Guinot's Business Plan: Growth Strategy for Organic Beauty Market

This report presents a business plan for Guinot, a cosmetic industry leader, focusing on its expansion into the organic beauty product market. The plan outlines the company's overview, objectives, and a comprehensive SWOT analysis to identify strengths, weaknesses, opportunities, and threats. A PESTLE analysis is included to assess political, economic, social, technological, legal, and environmental factors influencing the business. The marketing mix, including product, price, place, promotion, people, process, and physical evidence, is detailed, along with competitor analysis. A financial plan, including a profit and loss statement, projects the financial viability of the proposed business strategy, including internal capital and a bank loan. The plan aims to increase sales and profit margins by 25% and gain a larger market share by targeting a specific segment.

PLANNING FOR
GROWTH

TABLE OF CONTENTS
P4 BUSINESS PLAN FOR GROWTH...........................................................................................3
Overview.....................................................................................................................................3
Objectives....................................................................................................................................3
SWOT Analysis..........................................................................................................................3
Pestle analysis.............................................................................................................................4
Marketing Mix............................................................................................................................4
Competitors analysis...................................................................................................................4
Financial Plan..............................................................................................................................5
REFERENCES................................................................................................................................6

P4 BUSINESS PLAN FOR GROWTH
Overview
In the present era cosmetic industry is growing day by day, so for achieving competitive
advantage Guinot is planning to reflect its presence in organic beauty products. The wide range
of beauty care has been provided by Guinot Paris as it covers three specific categories such as
face, sun and beauty. It has expanded its retail operation in very perfect manner as today it is
considered as one of leading skin care collection which is usually available at every spa. By
considering trend of organic products and to satisfy the consumers Guinot paris is planning to
introduce organic beauty products (Business plan, 2018). As it is referred as small sized retail
business units, for growth perspective, profitability and sales maximisation has direct concern
with retail unit which is planning to introduce organic beauty products. For accomplishing this
objective, business entity can follow detailed plan which is mentioned below:
Objectives
 To increase sales and profit margin by 25%.
 To gain huge market share by targetting small segment.
SWOT Analysis
Strength
 Wide range of beauty care
 Renowned in cosmetic industry
 Huge expansion of retail operations
 Superior technology
 Capability to charge higher prices
Opportunities
 Greater innovations for producing
unique products and services
 Markets which are fragmented as they
have absence of cost advantages of big
companies.
Weakness
 Inefficient work environment
 Business risk is increased by weak
management
 Sales team is weak
Threat
 huge competition which will impact
profit margin

Pestle analysis
Political factors
 Strict guidelines
 European Cosmetics
regulations 1223/2009
Economic factors
 Recession resistant
industry
 Unemployment rate
Social factors
 Brand loyalty
Technological factors
 24/7 access
Legal factor
 Two major acts: The
Federal Food, Drug
and cosmetic Act and
The fair packaging and
labelling act
Environment factors
 No testing on animals
 Respectful packaging
and green-washing
Marketing Mix
7 P's Elaboration
Product Wide range of organic products
Price Penetration pricing strategy
Place Preparing attractive feed about organic products on website and word of
mouth by existing customers
Promotion Advertisement in newspaper, social networking websites
People Talented personnel
Process Standardised process
Physical evidence Website will be prepared in very attractive concept with feedback column
Competitors analysis
Guinot competitors Revenue Employees Products
Guinot 75.63 M (Euro) 348 Production of skin and

beauty care products
and Hydradermie
Johnson and Johnson
(skin care)
4.46 B 5550 Baby care products
L'Oreal S.A $29 B 78600 Make-up, haircare,
perfumes
Financial Plan
For identifying financial viability of business plan which is proposed, there is preparation
of profitability statement. It will clearly reflect the profit margin which will be generated by
organisation.
Internal capital: 30000 pounds
Bank loan: 13000 pounds
Profit and loss statement for proposed business plan
Particulars Year 1 Year 2
Total sales 100000 130000
Cost of goods sold 60000 81500
Gross Profit 40000 48500
Less: Operating cost
Salaries and wages 6000 7700
Promotional expenditure 1000 1750
Miscellaneous expenses 1500 2000
Maintenance cost 2000 3250
Interest expense 2500 2400
Depreciation 500 1000
Total operating cost 13500 18100
Operating income 26500 30400
Less: Tax @ 15% 3975 4560

Net income 22525 25840