Assignment :2

Business Plan for Bradford Soap Works, Inc.

Course Title: Entrepreneurship

Section: D

Submitted By:

Noman Shahid L1F22PAAF0001

Ayesha Saleem L1F22PAAF0002

M. Athar Khan L1F22PAAF0004

Abu Hurairah L1F20BSAF0021

Ammar Hassan L1F20BSAF0108

Amna L1F20BSAF0164

Submitted To:

Sir Ali Raza

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Contents
Mission Statement.......................................................................................................................................3
Vision Statement..........................................................................................................................................3
Executive Summary.....................................................................................................................................3
Industry Analysis.........................................................................................................................................3
Company Description..................................................................................................................................4
Economies of Business................................................................................................................................5
Marketing Plan............................................................................................................................................6
Design and Development Plan.....................................................................................................................7
Operations Plan...........................................................................................................................................8
Overall Schedule.......................................................................................................................................11
Financial Projections:................................................................................................................................13

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Mission Statement
"To innovate and manufacture high-quality, sustainable personal care products that enrich lives
and respect the planet, ensuring a healthier future for all."

Vision Statement
"To be the global leader in sustainable personal care, setting new standards for quality,
innovation, and environmental responsibility, and inspiring a movement towards a cleaner,
greener world."

Executive Summary
Bradford Soap Works, Inc., established over 145 years ago, has a rich history of innovation and
expertise in manufacturing solid personal care products. Our latest venture, the Eco-Friendly
Solid Shower Gel, aligns with our commitment to sustainability and innovation, offering
consumers an environmentally responsible alternative to traditional liquid shower gels.

The Eco-Friendly Solid Shower Gel leverages our proprietary manufacturing processes and
extensive industry knowledge to create a product that reduces water usage, minimizes packaging
waste, and delivers superior cleansing performance. As the global demand for sustainable
personal care products grows, Bradford Soap Works is well-positioned to capture market share
and drive industry change.

Our marketing strategy emphasizes the product's eco-friendly benefits and superior performance,
targeting environmentally conscious consumers and retailers. With a robust development plan,
strategic operations, and a commitment to quality, Bradford Soap Works is set to redefine the
personal care industry with our new eco-friendly product.

Industry Analysis
The personal care industry is undergoing a significant transformation driven by consumer
demand for sustainable and eco-friendly products. Key trends include:

Market Trends:
1. Rising Demand for Sustainable Products: Consumers are increasingly seeking out
sustainable and eco-friendly personal care products, driven by growing environmental
awareness and a desire to reduce their ecological footprint.

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2. Innovation in Solid Personal Care: The market is witnessing innovation in solid personal
care products, which offer benefits such as reduced water usage, lower transportation costs,
and decreased plastic waste.

3. Health and Wellness Focus: There is a strong consumer preference for natural and organic
ingredients in personal care products, reflecting a broader trend towards health and wellness.

4. Regulatory Support: Governments and regulatory bodies are promoting sustainability

through policies and incentives, creating a favorable environment for eco-friendly products.

Market Size and Growth: The global personal care market was valued at approximately $500
billion in 2020 and is expected to grow at a CAGR of 5.9% through 2028. The eco-friendly
personal care segment is experiencing even faster growth, driven by increasing environmental
consciousness.

Competitive Landscape: The personal care market is competitive, with both established brands
and new entrants. Companies that can innovate and offer sustainable solutions have a
competitive edge. Key competitors include LuX and Unilever’s Love Beauty and Planet line.

Consumer Behavior: Consumers are becoming more informed and are prioritizing products that
align with their values. There is a growing trend towards transparency, with consumers seeking
brands that provide clear information about their sourcing, production processes, and
environmental impact.

Company Description
Bradford Soap Works, Inc. has been a pioneer in the personal care industry for over a century.
Our commitment to innovation and sustainability has made us a trusted partner for leading
brands. Our new eco-friendly solid shower gel exemplifies our dedication to creating high-
quality, sustainable products that meet the evolving needs of consumers.

Values:

 Innovation: Continuously evolving to create cutting-edge personal care solutions.

 Sustainability: Prioritizing environmental responsibility in all aspects of our business.

 Quality: Ensuring the highest standards of product excellence.

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 Customer Focus: Understanding and exceeding the expectations of our customers.

Products and Services: Bradford Soap Works offers a wide range of personal care products,
including specialty bar soaps, haircare, skincare, and body care products. Our new product, the
eco-friendly solid shower gel, is designed to offer the benefits of liquid shower gel in a solid,
sustainable format.

Economies of Business
Profit Margins: Profit margins in the personal care industry can vary based on production costs,
pricing strategy, and market demand. Bradford Soap Works aims for a profit margin of 30-50%,
reflecting our commitment to quality and sustainability.

Fixed and Variable Costs:

 Fixed Costs: Manufacturing facility rent, salaries of administrative staff, equipment

depreciation, and marketing expenses.

 Variable Costs: Cost of materials, components, packaging, and shipping.

Operating Leverage and Implications: High fixed costs relative to variable costs imply a
higher degree of operating leverage, meaning small changes in sales volume can significantly
impact profits. This can amplify profits during high demand but also increase the risk of losses
during low demand.

Start-Up Costs:

 Research and development: PKR200,000

 Prototype development: PKR100,000

 Certifications and licenses: PKR50,000

 Marketing and branding: PKR150,000

 Initial inventory purchases: PKR100,000

 Total estimated start-up costs: PKR600,000

Break-Even Analysis: Assuming:

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 Selling price per unit: PKR200

 Variable cost per unit: PKR100

 Fixed costs: PKR500,000

Contribution Margin per Unit: PKR200 - PKR100 = PKR100

Break-Even Point (in units): PKR500,000 / PKR100 = 5000 units

Marketing Plan
Overall Marketing Strategy: Bradford Soap Works' marketing strategy will focus on
establishing the new solid shower gel as a leading eco-friendly personal care product. Key pillars
include:

 Brand Identity: Reinforce our reputation as a leader in sustainable personal care.

 Targeted Marketing: Focus on environmentally conscious consumers and those seeking

innovative personal care solutions.

 Education and Awareness: Highlight the benefits of solid personal care products through
content marketing and social media.

 Customer Engagement: Build strong relationships with customers through exceptional

service and community initiatives.

Product, Price, Promotions, and Distribution:

 Product: Eco-friendly solid shower gel with natural ingredients, minimal packaging, and
convenient design.

 Price: Competitive pricing reflecting the product's value and sustainability.

 Promotions: Discounts, special offers, and bundles to drive initial sales and customer
engagement.

 Distribution: Online store, e-commerce platforms, and partnerships with eco-friendly and
personal care retailers.

Sales Process (or Cycle):

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1. Awareness: Generate awareness through digital marketing, social media, and influencer
partnerships.

2. Interest: Engage customers with informative content and product reviews.

3. Evaluation: Offer samples and trial sizes to encourage product testing.

4. Purchase: Facilitate easy online and in-store purchasing.

5. Post-Purchase Support: Provide excellent customer service and encourage feedback.

Sales Tactics:

 Influencer Partnerships: Collaborate with influencers in the sustainability and personal care
niches.

 Retail Partnerships: Partner with eco-friendly and personal care retailers to expand
distribution.

 Trade Shows and Events: Showcase the product at industry events and expos.

 Referral Program: Implement a referral program to encourage word-of-mouth marketing.

Design and Development Plan

Development Status and Tasks: The development of the eco-friendly solid shower gel is in the
advanced stages, with key tasks including:

1. Conceptualization and Research: Conduct market research and develop design concepts.

2. Prototyping: Create and test prototypes for functionality and user experience.

3. Technology Integration: Integrate natural ingredients and sustainable packaging.

4. Product Testing: Ensure product safety, reliability, and performance.

5. Manufacturing Preparation: Finalize design specifications and establish manufacturing

processes.

Challenges and Risks:

1. Technical Complexity: Developing a solid format that meets performance expectations.

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2. Supply Chain Disruptions: Risks related to sourcing sustainable ingredients and packaging.

3. Regulatory Compliance: Ensuring compliance with safety and environmental regulations.

4. Competition: Differentiating the product in a competitive market.

Projected Development Costs:

 Design and Prototyping: PKR200,000

 Testing and Certification: PKR100,000

 Manufacturing Setup: PKR500,000

 Materials and Components: PKR300,000

 Regulatory Compliance: PKR50,000

 Total Projected Development Costs: PKR1,150,000

Proprietary Issues:

 Patents: File patents for unique formulation and packaging designs.

 Trademarks: Register trademarks for the product name and logo.

 Copyrights: Secure copyrights for marketing materials and product designs.

 Licenses: Obtain necessary licenses for product safety and environmental compliance.

Operations Plan
General Approach to Operations: Our operations focus on efficiency, quality, and
sustainability. Key elements include:

 Efficient Production: Implement lean manufacturing to streamline processes.

 Quality Control: Maintain high standards throughout production.

 Supply Chain Management: Partner with reliable suppliers for sustainable materials.

 Environmental Sustainability: Integrate eco-friendly practices in all operations.

Supply Chain of Bradford Soap Works, Inc.

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Overview

The supply chain for Bradford Soap Works, Inc. is designed to ensure the procurement of high-
quality raw materials and machinery necessary for the production of our Eco-Friendly Solid
Shower Gel. Our supply chain strategy emphasizes sustainability, reliability, and cost-efficiency.

Raw Materials

For the Eco-Friendly Solid Shower Gel, we prioritize sourcing natural and sustainable
ingredients. In Pakistan, we can leverage local resources known for their quality and
environmental benefits. Key raw materials include:

1. Plant-Based Oils and Butters: Essential for the soap base, such as coconut oil, palm oil
(sustainably sourced), and shea butter.

2. Natural Fragrances and Essential Oils: Derived from local botanical sources.

3. Natural Colorants and Additives: Such as clays, herbs, and plant extracts.

Potential Suppliers in Pakistan

 Coconut and Palm Oil Suppliers: Coastal regions such as Karachi and the Sindh province.

 Essential Oils: Local suppliers in regions known for agriculture, such as Punjab and Khyber
Pakhtunkhwa.

 Shea Butter and Natural Additives: Sourced from local cooperatives and organic farms.

Bradford Soap Works requires advanced machinery for efficient production, quality control, and
packaging. Key machinery includes soap-making machines, mixing tanks, molds, cutting
equipment, and packaging machines.

Potential Machinery Suppliers in Pakistan

1. Local Industrial Machinery Manufacturers: Based in major industrial hubs like Karachi,
Lahore, and Faisalabad.

2. Imported Machinery from Global Suppliers: Ensuring high quality and technological
advancement, coordinated through local distributors and agents.

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Logistics and Distribution

1. Local Transportation: Efficient logistics networks within Pakistan for transporting raw
materials to our manufacturing facility.

2. Warehousing: Secure and strategically located warehouses for raw materials and finished
products.

3. Distribution Channels: Partnerships with local and international distributors to ensure the
efficient delivery of our products to retailers and consumers.

Sustainability Practices

 Eco-Friendly Sourcing: Partnering with suppliers committed to sustainable and ethical

practices.

 Waste Management: Implementing recycling and waste reduction practices in our supply
chain.

 Local Sourcing: Reducing carbon footprint by sourcing raw materials and machinery locally
where possible.

By leveraging local resources and suppliers, Bradford Soap Works can maintain a robust and
sustainable supply chain, ensuring the efficient production and distribution of our Eco-Friendly
Solid Shower Gel while supporting the local economy in Pakistan.

Business Location: Headquarters and manufacturing facility will be located in a region with
access to skilled labor and transportation infrastructure, such as Quaid-e-Azam Industrial Estate
or Multan Road.

Facilities and Equipment:

 Manufacturing Facility: Modern facility with advanced machinery and quality control
stations.

 Sustainable Packaging: Specialized equipment for eco-friendly packaging solutions.

 Quality Assurance: Laboratories for product testing and quality assurance.

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Overall Schedule
Milestone Timeline (Months)

Incorporation of the Venture 1-3

Completion of Prototypes 4-9

Rental of Facilities 10-12

Obtaining Critical Financing 13-16

Starting Production 17-20

Obtaining the First Sale 21-24

Incorporating the Venture:

 Month 1: Research legal requirements, including business structure options, necessary

permits, and regulatory compliance specific to the personal care industry.

 Month 2: File incorporation documents, including Articles of Incorporation and application

for Employer Identification Number (EIN).

 Month 3: Obtain all necessary business licenses and permits, such as health and safety
certifications and environmental permits.

Completion of Prototypes:

 Months 4-6: Develop initial prototypes focusing on the formulation and solid format.
Conduct iterative testing and refinement.

 Months 7-9: Test prototypes for safety, efficacy, and user experience. Make necessary
adjustments based on feedback.

Rental of Facilities:

 Months 10-11: Identify and evaluate potential locations for manufacturing and headquarters.
Ensure the facility meets all operational and environmental requirements.

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 Month 12: Secure lease agreements for the chosen facility and begin necessary renovations
or customizations.

Obtaining Critical Financing:

 Month 13: Develop detailed financial projections, including startup costs, operational
expenses, and revenue forecasts. Prepare comprehensive business plan and pitch deck for
potential investors.

 Months 14-15: Engage with potential investors, including venture capital firms, angel
investors, and eco-friendly funding sources. Negotiate terms and secure commitments.

 Month 16: Finalize financing agreements and ensure all funds are available for operational
needs.

Starting Production:

 Month 17: Set up manufacturing lines, install necessary equipment, and train staff on
production processes and quality standards.

 Months 18-19: Conduct trial production runs to ensure all systems are functioning correctly
and products meet quality standards.

 Month 20: Begin full-scale manufacturing, producing initial batches for distribution and
sale.

Obtaining the First Sale:

 Months 21-22: Launch marketing campaigns, leveraging digital platforms, social media, and
influencer partnerships to create buzz and drive awareness.

 Month 23: Distribute initial product batches to retail partners and online channels. Monitor
sales and customer feedback closely.

 Month 24: Achieve initial sales targets, gather customer reviews, and make any necessary
adjustments to the marketing strategy or product offerings based on early feedback.

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Financial Projections:
Financial projections encompass revenue forecasts, cost analysis, and investment requirements
for the eco-friendly solid shower gel venture. Through prudent financial management, revenue
optimization, and strategic resource allocation, we anticipate sustainable growth and profitability
in alignment with our long-term objectives.

This comprehensive business plan outlines our vision, mission, and strategic approach to
introducing the eco-friendly solid shower gel, positioning Bradford Soap Works, Inc. as a leader
in sustainable personal care solutions.

Conclusion:

Bradford Soap Works, Inc. aspires to lead a sustainable revolution in personal care by offering
eco-friendly, luxurious solutions that harmonize efficacy and environmental stewardship.
Through innovation, integrity, and inclusivity, the company aims to redefine personal care
boundaries, inspiring conscious living and nurturing a brighter, cleaner future. The business plan
outlines a strategic approach to introduce an eco-friendly solid shower gel, leveraging expertise,
distribution networks, and a commitment to sustainability for sustainable growth and profitability
in the market.

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