Executive Summary

As per the present economic circumstances of Pakistan, corporations lack openings for
expansion and growth because of political and economic uncertainty. Nevertheless, being
enthusiastic we have determined to introduce a new brand of soap called “Essence Soaps” which
we plan to sell by placing it in different retail stores. This business is going to be handled as
partnership among five members and our aim is going to be the satisfaction of our customers
through high quality with reasonable price.

The Essence Soaps is going to start its selling at the departmental stores of Lahore at first. These
stores include the Swera Departmental store located in Shadman, and Al Kareem Departmental
store, located in Faisal Town, at the moment. With time, we plan to increase the number of
outlets to expand our range of selling. We shall take advantage of social media, TV and billboard
advertisements for promotion in order to raise awareness of our brand and reach a greater target
audience. Our main concern are females who take a lot of care when choosing a product for skin
care.

This report explains the below mentioned points in detail.

 What we propose?
 How we offer what we propose?
 The cost we incur.
 How much profit we make?
 Our breakeven point.
 Methods of operations.
 Our business supply chain.
 Our supply chain strategies.
 Managing inventory.
Introduction

Our goal at “Essence Soaps” is to place ourselves as an avant-garde in the soap industry. We
shall be providing our customers with a soap of highest quality that not only softens the skin but
also provides an afterglow, reduces the appearance of blemishes, lessens the acne marks, dark
spots and clears out any dead skin. The “Essence Soaps” will provide a standardized product.
Our main objective is going to be to provide a soap of finest quality to win customer satisfaction.
Across Lahore, our target market are women whose key concern is to look good at affordable
price. Our soap will provide a more natural look without having to use a lot of skincare products.
Before stepping in an industry, it is important to analyze the industry’s performance and evaluate
how profitable the product has been. We aim to be one of the leading companies in this industry.
Our company has a distinctive business model. Our motto at Essence Soaps is “Making you
embrace your natural beauty”. From our motto, it is evident that we place great concern on our
raw materials and do not compromise on quality.
Overview of Industry

The soap industry is carrying great brands within itself which include Dove, Lux and Palmolive
etc. but there is always room for innovation. It is of utmost importance that we completely
analyze the different segments of the industry before taking part in it. Here are a few options one
can consider before diving in the soap industry.

Liquid soap: This type of soap is the most common type as these are seen in homes, offices,
hotels and restaurants for handwashing. This type of soap is dispensed from a bottle or a soap
dispenser. It is easy to use and refill. It contains the same ingredients as a bar soap, liquid soap
generates richer lather which means that it is performing better than a regular bar of soap.

Natural soap: The natural soap uses all natural elements like essential oils and does not use any
chemicals or artificial fragrances. These soaps are also effective in eliminating germs through
proper washing.

Anti-bacterial soap: This soap is said to eliminate all the bacteria present on the hands if it is
used sufficiently. The anti-bacterial soap is often used in healthcare facilities which is most
effective in those settings.

Moisturizing soap: The main concern of this type of soap is to provide moisture as frequent use
of soap dries out the skin. This soap contains a moisturizing agent that helps to reduce this issue.
The moisturizing soap carries elements such as aloe, shea butter and cocoa butter.

Chemical free soap: Most soaps have a chemical component in them. A chemical-free soap
only utilizes plant based elements and is made with oil and lye. These types of soap are mainly
made for people with sensitive skin and are a little expensive than regular soaps.
Business Description

Selection of Essence Soaps:

As we all know, soap is something that is used 3 to 4 times in a day by every person on a daily
basis. Therefore, we selected this product because of its frequent use and by analyzing the
market segment, we came to realize that women are ones who are extremely conscious of their
looks and get worried if they discover a pimple or a dark spot on their skin. So, our main target
will remain females.

Idea Development:

Nowadays, the people are more concerned with their appearance and willingly spend money on
products for skincare to make their skin fresh, glow and pimple free. Pakistan’s top brands like
Dove, Lifebuoy, and Palmolive etc. are dominating in this industry leaving very little room for
new entrants. But all these brands are focused on only one component such as moisturizing,
germs or natural elements. Our brand will not only use natural ingredients for manufacturing, our
soap will also provide our customers with a natural and fresh look, reducing the acne marks,
blemishes, dark spots and softening of the skin.

According to our forecast, if marketed in the right way, we can make it into a highly profitable
business especially if our soap solves more than one issue of the people. We will have to provide
our product and service in a timely manner with dedication all the while maintaining its quality
and value.

Type of business:

Our business will carry out the Business to Business model because we will place our product at
different retail stores and the customers will buy the soaps from there. It is also a good approach
for us as products are delivered in bulk which leads to lower costs for business. This type of
model also has good market predictability and stability.

Name:

We have chosen Essence Soaps as the name for our brand.

Our Vision and Mission:

“Our vision is to provide of root of confidence in women. We are here to instill a positive
perspective in women about themselves and to increase their self-esteem.”

“Our mission is to provide our customers with the all-natural ingredient soap of highest quality
that not only gives their skin an afterglow but also reduces any blemishes and dark spots.”

Location:

Initially, we plan to place our product in two outlets which include Swera Departmental Store,
located in Shadman and Al Kareem Departmental Store, located in Faisal Town. These stores
offer us great opportunity as people use these stores for their grocery shopping.

Product:

Our company offers the customer a great product that contains all the best features in one. The
Essence Soap is not only great for softening the skin but it also gives the user an afterglow and a
refreshing look. Apart from this, our soap also provides a whitening effect, reduces dark spots,
acne marks and lessens the appearance of blemishes.

Service:

We also provide our customers to leave their reviews and any remarks, good or bad, at the stores
from where they buy our soap. This will help us taking in account the issues a customer faces
while using our soap and make changes in it accordingly to ensure a happy customer.

Pricing Strategy:

As we are entering a dominated industry, so we will follow penetration pricing strategy and keep
our initial prices lower than our competitors. This will allow us to quickly assemble a large
customer base and make our product stand out from the rest. A lower price product with a high
quality will motivate a customer to switch brands and generate demand for our product.