Men’s

ADAM’S COSMETICS Cosmetics’

Destination

Business Plan Report

Prepared by:
FRIENDS ENTERPRISE
 Members of “FRIENDS ENTERPRISE”:

Name ID No.
Asif Ul Islam 1510812630
Kamrul Hasan 1510560630
Shaurov Hossain 1510808030
Tahmidur Akando 1511630030
Ahmed Sajjadul Alam 1512124630

PREPARED FOR:

Wasik Ali Khan

Lecturer
Department of Marketing and International Business
School of Business
North South University

2
 April 26, 2015

Wasik Ali Khan

Lecturer
Department of Marketing and International Business
North South University

Subject: Letter of Transmittal

Dear Sir,
With due respect we, the Friends Enterprise have reported on a business plan under the
course: BUS 101

Though we are in learning curve, this report has enabled us to gain insight into the core fact of
opening a business. So it becomes as an extremely challenging and interesting experience.
Thank you for your supportive consideration for formulating an idea. Without your inspiring,
this report would have been an incomplete one.

Lastly we would be thankful once again if you please give your judicious advice on effort.

Yours’ sincerely,

Asif Ul Islam Kamrul Hasan Shaurov Hossain Tamidur Akando Ahmed Sajjadul Alam
ID: 1510812630 ID: 1510560630 ID: 1510808030 ID: 1511630030 ID: 1512124630

3
 Table of Content

Page
SL Content
No
01 Executive Summary 05
02 Introduction 06
03 Products and Services 07
04 Finance and Investment 08
Operations and Human
05 14
Resources
06 Marketing and Sales 18
07 SWOT Analysis 19
08 Taxation 20
09 Limitations 21
10 Conclusion 21

4
1. Executive Summary:
Adam’s Cosmetics is a place where every men can buy their desired cosmetics comfortably
through online at a reasonable price. This men cosmetics include Face-washes, Perfumes and
Deodorants, Hair gels, Shaving gels and foams, After Shave Lotions, Skin Care Creams and
Lotions, Shampoos, Powders etc. Our company imports branded men’s cosmetics like Garnier,
Emami, Ponds', L’Oréal Paris, Axe, Wild Stone, Fogg etc. to satisfy our customers’ need of
buying cosmetics. A huge proportion, say around 70% to 80% of our imports, is from India.
Our company is giving customers an ample opportunity to select their own brand and informs
us online what type of cosmetics they want. We will try our level best to satisfy the demand of
individual customer promptly and effectively.

Our market opportunities are:

• Subscription program for new brands each month.
• Advertising with social networking technology and Google Ad Words.
• Affiliate program.

To operate with ease and success, we have three important advisors on our team- a Financial
Advisor, a Marketing Advisor and a Legal Advisor. Looking at our organizational chart one
will come to know that our company is rather flat. The Managing Director bears an important
responsibility to come to a decision when the managers fail to come to a general agreement.

Our startup costs is approx. Tk. 1,67,00,514. We presumed that our monthly cost of operating
the business will be about Tk. 11,47,408. Our target is to import 4000 products of different
cosmetics and sell the entire stock within first 2 months of business. By selling these 4000
products, we hope we will be able to make a profit of about Tk. 4 lac. Then we will be
increasing our imports and try to expand our business gradually.

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2. Introduction:
Our business is a partnership business. Five of us- Asif Ul Islam, Kamrul Hasan, Shaurov
Hossain, Tamidur Akando and Ahmed Sajjadul Alam - each investing Tk. 36 lac to start the
business. We invested this amount of money on 1st March 2015.

We have a management team. Our management team consists of a Marketing Manager who
will take key strategic decisions that will lead to company growth. This will be done by paying
constant attention to the macro environment. There is an Operations Manager who will
manage the output of the company by recruiting & selecting/firing right custom representatives.
He/She will also manage the selling system and the online based social and other network for
taking order and feedback from customer. We also have a Financial Manager who is engaged
in budgeting, forecasting cash flows, and determining the way to invest and finance projects so
that expenses can be minimized.

We have three advisors. We have a Financial Advisor who will help us by providing services
such as investment management, income tax preparation and estate planning. We have a
Marketing Advisor who aids in designing a detailed marketing plan to determine the
marketing message and identify tactics to create our brand name. They will work accordingly
to implement the marketing strategy. It is their duty to affirm that their marketing efforts would
provide the company with the best results. We also have a Legal Advisor to help us with the
legal aspects of the business. He/She will show us the proper way to make a deal, create policies
and carry out detailed research by abiding with the company and government rules and
regulations.

Our vision is to be the leading importers and sellers in top quality men’s cosmetics in
Bangladesh within the next 10 years. Our mission is to ensure that our platform works by
selling high quality men’s cosmetics at competitive prices.

6
3. Products and Services:
Our company imported various branded cosmetics such as like Garnier, Emami, Ponds',
L’Oréal Paris, Axe, Wild Stone, Fogg etc. from foreign countries, esp. from India.

The benefits to customers of buying our products are:

i. Using cosmetics of their own desired brands and showing off to their friends.
ii. A feeling of being exceptional from others.
iii. They can also resell their cosmetics to their friends.

The unique features of our service are listed below:

i. Nowhere else a website can be found that makes it so easy to obtain men’s cosmetics.
ii. Our delivery across Bangladesh will be top notch.
iii. Cosmetics can be ordered from anywhere in Bangladesh.

To collect Import Registration Certificate (IRC) we submitted following documents with

application:

Trade License
• National ID of the company owners.
• Certificate of Treasury Chalan.
• Deed of Partnership
• Membership Certificate of Relate Trade Association
• Certificate of Bank Solvency.

TIN Certificate
• Memorandum and Articles of Association and Certificate of Incorporation.
• Rent receipt of office premises.
• Applicant’s photograph is required.

We have to pay required fee to renew Import Certificate (IC) every year.

We started this import business investing a total of Tk. 1,80,00,000. After one year of business
we want to see our business having at least 20% market share and has a profit of about Tk. 40
lac in hand.

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4. Finance & Investment:

Source of Capital:
To finance our startup costs and operate our business for the first time, we the partners, invested
Tk.36 lac each. We raised this money by selling part of the land we inherited.

The cost of our intellectual property is given below:

Basic package for copyright registration with Business Development Bangladesh:

Our fee Tk. 400

Completion of government forms Included
Filing of Copyright Application Included
Government Filing Fee Tk.4,000
Shipping and Handling Tk.1,200
Taxes (GST) Tk. 260
Total Tk.5,860

Basic package for Trademark Registration with Business Development Bangladesh:

Our Fee Tk. 8,000

Basic Trademark Search Tk. 3,200
Preparation of the Trademark Application Included
Filing of the Trademark Application Included
Government Filing Fee Tk.20,000
Final report Tk. 1,200
Taxes (GST) Tk. 600
Total Tk.33,000

The list of other start-up costs is shown below:

Office rent, Lights, fans & AC’s Tk. 10,00,000
IPS Tk. 2,00,000
Company cars Tk.1,10,00,000
Total Tk.1,22,00,000

8
Our import cost of 4000 product is given below:
C&F value Tk.21,00,000
(+) 1% landing charge (21,00,000×1% ) Tk. 21,000
(+) 1% insurance (21,00,000×1% ) Tk. 21,000
Dutiable value Tk.21,42,000
Customs Duty (25% of TK.21,42,000) Tk.5,35,500
VAT 15% of (C&F+VD) i.e. 15% of 26,35,500 Tk. 395,325
Tk. 9,30,825

AIT (5% on Tk.21,42,000) = Tk.1,07,100

Commercial import ATV = (5% on CD+VAT)
= 5% on (Tk.5,35,000+Tk.3,95,325)
= 5% on Tk.9,30,825
= Tk. 46,541 approx.
C&F and other = 4% of Tk.21,00,000
= Tk.84,000
Total import cost
=Tk. (21,42,000+9,30,825+1,07,100+46,541+84000)
=Tk. 33,10,466 approx.

Here is the forecast of our monthly operational cost:

Fixed cost:
Approx. monthly depreciation of company cars
(1600000/12) Tk. 1,33,333
Approx. monthly amortization of 10-year patent Tk. 275
Rent of storehouse Tk.1,40,000
Salary to employees Tk.8,00,000
Accountancy costs Tk. 6,000

Marketing:
Google Ad Words Tk. 16,000
Yahoo Tk. 14,000
Print Tk. 4,000
Facebook Tk. 3,000
Other Tk. 3,000

9
Utility costs:
Utility bills Tk. 20,000
Other (parking etc.) Tk. 5,000
Total Fixed Cost Tk.11,44,608

Variable costs:
Purchase price of 4000 products Tk. 25,41,000
Stationary Tk. 500
Delivery Tk. 2,000
Other Tk. 300
Total variable cost Tk.25,43,800
Total operational cost = Tk. (11,44,608 + 2,800)
= Tk.11,47,408

Our pricing strategy:

Total import cost Tk. 33,10,466
Total operation cost of 2 months (2×Tk.11,47,408) Tk. 22,94,816
Total cost Tk. 56,05,282
(+) Approx. 8% profit Tk. 4,47,718
Total Selling Price of 4000 products Tk. 60,50,000

Our Forecast Sales:

We imported 4000 products of different branded cosmetics and we target to sell this entire
stock within the first 2 months and we are hopeful about achieving our target. We are making
only approx. 8% profit for the time being, since we are new comers in cosmetics market.

Product March April Total

Face Washes 1,00,000 2,07,500 3,07,500
Men Perfumes and Deodorants 15,00,000 23,24,450 38,24,450
Hair gels 43,000 75,000 1,18,000
Shampoos 5,00,000 7,20,000 12,20,000
Shaving gels/foams 1,16,000 3,00,000 4,16,000
Men’s Soaps 24,050 30,000 54,050
After Shave Lotions 23,000 40,000 63,000
Body Lotions 22,000 25,000 47,000
Forecast Sales 23,28,050 37,21,950 60,50,000

10
The list of our selling price of different products is given below:
600 pieces of Men Face Washes:
i) 300 pieces of Garnier Men face wash @ Tk. 350 = Tk. 1,05,000
ii) 150 pieces of Ponds’ Men Face wash @ Tk. 550 = Tk. 82,500
iii) 150 pieces of L’Oreal Paris Men Expert @ Tk. 800 = Tk. 1,20,000
Total Tk. 3,07,500

1000 bottles Men Perfumes and Deodorants:

i) 200 bottles of Fogg @ Tk. 380 = Tk. 76,000
ii) 300 bottles of Axe @ Tk. 390 = Tk. 1,17,000
iii) 100 bottles of Wild Stone @ Tk. 480 = Tk. 48,000
iv) 100 bottles of Armani @ Tk. 20,014.50 = Tk. 20,01,450
v) 100 bottles of Polo @ Tk. 9800 = Tk. 9,80,000
vi) 100 bottles of Nivea @ Tk. 750 = Tk. 75,000
vii) 100 bottles of Yardley London @ Tk. 950 = Tk. 95,000
viii) 100 bottles of Vince Camuto @ Tk. 4320 = Tk. 4,32,000
Total Tk. 38,24,450

500 Pieces of Hair gel

i) 300 Pieces of Set Wet @ Tk. 300 = Tk. 90,000
ii) 200 pieces of Gatsby @ Tk. 140 = Tk. 28,000
Total Tk. 1,18,000

500 bottles of Shampoo:

i) 100 bottles of Clear Men @ Tk. 350 = Tk. 35,000
ii) 200 bottles of Abba @ Tk. 4,500 = Tk. 9,00,000
iii) 100 bottles of Park avenue beer @ Tk. 350= Tk. 35,000
iv) 100 bottles of Amika Park @ Tk. 2500= Tk. 2,50,000
Total Tk. 12,20,000
400 pieces Shaving gels/foams
i) 200 pieces of Gillette shaving gel @ Tk. 480 = Tk. 96,000
ii) 100 pieces of Gatsby Wet Shaving gel @ Tk. 1500 = Tk. 1,50,000
iii) 100 Pieces of Gelleme Shaving foam @ Tk. 1700 = Tk. 1,70,000
Total Tk. 4,16,000

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 800 Pieces of men’s Soap
i) 100 piece of Dove soap @ Tk. 320 = Tk. 32,000
ii) 350 pieces of Life Boy Soap @ Tk. 23 = Tk. 8050
iii) 350 pieces of Ice Cool Soap @ Tk. 40 = Tk. 14,000
Total Tk. 54,050

100 pieces of After Shave Lotion

i) 50 pieces of Denim After Shave Lotion @ Tk. 600 = Tk.30,000
ii) 50 pieces of Gillette After Shave Lotion @ Tk. 660 = Tk. 33,000
Total Tk. 63,000

100 pieces of Body Lotion

i) 50 pieces of Nivea Men Body Lotion @ Tk. 200 = Tk. 10,000
ii) 50 pieces of American Crew Citrus Mint Body Lotion @ Tk. 740 = Tk. 37,000
Total Tk. 47,000

Grand Total: (Tk. 3,07,500 + Tk. 38,24,450 + Tk. 1,18,000 + Tk. 12,20,000 + Tk. 4,16,000 +
Tk. 54,050 + Tk. 63,000 + Tk. 47,000)
= Tk. 60,50,000

So, Expected Profit at the end of 2 months

=Tk. (60,50,000-56,05,282)
=Tk. 4,44,718

This means that average monthly expected profit will be approx. Tk. 2,22,359. So, each partner
will end up having Tk. (2,22,359 ÷ 5) = Tk.44,472 approx. We think that this amount of profit
per head is not bad for a new comer in a competitive market like cosmetics market.

We are not taking any loan for the first year. We do not believe that banks would like to give
loans to a new business like ours. After a year of operation with our own fund, we hope that
our business would be well established as a profitable business and we would go for bank loan
for higher imports and expansion of the business.

Out of our investment of Tk. 1,80,00,000. About Tk.1,67,00,906 was invested directly into the
business, that is, our all types of costs added up to approx. Tk. 1,69,66,906. We kept about Tk.
13 lac in bank as back up money in case we need that in emergency.
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Breakeven Analysis:
We know that Breakeven Analysis is used to determine when a business will be able to cover
all its expenses and begin to make a profit. It is important to identify a business’s startup costs,
which will help to determine its sales revenue needed to pay ongoing business expenses.

We also do a breakeven analysis for our company. By analyzing, we find our breakeven point
as well. Here is the average breakeven point in units & BDT of our company.

60,50,000
Our average selling price =
4000
= 1512.5

Breakeven Point (in Units):

Our Total Fixed Cost = 11,44,608
Our Variable Cost Per Unit = 25,43,800 ÷ 4000 = 635.95
Our Contribution to fixed costs per unit = 1512.5 – 635.95 = 876.55

We know,
Total fixed costs
Breakeven point (in unit) =
Contribution to fixed costs per unit
, ,
So, our breakeven point (in unit) =
.
= 1306 Approx.

Breakeven Point (in BDT):

Our Total Fixed Cost = 11,44,608
Our Variable Cost Per Unit = 635.95
Our selling price = 1512.5
We know,
!"#$% &'()* +",#,
Breakeven point (in BDT) = ./001/234 5678 940 :;18
-
<0154

, ,
So, our breakeven point (in BDT) = =>?.@?
-
A?AB.?
= 19,73,462 Approx.

13
5. Operations and Human Resource:
Our company building is at Bashundhara. Address Road # 13, Block # F, Bashundhara, Dhaka-
1229. Since location is a key factor to carry out a business successfully and Adam’s Cosmetics
is an online business, it will be prudent to plan out how Adam’s Cosmetics Plans to have a
superb location in cyberspace. The key factor in raising a business ranking is search results.
This is called Search Engine Optimization. We have 4 strategies to get results:

i. Finding the most popular keywords related to cosmetics by using Google Ad Words
keyword.
ii. We will add in those keywords in our TITLE tag.
iii. Every page will contain vivid descriptions in their mega tags.
iv. Use keywords in our URLs whenever possible.

We will distribute our products online through our website acsbd.weebly.com. Customers will
be able to place their orders online. Adam’s team will process and carry out the order on the
same day of online payment. All orders will be delivered through Courier Service to the
shipping addresses described by the customer. Selling our products online will help us to reduce
costs and pass on the benefits to customers in the form of lower prices.

Recruitment and selection

There are 7 steps we follow in the recruitment and selection process. They are:
i. Identifying job requirements.
ii. Choosing sources of candidates through Internet, Schools, Employee
Referrals, Promotions from within the firm, Colleges and Ads.
iii. Reviewing applications and resumes.
iv. Interviewing candidates.
v. Conducting employment tests.
vi. Conducting follow-up interviews.
vii. Selecting a candidate and negotiating an offer by compensation and benefits, job
performance expectations, and accommodation for disabilities.

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Training
Employees are requesting us for training to gain skills and knowledge that will prepare them
for new job opportunities. After operating for six months, we believe that our business will
have more funds and then we will make training a vital part of selecting and hiring employees.

Compensation
The HR Department must find a balance between a good compensation package and keeping
costs reasonable. Here are the salaries and benefits that our employees will receive:
Managing Director: Salary of Tk. 1,75,000 and a car.
Marketing Manager: Salary of Tk. 1,25,000 and a car.
Operations Manager: Salary of Tk. 1,25,000 and a car.
Financial Manager: Salary of Tk. 1,25,000 and a car.
Financial advisor : Salary of Tk. 1,00,000 and a car.
Marketing advisor: Salary of Tk. 1,00,000 and a car.
Legal advisor: Salary of Tk. 1,00,000 and a car.
Marketing and Sales Representative: Salary of Tk. 50,000.
We have two marketing and sales representatives.
Customer Service Representative: Salary of Tk. 25,000.
We have two employees in this position.

Here are also other benefits that our employees will get:

Incentive Programs: Our employees will have the opportunity to earn more financial
rewards through our incentive program.

Health Benefits: This includes Discount Programs, Wellness Programs, and Health and
Dental Benefits.

We are going to rent 1st floor, 2nd Floor and 3rd Floor of a building for our business operation.
Our office will be on the first floor, Customer Service Center (CSC) on the second floor and
on the third floor will be our storage space.

15
Our company is adhered to Health and Safety, and Environment Regulations. There will be
sufficient tube lights and bulbs, fans, ACs and a clean and healthy working environment so that
employees can work happily and properly. We will throw away the waste in drum like boxes
named “USE ME” rather than throwing here and there or out or of window that may be
disturbing for the environment.

The list of our Human Resource (HR) is given below:

Managing Director (MD): The only responsibility of the MD is to come to a
decision when the managers fail to come to a consensus.

Marketing Manager: The Marketing Manager will take key strategic decision that
will lead to company growth. This will be done by paying constant attention to the macro
environment. This will help Adam’s Cosmetics to take the benefit out of any opportunity and
minimize any threat that will arise every business cycle operations. The Marketing Manager
consults with the Finance Manager and the MD and reports to MD.

Operations Manager: Duty is to manage the output of the company by recruiting

and selecting/ firing proper custom representatives. He will also manage the website and other
social sites. The Operations Manager consults with the Marketing Manager, the Finance
Manager and the MD. He/She reports to MD.

Finance Manager: He/She is responsible for budgeting, forecasting cash flows, and
determining ways to invest and finance projects so that expenses can be minimized.

Marketing and Sales Representative: Responsible for presenting and

company products to prospective buyers. He/She will also carry out field test for our products
to discover new potential markets. He/She is also responsible to devise ways to reach the
products to the consumers at lowest cost and find out ways to enhance product quality. The
Marketing and Sales Representative reports to the Marketing Manager.

Customer Service Representatives: Takes product evaluation from customers

and also responsible for sales returns, refunding and credit. The Customer Service
Representative reports to the Operations Manager.

Bookkeeper: The Financial Manager is responsible to ensure all bookkeeping duties are
done.

Accountant: The Financial Manager will ensure all accounting duties are done.

16
 Managing Director

Marketing Manager Operations Manager Financial Manager

Marketing & Customer Service Bookkeeper

Sales Representative
Representative Accountant

Fig: Our organizational chart

17
6. Marketing and Sales
Our marketing section carries out a research on our product. We do this by using primary data.
We have found that overall 70% of our respondents want to buy various cosmetics.

We also found that most of our customers like to buy cosmetics online every month to two
months. It is also found that the largest proportion of our customers spend somewhere between
Tk. 300 - Tk. 2000 on various different brands’ cosmetics purchase. We also sought out that
those who made cosmetics purchase most frequently spend Tk. 300- Tk. 2000 per product. Our
marketing research also tells us that if we sell at Tk.20 lower price than our competitors, there
will be more revenue for us.

Target market
Men.
18-50 years old.
Prefer online shopping.
Conscious about image and cleanliness.
Women buy as gifts for their boyfriends or husbands.

We will attract our new customers by selling cosmetics at reasonable price, advertising through
online, radio and television, offering customers considerable discount before religious festivals
and, in some cases, offering one free product for purchasing two.

We will promote our sales by offering sample and strengthening our distribution network.

Similar companies like us (i.e. thebodyshop.co.uk, mankind.co.uk) are our main competitors.
They have their already established business and strong brand name. In the first one or two
years we will make less profit per product by selling at more reasonable price compared to the
price charged by our competitors. We believe that we will be able to achieve considerable
market share after operating for a year or two. Once a mutual relationship between customers
and our company is built up, raising price little bit in the future will do no harm to the business
rather it will help us to increase our future profits.

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 7. SWOT Analysis

Strength
I. Our company offers products at a more reasonable price than that our competitors.
II. We give ample opportunity to the customers to select their own desired branded cosmetics.
III. Variation of different products.
IV. Well-designed website.
V. Corporate and social responsibility initiatives.
VI. User friendly storefront and customization software.

Weakness
I. Brand awareness.
II. We sell men’s cosmetics only through online; we do not have showroom in markets.
III. Lack of efficient employees to operate business through online.
IV. Lack of finance.

Opportunity
I. Subscription program for new products each month.
II. Advertising with social networking and Google Ad Words.
III. Affiliate program.
IV. We have opportunity to expand the business offering other men products such as branded
Sun-glasses, branded Jeans & Shirts etc.

Threat
I. More competitors, their businesses are already established and have strong brand name.
Survival question arises. It is difficult to face huge market competition and remain
competitive.
II. Unpredictable Political turmoil hampers the delivery process badly.

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8. Taxation:

The calculation of our import tax is shown below:

For 4000 products of different cosmetics,

C&F value Tk.21,00,000
(+) 1% landing charge (Tk.21,00,000×1%) Tk. 21,000
(+) 1% insurance (Tk.21,00,000×1%) Tk. 21,000
Dutiable value Tk.21,42,000

Customs Duty (CD) (25% of Tk.21,42,000) Tk.5,35,500

VAT = 15% of (C&F+CD) i.e. 15% of Tk. 26,35,500 Tk.3,95,335
Tk.9,30,825

AIT (5% on Tk.21,42,000) = Tk.1,07,100

Commercial import ATV (5% on CD+VAT)
= Tk. (5,35,500+3,95,325)
= Tk.46,541 approx.

C&F and other = 4% of Tk.21,00,000

= Tk.84,000

Total import taxation cost = Tk.( 2142333 + 9,30,825 + 1,07,1010 + 46,541 + 84000 )
= Tk.33,10,466 approx.

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9. Limitations:
We had to work a lot even till late night to make the report as perfect as possible.
We had to gather a lot of information. It was the first time for us to make such a thing
like this. So it was a little tough to gather all information and place it on the right place
in the report.
We had to collect all costs information (C&F value, Taxation rates, prices of different
products etc.) through online. Some of them can be backdated. Though we don’t know
any officer who handle these costs, that’s why we had to search a lot through google to
collect the information.

10. Conclusion
In conclusion we can say, our vision is to be the leading top quality men’s cosmetics importers
and sellers in Bangladesh within the next 10 years. Our target is to expand our business by
importing and selling other men products such as branded men Sun-glasses, branded Jeans &
Shirts etc.

We predict that we will be able to achieve this target after the fourth year of operation.

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