TITLE:
Cosmetics (Make up) company operating in Malta. A study on Ultra Beauty cosmetics.
INTRODUCTION
In this study, there is study about setting by new business enterprise in cosmetic sector. There will use of complete and specific information about factors which to be considered and its impact on operational operations (Azzopardi Muscat and et. al., 2017). With change in commercial activities, there is requirement of alteration in business operations as well, hence it will be easy for individuals to get positive impact. There is study of models and theories regarding its feasibility. Ultra Beauty Cosmetics is the organisation which is established in cosmetic sector. This association will set up in Malta at Victoria, Gozo. This association is providing cosmetic item for female and children.
Justification behind selecting topic
Cosmetics is the sector which is used by individuals for coming up with products through which people can improve their appearance. These days, there is much scope of growth and development for cosmetic industry (Larasati, Yasri and Abror, 2019). There will alteration in operations because there is fast changes in this sector. It is essential for people to evaluate and determine which suits best for them. As compared to old years, people want complete and specific information. There will use of relevant and specific information which makes it clear to understand policies properly. With change in life style of people, they have to change their working style also. This study is based on establishing new cosmetic organisation and it is important to evaluate external market properly. With change in external market, it is not possible for managers of Ultra Beauty Cosmetics to deal with it until they have measures and proper planning for it (Theuma, 2016). This sector is selected because there is scope of growth and there is no organisation providing cosmetics for children. So business idea will feasible in current market.
Rationale for business idea
In the face of external market fluctuations, understanding and adapting to these changes is crucial, as they are the primary catalysts for the evolution of business activities. In Malta, consumer demand is shifting, and with it, business operations must adapt accordingly. This study offers a definitive approach to discerning the advantageous and disadvantageous factors that may influence commercial endeavors. Additionally, by incorporating "assignment help" into this analysis, it underscores the necessity of comprehensive support for those navigating this evolving industry.
Scenario of the study
Ultra Beauty Cosmetics is new opening organisation in cosmetic sector providing cosmetics for females and children of 4-18 years age group. There is no organisation providing cosmetics for children but in current market, for model or photo shoot purpose, consumer have demand for cosmetics for children as well because they are appropriate for their skin tone (Javed, 2014). This cosmetic store is dealing in manufacturing as well as retailing sector. Ultra Beauty Cosmetics will operate at three locations in the name of their outlets. They have knowledge about demand of consumers and it is easy to communicate with consumers and price of products will be affordable. This business is opened in partnership by two individuals who are working in this sector and now wants to operate their own outlet.
In Malta, there are parents who wants their children to be part of fashion industry through modelling and fashion outlet. So they wants products for their children which are as per their skin tone. There will change in demand of consumers, so partners are coming with varieties of products (Jacobs, 2019). As they have manufacturing as well as retailing units, so they will take care about quality of products available. There is availability of information with individuals so they are ready to provide information properly. When people are having proper information, then it is specific for getting specific data for completing the task and operating in industry successfully. There is no competitor which are working in this sector and coming with cosmetic products for children, so growth prospects and scope of operating in industry is more for Ultra Beauty Cosmetics (Attard, 2016). This organisation is mainly focusing on organic products which includes lipstick, mascara, oil, shampoo, kajal, liner, foundation, etc. for women and children with their different variances.
Clear aims and objectives
In order to run in industry, there is requirement of complete and specific information which assist in getting proper information. It is important and relevant for people to determine the best ways to deal with it (Sima, Gheorghe and Mitu, 2017). This business plan is used to communicate to stakeholders and investors about business ideas properly and determine feasibility of business idea in current market. When individuals are thinking to operate as new organisation then they face problem, hence aims and objectives are setted by individuals to operate in industry.
Aim of this study is: To study the business development factors for cosmetics (Make up) company operating in Malta. A study on Ultra Beauty cosmetics.
Objectives of this study are-
- To study about the business plan of Ultra Beauty cosmetics.
- To evaluate the marketing mix and STP framework for successful establishment of business.
- To discussion about the Business canvas model for studying role of other parties in order to operate Ultra Beauty cosmetics in effective manner.
- To evaluate the strategies that support Ultra Beauty cosmetics in increasing its sales and revenue in industry.
Research questions
- What is the business plan of Ultra Beauty cosmetics ?
- What are the marketing mix and STP framework for successful establishment of business?
- How Business canvas model is relevant for studying role of other parties in order to operate Ultra Beauty cosmetics in effective manner ?
- What are the strategies that support Ultra Beauty cosmetics in increasing its sales and revenue in industry ?
Background to subject area
There is study of business idea which is operated for operating in order to communicate and determine what has to be done which is specific in consideration of operations. This study is related to new business establishment in fashion industry, so it is important to communicate about changes which are taking place in external market. There will study of overall industry and scope of growth. With considering it, there will relevant and specific information through which changes can be made with understanding and evaluating changes properly. In this study, there will complete and specific information which assist in maintaining and evaluating activities for getting complete and appropriate sources of information (Baumann, 2014). There will study of marketing mix which assist in determining which marketing strategies are best and promotional techniques which has to be used. Victoria, Gozo is the place, where cosmetic store can enhance their brand because people wants proper products for heir children as well. This is the study which makes positive relations with consumers. This is the measurement in which performance of Ultra Beauty cosmetics company will be positive. If parents wants to make their children ready for photo shoot, modelling, etc. then they can purchase products of Ultra Beauty cosmetics.
Structure of the Project
There is a specific format in which study will have to be performed. It is important and specific for individual to make it clear and specific, so it can be used by reader to understand and evaluate information properly about conducting the study. The structure of this study as under-
Introduction- This is the initial and important component while conducting the study because this discloses information properly. There is relevant and appropriate information about business sector and information which has to be conducted. This is specific and appropriate because this is the section which provides information about aim and objectives for which study has to be conducted.
Literature review:- Literature review is the section which is specific and appropriate for individuals to collect information about how to operate in cosmetic business. This is specific and appropriate because it is not possible to complete the study if they does not have knowledge about framework and models. In literature review of this study, there will study of ways to operate in industry. Literature review is performed with collection of secondary information through online sources about ways to operate in industry.
Research Methodology:- there are some ways in which individuals have collect and make appropriate information to conduct study properly. There is requirement of some sources of information and ways through which study can be completed properly. There will study of research techniques as well, so it will be easy for people to understand and determine changes properly.
Data analysis:- data analysis is the process in which data which is collected from secondary sources because it can not understandable by individuals because this is the base on which research outcome and conclusion are presented. This is important and specific for determining changes properly because this makes operations in lieu of achieving information properly.
Discussion, Conclusion and Recommendations:- Lastly in this, there is discussion about information is presented in literature review. This is the gist of above provided information. Hence it is important and relevant for understanding activities properly. Conclusion provides overall gist of conducting study and information which is available to them. Lastly, there is disclosure of recommendations as well because this is the section in which individuals have to recommend about situation with which people have to deal.
LITERATURE REVIEW
Range of Literature on Cosmetic industry
Cosmetic industry includes all those organisation and companies that are dealing and providing products and services related with cleanness of body and make-up purpose that includes skin care, hair care, make-up, moisturisers, lipsticks, shampoos, deodorants, perfumes, toiletries and other related cosmetic products (Markowicz and Baran, 2019). As per the view point of Josette Grench, 2020, cosmetic industry of EU is serving around 500 million consumers and Malta is emerging as one of the fast growing economy of EU where future of cosmetic industry is very bright (Wessner and Howell, 2020). A new EU regulation is also set up in the markets of cosmetic industry that will bring positive changes in the world of cosmetics through primarily focusing on consumer and health protection thus, build a better trust and confidence in consumer that will give a boost to cosmetic industry (Arruda and Pastore, 2019). Thus, the newly emerging company Ultra beauty cosmetic needs to follow and company with all the provisions set by this new European cosmetic regulation (Rabe and Sherman,2016).
Beside this, according to the opinion of William reed, 2020, the cosmetic industry of Europe is playing a significant role in economic growth and sustainability of European economy including the growth of Malta ( Procter and Gamble Co, 2017). As per the cosmetic report, it has been evaluated that the cosmetic and personal care industry of EU and Malta are making significant social and economic contribution to both national and regional economies across the various regions of the EU (Prajapati and Maheriya, 2019). Through the purchase of goods and services and timely payment of employee wages and taxes, the cosmetic industry of EU are generating multiple rounds of economic spending and re-spending thus, cresting and leading benefits for both European economy and its citizen (Eide, 2019). Apart from this, the article from the William reed also reflects that in 2016, the European cosmetic market was valued around € 77 Billion which us making Europe the largest market of cosmetic product in the world (Ojogbo, Ogunsona and Mekonnen, 2019). Thus, theses reviews and articles are reflecting the prosperity and growing market of cosmetic industry in Europe and Malta therefore creating better opportunity and chances of success for Ultra Beauty cosmetic in the markets of Malta (Rabe and Sherman and Gamble Co, 2016).
Evaluation and review of both theoretical and secondary research data about industry size, growth rate, major players / competitor analysis
The markets or Europe and Malta are showing a rapid growth and many emerging opportunity for cosmetic industry (Zammit, Spiteri and Grima, 2018). As per the view of Philipp Huhn, 2019, the statistics shows a growth a in revenue of retail sale of cosmetic, make-up and toilet articles in the stores of Malta and are amounts for nearly about 110 million US dollars by 2022. this information is reflected by the graph shown below:
(Source: Retail sale of cosmetic and toilet articles revenue in Malta from 2010 to 2022, 2019)
Thus, on the basis of above graph it can be analysed that cosmetic market of Malta is of big size and are showing opportunity for Ultra beauty cosmetic to have better sales of its product and chances of earning adequate profits are also prevailing in the Cosmetic industry of Malta (Pace, 2020).
Beside this, as per the view point of Vincent Gallon, 2020, the European cosmetic market is grew up by 1.3% as compared to the data of 2017 (Jain, 2017). According to the information provided by cosmetic Europe the, cosmetic industry is supporting around 2 million jobs across the value chain of Europe and in 2017, the cosmetic market of Europe is valued at 77.6 billion euros which is making the largest market for cosmetic and personal cares products in the world thus, provides the most suitable market for the Ultra beauty cosmetic (Borsekova, Vaňová and Vitálišová, 2017).
As the the cosmetic industry of Malta is growing with a rapid speed thus, the level of competition is also increasing in the markets of Malta (Floyd, Procter and Gamble Co, 2018). This growing competition has bring out out many changes and innovation in cosmetic product that includes various R&D programmes and study into all aspects of imaginable beauty products and well-being, from investigating consumer behaviour and beauty aspirations, the biology of skin, hair, teeth and oral cavity, to new innovative technologies and bettering sustainable development methods (Jones and Navarro, 2018). The major players and biggest competitors in cosmetic industry of Malta includes Beauty Room, Beauty World Malta, C+M Marketing , CMS Bella, Concept enterprises Marvic farms, Four trading, GE brothers, Glam Healthy Beauty, Impact Ltd, etc. are the most popular cosmetic companies dealing in the markets of Malta (Satta, Spinelli and Parola, 2019). Thus, Ultra beauty cosmetic is facing a tough competition level in the markets of Malta but the unique ideas and exclusive products of Ultra beauty cosmetic making it different from all these competitors thus, chances of success have increased for this organisation (Speake, and Kennedy, 2019).
Business Idea
The aspect of business idea is regarded as one of the essential component any form of organisation as it help them to identify the market condition and also lead them to take corrective course of action in order to accomplish its pre determined goal or objective in an effective manner. Moreover, a business idea provide proper guidance and direction to firm in terms of placing the brand in a better position, targeting customer, segmenting the product and many more for enhancing the market share or size in an prompt manner. Hence, in relation to Ultra Beauty Cosmetics they are planning to introduce its business service within the marketplace Malta. Moreover, company is mainly targeting over the females and young children ( age group of between 4 - 18) of UK which help them to improve its productivity ratio in an improved manner. This is because, as per the UK market analysis, it has been signified that none of the company is delivering cosmetics products for children which is one of the biggest growth opportunity for Ultra Beauty Cosmetics to gain competitive advantage (Manhart and Thalmann, 2015). The idea which empower Ultra Beauty Cosmetics to choose young females and children as a targeted customer is that they skin tone and type is highly sensitive and delicate for which they require special care or treatment in order to maintain their skin in a better way. Along with this, another feature that motive Ultra Beauty to produce cosmetics for children and females product is that majority of UK parents are highly interested in sending their children towards fashion industry. In order to attain the same, every parents is in need of hygienic and healthy care for children skin because their skin is very thin compared to adults that requires effective care. However, customer demands a product which has the capacity to keep their skin from getting dry and also aid children to enhance their appearance or odour in an impressive style. However, to cope with up with such demand and wants of UK population, Ultra Beauty Cosmetics take an initiative to introduce a product which can easily provide high level of satisfaction to consumers i.e. organic cosmetic items for young females and children (Landau, 2017). Due to such initiation, it drive organisation to capture the attention of wide range of customer towards the brand and it benefits firm by enlarging its market share among rivalries in an amended mode. Hence, some of the products which Ultra Beauty desire to trade within UK industry are as follows:
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Products delivered by Ultra Beauty Cosmetics |
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Who is involved
The Ultra Beauty Cosmetics will be founded with an aim of offering organic cosmetic products to young females and children. However, the entire business function and process are control by two individuals as a partnership who are being employing within the same sector for long time period. However, now they have decided to establish their own outlet in UK industry by delivering creative and innovative products. Along with this, Ultra Beauty Cosmetics deals in manufacturing and retailing sector that enable firm to explore its profit margin ratio in an improved manner (Mou, Hoque and Rajib, 2018). Additionally, company also contain stakeholders such as employees, governments, customers who help company to accomplish its pre defined objective in an improved manner in a stipulated time limit. Moreover, these stakeholders are also authorised to acquire 30% share from business in the term of profit. For gaining competitive advantage in an innovate style, Ultra Beauty make an attempt to recruit highly skilled talents who are well thorough with fashion industry and also capable of imposing novel ideas or ways to explore firm's potentiality in attaining sustainable growth or development among rivalries.
Windows of opportunity
In current era of marketplace, fashion industry is regraded as one of the fastest growing sector among other industries as from the past decades market analysis, it has been determined that fashion industry is being capable of generating higher GDP rate in UK compare to other divisions (Seifter, Sabutsch and De Bruin, 2018). However, the growth in global economies, changing lifestyles, increasing demand of skin and sun care products due to climatic condition, demand of parents to explore their children in fashion secror empowered the enhancement or growth of market for cosmetics. Henceforth, it is an impressive growth opportunity for Ultra Beauty Cosmetic to attract the interest of population and also to obtain competent position within fashion industry. This is because, firm offer organic cosmetic products for young females and children with an intent of satisfying highly skin conscious customer in an amended manner.
Management
For maintaining better brand value, an effective management structure is regarded which enable an establishment to govern, monitor, control and manage all managerial and operation activities in a better way (Xiao, 2015). IN relation to Ultra Beauty Cosmetics, they make an attempt to allocate the available resources at optimal level as well as analyse market trend or competition and based on that implement strategic decisions that lead them to attain sustainability and increased level of profit margin.
Marketing mix
Marketing mix consists of set of strategies and tactics that are used by an organisation for maintain its product or services in effective manner and deliver them while creating value among the customers. It help an organisation to assure that right product or services get deliver to customer in less possible time period (Yang and Lee, 2016). The marketing mic mainly revolve around the seven major elements that support in keeping customer satisfied and delighted with the organisation which includes product, price, place, promotion, physical evidence and people. By using this marketing model in order to deliver its services to customer the Ultra Beauty cosmetics become able to achieve sustainability at marketplace by keeping its customers satisfied with the services. The major elements involve within the marketing mix are mentioned below:
Product :- It refers to the set of attributes that are capable of fulfilling the demand and expectation of customers. Product is consider is more significant part of an organisation over which factors like market performance, customer demand, organisational success, profitability in market etc. depends (Nugroho and Irena, 2017). The Ultra Beauty cosmetics is planning to offer a range of cosmetic items for women and children in order to cater their need at early age as majority of products available in market are being designed for the people that belongs to adult age group. Therefore, Ultra Beauty cosmetics is getting enter into Malta market by offering cosmetics for children and women at their young age as the skin requirement in the age group of 4-18 is totally different. It will be offering products like lipstick, mascara, oil, shampoo, Kohl, liner, foundation, etc.
Price:- It refers to the amount which a customer would have to pay in exchange of product or services that they are purchasing (Racolta-Paina and Luncasu, 2014). The price of product also consider as essential factor that support in attracting the attention of customers toward a particular product or services. The Ultra Beauty cosmetics has decided to keep the price of their products at affordable so that majority of customers get attracted toward it and have access to purchase it. For offering its products in market of Malta and achieving sustainability at marketplace Ultra Beauty cosmetics has decided to adopt market penetration pricing strategy where the price of products would be kept lower then that of competitors.
Place:- It refers to the place or end point through which a customer become able to get an access toward the product or services of an organisation that can satisfy their need and want. The Ultra Beauty cosmetics has decided to set up their outlet in order to offer their product to the targetted customers (Brady, 2014). The company will be going to establish three outlets in Victoria, Gozo, so that the products can be reached to majority of people who are seeking for the cosmetics that are made as per the special requirement of customer in more effective manner.
Promotion:- It consists of set of activities that an organisation perform in order to make people aware about the existence of product or services along with the benefits that it is delivering. For promoting its brand, Ultra Beauty cosmetics will make use of omni channel in order to create more and more brand awareness regarding its product or services (Speake and Kennedy, 2019). The main channels for interacting with customers would be TV advertisements, Web pages, social media channels, bill boards etc. Promotion through all these channels will support in positioning the Ultra Beauty cosmetics within the market of Malta effectively.
People:- For ensuring that the Ultra Beauty cosmetics perform well within the market of Malta it has been decided to recruit the employees that are highly experienced in their field (Grech, 2014). Additionally some pharmacists will also be hired by the company so that their would remain surety regrading the product quality so that not any kind of allergic reaction customer have to face with the application of products offered by company. This help in building up the trust and confidence of people within the offering of Ultra Beauty cosmetics.
Process:- It is defined as the procedure that an organisation follows in order to offer its product or services to target market. The Ultra Beauty cosmetics is planning to offer cosmetic products that are manufacture by considering the early age skin requirement of children which would offered from its retail outlets that are being established within the Victoria, Gozo over three prime locations (Azzopardi Muscat and et. al., 2017). By visit these store the customers can easily access the product or services as per their requirement.
Physical evidence:- For making the outlets of Ultra Beauty cosmetics more attractive to the customers, it has been decided to arrange all the products or cosmetics category wise in different section so it become easier for the customers to get their product easily. Despite of this on the walls of outlet several pictures of cosmetics will be pasted in order to grab the attention of customer. Additionally their would remain a trial section where the customers can ask for the code of cosmetic that they want to buy in order to try them for determining whether it will suit them or not (Turner and et. al., 2015). These all contribute toward attracting larger number of customers toward the outlet as everything is so arranged and manageable that they didn't found any issue while purchasing product or services.
Segmentation, Targetting and positioning
The aspect of market segment refer to those activity in which company divide its big market into small segments and targetting customer in order to enhance overall profitability ratio. In regard of Ultra Beauty Cosmetics, they make an effort to imply this marketing model i.e. STP into its functional unit is explained below:
- Segmentation: In this component, the entire market is divided into smaller groups as per its homogeneity inside the characteristics they hold. In context of Ultra Beauty Cosmetics, they segment is whole business into different smaller groups on the basis of demographic market. Due to such effort, it motive them to capture the attention of wide range of population and also can acquire best position within marketplace by grouping market into different subcategories (Sena and Olsen, 2014).
- Targetting: This determinant is concern with those element which states that it is a procedure of targeting specified group by developing effective strategies and marketing policies for increasing customer base in an amended manner. In relation to Ultra Beauty Cosmetics, they mainly target young females who are age group of 4-18 and children as there is an increasing demand of special care and treatment for skin mainly for children. However, such effort enable Ultra Beauty to gain competitive advantage and profit maximisation.
- Positioning : This element is link with those process in which organisation decide location for its market with an intent of acquiring high level of satisfaction. IN context of Ultra Beauty Cosmetics, they are dealing its products and services in manufacturing and retail outlet. With the help of such initiation, it assist establishment to improve its overall sales performance and also can explore its proficiency ratio in an improved mode within prescribed time limit (Wright, Siegel and Mustar, 2017).
Understanding of relevant concepts and theories about the business model
A business model basically describes that how an organisation will creates, deliver and capture value for it self in the economic, social, culture and other concepts and includes formulation of various strategies and plans on the basis of some relevant concept and theories (Speake and Kennedy, 2019). As per the view point of Jouison Estele, the concept and theory of Business model basically includes the stakeholders theory, Convention theory and resources based theory that provide a core strategy for profitably doing a business. Beside this, as per the thinking of Andrea Ovans, 2015, various business concepts and models are used by organisation for having foundation and creation of a well structured and efficient organisation. Use of Business model canvas is being made by Ultra beauty cosmetic to have a proper and effective business model which includes all the necessary components and aspects of a business organisation (Pirotta, Polidano and Warrington, 2018).
As per the view point of Tom Mock, 2017, business model canvas is an entrepreneurial tool that enables an individuals or organisation to easily visualize, design and reinvest its business model (Grima and Pavia, 2019). Business model canvas was developed by a Swiss business theorist, Alex Osterwalder which is basically a farmworker or physical chart that is divided into nine building blocks thus, provide a tool to improve and bring clarity in business stricture and activities. Theses 9 blocks and there explanation is provided below:
Value propositions:- it includes the the things and services actually made and produced by the organisation and emphasise over all the benefits and features of product together with the associated risks and issues (Smith and Rees, 2017).
Customer segments:- it is the most important part of a business model canvas and related with the target customers. The potential consumers are selected and finalised by any organisation after proper evaluation of customers lives, their social habits, there gender, demands, needs, etc. that helps in decision making regarding the most profitable customer segment (Kim and Patel, 2017).
Channels- it includes the modes and ways that are used by an organisation to deliver its product to customers. Use of physical channel that includes retail system and distribution network use of internet and other online channels are also used by the organisation with the rise of technology (Wirtz, 2019).
Customer relationship:- this part of business model canvas is associated with building relationship and effective connection with the customers which could be done trough making use of online website and other digital and online media and networking (Ashley, Schaap and de Bruijn, 2016).
Revenue streams:- this aspect is related with how an organisation actually going to make money for its value preposition. It can includes a various modes of sale like freemium model, licensing model or subscription model (Girella, Tizzano and Ferrari,2019).
Resources:- this factor includes all the possible asset and resources that are used and consumed by an organisation to produces and deliver the value propositions. It includes employees, store, manufacturing plant, factories, delivery trucks, programmers, strong workforce, etc (Jaccard and Jacoby,2020).
Key partners- these are the associated or related parties that helps an organisation in growing and working effectively. The most common key partners of an organisation includes its buyers and suppliers (Abdelkafi and Täuscher, 2016).
Key activities:- it includes the main task, function and activities that are performed by a business organisation and makes the business model work. Like for an manufacturing company key activity is its production process (Mansour and Barandas, 2017).
Cost structure:- it includes the various cost and expenses made to run a business effectively that includes expanses and cost of payroll, rent, advertising, material and everything else (Whalen and Kijne, 2019).
Thus, it can be said that use of Business model canvas by Ultra beauty cosmetics facilitates speed and agility in its business operation through providing a guidances and better way of thinking for each key components of an efficient and effective business model.
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Discussion of conceptual and theoretical issues-Business model canvas
The concept and theoretical issues related with business model canvas incudes three steps that are assisted with general characteristics of the main fields of research on circular business model, identifying that how circular economy principles can be applied to various components of business model together with evaluating how circular economy principles exceeded the components of business model and finally includes the conceptualisation of the framework of the business model canvas and also includes identifying new components of business model (Carroll and Brown, 2018). Following Business model canvas is made by Ultra beauty cosmetic company to clearly structure and show its business model:
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Key Partners
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Key Activities
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Value Propositions
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Customer Relationship
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Customer Segments
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Key Resources
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Channels
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Cost Structure
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Revenue Streams
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Summary and clear understanding of principal issues relevant to topic
On the basis of above findings it can be summarised that cosmetic industry of Europe is growing with a rapid speed thus, leading many opportunity for Ultra beauty cosmetic. Beside this, the unique and exclusive cosmetic products that are offered by this organisation is also ensuring its success in the market (Traunmüller, 2016). Thus, Ultra beauty cosmetic is capable of facing the competition prevailing in the market as none of the competitor is providing cosmetic products especially for child and young female (Aagaard and Lodsgård, 2019). Further use of business model canvas is showing a clear picture about its activities that is also reflecting that an effective planning regarding various aspects of business model is made which also lead to the success of Ultra beauty cosmetic (Tesapaet and Pavapanunkul, 2019).
METHODOLOGY
Research methodology is the section in which proper information about tools and techniques will studied properly. There are many information which are provided in this study, so it is important to determine ways to deal with it (Flick, 2015). There is use of different tools and techniques for determining external market and its impact on overall growth of Ultra Beauty cosmetics company. This section is important in business research pan because this discloses information which is specific and relevant for understanding and evaluating changes properly. In order to study complete and relevant information so this makes information relevant and specific (Gioia, Corley and Hamilton, 2013).
Selection of models for strategic analysis
Strategic analysisrefers to collection of information about factors which might affect business operations. It is important for people to deal with changes because business organisation has to be face changes of society. There will use of porter' s five force model for strategic analysis and collection of information about conducting activities. In five force model, there will study about percentage of competition in industry (Sultana, R., 2017). Apart from this marketing mix will also discuss because this is the reason of change for which individuals are working. Marketing mix provides information about components which has to be considered for marketing new product and services by Ultra Beauty cosmetics company.
Selection of clear aims and objectives
There are some aim and objectives which have setted while conducting this study. There is requirement of complete and specific information about conducting activities properly (Green, Camilli and Elmore, 2012). There will change in working operations, so it will be easy for researcher to understand and determine what has to be achieved or study is performed in which direction.
Aim of this study is: To study the business development factors for cosmetics (Make up) company operating in Malta. A study on Ultra Beauty cosmetics.
Objectives of this study are-
- To study about the business plan of Ultra Beauty cosmetics.
- To evaluate the marketing mix and STP framework for successful establishment of business.
- To discussion about the Business canvas model for studying role of other parties in order to operate Ultra Beauty cosmetics in effective manner.
- To evaluate the strategies that support Ultra Beauty cosmetics in increasing its sales and revenue in industry.
With the help of this study, it is clear and easy to determine what has to be done through which these can be achieved (Kumar, 2019). It is important and specific for individuals who are thinking to operate Ultra Beauty cosmetics because with use of STP and marketing mix, it will be easy to analyse which of the following consumers have to be targeted, what are marketing strategies, etc. There will study of these frame work for determining and understanding its role for growth and development, it is important for partners to understand how activities must be planned. Hence possibilities of getting hike to Ultra Beauty cosmetics to more.
Selection of appropriate research methodology
There are tools and techniques which are used to conduct study in relevant manner and performing activities for determining activities properly (Mackenzie and et. al., 2012). There is some justification which has to be provided to reader, so they get relevant and justified information.
Research philosophy:- Research philosophy provides information about taking care about factors which has to be taken care while conducting research activities. Interpretivist, pragmatist, positivism are three ways in which investigation will be conducted (Mackey and Gass, 2015). Positivism philosophy is best for completing this study because this focus on sources which might affects research outcome, conclusion and recommendations.
Research approach:- There is a specified way in which study is conducted which covers under research approach. Inductive and deductive are two way through which essential components have to be considered (McCusker and Gunaydin, 2015). Deductive study is best for this study because this focuses on information which is essential for establishing business and have aimpct on operations as for proper completion of whole study. This approach is better with qualitative research strategy used in this study (Wiek and Lang, 2016).
Research strategy:- There is a particular way to complete the study because information is important as this might affects establishment of new cosmetic venture (Miller and et. al., 2012). There two ways in which study can be conducted i.e. qualitative and quantitative method. For this study, individual is using qualitative method for which data is presented in graphical form. In this method there is answer of why as well if some information is presented. In order to analyse human behaviour about establishing a business organisation and factors which has to be considered (Quinlan and et. al., 2019). With using this strategy, it will be easy for researcher to evaluate and understand strategies in proper and effective manner.
Research design:- Research design is the presentation of information through which proper and structured format can be known. There are two ways in which investigation can be shown i.e. descriptive, experimental, exploratory (Riedl, Davis. and Hevner, 2014). The best design is descriptive because this is the way which covers complete and in- depth information about conducting activities. This is the information which is reader will get appropriate information about dealing as new venture in industry.
Sources of information:- There are two ways through which information can be collected i.e. primary and secondary source of information (Walliman, 2017). But for starting new business and starting as new organisation in cosmetic industry. There will use of secondary information because this provides in- depth and overall information about starting new business (Scotland, 2012). If individual does not have knowledge about models, theories and frameworks, then it will be easy to determine which is relevant and effective for completing the study.
Research ethics:- In order to complete the study, there is use of some ethical and important components. It is crucial for people to maintain confidentiality and informed consent of individuals. Hence this study will become relevant and crucial in this study (Silverman, 2016). There are some sources of information for collecting secondary information, so it is easy for them to understand and evaluate policies properly. With consideration of ethic, study will become relevant and appropriate and can used as secondary sources of information for future study (Tuohy and et. al., 2013).
Feasibility analysis
When some business has to be established in market, there is requirement of complete and appropriate information about making activities for achieving targets. It is specific and appropriate for mangers to determine and evaluate operations properly (Jaccarini and Refalo, 2017). When activities are conducted as per external market, then, it is easy for managers to get positive impact and possibilities of business growth is more. For conducting an project or launching new business feasibility study is one of the important component through which activities will be performed properly. Feasibility study is done to study and evaluate industry, organisation, market, finance, etc. because these are the crucial factors which has to be considered.
Product feasibility:- Ultra Beauty cosmetics will provide cosmetic items such as mascara, oil, shampoo, liner, etc. for female and children. Children are targeted because Malta is the country where scope of fashion industry for children are increasing (Rodrigues and et. al., 2016). This is so because the majority of parents wants their children to be enter or perform within the fashion industry by performing modelling or acting. This require them to have the cosmetics that help them in looking good and preparing them for their performance without harming their skins within such an early age. But the major issue within Malta industry is that there are larger number of cosmetics organisation are present but they all deals within offering of products that are prepared while keeping main focus over the customers that are in their adults (Ciriminna and et. al., 2016). Despite of this there is not any organisation available which create cosmetics by considering the skin requirement of children as the products of adults usually remain harsh to the skin of children. But due to unavailability of such products the majority of people within the fashion industry apply those harsh chemical products to the skin of children or females as a result of which it affect their skins in term of creating bumps, marks, breakout or even sometimes results into skin cancer which is one of the most riskiest thing (Barel, Paye and Maibach, 2014). Therefore, it can be said that within the market of Malta there remains a huge requirement for the cosmetic products for the children and female in their early age in order to reduce the issues that people are mainly facing due to skin exposure to harsh cosmetics. Therefore, it is a greater opportunity for the Ultra Beauty Cosmetics within the market of Malta as it is going to offer the cosmetics products to the children as well as females which are designed while considering the major need as per their skin type and age. The new product of Ultra Beauty cosmetics is herbal cosmetics of female and children (Selpa-Rivera, 2015). As there is increment in trends for requirement of cosmetics for children, so it is possibilities of getting growth is more.
Industry Feasibility:- The industrial feasibility is basically refers to the process of evaluating the several factors that are present within the industry in order to determine that whether the situation of industry would remain favourable or against to the business idea of Ultra Beauty cosmetics or not (Larasati, Yasri and Abror, 2019). This support in adjusting the business idea as per market requirement along with determining the threats or opportunities that are present in front of the organisation. Ultra Beauty cosmetics is going to come with cosmetic products which is important and specific for people to deal with changes properly. This is the sector which is growth but at the same time, there are many changes which are taking place in this industry, so partners of Ultra Beauty cosmetics must evaluate legal, political and other external market components associated with this industry (AUGUSTINE, BHAVANAVENUGOPAL, KALARIKKAL and THOMAS, 2016). The cosmetic market of Malta consists of around 500 million consumers that are being served by the single and harmonised piece of legislation which directly get applied among all the member state of EU. These regulations mainly focuses over the consumer health and protection that may get influenced by the use of cosmetics products. These regulations are related with the monitoring of composition and labelling Hence there are some legal laws and regulations which has to be fulfilled because cosmetic industry is specific and particular about quality of products. Apart from this there is important role of percentage of competition in industry (Lunt and et. al., 2014). As in Malta, there is high competition in cosmetic industry, then it is tough for Ultra Beauty cosmetics to operate but they have new range of product i.e. cosmetic products for children who wants to ready for photo shoot, pictures, etc. and they is no other organisation providing organic products at affordable prices.
Research limitation
The current report is about the business plan of Ultra Beauty cosmetics which is planning to start its business by developing outlets within Victoria city of Malta for offering the cosmetic products by targetting the children and females. But while performing this investigation number of limitations are being identified by the investigator such as time provided for the investigation was very much limited which restrict the investigator to present the detail information regarding the market as the cosmetic industry is very broad and to study it properly it require larger amount of time period. On the other side the investigation is also performed using secondary sources only which is quite helpful in determining the situation of industry and opportunity that are present. But if the primary information can be gathered over this area then it would be more helpful for the Ultra Beauty cosmetics as it will then support in determining the views of customers about the product that it is going to offer in marketplace. This will support in determining the actual views that customer hold toward the offering of the Ultra Beauty cosmetics along with the demand they have toward the organisation and its offering. Therefore another limitation of this investigation is that research get restricted to the secondary data only.
DATA/ RESULT ANALYSIS
Clear presentation of results based on the strategic analysis
For achieving the success as well as sustainability within Malta it become crucial for the Ultra Beauty cosmetics to conduct the strategic analysis in effective manner which support in determining the feasibility of project. Additionally it also support in forming up the effective strategies that support in operating the business activities in effective manner (Borg, 2017). Therefore the Ultra Beauty cosmetics performed strategic analysis by making use of Porter's five force model which performs the evaluation of five major factors present within the industry which support in determining the actual position of the organisation (Lunt, Horsfall and Hanefeld, 2015). By performing porter's five force model following information has been gathered,
Bargaining power of buyer:- The bargaining power of the buyers within the cosmetics industry of Malta is relatively higher as the competition within the industry is relatively higher as a result of which customer have larger number of products from which they can choose to purchase (Ángel, 2019). This in turn increase the chances of getting brand switch so frequently among the customer when the cosmetics are being offering similar benefits at relatively lower price. But apart from this risk there remains an opportunity for The Ultra Beauty cosmetics as they can attract the early age children and women toward their products or services by introducing them with its benefits (Bijaoui, 2016).
Bargaining power of supplier:- The bargaining power of supplier within the cosmetic industry is relatively lower as there are larger number of supplier available within the industry that are offering raw material for producing the cosmetics (Carr and Lorenz, 2014). Therefore the Ultra Beauty cosmetics that offer cosmetics product can approach suppliers as per their budget and quality they need for producing their cosmetics products. It also act as an opportunity for the Ultra Beauty Cosmetics as it is going to establish its business and for getting supplies it can bargain with the suppliers as per their budget and comfort (Frynas and Mellahi, 2015).
Threat of Substitute:- The threat related with the substitution of product is relatively lower as there are very few options that customers can use for switching the product but being in fashion industry customers are required to use cosmetic products for their events and shows (Savona-Ventura, 2016). The alternatives of skin care product are home remedies as well as other skin products that are mainly created at home or with the help of Ayurveda. But majority of people think these kind of substitute as old fashion which take more time which is beneficial for Ultra Beauty cosmetics as it help them in keeping the customers align with its offerings.
Competitive rivalry:- The competition within the industry is relatively higher as there are larger number of players already operating as well as offering range of cosmetics to cater the different need of people (Porter Lofaro, 2016). This in turn make it more difficult for the Ultra Beauty cosmetics to deal in this marketplace but as it is planning to cater the need of unique target market i.e. cosmetic products for the young age children and women having the age group between 4-18 years. This make it possible for the Ultra Beauty cosmetics if the quality of product is high.
Threat of new entry:- The cosmetics and skin care industry is more competitive which attract the new entrant to perform its operations within the industry in effective manner (Curwen, and Whalley, 2015). But there are larger number of entry barrier that are imposed by existing players which make it difficult to operate business operations at initial stage but when it get enter into market it become easier to deal with the market factors present.
Appropriate analytical interpretation of results
According to above mentioned strategic analysis, it has been determine that there is an intense level of competition or opposition among companies within fashion industry that directly impact over Ultra Beauty Cosmetics overall productivity and profitability ratio. However, the bargaining power of buyer is relatively high whereas supplier has low bargaining power because there are several firms are available inside industry. Additionally, Ultra Beauty has less threat of substitute because no other company has been taken an initiative in delivering organic cosmetics for young females and children. Furthermore, it has a less threat of new entry because fashion industry contain several rules and regulation that restricts companies to enter into market with an aim of exploring its market share (Glen and et.al., 2015).
Application of result to research objective and literature
It has been signified from the above explained report that with the rapid growth of fashion industry, it provide enormous opportunities for companies to explore its sales performance in a better way. Along with this, due to the increasing demand of health conscious product among customer as well as desire of parents to send their children towards fashion sector, it generate an impressive level of opportunity for Ultra Beauty Cosmetics to obtain profit maximisation in an efficacious and expeditious manner within prescribed time limit. However, with the proper utilisation of available resources and examining the competitors potentiality, it enable Ultra Beauty to acquire best position within fashion industry in a stipulated time limit without any hindrances (Boh and Strom, 2016).
To study about the business plan of Ultra Beauty cosmetics.
In every form of organisation, the concept of business plan plays a significant role as it help establishment to identify its potentiality and also empower them to tackle corrective course of action in order to obtain customer satisfaction in an amended manner. In relation to Ultra Beauty Cosmetics, for attaining sustainable long term growth and development they make an initiative in develop a business plan which help them to understand the overview of present market condition. Moreover, it also motive them to take corrective course of action by developing best strategies, tactics, techniques in order to meet out the requirements of targeted audience in a n improved manner. However, Ultra Beauty Cosmetics make an attempt to produce organic cosmetic products for young females and children as majority of UK population are in demand of getting healthy and hygienic skin care commodity. Moreover, the product which Ultra Beauty Cosmetic render is that lipstick, foundation, mascara, oil, shampoo, Kohl by keeping high quality with an intent of acquiring high level of profit margin ratio. Along with this, company takes an initiative in dealing its services through manufacturing and retail division as well as company is operating its business process in partnership form. Furthermore, company also contain shareholders w
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