Business Plan

Prepared by:
Ramla Riaz Gillani
Sehrish Asad
Syeda Fatima Rizvi

Course Instructor: Ms. Misbha Bashir

Date: 4th May 2019
Contents
ACKNOWLEDGEMENT ........................................................................................................ 2
EXECUTIVE SUMMARY....................................................................................................... 3
TAGLINE .............................................................................................................................. 5
UNIQUE SELLING POINT ..................................................................................................... 5
FINANCIAL PLAN ................................................................................................................ 5
START-UP ......................................................................................................................... 6
Payroll PLAN...................................................................................................................... 7
Target Audience .................................................................................................................. 7
COMPETITIORS ANALYSIS ................................................................................................. 7
OPERATIONAL PLAN ........................................................................................................... 8
MARKETING PLAN .............................................................................................................. 9
FUNTIONS OF BUSINESS ................................................................................................... 10
SWOT ANALYSIS ............................................................................................................... 12
Questionnaire ........................................................................................................................ 13
 ACKNOWLEDGEMENT

First and foremost, we would like to Thank Allah the Almighty without Who’s will the

completion of this Business plan would not have been possible.

We would also like to extend my sincerest gratitude to our course instructor Ms. Misbha

Bashir for providing us with guidance and knowledge every step of the way. She made us

explore new domains of academics and urged us to do our best.

Our friends, peers and classmates have also been a huge help and motivation for which we

are deeply grateful.

 EXECUTIVE SUMMARY
Cosmetics and personal grooming has had the population captured and transfixed for the
longest time. Women and men of all ethnicities, shapes, sizes, complexions and cultural
background have the desire to look presentable. To achieve this, the easiest way out is the
frequent use of heavy cosmetics. Be it weddings, parties, meetings, professional
commitments or just another day at home, application of various quantities of make-up has
become essential. According to survey by Money magazine's video, the average woman will
spend $15,000 during her lifetime on beauty products. And $3,000 of that is dedicated to
mascara alone. Additionally, women tend to spend huge sums in order to get good quality
products. This is particularly a problem for Pakistani women. Firstly, the availability of high
class international cosmetics is an issue itself, then due to dollar exchange rate, the price paid
for international cosmetics has been kissing the skies with soaring shipping charges. Cherry
on top, all that capital goes outside of the country, leaving an economical gap.
R’sana, an inclusive cosmetics and personal grooming brand, might just be a solution to
many of such problems. The brand aims to introduce high-end cosmetics with 100% herbal
formulae, with healing and therapeutic qualities, all manufactured in Pakistan. The plan
inculcates the production and manufacturing of cosmetics (100% cruelty free) using local
natural resources, a salon/showroom for the display and sale, a makeup service department,
and a professional ‘colour therapy’ clinic/spa, all in one place, where customers can be
treated and advised to use certain colours to treat various psychological health issues, that too
in a reasonable price.
There are no cosmetic manufacturing industries in Pakistan, which make good quality high-
end cosmetics, thus people are forced to rely on international brands for quality. The only
high-end cosmetic brand of Pakistan, having captured international market is, by Musarrat
Misbah, which has its production plant in Turkey. If such industry is to be established in
Pakistan, it will have scope and greater prosperity probability. It will provide employment in
different sectors to all disciplines. Especially science students, who end up mostly in teaching
as their profession due to lack of employment opportunities in their field, may have a chance
to work and utilize their lab skills. It will also provide employment to labour force. Most
importantly, it will generate capital for the country if proper marketing channels are utilised.
The brand aspires to be environment friendly by using biodegradable packaging instead of
conventional plastic packaging. The brand will also encourage plantation of various exotic
valuable and therapeutic plants and setting up of biotechnology industry which will prove as
another benefit for the nation.
 TAGLINE
‘LET THE COLORS DEFINE YOU’

UNIQUE SELLING POINT

In the modern era, an increasing population of people especially women are inclined to
purchase cosmetics that have minimal amount of synthetic chemicals. For such enlightened
individuals R’SANA offers the perfect solution. Our wide range of cosmetics are based
entirely on herbal formulations which not only serve to highlight your already beautiful
features but also act as therapeutics for reoccurring skincare problems like acne, blackheads
etc.

FINANCIAL PLAN

The initial budget/investment would be around 1.5 crores which will be taken as a loan from
a bank. Out of this 1.5 crore, 35 lacs would be invested in the manufacturing of the products
(7 lacs per product OR 7*5=35 Lacs for 5 products).
The production house would be located in the industrial area of Karachi (i.e. S.I.T.E) which
would give us an advantage of low electricity, water and other resource (s) prices as per the
government policies.
The sales and marketing would be done online for the first 2 years. In the third year however,
we aim to launch our first showroom in Defense phase VIII Karachi.
In the later years (4th or 5th) we would include a spa and psychotherapy clinical with the
showroom and also launch 2 more stores within the city.
For delivery the brand initially plans to contract with delivery service providers like TCS but
by 3rd year depending on the profits we will expand our staff to include a delivery team.
Packaging will initially be done in contract with local packaging industries but by the 5th year
we plan to set up our own packaging plant.
The remaining finances will be allocated to staff salaries and day to day business expenses
(bills, lease, food, transport, salaries etc.)

INSHA’ALLAH.
START-UP
REQUIREMENTS RUPEES

MANUFACTURING PLANT 8 Million

• R & D LAB

• QUALITY CONTROL LAB

• LARGE SCALE MANUFACTURING

PLANT

• PACKAGING

LEGAL (LICENSE) 40,000 or 0.04M

IT AND TELECOMMUNICATIONS 1,000,000 or 1M

WEBSITE

SOCIAL MEDIA PAGES AND

OPERATORS.

IT LAB FOR ALL OF THE SALES

OPERATIONS.

RENT 35,000 or 0.035M

UTILITIES 80,000 or 0.08M

EQUIPEMENTS 3 Million

INSURANCE 50,000 or 0.05 M

PAYROL 1,000,000 or 1M

TOTAL INVESTMENT 150 crore or 15 M

PAYROLL PLAN
DESIGNATION SALARY (IN Rs) Number of Total

employees

BUSINESS PARTNERS

• MS ………….

• MS …………..

• MS ……………

MANAGING DIRECTOR 100,000 1 100,000 (1)

DEPARTMENT HEAD(S) 60,000 7 420,000 (7)

STAFF SALRIES 22,400 / person 25 560,000 (25)

SECURITY GUARD 10,000 2 20,000 (2)

Target Audience

Gender: both males and females.

Age: 12 years and above
Class: middle, upper middle and elite class.

COMPETITIORS ANALYSIS
R’SANA’s cosmetics will be the first of its kind cosmetic company that would offer its
customers entirely natural products based on plant formulas (mostly) with no or minimal
synthetic impurities. The only near competition that the company might have would be from
 Masssarat Misbah’s cosmetic line but R’SANA would out-compete them by being the first
to have a production plant based in Pakistan itself. This would increase employment in the
home country as well as reduce the production and shipping/packaging cost making the
products even more economical.

MUSARRAT MISBAH

OPERATIONAL PLAN

Partner 1 Partner 2 partner 3

MD

Production and
R & D/ QA HR Marketing & sales Finance procurement IT
distribution

6
2 2- 6 2 2 3
skilled
staff members marketing technichians staff members staff members staff members
technichians

2-
sales
 MARKETING PLAN
PRODUCT
We offer a wide range of cosmetic and personal grooming products useful for women and men of all
ethnicities and cultural backgrounds. Our products are of high quality manufactured by state-of-the-art
equipment and machinery.
For purchasing our products customers can contact us on our landline to place the order. Our range of
products can also be purchased online through our website and our social media sites. The website
will have different payment options such as via credit card or cash on delivery. Customer(s) will
receive a conformational email and the products will be delivered to them in 2-3 working day.

PRICE
We offer very reasonable prices which are affordable for majority of the consumers. Our company
holds a wide range of products at different price tiers. We have minimized our added costs yet have
not compromised on the quality of our products to provide our customers with the best.
Our prices are set in such a way that would encourage our customers to invest in our cosmetic
products. We have put our best foot forward to ensure our products are value for money.

PROMOTION
Our products will be promoted through advertisement via print media, electronic media and social
media. We will be targeting both males and females of middle and upper class. Our sales agent and
customer services agents will make sure to have a superior relationship with our customers to fully
make them aware of our upcoming products. Our products are up-to-date with the emerging
technologies and grooming requirements of consumers. We will provide our customers with the
relevant information and the one they are not familiar with. Our customers can also subscribe to our
newsletter so that they won’t miss any information update.

PLACE
Our manufacturing plant will be located in the industrial area of Karachi and initially we intend to
keep the sales online but once we reach high profit levels, we intend to expand our business as we aim
to launch our first showroom in Defense phase 8 in Karachi.
FUNTIONS OF BUSINESS
IT: a professional team of 3-4 members will be responsible for handling our social media
pages as well as the website. The department will work along with the marketing, sales and
production department to maintain and organize the log of products produced and sold.
Human Resource: The Human Resource department will be responsible for all the employee
related activities like the recruitment, salaries, conflicts etc. The team of 5 members will
include one compliance officer who will work along side the Legal Advisor (Adv. Arham
Tariq Rafi) to ensure that the companies abides by the National and International regulations
regarding the cosmetic business.
• Recruitment and Selection
• Training & Development
• Compensation & Benefits
• Performance Management.
Finance: This department as the name implies will be responsible for maintaining proper
inflow and outflow of money. The proper quota of the profits being allocated to all the
departments and to make decisions and strategies of which department to invest more in.
Marketing and Sales: The department will be responsible for keeping an eye on the
changing market trends and consumer demands. They will be working under the IT
department since the business will initially be online.
Quality Assurance: As a business that aims to create cosmetics that can potentially be used
as therapeutics thus there would be special emphasis on creating best quality products. This
would also include ensuring that only high-end raw materials are purchased after a through
and strict quality assurance process.
R & D: The department will include a team of chemists, cosmetic scientists and bio scientists
who would work along side the quality assurance department to create the products that will
help us stand out in a growing and competitive market of cosmetics.
The Research and Development team would work towards creating herbal based formulations
that would allow the users to not just enhance their already beautiful features but also serve as
therapeutics for some of the growing dermal problems.
Once the business gains popularity and profits grow beyond the break-even point R’SANA
plans to launch the first ever salon and spa in Pakistan to offer not just the standard cosmetic
and dermal therapeutic services but also a well-structured color therapy to boost the
diminishing self confidence of our youth. Here, experienced and seasoned psychologists and
color experts would help our customers make customized and personalized choices regarding
what color(s) might suit them, what colors to be around in terms of clothes or even wall
paints and whether natural colors like green and blue might help them overcome their issues.
To the best of our research color therapy has proved to be as successful as using
antidepressants but with the added benefit of having no side effects.
Production and Distribution: The department will be responsible for large scale production
of products proposed and passed by the R & D department. Once created the products will
further proceed for testing by the quality assurance department before being forwarded to the
sales or distribution departments.
Administration: Since the company is the brain child of 3 science graduates so initially, they
will be the only ones responsible for handling the overall administration and decision making
for the business.
Procurement: This department would be responsible for dealing with the purchase of best
quality raw materials in order to ensure that our products are 100% authentic and true to the
vision and objective of the company.
 SWOT ANALYSIS

•Herbal formulations
•Cruelty free • arranging high quality raw
materials can be tricky.
•Locally manufactured hence • since production and
comparitively less manufacturing industries are
expensive. not well established, thus it may
•Well suited to large masses. be difficult to establish one.
• training of employees may be
difficult

strengths weaknesses

opportunities threats

•creating new jobs for

bioscientists and •Competiting with the
biotechnologists. already established
•Constantantly increasing international brands.
demand in the beauty
industry for better, more
natural products.
 Questionnaire

1. Are you a woman between the ages 12-25?

o Yes

o No

2. How frequently do you wear makeup?

o Never

o Special occasions

o Weekends Only

o Rarely (1-2x per week)

o Everyday/Everynight

Our purpose is to survey 12-25-year-old makeup users. For this reason, If you
answered NO to question 1 or NEVER to question 2 ; we kindly thank you for
your time and ask that you please exit the online survey.

3. At what age did you start wearing makeup?

o Before 12

o 12-13

o 14-15

o 16-17

o 18-19

o 20-21

o After 21
4. Please list your top 3 makeup brands?

o 1st choice

o 2nd choice

o 3rd choice

5. How did you learn to apply makeup?

o Video tutorials on Youtube or another online site

o Friends

o Mom or older sister

Other (Please Specify)

6. Of the choices listed, which best describes your makeup style?

o Feminine

o Trendy

o Natural

o Edgy

o Glamourous

o Retro
o Other (Please Specify)

7. What is your primary reason for wearing makeup?

o Hanging with friends

o Work

o School

o For my boyfriend/significant other

o Going on dates
o Other (Please Specify)
8. Where or who do you primarily purchase makeup from?

o Drug store (ex. CVS, Walgreens, etc)

o Directly from manufacturer

o The Internet

o Department store

o Sales Rep

o Specialty makeup store (ex. Sephora, Ulta etc)

9. How much are you typically willing to spend on your skin products? (ex. facial
cleasers, lotion, etc)

o Rs 100 to 500

o Rs 500 to 1000

o Rs 1000-2000

o More than Rs 3000.

o More than that (please specify)

10. How much are you typically willing to spend on your eyeliner products?(Ex.
mascara)

o Rs 100 to 500

o Rs 500 to 1000

o Rs 1000-2000

o More than Rs 3000.

o More than that (please specify)

11. How much are you typically willing to spend on your primary lip/lipstick
products?
 o Rs 100 to 500

o Rs 500 to 1000

o Rs 1000-2000

o More than Rs 3000.

o More than that (please specify)

12. Please star the order of where you purchase your main skin products (facial
cleansers, lotion, etc) ; (7 stars being the first place you would make your purchase
and 1 star being the last place you would consider making your purchase.)

o Department store *******

o Online *******

o Catalogue *******

o Makeup dealer/consultant *******

o Drug store *******

o Sales Rep *******

o Specialty makeup shop (ex. Sephora, Ulta, etc) *******

13*Please star the order of where you purchase your main makeup products (ex.
Mascara, lipsticks etc.); (7 stars being the first place you would make your
purchase and 1 star being the last place you would consider making your
purchase.)
o Department store

o Online

o Catalogue

o Makeup dealer/consultant

o Drug store

o Sales Rep
 o Specialty makeup shop

14. What do you look for specifically in a beauty product?

o Quality

o Packaging

o Variety

o Natural ingredients/formulas

o Price
o Other (Please Specify)

15. What do you look for specifically in a skincare product?

o Quality

o Packaging

o Variety

o Natural ingredients/formulas

o Price
o Other (Please Specify)

16.What do you look for specifically in a lipstick/lip product?

o Quality

o Packaging

o Variety

o Natural ingredients/formulas

o Price

o Other (Please Specify)