Cosmetics Business Plan: Organic Product Enterprise & Entrepreneurship

This report presents a comprehensive business plan for an Organic Product Enterprise (OPE) operating within the cosmetics sector, focusing on hair and skincare products such as shampoo, conditioner, face cream, and moisturizers. The plan outlines the motivation for selecting this business, driven by the increasing consumer preference for organic and chemical-free products, and addresses the prevailing issues related to the use of preservatives and chemicals in conventional cosmetics. The study details the process of conducting market research through questionnaires, highlighting the shift in consumer awareness due to recent events like the pandemic. It includes feasibility studies covering product, target audience, organizational, and financial aspects. The plan also explores potential market opportunities using SWOT, STP, and PESTLE analyses, evaluates competitors, and defines the unique selling proposition (USP) of OPE. Furthermore, it discusses the attractiveness of the industry based on Porter's Five Forces and outlines the organization's vision for expansion into the international market, employing benchmark and variance analysis for monitoring and controlling progress. This business plan aims to guide OPE towards success in the competitive cosmetics market by emphasizing high-quality, organic products and effective marketing strategies. Desklib provides access to this and other solved assignments for students.

ENTERPRISE AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
 INTRODUCTION
 MOTIVATION FOR SELECTION OF BUSINESS
 PROCESS OF CONDUCTING
 FEASIBILITY STUDIES CONDUCTED
 DETAILS OF THE PRPODUCTS
 POTENTIAL MARKET OPPORTUNITIES
 ATTRACTIVENESS OF THE INDUSTRY
 CONCLUSION
 REFERENCES

INTRODUCTION
 Entrepreneurship is the procedure which is associated with new way of using the resources and
offering different kinds of goods or services.
 In the current era, entrepreneurship is related with having significant level of understanding of
customers requirements so that proper level of ability to offer relevant goods and services can
become possible.
 The current study is based on Organic Product Enterprise (OPE) which offers the cosmetic
products in particular sector.
 This will provide information regarding business plan which will comprise motivation for
choice of business, process, feasibility study, details of products offered, attractiveness of sector
and long term vision.

MOTIVATION FOR SELECTION OF
BUSINESS
 In the current era, cosmetic sector is facing higher growth and development due to inclined
people preferences of living good life style.
 The main motivation behind this business idea is to solve the prevailing problem in the sector
via offering relevant solution in turn greater ability to cover larger market share can become
possible.
 There is higher level of utilization of preservatives & chemical which is adversely affecting
their mind set and leading health consciousness behavior (McKeever, 2018).
 OPE will offer hair and skin acre goods that is specialized in products such as shampoo,
condition, face cream and moisturizers.

PROCESS OF CONDUCTING
 There higher level of emphasis is provided on conducting the research via spreading
the questionnaire so that prevailing views of customers can be evaluated.
 There has been declination in the performance of industry due to pandemic
circumstances which has created and inclined awareness about negative influence of
chemical possessing products utilization.
 It has been identified that major people seek for those goods for their skin & hair
care that has optimum utilization of organic goods so that ability to gain confidence
for good health can be derived.

FEASIBILITY STUDIES CONDUCTED
Product feasibility
 It can be articulated from the evaluation of products offered is there is presence of safe, healthy,
higher quality, low price and organic ingredient possessing goods.
Target audience
 From the conducting of the STP it can be interpreted that targeted audience is basically those
who are seeking the organic ingredients products (Barrow, Barrow and Brown, 2018).
Organizational feasibility
 Organic Product Enterprise is has the ability to attain & manage workforce for offering such cosmetic
goods, sufficient ability to obtain resources like keep equipment, intellectual property, etc.

CONTINUED
Particulars £Amount £Amount
Sales 100000
Manufacturing 20000
Retail expenses 15000
Online retailing 7000
Operational expenses 4000
Advertisement expenses 5000
Sales Promotions 8000
Miscellaneous Expenses 9000 68000
Profit 32000
Budget &financial feasibility

DESCRIPTION OF PRODUCTS OFFERED
 The specified company is operating in the industry to meet different
objective and has aim of solving issues regarding chemical utilization.
 OPE is operating in the cosmetic sector by offering specified products
for the hair and skin care.
 There are various types of features which are possessed by the products
offered which involves higher quality, good proportion of different
effective ingredients, elimination of chemicals, possessing proper
positive impact in longer run.

POTENTIAL MARKET OPPORTUNITIES
SWOT analysis
Strengths
This involves good availability of employees,
suppliers, adoption of technological component
and good financial ability (Benzaghta and et.al.,
2021).
Weaknesses
Lack of optimum utilization and ineffective
distribution channel.
Opportunities
Emergence on digital platform and partnership
with strong firm.
Threats
Higher level of competition and compliance with
safety & health majors.
POTENTIAL MARKET OPPORTUNITIES

CONTINUED
Segmentation It can be done the basis of geographical, behavioral, psycho graphic
and demo graphical. OPE will do on the basis of behavioral & psycho
graphic to attract health conscious customers.
Targeting This will target each customer group that is prevailing in domestic
market and looking for good organic products.
Positioning Will exert on basis of low cost & high quality.
STP

CONTINUED
Political factors Economic factors Social Factors
Technological
Factors Legal factors Environmental
Factors
PESTLE ANALYSIS

CONTINUED
COMPETITORS EVALUATION & USP
Organic Product
Enterprise
Bloom town firm
Pricing
strategy
• Cost plus strategy • Competitive pricing
strategy
Area covered • Domestic • International
USP • Low cost & higher
quality
• Wide range of products

CONTINUED
Products Price
Place Promotion
MARKETING MIX

ATTRACTIVENESS OF THE INDUSTRY
Competition in the
industry
Potential of fresh
entrants
Bargaining Power of
suppliers
Bargaining Power of
customers
Threats of substitute
products

VISION FOR THE ORGANIZATION
To gain greater market share by inclining profitability & marketing techniques to cover
international platform as well
Monitoring and controlling
 Benchmark & variance analysis and KPI will be used to eliminate lacking areas

CONCLUSION
 From the above study it can be concluded that business plan is formulated to operate in
cosmetic sector.
 It has comprised motivation behind business operating, feasibility study, product
description, potential market opportunities, attractiveness of sector and vision of business.
This is indicating firm will be successful in sector.

REFERENCES
Books and Journals
 McKeever, M.P., 2018. How to write a business plan. Nolo.
 Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step Guide to
Creating and Developing a Successful Business. Kogan Page Publishers.
 Benzaghta, M.A. and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
 Yin, Q.E. and Ritter, J.R., 2020. The speed of adjustment to the target market value leverage is slower
than you think. Journal of Financial and Quantitative Analysis. 55(6). pp.1946-1977.
Online
 Porter’s Five Forces Model for Cosmetics Industry Analysis. 2022. [Online]. Available through:
<https://ivypanda.com/essays/implementation-of-the-porters-five-forces-model-on-the->