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BUSINESS PLANRevivor de SoieRevivor de Soie
BUSINESS PLANConfidentiality formationprovidedbyin this business plan is confidential; therefore, reader agreesnot to disclose it without the express written permission of .It is acknowledged by reader that information to be furnished in this business plan is in allrespects confidential in nature, other than information which is in the public domain throughother means and that any disclosure or use of same by reader, may cause serious harm ordamage to .Upon request, this document is to be immediately returned to .SignatureName (typed or printed)DateThis is a business plan. It does not imply an offering of securities.Revivor de Soie
EXECUTIVE SUMMARYLeSoie is a leading personal care products provider offering 700 luxury, natural/organic,hand-crafted personal care products all made in Belgium. LeSoie develops, manufactures andmarkets its products worldwide. All products from the ingredients to the packaging are inspiredby nature. LeSoie uses only natural ingredients in its products, does not test cosmetics onanimals and ensures all products are safe for the environment. The Company was founded in2011 by Mohamad Abd El Azeem and has quickly achieved great success. LeSoie currentlyhas six franchises with another 14 planned. The Company’s long-term objective is to open 25franchises per year.The Company’s latest innovation is the newly developed, Revivor de Soie Serum. For theintroduction of this special product LeSoie plans to establish a separate Limited LiabilityCorporation. This newly formed company will be given exclusive rights from LeSoie todistribute Revivor de Soie Serum worldwide. The new company will carry all costs associatedwith manufacturing, marketing and distribution as well as record all revenue and profitsassociated with Revivor de Soie.ProductRevivor de Soie Serum is an organic age reversing serum with all natural ingredients. Revivorde Soie Serum was launched at the BeautyWorld Middle East 2015 Exhibition in Dubai.CRAFTDuring the show people were able to witnessNATUREa demonstration of how the serum works inINNOCVATIONjust 5 minutes.HONESTYARTRevivor de Soie
BUSINESS PLANMarketThe total anti-aging market for products and services will reach a value of 345.8 billion by 2018with compound annual growth rate (CAGR) of 5.7% between 2013 and 2018. Looking only atthe product segment, the market is expected to grow at a CAGR of 5.2% between 2013 and2018 and reach an estimated market value of 284.6 billion.1Summarize future plansThe Company has identified the following as key sales objectives for Revivor de Soie Serum;achieve sales of 8 million units during the first year, increase this to 16 million in the secondyear and attain sales of 24 million units in year 3.Financial InformationProject revenue will start from about 140 million in a year and will increase to 500 million tothe third year and this will yield the net income of about 250 061,191,197YEAR 1SalesCost of Sales1YEAR 2Gross ProfitYEAR 3Administrative & Selling expensesAVERAGENet m source prnewswire&utm medium pr&utm campaign Skin Care ProductsRevivor de Soie
TABLE OF CONTENTSEXECUTIVE SUMMARY. 3COMPANY DESCRIPTION. 7PRODUCT OVERVIEW . 11Revivor de Soie Description . 11Launching . 12Target Audiences. 12MARKET ANALYSIS . 13Trends . 13Target Market . 14Customers . 18Portrait: . 19Trends: . 19SWOT analysis . 20MARKETING & SALES . 21Sales Strategy . 21Positioning . 22Channels: . 22Marketing strategy . 23Operational plan . 24Sales. 24Revivor de Soie
BUSINESS PLANAssumptions . 24Sales Forecast . 24Expenses . 25Costs of Sales . 25Management Fee . 25Marketing Costs . 25Administrative & Selling expenses . 26ORGANISATION & MANAGEMENT . 27Organizational Structure . 27Ownership Information. 28Advisory Board . 28Milestones . 29FINANCIAL PROJECTIONS . 30Investments . 30P&L Forecast . 31Cash Flow Statement . 32Appendices . 33Cash Flow Statement (monthly). 33Market and Competitive Product Research . 40Revivor de Soie
COMPANY DESCRIPTIONMohamedAbdElAzeemfoundedLeSoie from scratch creating a strongbrand with 700 different luxury mural andorganic personal care products that meetthe needs of consumers of all ages.LeSoie cosmetics are differentiatedthrough various elements like products,innovation, look, luxury, natural, quality,ingredients, personalization and price.LeSoie currently has six franchises twoMohamed Abd El path)in Dubai, two in Abu Dhabi and one in AlAin. It plans additional 14 franchises in Dubai, Abu Dhabi and Al Ain. It has also signed an areadevelopment of 5 franchises in Jeddah/Saudi Arabia which the development of them hasstarted already. Kuwait and Jordan is planned to start in the 3rd quarter of 2015. It also sellsproducts in Japan, China and Tanzania. LeSoie has ambitious expansion plans globally – Mr.Abd El Azeem (CEO) aims to open 25 outlets a year,We don’t sell products but weconcentrating on the Middle East, Eastern Europe, andsell rather a great experience ofcountries such as China, Indonesia, Malaysia, India andlife!the African continent.Allproductsaremanufactured in the heart ofEurope – the Kingdom ofBelgium. The small town isRevivor de Soie
BUSINESS PLANlocated close to the French, Walloon and Flemish borders. LeSoie uses only naturalingredients – cosmetics aren’t tested on animals and are safe for the environment. Someproducts are made entirely by hand, as the Company is dedicated to keeping manufacturingclose to traditional, natural methods.LeSoie values have roots in the late 19th / early 20th century Art Nouveau artistic movement,which brought the natural world back asan inspiration for arts and crafts.With roots in Belgian Art Nouveau style,Just like 100 years ago, LeSoie products areLeSoie is delivering comfort, relaxation,not only safe and good for the body, but areluxury feel and timeless elegance -beautifully designed and functional.inspired by nature. We offer a range ofnatural, handmade, personal care products, brought to you from the heart of Europe.LeSoie is delivering Affordable Luxury, Elegant, Natural, Organic, Handmade Personal Care,SPA and Soap products from the heart of Europe. Collections of 700 fresh, fruity, herbalproducts for every family member with unique ingredients (camel milk, mare’s milk, honey,dead-sea minerals and green-tea) made to protect the full body.Brand EssenceJust like our cosmetics, the essence of our brand consists of many special elements whichtogether form the magical experience LeSoie promises all our customers. LeSoie isdelivering Natural, Handmade personal care products brought from the heart of Europe thatprovide comfort, relaxation, elegant and luxury appeal all inspired by natural and stillAFFORDABLE!Revivor de Soie
DifferentiationWe strive to create products that are beautiful and bring a very special experience to ourcustomers and everybody around them. The quality of natural, organic ingredients and usage ofessential oils, our innovative approach, made in Belgium with the highest European quality,unique products targeting various markets, handmade products crafted by artists, personalizedproducts and competitive pricing are all reasons of why LeSoie is different!ProductsWe care about our products just as we care about our customers. We do not have exclusiverelationships with anyone, because everybody deserves good personal care. Made-to-measuresolutions and high-quality service are our standard practice.FranchisingThrough a flexible franchise business model of 3 various franchise options; LeSoie investorscan select the most suitable investment for them.Revivor de Soie
BUSINESS PLANRevivor de Soie competitive advantages:Special ingredients and formulationNatural fragrancesNatural peptide from the cone snail, with aOud and Mustic are two of the Arabiansignificant smoothing effect on wrinkles, and aessences born in the desert of the East withhigh concentration of hyaluronic acid, that has antheir sweet, woody, aromatic and ration of the skin. This serum gives a verysmooth, pleasant and silky skin feel thanks to acorn starch added to the formulation.Halal qualityPersonalized productsTop quality in everything within supply chain fromOwn name and logo to personal care productsplanting the tree up to the moment when thethat carry Customers identity and taste in theirproduct appears in the Customer hand.fragrance, colour, and luxurious feel.Revivor de Soie
PRODUCT OVERVIEWRevivor de Soie DescriptionRevivor de Soie age-reversing serum is an extremeluxury age-targeting treatment that acts as an instantline relaxer. This natural serum has a very highconcentration of active ingredients, such as a naturalpeptide from the cone snail, with a ntration of hyaluronic acid, that has an intensere-plumping effect and maximum hydration of theskin. This serum gives a very smooth, pleasant andsilky skin feel thanks to a corn starch added to theformulation. This also gives a matte finish effect onthe skin. Light therapy stimulates the anti-wrinkle(anti-aging) effect of the serum. The skin is stimulated by application of light waves at the heartof the skin. The light waves reach the mitochondria to become transformed into apt, which isenergy, directly usable by the cells. Eachwavelength resolves a skin problem. Herearedledlightenablesdeep-downrejuvenation into the dermis. Due to theRevivor de Soie is LeSoie latest innovativeproduct – an organic exclusive age reversingenergy boost of the cell functions, thisresults in: Increase in the production of collagen & elastin Increase in the number of fibroblasts Reorganization of the skin’s support fibersRevivor de Soieserum with natural ingredients
BUSINESS PLANLaunchingThis product has been launched on 26-28 May 2015 at the Beauty World Middle East 2015Exhibition in Dubai where people were able to try the product, witness the effectiveness of theproduct and distributors were able to sign-up for exclusive distribution of this product. During the3 days of the event and without any advertisement other than the show itself, 325 units of theserum were sold.Target AudiencesToday’s anti-aging market is expanding to incorporate diverse consumer concerns. Wrinkles areno longer considered the only sign of aging. Age spots, hyperpigmentation, dry skin, unevenskin tone, dark under eye circles and even hair damage are now topping lists of anti-agingconcerns among consumers so products have multiple uses rather than just for wrinkles. Theprimary target audience for Revivor de Soie Serum will be middle age men and women who areconcerned with their appearance, desire to fight the signs of aging and who have the disposableincome to afford anti-aging products. These consumers are searching for natural, non-surgicaland over the counter products that will diminish the signs of aging such as lines and wrinkles,sagging skin, dark spots, uneven skin tone and dullness.Revivor de Soie
MARKET ANALYSISTrends-Increasing Demand for Natural and Organic Ingredients.The constant demand for new beauty products is leading to exciting new innovations in UVabsorption, natural products, multifunctional ingredients and anti-aging hair care products.-UV AbsorbersFor a population increasingly concerned with skin cancer and preventing signs of aging, UVabsorbers are being more readily incorporated in all kinds of products from sprays to lotions,makeups, serums, creams and gels.-Natural ProductsIn anti-aging and beauty trends, the desire for more natural ingredients is one of the fastestgrowing around the world.-MultifunctionalBusy, cash-strapped consumers are demanding smarter products that provide more than onebenefit. As a result, there is increased focus in the industry to create products that perform atleast two functions.Revivor de Soie
BUSINESS PLANTarget MarketThe anti-aging market can be characterized as vast and rapidly growing, fueled by the aging ofthe baby boomer population and increasing wealth, disposable income and anti-aging concernsparticularly in newly developing countries. The total market for antiaging products and servicesis estimated to reach 345.8 billion in 2018 which represents a compound annual growth rate(CAGR) of 5.7% between 2013 and 2018. Looking at the product segment, the market isexpected to grow at a CAGR of 5.2% between 2013 and 2018 and reach an estimated marketvalue of 284.6 billion.Revivor de Soie Serum will be targeted at developed and developing countries with largepopulations and that also have a high percentage of aging consumers who have the desire andincome to purchase anti-aging products. Close to 200 countries have been identified within ourtarget market however, we will concentrate our efforts first on our top tier countries. Theseinclude Japan, U.S., China, Russia, India, Saudi Arabia, Brazil, Nigeria, UAE and France. It isestimated that nearly two-thirds of our revenue will come from these 10 countries and we willconcentrate our marketing and sales efforts here first.Revivor de Soie
Competitive AnalysisThe market for anti-aging serums is extremely competitive. A Google search for anti-agingserum provides 2,650,000 results. We refer to TotalBeauty.com’s list of top 16 anti-agingserums to provide an overview of the key competitors. Based on this list, the market can bedivided into lower price (under 40), mid-price ( 40 to 80) and high price ( 80) with themajority (13 of 16) falling into the low and mid-price range. The 110 suggested retail price anddiscounted 55 suggested retail price for Revivor de Soie Serum puts it into the mid to highprice range category. The Company will need to distinguish Revivor de Soie from lower pricedproducts by establishing the product as a premium brand that provides significant value toconsumers. Highlighting the exotic and natural ingredients, special formulation and handcrafting will be important in conveying the value of the product. The Company must alsodemonstrate the product’s advantage over other premium priced serums. Again an emphasison hand crafting, natural and exotic ingredients as well as the brand essence will set Revivor deSoie apart.TotalBeaurty.com 16 Best Anti Aging SerumsRevivor de Soie
BUSINESS PLANNumberProduct Name1Nu Skin AgeLoc Future Serum2Sweet Science Self BlendedSkincare Vitamin C SerumComplex Kit3ElanVeda Skin Renue4Dr. Andrew Weil for OriginsMega-Mushroom Skin ReliefAdvanced Serum5SkinCeuticals CE Ferulic Serum6Olay Regenerist RegeneratingSerum7Prescriptives Super LinePreventor XtremeRevivor de SoiePriceSizePositioning 212.251 ozPatented ingredient technologypromotes youthful-looking skin. 491 ozA fast acting, quickly absorbedVitamin C Serum with a light bloodorange citrus scent. A favoriteamong makeup artists because itfades spots & makes skin glow! 45.670.5 ozNatural skin care and skinrejuvenation is easy with ourpopular all-natural, anti-aging,Ayurvedic essential oil blend. Enjoyfresh, hydrated, and youngerlooking skin! 711.7 ozThis potent serum is fortified withSea Buckthorn plus skin-repairingReishi, irritant-soothing Chaga andCordyceps mushrooms – long usedin Chinese medicine to heal,promote longevity and improvehealth. Used faithfully, skin istransformed from reactive toresilient and from stressed tosoothed to reveal a healthier, moreradiant appearance 1571 oz 22.991.7 ozVisibly improve the appearance ofwrinkles in just 2 weeks withRegenerist Regenerating Serum. 841.7 ozA super cocktail of targetedantioxidants that diminishes thelook of lines and wrinkles by up to54%A daytime antioxidant serumdelivers advanced environmentalprotection, while reducing theappearance of fine lines andwrinkles
NumberProduct NamePriceSize8PositioningPatricia Wexler M.D.Dermatology MMPi SkinRegenerating Serum 653.4 oz9Estee Lauder PerfectionistWrinkle Lifting/Firming Serum 681 ozDramatically reduces the look oflines, wrinkles10Boots No. 7 Protect and PerfectBeauty Serum 20.991 ozThis fragrance-free beauty bagmust-have contains antioxidantsand pro-retinol to help retain theelasticity of the skin; it’s designedto help your complexion and wardoff the telltale signs of aging skin.11Paula's Choice Resist IntensiveWrinkle-Repair Retinol Serum 341 ozLaughing. Squinting. Living. It allleaves its mark. This retinol-richserum increases collagen, smoothswrinkles, and softens fine lines.12Burt's Bees Naturally AgelessIntensive Repairing Serum 14.99.45 ozVisibly reverses the lines, sink andsagBoosts skin's own regenerativepowers to diminish the visible signsof agingHelps smooth the appearance offine lines and wrinklesFacial treatment with pomegranateoil, a powerful antioxidantEvening primrose and borage oilshelp build a moisture barrierHelps fight free radicals that breakdown collagen and elastin13RoC Retinol Correxion DeepWrinkle SerumRevivor de Soie 18.891 ozThis anti-aging formula is clinicallyproven to help visibly reduce bothfine lines and deep wrinkles.
BUSINESS PLANNumberProduct Name14Mary Kay TimeWise EvenComplexion EssencePriceSizePositioning 371 ozHelps reduce the appearance ofdark spots and freckles to restoreskin's natural, even tone.Clinically shown to work on all skintones.Oil- and fragrance-freeClinically tested for skin irritancyand allergy.Suitable for sensitive skin.Hypoallergenic.Non-comedogenic.15Estee Lauder Advanced NightRepair Serum 621 ozFights all key signs of aging. The #1repair serum16Philosophy When Hope Is NotEnough Firming and Lifting Serum 431 ozOur lightweight, oil-freeantioxidant and peptide serumhelps reduce the first signs ofaging and protect skin against thefuture signs of aging. contains apowerful network of antioxidantsthat synergistically works togetherto protect the skin against futuresigns of aging. helps improve theappearance of fine lines and roughtexture, brighten and hydrate theskinCustomersModern consumers want cosmetics with natural ingredients that are safe for them and safe forthe environment. At the same time, beauty products have to be designed to bring pleasure to allRevivor de Soie
the senses, they should look good on the shelf in the bathroom; they should give the feeling ofuniqueness to their users. They need to feel special.Portrait:-Middle aged married woman or-Senior executive (corporate)-Lives in the suburbs-Belongs to the middle class-Concerned for her image-“doesn’t have enough time”Trends:-Rising Global Aging Population2-Rising Consumer sentiment index3The consumer sentiment index reflects trends in unemployment and disposable incomes. Whensentiment is high, consumers are more likely to purchase this industry’s goods. This driver isexpected to increase, creating a potential opportunity for the serum.-Demand from beauty, cosmetics and fragrance storesBeauty and cosmetics stores create strong demand for the industry’s products, especially asthey rise to prevalence and favor among consumers. As todays population switch to this type ofretail format, away from department stores, this driver will increase, causing industry revenue togrow which this driver is surely going to increase.-Demand from department .wikispaces.com/file/view/32562 Cosmetic %26 Beauty Products Manufacturing in the US IndustryReport%5B1%5D (1).pdf3Revivor de Soie
BUSINESS PLANThe level of demand derived from this key market segment has a strong influence on theperformance of the industry. However, some department stores are losing ground tocompetitively priced mass merchandisers; so this distribution channel needs to be taken care ofand is being formatted to drive sales.SWOT analysisOpportunitiesStrengths--Competitive price- Concentration- InnovationExclusive product rights-Engage more with targetmarket- Increase online presence- A growing trend in theindustryThreatsWeaknesses- Not much online presencecompared to competitors- Weak brand image- High advertising costsRevivor de SoieWide range of substitutebrands- Large number ofcompetitors in the marketRising costs ofcommodities
MARKETING & SALESSales StrategyWe will sign-up distributors in each of our target regions to bring the product to market. We willleverage the existing LeSoie customer retailer franchises. Our target is to keep this product for2 to 3 years where to sell 8 million bottles of this serum on the first year of launching, doublethis number in the second year and keep the same number of the first year for the 3rd year andwe have all what it take to achieve that:InnovationTotal new innovation in the cosmetics industry which it works, safe to use, luxuriesand affordableConcentrationWe are concentrating on distributing 1 main product and its combination with 3more products which makes our target very accurate and very easy to achieveCompetitiveThis kind of product are very limited in the market, highly priced and containPositioningharmful chemical ingredients, whereas, our product is organic with naturalingredients putting us in a very comfortable market position.CompetitiveThis product is offered at 110 USD and discounted to 55 USD good to be used forprice2 months. This is very competitive price compared to similar products (average150USD for 30ml)ClearanceLanding page dedicated to this product made in 24 different languages coveringalmost the whole world and every one in his/her languageMarketingWe are very much concentrating on huge marketing campaign to the top 50countries to create the needed brand awareness. Revivor de Soie
BUSINESS PLANPositioningCompany will offer to customers:-Competitive product (organic, natural and innovative)-Competitive price (55 USD)-High distributor commission rates-Reasonable MOQ per order starts from 1,000 pieces up to 10,000-Exclusive country distribution-Marketing and promotional materials-Dedicated online page in their own language-Training support-Helping in dedicated market events and exhibitionsChannels:We see that competitive products are sold through a variety of channels and Revivor de SoieSerum will follow a similar strategy to maximize its reach with a focus on channels best suited tomid to high price products. A multi-channel approach that includes online via sites such asSephora.com, DermStore.com and Amazon.com, through med spas, day spas, dermatologyclinics, estheticians and higher end retail outlets should be included to gain maximum exposureamong the target audience.Revivor de Soie
Marketing strategyGiven the extremely competitive nature of the anti-aging serum market, it will be critical toexecute a marketing strategy that sets Revivor de Soie Serum apart from the competition andestablish the brand as high-end, natural anti-aging product. Key aspects of the marketingstrategy are outlined below. Branding developed to specifically appeal to target audience and communicate theessence of Revivor de Soie Serum (natural, effective, luxurious).Leverage current LeSoie customers with special Revivor de Soie Serum trial offersCross-promotions - special Revivor de Soie Serum promotions when a LeSoie product ispurchasedCelebrity spokespersons relevant to each country or region to endorse and promote theproductExhibit at Tradeshows – both to industry representatives and others direct to consumersUtilize videos to demonstrate product results and offer testimonialsSampling. Send samples to med spas, day spas, dermatology offices, estheticiansDirect mail with coupon and/or trial size samplesDemonstration events at shopping mallsSecure product usage in select beauty makeover programsPlace ads in luxury, life style magazinesPPC on relevant search engines and social media networksSocial media. Select relevant social media networks where target audience spends time.Create a strong and active presence.QVC or similar programs in relevant countriesRevivor de Soie
BUSINESS PLANOPERATIONAL PLANSalesAssumptionsSale price to end usersSale price to end users afterdiscountSale price to distributorsDiscount to end usersYear 1Year 2Year 3 110.00 121.00 133.10 55.00 60.50 66.55 17.50 19.25 21.1850%50%50%1. Sales price has been increased by 10% after each year2. After the research over cosmetics skin care products industry, the market share required tomeet targeted sales will be achieved quite easily seeing the product quality and the price atwhich the company is recommending to sale the product to end users. Below is the marketshare of skin care as per survey conducted for FY 2014:ParticularsYear 1Year 2Year 3Market share required to achieve targeted sales0.60%1.27%2.03%Sales ForecastQuantity TargetedYear 18,000,000Year 216,000,000Revivor de SoieSalesYear 324,000,000Year 1Year 2Year 3 140,000,000 308,000,000 508,200,000
ExpensesCosts of SalesCost of sales is 7.49 per bottle and will increase by 5% each year.Table 1. Costs of Sales per UnitParticulars10.00Cost/8.00unit6.00Packaging 1.0664.00Print 0.3142.00Transport 0.181-Ct. Packaging 0.500Product 5.174Transport 0.181Custom 0.065Storage 0.0148.267.877.492.361.750.53YEAR 12.151.9
with manufacturing, marketing and distribution as well as record all revenue and profits associated with Revivor de Soie. Product Revivor de Soie Serum is an organic age reversing serum with all natural ingredients. Revivor de Soie Serum was launched at the Beauty World Middle East 2015 Exhibition in Dubai.
