H Care Solutions Business Plan: Canadian Market Entry

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BUSINESS PLAN
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Contents
Executive Summary.........................................................................................................................3
Mission Statement........................................................................................................................3
Company Description......................................................................................................................4
Market Research..............................................................................................................................6
Market Analysis...........................................................................................................................7
Marketing Plan...............................................................................................................................10
Company structure and human resource plan................................................................................14
Action plan and timeline................................................................................................................17
Financial Plan................................................................................................................................20
Conclusion.....................................................................................................................................25
References......................................................................................................................................26
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Executive Summary
The report is based on the formation of a business idea and its application in the overall aspects
of business growth in an organization. The company that is taking is H care solutions that make
various herbal products such as shampoos and oils with basil being their main ingredient. Basil is
pant with herbal leaves that can be eaten and applied to the skin as well. The impact of basil can
be seen while using shampoos as it makes the scalp healthy and avoids the occurrence of many
inflammatory diseases and skin infection on the head. The need for basil is there in order to make
effective changes in the global aspects of development. The market that has been covered for the
business expansion is the Canadian market. This market has good buying capacity and they are
open to various new products. H care solutions have been planning to deliver effective herbal
shampoos in this market and for that, the following business plan has been made.
Mission Statement
The aim of H care solutions is to expand the good features of basil and reduce the impact of
stress and work pressure on the wellbeing of an individual. The initial target population is
women but the company is open to spread the effective impact of these to the various segments
of the Canadian society. The company as a whole believes in the overall development and
effective processing of the global needs of an individual and make effective changes in the
products to suit customers needs.
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Company Description
The company H care solution is based out in Canada. The positive component of the company is
the application of herbal products and making products out of herbal ingredients. This company
has been initially doing business in Canada and then it eventually moved to other parts of
America and on the global market as well. The company has a good and varied customer and
retailer base that has been buying its products for a very long time. Many small and big retailers
have been selling its products because of the quality of their products and services. The company
has always had a clean and clear business attitude towards all its users.
Company’s Goals
The goal of H care solutions is to identify an effective business plan and formulate effective
policies that are needed for the overall achievement of profitability and a net gain for the
company. The company has been aiming to enter the international market and explore the
opportunities there. The major market that has been taken in the case in the Canadian market.
The other aims that the company wants to achieve are:
 Create a sustainable and loyal customer base throughout the globe
 Be the market leader of herbal cosmetics and values
 Develop customized versions of the products and cover the variety needs of customers
associated with the company
 To resolve most common and most persistent hair issues like hair fall, dandruff, and
fungal infections.
 To have a respectable position in the Canadian market in FMCG products.
Product & Service
The major products that the company offers include a wide range of shampoos, conditioners,
herbal oils, and other therapy products that are not only for hair but for other parts of the body.
The major ingredient in all is Basil and apart from that, there is a combination of a variety of
essential oils and herbs in these products. Some of the herbs are Amla, Aritha, Mahendi,
Bhungarj, Nim, Tulsi and Water. All these ingredients are mixed into various calculative
combinations in order to have more effective output from the cosmetics. This company has been
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serving in various customized product based division that can be used in the global needs and
product development features for an individual.
Current Status
Currently, the company is operating from Canada where they have their major division of
production and sales. Apart from that, there are around 100 countries to whom the products are
being exported. They even deal in online selling of products and services that have been used in
order to make sure effective development of overall customer satisfaction. The ownership of all
the major sights are with Canada but the shares partnership has been distributed among various
owners in other countries.
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Market Research
The development of Canadian industry is a combination of various business opportunities that
have been collected by the industry. This has made the country adaptive and open to various
other features associated with the industry.
Industry overview
The cosmetic industry grew from +9.4 percent to $1.13 Billion in the last few years. The leading
business drivers were the skin care products that increased from $409 Million to $485 Million.
The skin care has been one of the major focal points for the consumers and retailers that are
involved in the herbal and all-purpose skin care products. Customer is also very versatile in order
to try new products and new brands in Canada (Burns & Dewhurst, 2016).
Industry Size and Growth
In Canada, the industry size is around 500$ million and the consumers are around $1.13 billion
every year the need for cosmetics increases substantially thus increases the competition. Form
Toronto to Calibri the industry has been developing in terms of import, export, and
manufacturing. The Canadian Trade has become one of the booming process and major growth
aspect for the development of demands in the cosmetics and personal care products. The supply
chain for Canadian personal care products and services has also increased substantially and so
has the overall growth of the company. The cluster of partnership has introduced innovation and
competition in the industry.
This has been helpful to generate the data of the Regulatory Information on Cosmetics. This has
increased the competition to another level thus increased the number of participants in the
Industry Events and Workshops. This has developed a wide network of various cosmetic
industries associated with the same. The industry has substantially developed its e-commerce
market as well. This has reduced the gap between the seller and buyer and Canadian buyers are
very much influenced by online shopping and retailing. The industry has a very high level of
competition and a huge range of products for the consumer to buy from thus H care is needed to
be very careful in framing their strategy (McKeever, 2016).
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Industry trend
The cosmetic industry has been evolving ever since it came into the picture. The industry is now
moving more towards natural ingredients and greener products. L’Oreal’s Garnier Whole Blends
these are the brands that have been switching to more natural products. The customers
themselves are more involved in the natural products rather than chemical based products thus
the same has been one of the growing preference for all. There are 3700 small and big cosmetics
brands in Canada and each trying to penetrate the market with maximum innovation and market
sustainability. The increase in a number of beauty products and saloons has been using an
effective number of these products (Finch, 2013). The industry wants products for long term
effect not just short term impact of the current needs. This has been expected in the future that
the industry will support only those companies that have maximum natural ingredients. With the
increase in the young population and the diversity in their choices, this can be seen that the
cultural benefits of the industry have been affecting the global exposure and demand benefits of
an individual. Customers looking for effective and sustainable hair treatment has increased with
a sharp rate thus affecting the overall demands of an individual. This has been seen in the process
that the overall needs of the customer's changes with the cost offered and the routine they have
been following. The hair segment for men has also developed substantially in the last few years
thus increasing the demand for hair care products. This has also increased the demands of the
products.
Market Analysis
Target Market
The target market for H care has been taken in a wide range that mainly includes women but also
includes men and children that are having hair issues and those who might want to just maintain
the quality of their hair. The target market also includes all the retailers that have been
distributing services of cosmetics. The company has also targeted various other distributes and
market specialist that has been using these services in order to make sure the buildup of the
customer base is effective and well structured. This can be seen from the process that the
development of the overall behavior of business is based on the right target population selected
in the way (Stutely, 2012).
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Competitors
The major competitors are L’Oreal, Garner, Mac and other global international brands that have
been using these services to develop a strong consumer base. These competitors have been
having an age-old monopoly in the market which has made many small scales and medium scale
industries struggle for their resources. This has been seen in this tough competition of Canada
that the growth of the company is very much dependent on the competitive values and features
offered by the company. This will define the future development of the company’s sales in the
current scenario (Barrow, et. al., 2012).
Market competence
Most of the people around the globe have been facing major hair-fall and hair infections issues
that have been affecting the overall needs and the demands associated with the products. H care
solutions are needed to be more involved in the global aspects of the market. The company is
needed to make price specific and consumer-friendly products that can be used in order to deal
with the development of overall customer demands. There is a need to hire effective
professionals and develop an effective process that can be used in the global context of the
company’s growth. The company can stand apart from other companies by focusing on the true
nature of natural products and ingredients. This has been seen in the current form of market that
the innovation can only be sustained if the originality of the products is maintained in the
process.
Products offered
The major product that has been offered by the company includes hair care products like
shampoo, conditioner, oil, and serums. Apart from that, the company deals with other spa and
bathing products also like bath salts, soap, and other aroma based products that are used for
muscle relaxation and study. Apart from that the company also deals with a number of
customized products that are based on the special needs of the customers in order to make sure
customer retention in sustained and well established. The specifications of the products are well
structured and well established in order to deal with the needs of the consumer and make
effective sized bottles and provide the effective quantity to deal with these issues. These products
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are available in sample size as well as consumer durable size that can be used in order to develop
faith in the product (Hiduke & Ryan, 2013).
Production process
The production process of the company is very simple with less number of operations and
ingredients involved in the process. The concept of the company is simple that is to deliver easy
and original products with least generated efforts. The process initiates with collective effective
ingredient’s for the shampoo in this case which is basil, washing and storing it to maintain its
freshness and effective. Boiling with desired minerals to sustain its qualities, adding required
preservatives to deal with the heat, transport and time duration, and then finally storing them in
the decided containers of required sizes (Wallace & Webber, 2017).
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Marketing Plan
Market Segmentation
The market segmentation of H care solutions has been done on the basis of four major
components that are being taken to establish the business structure. Based on the same the
positioning of the products has been planned in Canada. The geographic needs say that the
country is mostly cold thus the need of basil based shampoo is there. The demographics say in
Canada are of various age and financial structure thus the products are made available in various
sizes. The behavioral components are also favorable as the response to the available products is
well aligned. This can be seen in the process that the overall development of market segments is
well accepted and can give slow but permanent growth in the future aspects of the business
(Kusumaningrum & Hidayat, 2016).
Customer Profile
Form the various above mentioned principles this can be said that in Canada the customers are
well educated and well accepted to the products thus the same was taken into consideration while
profiling the customers. The major segment that has been focussing is the women segment as
they are the ones that are most involved in the overall cosmetic and toiletries business. Next
segment is male, with growing stress and self-grooming needs the overall need to have healthy
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and nourished hair is very important. Another segment is the low income group. Thus the
company has been focusing on the sampling of the products and introducing small packages and
pouches of the products to be afforded by all of them (Simón-Moya & Revuelto-Taboada, 2016).
Target Positioning
The designed market has been targeted in order to deal with an effective categorization of the
products and services that are used in order to identify the correct market and provide them with
the correct cost. The criteria of effective market size were firstly targeted on the basis of the size
of the population that has been available in the market. This was seen in the current market of
Canada that the population is relatively less and is scattered in the whole geography thus the
same is needed to follow in the absolute development of positioning of the products. Another
segment that has been taken for the issue includes the difference in each segment as the profit is
made as per the applicability of the same in each geographical unit based on an effective
understanding of the same in future. This can be seen in the process that the overall profit margin
is based on the global needs and the anticipated amount that has been invested in the process
(Baker, 2014).
This depicts the return that has been expected from the overall report and its segments. The
accessibility of all the locations was also measured in order to make sure all the locations are
well accessible for the company and their effective personnel involved. This is needed to be well
understood and well arranged by the company in order to have an effective understanding of
global needs. The positioning of the products has been based on the needs and the demands of
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the customers that have been targeted based on the economic status and the expenditure features
associated with the same. This will be an effective measure to deal with the filling of subsequent
gaps in product positioning (Kumar & Rajan, 2012).
Marketing Mix
Marketing mix
Marketing mix is an essential and important aspect in the today’s dynamic market environment
as it assists in the authority concern of the H care solution to have the suitable knowledge and
understanding on all the factors that will promote the sale of their product in the Canadian
market (Priya, et. al., 2016). Further provided, these factors will also assist in the authority
concern in making suitable decisions with respect to the formulation of the strategy for the
promotion of the product. With the implementation of the marketing mix, the H care solution can
focus on the following factors that will provide a suitable framework for further decision
making. Some of the factors in this regard majorly include:
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