PROJECT PROPOSAL

INTERACTIVE MULTIMEDIA (CSC253)

PROJECT’S TITLE

Perfumed Hand Cream

THEME:

Cosmetic Products

DERMAL LAB.CO

GROUP MEMBERS : Jamaliah Binti Nor Azam (2016123935)

Noor Hafiza Binti Ridhuan (2016723465)

LECTURER’S NAME : Nor Liza Bt Hj Saad

SUBMISSION DATE : 23 JULY 2020

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 TABLE OF CONTENT

NO. TITLE PAGE NO.

1.0 Introduction 3

2.0 Company Background 3

2.1 Director’s Name 4

2.2 Organizational Chart 4

3.0 Project Background 5

4.0 Objective of the Project 5

4.1 Business Address 6

4.2 Daily Operations 6

5.0 Navigational Chart 6

6.0 Scope of the Project 7

7.0 Target Audience 7

8.0 Costing 8

9.0 Gantt Chart 9

10.0 Conclusion 10

11.0 References 11

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1. INTRODUCTION

Dermal Lab.Co is a specialty perfumed hand cream formulator, wholesaler and distributor.
We sell products to companies ranging from drugstores to consumers. This business is
owned and operated by our investors Jamaliah binti Nor Azam and Noor Hafiza binti
Ridhuan. Both of them are a strong knowledge-based managers, with a combined 20 years
of experience in this industry. Dermal Lab.Co was created in 2020 and is currently located in
Portland Avenue, Greentown Business Centre, Ipoh, Perak.

Through Dermal Skincare Co., we manufacture and distribute an approved hand cream that
replenish lost moisture and also form a protective layer that prevents further damage.
Dermal Lab.Co hand creams contain natural ingredients such as herbs and essential oils
that heal and repair skin.

Dermal Lab.Co is a niche player in the specialty skincare business, focusing on value-added
products which are not widely or readily available in Malaysia. We have perfected unique
distribution processes resulting in lower distributing costs and high profitability. We have
established a network of strategic alliances with a manufacturer who has the capability to
ascend from laboratory to commercial scale and manufacture products in accordance with
quality specifications.

Our retailers and our customers have given us an opportunity to provide products beyond
our present capability. We need to increase our inventory, purchase advertising, and
establish marketing and support activities.

2. COMPANY BACKGROUND

Dermal Lab.Co., is a privately owned specialty formulator of perfumed hand creams. Our
end-users are in all levels of skincare needs ranging from woman perfumed hand cream to

men perfumed hand cream with varieties of fragrance.

Dermal Lab.Co is a corporation established in 6th March 2020.

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2.1 Director’s Name

i. Jamaliah Binti Nor Azam - General Manager

ii. Noor Hafiza Binti Ridhuan - Manager

2.2 Organizational Chart

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3. PROJECT BACKGROUND

Developing a strong base of retailers and distributors, paying close attention to customer
suggestions and requests, finding a small niche and sticking to what we know best, and coping with
a changing economy are all proven ways to keep a wholesale distribution business successful and
out of bankruptcy.

As in any business there are risks. Our goal is to recognize crucial warning signs and head off
disasters by continually asking ourselves these questions:

1. Are we carrying too many different kinds of products or stocking too much merchandise?

2. Have we carefully analyzed demand for our products, monitored the marketplace, and
adjusted quickly to changing conditions?

3. Are some employees making little or no contribution to our bottom line?

4. Are our profits declining despite increased sales, or is our inventory growing due to sliding
sales figures?

5. Have we prepared an accurate and realistic cash-flow projection?

6. Are we maintaining unneeded warehouse or office space?

7. Have we diversified away from our main strengths or over expanded during good times, only
to find our self less liquid than we would like to be?

4. OBJECTIVES OF THE PROJECT

 To convince customers that our company's products are the best available

 To offer beauty solutions

 To create awareness and encouraging everyone to love their skin and be aware of any

changes.

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 4.1 Business Address

No. 56, Portland Avenue

Greentown Business Centre

31650 Ipoh, Perak

Malaysia

4.2 Daily operations

The hours of business will be from 8:00 A.M. until 7:00 P.M.

Monday through Saturday, and closed on all major holidays. Any person-to-person contact

will be done at the customer's establishment.

5. NAVIGATIONAL CHART

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6. SCOPE OF THE PROJECT

Recognizing problems is a step in the right direction. The next step is to take action once we've
diagnosed the problem so we can get our wholesale distribution business back on track. When
deciding on our course of action, we will create and update an accurate and realistic cash-flow
projection that takes into account changing economic realities, look at our operations on an overall
basis instead of attacking cost-cutting piecemeal, and analyze both the short- and long-term effects
of each cost-cutting activity.

We can avoid or overcome bankruptcy and failure by maintaining assiduous financial and operation
control of our wholesale-distribution business, especially during the turbulent start up period, and
we'll set ourselves on a path toward greater productivity and profitability. As we gain experience in
the realms of wholesaling, merchandising, distributions and sales, and earn a reputation for
providing top-quality customer service, good prices, and good products, we will develop specialized
business skills which represent a comparative advantage over competitors in our area and beyond.
Diligence and perseverance are as essential for success for a wholesaler or distributor as they are
for any other line of work, and sound financial position is the necessary cornerstone for anyone
interested in building a winning venture. That doesn't mean we will need millions of ringgits; it
means we must effectively manage the money we have, whatever the amount.

7. TARGET AUDIENCE

On the basis of the end users/applications, we focuses on the status and outlook for major
applications/end users, consumption (sales), market share and growth rate for each application,
including

 Adult (Woman and Men)

 Children
 Baby

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8. COSTING

DERMAL LAB.CO
Income Statement
For the Year Ended 31 December, 2020

Sales Volume 1,100,000 units

Per Unit (RM) Totals (RM)

Sales Revenue 6.00 6,600,000

Cost of goods sold expense (1.50) 1,650,000

Gross Margin 4.50 4,950,000

Variable operating expenses (1.00) (1,110,000)

Margin 3.50 3,850,000

Fixed operating expenses (0.20) (220,000)

Earnings before interest and income tax 3.30 3,630,000

Interest Expense (1,200,000)

Earnings before income tax 2,430,000

Income tax expense (24%) (583,200)

Net income 1,846,800

Manufacturing Cost Per Year 2020

Production capacity 150,000 units

Actual output 120,000 units

Production Cost Components Per Unit Per Unit

Raw materials 0.70 770,000

Direct Labor 0.30 330,000.00

Variable manufacturing overhead costs 0.20

Total variable manufacturing costs 1.20

Fixed manufacturing overhead costs 0.30

Total variable manufacturing costs 1.50 1,650,000

To 100,000 units inventory increase (150,000)

To 110,000 units sold 1,500,000

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9. GANTT CHART

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10. CONCLUSION

Dermal Lab.Co competition in the hand cream industry is widely varied. Direct

competitors are other established brand manufacturers, such as Nivea, Dove, L ’ occitane,
Cetaphil and Vaseline. The closest competitor in terms of popularity, growth, and product
line is the Dermal Korea Yeppin Skin.

The company ’ s management is confident that the Dermal Lab.Co can achieve its sales

forecasts, generating total sales approximately RM1.5 million in year 2020. In addition,
Dermal Lab.Co’s management has carefully considered its market, potential customer base
and its ability to grow its sales average to capture 10% of the branded hand cream industry.

Dermal Lab.Co has the potential to become a highly regarded resource in local, regional,
national, and international markets. Due to the company's aggressive marketing strategy,

establishment of the company as a "unique" entity in its industry, careful development of its
products coupled with strategic partnerships with some of the industry's retail clothing outlets,
and the company's profitable revenue model, Dermal Lab.Co has the potential to provide
lucrative returns to potential investors.

For Dermal Lab.Co to achieve status as an industry leader, it must secure initial

capital. This capital will be used for start-up costs, to establish a reputable storefront, and to
further develop the business, business infrastructure, internal systems, product development,
and extensive marketing and geographic positioning. Providing that the company is able to

acquire its funding requirements, Dermal Lab.Co should be able to achieve operational
success for many years to come.

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11. REFERENCES

1. Retrieved from https://formulabotanica.com/beauty-products-business-plan/

2. Retrieved from

https://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/S

kin-Cream-Formulator.html

3. Retrieved from
https://www.rewardme.in/beauty/skin-and-body/5-reasons-to-keep-a-hand-cream-ha

ndy

4. Retrieved from

https://www.dummies.com/business/operations-management/how-to-calculate-produ
ct-costs-for-a-manufacturer/

5. Retrieved from
https://www.bplans.com/family_clothing_business_plan/conclusion_fc.php

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