Business Plan for Bonjour Belle: A Cosmetic Company Analysis

This assignment presents a comprehensive business plan for "Bonjour Belle," a cosmetic company. The plan begins with an executive summary outlining the company's vision of customer satisfaction and sustainable beauty, and its mission to provide innovative, high-quality, and safe cosmetics. It details smart objectives including digital innovation, organic cosmetic range introduction, and customer acquisition targets. The plan identifies key personnel, including the CEO, top-level managers, marketing manager, and HR manager, and outlines the company's functional and regional organizational structure. It covers operational aspects such as location, employee management, sourcing, purchasing, facilities, cost control, and labor. The marketing section discusses target markets and marketing mix strategies. The financial plan includes assumptions, projected P&L and income statements, balance sheets, and break-even analysis. The plan concludes with a summary of the company's strategy and financial projections, estimating a net profit of $51,364, $83,830, and $115,811 over the next three years with an initial investment of $100,000.

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2-6-2019
ENTREPRENEURSHIP & ENTREPRENEURIAL MANAGEMENT

ENTREPRENEURSHIP & ENTREPRENEURIAL MANAGEMENT 1
Executive summary
A business plan is a written and structured format of the goals of the business, methods through
which these goals can be accomplished. For this report, a business plan for a company will be
prepared. The “Bonjour Belle,” is a cosmetic company. The vision of the company was customer
satisfaction and safety while sharing beauty with sustainable commitment, and delivering the
ranges as per the commitment. The mission of the company included providing women with the
best range of cosmetics while integrating innovation to efficacy, quality, and safety to fulfil the
customers need and desire. The product innovation strategy of the company leads to innovation
through organic ingredient use in cosmetic range production. Moreover, technology would be
used in the operation, to create agile supply chain and reaching out to the customers.
The major key personnel included CEO, and key managers who would be responsible for
managing the business and their respective team performance. Considering the projected
financial results, net profit of the company in next three years were estimated to be $ 51,364, $
83,830, and $ 115,811. Initial investment was estimated to be $ 100,000.

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Contents
Executive summary.........................................................................................................................0
Introduction......................................................................................................................................3
Background of the company............................................................................................................4
Vision statement..........................................................................................................................4
Mission statement........................................................................................................................4
Smart objectives...........................................................................................................................4
Key personnel..................................................................................................................................5
Operations........................................................................................................................................7
Marketing.........................................................................................................................................9
Target market.............................................................................................................................11
Marketing mix strategies...........................................................................................................11
Financial plan.................................................................................................................................14
Assumptions..............................................................................................................................14
Projected P&L and income statement........................................................................................15
Summarized P&L account.........................................................................................................17
Projected Balance Sheet............................................................................................................18
Break even analysis...................................................................................................................19
Conclusion.....................................................................................................................................21

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Introduction
Business is very crucial to aspect to conduct and initiate. This needs proper planning regarding
resources, personnel, operations, marketing, and all the functions of business, well in advanced.
A business plan is a written and structured format of the goals of the business, methods through
which these goals can be accomplished. For this report, a business plan for a company will be
developed, which will include the company’s personnel and their roles and responsibilities, the
major operations that would be occurred in the business, plans related to marketing, which
includes everything from branding to marketing mix strategies, and the most important aspect of
planning is financial aspects, which include future projections for the company, which this report
will focus further (Adam & Kotler, 2014).

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Background of the company
“Bonjour Belle,” is a cosmetic brand, who is majorly focused over the customer needs, and
customer’s care while providing best quality goods. A France based company, with the actual
meaning of the brand name, is “Hello beautiful.” The brand would serve the globalized products
worldwide, with all range of makeup, skin care, and hair care (Amabile & Rigolizzo, 2015).
Vision statement
The vision of the company is customer satisfaction and safety while sharing beauty with
sustainable commitment, and delivering the ranges as per the commitment.
Mission statement
The mission of the company includes providing women with the best range of cosmetics while
integrating innovation to efficacy, quality, and safety to fulfil the customers need and desire.
Smart objectives
 Digital innovation – the objective of the company is to introduce a cosmetic range of
products with digital innovation that is integrating technology to the beauty ranges. This
objective would be accomplished by the company in next two years, which can be
measured through online sales of the products to be increased by 5% by the end of this
year and increase in 10% by the end of next year.
 Organic cosmetic range introduction – this objective is introducing a new range of
products to the market, which will be helpful in acquiring needs of the customer, along
with proving safety to the customers for their skin and hair range of products. This
objective has to be accomplished within a year, and need to make the sale of the company
to increase by 10% within this year, particularly in this range of products.
 100 million new customers – this objective is to increase the number of customers to 100
million by the end of 2020, through new product development, innovation, and customer
satisfaction. This could be said as long term goal of the company, which has to be
accomplished by the end of next year (Ahlin, 2014)

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Key personnel
Human resource is the key asset of the company, which makes the objectives of the company to
be accomplished. The key personnel who are responsible for the company’s success and could be
the cause of failure for the company are
 CEO or founder of the company – the CEO is the one who is the major decision maker of
the company, who is responsible for the business strategy of the company. The Vision
provided by the CEO is the direction for the organization to work upon. If the person is
not applying appropriate leadership style to the company, it may cause to the failure of
the company. The transactional leadership style would be best suited, as a change from
traditional cosmetic brand to that with digital innovation could be done through the
application of this leadership style across the company. The duties and responsibility of
the person would be providing vision to the company, set directions for the company,
ensuring management across the borders, as the company is a global company (Caillier,
2014).
 Top level managers – the managers are responsible for major decision making among
their respective departments, and the integration of all the departments in the company
for better flow of work. The top-level managers are responsible for their team
performance, and overall performance of the company (Camison & Fores, 2016)
 Marketing manager – this is the key personnel, which is responsible for an important
aspect of the company that is marketing and sales of the product. The role of the person
will be to analyze the market and work with research and development team for new
product development. Would be responsible for product strategy, pricing strategy,
promotional strategy, and placing strategy of the products of the company, moreover,
among this, sales head would be responsible for actual sales of the products, that is
perusing the customer to make a purchase of the products of the company. These are the
personnel who are largely indulged with the incentive system, which is more the person
will hold responsible for the sale, more bonus or incentive can be gained by the person.
This is important in order to increase the sales persuasion by the personnel (Bruns, 2013)
 Human resource manager – this is another important work in an organization that is to
manage the human resource of the organization. In addition, since this is the global

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company, the role becomes more crucial due to cross cultural human resource. The major
duties and responsibility of the personnel include recruiting the right person for the right
job, providing training to the company for enhancing the competencies of the employees
(Birasnav, 2014).
Figure 1: (Source: (Ahlin, 2014)
From the organizational chart, it can be said that the bifurcations of the structure would be
functional that is delegating authority by CEO to the managing director of departments, like
finance operations, research and innovation, marketing, and human resource. Another set of
bifurcation would be according to the product range that is the consumer goods, luxury range of
products, and cosmetic division. Another bifurcation is according to the region, where the
business is to be conducted that is Asia Pacific zone, Latin America, North America, and Africa,
Middle East zone (Amara & Traore, 2016).

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Operations
Operations are the function in the business that is to manage for better implementation of the
project and business plan. This include administration of the business, which includes
procurement process, production process, logistics, and supply chain management and reduces
the cost in order to maximize the profits of the company (Alves & Sousa, 2018).
Figure 2: (Source: (Amabile & Rigolizzo, 2015)
For Bonjour belle, the major operation management plan would include decisions related to:
 Location and capacity – one of the major planning in the business plan include deciding
on the capacity of the business and location. As already discussed, it is a global company,
which has a large capacity for operation in terms of warehouses, factories, and store to
reach out to the customers (Anokhin & Morgan, 2015)

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 Employees – the employees are a major part of the company, in order to gain a
competitive advantage it is important to have the right number of employees, and their
skills are utilized to the maximum. The team of the employees would be kept small in
order to make the company more agile. The number of employees working with the
company worldwide would be more than 20,000. The reason being the company would
be trading in various nations, which would increase the need of employees, and
eventually increase in the number of employees working in the company (Bird &
Mendenhall, 2016)
 Sources of supply – the company would be committed to the customers for the best
quality products, for which the company has to procure best quality raw material. The
company strategy for this aspect includes various suppliers worldwide, that is procuring
the goods from the nation, where the production of that raw material is done. Moreover,
while increasing the number of suppliers, the chances for the bargaining power of
suppliers can be reduced. The various raw material that has to be procured includes fats,
perfumes, natural products, polymers, vitamins, filters and much more (Amara & Traore,
2016)
 Purchasing of assets – since the company is working in a large space and capacity, the
number of machinery would be large. The decision regarding the purchasing of the
machinery would be preferring new machinery to be purchased, as it has to be ensured
that the repairing issue would not occur, and there are no obstacles in work in progress
 Facilities and equipment – the major facilities required would be the factories where the
manufacturing would be conducted, the warehouse for storage of raw material before
production and final goods after the production and before sales. The equipment required
would be the electricity facility, the buying option for the equipment would be better, the
reason being the company can gain economies of scale, as the use of the equipment
would be very high. Considering the future perspective, the needs for the equipment
would be increasing with time (Bird & Mendenhall, 2016)
 Costing and control – the cost has to be controlled, this could be done by enhancing the
operations management as well. The company is more towards innovation and
technology, which would include the use of better technology in the supply chain and
other procurement procedure. Reordering cycle, managing lead time. The effective

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controlling of raw material, work in progress, and supplier decision can be responsible
for cost control, which will eventually responsible for profit maximization of the
company (businessjargons, 2018)
 Labour – labor is another important factor that may impact the productivity of the
company and has to be managed to a large extent. The decision related to the labor, their
organization, and management is a crucial part for the managers. The labor of the
countries, where the labor is not very expensive can be selected by the company to
recruit. For instance, the labor in China is lowered priced than that of the United States,
which means the company must use labor from China instead of US (Ding, 2018)
Marketing
As already discussed, this is one of the most crucial functions in the organization. The company
has to decide on marketing aspects while preparing a business plan, well in advance. Marketing
includes all the activities from deciding on the product range, packaging, labeling, and deciding
on the customer segment to be targeted, and major decision related to the product, pricing,
placing the product, and promotional tools to be used while conducting marketing. It is
appropriate for the company to first analyze the external and internal analysis before developing
a marketing plan (HPS, 2018).
For internal analysis, SWOT analysis would be conducted
Strengths Weakness
 High quality
 Customer focused
 Large customer segments
 Innovation (He, 2017)
 Higher competition
 Global management
 Legal environment of the investing
nation (Kaur & Ma, 2015)
Opportunities Threats
 Product differentiation
 Market development
 New product development
 Organic products (Huggins &
Thompson, 2015)
 The threat of change in raw material
price
 The threat of new entrant
 Change in competitors strategy
(Statista, 2018)

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For external analysis, PESTLE analysis would be conducted
1. Political factors - political parties has high influence while a company is entering into any
country. Specifically, in the case of cosmetic or drug industry, as the policies are different
for all the nations. For instance, personal care and product safety guidelines have to abide
by the company to ensure the safety of the customers. For example, in Canada and
Europe, the ingredients requirements are harsher, although the country has restricted 500
ingredients out of 1328.
2. Economic factors – this is the factor which is responsible for the profitability of the
company. In case there is a risk of inflation, the threat for the company increasing while
investing that nation. Moreover, various other factors of economy, that is the
unemployment rate, GDP can influence the business decision of the company. Since the
company invest in various nations, the marketing plan has to be according to the
consumption trend of the residents of the nation (Gilson, et al., 2015)
3. Socio-cultural factors – the culture plays an important factor while investing. In some
nation, the choice for makeup is different from another nation. For instance, in some
nations, people are redder and pink lovers, while in some nation nude shades are much
more preferred. Moreover, the skincare is also different for all the countries, which
involves challenges for the company (Bakir & Rose, 2015)
4. Technological factors – this factor includes the technologically advanced nation or not.
Since the company is more towards innovation, the technological adaption level depends
upon the technological factors of the nation. The company has to understand the factors
before offering products to the nation (alliedmarketresearch, 2018)
5. Legal factors – the ingredients of the beauty products are largely dependent on the legal
requirements and regulations of the country. For instance, the federal food, drug, and
cosmetic act are the laws leading in most of the nation, which specify the ingredient list
that has to be followed by the cosmetic industry. For example, the use of mineral oil in
the cosmetic range is restricted in some nations (Du & Bstieler, 2016)
6. Environmental factors – these factors include the climatic change, use of water resources,
and energy consumption level in all the nations. The cosmetic product ranges have to be

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developed according to the climatic change, and the skin tendency of the residents of any
nation. For instance, the tendency of dry skin leads to increase the ranges in facial oil or
skincare according to that, especially in colder places worldwide (statista, 2018)
Another major aspect to consider before developing the marketing plan for the company is
analyzing competitors. The major competitors of Bonjour Belle are L’Oreal, Estee Lauder,
MAC, Maybelline, as these are the major global cosmetic leaders. Moreover, some of the
indirect competitors to the company include local companies of the nations, for example, the
Korean makeup brands are popular in the nation, and residents prefer the local products than the
global products, as they believe that their skincare style and range is different according to their
skin type. This is important to analyze because all the strategies would be depended upon the
competitor’s strategy as it is a very competitive industry to sustain. Change in competitor’s
strategy can affect the strategy of the company to large extent (statista, 2018).
The major strategies that are to be developed in a marketing plan include:
Target market
The initial aspect to decide while developing the marketing plan is to decide the target market
and customer segment which the company will target majorly to increase the sale. In this case,
the company would be targeting various nations for the offering with globalized products. The
customer's segments that the company will be targeting are young and old age ladies. The
women from 17 years would be majorly targeted. In some nation, the makeup is preferred in
school going girls as well, in that case, the customer segment would be 14 year and above girls.
Moreover, the customer segment would also be according to the income group, the company
would be introducing a different range to target different income group customers. For instance,
for the luxury product range, the target segment would be higher income group, and for
consumer goods, it can be middle income and higher income group (Camison & Fores, 2016).
Marketing mix strategies
Marketing mix includes the strategies related to product, price, place, and promotion.
1. Product strategy
 Product innovation – one of the major strategy related to the product is integrating
innovation while developing and offering products to the customer. This is the