Vision: To become a beauty line that leads in providing best products for dark skin tones in the world today.
Mission: To develop and sell makeup that has a wide range of skin tones for the dark skin.
Harmel Ngongo 088917
Suzanne Chumo 088701
Ted Kioko 092876
Patience Maina 083809
Monday, October 10, 2016
TABLE OF CONTENTS
Table of Contents
1.1 Executive Summary 4
1.2 Background and Purpose 4
1.3 Objectives 4
2 MARKET ANALYSIS 5
2.1 Target market 5
2.2 The overall market size 5
3 MARKETING PLAN 8
3.1 Pricing 8
3.2 Product 8
3.3 Promotion 8
3.4 Place- distribution channels to be used 8
4. OPERATIONS 9
4.1 Location(s) 9
4.2 Legal Issues 9
4.3 Business licenses 9
4.4 Insurance Issues 9
4.5 Human Resources 9
4.6 Process/Production 9
5. THE ORGANISATIONAL PLAN 10
6.1 PRO FORMA CASH FLOW 11
6.2 PRO FORMA PROFIT AND LOSS 13
6.3 PRO FORMA BALANCE SHEET 14
7. CRICTICAL RISKS 15
8. CONCLUSION 15
9 .APPENDIX AND BIBLIOGRAPHY 16
1.1 Executive Summary
We are SLAY Beauty based out of Nairobi. It is our mission to develop and sell makeup that has a wide range of skin tones for the darkskin tones. Our market is anyone who wears makeup, especially women. We will further segment our market to 16-44year old range. We will target this market first because we feel it is a sustainable base to launch from. We provide a variety of products to attract different customers.We will work with youtubers, make up artsists and fashion bloggers. The plan is to occasionally send our products over to demonstrate the product and application techniques. For now our focus is to acquire market,later on we will expand.
1.2 Background and Purpose
A lot of dark skin people struggle with finding the right foundation for their skin tone. Mostly, for affordable makeup brands, they find it nearly impossible. You may find brands offering a color scale that features more shades of beige makeup than it does brown or very dark brown. This means that, people of color have a limited selection to work with. We as SLAY beauty our mission is to develop and sell makeup that has a wide range of skin tones for the dark skin tones. Eventually becoming a beauty line that leads in providing best products for dark skin tones in the world today.
• Maintain a strong relationship with the customers
• Innovation by producing different products
• Provide affordable products to customers
• Long-term Objectives
• Expand the beauty store in countrywide
• Increase our sales by 45% annually
• Increase our revenue by 10% each year
2 MARKET ANALYSIS
2.1 Target market
Our target market is anyone who wears makeup, especially women. We will further segment our market to 16-44year old range.
2.2 The overall market size
Political and legal environment: The consumer goods safety ordinance provides that the consumer goods supplied in the market meet the general safety requirements. If a particular cosmetic or skin product is found to have breached the requirements, will lead to prosecution.
Economic environment: The beauty industry in Africa was estimated at about $20.4 billion in 2011. Of this figure, South Africa alone represented $3.9 billion; Nigeria and Kenya are second and third among sub-Saharan nations, with Kenya's market totaling more than $260 million.
Social and cultural environment: Society dictates what is perceived to be attractive. The cosmetic industry continuously offer different and more advanced products that results to making people feel beautiful.
Technological environment: Social media, including YouTube, will continue to be a leading factor in how women discover and engage with beauty brands. Researchers found that 54% of women say branded visual content makes them feel interested in a product.
2.3 Competitive Factors
• Threat of New Entrants
In the cosmetic industry threat of new competitors are intense as they increase the supply in the market without increasing demand significantly. The result is that prices reduce and may reduce to levels that firms do not make enough profit to survive.
Therefore, the seriousness or extent of the threat of new entrants is affected by two factors:
• Threat of Substitute Products.
The beauty line offers different shades for our products. With the same price, quality and simplicity of changing to other products in the market.
• Bargaining Power of Buyers
Our products mainly focuses on the darker skin tones therefore the substitute products available are limited hence its uniqueness which create a need for it.
• Bargaining Power of Suppliers
The company has a two-year contract with a supplies firm that offers quality products and affordable price.
• Intensity of Rivalry
In the industry we are faced with intense rivalry from the competing brands such as suzie beauty, sleek , Iman beauty.The competition is based on price, quality, or innovation
2. 4 SWOT Analysis
We offer a wide range of products, therefore providing consumers with variety of options.
Our store is located at the central hub of all activites, thus being accessible to the customers.
Being entrants to the market, we face competition from known and established cosmetic lines.
Growth of the business will be slow due to our entrance into the new market.
Social media, YouTube will provide opportunities to interact with our consumers.
Makeup Artists will enable us attract new customers
We face threats of economic downturn that affects purchasing and spending power
Threat of new entrants that offer same products as ours.
2.5 Target Market (Customers) Analysis
Besides our product targeting the a specific age group, it also targets a wide population as many of them have dark skin tones.
2.6 Market Segmentation
By use of demographic segmentation we used age to divide our target market . The bar graph below shows makeup users in the past three years.
Our target market is anyone who wears makeup, especially those between 16-44year old range.
For positioning strategies we are using more benefit for the same price as the closest good to competition.
3 MARKETING PLAN
Since we are using cost based pricing, we calculated all the costs and added our margin to come up with the price.
Our facial products such as foundations, concealers will range between 800kshs-1000kshs. The lipkit and eye palette will range between 500kshs and 1200kshs respectively. The prices are affordable and fair compared to our competitors.
SLAY Beauty provide makeup products such a foundations, concealers, lipkits, eye palette specifically for dark skin tones. Our products are of good qualityand aim to “SLAY”. Also each of our product offers a variety of options for the customers. Packaging is done using bioplastics that are friendly to the environment.
• Sponsporship of products to Youtubers, Public figures,MakeUp artists
• Internet advertising
• Creation of own social media accounts to showcase products.
3.4 Place- distribution channels to be used
In the distribution strategy, we decided on our own brand store therefore using exclusive distribution.
The beauty store will be located at Nairobi CBD along moi avenue in towers which is about 12km from the manufacturing industry.
The manufacturing industry will be operated out in industial area south area on tumaini building.
4.2 Legal Issues
4.2.1 Business licenses
We have been issued with a business license from Kenya Revenue Authority no.83vh3dr44
4.2.2 Insurance Issues
The business requires insurance for business property and earnings.
4.3 Human Resources
The business will have 30 full time staff. Both at the store and at the manufacturing and headquarters. Plans to hire additional staff to manufacture pieces will be considered in Year 2 depending on product demand.
1.The manufacturing of the products will begin with the purchase of requirements from our suppliers.
2. After manufacturing, the products will be stored into respective containers.
3. Packaging then begins.
4. finally, products will be stored into boxes and transported to the store.
5. THE ORGANISATIONAL PLAN
Harmel Ngongo, CEO (Chief Executive Officer):
In charge of all day-to-day management decisions and for implementing the company\'s long and short term plans, which could include expanding and such. Came up with the idea.
Suzanne Chumo, CFO (Chief Financial Officer):
In charge of managing the financial risks of the company, and is also responsible for financial planning and record-keeping, as well as financial reporting to higher management.
Patience Maina, CIO (Chief Information Officer):
Must make executive decisions regarding things such as the purchase of requirements from suppliers and overseeing work at the manufacturing headquarters.
Ted Kioko, (Markerting officer )
Responsible for marketing the products and Innovation.
A team of five sales personnel, tasked with assistance of customers at the store and overseeing sales of the day and restocking of products. A team of three cashiers will be responsible for counter activites at the store. IT technician will oversee all the related issue within the field. Three drivers will be in-charge of transportation of goods from manufacturing headquarters to store and vice versa. Ten personnel are tasked with all operations taking place in the headquarters. Two watchmen will be in-charge of security at the manufacturing industry. Lastly. Two cleaning personnel will oversee cleanliness at the manufacturing headquarters.
The company will be run as as sole proprietorship with Harmel being the owner.
6. THE FINANCIAL PLAN
6.1 Pro forma cash flow
6.2 Pro Forma Balance Sheet
7. CRICTICAL RISKS
The following are risks we might encounter;
• The product may take too long to develop in the market therefore resulting to the company losing money .
• Competition from other beauty stores may result to slow business with few customers.
• Financial risk where the company may run out of money due to mismanagement of funds.
The following will be prepared to carter for the risks above;
• We have invested money in promotion which will guarantee customers.
• We havea variety of products that are upto the market conditions.
• We have a monthly finacial planning and accounting that will carter for each operations of the store
SLAY will represent the darkskin tones in the market.
SLAY will inspire women of dark skin tones to feel beautiful while wearing makeup.
For the dark ones who SLAY.
9 .APPENDIX AND BIBLIOGRAPHY
Nguyen. T( January, 2015). Strategic Marketing Proposal Plan For A Cosmetics Company.
Retrieved from: http://www.theseus.fi
Dr Gordon. J. (2014)Goals and objectives for the cosmetics industry.
Retrieved from: http://www.cosmeticindex.com
Hope C.( May, 2016). The makeup industries frustrating cycle of struggle and progress for women of
color. Retrieved from: https://jezebel.com
Scheel J(April, 2014) Culture dictates standard of beauty.
Retrieved from: https://www.psychologytoday.com
Beauty Africa (April,2016).Why Africa is the next big market for cosmetics and beauty products.
Retrieved from: http://beauty-africa.com
D'adamo A(December, 2015) Beauty trends 2016
Retrieved from: http://www.womensmarketing.com/
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