Business Plan for Rose Petals Cosmetic Retail Shop in Gulshan, Dhaka

This document presents a comprehensive business plan for 'Rose Petals,' a proposed cosmetic retail shop in Dhaka, Bangladesh. The plan begins with an introduction detailing the business background, rationale, and objectives, including a focus on the Gulshan area. It then outlines the business concept, products, target market, and value proposition, followed by an in-depth feasibility study covering market analysis, Porter's Five Forces, and financial projections. The plan also incorporates strategic analyses such as SWOT, Ansoff's Matrix, and the Business Model Canvas, alongside operational and implementation plans, including risk assessment and a detailed financial plan. The business aims to capitalize on the growing cosmetics market in Dhaka by offering branded products and excellent customer service.

Business Development Plan

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1Background of the business...................................................................................................5
1.2 Rationale for business concept ............................................................................................5
1.3 Selection of scenario..............................................................................................................6
1.4 Terms of reference.................................................................................................................6
1.5 Research objective ................................................................................................................7
1.6 Research questions ...............................................................................................................7
1.7 Tools & theory.......................................................................................................................7
1.8 Actionable assumption .........................................................................................................8
1.9 Time scale ............................................................................................................................9
CAHPATER 2: OUTLINE OF THE BUSINESS.........................................................................10
2.1 Concept statement................................................................................................................10
2.2 Products & services.............................................................................................................10
2.3 Partnership...........................................................................................................................12
2.4 Segmentation ......................................................................................................................12
2.5 Target market ......................................................................................................................13
2.6 Perceptual mapping .............................................................................................................14
2.7 Value added features ...........................................................................................................14
2.8 Services provided ................................................................................................................15
2.9 Windows of opportunity......................................................................................................16
CHAPTER 3: FEASIBILITY RESEARCH.................................................................................17
3.1 Research methodology and data collection methods...........................................................17
3.1.1 Research methods............................................................................................................17

3.1.2 Data collection methods....................................................................................................18
3.1.3 Sampling technique ..........................................................................................................19
3.1.4 Sample size ......................................................................................................................19
3.2 Industry attractiveness........................................................................................................19
3.3 Porter’s five force analysis.................................................................................................20
3.4 Market analysis....................................................................................................................21
Forecasting the business climate................................................................................................22
3.5 Market attractiveness ..........................................................................................................23
3.5.1 Market attractiveness questions and responds..................................................................23
3.6 Product and service feasibility.............................................................................................25
3.7 Legal feasibility...................................................................................................................25
3.8 Technological feasibility .....................................................................................................26
3.9 Organizational feasibility.....................................................................................................26
3.10 Human resource requirements ..........................................................................................26
3.10.1 Human resource management.........................................................................................27
3.10.2 Requirements and selections..........................................................................................27
3.10.3 Human resource development ......................................................................................27
3.11 Financial feasibility............................................................................................................28
3.11.1 Start-up cost ..................................................................................................................28
3.11.2 Operational cost..............................................................................................................28
3.11.3 Break-even point ...........................................................................................................29
3.11.4 Revenue projection 3......................................................................................................29
3.11.5 Sources of finance...........................................................................................................30
CHAPTER 4: STRATEGIC ANALYSIS & BUSINESS MODEL..............................................31
4.1 Swot analysis.......................................................................................................................31

4.2 Ansoff's matrix.....................................................................................................................32
4.3 Blue ocean strategy.............................................................................................................33
4.4 Mc Kinsey 7’s framework analysis.....................................................................................35
4.5 Value chain analysis...........................................................................................................37
4.6 Business model canvas ......................................................................................................38
CHAPTER 5: BUSINESS PLAN..................................................................................................41
5.1 Industry...............................................................................................................................41
5.2 The company .......................................................................................................................41
5.3 The market ..........................................................................................................................42
5.4 Operational plan..................................................................................................................43
5.5 Implementation plan...........................................................................................................43
5.6 Development plan...............................................................................................................44
5.7 Business sustainability .......................................................................................................45
5.7.1 Critical success factors ....................................................................................................45
5.7.2 Risk assessment ..............................................................................................................46
5.8 Financial plan ......................................................................................................................48
REFERENCES .............................................................................................................................50

CHAPTER 1: INTRODUCTION
1.1Background of the business
In this, by considering the market trend business entity has taken decision in relation to
opening fragrance and cosmetic retail shops in Dhaka. The name of the proposed business will
be ‘Rose Petals’. Entrepreneur will open the new cosmetic retail shop in Gulshan, Dhaka because
at this place majority of the offices are running. In addition to this, several diplomats also live at
this place which in turn also contributes in the sales and profit margin of the firm (McKeever,
2016). Business entity will offer quality and branded cosmetics to the customers through such
shop namely Olay, Avon, Loreal, Nivea, Lakme, Dove etc (Markets of the Future in Bangladesh,
2017). Moreover, such products are commonly bought by the customers who reside in
Bangladesh, Dhaka.
By considering this, it can be stated that luggage party goods are offered by most of the
retailers to the customers of Dhaka. Thus, sole trader will offer all the leading brands to the
customers via such retail shop. In this, entrepreneur will target all the people who have high
disposable income and beauty loving office women. In addition to this, focus on offering original
products to the brand loving customers (Yang and et.al, 2014). Along with this, business entity
will focus on persuading customers by making them aware with the products and service of
organization. The present business plan will shed light on the business idea, concept and target
market. Besides this, proposed plan will also provide deeper insight about the extent to which
external factors have impact on Rose Petals. Furthermore, study will also depict financially
viability of cosmetic retail shop.
1.2 Rationale for business concept
The rationale behind the selection of cosmetic’s retail business is that it is economic and
business centre of the country. Besides this, from assessment it has been identified that Dhaka is
one of the fastest growing start up hubs in the world. Hence, it is one of main reasons behind the
selection of Dhaka for starting business venture (Islam, 2016). Thus, by opening retail shop at
Dhaka, firm can attain success by offering beauty products or services to the large number of
customers. In the recent times, interest level of individuals towards the beauty products is

increasing rapidly. Now, both professionals and non-professionals make use of beauty products
so that they can look stylish and nice. Besides this, now individuals prefer to visit salon more in
order to look nice and beautiful. Hence, by taking into consideration such trends organization
has taken decision to open the cosmetic retail shop in Gulshan, Dhaka.. Thus, by offering
cosmetic retail beauty products to Salon sole trader can attain high profit margin. Besides this, by
providing other people with quality cosmetic products firm can be able to achieve its goals.
Thus, all the above depicted aspects are the major factors that must be considered while making
selection of business (Truong, 2015).
1.3 Selection of scenario
Cosmetic industry has become the highly growing sector. In modern era people like to
use cosmetic products in order to look nice. Women and men go to beauty saloon for make over
frequently. There are many cosmetic brands which revenues are increasing continuously every
year. The reason of selecting this business ideas is that, cosmetic retail shop would be able to
grow well and owner will be able to earn more profit through this business. Cosmetic industry of
Bangladesh has market of around 4000 corers BDT. Small retail shop have good opportunities to
earn high profit in this sector (Brenner and Headrick, 2016). By entering into this market Rose
petal will be able to earn high profit and it will help in getting success in the cosmetic industry.
Another objective of opening a retail shop in Gulshan is to enhance satisfaction level of
consumers and gaining international presence. Purpose of the study is to make effective business
plan so that owner can open cosmetic retail shop in Gulshan Dhaka successfully. For that
entrepreneur will have to look upon resource allocation, budget plan, skills require, risk
management aspects. All these things will support the owner in opening the retail cosmetic shop
in Gulshan and getting success in this market.
1.4 Terms of reference
Owner will have to conduct deep research for knowing better about Gulshan location and
cosmetic market of Bangladesh. Individual will allot responsibilities to all involve persons as per
their capabilities and skills. It will support in accomplishing the goal of the organization. Main
objective of opening a cosmetic retail shop in Gulshan Dhaka is that to earn good profit and gain
success in this new market (Suntikul, 2016).

1.5 Research objective
To carry out study in the structured manner it is highly required for the researcher to
develop specific aims and objectives. Moreover, without having clear and precise objectives
researcher would not be in position to conduct study in an integrated manner. Research
objectives, pertaining to the present study, are enumerated below:
 To investigate the trend of Cosmetic Retail sector in Dhaka.
 To identify the risk level that is associated with the business of opening cosmetic retail
shop in Dhaka.
 To assess the viability of concerned business plan in terms of both financial and non-
financial aspects.
 To recommend the suitable ways to an entrepreneur that ensures smooth functioning of
business.
1.6 Research questions
In the field of research, scholar is required to frame appropriate questions by taking into
consideration the objectives. Moreover, questions provide direction to the scholar and thereby
help in conducting study in the best possible manner:
Question 1: What is the trend of cosmetic retail sector of Dhaka?
Question 2: What is the extent to which starting retail cosmetic shop in Dhaka is financially
and non-financially viable?
1.7 Tools & theory
In the present business plan, various tools and techniques have been used. Swot analysis
will be applied in this study that would help in analysing the strengths and weaknesses of Rose
petals. SWOT analysis will be beneficial tool for the current investigation because that would
help in knowing the potential of the cited firm whether it is able to run its business in Dhaka or
not (Vorster, 2014). By using this theory issues in the system can be analysed and effective
strategies will be made so that cited firm can get establish in Gulshan. Dhaka is the new country
for the Rose Petals thus, through SWOT it will be able to know opportunities for the business in

the Dhaka nation. Ansoff matrix theory will also be used in the present business plan. This tool
will assist in making proper aims and objective of establishing the business in the Dhaka. It
would be most effective theory because that would help in addressing risk in the business. In this
way researcher will be able to make effective strategies so that it can enter in a completely
differed market easily (Quynh Trang Nguyen, 2013). Ansoff matrix includes market penetration,
market development, product development and diversification. All these strategies will be
helpful for scholar in getting overview that how it can make effective business plan for the Rose
petals.
Researcher will also include porter's five forces theory in the business plan. It would
assist in knowing supplier's power, customer's power etc. That will aid in knowing factors that
may cause difficulty to the Rose petals in establishing the business in Dhaka. Researcher will be
able to find solutions to these problems so that it can make effective business plan. Another
theory which will be used by the investigator is Mc Kinsey 7’s framework analysis. It includes
strategy, structure, system, shared values, skills, style and staff (LI and ZHANG, 2016). That is
considered as most effective tool for making business plan. This theory will help the researcher
in knowing skills required to enter into Dhaka. In addition, it will give in-depth detail about way
of operating the retail shop in new location so that company can perform well in the new market.
1.8 Actionable assumption
It is considered as most important part of business plan. In this researcher will have to
pay attention on two main assumptions whether consumers want that product or not and whether
business owner will be able to make profit in the new location or not. One of the major
possibility in the business plan will be that people prefer to buy cosmetic products of the Rose
petals. That would help in competition analysis (Stark and et.al, 2015). It is a known fact that if
Rose petals offers some innovative cosmetic products to consumers then consumers demand can
be upwardly drifted. Researcher will have to look upon the fact that business plan can be
prepared in such a manner so that products of the organization can meet customers expectation.
Researcher assumes that Rose petals will earn more profit in the Dhaka’s market.
Researcher will have to do proper market research and have to prepare budget accordingly (Wu,
Yeh and Woodside, 2014). In this way they will be able to make effective business plan, that

would support cited firm in getting expected returns over their investments. For getting good
returns over investments pricing strategies will be included in the business plan.
Researcher will have to concentrate on skills required in human resources to work in the
retail shop in Dhaka (Łopaciuk and Łoboda, 2013). By this way scholar will include all these
persons in the business plan through which it can make it more effective In the present study
researcher will explain the start-up budget for the Rose petals, that would support in calculating
the profit to be generated in the future. These actions will assist scholar in preparing business
plan properly by paying attention of each aspect.
1.9 Time scale
Business entity will prepare and follow specific timeline or chart to draft business plan
within the suitable time frame. Moreover, timeline will clearly indicate to the scholar about the
time within which specific activity needs to be completed. Hence, by following the below
mentioned plan, business entity would become able to accomplish tasks within 12 weeks.

CAHPATER 2: OUTLINE OF THE BUSINESS
2.1 Concept statement
Dhaka is the potential market for cosmetic retail sector. Entrepreneur is planning to open
retail shop of fragrance and cosmetic retail products in Gulshan. The proposed business name is
'Rose Petals'. Gulshan, Dhaka is the place where most of the offices are running and potential
customers live near this location (Mata-Gómez and et.al, 2014). There are many diplomats are
living near the place and they have potential to buy products of the company. Thus, it has great
chance to get high profit by opening a retail shop in the Dhaka. That is the main reason of
opening fragrance and cosmetic retail shop in the Gulshan, Dhaka. Entity is planning to provide
quality and branded products to its valuable clients. It will concentrate of consumer's needs so
that they feel satisfied and buy its products frequently. It will offer cosmetic products of Olay,
Avon, Loreal, Nivea, Lakme, Dove etc.
Demand of cosmetic shop in the Gulshan, Dhaka is very high because near to this place
there is no retail shop of fragrance and cosmetic products. Entity will provide products and
services as per the needs of target audience. It will pay attention of price element and will offer
products at affordable rates so that it can cover mass audience. To market its products it will take
support of social media (Butler, 2013). Rose Petals will create its website where information
related to products and services, its prices will be available. It will make connection with the
people through social networking sites. Furthermore, firm will design and implement the social
media campaign in order to make people aware about the new business. All cosmetic products
which it is going to offer will be purchased by good suppliers those who can give quality
products at affordable rate. By this way entity will be able to offer same products at affordable
rate to the end users (Rocha and et.al, 2014).
2.2 Products & services
Entrepreneur is planning to open retail shop of fragrance and cosmetic retail products in
Gulshan, Dhaka. In which company will provide retailing cosmetics, retailing perfumes, personal
grooming, toiletries products to its potential buyers. The main aim of the entity is to offer
products and service to customers as per their need (Uggetti and et.al, 2014). Thus, it is planning

to analysing requirements of potential buyers and accordingly it will provide products to
population of Gulshan, Dhaka.
Objective of entrepreneur is to maximize profit by selling quality cosmetic and beauty
products to the customers through retail shop. It will operate its business by following legal
norms. Products and services of Rose Petals retail shop are described as following:
 Hair care and shower products
 Fragrances
 Nail care products
 Sun care, baby care products
 Cosmetics
 Skin care products
 Deodorant and shaving products
Entrepreneur will offer hair care products to the valuable clients. This will include all
items that can help in caring of hairs. All this hair care products will be branded and that would
give guarantee to the consumers. It will provide conditioner, gel etc. to the end users. It will offer
perfumes and nail care products as well (Stephenson, 2014). Furthermore, it will provide services
of guarantee to potential buyers. It will also provide services of home delivery. Customers will
get option to call in the retail shop and order their products. After that concern person will
deliver ordered item to the end users. Home delivery will be free from any charges. In addition,
Rose Petals will also give services of replacement of damage goods. Customers will have option
that if they get damaged products then they will be able to change their products with the correct
one. This will enhance trust of the potential clients and they will take services of the company
frequently. It will also provide them cash card in which on every purchase consumers will get
some points which can be converted into cash. These all products and services will help the
entrepreneur in attracting more customers towards the fragrance and cosmetic retail shop in
Gulshan, Dhaka.

2.3 Partnership
Rose Petals Retail shop establish their business in Gulshan, Dhaka, in which manager of
the cited firm make partnership with country's suppliers and branded company. It is beneficial
for the business because by making partnership with suppliers, organisation can receive high
quality products in an appropriate time at a right place. It can be said that agreement with
suppliers give an opportunities to the business to achieve its planned growth (Voigt, Buliga and
Michl, 2017). On the other side, company also make agreement with branded company which
make positive impact on their operations. It is useful for the firm to face the new changes in the
different environment. By making partnership with other companies helps them to deal in
diversified culture by which company give focuses to different people and work as per their
need. It is also useful for the cited firm to make effective customer reach by using various
marketing tools. In addition to this, it also broadens the business horizon and network which
make positive impact on the business growth. Rose Petal retail industry also make partnership
with research partners for making effective investigation about quality and price of related
products. By connection with beauty-streams also beneficial for the cited firm by which it can
forecast the services provided to the customers (Uter and et.al, 2013). For example: Rose Petal
Retail shop make partnership with Beauty streams by which it can analysis the style of
packaging done by the workers.
2.4 Segmentation
There are mainly four bases on the basis of which company can segment its customer
market namely demographic, geographic, psychographic and behavioural. Moreover, it is not
possible for the business entity to satisfy the needs and expectations of whole market (Segal and
Podoshen, 2013). Hence, business entity of Rose Petals will segment its customer base on the
basis of following aspects:
Demographic: Income
Business entity will target people who have high disposable income because affordability
is one of the main aspects that have greater influence on the decision making of customers. The
rationale behind the selection of high income group people is that they are high interested
towards purchasing quality and branded products. In addition to this, people who fall in the
category of high income group have financial capacity in relation to purchasing branded