Entrepreneurial Opportunity: Business Plan for Herbal Beard Oil, UK

This assignment provides a comprehensive analysis of an entrepreneurial opportunity centered around the launch of a herbal beard oil product. It begins with an introduction to the concept of entrepreneurial opportunity, emphasizing the potential for profit through the sale of goods and services. The project delves into market attractiveness, examining factors such as market size, growth, pricing trends, and the competitive landscape. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors impacting the business. The assignment also explores the risks involved in the industry and the importance of creating innovative products. A customer value proposition canvas is utilized to identify how the product satisfies customer needs. Furthermore, the project analyzes industry attractiveness using Porter’s Five Forces model to assess the competitive environment, including the threat of new entrants, bargaining power of suppliers and buyers, and the intensity of rivalry. The assignment aims to provide a complete business plan for a herbal beard oil product.

Entrepreneurial
Opportunity

Contents
INTRODUCTION...........................................................................................................................3
Market attractiveness..................................................................................................................3
Industry attractiveness.................................................................................................................5
Target segment benefits and attractiveness.................................................................................7
Competitive and economic sustainability...................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The basic concept of entrepreneur opportunity is a centralized study based theory of
understanding entrepreneurship. People who are entrepreneurs are individuals who have been
pursuing their opportunity in market (Garud and Giuliani, 2013). It's a situation where services
and products are window to be sold at a price which is higher than the cost of its overall
production. The opportunity in this is the idea of making a better amount of profit while
producing such goods or services (Davidsson, 2015). This can only be performed after exploiting
the market at many scales and standard. There are several management theories which help an
entrepreneur in guiding for the perfect action plan in any issue for seeking the correct
opportunity. The file consists several issues and methods which will be used for understanding
the concept better and discuss about aspects such as, attractiveness of market, attractiveness of
industry, several times and segment with their benefits and attractiveness and in the last the
economic sustainability and competitive element of business platform will be discussed briefly.
A product will be launched in market which is an herbal beard oil.
Market attractiveness
It’s the basic strategy point, which helps in asserting all the aims and objective for which the
basic purpose of the whole entrepreneur opportunity was created. While working in an
globalized environment it becomes a challenge for company while selling their products or
services at par price atleast.this needs to have a proper market research and an examination of
data collected from this is the general review should include the number of customers and their
reliability to purchase product. There are many factors which directly affect market
attractiveness and in case of any assessment these shall be the necessary subject which should
get acknowledged for creating a better judgement (Olavarrieta, 2015). The product of herbal
beard oil will be conducted after determining the attractiveness in region of launching it in later
future. Some of them are mentioned below:
 Market size: in this the international strategy of pricing at the scale of national market is
affected in many ways the product which is a proper herbal beard oil. There has to be
proper strategies to launch it and make an effective price of purchasing it. The number of
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target audience as relatable to the product launching is not that much. The company has
not formulated in present time. It will be created on grounds of these elements.
Growth in market: the product which is supposed to be launching in the coming period of time
need to learn about how does one crore and cistern in the current market situation. The basic
need for which arises is that literal growth in the market and demand of this product will keep
people in beach for buying it. Growth basically can only be accumulated once the product will be
launched in later future and less then only and assumption, can be created and demand supply
method will get applied (Gleißner, Helm and Kreiter, 2013).
 Trends of pricing: the prices are decided as per recession rates of country. An
entrepreneur has to be approached by looking at any opportunity of market. They have to
be effective in grabbing opportunities which will give a good hike in the percentage of
creating profit from the product. This includes the consideration of generating profit
through accumulating a probability of success rate and the exact or approximate cost
which will be involved and in the last the time period which will get involved for
commencing business. This gets a high level view of business market and assessing all
customers in the whole process. Organization have to think with and roll up to the
percentage increasing on maintaining much more potential in business.
 Numbers of competitors in market: this will effectively the marketing and pricing level of
herbal beard oil. They have to accumulate a certain percentage on which day can make
the launching program of product. Generally organization need to accumulate the exact
or approximate amount of profit which letter on shall not be negotiated. Airplane number
of competitors in market which can sneak out any opportunity beneficial for company as
well as personal development.
PESTLE Analysis: It has been analysed that before entering into the new marketplace it is very
essential for the management team to examine its whole market place. It is an effective
framework used by every organisation before launching new business venture at the competitive
marketplace. For this, Pestle analysis is used by the management team which are going to be
discussed as follows:
Political: This is the factor which includes all the elements related with politics which might
affect the overall performance of the organization. In the present context, it is said that

government policies related to herbal products support the company which help them in order to
attain their organizational goals.
Economic: It is the factor which says that economic condition of any country directly affects the
overall profitability of the company. In this context, economic condition of UK is quite strong
which help the organization in order to establish their new product at the marketplace.
Social: needs and wants of the customers highly influence the functionality of enterprise at the
marketplace. Therefore, it is essential for the management team that before launching herbal
beard oil at the market, requirements and demands of consumers need to be considered.
Technological: In the marketplace of UK, companies adopt highly advanced technology in order
to produce high quality products and services. In the present context of herbal beard oil,
managers use high quality technologies and effective raw materials so that they can produce
goods and services which help in satisfying requirements of customers.
Legal: Each and every country have their own legal policies which need to be followed by every
organisation while implementing new products at the marketplace. In reference to the present
context, managers implement laws which are related with safety and security of staff members.
This will help them in order to maintain long term stability if the company at the marketplace.
Environmental: In today’s world every person wants to secure the environment and expect same
thing from their organization. Therefore, in order to fulfil the requirements of customers
managers need to perform their business functions in such manner that they will not harm
environment while producing herbal beard oil.
Risk involved in industry: the primary risk involved for launching the oil of beard is generating
monetary benefits mostly they are not much returns in the beginning to 2-3 years of business
(Iazzi, and et. Al., 2015). The majority of risk involved includes since product will be launched
in later future there is no such estimate of how many products shall be produced plus the relative
demand of this particular product is in the market or not. Being an entrepreneur moral
opportunistic, launching send product will become a hectic schedule all the major decisions will
be taken by them.
 Creating opportunity of making products and services: the first skill and entrepreneur
while grabbing any opportunity relates directly to creating a new invention in rendering
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services for producing goods. Product of creating oil for beard is an innovative concept in
itself. It’s not always that any old idea will be raised served and presented in better
certainly entrepreneur and into business with their own set of ideas and concepts.
Opportunities such as, creating and effective product which is the need of market
studying the demand and cost of the product is not possible as it will be launched in later
future. Basic opportunity of creating and innovating any new service or product is main
objective of an entrepreneur.
Customer value proposition canvas
It is considered as one of the most effective business technique used by new entrepreneurs
with a belief that offering given by the company are positioned by the company satisfy needs and
requirements of customers. Thus, this is the model which provides assistance to attract large
number of customers which posssess the ability to fulfil the demands of individuals. Herbal
beard oil is the new product launch by the company in order to satisfy their requirements.
Looking upon this, entrepreneur who have developed herbal beard oil examine the
market and establish a positive and strong brand reputation among people.
Figure 1: Value Proposition Canvas

(Source: Value Proposition Canvas, 2019)
Element Description
Product:
Gain Creators
Pain Relievers
Product as well
as Services
 Product have unique quality of herbal material
 Appealing Benefits
 Pre ordering
 Effective Staff members coordination
 Regular interactions with customers
 Quick delivery which satisfy the requirements of customers
Value:
 Order Goods and services via online channel
 High quality material
Location:
 The venture is developed at the marketplace of United Kingdom
Target Segment:
 Youngster
 Models and actors
Different Offer from rival firms:
 Provide offers such as buy one get one free, yearly membership
and many more which will help them in order to retain their
customers for a longer period of time.
Customer
Gains
 Availability of products at affordable price
 High quality raw materials
 Pre ordering
 Not satisfying the requirements of customers by timely delivery
 Unable to meet the Expectations of customers
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Pains
Industry attractiveness
Industry attractiveness can be defined as the market which has potential and capabilities of
increasing the profit or return on investment of the firms carrying their business in that particular
industry. There are different kinds of sectors or industries such as automobiles, manufacturing,
medical, legal services and many more (McDonald, 2012). Before launching a product, it is very
important for entrepreneurs to conduct and analysis in order to know the attractiveness of the
industry with respect to that specific product. Herbal Beard Oil belongs to the manufacturing
industry which take into consideration demands of the people in order to gain competitive
advantage in the industry. It can be measured by using Porter’s Five Forces model. It helps in
determining the level of competition exist in the UK manufacturing industry. Industry
attractiveness been analysed through this model in the context of Herbal Beard Oil.
Porter's five forces is a model that helps in identifying the forces which affect the industry. Also,
with its use the weaknesses and strengths of an industry can be obtained. The same has been
applied for the new product Herbal Beard Oil, which is as follows:
 Threat of new entrants- There are many organisations which have the motive to expand
their business in an industry which is attractive and offer the required return. These can
range from small to large entities making plans and strategies to enter the market. UK's
manufacturing industry in the field of herbal or organic products is good and strong.
There are policies made by the government to support organisations for carrying their
business (Tsang and A. Finnegan, 2013). Some of the factors which affect force are
number of competitors, slow market growth etc. Herbal Beard Oil will be sold in the
form of retailing after manufacturing it in UK market. Furthermore, the rate of return on
the investment made by organisation is high due to which many entities try to enter the
market for launching products made of herbal ingredients. Since, people are switching to
two natural products which makes the UK manufacturing industry attractive and
competitive with entry of new firms.

 Bargaining power of suppliers- Suppliers all the organisation or individual which
provide raw material or input for transforming them into final products. There is cost
charged by the suppliers on raw material which affects the prices of final output. The
position of suppliers is on the higher side if they are present in limited numbers. In the
context of industry of manufacturing of beauty products, the number of supplies in the
industry is large. Which means that the enterprise making Herbal Beard Oil can switch
from one supply to another without incurring high switching costs. Also, it can get
suitable quotation of the raw material which is favourable for minimising the prices of
Herbal Beard Oil. There is no differentiation of inputs and the threat of forward
integration is there. It is beneficial for the organisation to negotiate with the suppliers in
order to get the required raw material and the cost provided by the enterprise (Nova,
2014).
 Bargaining power of buyers- Buyers are the people who purchase the goods or services
of the organisation by paying the prices. This is the way in which, entities make higher
sales and profit. UK manufacturing industry in which organisations are producing herbal
products have high competition as well as substitution or availability of similar products
by other organisations. This is the factor which has expanded the bargaining power of
buyers. In other words, there is high bargaining power of buyers in the manufacturing
industry of UK especially when it comes to beauty products. Customers look for products
which are of good quality as well as affordable. This has made all the existing companies
as well as the prospective entities to cut down their prices in order to retain the customers
for a long time.
 Threat of substitution- This is about the existence of similar products which are
provided buy more than one entity in the same industry. Generally, threat of substitution
is huge in case of personal care products which are made of chemicals (Dibb and Simkin,
2013). But, Herbal Beard Oil is exclusively developed by using herbs and oils to protect
and help beard grow without a touch of chemicals. This unique feature gives a dominance
to the enterprise to attract customers for buying its products without switching to other
organisations. Herbal Beard Oil can create a position in the marketplace in order to keep
the threat of substitution low for a long time. In nutshell, manufacturing industry in UK
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has this threat is very low every enterprise try to use innovation so as to create a separate
position.
 Competition- There are many organisations reducing same kinds of products or services
are known as competitors. This force is significant in influencing the pricing as well as
other strategies in order to survive in tough competition. UK manufacturing company has
number of entities producing herbal cosmetic products for skin care, grooming etc. Some
of the organisations are Green People, Aromantic, Weleda etc. Which can give tough
competition to Herbal Beard Oil. Therefore, it can be said that there is huge competition
in this industry that can affect the sales and profit of newly launched product. In simple
terms, the supply is greater than the demand in this industry as well as degree of
differentiation is medium which the reason for high competition is. Apart from this, there
are increased exit barriers which do not allowed the existing organisation to move out of
the UK manufacturing industry.
Target segment benefits and attractiveness
This domain is associated with looking at the market segment on a micro level. It takes into
account the market which the company wish to serve for selling the newly launched products our
services. The main reason behind this is to identify the segment which is likely to give huge
benefit from new item. Also, there should be continuous assessment of growth rate in the current
segment (Shani, Reichel and Croes, 2012). Entrepreneurs evaluate the attractiveness of target
market at micro level in order to understand where the new product might stand among already
existing goods and services. These are the internal things which are included in the strategies and
policies for launching a product. The target market and its attractiveness have been provided in
the context of Herbal Beard Oil which is as follows:
Customers- Every product or service is manufactured for fulfilling the needs and demands of the
customers with a view to provide them higher satisfaction. It is very important to choose the
right audience on the basis of information gathered from the research. Furthermore, the target
buyers can be categorised into different categories such as age wise, on the basis of location and
other demographics. In the context of Herbal Beard Oil, the targeted audience include men from
the age of 22 and above who has beard and are looking for chemical free herbal product (Bóo,
Rossi and Urzúa 2013). There are many people who are suffering from diseases or issues where
and they don’t house proper growth of facial hair. Therefore, those individuals are they prime

target customers for Herbal Beard Oil the enterprise is going to focus on the individuals
belonging to middle class to upper class as the prices are going to be little above the expectation
because of the quality present in the product. People who are willing to buy Herbal Beard Oil
without any negotiations are going to be approached through attractive offers and discount. This
is going to attract large number of customers so that enterprise can achieve the target sales and
profit (D. Alkire, 2014).
The pricing strategy to be followed for Herbal Beard Oil is going to focus on keeping the
prices economical for the target customers. Also, the prices can be modified in future according
to the growth and fluctuations in business environment. Primarily, the prices are going to be low
in order to attract customers. Also, strategies for pricing followed by different organisations are
to be taken into account before fixing a final price for Herbal Beard Oil. However, by looking at
the attractiveness of manufacturing industry in UK, the prices are likely to be started from 7.95
pound. This is the average price which the target audience can spend to purchase Herbal Beard
Oil.
The segment in this industry is basically the beauty products and personal grooming. As the
lifestyle is changing along with transformation in economy, individuals have started to spend
more on their appearance. Earlier, there were plenty of beauty products for women which were
available in different forms and bye variety of organisations because of the high profit margin
and never ending demand. The need for introducing exclusive products for men mem was
generated. Therefore, it can be said that team market segment is growing rapidly and bringing a
product which is chemical free may face certain difficulties at the initial level because of
resistance to accept the change by the people. But, as soon as the benefits of the newly
introduced product are reflected through reviews of customers, the profit and sales are likely to
be increased (Noe, and et al., 2017).
Competition is very tough in this segment because of its attractiveness which is achieved
through low investment that can give higher return. The segment is connected with other
segments as well which fall in the category of beauty or cosmetic products. The enterprise can
attain stability in this segment and focus on other segments after gaining experience. Herbal
products with premium qualities can be launched at later date for women because these are
covered in the same sector only.
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The customers are going to be made realise about the benefits of Herbal Beard Oil so as to
influence their perceptions. The problem of patches in the beard, facial hair falling, ingrown hair
etc. Have increased in last couple of years because of a healthy food, pollution, and similar
reasons. This is increasing extensively and can be seen in young people as well. The basic
perception of every individual is that high content of chemical in any beauty products which is
going to be applied on skin or have chances to get on the skin, is likely to damage skin. It is the
most common problem associated with chemical products and people spending and expensive
products containing chemical substance have failed to get desired results leading to lower
customer satisfaction. This is one of the main reasons, for launching Herbal Beard Oil which can
and have the capabilities to dominate the market. Also, efforts have been taken not to
compromise with the quality however the price can be slightly higher than the expectations of
customers on the basis of quality factor. Furthermore, strategies are going to be prepared for
sustaining in the market and this segment even in huge competition (Walsh and Dodds, 2017).
Herbal Beard Oil is likely to go under modification on the basis of demand and requirements of
customers. This is to keep Herbal Beard Oil a superior product in high demand as compared to
its competitors. The success of this product is going to increase the brand image by using which
business can be expanded to other geographical limits which can be outside the national
boundaries of UK. The main aim is to outperform the competitors by providing higher
satisfaction to the customers so as to retain the position and become stronger with the time.
Competitive and economic sustainability
This point is often overlooked by entrepreneurs. Every business should half competitive
advantage in order to sustain in the long run. It focuses on the activities or strategies of an
enterprise with regard to a new product which can match the level of competition prevailing in
the industry. It is again judged at micro level for assessing the position of the product or services
among other entities operating in the same industry. One of the main important elements is the
risk factor involved which should be managed properly so that adverse impact can be prevented.
There should be effective strategies which are appropriate for bringing the desired outcomes.
Herbal Beard Oil is a product of manufacturing industry which orphan face the problem of
damaging the environment. This can affect the sustainability of the enterprise in the competitive
market (Tomšič, Bojnec and Simčič, 2015).