Ellize’s Business Plan

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 Ellize’s Business Plan
Table of Contents
1.0 EXECUTIVE SUMMARY: ........................................................................................................... 4
1.1 PRODUCTS AND SERVICES: ................................................................................................... 6
1.2 OBJECTIVES AND GOALS: .................................................................................................... 10
1.3 MISSION AND VISION: .............................................................................................. 10
1.4 STRATEGY TO SUCCESS: ...................................................................................................... 11
1.5 COMPANY OWNERSHIP: ....................................................................................................... 12
1.6 INVESTORS CONSIDERATIONS: .......................................................................................... 12
1.7 ADVISORS: ............................................................................................................................... 13
1.8 ORGANIZATION STRUCTURE: ............................................................................................. 14
2.0 MANAGERIAL FEASIBILITY.................................................................................................. 14
2.1 MANAGEMENT TEAM: .......................................................................................................... 14
2.2 FIVE M‟S OF MANAGEMENT:............................................................................................... 15
2.3 MARKETING ANALYSIS (MARKETING MIX): .................................................................. 17
2.4 COMPETITIVE LANDSCAPE: ................................................................................................ 18
2.5 COMPETITIVE EDGE: ............................................................................................................. 19
2.6 MARKET SEGMENTATION: .................................................................................................. 20
2.7 TARGET MARKET SEGMENT STRATEGY: ........................................................................ 21
2.8 PERSONNEL PLAN: ................................................................................................................. 21
3.0 ECONOMIC FEASABILITY...................................................................................................... 21
3.1 RISK ANALYSIS:...................................................................................................................... 22
3.2 PESTEL ANALYSIS: ................................................................................................................ 23
3.3 ENTRY STRATEGY: ................................................................................................................ 24
3.4 COST AND BENEFIT ANALYSIS: ......................................................................................... 25
4.0 TECHNICAL FEASIBILITY...................................................................................................... 26
4.1 SWOT ANALYSIS: ................................................................................................................... 26
4.2 MARKETING STRATEGY: ...................................................................................................... 28
4.3 SALES STRATEGY: ................................................................................................................. 28
4.4 BLUE OCEAN STRATEGY: .................................................................................................... 29
4.5 PRICING STRATEGY: .............................................................................................................. 30
4.6 DISTRIBUTION CHANNELS: ................................................................................................. 31
4.7 SEGMENTATION AND TARGETING: ................................................................................... 31
4.8 ADVERTISING SERVICES: ..................................................................................................... 33
4.9 NEEDS AND WANTS: .............................................................................................................. 34
4.10 PERFORMANCE METRICS: .................................................................................................. 35
5.0 OPERATIONAL FEASIBILTY .................................................................................................. 36

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 Ellize’s Business Plan
5.1 BUSINESS MODEL: ................................................................................................................. 36
5.2 MANUFACTURING PLANS: ................................................................................................... 36
5.3 PRODUCTION TECHNIQUES: ................................................................................................ 39
5.4 COMPETITORS ANALYSIS: ................................................................................................... 39
5.5 LOCATION AND FACILITIES: ............................................................................................... 42
5.6 LEGAL CHARGES: ................................................................................................................... 44
6.0 FINANCIAL FEASIBILITY ....................................................................................................... 46
6.1 BUDGETING AND FORECASTING: ...................................................................................... 46
6.2 FINANCE: .................................................................................................................................. 46
6.3 BREAK EVEN ANALYSIS:...................................................................................................... 47
6.4 PROJECTED CASH FLOW STATEMENT:............................................................................. 48
6.5 STATEMENT OF PROJECTED PROFIT & LOSS: ................................................................. 49
6.6 PROJECTED BALANCE SHEET: ............................................................................................ 50

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 Ellize’s Business Plan

1.0 EXECUTIVE SUMMARY:

The business plan is to set up a cosmetic business, Ellize business is an E-commerce website
and a multi-brand retailer. Ellize is a private limited company with a total of 8 investors. We
offer beauty and wellness products for men and women. Ellize deals in high- end and low
budget products from brands like MAC, Lakme, Maybelline etc. Ellize ships in the entire
country to almost every zip code. We use the services of leading courier companies like E-
com Express, Delivery, Fedex, Bluedart, etc, Ellize sells more than 10,000 products from 400
brands. The products of Ellize include both international and Indian, luxury and mass.
Problem: The Indian makeup industry has a vast variety of brands and products with all price
ranges but lacks in supplying few international cosmetics and skincare products which is in
high demand by the consumers. The skincare products in India are not effective and efficient
compared to the other brands like the ordinary, kylie skin, sk II, Glossier, etc, In India we
face difficulties in ordering many cosmetic brands like kylie, fenty beauty, tarte cosmetics,
etc, in addition to the above, the customers also incur extra costs like heavy shipping charges,
import duties, taxes and/or charges which are not included in the cost price.

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 Ellize’s Business Plan
Concept: Ellize is a multi-channel concept, combining a wholesale distribution network with
a retail strategy, e-commerce, and a consumer catalogue. Ellize will be known for its wide
range of international brands. We essentially focus on to offer the best skincare and cosmetics
products in India. We purchase most Indian products directly from the brands. We usually do
not provide extra discounts on those. The brands give discounts which does not reduce our
commission. Ellize has its own beauty and skincare product line focusing on skin friendly
products, which essentially consists of Korean brand‟s ingredients.
The key objective of Ellize will be to provide fresh quality cosmetics to our clients, to enable
them to improve their general skin beauty, to obtain maximum consumer satisfaction through
continued quality production, to obtain continuous production and supply of our products to
the customers, to create customer loyalty to our Ellize products such that they become well
pronounced in the customer minds. To achieve our objective, Ellize will employ different
strategies such as; offering quality products, launching herbal cosmetics that help fight the
skin diseases, offering special incentives to our regular clients, creating a conducive
environment for our clients, employing people who understand the meaning of customer care
and meaning of quality by giving them samples. All this encompasses our strategies that
include, communication strategy, marketing strategy, competitive strategy and human
resource strategy.
The vision of Ellize will be „To be the leading suppliers of quality and healthy skin boosting
cosmetics & skincare and supply a wide range of international branded products which are
not available in India‟.
Ellize‟s mission will be, dedicated at improving the skin health and body look of our clients.
“We seek to become the recognised leader in our targeted local and international market for
carrying a diverse line of in demand cosmetics including perfumes, makeup, skincare and
other products that will have a competitive edge towards customer satisfaction and retention
at attractive prices‟‟.
Our major customers will be corporate employees, students, makeup artists, tourists, beauty
addicts/experts, etc, who will be consuming a wide range of products. Our Ellize products are
costed and priced after comparison with our major competitor‟s prices and based on costing
information acquired through market research. We have as well carried out cash flow
estimates to ensure that our business does not run out of cash. The start-up capital has been
allocated to what we intend to start our business, including renting, buying machines for
mixing the inputs, other machinery, leasing van, furniture and fittings, cloths and uniforms,
employee salaries and other necessary things to start with.

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 Ellize’s Business Plan
1.1 PRODUCTS AND SERVICES:

In ELLIZE, we want our customers to have the best products, so we provide them with a
wide range of products to choose from. We sell various type of face creams, hair oils, body
deodorants, body lotions, cosmetics, skin care serums, hair care and many more. We sell
products of various popular brands such as Lakme., Coloressence., Vlcc., Biotique, Revlon,
Maybelline, Himalaya, Colorbar, Elle18, MAC, Avon, The Body shop, Bobbi brown, Wet &
wild, NYX and etc. we also provide many international brands which are not easily available
such as The Ordinary, SK II, Etude House, Elf Cosmetics, Caudalie, Daiso, Fenty Beauty,
Morphe, Covergirl , etc.
OUR SERVICES:
FACE
 Face Clean Up
 Facial
 De-Tan
 Bleach
 Face Mask
NAILS
 Manicure
 Pedicure
 Cut, File, Polish
 Nail Extensions
 Gel Polish
 Nail Art
HAIR
 Hair Colour/ Hair Extensions
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 Hair Spa
 Damaged Hair Treatment
BODY
 Waxing
 De-Tan
SKIN
 Pigmentation
 Laser
 Skin Tightening
 PCOS Skincare
 Skin Polishing
 Skin Detox
 Pimple Relief
 Thyroid Skincare
 Skin Maintenance
 Age Defence Skincare

BEAUTY SERVICES:
Beauty Services is a way for you to discover, browse and book appointments at your city's
top salons, spas, dermatologists, nutritionists, diet consultants and many other service
providers. With ELLIZE beauty services, you can:
1. Browse, select and then purchase a service of your choice.
2. Choose to fully prepay by using online payment methods such as credit/ debit card, wallet or
net banking, or pay up partially online, and pay the balance directly to the service provider at
the time of availing the service.
3. Receive your Unique Appointment Code and the Phone Number of the service provider via a
confirmation SMS & Email. Call the service provider to fix your appointment at your
convenience within 30 days from the date of purchase.
Changed your mind? No worries! Receive a 100% refund, as long as the cancellation is
within the 30 days since your date of purchase AND the service has not been availed yet.

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VERIFIED, PREMIUM BEAUTY PARTNERS

100% MONEY BACK GUARANTEE

SCHEDULE APPOINTMENT AT YOUR CONVENINCE

PARTIAL CASH PAYMENT FACILITY AVAILABLE

Registration Process for becoming the elite member:

Step 1: Visit the Official Portal
Please visit the official website of our company “www.ellize.in” or visit our app “ELLIZE”
Step 2: Become an elite member
Click on „‟ Become an elite member” option which is appeared on the home screen of the
portal.
Step 3: Elite process
Select the option “elite process” from the list of menus.
Step 4: Join us
Then click on “Join us” then the application form for elite members opens up
Step 5: Complete the details
Fill up the application form with the appropriate details such as
 Applicant name
 Email id
 Preferred city
 Location of area
 Mobile number
Step 6: Submit the form
After filling the details, the applicant can submit the application form online.

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WHY elite member?
When you become an elite member, you will get the following benefits:
a) Unlimited free shipping
(Cart must be 999 and above with at least one product from elite brands)
b) Elite rewards
(Get milestone rewards with your beauty spreads)
c) Exclusive discounts
(Get additional discounts on new launches)
d) Priority support
(Get Hassie - free refunds and quicker query resolver)
e) New launches
First to get access to our new arrivals
(Additional discounts on all elite new launches)
f) Beauty spend meter
g) Birthday Gift
(Get a complimentary gift when you make a purchase in your birthday month)
H) special access:
Sometimes while doing online shopping it might be tiring for you to find your perfect shade,
so in order to help you with that we have created a new feature where you can directly
contact the store through our app special feature icon and get a full review on your favourite
product through a video call and we will connect you with our experts and personalized skin
care advisors for an easy selection process. This service is available only for ELITE
members.

How to find a Store Near You?

GO TO OUR COMPANY WEBSITE CLICK ON STORES NEAR YOU OR ELSE YOU
CAN REACH US THROUGH
Email: [email protected]
Email for international orders: [email protected]
GRIEVANCE OFFICER
Email: [email protected]
FOR ANY HELP YOU MAY CALL US AT
+91 9952483647

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COVID PRECAUTIONS
Your health and safety are our #1 commitment
 All our in-store artists will be wearing masks
 Each store will be sanitized everyday
 We‟ll be maintaining social distance
 Hand sanitizers will be available for all
 Makeup applications are currently suspended
 Self-sampling is currently suspended

1.2 OBJECTIVES AND GOALS:

The desire for beauty has existed since the beginning of humanity. It‟s a universal
aspiration which crosses time, countries, and cultures. Beauty is a powerful force that
moves us, as we all know that beauty is beyond than just looking good and beautiful.
Beauty gives us confidence in who we are, in who we want to be, and in our relationships
with others. We have been dedicated to one sole location: creating beauty. Our goal is to
offer each and every person around the world the best of Beauty in terms of quality,
efficacy, safety, sincerity and responsibility to satisfy all beauty needs and desires in their
infinite diversity. We also aims to offer high quality, innovative products to meet the needs
of all races, ages, and gender. Because Beauty is a permanent quest, we harness the power
of our innovation to continually enhance the performance of our products services.
Because we value diversity, we leverage each of our brand to celebrate all expressions of
Beauty. Because we strive to be exemplary with a long-term vision, we anchor our
actions in our strong values and demanding ethical principles.

1.3 MISSION AND VISION:

MISSION: All Races, All Sexes, All Ages” conceived to embrace all consumers. To be the
world‟s leading make-up authority among both professional make-up artists and consumers.
To meet customers, need for superior quality services and to provide secure & challenging
work environment for all employees. To meet every day needs for nutrition; hygiene and
personal care with brands that help people feel good, look good, and get more out of life. As

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an organization it commits itself to high standards and creative development with an
enterprise concept that all pains have gains.
We believe that every “men and woman” deserve nothing but the best, purest, most
trustworthy beauty and wellness products money can buy. From our inception, we have
strived to set the benchmark in product quality control so that our customers are assured of
receiving only 100% genuine and fresh products
Beauty is a language
The company has devoted energy and its capacity for an only purpose: beauty. It is a rich
business sense, as it allows all individuals to express their individuality, get confidence and
open up to others.
Beauty is universal
ELLIZE is committed to all the world's women and men to provide the best quality, efficacy
and safety of cosmetics innovation. By satisfying the infinite diversity of beauty needs and
desires around the world
Beauty is a science
Since its inception, the group has been pushing the frontiers of knowledge. Unique research
arm enables it to continuously explore new fields, invent future products, and inspire beauty
rituals from all over the world.
Beauty is a commitment
The company provides access to products that enhance well-being, mobilizing its innovative
strength to preserve the beauty of the planet and supporting local communities. These are
exacting challenges, which are a source of inspiration and creativity for ELLIZE.
Beauty is for all
By leveraging the diversity of its team, as well as the richness and complementarity of
its brand portfolio, ELLIZE has made cosmetic the universalization of its next few years of
projects.

VISION: To be a company which is recognized for the quality of our beauty products, to
deliver high-performance, long-lasting, ultra-glam makeup products that also care for the
skin. To be the ultimate supplier of all kind of beauty products available in the world.

1.4 STRATEGY TO SUCCESS:

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Our company's strategy is to promote its beauty and wellness products. Ellize advertises all
the products in online on various pages, websites, blogs etc. In the upcoming years, Ellize
plans to endorse celebrities to be our brand ambassadors for the brand and company, for
promotion purposes. We will be using banners and hire plasma city to advertise the company
all over the city.
Our keys to success are:
1. Quality products.
2. Skilled Manpower.
3. Product logistics and quality control.
4. Product placement in key retail accounts.
5. A vertical retail presence in brick and mortar, catalogue and e-commerce.
6. The creation of a "buzz" about this "hot…new" brand among opinion leaders through a
combination of PR and product placement.

1.5 COMPANY OWNERSHIP:

The initial management team is very compact. Our CEO and founders are the current (Full
time) employees. However, we have utilized significant external resources and have secured
a committed and talented team to join ELLIZE as our funding gets in place. Ms. Pranava will
be our creative director. Ms. Anushka will join us as the director of Marketing and product
development. Mr. Shiva will join us as the director of Logistics and Safety. Ms. Sowjanya
will join us as the director of the retail operation and Ms. Preethika will join us as the director
of Human resource.

1.6 INVESTORS CONSIDERATIONS:

The following is the spilt up of the amount of investors considerations.

Ms. Ashika - 22,40,000
Ms. Pranava harithra- 17,92,000
Ms. Druthi - 26,88,000
Mr. Shiva - 11,20,000
Mr. Diwakar - 11,20,000

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Ms. Anushka - 33,60,000
Ms. Sowjanya - 33,60,000
Ms. Preethika - 22,40,000
Mr. Karthik - 44,80,000

1.7 ADVISORS:

Our outside management advisors provide a significant asset to ELLIZE. We provide

management with a valuable sounding board for strategic and creative decisions. Ellize also
provide a deep experience base in all critical areas.
Aditya. H – marketing and graphic design: Mr. Aditya has been a senior marketing
executive with Adidas and Nike. He has extensive experience in both media and product
design.
Harsh Vardhan – real estate and strategic planning: Mr. Harsh was the co-founder of
Terranomics realty. He sold Terranomics to Federal Realty and started Vardhan Realty
Group. His clients include Life Style, H&M, Sparkx and Adidas.
Christopher. K – strategic planning and finance: Mr. Christopher began his career with
Citibank in India and Hong Kong in their Corporate Finance and Commercial Banking
Group. After nine years with Citibank, he joined Esprit Far East as president and chief
operating officer. Before retiring he had attained the position of president and CEO of Esprit
Europe and Esprit International.
Fahad Faizal – apparel design and manufacturing: Mr. Faizal is the president and founder
of AMG. AMG is a manufacturer of high-quality sports apparel. Their clients include Nike,
Adidas and Columbia sportswear.
Yarsh Bharghava – wholesale distribution: Mr. yarsh has over 12 years‟ experience in
wholesale sales management. Then he opened her own sales agency in Kolkata. His
showroom specializes in body care and accessories. He was instrumental in the successful
launch of Neal‟s Yard aromatherapy line in the Kolkata.
Jessica. V – fixture design and manufacture: MS. Jessica have created and managed the
growth of one of the most successful and highly respected fixture resources in India. They
have been instrumental in assisting with major rollouts for the GAP, Levis, and Wrangler.
Peter Glen – emerging trends and consumer marketing: Mr. Glen is a respected trend
guru. He has written several books on the subject and writes a regular column for Visual

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Merchandising and Store Design. He is a global trend consultant for many top retailers in the
U.S. and Europe.
David. B – strategic planning and catalogue retailing: Mr. David has over 30 years of
retail and catalogue experience with such highly respected firms as Williams Sonoma (where
he was President and CEO) and Eddie Bauer, where he held the position of president and
CEO Under Mr. David‟s guidance Bauer grew from $250 million to over $2 billion.

1.8 ORGANIZATION STRUCTURE:

2.0 MANAGERIAL FEASIBILITY

2.1 MANAGEMENT TEAM:

The initial management team is very compact. Our CEO and founders are the current (Full
time) employees. However, we have utilized significant external resources and have secured
a committed and talented team to join Ellize as our funding gets in place. Ms. Pranava will be
our creative director. Ms. Anushka will join us as the director of Marketing and product
development. Mr. Shiva will join us as the director of Logistics and Safety. Ms. Sowjanya

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will join us as the director of the retail operations and Ms. Preethika will join us as the
director of Human resource.
Ashika. k, President and Board member:
Ms. Ashika has over 10 years of retail experience. During her career she has successfully
held the senior management positions with several major retailers.
She joined the NYKAA as a regional manager. During Her 10-year career with Nykaa. She
managed every region in the India. Then the new president, Falguni Nayar, tapped her for the
position of vice president of visual merchandising. In this capacity, Ms. Ashika played a
significant role in the re-positioning of Nykaa.
Ms. Ashika was then assigned the responsibility of developing a Skincare Business for
Nykaa. Then Ms. Ashika left Nykaa to begin a very specialized consulting business. Her
clients have included Esprit Europe, Asia and America, Fruit of The Loom, The Luchesse
Boot Company, Adidas International, The Guggenheim Museum and Adidas America. The
nature of each of these consulting engagements has been to assist the client company in
developing a strategy for a retail rollout or expansion and to oversee the successful execution
of these strategies. Ms. Ashika attended Parsons School of Design and did her graduate work
at UCLA.
Druthi. S, Vice president and Board member:
Ms. Druthi has over 5 years of retail experience. Her career started with Nykaa as an assistant
store manager. She quickly became a store manager and then a senior store manager
responsible for overseeing the Mumbai branch. Then she was tapped to become one of the
first managers in the marketing division, where she opened and successfully managed another
branch in Bangalore. As a training manager she was instrumental in developing top store
talent for this prestigious retailer. The retail scene was beginning to change and Ms. Druthi
sensed an opportunity to develop a quality lifestyle business that focused on personal care.
Ellize would go beyond just cosmetics, body care creams, lotions and essential oils.

2.2 FIVE M’S OF MANAGEMENT:

1. Man Power: Changing the way India shops for beauty is no easy task, but our incredible
team is up to the challenge. Ellize look for candidates with three primary qualities.
i. Team Players (E-commerce is all about working as a team, one‟s work can directly impact
the fellow workers).

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ii. The desire to own and execute with passion.
iii. Big Dreamers.
Experience: 1 year of minimum experience would be needed.
Qualification: Candidate must possess at least a Professional Certificate, Advanced
Diploma, Higher Graduate, Bachelor‟s Degree, Post Graduate Diploma or Professional
Degree or equivalent.
Preferred Candidates: Preferred candidates from Digital Agencies, Media Agencies (social
media), Chemical Industry, Advertising Agency, Creative Agencies, Digital media, online
media, social networking Industry.
2. Materials Required:
i. Raw Materials:
The principal raw materials used for manufacturing cosmetics are oily materials such as oils,
fats, wax esters, and ester oils, and surface-active agents are used as emulsifiers, solubilizing
agents, etc. Humectant, thickening agents, film formers as well as polymers are used as
powders, ultraviolet absorbents, antioxidants, sequestering agents, colouring agents such as
dyes and pigments, along with vitamins, pharmaceutical agents such as plant extracts and
perfume. Addition to the above, the principal raw materials for Packaging like Labels, Boxes
and Plastic wraps would be procured.
ii. Pharmaceutical Agents:
Various pharmaceutical agents like whitening agents, hair growth promoters, skin care
agents, anti-acne agents, anti-dandruff and anti-itching agents, antiperspirants and deodorant.
Pharmaceutical agents that control melanin production or melanin metabolism are used as
whitening agents. Hair growth promoters include various compounds to alleviate the causes
of hair loss. Most products focus on components that stimulate the activity of the hair matrix
and blood capillaries.
3. Machinery: The metal contraptions called machines have made man fulfil, almost
effortlessly various dreams of creating things that make our existence more worthwhile.
Ellize uses machinery such as Disposable Glass making machine, Sortex Machine, Tipping
Machine, Stuffing Machine, Shrinking Machine, Starch Machinery, Boilers and
Homogenizing Blending Tanks.
4. Method: Helping process operators develop standard methods is the foundation upon which
Ellize happens. In the words, “Without standards, there can be no improvement.” Once the
best practice for a process is developed and implemented, our managers will coach the

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employees on doing their work correctly. Standard work documentation will be made
available in the place where work is done and must include useful charts, images, or other
assets. Our managers lead employees through an improvement cycle whenever an
opportunity for improvement is uncovered. A new standard is developed and maintained until
the next best opportunity comes along. The visible methods of our company include plans,
policies, procedures and data. Although the company‟s norms and its culture aren‟t
mentioned in the above, we strictly follow them and the method of its consumers, suppliers,
competitors and associates. Our work and our priorities are determined by the method
adopted. Generally, employees and materials are interlinked due to method.

5. Money: Money is an important aspect in the 5m‟s of management as it helps to motivate our
workers, get quality and sufficient materials, buy right machines and maintain them. Money
management, when not properly organized will lead in collapsing the enterprise. In order to
avoid such consequences, we have our accounting and legal team to take care of the smooth
running of our business and cash flow.
6. Minutes (Extended M): Time management is one contemporary aspect of business that has
been employed in use by effective and successful business ventures to optimize delivery.
Lateness and absenteeism of man at work is a large chunk of time-off production. Poor time
management is as ineffectual as a broken-down machine. Therefore, Ellize had made sure
that every single employee in the firm has a work Time of 7 hours with a total of 1-hour
interval on shift basis (Morning and Evening).

2.3 MARKETING ANALYSIS (MARKETING MIX):

Positioning: (point of parity): ELLIZE‟s competitors such as amazon, health and glow,
nykaa, purple etc. sell beauty and personal care products. Consumers can get several options

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of purchasing from different websites and also compare price of the products. So, there is a
similarity between its competitor which would affect the mindset of the targeted consumer
while positioning brand, but we also have all kind of International brand‟s products which
other apps/company does not deal.
Product: We offer all seasonal offers and coupons with existing benefits to our customers, so
that they keep on purchasing items from the portal. Ellize has its own blog where it provides
free beauty tips and beauty channel on YouTube that showcases free makeup tutorials to its
viewers. During festive time, our brand promotes themselves on various platforms and using
various tools. We make use of coupons and discount deals to attract more and more customer.
Also, Premium strategies such as membership plan where customers can register or
subscribe. Additional Benefits like members paying a minimum amount on monthly or yearly
basis so that they get additional benefit such as extra offers, gifts, or get an opportunity of
sharing ideas with beauty experts, make-up artists, hair stylists and celebrity fashion
designers.
Promotion: Social websites like Facebook, Instagram and YouTube will be used for
promoting our brand. Other ways such as creating network through LinkedIn, creating blog
post and website to generate awareness will be done. Ellize has 25 experts who give
solutions for all types of fashion queries online.
Place: It will definitely create its website through which customer can access easily. For
android users Play store and for apple users Appstore. In India, on a total there will be 35
stores.
Price: Focus would be on the purchasing behaviour of consumer. We will opt for cost plus
and value-added pricing methods.

2.4 COMPETITIVE LANDSCAPE:

Factors Ellize Nykaa Purple Health and

Glow

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High-end Yes Yes No No
international
brands

Korean skincare Yes No No No

Shade finder Yes No No No

Skin type Yes No No No

cosmetics

Discounts/ offers Yes Yes Yes Yes

2.5 COMPETITIVE EDGE:

Ellize will be sustainable in this competitive market because it has an edge with other
competitors like Nykaa, Purple, Health and Glow. Therefore, the below points are our
different ways of being unique in the market place:
i. Korean cosmetics products and skincare is known for its quality. Therefore, Ellize has its
own skincare and cosmetics line which uses ingredients and compositions from other Korean
skincare and products.
ii. Many unique features are there in our website which is not available in other competitor‟s
websites like Nykaa, Purple, Health and Glow.

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iii. Elite provides consumers with Festive Offers, Coupons and Complimentary Samples of
various brand and a birthday gift on the customer‟s birthday month.
iv. Ellize has a special Elite subscription for the customers in which they receive various benefits
like Extra Discount, Special Coupon Code, Voucher and Ellize offers free delivery to all
customers whose cart value is above 1000 INR.
v. Ellize manufactures products for different skin type, for example we have different
foundations for Dry skin, Oily skin and Combination skin.

2.6 MARKET SEGMENTATION:

For the purpose of this analysis, we are focusing solely on the female customers, therefore
our potential customers base (for the purpose of developing projections) does not include that
much provisions for male customers. The customer segmentation of our market would be :
I. Traditional consumer: Our consumers who normally go to a perfumery, reads magazines
and buys foundation, eye and lipstick products. The traditional consumer is an individual who
is influenced by media in his\her purchase decision process but does not invest his\her own
time in the pursuit of the latest trend.
II. New entrant: These consumers are those who begins to put on makeup when becoming an
adult, starting from word of mouth, showing increasing curiosity towards these products and
finally experimenting with them. This is a new entrant to the market, and as such will be
more influenced by the communication efforts put forward by cosmetics companies, but
he\she is unlikely to have a strong, personal passion for the industry.
III. Beauty addicted: These consumers spends much of his\her time consulting blogs and
tutorials, almost in a state of competition with other addicted customers in learning the latest
news and rushes to buy the latest products regardless of actual needs. This is the “fashion
victim” of cosmetic products and could be considered as a lead user, in terms of
understanding the use, positioning, and appeal of a new product.
IV. Beauty expert: These consumers are basically professional makeup artists either because of
his/her career or because of a strong passion in the industry. This customer may have access
to a variety of information channels, but without being influenced by opinions, and being
independent in purchase choices. As a professional, he\she is likely to be especially loyal to a
particular set of high-end brands to access a degree of reliability and consistency in his\her
work.

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2.7 TARGET MARKET SEGMENT STRATEGY:

Ellize will reach the consumer through four distinct reseller channels. We have used the term
resellers because they will not be limited to retailers.
1. Spas and health clubs: Most high-quality day spas and health clubs (and many upscale spas
at resort properties) use generic products. Our goal will be to develop affiliations with
selected spas in urban areas and vacation destinations. Our manufacturing partnerships will
allow us to offer these customers bulk product at favourable prices to them while allowing us
excellent margins.
2. Lifestyle retailers: Our target retailer will be lifestyle-based rather than the typical soaps and
potions or natural product retailers. These retailers have developed a loyal and sophisticated
customer base, they understand the concept of lifestyle.
3. Cosmetic speciality retailers: Sephora is our major force in this category.
4. Boutique department stores: This category is composed of what was once called "Carriage
Trade" retailers. We will limit our distribution within this segment to Sephora and lifestyle.

2.8 PERSONNEL PLAN:

Ellize totally consist of 500 employees approximately, in which 80 of them are professionals,
140 of them are skilled and 280 of them are unskilled. These employees were hired through
online platforms like LinkedIn, Naukri, AngelList etc. and through advertisements. Training
programs will be conducted for the employees and they will also be provided with Brush kit
and Skincare Kit. Our manufacturing process is handled by Mr. Diwakar. Our marketing and
product development is handled by Ms. Anushka. Our retail operation is handled by Ms.
Sowjanya. Our logistics department is handled by Mr. Shiva.

3.0 ECONOMIC FEASABILITY

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3.1 RISK ANALYSIS:

Team experience and depth risk: Ellize might face lack of both, experience and track
records of the founders while starting up, as well as their experience and knowledge of the
business domain. We would overcome this risk by providing Well knowledgeable
professionals, Well trained employees, and best consultants for the particular category.
Market and opportunity risk: There is always less risk with a well-defined problem in a
large and growing market. It‟s hard to make money in a shrinking market, or with a solution
that is “nice to have” versus painfully needed. We would like to produce the best products
with a best quality which is needed by the market and consumers at the demanded period.
Competitive risk: Ellize has a large number competitors in the market place, having none is
a red flag (may mean no market), but having more than a couple of large ones may mean this
is a crowded space. We would overcome this risk by adapting patents, offers, discounts, and
by introducing unique products etc.
Financial risk: Indeed, quite a few businesses can be started without money. We as the
founders will be expected to put our own “skin in the game.” Our business plan should be
realistic and transparent about how much cash will be required to break-even, and how big
the return will be the investors in the first five-year timeframe.
Market entry strategy risk: The selection of an inappropriate pricing, marketing, or
distribution strategy is a large potential risk. For example, many new social websites
proclaim that they will offer a free service, and live on ad revenues (not likely in the first year
without a huge marketing investment).
Talent risk: Generally, there are two major risk that every start up confronts regarding it
team: The risk of hiring wrong team members and the risk of losing good team members. The
impact of these risks to the business are the highest during the early stages of the company
when it is dependent on a small core team, eventually as the firm grows and is able to hire
more staff, these risks get diversified and are reduced.

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3.2 PESTEL ANALYSIS:

Political factors: In ELLIZE we made sure to analyze the political conditions and the ruling
party‟s regulations in India. political environment is greatly influenced by factors such as
government‟s policies, politician‟s interests, taxation system and the ideologies of several
political parties. Since we are also dealing with various international products, our company
made a detailed research and analysis of the political conditions in the related collaborators
countries.

Economic factors: The economy of India has been significantly stable, since the introduction
of the industrial reform policies in 1991. As per the policy, reductions in industrial licensing,
liberalization of foreign capital, formation of FIBP and so on, has resulted in a constant
improvement of India‟s economic environment. We made sure to analyse what might our
company contribution be towards the future GDPA.

Social factors: The social factors refer to any changes in trends which would impact a
business environment. The key principle we follow in ELLIZE is to satisfy our consumers by
providing them with a wide range of products that are in trend. we made sure to keep up with

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the leading trends in the cosmetic industry, since our main targeted consumers are the young
adults of the society.

Technological factors: ELLIZE is a retail selling company so we analysed all the

technological aspect involved in retail trading. we also produce our own product which is
specialised in Korean skin care so we also did a detailed research on what new technology to
use in order to produce our product both effectively and efficiently.

Legal and environmental: In the recent past, a number of legal changes have been
implemented in India, such as recycling, minimum wage increase and disability
discrimination, which has directly affected businesses there. However, when it comes to
environment, the quality of air in India has been adversely affected by industrialization and
urbanization, also resulting in health problems. As a result, there have been establishments of
environmental pressure groups, noise controls, and regulations on waste control and disposal.
Ellize made sure to follow all legal regulation needed both in Indian and international market.
Be it licensing regulation or importing regulation, all legalities are strictly observed and taken
care of.

3.3 ENTRY STRATEGY:

 Having a unique logo and name

 Selecting Organized Branded Retailers
 Operate stores in Prime Locations
 Operate in shopping malls
 Serves High-End and Upper middle-class customers
 Basic cosmetics
 Serves Middle-class customers also
 Serves all kinds of customers
 Contact of independent sales representatives
 Time consuming will be less
 Quick cosmetics for any special occasion, One-stop shop for cosmetics.
 Shop online from your door step itself
 Helps the consumer to find out the selected products in which store it is available
 Giving best offers and best promoting activities for the stores
 Explore on social networking such as Facebook, Instagram, twitter, YouTube, etc…

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Traditional and non-traditional marketing strategies in India:

• Magazines
• Billboards
• Increasing brand Marketing
• TV Ads
• Product placement in Tv
• Communicate the value proposition
• Educate in the DIY concept
• Digital Marketing
• Social Media and special campaigning.

3.4 COST AND BENEFIT ANALYSIS:

A cost-benefit analysis is a process where our business uses to analyse decisions. The analyst
will sum up the benefits of a situation or action and then subtract the costs associated with
taking that action. The cost-benefit Analysis evaluation method is used by us to identify the
effective options available to our company and make the best choices out of them, which
should prove both advantageous and costs saver to our business. So, our managers of the
company, before selecting an alternative for the new plant or project, will conduct a cost-
benefit analysis so that they can judge the financial feasibility of our project in a proper
manner.
The Cost-Benefit Analysis Process
Our cost-benefit analysis (CBA) will begin with compiling a comprehensive list of all the
costs and benefits associated with our business or decisions.
The costs involved in a CBA will include the following:
i. Tangible costs: Labour and material costs, overhead, and decreased quality and production

ii. Intangible costs: Customer, employee, or vendor dissatisfaction and loss of potential
customers

iii. Tangible benefits: Increased revenue or income, increased production or quality, and
reduced cost

iv. Intangible benefits: Goodwill and customer, employee, or vendor satisfaction.

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v. Opportunity costs: Opportunity costs such as alternative investments, or buying a plant
versus building one.
vi. Cost of risks: Cost of potential risks such as regulatory risks, competition, and
environmental impacts.
CASH FLOW: Analysis on the availability of assets at any given time in our organization
will be done. The cost of developing our business and the resulting ongoing or operating cost
will be offset by the positive revenue or cost savings over time. The cash flow analysis shows
the initial cash required to develop and implement and the expected returns over time.

PAYBACK PERIOD: The length of time required to recover the cost of making the change
or developing our product might take few years.

RETURN ON INVESTMENT (ROI): This is a financial performance measure used to

evaluate the efficiency of our different investments. ROI is calculated by dividing our profits
or savings of our investment by the cost of the investments over time.

4.0 TECHNICAL FEASIBILITY

4.1 SWOT ANALYSIS:

Strengths
 Ellize keeps on adding innovations to its product range and offerings to build the customer's
attention and fight the dynamic business environment.

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 Showcasing a wide product range on both its online and offline stores to avoid customers
shift from their brand due to lack of stock.
 Working on an inventory model, where leaders will be maintaining an adequate inventory for
order fulfilment. Also, buying stock/products at bulk avails them a big profit margin.
 Able to shift many social media users as their potential customers with regular online
campaigns.
 Ellize constantly will be increasing its offering from beauty items to hair, makeup, skin care
and nails.
 Wide collection of international brands and products which cannot be seen on other apps.
Weakness
 It offers free delivery for the order above Rs. 999 which eliminates some of the aspiring
buyers.
 Ellize might not have a strong services base at an early stage to handle well the customer
complaints which can eventually affect the growth of their business.
charging a flat rate of Rs. 100(delivery charges) for all its orders below Rs. 1000 which is
quite high and prevents online buyers to buy a low-cost product.
 We are spending low on our research and development which can weaken our ability to
perform well.
Opportunities
 With the rise in e-commerce opportunities, people are attracted to buy the best in quality
beauty products from the online providers and it also has a scope for building more loyal
customers as offline buyers.
 Business model is climbing a new ladder of elevation, such as our international reach, which
results in increasing its profits.
 With the advancement of new technology, our company is constantly adding innovations to
its business operations.
 With the upgraded lifestyles, people are moving more towards e-commerce services for
fulfilment of their needs that brings in an opportunity for us.
Threats
 With the rise in a large number of competitors both online and offline, it reduces long-term
customer relationships and loyalty.

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 The government imposes various restrictions for promoting a greener environment that leads
to heavy logistics costs, paying environment taxes, and usage of eco-friendly packaging
material.
 Due to the reduction in the expenditure level of the customers, Ellize is affected in terms of
profitability level.

4.2 MARKETING STRATEGY:

Ellize will utilize a brand building (pull) strategy as the basis for our marketing plan. We will
position our print media spend in magazines that influence our target consumer and validate
the brand. The publications we will utilize are Allure, New beauty magazine, Be beautiful
magazine, Beauty launchpad magazine, and professional beauty magazine. These are the
same publications retail buyers and trend analysts scour to find emerging brands or trends. In
addition to paid ads in regional issues of the publications mentioned, we will retain a PR firm
to develop a grass roots program for obtaining product placement and celebrity/trainer
endorsements. Our media and PR strategy will bring the brand to the forefront for the
consumer and set the stage for our image development. We will have a separate plan to
market to spas and retailers at trade shows. In addition, we will develop a unique in-store
graphic and communication package that explains our products benefits and advantages at
point of sale.

4.3 SALES STRATEGY:

Our retail sales strategy consists of just two parts. First, we will hire and train people who fit
the Ellize image and lifestyle. Our training programs will ensure that they have the product
knowledge, necessary to serve the customer‟s needs and close the sale. Second, our
commission and retention programs will insure we recognize and reward performance. Our
sales people will be on a commission program that compensates for follow up sales at
progressively higher rates. This will provide an incentive for consumer follow up and the
creation of repeat business. Our commission program will also ensure that individual
performance is monitored and recognized. Top performers will be singled out for recognition
and poor performers will be given additional training or encouraged to seek a profession
more suitable to their skills.

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Our wholesale sales program will evolve through two phases as we grow. In the first phase
leading showrooms will represent us. Sales manager and team will be appointed. They will be
paid a 5% commission on all sales and will manage the contracts with other showrooms.
These higher rates will motivate the representatives to promote Ellize products and
aggressively pursue reorders. They will also handle order follow up and customer service.
Their commission will be paid 50% at time of shipment and 50% at time of payment. We will
also begin to develop an internal sales force and customer satisfaction team. Our internal
sales team will be paid 6% of sales. The customer satisfaction team will handle all post sale
activities. Ensuring delivery, claim processing and collection. (This team will cost
approximately 8% of sales in salary and support costs.)

4.4 BLUE OCEAN STRATEGY:

Blue Ocean Strategy is referred to a market for a product where there is no competition or
very less competition. This strategy revolves around searching for a business in which very
few firms operate and where there is no pricing pressure. Our company has adapted the blue
ocean strategy by not only selling the Indian products but also by selling various international
cosmetic products in the market, in addition to that we are also manufacturing our own
cosmetics which are specialized in Korean skin care. In today‟s market there is an already
existing demand for many Indian cosmetic brands but comparatively less demand for
international brands and many cosmetic companies are only focused on fulfilling the
consumers need for Indian cosmetic products, therefore our company has decided to take this
as an advantage and use it for creating a new demand and market for our product. Since there
is no other company which offers its consumers both international and Korean cosmetic
products, we have decided to take this as our blue ocean strategy of ELLIZE.

FOUR ACTION FRAME WORK:

In blue ocean strategy, the four-action frame work is nothing but the actions taken by the
company in order to create a new value curve for the product in the market. The four-action
frame work of our company is as bellow.

1. REDUCE: We have decided to reduce our focus on only Indian cosmetic brands and
increasing the focus and work on selling and distributing various international brand.
2. CREATE: Ellize creates a new market where both international and Korean cosmetics are
sold.

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3. RAISE: We have decided to raise the availability of international products by continuous
importing and promoting of international cosmetic brands.
4. ELIMINATE: We have decided to eliminate the unnecessary excessive import charges on
international products to a certain limit.

4.5 PRICING STRATEGY:

Our products will always reflect good value for money. It is neither too cheap or overprice. It
has been found that people are generally willing to pay extra if they find little extra benefit.
Ellize will also adopt a premium pricing strategy for few of its products.

PRICING APPROACHES

Penetration Pricing:

-Prices set to „penetrate the market‟

-„Low‟ price to secure high volumes

-Suitable for our brand products with long anticipated life cycles

-Useful when launching into a new market

Value Pricing:

-Price set in accordance with customer perceptions about the value of the product/service

-Examples include status products/exclusive products.

Psychological Pricing:

-Used to play on consumer perceptions. Classic example - 999 instead of 1000.

-Links with value pricing – high value goods priced according to what consumers think
should be the price.

Absorption/Full Cost Pricing:

-Full Cost Pricing – attempting to set price to cover both fixed and variable costs

-Absorption Cost Pricing – Price set to „absorb‟ some of the fixed costs of production.

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4.6 DISTRIBUTION CHANNELS:

INDIAN BRANDS DISTRIBUTION CHANNEL

BRAND END
WAREHOUSE ELLIZE STORES
COLLABORATORS CONSUMERS

INTERNATIONAL BRANDS DISTRIBUTION CHANNEL

BRAND
IMPORT WAREHOUSE ELLIZE STORES END CONSUMERS
COLLABORATORS

ELLIZE PRODUCTS DISTRIBUTION CHANNEL

MANUFACTURING
WAREHOUSE ELLIZE STORES END CONSUMERS
UNITS

4.7 SEGMENTATION AND TARGETING:

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ELLIZE targets its customers through our marketing strategies. We specially focus on the
upper middle-class society, consisting more of women and partly men with an age range of
18-50 years. Ellize has segmented its customers based on demographic and psychographic
surveys.
Target audience:
1) Advice seekers:
-It is for 19-25-year-old.
-All they need is advice.
-They read blogs, comfortable with technology and shop online.
-Most mainly they value social community and advice
2) Multi tasker:
- It is for 27-45 years old.
- They might be confident working women, know what they want.
- Essentially values for easy shopping
3) Beauty aficionados:
-It is for 25-45-year-old.
-They are strong with their decisions.
-They value for premium brand and product offers.
4) Brand seekers:
-It is for 25 – 45 old.
-They are incredibly stylish and brand conscious.
-They travel frequently and are exposed to international brand
-They value for wide range of premium and prestige brand
Channel footprint:
1) Website and app: Combining the latest trends from the beauty world with new business ideas.
2) Social: Using signature content and branding to deliver real time content for the beauty
customers.
3) Video: Inspiring original visual narratives, best suited for strong telling.
4) On-ground: In store activations with Ellize luxe properties and other engagement event.
Social media:
 Facebook
 Instagram
 Twitter

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 YouTube
 LinkedIn
Influencer: Think, learn, collaborate.
-network of makeup artist
-fashion and beauty blogger
-mini celebrities
On ground: 2 store formats
Luxe: Best of luxury & prestige brands and large stores in affluent neighbourhoods.
On trend: Deliver 1000 on trend products across 100 brands, curated brand on online seller.
-Smaller store in metro cities
-Try and buy format
Buying assistance tool:
1)Try on it: Beauty tool which lets customer try on different shades in our makeup range.
Option for different skin type is also available in this tool.
2)Personalized widget: For every shopper to save recently viewed product.
3)Video on product page: Informative video on product page to help the customer
understand the product better.
4)Get the look widget: Tool which lets the customer buy products based on a look they like.
5)Routine finder: which recommends personalised products as per their daily routine.
6)Shade finder: A unique feature available online, to find the shade number of other brands
using your existing shade number for all makeup products.

4.8 ADVERTISING SERVICES:

1) Website placement: The largest beauty platform to run targeted ads to increase online sales.
2) Data package: Measures the right metrics.
3) Social marketing: Build your brand presence and our influencer network by targeting the
relevant audience and reaching potential new customer.
4) Email marketing: Fully integrated email strategies to attract more customers.
5) Customer survey: Brand equity study, concept our sampling packages.
6) Sampling: Reach new integrated audience with our sampling packages.

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4.9 NEEDS AND WANTS:

Due to the emerging changes in lifestyle and increase in the effect of pollution, stress, UV
damage, allergies and ageing skin there is scope for growth in consumer demand towards
skincare and cosmetics products.
According to the survey in India there is a huge gap in the beauty product market. Therefore,
the demand is at the top as there are very few platforms to get genuine beauty products. With
the emergence of ELLIZE app, customer could easily get their desired cosmetic products by
online ordering process.
Beauty bar:
-collaborative every quarter.
-Organise events in different cities hosted at a top notch venue.
-Hair, skin, nails, makeup.
-Live makeup and consultation.

We reward loyalty:

Multi perform strength:

Android - 46%
iOS - 20%
Desktop - 17%
ELLIZE dashboard:
We regularly follow the customer data base:
o Monthly visitors

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o Average time spent
o App download
o Customer data base
o Monthly repeat
o Monthly new consumer
o Monthly social reach
o Brand
o Strong team
o Order status
o Order per month
o Order premium
o Product per basket
o Product premium
o Average order value
o Repeat customer- 8 order a year repeat the order

4.10 PERFORMANCE METRICS:

Revenue per employee: It is based on the position of the employee, to see if the employees
are over or under staffed as compared to other brands in the same industry like health and
glow, nykaa etc.
Cost- effectiveness: The cost per outcome achieved by an organization.
Productivity: The amount of output per hour of work. It helps in measuring the employee
performance.
Efficiency: The number of products sold in a particular brand and the amount of output per
unit of input.
Quality: Quality metric such as customer perception of ELLIZE brand
Budget variance: The price ranges that various customer are over or under budget.
Customer satisfaction: Measuring our performance from the customer perspective by asking
them how satisfied they are with the product and service.
Employee performance: To complete the list of articles we have written about the employee
performance.

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-Expectations, Feedback, Goals, Improvement plan, objectives, performance, issue, smart,
working style.

5.0 OPERATIONAL FEASIBILTY

5.1 BUSINESS MODEL:

Inventory model- Ellize runs its business on both online and offline platforms and to run it
effectively they maintain adequate stock in form of inventory in their warehouse. Our
inventory model is very productive at delivering a faster delivery of goods to the customers
as it eliminates the dependence on other sellers for fulfilling the order and it also maintains
reliability in terms of quality as the product is directly received from a specified brand
without involving middlemen.
 Displaying goods in online and offline stores- ELLIZE showcases its beauty and wellness
products on its online portals and we have established various offline stores for serving the
customers locally. Regarding the local stores, the products are directly bought by the
customers.
 While in the case of an online store, it depicts the goods range as per the inventory available.
So, it becomes crucial for the business to keep a regular check on stock availability and
required.
 Order fulfilment- In the case of online shopping it promises to deliver within 1 to 4 days of
tenure after the order placement. Eventually, it manages to generate revenue from the
discounts provided to them for procuring goods from direct brands. They get a great product
margin as they buy goods in bulk and at last the final consumer is also benefited in terms of
reliability, quality, and the genuine price charged by Ellize.

5.2 MANUFACTURING PLANS:

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Manufacturing of Ellize products first starts with categorizing the cosmetics products such as
treatment to skin, fragrance, health and beauty aids, based on these the products are
manufactured. Experimenting many combinations in the manufacturing of cosmetics, will
produce good results for the customers and also introducing new products in our own brand
in regular intervals. Ellize also manufactures products based on the different skin
complexions and skin types. Ellize classifies the customer‟s needs and provides wide range of
skin products. Ellize product have PH balanced raw materials for the manufacturing the
makeup and skin care products.
Procuring raw materials for manufacture: The raw materials used in our cosmetic
products are mainly procured from Korea. Therefore, the ingredients used will be skin
friendly. The raw materials and natural chemicals used are like D Panthenol, titanium
dioxide, zinc oxide etc., these are used for sunscreen products to get high protection from sun
rays, proteins which form a protection on hair and skin, alkaline components are often used in
the adjustment of PH level, natural Vitamin E etc. are also used. Since Indian skin types
differs from each one, Ellize focus on the complexion and skin textures to suit the customers.
Ellize mainly manufactures cosmetics which have skin friendly substances.
Workers in the manufacturing plant: To ensure best result in the manufacture we are
employing qualified persons as CEO, Plant managers who can manage the production in a
best way. Sales and marketing manager who are creative and innovative in capturing the
customers and promoting the product sales. In addition to the above, we have employed
Machine Operators and Accountants. We have experts in lab testing so that there will not be
any mismanagement in the production and manufacturing of our cosmetic products.
Owning Labs: The manufacturing process will be completed with all kind of testing in the
lab, which will be the main place where the quality check takes place. The PH level is
maintained and the results of particular products is tested and the same has to pass all the test

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which is fit for use without any side effects which will produce 100% results. Labs have
advanced machinery and technologies to manufacture and test each product accordingly.
Ellize products supplies and production is tested by the professionals and used before coming
into the market for selling.
Own Brand and Labeling: Ellize brand will be made available in small packs and also in
different quantities with specified needs for beauty purpose and skin treatments. Ellize labels
will be made available in all stores. The substances used for manufacturing the product will
be mentioned in the label. The price and the composition of the raw materials with the
quantity used will be in the label. The description in our own label helps us to explain the
benefits of using our products.
Varieties in manufacturing cosmetics: Manufacturing beauty care products using safer raw
materials with less chemicals, hence it increases the demand for the products in the market.
Our stores will have wide variety of cosmetics such as powers, lipsticks, foundations, face
creams toners, brushes, skincare etc., of Ellize brand. Testing of the finished products before
its distribution is done and only if the test provides 100% results the product is marketed.
Clients Service: This is the main focus in the cosmetics industry, the manufacturing plan
largely depends on customer‟s need. We manufacture all kind of cosmetics with specified
client‟s needs of all age groups. Our brand will provide Ellize products in the other retail
stores, salons, and wholesales stores and in e- commerce site.
Packing of the products: The quantity of the packaging will start from a minimum of
100gms and will be packed in an attractive packing. The packs will be available in all
quantities which will enable all walks of society to buy. Quantity will be mentioned on the
packages and weighted accordingly so that we do not make errors during pricing. Ellize will
also provide samples before purchasing the product in the stores and include small sized
compliments for the buyers.
Pricing of the Products: Price of the Ellize products will be on cost and value bases, also
based on the ingredients and the buying capacity of the customers which will be made
affordable to buy. It will also vary according to the place and the region which it is sold. We
provide offers and complimentary gifts when purchased in the stores and online sites. This
method will make the customers to purchase regularly.
Supply Plan: Supply will be made to all our cosmetic stores on demand, stock will be
supplied in the right time and the quantity they are needed in. These products will be
advertised in all media and online sites.

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The manufacturing process will be focused on producing quality and safe beauty products
with all the safety protocols followed while the product is supplied to the stores. Skilled
workers are engaged in choosing correct raw materials, blending it in right proportion, and
getting the exact finished products as desired. Marketing the product in the right strategy with
reasonable price and making it available and supplied on time in all parts of the country and
in all retail stores.

5.3 PRODUCTION TECHNIQUES:

1. Continuous production: Continuous production in Ellize cosmetics is used in processing

and producing without any barrier. We produce the cosmetics in regular interval of time with
continuous flow and with the proper pricing level. There are many products which do not
have any expiry date so it is produced continuously which will also not be wasted if it is not
purchased in our stores. There are some cosmetic products which consumers always have a
huge need in the market. Ellize will produce that specific products continuously without any
shortage in our stores.
2. Batch production: Batch production of our cosmetics have wide variety in our stores. We
sell many other brands in our stores apart from our own brand. The product is produced
based on the selling rate of the specific brand and consumers needs in each store and supply
it accordingly, also batch production will help our startup business when it cannot follow
continuous production line.
On demand production: Ellize will be produced based on the demand in the market and
need of the items. Since it is a new brand it will only be produced in limited collection, if it is
being able to reach many customers, the production will increase gradually. Since cosmetic
products have expiry date in initial stages it would be difficult to produce in large numbers.
Each place will have different demand and requirement of the product, in few places Ellize
will have high selling rate based on the location and area where it is located i.e., mall and
city centres will have high demand for each product, Ellize stores will have products based on
the selling rate, so that there won‟t be any shortage which might lead to loss in the production
unit.

5.4 COMPETITORS ANALYSIS:

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FACTORS ELLIZE Competitor A Competitor B
NYKAA HEALTH &
GLOW

Strength   NYKAA is a well-known

Ellize products is produced  Each product from
using Korean ingredients. cosmetic store & brand in Health & Glow is
 Korean skincare and the cosmetic & beauty tested for its quality
beauty products are known industry. They keep and most of their
for its quality, using the introducing wide range of makeup are mineral
same ingredients will new products. based. The name
attract the customers.  Nykaa is highly visible itself clearly
 Ellize store also focus on through targeting high denotes it will be
importing all high-end end beauty parlors/salon. skin friendly.
international brands which  They sell all
are in high demand in branded items in
India. their outlet which is
easy to buy.
Weakness   Not all customers can use
Since the Ellize products  The cosmetics are
and brand name is new to NYKAA products since tested for allergies
the market and to the people with sensitive skin as well.
 Their websites are
customers, it may be a should be careful while
major drawback. purchasing because of not user friendly.
high chemical
ingredients.
 There is also chances of
receiving fake products.
Price   NYKAA
The product‟s price will be has  Health and glow
targeted
decided based on the raw customers of elite groups deals in all other
materials, manufacturing and fixed the prices of brands with the
price, the cost price and their products same market retail
quality. accordingly. price.
 Imported  NYKAA also came up
branded  Variety of Products
products will be sold at the with a range of cosmetic are available in a

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market retailed price. products targeting the wide range
working ladies and media depending on the
people, their prices were kind of products the
slightly higher than the customer needs.
basic products.
Quality   The
Quality will be the primary quality drop  Health&Glow is
of
factor which will not be NYKAA will result in the known for their
compromised for price. negative word of mouth excellent quality.
 We will fulfill the which can affect their
customer‟s needs for best product sales and growth
result and to reach many of the company in future.
customers.
Sales  Introducing  Nykaa uses social media
Ellize  Selling all brand in
method cosmetic brand products to promote their brand the store is very
for all age groups and and offer different pricing accessible to
genders. rates to attract the people. customers and also
 Selling all kind of branded offer different price
cosmetics which are made in online and stores.
available in a one stop
destination, which will be
the main aim of our store,
therefore the sales will
increase.
 Ellize will provide samples
and complimentary gifts to
attract the customers.
 Ellize will be advertised in
Advertising  NYKAA have  They
strong make
all the media forms. advertising to stand in the promotion through
 Advertising in television minds of the customers, magazines,
using celebrities to make using top celebrities as Newspaper and
our products even more their brand ambassadors advertising in
famous and reachable to and representing their television
the customers. company. They also

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conduct different events
to promote the brand.

Location  Ellize product will  NYKAA is available in Health and glow

be
available in malls, online all areas of the country have various outlets
shopping apps for example conveniently. in many cities.

flip kart, amazon etc., also All the Nykaa products
in Ellize websites and in are easily available in all
all local cosmetic shops. kind of stores including
 Ellize stores will be retail outlets, shops,
located in the prime areas hyper markets, malls, etc.
in the city centers.

5.5 LOCATION AND FACILITIES:

Ellize‟s outlets are located in 35 places across India. The stores attract various customers
from all over India and has a wide range that is affordable by all customers. The rent is
slightly on the higher side but it balances with the income that we are going to receive.

1. Phoenix Market city – Mumbai

2. The Great India Place – Noida
3. South City Mall – Kolkata
4. Sarath City Capital Mall – Hyderabad
5. Lulu International Shopping Mall – Kochi
6. Dlf Mall of India – Noida

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7. Z Square Mall – Kanpur
8. Hilite Mall – Kozhikode
9. World Trade Park Mall – Jaipur
10. Phoenix Marketcity – Bengaluru
11. Elante Mall – Chandigarh
12. Esplanade One Mall – Bhubaneshwar
13. Phoenix Marketcity – Chennai
14. Vr Mall – Chennai
15. Ampa Skywalk – Chennai
16. Mantri Square Mall – Bengaluru
17. Orion Mall – Bengaluru
18. Ambience Mall – Gurgaon
19. Forum Mall – Bengaluru
20. Viviana Mall – Thane
21. Select Citywalk Mall - Delhi
22. High Street Phoenix Mall – Mumbai
23. Ahmedabad One Mall – Ahmedabad
24. Pacific Mall – Delhi
25. Grand Venice Mall – Greater Noida
26. Ub City Mall – Bengaluru
27. Wave Mall – Noida
28. Gvk One Mall – Hyderabad
29. Express Avenue – Chennai
30. Fun Republic Mall – Lucknow
31. Infiniti Mall – Mumbai
32. Db City Mall – Bhopal
33. Forum Fiza Mall – Mangalore
34. Mall of Travancore – Trivandrum
35. Prozone Mall – Aurangabad
The advantages for opting to situate our stores in the above said malls:
1. The locations will be situated in and around the central areas with easy accessibility by the
customers.
2. Ellize stores will be located in the prime areas where there will be a bustling crowd and there
won‟t be lack of customers.

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3. Our outlets are located near the metros and major bus stops so that it will be convenient for
the customers to visit our stores, they‟re mostly in the main areas therefore the stores will be
easily available for the customers.
4. The environment in which the malls are situated is pleasant and welcoming of everyone.
5. The various activities that are conducted in the malls will attract the crowd to our stores since
it is in a visible area from the common area.
The locations we have chosen is convenient for the customers as they don‟t have to travel
elsewhere to go get their products. They can visit the malls anytime and visit our shops while
they are at it. The interior designs are well made and the size of the shop is as such that it
does not get cramped due to the number of customers in the shop. The malls pleasant
environment enhances our business as well as the customers will be in a pleasant mood to
make their purchase without any agitation. The parking will not pose a problem and there will
be a garbage disposal that we can make use of. It is consistent with our image and it might be
what the customers are expecting since they can easily access our shops and need not go out
of their way to travel if we are situated elsewhere. There are competitive stores situated
within the malls but the advantage we hold is that our stores are easily visible to the
customers and is situated in a place where the customers need not walk for long.

5.6 LEGAL CHARGES:

Under the Drugs and Cosmetics Rules, 1945. Schedule M-II, form 31 has been submitted to
the Licensing Authority appointed by the State Government of each states where the stores
are located. The form has been submitted along with the license fee of Rs. 2500 and an
inspection fee of Rs. 1000.
The production is done in the presence of a competent and qualified technical staff and at
least 8 staffs holds one/two of the following qualifications:
 A Diploma in Pharmacy approved by the Pharmacy Council of India under the Pharmacy
Act, 1948; or
 Registered under the Pharmacy Act, 1948; or
 Passed the intermediate examination with Chemistry as one of the subjects or any other
examination as recognized by the Licensing Authority as equivalent to it
The Licensing Authority inspected the whole premises where the operations are carried out.
The inspectors are appointed under the Act. After submitting a detailed report, we were
granted the license to start our manufacture.

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Factory premises:
The factory premises comply with the conditions laid down under Schedule M-II. Some of
the general requirements that we follow are as follows:
 Location and Surroundings:
The area in which the factory/manufacturing facility is located and the vicinity is hygienic
with proper sanitary conditions. No operations are taken place within or around a residential
locality.
 Building:
The building in which the operations are to be carried out is free from rodents, insects etc.
The rooms of the building are at least 8 feet from the floor in height. It is also smooth,
waterproof and is capable of being kept clean. With respect to floors the same is applied.
 Disposal of used water:
Suitable arrangements are made for careful and proper discharge or disposal of waste
water. It is made sure that this disposal does not harm the environment present in and around
the factory.
 Staff:
The appointed staff persons do not suffer from any communicable or infectious disease. They
are provided with the necessary tools such as hand gloves, masks, uniforms etc., as and when
they are at work. First aid facility is also available inside the factory premises.
Labelling requirements:
The labelling requirements as laid down under the Drugs and Cosmetics Rules, 1945 are
followed:
 Name of the product along with the manufacturing address is mentioned on both the inner
and the outer labels. If the container is small in size then only the principal place of
manufacturing and the pin code are mentioned.
 The outer label clearly specifies the net contents of the ingredients used in the manufacture of
the product.
 The inner label contains the „directions for use‟ along with any warning or caution that may
be necessary. It also contains names and quantities of ingredients which are hazardous in
nature.
 A distinctive batch number preceded by letter „B‟ along with manufacturing license number
preceded by letter „M‟ is mentioned on the label.

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Quality standards in case of the afore mentioned categories of products conform to the Indian
standards laid down and revised by the Bureau of Indian Standards (BIS) from time to time.

6.0 FINANCIAL FEASIBILITY

6.1 BUDGETING AND FORECASTING:

FORECAST:
In order to launch our unique product line Ellize requires an initial outlay. Sales at Ellize
retail stores are planned to grow rapidly from Year 1 through Year 5. During this time frame
our wholesale revenues are planned to grow enormously. Ellize will become profitable in our
third year of operation. Initial growth will be financed by a combination of equity
investments and debt financing. Our ratios are well within prudent limits and our growth
plans are challenging, but realistic.
We are seeking recurring investment to fund the growth of the brand, and position the
company for an IPO. The plan that follows explains our market, our value proposition and
our market segmentation strategy. The detailed financial plans provide a clear view of our
sales and profit forecasts. These plans show how Ellize will reach profitability in our third
year of operation and generate shareholder return on equity within five years.
Our assumptions are detailed in the proceeding sheets. We have planned for relatively slow
but stable general economic growth and an interest rate on borrowing of 9.5%.

6.2 FINANCE:

USE OF FUNDS:
Start-up costs are shown in three areas. The first is in the start-up table, the second is within
the cash flow assumptions and the third is in the P&L.

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1. Start-up expenses: legal (incorporation and trademark registration), stationery (business
cards and office supplies), etc., brochures, consultants (graphic design for logo and
packaging), research and development (architecture fees for store and trade fixture design).
2. Start-up costs expressed in year one cash flow: FF&E for first few Ellize retail stores.
3. Start-up costs included within year one P&L: Brand marketing, management staff, travel
costs to coordinate product development.
Start-up expenses referenced in retained earnings
Legal RS.1,50,000
Stationery etc. RS.2,10,000
Brochures RS.2,00,000
Consultants RS.10,50,000
Research and Development RS.21,00,000
Expensed Equipment RS. 42,00,000
Other 35,00,000
TOTAL START-UP EXPENSES RS.11,41,000,000
Source of funds
The start-up expense for this company is 29,400,000. There is 70,00,000 in current borrowing
as a bank loan and the remaining from our promising investors. The following is the spilt up
of the amount.
Ms. Ashika - 22,40,000
Ms. Pranava harithra- 17,92,000
Ms. Druthi – 26,88,000
Mr. Shiva - 11,20,000
Mr. Diwakar - 11,20,000
Ms. Anushka - 33,60,000
Ms. Sowjanya - 33,60,000
Ms. Preethika - 22,40,000
Mr. Karthik - 44,80,000

6.3 BREAK EVEN ANALYSIS:

The following is the break-even analysis of our company

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Cost Description Fixed Costs

Variable Costs
Cost of Goods Sold 1,36,11,327
Inventory 31,15,000
Direct cost 2,55,97,180
Fixed Costs
Salaries (includes payroll taxes) 1,66,00,500
Supplies 1,09,200
Telephone 1,34,400
Utilities 1,68,000
Insurance 1,26,000
Interest 1,52,600
Depreciation 4,55,000
Total Fixed Costs 1,77,45,700
Total Variable Costs 4,23,23,507
Breakeven Sales level = 1,77,45,700

6.4 PROJECTED CASH FLOW STATEMENT:

PARTICULARS 2020 2021 2022

NET CASH FLOW FROM - - -
OPERATION
NET PROFIT 18,904,620 13,663,930 9,305,170
DEPRECIATION&AMORTIZATION 4,55,000 4,55,000 4,55,000
CHANGE IN ACCOUNT 0 0 0
RECIVABLE

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CHANGE IN INVENTORY (2,949,800) (1,170,400) 0
CHANGE IN ACCOUNTS 3,420,270 620,270 0
PAYABLE
CHANGE IN INCOME TAX 0 0 0
PAYABLE
CHANGE IN SALES TAX 0 0 0
PAYABLE
CHANGE IN PREPAID REVENUE - - -
NET CASH FLOW FROM 19,830,090 13,568,800 9,760,240
OPERATION
INVESTMENT AND FINANCING - - -
ASSETS PURCHASED OR SOLD - - -
NET CASH FROM INVESTMENT - - -
INVESTMENT RECEIVED - - -
DIVIDEND AND DISTRIBUTION - - -
CHANGE IN SHORT TERM DEBT (7000000) - -
CHANGE IN LONG TERM DEBT 0 0 0
NET CASH FROM FINANCING (7000,000) 0 0
CASH AT BEGINNING OF PERIOD 9,800,000 22,630,090 36,198,890
NET CHANGES IN CASH 12,830,090 13,568,800 9,762,240
CASH AT END OF PERIOD 22,630,090 36,198,890 45,959,060

6.5 STATEMENT OF PROJECTED PROFIT & LOSS:

PARTICULARS 2020 2021 2022

REVENUE 67,361,000 95,760,000 1,14,240,000

DIRECT COST 25,597,180 36,3888,800 4,351,200

GROSS MARGIN 41,763,820 59,371,200 70,828,800

GROSS MARGIN % 62% 62% 62%

OPERATING EXPENSES

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SALES&WAGES 16,600,500 35,767,760 48,966,890

EMPLOYEE RELATED EXPENSES 3,320,100 7,153,580 9,789,570

LEASED EQUIPMENTS 1,512,000 1,512,000 1,512,000

UTILITIES 1,68,000 1,68,000 1,68,000

INSURANCE 1,26,000 1,26,000 1,26,000

LEGAL FEES 1,84,800 1,84,800 1,84,800

LICENSE 96,600 96,600 96,600

OFFICE SUPPLIES 1,09,200 1,09,200 1,09,200

TELEPHONE 1,34,400 1,34,400 1,34,400

AMORTIZATION OF OTHER ASSETS 0 0 0

TOTAL OPERATING EXPENSES 22,251,600 451,252,340 61,068,560

OPERATING INCOMES 19,512,220 14,118,860 9,760,240

INTERST INCURED 1,52,600 - -

DEPRECIATION AND 4,55,000 4,55,000 4,55,000

AMORTIZATION EXPENSES
GAIN OR LOSS FROM SALE OF - - -
ASSET
INCOME TAX 0 0 0

TOTAL EXPENSES 48,456,380 82,096,070 1,014,934,830

NET PROFIT 18,904,620 13,663,930 9,305,170

NET PROFIT/SALES 28% 14% 8%

6.6 PROJECTED BALANCE SHEET:

PARTICULARS STARTING 2020 2021 2022

BALANCE

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CASH 9,800,000 22,630,090 36,198,890 45,959,606
ACCOUNTS 0 0 0 0
RECIVABLE
INVENTORY 3,115,000 6,064,800 7,235,200 7235,200
OTHER CURRENT 0 0 0 0
ASSETS
TOTAL CURRENT 12,915,000 28,694,890 43,434,090 53,194,260
ASSETS
LONG-TERM 4,550,000 4,550,000 4,550,000 4,550,000
ASSETS
ACCUMULATED 0 (455,000) (910,000) (1365,000)
DEPRECIATION
TOTAL LONG- 4,550,000 4,095,000 3,640,000 3,185,00
TERM ASSETS
TOTAL ASSETS 17,465,000 32,789,890 47,074,090 56,379,260
ACCOUNTS - 3,420,270 4,040,540 4,040,540
PAYABLE
INCOME TAX - 0 0 0
PAYABLE
SALES TAX - 0 0 0
PAYABLE
SHORT TERM DEBT 7,000,000 - - -
PREPAID REVENUE - - - -
TOTAL CURRENT 7000,000 3,420,270 4,040,540 4,040,540
LIABILITIES
LONG TERM DEBT 0 0 0 0
TOTAL 0 0 0 0
LIABILITIES
PAID IN CAPITAL 22,400,000 22,400,000 22,400,000 22,400,000
RETAINED (11,935,000) (11,935,000) 6969620 20,633,550
EARNINGS
EARNINGS - 18,904,620 13,663,860 9,305,240
TOTAL OWNERS 10,465,00 29,369,620 43,03,550 55,338,720

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EQUITY
TOTAL 17,465,000 32,789,890 47,074,090 56,379,260
LIABILITIES AND
EQUITY

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