Table of Contents

Seria Contents
l No.

1 Executive Summary

2 General Company Description

3 Products and Services

4 Marketing Plan

5 Management and Organization

6 Financials

1
 Executive Summary:

This report gives a brief information about the business and launching of a new product. The
company is named as “Hairstar Pvt. Ltd.”. It is a partnership business and is located at
Manglore. We offer powder shampoo which is nothing but the ayurvedic based shampoo. The
product is introduced in order to solve the hair related problems of the customers such as hair
fall, dandruff etc. As this is a new product given to the market, opportunities can be high or
low depending upon the buying habits of the consumer. Our product is affordable and easy to
use. Our product is introduced for both men and women. Our target market will be people of
all age groups as well as any income group people. For the purpose of our business
investment, the business partners have borrowed loan from Bank of Baroda.

General Company Description:

India has a variety of Shampoos. Each individual prefers different kinds of shampoos on a
daily basis. People are more concerned about their hair because of the increase in the
pollution. Shampoos which we use now a days contains a lot of chemicals which results in
hair fall and also causes cancer and several health-related problems. So, we have come up
with a product which will help the people get rid of these problems.
Hairstar Pvt. Ltd. Introduced the company in the year 2019, July 8. The company is located
at Hoigebail road, Urwa, Mangalore – 575006. It is a partnership business and was started by
Mr. Chirag Salian and Miss Harshitha Suvarna. It was started with a capital of Rs.10,00,000.
The company produces Powdered Shampoo named as “Hairstar”. People believe in
Ayurvedic products. So, this encouraged us to produce ayurvedic based shampoo. This
product is new to the market which is very challenging to the company.
 Objectives:

 Satisfying the consumer by providing qualitative product is our main goal.

 Expanding distribution as much as possible.

 To build strong relationship with the consumers.

Industrial Overview:

Indians have evolved from a time where “champi” was the sole mean of haircare. Today, a
plethora of options are available from shampoos and conditioners to hair dyes, serums and hair
colours. According to AC Nielson, the Indian shampoo industry is estimated at INR14 billion
and is growing at an average rate of 20% per annum.

The shampoo industry is divided on two basic platforms – cosmetic (shine, health and strength),
herbal and anti-dandruff. The anti-dandruff segment that grows at 10-20% annually is the
fastest growing segment.

By 2015, an estimated 55% of the shampoo consumers will be the under-20 years of age
segment, giving shampoo giants a huge opportunity to experiment in this sector. With
increasing awareness and growing advertising activates, shampoo penetration is likely to
multiply threefold in the coming years. There is a lot of opportunities for herbal shampoos in
market. The market value is the movement of thr production that motivated the colour the
canvas and the it might not be the right movement that

Product

To brief about the product, today people have become more beauty conscious and take
extreme care of their hair. Pollution and hard water have increased hair fall, reduced volume of
hair and increased dandruff issues. ‘Hairstar’ is not harmful to the hair. It can be used by both
men and women.
This product contains papaya seeds which are rich in vitamins, proteins and minerals.
 This helps in hair growth. It reduces dryness, split ends and removes oiliness. Along
with it, it has Almond, rich in vitamin E as well as omega 3 and fatty acids which is
some of the vital ingredients for hair health. Hibiscus is rich in vitamin C that helps to
increase collagen that ensures hair growth. The Phyto-nutrients, vitamins and minerals
present in amla help in scalp circulation and stimulate healthy hair growth. Sodium
Laureth Sulfate is used in this powder-based shampoo which helps the shampoo become
foamy and it doesn’t cause any side effects to the hair and skin.
Benefits of the product:
 Controls dryness
 Controls split ends
 Controls hair fall
 Anti-dandruff
 Removes oil and dirt

The mission that we have set for our company is to be the top brand for shampoo in India. Our
aim is also at gaining the faith of the customers and gain customer loyalty in long run of
business.
Our vision is to expand our product to overseas if incase it succeeds in India. Help much to the
society and environment is our vision on-course.
This is an introductory stage where the company launches its product to the market. This is
where we get to know about the customers demand for our product. The company is offering
powdered shampoo for the customers. As customers have been using liquid shampoo, we feel
that they want some change. So, we have come up with a different idea. We got to know that
the customers find it difficult to purchase different brands & preferences for different age
groups and gender. We offer the product in different quantity bottles such as

1 sachet = 10gm (sample)

1 bottle = 100gm

1 bottle = 250gm

Processing:

We are using 3 machineries for production. The first machinery is used for powdering process
of the raw materials i.e., papaya seeds, almond, amla and neem. Here all the ingredients are
mixed together to form a powder. The output from the first machine is sent for the second
process for refining. There is a doorway at the bottom of the machine which opens and powder
is filled in multiple bottles according to the orders received from the customers. The last
process is the packaging and labelling of the product.

Economic

The global organic personal care market size or market share was estimated at $13.33 billion in
2018 and is estimated to register a CAGR of 9.4% from 2019 to 2025. Increasing demand for
organic cosmetics and skin and hair care rising need for environment- and animal-friendly
products is expected to drive the growth. Growing awareness regarding various benefits of
organic products as has resulted in increase in their demand over the last few years. Organic
products are derived from natural resources and are free from harmful chemicals. As the current
trend we see people using organic products so that is why we have come up with organic
powder hair shampoo, which has natural ingredients which is good for the health.

Customer

our target customers are both Male and female who are at their age 20+ who live in urban or
semi urban area, who are extrovert and adapters who belong to upper and upper middle class
and having lifestyle of health conscious, and value oriented. We are targeting upper class as our
customer because the organic trend is more adapted by upper class compared with lower
income customers because organic products are usually expensive compared to regular products

MARKET SEGMENTATION
Under this, the company has categorized the customers into different segmentation. They are

Demographic segmentation
The product’s main goal is to know the customer’s needs and wants. Here market segmentation
on this factor can divided into age income and gender.
Age: the product can be used by age group from 19 n above
Income: the target income customers are upper class and upper middle class.

Geographic segmentation
As our unit is located at Mangalore we tend to attract and supply more in this region.

Price
Harshitha suvarna harshitha suvarna harshitha suvarnat

As our target customers belong to upper and upper middle class and having lifestyle of health
conscious, and value oriented. The price of the product will be little high than usual, that our
target customers can afford so the pricing would go like this-

1 sachet = 10gm (sample)

1 bottle,100gm = Rs.100

1 bottle,250gm = Rs. 200

Place

The place of manufacturing the product is located at Mangalore. It is very important to select a
right place for marketing the products. So, we are following Business to Business marketing
concept And as we are start-up we are planning to distribute our sample products to the
customers by tying up with local saloons and hair clinics along with setting up a stall in malls
and super markets to distribute the sample products. It is very important to have a online
presence, we are planning to have a website where customers can not only collect the info about
the product but also place the order for the product.

Promotion

Before launching the product or distributing the samples to the target customers, we are
planning to create buzz about the organic product around the target market, with active
Instagram page, Facebook and email. We are also planning to promote our product through the
influencers in Mangalore, because it is very effective in terms of creating buzz or awareness
about the product around the target market. Along with these tying up with beauty saloons and
hair clinics where customers will be given with the sample product to try

Competition –

as the concept of powder shampoo is not new, there are lot of competitors who are producing
and selling powder shampoo. While looking at the market coverage in Mangalore, it is
comparatively less. So the competition in Mangalore is less so it’s a suitable place to start the
 business and then if the sale increases and if the customers are happy with our product we will
be planning to spread our to distribution around the other markets

structure of the organisation

We are planning to have a management team that is comprised of people with years of
experience in the sales marketing and the manufacturing industries. Our philosophy is focussed
on the customer needs and satisfaction. We have around 5 departments reporting directly to the
company partners . under production department we are planning to recruit around 3 employees
under finance 1 and under marketing 1 employee and for sales and distribution we are planning
to have around 3 employees

ORGANIZATIONAL STRUCTURE

2 partners

PRODUCTION FINANCIAL MARKETING SALES

IT DEPARTMENT
DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

FINANCIALS:

We are going to start our business by investing Rs.35,85,000. In which Rs.10,85,000 is

contributed by both the partner’s equally. We borrowed Rs.25,00,000 from Bank of Baroda
at 12% rate of interest for 5 years.
We have estimated sales for 5 years.

Particulars 2019 2020 2021 2022 2023

(25% (30%
(20% (20%
increase) increase)
increase) increase)
Sales 30,75,000 36,90,000 46,12,500 57,65,625 74,95,312
Less: Variable 7,40,000 7,70,000 8,07,000 9,00,000 9,10,000
cost
Contribution 23,35,000 29,20,000 38,05,500 48,65,625 65,85,312
Less: Fixed cost 10,80,000 10,80,000 10,80,000 10,80,000 10,80,000
EBITDA 12,55,000 18,40,000 27,25,500 37,85,625 55,05,312
Less: 42,000 39,060 36,326 33,500 30,870
Depreciation
EBIT 12,13,000 18,00,940 26,89,174 37,52,125 54,74,442
Less: Interest 3,00,000 2,40,000 1,80,000 1,20,000 40,000
EBT 9,13,000 15,60,940 25,09,174 36,32,125 54,34,442
Less: Tax 1,64,340 2,80,969 4,51,651 6,42,000 8,25,000
EAT 7,48,660 12,79,971 20,57,523 29,90,125 46,09,442

Note:

Building:
Building required is 700 sq. ft
Per month rent is Rs.35,000.
For one year = 4,20,000 (35,000*12)

Employee Remuneration:
Accountant (1) = 15,000 p.m. *12 = 1,80,000
Marketing (1) = 10,000 p.m. *12 = 1,20,000
Production (3) = 10,000 p.m. *12 = 3,60,000
Sales (3) = 10000 pm *12 = 3,60,000

Transportation:
40,000 p.m. * 12 = 4,80,000

Electricity charges:
Rs.60,000 p. a

Advertisement:
 Rs.2,00,000 p. a

Depreciation:
6,00,000*7 / 12 = 42,000

Tax:
18% tax is charged

CONTROLS

We are selling the products to retailers from them the products are sold to the customers.
Here we are using indirect method of marketing the product. We are also using online
methods of marketing.

FEEDBACK

We are collecting customers review online through questionnaires. We also collect retailer’s
opinion where retailers understand the customers better. As they have face to face
conversation, they get to know the buying habits of the customers