Business Plan for Organic Cosmetic Product Company - Desklib

This report discusses the business plan for Pai company that deals in organic cosmetic product with the headquarter in London. It covers customer analysis, competitors, skills required, profit and loss and cash flow, funding, CRM, and vision. The report also sheds light on the use of IPR for protecting organization product and service from others.

Enterprise and Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Proposed future business.............................................................................................................3
Customer analysis........................................................................................................................4
Competitors..................................................................................................................................4
Skills required..............................................................................................................................5
Profit and loss and cash flow.......................................................................................................5
Estee Lauder Financial Statements..............................................................................................5
PAI Skin care Profit and loss.......................................................................................................8
Cash flow PAI..............................................................................................................................9
Funding......................................................................................................................................11
CRM..........................................................................................................................................11
Vision.........................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
The present report will be discussing about business plan for Pai company that deals in
organic cosmetic product with the headquarter in London. It will also depict light on the
customer analysis and use of IPR for protecting organization product and service from others.
MAIN BODY
Proposed future business
The Bamboo company will be selling organic wood product to the customer such as tooth brush
and comb. All these products will be anti-bacterial and it help the customer in maintain their
blood circulation. Moreover, the products will be available at lower price as compare to other
alternative available as it will be making use of natural resources. The innovation is related to
making use of wooden material for manufacturing cosmetic product for male and female. This is
new idea in the market as most of the company are just aware about making organic cream and
other beauty product. It is new in the market as it is renewable, low carbon and it is substitute of
plastic and it can be excellent alternative to single use goods (Indradew, 2021). Although it is
natural defences against bacteria and fungus unlike other wood and most importantly
environmental friendly.
Moreover, in order to protect the product from infringement the company will be making use of
copyright tool will be used in order to protect art work as well as trademark will be used for
protecting product name and logos (IPR Tools & Solutions, 2022). These IPR tools has been
used as source of security for the property which are available for public and can be replace by
any company. Although patent has been used by the organization for limited period so that it can
state in public that they do original production.
Furthermore, IPR protects company from illegal infringement and it protect their product and
services as well as discourage competition and create new revenue for them. Although the
benefit of IPR ownership is that it can easily help in increasing the IP assets when in need of
raising fund as well as owner can sell IP license and can be used for taking loan (Adwiyah and
et.al., 2021). It also allows to enhance export opportunities for business such as company can
use brand design to market goods and services internationally as well as allow them to seek

franchising agreements with foreign organization. Along with this, with help of IPR helps in
building image for the business by differentiate products and services from the competitors in the
market and promote them to customer.
Customer analysis
The company will B2C which means business to consumer. It will be focusing on selling the
products to customer in order to run their organization and to earn profit. Moreover, the end user
will be customer age group will be young adults and teenagers. In addition to this, the
organization has targeted this customer as it is more aware about the natural products and more
interested in them. The USP selling of the product is organic bamboo are eco-friendly and it
helps in attracting customer by differentiating them with company. In addition to this, the
product will be fulfilling the needs of organic product in the market area and it will be providing
the cosmetic product in low price as well as fulfilling the need of health and safety of customer.
Furthermore, the business position of the company is good in the market area as despite of high
competition it is able to run the business in profitable manner (Hop and et.al., 2018). The target
market of the company is London currently but it wants to expand their organization in various
other part of the country. The customer of PAI has been segmented their customer on basis on
income, age and demographic. The organization will be targeting audience with high and middle
level income group and young adults as well as teenagers will be targeted in order to increase
their range of customer. The organization has chosen this customer range as it these are more
interested in cosmetic products as compare to other. In addition to this, it will be making use of
social media marketing like Instagram and Facebook in order to share their details regarding
product and services.
Competitors
Porter five force
Competitive Rivalry:
There is high competition in the industry and there are brands like ESPA and local companies.
Along with this, there are various innovative cosmetic products so supply is greater than the
demand (Han and Kang, 2020). So PIA has to come up with goods ideas in order to sustain.
Supplier power – Low:

There are large number of supplier in the market and there is low differentiation of inputs.
Thus, bargaining power of suppliers in this industry is low.
Buyer power- high:
It is difficult for company to maintain profitability of firm due to high competition and buyers
have high power.
Threat of substitute – low:
In skin care industry the company there are two substitute like home remedies and natural
product. The switching cost and the buyer propensity to substitute both are low.
Threat of new entrants:
There is high competition in market and due to that organization and it lead to drop in
profitability of the company.
Skills required
For running the business professional skill has been required such as managing human like
communication, problem solving abilities are needed (Fauzi, 2021). Moreover, I will be needing
financial and marketing skill in order to deal with the challenges of business in effective manner.
In addition to this, for meeting the skill gap the company has to conduct interview a select the
best has employees according to job opportunity. Moreover, the organization need to provide
their company with training and development programme in order to deal with challenge gap.
Profit and loss and cash flow
Estee Lauder Financial Statements

Figure 1: Profit and loss
Source: Estee lauder cash ., 2022
Cash Flow of Estee Launder

Figure 2 Cash flow
Source: Estee lauder cash flow., 2022

PAI Skin care Profit and loss
Figure 3 Profit and loss PAI

Source: PAI Skin care finance., 2018
Cash flow PAI

Figure 4 Cash flow PAI
Source: PAI Skin care finance., 2018
Funding
The company will be gathering money through financial institution and from angle investor in
order to invest in the company. Along with this, it can also make use of crowd funding in order
to gather finance (Fichter and Tiemann, 2020).
CRM
The company will be making use of CRM management for managing and identify customer
taste and preference and purchasing cycle. This tool helps the organization in keeping their
consumer satisfy as it collects the data related to their needs.
Vision
To become the best leader in cosmetic industry of world.

CONCLUSION
From the above report it has been concluded that PAI has good market position but it has
make use of innovative idea in order to expand their business in competitive market. Along with
this, the report has summarized about customer and market analysis of the company as well as
also shed light on the various sources of funding used by firm.

REFERENCES
Books and journals
Fichter, K. and Tiemann, I., 2020. Impacts of promoting sustainable entrepreneurship in generic
business plan competitions. Journal of Cleaner Production. 267. p.122076.
Fauzi, R. U. A., 2021. The influence of business plan competition and loan provision on
nurturing the spirit of entrepreneurship among students. Advances in Economics,
Business and Management Research. 161. pp.188-192.
Han, S. and Kang, E., 2020. The marketing strategy to stimulate customer's interest in art-gallery
business plan. The Journal of Distribution Science. 18(8). pp.47-54.
Hopp, C. and et.al., 2018. Revisiting the influence of institutional forces on the written business
plan: a replication study. Management Review Quarterly. 68(4). pp.361-398.
Kusuma, A., Syah, T. Y. and Indradewa, R., 2021. Implementation Of Financial Strategy
Business Plan Arena Corner. American International Journal of Business
Management, 4(07).
Adwiyah, R. and et.al., 2021. Analysis of business plan using business model canvas (BMC) on
modern fish market. MIMBAR: Jurnal Sosial dan Pembangunan. 37(1). pp.232-245.
Online references
Estee lauder cash ., 2022. [Online]. Available Through <
https://www.macrotrends.net/stocks/charts/EL/estee-lauder/cash-flow-statement>.
IPR Tools & Solutions, 2022. [Online]. Available through < https://www.patracode.com/best-
intellectual-propety-ipr-tools-and-solutions-india/>
PAI Skin care finance., 2018. [Online]. Available through <
https://pomanda.com/company/05887401/pai-skincare-limited>
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