A Business Plan on Skincare Products

Phoenix
3/2/2025
An Assignment Submitted in Partial
Fulfilment of the Course
Requirements for the BBA Course of
THM 211: Hospitality Managerial
Communication

Submitted to,
Dr. Muhammad Shoeb-Ur-Rahman
Associate Professor

Submitted by,
Group “Phoenix”

Department of Tourism and Hospitality Management

Last Date of Submission: September 24, 2023

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THM-211: Hospitality Managerial Communication, BBA 16,
2nd Year 1st Semester
Dr. Muhammad Shoeb-Ur-Rahman
Associate Professor
Department of Tourism and Hospitality Management, University of Dhaka

Group Name: “Phoenix”

Class Class Term

SL ID Name Presentation
Case Performance Paper

01 003 Ayesha Rahman

02 004 Niladri Bhowmik

03 006 Zaima Islam

04 010 Dipanwita Kabir

05 015 Shaharah Ahmed

06 054 Madiha Chowdhury

07 059 Sanjida Rahman

08 077 Numa Fatima

Md. Omar Sayed

09 079
Faysal

10 091 Nazifa Zaheen

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 Table of Contents

1.0 Introduction……………………………………………04
2.0 Our Vision & Objectives.……………………………...06
3.0 About Our Brand.……………………………………...08
4.0 Sales & Profit......................…………………………...09
5.0 The Science Behind Our Products..……………...……15
6.0 Consumers................................................……………..18
7.0 Marketing.……………………………………………..19
8.0 Challenges......................................................................21
9.0 Conclusion......................................................................24

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1.0 Introduction
The Advantages of a Bangladeshi-Made Skincare Line:

1. Specially Formulated Products for Bangladeshi Skin and Climate:

• Tailored to Local Needs: Bangladeshi skin faces unique challenges every day. Which includes high
humidity because of its geological location, intense sun exposure, pollution, and varied skin types. The
skin care products we import from other countries don't really focus on all the concerns. A local brand
can formulate products specifically to address these concerns. Like managing excess oil in humid
weather, combating hyperpigmentation from strong sun, and protecting against environmental
pollutants.

• Our formulas are specially designed to be lightweight and non-greasy hence ideal for the humid
climate of Bangladesh.

• Locally Sourced Ingredients such as turmeric, neem, aloe vera, and rice extracts helps creating
products that resonate with the consumers. Utilizing these local ingredients will help us to leverage
our country's rich botanical heritage while reducing transportation costs. Also, the reduced production
costs which makes our products more affordable.

• Addressing Specific Skin Concerns of Targeted Consumers: Skin problems such as Melasma, acne,
and sun damage are some of the common issues Bangladeshis face to which a local brand can develop
targeted solutions to.

2. Affordability and Accessibility:

• Reduced Import Costs: Manufacturing within Bangladesh eliminates the import duties, taxes and
shipping costs that comes with importing products from other countries. This allows us to come up
with competitive pricing making our high-quality skincare more accessible to a wider range of
consumers.

• Local Distribution Networks: Establishing a strong local distribution channel ensures that the
products are readily available in urban and rural areas thus reaching a broader customer base. Easier
access to customer service as the research, development and production is done in Bangladesh. It
creates an opportunity to give proper customer service.

3. Cute & Appealing Packaging:

• Brand Recognition: Our eye-catching and culturally relevant minimal packaging can create a strong
brand identity by appealing to the target audience.

• Bangladeshi motifs to resonate with the local consumers is incorporating. The vibrant warm tone
packaging of our products attracts our consumers.

• Social Media Appeal: Cute packaging attracts consumers as well as is highly shareable on social media
platforms which will attracting new consumers, driving organic marketing and creating brand
awareness.

4. Sustainable and Ethical Practices:

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• Eco-Friendly Packaging: Using recycled or biodegradable materials for packaging shows our
commitment to environmental sustainability. It is also increasingly important to consumers as people
are being very aware of the effect that products have on our nature.

• Refillable options can also be explored as we are currently working on it.

• Ethical Sourcing & Production: Supporting local farmers and suppliers will promote fair trade
practices and contributes to the local economy. Transparent as well as ethical manufacturing processes
helps us in building trust with our consumers.

• Carbon Footprint: Local production of our products minimizes transportation distances which helps
to reduce the brand's carbon footprint.

• Providing Support to the Local Economy: By manufacturing the products in Bangladesh as it creates
job opportunities for its local people.

5. Cultural Relevance & Trust:

• Building Trust: Consumers are more likely to trust a brand that operates in their own country as well
as understands their specific needs and cultural context.

• Using the Bangla language in its branding and marketing enhances trust and connection between
business and consumers.

• Cultural Sensitivity: Avoiding potentially controversial ingredients & marketing messages that may
be culturally insensitive. Marketing that reflects the positive aspects of Bangladeshi life.

• National Pride: "Made in Bangladesh" skincare line can help foster national pride among the people
also support local businesses that provide ingredients and contribute to the economy.

Specific Advantages of our Products:

• Moisturizer: The lightweight and non-greasy formulas are enriched with SPF ideal for the humid
weather of Bangladesh.

• Sunscreen: High SPF and broad-spectrum formulated to pro prevent hyperpigmentation of skin.

• Cream-to-Foam Cleanser: Gentle on skin yet provides effective cleansing by removing any impurities
from skin without extracting its natural oil.

• Face Wash: Formulated in a way that is suitable for daily usage of consumers and addresses specific
skin concerns of people such as acne or oily skin.

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2.0 Our Vision and Objectives
Skincare has not been an important focus in the lives of the women of the Indian subcontinent,
especially Bangladesh. Even two generations ago, our grandmothers used only pure, unfiltered
coconut oil on their skin and it did work oh so well in their favor, since they were mostly confined to
their homes, engaged with domestic chores. Our mothers’ generation went a bit more commercialized,
replacing oils with Tibet pomade and “snow powder”, but nothing more than mere moisturization and
a fair glow to their mostly dusky complexion. A minute, but noteworthy change of skincare regime can
be noticed in that era where hyped market products were gradually marking their places on vanity
tables.

However, A more visible transition was noticed within the millennials, along with generation z when it
came to skincare. They were and still are not satisfied with basic ingredient-based products that will
just act as a curtain to dry, unhealed skin. A contributing factor to this phenomenon comes from a
drastic change in lifestyle. Every day, women of the younger generations stay outside of their home to
attend lectures, perform corporate duties and many others, on a 9-5 basis. During a typical weekday
scenario, intracity traffic requires them to sit in the scorching heat for hours, which ends up producing
sweat. Additionally, With the ever so increasing air pollution, dust starts to settle down on the outer
skin layer. Consequently, most of our working women end up having sweaty, tired skin that constantly
collects dirt. All of these factors together have compelled young adults of today in adapting a skincare
routine.

And so, they did. The present skincare market is saturated with products, both local and foreign brands
that promise to take care of your skin like a cosmetology expert. A critic might argue that it is absurd
to start a new skincare line in such a concentrated market. However, a brand originating from the USA,
UK or even Korea, a country considered to be the best in this game will have a hard time analyzing
what a specific country’s audience might need in their creams and cleansers. This specific reasoning
has worked as an inspiration for us to start Phoenix skincare, because nobody will understand our skin
like we do.

Our tagline “Phoenix skincare; rescue your skin from the ashes” takes its origin from Greek mythology,
where Phoenix is a mythical bird that burns itself on a funeral pyre, then rises from the ashes with
renewed youth to live through another cycle. Our products also, in a similar way, intend to rejuvenate
your skin from the embers of a tiring day, and allow another glow cycle of freshness that is free from
sweat, pollutants, and a merciless outdoor heat.

Phoenix skincare might have a stunningly magical story as its name of origin, but our journey required
just as much burning as the mythical creature itself went through. Stepping in such a brutally
competitive market required surveys, research work and purely scientific backup. Yet, the biggest
question was still left unanswered, “Would customers be willing to use our products?” Afterall, it
seemed like the sector was overflown through countless wellness companies.

As a baby step, our first decision was to collect relevant data to paint a proper picture of the potential
customer base.

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The very first survey was based on the
purchase habits of women who use Percentage of Sales
skincare products. It was found that the Foreign Brands
majority of customers preferred to trust 10%
imported brands, a smaller percentage 30% Locally Made
60%
used local products and the rest were
neutral about their choice. Neutral about Country of
Origin

Moreover, the second survey displayed that about 63% of

Percentage of Habit women were interested, but irregular about their skincare
routine.
12% While interviewed later, these came out as the most
25% common responses: create box
63%
● Too expensive for daily consumption
● Lack of instant availability
● Creates stickiness and discomfort
Irrelgular about Skincare
Regular about Skincare ● Not suitable for hot weather.
Does not like Skincare

Based on our potential customers’ wants from their products, our founders worked relentlessly to
create a skincare line with the expert advice of top-class dermatologists in the country. The target was
to create products

that were affordable, efficient and just as effective as any high-end luxury item. After innumerable
trials, errors and experiments, on January 1, 2022, our brand successfully launched its first products;
a cream to foam face cleanser, an ultra-light moisturizer and a mineral sunscreen. In the first year,
Phoenix received positive feedback from the market and was well received by customers. Just within
three years of our official brand launch, Phoenix ultra-light moisturizer had already become a bestseller
and most importantly, a fan favorite. The skincare line was now available in both retail shops and our
official website, www.Phoenixbeauty.com.

Overwhelmed by its success, the brand has decided to make the debut of two new products, a vitamin
C enriched serum and a makeup cleansing balm.

Phoenix skincare’s journey as a newcomer in a cutthroat industry is a testament to the evolving skin
care needs of today's women. From its inception, the brand focused on localized product development,
and created formulas that aimed to resolve the unique challenges faced by the people of this region.

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3.0 About Our Brand
Phoenix skincare has a limited but strong product range. The morning starts with our hydrating cream
to foam cleanser that strips away nothing but bacteria, dead skin cells and any residual product from
last night. To kickstart a hectic day, we suggest that you start your regime with our best-selling ultra-
light moisturiser that will lock in moisture without contributing to any excessive oil production. For a
final touch up, put on Phoenix mineral sunscreen SPF50, your ideal sun barrier partner.

We aim to provide our clients with the most affordable prices, and that is why all our products fall
under BDT 800 only. (ekhane make a colourful box with the prices and attach the graphs)

• Ultra-Light Moisturizer: ৳700

• Hydrating Cream To Foam Cleanser: ৳599
• Hydrating Mineral Sunscreen SPF50 Sunscreen: ৳799

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4.0 Sales & Profit
Key Business Assumptions

Product Range:

• Ultra-Light Moisturizer (Best Selling Product)

• Hydrating Cream to Foam Cleanser
• Hydrating Mineral Sunscreen SPF50

Selling Prices:

• Ultra-Light Moisturizer: ৳700

• Hydrating Cream To Foam Cleanser: ৳599
• Hydrating Mineral Sunscreen SPF50 Sunscreen: ৳799

Unit Economics of Each Product

Ultra-Light Moisturizer

• Selling Price: ৳700

• COGS (Cost of Goods Sold): 30% of selling price = ৳210
• Gross Profit per Unit: Selling Price - COGS = ৳700 - ৳210 = ৳490
• Gross Margin: (Gross Profit / Selling Price) × 100 = (490 / 700) × 100 = 70%
• Net Profit per Unit (after OPEX): Operational expenses (marketing, salary, packaging, etc.) =
20% of selling price = ৳140
• Net Profit per Unit: Gross Profit - OPEX = ৳490 - ৳140 = ৳350

Hydrating Cream to Foam Cleanser

• Selling Price: ৳599

• COGS (Cost of Goods Sold): 30% of selling price = ৳179.70
• Gross Profit per Unit: Selling Price - COGS = ৳599 - ৳179.70 = ৳419.30
• Gross Margin: (Gross Profit / Selling Price) × 100 = (419.30 / 599) × 100 = 70%
• Net Profit per Unit (after OPEX): Operational expenses (marketing, salary, packaging, etc.) =
20% of selling price = ৳119.80
• Net Profit per Unit: Gross Profit - OPEX = ৳419.30 - ৳119.80 = ৳299.50

Hydrating Mineral Sunscreen SPF50

• Selling Price: ৳799

• COGS (Cost of Goods Sold): 30% of selling price = ৳239.70
• Gross Profit per Unit: Selling Price - COGS = ৳799 - ৳239.70 = ৳559.30
• Gross Margin: (Gross Profit / Selling Price) × 100 = (559.30 / 799) × 100 = 70%

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 • Net Profit per Unit (after OPEX): Operational expenses (marketing, salary, packaging, etc.) =
20% of selling price = ৳159.80
• Net Profit per Unit: Gross Profit - OPEX = ৳559.30 - ৳159.80 = ৳399.50

Branding & Packaging

Your branding emphasizes a premium image with eco-friendly packaging and natural ingredients. This
approach is key for positioning in the competitive skincare market.

Packaging Costs typically range between 5%-10% of the selling price depending on material and design.
For example, packaging for moisturizer could cost around b35 to 070 per unit.

Digital & Influencer Marketing

Digital Marketing Budget: Around 15%-20% of annual revenue goes into online ads (Facebook,
Instagram, Google).

Influencer Marketing: Depending on the influencer, monthly spend on influencer campaigns range
between t 50,000 to b2,00,000, especially with influencers who have a large following.

Retail & Distribution

Sales Channels: Online (website, Daraz, etc.), offline (pharmacies, cosmetic stores, supermarkets).

Logistics Costs: Warehousing, delivery, and returns handling. These costs can range from 5% to 15% of
revenue depending on distribution methods and scale.

Retail Margins: Retailers generally take 30%-40% of the selling price for selling your products in-store.

Salary Costs

Salaries: Employee costs (marketing, operations, sales) typically account for around 5%-10% of total
revenue.

Annual Salary Estimate: For a revenue of A1 crore, salaries could range from 5-10 lakh.

Products sold through:

Own website and social media: 70%

Retail stores: 30%

Revenue, Profit, Gross Margin, Net Profit, and Turnover Breakdown FY 2022-23 (First Year of
Operations) Assumptions:

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 • Ultra-Light Moisturizer Sales: 10,000 units
• Hydrating Cream To Foam Cleanser Sales: 4,000 units
• Hydrating Mineral Sunscreen SPF50 Sales: 3,000 units

Revenue and Profit Breakdown

PRODUCT MOISTURIZER CLEANSER SUNSCREEN TOTAL REVENUE

UNITS SOLD 10,000 4,000 3,000 17,000

SELLING PRICE ৳700 ৳599 ৳799

REVENUE ৳7,000,000 ৳2,396,000 ৳2,397,000 ৳11,793,000

COGS ৳2,100,000 ৳718,800 ৳719,100 ৳3,537,900

GROSS PROFIT ৳4,900,000 ৳1,677,200 ৳1,677,900 ৳8,255,100

OPEX ৳1,400,000 ৳478,800 ৳478,800 ৳2,357,600

NET PROFIT ৳3,500,000 ৳1,198,400 ৳1,199,100 ৳5,897,500

EBITDA ৳4,000,000 ৳1,677,200 ৳1,677,900 ৳7,355,100

FY 2023-24 (Growth of 50% in Sales) Assumptions:

• Ultra-Light Moisturizer Sales: 15,000 units

• Hydrating Cream To Foam Cleanser Sales: 6,000 units

Hydrating Mineral Sunscreen SPF50 Sales: 5,000 units Revenue and Profit Breakdown

PRODUCT MOISTURIZER CLEANSER SUNSCREEN TOTAL REVENUE

UNITS SOLD 15,000 6,000 5,000 26,000

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 SELLING PRICE ৳700 ৳599 ৳799

REVENUE ৳10,500,000 ৳3,594,000 ৳3,995,000 ৳18,089,000

COGS ৳3,150,000 ৳1,078,800 ৳1,198,500 ৳5,427,300

GROSS PROFIT ৳7,350,000 ৳2,515,200 ৳2,796,500 ৳12,661,700

OPEX ৳2,100,000 ৳718,800 ৳718,800 ৳3,537,600

NET PROFIT ৳5,250,000 ৳1,796,400 ৳2,077,700 ৳9,124,100

EBITDA ৳6,000,000 ৳2,515,200 ৳2,796,500 ৳11,311,700

FY 2024-25 (Growth of 25% from July 2024 to Feb 2025) Assumptions:

• Ultra-Light Moisturizer Sales: 18,750 units

• Hydrating Cream To Foam Cleanser Sales: 7,500 units

Hydrating Mineral Sunscreen SPF50 Sales: 6,250 units Revenue and Profit Breakdown

PRODUCT MOISTURIZER CLEANSER SUNSCREEN TOTAL REVENUE

UNITS SOLD 18,750 7,500 6,250 32,500

SELLING PRICE ৳700 ৳599 ৳799

REVENUE ৳13,125,000 ৳4,492,500 ৳4,994,500 ৳22,612,000

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 COGS ৳3,937,500 ৳1,348,500 ৳1,498,500 ৳6,784,500

GROSS PROFIT ৳9,187,500 ৳3,144,000 ৳3,496,000 ৳15,827,500

OPEX ৳2,625,000 ৳899,400 ৳899,400 ৳4,423,800

NET PROFIT ৳6,562,500 ৳2,244,600 ৳2,596,600 ৳11,403,700

EBITDA ৳7,312,500 ৳3,144,000 ৳3,496,000 ৳13,952,500

Last 3 Months (Nov 2024 – Jan 2025) Assumptions:

• Ultra-Light Moisturizer Sales: 4,500 units

• Hydrating Cream To Foam Cleanser Sales: 1,800 units

Hydrating Mineral Sunscreen SPF50 Sales: 1,500 units Revenue and Profit Breakdown

PRODUCT MOISTURIZER CLEANSER SUNSCREEN TOTAL REVENUE

UNITS SOLD 4,500 1,800 1,500 7,800

SELLING PRICE ৳700 ৳599 ৳799

REVENUE ৳3,150,000 ৳1,078,200 ৳1,198,500 ৳5,426,700

COGS ৳945,000 ৳323,460 ৳359,550 ৳1,628,010

GROSS PROFIT ৳2,205,000 ৳754,740 ৳838,950 ৳3,798,690

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 OPEX ৳630,000 ৳191,760 ৳191,760 ৳1,013,520

NET PROFIT ৳1,575,000 ৳563,980 ৳647,190 ৳2,786,170

EBITDA ৳1,890,000 ৳754,740 ৳838,950 ৳3,483,690

Summary of Key Metrics

• Revenue Growth: ~50% from FY 2022-23 to FY 2023-24, and ~25% from FY 2023-24 to FY 2024-
25.
• Gross Margin: Consistent at 70% for all products.
• Net Profit Margins: Approximately 50% to 55% for most periods.

These financials offer a good starting point for approaching investors and demonstrating the scalability
of your business.

Let me know if you’d like to dive deeper into any particular aspect of the business!

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5.0 The Science Behind Our Products
Hydrating Cream To Foam Cleanser

Cleanses, hydrates and removes makeup without disrupting the protective skin barrier with 3 essential
ceramides, amino acids, and hyaluronic acid. Developed and tested by dermatologists.

Full Ingredient List : Aqua / Water / Eau, Glycerin, Sodium Methyl Cocoyl Taurate, Coco-Betaine,
Sodium Cocoyl Isethionate, Sodium Chloride, Pca, Ppg-5-Ceteth-20, Peg-100 Stearate, Peg-150
Pentaerythrityl Tetrastearate, Peg-6 Caprylic/Capric Glycerides, Peg-30 Dipolyhydroxystearate, Ci
77891 / Titanium Dioxide, Aspartic Acid, Ceramide Np, Ceramide Ap, Ceramide Eop, Sorbitan
Isostearate, Carbomer, Glycol Distearate, Glyceryl Stearate, Glyceryl Oleate, Glycine, Trideceth-6,
Cetearyl Alcohol, Behentrimonium Methosulfate, Threonine, Sodium Hydroxide, Salicylic Acid, Sodium
Pca, Sodium Lactate, Arginine, Sodium Lauroyl Lactylate, Serine, Sodium Benzoate, Valine, Sodium
Hyaluronate, Proline, Isoleucine, Cholesterol, Phenoxyethanol, Alanine, Phenylalanine, Coconut Acid,
Coco-Glucoside, Chlorphenesin, Disodium Edta, Hydroxyethyl Urea, Citric Acid, Hydroxyethyl
Acrylate/Sodium Acryloyldimethyl Taurate Copolymer, Caprylyl Glycol, Phytosphingosine, Xanthan
Gum, Histidine, Acrylates/C10-30 Alkyl Acrylate Crosspolymer, Polyquaternium-53, Polyquaternium-
39, Polysorbate 60, Ethylhexylglycerin, Benzoic Acid

• Ideal for all skin types.

• Cleanses and removes makeup.
• Key features: Non-comedogenic, fragrance-free, allergy-tasted, ph balanced.

Ultra-Light Moisturizer

Lightweight moisturizer formulated with 3 essential ceramides, niacinamide, and hyaluronic acid to
provide lasting hydration with a weightless feel on skin. Developed with dermatologists.

Full Ingredient List: Aqua / Water / Eau, Glycerin, Niacinamide, Propanediol, Dimethicone, Isononyl
Isononanoate, Ceramide NP, Ceramide AP, Ceramide EOP, Carbomer, Dimethicone Crosspolymer,
Cetearyl Alcohol, Behentrimonium Methosulfate, Triethyl Citrate, Silica, SODIUM HYDROXIDE, SODIUM
HYALURONATE, SODIUM LAUROYL LACTYLATE, CHOLESTEROL, PHENOXYETHANOL, TOCOPHEROL,
CHLORPHENESIN, CAPRYLYL GLYCOL, TRISODIUM ETHYLENEDIAMINE DISUCCINATE, BIOSACCHARIDE
GUM-1, XANTHAN GUM, PHYTOSPHINGOSINE, BENZOIC ACID .

• Made For All skin types.

• Helps with Hydration.
• Key features: Gel formula, fragrance-free, lightweight and oil free.

Hydrating Mineral Sunscreen SPF50

100%-mineral, oil-free sunscreen with titanium dioxide and zinc oxide that forms a protective barrier
on your skin’s surface to help reflect the sun’s UVA and UVB rays without irritating sensitive skin.

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Full Ingredient List: Active Ingredients: Titanium Dioxide (9%), Zinc Oxide (7%), Inactive Ingredients:
Water, Glycerin, C12-15 Alkyl Benzoate, Dimethicone, Isododecane, Styrene/acrylates Copolymer,
Glyceryl Stearate, Butyloctyl Salicylate, Dicaprylyl Carbonate, Propanediol, Stearic Acid, Aluminum
Hydroxide, Peg-100 Stearate, Sorbitan Stearate, Niacinamide, Peg-8 Laurate, Ceramide NP, Ceramide
AP, Ceramide EOP, Sorbitan Isostearate, Carbomer, Cetearyl Alcohol, Ceteareth-20,
Triethoxycaprylylsilane, Dimethiconol, Sodium Citrate, Sodium Lauroyl Lactylate, Sodium
Dodecylbenzenesulfonate, Myristic Acid, Sodium Hyaluronate, Cholesterol, Palmitic Acid,
Phenoxyethanol, Chlorphenesin, Tocopherol, Hydroxyethyl Acrylate/sodium Acryloyldimethyl Taurate
Copolymer, Caprylyl Glycol, Citric Acid, Panthenol, Xanthan Gum, Phytosphingosine,
Polyhydroxystearic Acid, Polysorbate 60, Ethylhexylglycerin.

• Made for All skin types.

• Helps with Sun protection and hydration.
• Recommended by skin cancer foundation
• 100% mineral sun filters
• gentle on skin.

Our newest launch, Skin Renewing Vitamin C Serum

Formulated with 10% pure vitamin C (L-ascorbic acid) to help visibly brighten your complexion and
support soft, radiant, and healthy-looking skin.

Ingredients: WATER, ASCORBIC ACID, GLYCERIN, DIMETHICONE, CETEARYL ETHYLHEXANOATE,

ALCOHOL DENAT., SODIUM HYDROXIDE, AMMONIUM POLYACRYLOYLDIMETHYL TAURATE,
PANTHENOL, CERAMIDE NP, CERAMIDE AP, CERAMIDE EOP, CARBOMER, CETEARYL ALCOHOL,
BEHENTRIMONIUM METHOSULFATE, SODIUM HYALURONATE, SODIUM LAUROYL LACTYLATE,
CHOLESTEROL, PHENOXYETHANOL, TOCOPHERYL ACETATE, DISODIUM EDTA, ISOPROPYL MYRISTATE,
CAPRYLYL GLYCOL, XANTHAN GUM, PHYTOSPHINGOSINE, ETHYLHEXYLGLYCERIN.

• for All skin types.

• Helps with skin brightening.
• Key features: Non- comedogenic gentle on skin, fragrance free.

Makeup Removing Cleansing Balm

Features a velvety melting balm texture that works to effectively dissolve long wear makeup and
foundation, with no greasy residue left on the skin.

Full Ingredient List: ETHYLHEXYL PALMITATE, POLYETHYLENE, PEG-20 GLYCERYL TRIISOSTEARATE,

AQUA/WATER/EAU, CERAMIDE NP, CERAMIDE AP, CERAMIDE EOP, CARBOMER, TRIETHYL CITRATE,
SODIUM LAUROYL LACTYLATE, CHOLESTEROL, SIMMONDSIA CHINENSIS SEED OIL/ JOJOBA SEED OIL,
PHENOXYETHANOL, TOCOPHEROL, CAPRYLYL GLYCOL, PHYTOSPHINGOSINE, XANTHAN GUM,
POLYSORBATE 20, BENZOIC ACID, PEG-30 DIPOLYHYDROXYSTEARATE, PPG-26-BUTETH-26, PEG-40
HYDROGENATED CASTOR OIL.

16
• For All skin types.
• Helps with Makeup removing and double cleansing.
• Key features: non-comedogenic, non-greasy feel, removes dirt oil and makeup.

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6.0 Consumers
Skincare preferences and needs vary across different age groups and lifestyles, especially in a country
like Bangladesh, where the tropical climate significantly influences product choices. This report focuses
on women aged 18 to 30, particularly university students and working professionals who travel
frequently.

The Bangladeshi women who are very concerned about their skin, aged 18 to 30, university students
and young working professionals have special problems due to the nation's hot and humid climate.
With the increasing exposure to sunlight, pollution, and dust, proper skincare needs to be emphasized
in order to sustain skin health. University students constantly run from one class to another with an
extremely busy schedule and need light, non-oily sunscreens that give maximum protection without
the greasiness. Price-conscious, they seek affordable yet effective options like the three-finger
application method for good coverage. They also prefer multi-functional skincare products, such as a
moisturizer that can also works as a scrub, for their convenient way in their daily skin-care routines.

For women who are doing jobs, skincare needs extend beyond sun protection. Whether they are
professionals in corporate offices, teachers, or healthcare workers, their skin is getting affected by both
outdoor and indoor conditions, such as sunlight, pollution, and air-conditioned environments,
leading to issues like dryness, oil buildup, and premature aging. They require long-lasting, sweat-
resistant sunscreens that can be easily reapplied throughout the day without feeling sticky.
Additionally, since many working women wear makeup, they look for non-comedogenic, hydrating
moisturizers that keep their skin fresh and lively without making it greasy. A moisturizer with mild
exfoliating ingredients can help remove daily dirt and oil from the face and offer a simple yet effective
skincare routine for women with busy schedules.

Considering Bangladesh’s high humidity and heat, skincare products must be lightweight, non-sticky,
and sweat-proof to ensure comfort throughout the day. Heavy, greasy products often feel
uncomfortable and unpleasant so making breathable and quick-absorbing formulations more
desirable. Moreover, affordability is also a concerning factor, especially for students who seek budget-
friendly yet effective skincare options. By offering multi-functional, easy-to-use, and reasonably
priced products, our brand can effectively offer to the daily needs of young Bangladeshi women who
prioritize protection, hydration, and convenience in their skincare choices.

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7.0 Marketing

Digital & Influencer Marketing

1) Digital Marketing Budget: We spend around 10%-20% of annual revenue allocated to online
advertisements on platforms like Instagram, Facebook, TikTok and Google.

2) Influencer Marketing : we monthly spend on influencer campaigns ranges between 150,000 to

200,000, especially with influencers and actors who have a large following like Nusrat Faria, Style by
Tonny, Sarah's quest who are reliable & trusted by the audience. This helps our products to reach more
customs, acknowledgment of the brand and leveraging their audience for brand promotion.

Branding & Packaging

1) Branding: Our branding is a strengthened premium image with eco-friendly packaging and natural
ingredients. As our brand is offering the consumer the best quality with best ingredients which is non
irritating, non-allergic, non-fragrance and effective for Bangladeshi skin type. This approach is most
important for positioning as a brand in the competitive Bangladeshi skincare market.

2) Packaging Costs: As our brand is eco-friendly the packaging cost typically ranges between 5%-10%
of the selling price, depending on material and design. For example, packaging for the moisturizer
could cost around 35tk to 70tk per unit.

Sales Channels

1) Online: Our products are mainly sold through the company's own website, social media platforms,
and online marketplaces like: E-mart way, Argga, Ohsogo, Daraz.

2) Offline : Our products are also available in pharmacies, cosmetic stores, and supermarkets.

Retail Margins

* Bangladeshi retailers generally take 30%-40% of the selling price for selling products in-store.

Summary

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Revenue Growth: The business has shown a massive revenue growth, with a 50% increase from FY
2022-2023 to FY 2023-2024 and a 25% increase from FY 2023-2024 to FY 2024-2025.

Gross Margin: Our gross margin is consistent at 70% for all products.

Net Profit Margins: The net profit margins of our products are approximately 50% to 55% for most
periods.

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8.0 Challenges
Since our brand offers skincare products, selling and promoting them in Bangladesh comes with several
challenges. Some of the crucial ones can be,

1. Market Competition

The skincare market in Bangladesh is highly competitive. There are some international brands like
CeraVe, The Ordinary, Aveeno, Cetaphil, K-beauty, Kodomo Thailand, and local brands like Focallure
Bangladesh, Olive Bangladesh Ltd, Nirnita, Kohinoor Chemical Company Ltd, Mumtaz herbal products,
etc. that are popular in Bangladesh. These brands are well-established and gained consumer trust and
loyalty over time through consumer satisfaction with their products and services. Some brands in
Bangladesh particularly focus on environmental safety and natural solutions, like Ribana, Skin Cafe,
Rajkonna, BD Beauty Glamorous, AMLAKI, Kashmiri Beauty by Jiniath, Organikaon, Lavino, Dorado
Bangladesh, Aarong Earth, etc. Due to their eco-friendly policy, they have a different customer base.

Customers not only in Bangladesh but all across the world prefer well-known brands, as the subject of
"skincare" is a delicate issue. People always want a safe, well-known product for self-care, making it
difficult for our new brand to gain trust.

2. Consumer Awareness & Trust

Many Bangladeshi consumers are skeptical about new skincare brands. They are especially concerned
about ingredient safety, ethical labor practices, cruelty-free processes, and effectiveness. There are
many illegitimate, fraudulent businesses scamming people with fake, harmful products, exploiting
workers, and conducting animal testing all across the country. Another of their tactics in increasing
sales is selling products at a cheap rate. Our cost-effective products may raise questions about
ingredient authenticity and safety among conscious customers. Gaining trust in this fraudulent market
can be challenging. Though dermatologist recommendations and influencer marketing can help
establish credibility, there is corruption in that particular sector as well.

3. Regulatory & Legal Issues

The Bangladesh Directorate General of Drug Administration (DGDA) and BSTI (Bangladesh Standards
and Testing Institution) regulate skincare and cosmetics in our country. They regulate all the
procedures related to product testing, registration, and compliance with labeling and advertising laws.
It is a time-consuming, intricate process and includes high costs.

4. Price Sensitivity

To satisfy our target customers, we have prioritized affordability along with quality. However, due to
the country's inflation and other economic factors, maintaining stable production costs can be

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challenging. Therefore, controlling these two qualities simultaneously is crucial for the business. Our
sustainable measures also create challenges in this particular field.

5. Online vs. Offline Sales

E-commerce, for example, businesses like Daraz, Chaldal, Shajgoj, and Facebook shops are growing
every day. On the contrary, offline retailers like pharmacies and beauty stores still dominate the market
of skincare goods. Maintaining both platforms can be challenging. A strong digital marketing strategy
is needed to reach online consumers. An easy way to start the process is through influencers. There
are also some effective options like TV ads and social media platform promotions. However, due to
fraudulent businesses, this marketing strategy of collaborating with beauty bloggers can also face
challenges in gaining the customer's trust. And other options might not always be cost-effective.

6. Counterfeit & Fake Products

Counterfeit skincare products are common in Bangladesh. Almost every brand has its fake version.
With little knowledge of authenticity determination, our consumers might fall victim to such
businesses. This can harm our brand image and affect consumer loyalty.

Having authorized sellers and unique packaging that includes holograms, QR codes, etc., can help
combat counterfeits. However, the process for this is challenging.

7. Cultural Preferences

Meeting cultural preferences is another challenge for us. Along with affordability and quality,
introducing halal products is also our target. Moreover, due to the socio-cultural system, the target
consumers prefer fairness-oriented skincare products. Meeting these individual needs that vary from
person to person is challenging. In today's world, global trends are shifting towards healthy skin.
However, different local preferences influence the buying decisions.

8. Sustainability

Sustainability is one of our crucial focuses. To satisfy our increasing consumer awareness and maintain
an eco-friendly policy, our motto is to avoid plastic packaging and use ethically sourced, organic, and
cruelty-free ingredients. However, it is challenging for a new brand to maintain the cost and processes
related to using recyclable, biodegradable materials. It is also time-consuming and costly to always
ensure fair labor practices in all sectors. Reducing resource waste, implementing proper waste
management, and minimizing environmental footprints are also challenging.

9. Supply chain

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For new brands like ours, the complexity of the supply chain is a challenge. Ensuring an effective and
efficient flow of products is difficult. The key issues that can arise are securing a continuous and reliable
raw material source and finding suitable retailers who are concerned about price fluctuations and
meet our specific needs. This is very challenging as retailers sometimes tend to keep most of the
profits, leading to financial challenges for us. In this case, not all retailer markets can be profitable for
us. Some retailers are not willing to work with new brands and accommodate their specific needs.
Some other challenges in the supply chain can be accurate inventory management, ensuring no stock-
outs or overstocking, maintaining a reasonable production cost, etc., and most importantly, ensuring
our products reach the customer.

10. Keeping up with customer expectations

Satisfying the needs of our customers and presenting them with a high-quality experience is our
priority. So, understanding customers' needs, psychology, and social standards is a must. We need to
treat customers like individuals. Each individual has a different set of requirements when it comes to
an issue as sensitive as skincare products. Therefore, our products must evolve with the weather, age,
and skin type of our consumers. A product used in winter may not be suitable for summer. If we have
an early teen customer right now, to ensure the customer's loyalty and sustainability in the market for
the long run, we need to evolve our products that can be used by the same customer in her 30s. So,
keeping up with the specific needs of customers is a great challenge. Another crucial part is the
presentation of the products. Understanding each customer's psychology and presenting them with a
product based on age and taste, a packaging that they find attractive, is also challenging.

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9.0 Conclusion
Phoenix Skincare's journey from a visionary idea to a brand that is successful in a competitive market
is a reflection of the evolving skincare needs of modern women. By recognizing the absence of locally
formulated skincare products, the brand has become a household name in the market. After much
study, specialized knowledge in dermatology, and commitment to perfect quality control exercises,
Phoenix has been successful in achieving the creation of the above products which respond directly,
without sacrificing input concerns or affordability in brainstorming weather, customers, and culture.

The astonishing growth of the brand, with a constant growth in revenue and profitability, is itself a sign
of efficiency at the same time raising prospects for potential growth in the future. With a strong
customer base, effective digital marketing strategies, and product innovation focus, Phoenix Skincare
is already set to become a household name. The launch of new products, such as the vitamin C serum
and makeup cleansing balm, indicates its attention to consumer needs and staying ahead of the curve
in the market.

In the coming years, Phoenix Skincare will stand for the betterment of itself by improving its retail
sectors, enhancing digital marketing, and developing innovative dermatological formulas. It has a
robust base with a clear roadmap in mind and is efficient enough to be successful in the long run and
redefine area skincare standards.

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