Introduction
In the modern business environment, it is important to offer potential customers a variety of choices of a particular product. Such tendency especially concerns the market of the cosmetics and various products for skin care and beauty industry. While the market of regular mass market cosmetic products is relatively wide, the newly emerging trends also include a vast number of organic products for skin care and beauty. However, it is also important to note that in Abu Dhabi in general, and in Khalefa City A, in particular, there are not many shops representing this trend.
The main objective of The Secret Garden is to re-introduce the organic skin care products and cosmetics to the city. In many ways, the customers would prefer to be able to go to the store and buy organic products there rather than order them online because it is a specific sector of the market, and the consultants of the store will be able to give advice to each customer individually.
In terms of budgeting, the overall budgeting and financial planning, including rent costs, products stock for three months, payrolls for the personnel, and various additional costs, including but not limited to taxation, marketing, advertising, and customer service would require Dh 1, 187, 000 for 12 months.
The marketing campaign for the store will be aimed at underlying the organic nature of the products. It is important for the shop to emphasize the role of natural beauty, as well as how organic components can help customers to take care of their health and beauty. With consideration for all the planning and marketing aspects, the timeline from the planning stage to the launch of the shop will be 3 months.
Application of the ideas and facilities
In order for a new company, such as The Secret Garden to get a trading license, the executive director of the company needs to contact the Department of Economic Development and register the company. After passing the formal procedures, the trade license will acquire its unique number. It is also important to note that the license needs to be renewed before its expiration date. The next step for the company is to find a property to rent. Overall, Khalefa City A was the first choice because it will get the company more access to potential customers.
At present, it is a popular area, and it is hard to find a place to rent, but “costing between Dh120,000 and Dh140,000 a year came in second, accounting for another 10.3 percent of searches” (Barnard par. 10). That is why the place for renting that can be found with the help of online and actual estate agencies should cost around Dh120, 000 a year, there are many options of such properties at the real estate agencies’ websites (“Properties For Rent In Khalifa City” par. 4). In such a way, there will be less competition for this place, and it will be better looking and more appealing to customers. Such facility will require at least 5 shop assistant-consultants with training in organic skin care, 2 cashiers, and one assistant manager.
Considering that by the year 2018, “the industry estimates that global demand for natural and organic skincare will reach $13.2 billion” (“Skincare Business” par. 2), it is important to put the shop in operation as fast as possible. It is also significant to pay attention to the decoration of the shop. In order to underline that the shop is focused on selling organic skin care products, the dominant colors of the shop decoration and style should relate to nature. The obvious and winning choice, in this case, is green. However, green is a very calm color, and for the shop to stand out a little more it also needs something bright. Thus, the combination of green and red in the decoration and design of the shop will make it more festive and attractive.
Budgeting and scope
The project budgeting needs to include rent costs, products stock for three months, payrolls for the personnel, and various additional costs, including marketing, and advertising. For a project of such a scale, it is better to do planning for at least 12 months (Shim, Siegel, and Shim 220). The estimated rent for a facility will cost Dh120, 000 a year. The scheme for the payroll for the employees is presented in the following table.
The shop will require 3 months before opening when it will be renovated and decorated, and assistant-consultants will be trained. Thus, employees who are required for building and decorating activities will be paid for those 3 months, while the rest of the staff (apart from the assistant manager) will be paid during remaining 9 months of the project after the shop is open.
Training of the employees by the assistant manager will require 3 weeks and is included in the assistant manager’s payroll. The payroll for all employees for 12 months will be Dh 732, 000. Advertising campaign and building and decorating materials will require Dh 35,000 (including paying models, photographers, and PR agency for a small campaign). Finally, the self-cost of an average item of organic skin care cosmetics is Dh 3, which the shop will sell for Dh 18 on average to cover the expenses in 12 months. The costs for the organic cosmetics supplies for 12 months will be around Dh 300, 000. The overall budget is Dh 1, 187, 000 for 12 months.
Marketing strategy and advertising
According to the recent research in the industry of skin care and cosmetics, “a physically attractive model is more effective than a less attractive model when the advertised product is relevant for attractiveness” (Trampe 1116). Moreover, today “many advertisements for grooming products feature a beautiful woman, often with little verbal material besides the brand name” (Bloch and Richins 12). Thus, the advertising campaign should appeal to images more than to words. However, it is also important that in some situations, “the model’s attractiveness likely served as a persuasive argument for the relevant product, but not for the less relevant product” (Trampe 1116).
For that reason, the marketing campaign will focus on natural beauty and on how organic care helps to take care of health and beauty. Also, Trampe suggests that “it is important for marketing professionals to consider a number of issues before making choices about whether to include an endorser in marketing communications for their product and if yes, whether to include a physically attractive or a more average-looking model” (1117).
The advertising should emphasize the beauty of each potential customer because “adornment strategies would improve understanding of the role adornments play in consumers’ lives” (Bloch and Richins 12).
Timeline of the project
The following table will represent the detailed timeline of the project concerning planning, decorating, opening, and managing The Secret Garden.
Figure 2. Timeline of the project.
Conclusion
With the budget of Dh 1, 187, 000 for 12 months, The Secret Garden will a premium class shop offering organic skin care and cosmetic products. The location of the store in a lively area of Khalefa City A is an advantage because it would help to attract more customers. Also, if the self-cost of an average item of organic skin care cosmetics is Dh 3, and the shop will sell for Dh 18 on average, it will be possible to cover the expenses in 12 months.
However, it is also important to consider an appeal to potential customers. That is why The Secret Garden positions itself as a unique provider of organic skin care products both in the shop outlook and decoration and via its advertising. Due to those factors, the shop is expected to be a success.
Works Cited
Barnard, Lucy. “Khalifa City Is Abu Dhabi’S Most Sought After Rental.” 2014.
Bloch, Peter, and Marsha Richins. “You Look “Marvelous”: The Pursuit of Beauty and the Marketing Concept.” Psychology & Marketing 9.1 (1999): 3-15. Print.
Properties For Rent In Khalifa City 2016.
Shim, Jae, Joel Siegel, and Allison Shim. “Marketing: Budgeting for Sales, Advertising, and Distribution.” Budgeting Basics and Beyond, Fourth Edition (2012): 203-221. Print.
Skincare Business 2016.
Trampe, Debra. “Beauty as a tool: The effect of model attractiveness, product relevance, and elaboration likelihood on advertising effectiveness.”Psychology & Marketing 27.12 (2010): 1101-1121. Print.