business proposal-perfume matters
TRANSCRIPT
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 : [email protected]/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