Cosmetics Business Plan

In Nigeria and even the world at large cosmetic products is one of the most essential commodities that every person cannot do without. It is estimated that about 8 out of 10 persons apply Cosmetics/ beauty products on the body daily and with Africa population estimated to comprise of 60% of people less than the age of 25years and women accounting for 39% of this youthful population.

Most persons might mistake cosmetic to be makeup, rather it is the other way around as makeup is just a small brand of the cosmetic industry.

Cosmetic business boom can be said to be due to the introduction of different body lotions from hair growth creams and serums to skin lightening products and even bathing soaps, deodorants and perfumes which are always in high demand among women and men alike. The women who are the major purchasers of cosmetic products now fall into the working-class category. This means they have more money at their disposal to spend.

In recent times, it has been observed that the Cosmetics, Beauty and Fragrance Stores industry shows a moderate level of market share concentration, with the leading brands (Zenon, Zan, SNL, Doyin Group, Beneks, VIP, Divat et Viva, Enumez) accounting for over half of the available market share in Nigeria.

Starting a cosmetic, beauty and fragrance business is a very profitable and has a lot of benefits if done properly; it can be also capital intensive depending on the scale of operation. Getting the right products that people want to buy, good production process, and pricing are the secrets of running a cosmetic business.

Industry concentration has increased in recent years due to rapidly increasing demand for specialty beauty products. Going forward, the industry concentration is projected to continue increasing over the next five years as consumer-spending levels rise and people turn to well-known, trusted stores for their fragrance, beauty and cosmetics needs.

No doubt, expansive product selections and skilled employees have driven revenue for the Cosmetics, Beauty and Fragrance Stores and industries. So also, with the increase in youth-targeted cosmetics, the expansion of male-specific products and of course the reformulation of anti – aging products have given specialty beauty stores a new collection of cosmetics, beauty and fragrance products to offer customers. Going forward, per capita disposable income will continue to rise and the revenue generated from this industry will also enjoy positive growth.

Knowing these facts about cosmetic business in Nigeria has brought about a form of motivation for Utibe Cosmetics Inc. to tap into the industry as several entrepreneurs who have recognized the profitability of the business venture have invested massively into the sector and are surly reaping millions in profit.

Table of Contents

I.    Introduction3

1.0 Executive Summary4

1.1 Company Benefits5

1.2 Business Objectives6

1.3 Vision6

1.4 Mission6

1.5 Keys to Success6

2.0 Company Summary7

2.1 Company Ownership7

2.2 Location and facilities8

2.3 Start-Up Summary8

Table: Start-up Funding9

3.0 Company Product Description9

3.1 Product Description10

3.2 Product Uniqueness10

3.3 Future Products10

4.0 Market Analysis10

4.0.1 Market Summary10

4.0.2 Market Trend11

4.0.3 Marketing Plan11

4.1 Target Market12

4.2 Industry Analysis12

4.3 Challenges Facing the Cosmetic Industry13

4.4 SWOT Analysis15

4.4.1 Strengths15

4.4.2 Weakness16

4.4.3 Opportunities16

4.4.4 Threats16

4.5 External Environmental Analysis16

4.6 Marketing Strategy17

4.7 Publicity and Advertising Strategy17

4.8 Sales Forecast18

4.9 Sustainability and Expansion Strategy20

5.0 Strategy and Implementation Summary20

5.1 Competitive Edge21

6.0 Management Summary22

6.1 Management Team22

6.2 Personnel Plan23

Table: Payroll Year 124

Table: Payroll Year 1-324

7.0 Financial Plan24

7.1 Breakeven Analysis25

7.2 Projected Profit and Loss25

7.3 Projected Cash Flow27

7.4 Projected Balance Sheet28