A Business plan on Beard oil

Prepared by: Abish Dahal

Nepal Business College

Biratnagar-15, Nepal
Question: The participants are required to make a report on marketing plan based on
Beard Oil.

Executive Summary

Growing a beard has strangely become a worldwide “trend.” This has been a craze and
obsession for many. Some people grow beards for fashion whereas some may not due to
genetics factors or other reasons. Beard oil plays a vital role for growing beard to those who
cannot grow it naturally. The trend of using Beard oil is getting blistering day by day. Beard oil
is a cosmetic product that is used to nourish the skin under the beard, as well as the beard itself in
order to keep it "soft, shiny, and smooth”. Beard oil mimics the natural oils produced by skin,
such as sebum, and is composed mainly of carrier oils and essential oils.

Situational Analysis

Regardless of whether it started off as a No Shave November initiative or a desperate attempt to

look more mature, it didn’t take long for those growing a beard to realize that the act isn’t as
simple as one might have imagined. The scope for beard oil is increasing day by day and the
producers for beard oil are very rare.

5C Analysis

Consumer:

Well the targeted consumers for beard oil will be men crossing the age barrier of 16. Similarly
beard oil will be very beneficial for those who cannot grow beard due to some genetics failure.

Competitor:

In context of Nepal there are no beard oil producers which will be cog advantage for us.
Similarly the exported beard oils are relatively high priced which most of the people are feeling
uneasy to afford.

Culture:

Nepalese societies do not digest bearded men easily. So it will be very difficult for us to adjust.
Similarly the beard promoters group likes DARI GANG and being shrawan, (people do not trim
hair and beard during this month) it is up to our advantage. Similarly we aim to provide relief for
those victims who are failing to grow beard.

Climate

Beard oil will be produced considering the low cost production. The best technology will be
adopted considering its cost. Similarly the trend for growing beard has become a hottest trend
which everyone wills to follow which thus will be biggest benefit for our company.

Collaborators

Beard oil sales will be focused highly on online marketing. E-commerce will be perfect way to
enter into market for beard oil due to its lot of advantages. Dari gang will be playing a cog role to
promote our oil.

SWOT Analysis

Strength

Beard oil producers do not exist on Nepal. So it will be a great strength for our company as
youths are already influenced and demanding beard oil in Nepal

Weakness

Major weakness of beard oil is the contemporary society is not being able to accept the trend of
man focusing to grow bear.

Opportunity

There are no beard oil producers in Nepal which will provide first mover advantage. Similarly
the low cost strategy that will be followed will act as booster to compete in global arena.

Threat

The threats are the families of beard lovers as they don’t prefer their own growing beard.
Similarly the misconception in society about beard is also an biggest threat.
PEST Analysis

Political

The raise on taxes and change in rules and regulations are political challenges that beard oils
should tackle.

Economical

Beard oil will be manufactured using low cost production method. Due to which the oil will be
on affordable price to everyone.

Social

It has been a fashion to grow beard for people in today’s scenario which must of the parents
don’t prefer. The beard oil will aware the parents about social works that bearded people are
doing which thus will change their perception.

Technological

Beard oil will be produced using the low cost manufacturing technology which will be a
component for producing the oil at very low price.

Objectives

When as a key component of our growth strategy we consider it critical to identify and outline
our business objectives, and align these objectives with clear and measurable development
milestones. Our key long term business objective is to launch new products. Similarly the
focuses will be more on providing beard oil at very affordable price.

Marketing Strategy

Beard oil will be using Psychographic segmentation and demographic segmentation.

Psychographic segmentation is one which uses lifestyle of people, their activities, interests as
well as opinions to define a market segment whereas Demographic segmentation is one of the
simplest and widest type of market segmentation used. Segmentation generally divides a
population based on variables. Thus demographic segmentation too has its own variables such as
Age, gender, family size, income, occupation, religion, race and nationality.
Targeting

The targeted groups for beard oil are those who cannot grow beard but wants to grow it .They
have willing to buy beard oil but cant due to high prices.

Differentiation and Positioning

Beard Oil is uniquely positioned to deliver value to Men with beards. "Hiram's Beard Oil will
make your beard soft and kissable, get rid of unsightly beardruff, calm the skin and promote
growth." In order to be delivering on this value proposition, we offer our unique blend which
mimics your natural oils, conditioning the skin to prevent itching and dandruff, while infusing
the beard hair making it healthier, softer and more manageable. This capability has taken
considerable time and resources to develop and forms the cornerstone of our competitive
advantage.

4 P’s

Price

The price for beard oil will be low as compared to other beard oil.

Product

Beard oil will provide a quality product further the naturalness and uniqueness in product tends
to attract more consumer attraction.

Place

The headquarter of beard oil will be located on Biratnagar which is close to border will help to
import raw material if it’s not available in the local market. Similarly Beard oil will open online
store due to which everyone will be comfortable on purchasing.

Promotion

Beard oil will be mainly promoted by Dari Gang. Similarly beard oil also endorses those
celebrities who have passion for growing beards.
 Cash Flow Statement of Beard Oil Company
For the end of Year (2019)
Particulars Details Amount

1. Cash Flow From Operating Activities

a. Cash collection from debtors and cash sales
 Net sales 10000
 Increase in accounts receivables (5,000) 95,000

b. Cash payment to creditors of goods and services

 Cost of Goods sold (700,00)
 Increase in inventory (100,00)
 Increase in accounts payable 60,00 (740,00)

c. Payment to employees and other operating activities

 Salary paid (100,00)
 Prepaid salary (10,00)
 Other expenses (40,00) (150,0)

d. Income Tax payments

 Increase in provisions for taxation( from B/S) 10,000
 Provisions for taxation (I/S) (4000) (3000)

Net cash provided by operating activities(1) 4000

2. Cash flow from Investing Activities

 Lease of Land (10000)
 Purchase of Plant and Machinery (360000)

Net cash used by Investing activities(2) (370,000)

3. Cash flow from financing activities

 Issuance of share capital at premium 100,000
 Redemption on Debenture at premium (10,000)
 Payment of Cash dividend (40,000)

Net cash provided by financing activities(3) 150,000

C.A.C.E at beginning of year 50,000

= C.A.C.E at end of the year = 60,000