business proposal-perfume matters

Perfume Matters’Business Plan

• To achieve at least 30% increase in annual sales in the next four years

• To gain an annual net profit more than Rm100,000.00 after the second year of business operation

• To nurture the Islamic way of doing business

• To establish our branches and distribution centers throughout Malaysia and around the Asia Pacific Region in the 7th year of operation.

• To obtain people trust on this brand

• To be the preferred fragrance producer and distributor in Malaysia;

• To provide local Lavander flower planters with a job

• To position it’s brand as the best natural fragrance flowers in the market

• To create awareness among consumers on Lavander flowers

• Provide a quality product that meet the younger aged needs

• Provide a 3 in 1 function with also serve as (fragrance, beautifying and youngerning)

• Improve the quality assurance of the product

• Increase number of distribution centers’

• Maintain an excellent cash flow of company

• Registered as a limited company with 8 founding fathers

• Each partner contributed RM 55,000

• Registered to the SSM(Suruhanjaya Syarikat Malaysia) on the 29th Oct 2010

THE INITIAL START-UP

RM 410,000

RM 200,000 is used to buy machine equipment.

RM 210,000 is used for legal expenses,

permits,Licences and store

furnishing.

An amount of RM 20,000 is placed in

company account as working capital.

• Had its’ beginnings with 8 UPM graduates, (Alvin, Hidayah, Arif, Fakhrul, Husna, Izzah Afifah, Ebtisam and Fadhlun) as their founding fathers.

• They began working on their final year project(FYP) on multi-used fragrance, anti-ageing and skin beauty in the 2007.

Perfume Matters’ SDN. BHD (764321-M)No. 23, Jalan Parklane, BrinchangCameron Highlands, Pahang Darul Makmur Tel : 03-4444 2288Fax : 03-4444 3377Email : perfumematters@yahoo.com/streamyxWebsite : www.perfumematters.com.my

Company Locations

and FacilitiesPerfume

Matters’

Market Analysis

Situational Analysis

Customer

CompetitorsCompanies

• More age-group woman and man are aware

• Need more than just fragrance scent.

• 100% free from alcohol and lard based perfume.

• Better packaging and marketing practises

• Practising of idea of multi-level marketing

• A start-up business• Offers wide range of

lavender based products.

• Have been trying to stay established

Company

The Market

• creating a good product range and introducing it to the market (product-orientated approach)

• finding a gap in the market and developing a product to fill it (market-orientated approach).

Pull Factors

The Big and Emerging Malaysian Market

Lower Production Cost

Economic Liberalization

To Achieve Economies of Scale

The Homogenous Product

Lavender Ivy

?

Wholesalers and Retailers

Individual Customers

GeographicWhole Peninsular MalaysiaA 45 mile geographic area DemographicMonthly sales volume over RM

500,000

 BehavioralSeek for high quality local-

made perfumeWilling to pay a premium for

higher quality, exotic perfumeHandle less than three types of

perfume

GeographicThe immediate target is whole

Peninsular MalaysiaThe total target population is 15.0

million people 

DemographicSingles and families

Ages 15-70Health concerned and patriotic

BehavioralWilling to pay a little extra for

higher quality, multi-use perfumeModerate and heavy users of

perfume, lotion and sun block 

30%

10%

60%

PERCENTAGE OF TARGET MARKET

Wholesalers

Retailers

Individual consumers

Fragrance

Change to

Fragrance

Youngerning

Beautifying

We are

here now!

Porter 5 forces Analysis

Industry Rivalry

• How many players? • Are there any monopoly?• Are there many differentiations?• Are there many new innovations?• How intense is the competition in the

industry?

Entry Barriers

• How easy for a new competitor entry?• How easy to achieve market share ?

Threat of Substitutes

• Are there many substitutes options for customer?

• Will these options limit pricing opportunities?

Threat of Buyers

• Believes on Health Risk Effect?• Are there many buyers in the market?

Threat of Suppliers

• Possibility to face the increasing cost of items bought from suppliers ?

Market Needs

• Competitive pricing: Product will be priced competitive to true substitutes.

• Informative labeling: Product that will be labeled truthfully

Market Trends

Market supply: The increase of supply has reinforced the demand. Eg; One Drop Perfume, Pure Mediterranean Perfume and Paradise Perfume.

• Health consciousness: Customers have become more health conscious, caring for skin beauty

Main Competition

• Foreign Companies

• Local CompaniesRini De’ Beauty

MJS Corporation SDN BHD

• Company: OLAY • Business Type : Manufacturer, Trading

Company, Agent, Distributor• Product/Services : Moisturizers,

perfume, soap, and body wash and skin care products

• Packaging : Bottle spray( Blue)

• Price: RM 47.90

• Company: NIVEA • Business Type : Manufacturer, Trading

Company, Agent, Distributor• Product/Services : Moisturizers,

perfume, soap, and body wash and skin care products

• Packaging : Cuboidal bottle

‘straw’(Blue)

• Price: RM 41.50

• Company: Rexona• Business Type : Manufacturer,

Trading Company, Agent, Distributor

• Product/Services : Moisturizers, perfume

• Packaging : Glass bottle

with spray (Blue)

• Price: RM 45.50

Rini De’ Beauty

• Company: Rini De’ Beauty • Business Type : Manufacturer,

Trading Company, Agent, Distributor• Product/Services : Perfumes and skin

care products

• Packaging : Glass bottle with

spray attractive trigger mechanism

• Price: RM 20.00MyLavender

MJS Corporation SDN BHD

• Company: MJS Corporation

SDN BHD

• Business Type : Manufacturer,

Trading Company, Agent,

Distributor• Product/Services : Perfumes and

moisturizers

• Packaging : Crystal bottle with

tuning cap

• Price: RM 17.00

LavaMJS

• 3 in 1 product of beautyfying, youngerning, fragrance)/BYF agent

• Reasonable and affordable: RM 25.00

Lavender Ivy

100%

LAH!

100 percent!

Fragrance

YoungerningBeautifying

We are here now!

• High experienced employees• Low labor cost in Malaysia• Easy to reach the product by

internet • Strong management team• Good brand image• Variety of products for

(women, man,children)• Good transportation services

Weakness

• Lack of labor with high knowledge

• High Cost of Training• High cost of

advertisement

• Support from home country

• High population in Malaysia

• Easy to advertise

Threat

• A lot of competitor in perfume industry

• Barriers from country, economical, geographical

• Uncertainty of Global economy

• ( increasing of fuel price )• High rate of bribe index• Culture risk in Malaysia

MARKETING OBJECTIVES

To improve Lavander Ivy

production on a sustainable basis and increase incomes.

To sell the Lavander Ivy

to people

To become one of the

most successful Lavander

based product

producers

To provide working

opportunities and also to

make a good profit.

Product’s Knowledge cont..

• A new modern pack design with a flower pattern and softer colors to appeal to younger women.

• Product descriptions and introducing larger and compatible pack sizes rather than the existing bottles.

• ‘A heart blooms with beautiful blue lotus lavender Ivy, strengthened with additional ‘limau nipis’, while base notes await us with exotic form of mixture fragrance’

• Attractive bottle design with encase custom-made cover

• Delicate and rare spraying device

PVC tubing

Coiled handy cover

• Perfume and Cosmetics Exhibition• interactive online magazine called RTF (Rise to

feel)• using the Astro TV channel ( AstroRia, MTV,

Hitz) and • local radio station ( Hot.fm, Hitz.fm, and

Suria.fm)• Newspaper ( Harian Metro, The Star and

Harakah)• Facebook Page( Perfume Matter’s Group)

Price

P = VC 1- CM

P = RM 35.00 1- 0.55

P = RM 3.50Where,

VC = variable cost per unitCM = contribution margin

Cost-Plus Pricing

Place• central distribution point in Cameron

Highlands, Malaysia.

where can we buy coconut chips?where can we buy coconut

chips?

Where can we buy Lavander Ivy?

MANEGEMENT ORGANIZATION OF PERFUME MATTERS’ SDN BHD