This project outlines a business plan for Guinot Paris to expand into the organic beauty product market. It includes a SWOT analysis, PESTLE analysis, marketing mix strategy, competitor analysis, and a financial plan to achieve objectives like increasing sales and market share.
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PLANNING FOR GROWTH
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TABLE OF CONTENTS P4 BUSINESS PLAN FOR GROWTH...........................................................................................3 Overview.....................................................................................................................................3 Objectives....................................................................................................................................3 SWOT Analysis..........................................................................................................................3 Pestle analysis.............................................................................................................................4 Marketing Mix............................................................................................................................4 Competitors analysis...................................................................................................................4 Financial Plan..............................................................................................................................5 REFERENCES................................................................................................................................6
P4 BUSINESS PLAN FOR GROWTH Overview In the present era cosmetic industry is growing day by day, so for achieving competitive advantage Guinot is planning to reflect its presence in organic beauty products. The wide range of beauty care has been provided by Guinot Paris as it covers three specific categories such as face, sun and beauty. It has expanded its retail operation in very perfect manner as today it is considered as one of leading skin care collection which is usually available at every spa. By considering trend of organic products and to satisfy the consumers Guinot paris is planning to introduce organic beauty products (Business plan,2018). As it is referred as small sized retail business units, for growth perspective, profitability and sales maximisation has direct concern with retail unit which is planning to introduce organic beauty products. For accomplishing this objective, business entity can follow detailed plan which is mentioned below: Objectives To increase sales and profit margin by 25%. To gain huge market share by targetting small segment. SWOT Analysis Strength Wide range of beauty care Renowned in cosmetic industry Huge expansion of retail operations Superior technology Capability to charge higher prices Opportunities Greaterinnovationsforproducing unique products and services Markets which are fragmented as they have absence of cost advantages of big companies. Weakness Inefficient work environment Businessriskisincreasedbyweak management Sales team is weak Threat hugecompetitionwhichwillimpact profit margin
Pestle analysis Political factors Strict guidelines EuropeanCosmetics regulations 1223/2009 Economic factors Recessionresistant industry Unemployment rate Social factors Brand loyalty Technological factors 24/7 access Legal factor Twomajoracts:The FederalFood,Drug and cosmetic Act and The fair packaging and labelling act Environment factors No testing on animals Respectfulpackaging and green-washing Marketing Mix 7 P'sElaboration ProductWide range of organic products PricePenetration pricing strategy PlacePreparing attractive feed about organic products on website and word of mouth by existing customers PromotionAdvertisement in newspaper, social networking websites PeopleTalented personnel ProcessStandardised process Physical evidenceWebsite will be prepared in very attractive concept with feedback column Competitors analysis Guinot competitorsRevenueEmployeesProducts Guinot75.63 M (Euro)348Production of skin and
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beauty care products and Hydradermie Johnson and Johnson (skin care) 4.46 B5550Baby care products L'Oreal S.A$29 B78600Make-up, haircare, perfumes Financial Plan For identifying financial viability of business plan which is proposed, there is preparation of profitability statement. It will clearly reflect the profit margin which will be generated by organisation. Internal capital:30000 pounds Bank loan:13000 pounds Profit and loss statement for proposed business plan ParticularsYear 1Year 2 Total sales100000130000 Cost of goods sold6000081500 Gross Profit4000048500 Less: Operating cost Salaries and wages60007700 Promotional expenditure10001750 Miscellaneous expenses15002000 Maintenance cost20003250 Interest expense25002400 Depreciation5001000 Total operating cost1350018100 Operating income2650030400 Less: Tax @ 15%39754560