Project Report

of

Submitted in partial fulfillment of the requirements of the Semester VI

Subject of

Technopreneurship

Submitted by
Hammad Younas
Ezzah Mansoor
Mehkan Shafique
Fiza Zafar
Fiza Mehmood
Aiman Niaz

Subject In-charge

Sir Saad Ur Rehman

Department of Computer Science & IT

Superior University, Rahim Yar Khan

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 Acknowledgement
We express our deepest gratitude to Allah Almighty for granting us the strength, knowledge, and
capability to accomplish this endeavor. His blessings have been more than sufficient to guide us
throughout this journey, providing us with perseverance and insight whenever challenges arose.

Our heartfelt thanks go to our respected head, Dr. Saad Ur Rehman, whose constant
encouragement, patience, and invaluable guidance were instrumental in guiding this project to
fruition. Dr. Saad's supportive leadership and insightful feedback have been a beacon, motivating
us to put forth our best effort. We extend our sincere appreciation to our dedicated team
members, whose hard work and commitment have been pivotal in transforming this vision into
reality.

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 Declaration
This declaration affirms our commitment to originality and integrity in developing our project,
which centers on the creation and distribution of organic hair care products, including hair oil,
serum, and shampoo. We assure that this initiative is born out of our unique efforts and creativity,
and it has not been previously submitted to any institution.

In undertaking this project, we acknowledge the importance of adhering to ethical standards and
regulations governing business practices.

We are committed to advancing the field of organic hair care through innovative and responsible
business practices. By ensuring our project's originality, we aim to contribute positively to the
industry while upholding the values of honesty and integrity.

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 Problem statement

The excessive use of chemical-based personal care products has led to a surge in hair-related
problems. Many people experience issues such as hair thinning, scalp irritation, dandruff, and
premature graying, all of which can be attributed to the harsh ingredients found in many
shampoos, conditioners, and styling products. Chemicals like sulfates, parabens, and artificial
fragrances often strip the hair of its natural oils, leading to dryness and breakage.

Furthermore, these substances can irritate the scalp, causing discomfort and sometimes even
allergic reactions. Over time, the accumulation of such chemicals can weaken hair follicles,
contributing to increased hair fall and inhibited hair growth. Additionally, the environmental impact
of these products is a growing concern, as many chemical compounds contribute to pollution and
are harmful to aquatic life when washed away.

This situation underscores the need for careful consideration of the ingredients in our hair care
routines, as the long-term health of our hair and environment can be significantly affected.

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Contents

Executive Summary 07

1- Introduction 08

1.1 Brand Name 09

1.2 Location 09
1.3 Slogan 09
1.4 Vision 10
1.5 Mission 10
1.6 Objectives 10
2- Market Analysis 11

2.1 Competitive Analysis 13

2.1.1 Saeed Ghani 13

2.1.2 Rivaj Mahal 13
2.2 5C’s of Business 14
2.2.1 Company 14
2.2.2 Customer 14
2.2.3 Collaborators 15

2.2.4 Competitors 15
2.2.5 Climate 15
2.3 Swot Analysis 16
2.3.1 Strengths 16
2.3.2 Weakness 16
2.3.3 Opportunities 16
2.3.4 Threats 17

2.4 Pestle Analysis 18

2.4.1 Political 18
2.4.2 Economic 18
2.4.3 Social 18
2.4.4 Technological 19
2.4.5 Environmental 19

2.4.6 Legal 19

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2.5 Poster’s Five Forces Model 20
2.5.1 Competitive Rivalry 20
2.5.2 Threats of New Entrants 20
2.5.3 Bargaining Power of Suppliers 20
2.5.4 Bargaining Power of Buyers 20
2.5.5 Threats of Substitutes 21
3- Management Hierarchy 22
3.1 Management Team 22
4- Marketing Mix 24
4.1.1 Product 24
4.1.2 Price 24
4.1.3 Place 25
4.1.4 Promotion 25
4.2 Customer Segmentation 26
4.2.1 Demographic Segmentation 26
4.2.2 Psychographic Segmentation 26
4.2.3 Behavioral Segmentation 27
4.3 Logistics and Operational Plan for Organic Hair Care Products 28
4.3.1 Production Plan 28
4.3.2 Inventory Management 29
4.3.3 Distributing Plan 29
4.3.4 Order Fulfillment 30
4.3.5 Operational Team 30
4.3.6 Technological and Automation 31
5- Financial Plan 32
5.1 Start-up Capital 32
5.1.1 Working Capital 32
5.1.2 Start-up Capital 33
5.1.3 Source of Finance 33
5.2 Prospected Financial Statements 33
5.3 Financial Attractiveness 37
6- Conclusion 38
7- References 39

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 Executive Summary
To achieve our mission, we prioritize sourcing the finest organic ingredients from reputable
suppliers who share our commitment to sustainability and ethical practices. Our hair oil, shampoo,
and serum are crafted to retain the natural properties and benefits of each ingredient, ensuring
that our customers receive products with maximum effectiveness. By avoiding synthetic additives
and preservatives, we maintain the purity and integrity of our formulations.

Furthermore, we plan to incorporate eco-friendly packaging solutions to minimize our

environmental impact and align with the values of our environmentally conscious consumer base.
Our marketing strategy emphasizes transparency, allowing customers to make informed choices
about the products they use. We engage with our audience through educational content,
highlighting the advantages of a natural lifestyle and the importance of prioritizing wellness.

As part of our growth plan, we aim to expand our product line to include more diverse herbal
solutions and enter new markets, both domestically and internationally. We will continuously
adapt to emerging trends and customer feedback, ensuring that we remain at the forefront of the
organic wellness industry. By fostering a strong community around our brand, we aim to inspire
others to embrace healthier, sustainable living.

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 1. Introduction
In today's fast-paced world, there is a growing awareness of the importance of embracing natural
beauty and making environmentally conscious choices. The journey towards self-acceptance and
eco-friendly living often begins with the small, everyday choices we make, such as the products we
use in our daily haircare routines. Our mission is to offer high-quality 100% organic hair care
products designed to nourish, protect, and enhance your natural hair. By focusing on the synergy
between nature and science, we ensure that every ingredient is sourced responsibly and crafted
with care.

Our products are more than just solutions for hair care; they are a commitment to fostering
confidence and self-love among individuals who wish to celebrate their unique natural beauty.
Each formulation is tailored to provide your hair with the essential nutrients and protection it
deserves while ensuring minimal impact on our planet. By choosing organic options that eschew
harmful chemicals, consumers can feel good about not only the health and vitality of their hair.

Furthermore, we believe in the transformative power of conscientious choices. Not only do our
products promote the best version of your natural hair, but they also support sustainable practices
that benefit the earth. Our dedication to environmental sustainability goes beyond our products;
it is a core value that permeates every aspect of our business, from eco-friendly packaging to
ethical sourcing methods.

Ultimately, our 100% organic hair care range encourages individuals to embrace their natural
beauty with confidence, knowing that their choices are positively impacting the planet. Together,
we can inspire a movement that values authenticity, health, and sustainability, empowering
everyone to walk their unique path with pride.

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1.1 Brand Name:
Organic shine

1.2 Logo:

1.3 Slogan:
“Glow Naturally, Shine Beautifully”

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1.4 Vision
The vision to lead in the herbal beauty industry with 100% organic and chemical-free products is
both ambitious and inspiring. In an age where consumers are increasingly conscious of what they
apply to their skin, emphasizing natural and safe alternatives is a timely mission. This vision not
only reflects a commitment to individual health and wellness but also resonates with the broader
movement towards sustainable and environmentally friendly living.

1.5 Mission
Our mission is centered around offering premium, 100% organic hair care products designed to
nourish, protect, and enhance the natural beauty of hair. We are committed to empowering
individuals to embrace their unique hair textures and styles, promoting confidence and
authenticity in personal expression. Our products are not only dedicated to maintaining the health
and vitality of natural hair but are also developed with environmental sustainability in mind. By
using organic ingredients and eco-friendly practices, we aim to contribute positively to the health
of our planet. Our dedication to quality and sustainability ensures that our customers can enjoy
exceptional hair care while supporting a greener, more ethical world.

1.6 Objectives
• To create a trusted brand that delivers effective, organic hair care solutions.

• Educate customers about the benefits of organic products.

• Promote sustainability through eco-friendly packaging and ethical sourcing.

• Build a loyal customer base through transparency and quality.

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 2. Marketing Analysis
Here is a market analysis of organic shine (Glow Naturally, Shine Beautifully!) and how organic shine
can capitalize on it: We did some surveys in the market they are listed below:

Here is a market analysis of organic Shine

The survey results from Rahim Yar Khan underscore a promising opportunity for our organic hair
care line. With 70.5% of respondents expressing a willingness to switch to 100% organic and eco-
friendly products, there is a clear demand for natural hair care solutions in the area. The additional
18.2% of participants who responded “Maybe” further expand the potential market, as they might
be persuaded with adequate product trials and information on the benefits of going natural.

Our product line, comprising herbal hair oil, serum, and shampoo, is well-positioned to tap into
this enthusiasm for sustainable alternatives, especially as more people become conscious of
environmental and health impacts. In light of these insights, it will be essential to focus on ensuring
that our products are not only effective but also made with high-quality herbal ingredients.
Attention to eco-friendly packaging will enhance our appeal to eco-conscious consumers who are
likely drawn not only to the health benefits but also to the environmental ethics of the products
they choose.

Moreover, implementing an effective marketing strategy that highlights the benefits of natural
ingredients and sustainable practices could be instrumental in converting those who are
considering a switch to organic options. Through education and awareness campaigns, we can
engage with the local population and build trust in our brand.

By aligning our products with local preferences and values, we can establish a strong market
presence in Rahim Yar Khan. Addressing consumer concerns and desires will be key in fostering a

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loyal customer base, making our organic hair care line the leading choice in the region. With the
groundwork of this survey, we have valuable guidance for navigating the market landscape and
fulfilling the organic hair care needs of the Rahim Yar Khan community.

The survey conducted in Rahim Yar Khan underscores a growing awareness and preference for eco-
friendly products within the local population, especially in the realm of hair care. With 63% of
participants rating eco-friendliness as “Very important,” and an additional 25.3% considering it
“Somewhat important,” it’s clear that a significant majority—88.3%—place value on sustainable
practices. The fact that only 9.7% were neutral and a mere 2% viewed it as “Not important” further
emphasizes the community’s commitment to environmentally responsible choices.

This preference presents a valuable opportunity for introducing an organic hair care line tailored
to this audience’s values. A focus on eco-friendly practices, such as incorporating natural
ingredients and adopting sustainable packaging, can effectively align the product offerings with
consumer expectations. Herbal hair oil, serum, and shampoo that prioritize environmental
sustainability can attract and maintain the interest of the environmentally conscious demographic
in Rahim Yar Khan.

By tapping into these preferences, the organic hair care brand can position itself as a leader in the
local market. Emphasizing the benefits of eco-friendly products not only meets the demands of
the current market but also contributes positively to the growing global movement towards
sustainable consumption. This strategic approach can build strong customer loyalty and set a
benchmark for responsible business practices in the hair care industry.

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2.1 Competitive Analysis
Competitive analysis is the process of identifying and evaluating your current and potential
competitors to understand their strengths, weaknesses, strategies, market position, and
performance. The goal is to gain insights that help your business make better strategic decisions,
differentiate your offerings, and identify opportunities or threats in the marketplace. Our
competitors are:

I. Saeed Ghani
II. Rivaj Mahal

2.1.1 Saeed Ghani

Saeed Ghani is one of the most well-known and trusted herbal brands in Pakistan, with a strong
heritage in natural beauty and personal care products. The brand offers a wide range of items
including herbal soaps, oils, masks, and scrubs. Its long-standing presence in the market has helped
it build strong customer loyalty and recognition. However, while Saeed Ghani uses natural
ingredients, our brand differentiates itself by focusing strictly on 100% organic, chemical-free
formulations and producing fresh handmade batches specifically for hair care. Unlike Saeed
Ghani’s conventional packaging and broader product variety, our brand emphasizes eco-friendly
packaging and a targeted product line consisting of herbal hair oil, shampoo, and serum.
Additionally, our pricing is kept affordable to make premium organic care accessible to a wider
audience. This focused and transparent approach helps us stand out in a competitive market
dominated by legacy brands.

2.1.2 Rivaj Mahal

It offers organic hair oils aimed at addressing hair fall and dandruff using natural ingredients. While
they are a strong player in Rahim Yar Khan's organic hair care market, their product line is mostly
limited to oils, lacking an extensive range of shampoos or serums. Additionally, their branding does
not specifically address the local market's unique issues. One significant oversight is the absence
of a solution for hard water effects, a common problem in Rahim Yar Khan that can cause dryness
and breakage. To differentiate our products, we can include a formula that protects against hard
water. By using natural chelating agents like citric acid in shampoos to eliminate mineral buildup
and incorporating hydrating herbs like aloe vera in our oils and serums, we directly address local
challenges and appeal to consumers looking for effective, region-specific solutions.

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2.2 5 Cs of Business
2.2.1 Company

The 5C’s of business help us to understand our company’s position and its environment.
Our company is a passionate team of eight individuals, committed to making high-quality organic
herbal hair care products, including hair oil, shampoo, and serum.
Rooted in natural wellness and sustainability, we focus on creating hair-friendly products that are
free from harmful chemicals, using only organic and eco-friendly ingredients.
Each product is carefully crafted to reflect our belief in the healing power of nature and our mission
to promote healthy living.

 Products: Herbal Hair Oil, Herbal Shampoo, Herbal Hair Serum

 Slogan: “Glow Naturally, Shine Beautifully!”

 Goals: To source the finest ingredients and create 100% natural and effective hair care
solutions.

2.2.2 Customer

Our customers are health-conscious individuals who prefer natural and chemical-free hair care
products.
They value the benefits of herbal ingredients and seek safe, effective solutions for their hair
problems like hair fall, dandruff, and dryness.
Our target audience includes:

 Age Group: 18–45 years (young adults, working professionals, and wellness-focused
individuals)

 Income Group: Middle-income to upper-middle-income individuals

 Demographics:

o Geographic: Urban and semi-urban areas

o Sociographic: Eco-conscious, health and beauty enthusiasts, those preferring

sustainable lifestyles.

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2.2.3 Collaborators

We work with local organic farms and herbal ingredient suppliers to ensure the purest ingredients
for our products.
We also plan to collaborate with:

 Payment Partners: JazzCash, Easypaisa

 Delivery Services: TCS and other courier companies for safe and fast shipping

 Online Platforms: Facebook, Instagram, and WhatsApp channels for marketing and
customer engagement

In the future, we also aim to work with beauty salons and wellness centers to promote our brand.

2.2.4 Competitors

We face competition from well-known herbal brands as well as small local businesses offering
organic hair care products.
Our key differences are:

 Handmade small batches for freshness

 Transparency about our ingredients

 Strong belief in traditional herbal remedies and authenticity

Our main competitors in the market are:

 Saeed Ghani (herbal hair products)

 Rivaj Mahal (organic personal care)

2.2.5 Climate

Several environmental factors affect our business:

 Raw Material Availability: Climate change can impact the availability and cost of herbs like
amla, aloe vera, and neem.

 Packaging & Logistics: Extreme weather can delay transportation and shipping, especially
for organic and sensitive materials.

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  Consumer Behavior:

o In hot climates, customers may prefer light and refreshing products (like cooling
hair oils and light shampoos).

o In colder climates, they may demand moisturizing and nourishing products (like
heavy hair oils and serum).

2.3 SWOT ANALYSIS

2.3.1 Strengths

 100% Organic Products: No harmful chemicals, which appeals to health-conscious

consumers.

 Growing Demand for Natural Alternatives: Rising trend of consumers opting for eco-
friendly and chemical-free personal care.

 Strong Brand Value: Focus on sustainability and quality enhances customer trust.

 Unique Product Offerings: Specialization in herbal hair oil, shampoo, and serum with
natural ingredients.

2.3.2 Weaknesses

 Higher Production Cost: Organic ingredients may be costlier, affecting initial margins.

 Limited Brand Recognition: As a new brand, building a loyal customer base may take time.

 Supply Chain Challenges: Sourcing high-quality organic ingredients consistently can be

difficult.

 Dependency on Niche Market: Focus may limit appeal to broader, less health-conscious
audiences.

2.3.3 Opportunities

 Rising Health Awareness: More consumers are shifting toward natural and eco-friendly
products.

 Expansion into Other Markets: Potential to expand product line or enter new markets with
organic skin care products.

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  Partnerships with Eco-conscious Brands: Collaborations could increase visibility and reach.

 Online Retail Growth: Expanding sales through e-commerce and social media platforms.

2.3.4 Threats

 Intense Competition: Both from established organic brands and new entrants.

 Fluctuating Raw Material Costs: Changes in the price of organic ingredients could affect
profitability.

 Consumer Loyalty: The challenge of keeping customers loyal in a market with abundant
options.

 Regulatory Risks: Adherence to certification standards for organic products may evolve
and require ongoing adjustments.

By using its strengths and opportunities while managing weaknesses and threats, our brand can
become a leading provider of organic herbal hair care products in Rahim Yar Khan.

Our strengths include 100% organic products, natural herbal ingredients, and a strong focus on
sustainability, which attracts health-conscious customers. The rising demand for eco-friendly
personal care also gives us a good opportunity to grow.

However, we face challenges like higher production costs, limited brand recognition, and difficulty
in sourcing organic ingredients consistently. Our focus on a niche health-conscious market may
also limit us in the beginning.

Still, increasing health awareness, opportunities for online sales, and possible partnerships with
eco-conscious brands provide strong chances for expansion.

We also need to be careful about strong competition, fluctuating raw material costs, building
customer loyalty, and keeping up with changing regulations related to organic products.

Understanding these factors will help us plan better, strengthen our business, and handle
challenges smartly.

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2.4 PESTLE Analysis
2.4.1 Political

The political environment in Rahim Yar Khan, Pakistan, plays a crucial role in the operation of our
organic herbal hair care brand. Stable political conditions are essential for business continuity and
growth. Government policies regarding business regulations, taxation, and foreign investment can
impact our operations. Additionally, any changes in government policies related to product
formulation, hygiene standards, and organic certifications may affect the business compliance
requirements.

 Regulations: Compliance with laws governing herbal hair products, labeling, and
packaging.

 Trade policies: Impact of import/export policies on sourcing organic raw materials.

2.4.2 Economic

Rahim Yar Khan’s economic landscape influences our business activities. Economic factors such as
inflation rates, exchange rates, and GDP growth rates can affect consumer spending patterns,
especially in personal care products. Our pricing strategy and revenue projections may need to
adapt to changes in the local economy. Moreover, economic downturns could lead to reduced
consumer spending on luxury and non-essential items, impacting profitability.

 Market demand: Growing demand for natural and organic personal care products.

 Competition: Presence of established brands and new entrants in the organic beauty
market.

 Economic downturn: Potential impact on consumer spending behavior.

2.4.3 Social

Social factors are crucial for understanding the target market and consumer preferences.
Demographic trends such as population growth, age distribution, income levels, and lifestyle
changes may affect the demand for organic hair oil, shampoo, and serum.

Consumer trends: Increasing interest in wellness, self-care, and sustainability.

Demographics: Target audience’s age, income, and lifestyle preferences.

Social media influence: Online reviews, influencer endorsements, and brand recommendations.

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2.4.4 Technological

Technological advancements impact various aspects of our operations, from product formulation
to customer service. Utilizing technology for online ordering, marketing, and delivery services can
enhance customer convenience and satisfaction.

 E-commerce platforms: Online sales and digital marketing opportunities.

 Product development: Innovations in herbal product formulations and sustainable

manufacturing.

 Digital marketing: Social media advertising, website optimization, and influencer

collaborations.

2.4.5 Environmental

Environmental considerations are increasingly important for businesses like ours. Sourcing
sustainable ingredients, implementing eco-friendly production methods, and reducing waste
contribute to environmental sustainability. Promoting these initiatives strengthens our brand
image among eco-conscious consumers.

 Sustainability: Eco-friendly packaging, organic sourcing, and green production practices.

 Raw material sourcing: Impact of climate change on the availability of herbal ingredients.

 Waste management: Proper disposal and recycling of packaging and production waste.

2.4.6 Legal

Legal factors include regulations and laws that govern our business operations. Compliance
with hygiene standards, labor laws, and organic certifications is essential to avoid legal issues
and maintain a good brand reputation. We must also follow licensing requirements and protect
our brand assets through intellectual property rights.

 Labeling and claims: Compliance with regulations on product labeling and advertising
claims.

 Intellectual property: Protection of brand name, logos, and product formulations.

 Product safety: Meeting safety standards for herbal hair care products.

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2.5 Porter’s Five Forces Model

2.5.1 Competitive Rivalry

The organic personal care sector is marked by intense competitive rivalry. Established brands
dominate the market with strong customer loyalty and substantial marketing power, putting
pressure on new and smaller players. To thrive in such an environment, companies must
differentiate through superior product quality, distinctive branding, and enhanced customer
engagement. These elements can help carve out a niche and attract discerning customers who
value authenticity and innovation.

2.5.2 Threat of New Entrants:

The ease of entering the organic products market is a double-edged sword. Though low entry
barriers facilitate new businesses to start operations, sustaining and thriving remains a challenge
due to existing competition. New entrants must focus on sourcing high-quality organic ingredients
and building a credible brand to effectively compete. Hence, while entering the market is easy,
establishing a significant presence is far more challenging, making the threat from new entrants
moderate.

2.5.3 Bargaining Power of Suppliers:

The organic personal care sector benefits from having multiple suppliers for raw materials. This
multiplicity allows companies to switch suppliers easily, keeping individual supplier power in check.
However, firms relying on niche supplies might face higher pressures from those specific suppliers.
Generally, the availability of diverse suppliers helps maintain a balance, keeping the bargaining
power of suppliers low to moderate.

2.5.4 Bargaining Power of Buyers:

Customers hold significant power in the organic personal care market due to the abundance of
choices. They can easily compare products, read reviews, and switch brands if desired. To maintain
customer loyalty and satisfaction, companies need to deliver high-quality products, excellent
customer service, and unique selling propositions such as sustainability and ingredient
transparency. A compelling brand narrative can also enhance brand commitment.

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2.5.5 Threat of Substitutes:

While the demand for organic products is on the rise, chemical-based alternatives still pose a
substantial threat due to factors like lower cost and brand reliability. However, with growing
awareness about the health benefits of organic products, this threat is tempered. Educating
consumers about potential risks associated with chemical products and the advantages of organic
alternatives can mitigate the impact of substitutes.

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 3. Management Hierarchy

3.1 Management Team

Management Team The management hierarchy of organic shine is designed to ensure efficient
operations, clear communication, and effective decision-making processes. The structure is as
follows:

Hammad Younas — CEO / Business Head

 Leads the overall business operations and decision-making.

 Approves product ideas, strategies, and budgets.

 Coordinates all departments and ensures smooth communication.

 Represents the brand in major meetings or external events.

Ezzah Mansoor — Marketing Manager

 Plans and manages social media campaigns (Instagram, Facebook).

 Designs promotions, advertisements, and brand visuals.

 Handles customer feedback and online engagement.

 Builds brand image through influencer marketing and events.

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Fiza Zafar — Production Manager

 Supervises the making of hair oil, shampoo, and serum.

 Ensures hygiene, quality control, and safety during production.

 Manages stock of raw materials like amla, neem, coconut oil etc.

 Coordinates with R&D team for improving product formulas.

Fiza Mehmood — Finance Manager

 Prepares budget, cost analysis, and pricing strategy.

 Keeps record of all income, expenses, and profits.

 Plans funding, working capital, and financial forecasting.

 Ensures transparency and accuracy in money handling.

Mehkan Shafique — R&D Head

 Researches herbal ingredients and their benefits.

 Develops and tests new product formulas.

 Ensures product safety, effectiveness, and innovation.

 Keeps updated with market trends and customer needs.

Aiman Niaz — Operations Manager

 Looks after packaging, storage, and delivery process.

 Coordinates with logistics services (like TCS).

 Maintains inventory and warehouse management.

 Ensures timely order fulfillment and product safety.

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 4. Marketing Mix:
To effectively reach our target audience and build a strong market presence, we have developed a
marketing strategy based on the 4Ps model. This approach helps align our product, price, place,
and promotion with customer expectations and business goals.

4.1.1 Product

 Product Offering: Your business offers a range of 100% organic, chemical-free personal care
products including hair oil, shampoo, and serum. These products are made using natural
ingredients such as herbs, essential oils, and extracts that are known for their health
benefits.

 Unique Selling Proposition (USP): The focus is on purity and sustainability, with no harmful
chemicals, parabens, or synthetic fragrances. You could also emphasize cruelty-free testing
and eco-friendly packaging as part of the product's appeal.

 Product Quality: High-quality ingredients sourced from trusted suppliers. This can be your
strongest differentiator in the market, ensuring customers trust your brand for their
wellness needs.

 Packaging: Attractive, eco-friendly packaging that highlights the natural aspect of your
products, such as glass bottles, recyclable materials, or biodegradable labels.

4.1.2 Price

 Pricing Strategy:

o Premium Pricing: Since your products are organic and targeted toward health-
conscious consumers, you can position them as premium products with higher
value and benefits.

o Competitive Pricing: While your pricing should reflect the quality, it's important to
keep it competitive within the organic personal care market. You can also offer
bundle deals or discounts for first-time buyers to encourage purchases.

o Price Range: Set your prices based on market research—ensure they are aligned
with similar products but also take into account your premium offerings and the
quality of ingredients.

 Discounts & Offers: You may offer occasional discounts during festive seasons, new product
launches, or for loyal customers, along with special packages (e.g., combo sets of hair oil,
shampoo, and serum).
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4.1.3 Place

 Distribution Channels:

o Online Stores: Given the growing trend of online shopping, having a strong presence
on e-commerce platforms like Amazon, your own website, and other specialized
organic product stores is essential.

o Physical Stores: You can consider selling your products in health and wellness stores,
organic markets, or beauty and skincare outlets.

o Salon and Spa Partnerships: Partnering with salons and spas could be an excellent
channel for product visibility and sales, as your products align with natural beauty
treatments.

o Global Reach: If you plan to expand, exploring international markets that have a
strong organic product demand can be a good strategy.

4.1.4 Promotion

 Advertising & Branding:

o Social Media Marketing: Platforms like Instagram, Facebook, and TikTok are perfect
for showcasing the natural and eco-friendly aspects of your products. Engaging with
influencers in the wellness and beauty industry can help you reach a larger
audience.

o Content Marketing: Use blogs, tutorials, and wellness guides on your website or
through social media to educate your audience on the benefits of using organic
products.

o SEO and Online Ads: Invest in SEO for your website and pay-per-click advertising
(Google Ads, social media ads) to reach customers searching for organic personal
care solutions.

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4.2 Customer Segmentation:
4.2.1 Demographic Segmentation

 Age:

o Young Adults (18-30 years): This group often struggles with issues like oily scalp,
dandruff, or hair loss due to stress or lifestyle. They are likely to gravitate toward
natural, chemical-free hair care products for healthier hair.

o Adults (30-45 years): Concerned with preventing hair thinning, promoting hair
growth, and maintaining overall hair health. They may also be interested in anti-
aging solutions for hair.

o Middle-Aged Adults (45+ years): More likely to be interested in products that help
with thinning hair, dryness, or grey hair care, and those that provide nourishment
and rejuvenation.

 Gender:
 Females: Women often have a broader variety of hair care needs, including
products for hair growth, shine, frizz control, and scalp health. They may be more
inclined to spend on premium, organic hair care items.
 Males: Men are also becoming more aware of hair care and grooming, with growing
interest in products that address hair thinning or baldness, as well as solutions for
healthy hair maintenance

4.2.2 Psychographic Segmentation:

 Health-Conscious Consumers:

o These consumers are looking for organic, natural hair care solutions that avoid
harsh chemicals. They might be concerned about the long-term health effects of
chemical-laden hair products and prefer products with clean, non-toxic ingredients.

 Eco-Conscious Consumers:

o Customers who prioritize sustainability in their lifestyle will be drawn to hair care
products that are eco-friendly, cruelty-free, and have minimal environmental
impact. They would appreciate packaging made from recyclable or biodegradable
materials.

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  Beauty Enthusiasts:

o This group is interested in the latest beauty trends and products that promise
healthy, shiny, and strong hair. They may actively seek products that are formulated
for specific hair issues like frizz, dryness, or color-treated hair.

4.2.3 Behavioral Segmentation

 Frequent Buyers:

o Customers who regularly purchase hair care products and are loyal to organic
brands due to their positive experiences with the product quality. These customers
may also be influenced by subscription models or auto-replenishment offers.

 Occasional Buyers:

o Consumers who might not regularly purchase hair care products but do so when
they experience specific hair issues such as hair loss, scalp irritation, or seasonal
changes affecting their hair’s health.

 Solution Seekers:

o These are customers who are actively looking for solutions to specific hair problems
such as dandruff, hair thinning, dry scalp, or damaged hair. They are highly likely to
try new products that promise to solve their hair care needs.

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4.3 Logistics and Operational Plan for Organic Hair Care Products
4.3.1 Production Plan

Suppliers of Raw Materials:

Establish relationships with trusted suppliers of organic ingredients such as essential oils, herbal
extracts, and other raw materials. Ensure that they provide high-quality products that meet the
required organic certifications (e.g., USDA Organic, ECOCERT).

Maintain a list of backup suppliers in case of shortages or delays in delivery.

Manufacturing Process:

Decide whether to outsource manufacturing to an established production facility or set up your

own production unit.

If outsourcing, choose a manufacturer that specializes in organic products and complies with your
quality standards.

If manufacturing in-house, ensure that you have the necessary equipment, trained staff, and
quality control measures in place to maintain consistent product quality.

Establish a quality control system at every stage of production to ensure the products meet health
and safety standards.

Packaging:

Source eco-friendly packaging materials such as glass bottles, biodegradable plastic, or recyclable
cardboard.

The packaging should not only preserve the quality of your products but also reflect your brand's
eco-conscious values.

Design packaging with clear labeling, including ingredients, usage instructions, and certifications
to build trust with customers.

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4.3.2 Inventory Management

Inventory System:

Use an inventory management system (e.g., software like TradeGecko or NetSuite) to track raw
materials, finished products, and packaging materials. This will help avoid stockouts or
overstocking.

Establish optimal stock levels for different products based on demand forecasts. Adjust inventory
regularly to avoid wastage or spoilage, especially for organic ingredients with a limited shelf life.

Storage:

Ensure that the storage environment meets the required conditions (temperature, humidity, etc.)
for the raw materials and finished products. Organic ingredients, in particular, may require a
controlled environment to maintain their quality.

Use shelves and storage containers that prevent contamination and preserve the integrity of the
products.

4.3.3 Distribution Plan

Warehousing:

Consider using a third-party logistics (3PL) provider to manage warehousing, especially if your
business grows rapidly. They can handle storage, picking, packing, and shipping, reducing the
operational burden on your team.

For smaller operations, setting up an in-house warehouse or stock room in your office or facility
may be sufficient, depending on volume.

Shipping and Delivery:

Choose reliable shipping partners (e.g., FedEx, UPS, or regional courier services) to ensure timely
and safe delivery of products to customers. You may also want to partner with eco-friendly delivery
services to align with your brand’s values.

Offer different shipping options (e.g., standard, expedited, international) to cater to various
customer needs. Implement a tracking system for customers to track their orders in real-time.

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International Shipping:

If you plan to sell internationally, ensure compliance with each country’s import/export regulations
and product safety standards.

Set up a customs clearance process and find international shipping partners with experience
handling cosmetics and personal care items.

4.4.4 Order Fulfillment

Order Processing:

Set up an efficient order processing system, either automated through an e-commerce platform
(like Shopify or WooCommerce) or manually through your website’s backend.

Establish clear guidelines for order processing times (e.g., orders are processed within 24 hours)
and ensure that orders are picked, packed, and dispatched promptly.

Returns and Refunds:

Develop a clear returns and refunds policy that aligns with customer expectations. Offer hassle-
free returns for unopened products and address any complaints related to damaged or defective
items.

Ensure that your return process is simple, with clear instructions and a reasonable timeframe for
customers to send back products.

4.3.5 Operational Team

Roles and Responsibilities:

Hire skilled personnel for key roles, such as:

Production Team: Handles the manufacturing and quality control of the products.

Logistics Team: Manages warehousing, inventory, and shipping.

Customer Service: Responsible for handling inquiries, returns, and order-related issues.

Marketing and Sales Team: Promotes products and engages with customers on various platforms.

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Training:

Provide training for employees on operational efficiency, product knowledge, quality control
standards, and customer service.

Regularly update training programs to align with best practices in the industry and changes in
consumer preferences.

4.3.6 Technology and Automation

Order Management System:

Invest in an integrated Order Management System (OMS) that connects your website, inventory
system, and shipping partners to streamline order processing.

Customer Relationship Management (CRM):

Implement a CRM system (e.g., HubSpot, Salesforce) to track customer interactions, preferences,
and purchase history. This helps to personalize marketing efforts and improve customer retention.

Analytics and Reporting:

Use data analytics tools to track inventory levels, sales trends, customer behavior, and marketing
performance. This will help with forecasting demand, optimizing stock levels, and adjusting your
marketing strategy.

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 5. Financial Plan
5.1 Start-up capital
Facilities & Equipment Requirement

Sr. No Description No. of Units Cost per Unit (Rs.) Amount (Rs.)
1 Rent - - 5,000
2 Branding/Logo Design - - 5,000
3 Laptop - - 50,000
4 Camera - - 70,000
5 Furniture - - 30,000
6 Oil Bottles 50 50 2,500
7 Serum Bottles 50 250 12,500
8 Shampoo Bottles 50 100 5,000
9 Other Expenses - - 3,000
10 Raw Materials - - 15,000
11 Label Printing 150 20 3,000
12 Measuring Equipment - - 5,000
13 Website + Domain - - 3,000
14 Outer Packaging (Boxes & Wrapping) 150 100 15,000
15 Marketing Expense - - 20,000

5.1.1 Working capital

In this illustration we assume it to be equal 3 months fixed operating expenses

Sr. No Description Per Month Cost (Rs.)

1 Bottles (150) 20,000
2 Electricity Bills 5,000
3 Other Utility Expense 3,000
4 Marketing Expense 20,000
5 Rent 5,000
6 Total → B 53,000

Required Running Capital → C

C = 53,000 × 3 (for 3 months) = 1,59,000 Rs.

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5.1.2 Start-up Capital

The table for Step 3 (Start-up Capital) is as follows:

Sr. No Description Amount (Rs.)

1 Facilities & Equipment Requirement (same as A) 2,94,000
2 Working Capital (same as C) 1,59,000
Total Start-up Capital Required→ D 4,03,000

5.1.3 SOURCES OF FINANCE

Capital structure:

Percentage Amount (Rs.)

Equity → E 100% 4,03,000
Debt → F 0% 0

5.2 PROSPECTED FINANCIAL STATEMENTS

Step 1: Describe the source of revenue

Hair oil, Shampoo, Serum

Step 2: Decide Selling Price

1500, 1200, 2200

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Step 3: Prepare Sales Budget

Month No. of Units (Likely to be Sold) Selling Price (Rs.) Revenue (Rs.)
1 15 + 20 + 10 1,500 + 1,200 + 2,200 68,500
2 18 + 32 + 12 1,500 + 1,200 + 2,200 91,800
3 25 + 40 + 18 1,500 + 1,200 + 2,200 1,25,100
4 29 + 48 + 25 1,500 + 1,200 + 2,200 1,56,100
5 32 + 55 + 32 1,500 + 1,200 + 2,200 1,84,400
6 38 + 64 + 40 1,500 + 1,200 + 2,200 2,21,800
7 40 + 72 + 55 1,500 + 1,200 + 2,200 2,67,400
8 48 + 80 + 62 1,500 + 1,200 + 2,200 3,04,400
9 55 + 89 + 75 1,500 + 1,200 + 2,200 3,54,300
10 72 + 92 + 82 1,500 + 1,200 + 2,200 3,98,800
11 88 + 98 + 100 1,500 + 1,200 + 2,200 4,69,600
12 110 + 105 + 150 1,500 + 1,200 + 2,200 6,21,000
Total 2,026 Units 33,63,200

Total units to be sold in 1 year = 2,026

Step 4: Prepare costs budget

Cost of Goods Sold (CGS)

Product Cost per Unit No. of Units Amount (Rs.)

Material 150 1,70,000
Labor - -
Overheads (Internet + Electricity) - 7100
Total - 1,77,100

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Step 5: Prepare Income Statement

Income Statement

Description Year 1 Year 2 Year 3 Year 4

Revenue 33,63,200 37,00,5209(+10%) 40,70,572(10%) 44,77,629(+10%)

Less: CGS 1,77,100 1,94,810(+10%) 2,14,291(+10%) 2,35,720(+10%)

= Gross Profit 31,86,100 35,05,710 38,56,281 42,41,909

Less: Other Operating

1,59,000 1,74,900(+10%) 1,92,390(+10%) 2,11,629(+10%)
Expenses

Depreciation 73,500 73,500 73,500 73,500

= Profit Before Tax 29,53,600 32,57,310 35,90,391 39,56,780

Less: Tax (15%) (4,43,040) (4,88,597) (5,38,559) (5,93,517)

= Profit After Tax 25,10,560 27,68,713 30,51,832 33,63,263

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Step 6: Prepare Balance Sheet

Assets

Year 2
Description Year 1 (Rs.) Year 3 (Rs.) Year 4 (Rs.)
(Rs.)
Fixed Assets 2,94,000 2,20,500 1,47,000 73,500

Current Assets 30,27,100 57,95,813 88,47,645 1,22,10,908

TOTAL ASSETS 33,21,100 60,16,313 89,94,645 1,22,84,408

Liabilities & Equity

Description Year 1 (Rs.) Year 2 (Rs.) Year 3 (Rs.) Year 4 (Rs.)

Equity 4,03,000 4,03,000 4,03,000 4,03,000

Retained Earnings 25,10,560 52,79,273 83,31,105 1,16,94,368

TOTAL EQUITY 29,13,560 56,82,273 87,34,105 1,20,97,368

Liabilities 0 0 0 0

TOTAL LIABILITIES & EQUITY 33,21,100 60,16,313 89,94,645 1,22,84,408

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5.3 FINANCIAL ATTRACTIVENESS
Step 1: Ratio Analysis

Based on Year 1 Data (%):

1. Gross Profit Ratio

GPR = (Gross Profit / Revenue) × 100 = (31,86,100 / 33,63,200) × 100 = 94.7%
2. Net Profit Ratio
NPR = (Net Profit After Tax / Revenue) × 100 = (25,10,560 / 33,63,200) × 100 = 74.6%
3. Return on Investment (ROI)
ROI = (Net Profit After Tax / Initial Equity) × 100 = (25,10,560 / 4,03,000) × 100 = 623%

Step 2: Break-Even Analysis

 Fixed Costs = Operating Expenses + Depreciation = 1,59,000 + 73,500 = 2,32,500 Rs.

 Variable Cost per Unit = COGS / Units Sold = 1,77,100 / 2,026 ≈ 87.4 Rs.
 Selling Price per Unit = Revenue / Units Sold = 33,63,200 / 2,026 ≈ 1,660 Rs.
 Break-Even Units = Fixed Costs / (Selling Price - Variable Cost) = 2,32,500 / (1,660 - 87.4) =
151 Units

Step 3: Payback Period

 Annual Cash Flow = Net Profit + Depreciation = 25,10,560 + 73,500 = 25,84,060 Rs.
 Initial Investment = 4,03,000 Rs.
 Payback Period = Initial Investment / Annual Cash Flow = 4,03,000 / 25,84,060 ≈ 0.16
Years (≈ 2 Months)

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 5. Conclusion
Our organic hair care project illustrates the significant potential for a locally focused, eco-friendly
brand to prosper in Rahim Yar Khan's expanding market. Many consumers in the area have
expressed a willingness to switch to organic hair care products and place importance on eco-
friendliness. Our herbal hair oil, serum, and shampoo cater to this clear demand for sustainable,
chemical-free solutions. By addressing specific local needs, such as the effects of hard water on
hair, and offering unique features like biodegradable packaging and personalized product bundles,
we set ourselves apart from competitors. Brands like Himalaya, Rivaj Mahal, and The Hair Pantry
have not concentrated their efforts specifically on the demographic of Rahim Yar Khan, which gives
us a competitive edge.

We are backed by a substantial financial foundation that allows us to cover startup costs and sustain
initial operations for three months. Our initial production plan focuses on ensuring quality and
scalability by starting with a manageable number of units per product. Through strategic marketing
efforts that leverage social media and local partnerships, our business is well-positioned to build a
loyal customer base. Our goal is to establish a reputation as a trusted name in the organic hair care
industry while also fostering the community’s shift toward sustainable living practices.

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 6. References
 https://www.ijitee.org/wp-content/uploads/papers/v9i2s2/B11651292S219.pdf
 https://www.researchgate.net/publication/378609924_Formulation_and_Evaluation_of
_Herbal_Hair_Oil
 https://www.sybespharmacy.com/asset/pdf/research-
activities/publication/553126_30.05.2023_penkar_02.pdf
 https://rjpn.org/ijcspub/papers/IJCSP22D1328.pdf

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