Queen Bee Beauty: A Business Plan and Market Analysis Report

This document presents a business plan and market analysis for Queen Bee Beauty, a newly launched company specializing in organic cosmetic products in the UK. The plan details the company's aims, objectives, and product offerings, emphasizing its unique selling proposition of providing positive products for improved skin. It includes a SWOT and PEST analysis, market segmentation strategies, and a marketing mix focused on product, price, place, and promotion. The competitive landscape is assessed using Porter's Five Forces, identifying key competitors like Bloomtown and Evolve Beauty. The growth strategy centers on diversification using the Ansoff Matrix. Key projected financials, including income statements, cash flow statements, and break-even analysis for 2022 and 2023, are presented, along with a balance sheet and ratio analysis. The document concludes with recommendations for improving the business plan.

Business Plan and Analysis

Table of Contents
1. BUSINESS IDEA........................................................................................................................3
Business description.....................................................................................................................3
Aims and objectives.....................................................................................................................3
Types of products offered by company.......................................................................................3
Business and Market analysis..........................................................................................................4
Market size...................................................................................................................................5
Market segmentation....................................................................................................................5
Marketing mix..............................................................................................................................5
BUSINESS, OPERATING PLAN AND COMPETITIVE ANALYSIS........................................6
Porters five forces........................................................................................................................6
Growth strategy............................................................................................................................7
KEY PROJECTED FINANCIALS.................................................................................................7
Income statement for the year ended 2022 and 2023..................................................................7
Cash Flow statement for year 2022 and 2023..............................................................................1
Break even analysis of the company for year 2022 and 2023.....................................................1
2. COVERED IN PRESENTATION...............................................................................................2
3. RECOMMENDATIONS TO THE NEW BUSINESS PLAN....................................................2
REFERENCES................................................................................................................................4

1. BUSINESS IDEA
Business description
The current business plan is based on company that is Queen Bee Beauty. The company
is the newly launched company in the market that used to sell the variety of organic cosmetic
products in the market. The reason behind having this idea is to know about the things that is
mots required to the customers (Tipu, 2018). It will provide the best organic and skin care beauty
products in UK for every type of skin needs. As organic products is adopted by more and more
people nowadays so it will be beneficial for the company to have the better market share by
launching its products in the market. By gradually knowing about the market, this is considered
as the best business idea which will have better growth in the market.
Queen Bee Beauty will be providing variety of cosmetic things as people are more
conscious about their skin care products. These type of products are free from the chemicals
which is very beneficial for the customers to buy such products. The company will be setting up
its business by taking the source of finance from the market which will be helpful for the to set
this micro business in the market of UK.
Aims and objectives
The aim of the company is to bring something innovative that help the company to grow
and gain better profits in the market.
The aims and objectives of the company is as described below:
11 To earn the 20% of profit in the staring of first year.11 To have the better target audience that must be increased by 5% every year.11 To get 10% of market share by selling the best and customized products.
These are some goals and objectives of the company which helps them to get better
growth in the competitive market (Jazayeri and Park, 2019). Further the company must focus on
the goals and objectives set by them and check them on the daily basis. By doing this it help the
new business to have better existence in the competitive market.
Types of products offered by company
The products offered by the company will be cream, face- wash, face serum, shampoo,
etc. which is made from the organic products. By discovering the skin care products it will attract
more women to buy such products as women in the market are so conscious related to their
health. Organic beauty is considered as one of the great beauty brands which will have the new

business plan to grow in the market. Natural, organic, make- up, skin care, beauty care products
are the main sources that the company must focus on in order to have better market share
(Ferreras-Garcia, Hernández-Lara and Serradell-López, 2019). The products are basically made
from the fusion of different organic products which will be beneficial for the company to use the
natural products to make the finished goods for their customers.
Core USP: This is considered as Unique Selling proposition that shows how the product is
differentiated from the other products and brands in the competitors. The USP of the cited
company is “Providing the absolutely positive products to have improved skin”. By having the
great USP it will help the company to have better selling of the products in the market.
Business and Market analysis
SWOT analysis
Strengths
Huge demand of natural and organic beauty
products in the market.
Will be having more target customers.
Weaknesses
Raw material is expensive.
Highly labour- intensive process.
Opportunities
Can expand their business in the global market.
Encourage customers to have sustainability in
the market.
This can increase the customer satisfaction as
well.
Threats
It will be facing strong competition in the
market.
Suppliers for this is low so the raw materials is
somehow expensive that will affect
profitability.
PEST analysis
Factors Description
Political factors This is basically the great pressure that can
affect the stability of the company in the
market. The company must create the
awareness and follow the policies that helps
them to grow in the market.
Economic factors As this is the micro scale company so this
factor will not affect a lot. But than also

company must follow the changes in taxation
and other monetary issues that helps them to
grow in the market.
Social factors This is the most important factor that the
company must consider. As there is contiuous
changes in the taste and preferences of the
company so they must provide the required
needs in the market.
Technological factors By using the new and innovative technology it
will help the company to grow in the
competitive market. By having the automation
in the technologies it will enhance the sales of
the product.
Market size
The market size of this business is so wide as this will be helping the company to have
better growth in the market. It is seen that in the last five years this market has grown so rapidly
which has reached to above 3 billion British pounds in 2021. It shows that the company will be
growing at faster rate.
Market segmentation
The market segmentation for the new business is helps them to have aggregate buyers
that are divided into groups and segments. There are four types of market segmentation that is
geographic, demographic, psycho graphic and behavioural. The company used to have the
demographic market segmentation that helps the company to grow in the market. By this it will
be earning better return on investments.
Marketing mix
The marketing mix refers to the business plan that will help the business to reach to its
consumers and provide them the best products and services (Jukova, Misanova and Zotova,
2019). The market strategy for cited company is as described below:
11 Product: This is basically the goods or services that are being served by the
company to the target audience in the market. As the company is entering the

market so the products launched by the company is organic creams, face wash,
shampoo, hair oils, etc. The cited firm also sell the customized products as per
required by the customers in the market.11 Price: It is the cost of products or services on which the company used to sell its
products in the market (Han and Kang, 2020.). As there are different pricing
strategies but the cited company must opt the penetration pricing as it is bringing
new business in the market. In this pricing strategy at the first the company will
be selling the products at lower rate and gradually will increase the price of the
products.11 Place or location: It is very important to select the right place in the market that
helps them to serve the new and differentiated products in the market. The
company must sell its products online and by having the shop in the market of
London (Souto and Rodriguez-Lopez, 2021).11 Promotion: Promotion helps the company to know about the advertisement for
the new products and services rendered. The company will be using the social
media apps and pamphlets in order to promotion of their products. As the
company will be serving online so by there also it will help the company to have
better promotion of the new and customized products.
BUSINESS, OPERATING PLAN AND COMPETITIVE ANALYSIS
Porters five forces
The competitive and market analysis is the process that helps to identify the
competitors in the industry and making the different marketing strategies to survive in the
market. It is very important for the new business to have better analysis of the market as
this helps them to know about the strengths and weaknesses of the competitors in relation
with the current operating business (Tong, Luo and Xu, 2020).
Forces Description
Threats of new entrants: There is the great threat of new entrants as the
business is well growing in the market.
Bargaining power of suppliers In this the company used to bargain with the
suppliers as the raw materials given by them

are somehow expensive.
Bargaining power of customers The bargaining power of the customers in this
business is low as they used to provide the best
products in the market.
Threat of substitute products There are various substitutes available so the
company must provide the best products.
Rivalry among the existing players As there are various sellers of th organic
product so the rivalry of the company is strong
in the market.
As by having the competitive analysis by using porters five forces it is seen that the
competitors of the company used to sell variety of products and have large potential customers in
the market. The competitors of the company will be Bloomtown, Awake organics, Evolve
Beauty, etc. as these are the leading firms in selling the organic beauty products in the market of
UK.
Growth strategy
The growth strategy of the company can be determined by using the Ansoff growth matrix. This
matrix is consists of four quadrants that are market penetration, product development, market
development and diversification. The company must adopt the diversification as this helps them
to sell their products in the different market. This will have more target customers and will have
better revenues in the market.
KEY PROJECTED FINANCIALS
Income statement for the year ended 2022 and 2023
Particulars 2022 2023
Sales Revenue 400000 650000
Less - Cost of sales 45000 65000
Gross Profit 355000 585000
Less operating, selling and administration
expenses

Salaries and wages 12000 12000
Marketing expenses 5000 5000
Packaging expenses 2500 3000
Insurance 2400 2400
Depreciation 25000 25000
Sales commission 3500 4000
Utilities 1500 1500
Total operating, selling and administration
expenses 51900 52900
Profit before interest and tax 303100 532100
Less Interest expense or Finance cost @12.5% 6250 6250
Profit before tax 296850 525850
Less Tax @ 25% 74213 131463
Net Income 222638 394388

Cash Flow statement for year 2022 and 2023
Particulars 2022 2023
Receipt
Initial investment (Loan from bank) 50000
Cash from sales 400000 650000
Total receipt 450000 650000
Less- Payments
Purchase of plant and equipment 125000
Cash payment for purchases 50000 70000
Salaries and wages 12000 12000
Marketing expenses 5000 5000
Packaging expenses 2500 3000
Insurance 2400 2400
Sales commission 3500 4000
Purchase of inventory 1300 1300
Interest expense or Finance cost 6250 6250
Tax expenses 30363 37613
Total payment 113313 141563
Net cash flow 336687 508437
Add Opening cash balance 100000 436687
1

Closing cash balance 436687 945124
Break even analysis of the company for year 2022 and 2023
Calculation of variable cost
Particulars 2022 2023
Cost of sales 45000 65000
Sales commission 3500 4000
Tax 24563 31813
Packaging expenses 2500 3000
Total 75563 103813
Calculation of fixed cost
Salaries and wages 12000 12000
Marketing expenses 5000 5000
Utilities 1300 1300
Insurance 1200 1200
Interest 6250 6250
Depreciation 25000 25000
Total 50750 50750
Sales revenue 400000 650000
Less- Variable cost 75563 103813
2

Contribution 324437 546187
Less- Fixed cost 50750 50750
Net Income 273687 495437
Break even sales (in value)
62569.928
8305588
60395.981
5960468
Contribution margin 81% 84%
Balance sheet for the year ended 2022.
Particulars Amount (£)
Assets
Non- current assets
Plant and equipment 100000
Total non- current assets 100000
Current assets
Cash and bank 436687
Inventory 1300
Debtors 20000
Total current assets 457987
Total assets 557987
Equity and liabilities
Equities
Capital
+ Net profit for the year
222638
3

Total equity 222638
Liabilities
Non current liabilities
Bank loan 50000
Current liabilities
Creditors 285349
Total liabilities 335349
Total equity and liabilities 557987
Ratio analysis
Current ratio: current assets/ current liabilities
Current Assets = 457987
Current liabilities= 285349
current ratio= 1.6:1
Gross profit ratio: Gross net income / Revenue from sales *100
Gross net income= 355000
revenue from sales = 400000
GP ratio= 88.75%
Net profit ratio: net income / Revenue from sales *100
net income= 222638
revenue from sales= 400000
NP ratio= 55.66%
2. COVERED IN PRESENTATION
3. RECOMMENDATIONS TO THE NEW BUSINESS PLAN
By receiving the business feedback from the investor it is seen that there are some
lacking areas that can be improved in order to have better selling of the new products in the
market. There are some recommendations to the new business plan which is described as below:
4