PROJECT REPORT ON COSMETIC

NAME OF THE ORGANISATION

GENTLE TOUCH CREATIONS

We care for you

OWNERS
MANISHA

PANTH
HIMANSHU

Proposed headquarter- Delhi

i. COVER SHEET
Cover sheet is like the cover page of the
book. It mentions the name of the project,
address of the headquarter (if any) and
name and address of the promoters.

ii. TABLE OF CONTENTS

EXECUTIVE

SUMMARY
THE BUSINESS
(a) The objective
(b) Brief history
(c) Form of ownership
(d) Name, Qualification of the owners
(e) Proposed Headquarters

Funding requirements
(a) Debt
(b) Equity
The market
(a) Description of product
(b) Comparative analysis
(c) Licensing agreement
The plan

(a) marketing plan

(b) operational plan
(c) organizational plan
(d) financial plan
The critical risk
The exit strategy
The appendix

III.EXECUTIVE SUMMARY
Gentle

Touch Creations is a start-up business

specializing in hand-made herbal products.
These products include herbal therapy packs,
soaps, Saint, oil,
eye packs, salves,
moisturizers, herbal bath bags, and bath powder.
All Gentle Touch Creations are made from herbs
that are either garden grown or gathered in local
fields or wooded areas when they are at their
peak of maturity and the concentration of active
ingredients is highest.

Herbal products have grown in

popularity with consumers over the
past ten years. Herbal products
industry exceeded 4.3 billion dollar
in sales last year.
Where once a customer would have
to go to a specialty shop to purchase
herbal products, now those same
product are available at the local
supermarket.

IV. THE BUSINESS

Objective :Working for gaining 100%
customer satisfaction
Form of ownership: Partnership firm
Name, qualification of the owners:
Owner 1:Manisha Panth
Educational qualification: MBA
Owner 2:Himanshu
Educational qualification: MBA

V. THE FUNDING REQUIREMENTS

Total

amount required for the

investment is Rs. 10 lakh (approx).
Debt: The debts has been borrowed from
relatives and loans from banks. 6 lakh
would be taken from bank at the rate of
interest for 9% p.a.
Equity: ownership fund (4 lakh would be
invested through us).

VI. THE PRODUCT

Products: The product line of Gentle Touch Creations is as
follows:
Herbal Therapy Packs for back and neck pain and relief of
muscle aches, filled with wheat berries and flax seed and 10
herbs.
Saint, oil for use as an anti-inflammatory or for burns, in a rollon applicator.
Eye packs in eye-pleasing patterns that help relieve sinus
discomfort and eyestrain.
Moisturizer for face and hands with various scented oils.
Soaps created with such herbs as powdered balsam and rose
petals marbleized throughout each cake, gently scented.
Herbal bath bags
Bath powder made from arrowroot, cornstarch, rose petals and
other herbs.

VII. THE PLAN

MARKETING PLAN :
Develop ongoing relationships with cosmetics
wholesalers and retailers throughout the India.
Maintain a high standard of quality and service
Offer discount coupons for the promotion of
company
Create the website for connectivity of more users
and for more awareness
Regularly send free samples to potential clients so
that they can experience the quality of products
first hand

Market summary:. Herbal products have grown in popularity with

consumers over the past ten years. As the herbal market has grown into a
multi-billion dollar industry, so has the opportunity for small firms and
farms to supply product to larger herbal companies that then repackage and
market the product under their own brand.
Market demography: Potential customers can be divided into following
broad categories:
School girls
College girls
Working ladies
Housewives'
Market research: there are lot of competitors already in the market but we
will differentiate us through the means of providing discount offers and by
good customer loyalty base.

MARKETING MIX STRATEGY

1.
2.
3.

1.
2.
3.

1.
2.
3.
4.

MARKETING OBJECTIVE:
Build brand image
Diversification.
Develop e-commerce functionality.
MARKET SEGMENTATION:
Professional women
School and college girls
Household ladies
MARKET POSITIONING:
Good relationship with customer
Customer delightment
Good quality product
Affordable price

PRODUCT MIX STRATEGY

Gentle Touch Creations will focus first on building a client base with
herbal health product companies. i.e. herbal therapy packs, soaps, Saint,
oil, eye packs, salves, moisturizers, herbal bath bags and bath powder.

PROMOTION MIX STRATEGY

Distributed in the neighborhood

Friends
Relatives
Pamphlets
Face book
Internet websites

PRICING MIX STRATEGY

Good quality and less price

DISTRIBUTION MIX STRATEGY

Single store

SWOT analysis of the market: Under this we

basically analyze about the strength, weakness,
opportunities and threats.

1.
2.
3.
4.
5.
6.
7.

1.
2.
3.
4.

STRENGTH
Quality
Brand name
High quality manpower resources
Vast range of products and service
Global technology capability
Low price
The organization has strong ethical values and ethical mission statement.
WEAKNESS
Too many brands
Need time to establish own brand name
High service cost
Use or hard chemical

 OPPORTUNITY

1.Upgrading customers through innovation to new level of

quality and performance.
2.Building brand image.
3.Cosmetic store should be designed in such a way to attract
customers.
4. More could be done with the family branding selling point.
THREATS

1. Competition from substitute products.

2. Loyal customers would prefer their old brand.
3.Price competition from local and multinational players.

(B) OPERATIONAL PLAN

(1) Plant location: Gentle Touch Creations is located
in a 2,000 square foot manufacturing space in
the model town.
(2) Plant layout: Design of the store
The interior dimensions of space is matter i.e. floor
design, wall colors, using of mirrors, lighting, decoration
of the space, outer look of store, attracting show pieces,
placing of the good in an ordered way, big gifts at the last
side of the store and small items should be placed in the
starting, the entering point of the store should be well
spaced for the entrance of the customers at the store.

(3) Inventory management:

The record of each product with its price list, brand name,
quantity will be mentioned in the computer so that the proper
records of the items can be maintained.
It will help in the placement of the order to the supplier also.

(C) ORGANIZATIONAL PLAN

Organizational chart

Details about the board of director:

General Manager :Manisha panth

Operational Manager: Ravi
Marketing Manager :Vaibhav
Finance Manager :Himanshu

Manpower planning:

2 more people are required for handling the

operational work in the store.

Legal aspects of labor

Anyone employing staff must comply with employment
legislation. Major pieces of legislation which you must
be aware of include:
The National Minimum Wage Act
The Working Time Regulations
The Employment Rights Act
The Transfer of Undertakings Regulations (if you take
over an existing business you must observe the existing
staff's terms and conditions of employment)
Health and safety

(D) FINANCIAL PLAN FOR TWOFIVE YEARS

Financial Plan: To get the business up and running, we
will need to obtain financing.
The tables show annual figures. Break-even Analysis.
The monthly break-even point is approximately Rs
10,20,000.

Projected Profit and Loss.

The following table and charts highlight the projected profit and loss for
three years.

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales

Rs.584,000 Rs.642,400 Rs.706,640

Direct Cost of Sales

Rs.204,400 Rs.224,840 Rs.247,324

Other

Rs.0

Total Cost of Sales

Rs.204,400 Rs.224,840 Rs.247,324

Gross Margin

Rs.379,600 Rs.417,560 Rs.459,316

Gross Margin %

65.00%

Rs.0

65.00%

Rs.0

65.00%

Expenses
Payroll

Rs.124,600 Rs.143,800 Rs.155,144

Sales and Marketing and Other Expenses

Rs.25,800

Rs.27,600

Rs.31,000

Depreciation

Rs.5,400

Rs.5,500

Rs.5,500

Rent

Rs.48,400

Rs.52,800

Rs.52,800

Rent

Rs.6,000

Rs.6,000

Rs.6,000

Maintenance

Rs.5,840

Rs.6,424

Rs.7,066

Utilities/Phone

Rs.9,000

Rs.9,500

Rs.10,000

Payroll Taxes

Rs.18,690

Rs.21,570

Rs.23,272

Other

Rs.0

Rs.0

Rs.0

Total Operating Expenses

Rs.243,730 Rs.273,194 Rs.290,782

Profit Before Interest and Taxes

Rs.135,870 Rs.144,366 Rs.168,534

EBITDA

Rs.141,270 Rs.149,866 Rs.174,034

Interest Expense

Rs.2,821

Rs.2,326

Rs.1,618

Taxes Incurred

Rs.33,740

Rs.35,510

Rs.42,424

Net Profit

Rs.99,308

Rs.106,530 Rs.124,491

Net Profit/Sales

17.00%

16.58%

17.62%

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Assets
Current Assets
Cash

Rs.195,358

Rs.296,358

Rs.417,648

Inventory

Rs.21,175

Rs.23,293

Rs.25,622

Other Current Assets

Rs.0

Rs.0

Rs.0

Total Current Assets

Rs.216,533

Rs.319,651

Rs.443,270

Long-term Assets

Rs.59,170

Rs.61,170

Rs.63,170

Accumulated Depreciation

Rs.5,400

Rs.10,900

Rs.16,400

Total Long-term Assets

Rs.53,770

Rs.50,270

Rs.46,770

Total Assets

Rs.270,303

Rs.369,921

Rs.490,040

Long-term Assets

Liabilities and Capital

Year 1

Year 2

Year 3

Current Liabilities
Accounts Payable

Rs.31,974

Rs.31,947

Rs.34,836

Current Borrowing

Rs.6,700

Rs.3,400

Rs.100

Other Current Liabilities

Rs.0

Rs.0

Rs.0

Subtotal Current Liabilities

Rs.38,674

Rs.35,347

Rs.34,936

Long-term Liabilities

Rs.20,000

Rs.16,415

Rs.12,454

Total Liabilities

Rs.58,674

Rs.51,762

Rs.47,390

Paid-in Capital

Rs.140,000

Rs.140,000

Rs.140,000

Retained Earnings

(Rs.27,680)

Rs.71,628

Rs.178,159

Earnings

Rs.99,308

Rs.106,530

Rs.124,491

Total Capital

Rs.211,628

Rs.318,159

Rs.442,650

Total Liabilities and Capital

Rs.270,303

Rs.369,921

Rs.490,040

Net Worth

Rs.211,628

Rs.318,159

Rs.442,650

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$70,500

$85,000

$105,000

Cash from Receivables

$161,300

$244,675

$300,759

Subtotal Cash from Operations

$231,800

$329,675

$405,759

$0

$0

$0

$12,000

$0

$0

New Other Liabilities (interest-free)

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

Cash Received
Cash from Operations
Cash Sales

Additional Cash Received

Sales Tax, VAT, HST/GST Received

New Current Borrowing

New Investment Received

Subtotal Cash Received
Expenditures

$0

$0

$0

$243,800

$329,675

$405,759

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending

$70,800

$76,000

$105,000

Bill Payments

$173,564

$232,719

$263,829

Subtotal Spent on Operations

$244,364

$308,719

$368,829

$0

$0

$0

$3,000

$6,000

$3,000

$0

$0

$0

$8,400

$8,400

$8,400

Purchase Other Current Assets

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

Dividends

$0

$0

$0

Subtotal Cash Spent

$255,764

$323,119

$380,229

Net Cash Flow

($11,964)

$6,556

$25,530

$21,436

$27,993

$53,522

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment

Cash Balance

VIII. CRITICAL RISKS

Non acceptability of the product.
Most critical is the customers' changing tastes.
High rent cost
When the economy takes a down turn, people change
their spending priorities.

IX. EXIT STRATEGY

If the project does not run successfully we would
wind it up and payback the loan by selling
machineries, equipments and tools or Company will
hire a qualified business broker to sell the business.

X. APPENDIX
(a) curriculum vitae of the owners
(b) ownership agreement
(c) certificate from pollution board
(d) memorandum of understanding
(e) articles of association
(f) other documents that help in marketing the project
viability

THANK YOU