B B BALM B B
BALM
Jun Park
Contents Page
1. Executive Summary
- Mission Statement
- Aims and Objectives
- S.M.A.R.T Goals
- Timeline
2. Market Research
- Market Research proposal
- SWOT Analysis
- Marketing Mix
- Analysis of Competitors
- Community Context
3. Human Resources
- Organisational chart
- Group member attributes
- Key Stakeholders
- Methods of communication
4. Finance
- Sources of Finance
- Break Even Analysis
- Expected income statement
5. Operations
- Production Process
- Quality Control
- Health and Safety
- Feedback
Felipe Almiron
Gianne Alim
Benz Pattanapanitchakul
Suzy Kim
Executive Summary
B B BALM is all about making your lips a number 1 priority, we realise that your lips are an important part of your
body and we want to help you take care of them with our basic, all natural lip balms. Our lip balms are made with
only natural and safe products. Our main ingredient vaseline, it is safe on the skin and provides many positive
benefits for your lips to look the best they have yet. Our lip balms are all 100% chemical free and not animal
tested, which makes us a trusty partner ship business who cares about what our customers think.
What we learnt from our questionnaires was that we got more intel on what the consumers want and need from
our lip balms and packaging. This has given B B Balm an advantage to improve on the quality and packaging of
our lip balms to meet the needs and wants of our customers. What we learnt from our competitor analysis is that
What is so unique about our marketing mix is that we promote our business through our personal social
connections, our Facebook page Gianne and Suzy made helped us gain a lot of potential customers. Social media
is one of our strengths and we know our way around it which makes it easier for us to use our page the right way
so people know what we’re selling. How we will overcome our weaknesses and threats is that we have our own
suppliers who are Suzy, Benz and Gianne who will buy the ingredients and packaging that our business will need
for our lip balms. Since we had reliable suppliers it was easy for us to quickly get our materials and easily create
our product in time for pre sales and the market day. Another one of our weaknesses is that B B Balm is that we
are an unknown brand, but how we can overcome that is through the use of social media. B B Balm has created a
Facebook page to advertise our business and this is easier to target it to a more wider audience, since we’re a
business we definitely want our products to be out there in the public eyes. So we came up with the idea of
making samples of our products so customers could see if they liked our product and tell us their opinion about
our lip balm and see what we could do better. The samples lead consumers to spreading the word about our
product and more people became interested in our lip balms, the fact that consumers got to try a sample before
buying was very helpful because they got to know more about our products and see if they actually would use it in
the long term. Each of our group members chose in the beginning what position they think they would suit best,
Benz’s unique outer packaging ideas made our product look neat and professional. Most of our group members
are very enthusiastic and bring good ideas to the table, they focus a lot on what jobs they have to do and make
sure they finish it to it’s best standard. Our communication methods are very efficient for the group as the
methods we’ve used have been done with a lot of effort. Our posters, surveys and social media has been worked
on to the best we can make it which gives a good impression to possible consumers. Our group in the end made a
profit of $56.90, another benefit is that it is also more than we made more money than the money gone into
making the product. Our production process is unique because we make every lip balm with love and care, we
care about how our customers will think about our lip balms so we’ve made sure that every single step in our
procedure is not done messily. Another reason why we believe our production process is different is that we’ve
used only natural products in our balm, our survey gave us information that customers would rather buy a natural
lip balm than a lip balm containing hidden chemicals. We’ve listened and bought pure refined petroleum jelly
which is a quality product for the skin. Our code of conduct is important because it all outlines our main mission
and values of our business. B B Balm uses tikanga to help guide us along the way into attaining a successful and
reliable business. We don't run our business just for the sake of running it, our purpose is to create a lip balm that
is 100% natural, doesn’t include any hidden chemicals, that will moisturize our customer’s lips leaving them
nothing but satisfied with our product. Through using the concept of putake, B B Balm doesn’t make lip balms just
to fulfill our desire of getting profit, but we make them because we want customers to rely on our product
knowing it’s all natural and environmentally friendly.
Mission statement:
To save our clients lips from getting chapped with our moisturizing
and hydrating lip balms. Chapped lips is not an issue with our B B
BALM.
Mission and Objectives
Goals
1. We want customers to feel happy with the way their lips feel and look, our lip
balms will give them the satisfaction that they need.
2. Make a presentable product that is appealing and will catch interest among the
customers. Our lip balmzvs should stand out from the average lip balm customers
are use to.
3. To make sure our product is environmentally safe so that more people will buy it
knowing that we’ve made a lip balm that won’t harm customers lips and chemical free.
4. To make a profit of $30, and sell at least 10 tubs of our product, in the time given.
Timeline
START
DATE
ACTION
DEADLINE
PERSON
RESPONSIBLE
DATE COMPLETED
16/06
Executive summary
16/07/17
Gianne and
Suzy
Done
16/07/17
19/05
Marketing Mix
24/05
All
Done
16/06
Community Context
16/06
Suzy
Done
16/06
Break-even analysis
16/06
Jun
17/05
Mission statement
and final company
name
18/05
All
Done
5/05/17
17/05
Write up our goals,
at least 3
18/05
All
Done
19/05/17
Buy Ingredients and
Equipment for the
lip balms
02/06
Suzy, Gianne,
Benz
Done
18/05
Operations
20/05
Gianne and
Suzy
Done
18/05
SWOT Analysis
21/05
Felipe
Done
26/05
Survey and find out
research on our
target market
02/06
Gianne, Suzy,
Jun
Done
22/05
Analysis of
competitors
24/05
Suzy
Done
18/05
Communications and 21/05
Stakeholders sheet
Gianne
Done
18/05
Find costs for
making of the
lipbalm
19/05
Jun
Done
19/05/17
05/06
Packaging
12/06
Benz, Suzy,
Gianne and Jun
Done
05/06
Posters/Tags
14/06
Gianne and
Benz
Done
08/06
Group member
attributes
12/06
Suzy
Done
Feedback
Benz
Done
Cash Handling
Suzy
Done
MARKETING RESEARCH:
How would you improve it? - We asked this to see what customers believed would
make our product look better:
● ‘Add your own logo’
● ‘Add more colour’
● ‘It would look good if you placed the name of your brand somewhere on your
product’
● ‘Labels’
- Our competitors are our own classmates or anyone who is trying to catch the
attention of the customers away from us. Other groups are doing products such as
easy bake cookies in a jar with all the ingredients in a jar ready to be made, others
are doing candles/beauty products they are all simpletons. Our group has made
the genius breakthrough of Lip Balm it's easy and affordable. Because we are
selling a beauty product we can safely assume that the majority of our customers
would be women so a feminine approach would show the best outcome for more
sales.
- After debate amongst the group we have come to the consensus of $3.00, also
from results in our survey 38.50% would pay $3.00 for our product and 35.90%
would pay $3.50 for our lip balm. We provided a picture of our actual product so
customers know what we were selling and how much they would be getting. Since
more people would rather pay $3.00 we decided that customers believed that
$3.00 is the best price to sell our lip balms for.
- The packaging is really important to a lot of our customers, so we’ve decided to
improve ours. The survey made us change our minds and make a better packaging
in order to attract more customers, since most of the people we surveyed
prefered more of a classy look for our lip balms . We’ve come up with a natural
and clean packaging to aware our customers that we are a business who sells
natural, environment friendly lip balms.
Business Swot Analysis:
Strengths
● We are a group of people with very
good social skills that will help us
when selling our lip balms, since it’s
easier to get to know our customers
when selling. This is a good benefit for
us because of our social skills, we can
convince potential customers into
buying our lip balms, also making
them feel comfortable around our
group members.
● Our USP is very innovative yet simple.
This is an advantage for our business
because not all lip balm brands are
100% chemical free and all natural.
So customers knowing that we have
no hidden chemicals in our lip balms,
they will see that B B Balm is a
reliable business.
● We have social connections through
social media. We can contact our
friends very quickly, since we also are
familiar it benefits how we use our
social media to connect.
Weaknesses
● Lack of capital: None of us are making
our own money, so we won’t be able
to afford the ingredients and
packaging equipment with our own
money so we just rely on our parents
instead.
● B B Balm is a unknown brand. Nobody
knows about our business so it's going
to be very difficult to compete with
big brands such as Lush and Body
shop.
● Lack of knowledge on marketing, we
are new to this area and this is our
first business. We have a lot of things
to overcome as our first time working
together as a team.
How we will overcome this
● We have suppliers who are Benz, Suzy
and Gianne and they have decided to
help our business buy the ingredients
and the packaging equipment we
need for our lip balms.
● Social media is a huge influence and
targets the wide market, friends are
easy to connect with via social media.
● Our teacher, Mr Bass will help and
guide us a lot with skills on how to
run our business and notes on how to
handle our finances and production.
Opportunities
● Pre sales could help us make even
more money. By making early sales
we will ensure that we get to the
breakeven point.
● Social media is available for
promotion and that will help us
spread the word. We can be able to
promote our business through making
a Facebook page and we can easily
share it around to our friends and
family.
● Changing our customers tastes from
basic flavours such as strawberry and
mango, to new ones, like chocolate
mint and vanilla rose which is more
creative.
Threats
How we will overcome this
● We are a really small business
● Our USP is different and makes us
different from our competitors. We
working with a general product. We
will also promote our products to
have also lot of competitors in the
close friends and family so our
same area of business which is health
products become more known.
and beauty.
● Big brand competitors with the same
product such as Lush and Body Shop.
People tend to care more about how
famous the brand is more than the
quality of it.
●
Competitors in the room that are
targeting the same market. Every
● Though we aren’t as ‘big’ as already
existing skincare brands out there,
we will heavily promote our product
and rely on not making our products
using chemicals.
● We’ve promoted our products in many
ways and hopefully different to how
other business that targets the same
customers are a threat.
other groups in our class and the
others did. We’ve targeted mainly
customers who are interested in
buying something for their lips.
Marketing Mix
Product
B B Balm is the new face for lip balm and its quality and design will bring a new
competitor to the market. Our most unique selling point is that it’s 100% chemical free
and each batch is made from scratch. Our lip balm comes in two different simple
flavours, Chocolate Mint and Vanilla Rose. We kept our packaging as simple as possible
so that customers would feel attracted to the product not intimidated or confused by it.
The packaging of our lip balms is just a simple brown paper bag with the word “BALM”
stamped on the front. We fold the paper bags in how you fold a pamphlet and tie a tag
through a hole on the corner of the bag like shown below. Since our lip balm isn’t a big
product we thought that it’d be unnecessary if the packaging was huge compared to our
lip balm inside. The USP of our Vanilla Rose lip balm is the roses decorated inside our lip
balm. The rose pieces stand out and make the lip balm look very appealing. Our lip balm
containers may not have a very outstanding look but we’ve decided to go for a more
classy label with a ring around it in the colour that suits the certain flavour.
Price
Our lip balm product balm has been priced to be sold at $3.00. The reason why our price
is $3.00 is because each unit of lip balm cost $1.50 so by selling our product double the
cost we are already making back our money that we used to make the product from each
lip balm sold. In order to sell more units, we are selling 2 for $5. The customers see that
this as a very good deal and is a perfect opportunity to try both flavours we are offering.
This might seem like a profit loss, but in fact, is going to help us sell more units and
ensure we make profit. Our survey helped us choose this price for our lip balms, we didn’t
want to price too high or else no one would have bought it considering that our product
is homemade. Customers mainly said that they would pay $3.00 for our lip balms so
we’ve decided that it was a good price to sell our lip balms for.
Place
We use a direct channel to customers so that we can reach out to customers directly
because we have access to the customer’s needs easily. We will bring the product to
Botany Town Centre to sell so that we can increasing sales and make more profit also it
can make people know the product of brand we add. We are selling and distributing the
product in Facebook page, so that customers who want to purchase can be ordered from
online. Botany Town Centre is a very popular and busy area where many people come to
purchase products, the town offers food, clothes, entertainment which means customers
are offered the opportunity to buy what they need then are able to rest by eating or
enjoying provided entertainment. Since the market is huge there will already be many
customers around the town centre, this means a lot of advertisement isn’t really needed
to reach our target market. This is a benefit for our company therefore many customers
will be able to pass by our stand and see what we are selling. Traffic would be busy but
customers wouldn’t have a hard time trying to find a place to park considering how large
the area of Botany Town Centre is. Since we’re in a mall area it isn’t hard for potential
customers to notice us and come along to our stand to see what we’re selling.
Promotion
B B Balm uses four kinds of promotion strategies which are advertising, direct
marketing, sales promotion and personal selling. We advertise our business through the
use of our Facebook page because it targets a more wider audience and our lip balms can
be easily shared around through the use of media. We also advertise using posters so it
would be able to attract customer’s eyes, making them tempted to want to come and
visit our stall. B B Balm uses direct marketing such as email, because it only generates a
response from a specific audience. We made a customer survey and sent them to our
fellow Macleans students to find out what they thought about our lip balms and gave us
feedback on how we can improve it which helped a lot. We made a customer survey so
we would be able to measure the results from it to calculate a break-even point. It also
made our business kind of known around Macleans. B B Balms made pre-sales through
the use of Facebook and Word of mouth for our targeted audience which are Macleans
students, so we would be able to make more profit before our only selling day, and also to
target more potential customers to buy our lip balms. Personal selling is a promotion
strategy we use because one of our group’s strengths is that we have good social skills
and are able to convince potential customers to buy our lip balms. We also do this so we
could talk to customers more about our lip balms, what the ingredients are, what the
main purpose of our business is and why they should buy it, etc.
Analysis of Competitors
Our group is selling a cosmetic product, the other students in their own groups are
selling products such as face scrubs, Instant cookies and candles. Even though our
competitors are not selling lip balm we are still competing against them for profit and
customers.
LUSH
Lush is a very popular skincare company, founded in November 12, 1995 in England. They
sell various fresh handmade cosmetics, ranging from makeup, body, face, hair, perfume
products. What makes Lush different is that all their products are only made using
vegetarian and vegan recipes. Lush products are 100% vegetarian, they label this on
their products so customers are aware of what they’re buying. Their products are also
palm oil free, and they have made sure to get rid of any palm oil traces. Lush’s most
popular sold out product is their handmade bath bombs that range in many vibrant
colours. Lush reaches out to their customers with their own website, customers can
easily see the whole range of products that they’ve made. Lush has created their own
social media pages which helps them reach out to their younger target market. Lush’s
most expensive lip balms are sold for $14.90, these tubs contain 12g worth of lip balm.
Lush only uses natural ingredients and safe synthetics in the lip balms they’ve made.
Lush’s most expensive lip balm is a bit more affordable than The Body Shop and also list
out all ingredients they’ve used in the lip balms, they all put a tab saying how their
products are cruelty free and buy from only suppliers who do not test on animals.
THE BODY SHOP
The British cosmetic company was found in 26th of March 1976. The cosmetics company
has a range of 1,000 different products for the skin and body. The Body Shop is very
much against animal-testing and has campaigned to end animal testing in cosmetics.
They certify their products with the leaping bunny from ‘Cruelty Free International’ this
proves that their products are cruelty-free and ensures customers that ingredients are
not tested by its suppliers. The Body Shop insists that their products are ‘inspired by
nature’ and are a certified organic skin care line. The Body Shop sells their lip balms at a
quite expensive price, but at the same time we must consider the expenses that go
towards their organic ingredients used in their lip balms. Their most expensive lip balm is
their “wild argan oil solid oil lips” lip balm that is priced at $22.95, this lip balm contains
only 20mLs of the product and contains argan oil that has been community traded from
Morocco. Most 10mL lip balms from Body Shop are priced for $10.95 which is $7.95
more expensive than our product. These lip balms have a shelf life of up to 12 months,
but the company has gotten reviews about how their lip balms have made customers lip
dry out even though the product was meant to serve it’s purpose to care for the lips. But
many customers are happy with the condition these lip balms are in and very satisfied
with how long their shelf life is and the great scents they provide.
COMMUNITY CONTEXT
Our B B Balms are chemical free and only contain natural ingredients that we’ve tested
on our own skin so consumers know our lip balms are safe to use on their skin. Our lip
balm base ‘Vaseline’ is 100% pure refined petroleum jelly that is non-toxic. This means if
our product was left to rot it would not harm any animals but cause a small stool.
Customers can definitely expect a safe, non irritating lip balm that smells and feels good.
We are also aware about some customers who may have allergies to ingredients in our
product so we’ve made sure when doing pre sales we tell our customers what’s exactly in
our balms. On market day we had tags saying what each of our lip balms contained so
customers could directly see. A lot of lip balms in cosmetic stores are priced at very high
prices, what makes us different is that we’ve asked possible customers how much they
would pay for our lip balm, this has helped us to come up with an affordable price which
we and our customers believe is suitable for our lip balm.
HOW IT AFFECTS THE COMMUNITY
Do you know the saying, “Reduce, Reuse, Recycle”?. Well our company 100% believes
that these three steps can make a huge change towards the environment. After
customers use up all the lip balm in the containers, customers can easily clean out the
residue and reuse the container instead of just throwing a useful container away.
Whether what use customers reuse the container for, our company wants our customers
to learn to recycle and realise how their small action can make a huge difference.
HUMAN RESOURCES
Contributions towards the business
CEO/Finance Jun Park
In the beginning of this assessment our group came to a decision that Jun would be our
CEO for B B Balm. Jun has good leadership skills and knows when our group should be on
task to get our work done on time. Jun is also confident at maths which is a benefit for
our business since he is able to work on our finances and break-even analysis. Jun’s main
job in our business is making major decisions, e.g In the beginning of this assignment we
had a big decision whether to create soap or lip balm, as the CEO Jun decided that it
would be better to make lip balm than soap with convincing reasons for our whole group
to agree on. Jun has worked on the Product section for our 4p’s, he has also written up
our market research based from our survey results.
Sales: Felipe Almiron
Felipe took on the role of handling the sales for our business, for sales we require
someone who promote and sell our product. Felipe is a very good speaker and is able to
promote our product to possible customers and friends. Felipe has been helping our
group a lot and has found out research about our target market from face to face surveys
which helps our groups to get specific information about our product. Felipe has worked
on our SWOT analysis, that analyses our business’s key strengths, weaknesses,
opportunities and threats. Felipe speaking out about our product has helped target the
students in Macleans to purchase our products.
Communications: Gianne Alim
Gianne controls our communications which is a very important role in our business.
Gianne has worked on the stakeholders and communications sheet, she has outlined key
stakeholders. Our survey and posters were made by help from Gianne, she has a creative
mind and knows how to represent our brand. Gianne has also worked on our Promotion
for our 4p’s, this helps our group know what promotion methods we can use for our
business. Our internal and external communication methods were written up by Gianne,
our communication methods are helpful because, it helps us connect with our customers
and widely promote our lip balms. Gianne has helped by buying the sole ingredient for
our lip balm, and has designed the layout of our promotions also contributed with our
Facebook page for B B Balm. Gianne has written up the executive summary together with
Suzy as well.
Productions Manager: Benz Pattanapanitchakul
Benz controls the productions, and the overall concept of our lipbalms. Benz is a very
talented artist and has sketched many possible logos and product designs. Benz has
focused on our packaging for our product and has found ideas that would be suitable for
our lip balms. Benz has worked on our Place for our 4p’s, she has thought of which
channel would be most suitable for our company. Benz has bought products for our
packaging and came up with the idea of having tags and the overall design layout of our
packaging.
Human Resources: Suzy Kim
Suzy organizes jobs everyone in our group handles, as HR she has made sure our health
and safety of our products is up to standards. We are aware that customers will be wary
of the product coming into contact with their skin, so Suzy has sterilised all equipment
we’ve used in the process of making our lipbalms. Suzy contributed with the making of
our product since she has made all the lip balms for our group to sell. Suzy thought up of
the recipe we’d use to make our lip balms, Suzy’s worked on the Facebook page we have
for B B Balm, and made sure the page got out there and we brought customers in. The
analysis of competitors have been found out and written down by Suzy. She and Gianne
have worked together to complete the executive summary.
Key Stakeholders
Internal stakeholders
- Employees
Our group members are very important to B B Balm because we all work together as a
team and make sure we create the best lip balm for our consumers. We all have our own
strengths that help the group succeed well. We’re a positive bunch of students who work
well together and are not afraid to contribute in group discussions and speak up if we
don’t agree with any ideas.
- Suppliers
Our suppliers, Suzy, Benz and Gianne are important to our business because they have
bought all the products we need to for the making of the lip balms to be possible. Our
parents have helped a lot and has supported our journey of making the lip balm,
Countdown, Daiso, Pak'nsave and the 1, 2, 3 dollar store were main stores where we
bought the materials for our products from. They have provided all the right equipment
we needed to make our balms.
External Stakeholders
- Mr Bass
Mr Bass is very important to BB Balm because he has a lot of knowledge towards running
a successful business. He can guide us to making our business run smoothly, supporting
us with good information. Mr Bass knows when our group is struggling so he makes sure
we know that we’ve got to be on track.
- Customers
The purpose of a business is to create customers. Without our customers, B B Balm won’t
be able to make any profit and living up to customers needs is what comes first. How we
will be able to satisfy their needs is by creating a lip balm that will provide a cooling
sensation to their lips, leaving them nothing but contented with the quality of our lip
balms.
Methods of Communication
Internal
- Group Meetings
Group meetings is a good internal communication method because it units our group and
it is a good time for our members to have open minds and share their opinions on how we
can make, create and improve our lip balms. This method will help B B Balm run more
efficiently and achieve our goal of developing a well presented product to appeal to our
customers. With holding group meetings it helps us to combine our ideas together to
make a lip balm that not only hydrates our customer’s lips but made with good intentions
for the environment.
External
- Face to face communication
Face to face communication is a good method because it allows us better social
opportunities to associate with our potential customers. Making them feel more
comfortable towards us and our business. This method will help run BB Balm more
efficiently and achieve our goal of making our customers feel satisfied and happy with
our lip balms because a way to make customers happy with a product is to create a
genuine bond with them and also to make them feel comfortable enough with our
employees to be willing enough to buy our lip balms.
- Facebook
Facebook is a great method of communication because we can advertise BB Balm to
more potential customers and get friends and family to support us by liking our business
page and engaging with our posts. This method will help run BB Balm more efficiently
and achieve our goal of developing a lip balm that will catch customer’s interest.
Facebook helps us to achieve this goal because our business page can easily spread
around online by our friends and family sharing it with their mutual friends, and the
exposure of BB Balm will rapidly increase. Our group has created a public survey on
Facebook to stay in touch with potential customers on social media and get quick
responses at any time. We’ve gained many interested customers and made sure we
uploaded pictures of our lip balms so people some source of reference to what our lip
balms looked like. Our social media gained over 70 likes in only 2 days.
- Email Marketing
Email marketing is a good method of communication because we can be able to reach out
and target as many potential customers as we can. Also it is directed to a specific
audience and our audience is our fellow Macleans students. This method of
communication will be able to run BB Balm more efficiently and achieve our goal of
catching our customer’s interest. Email marketing helps us to achieve this goal because
Macleans students are one of our main target markets and it is a lot easier to reach out
to them because of their student emails. Also they can be able to tell their other
classmates about our business through word of mouth, spreading our business to a more
wider audience.
This is our customer survey :
https://docs.google.com/a/student.macleans.school.nz/forms/d/1vcGIH0LuOU3M0njfvxc
_mn0lXVBq5yOuvc_HB04MFgQ/edit
- Posters
Advertising posters on market day is a good method of communication because potential
customers around the local area can be able to see the posters and will most likely be
tempted and curious to come visit our stall. This method will help run BB Balm more
efficiently and achieve our goal of catching our
customer’s interest with our lip balms. This will help
achieve that goal because a poster that attracts
people’s eyes will lead them to want to see what our
lip balms will look like and will be interested enough
to buy them.
Finance
Costs and finance for
-Vaseline $5.90 per 100g (COUNTDOWN)
We bought 3 containers to make all the lip balms
5.90 x 3 = $18
-Vanilla and Peppermint extract $3 (PAKNSAVE)
-Plastic containers $20 (1, 2, 3 DOLLAR SHOP)
1 bag costs $2.50 for a pack of 4
We bought 8 bags for the lip balms
8 x 2.50 = $20
-String: $2 (1, 2, 3 DOLLAR SHOP)
The string we bought is enough for all the lipbalms
-Tags: $2 (1, 2, 3 DOLLAR SHOP)
The tags bought is enough to cover the amount of lip balms we’re making
- Paper bags: $2
Whole pack contains 35 bags,
-Advertising: $5
Total: $48 Cost per unit: $1.50
Selling price: $3 per lip balm
WHO BOUGHT WHAT:
GIANNE:
● 3 Containers of Vaseline;
$5.90 x 3 = $17.7 reimbursed
BENZ:
● 4 Packs of containers;
$2.50 x 4 = $10
● String: $2
● Tags: $2
● Paper bags: $2
$16 reimbursed
SUZY:
● 4 Packs of containers;
$2.50 x 4 = $10
● All other ingredients except for vaseline is is not needed to be purchased because
only small quantities of vanilla & peppermint extract is used. We bought 100%
petroleum jelly, vaseline is quite pricey but we bought and make our lip balm
knowing that it has many properties to heal skin & lips.
● Containers is a necessity since we need a suitable container to store our lip balm
in. The paper bags, tags, and string go towards our packaging and surprisingly
didn’t cost that much for how much we got.
$
$
$
Revenue
$100.6
Cost of Sales
$43.7
Gross Profit
Expenses
$56.9
Vaseline
$6.00
Plastic Containers
$20.00
String
$2.00
Tags
$2.00
Paper Bags
$2.00
Total Expense
$43.7
Net profit
$56.9
Worst Case
We sell nothing and go $40.00 in debt
Base Case
We sell 15 units and still break even at $45.00 getting $5.00 profit
Best Case
We sell all our units of 32 units and make $105.00 and surpass our break even point by
half.
Flavours- What are we selling:
Vanilla rose - USP= rose petals inside the balm, a usual lip balm don’t have real petals
inside the lip balm so ours is different and provide real rose fragrance.
Description:
Our vanilla base lip balm contains rose petals which is our own unique feature. This
lipbalm is clear so there is no pigment left on the lips, which is great if customers are
looking for more of a transparent lip balm. Rose petals contain high amounts of vitamin
C, a powerful antioxidant. Vitamin C helps protect our skin cells from the sun which is
good for our customers considering the hot sunny weather we get in New Zealand.
Mint Choc - USP= it’s like mint chocolate but in a lip balm form, it smells insanely
delicious and provides a cool sensation on the lips. It also provides a slight chocolate tint
on the lips.
Description:
Not only does it provide a cooling sensation on your lips, but the peppermint essential
helps to heal cracked lips. This lip balm works great for both wind-chapped and sunburnt
lips. This lipbalm is too hard to resist because of it’s delicious chocolate scent made from
natural cocoa powder.
Why should people buy our product?
Our lip balms are made with only natural and safe products. Ingredients such as coconut
oil and vaseline are safe on skin and provide many benefits. We plan to use a minimal
amount of ingredients for our lip balms so that we know we are not putting in too much
unnecessary ingredients. No artificial colouring will be put in our balms, we aim to use
natural products instead of products which contain other substances we don’t know
about. We want customers to think of our products as a beneficial product but just as
safe. Moisturized lips come from using the right products and our B B Balm’s certainly
live to that standard.
INGREDIENTS
Ingredients we already have:
-Coconut Oil
-Vasaline
-Vanilla and Peppermint extract
-Food colouring or natural coloring stuff like beetroot etc
Ingredients we need to buy:
Vaseline
Containers to store the lipbalm
Brown paper bags
Ingredients needed for Lip Balms that we’ll be making;
Vanilla Rose:
To make one1 tablespoon petroleum jelly
½ teaspoon coconut oil
½ teaspoon vanilla extract
A few rose petals (cleaned)
MINT CHOC:
To make one1 tablespoon petroleum jelly
½ teaspoon coconut oil
A drop of peppermint extract
1 teaspoon cocoa powder
Operations
- Production Process
Mint choc balm- to make one
1. First put 1 tablespoon of petroleum jelly into a small bowl,
2. Add in the cocoa powder into the mix, and stir well until everything is combined
3. Drop in the peppermint extract, 1 or 2 drops. Stir well again till well combined.
4. Place the mixture into your microwave, melt until it’s liquid consistency
5. Pour the melted mixture into the sterilised container, fill until full
6. Leave on the side to solidify.
Vanilla rose- to make one
1. Put the 1 tablespoon of petroleum jelly into a small bowl
2. Add 1 drop of vanilla extract into the vaseline, stir until well combined
3. Place into the microwave, melt until liquid consistency (2 minutes works best)
4. Place a few rose petals in the container, pour a bit of the mixture over
5. Add more rose petals to your liking, finish off with a bit more vaseline over
6. Leave to set, now you have your vanilla rose lip balm!
CASH HANDLING:
MONEY WE MADE IN TOTAL:
$100.60
COST OF MAKING THE LIP BALMS:
$43.70
PROFIT:
$56.90
In total we’ve made $100.6 dollars, the money gone into making the lip balms is $43.70.
If we subtract that amount from the total money we’ve made, that means we’ve made a
profit of $56.90 dollars. We’ve decided that it’d be fair that the money used to buy the
products will go back to the members who paid for those products. Gianne paid $17.70
dollars towards the vaseline we needed, Benz contributed $16 dollars for bags, tags and
strings. Suzy paid for half the amount of containers we needed, we means she paid $10
dollars towards the making of the lip balm. The $56.90 dollars of profit should be evenly
divided amongst group members. Each member gets exactly $11.38 from the profit we’ve
made. Since Benz, Gianne and Suzy paid for the products we needed to make the lip
balms they will get the money they paid for the products and evenly distributed profit.
HOW MONEY IS SHARED:
GIANNE: Gets $29.08
BENZ: Gets $27.38
SUZY: Gets $21.38
FELIPE: Gets $11.38
JUN: Gets $11.38
- Quality Control
We have tested all of our raw materials, packaging and labelling to assure that it stays
consistent. For the containers of the lip balms we made sure that they were clean and
sterilised to get rid of bacteria inside. The equipment we’ve used in the process to make
our lip balms are also cleaned thoroughly so our lip balms stay in good quality.
- Health and Safety
Our lip balms are definitely safe and will not cause any irritations to the lips unless
consumers have any allergies to any of the ingredients in the lip balms. Vaseline is a
product that takes care of the skin and cures chapped lips. The pure refined substance is
non toxic which means consumers won’t have to worry about our lip balms harming their
lips. The Vaseline jars we’ve purchase all have a 3x purified sticker which ensures us that
it’s safe for our customers lips. That’s why we decided Vaseline was a good choice to be
the base of our lip balm.
Feedback
Customer are excited and interested in the product because our product have a good
smell and look to it. Customers are impressed that we haven’t used any additives or
harmful products in our lip balms, the customers trust in our company develops since
they know what’s inside the product they’re buying. Customers enjoy the appealing look
of the vanilla rose lip balm and say that they would’ve paid more for this lip balm than
the chocolate mint lip balm. We’ve received a lot of great feedback from happy
customers which tells us that they’re satisfied with what they’ve bought, customers have
sent reviews on our facebook page telling us how well our product is working and that
they’ve never had a lip balm like ours before. Friends at school who’ve bought our product
have come up to us and told us that our lip balm works great on their lips and that they
love the flavours we’ve made. It’s great to see that our customers are using our lip balms
well and our lip balms have given them the satisfaction they’ve been looking for. We
believe B B BALM has accomplished our goals and has created an innovative lip balm that
customers will keep using and keep spreading the word about to others.
Contents Page
1. Executive Summary
- Mission Statement
- Aims and Objectives
- S.M.A.R.T Goals
- Timeline
2. Market Research
- Market Research proposal
- SWOT Analysis
- Marketing Mix
- Analysis of Competitors
- Community Context
3. Human Resources
- Organisational chart
- Group member attributes
- Key Stakeholders
- Methods of communication
4. Finance
- Sources of Finance
- Break Even Analysis
- Expected income statement
Jun Park
Felipe Almiron
Gianne Alim
Benz Pattanapanitchakul
Suzy Kim
5. Operations
- Production Process
- Quality Control
- Health and Safety
- Feedback
Executive Summary
B B BALM is all about making your lips a number 1 priority, we realise that your lips are an important part of your
body and we want to help you take care of them with our basic, all natural lip balms. Our lip balms are made with
only natural and safe products. Our main ingredient vaseline, it is safe on the skin and provides many positive
benefits for your lips to look the best they have yet. Our lip balms are all 100% chemical free and not animal
tested, which makes us a trusty partner ship business who cares about what our customers think.
What we learnt from our questionnaires was that we got more intel on what the consumers want and need from
our lip balms and packaging. This has given B B Balm an advantage to improve on the quality and packaging of
our lip balms to meet the needs and wants of our customers. What we learnt from our competitor analysis is that
What is so unique about our marketing mix is that we promote our business through our personal social
connections, our Facebook page Gianne and Suzy made helped us gain a lot of potential customers. Social media
is one of our strengths and we know our way around it which makes it easier for us to use our page the right way
so people know what we’re selling. How we will overcome our weaknesses and threats is that we have our own
suppliers who are Suzy, Benz and Gianne who will buy the ingredients and packaging that our business will need
for our lip balms. Since we had reliable suppliers it was easy for us to quickly get our materials and easily create
our product in time for pre sales and the market day. Another one of our weaknesses is that B B Balm is that we
are an unknown brand, but how we can overcome that is through the use of social media. B B Balm has created a
Facebook page to advertise our business and this is easier to target it to a more wider audience, since we’re a
business we definitely want our products to be out there in the public eyes. So we came up with the idea of
making samples of our products so customers could see if they liked our product and tell us their opinion about
our lip balm and see what we could do better. The samples lead consumers to spreading the word about our
product and more people became interested in our lip balms, the fact that consumers got to try a sample before
buying was very helpful because they got to know more about our products and see if they actually would use it in
the long term. Each of our group members chose in the beginning what position they think they would suit best,
Benz’s unique outer packaging ideas made our product look neat and professional. Most of our group members
are very enthusiastic and bring good ideas to the table, they focus a lot on what jobs they have to do and make
sure they finish it to it’s best standard. Our communication methods are very efficient for the group as the
methods we’ve used have been done with a lot of effort. Our posters, surveys and social media has been worked
on to the best we can make it which gives a good impression to possible consumers. Our group in the end made a
profit of $56.90, another benefit is that it is also more than we made more money than the money gone into
making the product. Our production process is unique because we make every lip balm with love and care, we
care about how our customers will think about our lip balms so we’ve made sure that every single step in our
procedure is not done messily. Another reason why we believe our production process is different is that we’ve
used only natural products in our balm, our survey gave us information that customers would rather buy a natural
lip balm than a lip balm containing hidden chemicals. We’ve listened and bought pure refined petroleum jelly
which is a quality product for the skin. Our code of conduct is important because it all outlines our main mission
and values of our business. B B Balm uses tikanga to help guide us along the way into attaining a successful and
reliable business. We don't run our business just for the sake of running it, our purpose is to create a lip balm that
is 100% natural, doesn’t include any hidden chemicals, that will moisturize our customer’s lips leaving them
nothing but satisfied with our product. Through using the concept of putake, B B Balm doesn’t make lip balms just
to fulfill our desire of getting profit, but we make them because we want customers to rely on our product
knowing it’s all natural and environmentally friendly.
Mission statement:
To save our clients lips from getting chapped with our moisturizing
and hydrating lip balms. Chapped lips is not an issue with our B B
BALM.
Mission and Objectives
Goals
1. We want customers to feel happy with the way their lips feel and look, our lip
balms will give them the satisfaction that they need.
2. Make a presentable product that is appealing and will catch interest among the
customers. Our lip balmzvs should stand out from the average lip balm customers
are use to.
3. To make sure our product is environmentally safe so that more people will buy it
knowing that we’ve made a lip balm that won’t harm customers lips and chemical free.
4. To make a profit of $30, and sell at least 10 tubs of our product, in the time given.
Timeline
START
DATE
ACTION
DEADLINE
PERSON
RESPONSIBLE
DATE COMPLETED
16/06
Executive summary
16/07/17
Gianne and
Suzy
Done
16/07/17
19/05
Marketing Mix
24/05
All
Done
16/06
Community Context
16/06
Suzy
Done
16/06
Break-even analysis
16/06
Jun
17/05
Mission statement
and final company
name
18/05
All
Done
5/05/17
17/05
Write up our goals,
at least 3
18/05
All
Done
19/05/17
Buy Ingredients and
Equipment for the
lip balms
02/06
Suzy, Gianne,
Benz
Done
18/05
Operations
20/05
Gianne and
Suzy
Done
18/05
SWOT Analysis
21/05
Felipe
Done
26/05
Survey and find out
research on our
target market
02/06
Gianne, Suzy,
Jun
Done
22/05
Analysis of
competitors
24/05
Suzy
Done
18/05
Communications and 21/05
Stakeholders sheet
Gianne
Done
18/05
Find costs for
making of the
lipbalm
19/05
Jun
Done
19/05/17
05/06
Packaging
12/06
Benz, Suzy,
Gianne and Jun
Done
05/06
Posters/Tags
14/06
Gianne and
Benz
Done
08/06
Group member
attributes
12/06
Suzy
Done
Feedback
Benz
Done
Cash Handling
Suzy
Done
MARKETING RESEARCH:
How would you improve it? - We asked this to see what customers believed would
make our product look better:
● ‘Add your own logo’
● ‘Add more colour’
● ‘It would look good if you placed the name of your brand somewhere on your
product’
● ‘Labels’
- Our competitors are our own classmates or anyone who is trying to catch the
attention of the customers away from us. Other groups are doing products such as
easy bake cookies in a jar with all the ingredients in a jar ready to be made, others
are doing candles/beauty products they are all simpletons. Our group has made
the genius breakthrough of Lip Balm it's easy and affordable. Because we are
selling a beauty product we can safely assume that the majority of our customers
would be women so a feminine approach would show the best outcome for more
sales.
- After debate amongst the group we have come to the consensus of $3.00, also
from results in our survey 38.50% would pay $3.00 for our product and 35.90%
would pay $3.50 for our lip balm. We provided a picture of our actual product so
customers know what we were selling and how much they would be getting. Since
more people would rather pay $3.00 we decided that customers believed that
$3.00 is the best price to sell our lip balms for.
- The packaging is really important to a lot of our customers, so we’ve decided to
improve ours. The survey made us change our minds and make a better packaging
in order to attract more customers, since most of the people we surveyed
prefered more of a classy look for our lip balms . We’ve come up with a natural
and clean packaging to aware our customers that we are a business who sells
natural, environment friendly lip balms.
Business Swot Analysis:
Strengths
● We are a group of people with very
good social skills that will help us
when selling our lip balms, since it’s
easier to get to know our customers
when selling. This is a good benefit for
us because of our social skills, we can
convince potential customers into
buying our lip balms, also making
them feel comfortable around our
group members.
● Our USP is very innovative yet simple.
This is an advantage for our business
because not all lip balm brands are
100% chemical free and all natural.
So customers knowing that we have
no hidden chemicals in our lip balms,
they will see that B B Balm is a
reliable business.
● We have social connections through
social media. We can contact our
friends very quickly, since we also are
familiar it benefits how we use our
social media to connect.
Weaknesses
● Lack of capital: None of us are making
our own money, so we won’t be able
to afford the ingredients and
packaging equipment with our own
money so we just rely on our parents
instead.
● B B Balm is a unknown brand. Nobody
knows about our business so it's going
to be very difficult to compete with
big brands such as Lush and Body
shop.
● Lack of knowledge on marketing, we
are new to this area and this is our
first business. We have a lot of things
to overcome as our first time working
together as a team.
How we will overcome this
● We have suppliers who are Benz, Suzy
and Gianne and they have decided to
help our business buy the ingredients
and the packaging equipment we
need for our lip balms.
● Social media is a huge influence and
targets the wide market, friends are
easy to connect with via social media.
● Our teacher, Mr Bass will help and
guide us a lot with skills on how to
run our business and notes on how to
handle our finances and production.
Opportunities
● Pre sales could help us make even
more money. By making early sales
we will ensure that we get to the
breakeven point.
● Social media is available for
promotion and that will help us
spread the word. We can be able to
promote our business through making
a Facebook page and we can easily
share it around to our friends and
family.
● Changing our customers tastes from
basic flavours such as strawberry and
mango, to new ones, like chocolate
mint and vanilla rose which is more
creative.
Threats
How we will overcome this
● We are a really small business
● Our USP is different and makes us
different from our competitors. We
working with a general product. We
will also promote our products to
have also lot of competitors in the
close friends and family so our
same area of business which is health
products become more known.
and beauty.
● Big brand competitors with the same
product such as Lush and Body Shop.
People tend to care more about how
famous the brand is more than the
quality of it.
●
Competitors in the room that are
targeting the same market. Every
● Though we aren’t as ‘big’ as already
existing skincare brands out there,
we will heavily promote our product
and rely on not making our products
using chemicals.
● We’ve promoted our products in many
ways and hopefully different to how
other business that targets the same
customers are a threat.
other groups in our class and the
others did. We’ve targeted mainly
customers who are interested in
buying something for their lips.
Marketing Mix
Product
B B Balm is the new face for lip balm and its quality and design will bring a new
competitor to the market. Our most unique selling point is that it’s 100% chemical free
and each batch is made from scratch. Our lip balm comes in two different simple
flavours, Chocolate Mint and Vanilla Rose. We kept our packaging as simple as possible
so that customers would feel attracted to the product not intimidated or confused by it.
The packaging of our lip balms is just a simple brown paper bag with the word “BALM”
stamped on the front. We fold the paper bags in how you fold a pamphlet and tie a tag
through a hole on the corner of the bag like shown below. Since our lip balm isn’t a big
product we thought that it’d be unnecessary if the packaging was huge compared to our
lip balm inside. The USP of our Vanilla Rose lip balm is the roses decorated inside our lip
balm. The rose pieces stand out and make the lip balm look very appealing. Our lip balm
containers may not have a very outstanding look but we’ve decided to go for a more
classy label with a ring around it in the colour that suits the certain flavour.
Price
Our lip balm product balm has been priced to be sold at $3.00. The reason why our price
is $3.00 is because each unit of lip balm cost $1.50 so by selling our product double the
cost we are already making back our money that we used to make the product from each
lip balm sold. In order to sell more units, we are selling 2 for $5. The customers see that
this as a very good deal and is a perfect opportunity to try both flavours we are offering.
This might seem like a profit loss, but in fact, is going to help us sell more units and
ensure we make profit. Our survey helped us choose this price for our lip balms, we didn’t
want to price too high or else no one would have bought it considering that our product
is homemade. Customers mainly said that they would pay $3.00 for our lip balms so
we’ve decided that it was a good price to sell our lip balms for.
Place
We use a direct channel to customers so that we can reach out to customers directly
because we have access to the customer’s needs easily. We will bring the product to
Botany Town Centre to sell so that we can increasing sales and make more profit also it
can make people know the product of brand we add. We are selling and distributing the
product in Facebook page, so that customers who want to purchase can be ordered from
online. Botany Town Centre is a very popular and busy area where many people come to
purchase products, the town offers food, clothes, entertainment which means customers
are offered the opportunity to buy what they need then are able to rest by eating or
enjoying provided entertainment. Since the market is huge there will already be many
customers around the town centre, this means a lot of advertisement isn’t really needed
to reach our target market. This is a benefit for our company therefore many customers
will be able to pass by our stand and see what we are selling. Traffic would be busy but
customers wouldn’t have a hard time trying to find a place to park considering how large
the area of Botany Town Centre is. Since we’re in a mall area it isn’t hard for potential
customers to notice us and come along to our stand to see what we’re selling.
Promotion
B B Balm uses four kinds of promotion strategies which are advertising, direct
marketing, sales promotion and personal selling. We advertise our business through the
use of our Facebook page because it targets a more wider audience and our lip balms can
be easily shared around through the use of media. We also advertise using posters so it
would be able to attract customer’s eyes, making them tempted to want to come and
visit our stall. B B Balm uses direct marketing such as email, because it only generates a
response from a specific audience. We made a customer survey and sent them to our
fellow Macleans students to find out what they thought about our lip balms and gave us
feedback on how we can improve it which helped a lot. We made a customer survey so
we would be able to measure the results from it to calculate a break-even point. It also
made our business kind of known around Macleans. B B Balms made pre-sales through
the use of Facebook and Word of mouth for our targeted audience which are Macleans
students, so we would be able to make more profit before our only selling day, and also to
target more potential customers to buy our lip balms. Personal selling is a promotion
strategy we use because one of our group’s strengths is that we have good social skills
and are able to convince potential customers to buy our lip balms. We also do this so we
could talk to customers more about our lip balms, what the ingredients are, what the
main purpose of our business is and why they should buy it, etc.
Analysis of Competitors
Our group is selling a cosmetic product, the other students in their own groups are
selling products such as face scrubs, Instant cookies and candles. Even though our
competitors are not selling lip balm we are still competing against them for profit and
customers.
LUSH
Lush is a very popular skincare company, founded in November 12, 1995 in England. They
sell various fresh handmade cosmetics, ranging from makeup, body, face, hair, perfume
products. What makes Lush different is that all their products are only made using
vegetarian and vegan recipes. Lush products are 100% vegetarian, they label this on
their products so customers are aware of what they’re buying. Their products are also
palm oil free, and they have made sure to get rid of any palm oil traces. Lush’s most
popular sold out product is their handmade bath bombs that range in many vibrant
colours. Lush reaches out to their customers with their own website, customers can
easily see the whole range of products that they’ve made. Lush has created their own
social media pages which helps them reach out to their younger target market. Lush’s
most expensive lip balms are sold for $14.90, these tubs contain 12g worth of lip balm.
Lush only uses natural ingredients and safe synthetics in the lip balms they’ve made.
Lush’s most expensive lip balm is a bit more affordable than The Body Shop and also list
out all ingredients they’ve used in the lip balms, they all put a tab saying how their
products are cruelty free and buy from only suppliers who do not test on animals.
THE BODY SHOP
The British cosmetic company was found in 26th of March 1976. The cosmetics company
has a range of 1,000 different products for the skin and body. The Body Shop is very
much against animal-testing and has campaigned to end animal testing in cosmetics.
They certify their products with the leaping bunny from ‘Cruelty Free International’ this
proves that their products are cruelty-free and ensures customers that ingredients are
not tested by its suppliers. The Body Shop insists that their products are ‘inspired by
nature’ and are a certified organic skin care line. The Body Shop sells their lip balms at a
quite expensive price, but at the same time we must consider the expenses that go
towards their organic ingredients used in their lip balms. Their most expensive lip balm is
their “wild argan oil solid oil lips” lip balm that is priced at $22.95, this lip balm contains
only 20mLs of the product and contains argan oil that has been community traded from
Morocco. Most 10mL lip balms from Body Shop are priced for $10.95 which is $7.95
more expensive than our product. These lip balms have a shelf life of up to 12 months,
but the company has gotten reviews about how their lip balms have made customers lip
dry out even though the product was meant to serve it’s purpose to care for the lips. But
many customers are happy with the condition these lip balms are in and very satisfied
with how long their shelf life is and the great scents they provide.
COMMUNITY CONTEXT
Our B B Balms are chemical free and only contain natural ingredients that we’ve tested
on our own skin so consumers know our lip balms are safe to use on their skin. Our lip
balm base ‘Vaseline’ is 100% pure refined petroleum jelly that is non-toxic. This means if
our product was left to rot it would not harm any animals but cause a small stool.
Customers can definitely expect a safe, non irritating lip balm that smells and feels good.
We are also aware about some customers who may have allergies to ingredients in our
product so we’ve made sure when doing pre sales we tell our customers what’s exactly in
our balms. On market day we had tags saying what each of our lip balms contained so
customers could directly see. A lot of lip balms in cosmetic stores are priced at very high
prices, what makes us different is that we’ve asked possible customers how much they
would pay for our lip balm, this has helped us to come up with an affordable price which
we and our customers believe is suitable for our lip balm.
HOW IT AFFECTS THE COMMUNITY
Do you know the saying, “Reduce, Reuse, Recycle”?. Well our company 100% believes
that these three steps can make a huge change towards the environment. After
customers use up all the lip balm in the containers, customers can easily clean out the
residue and reuse the container instead of just throwing a useful container away.
Whether what use customers reuse the container for, our company wants our customers
to learn to recycle and realise how their small action can make a huge difference.
HUMAN RESOURCES
Contributions towards the business
CEO/Finance Jun Park
In the beginning of this assessment our group came to a decision that Jun would be our
CEO for B B Balm. Jun has good leadership skills and knows when our group should be on
task to get our work done on time. Jun is also confident at maths which is a benefit for
our business since he is able to work on our finances and break-even analysis. Jun’s main
job in our business is making major decisions, e.g In the beginning of this assignment we
had a big decision whether to create soap or lip balm, as the CEO Jun decided that it
would be better to make lip balm than soap with convincing reasons for our whole group
to agree on. Jun has worked on the Product section for our 4p’s, he has also written up
our market research based from our survey results.
Sales: Felipe Almiron
Felipe took on the role of handling the sales for our business, for sales we require
someone who promote and sell our product. Felipe is a very good speaker and is able to
promote our product to possible customers and friends. Felipe has been helping our
group a lot and has found out research about our target market from face to face surveys
which helps our groups to get specific information about our product. Felipe has worked
on our SWOT analysis, that analyses our business’s key strengths, weaknesses,
opportunities and threats. Felipe speaking out about our product has helped target the
students in Macleans to purchase our products.
Communications: Gianne Alim
Gianne controls our communications which is a very important role in our business.
Gianne has worked on the stakeholders and communications sheet, she has outlined key
stakeholders. Our survey and posters were made by help from Gianne, she has a creative
mind and knows how to represent our brand. Gianne has also worked on our Promotion
for our 4p’s, this helps our group know what promotion methods we can use for our
business. Our internal and external communication methods were written up by Gianne,
our communication methods are helpful because, it helps us connect with our customers
and widely promote our lip balms. Gianne has helped by buying the sole ingredient for
our lip balm, and has designed the layout of our promotions also contributed with our
Facebook page for B B Balm. Gianne has written up the executive summary together with
Suzy as well.
Productions Manager: Benz Pattanapanitchakul
Benz controls the productions, and the overall concept of our lipbalms. Benz is a very
talented artist and has sketched many possible logos and product designs. Benz has
focused on our packaging for our product and has found ideas that would be suitable for
our lip balms. Benz has worked on our Place for our 4p’s, she has thought of which
channel would be most suitable for our company. Benz has bought products for our
packaging and came up with the idea of having tags and the overall design layout of our
packaging.
Human Resources: Suzy Kim
Suzy organizes jobs everyone in our group handles, as HR she has made sure our health
and safety of our products is up to standards. We are aware that customers will be wary
of the product coming into contact with their skin, so Suzy has sterilised all equipment
we’ve used in the process of making our lipbalms. Suzy contributed with the making of
our product since she has made all the lip balms for our group to sell. Suzy thought up of
the recipe we’d use to make our lip balms, Suzy’s worked on the Facebook page we have
for B B Balm, and made sure the page got out there and we brought customers in. The
analysis of competitors have been found out and written down by Suzy. She and Gianne
have worked together to complete the executive summary.
Key Stakeholders
Internal stakeholders
- Employees
Our group members are very important to B B Balm because we all work together as a
team and make sure we create the best lip balm for our consumers. We all have our own
strengths that help the group succeed well. We’re a positive bunch of students who work
well together and are not afraid to contribute in group discussions and speak up if we
don’t agree with any ideas.
- Suppliers
Our suppliers, Suzy, Benz and Gianne are important to our business because they have
bought all the products we need to for the making of the lip balms to be possible. Our
parents have helped a lot and has supported our journey of making the lip balm,
Countdown, Daiso, Pak'nsave and the 1, 2, 3 dollar store were main stores where we
bought the materials for our products from. They have provided all the right equipment
we needed to make our balms.
External Stakeholders
- Mr Bass
Mr Bass is very important to BB Balm because he has a lot of knowledge towards running
a successful business. He can guide us to making our business run smoothly, supporting
us with good information. Mr Bass knows when our group is struggling so he makes sure
we know that we’ve got to be on track.
- Customers
The purpose of a business is to create customers. Without our customers, B B Balm won’t
be able to make any profit and living up to customers needs is what comes first. How we
will be able to satisfy their needs is by creating a lip balm that will provide a cooling
sensation to their lips, leaving them nothing but contented with the quality of our lip
balms.
Methods of Communication
Internal
- Group Meetings
Group meetings is a good internal communication method because it units our group and
it is a good time for our members to have open minds and share their opinions on how we
can make, create and improve our lip balms. This method will help B B Balm run more
efficiently and achieve our goal of developing a well presented product to appeal to our
customers. With holding group meetings it helps us to combine our ideas together to
make a lip balm that not only hydrates our customer’s lips but made with good intentions
for the environment.
External
- Face to face communication
Face to face communication is a good method because it allows us better social
opportunities to associate with our potential customers. Making them feel more
comfortable towards us and our business. This method will help run BB Balm more
efficiently and achieve our goal of making our customers feel satisfied and happy with
our lip balms because a way to make customers happy with a product is to create a
genuine bond with them and also to make them feel comfortable enough with our
employees to be willing enough to buy our lip balms.
- Facebook
Facebook is a great method of communication because we can advertise BB Balm to
more potential customers and get friends and family to support us by liking our business
page and engaging with our posts. This method will help run BB Balm more efficiently
and achieve our goal of developing a lip balm that will catch customer’s interest.
Facebook helps us to achieve this goal because our business page can easily spread
around online by our friends and family sharing it with their mutual friends, and the
exposure of BB Balm will rapidly increase. Our group has created a public survey on
Facebook to stay in touch with potential customers on social media and get quick
responses at any time. We’ve gained many interested customers and made sure we
uploaded pictures of our lip balms so people some source of reference to what our lip
balms looked like. Our social media gained over 70 likes in only 2 days.
- Email Marketing
Email marketing is a good method of communication because we can be able to reach out
and target as many potential customers as we can. Also it is directed to a specific
audience and our audience is our fellow Macleans students. This method of
communication will be able to run BB Balm more efficiently and achieve our goal of
catching our customer’s interest. Email marketing helps us to achieve this goal because
Macleans students are one of our main target markets and it is a lot easier to reach out
to them because of their student emails. Also they can be able to tell their other
classmates about our business through word of mouth, spreading our business to a more
wider audience.
This is our customer survey :
https://docs.google.com/a/student.macleans.school.nz/forms/d/1vcGIH0LuOU3M0njfvxc
_mn0lXVBq5yOuvc_HB04MFgQ/edit
- Posters
Advertising posters on market day is a good method of communication because potential
customers around the local area can be able to see the posters and will most likely be
tempted and curious to come visit our stall. This method will help run BB Balm more
efficiently and achieve our goal of catching our
customer’s interest with our lip balms. This will help
achieve that goal because a poster that attracts
people’s eyes will lead them to want to see what our
lip balms will look like and will be interested enough
to buy them.
Finance
Costs and finance for
-Vaseline $5.90 per 100g (COUNTDOWN)
We bought 3 containers to make all the lip balms
5.90 x 3 = $18
-Vanilla and Peppermint extract $3 (PAKNSAVE)
-Plastic containers $20 (1, 2, 3 DOLLAR SHOP)
1 bag costs $2.50 for a pack of 4
We bought 8 bags for the lip balms
8 x 2.50 = $20
-String: $2 (1, 2, 3 DOLLAR SHOP)
The string we bought is enough for all the lipbalms
-Tags: $2 (1, 2, 3 DOLLAR SHOP)
The tags bought is enough to cover the amount of lip balms we’re making
- Paper bags: $2
Whole pack contains 35 bags,
-Advertising: $5
Total: $48 Cost per unit: $1.50
Selling price: $3 per lip balm
WHO BOUGHT WHAT:
GIANNE:
● 3 Containers of Vaseline;
$5.90 x 3 = $17.7 reimbursed
BENZ:
● 4 Packs of containers;
$2.50 x 4 = $10
● String: $2
● Tags: $2
● Paper bags: $2
$16 reimbursed
SUZY:
● 4 Packs of containers;
$2.50 x 4 = $10
● All other ingredients except for vaseline is is not needed to be purchased because
only small quantities of vanilla & peppermint extract is used. We bought 100%
petroleum jelly, vaseline is quite pricey but we bought and make our lip balm
knowing that it has many properties to heal skin & lips.
● Containers is a necessity since we need a suitable container to store our lip balm
in. The paper bags, tags, and string go towards our packaging and surprisingly
didn’t cost that much for how much we got.
$
$
$
Revenue
$100.6
Cost of Sales
$43.7
Gross Profit
Expenses
$56.9
Vaseline
$6.00
Plastic Containers
$20.00
String
$2.00
Tags
$2.00
Paper Bags
$2.00
Total Expense
$43.7
Net profit
$56.9
Worst Case
We sell nothing and go $40.00 in debt
Base Case
We sell 15 units and still break even at $45.00 getting $5.00 profit
Best Case
We sell all our units of 32 units and make $105.00 and surpass our break even point by
half.
Flavours- What are we selling:
Vanilla rose - USP= rose petals inside the balm, a usual lip balm don’t have real petals
inside the lip balm so ours is different and provide real rose fragrance.
Description:
Our vanilla base lip balm contains rose petals which is our own unique feature. This
lipbalm is clear so there is no pigment left on the lips, which is great if customers are
looking for more of a transparent lip balm. Rose petals contain high amounts of vitamin
C, a powerful antioxidant. Vitamin C helps protect our skin cells from the sun which is
good for our customers considering the hot sunny weather we get in New Zealand.
Mint Choc - USP= it’s like mint chocolate but in a lip balm form, it smells insanely
delicious and provides a cool sensation on the lips. It also provides a slight chocolate tint
on the lips.
Description:
Not only does it provide a cooling sensation on your lips, but the peppermint essential
helps to heal cracked lips. This lip balm works great for both wind-chapped and sunburnt
lips. This lipbalm is too hard to resist because of it’s delicious chocolate scent made from
natural cocoa powder.
Why should people buy our product?
Our lip balms are made with only natural and safe products. Ingredients such as coconut
oil and vaseline are safe on skin and provide many benefits. We plan to use a minimal
amount of ingredients for our lip balms so that we know we are not putting in too much
unnecessary ingredients. No artificial colouring will be put in our balms, we aim to use
natural products instead of products which contain other substances we don’t know
about. We want customers to think of our products as a beneficial product but just as
safe. Moisturized lips come from using the right products and our B B Balm’s certainly
live to that standard.
INGREDIENTS
Ingredients we already have:
-Coconut Oil
-Vasaline
-Vanilla and Peppermint extract
-Food colouring or natural coloring stuff like beetroot etc
Ingredients we need to buy:
Vaseline
Containers to store the lipbalm
Brown paper bags
Ingredients needed for Lip Balms that we’ll be making;
Vanilla Rose:
To make one1 tablespoon petroleum jelly
½ teaspoon coconut oil
½ teaspoon vanilla extract
A few rose petals (cleaned)
MINT CHOC:
To make one1 tablespoon petroleum jelly
½ teaspoon coconut oil
A drop of peppermint extract
1 teaspoon cocoa powder
Operations
- Production Process
Mint choc balm- to make one
1. First put 1 tablespoon of petroleum jelly into a small bowl,
2. Add in the cocoa powder into the mix, and stir well until everything is combined
3. Drop in the peppermint extract, 1 or 2 drops. Stir well again till well combined.
4. Place the mixture into your microwave, melt until it’s liquid consistency
5. Pour the melted mixture into the sterilised container, fill until full
6. Leave on the side to solidify.
Vanilla rose- to make one
1. Put the 1 tablespoon of petroleum jelly into a small bowl
2. Add 1 drop of vanilla extract into the vaseline, stir until well combined
3. Place into the microwave, melt until liquid consistency (2 minutes works best)
4. Place a few rose petals in the container, pour a bit of the mixture over
5. Add more rose petals to your liking, finish off with a bit more vaseline over
6. Leave to set, now you have your vanilla rose lip balm!
CASH HANDLING:
MONEY WE MADE IN TOTAL:
$100.60
COST OF MAKING THE LIP BALMS:
$43.70
PROFIT:
$56.90
In total we’ve made $100.6 dollars, the money gone into making the lip balms is $43.70.
If we subtract that amount from the total money we’ve made, that means we’ve made a
profit of $56.90 dollars. We’ve decided that it’d be fair that the money used to buy the
products will go back to the members who paid for those products. Gianne paid $17.70
dollars towards the vaseline we needed, Benz contributed $16 dollars for bags, tags and
strings. Suzy paid for half the amount of containers we needed, we means she paid $10
dollars towards the making of the lip balm. The $56.90 dollars of profit should be evenly
divided amongst group members. Each member gets exactly $11.38 from the profit we’ve
made. Since Benz, Gianne and Suzy paid for the products we needed to make the lip
balms they will get the money they paid for the products and evenly distributed profit.
HOW MONEY IS SHARED:
GIANNE: Gets $29.08
BENZ: Gets $27.38
SUZY: Gets $21.38
FELIPE: Gets $11.38
JUN: Gets $11.38
- Quality Control
We have tested all of our raw materials, packaging and labelling to assure that it stays
consistent. For the containers of the lip balms we made sure that they were clean and
sterilised to get rid of bacteria inside. The equipment we’ve used in the process to make
our lip balms are also cleaned thoroughly so our lip balms stay in good quality.
- Health and Safety
Our lip balms are definitely safe and will not cause any irritations to the lips unless
consumers have any allergies to any of the ingredients in the lip balms. Vaseline is a
product that takes care of the skin and cures chapped lips. The pure refined substance is
non toxic which means consumers won’t have to worry about our lip balms harming their
lips. The Vaseline jars we’ve purchase all have a 3x purified sticker which ensures us that
it’s safe for our customers lips. That’s why we decided Vaseline was a good choice to be
the base of our lip balm.
Feedback
Customer are excited and interested in the product because our product have a good
smell and look to it. Customers are impressed that we haven’t used any additives or
harmful products in our lip balms, the customers trust in our company develops since
they know what’s inside the product they’re buying. Customers enjoy the appealing look
of the vanilla rose lip balm and say that they would’ve paid more for this lip balm than
the chocolate mint lip balm. We’ve received a lot of great feedback from happy
customers which tells us that they’re satisfied with what they’ve bought, customers have
sent reviews on our facebook page telling us how well our product is working and that
they’ve never had a lip balm like ours before. Friends at school who’ve bought our product
have come up to us and told us that our lip balm works great on their lips and that they
love the flavours we’ve made. It’s great to see that our customers are using our lip balms
well and our lip balms have given them the satisfaction they’ve been looking for. We
believe B B BALM has accomplished our goals and has created an innovative lip balm that
customers will keep using and keep spreading the word about to others.