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PROJECT REPORT ON COSMETIC
NAME OF THE ORGANISATION
GENTLE TOUCH CREATIONS
We care for you
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OWNERS
MANISHA PANTH
HIMANSHU
Proposed headquarter- Delhi
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i. COVER SHEET
Cover sheet is like the cover page of the
book. It mentions the name of the project,
address of the headquarter (if any) and
name and address of the promoters.
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ii. TABLE OF CONTENTS
EXECUTIVE SUMMARY
THE BUSINESS
(a) The objective (b) Brief history
(c) Form of ownership
(d) Name, Qualification of the owners
(e) Proposed Headquarters
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Funding requirements
(a) Debt
(b) Equity
The market (a) Description of product
(b) Comparative analysis
(c) Licensing agreement
The plan
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(a) marketing plan
(b) operational plan
(c) organizational plan
(d) financial plan The critical risk
The exit strategy
The appendix
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III.EXECUTIVE SUMMARY
Gentle Touch Creations is a start-up business
specializing in hand-made herbal products.These products include herbal therapy packs,
soaps, Saint, oil, eye packs, salves,
moisturizers, herbal bath bags, and bath powder.
All Gentle Touch Creations are made from herbs
that are either garden grown or gathered in local
fields or wooded areas when they are at their
peak of maturity and the concentration of activeingredients is highest.
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Herbal products have grown in
popularity with consumers over the
past ten years. Herbal productsindustry exceeded 4.3 billion dollar
in sales last year.
Where once a customer would haveto go to a specialty shop to purchase
herbal products, now those same
product are available at the local
supermarket.
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IV. THE BUSINESS
Objective :Working for gaining 100%
customer satisfaction Form of ownership: Partnership firm
Name, qualification of the owners:
Owner 1:Manisha Panth
Educational qualification: MBA
Owner 2:Himanshu Educational qualification: MBA
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V. THE FUNDING REQUIREMENTS
Total amount required for theinvestment is Rs. 10 lakh (approx).
Debt: The debts has been borrowed from
relatives and loans from banks.6 lakhwould be taken from bank at the rate of
interest for 9%p.a.
Equity:ownership fund (4 lakh would beinvested through us).
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VI. THE PRODUCTProducts: Theproduct line of Gentle Touch Creations is as
follows:
Herbal Therapy Packs for back and neck pain and relief of
muscle aches, filled with wheat berries and flax seed and 10
herbs.
Saint, oil for use as an anti-inflammatory or for burns, in a roll-
on applicator.
Eye packs in eye-pleasing patterns that help relieve sinus
discomfort and eyestrain.
Moisturizerfor face and hands with various scented oils. Soapscreated with such herbs as powdered balsam and rose
petals marbleized throughout each cake, gently scented.
Herbal bath bags
Bath powder made from arrowroot, cornstarch, rose petals andother herbs.
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VII. THE PLANMARKETING PLAN :
Develop ongoing relationships with cosmeticswholesalers and retailers throughout the India.
Maintain a high standard of quality and service
Offer discount coupons for the promotion ofcompany
Create the website for connectivity of more usersand for more awareness
Regularly send free samples to potential clients sothat they can experience the quality of productsfirst hand
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Market summary:. Herbal products have grown in popularity with
consumers over the past ten years. As the herbal market has grown into a
multi-billion dollar industry, so has the opportunity for small firms and
farms to supply product to larger herbal companies that then repackage and
market the product under their own brand.
Market demography: Potential customers can be divided into following
broad categories:
School girls
College girls
Working ladies
Housewives' Market research:there are lot of competitors already in the market but we
will differentiate us through the means of providing discount offers and by
good customer loyalty base.
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MARKETING MIX STRATEGY
MARKETING OBJECTIVE:1. Build brand image
2. Diversification.
3. Develop e-commerce functionality.
MARKET SEGMENTATION:1. Professional women
2. School and college girls
3. Household ladies
MARKET POSITIONING:
1. Good relationship with customer
2. Customer delightment
3. Good quality product
4. Affordable price
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PRODUCT MIX STRATEGY
Gentle Touch Creations will focus first on building a client base withherbal health product companies. i.e. herbal therapy packs, soaps, Saint,oil, eye packs, salves, moisturizers, herbal bath bags and bath powder.
PROMOTION MIX STRATEGY
Distributed in the neighborhood
Friends
Relatives
Pamphlets
Face book
Internet websitesPRICING MIX STRATEGY
Good quality and less priceDISTRIBUTION MIX STRATEGY
Single store
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SWOT analysis of the market: Under this we
basically analyze about the strength, weakness,opportunities and threats. STRENGTH
1. Quality
2. Brand name
3. High quality manpower resources4. Vast range of products and service
5. Global technology capability
6. Low price
7. The organization has strong ethical values and ethical mission statement.
WEAKNESS1. Too many brands
2. Need time to establish own brand name
3. High service cost
4. Use or hard chemical
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OPPORTUNITY
1.Upgrading customers through innovation to new level ofquality and performance.
2.Building brand image.
3.Cosmetic store should be designed in such a way to attract
customers.
4. More could be done with the family branding selling point.
THREATS
1. Competition from substitute products.2. Loyal customers would prefer their old brand.
3.Price competition from local and multinational players.
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(B) OPERATIONAL PLAN
(1) Plant location: Gentle Touch Creations is located
in a 2,000 square foot manufacturing space in
the model town.
(2) Plant layout: Design of the store
The interior dimensions of space is matter i.e. floor
design, wall colors, using of mirrors, lighting, decoration
of the space, outer look of store, attracting show pieces,
placing of the good in an ordered way, big gifts at the last
side of the store and small items should be placed in thestarting, the entering point of the store should be well
spaced for the entrance of the customers at the store.
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(3) Inventory management:
The record of each product with its price list, brand name,
quantity will be mentioned in the computer so that the proper
records of the items can be maintained.
It will help in the placement of the order to the supplier also.
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(C) ORGANIZATIONAL PLAN
Organizational chart
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Details about the board of director:
General Manager :Manisha panth
Operational Manager: Ravi
Marketing Manager :Vaibhav
Finance Manager :Himanshu
Manpower planning:
2 more people are required for handling theoperational work in the store.
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Legal aspects of labor
Anyone employing staff must comply with employment
legislation. Major pieces of legislation which you must
be aware of include:
The National Minimum Wage Act
The Working Time Regulations
The Employment Rights Act
The Transfer of Undertakings Regulations (if you takeover an existing business you must observe the existing
staff's terms and conditions of employment)
Health and safety
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(D) FINANCIAL PLAN FOR TWO-
FIVE YEARS
FinancialPlan:To get the business up and running, wewill need to obtain financing.
The tables show annual figures. Break-even Analysis.
The monthly break-even point is approximately Rs
10,20,000.
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Projected Profit and Loss.
The following table and charts highlight the projected profit and loss forthree years.
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Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales Rs.584,000 Rs.642,400 Rs.706,640
Direct Cost of Sales Rs.204,400 Rs.224,840 Rs.247,324
Other Rs.0 Rs.0 Rs.0
Total Cost of Sales Rs.204,400 Rs.224,840 Rs.247,324Gross Margin Rs.379,600 Rs.417,560 Rs.459,316
Gross Margin % 65.00% 65.00% 65.00%
Expenses
Payroll Rs.124,600 Rs.143,800 Rs.155,144
Sales and Marketing and Other Expenses Rs.25,800 Rs.27,600 Rs.31,000
Depreciation Rs.5,400 Rs.5,500 Rs.5,500
Rent Rs.48,400 Rs.52,800 Rs.52,800
Rent Rs.6,000 Rs.6,000 Rs.6,000
Maintenance Rs.5,840 Rs.6,424 Rs.7,066
Utilities/Phone Rs.9,000 Rs.9,500 Rs.10,000
Payroll Taxes Rs.18,690 Rs.21,570 Rs.23,272
Other Rs.0 Rs.0 Rs.0
Total Operating Expenses Rs.243,730 Rs.273,194 Rs.290,782
Profit Before Interest and Taxes Rs.135,870 Rs.144,366 Rs.168,534
EBITDA Rs.141,270 Rs.149,866 Rs.174,034
Interest Expense Rs.2,821 Rs.2,326 Rs.1,618
Taxes Incurred Rs.33,740 Rs.35,510 Rs.42,424
Net Profit Rs.99,308 Rs.106,530 Rs.124,491
Net Profit/Sales 17.00% 16.58% 17.62%
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Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash Rs.195,358 Rs.296,358 Rs.417,648
Inventory Rs.21,175 Rs.23,293 Rs.25,622
Other Current Assets Rs.0 Rs.0 Rs.0
Total Current Assets Rs.216,533 Rs.319,651 Rs.443,270
Long-term Assets
Long-term Assets Rs.59,170 Rs.61,170 Rs.63,170
Accumulated Depreciation Rs.5,400 Rs.10,900 Rs.16,400
Total Long-term Assets Rs.53,770 Rs.50,270 Rs.46,770
Total Assets Rs.270,303 Rs.369,921 Rs.490,040
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable Rs.31,974 Rs.31,947 Rs.34,836
Current Borrowing Rs.6,700 Rs.3,400 Rs.100
Other Current Liabilities Rs.0 Rs.0 Rs.0
Subtotal Current Liabilities Rs.38,674 Rs.35,347 Rs.34,936
Long-term Liabilities Rs.20,000 Rs.16,415 Rs.12,454
Total Liabilities Rs.58,674 Rs.51,762 Rs.47,390
Paid-in Capital Rs.140,000 Rs.140,000 Rs.140,000
Retained Earnings (Rs.27,680) Rs.71,628 Rs.178,159
Earnings Rs.99,308 Rs.106,530 Rs.124,491
Total Capital Rs.211,628 Rs.318,159 Rs.442,650
Total Liabilities and Capital Rs.270,303 Rs.369,921 Rs.490,040
Net Worth Rs.211,628 Rs.318,159 Rs.442,650
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Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $70,500 $85,000 $105,000
Cash from Receivables $161,300 $244,675 $300,759
Subtotal Cash from Operations $231,800 $329,675 $405,759
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $12,000 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $243,800 $329,675 $405,759
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $70,800 $76,000 $105,000
Bill Payments $173,564 $232,719 $263,829
Subtotal Spent on Operations $244,364 $308,719 $368,829
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $3,000 $6,000 $3,000
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $8,400 $8,400 $8,400
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $255,764 $323,119 $380,229
Net Cash Flow ($11,964) $6,556 $25,530
Cash Balance $21,436 $27,993 $53,522
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VIII. CRITICAL RISKS
Non acceptability of the product.
Most critical is the customers' changing tastes.
High rent cost
When the economy takes a down turn, people changetheir spending priorities.
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IX. EXIT STRATEGY
If the project does not run successfully we would
wind it up and payback the loan by selling
machineries, equipments and tools or Company will
hire a qualified business broker to sell the business.
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X. APPENDIX
(a) curriculum vitae of the owners
(b) ownership agreement
(c) certificate from pollution board
(d) memorandum of understanding (e) articles of association
(f) other documents that help in marketing the project
viability
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THANK YOU