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Business Report

The Perfume Room is a proposed new business that will allow customers to create custom perfumes by selecting fragrances and essences. It will be located in a shopping center and aims to generate revenue through perfume sales. The business plans to use a sole proprietor legal structure and have goals such as developing a niche market and achieving sales targets. It will require startup capital, employees, and marketing to attract and retain customers.

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Sarah M
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20 views2 pages

Business Report

The Perfume Room is a proposed new business that will allow customers to create custom perfumes by selecting fragrances and essences. It will be located in a shopping center and aims to generate revenue through perfume sales. The business plans to use a sole proprietor legal structure and have goals such as developing a niche market and achieving sales targets. It will require startup capital, employees, and marketing to attract and retain customers.

Uploaded by

Sarah M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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I-Perfume is a liquid combination that creates an enjoyable fragrance, enhancing moods within individuals.

It
consists of fragrant essential oils made of herbs, spices and natural aromas. “The perfume room” is the next
innovation in how people express themselves through scent. It Enables customers to enter a world of
fragrances+essence that offer mixtures of smells for any mood as well as provide customers with the freedom
of making their custom perfumes. TPR is a new business proposing to set-up an establishment in Macarthur
square, Campbelltown that will generate revenue by selling women’s, men’s, and children’s Perfume. The target
market is women between the ages 20-50 as research has shown women 30-45 yrs old are responsible for 80%
of the total perfume and fragrance purchases. Many factors influence this business plan as a variety of issues
must be considered such as legal structure, business goals, operation plans, financial and marketing strategies,
and overall the benefits TPR brings to Macarthur shopping centre.P1- As TPR business is managed and run by
a single entity, the sole proprietorship is the better choice for legal structure since it is straightforward to create,
less costly to operate and the only legal requirement is that the business name is licenced. Being a sole trader
entitles the investor to direct responsibility for the operation of the business, as well as the ability to provide
funding and make decisions.P2- TPR's vision is to interact with consumers to create personalised, unique, and
one-of-a-kind perfumes of the highest quality, ensuring that every customer has an enjoyable and fulfilled
experience. The business also wishes to provide a wide range of fragrances of the excellent materials within
reasonable pricing. The overarching vision of the company is to build a business by working in customer
service, achieving best outcomes, believing, inspiring, and meeting targets efficiently.P3-The three main
business goals TPR aims to fulfill are; to develop a herbal cosmetic niche market, ultimately produce turnover
of 1mil in annual sales, and retain 30% of it's gross margin. Increasing sales is one way to maximise earnings.
This can be accomplished by lowering the price of perfumes, attracting more buyers, and boosting sales. TPR
may seek to improve revenue and earnings through gaining consumer satisfaction through discounts and
rewards that are consistently promoted by a well-targeted marketing campaign, or through creating more new
goods or offering quality services. This would also achieve the aim of bettering social relations. The company
can be extended by creating an online platform to raise visibility. Each of these business goals are
interdependent and can be accomplished through an efficient management approach.P5- Operation
management must proceed in order to produce and supply the perfumes. This relates to the manufacturing
process. In the case of TPR, crucial steps must be taken before launching the business. The first step to secure
the supply chain for both branded products as well as acquire all of the ingredients needed to create fragrances,
such as a variety of essential oils, botanical extracts, spices, herbs, natural alcohol, and so on. However, the
scent can be dynamically monevered according to the customer's preferences, providing them with an enjoyable
experience as well as a customised scent that expresses themselves. P6- Marketing campaigns are important for
attracting consumers in order to retain them. Online advertising such as developing an exclusive website for the
business and having it promoted via popular search engines to spread the news about TPR. Another approach is
utilising social media platforms in addition to pamphlets and local newspapers. Businesses that use this
approach base their marketing decisionmaking on the expectations of consumers. Implementing this approach
would focus on building a status throughout the community. P7- Finance explains how a business funds its
operations. To be able to fund for starting the business, a loan from the bank is necessary to establish the
business. It can be paid off when the sales of the business rise and the cash inflows are consistent. The overall
capital of this business is 500k. 50% of the capital investment is planned to be obtained from the lenders at a
competitive commercial loan rate as it will be required to pay for equipment and resources in order for the
business to keep running. The subdivision of this capital is as follows; 100k towards shop rental and design,
200k for branded perfumes, 50k towards ingredients, 50k towards promotion/marketing, and 100k for operation
in the first year, including the personnel. P8- The work environment must be considered for the company to run
smoothly. In order for TPR to function effectively, it is planned to have at least one experienced staff member,
in addition to the store owner, must be employed on a full-time basis. Communicating with other employees
and clients would maintain positive interactions and a joyful and happy workplace.P9- Sales are expected to
increase as a result of TPR's innovative concept. It is forecasted that 700kwill be produced in the first year of
service, with a % profit margin. A % growth rate will be projected in the following years. Following TPR's
sales and popularity, new competitors are likely. If earnings remain consistent, the loan may be paid off in a
year or two.P10- In this modern time, shopping centres r becoming a social hub of a variety of goods+services
in one area. Because of the numerous attractions and shops available at the mall, rivalry will be generated, and
the shopping centre will not be empty. Overall, the unique idea of TPR is expected to contribute to the
economic and social prosperity of Macarthur square as well as give consumers freedom to express themselves
through scent in a pleasurable and memorable way.
P4- A situational analysis is a collection of techniques that managers may use to analyse a company's
internal and external environments. To analyse, the SWOT approach can be used. TPR's strengths are
that the business provides well-known perfumes as well as produces pleasant and flavourful fragrances
based on consumer preferences, leaving little space for customer complaints. The company offers a
unique feature not found in any other vendor in the industry, enticing consumers to try out the new
experience of buying perfume. Consequently, weaknesses are due to strengths and the main weakness
is that TPR is a new SME, which raises the risk of failure. To remain successful, perfumes have to
retain the same standard and quality in order to ensure the best results on customer loyalty; however,
ensuring quality consistency can often be difficult to compete in the industry. Starting TPR would
cause opportunities to show themselves. Opening more franchises and expanding the enterprise in
different areas to increase profits is a significant opportunity, as is supplying the industry with the
opportunity to invent fresh natural unique scents. Threats to the business comes from traditional long
established businesses in the market such as David Jones+chemist warehouse. However, David Jones
is a well-known brand usually overpriced products targeting the wealthier community, whereas
Chemist warehouses sell low range branded and unbranded perfumes. Nevertheless, TPR targets the
majority of middle class consumers by providing reasonable prices for good quality perfumes.

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