Detailed Business Plan: Aura's Expansion into the US Argan Oil Market

This report presents a comprehensive business plan for Aura, a company specializing in Argan oil, aiming to expand its operations into the US market. The executive summary provides an overview of the business, emphasizing the production and sale of Argan oil, derived from the kernels of the Argan tree, known for its hydrating and repairing properties. The report includes a detailed company description, highlighting Aura's established business in Morocco and its plans for exporting to the US. A thorough market analysis of the US beauty industry is provided, emphasizing the growing demand for Argan oil and its high-performance ingredients. The organization and management structure of Aura is defined, including key personnel and their roles. The report also covers the product line, marketing and sales strategies, funding requests, and financial projections. Aura plans to leverage online platforms, mobile apps, and AI-powered tools to engage customers. The financial projections outline the required expenses, assets, and funding needed for the US expansion. The report concludes that Aura is well-positioned to succeed in the US market, supported by favorable market conditions and strategic planning.

Introduction to business

Introduction to business 1
Executive summary
Business is all about the involvement of an organization in the commercial, industrial
or professional activities. The business makes use of the efforts and activities of the
individuals to manufacture and sell goods and services for the sake of profit. The businesses
necessitate some form of investment and sufficient customers to whom products can be sold
on a regular basis so that profit can be generated. This report includes the business plan of
Aura which is specialized in selling Argan oil. The company is already having established
business in Morrocco and now has planned to expand in the US. This report comprises the
company description and market analysis of the US market before launching a business. The
organization and management structure of the company has been also defined in the report.
Further, the report also includes the product line, marketing, and sales, funding request along
with the financial projections.
In the end, it can be concluded that Aura can conduct its operations in the US assisted
by the market conditions along with favorable conditions.

Introduction to business 2
Contents
Executive summary...............................................................................................................................1
Company description.............................................................................................................................3
Market analysis......................................................................................................................................3
Organization and Management..............................................................................................................5
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Service or product line...........................................................................................................................6
Marketing and sales...............................................................................................................................6
Funding request.....................................................................................................................................7
Financial projections.............................................................................................................................8
References...........................................................................................................................................11

Introduction to business 3
Company description
Aura is a beauty business and has attained popularity in producing Argan oil. The
Argan oil is plant oil produced from kernels of the Argan tree. The Argan oil assists to
hydrate and soften hair, face, body, and nails. Argan oil is best known for its ability to repair
damaged hair. The company aims to make Argan oil enabled with powerful antioxidant, UV-
Protector, and Free-radical neutralizer. When it comes to Argan oil, Morroco is famous for
producing Argan oil. So Aura has attained popularity due to the culinary staple in Morocco.
Aura sells Argan oil in the different packaging’s. The oil is filled in the glass bottles as it has
the capability of preserving for a long time. Aura provides the purest oil along with the
several benefits. There is a high concentration of Argan in the products.
Aura is already having good business in Morocco and now has decided to expand its
operations in the US. Aura will export oil from Morocco to the US. Aura will produce oil in
Morocco and export to the US. Aura can rapidly expand its potential market through
exporting. Aura will not have needed to depend on the local market. Exporting will assist
Aura to expose to the new ideas, marketing techniques, management practices and methods
of completing which cannot be experienced by staying at the home country. All these
considerations will help the company to compete in the domestic market as well (Feng,
Morgan & Rego, 2017). By expanding its operation to US Aura can become more efficient
and enhance productivity.
Aura is an established brand so will not compromise on the US when it comes to
prices. Argan oil will be launched at premium pricing. The customers from the middle and
higher-income segment will be in the condition of affording the product. Aura can have better
growth prospects in the US market and online exporting is a great way to start the export
journey.
Market analysis
The beauty business in the US is booming and the concerned companies are
generating a lot of buzzes right now. The beauty industry is dominated by a number of
multinational companies. The state of California has the highest concentration of beauty
establishments in the US. The supply of Argan oil is limited in the US; therefore, Aura can
enjoy the selling products in the market of US (Farber & Valletta, 2015).

Introduction to business 4
The beauty market caters to the glamorous and to those who are in the spotlight. The
cosmetic market is built on the products which assist in looking best. The beauty products are
dedicated to looking good in the way wanted by the customers. Add on the demand for the
Argan oil is increasing at an emerging stage and is gaining importance on the account of the
Argan oil’s high-performance ingredients comprising vitamins and nutrients, specifically
lupeol, antioxidant tocopherols, omega 3 and omega 6 fatty acids, triterpenoids,
butyrospermol, and beta amyrine.
Argan oil is made up of vitamins and nutrients which have increased the vitamin E
content. It assists in hastening cell growth and firming the antiseptic and anti-inflammatory
features. It has been observed that both favorable environmental and technological trends
have contributed suggestively to the complete demand for beauty products (Stokes, et al.
2018).
The technological advancements in the US will contribute to the enhancement of
chemical and microbiological qualities of the oil. The increasing demand for beauty products
will assist Aura to raise its production levels to meet the demand-supply gap. Such a gap is
anticipated to increase over the forecast period and thus nurturing the requirement for serious
initiatives taken by the government to drive global production levels (Rueda, et al. 2017).

Introduction to business 5
Organization and Management
Aura is having well-formed organization and management structure. The structure
includes vice president and director. Mr. Ann Jacob is the vice president of the company and
Ms. Simon is the director. The director includes manager and dedicated operations. The
manager undertakes dedicated manager, manager, and intraday performance analyst. The
dedicated operations of Aura are made up of a dedicated team leader and dedicated quality
Vice
President,
Director
Manager Dedicated
operations
Dedicated
team leader
Dedicated
CSR’s
Dedicated
quality
analystDedicated
Manager
Manager
Intraday
Performance
analyst

Introduction to business 6
analyst. The dedicated team leaders are accompanied by CSR which is corporate social
responsibility (Ursoniu, et al. 2018). The team members of the company made up of the
organization and management structure of Aura. Day to day activities is conducted by such
staff along with the huge responsibilities (Silva & Cortez, 2016).
Service or product line
Aura is specialized in selling Argan oil produced from Morocco. The company offers
oil in the glass bottles differing in the sizes. This oil has been a culinary essential in Morocco
for centuries because of the benefits. The plant oil is derived from the kernels of the fruit of
the Argan tree. Argan oil now is used for the cosmetic and medicinal applications other than
culinary. There are several benefits of Argan oil as it contains essential nutrients such as fatty
acids along with the variety of phenolic compounds. The fat contained by the Argan oil
comes from linoleic and oleic acid. Add on, the Argan oil has antioxidant and anti-
inflammatory capacities (Bakour, et al. 2018). The oil is rich in vitamin E and assists as a
potent antioxidant to lessen the damaging effects of free radicals. Other than the hair, Argan
oil can be applied to direct skin as it has the property of reducing inflammation caused by the
injuries or infections. The results of Argan oil are reassuring and it also boosts to the heart
health. Argan oil can be used to reduce signs of skin aging. The usage of oil can slow the
aging process by plummeting inflammation and oxidative stress (Manca, et al. 2016).
The usage of the Argan oil is nourishing and energizing for the scalp. It has role in
shine, softness and silky effect in the hair. It restores to the lost property and improves the
damaged hair. The Argan oil can be applied to the whole length of the damp hair and rest it
for almost 30 minutes before washing with shampoo. Applying oil on the scalp with the light
massage helps in ignoring dandruff. It also prevents the skin from drying. Unlike other oils,
Argan oil makes a difference as it treats hair from the inside of just remaining on the surface.
Marketing and sales
Aura has been an innovator in creating and enlightening a robust community of the
customers online and offline. The company coordinates its approach on one channel to
initiate results in another. The sales strategy of Aura is focused on mixing online and in-store
experiences along with promoting brand engagement through mobile, social and web
platforms (Al-Jourdi, Popescu Popiniuc & Lupuleasa, 2018).

Introduction to business 7
Aura makes use of shopper data to assimilate retail and mobile experience. The
company has revealed through the market research that the customers generally use personal
smartphones while shopping at the retailer’s physical stores. These shoppers generally found
to search for outside recommendations; product evaluations or better prices on the products
were deliberated in-store (Sour, et al. 2015). Aura has even developed its own mobile app in
order to focus on offering customers with the mobile experience which is provided to their
requirements. The app is formed to contend with the knowledge of a personal shopping
assistant. It helps the company in getting reviews, product recommendations, feedback, and
pricing information in a moderate format so that customers can easily acquire the products.
Add on the app also enabled with the AI (Artificial Intelligence) feature known as
Virtual Artist. It makes use of facial recognition technology to enable customers to virtually
try to make up products. The app further is used to acquire the products online or offers the
availability of the products in the stores. On the other hand, as a part of the sales strategy of
Aura, the mobile app is used to offer customer’s tool required customers to feel confident in
making a purchase (Menni, et al. 2019). It does not require speaking with the sales
representative or researching external sources.
Funding request
Aura will require funding in order to expand its business in the US. The company will
make use of exporting in order to expand its business. In Exporting, the company will not
necessitate to set up store but some immediate function will require setting up. Aura can seek
funds from the banks as the government supports the exports. So the company can obtain
funds from the banks along with the shareholders and investors. Such people will have an
interest in the operations of the company. Such people will be informed of the important
activities of the company taking place in the US (Gamero-Sandemetrio, Gómez-Pastor,
Aranda, & Matallana, 2019).

Introduction to business 8
Financial projections
Requirements
Expenses
Legal
$
1,800.00
Insurance
$
1,000.00
Utilities
$
250.00
Rent
$
1,800.00
Accounting and book
keeping fees
$
2,000.00
Expensed equipment
$
2,000.00
Advertising
$
3,500.00
Other
$
7,000.00
Total expenses
$
19,350.00
Assets
Cash required
$
38,000.00
Other currnet assets
$
18,000.00
Long-term assets
$
12,000.00
Total assets
$
68,000.00
Total requirements $

Introduction to business 9
87,350.00
Funding
Expenses to fund
$
21,200.00
Assets to fund
$
63,500.00
Total funding required
$
84,700.00
Assets
Non-cash assets
₹
22,000.00
Cash requiremnts
₹
38,000.00
Additional cash raised
₹
-
Cash balance on starting date
₹
35,000.00
Total assets
₹
95,000.00
Liabilities and capital
Liabilities
Current borrowing
$
8,000.00
Long term liabilities
$
11,000.00
Accouts payable
$
3,000.00
Other current liabilities
$
9,000.00
Total liabilities
$
31,000.00
Capital

Introduction to business 10
Planned investment
Mr.John
₹
12,000.00
Mr.Franklein
₹
12,000.00
Ms Sienna
₹
11,000.00
Others
₹
7,000.00
Additional investment
required
₹
-
Total planned investment
₹
42,000.00
Loss
₹
21,000.00
Total capital
₹
21,000.00
Total capital and liabilities
₹
95,000.00
Total funding
₹
1,16,000.00

Introduction to business 11
References
Al-Jourdi, H., Popescu, C., Popiniuc, C., & Lupuleasa, D. (2018). Physico-chemical and
microbiological characterization of Argan (Argania spinosa L.) oil-raw material in
cosmetics industry. In International Symposium, ISB-INMA TEH'2018, Agricultural
and mechanical engineering, Bucharest, Romania, 1-3 November 2018 (pp. 375-386).
INMA Bucharest.
Bakour, M., Soulo, N., Hammas, N., FATEMI, H., Aboulghazi, A., Taroq, A., ... & Lyoussi,
B. (2018). The antioxidant content and protective effect of argan oil and Syzygium
aromaticum essential oil in hydrogen peroxide-induced biochemical and histological
changes. International journal of molecular sciences, 19(2), 610.
Farber, H. S., & Valletta, R. G. (2015). Do extended unemployment benefits lengthen
unemployment spells? Evidence from recent cycles in the US labor market. Journal of
Human Resources, 50(4), 873-909.
Feng, H., Morgan, N. A., & Rego, L. L. (2017). Firm capabilities and growth: the moderating
role of market conditions. Journal of the Academy of Marketing Science, 45(1), 76-92.
Gamero-Sandemetrio, E., Gómez-Pastor, R., Aranda, A., & Matallana, E. (2019). Validation
and biochemical characterisation of beneficial argan oil treatment in biomass
propagation for industrial active dry yeast production. Innovative Food Science &
Emerging Technologies, 51, 156-166.
Manca, M. L., Matricardi, P., Cencetti, C., Peris, J. E., Melis, V., Carbone, C., ... & Manconi,
M. (2016). Combination of argan oil and phospholipids for the development of an
effective liposome-like formulation able to improve skin hydration and allantoin
dermal delivery. International journal of pharmaceutics, 505(1-2), 204-211.
Menni, H. B., Belarbi, M., Menni, D. B., Bendiab, H., Kherraf, Y., Ksouri, R., ... & Visioli,
F. (2019). Anti-inflammatory activity of argan oil and its minor
components. International Journal of Food Sciences and Nutrition, 1-8.