Developing a New Organic Lipstick cum Lip Balm

This presentation discusses the development of a new organic lipstick cum lip balm, including the motivation behind the business idea, the process of generating the idea, feasibility studies conducted, details of the product, potential market opportunities, and the vision for the business. It also covers marketing strategies and the attractiveness of the industry.

Enterprise and Entrepreneurship

Table of Contents
INTRODUCTION
Motivation for choice of business
The process you went through to generate the business idea
Feasibility studies conducted
Details of the product or service to be offered
Potential market opportunities
Attractiveness of the industry
Vision for your business
CONCLUSION
REFERENCES

Introduction
The following presentation includes a business idea that includes development of a new product
i.e. organic lip balm plus lipstick. This is a product that will be introduced in market for
women and girls. This presentation will tell about the story behind choosing the idea of
planning new lipstick cum lip balm. This consists of Porter's five forces model and
marketing mix of the product. Also, there is discussion on the potential market opportunities
and social trends of the product within customers. The cosmetic industry is growing each
and every day at high pace (Kuratko, 2016). It is beneficial for the companies to launch
new cosmetic products in market to earn profits and money.

Motivation for choice of business
The main reason for choosing the lipstick cum
lip balm as a new business idea as there are
chances of making money and profits
easily. This business idea is chosen because
the lipstick industry is able to make profits
in less time. This business is started at
small scale and there is in depth research
conducted before starting the business. To
start the lipstick line company business,
there is need to be deliberate, dedicated
and determined towards developing and
building business for setting goals.

The process you went through to generate the business idea
Some of the marketing strategies used while launching lipstick are mentioned below -
New organic lipstick is launched by sending introductory emails, messages and letters with the
brochure. This can be given to people who are doing business in cosmetic an beauty retailer
industry (Etzkowitz, and Zhou, 2017). This is distributed in different salons and spas so
that people are attracted towards new organic lipstick.
 This lipstick is advertised on blogs, forums and internet. Social media can also be used
for advertising the new lipstick.
 Personal website is made for making people aware about new organic lipstick that can
work as a lip balm too.

Feasibility studies conducted
The feasibility of launching new organic lipstick cum lip balm within market can
be analysed by knowing 7 P's of marketing mix. In context of the new lipstick,
the different elements of marketing are described below -
Product - The new organic lipstick is able to attract a lot of potential customers.
The new lipstick is offered in different shades and flavours. They have organic
flavours and natural oils are used in making of these lipsticks. They can also work
as a lip balm and colours involved in these lipsticks are also good. This product
will be liked by different women around the world.

Cont....
Price – Pricing is defined as the process which defines that how much money is taken from
buyers and customers for the new organic lipstick. The pricing strategy used for selling he
new lipstick is penetration strategy. This means this product is offered at low price for
securing high volumes. The price for lipstick is set for penetrating market and capturing the
market share. This lipstick is using penetration strategy for selling the product. This lipstick
is sold at the price range between £ 10 – £ 40.

Cont....
Place – Place is defined as the location where
the product is sold. The new organic
lipstick is sold at various branded salons,
beauty professionals, etc. The medium used
is online. Also, this lipstick is sold using
door to door strategy and in this lipstick is
sold to different beauty professionals. Small
outlets of this lipstick are kept at
supermarkets, stores, hypermarkets.

Cont...
Promotion – The promotional strategy used for the new organic lipstick is aggressive
marketing plan. This means that the new organic lipstick is promoted at each and every
corner. There are few advertisement campaigns which are prepared for advertising the new
lipstick by using radio, television, fashion magazines, newspapers, etc (Burns, and
Dewhurst, eds., 2016). Also, videos related to the new organic lipstick is posted on You
tube for attracting people towards buying the new lipstick. There is also usage of branded
salons for making people aware of the new organic lipstick.

Cont...
Physical evidence – The new organic lipstick
has iconic and classic packaging. The outer
package are plain white box that is made of
paper. This is a recyclable packaging. The
inside packaging of lipstick that contains
the actual product is made up of plastic.
.

Cont...
Process - The lipstick is developed by following the process in which natural ingredient is
compressed for extracting the colourful and flavoured lipstick. These are sold to customers
at affordable price. Wax is developed by heating the natural extracts of plants.
People - The staff an employees who are hired for managing the process of developing lipstick
are talented and skilled. They include that all people are managing their responsibilities
effectively while making new colourful organic lipstick

Details of the product or service to be offered
The new organic lipstick offers long lasting wear to
females. This is coupled with safe and natural
organic ingredients. This lipstick is also used as
lip balm as it contains all the natural
ingredients. This new organic lipstick is made
with Jojoba oil, Shea butter and argon oil. The
different shades offered by this lipstick are
apple red, soft peachy nudes, bright corals, pink
pallets, etc.

Budget
Production budget for one unit
Particulars Amount (In £)
Raw material cost: 20
Wax 6
Oil 10
Pigment 4
Manufacturing process cost: 5
Melting 2
Mixing 3
Labor cost 5
Labeling and packaging cost 3
Total cost for one unit 33

Potential market opportunities
Porter's five forces model basically defines five competitive forces of an industry which helps to
identify strengths and weaknesses of business. Porters five forces model is named from
Michael E. Porter who was a professor in Harvard Business School.
Five factors of porter five force model in context of organic lipstick is as followed:
Competition in Industry- Every industry is facing a lot of rivalry in market place. There are
only some organisations which do not have to face competition who either have cost
leadership or differentiated leadership. Organic lipstick have to face a medium level of
threat from its competitors. This might happen because being organic lipstick have a
differentiated feature from that of its competitors. This allow them to hold a differentiated
lead in marketplace. However, company have a number of competition when talking about
its costing.

Cont...
Bargaining power of suppliers- This refers to
powers with our creditors or those who
provide us with raw materials in case of
price changes. Bargaining power of supplier
in reference with lipstick market is low.
There are a number of cosmetic companies.
Each company deals with a number of
supplier. This gives companies an advantage
to influence prices of raw materials required
even when suppliers are against it.

Attractiveness of the industry
While starting the lipstick production, it is concluded that this line of business includes
preparation, blending, compounding and packaging of both therapeutic as well as cosmetic
lip products. There are different type of lipstick products such as lip gloss, lip liner, lip balm,
matte lipsticks, etc. Lipsticks are known as the basic type of make up that is applied by
women. The sheer lipsticks consists of few oils, less wax and pigment. The lipstick
production line is a business which can be successful as lipsticks and lip balms are used by
women all over the world. There are no barriers like cultural or social for usage of lipsticks.

Vision for your business
Cosmetic industry has a great future. In context of
the lipstick business, it is concluded that starting
a lipstick business requires efforts and right time
for launch in order to have success in market.
While starting nay business, it is ensured that
there is very less struggle and sales are generated
in less time (Lipset, 2018). Lipstick is used in all
over the world by women and the producing
companies are earning lot of money every day.
This is a great business that can be started as it
has no impact form the economic downturn.

Conclusion
From the above discussion, it is concluded that when new products or services are introduced
within market, there is need for conducting market research. This is helpful in managing
whether the product will be able to make profits or money. It is essential for the company to
analyse all the trends and choices of customers before launching new product within market.
The different type of analysis that a company can do for knowing the demand of product
within market are Porter's Five force analysis and 7P's of marketing mix. It is good to
evaluate the attractiveness of industry and vision of the business.

REFERENCES
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage
Learning.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship.
Macmillan International Higher Education.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–
government innovation and entrepreneurship. Routledge.
Lipset, S.M., 2018. Values, education, and entrepreneurship. In Promise of
development (pp. 39-75). Routledge.

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