RMIT BUSM4052: Developing an Organic Beauty Product Business Plan

This project presents a comprehensive business plan for an organic beauty product, addressing the growing market for skincare solutions. The plan identifies skin problems as a key market need, particularly for individuals with sensitive skin. It outlines an entrepreneurial idea to develop and market organic beauty products, emphasizing viability and feasibility through detailed market analysis. The project explores pain points, target customers (teenagers, young adults, and fashion enthusiasts), and competitive advantages. It incorporates tools and technologies, including a well-equipped beauty testing laboratory and digital scales, to ensure product quality. The plan delves into demographic, psychographic, sociological, behavioral, and contextual factors using PESTLE analysis. The project also presents strategies for market penetration, market development, product development, and diversification. The entrepreneurial idea is developed using personal motivations and effectuation principles, including bird-in-hand and opportunity cost considerations. The conclusion emphasizes the potential of the organic beauty product in addressing skin problems and meeting market demands.

Running head: MANAGEMENT
Entrepreneurship
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................4
Problems to be addressed.............................................................................................................4
Entrepreneurial idea.........................................................................................................................4
Viability and feasibility................................................................................................................4
Pain points....................................................................................................................................4
Critical assumption..........................................................................................................................4
Customers.....................................................................................................................................4
Competitors..................................................................................................................................4
Tools and technologies.................................................................................................................4
Potential targeted customers............................................................................................................5
Demographic................................................................................................................................5
Psychographic..............................................................................................................................5
Socio logical.................................................................................................................................5
Behavioral....................................................................................................................................5
Contextual factors............................................................................................................................6
Pestle analysis..................................................................................................................................6
Competitive advantage....................................................................................................................9
Market penetration.......................................................................................................................9

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Market development....................................................................................................................9
Product and development...........................................................................................................10
Diversification............................................................................................................................10
Discovering the entrepreneurial idea.............................................................................................10
Personal Ideas............................................................................................................................10
Effectuation Principles...................................................................................................................11
Build the puzzle.........................................................................................................................11
Bird in hand................................................................................................................................12
Opportunity Cost...........................................................................................................................13
Next best Idea.............................................................................................................................13
Money to be made at a probable job..........................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
Problems to be addressed
Entrepreneurs are the ones who can take up many risks to develop a new kind of business idea.
The business idea must be such that they will be able to solve a certain problem that already
exists in the market scenario. Entrepreneurs usually have a huge responsibility to not only to
develop some new and innovative products but their products must be such that they can act as
the solution to some of the persisting problems in the market. One such problem is the increasing
number of skin problem. Due to large scale pollution, many people including male and females
have the issue of skin problem (Nabi et al. 2018). As a result of this, they often have to restrain
themselves from going put to any social gatherings. Apart from this, the other more severe issue
is that they have to often distance themselves even from reaching out to fulfill their professional
goals. Modeling is one of the most sought after professions in the modem day scenario.
However, people with very sensitive skin often feel that they are not for this profession as they
will not be able to use any makeup on their sin. As a result of this, they feel that their skin type is
suiting to this profession. As a result of this finding out some product that will be made from the
pure organic materials and will also be made to suit all the different kinds of skin types.
Therefore this product must be brought into the market and made sure that they are being used
by all the targeted customers.
Entrepreneurial idea
The entrepreneurial or the new business idea is to develop some beauty products that will be
solving the skin problems. This is one of the most useful products as it will help in solving the

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rising skin problems of the people with sensitive skin. People who have to travel daily to work
often suffer from the dust and dirt allergies. The skin also becomes sensitive to chemicals. As a
result of this the organic beauty products will be helping to solve this issue.
Viability and feasibility
The product that is the organic make up is viable in the market or will be solving the rising issue
of skin problem. In other words it will be solving the major issue that the girls and boys are
facing in the current scenario. Thus the idea of developing them organic make up is very useful
in the current scenario.
The product will also be feasible in the market as it will be marketed from one place to the other.
The products will be delivered to all the customers from different parts of the world. In other
words customers living in different parts of the world will be able to get the products at their own
will and also from their desired place of choice.
Pain points
The pain points that can arise in this business are facing a very tough competition from the
competitors. Apart from this the customers can feel that it is a new brand and therefore there is
no such surety regarding the originality of the products.
Customers
The targeted customers are mainly the teenagers and the young adults who suffer from many
skin problems. Apart from this those individuals who usually have gone into the field of beauty
and fashion are also one of the big and large sections of the customers who will be the
prospective buyers.

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Competitors
Tools and technologies
 A well furnished beauty testing laboratory
 Modern and scientifically advanced devices like thermometer to check the temperature of
the beauty products.
 As the modern day scenario is highly digital and scientific in nature. The digital scales
have to be used so that the beauty products can be measured in a proper way and the final
outcomes are developed properly. This must be ensured that the customers are being able
to interact properly with the company and also talk about their problems so that they can
listen and cater to the issues of the customers. The modern communication tools and
techniques must also be developed so that the customers are able to interact narrate their
issues and then get the solution promptly.
Potential targeted customers
Demographic
The new business idea of selling the organic beauty products will be done based on the different
demographic factors. The age, gender and income are some of the essential factors that must be
maintained by the business while starting the new business idea.
Psychographic
This product will attract the interest of those customers who have a kind of inclination towards
maintaining a healthy skin. Thus the company will be attracting those customers who are
conscious about their skin problems.

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Socio logical
One of the greatest advantages for this new business idea is that part of the society who has been
suffering from several social taboos. In other words people who have often been suffering from
different kinds of skin problems.
Behavioral
This part of e market segmentation mainly points towards those customers who have a busy
lifestyle. In other words it will be targeting those customers who are the college students or
office goers. This product will also be targeting at the customers who have will try to buy some
beauty products that can help them take care of their skin in this busy schedule.
Entrepreneurs have to be are careful about different factors while they are about to begin or
embark upon any new business. There can be many reasons that will be affecting the success and
the growth of the new product or the new service in the market (Kirzner 2015). As a result of
this, the entrepreneurs must be well aware of the economic and the social scenarios going on
around in the market scenario (Palmié et al. 2019).

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Contextual factors
Pestle analysis
Political
The government of Australia is highly flexible and any business can adapt to the policies
of the Australian Government as it will be helping them to deal with their economic challenges.
As per the opinion of Burns (2016), the Government of Australia will be helping the organization
to raise fund for developing their business operations worldwide. Developing organic makeup as
a new product will need manpower and also the raw materials from different countries outside
Australia. Apart from this sufficient amount of funds will also be needed for developing a large
scale advertisement and promotion so that the customers can know about the advantages that
they will be getting after using these products.
Economic
The economic condition of the country is stable. As a result of this, the idea of
developing this new product will be able to operate successfully as the entrepreneurs will be
getting a chance to deal with all the different financial challenges that they might face. As the
GDP of the country is at a better position in comparison to that of the other countries like U.K,
Germany, France, it will be advantageous for the companies to carry on their business in
Australia. Karimi et al. (2016) have also opined in the similar context saying that the amount of
risk is lower or kind of negligent in this economy as there is a good amount of return on
investment for the companies. Therefore the company will be facing a low rate of inflation and
the return on investment along with the interest rates, exchange rate, and others will be higher.

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Therefore it will be profitable for the company to invest behind the new and the innovative
product that is the organic makeup.
Social
Australia has a multicultural social setup. The three different classes that are existing on
the Australian social context are the upper class, working-class, and the middle class. Thus this
will be easier for the company to market its products. The price of the product can initially be
kept at a higher price so that they are sold among the high come group (Southon, and West
2018). On the other hand with the increase in the business, the price of the product can be
lowered and then that product can easily be sold among the customers belonging to the
customers belonging to the middle-class
Technological
Australia is one of the most technologically advanced countries in the world. As a result
of this starting the new business idea of organic make up will be viable in the Australian market.
This is because the entrepreneurs will be getting access to the right kind of tools and implements
to develop the products as per the currently accepted standards. Government funds about 55% of
all research and development and industry by about 40%. Therefore there are high and also
positive chances for the entrepreneurs to focus on the development and 6hen same of these
products.

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Legal
The legal system in Australia is well developed and the entrepreneurs will be able to use
this for developing a safe and secured business setup. This will be helping then entrepreneurs to
carry on their business operation by abiding by all the legal codes of conduct and make sure that
they are not falling under any kinds of criminal offenses.
Competitive advantage
Market penetration
This new business idea will be able to enter the market successfully only if they have
some innovative market entry strategies. The penetration pricing strategy can be used by the
organization or by the entrepreneurs so that they can have the maximum amount of market share.
As they are coming with a product that is present in some of the firms, they will have to give
some special offers to the customers. This can be done by selling the products at some
discounted offers or distributing some gifts along with the new product that is the organic
makeup
Market development
Entrepreneurs will have to find out some special and innovative strategies to survive in
the market. Pilot testing is one of the best methods that will be adding the uniqueness of their
new business idea. As many of the customers are not aware of the benefits of using organic and
natural makeup, they must be given the option of testing some free samples and then making
their purchase decisions.

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Product and development
Customers will be attracted to purchase a new product or service of they are getting some
additional or innovative aspects. As a result of this, the entrepreneurs can try to develop some
innovations like a free skin checkup for the buyers. This will help the users to get attracted to this
new product (Prashantham et al. 2019). They will know that buying this product will also help
them in getting a free check-up for their skin problems.
Diversification
The products can be diversified by bringing in a large number of newer items. For
instance, along with the organic makeup, the entrepreneurs can distribute some free coupons for
the makeover at the best salons located in the nearest locations of the customers. Apart from this,
they can develop some online beauty tips and skincare consulting applications that will help then
customers to get the beauty tips and also share their skin problems with the best skin experts at
any point of time.
Discovering the entrepreneurial idea
Personal Ideas
I feel that my motivation behind this is right from childhood I have been attracted
towards the profession of modeling and beauty. However, I have often encountered that people
suffer in their professional fields due to low self-esteem and self-confidence. This low self-
confidence is often due to the looks. There is the issue of dark skin complexion, patches, spots,
acne, and many other such skin diseases. I have also seen one of my close friends suffering from

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the issue of excessive sensitive and oily skin issue. Though she was very talented she was often
bullied because of her looks. She wanted to use makeup but had to avoid many of the products as
her skin did not match with the chemical components present in that makeup and also the cost of
organic makeup was unaffordable. Therefore I wanted to develop a new organic makeup that
would be affordable and also made from pure natural materials.
Effectuation Principles
Build the puzzle
I have been influenced by this as building partnerships is very useful in fetching new and
innovative business ideas. Developing a good connection with different companies will be
helping in getting valuable tips for developing the business (Venkataraman 2019)

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Bird in hand
Entrepreneurs have to start with available means so that they can understand the existing
marketing scenario and proceed on achieving the business. I started with this business idea as I
knew that the skin problem is becoming one of the major issues. Therefore I wanted to develop
some organic makeup products at a very affordable price. I knew that as I have the empathetic
quality within myself. I can easily mix with customers and get to know about their probes. This
will also help me in developing a feeling of connection and attachment with customers. I will be
able to face any kinds of challenges coming in my way and overcome the same.

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Opportunity Cost
Next best Idea
I would have become a manager if I had not conceived this entrepreneurial idea. This is
because I like to interact with people and also manage the work. I have good management
qualities within me and using them in a professional filed would be a really good opportunity for
my career.
Money to be made at a probable job
Working at a job instead of becoming an entrepreneur would fetch me money at a faster
rate. As per my perception given my current skills, I would have been able to make around
$5000000. However, I believe that there is no shortcut to success. Therefore I would like to face
the challenge and proceed on my entrepreneurial idea.
Conclusion
Thus it can be concluded that entrepreneurs have to work hard in order to establish their business
idea. They have to ensure that their product is able to solve an exciting problem in the market or
the society. The entrepreneurs have to understand the needs and demands of the customers in
order to provide them something new and innovative. Entrepreneurs have to overcome may
challenges so that they can successfully establish their business.

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References
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Karimi, S., Biemans, H.J., Lans, T., Aazami, M. and Mulder, M., 2016. Fostering students’
competence in identifying business opportunities in entrepreneurship education. Innovations in
education and teaching international, 53(2), pp.215-229.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Nabi, G., Walmsley, A., Liñán, F., Akhtar, I. and Neame, C., 2018. Does entrepreneurship
education in the first year of higher education develop entrepreneurial intentions? The role of
learning and inspiration. Studies in Higher Education, 43(3), pp.452-467.
Palmié, M., Huerzeler, P., Grichnik, D., Keupp, M.M. and Gassmann, O., 2019. Some principles
are more equal than others: Promotion‐versus prevention‐focused effectuation principles and
their disparate relationships with entrepreneurial orientation. Strategic Entrepreneurship
Journal, 13(1), pp.93-117.
Prashantham, S., Kumar, K., Bhagavatula, S. and Sarasvathy, S.D., 2019. Effectuation, network-
building and internationalisation speed. International Small Business Journal, 37(1), pp.3-21.
Southon, M. and West, C., 2018. The Beermat Entrepreneur: Turn your good idea into a great
business. Pearson UK.

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Squicciarini, M., 2017. Entrepreneurship, innovation and enterprise dynamics. Small Business
Economics, 48(2), pp.273-278.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal Ideas
for the Next Twenty-Five Years of Advances (pp. 5-20). Emerald Publishing Limited.