Business Plan for baby Perfume
(Baby Lord Company, UK)
Executive Summary
The market for baby perfume in United Kingdom is virtually new, hence less competition and the ample room to grow is available. The profit maximization ratio for companies in this market is very encouraging and promising. Hence, Baby Lord Company will use the best of strategic marketing (product differentiation, TQM) in gaining greater market share and bringing the desired dividends to our partners, shareholders and financiers. We look to capture 40 per cent of the market share in our 4 years strategic plan.
Investment Strategy
Baby Lord Company, UK will operate to large extent niche marketing where its baby fragrances products will be manufactured having in mind theproduct differentiation strategy. This will be practice accompanied with total quality management, in order to bring values to our customers/buyers and gain large market share. Niche marketing concept applies where a producer tries to differentiate their products from those of rivals in the industry. Niche marketing cuts across every industries and it is operational when an organization implements a product differentiation strategy, to curve a niche through unique product quality, branding, taste, size and shapes.
In order to operate effectively as a major dealer in baby perfume in the UK market, the following considerations would be adhered to in other to attain our corporate objectives and long term goals:
- The framework for the proposed Baby Lord Company would have a far-reaching shared vision that allows and facilitates prudent financial implementations of projects that will ensure effective maximization of opportunities for the benefits of our shareholders and financers. In this regard, our cherished investors and financiers would be adequately carried along in every aspect of our deals and there will be accountability, clarity and articulation of purposes.
- Through effective communication, all stakeholders would be made to key into this business and support it to succeed. To achieve this, constant communication of the company’s auctioning deals and business transactions would be communicated at general meetings that would take place once quarterly. This will enrich our medium for disseminating information and maintaining cooperation required to keep on the vision to operate and become one of the top baby fragrance producers in UK.
- Our inclusive model of management for Baby Lord Companywill promote and sustain an organizational culture and structure that help every of our partners and financiers to realize their aspirations and actualize their dreams of owning and partnering with a top leading art dealer with a reputation to acquire within the shortest time large share of the global art collectibles market. To attain this, the organization will have solid principles and adhere to the best practices in the art industry. We shall set standards which other rivals will find too high to emulate. Every staff and partners of Baby Lord Companywill have a sense of belonging and their aspiration to advance their careers will exist within a very supportive business environment.
- Our choice of operating inclusive organization setup won’t be a basis to compromise high productivity and discipline. Hence, unnecessary risk and attitudes that hinder successful operation of our art business will not be tolerated.
- Baby Lord Companywill put in place machinery to grow and increase on our existing fund and capital. In this regards, effort to mobilize and acquire resources where seen necessary will be invested upon.
- Our inclusive model will ensure fairness to all shareholders, investors, partners and staff; there will be zero tolerance for bias, inequality and unfair treatment to any member of our team. Hence, high ethical values and respect for every individual will be instilled in our organization. Integrity and high moral standard will be the watchword and must be encouraged for the growth of both the organization and all aforementioned stakeholders.
Targeted Market
The UK market for baby perfume is still virtually young and there is a wide grown to grow due to less competition. The only known player in this market in the country is Johnson’s Baby. This company has one product in this segment of its chains of products for babies.
The Johnson’s baby cologne comes in a blue-labelled lotion bottle container, and is formulated, alcohol-free for delicate skins of babies.
Outside the UK, France is known to have a more competitive market for baby colognes with several organizations as rivals in the industry.
Products
Baby cologne, with quality and comes in different fragrance that will make babies; 0 to 5 years to be attracted and appealingto their parents and any visitor that comes nearby.Our products are listed below as:
- EAU DE LAVENDER is blue and are for boys
- EAU DE VANILLA is yellow for mixed
- EAU DE ROSE is rose and for girls.
Marketing Plan
An experienced marketing manager will take charge of all the tasks of introducing and advertising all of Baby Lord Company’sproducts. Part of his/her function is to continuously increase the competitive advantage of our companyin the UK’s market for baby perfume and to conduct researches for product innovation that will make us gain high market share in our immediate market and look forward to gaining more prominence at the international scene.
Action plan in Gaining competitive Advantage in the Market
- Stocking top quality baby perfume products.
- Organizing shows to demonstrate our products to potential customers, hence, places like post natal clinic and crèches were little babies and their parents are known to congregate will be our target points.
- Exhibitions in major international and local trade fairs
- A forceful and effective advertisement will be carried out regularly; using the print, broadcast and electronic media to create awareness for our products.
Baby Lord Companywill use multifaceted marketing tools in achieving our dreams of gaining large market share as spelt out previously.
Marketing strategic Plan
Baby Lord Companywill want to dominant the market and gain large market share. The strategic plan of using well planned product advertisements, exhibitions and shows to make our presence known will enable us to gain some share of the market in few year of our debut for marketing and operations. We anticipate a 5-10 per cent market share. Our target for the 2 years will be gaining 20 per cent of the United Kingdom’s baby perfume market and 40 per cent in four years.
- SWOT Analysis
Channels of making our products
Baby Lord Company will be directly selling our productsline to retail companies, resellers and small retail shop.
Operational Plan
Product Transitions
Structure and Capitalization
While Baby Lord Company is still in process of organizing its structure, the operational expenses will be financed by the fund investment from influential individuals, partners and corporate organizations. In setting up the business, an initial capital outlay will be put up by the owner.
Financial Plan
The estimated initial capital outlay for Baby Lord Companywill be 30000£.
Below is the summarized breakdown of the estimated cost.
Marketing 10000£.
Manufacturing of our product 2000£.
Others Utilities 5000£.
Other expenses 10000£.
Before Baby Lord Companycan fully operate at its targets in the market, it will take a month to prepare the business and train competent staff to lead and manage the operations. It is expected that the first month of operations will only result to a net cash outflows since there in no expected income to be realized. That month expenses will be financed by the fund generated from partners and owners start-up investment.
The total Initial capital outlay of Baby Lord Company will be 30000£. On the succeeding months of operations, the company expects to earn high returns.
Ratio Analysis
- Payback Period
Payback Period measures the span of time to which the initial capital outlay in setting up the business operations can be fully recovered.
The capital outlay of 30000£is expected to be earned within the 2 years of operations.
- Profitability
There is a very high profitability for Baby Lord Company’s baby perfumes because the demand is expected to increase from time to time and it covers a wide market with innovative marketing strategy.
On The First Year, the expected Return on Investment is only 5.43% of the initial capital outlay, this is because a lot a market experimentations are expected to occur and the achievement of the overall target is set at a low level.
On the second year- the estimated Return of Investment is 10.41 times the initial investment. While on the third year is 16.78 times than the initial capital outlay.
Return on Sales measures the percentage of net income earned over the Total Sales. This ratio will illustrate relationship of the income earned, the cost in providing the products or services.
Expected return on investment for the sale of this product is very high.
Since Baby Lord Company will be dealing with retailers, it is estimated that 20 to 50% rebate would be given to them for them to have their margin profit. For instance if our baby perfume goes for 4£ per bottle, it is estimated that our retailers will receive the products for 2£ and sell to the end users for 4£.
Having a turnover of 50,000 products in our 1st year of operation, it means we will have sales amount of 100,000£. Lessing about 30,000 £ from this sales, we will be making nothing less than 70,000£ in our first year and there is ample of room to double or triple this amount in subsequent years.
