business plan project miffy cosmetic agency

to produce a variety of quality beauty cosmetics.Besides the above reasons, my passion and interest in skin care also made me form theidea of opening a natural cosmetics agency to serve

THUONGMAI UNIVERSITY

INSTITUTE OF INTERNATIONAL TRAINING

BUSINESS PLAN

PROJECT: MIFFY COSMETIC AGENCY

Name: 05 – Hoang Thi Kim Lien

Table of Contents

INTRODUCTION 2

CHAPTER 1: PROJECT OVERVIEW 3

1.1 Reasons for choosing to open a cosmectic agency 3

1.2 Business motivation 3

1.3 Proposed location and infrastructure 3

1.3.1 Location 3

1.3.2 Expected infrastructure 3

1.4 Product Positioning 4

CHAPTER 2: MARKETING PLAN 4

2.1 Market analysis 4

2.1.1 Customers 4

2.1.2 Supplier 4

2.1.3 Market demand 4

2.1.4 Market trend 4

2.1.5 Target market 6

2.1.6 Competitors 6

2.2 Marketing 6

2.2.1 Price policy 6

2.2.3 Promotion 6

2.3 SWOT Analysis 7

CHAPTER 3: FINANCIAL PLAN 7

3.1 Financial plan 7

CHAPTER 4: HUMAN RESOURCE PLAN 7

4.1 The store's organizational structure: 7

4.2 Recruitment and staffing plan 8

CHAPTER 5: RISK 9

5.1 Potential dangers 10

5.2 Solutions 10

5.3 Plans to exit the market 10

CONCLUSION 11

Vietnam has been increasingly integrating with the world, so the understanding of beauty has been being expanded and learned In addition, there are many cosmetic sources imported into Vietnam, so people will have more choices As society develops, the demand for beauty by arriving at beauty salons increases, so the use of cosmetics

to maintain beauty is more and more critical Its effect extends beyond the aesthetic and has an indirect impact on many other elements It is a potential product that must

be used properly According to experts, the Vietnamese cosmetic sector has been rapidly expanding and will continue to develop in the next years Aside from the benefits, it is hard to ignore the problems There are several possible market elements that might have a negative impact on product costs in general, including cosmetic lines Especially with cosmetic products, there is a close relationship with the health of consumers

CHAPTER 1: PROJECT OVERVIEW 1.1 Reasons for choosing to open a cosmectic agency.

Today, as society and the economy progress, people's incomes rise, and the awareness

of how to maintain beauty grows through mass communication methods such as radio and online publications As a result, everyone's desire for beauty grows, especially women

Currently, with the increasing quality of life, the general trend of people is to use cosmetics with natural ingredients Cosmetic companies have been actively building for themselves safe and quality brands, especially taking advantage of beauty ingredients available in nature such as essential oils of herbs, fruits, milk, cucumbers, turmeric, seaweed, aloe vera, honey, to produce a variety of quality beauty cosmetics

Besides the above reasons, my passion and interest in skin care also made me form the idea of opening a natural cosmetics agency to serve everyone's needs

1.2 Business motivation

Nowadays, people's need for self-care has been increasing day by day Therefore, cosmetics has been gradually becoming familiar consumer products to people of all ages and classes

I will choose the location to set up the store at Ngo Gia Tu Street, Long Bien District, Hanoi This is a wide road with 2 lanes, there are many apartments nearby, it is also near schools, markets and companies as well as offices

Name of the store: Miffy Cosmetic

Slogan: “Where nature meets beauty”

1.3 Proposed location and infrastructure

1.3.1 Location

Address: Ngo Gia Tu Street, Long Bien District, Hanoi

Advantages: Wide sidewalk, lots of people walking, near apartments, companies and offices

Disadvantages: The cost of renting space is usually high

1.3.2 Expected infrastructure

The store will be around 20m2 in size, with a length of 5m and a width of 4m I will put up a small cashier counter on the left, near the door, so personnel can readily approach clients The middle space is located at the entrance and will house sample items as well as a mirror design for clients to try out the product Two product display sections are located to the left and right of the middle area I will utilize cosmetic shelves and organize things by function so that clients can easily discover them In addition, I also use white light system to highlight products as well as help customers have the best experience Going inside the left corner of the store, there will be the toilet, designed not too big but still ensuring aesthetics In the rightmost corner, there will be a small warehouse to store enough items to suit the demands of customers

1.4 Product Positioning

Products with clear origin and guaranteed product quality; anti-counterfeiting Various items to meet the demands of clients: facial whitening, facial cleanser, whitening serum, sunscreen, lip balm, concealer,

Products are official imports

Several cosmetic product lines are available on the market today, including well-known names such as Innisfree, Simple, Laneige, Mamonde, They have excellent sales and have earned the trust of their customers Therefore, the level

of competition is very high, requiring my store to create product differentiation

CHAPTER 2: MARKETING PLAN 2.1 Market analysis

2.1.1 Customers

Potential customers that I want to target are women between the ages of 25-40 Customer advantages and disadvantages:

Advantages:

+ They have a stable income

+ They have a need to use cosmetics for a long time

+ Price is not their concern

+ They understand the importance of cosmetics for beauty

Disadvantages:

+ Demands and requirements for high-product quality

+ They notice and care about the store's services

2.1.2 Supplier

My supplier will be Ricciment International Company Limited This is a cosmetic brand from Taiwan with cosmetic products that are natural and mild for eveyone’s skin

2.1.3 Market demand

Nowadays, people's demand for cosmetics has been increasing, thus there are many different types of cosmetics on the market To attract customers, I must first

understand their desire and then capture their tastes in order to satisfy them in the best way possible

2.1.4 Market trend

Since ancient times, people have known to whiten skin with rice water and many ways

to beautify with natural products However, as the market has evolved, beauty cosmetics made from chemicals have become popular due to their ease and durability, and they have steadily dominated the beauty industry

Until the last decade, people have gradually discovered many negative sides of cosmetics extracted from chemicals in long-term use to general health We have given greater attention to the important and healthy benefits of natural skin care products and cosmetics after a period of overlooking accessible natural components

The advantages that my product brings:

+ Totally natural: The product is extracted from fruits, plants, minerals, … + High skin compatibility: Suitable for many skin types, so customers will easily find the right product

+ Product variety: Customers can find cleansers, sunscreens, moisturizers, toners, lipsticks,

+ High-quality products: Although the price of the product may be slightly higher, in return, the value that the product brings will be great

+ Not tested on animals: As a plus point of natural cosmetics in terms of environment and human life

+ No heavy metals and plastic chemicals

Factors affecting the development trend of the market

Economic factors:

People's income is a factor affecting customers' demand for solvency The necessity and desire to be able to pay corresponds to their income In truth, everyone has a natural urge to beautify oneself, but whether or not that need is met is determined by finances

If the income is high, in addition to paying for the usual needs in life, consumers are still able to satisfy higher-level needs, for example, the demand for cosmetics The market demand for cosmetic items will rise at that time In contrast, if the consumer's income is low, even if they have a need and want for the goods, they will not utilize it since the means to pay is not accessible Vietnamese consumers' income now comes from a variety of sources such as salary, saving interest and goods sales, Of all the above sources, the source from salary increases very slowly As a result, the influence of these

expenditures on the amount of demand and the structure of acquired items is quite modest Contrary to salary income, non-wage income for a certain part of the population is very large, and causes intense stratification in income as well

as consumption and shopping structure For things that are not in the category

of necessary consumer goods, such as cosmetics, the income element has a big impact on purchase decisions and hence influences market demand

Demographic and geographical factors:

These factors affect the cosmetic market because where there are more women, the demand for cosmetics will be higher Although men's desire for cosmetics has been growing, there is still a significant disparity between men and women Age is another factor that influences the desire to purchase beauty items such as cosmetics, which influences the consumption of various sorts of particular products Young people have a greater need for cosmetics than the elderly It is this difference that affects the product classification for each different market segment

Besides population factors, geographical factors also affect the cosmetic market In big cities, the demand for cosmetics is greater than in rural and mountainous areas Furthermore, because the city has a large number of cadres, employees, and government servants, their composition requirements are greater than in rural or mountainous areas where manual labor is concentrated Social factors:

Cosmetics is a beauty product, so it is influenced by cultural factors For example, light makeup is popular in Asia, but heavy makeup is popular in the West In Vietnam, makeup is often light and natural, with vivid colors In contrast, women in Korea and Japan frequently use heavy makeup, and the product color is generally dark These factors directly affect the cosmetic market and consumer demand for cosmetics

Political factors:

The political and legal environment have an impact on any product market The political environment includes: governance issues of government, legal system and circulars, directives, the role of social groups The evolution of these characteristics has a significant impact on and directly determines the business decisions of domestic and foreign firms In order to have a market with fast and stable growth, businesses need to carefully study this factor to have business orientation and development solutions in accordance with the law

2.1.5 Target market

The target market that I would like to target is Long Bien district, specifically Ngo Gia

Tu Street, Long Bien District, Hanoi This is a place with a dense population, many means of transportation, near the commercial center, small supermarkets, and bus stations There are many houses and apartments around, convenient for attracting housewives and office workers

2.1.6 Competitors

Co mem Homelab

Advantages:

+ Products manufactured by Vietnamese companies

+ Reasonable price, suitable for many objects

+ Diversity of product categories

+ There are many stores nationwide (19 stores)

+ Products with healthy, natural ingredients

Disadvantages:

+ Not known by many people

2.2 Marketing

2.2.1 Price policy

The policy for the sale of products in my store will depend on many factors such as: Importation costs: I will need to consider the cost of purchasing from the supplier, which includes the purchase price, shipping costs, etc Additionally, I need to ensure that my selling price is sufficient to cover all of these costs and yield a reasonable profit

Operating expenses will include space rental costs, staff costs, advertising costs,

…I also need to calculate them carefully to ensure a reasonable profit

Market and Competition Research: I must also research the prices of competing cosmetic dealers in the area to set the right price

2.2.3 Promotion

In order to attract customers and make them believe in the goods, communication through multiple channels is very important I will use online advertising and marketing methods to expose our brand and products to potential customers This may include creating engaging content about natural skin, sharing articles, videos, and product tutorials on our website and social media platforms Furthermore, because Vietnamese individuals spend a significant amount of time every day on social networking sites, I will explore placing advertising on Instagram or Facebook (and their Stories)

2.3 SWOT Analysis

Strength Weakness Opportunities Threats

- Convenient location,

comfortable space

- Products are diverse

and many types for

everyone to freely

choose the right product

for them, ensuring

quality products,

anti-counterfeiting and

imitation

- There is space for

product testing

- Newly established, so there are many competitors before

- Not known

by many people

- Little reserve

is not much

- Nowadays, many people are

in need of beauty

- The store is located in a densely populated area

- People prefer natural cosmetic products

- The cosmetic market has many brands and is highly competitive

- As a newly opened store, it is not known by many people, so customers are still not sure about the quality of the products

CHAPTER 3: FINANCIAL PLAN 3.1 Financial plan

Planned funding: 100 million VND

Out of 100 million, I will spend 60 million on operating the store and 40 million on importing goods

Store operating costs: 60 million VND

- Rent space: 10 million VND

- Buy shelves, cosmetic cabinets, LED lights, product nameplates: 20 million VND

- Salary and bonus for employees (2 people): 15 million VND

- Organize customer appreciation programs: 10 million VND

- Adhesive tape, bubble bag, packing box + taxes to be paid: 5 million VND Import cost: 40 million VND

CHAPTER 4: HUMAN RESOURCE PLAN

4.1 The store's organizational structure:

4.2 Recruitment and staffing plan

The store’s work breakdown table:

Table 4.1: The store’s work berakdown table

Store owner

Marketer (1 person) 9 a.m – 5 p.m College graduate or

above (major in marketing), with 2-3 years working experience Age: 25-40

higher (preferably accounting major), working experience

at least 1 year Attentive, careful, good

communication Age: 20-35

Job description of store employees:

Table 4.2: Job description of marketer

Job description: Collect, analyze and synthesize sales data to create marketing

reports Develop marketing communication program, promote image for the brand

Planning, implementing and measuring the effectiveness of communication, PR and advertising programs

Research market, customer tastes, competitors in the cosmetic industry to adjust or propose appropriate marketing solutions Plan, organize and manage seminars on beauty, cosmetics, Job

requirements:

Male/Female from 25-40 years old Look good

Good communication Education level: University or College graduate majoring in Marketing or related fields

Prefer to know English Experience required

University Degree or Degree of Associate (College) Health Certificate

Table 4.3: Job description of the sales personnel

Position: Staff

Advising customers on which cosmetics are suitable for their skin type

Create relationships with customers

Be friendly with customers Regular customer care

Good-looking appreance Have bright white skin, no acne Good communication Education: University or College graduate majoring in marketing or related fields

Prefer to be proficient in English Experience required

University Degree or Degree of Associate (College)

Health Certificate

CHAPTER 5: RISK

All factors affecting business may bring risks, in addition to sociocultural and market economic factors, there are countless other impacts Therefore, the potential risks in these factors can affect the business When I decided to start a business, I knew in advance that there would be some risks Therefore, to overcome those risks, it is required to have strict management in the business process and a dedicated and responsible staff for the job

5.1 Potential dangers

- Customer loyalty is readily influenced by psychological factors, as well as the harsh rivalry environment of various cosmetic lines with a variety of business models

- Customers and staff have disagreements

- Customers have some product difficulties, such as skin allergies, since they do not match some components in the product and do not inform the sales personnel quickly once

- Failed to attract customers due to ineffective marketing leading to insufficient operating funds

- Competitors spread inaccurate information that harms the reputation and quality of products