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TABLE OF CONTENTS
EXECUTIVE SUMMARY
This plan is to set up a cosmetic shop in the name of " Briox Cosmetics Enterprise ", which will be located in Easy View Arcade Garage street Mbarara. The cosmetic shop will be a sole proprietorship owned by Akampurira Brian. I will use startup capital of 52,380,000 Uganda shillings. UGX 34,380,000 will be owners’ equity and the remaining UGX 18,000,000 will be a bank loan which will be secured from centenary bank at 10% interest rate.
The key personnel at the cosmetic Enterprise will include Senior manager, buying inputs and overall supervisory work, operations and production staff, sales and marketing staff, skin therapy and hairdressing staff, record keeping and accounting, stock control and direct selling staff
The key objective of the cosmetic shop will be to provide fresh quality cosmetics to our clients to enable them improve their general skin beauty, to obtain maximum customer satisfaction through continued quality production , to obtain continuous production and supply of our products to the customers, to create customer loyalty to our products such that they become well pronounced in the customer minds.
To achieve our objective, the cosmetic shop will employ strategies such as: Offering quality, body skin lotions, oils and herbal cosmetics that help fight the skin diseases made from fresh fruit and vegetable which are nutritious through adequate research and proper mixture of the lotions, oils and herbal ointments to meet the standard skin contents and characteristics of customers in the market through advertisement by use of sign posts, direct selling and radio stations, offering special incentive to our regular clients, offering our cosmetics at relatively lower prices for market penetration, creating a conducive environment for our clients, employing people who understand the meaning of customer care and meaning of quality by giving them samples for use as a way of expanding our markets especially among the young children, youth and women. All this encompasses our strategies that include, communication strategy, supplier relationship strategy, marketing strategy, competitive strategy and human resource strategy. The vision of the cosmetic shop will be ‘To be the leading suppliers of quality, fresh and health skin booting cosmetics product’
Our mission will be, dedicated at improving the skin health and body look and appearance of our client. "We seek to become the recognized leader in our targeted local and international market for carrying a diverse line of in demand cosmetics including perfumes, makeup, and other accessories that will have a competitive edge towards customer satisfaction and retention at attractive prices.
Our major customers will be corporate employees, students, market vendors, tourists and retailers who will be consuming a range of our products including; Perfumes 1st class, Lemon body lotion, Hair relaxer cream, Avocadoes body cream smoother and Hair glow.
Our forms/ ways of distribution will include, through Retailers, distributors and wholesalers who will buy and sell in bulk to our final customers which we cannot sell to directly we shall also sell directly to the customers because we have a high customer traffic at our main outlet in Mbarara. We shall as well be using a van that will be leased to distribute to our customers who order in large quantities.
In terms of our legal responsibilities, the following taxes apply to our business, sales tax, employees’ income tax, national social security fund and Mbarara Municipal Council Tax and other licenses like trading license, and Uganda National Bureau of Standards license. We shall as well need to the insurance for our business and also carry out other social responsibilities like corporate social responsibility, being environmentally friendly, and ensuring cleanliness of Mbarara town.
Our products are costed and priced after comparison with our major competitor’s prices and costing information acquired through market research. We have as well carried out cash flow estimates to ensure that our business does not run out of cash.
Our startup capital has been allocated to what we intend to start our business with that is renting building for two months, buying machines for mixing the inputs, Machines, leasing van, buying furniture and fittings, massage equipment, cloths and uniforms and other necessary things to start with including the employee salaries for the first two months.
This plan will be effective on 1st^ January 2018 and that is when my business will begin in Mbarara Easy View Arcade.
1.5. The business will sell in the following way
Distribute to our national and international distribution centers, supermarkets, retail outlets, our agents all over the countries in East African regions and some customers will buy directly from our company main outlet in Mbarara.
1. 6. The business will satisfy the following needs of the customers
Briox cosmetics will offer reliable cosmetics, lotions, and jerrys intended to improve the general skin health as well as boosting the beauty skin of our clients especially ladies, skin treatment, cure skin rashes, and ensure all time beauty of our clients.
1. 10. SWOT ANALYSIS
The Cosmetics industry is one of the growing industry in the country with a number of industries Unisex beauty cosmetics with many branches, and other small businesses which have joined the industry. Despite the increase in the Cosmetics industries, customer’s demands are not fully met due to the increasingly growing population and poor delivery of the cosmetics to the customers, Briox cosmetics Enterprise is therefore aiming at filling this gap. The industry has shown a great interest for investment. The industry has earned great reputation due to the increased differences in customer requirements like skin colors, hair styles by different hair cosmetics and customer general beauty.
1. 11. Strengths of the cosmetic enterprise
Availability of startup capital, Ability to make cosmetic products from local available fruits Strategic location in the Easy View Complex which has a high enough space. High level of customer care that we shall portray We shall operate on a daily basis 24 hours to meet our customer needs which will ensure constant supply. We shall do skin therapy to our special customers based on appointments at an affordable price which will gain fame amongst corporate women. High quality and exceptional packaging material which are environmental friendly that we shall offer. Operating from the cleanest environment Offering free training and consultancy services to our customers.
1. 12. Weaknesses
Limited nature inputs like fruits and vegetables to our business. Low supply of skilled labour that will assist in mixing the right quantities for the inputs Low levels of knowledge about the cosmetic business Low capital inputs to start up with in establishing the plant and expanding the business operations to other regions. Do not have enough record keeping mechanism. Inadequate experience in the market due to few months of operation than our competitors Few workers in company which delays production
1. 13. Opportunities.
Briox Cosmetics Enterprises is growing and new cosmetics dealers are setting up which will increase the market base. The competitors of Briox Cosmetics Enterprises do not know about the new emerging ideas in the global markets like new product development techniques to suit customer demand. The competitors of Briox Cosmetics Enterprises do not know how to efficiently manage their supply chain and distribution channels like Unisex group of companies. Financial boost from banks for service expansion and facility improvement.
1. 14. Threats
The customers are used to buying from already established cosmetic industries like Movit and Samona who can easily adopt to rapidly changing techniques of production and global competition which is hard to adopt to for us Constant changes in customer demands which impact on our level of satisfaction to our customers and changing economic environment. Evaluate my business idea
Number of strength……………………………………………… 09 Number of weaknesses…………………………………………. 07 Are there more strengths than weaknesses? Yes No Number of opportunities…………………………………………. 03
To provide high quality products to the clients through use of quality and standard in puts that is natural inputs. To use our experience to operate at lowest costs possible. To establish a strong and reputable relationship with the stakeholders of the Enterprise. To come up with new products in the Cosmetics industry.
1. 10. BUSINESS STRATEGY
This will include the communication strategy, marketing strategy, supplier relationship strategy, promotion strategy, Human resource management strategy and competitive strategy.
1. 11. Communication strategy
One of the most important aspects of a successful launch is a positive publicity for our cosmetics products. We will develop awareness campaigns to promote our product through several avenues. Our management team will fiercely have pursued positive perception through societal endorsement promoting the benefits of our product by actively seeking local news and media coverage to help on awareness.
1. 12. Competitive strategy
Position of the business in the heart of Mbarara and the whole of Uganda and also being near the high market area makes the product easily accessible by our customers. An aggressive advertising campaign will be undertaken so that we create much awareness of our product than our competitors through our highly skilled management team and employees that will be highly in contact with our customers.
1. 13. Marketing strategy
Briox Cosmetics Enterprises plans to communicate through outdoor advertising and television advertising to generate sales. This will be spearheaded by our marketing team to manage the marketing campaign. The key message associated with our products is high quality beautifying cosmetics and skin care.
1. 14. Human resource management strategy.
Briox cosmetics Enterprises will start up with its experienced members in various fields that are useful in the business to form competent team of trustworthy staff for efficiency and effective
operations and goal oriented. Provision of favorable working conditions to maintain a high degree of personal development and satisfaction of both employees and employers and ensuring that our employees are constantly trained where need arises.
1. 15. Supplier relationship strategy.
Briox Cosmetics Enterprises will ensure a close working relationship with our suppliers and where necessary undertake supplier development programmes that is providing improved varieties of agricultural inputs for example grapes, Chew cumber, palm fruits, avocadoes and lemons and tools that will ensure constant supply of our core inputs.
The results of the market research are summarized below. I used the information gathered from the potential customers and came up with the following information MARKET RESEARCH
Product Customers
Needs and preference of customers
Competitors
Perfumes 1st class Corporate employees they need unique scent that is packed in luxurious containers and can last long when used. Must be available in time and in recognizable supermarkets and shopping malls
Low quality perfumes that are not unique Does not always have knowledge of the latest products Inconsistent supply and so shortages in the market
Lemon body lotion Students Wide range of differently colored and flavored lotions offered at relatively low prices. Different sizes and shapes.
High prices and limited varieties not consistently supplied. Low quality and unattractive colours and shapes.
Emphasis is on high quality and quantities
Hair relaxer cream Market vendors Hair softeners with reliable supply in all corners of the country availed to all vendors in time.
Unreliable supply and un defined distribution channels that affects constant supply.
Avocadoes body cream smoother
Tourists High quality products availed in recognized shopping centers and malls High level of skin moisturizing and smoothening.
Low quality lotions with less moisturizing content
Hair glow Retailers Reliable supply at the right time and place in right quantities.
Delays in supply and un coordinated supply chain and distribution channels.
PRODUCT PLAN
We will specialize majorly in cosmetic products and manufacturing of locally made cosmetic products to treat the skin illness such as fungal diseases using locally produced vegetables and fruits as ingredients in the manufacture of these cosmetics We will offer free consultancy services to our clients, free cold water, and warm water for washing our hands. We will employ people who are easily accessible, customer oriented, efficient and effective. We will provide customized services like skin therapy and hair dressing to our most esteemed customers during the weekends when we are not very busy so as to meet their demands and needs by being agile.
2. 20. PRICE
The different sizes of our products will be charged different prices and my basis of pricing will be based on the total costs incurred, competitors’ prices and how much my customers are willing to pay. I have studied the prices of Baby Face Organic who are my major competitor and I think that selling at lower prices will be one of the most important ways of competing them. A low price is important especially for students, market vendors and retailers. I know that customers are willing to pay for my products in different sizes and shapes. I have studied the costs of production, distribution and marketing for each product that is for Perfumes 1st class all sizes averagely UGX 4,500, Lemon body lotion all sizes averagely UGX 4,000, Hair relaxer cream all sizes averagely UGX 3,500, Avocadoes body cream smoother all sizes averagely UGX 45,00 and hair glow UGX 4,000. With these prices in mind, I will fill in the price section of the business plan.
2. 21. PRODUCT PRICE FORM
Products, services or range of products offered Perfumes 1st class
Lemon body lotion
Hair relaxer cream
Avocadoes body cream smoother
Hair glow
Costs 4,500 4,000 3,500 4,500 4,
How much customers are willing to pay
35,000- lowest 40000- highest (corporate employees and tourists).
10,000-lowest 12000-highest (students and low income earners)
9,000-lowest, 10000-highest (market vendors and retailors)
21,000-lowest, 25000-highest (tourists and corporate employees)
10,000- lowest, 12000-highest (retailors and market vendors)
Price 38000 (cooperate employees), 39000 (tourists)
9000(students) 11000(low income earners)
10000(market vendors and retailers)
25000(tourists) 20000(corporate employees)
11000(market vendors and retailors)
Reason for setting this price
Relatively high price will help us recover the costs incurred in production.
Low price will enable us get a wide market from the low income earners and the students,
Relatively low price will ensure a high demand from our intermediaries who can sale at a profit
High price is in relation to the high quality of the products produced.
Relatively low price will ensure a high demand from our intermediaries who can sale at a profit
Discounts will be given to the following customers
No discount will be given
No discount will be given
vendors and retailers that buy in large quantities
No discount will be given
vendors and retailers that buy in large quantities
Reason for giving discounts
N/A N/A Discount will be given to the vendors and retailers that buy in large quantities
N/A Discount will be given to the vendors and retailers that buy in large quantities
Credit will be given to the following customers
vendors No credit will be given
Vendors and retailors
Vendors and retailors Vendors retailors
Reason for giving credit
To increase vendor loyalty to our products
N/A To create a wider market.
To make vendors stop selling our competitor products.
To create a wider market.
2. 30. PROMOTION
We intend to invest heavily in advertisement of our products through the use of signposts, face book, use of radios such as; Galaxy, Vision radio, which have a wider coverage. We also intend to use a highly skilled marketing manager to market our products; for example; in Kampala town universities, offices and other local areas around. We intend to also visit personally our general stores and major wholesalers of our products and use other few methods of promotion.
The objectives of promotion are;
To create awareness of our products to our customers To persuade the customers to prefer our products to those of our competitors Communicate to the potential customers about where our products can be found. Create a good initial image of our products in the society and our potential customers.
2. 40. promotion section of this business plan (form)
Type of advertising Details Costs A sign on the building The sign will say “Briox Cosmetics Enterprises” showing the product that we offer such that customers can know that there is a cosmetics in the building
50,000 (fifty thousand shillings)
Personal letters We will send personal letters to our vendors, wholesalers and selected retailors. We will introduce the letter that “Briox Cosmetics Enterprises”
60,000 (sixty thousand shillings)
Direct selling We shall sell our product directly to our customers and share with them information about our products and why they should use them.
No costs
Radio adverts We shall run radio adverts on vision radio in Mbarara and Galaxy FM in Kampala that will help in persuading the customers and at the same time serve to inform them where they can find our products
200,000 (two hundred thousand shillings)
Free delivery We shall deliver our products freely to our wholesalers and retailers selected
N/A
Sponsoring public shows
These will be the ones where the target customers will be converged in large numbers for example music shows.
The costs will depend on the type of show
Stickers We shall be giving free stickers to our daily customers containing the information about our products and where they can be found.
60,000 (sixty thousand shillings)
