SMM Report on Blink

8/2/2019 SMM Report on Blink

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EXECUTIVE

SUMMARYBlinc Inc is well known international cosmetics brand that offer different types of beauty

products .the main purpose of this report is to prepare a marketing plan for this well known brand

in Pakistani framework. In this report our main focus is to introduce the Blinc Inc products like

Mascara, Eye liner, Lash Primer, Lash Curler, Long Lash, Eye shadow Primer, Eye Brow

Mousse to Pakistani customers and to capture a market share and becomes a well known brand in

Pakistani cosmetic sector. In this report we analyze and find out which strategy helps Blinc Inc

products to achieve its objective such as (Targeting Strategies, Marketing Strategies, SWOT

Analysis, PEST Analysis, and Marketing Mix etc) and other strategies related to Finance, Human

Resource Management, Supply Chain and Marketing.


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MISSION STATEMENT"Provide our customers with outstanding customer service, superior educational information,

and proven, cutting-edge products."

BUSINESS INTRODUCTIONBlinc Inc provides innovative products that will not only solve their beauty problems but also

allow them to feel the difference in term of looks. Cosmetics industry shows growth and past few

years the demand increase because people choices continuously changing and they wants to look

different from others.

We will launching our product in Pakistani market which is one of the known established brand

in international market and our main focus is to launch the product among those market segment

which are having concern related to their looks.

Initially, we try to capture a particular market segment then after one year we try to attract other

customers by different types of strategies that will attract other segments .Our main focus is to

make our customers brand loyal.

The unique selling point of this product is that it provides an effective solution to customers

having beauty concerns. Demand of international brand is high in Pakistani market because

people thinks that they are better in quality related to local brands so this an opportunity for

Blinc Inc products to capture market share at discounted price.


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PRODUCT AND SERVICES PROVIDEDPRODUCTS BENEFITS

Mascara

Does notpenetrate skin orlashes

Stays on whensweating, crying orrubbing your eyes

Eyeliner

Gentle formulacausing no eye

irritation.

Ideal forsensitive eyes andcontact lens

wearers

Lash Primer

Strengthenslashes andincreases resistance

to breakage

Protects lashesagainstenvironmentalstresses

Lash Curler

Curls lasheswithout causingdamage

Protectiveguard prevents

contact with skin oreyes.


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Long Lash

Does not causeskin discoloration

Does not causeeye discoloration

Eye Brow Mousse

Treatsunderlying skin

with anti-agingbenefits!

Providesnatural-lookingcolour

Eye Shadow Primer

Stays on evenif you sweat or

wear in harshweather conditionslike heat, rain or

snow

Contains anti-aging ingredients

BUSINESS STRATEGYOur strategy is to develop Blinc as a brand that represents quality and value. The tactics

underneath this strategy and the programs we will put in place cover a broad range of disciplines.

They are presented here in order of importance.

Continually develop and bring to market products that function as intended and representan acceptable price--value proposition to the consumer.

Focus on PR campaigns and affiliations with opinion leaders that reinforce our image.


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Print advertising will be focused on the benefits of our products, both physical andemotional. They will speak to the lifestyle our target consumer aspires to have. It will be

carefully placed to insure the proper affiliation.

Develop a team of "technical representatives" to support key accounts with product andsales training.

Further enhance the Blinc image with the consumer by targeting prestige spas and resorts. Affiliating with retailers who have a consumer image and awareness that supports Blincwill reinforce our image.

Explain our products and our philosophy in an informative and interesting format. Create brand awareness in new markets and measure consumer acceptance prior tocommitting brick and mortar resources.

Provide the consumer with a reference for treating the skin. Wholesale customers will be able to utilize the site to train their staff and to placereorders or learn about new products.

Retail and wholesale customers will be able to set up automatic replenishment on the Web and

we will be able to reach out and remind them when they need product, based upon average usagedata and time since last purchase.

HUMAN RESOURCE APPROACH Locate, nurture and develop a team that is talented, committed and understands theconcept of brand.

Training and incentive programs will assist in inspiring our people to "walk the walk,"and reward performance.

Employee stock option and profit sharing programs will be available at all levels.


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ORGANIZATIONAL STRUCTURE

COSMETIC INDUSTRY ANALYSISDue to the current adverse economic environment in Pakistan, demand beauty care products

declining bus on the other hand this is one of those sectors which show consistent growth in past

few years. Factor behind this decline was:


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Decrease in purchasing power due to rapid inflation. Demand of international brand declining due to their high prices and low purchasingpower of people.

On this situation it is a great challenge to introduce a new international brand in Pakistanimarket and to gain market share.

COMPETITOR ANALYSISPakistani market for cosmetic brand shows growth in past few years and these brands arerecognizing not only within the country as well as internationally. A number of renowned

international cosmetic brands have launched their product range in Pakistan and creatingawareness for cosmetic products because of healthy competition with Pakistani brands.Few well known international as well as national cosmetic brands are as follows:

BRAND FAMOUS PRODUCT ABOUT BRAND

LOreal LIP-GLOSSES One of the leading cosmetic brands in theworld and has gained an equal admiration

in Pakistan as well. They have officiallylaunched themselves in Pakistan and are

offering a wide range of products

THE BODY SHOP COCONUT BODY BUTTER It is a special beauty brand whose

distinctiveness lies in the natural

ingredients. For the Pakistani market, they

are certain attractive aspects that connect

the consumer brand .It product range

includes shampoos, body wash, perfumes

and many other accessories.

M.A.C MAC LIPSTICK Cosmetics are just the type of cosmetics

women wants. MAC Cosmetics has a wide

range of products including MAC Blush

(including their MAC Barbie Blush Range).

MAC Lipstick, their legendary MAC

Brushes. MAC eye liners and eye palettes

and much more.


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MEDORA NAIL POLISH Medora is the top most manufacturers of

cosmetic in Pakistan. Medora make up

Cosmetics are at the peak of demand and

popularity. Major products are: Lipstick,

lip gloss, lip pencil, Foundation and

powder, Liquid Foundation, Blusher,

Mascara, Eye liner and eye shadow, nail

enamel, Blusher and perfumes.

MAYBELLINE DREAM FOUNDATION Maybelline New York is the distribution

of global cosmetics company, LOreal. Itsmajor products are Great Lash, Eve studio,Dream Foundations. Powders and Blush.

Instant Age Rewind, XXL Pro Mascara,The Colossal Volume Express Mascaraand more.

AVON

NAIL POLISH Avon consistently pairs beauty andscientific innovation, ensuring in productsthat provides superior performance and

help women look and feel their best. Itdeals in color cosmetics, fragmented; nail

care, skin care, hair care and personal careproducts.

ODHO EYE SHADOW It has been operating in Pakistan for quitesome time now and it has made its place

in the market. They are known for usingIslamic ally allowed (Halal) ingredients in

their products and are offering a widerange of colour cosmetics, out of whichthe most popular are their blush-on and

eye shadow kits having a number ofshades


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PEST ANALYSISPOLITICAL ECONOMICAL SOCIAL TECHNOLOGY

Political situation in

Pakistan is now a days

is not well because of

so many issues in

which law and order

situation is most

important factor due

to which many sectors

effected .but, the only

sectors or industry

which is less effected is

cosmetics industry and

it shows growth from

past few years.

Economical situationnow a day is not well

not only in Pakistan but

internationally .Due towhich investment from

international sectors isvery low in Pakistan.

The sectors which

shows consistency inthis period is of

cosmetics and it alsocontributes to the

economy of a country.

Blinc Inc have loyaltyfactor as compared tocounter part in other

countries. They arestrong i n organiz ing

social and promotionevents like Blinc Inc

fashion week and

other fashion shows,whichbuild huge

reputation among thepeople.

Technology plays a veryvital role in every field

of life because it an

easiest ways tocommunicates to the

people not only withinthe country bust all

around the word. Blinc

inc use technology toattract their customers

and to provide themservices and help themto provide easy excesstowards our product.

SWOT ANALYSISSTRENGHT

ew, very modern and wide selection of products

ttractive all American Style

ide Distribution Centre

nline services plus catalogue

WEAKNESSES

verage profit marginsV requires high budget

Less variety

rowth of the internet leading to an increase in the number of consumers


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OPPORTUNITIES willing to buy onlinencreasing rate of changing trend in fashion.

THREATS ompetitors offering a variety of cosmetics and have high market shareside range of substitutes

MARKETING STRATEGYMARKETING SEGMENTATION

GEOGRAPHIC Metropolitan cities and town

BEHAVIORAL

Going out regularly (events and parties) Necessary part of everyday accessories. Regular usage

DEMOGRAPHIC

Age: 16 to 40 Education: Women who have more conscious about their eyes andeyes protection have more knowledge about the product.

Sex: female (teenagers, working women , housewives) Life cycle: young, single and married Social class: Upper, upper middle and middle class people haveenough money to afford the product

.TARGETING STRATEGYBlinc Inc will be distributed among all the channels in the Pakistani cosmetic market some of the

most important channel are:

CONSUMER MARKET

1. COSMETIC SHOP


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Cosmetic shop will be able to present our product directly to the consumers. Cosmetic shop may include

retail stores in shopping malls.

2. DEPARTMENTAL STORESDepartmental stores may be able to give exposure to our product also giving us the option of sales

promotion and personal selling in that particular stores .these includes: Aghas, My super store, Naheed,

Chase up, ARY cash and carry.

3. WHOLESALE RETAILERSWholesale retailers may provide the product extra availability in the market for both retail stores and

business market like: Imtiaz Super store, MAKRO & METRO.


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BUSINESS MARKET

4. BEAUTY PARLOURSBeauty parlor may carry our products to satisfy their own customer needs. They may include: Nabilas,

Sabs, MahRose, Deluxe, Depilex and many other local and unrecognized parlors.

5. MODELLING AGENCIES & MAKEUP ARTISTMake Up artist and Modeling agencies may use our products for preparing their models for outdoor

shoots, fashion shows and other events. These modeling agencies and makeup artist may includeSherwani casting agency, Click studio, Khawar Riaz, Bina Khan Etc.

6. FILM AGENCIESFilm agencies may also use our product for preparing their models for shoots. Some of these film

agencies are Geo Entertainment Production, Grey Scale, Crew media, Humayun saeed production etc.


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MARKETING MIX (4PS)


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PRODUCT

The right product for the target market. Packaging of the product appeals to the customer

PRICE

Blinc Inc overall pricing strategy is to market to a wide range of consumerswith its product at a range of retail prices theycan accept.

Their price strategy is consistent with the stage of the product life cycle theproduct is in.

They offer discounts in the form of coupons as a term of sales for theirproduct.

PROMOTION

Women are sensitive to advertising TV spots are the best way to target mass audience Comparative advertising. Company run ads in magazines that are geared towards women in womensfashion and womens service magazines

PLACE

On-line services plus catalogue Wide distributions channels in different cities.

CORPORATE LOGO

SALES STRATEGY


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Blinc Inc focus is to cater Pakistani market with its widespread sales network and provide all its potential

customers with a global service backed up by the most complete and efficient instruments of work,

marketing and training. The first and the most important parts of Sales strategy is to train and hire those

people that are competent to achieve the level which Blinc Inc want to achieve for its product

continuously training of Blinc Inc employees is essential so that they are able to face challenges.

Secondly, Blinc Inc rewards those employees who achieve targets and those who increase sales for their

product.

Blinc Inc products are introduced in fashion events and used by well known makeup artists Khuwaja Riaz

etc.When we reach Rs 6,000,000 in wholesale business to outside accounts we will begin to develop an

internal sales force and customer satisfaction team. Our internal sales team will be paid 6% of sales. The

customer satisfaction team will handle all post sale activities. Insuring delivery, claim processing and

collection. (This team will cost approximately 8% of sales in salary and support costs.)

SALES FORECASTSales at retail stores are planned to grow astoundingly from 2012 to 2015. This represents a phenomenal

growth rate per year for the first three years. This growth is comprised of two factors. First, averagecomparable store sales growth over three years. This average rate is a composite of the planned rates

year onethrough year three. Second, a new store-opening schedule resulting in different locations being

open at the end of year three.


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PRICING STRATEGYBlinc Inc product will be introduced at following prices:

PRODUCTS

INTERNATIONAL

PRICE

D

I

S

C

O

U

N

T

E

D

PR

I

C

E

S

(

1

5

%

)

Mascara Rs 2142 R

s

1

8

2

0

Eyeliner Rs 2142 R

s

1

82

0

Lash Primer Rs 1710 R

s

1


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4

5

3

Lash Curler Rs 2490 R

s

2

1

2

0

Long Lash Rs 4770 R

s

4

0

5

5

Eye Brow Mousse Rs 2142 R

s

1

8

2

0

Eye Shadow Primer Rs 2250 R

s

1

9

1

0

We expect to maintain this price throughout the first two year after we launch our product. The

main aim is to capture the market share and to develop a corporate image and product trust

PROMOTIONAL STRATEGYThe promotional strategy for Blinc Inc would consist of the following sources:

Advertising.


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Sales promotion. Event Marketing

ADVERTISING

SALES PROMOTION

To increase the sales with the new target market, offers would be made to the customers. An example of

this offer could be:

EVENT MARKETING

SPONSORING FASHION SHOWS

Fashion shows are the most important events now days because womens adopts the fashion used

by the models. Blinc Inc sponsored such type of events to attract the womens towards theirproduct.

OPERATION OVERVIEW


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Our main responsibility is to make possible the availability of product at right place, at right

time, in right quantity to the customers and to provide them services related to our product so

they are not facing any problems regarding our product. Our product is manufactured in Florida

and most of business activities are outsourced therefore biggest challenge for Blin Inc is run itsoperations smoothly to make the product available.

BUSINESS LOCATIONBlinc Inc product is manufactured in Florida USA .As we outsourced our manufacturing and

logistics therefore it is their responsibility to handle all the activities related to manufacturing and

transportation .It not only saves major portion of our cost but also help us to focus on our core

activities.

In Pakistan our office is located in Shara-e-Faisal from where we would operate our entire

business activities. BecauseShara-e-Faisalis suitable for locating office because it is one of the

well known place for business in Pakistan and most of the offices.


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OUTSOURCING STRATEGYBlinc Inc decided to outsource its production in order to lower its cost and to maintain its quality

because our main focus is to introduce this international brand in Pakistani market. This would

also give Blinc a greater level of control. Another benefit of having more than one outsourced

company contracted is that the companies must have competitive pricing as rivals and it helps

Blinc Inc to capture market share with low prices.

QUALITY CONTROL PROCEDURESBlinc Inc is not manufacturing the products our responsibility is to import the products and to

sell it to Pakistani market but it does not mean that we are free from quality control when the

product arrives it is our responsibility to check the quality (means their expiry date and any

damage during import) and to ensure the right quality of product to our customer. The strategy to

do this is to build a condition into the contract which states that outsourced contractors will be

subject to a 15% penalty if a greater than 3% product fault level is observed in the first year (the

guarantee period) from the product launch. However If the quality of product is 100% then it is

our responsibility to pay some rewards according to their efforts.

CUSTOMER SERVICE PROCEDURESBlinc Inc outsource its manufacturing so our main focus is toward our customers and to providethem service that will help us to retain our customer and to increase this will allow us to capture

market share and give competition to our competitors brands.

To interact with our customers we developed our own websitewww.Blincinc.com.pkwhich willallow our customers to become aware about products, to buy our products and to give us

feedback and if they have any query and complain they easily express them.
http://www.blinc/http://www.blinc/http://www.blinc/


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RISK ANALYSISFINANCIAL RISK

Likelihood of start-up cost overruns Sales not occurring as quickly as forecasted Operational cost overruns

MARKET RISK Chance of failure introducing an unproven product Lots of competition Industry downturn

OPERATIONAL RISK Unsuitable or outdated technology Environment regulations stricken Location Instability

FINANCIAL PLAN OVERVIEWOur financial plan consists of estimates which are mentioned below:

Growth rate will be 20 % to annual sales and our profit margin is 30% Sale will bearound more than millions after one year, after that we will focus to increase sale with the same

growth rate for every year. Our plan for this year is to gain the 15 % market share. And marketshare would be increase with the growth rate every year.

To capture market share 15% ofcosmetics industry by the end of year 2.

To become a brand which is in top 5 Pakistani brands in year 3?

DEMAND FORECAST

Pakistan have the total population of 187,342,721 people where females under age of 15 65

years are 54,671,873 and growth rate of population is 1.57%, urban population 1,968,188 of

women under age of 15 40 years, working women are 51% so it is 1,003,775 where upper class

and upper middle class rate is 39% its mean 391,889 which is our targeted market. They are the

people who are very sensitive about there cosmetics products.


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FINANCIAL STATEMENTSCOMPUTATION OF FINANCE

REQUIRED

Fixed Assets

Material

Cash for normal usage

Other Operating Expenses

Finance required

FIRST SHIPMENT MATERIAL AMOUNT


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FIXED ASSETS

Item Qty Rate Value Life

Building 1 100,000 100,000 5

Air Conditions 2 25,000 50,000 5

Security Items 1 7,500 7,500 4

Fax Machine 2 1,500 3,000 5

Equipment 1 1,000 1,000 5

Computer 8 10,000 80,000 5

Water Machine 2 35,000 70,000 5

Generator 1 20,000 20,000 5

Stabilizer 2 3,500 7,000 5

Furniture 1 30,000 30,000 4

Elect Works 1 15,000 15,000 6

Total 383,500


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STATEMENT OF CASHFLOWS

FOR 3 YEARS

PARTICULARS 1ST

YEAR 2ND

YEAR

Opening Cash Balance PKR 20,000,000 PKR 16,642,990

Collection PKR 16,000,000 PKR 19,687,500

Total Cash Available PKR 36,000,000 PKR 36,330,490

Purchase of Fixed Assets PKR 383,500 PKR 98,875

Payments of COGS PKR 12,600,000 PKR 16,000,000

Expenses PKR 5,612,282 PKR6,037,982

Tax 16% PKR 561,228 PKR 603,798

Cash After Tax PKR 19,157,010 PKR 22,740,655

Remain Cash PKR 16,842,990 PKR 13,583,835

Drawing PKR 200,000 PKR 200,000

Total Cash Available PKR 16,642,990 PKR 13,389,835


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SALARIES &

ALLOWNCES

FOR FIRST 3

YEARS

PARTICULARS 1ST

YEAR 2ND

YEAREMPLOYEE MONTHY

SALARYTOTAL

MONTHLY

SALARY

EMPLOPYEE MONTHLY

SALARY

MARKETING 7 20000 140000 8 20000

SUPPLY CHAIN 1 35000 35000 1 35000

HUMAN

RESOURCE4 25000 100000 4 25000

FINANCE 3 15000 45000 3 15000

MONTHLY

SALARY320000

YEARLY SALARY (320000 X 12) 3840000 (340000 X 12)

SALARIES &

ALLOWNCES FOR

FIRST 3 YEARS

PARTICULARS 3R

D

Y

E

A

REMPLOYEE MONTHY

SALARY

MARKETING 10 20000

SUPPLY CHAIN 1 35000

HUMAN RESOURCE 4 25000

FINANCE 3 15000

MONTHLY SALARY

YEARLY SALARY (380000 X 12 )

PARTICULARS 1ST

YEAR 2ND

YEAR 3RD

YEAR

STAFF SALARIES 3840000 4080000 4560000


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UTILITIES BILLS 150000 175000 180000RENT 180000 180000 180000

DEPRECIATION 78075 78075 78075SUPPLIES 50000 70000 80000

STATIONARY 4000 6000 7000MARKT.EXPENSE 800000 900000 950000TOTAL EXPENSE 5102075 5489075 6035075

CONTINGENCY (10%) 510207 548907 603507

TOTAL OPERATING

EXPENSE5612282 6037982 6638582

BALANCE

SHEET FOR

3 YEARS

ASSETS QUITIES & LIABILITIES

PARTICULARS 1ST

YEAR 2ND

YEAR 3RD

YEAR PARTICULARS 1ST

YEAR 2ND

YEAR

FIXED ASSETS EQUITY

Fixed Assets 383,500 494,375 494,375 Equity 16,642,990 13,389,835

Less:

Accumulated

depreciation

78,075 161,650 242,475 Less: Drawing 200,000 200,000

Net Fixed Assets 305,425 332,725 251,900 Retained

earnings

2573,497 1,924,361

Total Fixed

Assets

305,425 332,725 251,900 Total Equity 19,016,487 19,003,091

CURRENT

ASSETS:

CURRENT

LIABILITIES

Cash 16,642,990 13,389,835 10,136,680 Account

Payables

2,000,000 1,000,000

Account

Receivable

3,066,569 4,791,760 6,846,719 Salaries Payable 500,000 400,000

Inventory 1,575,000 1,968,750 2,460,938 Operating

expenses

Payable

73,497 79,979

Total Current

Assets

21,284,559 20,150,345 19,444,337 Total Current

Liabilities

2,573,497 1,479,979

TOTALASSETS

21,589,984 20,483,070 19,696,237 TOTALEQUITY &

LIABILITIES

21,589,984 20,483,070


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