Anti-aging Product

Business Plan
By
Ahmed Adel
Bishoy Nassef
Mariam Taha
Mohamed Moawad
Noha Nael

Supervised by
Dr/ Ahmed Fouad
 Executive
Summary
• Pharocosmetics is an Egyptian cosmetic and skin care product
company, relaying on natural and herbal materials that inspiring the
world from more than 7000 years by ancient Egyptians.
 Market
Analysis
• Cosmetics and skin care products industry in Egypt is considered a growing
market
• The Skincare market in Egypt
registered a CAGR of
4.9% 22/40 billion LE
during 2010-2015.
• Facial Care accounted for
54.8% of the Skincare
market in 2015 in Egypt.
In 2016, grew by 18 percent
year-on-year.
• Anti-aging Products Dominate the Egyptian skin care Market, Accounting for
the Majority of the Total Share
• Generation Y&X is
concentrating on
preventive measures
to keep the signs of
aging at minimal
 Reality Test-
PESTEL
Political& legal Economical
• Political stability in Egypt. • Inflation Rate & high exchange Rate:
• Appling more customs on imported consumer became more price
cosmetics products sensitive and start buy more from
local cosmetic producers.
• Laws to ensure consumers’ rights
• Cosmetics market strained by
• COMESA agreement and good
currency float, subsidy reduction,
political relations between Egypt and
increasing customs (60 percent
many countries may open a new
market to our company as an
custom duty on cosmetics)
expansion plan.
 Reality Test-
PESTEL
Social Technological
• Natural Product Trends. • Advanced Manufacturing Technology in
• Increasing consumers awareness order to compete with imported goods.
• Customer’s heavy usage of social
• Increasing awareness towards
media, online shopping and the internet
local brands. media channels.
• Changing lifestyle due to Environmental
economic changes which make
the consumers seeking for • Environmental regulations in waste
cheaper products with a certain disposal and green energy in production.
quality.
 Porter’s Five
Forces

1-Competitive Rivalry – High 2-Threat of substitutes- High

There is no anti-aging product • Substitutes are available.
with our 3 in 1 ingredients • Customers’ switching costs are
(collagen, gold, Vitamin C) in the low.
Egyptian Market.
• Prices of substitutes are
competitive.
• 3-Bargaining power of suppliers – Low
• Switching risks are low.
• Different suppliers are available (raw
materials & bottles).
5-Threat of new Entrants – Low
• Exit plan will be with low financial
losses. • Very competitive market –few
experts
4-Bargaining power of Buyer- Moderate
• Customers are loyal to international
• Customers’ switching costs are low.
brands but due to the economic
• Customers likes differentiated skin changes they start accept the local
products. brand within certain quality and
• But the number of potential customers reasonable price.
is large enough. • Some governmental restrictions in
licensing Products
Competitor’s
analysis Direct Competitors
NIVEA Q10 Pros Cons

Natural NIVEA products are always known as

Available at all moistures’ in consumers perception
Pharmacies, Hyper stores Expensive

& Souq.com  Night Cream, 50 ml=550 EGP

Strong Brand Reputation  Day cream, 50 ml = 550 EGP

 Eye cream,15 ml =600 EGP
 
 Competitor’s
Direct
analysis Competitors

Eva collagen Pros Cons

 
Natural Target Segment:
Available at all Pharmacies, Hyper stores
Eva Focuses on
& Souq.com
females
Strong Brand Reputation
Price 50+
e.g. Eye cram 15 ml = 110 EGP
 Competitor’s
Significant competitor
analysis

L’Oreal Revitalift – Pros Cons

Post wrinkle Repair
  Availability; Hyper stores, Expensive
Pharmacies & beauty stores.  Night Cream, 50 ml=574 EGP
Strong Brand name  Day cream, 50 ml = 574 EGP
Complete line  Eye cream,15 ml =1000 EGP
   Anti-aging serum, 30 ml =210 EGP
Chemical components
 Indirect competitors

Lancome: anti-aging line Pros Cons

  Advanced Technology Only Available on Faces Stores

Strong Brand Repetition Expensive

 Night Cream, 50 ml=1200 EGP
 Day cream, 50 ml = 1200 EGP
 Eye cream,15 ml =1125 EGP
Anti-aging serum, 30 ml = 1650
EGP
 Key Success
Factors
Key Success Factors   Pharocosmetics NIVEA Q10 Eva collagen
Weight

Natural/quality .20 4 .80 5 1 5 1

Ingredients .30 5 1.5 4 1.2 4 1.2

Price .10 4 .40 4 .40 4 .40

Marketing .20 4 .80 5 1.2 5 1.2

Distribution   4 .80 5 1.2 5 1.2

channels .20

Total 1.00 4.3 5 5

Survey
Customer
Profiling
Customer
Profiling
Customer
Behavior
Customer
Behavior
 Product
Validation
 Product
Validation
 Product
Validation
Price Range
 Place
Preferences
Promotion&
IMC
 Survey Result
Analysis
Target Segment
• Females 25+ to late 40’s
• In greater Cairo & Giza
• Income Range 5000to 10000 and above
• Looking for solution to skin aging problems
• Preferring natural skin products
• Having huge tendency to buy online
• Preference to go 150ml, plastic tube
• Preferring skin masks to use it once per week.
 Survey Result
Analysis
Product
• 150 ml Plastic tube, Flip top cap
Price Range
• Majority of the target market sample are willing to pay 200 to 300 EGP for
150ml tube.
Placement
• 49.4 % of the target market sample preferred to buy skin product online.
• 28.2% of the target market sample would buy skin product from pharmacies.
 Survey Result
Analysis
IMC
• The survey shows 65.3% of the target market sample interaction with
social media.
• Based on survey result and our budget, our company will start with:
• Social media
• Personal Selling in our office
Key Partners Internal Key Key Activities Channels Value Proposition
Resource
Registration at the HR:5 partners Legal 65.3% online shoppers anti-aging 3 in 1
Ministry of health & salaries •legal form of the company Distributor: Online& natural product
population: SGS Egypt showed in income •Registration at Ministry of Personal sale at office.
35000 EGP. statement health
Outsource:
Nerol Company Production
-Raw materials cost: •Outsource
50EGP/tube
-Packing cost: Marketing
10EGP/tube •Facebook, youtube and
-10k tubes is the instagram
minimum order Outsource 5000EGP/month
Paid ads 28000

Customer Relationship Customer Segment

Financial &operation 12k/Y
Customer Satisfaction: Customer Loyalty •Launching a company web -Females 25+ to late Cairo & Giza
Quarterly survey -loyalty card @Y site& website maintenance 40’s -Salary 5k to 10k
Post purchase call 2 36000 -prefer natural skin EGP&above.
products. -like online shopping
-Use product once per
week
Revenue Streams: online& Direct sales
 Vision Mission

Our vision is to be Our mission is to provide a natural

dedicated to providing a skin care products to the woman who
natural, unique and cares about history, civilization and
effective skin care nature; and seeking for healthy,
products.
youthful skin which enables her to
express her personality and self-
confidence.
 Goal Objectives

• Our goal is to be the

market leader in Egypt. •Creating Brand Awareness
Then go through our •Achieving sales by 10000 tubes by the
expansion plan to Gulf end of 1st year and 20000 tubes by end
Area& COMESSA of 2nd year.
countries. •Having dividends of 100.000 EGP to the
owners by the end of 2nd year.
Core Values
 SOWT
Analysis
S W
• 3 in 1 Natural products component. •Lack of Budget & limited Resources.
• The only product in the market for25+ to late •Lack of Brand awareness.
40s.
• History of Ancient Egyptians theme and
obsession of their life style.
• Exclusive product rights.
• Cost and time saving

O T
• Many Distribution channels • Tough competition
• Increasing the interest towards Anti-aging product • Wide range of substitute brands
• Trending towards the natural Skin care products
• 60% increasing in the customs for imported product
Marketing
Plan
(You deserve it)

Natural
3 in 1
25+ to late 40’s
Time, effort and cost saving
 Pricing
Strategy

Odd price
• Pharo gold24k mask in 150ml tube for 229 EGP
• Use it once per week not day and night like the competitors
• 3 in 1 gives 10 benefits to the skin
 Pricing
Strategy
Discounts
• Promotion and discount occasionally
• Like summer time, holidays, mother’s day..etc.
• costs 3000-5000 (hammering) on social media sponsored ads
Geographic pricing
• Buy the product from our physical location up to 25% discount
Distribution
Channels
• Online selling through the mobile number on our
facebook page to order for home delivery.

• On site in our location at mohandseen

 Promotion

• As the survey shows that

65.3% usually know the new
skin product through social
media, we will use the power
of social media
• Facebook page, instagram
and youtube
  Advertising Sales Promotion Events Celebrity
Endorsement
Brand  Facebook and youtube  Free samples Free trail at our Appearing in
Awareness video ads and office facebook ads
( mask sachets )
sponsored posts
 Online Contests
 Printed flyer

Trial Informative printed flyers+ 25%off coupons offered in Free trail at our  
social media posts clubs and beauty stores office

Repeat    Loyalty program-   Social media

purchase premium card. bloggers in product
review posts
 Half year sale

50%off
 IMC&
Promotion
 IMC&
Promotion
 Expenses Structure
Finance & Marketing Expenses

Capital Web Page

Facebook Campaign
36,000
60,000
Structure Free Samples
Flyers
8,000
2,000
Paid Ads 28,000
• L.L.c Self-funded Total Marketing Expenses 134,000
company with Salaries
1,400,000 EGP as a CEO 120,000
capital, shares are Marketing Manager 102,000
equally contributed by Operation Manager 102,000
Finance Manager 102,000
the 5 partners Sales & Relationship Officer 36,000
280.000 EGP each. Accountant 36,000
Total Salaries 498,000
 Breakeven Calculation Quantity 10,000 Tax 22.5% COGS: Sales 26%
Price/Unit 230 Expenses
COGS /Unit
Price/unit 230 VAT 14% Increase 120.00%
Raw Materials 50
annual
Packing 10
Cost/unit 60 growth 50%
Total Cost Per Unit 60
Margin/Unit 170 Income Statement 2020 2021 2022
Operating Expenses Sales 2,300,000 3,450,000 5,175,000
Rent 72,000 COGS 600,000 900,000 1,350,000
Salaries 498,000 Gross profit 1,700,000 2,550,000 3,825,000
Utilities 12,000
Operating Expenses
Employees Benefits 10,000
License and Registration Rent 72,000 86,400 103,680
Fees 35,000 Salaries 498,000 597,600 717,120
Marketing 134,000 Utilities 36,000 43,200 51,840
Legal/Administration fees 15,000 Employees Benifets 10,000 12,000 14,400
license and registration
Total Operating Expenses 776,000 fees 35,000 10,000 10,000
Breakeven /Units 4,565 Marketing 134,000 160,800 192,960
Breakeven /amount 1,049,882
Legal/Administration fees 15,000 18,000 21,600
Breakeven Price 138
Total Operating
Expenses 800,000 960,000 1,152,000
Capital 1,400,000
Net Income Before Tax 900,000 1,590,000 2,673,000
Expenses 1,400,000
Difference
VAT 322,000 483,000 724,500
0
Tax 130,050 249,075 438,413
ROI 32% Net Income 447,950 857,925 1,510,088
Pay Back Period 1.56 Year
19 Months
• ROI: 32%
• Payback Period: one year and seven months
approximately.