Anti Aging
Transcript of Anti Aging
Introductory Page
Name of product:
Name of our product is “Anti Altern”
Altern is a Germen word meaning Aging
Nature of Business:
Our business is based on new innovative product against skin problems especially in women.
Our product is new in nature. Because now a days only creams and face washes exist in Pakistan
for skin protection.
Our company is independent in the sense that we make all of our own products but there are
some items that we must obtain from other industries. This would include some ingredients,
product labels, containers.
Statement of Confidentiality
This document contains proprietary and confidential information. All data submitted to Miss
Hifza is provided in reliance upon its consent not to use or disclose any information contained
herein except in the context of its business dealings with Anti Altern. The recipient of his
document agrees to inform its present and future employees and partners who view or have
access to the document's content of its confidential nature.
Product Review:
Our product is an anti-aging soap. Its main feature is that it removes wrinkles caused by the
passing age on the skin. It is a convenience product i.e. an F.M.C.G. Initially we are launching
our product in only one dimension of 125 g with a price of Rs. 110 each.
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Executive summary
We are launching a new soap in the
market and our brand name is “JOVEN
Anti-aging soap”. It is an anti-aging soap
whose main feature is that it removes
wrinkles on skin; it also cleanses the skin
and makes its colour bright. We are
mainly targeting Ladies above 35 years of
age of higher middle class but our product
is for all age of women. We will position
our brand from our positioning statement “Be Young Again”. We will enter the market with
heavy advertisement through hoardings, TVC’s, etc. We are advertising through channel
CITY42 because we are lunching our new product initially in Lahore and this channel fulfils the
needs of our marketing strategy to launch our product. Also we are using selective distribution
with conventional distribution channel. The primary objective is to attain 5% of market share and
to achieve more than 20,000 tons ofsale in first six months. Price of our soap is Rs. 110 per unit.
As there is no major competitor of anti-aging soap but some anti-aging creams are our
competitors, so our objective is to capture the market by satisfying our customers.
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Mission Statement
“Our mission is to earn our customer’s loyalty by providing them
best Quality product and delivering maximum satisfaction by
making them Look young again”
Vision Statement
“To become the largest Soap manufacturer of the country,
and to have the largest share in soap market by delivering
maximum satisfaction to the customers”
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Industry Analysis
Future outlook and Trends:
The soap market in Pakistan increased during last few years growing at an average annual rate of
2.2%. The leading company in the market in 2008 was Unilever. The second-largest player was
Sufi Soaps Detergents with Kohinoor and Tibet Soaps in third place.
There are approximately 500 units in organized and un-organized sectors. Being an employment-
oriented industry it provides jobs to over 100,000 workers all over the country. The total
production capacity of this industry is 250,000-300,000 tons of soap annually.
Its contribution to the national exchequer in the forms of various taxes
is running in billions of rupees. There is no major producer of anti-aging soap in the industry.
However various anti-aging creams are available that can be substituted for our soap that
includes cream from Ponds and the vitamin company. The bulk of the market share of cosmetics
in Pakistan is held by three big companies, Kohinoor Chemicals, International Laboratories
(Ponds) and Revlon. They control about 60to 70 % share of the total market.
Taxesare a big issue in the soap industry. Especially the increased custom duty on the import of
raw material is alarming. Alsothe electricity load shading is a major problem.
Fashion is also a major driver in the market. Especially women are becoming more and more
conscious about their skin. Wrinkles are a major problem of middle aged women that we are
offering to solve. Technology is rapidly changing. Most of the units in the organized sector
having modern technology and foreign capital, accounting for 67% of the total capacity are
concentrated in Karachi
Analysis of Competitors:
There are no competitors of anti-aging soap in the Pakistani market. However there are various
substitute anti-aging creams available in the market.
Our key substitute products are:
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Competitor Features
Ponds age Miracle It rekindles youthful beauty through and promises visible results in 7
days. It is specially formulated for anti-aging conscious people.
Ponds age defying
cream
Age defying towelettes fight visible signs of aging while you clean
Collagen cream It reduces wrinkles and gives young look. It is made of natural herbs and
has no side effects
Olay age defying anti
wrinkle SPF 15 cream
Reduces the appearance of fine lines and wrinkles in just 5 days.
Anti-wrinkle
replenishing night
cream
Awaken to skin that looks younger, smoother and overall firmer.
Age defying daily
renewal cream
Renews moisture to significantly reduce fine lines and wrinkles
Garnier Ultra Lift The Garnier Ultra Lift range has been specially designed for skin that is
showing signs of ageing, suffers loss of skin elasticity and firmness.
Market Segmentation
We have segmented the market on two bases:
Demographic basis
That is on the basis:
· Age - Above 35
· Income Level – 30,000 and above
· Gender - Females
· Social status – High middle class
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Geographical basis
That include:
Lahore
Model Town
Wapda Town
Johar Town
Wahdat Road
Iqbal Town
Gulberg
Main Boulevard
Garden Town
M.M. Alam Road
Defense
Fortress Stadium
Industry and Market Forecasts:
Using research we are identifying the specific feature and benefits that are target market segment
values. Feedback from market tests surveys and focused groups will help us to develop the anti
altern soap. We are also measuring and analysing customer, attitude towards competing brands
and products. Brand awareness research will help us to determine the effectiveness and efficacy
of our messages and media. Finally we will use customer satisfaction studies to gauge market
reaction.
There is no major producer of anti-aging soap in the industry. However various anti-aging
creams are available that can be substituted for our soap that includes cream from Ponds and the
vitamin.
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Description of venture
Product:
Our product is an anti-aging soap. Its main feature is that it removes wrinkles caused
by the passing age on the skin. It is a convenience product i.e. an F .M.C.G.
Initially we are launching our product in only one dimension of 125 g with a price of Rs.
110 each.
We are introducing a convenience product that is a high quality anti-aging soap in the
market with the name of “anti agining soap”. We are using “licensed branding”. Although
there are various substitute in the form of cream in the market but there is no major
competitor of our product.
Ingredients:
Special Ingredient:- DMAE
Sodium Tallowate, Sodium cocoate, Tetra sodium EDT A, Mineral oil, BHT, Sodium chloride,
Pearl luster pigment, Water, Fragrance, Vitamin A (Retinol, Tretinoin and Retinyl Palmitate)
and Vitamin E (Tocopherol).
The Machines used for the purpose are:
Soap Boiling Tanks Soap Transfer Pumps
Soap Jacketed Crutcher Soap Filter Pumps
Soap Filter Strainer Soap Feed Tank
Soap Feed Pump Heat Exchangers Vacuum Spray Chamber
Silicate Dosing System,
Complete with Pumps/Tanks Duplex Vacuum Plodder Preliminary/
Secondary Recuperator Booster, Condenser & Moisture Separator &
Vacuum Pump Hot Well Chilling Plant/Chilled Water / Hot Water
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Tank Chilled Water
Hot Water Pump Roller Printer Bar Cutter Piping Insulation
Machinery:
We will buy our machinery from Frigmaires Company. It is a forging company, located in india.
Ingredients:
We will import our ingredients of anti aging soap from a company located in San Francisco in
U.S.A. named “TINSON INDUSTRIAL CHEMICAL CORPORATION”
Building:
A simple factory type building incorporating a small office will suffice for an initial startup, the
main consideration being basic security and environmental protection. The building design
should allow for smooth transitioning of raw materials into completed products ready for
movement to curing areas and warehouse for storing soaps away from environmental
contamination effects.
Electrical supply:
The building should be wired appropriately for lighting, office use and AC. Certified electrical
contractors will be searched.
Other facilities:
Air conditioners
Proper furniture
Computer system
Rest areas
Washrooms
Location:
Its physical plant i.e. factory will be settled down in Lahore, thokar nayaz baig.
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Launching Place: -
Lahore
Process:
Soaps and detergents are widely used in our society. Soaps are the product of the reaction
between a fat and sodium hydroxide:
Fat + 3NaOH →glycerine + 3 soap
Soap is produced industrially in four basic steps. This article lists different steps because in
the industrial processes described each of these is done over several process steps, but in
principle it could be done in the three steps outlined here.
Step 1 - Saponification
A mixture of tallow (animal fat) and coconutoil is mixed with sodium hydroxide and heated.
The soap produced is the salt of a long chain carboxylic acid.
Step 2 - Glycerin removal
Glycerin is more valuable than soap, so most of it is removed. Some is left in the soap to help
make it soft and smooth. Soap is not very soluble in salt water, whereas glycerin is, so salt is
added to the wet soap causing it to separate out into soap and glycerin in salt water.
Step 3 - Soap purification
Any remaining sodium hydroxide is neutralized with a weak acid such as citric acid and two
thirds of the remaining water removed.
Step 4 - Finishing
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Additives such as preservatives, colour and perfume are added and mixed in with the soap
and it is shaped into bars for sale.
Anti aging ingredients:
Retinol. Retinol is a vitamin A compound, the first antioxidant to be widely used in
nonprescription wrinkle creams. Antioxidants are substances that neutralize free radicals
— unstable oxygen molecules that break down skin cells and cause wrinkles. Retinol is
less potent than the vitamin A derivative tretinoin, a topical treatment approved by the
Food and Drug Administration (FDA) for treating wrinkles. Tretinoin is available only by
prescription. Avoid vitamin A derivatives if you are pregnant or may become pregnant,
because they may increase the risk of birth defects.
Hydroxy acids. Alpha hydroxy acids, beta hydroxy acids and poly hydroxy acids are
synthetic versions of acids derived from sugar-containing fruits. These acids are
exfoliants — substances that remove the upper layer of old, dead skin and stimulate the
growth of smooth, evenly pigmented new skin. Because hydroxy acids increase your
susceptibility to sun damage, always wear sunscreen during use and for at least one week
afterward.
Coenzyme Q10. Coenzyme Q10 is a nutrient that helps regulate energy production in
cells. Some studies have shown reduction in fine wrinkles around the eyes with no side
effects. Other studies show that application before sun exposure protects against sun
damage.
Copper peptides. Copper is a trace element found in every cell. In products applied to
the skin, it's combined with small protein fragments called peptides. Copper peptides
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enhance wound healing. They also stimulate production of collagen and may enhance the
action of antioxidants.
Kinetin. As a plant growth factor, kinetin may improve the appearance of wrinkles and
uneven pigmentation with minimal irritation. It's unclear how it works, but it may help
reduce wrinkles by helping skin retain moisture and by stimulating the production of
collagen. It may also be a potent antioxidant.
Tea extracts. Green, black and oolong tea contain compounds with antioxidant and anti-
inflammatory properties. Green tea extracts are the ones most commonly found in
wrinkle creams.
These ingredients will be used in our anti aging soap, and these will be added in soap
purification stage.
Size of business plan
It is never easy as to decide about the size of an upcoming unit. One has to see the relation of the
size of a particular business with efficiency as well as see whether that particular size fits well in
that particular social structure or not. All these questions need to be studied before deciding
about the size of a business unit. The size of the business unit refers to the scale of its operations.
Whether the scale of production is small, medium or large, it depends mostly upon the
availability of finances, managerial ability, marketing possibilities and efficiency expectancy. A
concern may be started at the moderate scale in the beginning and it may be expanded later on.
On the other hand, a concern may be started on a large scale from the very beginning. The size of
the firm is associated with economic efficiency. A particular size of the unit marketing is more
efficient than other sizes. If all the firms in the industry attain that size, the whole industry attains
a given level of efficiency.
So, we can say that whatever the form of a particular business entity the profit motive along with
the viability of the size and the considerations of the social structure are instrumental in
determining the size and dimensions of business.
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In starting we are mainly focusing on Lahore one of the major cities of Pakistan.
Size of our business is not much large; we will expand our business by passage of time through
increased sales and more profits.
Labor and personnel:
Manager (Owner/Manager).
boiler attendants to direct operate and load.
laborers’ for stirring and fetching functions.
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Marketing Plan
Product:
We are introducing a convenience product that is a high quality anti-aging soap in the market
with the name of “Anti Altern ”. We are using “licensed branding”. Although there are various
substitute in the form of cream in the market but there is no major competitor of our product.
Features:
Our product consists of the following features:
The core benefit of our product is that it removes wrinkles of skin.
Additional benefits are that it makes the complexion fair.
It cleanses the skin.
Ideal for all skin types.
Heals skin
Tightens the skin pores
Soften the skin
Removes black heads
The brand and logo will be displayed on the product and its packaging is packed in attractive
wrapper with different colors and designs.
Pricing strategy:
Pricing is the most important factor in our marketing mix. Our pricing strategy will be such that
is fair to the customers, as our objective is to attain customer loyalty. Anti-altern is being
introduced at a price of Rs. 110 including all taxes. Initially we are using “Value based pricing
approach” for the evaluation of price.
These prices reflect a strategy of:
1. Market penetration pricing.
2. Delivering maximum satisfaction by giving affordable price
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Distribution Strategy:
At launching our product our channel strategy is to use
“Selective distribution” at different places and marketing through well known stores and outlets
within Lahore only, Including H.K.B, Al- Fateh, Makro, Al-Raheem store, Victoria, and Grace
Store. We will also give special trade discounts for retailer that place volume order. We are using
“Indirect marketing channel” for the distribution of our product which is a “Conventional
distribution” channel. Our marketing channel involves the following intermediaries:
The company will transport its goods to the retailer who will distribute them to customers. They
will also gather research information for us.
Promotion:
Marketing communication is an integral part of product strategy. We are entering the market
with high advertisement of our product in order to create a strong image of this soap in the mind
of our target customers. We will set our total promotional budget on the “Objective and Task
method”. Our objective is to attract the customers towards our product and we will use excessive
advertising to achieve this goal.
We will use different advertising tools to advertise our product, which include:
T.V.C’s
Teasers
Hoardings
Magazines
Newspapers
We are using “Pull promotion mix strategy” to attract our customers as we are new in the
market.
We will use City042 as our channel, as its coverage is in Lahore and we are initially
launching our product in Lahore. Our commercial will be played after every 30 minutes
on the channel.
In newspapers we are targeting Jang in Urdu news papers and “Dawn” and “The News”
in English news papers.
We are also advertising on hoardings at various main spots in Lahore.
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Organizational Plan
Management team:
Management team describes our management team and staff and how our business ownership is
structured. People reading our business plan will be looking to see not only who's on our
management team but how the skills of our management and staff will contribute to the bottom
line.
Our Management structure is divided into top, middle and lower management.
Top management directing goals, new idea of innovative product that is Anti Altern. Top
management will direct middle management what strategies to adopt to influence customer and
increase sales.
Middle management with their conceptual, diagnostic concepts will implement strategies to
persuade more and more consumers. They will design and implement strategies for our soap and
will guide lower management to produce profitable results that is profits.
Board of Directors:
Briefly describes who is on our Board and what role they play within our company. Briefly list
the names, backgrounds, and contributions that will be made by each board member.
The Ownership Structure :
Section describes the legal structure of our business. It may be a single sentence if our business is
a sole proprietorship. If our business is a partnership or a corporation, it may be longer.
But we as an entrepreneur are focusingon partnership.
An arrangement will be made where parties agree to cooperate to advance their mutual interests.
We as a Governmentally recognized partnerships enjoy special benefits in tax policies.
Overarching goals, levels of give-and-take, areas of responsibility, lines of authority and
succession, will be evaluated and distributed, and often a variety of other factors must all be
negotiated.
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Assessment of Risk
There are various issues that are to be tackled to launch our new product, these issues include:
Economic condition:
Current economic conditions of our country are not satisfactory. We are facing economic crisis
due to our weak fiscal policy. This situation will effect our attainment.
Competitive situation:
Competitive situation shows how much our competitors are strong and we also analyze their 4P’s
because without it no product can be succeeded in market. The marketing strategies of
competitor are a big issue.
High bank rates :
Interest rates of our banking sector are very high which effects the company’s financial matters
and company is compel to borrow high rates loans.
High Duties /taxes :
Our Government imposes high custom duty on raw materials. So company purchase high cost
imported raw material to provide high quality products to the customers
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Financial Plan
Based on market research, we expect the business to begin growing at 45% per month for the first 12
months, then at a yearly rate of 90% for the next two years. In addition, we will almost immediately have
a positive cash flow, allowing us the flexibility to cover any unforeseen expenses.
Key Financial Indicators
Sales - Our sales are projected to grow at a consistent rate of 90% yearly, and we believe this accurately
reflects the realistic growth our product would be capable of attaining if we can properly utilize existing
channels of distribution and gain social acceptance.
Gross Margin - As we grow, become more efficient, and gain economies of scale we begin to see a slight
growth in our margins.
Operating Expenses - In 2012 and 2013 we see an increase in the number of operating expenses that we
will incur. We begin incurring larger costs involving advertising, promotion, marketing, and payroll
expenses.
Inventory Turnover - Our preliminary forecast suggests that for us to be flexible in meeting customer
demand we will need to maintain a minimal inventory stock at a rented warehouse. We estimate that, on
average, we will keep two weeks’ worth of inventory on hand.
Collection days - We will collect our accounts receivable on an average of 45 days. In 2007 and 2008 we
will have the cash to cover unexpected costs or expenses so that we may decide to allow a longer
collection period.
Sales Forecast
If we are able to distribute our product through existing distributors, it will provide us a
significant financial advantage, as well as the ability to meet the quick increase in demand for our
product.
Beginning with an initial monthly sale of Rs 1,250 for our day care soap product, we predict
sales will increase by 45% per month for the first year. We then calculate a growth rate of 90%
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yearly. Cost of Goods Sold is approximately 47% of sales. However, CGS grows at a yearly rate
of 88%, which is less than the sales growth rate in order to represent the economies of scale that
we hope to achieve as our operations grow.
Table: Sales Forecast
Sales Forecast Rs.
Year 1 Year 2 Year 3
Soap Sales 237,168 450,620 856,177
Chart: Sales Monthly
CHILDassure soap (day care)
HEALTHassure/FOODassure
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0 M
onth
11
Mon
th 1
2Sales Monthly
Chart: Sales by Year
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CHILDassure soap (day care)
HEALTHassure/FOODassure
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Year 1 Year 2 Year 3
Sales by Year
Projected Profit and Loss Statement
Our profit and loss projections reflect our expectation that monthly fixed costs will remain constant over
the course of the first year.
Cost of goods sold increases at a decreasing rate, as economies of scale make soap production cheaper per
unit as production volume increases. Based on these projections the company will become profitable in
October, 2015.
Advertising expenses will remain steady during our first year of operations. However, Advertising and
Promotion will grow in years 2013 and 2014 to reflect the purchase of print ads, PR brochures, and
additional promotional content.
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0
3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000
27,000
(3,000)
Month 1 Month 2
Month 3 Month 4
Month 5 Month 6
Month 7 Month 8
Month 9 Month 10
Month 11 Month 12
Profit Monthly
0
30,000
60,000
90,000
120,000
150,000
180,000
210,000
Year 1
Year 2
Year 3
Profit Yearly
Chart: Profit Monthly
Chart: Profit Yearly
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0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Month 1 Month 2
Month 3 Month 4
Month 5 Month 6
Month 7 Month 8
Month 9 Month 10
Month 11 Month 12
Gross Margin Monthly
0
100,000
200,000
300,000
400,000
500,000
Year 1
Year 2
Year 3
Gross Margin Yearly
Chart: Gross Profit Margin Monthly
Chart: Gross Profit Margin Yearly
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Pro Forma Income Statement
Cost of our product is Rs 48/- after including the taxes and profits our customers will be able to buy our
product just in Rs 110/-
This price is very affordable to the market of anti aging conscious people. This price is lower than our
competitors. Our Company is providing a Quality anti aging soap in a reasonable price.
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Pro Forma Profit and Loss Rs. Year 1 Year 2 Year 3
Sales 237,168 450,620 856,177 Cost of Sales 94,867 178,351 321,031 Other 0 0 0 Total Cost of Sales 94,867 178,351 321,031
Gross Margin 142,301 272,269 535,146 Gross Margin % 60.00% 60.42% 62.50%
ExpensesPayroll 57,600 144,000 216,000 Payroll Taxes 0 0 0 Depreciation 0 0 0 Rent 8,400 8,400 8,400 Distribution 1,200 1,200 1,500 Packaging 6,000 6,000 6,000 Telecommunications 1,200 2,500 3,500 Transportation 1,800 2,500 4,000 Advertisement 3,600 4,000 4,500 Other General and Administrative Expenses
1,200 1,200 1,200
Total Operating Expenses 81,000 169,800 245,100
Profit Before Interest and Taxes 61,301 102,469 290,046 EBIT 61,301 102,469 290,046 Interest Expense 0 0 2,500 Taxes Incurred 18,390 30,741 86,264
Net Profit 42,911 71,728 201,282 Net Profit/Sales 18.09% 15.92% 23.51%
Pro Forma Balance Sheet
Pro Forma Balance Sheet Year 1 Year 2 Year 3
Assets
Current AssetsCash 29,455 31,775 115,239 Accounts Receivable 98,432 187,021 355,340 Inventory 119,146 34,927 60,193 Other Current Assets 0 0 0 Total Current Assets 247,032 253,723 530,772
Long-term Assets 0 0 0Accumulated Depreciation 0 0 0 Total Long-term Assets 0 0 0 Total Assets 247,032 253,723 530,772
Liabilities and Capital Year 1 Year 2 Year 3
Current LiabilitiesAccounts Payable 77,422 12,384 38,150 Current Borrowing 0 0 50,000 Other Current Liabilities 0 0 0 Subtotal Current Liabilities 77,422 12,384 88,150
Long-term Liabilities 0 0 0 Total Liabilities 77,422 12,384 88,150
Paid-in Capital 250,000 250,000 250,000 Retained Earnings (123,300) (80,389) (8,661)Earnings 42,911 71,728 201,282 Total Capital 169,611 241,339 442,621 Total Liabilities and Capital 247,032 253,723 530,772
Net Worth 169,611 241,339 442,621
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Break Even Analysis
Breakeven point = Total fix cost
Price/unit – Variable cost/unit
Q = 100000/(110-20)
Q = 1667 units
The company should sell 1667 units to achieve breakeven point. On this point there is no profit and no
loss. If the units are sold from above this quantity then the company will generate the profits and if the
numbers of units sold are less than from this quantity then the company will face losses.
Sources of Funds Generation
For every prospective business it is extremely important to seek different sources of appropriate funding.
When an entrepreneur is able to successfully raise the desired amount of capital, the new business will be
able to thrive. It may take a considerable amount of time to break-even and earn revenue; therefore,
having this type of financial security is beneficial for the entrepreneur and the viability of the new
business. A new enterprise needs capital to finance its everyday business expenses. This can include
property rent, employee salaries, marketing expenses, inventory, day-to-day operations, and maintenance.
To initiate our business we will generate our funds from the following sourcs:
Personal funding
Loan from relative and friend
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Conclusion
Anti Altern is an anti-aging soap whose main feature is that it removes wrinkles on skin; it also
cleanses the skin and makes its colour bright. We are mainly targeting Ladies above 35 years of
age of higher middle class but our product is for all age of women. We will position our brand
from our positioning statement “Be Young Again”.
There is no major producer of anti-aging soap in the industry. However various anti aging
creams are available that can be substituted for our soap that includes cream from Ponds and the
vitamin company. The bulk of the market share of cosmetics in Pakistan is held by three big
companies, Kohinoor Chemicals, International Laboratories (Ponds) and Revlon. They control
about 60to 70 % share of the total market.
Based on detailed financial projections, our anti aging soap will require Rs 250,000 in start-up
capital, but will generate positive cash flow. By the end of Year 3 the company will
be generating 850,000 in sales with sizeable net profit. Our innovative product offers investors a
company with substantial growth potential, cushioned by revenue generating stability.
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References
www.google.com
www.pakistaneconomist.com
www.pond’s.com
www.olay.com
www.garnier.com
http://www.go4funding.com/Articles/Available-Funding-Options.aspx
http://office.microsoft.com/en-us/templates/pro-forma-income-statement-
TC101877359.aspx
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