INTRODUCTION
a) Overview of the proposed business idea
Fragrances and Soap making is a luxury and people think that for an enriching experience, one must spend lavishly. However, the new organic brand Rose would bring the royalty and uniqueness at a affordable range. This new idea for this company is to sell Rose- which is new fragrant soap. It will be manufactured in different sizes, mainly 3 sizes and 5 fragrances that can be customized as per the client’s needs later. This will be completely made up of organic ingredients and free of any inorganic solvents.
b) Brief explanation of the personal expertise in this area; why will it be a success?
The company’s organogram has Director, COO and 2 sales representatives and 1 social media strategist. The panel has worked in the beauty segment of minimum five years and now would like to apply the experience, knowledge and insights in selling the products. The Director has studied the art of choosing the fragrances which is completely natural and is environmental friendly, their aim is to promote sustainability with recycled packaging and the job will be done by COO who is a Polymer enthusiast and worked in this sector for more than 8 years now. The other team members are also good in their pitch and networking and thus, sales would be decent. Also, the content developer is a renowned person having a great followers on social media and thus, helping this company to reach the desired audience. Here the success ratio is definitely high as each member is a known person and has great expertise in the sector to attain success in the beauty sector (Armilawati, Kusuma and Agung, 2020). The success depends upon the quality and the panel is focused on it with 10 % dedication to make it affordable as well as different.
c) Brief discussion of the gap in the market that is aim to fill
The age gap is mainly fetching the attention in the target markets. The people that reside in the chosen locality are of Indian origin, approximately 40 % and following the Hinduism religion as the largest. The ideology might be to save money for future or on studies and not on beauty products. However, the company is trying to generate awareness for quality, affordability and environmental friendliness. It has also been seen that the UK official data that has a dipping tax gap, approximately $39 billion in 2018-19 which reflected upon the balance between actually paid and the tax expected amounts. Moreover the revenue department of UK collected £628 billion in 2018-19, that constitutes about 95% of the expected tax by authorities. With Covid 19, outbreak on the tax gap will be likely to grow.
d) Location of your proposed business and justification for the choice
Wembley is chosen which is nearby London and has a great spirit of living a fulfilling lifestyle. This location has Central Square which used to be considered as one of the former shopping centres on High Road (Hoskinsand Preston, 2018). This place led the path of high end fashion with sensibility of being mediocre in sending powers. Wembley Park Market is well known to welcome the new products for the shoppers who are looking for something diverse. The people living here are belonging to BAME background that are progressive, very active and have been vocal on saving the environment and being sustainable conscious.
e) Brief outline of the report content and structure
The report content is simple and monotone in nature. There will be usage of simple terminologies and other concepts that will be helpful in gaining an understanding about the patterns, habits and on-going trends in the beauty sector. London has been touted as the biggest city in terms of fashion and beauty and many brands run towards it to validate their brand names.
The structure is also formal and clearly follows a sequential order. Firstly a brief overview about the business idea will be given. Further, the location, type of product, business expertise, company’s background etc will be explained to make the readers understand about the business ideas to be adopted. Next part will be the main body including pestle analysis, porters’ analysis and justification for choosing a specific location. Lastly a brief summary of the factors discussed the major opportunities and threats that could have an impact on the progression of the project / launch of the product.
MAIN BODY
A) Current external environment relevant to the proposed business
Pestle Analysis is the tool that helps any business in reaching the objectives effectively and upgrades the strategic management by assessing the macro environmental factors. It is an acronym and stands as follows:
Political Factor: The government is trying to develop better policies for streamlining the business doing after Brexit. The management of this company must follow all the policies, regulations, rules and other necessary requirements while developing the business agendas and conducting marketing of its products. The tax policies, surcharge, additional costs etc must be adopted by the company. England is still under the influence of Royal Family and something that could be used to reach the markets in various regions (Bornmann, Haunschild and Adams, 2019).
Economic Factor: This Company new location is in one of the most developed areas of England. The management of capital costs or investors since the inflation rate of pound is now clearer due to Brexit. The agenda is to make the economic growth as per the economy of the country. The stability that is established while following the economic rate and study its overall impact will be effective. After Brexit, there is a huge clarification about the ways the market is going to respond and follow the market trends.
Socio-cultural Factor: It is mostly evident that women and young girls from any geographical location are becoming beauty conscious. They now look for something natural, and free of any pollutants like sulphates, parabene etc. The population in UK are fortunate to have a vast exposure and a new company like this can tap the opportunities and can launch number ofproducts. The climatic conditions also make it helpful in launching the products as they are mostly organic in nature. Additionally, the population is mix of Asian, European, etc that could diversify and help the company to connect.
Technological Factor: The marketing team are now using the online platforms more vigorously and the content development has become the tool to connect with the target audience. This company can focus on bringing awareness by using social media platforms such as instagram, facebook etc. and the renowned influencers to get a head start (Shtal and et.al., 2018). Moreover, the management can use e commerce sites to get extra attention in reaching the customers fastly and economically. For instance, the management can upload videos on tik tok, or reels that are available on instagram to make a customer base for their products.
Legal Factor: It is one of the factors in which the company must adhere to all the policies in starting a new business or starting production in a particular region. This company must try to be unique and avoid any plagiarism of content when promoting online and also any other such fraudlent act or any other scams. The onset of social media and other global brands have entered the markets and have impacted the local competitors and thus, the legislative framework is strict in the adherence of the customs and other clearance in the beauty sector. This company always tried to ensure to comply with the laws and policies to satisfy.
Environmental Factor: Corporate Social Responsibility (CSR) is making the right changes at the corporate level and the companies must be cooperative in fulfilling all the conditions with strict vigilance. In this, this chosen company must focus on maintaining the quality of eco friendly products and can also conduct charitable events to generate awareness about social based (Kolios and Read,2013). This will help in fulfilling the duty that is important in making the environment better, and sustainable. Additionally, the products must also be free from any animal based ingredients and should be 100 % free from any such type of pollutant.
B) Discussion of the competition; direct/indirect competition might be and what your competitive advantage will be
PORTER’S Five Forces Analysis is considered here to know the overall the competitiveness of any industry. The company named as Rose and will be into making of fragrances and soaps must have clarity in taking the ongoing advantages and come out as a budding company.
- Competitive rivalry or competition: (strong force): There will be availability of several other brands at both regional and national levels. Such strong forces would put stress on the company to establish a reputation and create a brand loyalty.
- Bargaining power of buyers or customers: (strong force): It has been observed that the beauty culture in UK or any other European country is undergoing transformations. With strong forces, the new brand would require proper platform to connect with clients in the chosen location.
- Bargaining power of suppliers: (moderate force): This aspect is applicable in moderate levels. The raw materials must be affordable, competitive and high quality to give a decent product (Chanavatand Desbordes, 2017). With moderate forces, there are chances of mutual credibility with the suppliers on using approaches for profitability.
- Threat of substitutes or substitution: (strong force): The customers, especially women are now using the different website to conduct comparative analysis and read about the ingredients etc for better knowledge gain. With growing popularity of online shopping and vast availability of different brands for a single product have spoiled the purchasing habits of clients and now the switch from one product to other has become easier.
- Threat of new entrants or new entry: (strong force): In this globalization time, there are good chances of establishing new businesses for existing product portfolio. This is possible by being creative, honest and environmental friendly. The pricing strategy must also be critical in making decisions.
C) Discussion on target market and a justification for this choice
The target market as mentioned is Wembley and is selected due to its diversified ethnicity and great vicinity to several locations for shopping. At each visit to Wembley Park Market, there are many merchants and eco-friendly, products to be offered. Such sustainable shopping in the Wembley Park’ heart with supermarkets, local shops and restaurants like Boxpark Wembley is making it as prime attraction. The people are open to newness and are always welcoming. There is a modern twist by making the market heritage of Wembley accessible to everyone like business owners, designers or artisans and also promote community welfare for small businesses. Additionally, there is also a shift of shopping from north and east to the more recent development of London Designer Outlet. This will give an edge over the growing businesses, especially the small and medium based companies like the chosen one.
CONCLUSION
a) Bring together the ideas of your report; does the PESTEL analysis make the proposed
idea viable?
Yes, the Pestle analysis assisted in knowing the socio-cultural aspects, the right technology to be adopted, the legislative frameworks, the new regulations after Brexit, the current political scenarios and lastly, the environmental factors to keep in mind while fulfilling the objectives of the company. This has paved the path of making the idea of this business as original and unique to gain the attention of the customers. Henceforth, it is viable option to always complete a macro environmental analysis.
b) What are the main opportunities identified that is intend to take advantage of?
The tough competition and ongoing changing patterns of purchasing has deeply affected the market trends. Moreover, the customers are also becoming aware and choosy while buying a single product. The USP must be creative enough to garner their attention instantly and for larger time frame. Thus, they must implement some innovative ideas or concepts to gain clients and investors’ attention (Rogersand Davidson, 2015). They can use some partnership with instagram influencers or also connect with clients by giving some special discounts and offers.
c) What are the main threats to be aware of?
With rise of ecommerce and easy availability of many products or brands on same platform has brought unnecessary pressure to be different, yet affordable with good quality. It has made the customers to choose from a wide range of products and with Google reviews and clear description of ingredients that have been put into. Such a constant pressure and ever changing buying habits shown by the clients are keeping the companies to be most competitive and evolving. Thus, the branding and marketing ideas must be new, fresh and must be connected easily with the women and girls
d. What are the next steps for your business plan?
The next steps would be to promote this brand via online platforms. Also, there is possibility of partnership with few e commerce websites. This would be beneficial in expanding the geographical regions and also reach out to more diversified group of audience, including women from different age groups.
It is notified that the London’s only outlet centre is located at the London Designer Outlet which is situated at Wembley Park. Because of this, the new company’s proposal will be effective as 5.8 million consumers can be easily influenced on annual basis. Additionally, this is very promising location to attract the attention of approximately 10.4 million people within a 60 minute drive.
REFERENCES
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