INTRODUCTION

The objective of this report is to give a detailed investigation about the soap making unit located in
OAUSTECH, OKITIPUPA. The report will discuss various aspects of the business, including the company's
product, market, competitors, management, financials, and suggestions for future expansion.

Vision: The goal of the soap making unit is to establish itself as a market leader in the production of
premium organic and eco-friendly personal care products that improve consumers' wellbeing and encourage
sustainable living.

Mission: The mission of the soap manufacturing facility is to create premium-quality, handmade soaps and
personal care products from natural, chemical-free, sustainably sourced, and ethically sourced ingredients.
Additionally, the soap making unit aspires to provide exceptional customer service, individualized care, and
a distinctive shopping experience.

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 PRODUCT VIEW
The soap-making unit creates a variety of handmade soaps using natural ingredients. These
ingredients include extracts from plants, organic oils like olive, coconut, and Shea butter, and essential oils
which are rich in vitamins and minerals that are essential for healthy skin. The unit's products are suitable
for people with sensitive skin because they are free of artificial scents, dyes, or preservatives

The product are available in a range of fragrances and styles, including natural unscented soap, herbal soap,
liquid wash, shampoo, bar soap and more.

BRIEF PROCESS OF SOAP MAKING

1. Measure and mix ingredients: The first step in making liquid soap is to measure and mix the
ingredients. This typically involves combining oils, such as coconut oil and olive oil, with a
potassium hydroxide solution to create a chemical reaction that forms liquid soap. Fragrance oils and
other natural additives, such as Aloevera or chamomile extract, can also be added at this stage.
2. Heat and dilute the mixture: Once the soap mixture is fully blended, it is heated and diluted with
water. The mixture is then left to cool and thicken for several hours.
3. Add fragrance and color: After the soap has thickened, fragrance oils and colorants can be added to
create a customized scent and appearance for the liquid soap.
4. Package and label: The final step is to package and label the liquid soap. It can be stored in bottles
or jars and labeled with the ingredients and any relevant information, such as the scent and usage
instructions.

TOOLS REQUIRED FOR SOAP MAKING PROCESS

 Stainless steel pot: A large stainless steel pot is necessary to cook the soap mixture.
 Immersion blender: An immersion blender is used to blend the soap mixture together quickly and
thoroughly.
 Thermometer: A thermometer is used to monitor the temperature of the soap mixture during the
cooking process.
 Measuring cups and spoons: Accurately measuring ingredients is crucial in soap making.
 PH strips: pH strips are used to monitor and adjust the pH level of the soap.

MANAGEMENT
An expert team of managers oversees the soap-making facility, and they are passionate about what they do.
A production manager, sales manager, and marketing manager are on the team, and each of them brings a
certain area of expertise to the company.

 Production Manager: The production manager is responsible for overseeing the soap-making
process, ensuring that products are made to the highest quality standards. They have extensive
knowledge of soap-making techniques and have been with the business for five years.

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  Sales and Marketing Manager: The sales and marketing manager is responsible for promoting the
business's products and increasing sales. They have a background in marketing and have been with
the business for two years.
 Finance Manager: The finance manager is responsible for managing the business's finances,
including budgeting, accounting, and payroll. They have a background in finance and have been with
the business for three years. In addition the soap making unit employs skilled workers who are
trained in the art of soap making. The workers are passionate about their work and take delight in
creating high-quality, handmade soaps that conform to the strict standards of the facility.

UNIT OF PRODUCTION
In the soap making business, there are various units involved in the soap making process, each with its own
specification. The Units are:

 Production Unit: This unit is responsible for producing the liquid soap products. The unit includes
several departments such as raw material handling, mixing and blending, filling, and packaging.
 Packaging Unit: This unit is responsible for packaging the liquid soap products. It includes
departments such as labeling, bottling, and cartooning.

THE ECONOMIC VALUE OF THE BUSINESS

The economic value of a business refers to its ability to generate wealth and provide a return on investment
for its owners or shareholders. It is determined by several factors such as revenue growth, profitability,
market share, brand reputation, and potential for future growth.

In the case of the soap making business, its economic value can be evaluated based on its financial
performance and its potential for future growth.

1. Financial performance: The soap making revenue and net income have increased, and its cost
management has been effective in achieving higher profitability. This indicates that the business is
generating value for its shareholders by earning a return on their investment.
2. Market share and brand reputation: The soap making business has established a reputation for
producing high-quality, natural and organic soap products. This has helped the business to capture a
significant market share in the local market, and there is potential for further growth as demand for
such products increases.
3. Potential for future growth: The Company’s expansion of its product line and effective cost
management demonstrate that it is well-positioned for future growth. As the market for natural and
organic soap products continues to grow, the business can expand further and capture a larger market
share.

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 FINANCIAL ANALYSIS
1. Revenue Growth: The business has shown consistent revenue growth over the past year, indicating
that it is expanding and increasing its market share.
2. Profit Margins: The business has maintained a high profit margin, indicating that it is generating a
strong return on investment.
3. Return on Investment (ROI): The ROI for the business is positive, indicating that the business is
profitable and generating a return on the investment made by the owners.
4. Cash Flow: The business has maintained positive cash flow, indicating that it has enough cash to
cover its expenses and invest in growth.
5. Debt-to-Equity Ratio: The business has a low debt-to-equity ratio, indicating that it is not relying
heavily on debt to finance its operations.

THE MARKET PLAN STRATEGY

Target market: Individuals, Market women, hotels, and gift stores are among the potential markets for the
soap-making business.

 Product Strategy: The soap manufacturing unit's product strategy focuses on providing high-
quality, handmade, natural, and organic soap products that can be tailored to a customer's individual
requirements.
 Pricing Strategy: The soap making unit's pricing strategy is to provide quality products at an
affordable price. The market unit keeps a close eye on its pricing policy to make sure it stays
competitive and satisfies the demands of its target market.

MAINTAINANCE OF THE BUSINESS

1. Equipment Maintenance: The production equipment, such as mixing tanks, filling machines, and
pumps, are maintained regularly to ensure optimal performance. This includes cleaning and
sanitizing the equipment after each use, replacing worn or damaged parts, and conducting regular
inspections to identify potential issues before they cause downtime.
2. Facility Maintenance: The facility, including the floors, walls, and ceilings, are regularly cleaned
and disinfected to prevent the buildup of bacteria and other contaminants. The ventilation system are
properly inspected and maintained to ensure proper airflow and prevent the accumulation of dust and
other particles.
3. Training and Education: Every employee receives training and education on proper equipment and
facility maintenance procedures to identify and address issues quickly. It includes training sessions,
safety protocols, and guidelines for handling and storing cleaning and sanitizing agents.

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 CHALLENGES
1. Competition: The local soap making industry is highly competitive, and we differentiated our
products from other by offering unique value proposition to stand out.
2. Cost and Profitability: Producing handmade soap can be labor-intensive, and it can be challenging
to achieve profitability while maintaining a high level of quality. The soap unit manages the costs
carefully, including the cost of raw materials, labor, packaging, and marketing.
3. Scaling Production: As the soap making business grew, they where challenges to scale production
while maintaining consistent quality. The company also managed production, inventory, and supply
chain effectively to meet the increasing demand for their products.
4. Customer Satisfaction: Customer satisfaction is key to building a loyal customer base and growing
a soap making business. As a soap making company we ensure that we are meeting the needs and are
responsive to customer feedback and concerns.

RECOMMENDATION
Based on the financial analysis and market research, as well as the maintenance practices outlined in this
report, we recommend that the local liquid soap making business continue to focus on expanding its product
line, maintaining high quality standards, and implementing effective maintenance practices to ensure the
longevity of its equipment and facilities. The business should also consider exploring new distribution
channels and marketing strategies to reach a wider audience and increase sales.

CONCLUSION
In conclusion, the local liquid soap making business has demonstrated strong financial performance, a
reputation for producing high-quality, natural and organic soap products, and a commitment to effective
maintenance practices. By continuing to focus on these areas and exploring new growth opportunities, the
business can build on its success and become even more profitable in the future.