasibility
Owner will follow all legal regulations which are made by Bangladesh government.
Owner will take licence for opening retail shop in Gulshan. Individual will make agreement will
landlord for hiring premises on land. (Yang and et.al, 2014) All necessary regulations related to
HR, employment, operations will be followed by the entrepreneur

3.8 Technological feasibility
Owner will also take support of latests machinery and technologies so that individual can
run its business in Gulshan Dhaka smoothly. Most of the retail shops face issue in billing. For
that owner has planned to use advanced software which can keep record of inventory and can
help in minimizing billing errors. It will assist in increasing satisfaction level of consumers.
3.9 Organizational feasibility
To perform better in the beauty industry it is essential for Rose Petals retail shop that to
hire skilled employees those who can deal effectively with potential buyers. Involvement of
skilled and experienced staff members is the key element that can help in getting success to the
entity. The main aim of cited firm is to earn high profit and increase satisfaction level of
consumers. For that it is planning to recruit candidates those who are committed towards job and
can contribute well in accomplishing goal of corporation (McKeever, 2016).
Owner of Rose Petals will hire chief executive officer, store manager, customer service
executive, accountant, cleaners, admin manager, sales manager. Candidates will be recruited on
the bases of their experience and education in the cosmetic industry. Chief executive officer will
recruit, select the deserving applicant. Individual will be responsible to give training to staff
members. Admin manager will be responsible for smooth running o0f HR practices in the
organization (Islam, 2016). Store manager will be accountable for management of daily activities
in retail shop. Sales team will be responsible for increasing sales volume of the organziation so
that entity can grow well.
3.10 Human resource requirements
Human resource is considered as one of the important assets on the organization. In the
absence of sufficient and capable staff members company can not grow well in the market. For
running the Rose Petals in the Gulshan Dhaka, owner will require several human resource. These
are explained as below:
 Chief executive officer
 Admin manager
 Store manager
 Merchandise manager

 Accountant
 Sales and marketing manager and executives
 Customer service executive
 Cleaners
3.10.1 Human resource management
Management of human resource is essential in the organization, ineffective management
increases chances of getting failed to the business. For managing the business owner will plan
activities properly. Individual will a lot responsibilities to all staff members as per their skills and
experience. It will help in getting optimistic result to the cosmetic retail shop. Apart from this, it
is essential to make effective coordination among all workers so that no confusion take place and
company can become able to achieve its objective significantly (Islam, 2016).
3.10.2 Requirements and selections
Owner will require skills persons and effective management team. Apart from this,
organization will also require financial resources and physical resources such as infrastructure
etc. This will help in opening a retail shop in new location smoothly.
3.10.3 Human resource development
For developing he candidates those who are going to work in the Rose Petals, owner will
arrange the training session for these people. That would help in enhancing their knowledge and
skills. By this way they will be able to understand the consumer’s needs. Thus, they will offer
them products and services as per their requirements. That would be beneficial in attracting more
people towards the brand and gaining their attention (LI and ZHANG, 2016). This human
development strategy of the organization will definably work and will give huge success to the
organization. In addition to this, cosmetic retail shop will make them aware with the market
condition so that they can deal with target audience well and can satisfy them well. Through this
business plan owner will be able to establish its retail shop of cosmetic products in the Gulshan
Dhaka successfully.

3.11 Financial feasibility
Financial feasibility study of Rose Petal Store, denoted the requirement of money. It
describes the level of money come and out from the business. It is essential for every
organization to estimate the cash requirement by which it can estimate the actual financial
position. It can be said that by understanding the feasibility and requirement of cash enable the
Rose Petal store, to analysis its financial status while opening its structure in Dhaka. It is
beneficial for the cited firm for securing its place in a competitive market (Yang and et.al, 2014).
It also provide short as well as long-term relation with stakeholder and help to make effective
control on their budget. Hence, it can be said that feasibility study increases the understanding
power of cited firm by which it can estimate the actual cost, sources of finance, profit or loss and
forecast the sales by an effective manner.
3.11.1 Start-up cost
For opening the cosmetic retail shop in Gulshan Dhaka, owner will have starting capital
10000000. This investment will be sufficient for establishing the shop in new location.
3.11.2 Operational cost
Year 1 Year 2 Year 3
Cost for payment of rent for 12
months
20,34
0
21,35
7
22,7
81
Salary - errand personnel
6,78
0
7,11
9
7,5
94
Start up expenses including
stationary
6
00
60
0
7,6
00
Cost for purchasing cosmetic
products
4,95
0
4,95
0
4,9
50
Retail shop hardware expenses
20,40
0
21,42
0
22,8
48
Cost for developing website of the
company
18,00
0
18,90
0
20,1
60

Insurance and general liabilities
12,00
0
12,60
0
13,4
40
Salary of staff members - -
67,1
22
Miscellaneous
1,86
0
1,95
3
2,0
83
-------------- --------------- ---------------
Total
84,93
0
88,89
9
168,57
8
3.11.3 Break-even point
Break even for 1st year
=505600-(84930+58200)/10000000
=362470
=0.036247
Break even for 2nd year
=557,419-(88899+72360)/10000000
=396160
=0.039616
Break even for 3rd year
=670,350-(168578+163934)/10000000
=337838/10000000
=0.0337838
3.11.4 Revenue projection 3
Note Year 1 Year 2 Year 3
sales 5 505,600 557,419 670,350

Sales cost 6 151,192 158,752 169,335
-------------- -------------- --------------
354,408 398,667 501,015
Operational expenses 7 84,930 88,899 168,578
Selling expenses 8 58,200 72,360 163,934
-------------- -------------- --------------
Operating profit 211,278 237,408 168,503
Corporate tax 4 52,820 59,352 42,126
-------------- -------------- --------------
Net income for the year 158,459 178,056 126,378
3.11.5 Sources of finance
Rose Petals is the new cosmetic retail shop which is going to run in Gulshan Dhaka. For
starting the new business successfully in new location it is essential to have sufficient financial
resources. In the absence of this entrepreneur will not be able to run its business effectively in
this market. Sources of finance available to the cosmetic retail shop are as following: Owner capital: It is one of the easiest source thorough which owner can fulfil monitory
requirements. Individual can invest own capital in the business. That would help in
making control over liabilities and entrepreneur will be able to get high profit. Bank loan: Financial institutes grant business loans to start up firms. Owner can present
entire quotation in front of bank manager. Banker will be able to grant loan for the Rose
Petals so that owner can start its retail shop in Gulshan Dhaka successfully. This financial
source will fulfil long term financial need of the individual (Truong, 2015).
 Venture capitalist: It is another source of finance in which owner can present the business
plan in front of big investors. They can invest money in start up firms in order to get high
return over their investments. This sources will be the effective source of finance and will
help in fulfilling monitory requirements of the company.

CHAPTER 4: STRATEGIC ANALYSIS & BUSINESS MODEL
4.1 Swot analysis
For strong business planning it is essential for the owner that to identify its strength and
weakness (Łopaciuk and Łoboda, 2013). That would help in making effective plan for entering
into the Gulshan Dhaka. SWOT analysis of Rose Petals is as below described:
Strength
 Good location: Business is going to open at good location. Gulshan is the place where
many business are running. Apart from this, there are many diplomats those who are
living near to this place. Thus, it is the attractive place that can attract more people
towards the retail cosmetic shop (Butler, 2013).
 Qualified and experienced staff members: Owner is planning to hire skilled employees
in the organization those who can perform well and can coordinate with the population of
Dhaka effectively. This is strong point of Rose Petals and by this way it will be able to
operate its business in the new location significantly.
 Various payment option: In this business plan cited firm will provide many payment
options to its valuable customers such as credit card, debit card, net banking, cash, cash
on delivery etc. All these options will attract more people towards the brand (Vorster,
2014).
 Wide range of products and services: It will offer wide range of products and services
to its valuable potential clients (Rocha and et.al, 2014). This strength of the organization
will help in increasing sales volume of the company and will enhance satisfaction level of
the customers.
Weakness
 One of the major weakness of the Rose Petals is that it is new in this market. Due to new
beauty cosmetic retail shop it is unaware with the complexity of market.

 Limited financial resources is another lacking point of the business. Dhaka is the place
where many cosmetic companies are operating their business a large scale. Due to lack of
financial resources it is unable to take risk.
Opportunities
 Gulshan, Dhaka is the place which is well known for business purpose. Rose Petals is
going to operate in the Gulshan which is the busiest street of Dhaka. There are many
officers running that helps in attracting more people towards the brand.
 Rose Petals will target mass audience and it will offer wide range of cosmetic products
such as personal grooming, perfumes, cosmetics etc. to the customers.
Threats
 High completion is the main threat to the business.
 Economic downturn can affect the overall performance of the entity. If economic
condition gets changed then it may affect purchasing and buying behaviour of the
population.
4.2 Ansoff's matrix
One of the main objective of any organization is to sustain in the market for longer
duration. Ansoff's matrix explain four alternative strategies through which it can run its business
in the market successfully. Four strategies that can give success to the Rose Petals are as
following: Market penetration: In this type of strategy in which firm focuses on increasing its
market share of already available products. In this technique organization needs not to
make changes in its products. Rose Petals can use this method by taking support of
promotional strategies (Wu, Yeh and Woodside, 2014). It can take assistance of
advertisement, social media marketing etc. that will aid in attracting more people and
increasing market share of entity. Product development: It is another strategy of Ansoff's matrix, in this corporation
concentrate more on developing its existing product into existing market. This strategy is

suitable for the business which want to gain competitive advantage. Rose Petals is the
new business thus, it can not develop its product thus, it would not be suitable strategy for
the entity (LI and ZHANG, 2016). Market development: It is also known as growth strategy in which owner aims to sell its
existing product in the new market. Rose Petals is planning to open its cosmetic retail
shop in the Gulshan Dhaka which is completely new market for the entity. It is entering
into new geographical location which is highly potential area. There are many offices and
near to diplomats as well. That may increase sales of the company to great extent. That is
why cited firm can include this strategy in its business planning (Suntikul, 2016).
 Diversification: It is another strategy of Ansoff's matrix in which organizations markets
new product into the completely new market. It is considered as most risky strategy
because there are chances that people of new location does not like the product. Company
has to do proper market research before entering into new market. By this way it will be
able to gain success and it will help in establishing its business in the new location
successfully (Rahman, 2015).
Illustration 3: Ansoff's Matrix
4.3 Blue ocean strategy
Blue ocean strategy explains that firms have to engage in head-to-head competition. That
helps in sustainable growth of the organization. It helps in creating uncontested market space and

increase demand of the product. Rose Petals is planning to open a cosmetic retail shop in the
Gulshan Dhaka, for that company is required to know better about market condition and
potential of the market (Stark and et.al, 2015). For that it is essential to conduct market research
in appropriate manner. With the help of blue heaven strategy cited firm will be able to align
whole system in pursuit of differentiation. That would be better in operating business at low cost.
By this way organization will gain success in the market and it will help in establishing the retail
shop in completely new market significantly.
This strategy will also be beneficial in capturing new demand. That would enhance sales
volume of its cosmetic, beauty products thus, cited firm will be able to sustain in the Dhaka for
longer duration. It will concentrate on providing quality products so that it can gain competitive
advantage. It will hire skills persons so that it can eliminate the loop falls from the internal
environment. It will purchase raw material from good suppliers those who can provide quality
beauty products at affordable rates. Apart from this owner will offer salaries to staff as per their
performance level, that will reduce unnecessary expenses of entity.
Cosmetic retail shop will take feedbacks from valuable consumers so that their needs can be
measured and company can make necessary changes to meet with their expectations.
Illustration 4: principles of Blue ocean strategy
Source: (Uggetti and et.al, 2014)

4.4 Mc Kinsey 7’s framework analysis
McKinsey has explained 7S model, it is useful framework that helps in reviewing marketing
capabilities of an organization.
Illustration 5: McKinsey 7S model
Source: (Stark and et.al, 2015)
7s framework has several elements, which are explained as below: Strategy: Business strategy of the Rose Petals will be based on product differentiation
strategy. Company will pay more attention on quality of the products. Now-a-days
competition is very high and customers expect to get quality products and services at
affordable rates. Rose Petals is going to open at Gulshan Dhaka where many offices exist
and there are many residential people live. Thus, it is quit easy and convenient place for
the customer to buy beauty products. It is going to offer products of Avon, Olay,
Shishedo, Dove, Estace and Lauper etc (Stephenson, 20140. All these brands provide
quality products which can enhance beauty of the person. Most of the women like to use
these branded products thus, strategy to open retail shop in this market would give huge
success to the entrepreneur. Structure: Rose Petals will adopt flat business structure. Owner will involve its team in
decision making process. That would help in enhancing loyalty of the people and they
will share their innovative views wit the management (Pervin, Ranchhod and Wilman,
2014). By this way company will be able to grow well in Gulshan Dhaka. Executives can

report directly to management about market condition and consumer's demand. It will
help in offering cosmetic products to the valuable clients as per the requirements. System: Company will hire skilled and experienced candidates in the organization. That
would support in getting skilled persons those who can perform better and can contribute
well in accomplishing goal of the entity (LI and ZHANG, 2016). It will pay attention on
team development, for that owner will arrange training session and meetings with all
team members. By this way better understanding will be developed and confusions and
miscommunication will be minimized. In addition, it will also focus on building
relationship with customers. In the competitive era it has become necessary for entity that
to have strong bonding with valuable customers. That may make them loyal towards the
brand. Rose Petals cosmetic shop will resolve their quarries soon and will provide them
products as per the requirements. This strategy will help entity in attracting more people
towards the brand (Sarker, 2014). Style: Cosmetic retail shop will adopt leadership style and will lead its staff members
effective so that they can deal effectively with potential buyers and can make them
satisfy. Higher authorities will motivate the team members and will involve them in
decision making process. That will support Rose Petals cosmetic retail shop in smooth
functioning of operations (Stephenson, 2014). Staff: Rose Petals cosmetic shop will require limited number of staff members in this
retail shop. There will one chief executive officer, accountant, sales manager, admin
manager etc. All candidates will be recruited on the bases of their skills and education. It
will offer salaries to them as per their performance level. Owner will not hire extra
candidates, it will recruit limited number of people in the organization so that individual
can make effective control over cost. Skills: Managers will require leadership and management skills so that they can lead team
well. Apart from this sales manager will require selling skill so that they can contribute
well in increasing profit of the organization (Brenner and Headrick, 2016).
 Shared Values: Rose Petals cosmetic retail shop will follow all regulation so that it can
run its business ethically. Owner will follow standards and will provide products and

services to customers as per these standards. Employees will behave good with
consumers and they will not use wrong language with buyers.
4.5 Value chain analysis
Value chain analysis is considered as useful tool that helps the organization in creating
value for customers.
Illustration 6: Porter's value chain analysis
Source: (Vorster, 20140
Primary activities Inbound logistics: Entrepreneur will develop relationship with suppliers so that individual
can get quality cosmetic products in the Rose Petals retail shop. Operations: Owner will transform inputs into outputs in effective manner. Owner will
focus on providing products to end users as per their requirements. Outbound logistics: Entrepreneur will take care of deliveries and will distribute products
properly so that consumers can get satisfied. Marketing and sales: For promoting products of Rose Petals retail shop, cited firm will
take support of social media marketing and promotional campaigns. That will assist in
increasing brand awareness in the mind of consumers of Gulshan, Dhaka. Services: It will provide free home delivery, cash discounts, testing of products services
to its valuable clients (Brenner and Headrick, 2016).
Secondary activities

 Procurement: It will involve acquisition of resources so that business can run
significantly. Human resource management: HR manager of Rose Petals will give training to staff
members and will provide them incentives so that they perform well (Truong, 20150. Technological development: Company will use advance technical equipment so that
transparency in operation can be maintained. It will also use advance software so that no
mistakes done in keeping records and billing.
 Infrastructure: Owner will develop good infrastructure in the retail shop so that
consumers can get attracted towards the brand. In addition, entrepreneur of Rose Petals
will also take care of legal regulation so that it can run its operations smoothly
(Stephenson, 2014).
4.6 Business model canvas
Key activities
 Providing wide
range of beauty
products which
is good in
quality and
satisfy the need
of the
customers.
 Identifying the
demand of
cosmetic
product in the
market.
Value proposition
 Providing
quality
products
which does
not make any
harm for
customers.
 Launching
organic
products.
Relationships
 Use of social
networking
sites such as
Facebook,
twitter,
google or by
creating their
on web page.
 Text
messaging
and emails
Clients
 Focus on people as
per their income,
age and
preferences. In
which Rose Petal
Store mainly focus
on young girls and
women ages of 25
to 40 years.


Key Resources
 Financial
 Physical
 Manpower
Channels
 Shopping
malls
 Stores

Cost Centres
 Main cost involve: Cosmetic products such as
combo products which having large quantity.
Revenue Streams
 Special selling on occasion with offers
or discounts.
Above shown is the business canvas model of Rose Petal Store which want to open
its structure in Gulshan It highlights various key activities which can performed by
the organisation. It explains the various partner by which it can collect the raw
material in high quality so that it can satisfy the need of the customers. It also uses
various promotional activity such as Facebook, twitter or create their own web page
so that it can make great market approach. Cited firm mainly focuses on various
shopping malls and stores for expanding its structure. It also includes various offers
and discounts which are provided by them which increases its total revenue and
positive impact on it.

CHAPTER 5: BUSINESS PLAN
5.1 Industry
The cosmetic industry of Dhaka is on the rise in the country due to the increasing demand
for cosmetic and fragrance items in the mass of the country. The demand is on hike among the
women of the country with the hit of modern age in the society. More women are attracted
towards cosmetic beauty and fragrance products.. The consumers are not just contended towards
the appearance part of the product, they are focusing on the health aspect as well. The consumers
want the product to also be health for their skin with the appearance concept added. The
traditional products no longer satisfied her needs. She is also concerned with her beauty items
having to protect her from the suns damaging rays, moisturise her skin and also reduce the
effects of ageing. The increase in attraction is not just finite to women a large audience of men
and children are also pulled towards the grooming, cosmetic and fragrance products. This
increase in the audience of the products has created a new base for the companies to find
potential consumers, giving industry a massive high to its growth. The change in the perspective
of the audience has created a gap for many new entrants to the cosmetic, grooming and fragrance
industry for the men women and children The total profit margin for the company has also taken
a hike with numbers of consumers increasing in the sector.
5.2 The company
The company has lot of potential in the market as the industry has gap for new entrants.
The rose Petals is looking to enter the market on Gulshan, Dhaka. Gulshan is a busy street in
Dhaka with a lot of offices and also residential place to diplomats which creates a lot of potential
customers for the retail store. The company is focusing on providing quality products to its
potential customers with a content focus on women and men with beauty loving habits and high
income consumers. The range provided by the company is of a definite quality in the most
adequately affordable prices available. The strategy used by the company is focusing on
increasing its market share through already available products. With advertisement techniques,
the company can reach a mass audience through the platform of advertisement on social and
local publishes. The hiring of skilled and limited staff members to the retail shop will increase its
revenue with low cost for operations. With the help of various payment options provided by the

company such as cash, credit card, debit card, net banking, cash on delivery the company is
looking to push its reach to the customers. Rose petals also has no prior experience of the market
which is going to be its prime weakness in the upcoming business start up. The company is
looking to increase its range of products available on the retail shop through addition of bags and
other related items.
5.3 The market
Cosmetic market of Bangladesh is growing well.
Illustration 7: growth of cosmetic market
Need of such type of beauty products are increasing and many women like to use such
type of products. That is why Gulshan has become the place where most of the cosmetic
companies are planning to open a retail store. Good location and demographic segmentation will
be helpful for Rose Petal in attracting more people and accomplishing objective of the
organization. Gulshan is the place which is near to many offices and many residential people live
near to this location. Income level of population is good, they have good sources of earning.
Market size of Gulshan is approx 0.5 percent of Bangladesh. Thus, there are many potential
buyers those who can help in increasing sales volume of the company. Now-a-days customers
like to use beauty cosmetic products in order to look nice. Apart from this, they need quality
services on time. Rose Petal is able to fulfil their needs and providing then quality services on
time. By this way company will be able to fulfil need of target audience and it will enhance their
satisfaction level as well. By this way organization will be able to earn good profit in the new
market.

5.4 Operational plan
Owner of Rose Petal will hire building on rent for three years in the Gulshan. This is
perfect location for cosmetic retail shop because it is near to many offices and many diplomats
live near to this place. Location plays significant role in the success of the business. Gulshan
would be the perfect place for the Rose Petal because it will assist in attracting potential buyers
towards the brands and that would support in increasing revenues of the entity.
For increasing sales volume of the organization, owner of Rose Petal will develop
website on which customers can buy products directly at affordable rates. Flow of goods and
services will be smooth. There will be one customer service department which will prominently
work for resolving quarries of consumers. Service department will provide quality beauty
services to valuable clients that would help in attracting more people towards the Rose Petal.
Consumers will be able to order their products on telephone or through internet.
Management of the company will circulate all necessary information to staff members
and costumers so that no confusion will take place. Rose Petal will use advance technological
equipments so that operations can be run in smooth manner and no mistake can take place. For
billing company will use advance software so than no mistake take place in the future. That
would help in increasing satisfaction level of potential buyers.
5.5 Implementation plan
Implementation plan is considered as one of the essential part of business planning in
which all activities and strategies have to implement by the owner.
 Refining scope: In this phase owner has to refine scope of the plan and it needs to be
conducted in effective manner. That can help in aligning activities in accurate manner.
 Registration of business: It would be next phase of implementation plan in which
entrepreneur will have to register its business so that individual can open retail cosmetic
shop in Gulshan.
 Purchasing of products: Individual will have to purchase all cosmetic products from the
good suppliers. That would help in offering wide range of products to consumers.

 Recruitment: That would be next phase in which owner will hire candidates those who
have necessary skills and experience of working in cosmetic industry. These persons will
be able to contribute well in accomplishing objective of the Rose Petal.
 Resource allocating and budgeting: In this phase owner will allocate resources and will
decide budgeting.
 Developing marketing activities: That would be next phase in which company will make
strategies to market its products. It would be new in Gulshan thus, it is essential to make
people aware with the brand. For that company will have to adopt effective marketing
strategies so that it can attract more customers towards the brand.
 Promotional activities and taking feedback from customers: In the next phase
organization will be required to promote its brand and management have to take feedback
from consumers so that their point of view can be identified.
 Bringing changes in services: As per the feedback of customers owner of Rose Petal has
to make necessary changes in the operations so that it can run its business in Gulshan
Dhaka smoothly.
Illustration 8: Implementation plan
5.6 Development plan
Elements of development plan for the Rose Petal retail cosmetic shop are as following:
 Situation analysis: Rose Petal will require to analysis the market and environment
situation by conducting the research in effective manner.

 SWOT analysis: Company will have to identify its strength and weakness so that it can
plan activities accordingly. This will support in making development strategies and
getting high success in the new market.
 Setting of aims and objectives: Once company gets established in the Gulshan then owner
will have to redefine goal and objective so that long term strategies can be made.
 Allocation of resource: It is essential to allocate resource effectively so that unnecessary
expenditures can be minimized.
 Budget: For long tern success owner will have to pay attention on budget. It will have in
effective utilization of available resources and it will help in making effective control
over cost.
 Monitoring and controlling: It is the last phase of development plan in which
entrepreneur is required to monitor all activities time to time so that mistakes can be
identified at initial phase and further complications can be avoided.
5.7 Business sustainability
5.7.1 Critical success factors
There are many critical success factors that can support the owner in making effective
business plan for opening a new cosmetic retail shop in Gulshan.
 Quality of products is one of the main factor that can influence overall business
operations. If company is able to provide quality beauty products then it can support in
increasing demand of the products. If quality of these items are not good then consumers
can switch to other brands.
 Presence on social media and internet is another main element that affect sales volume of
the organization. Rose Petal is required to pay attention on this aspect and it should
develop its website in such manner so that it can attract more people towards the brand.
Retail presence, display, catalogue can attract more people towards the brand.
 Communication with consumers is another major part of cosmetic industry that ca
influence the overall business performance. Good interaction with potential buyers can
assist in increasing demand and fulfilling their needs.

 Service delivery is one of the essential critical success factor that can influence the
business performance and it can change mind of customers as well.
5.7.2 Risk assessment
BCG Matrix is one of the most essential model that helps in risk assessment of the
organization. With the help of this model company can plan its portfolio and can get established
in the new market easily. There are four main stages of BCG Matrix, these are as following: Start: It is first phase of BCG Matrix in which market share and growth of business both
are high. Rose Petal retail shop is new in Gulshan and to achieve this position it is
required to provide wide range of products to consumers and provide them quality
services as per their requirements. That would support the cited firm in garbing more
opportunities in new business environment. Cash flow: It is the phase in which market share of the company is high and growth of
business is comparatively low. Rose Petal is new to Gulshan market thus, it does not have
good income sources. It is required to increase its assets and invest amount so that it can
meet with the objective of the organization. Question mark: It is determined with low market share and high market growth rate. If
growth of the organization is good then it would be beneficial for the cited firm in
obtaining large cash. By reaching this stage company will be able to explore its market
easily.
 Dogs: It is the stage in which growth and market share both are low. If organization come
to this phase then it would create situation of shutting down the operation because if
company runs its business in low market share and growth condition then it would impact
negatively on the organization.
Prospective risks Who is affected
by this risk
Risk rating Defensive
measures
Responsibility
Product quality
risk
Owner of Rose
Petal, employees
3 Owner can
involve high
quality beauty
CEO, Quality
Manager

products and can
cross check each
purchased
material before
selling it to end
user.
Financial risk Owner, investors 4 Proper planing
and correct
investment
decision can help
in minimizing this
risk.
Accountant ,
finance manager
Service related
risk
Customers,
employees
3 Hiring of skilled
and experience
staff member is
the good strategy
through which
this risk can be
minimized.
Customer service
manager, sales
manager
Low demand risk owner 3 By offering
attracting
discounts and
additional
facilities
company can
enhance demand
of the cosmetic
products.
Production
manager, sales
manager

5.8 Financial plan

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