MNG00314: Earth Purities Entrepreneurship Business Plan Report

The provided document is a business plan report for Earth Purities, a company aiming to launch eco-friendly toiletries travel packs targeting the Australian and New Zealand markets. The report includes an executive summary, introduction, venture description, and details on management, legal structure, and operational management. A comprehensive marketing plan is presented, covering segmentation (geographic, demographic, psychology, and behavioral), targeting, positioning, and communication strategies. The report also features competitor analysis, addressing the threat of new entrants, and financial analysis, including break-even points and profit and loss projections. Risks and challenges are identified, and a conclusion summarizes the key findings. The report aims to showcase the viability and potential success of Earth Purities in the competitive market of sustainable travel products. The assignment was submitted to Southern Cross University for the Entrepreneurship and Innovation unit (MNG00314).

Entrepreneurship and Innovation: Business Plan Part B Maneewan Aramworapaisan 22580186
1
SOUTHERN CROSS UNIVERSITY
ASSIGNMENT COVER SHEET
Student Name:
Student ID No.:
Unit Name: Entrepreneurship and innovation
Unit Code: MNG00314
Tutor’s name: Kota
Assignment No.: 2
Assignment Title: Report
Due date: 20.01.2020
Date submitted: 20.01.2020
Declaration:
I have read and understand the Rules Relating to Awards (Rule 3 Section 18 –
Academic Misconduct Including Plagiarism) as contained in the SCU Policy Library. I
understand the penalties that apply for plagiarism and agree to be bound by these
rules. The work I am submitting electronically is entirely my own work.
Signed:
(please type
your name)
Maneewan Aramworapaisan
Date: 20.01.2020
Word count: 2007

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Executive Summary
The Earth Purities is a company that wants to commence the business of toiletries travel pack
which is eco-friendly and hygienic for Australian and New Zealander consumers. It ensures
quality products and also protects the environment; it is also believably to be acceptable by all
sustainably conscious consumers. The price of the product is reasonable, so customers can easily
afford to purchase. As tourism ratio is increasing, this means the demand for travel pack is also
rising. Therefore, it motivates people to engage more in purchasing the product. Earth Purities
plan to be the best services and being the leader of natural products provider in toiletries travel
pack. The company will face tough competition, but due to an advantage of their eco-friendly
product, they will easily sustain in competitive market, and consumers will prefer these products
as they want to compromise with their health. Furthermore, nowadays individuals are also
concerned about the environment. That will be some of fundamental reasons for which
costumers will purchase products of Earth Purities.

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Contents
Introduction......................................................................................................................................4
Venture Description.........................................................................................................................4
Management....................................................................................................................................5
Legal Structure.............................................................................................................................5
 Operational Management.....................................................................................................6
Marketing Plan.................................................................................................................................6
Segmentation................................................................................................................................6
Geographic...............................................................................................................................6
Demographic............................................................................................................................6
Psychology...............................................................................................................................6
Behavioural..............................................................................................................................7
Targeting and Positioning............................................................................................................7
Communication Strategy.................................................................................................................7
Competitor Analysis........................................................................................................................8
Threat of New Entrants................................................................................................................8
Financial Analysis...........................................................................................................................8
Risk and challenges.......................................................................................................................11
Conclusion.....................................................................................................................................12
Bibliography..............................................................................................................................................13

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Introduction
The basic but is an important part of travelling is toiletries pack. In a recent scenario, the tourism
industry is growing at a higher level. It is reported that Australia and New Zealand tourism are
rising. The total visitor's expenditure grows strongly last year with 6.4% to $120 billion,
following growth of 7% in the year 2019 that enhances the demand of toiletries in the market to
the certain extent. The demand for toiletries enhances the issue of waste pollution as well as
affect the overall environment of the planet. Earth purities aims to provide their customers with a
pack of toiletries item, which is eco-friendly, and it includes all the necessary items which people
need for travelling (Moon and Cavanagh 2016).
In the following part, there will be a detailed analysis of Australian market according to which
the company can able to create marketing strategies to protect environment as well as to compete
competitors effectively and efficiently (Baker and Hart 2015).
Venture Description
The company launched the toiletries travel pack to provide the best services and to offer choices
and quality to individuals. The company is Earth Purities, which aims to provide travellers with
an available and eco-friendly travel pack. The company's motive for this is to secure individuals
interest. The product is new and innovative; it will be widely famous once the consumers get
aware of it. The products are also eco-friendly and not harmful to the environment or any person
using it. The purpose of launching the business is to fulfil the need for travellers. Furthermore,
to minimise the waste pollution that impacts on the planet. This is because there are many
different travel packs in the market shows that they are hygienic but actually not. Earth purities
aims to make individuals aware and to be Australia and New Zealand leading toiletries pack
provider. The company is focusing on different policies and strategies so that their presentation
attracts individuals and provides better services (Camilleri 2018).
The products are organic and natural as the company tends to protect the environment as well as
humans; it will also create awareness of their products; by advertising and promoting as well.

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The company, before launching the product, will set proper management, fulfilling all the legal
formalities and with approval of all regulated authorities. Company’s objective is to ensure
humans reliably safe from consuming environmentally and sustainable product (Chan and
Mansori 2016).
Management
Legal Structure
The legal structure of Earth Purities needs to be registered in the Australian Government's
Business Registration Service; this includes many steps and formalities. After covering all
legal formalities (The Australian Government). It will provide a certificate of registration to
the company. Also, for fair trading, a company must consider:
Codes of Conduct;
Competition and Consumer Act;
Australian Business Standards (Athavale 2015)
The company need to register in the Australian Government Department of the Environment
for getting a certificate of serving of an eco-friendly product, thus required under the
prescribed EPBC Act. The legal structure is far most important as, without this, the company
cannot perform business activity. There are many features which is required while registering
a company – please see below
 The type of business selected;
 The name of the company to be selected;
 Liabilities of all the partners or investors;
 Number of partners, promoters or investors;
 Number of employees
 The type of tax structure needs to be followed (Mullin, 2018)

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All the features mentioned above are important while registering a company. It should
also be noted that all the work is conducted as rules prescribed, also in the same format.
(Li et al. 2017).
 Operational Management
The founder members or directors will manage the toiletries company. From the initial stage,
the company will address the target and designated department such as sales & revenue,
purchase department, strategy department and many others. All the employees will get a
sense of business operation and production operation, and there will be task scheduled as per
their duties requirement. The company offers both online and offline services, 24*7 it is
available to consumers (Popp 2015).
Marketing Plan
Segmentation
Geographic
Australia and New Zealand cover a wide range of visitors as it is one of the famous tourist
destinations. Also, both countries covered high population that provides an opportunity for the
company to grow in the market more effectively and efficiently (Laba 2017).
Demographic
In Australia and New Zealand, the age between 15- 50 majorly prefer travelling as well as they
have earnings in between $10,000 - $120,000. This income group of people travels more than
others as they accommodate themselves as per their needs, frequently travel from one country to
another (Barry and Suliman 2020).
Psychology
In Australia and New Zealand, most of consumers are passionate about travelling. Also, they
majorly prefer group travelling. The people in both countries are also now demonstrating their
concern towards protecting the environment. This means they majorly now prefer sustainable

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products to take steps towards protecting the environment to a certain extent and are ready to
spend, without worrying about the cost (Buckley and Araujo 2017).
Behavioural
The people of Australia and New Zealand alway go for the best quality products and want
organic products. They are highly concern for showing interest in the sustainable product (Bano
and Sharif 2016).
Targeting and Positioning
The targeted consumers of Earth Purities in Australia and New Zealand are between the age
group of 15-50, who majorly prefers travelling because their spending power is more when
compared to other age groups. The people who majorly prefer sustainable product are also
targeted audience of Earth Purities. The company also aims to market other business providers
such as airline, cruise accommodation provider for example hotel, motel, B&B, backpackers to
expand the business venture. The price of the product will be managed according to target
market group that will help in enhancing the range of target customers. Moreover, according to
targeted audience, the company will provide its products through online and offline store, which
is the best way when positioning the company in the new market (Popp 2015).
Communication Strategy
The company will make a strategy to promote its products through many channels which are
explained in the below points:
 The preferable communication strategy is advertisement which includes advertising
through newspapers, television ads, books and journals.
 Also, it will connect with customers through social media for example Instagram and
Facebook.
 Company will also adopt a sales promotion strategy to communicate with its customers
by distributing templates and free samples.
 Company will also focus on maintaining public relations.

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 The company will provide customers, and service support platform to the consumers to
resolve their issues on time (Buckley and Araujo 2017).
Competitor Analysis
The main competitor of Earth Purities is Flora and Fauna Travel Products. As Flora and Fauna
has already captured maximum share in the market that create tough competition for Earth
Purifier to compete with such a massive company. Flora and Fauna has already ensured customer
for providing the best quality as well as it allows for its product at a low price that attracts and
retain its consumers for a more extended period of time. Therefore, it would be difficult for Earth
Purifier to attract consumers from them.
Furthermore, Flora and Fauna has also earned and managed its goodwill in the market that gives
tough competition to Earth Purifier to a certain extent. However, Earth Purities will provide
sustainable products to its consumers that will help in coping up the high competition level that
is about to face by the company in the competitive market due to the main reason the competing
company provide chemical-based product. Therefore, it is one of the competitive advantages for
Earth Purities (Laba 2017).
Threat of New Entrants
The entry of small companies is quite affluent as the requirement of capital is minimal in such an
industry. Therefore, every venture or small company want to enter into it. Also, the main reason
is that tourism is increasing, which means there are demand and growth in travel pack toiletries.
One of the reasons is also that the entry does not require much of formalities or requirements, so
new companies can quickly enter and remain in the market. This is a significant threat to Earth
Purities as any company can come and can give tough competition to it. It also diversifies the
costumer's mind and interest because the new companies will come with their strategy and may
offer lower price as compared to other competitors (Barry and Suliman 2020).
Financial Analysis
There are several options for funding in the company, and it covers various methods such as
borrowing from banks, investing in equity, debt or units, IPO's (Initial Public Offerings), Private

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Placements and angel investors. As per the views and trends, a company need source of funding,
and it is a suitable option to choose (Buckley and Araujo 2017).
The options present are beneficial to the company as it gets an advisor and the source of funding
uses to enhance the reputation of company, to help and to maintain goodwill (Moon, Wilkinson
and Cavanagh 2016).
Financial Cost
Break-Even Point
Cost-Volume-Profit Relationships - Breakeven
Per Unit Amounts
Selling price $ 120.00
Variable costs $ 45.00
Contribution margin $ 75.00
Total fixed costs* $ 4,00,000.00
Breakeven in units 5333.33
Breakeven in dollars $ 6,40,000.00

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Start-up Budget

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Profit & Loss A / C
Analysis of Income Statement
In order to analyse the income statement of the company, it has been stated that the company is
expected to grow by 5% within every one year due to the main reason, the tourism industry is
growing rapidly in New Zealand and Australia as the contribution of industry towards such
country increases by 7.3% from 2013 to 2018 that showcase that the demand of the toiletries will
also expected to increase in the next years as well. Therefore, the sale of the company is

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expected to grow by 5% every year that will provide an opportunity to the company in an
effective as well as in an efficient manner (Australian Government, 2019).
Other Financial Analysis
Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Unit 500 750 800 900 940 1000
Price 50 52 55 55 57 59
25000 39000 44000 49500 53580 59000
The sales of the company is expected to grow in every one month by 10% that will end up with
the 1st year by 594 million due to the reason the recent growth in arrivals from the traditional
markets compares a favourably with the period from 2013 to 2018. During such period the
arrivals grew by 4.4% per year to 9 million that showcase that the opportunity for growth will
also increases every month that will affect over the sales of the company to the certain extent
(Australian Government, 2019).
Risk and challenges
This issue comes along with the beginning of the business. In reality, many companies have to
face it whatever the conditions are. After passing of some years of commencement, the risk and
challenges do not end, but if the company position itself well and stable in the market, they are
ready to deal with any risk and challenges (Moon, Wilkinson and Cavanagh 2016).
The main challenges which will occur for Earth Purities -
 To make consumers reliable of the product – it means that Earth Purities need to make
their customers believe that they use 100 % organic and natural products with no harmful
effects to human body or the environment. Provided that, it will be the duty of the
company to make customers believe and rely on them (Camilleri 2018).
 Tough Competition – As discussed, toiletries business requirements are low, and even
small company or venture business can come and enter into it. Therefore, this is the
biggest challenges. During such period, the arrivals grew by ge the company can have.

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Earth Purities when will come into the market have to face this and will need to survive
in the market by competing from other companies (Buckley and Araujo 2017).
Conclusion
It can be concluded that Earth Purities is a company of toiletries travelling pack which consist of
all-natural and organic products. It is also sustainable in the environment, protects environment
from harmful chemicals and minimising waste pollution to the planet. The company ensures that
the product of Earth Purities is bio-degradable. Earth Purities has framed its legal structure as per
Australian Government requirements and wants its product to launch as per their strategy and
marketing plan. The outcome of Earth Purities is fundamental, and its usage is rising as tourism
is increasing in Australia and New Zealand. Therefore the demand for Toiletries travel pack is
increasing. Earth Purities aims to satisfy their costumer's needs, and they are also concerned
about the health of human beings. Therefore, they provide the best quality products and the best
services to their customers. Earth Purities needs to be perfect in its strategies and communication
while entering into the market, so they can challenge competition to its competitors and can
sustain by providing best product and services as compared to other companies. As Australia and
New Zealand are to be the popular tourist destinations, which means tourism in both countries
are increasing. Therefore, the product of Earth Purities will cover the mass market and survive
for a more extended period of time. The toiletries items provided by Earth Purities are also
feasible in price, and they ensure to provide eco-friendly products, that will not harm human
being and minimising environmental pollution to the planet (Camilleri 2018).

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