Entrepreneurship and Small Business Management

Final Report
Group Members:
Abdullah Habib
Bareera Sohail
Umme Farwa Fatima
Sara
Business Name: “Fabs Natural”
 Table of Content
Introduction.................................................................................................................................................1
Mission........................................................................................................................................................1
Vision..........................................................................................................................................................1
Why us?.......................................................................................................................................................1
Objective.....................................................................................................................................................1
Legal Structure............................................................................................................................................2
Members..................................................................................................................................................2
Liability:..................................................................................................................................................2
Management............................................................................................................................................2
Audit........................................................................................................................................................2
Taxation...................................................................................................................................................2
Conversion..............................................................................................................................................2
Winding Up.............................................................................................................................................2
Market.........................................................................................................................................................2
Total Available Market (TAM):..............................................................................................................2
Serviceable Available Market (SAM):....................................................................................................3
Serviceable Obtainable Market (SOM):..................................................................................................3
Products OR Services..................................................................................................................................3
Products...................................................................................................................................................3
Core benefits...........................................................................................................................................3
Actual product.........................................................................................................................................3
Expected product.....................................................................................................................................4
Augmented product.................................................................................................................................4
Services...................................................................................................................................................4
Pricing.........................................................................................................................................................4
Marketing Plan............................................................................................................................................5
Situation Analysis....................................................................................................................................5
Internal Environment...........................................................................................................................5
External Environment..........................................................................................................................5
PEST Analysis.........................................................................................................................................5
Political Factors:..................................................................................................................................5
Economic Factors:...............................................................................................................................5
Social Factors:.........................................................................................................................................5
Technological Factors:........................................................................................................................6
SWOT Analysis.......................................................................................................................................6
Strengths:.............................................................................................................................................6
Weaknesses:........................................................................................................................................6
Opportunities.......................................................................................................................................6
Threats:................................................................................................................................................6
Competitive Landscape...........................................................................................................................6
Other Ecofriendly brands.....................................................................................................................6
Regular Soap Brands...........................................................................................................................6
Small home-based brands....................................................................................................................6
Organic & Natural Personal care brands..............................................................................................7
Target Market..........................................................................................................................................7
Demographics......................................................................................................................................7
Psychographics....................................................................................................................................7
Segmentation...........................................................................................................................................7
Targeting.................................................................................................................................................8
Positioning...............................................................................................................................................8
Target Expansions...................................................................................................................................8
Introduction
Welcome to FABS Natural soaps and cleansers where we believe that taking care of yourself and the
planet should go hand in hand. We are passionate and dedicated to creating natural, non-toxic soaps that
are good for both your body and the environment. Our products are made with the highest quality
ingredients, and packaged in innovative, eco-friendly materials. We believe that everyone has a
responsibility to take care of the planet, and we're doing our part by promoting sustainable practices in all
aspects of our business. With our commitment to quality, sustainability, and customer satisfaction, we're
confident that you'll love our products as much as we do.

Mission:
We Provide natural, non-toxic soap alternatives that benefit people's health and the environment

Vision:
Provider of eco-friendly soap products with high standards of quality, sustainability, customer satisfaction
and lead the way towards a future
Why us?
We are committed to promoting sustainable practices in all aspects of our business, from production to
shipping. Trust us to provide exceptional customer service and responsible choices for your health and the
environment. The only element of our product would ever get tossed in the trash is the small label that
comes wrapped around the product.
Objective
Following are the objectives of our company as mentioned below

Utilize Natural Ingredients:

Being a responsible representative of our world we provide our products with natural ingredients that also
does not give harsh effect to your skin.

Maximize Usage of Plastic-free Product:

Along with our eco-friendly product, we also consider our packaging material that will be biodegradable
so that it could be easily decomposed even if we are throwing out its label in trash.

Provide Two in One Solution:

Our product is designed in a special manner that will contain both liquid and solid soap also it can be
conveniently kept or hung anywhere in your space.

Create awareness:
Taking care of our nature our company is here to create awareness through clean hygiene and sanitation
campaign in order to perform part of being considerate about our world and its eco system.

The incredible victory of the Planet:

Main objective is to give a thought that small act of our efforts to this world can create a better place to
live for which will ultimately reach to the victory of this planet.

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Legal Structure
We are creating a limited liability partnership (LLP) as part of our corporate journey. This choice was
made after carefully analyzing the needs of our business both now and in the future.
As an LLP, we will be able to secure the adaptability and agility of a partnership while granting our
individual partners the extra security of limited liability. We can work together as a cohesive unit; it also
guarantees that the danger to our new business is kept to a minimum.
Members:
In Limited liability partnership which must have at least two members and there is no limit on the
maximum number of members in partnership. Those members can be individuals or corporate entities.
According to it we are starting up our business with four partners as an individual.
Liability:
In Limited liability partnership it offers limited liability protection to its individual member. This means
that the members are only liable for the amount of their own investment in the business.
Management:
In Limited liability partnership the management is in the hands of the designated partners who are also
responsible for the day-to-day running of the limited liability partnership.
Audit:
In Limited liability partnership it is required to get accounts audited if its turnover exceeds the certain
limit which was already specified in the Limited Liability Partnership Act.
Taxation:
In Limited liability partnership it is a separate legal entity and is liable to pay taxes on the individual
income. Each partner is required to pay taxes on their own share of profits or income received from the
Limited liability partnership.
Conversion:
Limited liability partnership can be converted into a private limited company “(Pvt) ltd” or a public
limited company in future for further growth.
Winding Up:
Limited liability partnership will cover voluntarily or by an order from the court. The assets of the
Limited liability partnership will be used to pay off all the debts and liabilities. Also, the remaining assets
(if any) will be distributed among the partners of the Limited liability partnership.

Market:
The sustainable soap bottle market has significant potential given the increasing awareness about
environmental issues and the need for sustainable products. We have evaluated the market potential of the
sustainable soap bottle using the Total Available Market (TAM), Serviceable Available Market (SAM),
and Serviceable Obtainable Market (SOM) frameworks.
Total Available Market (TAM):
The Total available market for our product will increase slowly as people in Pakistan are also moving
towards sustainability. The market size for natural and organic personal care was approx. PKR10.8 billion
in 2020, its expected CAGR (compound annual growth rate) 12.8% from 2020 to 2025.
We can say that eco-friendly soaps are 10% of the natural & organic personal care category in Pakistan.
So, our TAM will be;
TAM= PKR 10 billion x 10%
TAM= 1.08 billion

Serviceable Available Market (SAM):

As our product is currently targeted for urban areas, which accounts for approx. 36% of the total
population, and if we reach the 50% of this urban market our SAM will be;
SAM = TAM x Urban Population % x Market Penetration %
SAM = PKR 1.08 billion x 36% x 50%
SAM = PKR 194.4 million

Serviceable Obtainable Market (SOM):

Estimating, our business aims to capture 5% of the SAM for eco-friendly and sustainable soap products in
Pakistan, and there are three major competitors in the market with a combined market share of 60%. We
can estimate the SOM for our business as follows:
SOM = SAM x Expected Market Share x (1 - Competitor Market Share)
SOM = PKR 194.4 million x 5% x (1 - 60%)
SOM = PKR 3.88 million

Products OR Services
Products:
The brand name "FABS NATURAL" clearly communicates the unique selling proposition of our product,
which is liquid soap in a bottle made of soap. The brand's visual identity is specially designed to reflect
our brand's eco-friendliness and sustainability.

 The variety of products we offer;

 Liquid soap in soap-based packaging
 Bar soap made from natural, non-toxic ingredients
 Shampoo bars and conditioner bars
 Body wash and shower gel
 Hand soap and hand sanitizer
 Dish soap and household cleaners
 Bath bombs and other bath products
 Gift sets and customizable packages
Core benefits:

 The core benefit of our product is to provide a sustainable and eco-friendly alternative to plastic
bottles which are used for personal care products nowadays.
 It aims to reduce plastic waste and environmental pollution especially caused by the extensive use
of plastic packaging in the industry.
Actual product:

 The actual product is a soap material made bottle that can contain body wash, cleanser, or
shampoo.
  It is made from natural and biodegradable materials, which makes it an eco-friendly product. The
bottle is durable, and can be used multiple times.
Expected product:

 The expected product of the Soap Bottle is a high-quality personal care product that is free from
harmful chemicals and is safe for everyday use. The bottle made of soap will not dissolve easily
as the bottle is made up of special composition of soap ingredients which will make the
dissolving process slower.
 It is very effective in cleaning and nourishing the skin or hair, depending on our product type.
The Soap Bottle is easy to use and convenient for customers.
Augmented product:

 The additional features and services are that we are offering a wide range of customization
services that can be delivered to our customer's doorstep.
 We are also providing refill options to customers, which can further reduce plastic waste.

Services:
 Personalized soap-making workshops and classes
 Custom soap design and manufacturing for corporate events and gift-giving
 Sustainable soap-making consulting services for other businesses and organizations
 Soap recycling programs for customers and businesses to reduce waste
 Educational resources and information about sustainable and eco-friendly practices in personal
care and household cleaning.

Pricing
We will adopt the price skimming strategy as our product is a high cost niche product. The average cost
of making one soap in Pakistan is around Rs. 20-50 depending on the quality of the product while our
product also includes liquid soap and 1 liter of liquid soap can range from Rs. 50-150. For Packaging
and shipping, the average cost of one soap box or wrapper can range from Rs. 1-5 per unit and eco-
friendly packaging will cost higher and the average shipping cost can range from Rs. 100-300. Our soap
would be priced on the higher side to cover the additional cost of a soap bottle being made of soap as it
would require more raw materials.

 The cost of using eco-friendly raw materials (Oils, fragrances, lye, and other ingredients) would
be Rs 200-400 including the labor cost and overhead expenses.
 The packaging will be eco-friendly which would cost around Rs. 5-10 and the shipping cost will
be between Rs. 100-300
 The small-sized soap which consists of 100 ml (0.1 Liter) of liquid product would be priced at
Rs. 499.
 The Medium-sized soap which consists of 200 ml (0.2 Liter) of liquid product would be priced at
Rs. 700.
 The large-size soap which consists of 350 ml (0.35 Liter) of liquid product would be priced at Rs.
1000.
Marketing Plan
Situation Analysis
 Internal Environment
Internal factors consist of the factors that affect the business, this includes the product, raw materials,
labor, packaging, promotions and overall the strength and weaknesses of any product that can affect the
business. The main strength of our product is the sustainable and natural elements in the product that
make the product safe and environment friendly.

 External Environment
The external factors that affect the business consist of the government, regulatory bodies, economic
situation, technology, social, and cultural factors. This can have a positive and negative impact on the
business. Also, the external environment includes the opportunities that we can explore in the market and
the threats i.e. competitors, new entrants, expensive raw materials, etc. we may face in the industry.
PEST Analysis
Political Factors:
The political environment of Pakistan can impact our business in several ways;

 Trade policies: If in the future we want to export our product or import better raw materials it
would be difficult as the trade policies of Pakistan are not flexible.
 Government Regulations: Being in the hygiene and personal care category we need to keep the
composition and raw material of our product according to the rules of the regulatory authority.
 Taxation: There are different taxation laws that every business needs to follow in order to fulfill
the legal requirements of the Organization.
Economic Factors:
 The economic environment of Pakistan can impact our business in several ways;
 Inflation: Inflation is a major factor that affects each business operation in Pakistan, as it
increases the fixed and variable cost of every business, which leaves very minimum profit
margins that leads to difficulty in sustaining the business.
 Consumer Spending: Due to inflation consumers spend very less amount of money on luxury and
niche items due to higher prices.
Social Factors:
The social factors that impact our business are;

 Consumer Preference: Consumer preferences are constantly changing due to alternate options.
Consumers nowadays are not afraid to try new things which can be both beneficial and non-
beneficial for our business.
 Lifestyle trends: Lifestyle trends are changing consumers follow social media trends and make
changes in their life. People like to use products that are trending but are not harmful to them. It
can be beneficial for us to market our product online as it is safe and natural which would attract
people.
 Cultural Values: Sustainability is accepted in every culture and is promoted as it preserves the
planet and our product mainly focuses on sustainability and nature which could help us connect
with people.
 Technological Factors:
 Technology is constant advancing all over the world it is important for any company to have
updated technology as it can have a major impact on the quantity, quality and optimization of
time for any organization, it would also save a lot of labor and other costs in the long run.

SWOT Analysis
Strengths:
 Our product is eco-friendly and sustainable, which can distinguish it from competitors in
Pakistani market.
 We can also target a niche market of environment conscious consumers.
Weaknesses:
 Our product has a higher cost due to the use of sustainable and eco-friendly ingredients and
packaging, which may make it less reachable to price-sensitive customers.
 Scarce availability of raw materials
 High packaging and shipping cost.
Opportunities:

 We can differentiate our product by offering unique fragrances, packaging, and marketing
messages.
 You can also expand your product line to include other eco-friendly personal care products.
 New technology can help make the processes more efficient and seamless.
Threats:
 Our competitors may introduce similar eco-friendly products, and consumers may not be willing
to pay a premium for sustainable products.
 There may be new entrants coming into the market.
 The international market has several other major players in the market.
 Major soap companies in the next few years may launch more affordable eco-friendly soaps
which would affect our sales

Competitive Landscape
The competitive landscape for our product will be;

 Other Ecofriendly brands:

Other eco-friendly brands existing in the Pakistani market include Biotique, Rustic Art and Nature’s Co.
These brands somewhat offer a similar range of products and may compete with us on price, quality,
packaging, and promotions.

 Regular Soap Brands:

Regular brands such as Lux, Dove, Lifebuoy, Palmolive, and many more brands exist in the soap
industry, these brands are also our competitors and they offer lower prices and larger product ranges
however they are not eco-friendly and sustainable.

 Small home-based brands:

There are several Instagram and Facebook businesses that are home-based and offer similar products,
with limited range and variety.
  Organic & Natural Personal care brands:
Many brands in the international market like Lush and the body shop offer a wide range of eco-friendly
products with natural ingredients. They may be indirect competition but still can attract customers who
want eco-friendly products.

Target Market:
Demographics:

 Age: The target market for our product is between age of 20-40 who are more likely to prioritize
eco-friendly products.
 Gender: Both men and women can be part of the target market for sustainable soaps, but women
may be more likely to purchase them.
 Income: High evel of Income
 Education: Consumers who are more educated may be more likely to seek out sustainable and
eco-friendly products.
Psychographics:

 Values: Consumers who value the environment and look for natural environment-friendly
products for their daily use.
 Lifestyle: Consumers who believe in healthy living and look for natural, organic options for their
regular use will use our soaps.
 Personality: Consumers who care about the impact of products they use on the environment and
are willing to pay higher prices for the soaps will be our target market.
 Behaviors: Consumers that are more concerned with the environment and want to preserve it,
they will be willing to pay a premium price for the product.
 Media consumption: Consumers that support eco-friendly products will consume media that
promotes sustainability. They would support advertisements, blogs, social media accounts, and
other print ads.
 Brand loyalty: Consumers that care about their own health and the health of the planet would
give priority to our brand as we believe in sustainability at each step of the process.

Segmentation
 Environmentalists: This segment consists of consumers who are dedicated to protecting the
environment and reducing carbon footprints. To fulfill their needs and wants, we should put
maximum efforts into using eco-friendly ingredients and packaging, as well as focusing on
commitment to sustainable practices through all our processes. We will also leverage our
environmental certifications and CSR activities to appeal to this segment.
 Health-conscious consumers: The main focus of this segment includes consumers that prefer
natural and organic products and want to minimize the use of chemicals in self-care products.
Also highlighting the benefits of the ingredients and our dedication to sustainability can appeal to
this segment.
 Luxury seekers: For this segment, our focus will be on maintaining the luxurious feel of the
product, and the classy and clean packaging and branding of soap will attract this segment. To
capture this segment we need to focus on making the quality luxurious and give the product a
premium feel.
Overall, we can meet the needs and wants of these crucial customer segments by focusing on eco-friendly
ingredients and packaging, highlighting sustainability and ethical production processes, offering
competitive pricing, and providing convenient and easy-to-use products. By providing to these different
customer segments, we can expand their customer base and increase their market share in the sustainable
soap industry.

Targeting
Based on the segmentation we will target environment-friendly customers that appreciate products that
are sustainable and for personal hygiene. Our main focus will be on the major cities of Pakistan i.e.
Karachi, Lahore, and Islamabad initially and slowly we will expand into more cities. Customers that
prefer fragrance and other customizations for occasions can also be our target customers. We can also
target hotels and resorts that are luxurious and want to keep eco-friendly products for their customers to
enjoy.

Positioning
The positioning of our product in the customers’ minds would be that our product is for environmentally
aware individuals who care about their health and the planet, our premium eco-friendly sustainable soap
offers a non-toxic way to clean. Made with natural and cruelty-free ingredients and packaged in
decomposable materials, our soap provides a luxurious experience while reducing our impact on the
environment. We can distinguish our product with these qualities for the current players in the market.

Target Expansions
Expanding our target market will help us grow our customer base and our business will grow. We can
expand our target audience in the following ways;

 New geographic markets:

Targeting new geographic markets will help us attain more customers, slowly we can expand into further
cities of Pakistan like Faisalabad, Multan, Peshawar, etc. We can also start exporting to other Asian and
then Western countries.
New psychographic segments:
We can grow your target market by targeting new psychographic segments which include people who are
involved in sustainable living and decreasing carbon footprint, or those who value ethical and socially
responsible organizations.

 New demographic segments:

We can target new demographics which include older people who may be concerned about the
environment, Parents that maybe concerned about the chemicals and toxic elements present In normal
soaps and people with sensitive skin who may desire natural and gentle soap products.

 Offer new product lines:

We can offer new product lines by including different products like shampoo, conditioner, body wash, or
hand sanitizer

 Collaborating with other businesses:

Collaborating with other eco-friendly and sustainable businesses, such as grocery stores, health food
stores, small home businesses, gifting businesses, or sustainable fashion brands, can help you reach a new
audience interested in sustainable products.
  Arranging CSR Activities:
Arranging CSR activities will help keep Pakistan clean and green. Also will engage consumers to
contribute to the environment and it will create a sense of loyalty and establish a sense of accomplishment
for consumers. This will help consumers stay connected with our organization.