Feasibility Study on Whitening Soap Essay
Feasibility Study on Whitening Soap
I. EXECUTIVE SUMMARY
With today’s generation being very conscious of their skin, both men and women are faced with the problem of choosing different kinds of whitening products.
As students that are looking for other ways to earn money, our group has come up with the idea of making a whitening soap that not only serves its main purpose of whitening but also give the users the satisfaction of using soaps that have great scents and are appealing to the consumers.
It is a fact that the majority of the consumers of whitening products are from the teens and young adults that seek to nurture their skin and complexion.
Our product clearly has an advantage compared to other whitening products because first it is very appealing to the consumers both men and women of all ages because of its unique color and the selection of different scents.
Since the recent trend in beauty products in today’s market is widely on whitening and anti-aging, and the fact that people are very conscious with their appearance, has constituted to the advocates of this study to choose the following target segment.
Middle-aged women that are beauty conscious: This group of people is usually those that have adequate income to purchase beauty products. They are also the ones that prioritize in preserving their appearance since they are the ones that are starting to age.
Dark skinned people: These are the people that wish to have a lighter skin
tone and want to achieve their goal instantly.
II. BUSINESS PLAN
A Marketing Strategy
The biggest challenge that will be faced by selling our product is that we have many competitors in the beauty industry and many of them are already established companies and sellers.
The primary business target markets are the Universities and Banks that constitute the major clients of the beauty industry.
B Product Strategy
Since the current market is already made up of many suppliers and sellers of beauty products most specifically in whitening, we have made our product more appealing in terms of its colors and shape that other products don’t have.
DETAILED COST ALLOCATION FOR 3 YEARS
Box for repacking15,800
With this capital requirement, we will be able to buy 45 pcs of soap for our
group and we will be able to repack them and sell them for 120 per pc.
If everything goes well, we will reinvest the money we have earned for more products in order for us to generate more income.
Forecasted Net Income
Cost of sales 182,250
Other Expenses 26,300
Gross ProfitP 54,700
*This forecasted net income is income for three years.
Recommendation and Findings
The fact that our group chose to buy and sell instead of manufacturing our own product, we will be able to generate income with just a little amount of capital. We will also find it easier in the field of buying and selling because we will only order products and repack them only when clients will be ordering from us and thus we will not be holding products for long periods of times before selling them.
We therefore conclude that investing 5,000 in this industry will prove to be beneficial for us because it proves that we can generate profit from it.