Detailed Business Plan: Organic Lipstick and Lip Balm Market Analysis

This report outlines a comprehensive business plan for an organic lipstick and lip balm venture, analyzing the potential for success within the growing cosmetic industry. The plan begins with the motivation behind the business idea, emphasizing the profitability of the lipstick market and the potential for a small-scale startup. It details the process of generating the business idea, including marketing strategies such as introductory emails, social media advertising, and a dedicated website. A feasibility study using the 7 P's of the marketing mix (Product, Price, Place, Promotion, Physical Evidence, Process, and People) is conducted to assess the viability of the product. The report also details the product's features, including its organic ingredients and dual functionality as a lip balm. It examines potential market opportunities using Porter's Five Forces model to analyze industry competition and supplier bargaining power. The attractiveness of the industry is evaluated, highlighting the increasing demand for lipsticks and lip balms. Finally, the report presents a vision for the business, emphasizing the need for market research and customer analysis before launching a new product. The report concludes by reiterating the importance of market research and analysis in the context of product launches, and provides references to support the business plan.

Enterprise and Entrepreneurship

Table of Contents
INTRODUCTION
Motivation for choice of business
The process you went through to generate the business idea
Feasibility studies conducted
Details of the product or service to be offered
Potential market opportunities
Attractiveness of the industry
Vision for your business
CONCLUSION
REFERENCES

Introduction
The following presentation includes a business idea that includes development of a new product
i.e. organic lip balm plus lipstick. This is a product that will be introduced in market for
women and girls. This presentation will tell about the story behind choosing the idea of
planning new lipstick cum lip balm. This consists of Porter's five forces model and
marketing mix of the product. Also, there is discussion on the potential market opportunities
and social trends of the product within customers. The cosmetic industry is growing each
and every day at high pace (Kuratko, 2016). It is beneficial for the companies to launch
new cosmetic products in market to earn profits and money.

Motivation for choice of business
The main reason for choosing the lipstick cum
lip balm as a new business idea as there are
chances of making money and profits
easily. This business idea is chosen because
the lipstick industry is able to make profits
in less time. This business is started at
small scale and there is in depth research
conducted before starting the business. To
start the lipstick line company business,
there is need to be deliberate, dedicated
and determined towards developing and
building business for setting goals.

The process you went through to generate the business idea
Some of the marketing strategies used while launching lipstick are mentioned below -
New organic lipstick is launched by sending introductory emails, messages and letters with the
brochure. This can be given to people who are doing business in cosmetic an beauty retailer
industry (Etzkowitz, and Zhou, 2017). This is distributed in different salons and spas so
that people are attracted towards new organic lipstick.
 This lipstick is advertised on blogs, forums and internet. Social media can also be used
for advertising the new lipstick.
 Personal website is made for making people aware about new organic lipstick that can
work as a lip balm too.

Feasibility studies conducted
The feasibility of launching new organic lipstick cum lip balm within market can
be analysed by knowing 7 P's of marketing mix. In context of the new lipstick,
the different elements of marketing are described below -
Product - The new organic lipstick is able to attract a lot of potential customers.
The new lipstick is offered in different shades and flavours. They have organic
flavours and natural oils are used in making of these lipsticks. They can also work
as a lip balm and colours involved in these lipsticks are also good. This product
will be liked by different women around the world.

Cont....
Price – Pricing is defined as the process which defines that how much money is taken from
buyers and customers for the new organic lipstick. The pricing strategy used for selling he
new lipstick is penetration strategy. This means this product is offered at low price for
securing high volumes. The price for lipstick is set for penetrating market and capturing the
market share. This lipstick is using penetration strategy for selling the product. This lipstick
is sold at the price range between £ 10 – £ 40.

Cont....
Place – Place is defined as the location where
the product is sold. The new organic
lipstick is sold at various branded salons,
beauty professionals, etc. The medium used
is online. Also, this lipstick is sold using
door to door strategy and in this lipstick is
sold to different beauty professionals. Small
outlets of this lipstick are kept at
supermarkets, stores, hypermarkets.

Cont...
Promotion – The promotional strategy used for the new organic lipstick is aggressive
marketing plan. This means that the new organic lipstick is promoted at each and every
corner. There are few advertisement campaigns which are prepared for advertising the new
lipstick by using radio, television, fashion magazines, newspapers, etc (Burns, and
Dewhurst, eds., 2016). Also, videos related to the new organic lipstick is posted on You
tube for attracting people towards buying the new lipstick. There is also usage of branded
salons for making people aware of the new organic lipstick.

Cont...
Physical evidence – The new organic lipstick
has iconic and classic packaging. The outer
package are plain white box that is made of
paper. This is a recyclable packaging. The
inside packaging of lipstick that contains
the actual product is made up of plastic.
.

Cont...
Process - The lipstick is developed by following the process in which natural ingredient is
compressed for extracting the colourful and flavoured lipstick. These are sold to customers
at affordable price. Wax is developed by heating the natural extracts of plants.
People - The staff an employees who are hired for managing the process of developing lipstick
are talented and skilled. They include that all people are managing their responsibilities
effectively while making new colourful organic lipstick