Entrepreneurial Development Report

This report outlines a business plan for launching a new line of natural perfumes targeting individuals with perfume intolerance and asthma. The report analyzes market trends, identifies key challenges, and proposes solutions based on a thorough SWOT analysis. It also includes a detailed financial plan and break-even analysis, demonstrating the feasibility of the venture.

Development

Table of Contents
SECTION 1: INTRODUCTION.....................................................................................................1
Problem identification..................................................................................................................1
Proposed solutions.......................................................................................................................2
Section 2: Opportunity/Idea Formation.......................................................................................3
Section 3: Opportunity or Venture Development........................................................................7
Section 4: Conclusion..................................................................................................................9
REFERENCES..............................................................................................................................10

SECTION 1: INTRODUCTION
Perfume industry is not an easy one to enter into as there are a lot of companies out there
with a strong brand and recognition. As a Roehampton 3rd year student, I was assigned as part of
Entrepreneurial Development module to come up with a new business opportunity. We had to
develop a power point presentation in a group of three and I found a business opportunity in
manufacturing 100% pure essential oil perfumes targeting people with perfume intolerance and
asthmatics as they are unable to use normal perfumes. We plan to make this business a success as
we conducted a research and we managed to find out that one third of people suffer from
fragrance sensitivity. In this report I will be presenting the problems we found in detail, the
solution that we came up with as well as the risks involved in this type of business and
competitors we managed to find and also our plans and ideas towards making this business a real
success. Our Main objective behind this is to capture large market share and enhance
profitability. For this purpose, we are required to conduct research and identify needs and
requirements of customers so that such products can be offered to them. (Miletzki and Broten,
2017).
Various topics are covered under this report which includes unique value proposition of
entrepreneurial idea, development pathway, process in which idea is being formulated etc.
features of chosen development pathway are also discussed in this assignment.
Problem identification
I and my team members analysed various sources to identify problem available in
perfume industry. We have observed the problem which is as follows:
 Perfume intolerance or perfume allergy: a condition wherein people exhibit sensitivity
or allergic reactions to ingredients in some perfumes and some other fragrances. This
condition is very common and studies show that about 30% of the general population
may suffer from it (People suffer from fragrance sensitivity, 2017).
 Asthma attacks: common trigger for asthma attacks. In fact, there are many asthma
patients who couldn't stand the smell of perfumes. For some asthma sufferers,
perfume is the sole reason of high-intensity attacks (Perfumes as an asthma trigger,
2016).
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 Too many brands offer the same uninspiring product and experience, in order to survive
in the market we have to focus in quality rather than quantity (Major issues facing
fragrance industry, 2018).
Proposed solutions
 Our perfumes contain truly natural aromas obtained from essential oils which does not
harm asthmatics and their health (Essential oils used in aromatherapy, 2019).
 Free of phthalates, parabens and sulphates which are the chemical that are used by other
companies but we have planned to ignore them as we are focusing on women who avoid
perfumes with harmful chemicals.
 100% nature-derived ingredients are going to be used by us to make different variants of
perfumes.
 Easy and fun to customise as three perfumes can be used separately and mixed to make a
new fragrance.
We have planned to introduce new perfumes in market which contain truly natural
aromas obtained from essential oils. They are also free from phthalates, sulphate and paraben
which are harmful supplements that are used by mostly companies to manufacture perfumes.
Perfumes that are going to be in introduced in market are made from 100% natural ingredients.
The new idea was proposed by keeping ladies in mind who use perfumes according to their
mood. We decided to introduce our main Femme Fatale scent as well as a kit of three perfumes
with different notes that can be mixed to create a unique, personalised scent according to
requirements and preferences. The scents are woven with various fragrances such as jasmine,
rose, ginger and lavender and these are infused with gold and diamond particles (Schumpeter,
2017). Main target segment of company for specific perfumes is women who have perfume
intolerance, suffering from allergies, ladies with cosmetic contacted dermatitis patients of asthma
and people who are willing to avoid scents which are made from harmful chemicals.
We are planning to launch the main Femme Fatale perfume and also a kit containing
three perfumes along with an empty crystal bottle that can be used to mix the perfumes in desired
ratios in order to create a unique scent according to everyone’s needs and preferences.
Femme Fatale: It is with ladies in mind. Free, intense, associated, fiendish and flippant,
they turn desire on its head, swim against the tide, force their own particular mood, design a
shiny new beat.
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• The scent of the sensual, sophisticated woman, Femme Fatale, is a daring fragrance
woven with jasmine, rose, ginger and lavender infused with gold and diamond particles.
A floral, spicy, sensual pure Perfume oil.
Femme Fatale -Make me Yours kit
This is a set consisting of 3 perfumes with different notes and intensities that can be
mixed to create your own unique scent.
The scents provided in the kit are as follows:
• Versatile, modern and sultry. This perfume features delicately layered aromas of soft
lilies and woodsy violets. Complementing any wardrobe, this scent will take you from the
office to drinks with the girls (Corbett, Katz and Siegal, 2014).
• A whiff of this transports you to the vibrant California coast. It’s a light and charming
fragrance with top notes of lemon blossom and a base of salty sea breeze.
• Love adventure and exploring (or dreaming about) exotic locales? Let the fresh tropical
aroma of this perfume oil transport you to sunnier corners of the world with notes of lush
greens, freesia, white jasmine, bergamot and rose.
SECTION 2:
Opportunity/Idea Formation
The idea is being formulated by analysing market problems regarding use of perfumes.
We conducted research and observed that one third females in UK are ignoring perfumes due to
various reasons. When we analysed the issues, we managed to find out that most of them are not
able to use perfumes due to their health issues and harmful chemicals that regular perfumes
contain. Once we identified this problem, we formed innovative ideas in order to resolve this
problem (Liñán and Fernandez-Serrano, 2014). Various new ideas are being formulated but one
is selected which is related to launching new scents in market with natural ingredients. In order
to help people to use scents and provide a new experience, we as founder of Femme Fatale will
launch the perfumes specially made for women who avoid using fragrances that are made of
noxious supplements.
Uniqueness of product: The new business idea of us is unique as compare to other
companies which are our competitors such as Lavanila, Pacifica, Juara etc. All of them are also
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offering perfumes to women who are dealing with issues such as asthma, perfume intolerance
etc. but our company is offering something unique. We are going to use natural ingredients and
flowers to make scents and we will not use any type of chemical (Mazzucato, 2015). This is our
proposed uniqueness which is not done by other organisations. These competitors are analysed
with the help of Porter's five force model in which competitive rivalry strategy is being used to
analyse them. Quality of new perfumes is very good and its price matches to the quality which
can help to attain competitive advantage in the market. We have planned to serve 8.8 ML in each
bottle of perfume. The other brands are mainly focused with women who are ignoring perfumes
with harmful substance or strong fragrance.
We have conducted a PESTLE analysis and we found that some of the social factors are
creating issues for my business and launch of new perfumes in market. Buying behaviour of all
customers vary according to their mind set and requirements. Some of the clients think that the
perfumes that are made of natural ingredients do not have good fragrance. In order to deal with
this issue Femme Fatale has planned to provide free sample to the clients to change their mind
(Frank, 2018.). To deal with this problem I formulated a strategy in which I will spread social
awareness regarding the scents and elements that are required to make them (Theodoraki,
Messeghem and Rice, 2018).
Three new perfumes are going to be introduced in market and all of them can be used
separately or mixed to make a new fragrance. We conducted SWOT analysis and assessed
various elements strengths as we are going to offer good quality perfumes that would be loved by
customers. We have used different variants of fragrances in the scents in order to provide variety
to the clients (Cohen, 2017). Eye catching bottles will be used by us to pack scents that helps to
impress customers and attract them. Weaknesses such as our distribution channel will be limited
because we are new to market but we will distribute our products by partnering with Harrods and
sale our products there in order to reach maximum number of customers. Opportunities such as
most of the females around one third of UK are willing to apply perfumes but they can't, due
various reasons such as asthma, allergy, harsh supplements, harmful chemicals etc. so it will be
beneficial for us as we are planning to introduce new scents in market which can be used by
them. Utilising natural ingredients rather than noxious stuff is a great option to attract large
number of customers.
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We have analysed all the strength, weaknesses and opportunities and we are willing to
convert the opportunities in to strengths. We have assessed problems such as perfume
intolerance, asthma, strong fragrance etc. stops people to use perfumes. We have proposed
proposed a plan in which they decided to launch three new products in market which can be
mixed and used separately by buyers (Hecht, 2012).
Process of formulating entrepreneurial idea: Me and my team members formed the
business idea by following a specific process. All the elements of this process are as follows:
 Market analysis: We as the owners of Femme Fatale, first of all conducted market
research and SWOT analysis. With the help of both of them we collected various
information regarding current trends, market conditions and preferences of customers.
Afterwards assessed all the aspects such as strengths, weaknesses, opportunities etc. in
order to formulate strategies for our new business plan (Kalar and Antoncic, 2015).
 Monitoring opportunities: We have analysed that one third of women in UK are dealing
with issues related to asthma, perfume intolerance and allergy which stops them to use
scents. We have planned to introduce new scents which can be used by them by focusing
on women who are dealing with such issues and avoid to apply perfumes with strong
Fragrance (Paris, Wasik and Turner, 2016).
 Formulation of strategies and plans: When the opportunity is being monitored by us
then we formulated strategies and plans for the purpose of enhancing profits and
revenues. We as founders of Femme Fatale proposed various plan for future in which we
are going to set price and target market for our new perfumes. A table is being created for
the purpose of analysing total cost. The table is as followed The financial plan for 1000
units of new scents is as follows:
Particulars Amount (Pounds)
Cost of material such as flowers and other flavours 9000
Cost of salaries to the new employees 8000
Researching activities 1500
Bottles for packaging 2450
Advertisements and promotions 450
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Rent 2500
Miscellaneous expenses 1100
Total cost 25000
Selling price of each unit= Total cost / total units
= 25000/1000
= Cost per bottle of perfume is £25.
Break even analysis:
Particulars Amount
Sales (1000 units) 28000
Less: Variable expenses
Material -9000
Researching activities -1500
Bottles -2450
Advertisements and
promotions -450
Miscellaneous expenses -1100
Contribution 13500
Less: Fixed expenses
Salaries -8000
Rent -2500
Profit 3000
PV ratio: Contribution/ sales*100
= 13500/28000*100
= 48.21%
Contribution per unit: 13500/1000
=13.5
Break even sales: Fixed cost/ PV ratio
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= 10500/48.21%
= 21780
Break even units: Fixed cost/ Contribution per unit
= 10500/13.5
=778
Table also shows that financial feasibility of new business idea is very good because it
can result in enhanced profits of the organisation. The selling price which has been decided by
us is 28 pounds per bottle. We are willing to generate profit of 3 pounds per bottle. In order to
recover all the costs we have to sale at least 778 bottles of perfumes. If we are not able to meet
this requirement then we may face loss in future. To attain profits we are required to sale more
than 778 bottles of perfumes.
 Measuring compatibility: When different strategies are formulated by us then in next
step we are responsible for the measurement of compatibility of our proposed uniqueness.
I have analysed that new business idea will be able to attain long sustainability in market
because we are offering scents with specific features that are not provided by our
competitors such as Lavanila, Juara etc. (Begley and Ellis, 2012).
 Implementing idea: When sustainability and compatibility level of the new business
idea is being analysed then in last step the plan is implemented in order to achieve
business objectives and goals. By considering all the above steps of analysing and
evaluation the idea will be implemented and then feedback is taken during ppt
presentation and audiences were very happy and curious about my perfumes.
All the above described steps are followed by me and my team who are founder of
Femme Fatale in order to formulate idea of new perfumes. It can help us to analyse that our
proposed plan is relevant or not and it can help them to sustain in market or not.
SECTION 3:
Opportunity or Venture Development
For this purpose of opportunity development, we founders of Femme Fatale have
formulated a marketing plan which covers all the required elements. One of the major element of
that plan is value proposition. Our value proposition is in providing luxurious, 100% pure
perfume oils to customers, we are environmental friendly, we use only cold pressed essential
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oils, we give customers the chance to make their own unique scents by combining our perfumes
etc.
Me and my team members have decided that new perfumes should be developed in the
market as border less mobile application so that all them can be used by customers all around the
world (Wynn, Chawla and Pollard, 2013). The proposed target segment of company is women.
New scents will be sold in physical stores and for this purpose we have decided to parter with
Harrods and will sell perfumes in their stores. There are various types of risks that have been
identified by me these are as follows:
 It is increasingly difficult to obtain a regular supply of all the necessary natural
ingredients.
 The raw ingredients in famous brands are vulnerable to political upheaval, changes in
agricultural practices and natural disasters
 Being one of the largest industries in the market , leads to many competitors such as
Jurlique, Raw Spirit, Korres, Lavanila etc.
We as founders of Femme Fatale has formulated various strategies that can help us to
mitigate all the risks. As various brands offer such type of perfumes but they use chemicals and
we are going to use natural fragrances for our new scents. We have planned to reach maximum
numbers of customers by selling perfumes in physical store Harrods which is our partner. It can
help to deal with competition. In order to mitigate the risk of raw material we have planned to be
aware of natural disasters so that we can arrange all the material in advance to reduce its negative
impact. A detailed process is being followed by me and other members of my team to form the
business idea (Luthar, 2015). All the steps of that process are as follows:
Identification and evaluation of opportunity is the first step which is required to be
followed by initial promoters of organisations. For this purpose they identify and evaluate
available opportunities of market and try to grab best of them. It is very important to select the
right one so that it can help to reach the mission and attain all the objectives. They have
evaluated that in market there is a requirement of such type of perfume which can be used by
allergic and asthmatic people.
Me and my group members have formulated a business plan in order to successfully
launch our new perfumes in the market. Objective which is being set by me is to enhance profits
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by 10% in upcoming 2 years. Our vision is to attain sustainability and the budget required by
organisation is around 25000 pounds (Duflo, 2012).
In the stage of determination of required resources I have analysed the required resources
which can help to successfully launch new project in the market. The major requirements of our
business are skilled employees and funds. I have planned to acquire funds form bank loan.
Employees are going to be hired by posting advertisements in newspapers and posting jobs of
web portals.
Managing our company is the last stage of the process of entrepreneurship develop in
which all the activities are managed by us. Under this stage we tried to assess success and failure
of project and monitor business performance (Schaufeli and Maslach, 2017).
All the above described steps are followed by us while developing new entrepreneurship
idea. It has helped us to launch new perfumes in market for the purpose of acquiring larger
market share and profit enhancement.
According to me as a founder, for our company it is very important to formulate all the
strategies in appropriate manner so that all the operations can be conducted in appropriate
manner in future. In order to attain objective related to competitive advantage it is vital for our
company to make sure that all the operational activities are conducted properly (Haufler,
Norbäck and Persson, 2014). We are planning to hire skilled employees so that they can conduct
all the processes including operations, marketing, promotions etc.
SECTION 4:
Conclusion
The process of entrepreneurship development can help individuals to enhance their
knowledge regarding business venture. A new development plan is being proposed which is a
start up plan and it will launch different types of perfumes in the market. Different types of
flowers will be used for the purpose of manufacturing new scents. All these perfumes can be
applied separately or mixed to make a new fragrance. I have identified the problem by analysing
market conditions and behaviours of people in which I assessed that they are ignoring scents due
to various reasons such as strong fragrance, medical issues etc. The solution is being proposed by
the group by focusing to make such perfumes that can be used by asthmatics. There were various
disagreements between group members because all of us providing different ideas and it resulted
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in conflicts among all of us. We have decided that next time we will distribute the
responsibilities so that we can work more effectively and appropriately.
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Online
People suffer from fragrance sensitivity. 2017. [Online]. Available through:
<https://www.netdoctor.co.uk/healthy-living/wellbeing/news/a27811/fragrance-
sensitivity-research/>
Ways to deal with competition. 2019. [Online]. Available through:
<https://www.entrepreneur.com/article/225914>
Perfumes as an asthma trigger. 2016. [Online]. Available through:
<https://allergyarizona.net/perfume-as-an-asthma-trigger/>
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