Entrepreneurship in Cosmetics Industry

This report discusses the process of starting a new business in the cosmetics industry, including the motivation for choosing this sector, the process of generating a business idea, feasibility studies conducted, details of the products/services to be offered, potential market opportunities, industry attractiveness, and the vision for the business.

Enterprise and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Motivation for choice of business...............................................................................................1
The process to generate the business idea...................................................................................1
Feasibility studies conducted......................................................................................................2
Details of the product/service to be offered................................................................................3
Potential market opportunities....................................................................................................3
Attractiveness of the industry......................................................................................................4
Vision for the business................................................................................................................5
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6

INTRODUCTION
Entrepreneurship is defined as the generation of a product or service in the form of
enterprise having the skills to maintain business with professional management (WHAT IS
ENTREPRENEURSHIP? ENTREPRENEUR DEFINITION AND MEANING, 2020). The
following report is discussed about the creation of a new business proposition with the details
like why the particular business has been chosen, process of generating business idea,
feasibilities studies, what products and services are to be offered, studying about the various
market opportunities, industry attractiveness and vision of the business with final conclusion.
MAIN BODY
Motivation for choice of business
Chosen business is under Cosmetics Industry, Named as “Elegant Touch” with tag line
“Shine like a pearl” which means graced glow on face that have a natural shine like pearl.
Reason behind choosing this sector is that now a days people are getting conscious about their
skin, they are always searching for minimised chemical products and more of natural ingredients
in it. So this business aims at this concept only for both men and women. Moreover, it is used by
almost everyone at all ranges from lower to higher, it is having personal customer experience,
rising of influencers on social media, easy in showcasing the results, niche marketing and the
most important that this concept is demanded by the people (Ahl and Marlow, 2019).
The process to generate the business idea Brainstorming: This technique is applied in this business by firstly, thinking about the
business which is most admired, used and relied on daily life, secondly, giving a thought
on problems that are most faced in a regularly and by using these information, many
business ideas are generated and among all of them, cosmetics is found to be appropriate. Focus groups: This technique is applied as by setting up a goal, finding the group of
customers, created report on their views, analysing them and starting implementation.
This is type of customer survey. Library: This technique includes research about companies in cosmetic industry, their
customers, competitors and collaborators by referring the books of great authors who
writes the business concept and market research report.
1

 Internet Research: This technique helps in research to the core, a deep insight and it is
also known as the secondary research method. Tons of information are available about
market, business sectors, ideas and many more (Bridge, 2017).
 Mind Maps: This technique used here as:
Feasibility studies conducted
Strength of Business Idea Moderate potential
Industry-Related Issues High potential
Target Market and Customer-Related Issues Low potential
Founder- (or Founders-) Related Issues Moderate potential
Financial Issues Moderate potential
Overall Moderate potential (Burnett and Danson,
2017)
2
Business Idea

Details of the product/service to be offered
Product and service ranges for both men and women are as follows: Skin Creams: Beauty, skin lightning, collagen, skin cleansing, barrier, BB, dry skin,
protective, oily skin and skin fresheners. Hair Oil: Herbal, Ayurvedic, hair growth, amla, hair fall control, coconut, onion,
Bhringraj, anti dandruff, jasmine, almond, baby and henna. Hair Removal Wax: Gel wax, chocolate, aloevera, Brazilian and water soluble. Lip Cosmetics: Mate lipstick, liquid, lip gloss, lip shine, glossy, moisturising, plumber,
customized and glitter lip (Hatt, 2018). Eye Cosmetics: Eye shadow, eye kajal, eyeliner, eye cream, eyebrow pencils, eye gel and
eyeshadow. Natural Cosmetics: Multani mitti, neem face wash, natural hair colours, aritha powder,
walnut scrub, cucumber gel, mud masks, papaya skin gel and natural lotion. Body powder: Talcum, face, compact, rose petal and foot. Accessories: Brush set, box, pouches, mirror, pencil and cotton bud. Nail set: Nail polish, artificial, polish remover, cream, nail cutter and art kit. Shampoo: Herbal, anti dandruff, keratin, hair fall, amla shikakai, biotique, lemon and
dry.
 Hair Accessories: Scrunchies, gajra, children hair accessories, stick, hair bows, wedding
hair, bun, bumpit, crystal and beaded hair.
Potential market opportunities
7P's of Marketing Mix: It is mainly analysed to see where the firm is exactly standing in the
market in terms of competition. They are as follows: Product: It refers to the item that is being actually sold by an organization. Product
range/varieties matters. Price: It is defined as the product worth or value that customer has to pay for a particular
item. It should be affordable by middle class as well as rich society (Lyne, Ngin and
Santoyo-Rio, 2018). Place: It refers to the location where company sells it's products. It must be reachable to
all the sectors of the society.
3

 Promotion: It describes the measures that are undertaken by the company to create
awareness of their product in the market. Most effective is television and digital
marketing. People: It refers to the people involved in a particular business. Skilled, effective and
efficient workers are important for the business. Process: It refers to the steps of operation of a business. Functions are combined all
together so that coordination is maintained in an organization.
 Physical Evidence: It refers to the physical appearance of the place and products where
they are sold. It must be classy, attractive and environment friendly.
PEST Analysis: It is referred to the scanning of external environment for a business to stand in
a particular country. It mainly consists of political, economic, social and technological factors
that can affects an industry in building up of the firm (Maas and Jones, 2017). Political Factors: This factor aims at the guidelines of an industry. There are strict
guidelines for cosmetics industry so this can be a threat for the firm. Economical Factors: This factor aims at recession. This is a recession resistant industry
so this can be an opportunity for the firm. Social Factors: This factor aims at customer loyalty. In this industry there is a brand
loyalty so this can be an opportunity for the firm.
 Technological Factors: This factor aims at the access the site digitally. This industry is
having 24-hour access so this can be an opportunity for the firm.
Attractiveness of the industry
Porter's five forces analysis: Porter's five forces is an inspectional tool which applies forces to
regulate the power of competition in a particular industry and it's sales or revenue level. This
model consist of five forces that affects an industry in context of threat of entrants, bargaining
power of buyers, bargaining power of suppliers, threat of substitutes and competition rivalry
(Wry and York, 2017). Threat of entrants: It refers to the capability of new firms to enter into specific industry.
Cosmetic industry has high threat of entrants because entry is easy. Bargaining power of buyers: It is described as the high demand by the buyers to an
organization to provide them good quality products and services in lower prices.
4

Cosmetic industry has high bargaining power of buyers because same products are
offered by other brands also with similar prices. Bargaining power of suppliers: It is defined as the pressure that suppliers can impose on
an organization by increment of prices, decreasing the quality or lacking in the
availability of their raw materials. Cosmetic industry has low bargaining power of
suppliers. Threat of substitutes: These are the products which are used in placed of one another.
Cosmetic industry has low threat of substitutes because of USP (Yasin and Hafeez,
2018).
 Competitive Rivalry: It is the measurement of competition level among existing or new
companies. Cosmetic industry has high competitive rivalry because other brands also
have attractive promotional activities with offers and discounts.
Vision for the business
Vision for the company is to generate better sales and revenue. Brand image must be
more reputed. Expansion must be there with franchise of a firm. Moreover, taking this firm
internationally so that it could have wide reach across the world. Involvement in social activities
and events so that it can gain brand and customer loyalty as well.
CONCLUSION
It is concluded that starting a new business always requiring a plan, idea, motivation,
feasibilities, product range, market growth, industry and vision. Without studying all these
factors, it is next to impossible to initiate a new organization. To analyse, marketing mix, porter's
five forces and PEST are also evaluated for the firm, to better understand the concept and
framework of the business.
5

References:
Books and Journals:
Ahl, H. and Marlow, S., 2019. Exploring the false promise of entrepreneurship through a
postfeminist critique of the enterprise policy discourse in Sweden and the UK. Human
Relations, p.0018726719848480.
Bridge, S., 2017. Is “entrepreneurship” the problem in entrepreneurship education?. Education+
Training.
Burnett, K.A. and Danson, M., 2017. Enterprise and entrepreneurship on islands and remote
rural environments. The International Journal of Entrepreneurship and
Innovation. 18(1). pp.25-35.
Hatt, L., 2018. Threshold concepts in entrepreneurship–the entrepreneurs’
perspective. Education+ Training.
Lyne, I., Ngin, C. and Santoyo-Rio, E., 2018. Understanding social enterprise, social
entrepreneurship and the social economy in rural Cambodia. Journal of Enterprising
Communities: People and Places in the Global Economy.
Maas, G. and Jones, P. eds., 2017. Entrepreneurship centres: global perspectives on their
contributions to higher education institutions. Springer.
Wry, T. and York, J.G., 2017. An identity-based approach to social enterprise. Academy of
Management Review. 42(3). pp.437-460.
Yasin, N. and Hafeez, K., 2018. Enterprise simulation gaming: effective practices for assessing
student learning with SimVenture Classic and VentureBlocks. In Experiential learning
for entrepreneurship (pp. 51-69). Palgrave Macmillan, Cham.
Online:
WHAT IS ENTREPRENEURSHIP? ENTREPRENEUR DEFINITION AND MEANING. 2020.
Available through <https://www.oberlo.in/blog/what-is-entrepreneurship>./
6