Business Plan: Pedro&#039s Natural Soap

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Executive summary

A.

Type of Business

Pedro’s Natural Soap is an upcoming sole-proprietorship type of business that would soon be

part of the personal care sector. Pedro’s line of soap is the company’s take on a 100% all

natural soap. The soap is made out of oils and other natural ingredients. Pedro’s Natural Soap

aims to promote a healthy way of caring for your skin. The company made this line of soap

for everybody to use.

B.

Management Highlights

Pedro’s Natural Soap’s top management team is composed of one member.

Owner/ General Manager: Alex L. Bagaoisan Jr

Pedro’s line of soap will be distributed directly to its consumers.

C.

Marketing Highlights

Pedro’s Natural Soap’s will work on building its online profile so that through Social Media

(Twitter, Facebook and Instagram) the company will be able to promote the brand and

interact with potential customers.

D.

Financial Highlights

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I.

BUSINESS DESCRIPTION

MISSION & VISION STATEMENT

_VISION

• To be the leading personal care manufacturer in the field of natural care products in the Philippines.

After this goal has been reached, Pedro will aim to enter the global markets and promote all

natural products worldwide.

_MISSION

• Pedro’s Natural Soap strives to be globally competitive and to do pioneering acts in artistry

and craftsmanship. We care for our name that is why we create good quality organic

personal care products and compensate us with value and profit to continue our unending

services to offer to the public.

• Pedro’s Natural Soap only uses the sophisticated equipment and resources available to

ensure that our product is keeping pace with today’s trend and offering satisfaction at the

market we serve to live.

• Pedro’s Natural Soap establishes lasting business and intellectual relationship with

customers for we believe that they are the lifeblood of the industry

• Pedro’s Natural Soap values its people in the workplace for we believe that they are the

backbone of the business.

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Reasons for starting the business

• The company started out as way of solving my own problem, finding soap suitable for my skin.

Although there are tons of soap products in the market it is very hard to find specific soaps that

I needed. Most soap nowadays has multiple ingredients that I don’t need and don’t necessarily

need to be there. Most soaps I needed were not offered in the Philippines. Through research I

found out that some of the soap I was looking for were full of chemicals, the products gives

what you are looking for but it also gives irritations and allergic reactions. From surfing the web

I stumbled upon an article that natural soaps are easy to create and there are no negative effects

of using it.

Description of product or service offered

• Pedro is an upcoming personal care business that aims to provide its customers with quality and

healthy products made from natural ingredients, starting with our line soap products, namely

Virgin coconut oil soap, Tea tree oil soap, Papaya soap, Aloe Vera soap, Rose soap Olive scrub

soap and Lavender soap.

Company’s value proposition

• From our farm to your homes, from our hand to your skin, we are proud to share Pedro soaps;

made from all natural ingredients proven to have health benefits.

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II.

INDUSTRY ANALYSIS

Pedro’s Natural Soap belongs to the manufacturing industry specifically in the personal care

segment. Personal care industry is in moderately fast value growth rate in 2016 than the

CAGR, which was made possible by the improvement in economic conditions and lower

unemployment rate. This led to an increase in consumption and spending, which spurred the

growth of the market. Despite the economic issues and the weakening of the Philippine peso,

the Philippines remained resilient and provided a healthy environment for personal care

products, which increased by 5% in current value terms.

The Philippines’ importation of cosmetics and personal care products declined by $9 million

in 2015, as local production continues to increase. According to industry insiders, imports

supplied an estimated 25% of total market. The revenue in the “Personal Care” segment

amounts to US$68m in 2017. The local manufacturers of personal care products use

whitening ingredients to address local and export demands. Philippine-made personal care

products are exported to other countries, primarily to the Middle East.

The demands for personal care products continue to grow as consumers become more aware

of the importance of health and hygiene. There are now also more products formulated for

young skin aimed at young consumers. The high regard of Filipino consumers for skin care is

reflected in the wide availability of various brands, and support for these from huge retail

channels such as supermarkets and department stores to smaller ones such as convenience

stores and sari-sari stores. Companies tap into different consumer bases through offering

extensive pack sizes, from huge long usage packs to smaller sachets for mass consumers.

Personal care products is expected to remain robust in the forecast period, with a

revenue expected to show an annual growth rate (CAGR 2017-2022) of 29.8 %

resulting in a market volume of US$252m in 2022. The industry is expected to

increase by a value CAGR of 3% at constant 2016 prices in the next five years,

personal care products has a positive outlook. This will be made possible by the

improved outlook for the country’s economic situation, as increases in public spending

will spur growth in consumer confidence and consumption. Furthermore, consumers’

sophistication is expected to improve further in the next five years; made possible by

the strong influence of social media not only on young consumers, but also on most of

the rest of the population. The tight competition between brands will also spice things

up, as promotional activities are definitely the way to attract consumers, spurring