Market Research Report: Supplying Rose Oil from Bulgaria to England

This report presents a market research analysis focused on the business opportunity of supplying rose oil from Bulgaria to England. It begins with an introduction to the rose oil industry, highlighting Bulgaria's prominence in rose oil production and its applications in the cosmetics industry. The ...Read More

MARKET RESEARCH
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Table of Contents
INTRODUCTION...........................................................................................................................3
A) Viable marketing related research on business for the supply of rose oil from Bulgaria to
England .......................................................................................................................................3
B) Literature review on issues to determine the issues ...............................................................5
C) Three smart research objectives..............................................................................................6
D) Ways of collection of Data to address research objectives along with research Methodology
......................................................................................................................................................6
E) Gantt chart or Timeline of project...........................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9
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INTRODUCTION
Before starting a business, there should be some valid market research pertaining to the
market as well as entire industry (Finch, 2013). The present report is going to deal with the
business idea of supplying of rose oil from Bulgaria to England. The objectives of business is to
investigate into rose oil industry of Bulgaria as well as to find out the feasibility of business idea
of supplying rose oil from Bulgaria to England. The rose oil is used in the cosmetics industry for
the production of Shampoo, shower gel, face cream, essential oils and many others. For this
regard, a market reach is going to be carried out along with section of different research
techniques.
A) Viable marketing related research on business for the supply of rose oil from Bulgaria to
England
This business idea is for the supply of rose oil from Bulgaria to England. Herein, the
research indicates that oil rose is a symbolic plant species for Bulgaria. The country is well
known for large scale commercial enterprise production and the best quality of the produced rose
oil. The quality of rose oil and the methods of production of quality rose oil is well known to the
world. From a long run but it has been evident that Bulgaria is the best producers and seller of
rose oil. Many of countries are dependent on Bulgaria for rose oil. However, the product, rose oil
is the most expensive raw material that is used to design cosmetic products but it is still is
demand by the producers because it increases the quality of products.
There are many countries to which Bulgarian rose oil is exported. Following table
represents the importers of rose oil:
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England's cosmetic manufacturing companies have specific need in regard to rose oil for
the production of cosmetic goods. However, the prices of rose oil are too high and it can be
purchase in affordable prices just only adopting bulk purchasing. As per the predication made by
rose-growers and rose oil producers, the expected size of rose plantations in Bulgaria could be at
least 1500-2000 kg on annual basis. Nonetheless, the adoption of efficient production practices
would be used for making further development in rose industry.
B) Literature review on issues to determine the issues
The reports herewith is based on a business idea of supplying rose oil from Bulgaria to
England. However, the market of rose oil is growing day by day but it is riskier to enter into the
market without having a proper market research. The investigation is going to identify the issues
that may be faced in the market of England. The investigation conducted by Jones and Penaluna,
(2013) evident that the production of oil rose is seen fluctuated in past years that will significant
affect the supply of sun product. As a new venture is coming with an idea of supplying rose oil
from Bulgaria to England then , it has to face issue regarding to availability of rose oil. The
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Illustration 1: The main destinations for Bulgarian rose oil export
(Source : (Kovacheva and Rusanov, 2015)

fluctuating figures of rose oil production is the major factors that can be emerge as an issue as
there may be not available the sufficient quantity to export to the other countries.
Due to presence of transportation issue business has to face large number of challenges
where it is required to take corrective actions in advance. Further, other transportation source can
also be considered by business for its benefit but it is required for business to determine which
source is cheap as adopting most appropriate transportation source will support business in
enhancing its overall performance where product can be transported in short period of time and
this can save overall cost.
Previously, the largest part of harvested rose flowers within Bulgaria was used for
manufacturing rose oil. However, in the preset era, 90% of rose flower are used to produce rose
oil in Bulgaria. According to the market research, it has been witnessed that annual production of
Bulgarian rose oil was 870 and 2000 kg in last 15 years (Kovacheva and Rusanov, 2015). The
fluctuation in production of rose oil is due to unfavourable climate conditions. The rose oil is
directly to sell in the markets however, producers and suppliers have strong connections through
out supply chain (Benefits of rose oil. 2014). According to the given information the business
idea is of supplying rose oil from Bulgaria to England. The supplying industry of Bulgaria is not
as popular as there are many loopholes still the supply of rose oil is done to the other market to a
prominent way. The data indicates that supply contracts are the major factor that defines the
success of business idea.
The application of secondary information has presented that the rose oil is used in the
cosmetics industry for the production of Shampoo, shower gel, face cream, essential oils and
many others (Rose oil production in Bulgaria. 2014). This is the main reason that defines the
need of rose oil to the industry. It has been stated that the researcher is going to identify the
feasibility of business idea therefore, a market research plan is going to be carried out. This
business is of supplying the products from Bulgaria to England but the feasibility of this business
plan depends on the various factors that are going to be investigated in this marketing research.
The rose oil producer country is going to earn increased competitiveness by the means of
reducing production costs. The cost of production in rose oil industry is witnessed to be reducing
by using effective techniques, then it will be easier for provide the product at the ever low cost.
The supply of the product is going to be a issue for the business idea for which major idea are to
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be identified. Business planner is going to be identified the feasibility of this business idea by the
means to collecting primary and secondary information. The industry is going to introducing
superior quality that is going to enhance the competitive advantage of industry. In addition to
that the volumes of organic rose oil is also going to be increased by the industry (Rose oil
production in Bulgaria. 2014).
In addition to that, Kovacheva and Rusanov (2015) represented that rose oil is too
expensive and the rose oil industry of Bulgaria is having higher production cost which is the
major factor behind the increased price of rose oil. For a supplier, it will be costlier to transport
rose oil to England and it would become difficult to get hinger products from this business. The
demand of rose water in England is the major factor that affects the business idea of new
business. In the investigation conducted by Kovacheva and Rusanov (2015) presented that
perfume and cosmetic industry of England is going to have cheapest way to produce cosmetic
products because the consumption power of people have been reduced and they are demanding
for cheaper and low priced quality products. The business owners assume that it can be only
possible through making the production cost as low as possible. The investigation presented that
cosmetic industry of England is moving towards low cost raw material but rose oil is a expensive
products. This can be seen as the problem that could be faced by new business (Perfume &
Cosmetics Manufacturing in the UK: Market Research Report, 2015).
Furthermore, the investigation conducted by Jones and Penaluna (2013) stated that major
challenge to the rose industry is of increasing volume and proportion of the produced organic
rose flower and oil. The rose oil industry of Bulgaria is also facing such issues however, it is
required to have a proper research. Further research will help in identification of major issues
and defining what are the major which can be taken to overcome those issues. Nonetheless, it has
been investigated that the market is steadily growing market demands for organic rose flower
and oil during the last decade. This clearly means that the use of organic products among people
in increasing and the scope of firms which are manufacture rose flower and oil is very good in
future (Rose oil production in Bulgaria. 2014). The production of organic rose flower and oil
requires adoption of new rose growing practices, separate harvesting and processing of the rose
flower. The new practises of growing rose are not easy and requires a lot of time and efforts.
Further the process of separating harvesting will also consume a lot of time (). Another issues
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that can be faced by the business owner is related to export rule and regulations. The government
and other regulatory authorities have developed strict rules and laws regarding export which are
required to be addressed. In case if the rules and not followed then it may happen that the
businesses needs to pay heavy fines, duties and penalties.
It has been witnessed that the industry is going to have variations in production of rose oil
that impacts the availability of products and affect the suppliers. There are some of the gaps that
affects the business and can turn into the issues of business. Companies are required to identify
all these gaps and then are also required to take corrective steps to overcome or fill these gaps.
This will help in increasing sales and will also support in growth and development (Al‐Roubaie,
2010). The manufacturers of cosmetic industry are going to evaluate the prices of rose oil that
will also affects the business. In case of the prices of rose oil increases then it will results in
increasing the overall cost of the cosmetic products. The increasing cost will lower down the
sales as well as the profit margin of producers. Furthermore, it significantly impacts revenue as
well as profit.
The country is going to adopt effective techniques for improving the quality of rose oil.
The establishment of new rose plantations is not the solution of rose oil sector. The present
business idea is of supplying rose-oil in England however, it is quite important to identify the
demand of rose oil in the region (Rose oil production in Bulgaria. 2014).
Within England, it has been witnessed that Perfume and Cosmetics Manufacturing
industry is expanded over last decades, instead of being a mature industry. Nonetheless, the
manufacturers have been shifted to alternative goods for manufacturing so that products can be
sold at lower prices while reducing cost of production (Perfume & Cosmetics Manufacturing in
the UK: Market Research Report, 2015). The purchasing power of consumer in England have
been waned and the customers are looking for cheaper alternatives. However, the fashion
industry is having growing demand for the products that are used of rose oil, hence, the business
owner can have opportunities of selling rose oil in England.
The significant historical records have pointed out that the production of rose was started
in Bulgaria in 16th century (Kovacheva and Rusanov, 2015). The largest production of rose have
enabled this country people to go for manufacturing of rose water and rose oil. The production of
organic rose is done most in the industry of Bulgaria. The largest production of rose is the major
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reason for which the country is known as the largest producer of rose oil country (Becken, 2011).
Furthermore, it has been witnessed that largest producer of rose oil country lead to the export of
such rose oil in other countries. Bulgaria is the largest exporter of rose oil and is well known for
quality producers of rose oil (Perfume & Cosmetics Manufacturing in the UK: Market Research
Report, 2015).
Gap in the market
The main gap in the market is that rose oil as a product is costly which the new business
idea is totally based on. Further, this oil will be transported from Bulgaria to England and
another issue linked with the company is to decide which source to adopt for transportation of
this commodity. Moreover, business has to necessarily identify whether demand for this
commodity is quite high in the market or not. By knowing overall demand it is possible for new
business to offer this rose oil as per overall need and requirement of the market. This commodity
is very expensive and due to this specific reason knowing overall demand for product in the
market is necessary.
C) Three smart research objectives
This marketing research is based on a business idea of supply of rose oil from Bulgaria
to England. Prior to start a business it is important to come up with the proper research that can
provide a clear idea of business opportunities (Al‐Roubaie, 2010). As per the given information
business owner have good contact with producers of rose oil so the business of supplying of rose
water from Bulgaria to England is chosen. The objectives of present industry are here under:
 To offer 100% pure quality of rose oil to manufacturers of cosmetic industry
 To attain 20% increment in sales volume of rose oil by next 2 years
 To expand business operations in other countries of Germany and Scotland in next 5
years
These are some of the SMART objectives being set for the new business through which
overall performance can be enhanced easily.
 First objective: To offer 100% pure quality of rose oil to manufacturers of cosmetic
industry
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Specific: First objective set is to offer 100% pure quality of rose oil to manufacturers of cosmetic
industry which is specific.
Measurable: In order to measure accomplishment of this aim feedback will be taken from
producers so as to know whether quality of rose oil is pure or not.
Attainable: To attain this aim rose oil will be purchased from suppliers in Bulgaria who are
reliable.
Realistic: The objective set is realistic as different suppliers are present in the market and rose oil
can be purchased from one which can deliver high quality oil.
Timely: Time frame of 2 months is required so as to accomplish this objective
 Second objective: To attain 20% increment in sales volume of rose oil by next 2 years
Specific: To attain 20% increment in the sales volume of rose oil by next 2 years
Measurable: To measure accomplishment of this aim present performance will be compared
with past
Attainable: For attaining this objective more producer in the cosmetic industry present in the
market of England will be contacted so that overall sales volume can be enhanced.
Realistic: The objective set is realistic as market of rose oil is growing at faster pace due to
which it is possible to enhance sales volume
Timely: The time frame required for accomplishing this objective is 2 years.
 Third objective: To expand business operations in other countries of Germany and
Scotland in next 5 years
Specific: To expand business operations in next 5 years in the market of Scotland and Germany
Measurable: To measure attainment of this aim expansion will be done in country like Scotland
and Germany and market presence of company will be identified so as to know whether
expansion is successful or not.
Attainable: For attaining this objective market knowledge of Scotland and Germany is must
through which expansion is possible.
Realistic: The objective set is realistic as in every market demand for rose oil is high and
producers of shampoo etc prefer to purchase this oil.
Timely: For attaining this objective time frame of 5 years is required
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The objectives described in the above section are showing that the investigation is going
to conducted in a fruitful manner as it is important to identify the opportunities of business
before get started (Bryman,2012).
D) Ways of collection of Data to address research objectives along with research Methodology
Market research is associated to collect suitable information in regard to business
problem. In the investigation, it is important to access the market information that will further
helpful in taking business decision. The problem of present business case is to find out the
feasibility of business idea to supply rose oil from Bulgaria to England. For this investigation,
the information is going to be collected from primary and secondary sources. The primary data
collected method in which the information is collected from the first time on the other hand
secondary data collection sources are the sources from which the information is already exist as
gathered from other people. In this way, information is going to be collected from various
sources (Rigorous, 2011).
The major reason behind collecting primary sources is to collect the information
pertaining to market. The execution of a business idea depends upon the factors that affects the
business in future. The primary information pertaining to rose oil market of Bulgaria will be
helpful to the business owner to take available decision. On the other hand, the information
pertaining to cosmetic industry of England and the demand of manufacturing units is going to be
collect which will be helpful in defining the future positioning of business. The secondary data
that are collected from journals, books as well as online articles. Most of the content is acquired
from the online sources as this was seen as the best source for gathering authentic data. The
reason behind data collection is to seen the fluctuations that have been seen in the rose oil
industry of Bulgaria and the actual demand of rose oil in England.
Research paradigms: Research paradigm are known as continuum that are referred to
scientific as well as different metaphysical beliefs, and such beliefs can be used into a theoretical
framework so as to test significant theories. The present report is going to identify the feasibility
of business idea hence, the use of qualitative research techniques is the most suitable. The
qualitative technique will help in understanding the requirement of research and theories related
to trade can be understood in effective manner (Aveyard, 2011). The market research will be of
qualitative nature that will include the information is of subjective manner. The fluctuations in
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the industry are going to be identified as well as it is important to identify the exact information
pertaining to rose oil industry of Bulgaria and the cosmetic manufacturing industry of England.
In addition to that qualitative study is also going to be used for analysing the market of England
and the demand of manufactures for rose oil. The feasibility of business idea will be analysed
using qualitative technique, however, some quantitative techniques will be used to assess the
primary data for this market research. The business idea of supplying rose oil from Bulgaria to
England is depend on various factor such as demand and the real demand of such product can be
asked from the appropriate participants. In this manner the use of both qualitative and
quantitative data is required. The use of qualitative and quantitative research technique is useful
in evaluating subjective and numeric aspects of investigation.
Research strategy : For this investigation positivism research philosophy will be used
because mostly the data are going to be collected from secondary sources. Using this method an
in depth investigation will be done so as to identify the data and the opportunities of business,
The reason behind using positivism approach is to asses the information that is collected from
range of sources and to interpret the information for making effective business decision. The
researcher is going to collected the information from range of sources as its going to evaluate
this information for assessing business opportunity for this business idea. For this business
research, primary data will also be collected as it is important to identify the real information
from both the market (Klaes, 2012). In order to investigate into primary data, descriptive
research design will be used. Furthermore, the major reason for using to descriptive research
design is to have an in-depth investigation. The investigation is going to include objective
aspects for researching into business idea. To fill such requirement and to attain objectives of
investigation its is required to use the most optimal techniques. Descriptive research design will
be a suitable strategy that is to be put into actual research (Jones and Penaluna, 2013). The use of
descriptive research design will be more suitable as the topic requires to conduct in-depth study
into fact and figures related to issue. The actual fact and figures of the industry are going to be
analysed for which the use of mentioned strategu is the most optimal. Hence, The primary data
will be investigated using deductive research approach.
Data collection techniques: As earlier stared that the data are going to be collected from
primary and secondary sources, hence, both the techniques will be used to collect the data.
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Primary data collection is the method in which the information is going to be collected for the
first time by researcher. In respect to the present investigation the use of primary method is going
to be include. The use of primary sources requires to have a specific methods and for this
investigation the use of questionnaire method is the most optimal. On the other hand, for
collecting primary data a questionnaire is going to be designed (Ahrens and Khalifa, 2013). The
respondent of questionnaire will be the manufacturers of cosmetic products in England. The data
will be collected by meeting them personal and encourage them to fill the questionnaire. The
respondents are the manufacturers of cosmetic industry as these are the correct sources who will
provide the suitable information in respect with industry. The researcher is going to ask question
that pertains to the demand of cosmetic industry. As well as, the respondents will be personally
approached to their place so as to ask them about their responses. The questionnaire are
distributed among them the leading manufacturers of cosmetic industry. It has been witnessed
that the researcher is looking for the real information as its is important to identify the
information that is relevant to the industry and will help in making effective decision (Klaes,
2012). On the other hand, secondary data collection is the method in which the information is
acquired from the sources that are already available in various sources. The information is going
to be collected from the range of secondary sources such as books, journals as well as the
online articles (Abraham, 2012). For this present report, the information has to be collected from
secondary sources such journals and online sources. For this Google scholar and Emerald
journals that have enough information in regard to the rose industry and its facts. Most of the
information is going to be identified from online sources.
Data analysis: For analysing information linked with the study different themes will be
formed which will represent overall response provided by the respondents from whom
information has been collected. Information obtained with the help of primary source will be
analysed through qualitative technique and this will provide base in understanding about the
condition of the rose oil market. Main stress is on gaining information about the rose oil market
of Bulgaria and data linked with the same will be analysed by forming different type of themes
which will be beneficial for the entire business plan which is being prepared for setting up new
business.
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Sampling approach : Sampling is the method that is used to identify the suitable
population for the investigation. The sampling method is used to identify the respondents from
large number of population. There are two major method of sampling such as probabilistic and
no probabilistic. For the present investigation, the population is chosen as the manufactures of
cosmetic industry of England. The information is going to be acquired form the mentioned
population so it is required to choose a group of respondents using a appropriate method. For
this investigation simple random sampling method is used as to give equal chance to the
population i.e. manufacturers of cosmetic products to be selected in research (Fink, 2010). The
use of simple random sampling method is useful in identifying the information that is required to
make business decision, from the suitable group. While making use of simple random sampling,
the researcher is going to provide equal chance to the respondents to take part in the survey. The
sample size will be 15 manufacturers of cosmetic products in England. The sample size of
present investigation is 15 however, it is limited but is sufficient to get the average responses of
entire industry (Finch, 2013).
Questionnaire
1. Do you use rose oil in the production of every cosmetics
 Yes
 No
2. Does the prices charged by present suppliers of rose oil is as per your expectation level?
 Yes
 No
3. Quality of rose oil supplied by present suppliers is up to the mark?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
4. What type of credit period is granted to you by suppliers?
 30 days
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 45 days
 60 days
5. Does supply of rose oil is proper in the market as per demand?
 Yes
 No
6. Are you satisfied with the current service of your supplier in the market?
7. Does you are provided discount and other benefits on bulk purchase of rose oil?
 Yes
 No
8. What is the most important factor you consider while selecting supplier of rose oil?
 Price
 Quality
 Overall service
 All of the above
Gantt chart and project timelines
E) Gantt chart or Timeline of project
The time line for the entire project is shown in the following Gantt chart :
Activity 1stmonth 2nd month 3rd month4th month 5th month 6th
month
7th month
To set up a project plan
Search out the research topic
Creating a background of
study
Setting objectives
Application of various
research methodologies and
approaches or
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Conduct a literature review
Primary data collection
Data analysis
Draw Conclusion
Evaluation of the business
proposal
Implementation
CONCLUSION
The report above presented the market research that has been done carried out for
checking feasibility of business idea i.e. supply of rose oil from Bulgaria to England. It has been
witnessed that the fluctuating figures of rose oil production and the transportation problem are
the major issue that are going to be faced in the implementation of present business idea. The
report explained that the businesses owner is going to face such issues to implement the business
idea however, there are opportunity for earning profits. For this, data are going to be collected
from primary as well as secondary sources.
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Aveyard, H., (2011). Doing a Literature Review in Health and Social Care. 2nd ed. Berkshire:
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Bryman, A., (2012). Social Research Methods. Oxford University Press.
Finch, B. (2013). How to Write a Business Plan. 4th ed. Kogan Page Publishers.
Fink, A. (2010). Conducting research literature reviews: from the Internet topaper. London;
Sage.
Jones, C and Penaluna, A. (2013). Moving Beyond the Business Plan in Enterprise Education.
Education + Training. 55(8/9).
Klaes, M., 2012. Paradigm “wars” as methodenstreit: Methodology of management studies
meets economic methodology. International Journal of Organizational Analysis.
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Osborn, S. and Kleiner, H. B., 2005. Discrimination in the oil industry. Equal Opportunities
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Rigorous, G. (2011). Statistics for research with a guide to SPSS. 3rd ed. London; sage.
Umejesi , I. and Thompson , M., 2015. Fighting elephants, suffering grass: oil exploitation in
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Online
Benefits of rose oil. (2014). [Online]. Available through: <http://persianrose.co.uk/the-healing-
properties-of-rosewater-and-rose-oil>. [Accessed on 3rd December 2015].
Finch, B. (2013). How to Write a Business Plan. 4th ed. Kogan Page Publishers. Business Model
Generation, 2014. [Online]. Available through: <
http://businessmodelgeneration.com/toolbox>[Accessed on 2nd December 2015].
Kovacheva, K. and Rusanov I. (2015). [PDF]. Industrial Cultivation of Oil Bearing Rose and
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tandfonline.com/doi/pdf/10.2478/V10133-010-0032-4> .[Accessed on 2nd December
2015].
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