Business Plan: Herbal Beauty Salon in the UK Market

This report presents a comprehensive business plan for a herbal beauty salon, focusing on the UK market. It begins with an introduction highlighting the importance of market research and business planning. The core of the plan includes an overview of the proposed herbal beauty salon, emphasizing its unique selling points such as herbal ingredients and eco-friendly packaging. A detailed PEST analysis evaluates the political, economic, social, and technological factors influencing the business. The report also assesses the competitive landscape, proposing cost leadership and differentiation strategies based on Porter's model. Finally, the plan identifies the target market as individuals above 14 years old, offering unisex herbal services at reasonable prices. The conclusion reiterates the significance of environmental analysis and strategic planning for business success.

Business plan

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
BUSINESS PLAN...........................................................................................................................3
Overview of the proposed new business idea..............................................................................3
Evaluation of external environment of the business....................................................................3
Competition and competitive advantage......................................................................................5
Proposed target market................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
It is very essential for every business organization to carry out the market research in
regard to introducing the new product in the market. The market research helps in providing
relevant and useful business and market related information so that a business organization can
effectively implement the right strategy in order to attain its desired aims and objective. The
formulation of the business plan provides assistance to the businesses in respect to the way in
which the business wants to go and helps in incorporating the business objectives in a better way.
This report will provide the creation of the business plan in respect to the new business idea
which involves an overview of the new business idea, an evaluation of the external business
environmental factors. It also states about the competitive advantage of the business plan and the
suggested target market.
BUSINESS PLAN
Overview of the proposed new business idea
The new proposed product is the herbal beauty salon which will be for all types people of
all age group. This is help in getting energy and is very nutritional. This product is made up of
the unique herbal ingredients which are useful in generating healthy cells, providing relaxation
and freshness to the consumers. The product is not having any side effects unless the consumer is
allergic to any of the ingredients utilized in creating this product. The packaging of the product is
recyclable and therefore, environment friendly. This business will take proper care of its
customers and the environment in which it is operating so that it will result into effectively
handling the business activities.
Evaluation of external environment of the business
For the purpose of evaluating the macro environmental factors which might influence the
business decision-making along with the factors which might impact the business, the PEST
analysis is being done. This is basically a marketing concept which is utilized by the
organizations in order to track down the environment in which it is operating or the new business
is planning to establish itself. A detailed analysis is given below.
Political factors: The major political factors that will have a huge impact over this
business idea is that the product safety. The company will be required to comply with the
Personal Care Product Safety Act, which helps in ensuring that the product used are safe. Also,
the company is required to provide all the required information pertaining to the services it will

offers and ingredient being used in its product (Nguyen and et.al., 2018). Also, the company
needs to ensure that it has meet with the all the relevant criteria for the purpose of establishing a
herbal beauty salon. The most important thing is the licence is being acquired which help in
reducing the negative impact in associated with the political factors. The company needs to
identify the other government rules and regulation that is required to followed in order to
establish a new business as complying with the same will help in ensuring that all the business
activities is being carried out properly and effectively. Regular monitoring and information about
the changes in the political scenarios and the rule and regulation pertaining to it so that it can
account for it on a timely basis which helps in ensuring that it is meeting with the business
requirements. Therefore, it can be stated that the political factor will be having a huge impact
over the success of the new business idea which helps in ensuring proper functioning of the
business activities.
Economic factors: The beauty salon is also affected by the various factors such as the
economic slowdown, decline in the purchasing power of the customers. This factor is required to
be taken into account in regard to the effective management and carrying out of the business
activities. The beauty industry in UK is very large and is also considered as a necessity just
similar to eating or having shelter. The people will always require a need to have a grooming
themselves and to look good and fresh (Rastogi and Trivedi, 2016). Thus, this will results into
increasing in the need of the beauty salon. Due to the emergence of Covid-19 has affected the
disposable income of the people, which consequently leads to little decline in the demand but
this can be increased if the beauty salon offers its products and services at a reasonable price and
effectively meeting with the requirement of the business. Therefore, this factor will have a
moderate impact over the functioning of the business activities and should be analysed on a
continuous basis.
Social factors: There are number of services which are being offered by the organization
in order to meet with the changing requirements of the business. The requirements of the
customers differs from time to time which increase the need for the businesses to analyse the
market and most importantly, the attitude and behaviour of the customers towards the change.
There are dozens of salons in the UK and thus, in order to attract and grab more customers it is
important to create a brand value along with creating brand loyalty (Pavliková and Čihovská,
2017). The business is required to regularly monitor the changes in regard to change in the needs

and wants of the customers, tastes, preferences and expectations. This makes it crucial for the
organization in order to make sure that the product and services of the business is helps in
satisfying the needs and requirements of the customer resulting into creating customer loyalty
and positive brand image.
Thus, this is an important factor which is having a full potential to impact the operation of the
new beauty salon.
Technological factors: The up-gradation in the technology is also an important factor
which can influence the impact of the business. The internet has revolutionized the way business
is being carried out. In the beauty industry as well the business has been highly impacted by this.
The large brands like L’Oreal and Lakme is having effectively made use of the technology in
making things comfortable for the customers (Vrtaňa, 2019). The businesses have made use of
the different types of the various types of technology which has supported in grabbing more
customers. Therefore, in order to survive in the market it is very essential for the company to
implement the latest technological upgrades like providing online website so that customers can
go through it and gain insight about the business. This factor will have a high impact over the
business functioning and growth and therefore, it is very important for the business organization
to identify the relevant changes and introduce the same in the business which will result into
taking the competitive advantage. Thus, this factor will have a huge impact over the business
operations and functioning.
Competition and competitive advantage
The competition in the UK market is very less since the herbal salon in UK is either very
less in number or there is no such business. Thus, the current competition for the business is very
low but in comparison to the other top brand salons in the UK which are non-herbal can be a
touch competition. Therefore, the company is required to analyse these competitors and based
upon which it should implement its strategies.
In order to effectively attaining the competitive advantage it is crucial for the business
organization to recognize and implement the strategies in order to effectively attain the
competitive advantage. This can be analysed with the help of Porter's Generic Competitive
Strategies which helps in determining the way of competing. Under this model there are two
types of strategies which are stated below.

Cost leadership: Under this form of strategy, a firm use work on becoming the low cost
producer within the industry. This can be considered as a traditional method with the main
objective of producing on a larger scale which supports the producers in exploiting the
economies of scale (Islami, Mustafa and Latkovikj, 2020). If the business entity is able to
achieve and sustain the cost leadership which will result into enhancing and improving the
performance of the company. If this strategy is being implemented by the new herbal salon
business then it can take the advantage of economies of scale.
Differentiation: Under this strategy, the company will be introducing the new and
something unique to the industry. This uniqueness will help in differentiating the establishment
from the another (Porter's Model of Generic Strategies for Competitive Advantage. 2020). This
differentiation is in many aspects and is also being valued by the buyers or the customers. Under
this, the new business, needs to perceive that attribute which is being considered important by
the buyers and therefore, uniquely positions itself for effectively meeting with the needs.
Cost focus: As per this, strategy, the business will mainly focus on the seeking the low
cost advantage in its target market. In this, the product or the business is basic is also mainly
concentrated on the narrow market within the industry. This strategy is mainly useful when the
similar products are available in the markets but at the higher price.
Differentiation focus: This is the classic niche marketing strategy in which the
businesses establish themselves in the niche market segment at the higher price with the
differentiated product and services (Dombrowski, Krenkel and Wullbrandt, 2018). This helps in
adding value to the clients and attaining success in a more effective manner. So, the new herbal
salon business is required to identify and promote its business in respect to its USP which is
essential for grabbing the attention of the users.
Therefore, based on the above analysis of the various strategies, it can be stated that it is
effective for the business to implement the cost leadership and differentiation strategy which
will help in effectively focusing on the cost element along with the unique and differentiating
factor which will support in grabbing more customers towards it.
Proposed target market
The target market mainly refers to the group of the customers to whom the business is
willing to sell out its products and services. This is the group on which the company direct its
marketing efforts and the consumers under this target market, shares the similar characteristics in

regard to the geography, demographics and the purchasing power. This is considered to an
essential step in the direction of the creating an effective and appropriate marketing plan. The
target group for this new business idea will be people of above the age of 14 and it will be a
unisex salon providing herbal product and services which is very rare in the UK market. The
price of the services will be reasonable and can be afforded by the lower middle to the upper
class people. This market is being selected as they are one's who are interested in the getting
effective brooming and skin care treatment and the people below this age would, might have skin
related issues.
CONCLUSION
It can be concluded from the above that in order to effectively establish a new business it
is crucial to identify the key attributes of the business. This will be useful in implementing the
strategies which can be useful in promoting its business and creating a brand image. Before,
formulating and implementing strategies, it is essential to effectively analyse the external
environment in which the business is willing to operate. For this, PEST analysis is being carried
which assisted in determining the factors which might have a great influence over the business
functioning. Along with this, the competitive advantage of the business is also being analysed
and the strategies which can be helpful in effectively accomplishing the desired objectives.
Based on this cost leadership and differentiation strategies seems to be useful for the new
business for grabbing more customers. At last, the target market of the business is being
determined to whom the products and services will be offered. Therefore, it is very crucial to
have an effective business plan for the purpose of establishing a new business.

REFERENCES
Books and journals
Dombrowski, U., Krenkel, P. and Wullbrandt, J., 2018. Strategic positioning of production
within the generic competitive strategies. Procedia CIRP. 72. pp.1196-1201.
Islami, X., Mustafa, N. and Latkovikj, M. T., 2020. Linking Porter’s generic strategies to firm
performance. Future Business Journal. 6(1). p.3.
Nguyen, H. P. and et.al., 2018. Modernizing regulation of cosmetic products: Reintroduction of
the Personal Care Products Safety Act. Journal of the American Academy of
Dermatology. 79(2). pp.403-405.
Pavliková, M. and Čihovská, Č., 2017. Adaptation of marketing tools in retail
companies. Economic annals-XXI, (164). pp.71-75.
Rastogi, N. I. T. A. N. K. and Trivedi, M. K., 2016. PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering
and Technology (IRJET). 3(1). pp.384-388.
Vrtaňa, D., 2019. Successful Marketing Strategy Using Offline Marketing Tools. Marketing
Identity. 7(1). pp.401-410.
Online
Porter's Model of Generic Strategies for Competitive Advantage. 2020. [Online]. Available
Through:<https://www.tutor2u.net/business/reference/porters-generic-strategies-for-
competitive-advantage>.