Introductory Page

Name of product:

Name of our product is “Anti Altern”

Altern is a Germen word meaning Aging

Nature of Business:

Our business is based on new innovative product against skin problems especially in women.

Our product is new in nature. Because now a days only creams and face washes exist in Pakistan

for skin protection.

Our company is independent in the sense that we make all of our own products but there are

some items that we must obtain from other industries. This would include some ingredients,

product labels, containers.

Statement of Confidentiality

This document contains proprietary and confidential information. All data submitted to Miss

Hifza is provided in reliance upon its consent not to use or disclose any information contained

herein except in the context of its business dealings with Anti Altern. The recipient of his

document agrees to inform its present and future employees and partners who view or have

access to the document's content of its confidential nature.

Product Review:

Our product is an anti-aging soap. Its main feature is that it removes wrinkles caused by the

passing age on the skin. It is a convenience product i.e. an F.M.C.G. Initially we are launching

our product in only one dimension of 125 g with a price of Rs. 110 each.

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Executive summary

We are launching a new soap in the

market and our brand name is “JOVEN

Anti-aging soap”. It is an anti-aging soap

whose main feature is that it removes

wrinkles on skin; it also cleanses the skin

and makes its colour bright. We are

mainly targeting Ladies above 35 years of

age of higher middle class but our product

is for all age of women. We will position

our brand from our positioning statement “Be Young Again”. We will enter the market with

heavy advertisement through hoardings, TVC’s, etc. We are advertising through channel

CITY42 because we are lunching our new product initially in Lahore and this channel fulfils the

needs of our marketing strategy to launch our product. Also we are using selective distribution

with conventional distribution channel. The primary objective is to attain 5% of market share and

to achieve more than 20,000 tons ofsale in first six months. Price of our soap is Rs. 110 per unit.

As there is no major competitor of anti-aging soap but some anti-aging creams are our

competitors, so our objective is to capture the market by satisfying our customers.

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Mission Statement

“Our mission is to earn our customer’s loyalty by providing them

best Quality product and delivering maximum satisfaction by

making them Look young again”

Vision Statement

“To become the largest Soap manufacturer of the country,

and to have the largest share in soap market by delivering

maximum satisfaction to the customers”

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Industry Analysis

Future outlook and Trends:

The soap market in Pakistan increased during last few years growing at an average annual rate of

2.2%. The leading company in the market in 2008 was Unilever. The second-largest player was

Sufi Soaps Detergents with Kohinoor and Tibet Soaps in third place.

There are approximately 500 units in organized and un-organized sectors. Being an employment-

oriented industry it provides jobs to over 100,000 workers all over the country. The total

production capacity of this industry is 250,000-300,000 tons of soap annually.

Its contribution to the national exchequer in the forms of various taxes

is running in billions of rupees. There is no major producer of anti-aging soap in the industry.

However various anti-aging creams are available that can be substituted for our soap that

includes cream from Ponds and the vitamin company. The bulk of the market share of cosmetics

in Pakistan is held by three big companies, Kohinoor Chemicals, International Laboratories

(Ponds) and Revlon. They control about 60to 70 % share of the total market.

Taxesare a big issue in the soap industry. Especially the increased custom duty on the import of

raw material is alarming. Alsothe electricity load shading is a major problem.

Fashion is also a major driver in the market. Especially women are becoming more and more

conscious about their skin. Wrinkles are a major problem of middle aged women that we are

offering to solve. Technology is rapidly changing. Most of the units in the organized sector

having modern technology and foreign capital, accounting for 67% of the total capacity are

concentrated in Karachi

Analysis of Competitors:

There are no competitors of anti-aging soap in the Pakistani market. However there are various

substitute anti-aging creams available in the market.

Our key substitute products are:

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Competitor Features

Ponds age Miracle It rekindles youthful beauty through and promises visible results in 7

days. It is specially formulated for anti-aging conscious people.

Ponds age defying

cream

Age defying towelettes fight visible signs of aging while you clean

Collagen cream It reduces wrinkles and gives young look. It is made of natural herbs and

has no side effects

Olay age defying anti

wrinkle SPF 15 cream

Reduces the appearance of fine lines and wrinkles in just 5 days.

Anti-wrinkle

replenishing night

cream

Awaken to skin that looks younger, smoother and overall firmer.

Age defying daily

renewal cream

Renews moisture to significantly reduce fine lines and wrinkles

Garnier Ultra Lift The Garnier Ultra Lift range has been specially designed for skin that is

showing signs of ageing, suffers loss of skin elasticity and firmness.

Market Segmentation

We have segmented the market on two bases:

Demographic basis

That is on the basis:

· Age - Above 35

· Income Level – 30,000 and above

· Gender - Females

· Social status – High middle class

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Geographical basis

That include:

Lahore

Model Town

Wapda Town

Johar Town

Wahdat Road

Iqbal Town

Gulberg

Main Boulevard

Garden Town

M.M. Alam Road

Defense

Fortress Stadium

Industry and Market Forecasts:

Using research we are identifying the specific feature and benefits that are target market segment

values. Feedback from market tests surveys and focused groups will help us to develop the anti

altern soap. We are also measuring and analysing customer, attitude towards competing brands

and products. Brand awareness research will help us to determine the effectiveness and efficacy

of our messages and media. Finally we will use customer satisfaction studies to gauge market

reaction.

There is no major producer of anti-aging soap in the industry. However various anti-aging

creams are available that can be substituted for our soap that includes cream from Ponds and the

vitamin.

Page | 6

Description of venture

Product:

Our product is an anti-aging soap. Its main feature is that it removes wrinkles caused

by the passing age on the skin. It is a convenience product i.e. an F .M.C.G.

Initially we are launching our product in only one dimension of 125 g with a price of Rs.

110 each.

We are introducing a convenience product that is a high quality anti-aging soap in the

market with the name of “anti agining soap”. We are using “licensed branding”. Although

there are various substitute in the form of cream in the market but there is no major

competitor of our product.

Ingredients:

Special Ingredient:- DMAE

Sodium Tallowate, Sodium cocoate, Tetra sodium EDT A, Mineral oil, BHT, Sodium chloride,

Pearl luster pigment, Water, Fragrance, Vitamin A (Retinol, Tretinoin and Retinyl Palmitate)

and Vitamin E (Tocopherol).

The Machines used for the purpose are:

Soap Boiling Tanks               Soap Transfer Pumps

Soap Jacketed Crutcher       Soap Filter Pumps

Soap Filter Strainer                Soap Feed Tank

Soap Feed Pump                  Heat Exchangers Vacuum Spray Chamber

Silicate Dosing System,

Complete with Pumps/Tanks Duplex Vacuum Plodder Preliminary/

Secondary Recuperator Booster, Condenser & Moisture Separator &

Vacuum Pump Hot Well Chilling Plant/Chilled Water / Hot Water

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Tank Chilled Water

Hot Water Pump Roller Printer Bar Cutter Piping Insulation

Machinery:

We will buy our machinery from Frigmaires Company. It is a forging company, located in india.

Ingredients:

We will import our ingredients of anti aging soap from a company located in San Francisco in

U.S.A. named “TINSON INDUSTRIAL CHEMICAL CORPORATION”

Building:

A simple factory type building incorporating a small office will suffice for an initial startup, the

main consideration being basic security and environmental protection. The building design

should allow for smooth transitioning of raw materials into completed products ready for

movement to curing areas and warehouse for storing soaps away from environmental

contamination effects.

Electrical supply:

The building should be wired appropriately for lighting, office use and AC. Certified electrical

contractors will be searched.

Other facilities:

Air conditioners

Proper furniture

Computer system

Rest areas

Washrooms

Location:

Its physical plant i.e. factory will be settled down in Lahore, thokar nayaz baig.

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Launching Place: -

Lahore

Process:

Soaps and detergents are widely used in our society. Soaps are the product of the reaction

between a fat and sodium hydroxide:

Fat + 3NaOH →glycerine + 3 soap

Soap is produced industrially in four basic steps. This article lists different steps because in

the industrial processes described each of these is done over several process steps, but in

principle it could be done in the three steps outlined here.

Step 1 - Saponification

A mixture of tallow (animal fat) and coconutoil is mixed with sodium hydroxide and heated.

The soap produced is the salt of a long chain carboxylic acid.

Step 2 - Glycerin removal

Glycerin is more valuable than soap, so most of it is removed. Some is left in the soap to help

make it soft and smooth. Soap is not very soluble in salt water, whereas glycerin is, so salt is

added to the wet soap causing it to separate out into soap and glycerin in salt water.

Step 3 - Soap purification

Any remaining sodium hydroxide is neutralized with a weak acid such as citric acid and two

thirds of the remaining water removed.

Step 4 - Finishing

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Additives such as preservatives, colour and perfume are added and mixed in with the soap

and it is shaped into bars for sale.

Anti aging ingredients:

Retinol. Retinol is a vitamin A compound, the first antioxidant to be widely used in

nonprescription wrinkle creams. Antioxidants are substances that neutralize free radicals

— unstable oxygen molecules that break down skin cells and cause wrinkles. Retinol is

less potent than the vitamin A derivative tretinoin, a topical treatment approved by the

Food and Drug Administration (FDA) for treating wrinkles. Tretinoin is available only by

prescription. Avoid vitamin A derivatives if you are pregnant or may become pregnant,

because they may increase the risk of birth defects.

Hydroxy acids. Alpha hydroxy acids, beta hydroxy acids and poly hydroxy acids are

synthetic versions of acids derived from sugar-containing fruits. These acids are

exfoliants — substances that remove the upper layer of old, dead skin and stimulate the

growth of smooth, evenly pigmented new skin. Because hydroxy acids increase your

susceptibility to sun damage, always wear sunscreen during use and for at least one week

afterward.

Coenzyme Q10. Coenzyme Q10 is a nutrient that helps regulate energy production in

cells. Some studies have shown reduction in fine wrinkles around the eyes with no side

effects. Other studies show that application before sun exposure protects against sun

damage.

Copper peptides. Copper is a trace element found in every cell. In products applied to

the skin, it's combined with small protein fragments called peptides. Copper peptides

Page | 10

enhance wound healing. They also stimulate production of collagen and may enhance the

action of antioxidants.

Kinetin. As a plant growth factor, kinetin may improve the appearance of wrinkles and

uneven pigmentation with minimal irritation. It's unclear how it works, but it may help

reduce wrinkles by helping skin retain moisture and by stimulating the production of

collagen. It may also be a potent antioxidant.

Tea extracts. Green, black and oolong tea contain compounds with antioxidant and anti-

inflammatory properties. Green tea extracts are the ones most commonly found in

wrinkle creams.

These ingredients will be used in our anti aging soap, and these will be added in soap

purification stage.

Size of business plan

It is never easy as to decide about the size of an upcoming unit. One has to see the relation of the

size of a particular business with efficiency as well as see whether that particular size fits well in

that particular social structure or not. All these questions need to be studied before deciding

about the size of a business unit. The size of the business unit refers to the scale of its operations.

Whether the scale of production is small, medium or large, it depends mostly upon the

availability of finances, managerial ability, marketing possibilities and efficiency expectancy. A

concern may be started at the moderate scale in the beginning and it may be expanded later on.

On the other hand, a concern may be started on a large scale from the very beginning. The size of

the firm is associated with economic efficiency. A particular size of the unit marketing is more

efficient than other sizes. If all the firms in the industry attain that size, the whole industry attains

a given level of efficiency.

So, we can say that whatever the form of a particular business entity the profit motive along with

the viability of the size and the considerations of the social structure are instrumental in

determining the size and dimensions of business.

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In starting we are mainly focusing on Lahore one of the major cities of Pakistan.

Size of our business is not much large; we will expand our business by passage of time through

increased sales and more profits.

Labor and personnel:

Manager (Owner/Manager).

boiler attendants to direct operate and load.

laborers’ for stirring and fetching functions.

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Marketing Plan

Product:

We are introducing a convenience product that is a high quality anti-aging soap in the market

with the name of “Anti Altern ”. We are using “licensed branding”. Although there are various

substitute in the form of cream in the market but there is no major competitor of our product.

Features:

Our product consists of the following features:

The core benefit of our product is that it removes wrinkles of skin.

Additional benefits are that it makes the complexion fair.

It cleanses the skin.

Ideal for all skin types.

Heals skin

Tightens the skin pores

Soften the skin

Removes black heads

The brand and logo will be displayed on the product and its packaging is packed in attractive

wrapper with different colors and designs.

Pricing strategy:

Pricing is the most important factor in our marketing mix. Our pricing strategy will be such that

is fair to the customers, as our objective is to attain customer loyalty. Anti-altern is being

introduced at a price of Rs. 110 including all taxes. Initially we are using “Value based pricing

approach” for the evaluation of price.

These prices reflect a strategy of:

1. Market penetration pricing.

2. Delivering maximum satisfaction by giving affordable price

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Distribution Strategy:

At launching our product our channel strategy is to use

“Selective distribution” at different places and marketing through well known stores and outlets

within Lahore only, Including H.K.B, Al- Fateh, Makro, Al-Raheem store, Victoria, and Grace

Store. We will also give special trade discounts for retailer that place volume order. We are using

“Indirect marketing channel” for the distribution of our product which is a “Conventional

distribution” channel. Our marketing channel involves the following intermediaries:

The company will transport its goods to the retailer who will distribute them to customers. They

will also gather research information for us.

Promotion:

Marketing communication is an integral part of product strategy. We are entering the market

with high advertisement of our product in order to create a strong image of this soap in the mind

of our target customers. We will set our total promotional budget on the “Objective and Task

method”. Our objective is to attract the customers towards our product and we will use excessive

advertising to achieve this goal.

We will use different advertising tools to advertise our product, which include:

T.V.C’s

Teasers

Hoardings

Magazines

Newspapers

We are using “Pull promotion mix strategy” to attract our customers as we are new in the

market.

We will use City042 as our channel, as its coverage is in Lahore and we are initially

launching our product in Lahore. Our commercial will be played after every 30 minutes

on the channel.

In newspapers we are targeting Jang in Urdu news papers and “Dawn” and “The News”

in English news papers.

We are also advertising on hoardings at various main spots in Lahore.

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Organizational Plan

Management team:

Management team describes our management team and staff and how our business ownership is

structured. People reading our business plan will be looking to see not only who's on our

management team but how the skills of our management and staff will contribute to the bottom

line.

Our Management structure is divided into top, middle and lower management.

Top management directing goals, new idea of innovative product that is Anti Altern. Top

management will direct middle management what strategies to adopt to influence customer and

increase sales.

Middle management with their conceptual, diagnostic concepts will implement strategies to

persuade more and more consumers. They will design and implement strategies for our soap and

will guide lower management to produce profitable results that is profits.

Board of Directors:

Briefly describes who is on our Board and what role they play within our company. Briefly list

the names, backgrounds, and contributions that will be made by each board member.

The Ownership Structure :

Section describes the legal structure of our business. It may be a single sentence if our business is

a sole proprietorship. If our business is a partnership or a corporation, it may be longer.

But we as an entrepreneur are focusingon partnership.

An arrangement will be made where parties agree to cooperate to advance their mutual interests.

We as a Governmentally recognized partnerships enjoy special benefits in tax policies.

Overarching goals, levels of give-and-take, areas of responsibility, lines of authority and

succession, will be evaluated and distributed, and often a variety of other factors must all be

negotiated.

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Assessment of Risk

There are various issues that are to be tackled to launch our new product, these issues include:

Economic condition:

Current economic conditions of our country are not satisfactory. We are facing economic crisis

due to our weak fiscal policy. This situation will effect our attainment.

Competitive situation:

Competitive situation shows how much our competitors are strong and we also analyze their 4P’s

because without it no product can be succeeded in market. The marketing strategies of

competitor are a big issue.

High bank rates :

Interest rates of our banking sector are very high which effects the company’s financial matters

and company is compel to borrow high rates loans.

High Duties /taxes :

Our Government imposes high custom duty on raw materials. So company purchase high cost

imported raw material to provide high quality products to the customers

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Financial Plan

Based on market research, we expect the business to begin growing at 45% per month for the first 12

months, then at a yearly rate of 90% for the next two years. In addition, we will almost immediately have

a positive cash flow, allowing us the flexibility to cover any unforeseen expenses.

Key Financial Indicators

Sales - Our sales are projected to grow at a consistent rate of 90% yearly, and we believe this accurately

reflects the realistic growth our product would be capable of attaining if we can properly utilize existing

channels of distribution and gain social acceptance.

Gross Margin - As we grow, become more efficient, and gain economies of scale we begin to see a slight

growth in our margins.

Operating Expenses - In 2012 and 2013 we see an increase in the number of operating expenses that we

will incur. We begin incurring larger costs involving advertising, promotion, marketing, and payroll

expenses.

Inventory Turnover - Our preliminary forecast suggests that for us to be flexible in meeting customer

demand we will need to maintain a minimal inventory stock at a rented warehouse. We estimate that, on

average, we will keep two weeks’ worth of inventory on hand.

Collection days - We will collect our accounts receivable on an average of 45 days. In 2007 and 2008 we

will have the cash to cover unexpected costs or expenses so that we may decide to allow a longer

collection period.

Sales Forecast

If we are able to distribute our product through existing distributors, it will provide us a

significant financial advantage, as well as the ability to meet the quick increase in demand for our

product. 

Beginning with an initial monthly sale of Rs 1,250 for our day care soap product, we predict

sales will increase by 45% per month for the first year.  We then calculate a growth rate of 90%

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yearly.  Cost of Goods Sold is approximately 47% of sales.  However, CGS grows at a yearly rate

of 88%, which is less than the sales growth rate in order to represent the economies of scale that

we hope to achieve as our operations grow.

Table: Sales Forecast

Sales Forecast Rs.

Year 1 Year 2 Year 3

Soap Sales 237,168 450,620 856,177

Chart: Sales Monthly

CHILDassure soap (day care)

HEALTHassure/FOODassure

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Mon

th 1

Mon

th 2

Mon

th 3

Mon

th 4

Mon

th 5

Mon

th 6

Mon

th 7

Mon

th 8

Mon

th 9

Mon

th 1

0 M

onth

11

Mon

th 1

2Sales Monthly

Chart: Sales by Year

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CHILDassure soap (day care)

HEALTHassure/FOODassure

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Year 1 Year 2 Year 3

Sales by Year

Projected Profit and Loss Statement

Our profit and loss projections reflect our expectation that monthly fixed costs will remain constant over

the course of the first year.

Cost of goods sold increases at a decreasing rate, as economies of scale make soap production cheaper per

unit as production volume increases. Based on these projections the company will become profitable in

October, 2015.

Advertising expenses will remain steady during our first year of operations.  However, Advertising and

Promotion will grow in years 2013 and 2014 to reflect the purchase of print ads, PR brochures, and

additional promotional content.

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0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

(3,000)

Month 1 Month 2

Month 3 Month 4

Month 5 Month 6

Month 7 Month 8

Month 9 Month 10

Month 11 Month 12

Profit Monthly

0

30,000

60,000

90,000

120,000

150,000

180,000

210,000

Year 1

Year 2

Year 3

Profit Yearly

Chart: Profit Monthly

Chart: Profit Yearly

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0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Month 1 Month 2

Month 3 Month 4

Month 5 Month 6

Month 7 Month 8

Month 9 Month 10

Month 11 Month 12

Gross Margin Monthly

0

100,000

200,000

300,000

400,000

500,000

Year 1

Year 2

Year 3

Gross Margin Yearly

Chart: Gross Profit Margin Monthly

Chart: Gross Profit Margin Yearly

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Pro Forma Income Statement

Cost of our product is Rs 48/- after including the taxes and profits our customers will be able to buy our

product just in Rs 110/-

This price is very affordable to the market of anti aging conscious people. This price is lower than our

competitors. Our Company is providing a Quality anti aging soap in a reasonable price.

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Pro Forma Profit and Loss Rs. Year 1 Year 2 Year 3

Sales 237,168 450,620 856,177 Cost of Sales 94,867 178,351 321,031 Other 0 0 0 Total Cost of Sales 94,867 178,351 321,031

Gross Margin 142,301 272,269 535,146 Gross Margin % 60.00% 60.42% 62.50%

ExpensesPayroll 57,600 144,000 216,000 Payroll Taxes 0 0 0 Depreciation 0 0 0 Rent 8,400 8,400 8,400 Distribution 1,200 1,200 1,500 Packaging 6,000 6,000 6,000 Telecommunications 1,200 2,500 3,500 Transportation 1,800 2,500 4,000 Advertisement 3,600 4,000 4,500 Other General and Administrative Expenses

1,200 1,200 1,200

Total Operating Expenses 81,000 169,800 245,100

Profit Before Interest and Taxes 61,301 102,469 290,046 EBIT 61,301 102,469 290,046 Interest Expense 0 0 2,500 Taxes Incurred 18,390 30,741 86,264

Net Profit 42,911 71,728 201,282 Net Profit/Sales 18.09% 15.92% 23.51%

Pro Forma Balance Sheet

Pro Forma Balance Sheet Year 1 Year 2 Year 3

Assets

Current AssetsCash 29,455 31,775 115,239 Accounts Receivable 98,432 187,021 355,340 Inventory 119,146 34,927 60,193 Other Current Assets 0 0 0 Total Current Assets 247,032 253,723 530,772

Long-term Assets 0 0 0Accumulated Depreciation 0 0 0 Total Long-term Assets 0 0 0 Total Assets 247,032 253,723 530,772

Liabilities and Capital Year 1 Year 2 Year 3

Current LiabilitiesAccounts Payable 77,422 12,384 38,150 Current Borrowing 0 0 50,000 Other Current Liabilities 0 0 0 Subtotal Current Liabilities 77,422 12,384 88,150

Long-term Liabilities 0 0 0 Total Liabilities 77,422 12,384 88,150

Paid-in Capital 250,000 250,000 250,000 Retained Earnings (123,300) (80,389) (8,661)Earnings 42,911 71,728 201,282 Total Capital 169,611 241,339 442,621 Total Liabilities and Capital 247,032 253,723 530,772

Net Worth 169,611 241,339 442,621

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Break Even Analysis

Breakeven point = Total fix cost

Price/unit – Variable cost/unit

Q = 100000/(110-20)

Q = 1667 units

The company should sell 1667 units to achieve breakeven point. On this point there is no profit and no

loss. If the units are sold from above this quantity then the company will generate the profits and if the

numbers of units sold are less than from this quantity then the company will face losses.

Sources of Funds Generation

For every prospective business it is extremely important to seek different sources of appropriate funding.

When an entrepreneur is able to successfully raise the desired amount of capital, the new business will be

able to thrive. It may take a considerable amount of time to break-even and earn revenue; therefore,

having this type of financial security is beneficial for the entrepreneur and the viability of the new

business. A new enterprise needs capital to finance its everyday business expenses. This can include

property rent, employee salaries, marketing expenses, inventory, day-to-day operations, and maintenance.

To initiate our business we will generate our funds from the following sourcs:

Personal funding

Loan from relative and friend

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Conclusion

Anti Altern is an anti-aging soap whose main feature is that it removes wrinkles on skin; it also

cleanses the skin and makes its colour bright. We are mainly targeting Ladies above 35 years of

age of higher middle class but our product is for all age of women. We will position our brand

from our positioning statement “Be Young Again”.

There is no major producer of anti-aging soap in the industry. However various anti aging

creams are available that can be substituted for our soap that includes cream from Ponds and the

vitamin company. The bulk of the market share of cosmetics in Pakistan is held by three big

companies, Kohinoor Chemicals, International Laboratories (Ponds) and Revlon. They control

about 60to 70 % share of the total market.

Based on detailed financial projections, our anti aging soap will require Rs 250,000 in start-up

capital, but will generate positive cash flow. By the end of Year 3 the company will

be generating 850,000 in sales with sizeable net profit. Our innovative product offers investors a

company with substantial growth potential, cushioned by revenue generating stability.

Page | 25

References

www.google.com

www.pakistaneconomist.com

www.pond’s.com

www.olay.com

www.garnier.com

http://www.go4funding.com/Articles/Available-Funding-Options.aspx

http://office.microsoft.com/en-us/templates/pro-forma-income-statement-

TC101877359.aspx

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