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SUBJECT: Entrepreneurship
Project
Topic Name: Business Plan
Instructor name:
Sr. Tanveer Abbas
Submitted by:
Azin Zahra
(2016-BBA-008)
(2016-BBA-0)
Saba Alvi
(2016-BBA-0)
Submission date:
10th -December- 2019
ACKNOWLEDGEMENT
First of all we would like to thank the ALLAH ALMIGHTY for giving us strength and
attitude to complete this assignment with in due time. We deeply indebted to our course
teacher Sr. Tanveer Abbas we are also express the depth of our appreciation for our
honorable course teacher for his suggestions and guidelines which helped us in completing
this assignment. It was great experience for us to work and study.
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DEDICATION
We are dedicating our assignment of ENTREPRENEURSHIP to our respected instructor Sr.
Tanveer Abbas for his efforts to transfer essence of his experience and knowledge to his
students.
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Table of Contents
1. Executive summary of SFK Herbal Limited: ............................................................................. 6
2. Industrial analysis:........................................................................................................................ 6
2.1. Porter’s Five Forces Analysis: ............................................................................................. 6
Rivalry among competing firms .................................................................................................. 6
Potential Entry of New Competitors ........................................................................................... 6
Potential Development of Substitute Products ........................................................................... 7
Bargaining Power of Suppliers .................................................................................................... 7
Bargaining Power of Consumers ................................................................................................. 7
2.2. Industry size and growth:..................................................................................................... 8
2.3. Nature of participants in cosmetic industry of Pakistan: .................................................. 8
2.4. Key success factors: .............................................................................................................. 8
Attract the Target Market ........................................................................................................... 9
Select Multichannel Distribution ................................................................................................. 9
Monitor Industry Trends ............................................................................................................. 9
Adhere to Federal Regulations .................................................................................................... 9
2.5. Industry trend: .................................................................................................................... 10
2.6. Long-term prospects:.......................................................................................................... 10
3. Company description:................................................................................................................. 11
3.1. Mission: ................................................................................................................................ 11
3.2. Vision: .................................................................................................................................. 11
3.3. Products: .............................................................................................................................. 11
3.4. Current status: .................................................................................................................... 11
3.5. Legal status and ownership:............................................................................................... 12
4. Market analysis: .......................................................................................................................... 12
4.1. Target market: .................................................................................................................... 12
4.2. Market segmentation: ......................................................................................................... 12
4.3. Potential customers:............................................................................................................ 12
4.4. Competitor analysis: ........................................................................................................... 12
4.5. Market evaluation ............................................................................................................... 13
5. The economics of the business: .................................................................................................. 13
5.1. Start-up cost: ....................................................................................................................... 13
5.2. Fixed and variable cost:...................................................................................................... 13
5.3. Situational audit: ................................................................................................................. 13
Strengths ...................................................................................................................................... 13
Weakness ..................................................................................................................................... 14
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Threats ......................................................................................................................................... 14
Opportunities............................................................................................................................... 14
6. Marketing plan: .......................................................................................................................... 14
6.1. Marketing strategies: .......................................................................................................... 14
Advertising................................................................................................................................... 14
Pricing strategies ......................................................................................................................... 14
Distribution strategy ................................................................................................................... 15
Equipment needed ...................................................................................................................... 15
6.2. Estimates achieved: ............................................................................................................. 15
6.3. Sales tactics:......................................................................................................................... 16
7. Proprietary status of SFK Herbal limited: ............................................................................... 16
References:........................................................................................................................................... 17
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2. Industrial analysis:
2.1. Porter’s Five Forces Analysis:
Every industry has its peculiarities, which are sometimes hard to understand. Thus, in order to
better understand the context in which this or that the company operates, it is crucial to use
Michael Porter’s Five-Forces Model. There are following five forces that influence the
cosmetic industry of Pakistan. Moreover will influence our organization to influence;
The number of competing firms matters a lot. The difference of cosmetic is wide, so there is
an opportunity for rivals to sell different products. The industry growth influences the
development of competition. If fixed costs are high and switching costs are low, they increase
the rivalry in the industry. But our company is launching to products on the basis of
differentiation which are Scrub soup and Herbal Izoo freshener which unique products in the
cosmetic industry of Pakistan. So, there is chance that our company will face less difficulties
in term of competition.
If there are no considerable barriers to enter, there may be many new entrants (Berger, 11). For
the cosmetic industry, the most important barriers are the exclusive rights and economies of
scale. However, this industry has large capital requirements since the differentiation of
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products that are sold in it. Moreover, cosmetic retail is more widespread as chain stores or
exclusive brand retailers, which also make up chains.
For the cosmetic industry the crucial issue is the way for buyers to substitute and their willing
to do this. For the retailers it is better to sell unique products, for example to sell one cosmetic
brand. The less valuable is the change of quality, due to the fact that retailer cannot influence
the quality of products they sell.
Suppliers tend to have very little power in the retail industry. However, for the cosmetics the
exclusive suppliers matter a lot and influence the market. They can make retailers have large
inputs on the scale of orders. If the supplier is exclusive, the switching costs are very high. As
for the cosmetic retail, the inputs are slightly differentiated, so this variable is less crucial.
As for cosmetics retail, “buyers are fragmented; no buyer has any particular influence on the
product or price” (Porter’s Five Forces:A Model For Industry Analysis, para. 18). Still, buyer
has to be provided with the information and has a choice of substitutes. Some buyers tend to
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choose only one brand. Buyer volume and price sensitivity are less important because cosmetic
is what people tend to buy all the time, and prices do not react on the slightest changes. (David,
2019)
Quality ingredients can ensure the integrity of your cosmetics brand, whether you offer an
organic line or not. Customers look for ingredients that ensure their cosmetics, such as eye
wear, are long lasting and won't disappear by the end of the day. Customers also search for
products that protect and improve their skin. If customers discover that your cosmetics lack
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quality, they may switch to another brand. Ensuring the quality of your ingredients means you
need to spend time in the lab working with developers to create formulations that fit your
budget and brand. So, SFK Herbal limited is offering both organic and skin protecting products
for their consumers.
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Moreover, SFK Herbal limited is following the all law and regulations prevailing in the
Pakistan. (Brookins, 2019)
While ‘clean eating’ and ‘conscious fashion’ were the buzz phrases of last year, it’s the ‘clean
beauty’ movement that is causing a stir in 2018. Around the world and in Pakistan, the talk is
all about going back to natural ingredients to solve skin and hair problems (the two largest
segments within personal care in terms of consumer spending). Haq explains that, “Pakistani
women are looking for solutions with natural goodness because they have grown up with
todkas about how herbs boost beauty. The modern consumer wants a specific benefit (fairness,
for example) through natural elements.” This explains the recent launch of Fair & Lovely
Herbal, which was introduced as a variant for people who wanted a natural solution to attain
flawless fairness.
In line with the rising demand for naturals is the expanding niche of ‘halal beauty’, which has
been identified as a significant growth driver for global personal care companies. With close
to 300 million middle-class Muslim families worldwide, projected to grow to 900 million
within a few years’ time, the interest in halal-certified products is understandable. However,
according to Dinar Standard, a growth strategy research and advisory firm focusing on the
Organization of Islamic Cooperation countries, the demand is also stemming from millions of
health-conscious, non-Muslim consumers who are looking for a holistic approach to realize
their beauty and wellbeing goals. This explains why between 2013 and 2016, halal product
launches accounted for 2.5% of all launches in the global beauty and personal care category,
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while in the Asia Pacific region, with a predominantly Muslim population, the percentage goes
up to 72%. In Pakistan, Masarrat Misbah Makeup, Odho Cosmetics and Luscious Cosmetics
are three homegrown halal makeup options for consumers. However, claiming ‘halal-certified’
is complicated for the simple reason that every country seems to have a different set of
parameters. For Pakistan, it is the guidelines provided by the Pakistan National Accreditation
Council (PNAC), which is a member of the International Accreditation Forum (IAF) along
with more than 70 countries. With giants such as L’Oreal and Unilever having already stepped
up their game to acquire halal certifications for their personal care and beauty brands, the battle
to cash in on halal beauty will only intensify.
So, because of this trend our organization is coming with herbal products with skin solutions
to provide consumers with more effective results.
3. Company description:
SFK Herbal private limited is a cosmetic company. Which is found in Sep 10, 2019. Its main
focus is on organic beauty products production. As Pakistani market is going towards the
natural products usage to protect skin and use products with good effects for skin. So, this SFK
Herbal limited is come with organic solution of skin in the form of two beauty products.
3.1. Mission:
To provide herbal skin care products on the basis of consumers satisfaction.
3.2. Vision:
To be the leading herbal skin care organization of the Pakistan.
3.3. Products:
SFK Herbal limited is providing herbal skin care products which are following;
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4. Market analysis:
4.1. Target market:
The market will consist mainly of basically anyone who requires soap and face freshener for
this includes; individuals, homes, institutions, businesses, and industries. SFK Herbal limited
potential customers comprise of people who have an eye for quality and pocket-friendly
products and also have cleanliness in mind. Considering our target market, we are looking at
meeting the needs of over ten thousand people. Although it’s new products, we expect high
patronage and acceptance right from its inception because the product is distinctive, and is
priced attractively; below prevailing market prices. We expect to win our customers gradually
from the existing providers of similar products over time with attractive prices, packaging, and
customized services. This presents us with a wide range of clients to cater for.
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advantage. Additionally, the accessibility of our products through marketing links and the fact
that the products are homemade produced will be placed ahead of our competitors. Quality
services will be offered to create a niche and therefore making it highly difficult for any stiff
competition. To sustain our competitive advantage, we shall continue to focus on the four
generic building block of competitive advantage (efficiency, quality, innovation, and clients’
responsiveness) to improve distinctive competencies that contribute to super performance.
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6. Marketing plan:
We plan to pursue personal selling techniques and in the near future advertising and publicity
to market our business and its product. Another form of promotion which will be useful in the
early stages of the business is sales promotion. A number of sales promotion activities would
be undertaken to market the homemade herbal scrub soaps and herbal IZOO face fresheners.
A one-to-one interaction between the customer and the seller will be used to reach potential
customers.
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Distribution strategy
We will strive to have a well-coordinated distribution system that will ensure that the gap
between the business and its clients are bridged. Steps will be taken to ensure that the business
outlets are strategically located to ensure that the products reach the target market.
Equipment needed
For soup:
o Silicone Spoons & Spatulas
o Containers for Mixing the Soap Batter
o Scale
o Containers for Measuring and Mixing Lye
o Water container
o Immersion Blender
o Thermometer
o Soap Molds
o Gloves & Goggles. Etc.
For face freshener:
o Aloe Vera plants
o Glycerin
o Ark-e-Gulab
o Vitamins B&C
o Silicone Spoons & Spatulas
o Containers for Mixing the Soap Batter
o Containers for Measuring and Mixing Lye
o Water container
o Immersion Blender
o Thermometer
o Gloves & Goggles. Etc.
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References:
Brookins. (2019). Critical Success Factors in the Cosmetic Industry. Retrieved from Chron:
https://smallbusiness.chron.com/critical-success-factors-cosmetic-industry-
12747.html
David. (2019). Porter’s Five Forces Model for Cosmetics Industry Analysis Example.
Retrieved from AvyPanda: https://ivypanda.com/essays/implementation-of-the-
porters-five-forces-model-on-the-cosmetic-retail-industry/
Pakistan Skin Care. (2019). Retrieved from Market Resaerch.com:
https://www.marketresearch.com/seek/Skin-Care-Pakistan/1554/1237/1.html
Shaikh, A. (2018). The Business of Beauty. Retrieved from AURORA:
https://aurora.dawn.com/news/1143226
Subohi. (2015). Booming Cosmetic Market. Retrieved from DAWN:
https://www.dawn.com/news/1214053/booming-cosmetics-market
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