Business Plan for Organic Care · Web viewOct 01, 2019 · This business plan focuses on a...

Business Plan for Organic Care

Table of ContentsExecutive Summary.........................................................................................................................3

General Company Description........................................................................................................4

Company’s Overview..................................................................................................................4

Mission Statement........................................................................................................................4

Goals of the Company..................................................................................................................4

Objectives of the Company..........................................................................................................5

Business Philosophy....................................................................................................................5

Our customers..............................................................................................................................5

Description of Industry................................................................................................................6

Company’s Strengths...................................................................................................................7

Core Competencies......................................................................................................................7

Type of Ownership.......................................................................................................................7

Competitive Advantage and Disadvantage..................................................................................8

Pricing of Organic Care products.................................................................................................9

Market Research..........................................................................................................................9

UAE Market Information...........................................................................................................10

Economics..................................................................................................................................10

Barriers to Entry............................................................................................................................11

How to overcome these Barriers?..............................................................................................11

Products......................................................................................................................................12

Feature and Benefits...................................................................................................................13

Customers of Organic Care........................................................................................................13

Demographic Profile of Customers...............................................................................................14

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Families......................................................................................................................................14

Students......................................................................................................................................14

Teachers.....................................................................................................................................15

Children......................................................................................................................................15

Doctors.......................................................................................................................................15

Competition...................................................................................................................................16

Major Competitors of Organic Care (UAE)..............................................................................16

Competitive Analysis of Major Competitors.............................................................................17

Niche Strategy............................................................................................................................19

Promotion......................................................................................................................................19

Promotional Budget...................................................................................................................20

Pricing Strategy..........................................................................................................................20

Customer service and Credit Policies........................................................................................20

Proposed Location......................................................................................................................20

Distribution Channels................................................................................................................20

Sales Forecast................................................................................................................................21

Monthly Sales............................................................................................................................21

Annual Sales..............................................................................................................................22

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Executive Summary

This business plan focuses on a business named as Organic care (A brand) which is going to be

launched in UAE. This business will focus on organic products which include all the products

which will help people to protect their health and other protection related to their daily life

routines. This business will operate in UAE particularly in big cities like Dubai, Abu Dhabi and

Sharjah etc. Our products will be related to Organic care purposes. We will target different

people for our customer and they will purchase our product.

Our main customers will be Families, Children, Doctors and different other people. I will be the

only owner of this business because it will be a sole proprietorship and I will take all the

decisions by myself. I will make investment with my own funding. The future of this business is

very bright and will be growing in future as per past data. Demand for this business is very high

and people demand for products which can protect their health. We have some competitors

within the industry like Rashed Organic Company and other competitors.

The initial investment I will do is about Darhams 500,000 and will invest more funds in the

middle of business. I will use my own funds which are about 200,000 and will take a loan of

200,000 from bank and will take loan of 100,000 Darhams from my relatives and friends. I will

use this money in initial costs like land; building and then I will spend funds on effective

advertisements of my brand for the purpose to spread awareness among people about my brand

and offerings. Furthermore, these funds will be used for the purpose to practically implement our

proposed strategies and to achieve our goals and objectives.

Money is very important for any business because it is a building block for every business.

Without having money, no business can be succeeded because they cannot do advertisements,

they cannot produce products, they cannot do researches and cannot offer quality produced

products to their customers. Without having money, I cannot compete in with competitors within

the market and cannot gain a high share of market. Without having money, no business can do

proper segmentations and targeting. Without having finances, they cannot pay salaries to their

employees due to which they will be dissatisfied and which is not good for the business. If

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employees are not satisfied so they will quit their job which is an alarming situation for the

decline of business.

This business plan further focuses on the strengths, weaknesses and core competencies of our

upcoming business. Our core competencies will best customers’ service, internet presence and

flexibility in business. I further discussed about the importance of research in terms of

information of UAE. The total size of marketing is the whole country (UAE). I also discussed

some barriers to entry which are High capital cost, Brand awareness and Training and skills of

employees and further discussed the importance of technology and other factors for business.

1.0 General Company Description

1.1 Company’s Overview

This business will be based on provision of organic products to our customers with the name our

brand Organic care. We will be providing different sets of products which are useful for our

customers. We will use such materials in products which will not harm the health of people like

dangerous chemicals etc which can be found in other products. We will offer these products

through different channels like Offline and Online. This business will be linked with organic

industry. We will operate our business in multiple cities of United Arab Emirates (UAE).

1.2 Mission Statement

Our mission is to offer high quality products to our customers and to be one of the leading brand

in Organic food industry with high market share.

1.3 Goals of the Company

2. To empower all the consumers to make effective choices that will lead to improvement in

their health as well as to the environment around them.

3. To strengthen and increase organic practices and products which will help in reduction of

synthetic chemicals, toxic and will have clear benefits to health of people and to

environment.

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4. The other goal is to attract more customers in order to make high sales and compete in the

market with our competitors.

5. We will also be focusing on to take part in corporate social responsibility which is very key

for every business success.

6. Our goal is to do effective and efficient advertisements through multiple channels for the

awareness of people about our business and products.

1.4 Objectives of the Company

Organic Care has some objectives which they need to achieve from the operations of their

business. Objectives of the company are as below.

The first and key objective of Organic care is to offer highest quality products with better

services.

The other objective is to provide natural products, foods and flavors instead of artificial

flavors and colors etc.

To offer pure and natural food supplements and products and to provide completely free of

harm to health products and services to their customers.

Supporting organic farms and fields to help them to keep the processes good and quality of

farming as well as make and keep water and earth clean and pure.

The fifth objective of Organic Care is to float at least 40 to 60 shares by 2 to 3 years and to

create extra funds.

1.5 Business Philosophy

There are different ideas which can be very important for the success of our business. Some of

those ideas are discussed below.

1. Our main aim is customers’ satisfaction which is very important for our business. We want to

see our customers satisfied from our products so that they will suggest us to other people.

2. Providing Quality products to our customers is another component of our business which will

lead to attraction of more customers.

1.6 Our customers

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We have a large range of customers because we are operating in such a business which useful for

everyone and indeed a need of them. Some of our customers are as below.

1.6.1 Families

We will target different families who need organic products for them like their children,

youngsters or old age people. These families will mostly be from UAE and some can be from

foreign countries who are living in any city of UAE. They can be both males and females and

from any group of ages. No age and gender restrictions.

1.6.2 Students

We will also target students from schools, colleges and Universities of UAE and will make them

aware of our products and brand (Organic Care) because it is very necessary for them. We will

provide them different organic product they are interested in like Skin products, hair products

and different other organic products they demand. They can also be males and females.

1.6.3 Others

We will also target different other people labors, children, housewives, teachers, doctors,

engineers and many other segments because these products are important for everyone. No

restriction of gender, age, religion but should living in UAE.

1.7 Description of Industry

Organic Products industry is a growing and successful industry due to high demand for organic

products all over the world. The industry is changing very rapidly and they are attracting more

customers as compare with past analysis. The customers’ and market share of organic industry is

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increasing very rapidly. By operating in this industry we can avail a huge advantage as the

industry in going in growth so that we can make our business more successful and can make

customers in order to generate more revenues and capture a high share of market.

1.8 Company’s Strengths

Our main strength is quality of products. We will provide high quality or products in terms of the

features and tastes etc. It will lead to customers’ satisfaction.

The other strength is innovation in products which means that we will use innovative ways to

produce our products and innovative of offering our products.

1.9 Core Competencies

1.9.1 Best Customer Service

We will provide high level of customers’ service like what they need, will be done according to

their will. We will offer them home deliveries and so on.

1.9.1 Internet Presence

We will be present on internet in order to reach and meet our customer’s needs through online

channels.

1.9.1 Flexibility

Our business will be flexible which means that it will be changing according to the need of

industry and needs of customers.

I will also have a personal experience as I am a business student and know about all the activities

of business and to do it in a unique way. I will apply all those strategies and knowledge in my

own business which is very important.

1.10 Type of Ownership

This business will be sole proprietorship because I am the only person who is investing in this

business. I have no other partner in this business. I wanted to select this form of business because

I want to control and manage all the operation and activities of my business. I also want the

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profit to not to be distributed among different partners. I further want to take all the decision for

my business by my own.

2. Products and Services of Organic Care Business

The products and services of Organic care are better and healthy because of its unique

characteristics, higher quality and features. Our products include all locally (UAE) produced

products, preservative free groceries and free of harm to body care products and services

according to the uses and offerings of our products. Some main and good features of our

products are:

Our products are free of chemicals.

Free of artificial colors and looks up.

The freshest and healthiest products that improve health of consumers.

2.1 Competitive Advantage and Disadvantage

Quality is an important factor for every business because most of the customers want to get high

quality products and services and do not look at prices and budgets usually. So in our product

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line, the major and key factor is the quality of our products. Quality of our products can give us a

competitive advantage and can become our competitive disadvantage if we do not provide it. If

the quality Organic Care products is better than other competitors in the industry then it will be a

competitive advantage of Organic Care but if the quality of product goes down and weaker then

it will give us competitive disadvantage. For the competitive advantage, the level of our products

must be greater than others (competitors) otherwise it will be disadvantage if our quality level

comes down than their quality level.

2.2 Pricing of Organic Care products

The pricing strategies will be market skimming pricing. The pricing of Organic Care products

will be on the basis of market pricing and market condition and we will set the pricing

accordingly but will keep eye on the cost of production and expenses of the product. The main

and interesting part of our charges and pricing is the delivery of products will be free for every

customer and will provide the product whenever they want or need.

3. Marketing Plan

3.1 Market Research

3.1.1 Why is Research Important?

Market research is very crucial for every business which helps businesses to know about the

market in which they are operating in. With the help of my business research I will come to

know about the characteristics of my potential customers. I will come to know about their

genders, race, level of income, location, preferences and tastes and other factors which are very

important to know. We will provide products to those customers on the basis of these

characteristics like if some customer have low income, so we will provide them products with

low prices so that they can purchase it easily in which the quantity may be low but quality will

not be compromised. We will provide high price products those who have high incomes. Same is

the case for rest of the characteristics.

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3.1.2 UAE Market Information

UAE is a country having luxurious and international cities just like Dubai. UAE has a huge

market for customer with local and international people. The business market of UAE is

continuously growing because it is an attractive country for investment and different local as

well as foreign investors are making investments in the country. Most of the researches have

shown that UAE is most profitable country in terms of investments. The current situation of

market is that it is an open market for investments. UAE is actively focusing on diversity and

economic development of the country. The major sectors of business are Education,

Infrastructure, retail stores, energy sector, beverages and food business and communication

sector. In the past few years, the exports of UAE have raised to $123 Billion from $75 Billion.

Foreign direct investment is a key factor in UAE development and relationship with other

countries like US and UK etc. Between 2012 and 2014, the foreign direct investment of the

United Arab Emirates (UAE) have raised by 76% to $15 billion. The local population of UAE is

about 9.5 Million. The GDP growth rate is 3.9% which is very significant for the economic

growth and development.

3.2 Economics

1. The total size of market is the whole country of UAE including different major cities like

Dubai, Abu Dhabi, Sharjah and Al Ain city.

2. In the beginning I may not be able to capture a large share of market but with the passage of

time I will use strong strategies and other business tactics to own a high share of market. The

desired percentage of market I want to have is 60% which will be increasing in future.

3. The demand is very high in the market and people of UAE have almost high incomes so they

are demanding for such products to protect their health. Different Organic products based

businesses are increasing and growing very rapidly which shows that demand for such

business and their products is very high in UAE market.

4. Different businesses in UAE related to organic products are growing and developing very

fast. Consumers’ preferences are play a key role for the business success. People of UAE

need quality products with great features and tastes, no matter how much the price is?

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5. There are different opportunities for several businesses to operate in this market because

demand is very high for products and services. Business with size suggested by me can run in

this market very successfully.

3.4Barriers to Entry

3.4.1 High Capital Cost

To start a new business need high cost for investment and other needs like land, building, and

machineries etc, so it may resist a person from starting a new business. Same is the case with my

business because it also needs high initial investment.

3.4.2 Brand Awareness

It is very difficult to make people aware of your brand and what you are offering to them and

why they should do business with you instead of other people? Why they should trust you and

your brand? It needs a strong brand awareness which is very difficult for every business.

3.4.3 Training and Skills

It is very important to give proper skills and training to your employees in order to make them

capable of work with loyalty and commitment. It is very difficult to guide them in an easy way

because everyone has his/her way of life and level of thinking, different languages, different

beliefs and values. It can be a barrier to entry in the market for any business.

3.5 How to overcome these Barriers?

For overcoming the barrier of high investment, I will take loans from banks and other

financial organizations. I will also take loans from my relatives and friends as well as my

parents will also help me financially to start this business.

For the issue of training and skills development, I will hire some external experts to give

proper trainings to my employees and enhance their skills as well as polish their existing

skills.

For brand awareness, I will use effective advertisements through different channels, like TV,

newspapers, social media, internet, seminars, world of mouth and other billboards etc. This

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will help people to easily know about my brand and offering so that they trust me as a known

business.

3.5.1 Effect of Change in Technology

Whenever technology is modernizing, so quality and features of products of business also goes

modern. It has a large effect on businesses when they are using technology. I will not be able to

produce high quality whenever I have no better machineries which is a technology.

3.5.2 Effect of Government Regulations

Government regulations have also a large effect on my business in terms of taxes and other laws

and rules. When they will change any law so I will have to follow and apply that law or rule in

my business.

3.5.3 Effect of Change in Economy

When the economic conditions of the country is good so demand for products will be high which

is good for my business but on the other side, if economic conditions are not good so it will

suffer my business negatively.

3.5.4 Effect of Change in Industry

When industry changes the rules and regulations and way of doing business I will have to follow

that. If the industry is growing, so my business will also grow and if the industry is in decline so

my business will also suffer.

3.6 Products

The main products of Organic Care are:

Fruits and vegetables

Packaged foods

Breads and grains

Shampoos, Conditioners and Moisturizers

Hand Wash, Face washes and Body Wash

Milk Products

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And some other food products

Above are the core and key products that Organic Care business will offer to the potential

customers and target markets. Our products includes eatable items as well as other products like

shampoo, hand, face and body wash and conditioners etc because we have two different

portfolios of our products. In this case / situation, Organic Care can target more than one

segment or type of customers and markets effectively and this will be better for the business to

get a strong start up and grow fasten and quickly.

3.7 Feature and Benefits

The main features of all products of Organic Care are:

Quality of our products is the most important feature of our products.

Low pricing line and ranges of products comparatively to its quality.

Good, safe and secured packaging and designing of our products is also important factors.

The main benefit that our (Organic Care’s) products will provide and consumer will get is the

satisfaction of their needs and wants. Our products have higher and best quality, so the

consumers of our products can get higher satisfaction because our products are delivered as on

requirements with complete ownership of product as the get it. Comparatively low pricing is also

a benefit for the customers and consumer that allows them to get good quality at low and cheap

prices.

After selling the product to the customers our additional services and offers includes education

about use and consumption of the products, short time period warranty of long time usable

products, refunded prices in case of dissatisfaction and free home delivery of products.

3.8 Customers of Organic Care

Every individual can become potential customers of Organic Care business because every

human/individual uses the products which we offer to the market. In our business we provide

products which people use for their living as well as for their luxurious life style, so in this case

our customers can be everyone who use these products. For the business we should have specific

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and potential customer base and line which can become our customers and consumers of

products and contributes to the profitability of Organic Care.

Customers (Potential Customers) of Organic Care business are:

Families

Students (Male and Females)

Teachers

Children

Doctors

These are the customers whom the Organic Care has to target because these all are the people

who take serious care of their health in case of living standard, they are more hygienic and they

use quality things in their life.

4. Demographic Profile of Customers

4.1 Families

The demographic profile of families includes age, gender, income level, education and

occupation etc. Members of families of UAE mostly include all aged members like children,

younger, men and old age people. Gender includes both males and females while the educational

level of all families in UAE is moderate and good. Income levels of families are relatively high

to families of other (developing) countries and they are more socially and ethically connected

with one another in the society. In other characteristics, they have good and valued

characteristics as customers and because of this they are good and potential customer for Organic

Care.

4.2 Students

The ages of students are from 5 years to 35 years because it includes all level of students like,

school boys / students, college level students, university and graduation level students and PhDs.

The students of UAE are both males and females and their location includes all educational

institutions. They are socially well interacted with each other even in their daily life or student

life and activities. The income level of students is usually lower and weak but the income of

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level of UAE students is better than some other countries / regions so this make them potential

customers for Organic Care.

4.3 Teachers

Teachers have same characteristics and values to the students (somehow). The ages of teachers

are usually more than 40 years and their income level is higher and good enough for their good

living. Teachers group also has male and female teachers and they are deeply interacted socially

in their fields as well as in their routine activities and they are also communicated with their

students mostly. These are the things which the demographics profiles of teachers of UAE

include and this pave way and seek us to target them according to their characteristics.

4.4 Children

Children are the group of customers which use Organic product like Baby gel and Baby shampoo

and wash and different food products and their parents take serious care of their children. This

group is aged from 5 to 12 years. Their characteristics include precious food items and body care

product that leads to good health of children. The gender of children includes both male and

female children. Children are the potential customers if they and their parents are satisfied that

our products line will keep their children healthy and fit.

4.5 Doctors

Doctors are the people who take extremely care of their health and life style. They are more

interested in health researches and finding of new ways to improve health of individuals. Doctors

of UAE are mostly senior people and they are above 40 years aged because of having long time

experiences in their fields of study. Their income level is greater and higher than other

individuals and they like to use luxurious and expensive products which provide them higher and

best quality and they don’t look at prices because of their high income levels. They are extremely

interacted with others in the society and they also assist others for free in their health issues.

These characteristics of doctors show that in UAE, doctors are potential and good customers for

Organic Care if they are targeted well, effectively and efficiently.

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5.0 Competition

5.1 Major Competitors of Organic Care (UAE)

Some major competitors of Organic food are identified and mentioned below. These are the

Organic businesses / companies that will compete with Organic Care in UAE. Complete

information like names, addresses and website etc of our competitors are bellow.

Food4Life

Rashed Organics

City Home Food Stuff Trading LLC

Be Ceylon Organic

And number of other firms and Organic businesses who operate with Organic products and

provide Organic products and supplements inside UAE market and industry.

1. Food 4 Life

Company Name: Food 4 Life

Address: Creative Tower Fujierah, Al QOz, Dubai, UAE

2. Rashed Organics

Company Name: Rashed Organics

Address: 123, TBC Street, Al Ain.

3. City Home Food Stuff Trading LLC

Company Name: City Home Food Stuff Trading LLC

Address: building no 11A, Vegetable and fruit market, Al Aweer, Dubai

4. Be Ceylon Organic

Company Name: Be Ceylon Organic

Address: Dubai, United Arab Emirates. Dubai.

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These competitors can compete with us only in our product line because they only operate in

Organic items and products. They can compete with Organic Care because they also offer and

provide same products as ours.

We might have indirect competitors in the market. We will have indirect in shape of competitors

who produce food items in their fields and bring to the market and sell out their products by

themselves. So these people who cultivate and produce food items and sell directly to the market

and customers can become our indirect competitors.

In competition, our products and services will be compared with the competitors and their

products in form of the quality of our products and services, shape and design of product,

delivery services and performance, price ranges of our products and services and after sale

services and additional features.

5.2 Competitive Analysis of Major Competitors

Factor Organic Care (Me) Strength Weakness Food 4

LifeRashed Organics

Importance to Customer

ProductsYes Yes No Similar

qualitySomehow

better quality1

Price Yes Yes No Higher Price Little higher 2

QualityYes Yes No Similar

qualityWeak than us 1

Service

Yes Yes No Same services as

ours

Same services as ours

2

Reliability Yes Yes No

Good and effective reliability

Not have much reliability 3

Expertise Yes No Yes Having better

Good expertise than

2

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Factor Organic Care (Me) Strength Weakness Food 4

LifeRashed Organics

Importance to Customer

expertise us (Organic Care)

Company Reputation Yes Yes No

Same reputation

Weaker reputation than

us2

Location Yes No Yes

Better physical location

Enough and good location for customers

2

Appearance Yes Yes No

Nice product appearance and design

Good product appearance as Organic Care

2

Sales Method

Yes

(Strong)

Yes No Effective sales methods

Less effective than us

1

Advertising

Yes

(Effective advertisement)

Yes No Moderate

Strong advertisement and strategies

1

ImageYes

(good image)

Yes No Better and valued image

Good image than us

2

All factors have the criticality and importance between1-3 because all these factors for a business

or company play important and crucial role in the operations and success. So these all are

important and critical factors for Organic Care so that these all come in the criticality level 1, 2

and 3 for us.

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This company can operate in several places but the main niche will be the market and people of

UAE. We will target different segments of UAE as per income levels, ages and other

characteristics.

5.3.1 Niche Strategy

I will use billboards and TV advertisement to make my targeted niche about my business and

brand. I can also use social media platforms for this purpose.

5.4 Promotion

I will get my customers through effective advertisements as mentioned above and I will use

different kinds of advertisements like TV, Newspapers, social media, magazines and

billboards etc.

This mix is very important because some people use TV other use Newspapers while some

use social media like Facebook and Twitter due to which I can reach more people.

Using newspapers advertisement is a low cost advertisement. I will also use some

advertisements which bear no cost like I will tell my friends and family members to use word

of mouth and tell other people about the business and brand.

I want to have a clear image in the market so that customers can trust my brand due to its

reputation. I want to my customer to trust my brand and suggest to other people and consider

it as their own brand.

I will design an effective and unique logo for my business which will be an identity of my

business and people will know the brand.

I will have a database system having all public information of customers so that I can contact

them easily if needed.

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5.4.1 Promotional Budget

I will spend about 200,000 Darham on startup promotion of my business while there will be

some ongoing expenses which can be around 10,000 Darham a month.

5.4.2 Pricing Strategy

As I have done market research and have come to know about the income levels of people so that

I will fit prices according to their income levels and will offer different prices for different

people having different incomes. Pricing is very important because it will lead to customers’

retention if it is reasonable.

5.4.3 Customer service and Credit Policies

I will deal customers in a very delight manner so that they can consider the value of our business

and I will have some credit policies and will give products on credit to trusted customers and

they will have to give their full information and give us a date of recovery of that money.

5.4.4 Proposed Location

In my startup, I will start from Dubai which is an international city but in future, I will expand

my business to different other cities of UAE as well. The criteria is that population of Dubai is

very with high diversity. The incomes levels of people in Dubai are comparatively high.

Location is very important to customers because if you are in place which is difficult for

customers to go you will be unable to get more and more customers. Dubai is a convenient place

for most of the people living in UAE. It is consistent with my business and customers expect me

to be in a better location. Different competitors are also there but I will use such strategies due to

which competitors cannot harm my business.

5.5 Distribution Channels

I will use direct selling and online offering as well as door to door services. People can contact

us through website, phones and mail etc. I will further use retailers and wholesalers dealers in

order to make more sales. I will also use sales representative who will tell people about the

product and services of business.

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5.6 Sales Forecast

I will reach up a 100,000 Darhams sales in a month if the market conditions are good. I also have

worse case in which I will reach sales per month of 30,000 Darhams no matters what happens in

the market and industry.

Below charts of sales forecast of Organic Care shows the overall monthly and annually/yearly

sales forecast of Organic Care.

5.6.1 Monthly Sales

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5.6.2 Annual Sales

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