Megaloprepis Cosmetic Logistic

MAGNIFICENCE LEADS TO A RAPID VICTORY

BUSINESS PLAN
By:

Boston, Easter Jane O.

Nedera, Ariane R.
Arnuevo, Zephanie A.

0
 Megaloprepis Cosmetic Logistic

Table of Contents
Executive summary 2
1.0 The Market Study 4
1.1 Target market 4
1.2 The Product 4
1.3 The Place 4
1.4 The Price 5
1.5 The promotion 5
1.6 Business Strategy 5
1.7 SWOT Analysis 6
2.0 The Technical Study 8
2.1 The Product-goods or services 8
2.2 Manufacturing Process 8
2.3 Direct Cost 9
2.4 Labor Cost 10
2.5 Indirect Cost 10
3.0 Organization and Management Study 12
3.1 Organizational Chart 12
3.2 Organizational Structure 13
4. 0 Financial Study 14
4.1 Capitalization 14
4.2 Source of Capital 14
4.3 Sales and Cost Plan 14
4.4 Cas Flow Plan 15
5.0 Socioeconomic Study 16
5.1 Industry Analysis 16
5.2 Environmental Analysis 16
5.3 Proof of Market 16
5.4 Benefits to the society 17
4.1 SWOT Analysis 17
4.1 Conclusions and Recommendations 18

1
 Megaloprepis Cosmetic Logistic

EXECUTIVE SUMMARY
This plan was made to put up a cosmetic logistic in the name of Megaloprepis
Cosmetics Logistic that will be located at San Antonio Valley Road, Talon 1, Las Piñas,
Philippines. This cosmetic logistic is a corporation owned by the following: Easter Jane
Boston, Zephanie Arnuevo, and Ariane Nedera. We will use a start-up capital of Six
hundred twenty thousand pesos (₱620,000.00). The Four hundred twenty thousand
pesos (₱420,000.00) will be put under owner’s equity while the remaining two hundred
thousand (₱200,000.00) will be put in a bank loan.

The personnel under this cosmetics logistics are the general manager,
secretariat, production staff, purchase staff, sales staff, and finance staff.

The main target of this cosmetic logistics is to provide new quality products to
our customers to empower them in improving their skin excellence, to acquire greatest
consumer loyalty and satisfaction, continued quality production to supply the items
needed by our customers.

To achieve our objective, this cosmetic logistic will utilize the following
strategies: offers effective quality of body skin lotions, oils, and natural beautifying
agents. This item will be introduced through advertisements by utilization of signpost,
commercials, direct selling, offering incentives to our customers and we also tend to
offer a moderate lower cost for market entrance. All this strategy includes supplier
relationship strategy, communication strategy, marketing strategy, human resource
strategy and competitive strategy.

The vision of this business is “To assemble a worldwide brand that is focus on
upgrading the normal excellence of ladies and men by helping the company in
continually giving the best items and service around the world.”

Our central goal is committed on helping cosmetics business in handling the

flow of goods and services of our clients that will help them in processing their
products about improving the skin health, body look and appearance of our
customers, “To guarantee the total fulfillment and prosperity of our customers in
producing elite beautifiers and advancing development, greatest proficiency, intensity
and social study. We intend to be perceived by continually attempting to arrive at a
trade-off between one’s magnificence and prosperity.”

2
 Megaloprepis Cosmetic Logistic

Our target customers are the different cosmetics businesses, retailers, market
merchants, workers, tourist and even students who will consume a scope product
including body moisturizer, perfumes, hair relaxer cream, and body cream.

The form of distribution that we will used will be assimilate through

wholesalers, distributors, retailers who will purchased and sell in a bulk to the final
customers. We are also going to use a van that will be rented for delivering to those
customers who will purchase a large amount or quantities.

With regards to legal responsibilities, the following taxes will be applied to the
business: employee’s income tax, municipal tax, withholding tax, percentage tax, value
added tax and other licenses that is needed for trading. We also need protection for
the products by means of applying for insurance and furthermore do other social
obligations like corporate social duty, being harmless to the environment and
guaranteeing neatness.

The items and products will be price and estimated after comparing it with our
major competitor’s pricing and costing data obtained through statistical surveying. We
also accomplished a cashflow to guarantee that the business does not run out of
money.

Our start-up capital has been assigned to what we expect to begin our business
with that is leasing building for the time being, purchasing machines for blending and
other important things to start including the salaries of our employees.

3
 Megaloprepis Cosmetic Logistic

1.0 THE MARKET STUDY

1.1 Target Market

Our target customers are the different organizations that deals with beautifying
agents, retail shops, stores everywhere in the country and foreign countries, and
the different customers who will purchase directly from the company and from
mobile merchants like the young kids, men and generally ladies.

Megaloprepis cosmetics logistic will distribute to our global distribution center

and national stores, retail outlets and for our other customers they can purchased
straightforwardly from the main shop located at San Antonio Valley Road, Talon 1,
Las Piñas, Philippines.

1.2 Product
Megaloprepis cosmetic logistics will produce a various type of cosmetic products
including body lotions to hair relaxers with possibilities of utilizing organic
products, both uncommon and common natural products as key essential
ingredients in making body oils and moisturizers. This will be expected to improve
the overall skin wellbeing just as boosting the magnificence skin of our customers,
particularly women. Among the natural products we are going to use the extract of
natural products such as avocadoes, lemons, and orange to create body creams
that moisturize and smoothens the skin for healthy and appealing look of our
customers.

The business will practice significantly in cosmetic products and making of

locally made cosmetic products to treat skin ailment, for example, contagious
infections utilizing vegetables and natural products as an ingredient in making the
products

Megaloprepis cosmetic logistic will offer reliable beautifying agents and

moisturizers to improve the general skill wellbeing just as boosting the excellence
skin of our customers particularly women, skin treatment, fix skin rashes and
guarantee the magnificence of our customers.

1.3 Place

Megaloprepis cosmetics logistic will be located at San Antonio Valley Road,

Talon 1, Las Piñas, Philippines. The area is generally excellent since there are lot of
stylist, and there are also lots of potential customers of our products. We choose
this spot because of a blast of business activities, an expected customer from
students, sightseers, workers, and the huge population of the area.

4
 Megaloprepis Cosmetic Logistic

1.4 Price

The various sizes of our items will be charged from different costs and the basis
of evaluating will be founded on all out cost that have been used, competitors
pricing and on how much does our customers willing to pay.

1.5 Promotion

We plan to invest in an advertisement for our products using signs, face book
etc. we also expect to utilize an exceptionally talented promoting director to
showcase our products. We expect to likewise visit our stores and major
wholesalers of our products and utilize other techniques for promotion.
1.6 Business Strategy
Our business will include the following strategy: supplier relationship strategy,
competitive strategy, human resource management strategy, marketing strategy
and communication strategy.
Supplier relationship strategy
Megaloprepis cosmetic logistic will guarantee a nearby working relationship
with our providers and we are also going to provide advance programs about our
product for the customers.
Competitive strategy
We will aim to position the business in the core of the country specifically being
close to high market region makes the item effectively available by our customers.
A forceful promoting mission will be embraced with the goal that we make a lot of
consciousness of our product than our competitors through our exceptionally
talented crew and workers that will be highly in touch with our customers.

Human resource management

Megaloprepis cosmetic logistic will begin with its accomplished individuals in
different fields that are valuable in the business to make a competent group of
reliable staff for productivity and powerful tasks and objectives situated.
Arrangement of positive working conditions to keep a high level of awareness and
fulfillment of the workers and guaranteeing that our representatives are
continually prepared when need arises.

Marketing strategy
Megaloprepis cosmetic logistic intends to convey through outdoor promoting, TV
advertising and online advertising to produce deals. This will be initiated by our

5
 Megaloprepis Cosmetic Logistic

advertising group to deal with the marketing campaign. The key message related
with our products is great quality of beautifying cosmetics and skin care.

Communication strategy
The main aspects of an effective and successful launch are a positive exposure
for our beautifier products. We will generate mindfulness missions to advance our
products.
1.7 SWOT Analysis
Cosmetics business is one of the most developing business in the country with
various enterprises unisex magnificence beautifying agents with numerous
branches and other independent ventures that have joined the industry. Despite of
the increasing number of cosmetics businesses in the industry, customers request
is not completely met because of poor delivery of products to the customers.
Fovero cosmetics are targeting to fill this gap. The business will show an
extraordinary standing because of the expanded differences in customers
necessities like skin tones, hair cosmetics and customer general excellence of
beauty.

6
 Megaloprepis Cosmetic Logistic

Strengths Weaknesses Opportunities Threats

 High quality and  Few laborers in  Financial lift  Constant
uncommon organization from banks for changes in
bundling material that delays administration customers
which are natural production development request
well-disposed that  Inadequate and office which sway
we offer involvement improvement on our degree
 Operating from the with the  The competitors of fulfillment
cleanest market of Megaloprepis to our
surroundings/ because of few cosmetics customers
environment months of logistic do not and changing
 Availability of start- operation than have the idea financial
up capital the competitors on how to conditions
 Strategic area in the  Do not have productively  The
easy views complex sufficient deal with their customers
which has a record keeping store supply are used to
sufficiently high system chain and purchasing
space  Low capital distribution from
 High degree of contributions channels effectively
customer’s care to fire up with  Megaloprepis settled
 We will wok setting up the cosmetics cosmetics
consistently 24 plant and logistic is shop who
hours to meet our extending the developing a undoubtedly
customers’ needs business tasks new beauty care embrace to
 Offering free to different products vendor for us
preparing and districts that will set up
consultancy  Limited nature to increase the
administrations to inputs like market base
our customers fruits and  The competitors
 Ability to make vegetables used of Megaloprepis
cosmetic products for making Cosmetics
from accessible other products logistic do not
organic products  Low degrees of think about the
information arising
about cosmetic thoughts in the
business worldwide
procedures to
suit customer’s
interest

7
 Megaloprepis Cosmetic Logistic

2.0 THE TECHNICAL STUDY

2.1 The product- goods or services

Body cream Body lotion Perfume Hair Glow Hair relaxer

smoother cream
Quality High quality Essential High quality Essential Fundamental
for the quality to for the quality quality to
customers keep costs customers gain
generally customers
low loyalty
Size Large- Large- Large- Large- Large-
500ml 500ml 600ml 600ml 600ml
Medium- Medium- Medium- Medium- Medium-
250ml 250ml 300ml 300ml 300ml
Small- Small- Small- Small- Small-
125ml 125ml 150ml 150ml 150ml
Color White White Transparent White White
Yellow Yellow Blue Green Green
Blue Blue Green Blue Blue
Green Green Orange
Packaging Plastic Plastic Metallic Plastic Plastic
containers containers containers containers containers
and tube and tube and tube and tube

2.2 Manufacturing process

The manufacturing process for cosmetic products is exceptionally difficult and

the competition in the overall beauty care products market is really an intense
part. Change is the only consistent when it comes to the patterns of customers in
terms of buying, high raw materials cost, and of course the different regulations.
When it comes to market share, time to market and assembling adaptability are
the decisive part. Our skill in production, solid instrumentation drives to a
productive and secure assembling that leads to competitive edge.
STEP 1: Enhance stock control
Dynamic fixings in manufacturing cosmetic products are highly expensive and
should be put away and observed appropriately to limit wastage. Various advancement
is needed to quantify stock, like hydrostatic pressing factor sensors, radar level and
capacitance estimation.

8
 Megaloprepis Cosmetic Logistic

STEP 2: Accurate Mixing

Blending is the most demanding part in assembling beautifiers and key in
deciding the nature of the result. Precise expansion and mixing of raw materials, just
as effective utilization of energy and water, is vital to limit waste and decrease the cost.
Taking care of oil-based and tacky products with different thickness, stickiness,
consistency of semifluid and densities can likewise present huge difficulties.

STEP 3: Precise filling and dosing

Guaranteeing that the specific measure of item is occupied each time precisely
and consistently is vital in producing cosmetic products. Besides, mechanical filling
and dosing parts can bear high maintenance and be questionable or unreliable,
setting off interruptions in the process.

STEP 4: Rapid calibration and maintenance

Alignment and support exercises can lead to time consuming and costly
production of products. Shut down period must be lessening to meet the expected
productivity.

STEP 5: Total compliance

To distinguish issues that can influence the nature of the cosmetic product,
consistence to standards is very essential. Direction expresses that equipment ought
to align consistently or checked by a standard operation procedure with appropriate
results that is recorded.

2.3 Direct cost

The following are the raw materials that will be used in production for the
outcome of product: includes, avocadoes, lemon, and orange.
Product cost

Raw materials Buying price Quantity of item Total amount

per 1kgs (Peso)
Avocadoes ₱50.00 5 ₱250.00
Lemon ₱25.00 10 ₱250.00
Orange ₱35.00 10 ₱350.00
Total cost ₱850.00

9
 Megaloprepis Cosmetic Logistic

Stock of raw materials cost for the month

Raw materials Buying price Quantity of item Total amount

per 1kgs (Peso)
Avocadoes ₱50.00 220 ₱11,000.00
Lemon ₱25.00 280 ₱7,000.00
Orange ₱35.00 250 ₱8.750.00
Total cost ₱26, 750.00

2.4 Labor cost

Employee Total working hour per Total monthly pay

month
General manager 208 ₱37,440.00
No. of employee: 1
Secretariat 208 ₱11,440.00
No. of employee: 1
Production staff 1040 ₱62,400.00
No. of employee: 5
Purchase staff 624 ₱31,200.00
No. of employee: 3
Sales staff 624 ₱40,560.00
No. of employee: 3
Finance staff 416 ₱37,440.00
No. of employee: 2
3120 ₱220,480.00

2.5 Indirect cost

Indirect cost per month Cost

Rent of building ₱10,000.00
Rent of van ₱5,000.00
Electricity/water ₱7000.00
Labor cost ₱220,480.00
Insurance ₱800.00
Loan interest ₱20,000.00
Advertisement and sales promotion ₱5,000.00
Depreciation ₱8,000.00
Distribution cost ₱6,000.00
Total cost ₱277,280.00

Computation for insurance

Insurance cost per month= 9600/12 months
=₱800.00

10
 Megaloprepis Cosmetic Logistic

Computation for loan interest

Loan interest=10%x200,000
=₱20,000.00

Computation for depreciation

The cost of equipment that will be used within 10 years is ₱80,000.00
Depreciation per year= 80,000/10 years
= ₱8,000
Depreciation per month=8,000/12 months
= ₱666.67
Computation for indirect cost per item
Indirect cost per item=total indirect cost per month/total hours in
production per month
Indirect cost per item= 277,280/3120
=₱88.87

11
 Megaloprepis Cosmetic Logistic

3.0 Organization and management study

3.1 Organizational Structure

The personnel under this cosmetics logistics are the general manager,
secretariat, production staff, purchase staff, sales staff, and finance staff.

GENERAL MANAGER will be the one to supervise the movement, distribution

and storage of supplies and materials in the company. The general manager will be
tasked about analyzing budgets, planning routes and processing of shipments.
SECRETARIAT, will be responsible of answering calls, messages, and handling
correspondence, maintain notes, typing, preparing, and collating repots, and
arranging appointments.
PRODUCTION STAFF will be responsible for operating and maintaining
equipment in the company and will also be the one who is tasked in preparing items
for distribution. It includes assembling and checking the products, ensuring that all
machinery runs smoothly and assisting in the shipment of products.
PURCHASE STAFF will be tasked in implementing and developing of
purchasing strategies. They will be the one who oversees managing daily purchasing
activities, managing supplier relations, negotiating contracts, prices, timelines and
maintain supplier database, purchase records and other related documents.
SALES STAFF, will be responsible in selling customer freight solutions,
ensuring high volume of customer interactions, encompassing prospecting, cold
calling and closing deals like customer service and account management.
FINANCE STAFF, they will be the one who is responsible for allocating financial
transactions of the company. They will be the one to develop budgets, monitor
transactions and preparing financial reports.

12
 Megaloprepis Cosmetic Logistic

3.2 Organizational Chart

13
 Megaloprepis Cosmetic Logistic

4.0 Financial Study

4.1 Capitalization
This table shows the calculated capital need by Megaloprepis cosmetic logistic.

Renting of building ₱10,000.00

Renting of Van ₱5,000.00
Machine equipment ₱80,000.00
Distribution cost ₱10,000.00
Electricity/water ₱7,000.00
Stock of raw materials ₱26,750.00
Office furniture ₱25,000.00
Cloths and uniform ₱10,000.00
Wages ₱220,480.00
Promotion ₱5,000.00
Insurance ₱800.00
Loan interest ₱20,000.00
TOTAL ₱420,000.00

4.2 Source of capital

This table shows the source of capital that will be use by Megaloprepis cosmetic
logistic.

Owner’s equity ₱420,000.00

Bank loan ₱200,000.00
TOTAL ₱620,000.00
Required capital ₱620,000.00

4.3 Sales and cost plan

This table shows the sales, cost, and profit for the first year of Megaloprepis
cosmetic logistic to develop forecast.

Month Sales material Labor Profit Indirect Net

cost cost cost profit
January 4000 1,000 1,500 1500 1,000 500
February 4500 1,500 1,500 1,500 1,100 400
March 4000 1,000 1,500 1,500 1,000 500
April 8000 2,000 1,500 4,500 1,700 2,800
May 10,000 3,000 1,500 5,500 2,000 3,500
June 15,000 4,500 1,500 9,000 2,200 6,800
July 10,000 3,000 1,500 5,500 2,000 3,500
August 10,000 3,000 1,500 5,500 2,000 3,500
September 15,000 4,500 1,500 9,000 2,200 6,800
October 10,000 3,000 1,500 5,500 2,000 3,500

14
 Megaloprepis Cosmetic Logistic

November 20,000 5,000 1,500 13,500 2,500 11,000

December 20,000 5,000 1,500 13,500 2,500 11,000
TOTAL

4.4 Cash flow plan

This table shows the estimated cash flow plan of Megaloprepis cosmetic logistic
to monitor the cash of the company to avoid running out of money.

January February March April May June July August September

Cash at the 10,000 15,000 10,000 13,000 14,000 26,000 20,000 24,000 25,000
start of the
month
Cash in 4,000 4,500 4,000 8,000 10,000 15,000 10,000 10,000 15,000
from sales
Total cash 14,000 19,500 14,000 21,000 24,000 41,000 30,000 34,000 40,000
in
Cash out 1,000 1,500 1,000 2,000 3,000 4,500 3,000 3,000 4,500
from
material
cost
Cash out 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
from Labor
cost
Cash out 1,000 1,100 1,000 1,700 2,000 2,200 2,000 2,000 2,200
from
indirect
cost
Total cash 3,500 4,100 3,500 5,200 6,000 8,200 6,000 6,000 8,200
out
Cash at 10,500 15,400 10,500 15,800 18,000 32,800 24,000 28,000 31,800
the end of
the month

15
 Megaloprepis Cosmetic Logistic

5.0 Socioeconomic study

The beauty care products and individual consideration industry makes a huge social
and economic commitment to public and local economies across the country. Through
the purchase of products and services and the payment of duties and employee wages,
the cosmetic industry creates various rounds of financial and economic spending and
re-spending that benefits the countries economy and its people.

5.1 Industry Analysis

The Megaloprepis cosmetic logistic will be segmented based on the class, sex,
distribution channel and area. Based on class, the market is divided into skin and
skin care products, hair care products, fragrances, and color of cosmetics. By
sexual orientation, it is divided into men, ladies, and unisex. Based on distribution
channel, it is sorted into cosmetics businesses, retailers, wholesalers, and
distributors.

5.2 Environmental Analysis

The Megaloprepis cosmetic logistic is focusing like never to attempt to go green.
The packaging is turning out to be progressively eco-friendly for less weight on the
environment. But there are still issues with the use of plastic within cosmetic
products.

5.3 Proof of market

Based on top-down analysis of beautifying agent’s production network, starting
from raw materials contribution, through assembling, distribution, and wholesale, to
retail and the cosmetic services industry, this report tries to outline the socioeconomic
significance of cosmetic logistic industry considering job, wages, and social security
contribution.

5.4 Target Market

The target customers are the different organizations that deals with beautifying
agents, retail shops, stores everywhere in the country and foreign countries, and
the different customers who will purchase directly from the company and from
mobile merchants like the young kids, men and generally ladies.

16
 Megaloprepis Cosmetic Logistic

5.5 Benefits to the society

Megaloprepis cosmetic logistic will support many job positions including direct
and indirect economic activity. Workers will be employed directly in the manufacture
of cosmetic products and the other workers will be employed indirectly in the
cosmetics logistics supply chain.

With regards to legal responsibilities, the following taxes will be applied to the
business: employee’s income tax, municipal tax, withholding tax, percentage tax, value
added tax and other licenses that is needed for trading in which the economy will get
benefits for it.

5.5 SWOT Analysis

Cosmetics business is one of the most developing business in the country with
various enterprises unisex magnificence beautifying agents with numerous
branches and other independent ventures that have joined the industry. Despite of
the increasing number of cosmetics businesses in the industry, customers request
is not completely met because of poor delivery of products to the customers.
Fovero cosmetics are targeting to fill this gap. The business will show an
extraordinary standing because of the expanded differences in customers
necessities like skin tones, hair cosmetics and customer general excellence of
beauty.

Strengths Weaknesses Opportunities Threats

 High quality and  Few laborers in  Financial lift  Constant
uncommon organization from banks for changes in
bundling material that delays administration customers
which are natural production development request
well-disposed that  Inadequate and office which sway
we offer involvement improvement on our degree
 Operating from the with the  The competitors of fulfillment
cleanest market of Megaloprepis to our
surroundings/ because of few cosmetics customers
environment months of logistic do not and changing
 Availability of start- operation than have the idea financial
up capital the competitors on how to conditions
 Strategic area in the  Do not have productively  The
easy views complex sufficient deal with their customers
which has a record keeping store supply are used to
sufficiently high system chain and purchasing
space  Low capital distribution from
 High degree of contributions channels effectively
customer’s care to fire up with  Megaloprepis settled
 We will wok setting up the cosmetics cosmetics
consistently 24 plant and logistic is shop who
hours to meet our extending the developing a undoubtedly

17
 Megaloprepis Cosmetic Logistic

customers’ needs business tasks new beauty care embrace to

 Offering free to different products vendor for us
preparing and districts that will set up
consultancy  Limited nature to increase the
administrations to inputs like market base
our customers fruits and  The competitors
 Ability to make vegetables used of Megaloprepis
cosmetic products for making Cosmetics
from accessible other products logistic do not
organic products  Low degrees of think about the
information arising
about cosmetic thoughts in the
business worldwide
procedures to
suit customer’s
interest

5.6 Conclusion and Recommendation

Conclusion and recommendation will summarize the result of this business

plan and explain the different managerial implications. Limitations and
recommendations for the future position of the business is also presented.

Megaloprepis cosmetic logistic includes wide range of handling products

dedicated to health, beauty and well, being. Ranging from hair care, skin care oral and
body care to perfumery and other cosmetics. The use of cosmetic products brings
important functional and emotional benefits. Megaloprepis cosmetic logistic will serve
as the largest logistic for the market of cosmetic products in the world. Cosmetic is an
extremely quick paced industry where item development is the way to progress. In the
present limit serious scene, organizations request constant advancement and
maintainable center competency to get by in the market. To dominate from the
competitors, satisfying purchasers' interest is the principal key to win piece of the pie
or infiltrating into new market.
Marketers have assumed green item has arisen to turn into the bearing for
future item advancement and it is the noting call from public to save the climate
because of broad contamination and waste creation from partnerships. Nonetheless,
as the writing survey has appeared, most buyers buy green items are really founded
on close to home requirements and way of life, instead of getting them because of
environmental cause.
Therefore, rather than focusing on how to devise effective marketing strategy, it
is vital for marketers to realize the underlying reason of why consumers should choose

18
 Megaloprepis Cosmetic Logistic

green products rather than conventional products. As such, the present research
intends to contribute knowledge and insights into this area by studying the
determinants of purchase intention for green personal care and cosmetic products

19