Executive
Summary
Elice beauty Raises Company is a
company that has created a brand concept consisting of both skin care and
athletic apparel utilizing multiple channels of distribution. We are seeking
recurring investment to fund the growth of the brand, and position well the
company. The plan that follows explains our market, our value proposition and
our market segmentation strategy. The detailed financial plans provide a clear
view of our sales and profit forecasts. These plans show how Elice beauty
Raises Company will reach profitability in our third year of operation and
generate shareholder return on equity within five years.
Company Description
Mission statement
To establish Elice beauty raise as an important brand that represents quality in skin care, fitness apparel and accessories. We will accomplish this using high quality manufacturing and research, a creative marketing program, and a comprehensive distribution network using both brick and mortar retail outlets, internet presence, and a consumer catalogue.
By utilizing this multi-channel
approach we will be able to reach the niche market for quality personal care
products rapidly and efficiently. It will allow us to develop beauty raises as
the brand for quality skin and body care products within our target market.
Vision statement
In the many years to come we want to
be the best company who sell the good products and offers services to their
customers which have high quality.
The
company's main office is located in Arusha region here in Tanzania. The leased
office space should be sufficient for planned staff size growth within the
first few years. We have different branches in Tanzania that our services are
also found in Dodoma,dar,mwanza,mbeya,morogoro,kigoma,songea,mtwara,iringa,moshi
and also we have a plan to be found on other remains region in Tanzania and
also we want to be found in East Africa countries and lastly all over the world
CONTACT US
Address
P.O.BOX 800, ARUSHA-TANZANIA
Website: www.alicebeautyraises.com
E-mail:elicebeauty@raises.ac.tz
Phone
+61 2 9262 1443
FAX
+61 2 8208 7383
Industrial analysis
The
industry analysis shows that current consumption trends are favorable for the
domestic cosmetics market, especially for producers of ultra premium wines.
Total domestic and per capita wine consumption have increased each year since
1993. Retail cosmetics sales have increased 8.2 percent per year over the past
five years. The dramatic growth in retail cosmetics sales can be attributed to
the increasing popularity of premium wines.
In order to launch its unique product line Alice beauty raises requires an initial outlay. Sales at the company retail stores are planned to grow rapidly from Year 1 through Year 5. During this time frame our wholesale revenues are planned to grow enormously. A company will become profitable in our third year of operation. Initial growth will be financed by a combination of equity investment and debt financing. Our ratios are well within prudent limits and our growth
Plans
are challenging, but realistic.
Market analysis
Our company will occupy a unique market position. No other brand offers a specialty line that includes skin care, cosmetics, fitness apparel and accessories. However, within each category significant brands do exist. Quality and price vary widely within each group. We will be positioned as a quality brand. The Tanzania cosmetics market has seen large annual growth rates over the past decade. Last year alone, the market grew by over $1 billion. Clear divisions between traditional categories are becoming blurred and new lines, such as aromatherapy are also emerging, creating new openings for profit.
In fitness apparel and accessories
there is a tremendous opportunity since the female customer has been grossly
overlooked. Most major companies do not produce products focused specifically
on the female customer. Puma is the only brand that has developed a line of
fitness apparel for women. Early sales for them have been exceptional, further
highlighting the potential within this category.
In the skin care and cosmetics category
the competition can be divided into three groups: Commercial--i.e. MAC,
Origins, Philosophy, Erno Laslo and Shesheido; Clinical--i.e. Kiehl's,
Clinique, Clarins and Dr. Hauscha; Spa--private label brands associated with
spas.
Marketing
Plan
Target Market
The proposed products are targeting end
consumers who are wealthy, college educated. And women’s who knows the
importance of using the cosmetics that have high quality Distributors are
responsible for selling cosmetics through different places located throughout
the nation. The second targeted business group is to those people who are the
end users they don’t have enough money but they are interested in buying our
products. The final business group the cosmetic is targeting is in state shop
owners.
Two label strategy
The proposed products will produce a “first
label” or “reserve” cosmetics and a “second
label” for each varietal. Higher quality
cosmetics are set aside for the first label. The
marketing plan stipulates that 15 percent
of the wine will be set aside for the first label
and 85 percent of the wine will be bottled
under the second label. This two label strategy
will enable the proposed cosmetics to
market lower quality products under the second label
without bringing down the first label's reputation
for quality.
Packaging decisions
Packaging decisions are another important
element of a product's offering. Any
item, regardless of its value, is far more
exciting when wrapped in an attractive package.
Cosmetic makers must decide on labels, text
on the labels, and boxes.
Each of these elements contributes to an
individual's consumption experience, and these
packaging decisions reveal a great deal of
information about the quality of products inside
the boxes.
Operational plan
Products
Skin and body care products will be developed and produced at our contract facilities in South Africa. Production of apparel products will be managed through our contract manufacturer of sport-related apparel. Production of accessories will be managed through a contract with a manufacturer of quality sports-related accessories including: bags, hats, totes and socks for the wholesale market.
Skin and body care products will be developed and produced at our contract facilities in South Africa. Production of apparel products will be managed through our contract manufacturer of sport-related apparel. Production of accessories will be managed through a contract with a manufacturer of quality sports-related accessories including: bags, hats, totes and socks for the wholesale market.
We will have two product lines, skin
care and fitness apparel. Within the skin care line we will offer a wide array
of products including eye makeup removers, cleansing creams, facial scrubs and
masks, and body lotions. Within the fitness apparel line we will first offer
Lycra products such as tights and shorts, plus polyester and cotton tops.
Our pricing strategy is to position
our products with a shelf price that is in the mid to lower quadrant of
high-quality products and brands. We have accomplished this by making careful
market comparisons and adjusting our packaging size.
We believe our ability to create
future product opportunities and growth will only be limited by our imagination
and our ability to attract talented people who understand the concept of
branding.
Team management and organizational structure
The
Company
Elice beauty Raise Company is a
private organization. The company is 100% owned by Gladys and Gabriella, the
founders. The board will consist of seven members: Mr. R.G. Brunner, one
additional member of management, three outside directors appointed by Mr.
Brunner, and two representatives appointed by the major investor(s).
Together, Gabriella and Gladys have
65 years worth of combined experience in the retail industry. Both of them have
held senior management positions with major companies in this area.
From Year 1 through Year 5 we will
grow in head count from ten to sixty-five. The majority of this growth will
come in store personnel, the rest will be support staff. We believe the plan
shows a controlled and conservative ramp up of personnel.
Product services design and a
developed plan
Because our company is a combined retail (direct to end user) and wholesale (to the end user through a reseller) strategy our target customer must be broken into two distinct groups, the end user and the reseller.
Because our company is a combined retail (direct to end user) and wholesale (to the end user through a reseller) strategy our target customer must be broken into two distinct groups, the end user and the reseller.
Our targeted end user is between the
ages of 24 and 65. They are female urban professionals with at least some
college. This consumer has an active lifestyle. They are concerned about social
and environmental issues. Mind and body wellness are important to them. They
belong to a health club; take yoga, pilate's or tai chi lessons. The effects of
aging and the maintenance of a youthful appearance are a part of their life.
Our target customers (vs. end user)
for wholesale distribution will be resellers who recognize the needs of this
consumer and who she identifies with. We have used the term resellers because
they will not be limited to retailers. We will reach the consumer through four
distinct reseller channels. Spas and Health Clubs, Lifestyle Retailers,
Cosmetic Specialty Retailers, and Boutique Department Stores.
There are a number of new demand
trends that have impacted the market and created greater opportunities. These
trends include a returning to age old, time proven, natural remedies; more
consumers that are looking for more holistic and healing benefits from her skin
care products, and today's consumer being more informed and more inquisitive
about the benefits of her personal care products.
Financial
projection
The
following table summarizes the amount of money needed each year to establish
the proposed small, premium products. The money will be used to construct the
products and tasting room, purchase the necessary cosmetics making equipment,
and cover the annual operating expenses. A more detailed look at the
disposition of funds is provided in the financial section.
Year
Amount of money needed
Year
0 $ 690,042
Year
1 $ 630,150
Year
2 $ 267,818
Year
3 $ 154,257
Year
4 $ 1,545
Total over four years $ 1,734,812
The financial section begins by projecting
annual revenues, capital asset purchases, operating expenses, and cash flow
projections for the small premium products. A detailed description of the
capital asset requirements and operating expenses are then provided. Capital
intensive and the cash flow analysis showed that the products does not attain a
positive cash flow until year five; thus, an investor could not expect to withdraw
any funds prior to the fifth year of operation.
Appendix
Objectives
- Launch the company retail by the second quarter of Year 1.
- Launch the company wholesale by the third quarter of Year 1.
- Achieve an above median maintained margin rate by the end of Year 4.
- Generate a return on equity by end of year end 2005.
- Position the company as a successfully one.
Aims
To establish elice beauty raises as
an important brand that represents quality in skin care, fitness apparel and
accessories. We will accomplish this in the following ways:
- High quality manufacturing and research.
- A creative marketing and PR program.
- Creation of a brick and mortar retail.
- Development of a wholesale distribution network by the third quarter.
- The successful launch of a company Web presence by the first quarter.
- The successful launch of a consumer catalogue in the third quarter.
.........By Faith Gabriella.
