Review the appropriate guidelines for your selected company:
For this week's discussion, respond to the following:
Start with a brief overview of your business: company name and what you are selling (a maximum of 3 sentences).
How does your business work? Describe the day-to-day flow of activities necessary to deliver your product or service to customers. Wherever applicable, identify costs. Be sure to address the following, as applicable to your chosen business in the response, using headings:
- Facilities.
- Describe the facility, including its location.
- Specify whether it is rented or owned; include any associated costs.
- Estimate the cost of utilities, such as water/sewer, gas, electricity, and trash removal.
- Production Process/Description of business operations.
- Describe the production process (how you will produce the product) or describe how your business will operate if this is a retail or service company.
- Identify the equipment, furniture, vehicles, etc. you will use and associated costs.
- Explain your approach to quality control.
- Explain your approach to inventory, as applicable.
- Personnel Needs
- Specify the number of employees you plan to have, including managers.
- Identify their roles, wages, and/or salary.
COMPANY GUIDELINES
· You will create a business plan for a for–profit startup company of your choice and you must adhere to the guidelines in this document.
· You will be the CEO of the new business.
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Explanation |
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Business Size |
· Your business is a for profit startup starting operations in January of the current year. · Your sales must be over $1 million by the end of the second year in business. |
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Product or Service |
· Be specific about the product or service you plan to sell and how you will differentiate yourself from similar products or services in the marketplace. · You will list any variations of the product (product lines) or services you sell (service lines) |
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Market Size |
· You will start marketing and selling the product or service in your geographical area within a 100-mile radius from your home and/ or online. |
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Intention to Raise Money |
· You will develop the business plan with the intention to raise funds from investors and grow the business. · You will raise funds from outside investors, either angel investors or venture capitalists and you will give equity in your business in exchange for the money you raise from investors. |
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Facility |
· You will rent or purchase. You will need to identify the cost of rent or purchase price and the cost of utilities. · You cannot operate from your home. |
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Employees |
· You will have employees, a management team, and you will develop your own organizational hierarchy. · You will have more employees and managers in the second year than in the first year as your sales are increasing. |
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Equipment |
· You will need to purchase equipment, computers, furniture, vehicles (etc.), as applicable, to run your business. |
Key Business Plan Parameters
*The instructor will approve your company in a reply to your Week 1 discussion post in which you will describe this business.
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Overview:
Earthly Elegance is commited to develop opulent yet reasonably priced self-care products that satisfy customers' changing demands without sacrificing environmental sustainability. At Earthly Elegance, self-care is a way to develop confidence and self-expression. We have developed distinctive personal care products that empower people and enhance their timeless appeal by fusing natural ingredients with in-depth research. Consumers in today's market place a premium on environmental responsibility and are growing increasingly conscious of the consequences of their purchases. Consequently, we supply them with sustainable and organic self-care and environmental products.
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Marketing Vehicles Table |
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Marketing Vehicle |
Frequency |
Cost/Month |
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Social Media: Facebook and Instagram |
3-5 times per week |
$700 per month |
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TV Stations: Local Station |
1 time per week |
$500 per month |
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Free Samples |
2 events |
$500 per month |
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Website |
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$2000(one time cost) |
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Billboards |
2 locally around town |
$50 per month |
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Earthly Elegance is a for-profit company offering self-care products to meet the ever-changing self-care needs of the target consumers. The company is selling a vast range of self-care products such as sunscreens, formulations including options for hydrating, volumizing, and accommodating sensitive or complicated scalps, organic shampoo conditioner, face and body wash, deodorants, makeup remover, skin wipes, and fragrances. Earthly Elegance is targeting both males and females and is committed to address diverse care concerns of individuals.
Demographic Description
The primary target market of Earthly Elegance includes women aged 25-45 and earning between $50,000 to $100,000 annually. Women should have awareness of their self-care needs and skin types to have the most appropriate solutions. Family sizes could range from single women to married mothers etc.
Geographic Description
Earthly Elegance aims to serve urban and suburban areas through the ecommerce platform. The target areas should have access to internet connection to access and use the online retail store of the company and to get their products at their doors. Initially, areas with moderate climates such as New York and California would be targeted to align with our mission to provide natural and organic personal care products.
Lifestyle Description
The lifestyle of target population should be modern yet healthy and hygienic. Yoga, exercise, workout and wellness retreats should be the part of everyday routine of our target population. Because along with personal care products having a healthy lifestyle is crucial to achieving expected outcomes. Customers prioritizing natural and organic products and fashion wise consciousness would be the focus of our business.
Psychographic Description
The target customers of Earthly Elegance would be socially responsible and would value sustainability and ethical sourcing in the manufacturing of products they use. Trendsetters, wellness-conscious, and those who prioritize self-care would be the target of Earthly Elegance. These customers would drive sales as well as promote sustainable and organic focused initiative of the brand to attract unique customers. Unmarried and young women are more conscious about their skin and body, meanwhile educated women are concerned about the manufacturing process of products they use thus we will target self-conscious educated women to be the part of our brand.
Purchasing Pattern Description
Purchasing patterns refers to the ways by which consumers purchase or acquire a product or service from a company (Waldroof, 2021). Customers will be purchasing Earthly Elegance’s personal care products from their website. Through e-commerce retailing the company has made it convenient for customers to have their products at their doorsteps. After ordering from the website within five days they would have their products on dressing tables. Customers will use our self-care products daily as a part of their self-care routine. Refilling or replenishment cycles depends on how frequently a customer is using our product.
Buying Sensitive Description
Different customers' buying behavior is sensitive to different factors. Such as some customers will be concerned about the price while others will be concerned about the quality, packaging etc. To strengthen consumer’s buying decisions and to convince them to purchase we have everything briefed on the website to help customers clear their insecurities and make an informed decision. For example, our products are organic, natural, and affordable and the packaging is eco-friendly. Earthly Elegance owns its commitments and is answerable to its valuable customers. Excellent customer service and brand success are also important considerations to make our visiting customers, returning customers.
To conclude, Earthly Elegance aims to be the trustworthy personal-care brand for its customers and for this, we are committed to every word we say to establish brand image in consumer’s minds. By targeting educated, women aged 25-45 married or single we will differentiate their personal-care experience. The company’s target market is majorly urban areas having awareness of the importance of personal care on everyday basis.
References
Waldroof, C. (2021). Buying Patterns: Leverage Consumer Insights | Mailchimp. Mailchimp. https://mailchimp.com/resources/buying-patterns/
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Company Description and SWOT Analysis
Sara Pilgrim
Strayer University
BUS 599: Strategic Management
Professor Dr. Andrea Banto
October 17, 2024
BUS599 – Strategic Management
© 2024 Strayer University. All Rights Reserved. This document contains confidential and proprietary information about Strayer University. It may not be copied, further distributed, or otherwise disclosed in whole or in part without the expressed written permission of Strayer University. 2
Company Description and Mission Statement
"Earthly Elegance," a for-profit business, will provide self-care items that are made sustainably and with minimal impact on the environment. Earthly Elegance is a fitting name for the company, since it embodies both its mission and range of offerings. Customers can deduce the backstory of our products' meticulous manufacturing without sacrificing sustainability and quality from the company's name. The company's name is derived from two words: "Earthly" represents the relationship our company has with nature, and "Elegance" denotes self-care.
We at "Earthly Elegance" provide an extensive selection of reasonably priced self-care items. Earthly Elegance is dedicated to offering organic personal care products that minimize their negative effects on the environment while prioritizing delightful client experiences. These personal care products will be made using natural, biodegradable raw ingredients in our production. Our goal is to satisfy our target market's changing demands and tastes while providing the best personal care products possible.
The business will first present the following product lines: a) A range of formulations, including options for hydrating, volumizing, and accommodating sensitive or complicated scalps, will be available for organic shampoo and conditioner. b) A variety of formulas for face and body wash will be available, each catered to the needs and preferences of the consumer. Strictly forbidden from using any chemicals, these goods will only be made using natural raw materials. Because there won't be any foam from the face wash, the skin will stay smooth and fresh for longer. Extensive research on various skin types will be carried out to ensure that our products yield positive outcomes.
c) To improve our clients' everyday experiences, we will be introducing natural fragrances made from fruit and flower extracts. d) In an effort to protect our valued clients' skin, we will add makeup removers and skin care wipes to our assortment of personal care accessories.
e) Natural deodorants will be offered in stock and cream forms. They are made with fruit and flower extracts to give a pleasant feeling.
Our start-up's initial product line will focus on offering a variety of self-care products. Our objective in developing an extensive range of items is to establish ourselves as the go-to destination for customers seeking personal care solutions. Depending on consumer feedback and sales performance in the first quarter following our launch, we intend to expand our self-care offerings with additional products.
"To create luxurious yet affordable self-care solutions that respond to consumers' dynamic needs without compromising on environment sustainability" is the stated objective of the for-profit business. Self-care at Earthly Elegance is a means of achieving self-expression and confidence. We have combined natural ingredients with extensive research to create unique personal care products that empower people and increase their classic appeal. In today's market, consumers emphasize environmental responsibility and are becoming more aware of the effects of their purchases. As a result, we provide them with environmentally conscious and self-care products that are sustainable and organic.
Our Mission Statement
“Nurturing People, Planet, and Beauty: One Sustainable Step at a Time.”
Our goal at Earthly Elegance is to completely transform how we take care of the environment and ourselves. Since we think that sustainability and beauty go hand in hand, we're committed to making personal care products that are both environmentally friendly and will make you feel amazing.
Our promise
1. Using only the best, environmentally friendly materials, we will create products that are as kind to the environment as they are to your skin.
2. We'll be creative and enlightening, always looking for fresh approaches to lessen our environmental impact and encourage others to follow suit.
3. We'll create a community of people who are enthusiastic about coexisting with the environment and enable our clients to make decisions that are environmentally friendly.
This mission statement conveys the company's dedication to sustainability and eco-friendliness while also being amiable, upbeat, and inspirational. It aims to resonate with clients who share the company's values and inspire and energize the staff.
Trends in the industry
Customers monitor the manufacturing process of personal care items because they are aware of the impact these products have on their skin. Hygiene, sustainability, and individualized care solutions are highlighted in the latest personal care market trends. In the personal care sector, sustainable hygiene and self-care are becoming more popular as consumers become more conscious of their environmental impact and gravitate toward eco-friendly products. Customers are taking note of the sustainability principles that self-care companies uphold.
A recent study by Nosto indicates that 68% of consumers search for goods that are promoted and branded as "clean," and 59% are swayed by goods that are described as "natural and organic." According to Imarc (2024), the personal care and beauty products market is expected to reach a valuation of US$59.3 billion globally in 2023 and is expected to expand to US$132.7 billion by 2032. Numerous self-care companies are entering the market with the promise of producing and supplying sustainable, natural, and organic self-care goods. One of the biggest trends in the personal care sector is the emphasis on natural and organic self-care products. A recent poll found that 55% of consumers are prepared to pay more for organic and sustainable self-care products, and 65% of consumers are searching for brands that practice environmental responsibility (Howarth, 2024).
"Biotech innovations with a focus on sustainability," the second trend in the self-care business, encourages scientists to identify natural beauty compounds and recreate them in labs to prevent natural ingredients from being destroyed or distinguished. This trend, which combines science and nature, seeks to meet the ever-evolving requirements of self-care without sacrificing sustainability (Howarth, 2024). In an effort to introduce sustainable ingredients and products to the market, a large number of skincare companies are testing this trend. International beauty firms like Unilever have taken notice of the biotech movement.
Furthermore, diversity and inclusivity are highlighted in the third trend in the self-care sector. Customer demand shifts to allow businesses to sell their products to a wider range of demographics. Enhancing customer trust in products can be achieved, for instance, by casting plus-size models and dark-skinned models with diverse sexual identities. It is no longer logical to test skin-care products on models with fair skin since customers already know the changes they desire. According to 43% of self-care industry customers, they like many types of attractiveness in advertisements. Dark-skinned people can benefit from this trend because they still need to choose a personal care brand that works for them. Brands' market reach will also be increased by using models with darker skin tones (Howarth, 2024).
Strategic Position
The strategic position of our organization in the target market is known as the "differentiation strategy." At reasonable costs, Earthly Elegance provides personal care products made with biodegradable raw ingredients without sacrificing sustainability or quality. This sets the business apart from its rivals in the personal care sector. "Natural and organic personal care products at affordable prices" is how the business set itself out from its rivals and hopes to dominate the market. Because established personal care brands offer pricey natural and organic self-care products, or vice versa, this would be the ideal positioning for Earthly Elegance.
In addition, our business is providing both in an effort to draw in additional clients. The business will differentiate itself from the competitors by putting this strategic position into practice. The business will successfully draw in more customers and maintain profit margins by providing reasonably priced natural and organic personal care goods (Laja, 2023).
Distribution
Earthly Elegance plans to use an online e-commerce platform to reach its target market and distribute its products. We want to employ social media platforms for marketing in addition to the e-commerce site. The e-commerce platform will make things available, let customers reserve products, and use the email to keep track of product availability. This platform was chosen to provide clients with ease and convenience. Online purchasing has become more popular over the past ten years and is predicted to continue. Recent estimates predict that by 2028, worldwide e-commerce revenues would total $58.75 trillion (Taheer, 2024). As a result, using this distribution strategy will give customers access and maintain sales growth.
SWOT Analysis
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Strengths 1. Focus on environmentally friendly products 2. Use of natural, biodegradable materials 3. Strong emphasis on sustainability 4. Committed to transparent marketing |
Weaknesses 1. Higher production costs for organic ingredients 2. Limited initial product line 3. Lack of brand recognition 4. Limited marketing budget |
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Opportunities 1. Growing demand for eco-friendly products 2. Increasing consumer awareness of sustainability 3. Expansion into global e-commerce markets 4. Potential for product line expansion based on customer feedback |
Threats 1. Intense competition in the personal care market 2. Risk of supply chain disruptions for organic materials 3. Potential regulatory changes regarding natural products 4. Economic downturns impacting consumer spending |
Earthly Elegance's sales may be significantly impacted by the opportunities that the SWOT matrices revealed. For instance, demand for eco-friendly items will increase as more consumers place a higher value on sustainability when making purchases. The company emphasizes natural and environmentally friendly ingredients throughout manufacture, capitalizing on the current trends in the sector. The corporation can guarantee access to new international markets to increase sales and target large customer leads, given the expanding worldwide e-commerce sales. Additionally, the business may enhance its product range in the future by collecting newsletter responses from customers and listening to their input.
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Sources
Howarth, J. ( May 23, 2024). The top 6 trends in the beauty business for 2024 and 2025.Exploding Subjects.Trends in beauty: https://explodingtopics.com/blog/
Imarc. (2024).Market size for personal care and cosmetics items online: 2032. The global online beauty and personal care products market is expected to reach $9.1% of total revenue in 2022–2023.
P. Laja (2023).Differentiation strategy: definition, importance, and best practices. CXL. taken from https://cxl.com/blog/differentiation-strategy/amp/ on October 16, 2024.
Taheer, F. September 9, 2024.Statistics on internet shopping: How many people will purchase online in 2024?Online buying statistics can be found at https://optinmonster.com/. OptinMonster
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