Business Plan for Organic Beauty Shop in UK

This business plan outlines the strategy for Organic Beauty Shop, an online store offering natural-based hair and skin care products in the UK. The plan includes market analysis, operational plan, strategy for growth and development, projected financial performance, and monitoring and controlling.

New Business

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of business...................................................................................................................1
Description of product.................................................................................................................1
Justification for business idea 1
Objectives....................................................................................................................................1
Market analysis............................................................................................................................1
Operational plan...........................................................................................................................3
Strategy for growth & development............................................................................................3
Projected financial performance..................................................................................................4
Monitoring and controlling..........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Entrepreneurship is concerned with process of having new idea that is creative patten of
using resources to meet targeted audience needs. In the current era, having effective strategy is
important in having effective processing so that attaining objective of establishing business can
become possible. The present report is based on Organic Beauty Shop that offers natural based
hair & skin care products in UK. It will provide detailed business plan for gaining depth
understanding.
MAIN BODY
Overview of business
Organic Beauty Shop (OBS) is operating in the UK market which is offering the
cosmetic products that are possessing effective utilization of natural ingredients. This is capable
of solving the issue regarding higher chemical utilization which is having long term adverse
impact on targeted audience.
Description of product
There are different kinds of the products which involve face cream, lotion, shampoo,
hair & face mask, etc. All these products will have organic ingredients that has positive & long
term impact on the customers. These products are helpful in offering the ability to targeted
audience to obtain goods at low cost with higher quality.
Justification for business idea
In the current era, awareness regarding the organic products benefits & drawbacks of
chemical utilization has inclined which increasing demand for such products. UK natural
cosmetic industry is growing at 7.1% which indicates positive sign for operating in this sector.
This business idea can be successful due to industrial growth and prevailing higher demand.
Objectives
 To increase the profit of organization by 10% at the end of year.
 To reduce cost by 5% within 6 months with maintaining quality.
 To increase marketing efforts by 10% for attracting larger customer customers by the end
of year.
Market analysis
SWOT
Strengths Weaknesses
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There are various strengths which are higher
financial resources, skilled employees and
effective supply chain management
(McKeever, 2018).
The lacking areas involves ineffective
technological compliance & ineffective legal
compliance
Opportunities
The opportunities involve emergence on
digital platform & partnership with strong
firm.
s
Higher level of competition.
PESTLE
Political factors There are various political factors such as political stability, taxes,
government rules, etc. that impact on the functioning of OBS in
negative manner.
Economic factors GDP, disposal income, interest, employment, etc rates plays
important role in deciding the smooth functioning of organization
(PESTLE analysis, 2021). OBS can get positively affected from
these sells goods on lower cots.
Social factors Beliefs, attitude, taste & preferences, etc are found to be favorable for
the organic goods in the market which can positively influence
functioning of organization.
Technological factors Technology up gradation and emergence on digital platform is
required to be focused by firm as affect the efficiency & effectiveness
of organization.
Legal factors Rules & regulations imposed by government and industrial norms
regarding health & safety, emplacement, etc are required to be
adhered by firm for gaining successful operating.
Environmental factors This involves following rules regarding carbon foot print, reducing
pollution, optimum utilization of resources, etc are done by firm.
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Competitors analysis
Organic Beauty Shop Body shop
Price strategy Penetration approach Competitive pricing strategy
Market area Domestic market International market
USP Higher quality and lower cost Wide range of products and higher
brand image.
Operational plan
There are different activities which will be exerted in order to offer the effective quality
based products to end customers. This comprises having proper procurement, manufacturing,
operational quality management action, etc. The functional structure of firm will aid in having
effective management so that attaining quality offering of products can be exerted for
accomplishing objectives.
Strategy for growth & development
STP
It is one of the significant technique that allows to have proper ability to segment, target
and positioning in market with gaining clarity (Thabit and Raewf, 2018). This is as follows:
Segmentation: The segmentation can be done on the basis of demographic, psycho graphics,
behavioral and geographic basis. The current firm will focus on having segmentation on the
basis of behavioral & psycho graphic basis for attracting health conscious people.
Targeting
The target audience will be targeted by firm who are highly aware & concern for their
hair & skin so want to avoid chemical utilization.
Positioning
The positioning will be exerted by focusing on the low cost & high quality so that
greater customers can be attracted & retained.
Marketing mix
Product:
3

There are various products which are offered by firm that involves face cream, wash,
hair shampoo, mask, etc. which all are formulated with use of organic ingredients by avoiding
using chemicals. This is helpful in attaining position to overcome issue regarding negative
impact possessing due to frequent changing surroundings.
Price
There are different types for the pricing strategies which are available for successful
operating through accomplishing predetermined objectives (Barrow, Barrow and Brown,
2018). This comprises penetration, skimming, cost plus, competitive, etc. the firm uses
penetration strategy so that with lower cost higher profitability can be derived.
Place
the particular organization operating in the domestic market and having emergence on
digital platform so that accomplishing the goal of effective operating by attaining & retaining
greater market share.
Promotion
There are distinct strategies are available for marketing the product in turn greater
awareness regarding its products can be offered. This includes print, social media, direct
mailing, etc. so that higher awareness can be created for gaining good brand image in market by
OBS.
Projected financial performance
Expenses Amount Income Amount
Administration expenses 20000 Sales 500000
Employees salary 50000
Marketing and selling expense 60000
Market analysis expenses 85000
Technical device application 50000
Security evaluation expenses 40000
Monitoring performance 50000
Utility bills 45000
Supervisory expense 55000
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Profit 45000
Total expenses 500000 500000
From the above projected financial it can be mentioned that organization will earn
profitability in n effective manner.
Monitoring and controlling
In order to get effective outcomes business will use benchmark & variance analysis so
that identifying lacking areas to apply suitable improvement action can become possible. This
can help in attaining greater ability to offer quality related performance in turn higher
competitiveness can be achieved.
CONCLUSION
From the above presented particular business plan that OBS can derived success in
industry by offering such products. The current study has involved operational plan, market
analysis, financial forecasting for gaining depth understanding.
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REFERENCES
Books and Journals
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
McKeever, M.P., 2018. How to write a business plan. Nolo.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies. 4(4).
Online
PESTLE analysis. 2021. [Online]. Available through: <https://freepestelanalysis.com/pestel-
analysis-of-cosmetics-industry/>
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