BUSINESS PLAN

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.

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.

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

1. Launch the company retail by the second quarter of Year 1.
2. Launch the company wholesale by the third quarter of Year 1.
3. Achieve an above median maintained margin rate by the end of Year 4.
4. Generate a return on equity by end of year end 2005.
5. 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:

1. High quality manufacturing and research.
2. A creative marketing and PR program.
3. Creation of a brick and mortar retail.
4. Development of a wholesale distribution network by the third quarter.
5. The successful launch of a company Web presence by the first quarter.
6. The successful launch of a consumer catalogue in the third quarter.

 .........By Faith Gabriella.

INTRANETS AND EXTRANETS

The Internet is a network of networks that links computers called servers that contain Web pages and computers called clients that request to see Web pages. The entrance point to the Internet is typically through an Internet Service Provider (ISP), which is an organization that sells access to the Internet for a small monthly charge.

INTRANETS AND EXTRANETS

Intranet

 An internal corporate network built using Internet and World Wide Web standards and products that allow employees of an organization to gain access to corporate information. Extranet A network based on Web technologies that links selected resources of the intranet of a company with its customers, suppliers, or other business partners (e.g. Schwab).Businesses are finding other uses for Internet technology besides communicating with anyone in the world. Two of those new uses are to use this technology to communicate within an organization and among business partners.

The term Intranet is used to describe Internet technology used on a local area network to provide e-mail, Web pages, and other communication methods to employees. Employees use the same browser used to access the Internet to access the company’s Intranet. However, anyone who is not connected to the organization’s local area network is unable to access the Intranet.

Web site owners may not have all the relative information they think they have about visitors to their Web site. Clever Web surfers create virtual identities that conceal their true identity. For example, they create a ficticious name, then open a free e-mail account using that name. Instead of providing a Web site with their personal information, they provide a fake profile.

This enables the surfer to join free Web sites and participate in discussions without fearing that the site owner will learn any real information about them. This sounds dubious, but so are Web site owners who collect information about you and sell it to advertisers without your permission.

There’s nothing illegal about creating a virtual identity as long as you don’t attempt to defraud the Web site owner. For example, you must give legitimate information when making a purchase, but by then you should be comfortable dealing with that Web site.

Intranets are used to distribute employee information, provide Web page-based forms that are completed online, and give authorized employees access to data stored in the organization’s databases.

 An Extranet is frequently used to link business partners, such as suppliers, vendors, and trading partners, who conduct frequent business transactions with an organization. Let’s say you provide office supplies to 100 businesses. Instead of the office staff quoting prices, checking availability, and tracking orders, every customer can do this by logging on your Extranet.

An Extranet connects business partners. (Redrawn with permission from Prentice Hall. Dodd, Annabel Z. The Essential Guide to Telecommunications. Upper Saddle River, NJ: Prentice Hall, 2000, p. 306.) ch06.fm Page 216 Tuesday, August 15, 2000 11:23 AM

Typically, a customer uses the Internet address to visit your site, then uses an ID and a password to gain access to the Extranet Web pages. From that point, it is as if the customer is viewing a normal Web page. An Extranet automates many of the normal business transactions that require human interaction but can easily be automated. Many inquiries require a sales assistant to look up the information in the company’s computer system.

The Extranet gives customers controlled access to that computer system. Security is a critical concern to owners of Extranets since the owner is relying on the skills of the IS department to write a program that addresses all the facets dealing with a customer. The owner does not want incorrect information to be sent to the customer, nor does the owner want to frustrate the customer before he or she is able to talk to a person.

Extranets satisfy security concerns by using encryption, authorization, and integrity checks. Encryption mixes up data so it isn’t easily read, as discussed previously in this chapter. Authorization requires the customer to use a unique ID and password to access the Extranet. Integrity checks consist of logic written into a program to ensure that the interaction with the customer makes sense. For example, a small business that buys 10 reams of paper every month is unlikely to order 100 reams one month, so the Extranet ordering program would flag the order and bring it to the sales rep’s attention.

The Internet is a network of networks that links computers called servers that contain Web pages and computers called clients that request to see Web pages. The entrance point to the Internet is typically through an Internet Service Provider (ISP), which is an organization that sells access to the Internet for a small monthly charge.

An ISP leases one or more T carrier-lines from the telephone company, which enables the ISP to transmit and receive information on the Internet. Depending on the type of T carrier-line, the ISP will have a minimum of 24 communications channels over which data can be communicated 24 hours, 7 days a week. Every telephone company has its own telecommunication network that links ISPs and organizations that directly link their servers to the Internet without going through an ISP. Telephone companies exchange Internet data at regional centers called peering centers. There are four public peering centers and many private peering centers

operated by telecommunications carriers. Every device on the Internet has a unique Internet address, which is a set of numbers. An Internet address, also known as an IP address, is often identified by a Web site name that is associated with the IP address, such as www.keogh.org.

You and I can visit a Web site by dialing our ISP, then using software called a browser to request and display Web pages. After entering the Web site name, the browser sends the request to the ISP, which searches the Internet telephone book to locate the IP address associated with the Web site name. Once the IP address is found, the ISP contacts the Web site and requests a page. The first page that is requested is the site’s home page, unless your request specifies another page. The Web page is sent to your ISP from the Web site and is passed to your computer, where the browser reads and displays the page.A Web page is written using HTML or an enhanced version of that language called XML. Programmers who build the Web page insert HTML and XML tags into the page that tell the browser how to display the page.

In addition to tags that specify the text format, there are tags that tell the browser what graphics to display and how to link to other Web pages. These tags are called hyperlinks. A hyperlink is typically highlighted text or a graphic that, when clicked on, tells the browser to request either another block of text on that Web page or to display another Web page.

Information travels over the Internet in small electronic envelopes called datagrams. The TCP/IP protocol suite controls datagram traffic on the Internet. The Internet Protocol (IP) describes how datagrams are constructed and transmitted. The Transmission Control Protocol (TCP) is used to manage the transmission. TCP, for example, requires a timer to be activated when a datagram is transmitted. If an acknowledgement has not been received when time has expired, then the datagram is resent because TCP assumes the first one was lost or discarded during transmission.

The Internet groups the different ways to transfer information over the Internet into Internet services. Four popular services are Telnet, e-mail, FTP, and HTTP (World Wide Web). The Telnet service enables a person to directly interact with a remote computer. The e-mail service enables people linked to the Internet to exchange electronic mail. The FTP service is used to copy files to and from a remote computer.

HTTP is the service used to exchange Web pages. Security and privacy concerns are a serious threat to the viability of the Internet as a tool for electronic commerce. Cyber crooks can use a variety of methods to gain access to a server or prevent legitimate visitors from accessing a server. Organizations whose servers are connected to the Internet use various techniques to thwart such attacks by password-protecting sites and using firewalls and proxy servers.

Anyone who visits a Web site must be on alert that the owner of the site might be creating a visitor’s profile, which identifies you and your interests, and might sell your profile to a third party. Internet technology is also used within an organization and its business partners by creating an Intranet and Extranet.

An Intranet is an organization’s private Internet that enables employees to share information and access corporate data. An Extranet is also a private Internet, but it is used to link business partners, such as key vendors, and to track orders, sales, and other information typically exchanged by business partners. By Kimena Nuhu.

Factors that have contributed to the development of modern public relations.

Attempt a write up on how public relations has evolved over the ages several factors contributed to the development of modern public relations. Starting with the United States, the American Revolution and the civil war and the transition from an agricultural to an industrial society have close links with the development of moder public relations. As Cutlip Centre and Broom have observed, today’s patterns of public relations practice were shaped by innovations in mobilizing public opinion developed by Adams and his fellow revolutionaries. The industrial revolution and its attendant changes in social relations, created challenges in the relationship between businesses, government and the people. The industrial revolution brought about the birth of mass media and modern public relations which were natural outgrowths of the monumental changes in that era. Through the use of mass media governments and organisation were able to communicate with relevant publics (groups) essential to their success. Seitel (2001) has observed that the confluence of four factors aid the development of modern public relations. Let us examine these factors in detail.

The Growth of Large Institutions

The industrial revolution resulted in the emergence of big companies. Massive developments in industry, rail-roads and utilities in America’s post-civil war led to the rise of powerful monopolies the concentration of wealth and power and roughshod tactics of the robber barons brought a wave of protests and reforms in the 1900s. Contemporary public relations emerged out of the melee of the opposing forces in this period of America’s growth. Following the brutal massacre of protesting workers of the Carnegie-Frick Steel Company Plant in Pennsylvania in 1892 and its attendant aftermath, industry owners began to realize that for continued success, they have to curt favourable public opinion, both among their workers and the general public.  According to Cutlip, Centre and Broom, “much of public relations history is woven into the unending struggle between employer and employees.

There was the need to counter the activities of the crusading, “muck racking journalists” who made it as national duty to expose the exploitation and scandalous business activities of the robber barons. As Reqier observed, muckraking was the inevitable result of decades of indifference to the allegations and immoralities attendant upon the industrial development of America. Business of every size came to recognize that aggressive communication of corporate products and positions can help win public receptivity and support and ward off government intrusion. Change, conflict and confrontation among interest groups in society.

Disenchantment with big institutions peaked in the 1960’s. It has been said that the conflict during this period between private economic institutions, especially large corporations and various disenfranchised elements of society arose from longstanding grievances. One commentator had suggested that “their rebellion was born out of the desperation of those who has nothing to lose”.  Social activists of every kind began to challenge the legitimacy of large institutions It was also the period when women began to mobilize for equal rights in the workplace and elsewhere. Ralph Nader’s consumerist movement was also active during this period. These conflicts and attendant changes meant that large institutions would desperately need professional communication help.

Heightened Public Awareness

The government regulatory interventions in the form of affirmative action forced business organizations to contribute to charities. In consequence, managers began to consider community relations a first-line responsibility. The policy of confrontation was abandoned by business corporations in favour of a policy of compromise and conciliation. A new policy of social responsibility evolved as corporations came to realize that their reputations are a valuable asset to be protected, conserved, defended, nurtured and enhanced at all times.

Global Expansion of Democracy

With the expansion of democracy worldwide, there was need for effective communication with the activities of civil rights groups worldwide like the Human  Rights Watch in defence of the hitherto marginalized the public relations challenge has grown in intensity. As a result of the increasing importance of persuasion and consensus in the era of globalization public relations became an integral part of the democratic process.

Growth of the Internet and the World Wide Web

The technological innovations and revolution in communication has contributed to the growth of public relations. The advent of radio and television in the first half of the 20th century revolutionized communication and social interactions. Revolutions in satellite and computer technology in the later part of the 20th century has changed the way people communicate and the emergence of the internet and world wide web have radically intensified the spread of communication even further. The impact of the web on public relations practice has been phenomenal. E-Mail now dominates internal communications high-tech public relations firms is now a common phenomenon to meet the challenge of communicating with the diverse publics.

The technological revolutions and innovations in communication has contributed to the growth in social advocacy. Civil rights groups, pressure groups, and other forms of advocacy for rights of the vulnerable members of society and minority groups have led to an increase in the use of public relations.