BUSINESS PLAN FOR ANGELZ BEAUTY CENTRE
- Key points in the business plan
- Marketing strength based on affordable prices
- Selling of wide range fashionable beauty accessories
- Business selling beauty accessories online through a website and social media
- Description of the business
Angelz Beauty Centre is a business enterprise that was established two years ago to sell beauty accessories through online marketing platform. The enterprise targets both ladies and men who could wish to buy beauty accessories for their loved ones during special occasions or as gifts.
- Organizational Background
- Establishment of Angelz Beauty Center
Angelz Beauty Center was an idea conceived out of love for beauty products and the popularity of online makerting through social media worldwide. The five ladies, Tracy, Taliah, Lindah, Rael and Viola, who started the business in August 2010 were in their final year at the University when they realized that they were spending more time moving from shop to shop in town whenever they needed to buy their beauty accessories. Having undertaken a degree course in e-business, the five ladies decided to establish Angelz Beauty Centre to meet their needs and those of other potential customers who could not have time to do physical shopping but could be glad to purchase their beauty products along other items online.
Angelz Beauty Center is owned in equal shares of 20% by each of the five ladies who started the business two years ago. As the business grow, it is anticipated that the ownership shall be extended to other interested stakeholders as a growth strategy in raising capital for expansion in future.
- Range of Products
Angelz Beauty Center specializes in a wide range of beauty accessories ranging from bracelets, necklaces, rings, ear rings, belts, wrist watches, perfumes, headgears, among others.
- Marketing plan
Bose (2002) defines marketing as all activities necessary to determine the needs and wants of consumers and to supply goods and services to satisfy these needs and wants. Any business that intends to succeed must make deliberate efforts through a marketing plan so as to ensure sustainable growth of the business and it’s profits.
The proposed marketing plan for Angelz Beauty Center will be anchored on four marketing activities commonly referred to us the marketing mix:
- Product Mix
Currently, the major products are earrings and bracelets. There is need to expand the product range so as to meet the wider market reached by the website marketing and satisfy the changing customer preferences.
Angelz Beauty Center’s strength is anchored on selling it’s products at an affordable price. Building up a favorable price image while keeping the average margin profits must remain the ultimate strategy at this point in time. This will enable the firm to have a wider market coverage including that of low income earners doing shopping online.
- Promotion Mix
Currently, Angelz Beauty Center does its marketing through its website www.angelzcentre.com. This means has been effective and less costly. There is however need to diversify to other online platforms such as social media like Togo and facebook.
Distribution is considered a major activity in ensuring that customers get their items once they have made their orders. Distribution accounts for a major single expense at Angelz Beauty Center. The firm will therefore enter into partnership with it’s major courier service providers so as to get discounts and ensure secure delivery because they provide a link between Angelz Beauty Center and it’s customers.
- Operational plan
- Financial plan
- Source of financing
The initial source of funding for Angelz Beauty Center was an equal contribution of SAR 10,000.00 from the five ladies who started the business. The money was out of savings made during the final year in college and gifts from family and friends. The profits have always been reinvested into expanding the stock as the business grows. Whenever there is need for more funds, the business applies for credit facilities in form of bank overdrafts and short term loans.
- Expected Selling prices
Price and quality have always been the strengths of Angelz Beauty Center. The business obtains high quality beauty accessories at an affordable price which are then sold at an extra cost of between 15-25% for profit. The expenses of running the business have been minimal resulting to high profits even when items are sold at a relatively low prices compared to other competitors.
- Expected Expenses
The running expenses of Angelz Beauty Center are quite minimal. This is because, unlike other businesses with a physical store and showroom, Angelz Beauty Center displays its products through a website, online social media free of charge and therefore paying no rent, electricity and water bills. The following is a summary of expected annual expenses
- Risk Analysis
Angelz Beauty Center does not exist in isolation. Like any other business, it faces risks from within and outside. Internal risks are minimal and they can be managed so as not to interfere with the running and growth of the business. This would include risks such as limited distribution network to cover the same potential market reached by those who access the firm’s website and social media platforms, lack of experience to run this business when compared to similar firms established given that it is only two years old. Limited financial resources would also be a risk in the firm’s growth as well as existing of the founders of the business.
On the other hand, the external risks which are often beyond the control of the firm would include established competitors with a wide market coverage that makes penetration for Angelz Beauty Center difficult.
Bose, C. D. (2002). Principles of Management and Adminstration. New Delhi.
Mc Carthy, J. & Pervaleut, W. (1994). Applications in Basic Marketing: Clipping from the Popular Business Place. Massachusetts: Irwin Inc
Kotler, P. (1984). Principles of Marketing. New York: Prentice Hall