Singapore Vitamin Market Business Plan

This assignment requires a business plan focusing on the introduction of new vitamin products in Singapore's market. The plan should detail effective marketing strategies to reach target customers and build a strong customer base within the country. The assignment emphasizes the importance of understanding the local market, consumer trends, and competitive landscape to ensure success.

Running Head: BUSINESS PLAN 1
Business Plan: Homeopathic and
Naturopathic Health Supplements

BUSINESS PLAN 2
Executive Summary
Business Plan is a written document that is prepared by an organization for its future business.
This business plan of the company states that what a company plans to do and how it plans to do.
It includes all the related processes and activities of that specific business. This business plan is
formed for e-commerce business of homeopathic and naturopathic products of Go Healthy
Organization. The organization is going to launch its new business idea in an Asian country, i.e.
Singapore. It includes all the description about the business plan, like; market segmentation,
marketing strategies, sales strategy, financial forecasting and time table for implementing all the
activities of this business plan. The company is launching its website for selling naturopathic and
homeopathic products, which will deliver the products to customers’ home. Organization is
implementing various effective strategies and marketing tactics for launching its new business
idea. This business idea will work in the favor of company and assist in generating growth in
terms of profits and revenues.

BUSINESS PLAN 3
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Business Background.......................................................................................................................4
Objectives.....................................................................................................................................5
Marketing.........................................................................................................................................5
Market Segmentation...................................................................................................................6
Marketing strategies and implementation....................................................................................6
Sales Strategy...............................................................................................................................6
Operations........................................................................................................................................7
Sales and production....................................................................................................................7
Web-plan......................................................................................................................................8
Personnel Department..................................................................................................................8
Supply Chain and distribution system.........................................................................................9
Financial Projection.........................................................................................................................9
Start-up Funds..............................................................................................................................9
Financial Plan.............................................................................................................................10
Projected Cash Flow..................................................................................................................11
Projected Balance Sheet.............................................................................................................12
Break Even Analysis..................................................................................................................13
Implementation Time Table..........................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

BUSINESS PLAN 4
Introduction
Business plan is a formal plan that is created by an organization, when it introduces a new
business or idea in the market. It includes all the material information, like; goals and objectives,
reasons, operations etc., regarding the company and its new business idea. Each and every
business needs to create a business plan for its new product and service. In today’s business
environment, use of internet is increasing with the technology advancement. People are actively
engaged in using internet and shopping products online. So, this report includes a business idea
that is related to e-commerce.
This is very new and innovative business idea, i.e. online sales of homeopathic and naturopathic
dietary and nutritious supplements. The organization is introducing this new idea in Asian
country, i.e. Singapore. Although there are some companies, which have implemented the
similar concept, but they are failed. Still, internet has dignified to support the e-commerce
retailers. For this discussion, an organization, i.e. taken into consideration, is Go Healthy. The
organization is introducing healthy and dietary supplements. It is trying to overcome the issues
with an easily accessed website and effective distribution process. The below report includes all
the aspects related to business plan for these new products.
Business Background
Go healthy is an organization that is introducing online sales of the naturopathic and
homeopathic supplements. Under this new business idea, the mission of the organization is to
offer the deluxe in natural and herbal supplements by accessing internet to reducing the cost of
customers. The company is including some new things for maintaining the existing customer
base and attracting new customers. Earlier, there are so many companies, which have introduced
this concept, but they did not get success (Armstrong, Kotler, Harker and Brennan, 2015). Now,
this organization is offering the similar services with unique features, easy to use website and it
will deliver the supplements through an effective distribution system. It is developing a well-
established e-commerce site for selling naturopathic and homeopathic products.

BUSINESS PLAN 5
Objectives
For enhancing its business practices and operations in the new market, the company will
establish various objectives for next three years. The company will work for attaining these
objectives by creating and implementing effective strategies. These three years objectives will
assist the organization in creating a brand image in the e-commerce industry. The three years
objectives for this business idea are stated below;
 To make the Go Healthy a well-established trademark in Singapore
 To create an efficient, well-known e-commerce website to sell the naturopathic and
homeopathic items.
 To develop an infrastructure for fulfilling the web-based sales.
 To introduce a laser-emphasized promotional campaign in quantifiable and controllable
market that will attract more customers towards its online website (Baker, 2014).
The company will consider some factors as key to success, such as; web design, marketing,
product quality and service quality.
Marketing
In Asian countries, the demand for health and vitamin supplements is increasing. Higher demand
for naturopathic and homeopathic dietary supplements acts as a major driver in the Asia Pacific
region. In Asian countries, health segment ruled the food and beverage industry. Herbal health
supplements are forecasted to drive the health and dietary supplement market in the Asian
countries. From Asian countries, China controlled overall Asia Pacific Naturopathic market in
the year 2016. In this region, changing preferences and lifestyle of people towards healthy life
style of eating work as a major driver (Chaffey, 2015). In Singapore, the company can serve a
large market segment by offering this e-commerce service as people are very much concerned
about their health. There are a few competitors in this industry in Singapore.
These are the major reasons behind that Go Healthy is introducing its e-commerce website and
its store for naturopathic and homeopathic products. The people are becoming more conscious
about their health and they are shifting their perception towards natural and herbal products.

BUSINESS PLAN 6
Moreover, the positive medical outcomes from the studies have also legitimized the homeopathic
and naturopathic items (Global Industry Analysis, Inc. 2015).
Market Segmentation
An important trend in Singapore, is that population is becoming more conscious about their
health. Public is trying to evade the intrusive surgery and strong pharmaceutical medicines. They
are maintaining their fitness and health and taking protective medicines. Naturopathic medicines
enhance the diagnosis, cure and evasion of human diseases by using non-pharmaceutical
products. In introducing this new business idea, organization is reaching to the middle age and
humanity is becoming a major focus (Clarke et al, 2015). The company is selecting the market
on the basis of demographic characteristics that includes 80 million people and shows 50% of the
nation’s revenues. This is rational to consider that this segment will remain to increase the sales
of naturopathic and homeopathic goods.
In addition, another trend is the development and popularity of internet and e-commerce. Online
retailers, which can offer the best products in terms of quality, information, customer service and
intangible, are becoming more successful. The company will target the market segment, which is
actively engage on internet and online shopping.
Marketing strategies and implementation
The marketing strategy of the organization is based on covering a significant percentage of
increasing market share of naturopathic and homeopathic supplement segment through web-
based sales. Go Healthy is emphasized on merging internet market in the country. The people in
region are looking for the non-invasive and proactive ways to become healthier with the passage
of time. Under its marketing strategy, the company will actively engage in web-based marketing
in next two years to create awareness of the organization and about the products (Combs and
McClung, 2016). As the use of internet based advertising is decreased, so the expenses for
advertising have declined making it cost effective.
In addition, the organization will use outdoor advertising, which will offer the general awareness
to population of Singapore at large and direct customers to the website of company. With this,
first the company will conduct market research to get the information about leading and existing
competitors in homeopathic and naturopathic supplements (Dickinson and MacKay, 2014).

BUSINESS PLAN 7
Sales Strategy
Go Healthy will produce 90% of its sales online via a secure internet connection and SSL
(Secure socket layer). It will offer different payment modes, like; Mastercard, Visa, American
Express. By making sure that company’s website is easy to use and simple to placing order. The
company will be ensuring that customers who surf the website will purchase something from
their site.
Operations
Sales and production
Production and sales at this organization are most essential components in launching this new
business idea in Asian Countries. It will utilize systematic processes and equipment in producing
the homeopathic and naturopathic products. It will use quality and natural ingredients in the
products, which will be healthy for people. For ensuring effective production, firm will hire the
experienced persons for developing medicines.
In this business idea, Go Healthy will process most of its sales through online business via secure
socket layer. For making effective sales, it will ensure that its website is very easy and simple to
use and people can place the order without facing any confusion and technical issue. The website
will contain all the detailed information about the products (Hill, Jones & Schilling, 2014).
When the organization will introduce this new business idea, then two months will be utilized to
develop the site. In these two months, there will not be generation of sales. Form second month,
company is forecasting a continuous increase in the sales. The company is adopting effective
sales strategies for generating maximum sales from its new business idea.
The below-plotted graph shows the sales forecasting of Go Healthy for its homeopathic and
naturopathic products.

BUSINESS PLAN 8
Figure 1: Sales Forecasting
Thus, the above-graph includes the monthly sales forecasting for naturopathic and homeopathic
products in the country. The sales and marketing strategies will assist the organization in
attaining its sales and marketing objectives (Lam and Harker, 2015).
Web-plan
Web-site is the most essential and important tool for new business idea of Goo Healthy
organization. The company will utilize their website as their ordering device and catalog. This
website will work as complete product offering and information about products. It will be
created with effective innovation, creativity and simplicity. It is vital that customers are able to
surf through the site without any problem. Its site will be benchmarking website, like; Amazon.
The website will offer a phone number on website to resolve the customer issues (Lu and Liu,
2015). This website will be marked via popular search engines, like; Google and Yahoo.
Personnel Department
In hiring the personnel for its new business, the company will use different recruitment and
selection methods. In the beginning, the managers will be in the workforce starting first month
and it will recruit distribution person and customer service people in second month. For hiring, it
will adopt external and internal recruitment methods. It will publish the advertisement in the
newspaper and some other job portals. Through these resources, the company will hire the
people. In addition, Go Healthy will hire information technology experts and programmers for
developing the website of company (McKeever, 2016). It is formulating a plan that will include
salary structure of all the employees.

BUSINESS PLAN 9
Supply Chain and distribution system
For an e-commerce business, it is very important to adopt an effective supply chain and
distribution system for its products. The company will tie up with well-recognized delivery and
courier agencies, so that they can deliver customers’ products on time. The company will
consider the fact that internet users expect fast delivery of products, so that by having several
distribution centers, company can improve the delivery times for its products. The company will
adopt multichannel retailer’s supply chain strategy to deliver the products on time. The company
will not charge delivery charges. Furthermore, it will form right partnerships with trustworthy
distributors and manufacturers that can enhance the supply chain management of the
organization (Myerson, 2016). As it is an e-commerce business, so organization will adopt a
systematic and efficient distribution system and supply chain.
Financial Projection
The major of Go Healthy is to establish the business as an e-commerce market retailer in
marketing and sales homeopathic and naturopathic health supplements.
Start-up Funds
Go Healthy will incur different start-up costs. These costs include office supplies, web
development, legal fees for the business development, telephone installation, shelves for storing
the inventory and computers and laptops with software, like; Microsoft and Printer, internet
connection etc. (Pardalos and Tsitsiringos, 2013). The financial projection for startup costs is
stated below;
Start-up Expenses Amount
Legal $2000

BUSINESS PLAN 10
Stationery expenses $300
Web Development $10,000
Total Start-up Expenses $12300
Start-up Assets
Required Cash
Long term Assets
Current Assets
$65000
$3100
$0
Total Assets $68100
Total fund Requirements $80400
Financial Plan
For introducing this new business idea, company has made an effective financial plan, which will
assist the organization in achieving its goals and objectives.
Go Healthy (Naturopathic and Homeopathic products)
Profit & Loss Statement
Amount ($)
Year 1 Year 2 Year 3
A. Sales $189,397 $412,314 $456,226
Direct Cost of Sales $56,819 $123,694 $136,868
B. Total Cost of Sales $56,819 $123,694 $136,868
Gross Profit (A-B) $132,578 $288,620 $319,358

BUSINESS PLAN 11
C. Operating Expenses
Salary
$157,000 $174,000 $190,000
Rent
$8,400 $8,400 $8,400
Insurance
$1,800 $1,800 $1,800
Utilities
$1,500 $1,500 $1,500
Depreciation
$636 $636 $636
Payroll taxes
$23,550 $26,100 $28,500
Sales and Marketing and Other
Expenses
$10,800 $9,200 $7,200
D. Total Operating
Expenses
$203,686 $221,636 $238,036
Profit Before Interest and Taxes ($71,108) $66,984 $81,322
EBITDA ($70,472) $67,620 $81,958
Taxes $0 $20,095 $24,397
Net Profit ($71,108) $46,889 $56,925
Net Profit/Sales -37.54% 11.37% 12.48%
Projected Cash Flow
The below-given graph indicates the cash flow at Go Healthy through these homeopathic and
naturopathic products and health and dietary supplements.

BUSINESS PLAN 12
Figure 2: Cash Flow
Projected Balance Sheet
The balance sheet is the statement that includes the assets and liabilities of a company. The table
shows the projected balance sheet of Go Healthy Company for its new business idea, i.e.
naturopathic and homeopathic products.
Go Healthy (Naturopathic and Homeopathic products)
Balance Sheet
Amount ($)
Assets Year 1 Year 2 Year 2
Current
$7,091 $58,333 $117,363
Long Term Assets
$2,563 $1,927 $1,291
Total Assets
$9,654 $60,260 $118,654
Liabilities
Total Liabilities
$11,963 $15,680 $17,150
Total Capital ($2,305) $44,580 $101,504
Total Liabilities And Capital $9,658 $60,260 $118,654
Net Worth ($2,305) $44,580 $101,504

BUSINESS PLAN 13
Break Even Analysis
After analyzing the related businesses, the organization has assumed that break even analysis
shows that $24,248 would be required in the monthly revenues to approach the break point
(Scarborough, 2015). The below-graph indicates the break even analysis for the organization;
Figure 3: Break Even Analysis
Implementation Time Table
For implementing all the operations and strategies for new business idea, the company will make
an implementation time table that will include all the major operations and duration for their
completion. This time table will assist the organization in completing all the activities in timely
manner. It will include different activities, like; Business plan completion, setting up the office,
Website creation and appointment of the personnel in preliminary stage. Completion of business
plan will be processed as a roadmap for the business (Renton, Daellenbach, Davenport and
Richard, 2015). It will be an essential step for continuous improvement and performance of
business firm.
The implementation time table for this new business plan is stated below;
Activity Starting date End Date Manager Concerned

BUSINESS PLAN 14
Department
Business plan
formation
1/1/2018 1/4/2018 Marketing
Manager
Marketing
Department
Office set up 1/4/2018 1/7/2018 - Owners
Website
Creation
1/7/2018 1/10/2018 Managers Information
Technology
department
Hiring of the
people
1/10/2018 1/12/2018 HR manager Human resource
department
Thus, the above table will assist the organization in introducing its homeopathic and naturopathic
products effectively. In the e-commerce business, web-site creation is an important process to
attract more customers (Yu, Wang, Zhong and Huang, 2016). The company will focus on that
website is attractive and creative.
Conclusion
Thus, the business plan of Go Healthy Company includes all the details, which are required for
introducing a new business. It consists of all the material aspects of business plan, like;
marketing, operations, financial plan and implementation time table for homeopathic and
naturopathic products. The financial plan of company includes the projected balance sheet, cash
flow and profit and loss statement of the company. The company is offering the products using
an e-commerce site. In today’s business world, the people are very much concerned about their
health, so they avoid using pharmaceutical medicines and preferring to intake naturopathic and
homeopathic dietary and health supplements. The given business plan will be effective for new
products of the company and it will assist the organization in developing its customer base in
Singapore.

BUSINESS PLAN 15
References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Chaffey, D., 2015. Digital business and E-commerce management. Pearson Education Limited.
Clarke, T.C., Black, L.I., Stussman, B.J., Barnes, P.M. and Nahin, R.L., 2015. Trends in the use
of complementary health approaches among adults: United States, 2002–2012. National health
statistics reports, (79), p.1.
Combs Jr, G.F. and McClung, J.P., 2016. The vitamins: fundamental aspects in nutrition and
health. Academic press.
Dickinson, A. and MacKay, D., 2014. Health habits and other characteristics of dietary
supplement users: a review. Nutrition journal, 13(1), p.14.
Global Industry Analysis, Inc. 2015, The Global Vitamins Market: Trends, Drivers and
Projections, Retrieved from
http://www.strategyr.com/MarketResearch/Vitamins_Market_Trends.asp.
Hill, C. W., Jones, G. R., & Schilling, M. A, 2014, Strategic management: theory: an integrated
approach. Cengage Learning.
Lam, W. and Harker, M.J., 2015. Marketing and entrepreneurship: An integrated view from the
entrepreneur’s perspective. International Small Business Journal, 33(3), pp.321-348.
Lu, Q. and Liu, N., 2015. Effects of e-commerce channel entry in a two-echelon supply chain: A
comparative analysis of single-and dual-channel distribution systems. International Journal of
Production Economics, 165, pp.100-111.
McKeever, M., 2016. How to write a business plan. Nolo Publications.

BUSINESS PLAN 16
Myerson, P. A, 2016, How Supply Chain Strategies Impact E-commerce Success, Retrieved
from http://www.inboundlogistics.com/cms/article/how-supply-chain-strategies-impact-e-
commerce-success/.
Pardalos, P.M. and Tsitsiringos, V. eds., 2013. Financial engineering, E-commerce and supply
chain (Vol. 70). Springer Science & Business Media.
Renton, M., Daellenbach, U., Davenport, S. and Richard, J., 2015. Small but sophisticated:
entrepreneurial marketing and SME approaches to brand management. Journal of Research in
Marketing and Entrepreneurship, 17(2), pp.149-164.
Scarborough, N.M., 2015. Entrepreneurship and effective small business management. Pearson
Higher Ed.
Yu, Y., Wang, X., Zhong, R.Y. and Huang, G.Q., 2016. E-commerce logistics in supply chain
management: Practice perspective. Procedia CIRP, 52, pp.179-185.