Comprehensive Business Plan: Fresh Glow Cosmetics' Organic Products

This business plan for Fresh Glow Cosmetics outlines a strategy for launching an organic makeup and skincare company. The plan includes an executive summary, product overview, and rationale for the business idea, emphasizing the benefits of organic products. It incorporates a literature review analyzing industry trends, customer decision-making factors, and various sales strategies, including distributor relationships, online sales, and customer experience. The research methodology details the research type, philosophy, approach, and data analysis methods. The plan also includes PESTLE, SWOT, and Porter's Five Forces analyses, competitor analysis, marketing mix, and risk management strategies. The data analysis chapter presents findings from primary data collection. The conclusion and recommendations summarize the study's outcomes and suggest strategies for increasing sales and achieving business objectives, including resource and funding requirements and critical success factors. The plan highlights the importance of social media and digital marketing for promoting the brand.

Business plan.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
Executive summary.....................................................................................................................1
Overview of the products or services..........................................................................................1
Rationale of business idea...........................................................................................................1
Aim and objectives......................................................................................................................2
Theoretical Framework...............................................................................................................2
USP.............................................................................................................................................2
Structure of business plan...........................................................................................................3
CHAPTER 2: LITERATURE REVIEW ........................................................................................4
Trend takes place in UK cosmetic sector ..................................................................................4
Factors that impact customer decision making in relation to purchasing of cosmetic products
.....................................................................................................................................................4
PEST analysis ............................................................................................................................6
SWOT analysis ..........................................................................................................................7
Porter five force analysis.............................................................................................................8
Competitor analysis ....................................................................................................................9
Marketing mix...........................................................................................................................12
STP approach ...........................................................................................................................13
Risk management plan .............................................................................................................13
Operation management plan ....................................................................................................14
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................18
Research Type:..........................................................................................................................18
Research philosophy.................................................................................................................18
Research Approach...................................................................................................................19
Data collection..........................................................................................................................19
Sampling...................................................................................................................................19
Data Analysis............................................................................................................................20
Validity and reliability..............................................................................................................20

Limitation..................................................................................................................................20
Feasibility ................................................................................................................................21
CHAPTER 4: DATA ANALYSIS................................................................................................25
CHAPTER 5: CONCLUSION and RECOMMENDATION........................................................46
Conclusion ...............................................................................................................................46
Recommendations.....................................................................................................................47
REFERENCES..............................................................................................................................49

1

CHAPTER 1: INTRODUCTION
Executive summary
This study has evaluated that, business idea is considered to be very feasible in order to produce organic products and services
within the industry. This study has examined that, business planning is done by internal business planning, feasibility business plans,
financial and operational budget plan and growth business plan. Furthermore, this study has demonstrated, implementing strategies
which are considered to be similar to their competitors, unique advertising and promotional techniques, marketing campaigns, etc.
helps in increasing sales within cosmetic industry. Furthermore, it has been examined that, strategic planning, practical planning and
action planning are considered to be the key tools to attain objectives of the business idea and gain higher sustainability. Furthermore,
this study also determines that, social media platforms like Facebook, Twitter, Pinterest, Instagram, LinkedIn, YouTube, etc. tends to
have significant influence on the sales of the company.
Overview of the products or services
Fresh Glow Cosmetics tends to offer range of organic make-up and skin care cosmetic products. Range of make up products
like mascara, lipsticks, blush, foundation, Pure lash conditioner and extender, eyeshadow, etc. It also tends to offer various skin care
cosmetic products like skin cleanser, hairstyling products, cologne, perfumes, shampoos, body lotions, creams, conditioner, etc. Fresh
Glow Cosmetics also offer online services in order to provide cosmetic products at the doorstep of the customers. This aids to ease and
greater convenience to the customers.
Rationale of business idea
Business idea associated with the production and manufacturing of the organic cosmetic products by Fresh Glow Cosmetics is
considered because it is much beneficial for the environment and the customers. This in turn results in use of cosmetic products which
tends to contain lower chemicals and free from any contamination. Most of the organic skin care products are made up of active
ingredients which helps in providing various skin benefits and advantage to the customers. Organic cosmetic products are very
beneficial because it results in less irritation and vitamin nourishing skin.

Aim and objectives
Aim: To investigate the procedure of increasing sales in a new business organization through effective business planning. A case study
on Fresh Glow Cosmetics.
Objectives:
 To identify the various methods of business planning which would help in establishing the new business.
 To analyse the cosmetic industry and select the best sales strategy for Fresh Glow Cosmetics.
 To ascertain the potential challenges and competition in increasing sales for the company.
 To recommend the best strategies and methods for improving sales of the company.
Theoretical Framework
The Theoretical Framework is referred to as the interrelated theories and concepts which in turn is considered to be very useful
in measuring the statistical relationship in order to attain aim and objectives of the study. Disruptive Innovation theory tends to
describe a process where the products and services are priced very low and has been applied in the lower market. Further, it tends to
eventually move upwards in the market (Connolly and et.al., 2019).. The company tends to focus on more innovative marketing
campaigns where the consumers tend to know more about the products and services offered. Advertising Theory for Cosmetics
tends to focus on the bigger picture which focuses on enhancing the internal needs like safety, love, belongingness and self- esteem.
This theory is considered to be very useful in addressing questions like best approach to enter the new market, effective strategies for
improving sales in the cosmetic industry, determining the various potential challenges to adopt strategies in order to increase sales.
This in turn helps in providing cut throat competition by touching the heart of the customers with advertisement.
USP
The unique selling point of the Fresh Glow Cosmetics is that it tends to engage in producing organic skin care and make up
products at a competitive price. Fresh Glow Cosmetics also tends to get engaged in effective distribution and promotional activities
with the help of social media networks and digital marketing in order to make people aware about the products and services offered by
2

the fresh Glow Cosmetics. Another USP associated with the fresh Glow Cosmetics is that, it tends to offer products and services
online at the door step of the customers in order to increase sale and gain higher profit than its competitors.
Structure of business plan
The chapter structure of the specific business plan mainly consist of the outline of the particular business plan.
The introduction chapter tends to include the executive summary of the study. It also demonstrates the brief explanation on the
overview of the products and services offered. The introduction chapter also includes rationale of the particular specific business idea.
Moreover, it includes aims and objectives of the study with the unique selling point of the business idea.
The second chapter consists of literature review where various themes associated with the aims and objectives of the study has
been critically evaluated by taking into consideration viewpoints of various authors. This chapter also includes PESTLE analysis,
SWOT analysis, Porter five force analysis, competitor analysis, marketing mix, STP approach, risk management plan, Operation
management plan and Business canvas model.
The third chapter addresses research methodology where it helps in selecting the appropriate qualitative research methodology
tools associated with the research philosophy, research methods, approach, design, data collection, sampling, data analysis, reliability,
limitation and feasibility.
The fourth chapter mainly includes data analysis and findings where primary data is carried out with the help of questionnaire.
This chapter includes sources of getting competitive advantage and sustainability aspects and also selection of strategies for success.
The fifth chapter mainly constitute of conclusion and recommendation where it helps in summarizing the various outcomes of
the study in order to attain specific aim and objectives. It also includes resources and funding requirements and critical success
factors. Furthermore, it also demonstrates future management strategies for getting success.
3

CHAPTER 2: LITERATURE REVIEW
Trend takes place in UK cosmetic sector
An overview of the cosmetic industry in the European Union as compared to other countries is high as the it has been revealed
that the market size of Europe is majorly large because of its larger population. Among the countries of EU, Germany is having the
largest market share in the cosmetic market valuing as Euro 11.7 billion that is been followed by the France, UK, Spain and Italy
(Datta, Ailawadi and Van Heerde, 2017). Moreover, in the future it has been anticipated that the business of cosmetic industry would
be growing with a higher pace in Malta and the overall Europe as people are becoming more and more sensitive and conscious in
relation to their skin and beauty products.
Factors that impact customer decision making in relation to purchasing of cosmetic products
As it could be expected in the vast region with the different cultures and the traditions like EU, unique level of trends in the
purchasing the pattern had been found in the specific countries and some of the common trends across boards. As in today's world
there is a growing concern regarding the skin cancer and an exposure to the harmful rays which in turn has led towards more and more
use of the skin care products. Anti-cellulite and the Anti-ageing cream are seen as higher in demand within the aging population in
developed countries (Liu and et.al., 2017). This acts as the major factors which highly influences the consumer buying behaviour in
respect of the cosmetic industry.
Methods of increasing sales in cosmetic industry
As per the view of Huang and et.al., (2018), contact with distributors is the best strategy to increase sales. In this distributor are
supply products of company to stores and retail shops. This is very important for cosmetic industry to build positive relations with
distributor are provided fast delivery services. Business volume will rise quickly, if that is able to get some wholesale distributor
interested in company business products. Many of the retailers prefers buying their inventories from wholesalers rather than
purchasing directly from companies or individuals manufactures. This help to sales products will be much greater than compared to
selling at one store. With the help of this cosmetic companies are able to distribute their products at stores and wholesaler for increase
4

sales. This is very best and effective strategy and method to increase sales within the cosmetic industry. On the other side Simpson
(2017) stated that generation of online sales is another method of increase sales and effective ways to promote their cosmetic brand is
to put it on the web. The new business need to start online sales of product and services. The present days can be called as the social
media days because most of the people and youngster spends more time on social media or get updates about product and services of
company. Through that they have proper and effective knowledge and details of product with price details. With these customers are
taking updates of new business from online and social media platform. This very best and effective strategy and method for starting
new business and increase sales of company in effective manner.
Another author Coursaris and Van Osch (2016), argues that for the new cosmetic business it very important to contact with
independent with sales representatives. Most of the small business owner try to sell their products on their but fail because they have
not any idea of marketing their products and services in effective. In that, new business can contact with them and make deal to sales
their brand products in their shops. This creates more contacts with various retail stores, and they can help in placing products in big
stores. This is very important and effective method and strategy to increase sales of new business at market place. Augusta,
Mardhiyah and Widiastuti (2019), cited the creating an atmosphere and experience for customers. Beauty giants are help to create an
atmosphere which keep customers coming back. Walk into one of their stores and notice the flattering lighting, clean lighting,
beautiful surface and well organized products in store is help to attract more customers. This is very important and effective for
management. Like when the people are entered into cosmetic store and supermarket, they wanted to feel pampered and special. The
atmosphere and quality of products branding helps to create that the feeling. This creates wonderful experience of customers and
through that customers are highly required to maintain goals in effective manner. This strategy and method is also effective and best
for proper management at workplace.
As per the view of Morais (2017) consider subscription services is the often feature some smallest cosmetic brands in their
bags rights alongside bigger name companies. This includes in their one product which could reach people never be able to connect
with own. With the help of this customers are highly attracted and motivated to purchase products and services from new business.
5

Through that new cosmetic business is highly able to increase sales of products by offering the best quality of products and services in
effective manner. This is a very important and effective values to create great working and increasing sales of product. As well as they
also provide the three beauty product launches ideas for new business. The new cosmetic business is come out with a new product or
line, the success of products launch influences the long offer product, price and whether not customers make a purchase. The three
ideas help generate higher and more sales are marketing, follow the experts and special customers services. Those are help to sales
more profit and effective brand image at market place in effective manner.
PEST analysis
The cosmetic industry is diverse, comprising more than just make-up and skin care products. The new cosmetic business supply the
tools to improve the appearance and sales of products and services in effective manner.
 Political factor: Product safety is a hot topic in the UK. It is more openly discussed in the cosmetic segment of the beauty
industry since these products are designed for skin to skin contact. Tax rate policy can affect to business in negative and
positive manner. Tax rate of product is increase than price of product is also increased which affect to buying behaviour of
customers. On the other side, it decreases than price of product is lower which help to attract more customers towards business.
 Economic factor: The economic factor have a significant impact on organization and cosmetic business because it is the quite
resistant to economic recessions. The economic growth of company is most effective and valuable for business to maintain
their services in effective manner (Rastogi and Trivedi, 2016). Economic growth of country is better than it is help to survive
company at UK in proper manner. This creates more effectiveness for business to gain more profits at workplace.
 Social factor: Social factor is more effective and valuable for business which can be affect to business in negative manner like
skin care, nail salons, hair styling, plastic surgery. Change in preferences of customers needs are affect to sales of cosmetic
industry both ways negative and positive. If customers are not like quality of their products than it creates negative impact
because they are not buy products from company and create negative impact.
6

 Technological factor: The technological factor is highly affected to business in negative manner because most of the
businesses started online business to sales their products and services in negative manner (Perera, 2017). On the other side,
businesses are used protected sites to sales products than customers feel protected and purchase more products form company.
SWOT analysis
Strengths- Fresh glow cosmetic is found as the largest beauty or cosmetic company across the UK. As the other companies
emphasize on selling personal care and the cosmetic products, however, Fresh Glow brings focuses on producing organic beauty
products as well and this acts as the phenomenon success of the firm in this segment. Fresh Glow cosmetic seeks for continuous
research and development for the purpose of ensuring safety of its consumers and also tries for innovating new beauty products with
natural ingredient. It focuses on maintaining higher quality of its products which acts as its main strength that in turn attracts large
customers towards the product. The distribution network of the Fresh glow would be seen as wider that is mainly in Malta and the
overall UK. This leads to an economies of the scale and sharing of the fixed expenses such as factories, warehouses and the others.
One of the most important segment where this cosmetic company will be taking a hit is its decision regarding being as completely
organic and the natural in the nature. It would be selling the beauty products that are organic in nature and are made of the natural
ingredients.
Weaknesses- Too much of the sub divisions and wide variety of the products offered creates confusion in the minds of the
customer relating to buying of the product and this in turn hamper the sales of the firm. The hair care products would be seen as the
de-growing segment of Fresh Glow Cosmetic because there seems to be a lot of competition in this segment and the firm did not
provide for an effective strategies in relation to its hair care items (Swot analysis of cosmetic industry, 2018). Huge investment made
in the R&D, massive expenses and the organic processes of the distribution shows that the profit margins of the Fresh Glow Cosmetic
are counted as bit lower in comparison to its rivalry.
Opportunities- Market potential of the cosmetic and the beauty items seems as growing which acts as the great opportunity
for Fresh Glow in establishing its cosmetic business by developing organic products. Expansion of the product in the future is also a
7

greater opportunity for the company by which it would introducing the new products that would result in entire expansion of the
product mix. As the Peta and the other animal right activist are becoming more and more active which shows that demand for an
organic cosmetic is rising. Online and social media websites are also counted as the opportunity for the firm so Fresh Glow would
have to focus in e-commerce business by providing online servicing and delivery to its consumers with appropriate prescription and
the detailed information about the product.
Threats- The nature of the cosmetic industry is seen as dynamic with a constant evolution that is been demanded within the
cosmetic industry. Coping and being updated with the time is considered as very much difficult as with changing trends preferences of
the customers also get changed. There present an intense competition in the cosmetic industry which causes a huge threat on the Fresh
Glow as it directly affects its sales and the profitability in the overall market.
Porter five force analysis
This section represents the detailed porters five forces analysis of the Skin care and the cosmetic industry. The firm that would
be operating its business under cosmetic industry having a wider range of the products that are commonly been used by customers.
The topmost brand in the cosmetic and beauty industry uses this model in making the analysis of their business within overall
industry.
New entrant threat- Cosmetic industry are the competitive industries and attracts more and more new entrants who strives for
capturing the market share. This results to fall in profitability of the existing firms. There are large number of the entry barriers in an
industry and higher economies of the scale by an existing players (Porters five forces, 2018). Huge capital is required for establishing
the manufacturing set up for a cosmetic business. Gaining an access to the distribution and an expected retaliation is also counted as
the barrier and an access for requiring an inputs for the manufacturing is not seen as very hard or tough.
Substitute threat- There exist mainly two substitutes of the skincare products that includes home remedies and the other
skincare products that are home-made with the use of natural ingredients like herbs, oils for protecting and rejuvenating skin. Such
8