Crystal Care Limited Business Plan
Executive Summary
Crystal Care Limited is a company formed with the aim of providing high quality skincare products to men. Crystal Care Limited will seek to overcome various challenges, for instance, the market standing; as a new product in the market, the skin care products face a major challenge in winning customer attraction. Competition from other developed firms is a problem as the firms have large economies of scale, hence can afford huge promotions for their products. Crystal Care Company will solve these problems by using extensive promotion on our websites and billboards to create awareness The company will exist to take advantage of the men’s skincare products, as most skincare products are designed to suit women’s needs. Crystal Care Limited will have a competitive advantage in product differentiation; the quality of the product will earn customers’ loyalty, and the branding will be designed to attract new clients. The prices will be slightly lower than the competitors’ skin care products, which will enhance customer attraction.
Crystal Care Limited aims to expand its outlets once the first one is established, with five more expected to be launched countrywide at a cost of $142,400. Our target market will be the men in the society who appreciate good outlook. Working class men will play a key role in the market, as they desire to look presentable; it is crucial to note that professional men make up to 59% of all workers. The company seeks to reach out to the remaining 41% by ensuring that the products are affordable and user friendly; the products will be affordable for all men, including the unemployed in the society.
Mission Statement
The mission of Crystal Care Limited is to become the premier provider of oily skin solutions to men. Crystal Care limited is dedicated to the provision of a solution to men whose skins produce a lot of oil due to active oil glands. The products are aimed at regulating and controlling the production of sebum.
Vision
Crystal Care Limited’s vision is to be the countrywide leader in the provision of high quality skincare products.
Key Values
The company’s key values are customer satisfaction, honesty, and reliability in its operations. The firm will focus on promoting likeability of skin care products among potential customers to increase the market size. This is because customers will buy large quantities of the products if they enjoy using them. Customer satisfaction will be achieved by offering affordable prices and substantial quantity of products. Honesty is a key virtue in any organization, and Crystal Care Limited aims to create a transparent relationship with both the internal and external environment such as workers and clients. Constant delivery of high quality products in the market will make the firm reliable in identifying new market opportunities, and meeting customer needs effectively.
Plan of Operations
The operational plan comprises of several elements that we intend to involve in the activities to achieve the firm’s objectives. Proper assessment of vital components such as sales channels, value proposition, key resources, cost structure, revenue streams, key partners, and key operational activities will enable Crystal Care Limited to widen its market size. Capital raised from promotions of the products will act as the revenue stream for the company; this is through our sales channels, for instance, we intend to use our company website to promote our products. A successful business should target customer segments that have working class people that facilitate sale of the product (Whelan 2012).
Crystal Care Limited has developed a Business Model Canvas to facilitate the operation of its activities. The business canvas model is an action plan that we intend to use once we become operational. A business model canvas enables a business to deal with any emerging challenges in the course of its operations (Osterwalder 2010). The Business Model Canvas consists of solutions on how Crystal Care Limited will manage its activities to reach out to clients. It consists of solutions on the emerging challenges in the skin care products industry.
Crystal Care Limited’s main stakeholder will be the skincare manufacturer in charge of producing the products for the company. The government will play a key role in the business’s success as it will facilitate the inspection of the company’s products and certify that they are valid for sale in the market. We aim to create a healthy relationship with the products’ distributors, as they will enhance increased sales of the company’s products.
The company’s main agenda is to create a wide market for the skin care product. The competitive nature of the industry requires intensive promotion of the products to win customers. We hope to enhance a healthy relationship with our customers to promote immediate feedback that will enable us to improve the quality of the products. A support center will be established, where the customers’ queries will be answered. Offering discounts will win our clients’ loyalty, which is a vital element in the business’s success.
Crystal Care Limited’s initial source of revenue will be debt financing and owners’ capital. The other revenues will be raised from the realized profits and sale of shares once the business is operational. Legislation is essential for any business activity; we will register our company with the relevant authority, and obtain business license from the government legal service to enable us to run the business within our jurisdiction.
The company seeks to minimize costs and maximize profits to enable the expansion strategy. We will hire few employees to reduce on the salary structure, which is part of the company’s expenses. The employees will benefit from a discount of reduced price tag by 15% of the company’s products.
Crystal Care Limited will have a website, our main marketing channel, where promotion of the products will be based. The local media will also play a part in marketing our skin care products. Use of billboards will enhance creation of customer awareness of our existing skin care products.
The company’s key resources include the finance that will be used to fund our projects, and the marketing strategies, which enable us to attain customer attraction. Sale of our company’s shares will raise enough funds to extend our business to other parts of the country. The marketing facilities through stable distribution channels will enable the firm to expand its market.
Products and Services Description
Crystal Care Limited wishes to introduce to the market the Bioorganic Mask as the main product. The product has highly purified absorbent and mineral rich volcanic deposits, and it is set to be different from those already existing in the market. This is because it has excellent purifying and detoxifying properties for cleansing blocked pores while exposing well-refined pores that nourish the skin. The production quantity will increase as the commodity gains popularity in the market through its reputation and customer base. Crystal Care Limited will focus on the value proposition since the company aims at targeting men with self respect, high integrity, and crystal men. The packaging decisions are vital for any product that seeks to win customer’s loyalty.
Management Team
Crystal Care Limited’s management philosophy will be based on respect for every stakeholder. The firm’s success depends on the healthy and unique relationship among workers, clients, and shareholders. The management team will consist of the owners and an external assistant manager. We intend to employ a few workers once the company realizes some profit; the workers must exhibit useful professional skills and willingness to contribute towards achieving the company’s targets.
Industry Analysis
The skin care products’ industry is diversified in that there are several firms investing in this area. Customers are willing to try new products found in the market, regardless of the producing firms. People seek to find the most fulfilling skin care products that are affordable and are of high quality. The industry consists of popular and traditional firms such as Revlon and L’Oreal, which have existed for more than fifty years. Emerging issues in health and beauty concepts have led to the emergence of new companies that seek to produce high value products, which seek to satisfy the changing of customers. The dominant firms in the industry however lead as they have economies of scale in their operations. Some firms such as L’Oreal and Aveda have won customer loyalty due t their consistency. These firms can afford major advertising and marketing campaigns to promote their skin care products worldwide.
Competitor Analysis
Crystal Care Limited will face stiff competition from large firms such as Revlon, L’Oreal, Aveda, and Beiersdorf, which produces the Nivea products. The competing firms have wide chains of distribution and market stores worldwide. The prices for the skin care products differ with the quality of goods offered in the market. A competitive analysis will enable Crystal Care Limited to learn the competitor’s skills and the various barriers they set to inhibit new entrants in the market.
The leading competitors use the modern technology in the production process, which lowers the cost of production while improving the quality of skin care products (Hussey, & Jenster, 2000). Beiersdorf is a Germany based firm, but it has stores in most countries worldwide, which encourages distribution of products and services. The customers in different countries have different tastes and preferences, and this enables the firm to satisfy all customer needs simultaneously. Crystal Care Limited aims to expand geographically to get a closer access to potential customers; the proximity will reduce on distribution costs since we will have direct contact with our customers. Increased number of stores will enable the company to improve on sales, hence a rise in the profitability margin.
The company seeks to create an appropriate public image that surpasses the competitors’ strategies. A good public image enables a company to attract new customers and retain the existing clients’ loyalty. Crystal Care Limited will focus on implementing activities that enhance clients’ trust to create a competitive advantage over other firms.
The company’s main competitor, Beiersdorf, has employed the strategy of entering joint ventures with other companies that produce similar products. The company’s merge with other similar companies gives it an advantage on brand leadership in a competitive market enabling it to cover a wide market. Beiersdorf segments its consumer market according to variables such as age, sex, family size, income, and occupation. This segmentation increases the number of potential customers interested in the variety of the company’s skin care products. An example of segmentation on gender is the Nivea body lotion; the company produces the Nivea for men lotion, which is of higher price than the ordinary Nivea lotion.
Marketing Plan
The target market for the products at Crystal Care is working class men because they always look smart. The second market target involves various business groups such as the beauty products distributors. This is because the distributors have vast knowledge of the market, for instance the customer needs and the prevailing market prices. The wholesalers and retailers can ease the burden of transportation costs and the risks involved in delivering large quantities of products.
The company intends to invest in attractive brand packaging, which increases a product’s value and plays a vital role in attracting new customers. We intend to hire a professional to design the product’s label. This is essential because a label is the first thing a customer notices on a brand. Several skin care producers believe that a product’s label is as essential as the product itself; a company should design an inviting, appealing, and informative label that defines a company’s identity.
The Crystal Care products distinguish themselves from other company due to their uniqueness. Our main challenge so far is settling in the market, however, we have developed a strategy on how the company shall operate in the market (Das 2010). Crystal Care Limited will focus on profit maximization and customers’ satisfaction. In a business operation, it is vital to ensure that products are of high quality to meet the clients’ needs. Crystal Care will initiate services that seek to attract our clients through promotions and after sale services for any male product purchased in all countrywide stores.
Advertising, personal selling, sales promotion, and public relations are some of the tactics that we intend to employ in our marketing strategy. Advertising enables people to be aware of a firm’s name and products over a wide geographical range within a short period. We will use the personal selling strategy to get immediate feedback on how to improve the company’s products; this will facilitate customer satisfaction since we will tailor the products to suit their needs.
The public relations with the external environment will give us the basic tactics used by other successful firms. This will improve our decision-making process especially on cost reduction strategies. The public relation enables firms to relate and implement means useful in controlling suppliers’ bargaining power ( Cadogan, 2009). This will enable Crystal Care Limited reduce on costs of purchasing raw materials. We will choose cost effective strategy to enable the firm realize maximum profits, and provide high quality skincare products.
Crystal Care Limited will adopt the high price high quality mechanism in the pricing strategy. This is because customers believe that high quality products have high prices as a sign of value. This perception will enable the firm to take care of the costs due to the high profit margins. Our market target is the working class and sophisticated young men, who are willing to pay high prices for quality products that enhance their looks. Crystal Care Limited plans to adopt this pricing strategy due to the increased costs in the production process, the extensive promotions, and advertising of our skin care products. Low prices may attract substitutes in the market, which may pose a threat to the company’s success, hence the adoption of the high price high quality pricing strategy.
S.W.O.T analysis of Crystal Care Limited
Financial Analysis
Crystal Care Limited’s will have starting capital assets of $355,000, and the start up cost for one outlet is expected to be $142,400. Both equity investment and sale of the company’s share will generate the initial revenue the firm. Our ratios are well planned according on each individual’s share, and our growth strategies seem to be challenging, but realistic. The owners’ Capital will encourage every shareholder to perform well to achieve the company’s goals since our equity is invested in the business. We anticipate a relatively slow but stable economic growth due the global competition. The annual capital additional is expected to increase within a range of $2000 to $3,500 within the first five years. The company aims to conduct its activities in both wholesale and retail manner; the payback period of the owners’ capital will be short due to extensive market coverage in sales. Various expenses such as promotion costs in the first quarter may appear outside the accepted ranges, but they will be recovered once the firm starts realizing profits. The profit margin in the first year is expected to be $380,917, but will rise in the second year of operation to around $492,287. The initial low salary numbers and little staffing show the firm’s growth plan since there are no additional funds to employ more labor. The company will focus on extensive product promotion once it gets profits. We will allocate a budget for advertising to increase the customer awareness on our products.
References
Cadogan, J. W. (2009). Marketing strategy. London: SAGE.
Das, G. A. (2010). Ethics, business, and society: Managing responsibly. Thousand Oaks, Calif: Response Books.
Hussey, D. E., & Jenster, P. V. (2000). Competitor analysis: Turning intelligence into success. Chichester, West Sussex, England: Wiley.
Osterwalder, A., Pigneur, Y., & Clark, T. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Hoboken, NJ: Wiley.
Whelan, J., & Meaden, G. (2012). Business Architecture: A Practical Guide. Farnham: Ashgate Publishing Ltd.
