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    Business plan of

    Blossoms

    ABOUT US

    Our company BLOSSOMS is formed on the basis ofthe word blossoms which stand for tenderness andpurity.

    Our blossom family proudly presents the perfectmixture of best herbs from the treasures of theHimalayas, in our skin and care line.We believethere is only one way to be beautiful, and thatsnatures way. Weve believed this for years and stilldo. We constantly seek out wonderful naturalingredients from all corners of the HIMALAYAS, and

    we bring you products bursting with effectiveness toenhance your natural beauty.

    The soul of beauty

    Beauty is not in the face; beauty is a light in theheart.

    Beauty... when you look into a woman's eyes and seewhat is in her heart.

    I'm tired of all this nonsense about beauty being onlyskin-deep. That's deep enough. What do you want -an adorable pancreas?

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    To us, beauty is a feeling, a natural way of being,where character, self-esteem and humour are freelyexpressed and celebrated. Thats the soul of beauty.Its not just about looking beautiful. Its aboutexuding a vibrant attitude to life.

    ONCE UPON A TIMEThe whole idea of coming up with a skin rangestarted from the concept of woman of substance.

    Today we see Indian women has stepped out of hersocial restrictions and comes across as a determinedand confident person. She knows what she wantsand knows how to get it. She is a professional in the

    corporate and on the contrary is a caring mother, aloving wife, and a sweet sister at home.

    We call her as the SUPERWOMAN, and offer a skincare range especially for her.

    We try and make looking good externally a littleeasy, natural and economical.

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    WHY GO GREEN??

    We decided to go completely herbal in our products.

    The reason for this is as follows: In recent years, people have realized the

    adverse effects of using cosmetic products thatcontain chemical ingredients.

    While chemical ingredients have overalldamaging effects for every consumer, somepeople exhibit immediate health problems uponuse of such products.

    For instance, people with sensitive skin or thosewho have recently undergone some kind ofcosmetic or plastic surgery tend to react withrashes or have other allergic reactions to thechemical components of such cosmetics.

    Such reactions gave rise to the need for allnatural cosmetics.

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    WHAT ARE NATURAL PRODUCTS ?Natural cosmetics are those which are not madeusing any chemical ingredients and fragrances. This

    reduces the chance of anyone having an allergicreaction to the components of such cosmetics.People with sensitive or acne-prone skin thereforefind natural skin care cosmetics makeup provides anexcellent make-up alternative for their skin type.

    THE NEED.

    It is no new fact that ordinary commercialbeauty and cosmetic products often containtoxic and chemically-potent substances.

    The regulations to restrict the use of these havebeen getting gradually firmer but the truth ismost cosmetic products, even those that aremanufactured by well-reputed brands at the top

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    of the cosmetic market, may often contain suchharmful products.

    For instance lead-content in make-up makes thecosmetic last longer and hence cosmeticcompanies often use this toxic and carcinogenicmaterial.

    Few people realize that they will be paying forthis long-lasting effect with their health andwell-being.

    As more people around the world grow aware ofthe dangers of using chemical cosmeticshowever, the demand for certified organic skincare and cosmetics is rising steadily.

    To cater to need of the people to provide safetyfor their skin with no side effects, we have decidedto manufacture herbal skin care products.

    OUR OFFERINGS.

    The working women have to step out everyday andface the hardships of the environment. She has nooption but to go out in the morning and come back inthe evening.

    The 9 to 5 job hours leave the lady with very little or

    no time for her to care of the skin.Again, visits to beauty saloons are not veryconvenient plus is expensive.

    Therefore, wewish to come up with an anti pollutionrange comprising of various creams and lotionswhich help in protecting the skin against damages

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    caused by dust, sun, harmful UV rays, chemicals,exhaust smoke, industrial pollutants etc.

    Wheres the money???

    The sources:

    Shikha is a die hard fan of salman khan. When shegot to know that theres a show coming up on TVwhich is going to be hosted by salman himself, she

    just could not stop herself. She got herself registeredfor playing the show and went to Bombay for it. Herstars favored her and she got the chance to play duska dum with the legend himself.

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    As its saidjab upar wala deta hai to chappar farke deta haishe not only got the chance tomeet salman khan but also miraculously ended upwinning the show!!!

    So she bagged up a wholesome 10 crores!!After tax deductions she was left with 9.70 crores.

    A loan worth Rs.5 crores was raised against theproperty in gurgaon from HDFC @10% per annum for15 years.

    Shikhas father is a real estate business man. He hasa idle 3 storey building in Udyog Vihar in gurgaon,which he gave it to her to realize her dream.

    Shikha offered this proposal to us (her friends) andgot us in the management of blossoms.

    So we five are the board of directors in blossoms..

    Each of us got 30lacs as capital which in total addedanother 1.20 crores in the investment.

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    So we have a total of 16.20 crores.

    SOURCE AMOUNTDus ka dum 9,70,00,000Loan from HDFC @ 10% 5,00,00,000Capital bought in by each 1,50,00,000(30 lacs X 5)

    TOTAL: 16,20,00,000

    Turning dream into reality:

    Remembering the basic principles of management,we prefer going step by step according to the 4 Ms.

    MANPOWER

    We have the place and we need manpower, this ishow we got the best people for the job:1. Operators-6 @ 5000pm2. Security guard-2 @ 3000pm3. Accountants- 2 @ 10000pm4. Sales representatives-20 @7000pm (all females)

    EMPLOYEE NUMBER SALARY

    Operators 6 5000pmSecurity guard 3000pm

    Accountants 2 10000pmSalesrepresentatives

    20 7000pm

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    Materials

    Wegot in touch with a manufacturer of herbalcosmetics in Himachal Pradesh.

    MR.ROHIT VERMA agreed to our requirements andentered into a contract to supply us the following

    product:1. Herbal face cream2. Cleansing milk3. Toner4. Sunscreen gel5. Night cream6. Face wash7. Scrub

    8. Lip balm

    All these items will be manufactured by them and wewill do the final packaging.

    We also entered into a contract with MR.KUMAR NSONS who will provide us with the following items:1. High grade bio degradable plastic bottles

    2. Glass bottles

    The rates were fixed according to the sizespecification:

    MACHINERYWe bought the following machinery:

    1. Fully automatic packer master [email protected] crores each2. Maruti omni-4 @ 2lacs each (cng)3. Sri ram Honda generator-1@30lacs

    MISCELLANEOUS1. Furnishing and fittings-50lacs

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    THE MARKETING

    1. S.T.P. ANALYSIS

    SEGMENTING ANALYSIS

    Urban areas

    Delhi and NCR

    Females

    Working women

    Age 25-35

    Income < 50,000

    Our chosen segment consists of working women inthe above mentioned age group of 25- 35 years.

    TARGETING ANALYSIS

    We plan to target those women who neglect theirskin care regime either because of hectic schedulesor resistance to use chemical products.

    POSITIONING ANALYSIS

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    We want the women to see and identify blossoms asa brand that provides easy and natural skin care.

    We want BLOSSOMS to be identified as a brand thatcaters to the beauty needs of not only elder womanbut teenagers as well. We try to position ourselves in

    the minds of the consumers as someone who helps instaying beautiful..naturally, which is evident fromits tagline itself

    CLOSE TO NATURE..CLOSE TO YOU..

    On the above mentioned basis blossoms has thefollowing characteristics:

    1. Someone who takes care of your beauty needs.2. Something that is not harsh on the skin.3. Above all, its Indian.

    2. The WLD analysis:

    WIDTH: The width of our offering is narrow becausewe believe in expertise. We offer skin care againstpollution in our anti- pollution range.

    LINE: Our product line is as follows:

    1. Herbal face cream

    2. Cleansing milk3. Toner4. Sunscreen gel5. Night cream6. Face wash7. Scrub8. Lip balm

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    DEPTH: The above listed products are available inthe following sizes an skin types:

    Our products are designed for all skin types .

    1. Face Cream 100ml, 200ml

    2. Face Wash- 50gm, 100gm3. Night Cream 50ml, 80ml4. Toner 100ml5. Scrub 50gm, 150gm.6. Cleansing Milk 50ml, 120ml, 200ml7. Sunscreen Lotion 50ml, 100ml8. Lip Balm 10gm

    CONSISTENCY:

    Our products are quite consistent with each other,since all of them fall in the same category- skin care.

    The use of our products are related in quite asignificant manner. Since all our products are usedfor the purpose of facial skin care, the usage and the

    directions of use of all these products is very closelyrelated.

    The size of bottles and the pricing of ourproducts are also closely related. There is notmuch difference between them.

    The advertising and promotion strategies usedfor the products are also the same.

    OUR USP:

    1. 100% natural from the raw materials to the finalbottle.2. Low price as compared to existing products in themarket.

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    3. Superior quality herbs.4. Dermatalogically tested No SIDE EFFECTS.5. Supporting an NGO- MAHILA KALYAN PARISHAD, inHimachal Pradesh, working for the cause of womenempowerment.We plan to donate 10,000 of our earnings to them.6. One of a kind range for the super women of the

    metros.

    THE NOBLE CAUSE:

    Mahila Kalyan Parishad is working consistently intribal area district Kinnaur Himachal Pradesh.Organization is implementing NACO projects in the JPhydropower projects in kinnaur targeting the migrant

    labourers and also working on community basedprogrammes of NRHM.

    Organization is also availing counseling services towomen and families in the geographical area for thebetterment of family ties and women empowerment

    Its mission is to contribute towards the

    empowerment of disadvantaged women and childrento enable them to gain control over their own, theirfamilies' and their communities' health.

    In order to provide a good flow of information, adocumentation and information centre has beencreated. Today main efforts are aimed atdocumenting the lives of women and children in India

    and health issues. The collection contains a specialsection of training manuals, information kits andmodules. Languages: English, Hindi, Gujarati.

    It Also aims to develop a feminist perspective inunderstanding women's issues and the women's

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    movement, and to sensitize everyone about women'sissues.

    Category 1 WomenCategory 2 - Community DevelopmentCategory 3 - Medical - HIV / AIDsCoverage - Kinnaur District ,HP

    THE THREATS:

    COMPETITORS: Himalaya and Lotus.Himalaya is our core competitor.

    INDUSTRY ANALYSIS:

    The skin care market is valued at $180 million inIndia.With safe and effective procedures, advancement inmedical technology, increase in awareness, theIndian Skin care solutions business is growing veryfast.

    The skin care market can be segregated into toners,cleansers, sunscreens, anti-wrinkle creams, darkcircle removing creams, astringents, facial creams,moisturizers, fairness creams, day and night creams,

    etc.

    Out of these, facial creams, moisturizers, fairnesscreams, day and night creams, etc. are the mostpopular products and account for approximately 60%of the skin care segment.

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    The skin care market is at a primary stage in India.The penetration level for both the urban and ruralmarket is low.

    The profits in the skin industry are still on the lowerside because many people are scared of using

    chemical products on their skin.

    Many people still prefer to use home made andtraditional products to cure the skin problems.

    However, within a period of five-six years, the use ofskin care products has increased significantly inIndia. With changing life styles, increase in

    disposable incomes, greater product choice andavailability, and influence of satellite television, morepeople are taking interest in personal grooming. Thefacial skin care market is booming.The most lookedafter part of the skin by the customers is their face.Hands and legs are also soothed but the mosttreated is the skin.Products are competing with one another to take

    shelf space in the retail stores. Facial skin careproducts have become an essential part of thebeauty market.

    Like western countries, creams and potions areapplied in India also, in an effort to remove thepimples and the acne, fight stress and worry lines,and to remain young. Since the penetration level is

    still relatively low, growth is expected to be around25% over the next five years.

    Some of the major players in this segment areHindustan Lever (Fair & Lovely, Lakme, Ponds) with amarket share of 53%, followed by Cavin Kare -Fairever with a market share of over12 % andGodrej-Fair Glow with a market share of 3.4 %. The

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    other players that have a presence in the market areEmami (Gold Turmeric and Naturally Fair), Revlon(Fair & Glow).

    SWOT ANALYSIS:

    Let us have a look at the SWOT analysis for the skinIndustry in India.

    STRENGTHS: More and More people( especially the females)

    are becoming conscious of their skin. During thethree decades, from 1970 to 1990, the skinindustry has gained momentum in its extensive

    development through per capita consumption.Even some segments may vary; the cosmeticindustry is near maturity. The current annualretail sales of the industry totaled up to $14.5billion.

    A very good strength for the skin care productsmanufacturing companies, and especially thosemanufacturing herbal products is that manypeople are now switching over to naturalproducts or medicines.

    WEAKNESSES: According to past developments, things have

    never remained the same for the Skin Industry.The industry is no longer recession-proof and isnow bound for depressions and declinations.

    The sales in the past year are slow movingbecause of downed consumer spending.

    Another setback of the industry is the demand-price ratio. Within the past five years, the priceswere invariable and steady but promotionbudgets were growing and getting greater thanever.

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    OPPURTUNITIES:

    In keeping away from a potential head-oncompetition, a strategy of focusing on specialniches proved to be effective especially in thestruggle with the industry leaders. This hasbeen a great line of attack adopted by smallercompanies in their contest with the marketleaders. They survive and exist throughspecializing in niches, differentiating the productlines, and focusing on market segment.

    Also, an opportunity lies in store for the newcompanies if they offer new products atrelatively low prices when compared to theexisting products.

    The massive surge in the popularity of Skin careproducts, statistics have shown that the averageIndian consumer spends much less on skin careproducts than consumers from every other partof the world. This means that the Indian skincare industry has an even greater potential forgrowth than it is presently experiencing.

    THREATS: Notwithstanding the apparent growth of the skin

    care industry in the past four decades, there arecurrently more than 700 growing skin carecompanies competing in the market.

    Additionally, there are also market leaders thatdominate the skin care industry. Consequently,it creates stiff and intensifying competitionespecially to the smaller companies as market

    leaders are putting pressure on these smallercompanies.

    COMPETITOR ANANLYSIS:

    In recent years in the skin care market Indiacompetitors have begun to manufacture products to

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    cater to an International need. For instance, herbalcosmetics from India have a great demand in theoverseas market and many skin care products thatare manufactured in India today are supplied tointernational suppliers of branded cosmeticsproducts.

    As we are manufacturing all natural products in theanti- pollution range for skin care; we consider ourbiggest competitors to be Himalaya and Lotus SkinCare.

    While, Himalaya is our core competitor which isproviding us competition in almost all our productslike toner, face wash, moisturizer and night cream,

    Lotus is a relatively small player and offers productssuch as cleansers, toners, moisturizers, protecters,nourishers, correctors and enhancers.Himalaya is a much more popular brand with thecustomers as compared to lotus. Alsoadvertisements, posters and symbol of Himalaya ismuch more in common and is more in remembranceas compared to Lotus Skin Care.

    MARKETING STRATEGY FOLLOWED BYHIMALAYA:

    The thrust of Himalayas marketing strategy ison offering products which have very clearlydefined problem solving benefits.

    There is little dependence on advertising and

    very high importance attached to encouragingconsumers to spend time at exclusive stores andother retail outlets in seeing products, readingbrochures and getting briefed by trained doctorsand executives.

    A Himalaya consumer typically starts with asingle positive experience and moves within the

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    brand to other products. It is quite normal to see10-12 products being used by such Himalayahouseholds. This approach is what prompted thecompany to market all our products under asingle brand.

    DISTRIBUTION CHANNEL:

    Distribution (or place) is one of the four elementsofmarketing mix. An organization or set oforganizations (go-betweens) involved in the processof making a product or service available for use orconsumption by a consumer or business user.

    Frequently there may be a chain of intermediaries,each passing the product down the chain to the nextorganization, before it finally reaches the consumeror end-user. This process is known as the'distribution chain' or the 'channel.' Each of theelements in these chains will have their own specificneeds, which the producer must take into account,along with those of the all-important end-user.

    Channels

    A number of alternate 'channels' of distribution may

    be available:

    Selling direct, such as with an outboundsalesforce or via mail order, Internet andtelephone sales

    Agent, who typically sells direct on behalf of theproducer

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    Distributor (also called wholesaler), who sells toretailers

    Retailer (also called dealer or reseller), who sellsto end customers

    Advertisement typically used for consumptiongoods

    Channel members

    Distribution channels can thus have a number oflevels. Kotler defined the simplest level, that of adirect contact with no intermediaries involved, as the'zero-level' channel.

    The next level, the 'one-level' channel, features justone intermediary; in consumer goods a retailer, forindustrial goods a distributor. In small markets (suchas small countries) it is practical to reach the wholemarket using just one- and zero-level channels.

    In large markets (such as larger countries) a secondlevel, a wholesaler for example, is now mainly usedto extend distribution to the large number of small,neighborhood retailers or dealers.

    We are following one tier distribution channel asunder:

    1. Manufacturer to retail stores: This includes allthe small retail stores in local markets of Delhi,Gurgaon and Noida.We will distribute our finished goods to these smallretail stores in the local markets.

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    2. Manufacturers to chemist: We are having a tieup with 98.4. We chose 98.4 because it is a wellknown chemist and and if our products are offeredthere , it will bring a positive effect to our image.

    3. Manufacturers to beauty saloons: We are also

    selling our products through the leading beautysaloons all over our target area. This will also help inpromoting our productas when the parlours use our product, the customersmay like it and go for making a purchase.

    We will use our motor vehicles to transfer the

    finished cosmetics from gurgaon to the varioussaloons and retailers.

    Our 20 sales representatives are going out to majorresidential areas in Delhi and NCR to promote andsell our brand.

    PROMOTION

    Promotion involves disseminating information abouta product, product line, brand, or company. It is one

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    of the four key aspects of the marketing mix. (Theother three elements are product marketing, pricing,and distribution.)

    Promotion is generally sub-divided into two parts:

    Above the line promotion: Promotion in the media

    (e.g. TV, radio, newspapers, Internet and MobilePhones) in which the advertiser pays an advertisingagency to place the ad

    Below the line promotion: All other promotion. Muchof this is intended to be subtle enough for theconsumer to be unaware that promotion is takingplace. E.g. sponsorship, product placement,

    endorsements, sales promotion, merchandising,direct mail, personal selling, public relations, tradeshows

    The specification of these four variables creates apromotional mix or promotional plan. A promotionalmix specifies how much attention to pay to each ofthe four subcategories, and how much money to

    budget for each. A promotional plan can have a widerange of objectives, including: sales increases, newproduct acceptance, creation of brand equity,positioning, competitive retaliations, or creation of acorporate image.

    The term "promotion" is usually an "in" expressionused internally by the marketing company, but notnormally to the public or the market - phrases like"special offer" are more common.

    We are going to promote our brand in the followingmanner:

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    1. Print ad (posters)- We have printed posters forour products. The poster has a photo of Dia Mirza,who is our brand ambassador. These posters aregiven to be printed in some women orientedmagazines.

    2. Television commercial featuring DIA MIRZA for15 seconds.

    3. Radio jingle : Meow 104.8 fm

    4. Stalls in malls:

    5. E-advertising: rediff and yahoo

    6. Stalls in front of call centres

    Dia mirza is our brand ambassador and has agreedtoo appear in print ad and TV commercials @ 1.4crores.

    We also put up posters in leading beauty saloons andlocal shops and markets.

    We are also giving out novelties like:1. T shirts2. Key chains3. Pens

    Our friend circle or formally the bods are going out tothe busiest shopping malls like Sahara, CSM, GIP,Ambience etc and organizing contests where thewinner is given our products as gifts.

    PRODUCTS OFFERED:

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    1. Sun Screen

    Due to different intensity of UV rays on the skin, theskin tone gets uneven and looks darker and lighteron some parts. This gel helps to remove tan andmake skin fairer and glowy. It tones up the skin,looking fresh and clear. In short it is a protection

    against the direct UV rays of sun.The film formingpolymers of this lotion make a water resistantprotective layer on your skin. Enriched with CobraSaffron and Mulberry extract, it helps your skin retainits natural moisture, preventing damage from UVAand UVB rays. It leaves your skin fresh, luminous andlooking younger.

    2. Cleansing milk

    Generally use on a regular basis to clean the skin. Itcleanses the skin, remove dead cell, dirt and grimeand keep the skin looking clear, soft and silky.Thisrefreshing, non-foaming cleansing milk is enrichedwith the goodness of Sandalwood, Almond & IndianBerberry extracts. It deep cleanses, nourishes andheals the skin.

    3. Face Wash

    This natural cleanser with pure Honey & Turmerichas antiseptic properties that protect your skin fromthe daily damage. It removes microbes & pollutantsfrom the innermost pores leaving the skin fresh &tingling.The extracts of Orris Root & Margosablended with natural cleansers help in removingimpurities & pollutants from the skin. It cleanswithout drying, leaving your skin soft & silky smooth.

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    4. Scrub Gel

    Combination of different herbs and granules ofapricot deep cleanses the skin, scrub the surface ofthe skin and makes the skin soft, smooth and silky.

    The apricot granule improves the bloodcirculation.The remarkable product exfoliates andrejuvenates, porcelains & retextures, cleans &refreshes the skin. Plant extracts make this exfoliaterapt for all skin types.

    5. Face cream

    Skin-lightening co-agents like Liquorice and WildTurmeric, with extracts of Mulberry & Lemon Peelfade melanin deposits and lighten skin pigmentswithout dehydrating the skin.

    6. Toner

    INGREDIENTS: jasmine, jati, mimosa pudica,origanummajorana, citrus lemon.It controls excess oil secretion and makes your skinoil free.It helps to refresh the kin and improve toning.

    7. Night cream

    This natural rich anti-wrinkle, nourishing cream

    checks pre-mature ageing of skin. Regular use helpsto reduce the appearance of wrinkles and preservethe elasticity of skin. It makes the skin appear fresh,clear and more youthful.Filled with all the goodnessand riches of Jojoba oil, Wheat germ oil, Gereniumoil, Palmarosa oil, Castor oil, Galnut extract,Grapeseed oil, Carrot seed oil, Pomegranate extract,

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    Sunflower oil and Vitamin E, this active formula fightsagainst wrinkles, ageing spots and prevents skinfrom sagging. The Vitamin E and naturalPolysaccharides 7 ceramics rebuild the skin's internaldefence mechanism against ageing factors andinvigorates new cell generation. It should be appliedafter thoroughly cleansing the face just before

    sleeping.

    8. Lip balm

    This unique lip shield enriched with Cocoa Butter andvitamin E, helps heal chapped lips, conditions &

    keeps them soft & moist, while protecting them fromharmful effects of the sun (SPF-10), wind and cold.

    PRICE

    Penetration pricing is the pricing technique ofsetting a relatively low initial entry price, often lower

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    than the eventual market price, to attract newcustomers. The strategy works on the expectationthat customers will switch to the new brand becauseof the lower price.

    Penetration pricing is most commonly associatedwith a marketing objective of increasing market

    share or sales volume, rather than to make profit inthe short term.

    The advantages of penetration pricing to the firmare:

    It can result in fast diffusion and adoption. Thiscan achieve high market penetration ratesquickly. This can take the competition bysurprise, not giving them time to react.

    It can create goodwill among the early adopterssegment. This can create more trade throughword of mouth.

    It creates cost control and cost reductionpressures from the start, leading to greaterefficiency.

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    It discourages the entry of competitors. Lowprices act as a barrier to entry.

    It can create high stock turnover throughout thedistribution channel. This can create criticallyimportant enthusiasm and support in thechannel.

    It can be based on marginal cost pricing, which

    is economically efficient.

    Price Penetration is most appropriate where:

    Product demand is highly price elastic. Substantial economies of scale are available. The product is suitable for a mass market (ie.

    enough demand).

    The product will face stiff competition soon afterintroduction. There is not enough demand amongst

    consumers to make price skimming work. In industries where standardization is important.

    The product that achieves high marketpenetration often becomes the industry standard(eg Microsoft Windows) and other products,whatever their merits, become marginalized.Standards carry heavy momentum.

    Taken to the extreme, penetration pricing becomespredatory pricing, when a firm initially sells a productor service at unsustainably low prices to eliminatecompetition and establish a monopoly. In mostcountries, predatory pricing is illegal, although it canbe difficult to differentiate illegal predatory pricing

    from legal penetration pricing.

    The bottles and tubes for the various items areoutsourced at the following rates:

    SIZE QUANTITY RATE50 ml 3 1.5

    http://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Profit_maximizationhttp://en.wikipedia.org/wiki/Price_elasticity_of_demandhttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Price_skimminghttp://en.wikipedia.org/wiki/Predatory_pricinghttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Antitrusthttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Profit_maximizationhttp://en.wikipedia.org/wiki/Price_elasticity_of_demandhttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Price_skimminghttp://en.wikipedia.org/wiki/Predatory_pricinghttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Antitrust
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    50 ml 1 5 (glass)80 ml 1 2100 ml 2 4120 ml 2 5200 ml 2 6

    10 gm 1 150 gm 2 2100 gm 1 3150 gm 1 4

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    We plan to produce 500 units of each unit everymonth.

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    PARTICULARS RATE QUANTITY AMOUNTMACHINERY

    Machinery 3,00,00,000

    3 9,00,00,000

    Installation 50,000 - 50,000

    Construction2nd floor

    1,50,00,000

    1,50,00,000

    Furnishingand fixtures(B, G, 1)

    50,000 50,000

    Tata ace 2,00,000 2 4,00,000Maruti omni(Outsourced)

    Rs.3/km 50,000km 1,50,000

    Sachet maker 60,00,000 1 60,00,000

    PROMOTIONRadio ad25 times/dayfor 3 months

    5,00,000 - 5,00,000

    Dia mirza 1,40,00,000

    1,40,00,000

    Star plusOUTSOURCING

    10,00,000 10,00,000

    BottlesMaterial(creams)

    3,00,000 3,00,000

    SALARIES

    Operators 5000pm 12 7,20,000Guard 3000pm 4 1,44,000Accountants 10,000pm 2 2,40,000Sales people 7500pm 20 18,00,000Manager 10,000pm 4 4,80,000

    TOTAL 13,31,34,000

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    Bottle contractor:1.5 * 3 * 500 = 22505 * 2 * 500 = 5000

    2 * 2 * 500 = 20006 * 2 * 500 = 60004 * 2 * 500 = 40002 * 1 * 500 = 10001 * 1 * 500 = 5004 * 1 * 500 = 20003 * 1 * 500 = 1500

    TOTAL____---24,250

    ESTIMATING SALES:

    For all our products, we are producing 500 units permonth in all varieties. According to our estimation,we have a sale percentage of 23.48% in the halfyearly period of April to October.

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    The breakup of sales is as follows:

    PRODUCT SIZE OF BOTTLE %CONTRIBUTION

    QTTY. SOLD

    & COST IN SALES

    CLEANSING 50 ML @ RS.40 40%1200

    LOTION 120 ML @ RS.70 25%

    750

    200 ML @ RS.100 8%

    240

    SCRUB 50 GM @ RS.60 45%

    1350

    150 GM @ RS.100 18%

    540

    FACIAL 100 ML @ RS.75 37%

    1110

    CREAM 200 ML @ RS.120 25%

    750

    TONER 120 ML @ RS.90 10%

    300

    SUNSCREEN 50 ML @ RS.95 20%600

    100 ML @ RS.175 15%

    450

    NIGHT 50 ML @ RS.200 12%

    360

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    CREAM 80 ML @ RS.250 7%

    210

    LIP 10 GM @ RS.15 12%

    360

    BALM

    FACE 50 GM @ RS. 70 42%

    1260

    WASH 100 GM @ RS. 130 35%

    1050

    AMOUNTS RECEIVED FROM THE SALE OFDIFFERENT PRODUCTS IN 1ST 6 MONTHS.

    PRODUCTS QUANTITY &PRICE

    AMOUNT RECOVERED

    CLEANSING MILK 1200@ RS. 40 EACH 48000

    750 @ RS. 70 EACH

    52500

    240 @ RS. 100 EACH

    24000

    SCRUB 1350 @ RS. 60 EACH

    81000

    540 @ RS. 100 EACH

    54000

    FACE CREAM 1110 @ RS. 75 EACH 83250

    750 @ RS. 120 EACH

    90000

    TONER 300 @ RS. 90 EACH

    27000

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    SUNSCREEN 600@ RS. 95 EACH 57000

    450@ RS. 175 EACH

    78750

    NIGHT CREAM 360 @ RS. 200 EACH 72000

    210 @ RS. 250 EACH52500

    LIP BALM 360 @ RS.15 EACH

    54000

    FACE WASH 1260 @ RS. 70 EACH 88200

    1050 @ RS. 130 EACH

    136500

    TOTAL

    9,98,700

    These sales were recorded in the first six months ofoperation. In the next six months, we got sales of

    30%.

    BREAK EVEN

    We expect an increase in our sales in thenext six months of operation.

    In the first 6 months, our sales was 23.4%and in the next 6 months 30%.

    So our total sales in the first year ofoperation is Rs.2978700.

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    Looking at this trend of operation andgrowt, we expect to breakeven in thenext 8 years.

    Compiled by

    Irfan azad

    G - 16

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    I

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