Case Study

PROGRAMME Bachelor of Commerce in Entrepreneurship

MODULE Strategic Business Planning for Entrepreneurs
YEAR Two (2)
INTAKE July 2023 Semester 1
Marks 30
Read the scenario below and answer the following questions.
Sarah is a budding entrepreneur who is passionate about starting her own organic skincare brand. She has conducted
extensive research on the market, identified potential suppliers for natural ingredients, and even crafted a few product
prototypes. However, Sarah is unsure whether she should invest time and effort into developing a formal business plan
before launching her venture. She seeks guidance on the importance of creating a business plan and how it can contribute
to her entrepreneurial journey. After years of experimenting with different products and studying the benefits of organic
skincare, she has decided to turn her passion into a business. Sarah dreams of starting her own organic skincare brand that
not only promotes healthy and radiant skin but also focuses on sustainability and eco-friendly practices.
Sarah understands that in order to successfully launch and market her brand, she needs to understand her target audience
and their specific needs. To achieve this, she plans to utilize segmentation strategies to divide her potential customers into
distinct groups based on various factors. By doing so, Sarah aims to tailor her marketing efforts and product offerings to
each segment, maximizing the chances of success for her organic skincare brand.

Question 1 (12 Marks)

Relating to the scenario above, explain the three main reasons why Sarah as an entrepreneur should draw up a business
plan, highlighting the significance of each reason in the entrepreneurial process. Use relevant examples to support your
answer.

Question 2 (18 Marks)

Based on the scenario above, define market segmentation and explain any four types of segmentation, providing an
example of each.