SWOT Analysis and Product Cost Analysis

1 Running head: Course Project Deliverable #1

Course Project Deliverable #1

Praveen Kumar Golla

Sushmita Annadi

Yashwanth Kumar Reedy, Gagginepally

Management Accounting

Professor: KF Haines

Date of Submission: January 24, 2021

Ottawa University

2 Running head: Course Project Deliverable #1

Sushrutha Cosmetics

Introduction

Sushrutha Cosmetics is an organic skincare brand that manufactures a multipurpose face

and body moisturizing cream which is available in three different sizes for the customers in the

online market. The moisturizing cream is organic and protects the skin from drying out, the

nourishing formula absorbs quickly and instantly moisturizes.

The benefits of using the Sushrutha organic moisturizer are, it reduces the roughness of dry

to very dry skin, after just 1 application. Helps the customers to have noticeably smoother skin.

Product Description

The main aim of Sushrutha Cosmetics is to make a cheap, reliable, multipurpose, and

world-class moisturizer that can be used on any part of the body.

Sushrutha Face and Body moisturizer come in three different sizes for the customers. The

small tube is 6 fl. oz. which can be easily carried in the handbag or pocket. Another size is a

medium size of 16.9 fl. oz. comes in a well-packed container. The last size is a large size of 24 fl.

oz. which will be a good choice for a medium-size family.

Sushrutha face and body moisturizer is a completely organic product that is made from

herbs that are naturally found in the forests. This product is hundred percent vegan and all the

ingredients used are hundred percent organic.

Logistics

Logistics play important role in the success of the business. Here, in Sushrutha Cosmetics

we have the right logistics plan that helps in achieving the goal of reaching the target in production

and distribution of the products.

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Production, Storage, and Distribution

Sushrutha Cosmetics will have both production and warehouse at the same location and all

the products are stored in the warehouse until they are packaged and sent out after the order gets

created.

Distribution is handled from the warehouse based on the online orders received from

various online selling platforms. All the orders are delivered to the customer in USPS or UPS or

FEDEX based on the type of delivery selected by the customers.

Raw Material Transportation

All the raw materials are bought from the third-party companies and they are delivered to

the warehouse by the sellers and all the packaging boxes are also bought from the third party

company which is responsible for the delivery of the boxes to the Sushrutha warehouse.

Order fulfillment, Inventory Management, and Demand Planning

Sushrutha cosmetics will consume the services from a third party company that provides an

IT application for managing and overseeing Order fulfillment, Inventory management, and

Demand planning. Based on the analytic reports generated by the IT application production

planning and targets are determined in the organization.

Business Strategy

Sushrutha Cosmetics' business strategy is to produce a high-quality product with minimum

production cost with online customers as the target market. Choosing the online market decreases

the costs that involve logistics which are incurred if sold in the stores.

Initially to attract the customers and increase the market Sushrutha Cosmetics will provide

buy one and get the second one for free of cost. To gain trust from the customers Sushrutha

Cosmetics also provides a customer-friendly return policy.

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Responsibility Statement

Sushrutha Cosmetics, the organization behind the Sushrutha Multipurpose face and body

moisturizer, does not test on animals. We believe animal testing is not required to prove the safety

and effectiveness of our products, Sushrutha Cosmetics feels responsible towards the environment,

and the products of Sushrutha Cosmetics are one hundred percent plant-based and environmentally

safe.

Product Advantage Over Competitors

The product Sushrutha Moisturizer from the company Sushrutha Cosmetics is hundred

percent Organic and hundred percent Vegan which is made from herbs and plants. This product is

handmade, and no automatic machines are involved during the production phase of the product.

Competitors

For our product basically, we have 3 main competitors, Nivea, Boutique and Lubriderm,

but the products which are made in Nivea, Boutique and Lubriderm or not organic and they use a

lot of chemicals to prepare moisturizers, if customers use this product for long term then they may

have skin problems due to use of a lot of chemicals in the production of the moisturizers, these

organizations before getting the products into the market they test on animals to find out whether

these products are safe to use for human beings which may cause severe health issues to animals,

they even also use animal products in producing moisturizers which are not echoed friendly on the

other hand, our organization makes moisturizers using natural products with ingredients rose

petals, Alvera extract, almond oil, fresh avocado and water, all the products mentioned are

naturally originated from plants and these products are produced manually handmade, hence the

moisturizer from the organization is nature and echo friendly. (Saya L Jacob,2018)

Product preferences

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We choose this product mainly because, moisturizers are in great demand in western

countries , and we prefer to produce echo friendly nature-based moisturizers, whereas on the other

hand most of the moisturizers in the market are chemical based, by using these products for long

term, it may cause skin cancer and other side effects to the customers, moisturizers which are made

using chemicals by our competitors use lot of plastic for producing moisturizers which cause

damage to the environment, on the other hand the moisturizers which are made naturally without

using chemicals genuinely are very less in the market, by using naturally made moisturizers it will

not have any side effects to the customers, now a days, people are more interested and they are

buying the products which are made by natural products hence we prefer to produce echo friendly

and natural-based moisturizers, in our organization since the production is hand base , power

consumption and wastage of raw materials will be less compared to the products which are

produced by using machineries. (Schandra Purnamawati, 2017)

Expertise in the product

The main expertise of our product is we are from India and Ayurveda is an ancient way of

practicing medicine which purely made from natural herbs, hence our ancestors had a great

knowledge of what kind of herbs are used for different diseases and skincare our formula for

natural moisturizers is been originated from the ideas of Ayurveda, and our expertise is to prepare

moisturizer by mixing different natural ingredients in a proper ratio such that the final product

obtained has good moisturizing effects and helps skin to glow, on the other hand, our expertise is

marketing the products to customers we sell products online, to increase our sales in the market we

are promoting our products by giving offers like buy one get one free and providing the product for

very less cost when comparing to the costs of our competitors. (Ashok Kumar Panda, 2013)

Product Selling

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To sell our products we mainly concentrating the customers who prefer products which are

made naturally, but in the market when we go for organic naturally made products they are very

costly which cannot be afforded by financially middle and lower class people hence we are making

natural moisturizer which low cost and high quality when compared to our competitors, we are

mainly targeting financially lower and middle-class American families to buy our products, further

if the demand to our product increases we may provide a lot of offers and reduce the price of the

product such that a lot of customers can buy our product, and we can expand our market.

Manufacturing and Raw Materials

Sushrutha Moisturizer is a blend of many organic products like rose petals, aloe vera gel, almond

oil, avocado, and water. We are not planning to use any machinery as the product is purely

handmade, In the initial stages, the raw materials needed for the product are to be outsourced from

local farmers and other small-scale industries which produce organic materials. Our company's

main motive is not to encourage animal testing and use 100% vegan products. (FreshBooks,2020)

This way, we can contribute to the environment by producing an eco-friendly product that gives

excellent benefits to both customers and the environment. In the long run, based on the profits and

company's growth, we plan to grow the raw materials in-house. The plan is to lease space for

office, production, and storage. (Skin Care Products,2021)

Funding and Staffing

The initial investments include personals funds, Bank Loan and investments from

investors. We plan to start the business with ten employees as mentioned below:

Marketing, Outreach & Sales

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As this will be a brand-new product in the market, we will need someone to market our

product and sell the new product with innovative ideas. Hence, we will hire one full-time employee

and one contractor as Marketing specialists. (GowthamN, 2020)

Inventory & Accounting

To keep track of the inventory and maintain financial records of purchases, sales, profits, loss,

taxes, etc., we will need to hire an accounting specialist as a full-time employee.

Front desk

To monitor the office's daily routine and respond to any inquiries regarding the product at

the office, we will need a full-time employee at the front desk.

Customer service

As we anticipate minimum sales in the initial stages, we will need a customer service

representative to answer any questions and inquiries about the product and also take orders from

the customers over the phone. This representative will be hired as a contractor.

Production and storage

As the product is handmade, we will need human resources to support and maintain the

production. For this purpose, we will need to hire four contractors and one full-time employ

References

Ashok Kumar Panda. (2013). Concept of Beauty and Ayurveda medicine, ResearchGate,

Retrieved from

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https://www.researchgate.net/publication/283507695_Concept_of_Beauty_and_Ayurveda_

Medicine

FreshBooks. (2020, September 30). How to Start a Makeup Business: 10 Simple Steps. Retrieved

January 25, 2021, from https://www.freshbooks.com/hub/startup/how-to-start-a-makeup-

business-in-10-steps

Garrison, R., Noreen, E., & Brewer, P. (2017b). Managerial Accounting (16th ed.) [E-book].

McGraw-Hill Education. https://ezto.mheducation.com/ext/map/index.html?

_con=con&external_browser=0&launchUrl=https%253A%252F

%252Flms.mheducation.com%252Fmghmiddleware%252Fmheproducts

%252FlmsCloseWindow.htm#/activity

Gowthaman, N. (2020, June 23). These women entrepreneurs are taking Ayurveda to the global

market through their products. Retrieved January 25, 2021, from

https://yourstory.com/herstory/2020/06/women-entrepreneurs-ayurveda-global-market-beauty-

food

Saya L Jacob. (2018). Cosmetics and Cancer. JNCI Cancer Spectrum Retrieved from

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6649728/

Schandra Purnamawati. (2017). The Role of Moisturizers in Addressing Various Kinds of

Dermatitis. Clinical medicine and research. Retrieved from

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5849435/

Shopify. (n.d.). Shopify Encyclopedia. Shopify. https://www.shopify.com/encyclopedia/logistics

Skin Care Products. (n.d.). Retrieved January 25, 2021, from

https://www.entrepreneur.com/businessideas/skin-care-products

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