Business Entrepreneurship Report on Neoteric Perfume in Australia

This report provides a detailed business plan for Neoteric Perfume, a new fragrance brand targeting the Australian market. It begins with an executive summary and introduces the brand's concept, mission, and product offerings, including various fragrance options for men, women, and youth. The report includes a market analysis, examining industry trends, competition, and the primary target market. It outlines a marketing mix strategy, detailing product features, distribution channels, pricing, and promotional activities. Furthermore, the report presents a financial plan with profit and loss statements, balance sheets, and cash flow projections, along with an assessment of critical risks. The report concludes with a summary of the business plan and provides references.

Running head: BUSINESS ENTREPRENEURSHIP
Neoteric Perfume
Business Entrepreneurship

BUSINESS ENTREPRENEURSHIP 1
Executive Summary
This report is being prepared for representing a business idea of an Entrepreneurial Group
which is a perfume brand. The report will give a brief explanation of the new idea i.e.
perfume, and Neoteric name is given to this new brand of perfume which means fresh. Along
with this, it will provide the mission of the product, the offering of the product. The report
will proceed with the analysis of the market for the new product. It will work on identifying
the target market for the product and its marketing which will perform the marketing mix
strategy. Further, the report will provide the financial plan and critical risk for the new idea.

BUSINESS ENTREPRENEURSHIP 2
Table of Contents
Executive Summary...............................................................................................................................1
Introduction/Background of the Idea................................................................................................3
Logo of Neoteric Perfume..................................................................................................................3
Benefits of Using Neoteric perfume..................................................................................................4
Fragrance.......................................................................................................................................4
Enhances Mood.............................................................................................................................4
Boosts Confidence.........................................................................................................................4
Mission of Neoteric Perfume.............................................................................................................5
Product Offering................................................................................................................................5
Market Analysis.................................................................................................................................5
Industry Analysis............................................................................................................................6
Competition...................................................................................................................................6
Australia’s Online Cosmetics and Perfume Sales...........................................................................7
Primary Target Market......................................................................................................................7
Marketing Mix...................................................................................................................................8
Product..........................................................................................................................................9
Place............................................................................................................................................10
Price.............................................................................................................................................10
Promotion....................................................................................................................................11
Financial Plan...................................................................................................................................12
Profit & Loss Account...................................................................................................................12
Balance Sheet..............................................................................................................................13
Cash Flow.....................................................................................................................................13
Critical Risks.....................................................................................................................................14
Entry in the market......................................................................................................................14
Competition.................................................................................................................................15
Conclusion...........................................................................................................................................15
References...........................................................................................................................................16

BUSINESS ENTREPRENEURSHIP 3
Introduction/Background of the Idea
A concept which is used for receiving financial gain that is generally positioned on a service
or product and offered to people in return for money is known as a Business Idea. The base of
a pyramid is an idea of the business. The characteristics of an effective and strong business
idea are: Unique and Innovative. The idea is about a perfume brand i.e. Neoteric which is
going to be placed in the market of Australia. The managers of the company are planning to
place the office in Melbourne, Australia. Mr. Chris is the one who provided this idea of the
product; he is the part of company’s marketing team and going to lead this project. Neoteric
perfume is the combination of vital oils of fragrance or compounds of aroma, solvents, and
fixative used to provide the body of human, animals, objects, food and living spaces, a
delightful scent. The company of Neoteric Perfume is providing different options to its
customers in terms of fragrance, along with this the perfume can be used by men, women and
also for youth.
Logo of Neoteric Perfume

BUSINESS ENTREPRENEURSHIP 4
Benefits of Using Neoteric perfume
Fragrance
This benefit is quite understandable. Perfume has been used from ancient time and the key
aim of using it was for fragrance (Ameya, 2017). Neoteric perfume will help people in
keeping the uninvited smell of body away and confirms that the user always feel fresh and
they smell good whole day.
Enhances Mood
The major benefit of using Neoteric perfume is that it will help in enhancing the mood of the
user (Neesh, 2016). Neoteric Perfume is providing various fragrance options which make the
user to buy the product according to their mood. In every condition whether the user is
feeling reserved, mischievous, playful, or timid the Neoteric perfume provides many smells
options for different moods. The customer can choose and apply the perfume according to the
event so that he/she can create the perfect mood for it (Eula, 2013).
Boosts Confidence
Same as a pretty dress, a soothing smell of a perfume can boost the confidence of the user
and confirms that the user can spend his/her day without feeling uncomfortable about the
smell of the body (Nik, 2018). A splash of fragrance can do wonders for the user's
personality. In order to have a soothing and attractive body smell people can choose Neoteric
Perfume as it will suit the personality of each user and will also increase the confidence and
morale to battle against all the unwanted smell.

BUSINESS ENTREPRENEURSHIP 5
Mission of Neoteric Perfume
The Mission of Neoteric Perfume is to become the leading brand of perfume in the world, by
meeting the preferences and taste of their customers and providing them different fragrances.
Product Offering
The Neoteric Perfume will offer a variety of fragrances to its customer so that they can use it
according to their mood and occasion. The variety of fragrances provided by the perfume is
Citrus, Oceanic, Floral, Green, Spicy, Woody, Fruity, and Oriental. The perfume is focused
towards providing the quality to its customers so that they can become the loyal customers of
the company. Along with this, all the varieties offered by neoteric Perfume are very gentle to
the skin which does not have any side effects on the skin (Kynaston, 2015).
The services of the perfume will be offered in the local market of Australia but the
management has also planned to place the product on online shopping sites such as David
Jones, Myer, etc. in order to offer products easily to the customers.
Market Analysis
An assessment of determining how much a market is suitable for a particular industry is
known as Marketing Analysis. It can be used to evaluate the present market of the company
or can evaluate the new markets. A well-rounded and holistic picture is provided to the
company by market analysis that helps in identifying interest and wants of the customers.
There are various evaluation tools involved in the components of analysis, comprising a
conversation of the company and its position in the market. It also helps in examining the
target market, cultural and legal regulations, and conducting competitive analysis.

BUSINESS ENTREPRENEURSHIP 6
Industry Analysis
The products like perfume, cosmetics, toiletries, lotion, deodorants are manufactured by
toiletries and perfume manufacturing industry. This industry is very small it covers less than
5% of Chemical product manufacturing companies in Australia. The degree of globalization
is high in this industry, which reflects the governing position is covered by the beauty brands
sector. Various products of perfumes and cosmetics are imported as packed and fully
formulated products. The estimation of the imports in 2017-2018 is projected as the total $1.9
billion, which will be able to satisfy 70% of the local demand and emphasizing the strong
role of the imports in the industry (IBIS World, 2017).
Industry Threats and Opportunities
 The performance of the industry has been determined by the strong growth of export
from last five years.
 The positive image of the industry in overseas market has increased the rates of export
from last five years.
 The environmentally friendly, organic and natural products development will increase
the demand.
Competition
Industry obstacles to entry are reasonable. Manufactures which are established previously
with popular and important resources of promotion have a benefit when challenging for the
downstream retail projection space. Their governance can act as a considerable difficulty for
prospective applicants wanting to participate in the huge market. Most of the established
toiletries and cosmetics market is of saturated nature and act as a hurdle and have less scope
for new business or applicants with new products.

BUSINESS ENTREPRENEURSHIP 7
The Neoteric Perfume can face huge competition from the companies like Aesop, Art of
Man, Australis, David Jones, Evocative Perfumes, Jessica Mauboy, etc.
Australia’s Online Cosmetics and Perfume Sales
The industry of Cosmetic and perfume’s sales has reflected a growth from last five years,
mainly because of the increasing trend of online shopping in Australia. Buyers are getting
more comfortable and clever with online shopping; mainly as platforms of online shopping
become extra user-friendly and safe. Cosmetics and Perfume are well-matched to the online
shopping because they are packed goods that users normally trust and know. The revenue of
the Industry is anticipated to rise by a 14.1% over the five years by 2016-2017, to attain
$297.4 million. As shopping through the online medium has now commissioned into a range
of demographics of the market, its acceptance is increasing, which is predicted to result in the
extra passive progress of 5.1% over 2016-2017 (IBIS World, 2017).
Primary Target Market
The primary target market of Neoteric Perfume in Australia is the women and along with
them they will target men and youth. Those women's lie under the age group of 14 to 24 in
Australia is considered as the highest payers on perfume. Perfume is now affordable and
available at every place from chemist's to online retailers, supermarkets, and discount stores.
In Australia, approx. 11 percent of women lie under the age group of 14 and up purchase
perfume in an average of four weeks, but from them, women's under 25 covers the highest
share. According to the recent findings of Roy Morgan Research reflected that the women of
age group 14 to 24, out of them 18 percent of women are those who purchase perfume in an
average period of four week and women who lie under the age group of 50 to 64 cover 10
percent. The women percentage from the age groups of 25 to 34, 35 to 49 and 65 plus who

BUSINESS ENTREPRENEURSHIP 8
bought perfumes of women in given four weeks was equally steady, hovering nearby the 9
percent mark.
Along with this, the Neoteric Perfume will be focusing towards men and youth who use
perfume while going offices or out of their residence (Inside Retail, 2015).
Source [https://www.insideretail.com.au/blog/2015/02/17/perfume-buying-habits-australia/]
Marketing Mix
A set of tactics or actions, that organization uses in order to advertise or promote its product
or service in the market is known as Marketing Mix (The Economic Times, 2018). 4ps make
a marketing mix strategy- Product, Price, Place, and Promotion. Though, currently, the
marketing mix strategy progressively comprises numerous other Ps like People, Packaging,
Politics, and Positioning as important mix elements. In other words, the definition of the

BUSINESS ENTREPRENEURSHIP 9
marketing mix is very simple. It is about placing the correct product or a mixture thereof in
the place, at the correct time, and at the correct price.
Source [http://marketingmix.co.uk/]
Product
An item created for selling and for satisfying the needs of the customers is known as a
product (Mars, 2014). The product may be tangible or intangible because it can be in the
goods and services forms (Marketing Mix, 2018). The company needs to confirm that they
should provide the correct product which can fulfil the demand of the customer, at correct
time and place (50MINUTES, 2015).
Neoteric Perfume will be having its manufacturing unit in Melbourne, Australia, where they
are planning to offer their products to the local people. The perfume is having different types
of fragrance options for its customers living within the boundary of Australia. The major

BUSINESS ENTREPRENEURSHIP 10
target market of Neoteric Perfume women but along with them the company also offers
perfumes for men and youth.
Place
Distribution and Placement of the product is a very vital part of the marketing mix. The
company needs to place the product properly in correct place so that the targeted customers
can reach there easily and buy the products. This can be done by understanding the target
market deeply. If the business will understand the target market from the inside then they will
be able to identify the most competitive place and delivery channels that straight talk with the
target market (Richter, 2012).
The Neoteric Perfume will place its product in the Australia market by opening its own stores
and they will also offer its products online with the help of an online shopping website. The
company can use both direct and indirect distribution channel. The company will select direct
distribution channel for selling the products in its own stores and will select indirect
distribution for supplying the products to the office of online shopping website.
Price
The product's price is mainly the amount of money that a customer is ready to pay in
exchange for the product. Price element of the marketing mix is very important. It is
considered as a vital component of the marketing plan as it defines company's survival and
profit (Kemmer and Boden, 2012). Amending the product's price has a huge influence on the
whole marketing strategy as well as significantly disturbing the demand and sales of the
product (Codita, 2011).

BUSINESS ENTREPRENEURSHIP 11
The prices range of the Neoteric Perfume is $99 to $381. This is the affordable price for the
customers of Australia and reasonable as compared to other competitors present in the
market.
Promotion
The important element of marketing is a promotion because it helps in increasing the
recognition of brand and sales. Promotion is consisting of numerous elements like
Advertising, Sales organization, Public Relations and Sales Promotion (Wenderoth, 2009).
Neoteric Perfume can opt to advertise its product by Television advertisement, Posters,
Pamphlets, and hoardings.
Mock Up