Contents
EXECUTIVE SUMMARY 1
OBJECTIVE
3
COMPANY OVERVIEW
4
PICTURE OF LOCATION
5
PRODUCT/SERVICES
6
MARKET ANALYSIS
7
MARKETING STRATEGY & IMPLEMENTATION 11
ORGANIZATION & MANAGEMENT 14
FINANCIAL PLAN 15
APPENDIES 20
EXECUTIVE SUMMARY
Scrumptious Suds is a company that have created a brand concept consisting of a skin care product such as soap
.
We are seeking recurring investment to fund the growth of the brand. The plan that follows explains our market, our value proposition and our market segmentation strategy. The detailed financial plans provide a clear view of our sales and profit forecast. To establish Scrumptious Suds as an important brand that represents quality in skin care products. We will accomplish this by using high quality manufacturing and research and a creative marketing program. Scrumptious Suds is committed to its products and employees, which we believe is the key to success.
The business will be a partnership which will deal with the preparation and distribution of locally made soap and comprises of five (5) partners. It is a new start up business and consists all of members who have basic accounting and management skills due to all of them being business students at the TCICC in Grand Turk. The idea was formed when some of the members of the group took into consideration that there aren’t and locally made soap that we have here in the TCI specifically Grand Turk.
We are seeking recurring investment to fund the growth of the brand. The main goal of Scrumptious Suds for the future is to expand our services to other islands within the Turks and Caicos Islands and of course to make a profit.
OBJECTIVE
·
Develop a brand that consumers can trust.
· Achieve returns on our investments, plus additional profit.
· Mission – To establish Scrumptious Suds as an important brand that represents quality in skin care products. We will accomplish this by using high quality manufacturing and research and a creative marketing program. Scrumptious Suds is committed to its products and employees, which we believe is the key to success.
· Vision Statement-Our vision is to have a significant, positive impact on the growth of the personal care and household care marketplace where safe and environmentally conscious products prevail and where there is an Organics product in every home.
· Guiding Principles – Scrumptious Suds is committed to its values, such as, high-quality, passion, excellence and leadership, which allow us to navigate challenges and provide for future opportunities. These beliefs start with our commitment to our employees and our products.
· Keys to success
· Developing high-quality products and providing them at market price – will want to make the consumer return again.
· Being able to sell the product wisely, through marketing and sales strategy.
· Employing persons who are passionate about the industry.
.
COMPANY OVERVIEW
Scrumptious Suds will be a soap and Fragrance, located in Grand Turk, Turks and Caicos Islands. Operating on Front Street, the sophisticated out of Barbie Lightbourne’s Complex. The Store will offer different scents of body/bath soaps, lotions, face scrubs and etc. The scents will vary depending on customer wants. We will also be offering bath bombs to help with skin care along with the soap, in different shapes and sizes. The store will be open for business Monday – Friday 8am to 5pm, Saturdays 9am to 4pm and Sundays closed.
· Ownership – Scrumptious Suds will be a partnership, owned by Katrina Been, Shermal Francis, Shaineisha Skippings, Aisha Thomas, Kamula Williams.
· Legal Form – Scrumptious Suds will be formed as a partnership.
· Start-up Summary –The rent is, $1000, per month, with a three-year lease agreement. The unit consists of 2000square feet of leasing space for a small business, including the main area where products will be sold, a storage room, a mixing room and one restroom. The soap equipment includes, three stand mixers (each costing $200), mixing bowls and spatulas, measuring cups and measuring spoons. Therefore, equipment costs will total up to approximately, $800. We will need shelving, to display our products. A counter top and a computer system for our day-to-day transactions, which will cost $1,400
· Location & Facilities – Scrumptious Suds will be located in the highly visited tourist location Front Street. It will be distanced from other popular and well established businesses; it will be a ten-minute walk to the First Caribbean Bank and will have a view of the sea as customers walk in to give a more memorable and welcoming greeting.
PICTURE OF LOCATION
PRODUCT/SERVICES
· Product Description – Scrumptious Suds will be offering body/bath soaps, lotions, face scrubs and etc. Our customers will have the option of choosing from a variety of scents such as Hibiscus, cactus, strawberry, pineapple, etc. The soap in particular will have different shapes and sizes. We will hand-make the skin care products with as much natural ingredients as possible.
· Competitive Comparison – From our research the main supply of skin care products such as bath/body soaps are sold at variety stores. in Grand Turk. There are no stores that stood out to us.
· Product/Service Sourcing – Our product will be made by us, with all-natural ingredients. We will be sourcing our ingredients will be grown, but some product will be bought both locally and online. We have chosen suppliers that have an exceptional reputation for reliable products.
· Graceway IGA, Sunny Foods and Smart
· Amazon
· Building Materials Do-it Center
· Inventory Management – N/A at this time
· Warehouse and Fulfillment – N/A at this time
· Future Product/Service – In the future Scrumptious Suds will seek to provide more skin care products, that will help to improve and make the bath/body soap a much more enjoyable experience. We will also be offering an online store service on our Instagram Page. We plan on expanding our business to customers across the various islands.
MARKET ANALYSIS
Industry Analysis – From our research we saw a trend in which we noticed that 75% of consumers used skin products to keep their skin healthy and 52% used the products just to feel good about themselves. In contrast, we found that 14% used skin care products to feel younger, 20% use just for the scents and 18% were motivated by the desire to look attractive. The skin care industry is in the midst of a revolution. There has been a major shift from appearance to health, from outside to inside. We also noticed, that consumers are most likely to purchase skin care products that are made from all-natural ingredients; 44% of consumers are more have a strong preference for ingredients which are supported by clinical research.
· Competitive Landscape – Scrumptious Suds will have no competitors since this will be the first business to have a variety of organic scented and cleaning soap made here on the island, however there are small stores that sells other cleansing products that will be willing to purchase Scrumptious Suds soaps. Being that the majority of residents purchase products off island once this is established there will be no need to purchase scented or cleansing soaps from international companies.
Product, Operations, Technology – Although, other personal care companies offer lotions, fragrancies, to complement the soap. Our main product will be the body/ bath soap. Some of the equipment we will use in our daily operations will include: soap cutting equipment, cash register, printer, computers.
Market Size – Though the market in the Turks and Caicos Islands is small, Scrumptious Suds will have an advantage since all products are handmade and not imported.
· Industry Participants –Depending on size and type, consumers in the Turks and Caicos Islands usually sell their scented soaps between $7 to $12. While online consumers advertise the same products between the prices of $5 to $15.
· Main Competitors –The Body Shop, is a British cosmetic, skin care and perfume company, that was founded in 1976. They started out selling just 25 products, now in 2020, they are more than 3,000 stores worldwide, selling over 1000 products. The Body Shop is one of the firsts cosmetic brands to fight against animal testing, back in 1976 and even up to this day. They produce their products with all-natural ingredients, which are locally sourced. This is we at Scrumptious Suds see ours self in the future.
Scrumptious Suds has no competitors; there is a possibility of our business being the sole supplier to variety stores, spas and hotels in the TCI that normally import a small amount of soaps. However, the spa brands are sold almost exclusively at the spas they are associated with. This close affiliation provides a validation for the products, but limits their ability to achieve a wider market distribution. Whereas our store will be selling to individuals, shops and eventually to hotel and spas as our company will grow.
· Market Segments – Our main targets are female ages 16 plus. Consequently, females would be more attracted to this product because they are more self-conscious about their bodies and appearance than men. We will also target local variety stores.
· Market Tests – From our research, there are more self-care products needed, especially in the Caribbean. To explain, in the Caribbean it is warm and sunny all year round. With this in mind, the skin has to be cared for and protected from continuous exposure to the sun.
· Target Market Segment Strategy –
The tourism market is immense, and it is only growing more and more in Grand Turk. Under those circumstances, a booth at the Grand Turk Cruise Center will be open to sell to tourist. We selected this target market because our company will be making local handmade soap and will give consumers the ability to really be immersed into the culture.
Tourist, as well as other consumers will gravitate towards our business because we offer them an opportunity to experience a healthy, clean, and refresh skin at a reasonable price. Also we will provide them with a different style of customer service. To show and appreciation of their purchase, pictures with customers will be place on the wall and also on the store Instagram page. We know that tourists visiting the island will give reviews and come looking for more freshly flavored scented and clean soap. So our two main targets are end users and resellers.
· Market Needs – From our research, our younger audience of consumers prefer a skin care product which reduces acne, and our more mature audience are attracted to skincare products that offer anti-aging treatment, as well as a product that can nourish the skin and keep it healthy. While tourist is looking for an indigenous product.
· Market Trends – We have found that consumers are more focused on their face before any other part of their body. They are using all organic facial creams to reduce acne, whether it be a mask they made themselves or a purchase one from the store
· Market Growth – From our findings we have noticed that a lot of skin care ideas are originating from the Eastern-side of the world (Japan, China, etc.) For example, the charcoal face masks, originated from Japan and then later evolved to the USA and then to France. However, some countries in Europe were the first to experiment and bring out the benefits of using all-natural ingredients.
· Positioning /Location – Other than the Grand Turk Cruise Center, Scrumptious Suds will position itself as an outlet, selling all-natural, handmade scented soap operating in Barbie Lightbourne’s Complex on front street, which is a commercial area with high density of professionals and a fluctuation of tourists, especially on cruise ship days.
·
Distribution of the goods: Our product will be sold at our location on Barbie Lightbourne’s Complex, front street, Grand Turk as well as from a booth at the Cruise Center. We will provide a delivery service for our local customers to ensure customer satisfaction.
MARKETING STRATEGY & IMPLEMENTATION
· All products are natural and self-made.
· Have an app where people can place their order and pay online
· Offers a delivery service to our customers
· Members of the organization are well-educated and has a wide knowledge on the product.
· Our store will be very-unique and creative.
· Strong accounting and marketing skills.
· Our product might be difficult to promote being that we are a small organization.
· High startup costs
· Competition within the market
· Can be difficult to source all ingredients locally.
· For now, we are selling just one product which is our soap
·
· Potential to expand
· Create other products, such as candles, body lotion, scrubs and fragrances.
· Create an online store.
· To gain profits within the market and the opportunity of delivering.
· Distribute our products to other retailers for resell.
· More people opening up skin care companies
· Consumer needs and wants might change.
· Not enough nearby parking
· Strategy Pyramid
· We plan on developing a product that functions as intended and represents an affordable price to the consumer.
· Develop a team that is dedicated, talented and understands the concepts of the brand.
· Advertising will be focused on the benefits of our products.
· Further enhance our image with the consumer by targeting prestige women 18 and older, variety store and tourist.
· Unique Selling Proposition – Soaps by Scrumptious Suds stands out because our ingredients are all natural. All ingredients are sourced locally in our beautiful islands.
· Competitive Edge –Scrumptious Suds competitive edge is how flexible we are. We are able to develop different kinds of soaps, all while still keeping it natural.
· Marketing Strategy and Positioning
· Positioning Statement – Scrumptious Suds is a unique, creative skin care company, which offers a variety of different soap, with a wide selection of scents, and even shapes.
· Pricing Strategy – Scrumptious Suds prices are affordable to all persons. Our prices are depending on the size of the soap you are willing and able to buy. T soap sizes range from small to large.
· Promotion and Advertising Strategy – Most of our advertising will be done through social media, flyers, radio, business cards and of course, word of mouth.
· Online Advertising – Scrumptious Subs will be advertising regularly on popular social media sites, such as Instagram. This method of advertising is more cost effective than traditional print advertising. It also allows us to reach a wider audience.
· Website – N/A at this time
· Marketing Programs
Develop a packaging and labeling system that is attractive and communicates the quality of the soap.
Letting customers test our products.
We will provide customs with small test sample so they can experience the fresh and unique feel of our soap.
· Sales Strategy – Scrumptious Suds will hire employees that fit our image and lifestyle. We will ensure staff are fully train and capable of selling the product to customer.
· Sales Forecast – Yes! It is true, we are a new business, but as entrepreneur’s our intension is to ensure that sales at Scrumptious Suds will grow as the business grows. To encourage employees to make sales. We intent to run an employee sales contests. The employee with the highest amount of sales will receive a bonus. Also all staff will be awarded training in customer service to ensure improvement. The sales contests will emphasize high margin items and cross selling.
· Sales Programs – All staff will be train by the best in house trainer or an online service that provides a platform using multi-channel user friendly retail management systems. This will help our employees to be more organize in the day-to-day operations of the business
· Legal – Scrumptious Suds is a partnership company, owned by Katrina Been, Sharmel Francis, Shaineisha Skippings Aisha Thomas and Kamula Williams. This company will be formed in Grand Turk, Turks and Caicos Islands.
· Milestones – N/A at this time
· Exit Strategy – In the event Scrumptious Suds shuts down, the partner settled on two option. Because the partner would like to sell within a time frame.
The first option: After assessing the overall cost of the business all assets will be sold at an auction. Second Option is to sell the business for at a value covering all costs applicable. The purpose of this is to get the highest value for money.
ORGANIZATION & MANAGEMENT
· Organizational Structure – Scrumptious Suds will be a partnership, owned by Katrina Been, Shermal Francis, Shaineisha Skipping Aisha Thomas and Kamula Williams
· Management Team- Shermal Francis has four years of experience in the body and beauty product industry. He has worked as a Head Product Sales Personnel for world renown Red-lane Spa. He has experience supervising a staff and getting their best performance. Shaineisha Skippings have great experience in the banking/Financial Sector which is a vital component of the business. Aisha Thomas has years of Customer Service experience which will be a very important fact in ensuring this venture is possible.
· Management Team Gaps- Shermal, Shaineisha and Aisha will fill in the gaps in reference to book-keeping, payroll and inventory. Scrumptious Suds will rely on its Point of Sale System to account for its daily transactions and reports.
· Personnel Plan- Initially Scrumptious Suds
will hire two (2) Production Staff and 1 Product Sales Personnel, on year 3, the company will anticipate hiring a part-time Sales Personnel.
Scrumptious Suds Organizational Structure
Management
Human Resources
Manager
Finance Manager
Marketing Manager
Delivery Man
Soap Maker
Sales Officer
Customer Service Rep
FINANCIAL PLAN
Scrumptious Suds is a new business and in order for it to thrive, our startup capital will be $50,000.00. Our five (5) partner will invest the amount of $30,000 which will come from personal saving. We will also apply for a grant from TCI First $20,000.00. The $20,000 will cover delivery car, computers, cash register, printers, business license, rent, gas and raw materials. The remain will be used for advertisements, wages insurance, internet, light, water etc.
The following topics cover the financial plan for Scrumptious Suds. The tables show annual figures.
· Important Assumptions
· In general, most soap/skincare businesses have an 80% gross profit margin
· Moderate ramp- up in staff over the 3 years’ forecast
· Sales are cash basis – nonaccrual accounting
· Start-up Costs
Start-Up Expenses
Amount ($)
Insurance Premiums
$2000.00
Rent Deposit
$1000.00
Supplies
$4000.00
Advertising & Promo
$1000.00
License
$200.00
Other Initial Cost e.g. water, light etc.
$3000.00
Cash in Bank
8,800.00
Total Start-Up Expenses
20,000.00
Start-Up Assets
Leasehold Improvement
$1000.00
Equipment
$2800.00
Furniture & Fixtures
$5000.00
Vehicle(s)
$2500.00
Total Start-Up Assets
$12500.00
· Source & Use of Funds
Source & Use of Funds
Amount ($)
Owners Injection
$30,000.00
Commercial Loan
$20,000.00
Total Source of Funds
$50,000.00
Fixed Assets
$12500.00
Operating Capital
Total Use of Funds
· Person Plan
Personal Plan
Annual
Year 1 Year 2
Year 3
5 Share Holders
$150,000 $150,000
$168,000
2 Sales Personnel
$ 26,400 $26,000
$31,200
1 Delivery Personnel
$13,200 $13,200
$15,600
Total People
8 8
8
Total Payroll
$207,600 $207,600
$214,800
PRO FORMA PROFIT & LOSS
Year 1
Year 2
Year 3
Income
Total Income
Total Cost of Sale
Gross Margin
Expenses
Payroll
Business Expenses
Rent
Advertising
Legal & Accounting
Supplies
Travel
Utilities
Depreciation
Total Business Expense
Net Operating Income
Net Profit/Loss
APPENDIES
QUESTIONNAIRE
for
Scrumptious Suds
Name: ________________
Gender: _______________
How old are you: ________________
Profession: _______________
Income: ______________
Area you live: ______________
Which soap you prefer for bathing?
a) Life boy
b) Dove
c) Pears
i) Any other____________________
Why you use soap for bathing?
a) For cleaning
b) To keep your body fresh and fragranced
c) To prevent dryness/ oiliness
d) Any other ________________
Would you like to prefer different bathing soaps for face and body?
a) Yes b) no c) sometimes
Do you like to use anti biotic soaps?
a) Yes b) no c) sometimes
Which soap you use?
a) Dove
b) Axe
i) Any other____________________
Are you satisfied with your bathing soap?
a) Yes b) no
Which is the best soap according to you?
a) Life boy
b) Dove
c) Pears
d) Any other____________________
How many times a day you bath with bathing soap?
a) Once
b) twice
c) more than 3 times
How you will feel after bathing with your bath soap?
a) Clean
b) Fresh
c) Any other _______________
Do you bathing soap contain any fragrances?
a) Yes b) no
Does your overall family use same bathing soap?
a) Yes b) no c) sometimes
How many times a month you buy your bathing soaps?
a) Once
b) twice
c) more than 3 times
Flyer
for
Scrumptious Suds
Business Card
For
Scrumptious Suds
Invoice
For
Scrumptious Suds
INVOICE
Date
Invoice #
4/20/2020
001
CUSTOMER
Walk-in
Items
Description
Quantity
Rate
Amount
23457
Mojito Glycerin Soap
2
$9.00
$18.00
2353
Scrumptious Oatmeal Stout
4
$7.00
$28.00
1246
Beehive Thai Tea
2
$7.00
$14.00
1011
Scrumptious Virgin Coconut
6
$8.00
$48.00
1175
Rose City Martini
3
$7.00
$21.00
1092
Sweet Margarita
2
$7.00
$14.00
Total
$143.00
MonthlyProfit
Series 1 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 11 Month 12 -8000 -7000 -4000 -1000 4000 6000 8000 9000 11000 12000 10000 . Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 11 Month 12 . Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 11 Month 12
Yearly Profits
.
Year 1 Year 2 Year 3 60000 75000 80000
25
GROUP PRESENTATION OF BUSINESS IDEA
EVALUATION FORM
NAMES(S) OR PRESENTER(S): _____________________________________________________________________
TOPIC: _______________________________________________________________________________________________
OPENING
1
2
3
4
5
Made the necessary introduction of self and /or others
Immediately captured interest and convinced me to pay attention
Clearly stated what the business idea is about and how they came up with it (background)
Section Total
/15
ORGANIZATION
1
2
3
4
5
Ideas and information presented in a logical order
Business idea clearly defined (organized into comprehensible parts or sections)
/10
CONTENT
1
2
3
4
5
Provided clear explanation of business idea
Mission statement of business outlined
Uniqueness of idea
Information was up to date and “cutting edge”
Information was geared towards the industry students selected
Section Total
/25
DELIVERY STYLE
1
2
3
4
5
Presenter(s) was/were well prepared
Did NOT seem unfamiliar with project
Clarity in presentation
Section Total
/15
DISPLAY(SOCIAL MEDIA) OF BUSINESS IDEA
1
2
3
4
5
Booth is attractive with products neatly displayed (dress/appearance group members appropriate)
Product samples/Service presented ( display of product/service described was true representation of product/service)
Group members were able to answer questions asked about product/service
Products were clearly labelled with appropriate logo of business and “ TCICC Business Project 2020” attached
Section Total
/20
CLOSING
1
2
3
4
5
Product/Service displayed seemed to tap into a niche
Major points/results and their importance were emphazised
Section Total
/10
TOTAL GRADE
/
OVERALL COMMENTS (overleaf)