BMM3013 - Business Plan: Organic Soap Startup & Marketing in the UK

This report presents a business plan for an organic soap startup in London, UK, focusing on producing natural, chemical-free soaps to address skin problems caused by chemical-based alternatives. The plan leverages skills in operations management and prior project experience, targeting health-conscious consumers and the health industry. It includes a PESTEL and SWOT analysis, competitive analysis identifying Dove and Unilever as major competitors, and Porter's Five Forces analysis. The marketing plan emphasizes product (organic and natural ingredients), price (competitive pricing), place (availability in underserved areas), and promotion (digital advertising). The business aims to provide high-quality, affordable organic soaps, capitalizing on the growing demand for sustainable and health-conscious products.

Starting a Business and Fundamentals
of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
MAIN BODY
Section One - Introduction
Proposed business and Market gap
The business idea that will be proposed is to produce organic soaps that will be filled
with herbs and natural beneficial elements. The idea is to start producing non chemical soaps so
that the skin problems can be decreased. In the modern times we can see that there is a lot of skin
related diseases caused because of body soaps that contains chemicals. The chemicals are very
harmful for the skin which creates problems such as skin rashes and different skin diseases
which requires a lot of attention (Chen, 2019). This creates serious health problems and effects
the life expectancy as well. Therefore, the organic soap will be able in decreasing the skin
diseases and health problems as it will be made from natural and beneficial elements.
Skills and experience
Having skills like managing operations and experience of handling big projects of other
companies can be beneficial in starting business. The experience will be beneficial in starting the
business as there will be knowledge of how a business can be started. The skills of producing
organic things will also be beneficial for the start of the new business.
Chosen location and its reason
The business will be located in London UK as there is a lot of audiences who will prefer
to buy organic products. The natural elements will be in its natural forms as it will be purchased
directly from the producers and not the retailers. This will also be affordable as there will be no
intermediary.

Section two – Research presentation
PESTEL analysis
Political, The cosmetic regulations in UK impacts the most when it comes to producing cosmetic
products and for producing the organic soaps the adherence to these laws are necessary. The
adherence to the laws can help in ease of doing business.
Economic, The cosmetic industry is one of the least effected in UK. Customers are very price
sensitive, but they will always feel requirement of soaps and shampoos in their bathroom.
Social, People now prefer to buy soaps that is chemical free and that gives them freshness. This
is because the pollution and people want to buy soaps that can keep them fresh all day (Gilmore
and et.al., 2020). The business will produce natural soaps that will be filled with aromatic
fragrance of nature.
Technological, Companies are investing more in technology to improve their product experience
and provide it to the customers. This factor can help in promoting product as the description will
be uploaded online which will attract the customers. Digital advertisements and social media
promotions can be beneficial in the starting period of the business.
Environmental, People are now looking for more sustainable products. The organic soap will be
a great product as it will affect positively on environment and will be nature friendly as their will
be no chemicals used in the making of the product.
Legal, Ingredients are an important thing and the company is required to be registered in Food
and drugs administration (FDA). No company can operate without the approval. The business is
required to follow the Consumer Protection Act, 1987 as their will be production and sales of
soaps.
SWOT analysis
Strengths,

 Company's main strength is it will use organic ingredients in their products
 Products will cause no harm to skin and health
Weakness,
 Lack of funds as it will be a new start up
 Need to set up the business first and after that the production will start
Opportunities,
 High requirement of products that is chemical free
 Very few producers of the natural products
 People are looking for a unique product that can be beneficial for their health as well as
their budget. Keeping the cost of the product competitive to win the trust of people
Threats,
 Competitors are very big players of the industry There are already big companies that manufactures the same products
Competition analysis
The soap industry in UK is a huge revenue generating industry of Britain. A lot of
companies are already earning a lot of profit from this industry. The competition is huge as there
are already big players playing in the industry such as, Dove and Unilever. The companies are
having a great goodwill in the market as they are one of the biggest and oldest players. These
companies produce natural and herbal soaps that can be a tough competition for the business
(Orefice and Nyarko, 2021). The problem with the competition is that people are less sensitive
when it comes to believe on a newly established brand. This is because the monopoly that is
already being created by the old brands who are already well-established in the market. The
brands are already providing the products but at some conditions which does not match every
customer's capability.
The companies are already providing such products with their marketing that they have
natural products. Dove sells its soaps with a tag line that the soap contains milk which is

beneficial for skin and body. Unilever also has the same strategy that they have a lot of organic
and herbal mixed soaps which is the extracts of natural elements. The big brands are providing
the natural products at a premium price which is more than reasonable (Leszczynski, 2020). This
can be a benefit for the business that the prices of the product can be kept lower than these
brands which will attract the customers. People are always looking for a product which is
providing premium quality at a lower price. This creates an opportunity that can be beneficial for
business.
There is still lack of proper availability of the natural products as the old brands are only
selling their products in high paying areas. The business can catch a benefit from this product by
making their product available in the areas where the requirement is high but pay is low. The
business is trying make its position stable in the market as it is a new start up. Company can
secure its place by providing their products by keeping their profits low and making availability
of their products (Bonifant and Holloway, 2019). The main strength of the business is that the
business will be established on the motive of providing better products at an affordable price.
Industry analysis
Porter's Five forces
Competitive Rivalry, The competitive rivalry is low in the market. The companies which
are already producing natural soaps are very few. There is no price fluctuation in the products of
these brands which creates no competitive rivalry in the market (Wu and et.al., 2020). This can
be a beneficial point for the organization as the prices of the products can be kept lower than the
competitors so that the customers will be attracted to the products.
Supplier power, The supplier power is low as the main elements of the product is natural
elements like fruit extracts and essential oils which will be easily available from producers.
There are a lot of farmers who will provide this natural elements. This will create a mindset of
the suppliers to agree at a lower price to sell their products. This will be beneficial for business
as the cost of materials will be low.
Buyer power, The buyer powers are moderate in this market. There are only a few brands who
provide pure natural soaps but their prices are premium. The business can take benefit from this

fact and create its position in the market by keeping the quality of their product high but at an
affordable cost. This will create a monopoly in market by attracting them towards the product by
keeping the prices low.
Threat of substitution, The threat of substitute products in this market is very high. There is a lot
of brands who provides their product by committing that it is natural and the identification of the
quality is hard as there are a lot of chemicals which provides the same result as natural product.
The fake products are similar at first in giving results but after continuous usage of it can cause
serious damages to the skin.
Threat of new entry, The threat of new entry is low in this market. The brands are mostly looking
to produce the products which can earn them profit in less time. Organic soaps are product which
is purchased by only a specific audience who cares about their skin and health more than just
cleaning their body. The new comers will usually go for the products which is purchased by all
type of audience so that the sells of their products will be high.
Identifying the target market
The market that will be the most suitable for the business will be Health concerned
audience and the health industries. The health concerned public will always be looking for the
natural and health beneficial products. This is because they understand the value of natural
elements. They prefer using natural products rather than chemical based products (Winston,
Stanton and Linneman, 2020). The heath industry will also be a good market to target because
the health experts will always suggest natural skin products to their clients and patients.
The business will have higher sales of the product when the product will be sold in the
right market and at a reasonable price point. This targeted market is very suitable for the product
as the audience of this market is looking for the exact product which will be produced in the
business. The sells of the organic soap will be rapid in this market as the main requirement of the
audience of this market is pure natural and chemical free products. The most required and sold
product in the market is health and skin beneficial products that is based on natural elements and
contains extracts of natural material.

The business can be also expanded in the baby market as the new born baby's skin is very
sensitive and can be damaged by the chemical based products. The business will see growth in
this market by producing natural soaps for babies too. Parents will give their first preference to
the natural element based products for their babies as they value the health of their family. The
health industry will also be advising people to use natural products for their skin.
The company can also target markets in the places where there is a lot of health and skin
related problems. Such as, areas that has a dry environment and the places where proper and
healthy environment is not available. Company can sell their products in these areas and can
target the audience there by making awareness about the harmful skin environment and the
effects of it. The products will provide a solution to the people who are suffering from skin
related diseases and problems. The products will be able to change the market by providing
better quality of products at an affordable price. This is one of the main requirement of the
customers that they want better quality at an affordable cost.
Marketing plan
The best marketing plan for the business can be created by keeping the main factors as
the priority. Product, Price, Place and promotion.
Product
A lot of people prefer organic and natural products and this the exact products which will
be sold by the company. The company will produce organic and natural element based soaps
which will be healthier for skin. The organic soap is based on the fruit extracts and essential oils
which is very beneficial for skin. The company will be able to achieve massive attention of the
buyers. The product will be consisted of pure natural elements which is beneficial for health and
skin.
Price
Price of a product is an important factor to be focused on. The customers are more price
sensitive when it comes to pricing as they give their preference to the product which is budget
friendly for them. Keeping the price of the product low by keeping their profits low company can
attract a lot of customers to its products. Company by keeping competitive plan will be able to

sell its products to more customers as it will be affordable for all the people and the customers
will consider buying the product looking at the affordable price.
Promotion
Promotion can be done by making people aware about the products. Social media can be
a good option as it helps in advertising the business for free (Czinkota, and et.al., 2021).
Campaigning about the product and its benefits will be helpful in making people aware about the
product and about the health benefits that it will provide. Promotion for the product will also be
done by making partnerships with various groups who are in the same industry. This will be
helpful in maximizing the reach of the product to the customers.
Place
Main place of business will be London for the offline stores and website for online
selling. This can help in selling product online on the social media platforms. Company will
make their website on which customers can understand the descriptions and information about
the product. There will be social media pages for the website which will help in grabbing
attention of customers from every platform. The organic soap will also be sold at offline stores
that will helps local people to just walk in and buy the products.

REFERENCES
Books and journals
Bonifant, H. and Holloway, S., 2019. A review of the effects of ageing on skin integrity and
wound healing. British journal of community nursing. 24(Sup3). pp.S28-S33.
Chen, L.N., 2019. Communicating health and wellness: The meaning behind names of handmade
soaps. English Today. 35(1). pp.14-19.
Czinkota, M.R. and et.al., 2021. Marketing Planning. In Marketing Management (pp. 43-90).
Springer, Cham.
Gilmore, A. and et.al., 2020. Four questions of entrepreneurial marketing education: Perspectives
of university educators. Journal of Business Research. 113. pp.189-197.
Leszczynski, D., 2020. Physiological effects of millimeter-waves on skin and skin cells: an
overview of the to-date published studies. Reviews on environmental health. 35(4).
pp.493-515.
Orefice, C. and Nyarko, N., 2021. Sustainable value creation in event ecosystems–a business
models perspective. Journal of Sustainable Tourism. 29(11-12). pp.1932-1947.
Winston, W., Stanton, J.L. and Linneman, R.E., 2020. Marketing Planning in a Total Quality
Environment. Routledge.
Wu, F.L. and et.al., 2020. Effects of walking speeds and durations on plantar skin blood flow
responses. Microvascular Research. 128. p.103936.
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