Herbelium

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1.1 Mission
The mission of Herbelliem is to create herbal products that heal, sooth and cleanse our customers.
1.2 Objectives
The objectives for Gentle Touch Creations are as follows: Achieve market leadership in Bhimtal. Provide supplies to all the major school & colleges in Bhimtal. Increase sales by 15% at the end of first year of production.
2.1 Company Ownership

Gentle Touch Creations is owned by Mr X & Mr Y.
Executive Summary.
Herbelium is a startup herbal product business shop specializing in hand-made products for daily use, cosmetics & medicines. These products include herbal shampoo, soaps, Chawanpras, face packs,hair oil, moisturizer,balms, & herbal medical products for ailments like headache,Flu,fever,stomach-ache & joint pain,digestion related problems.All the hebeliums product will be either brought from the renowned herbal production houses, or will be provided by the cottage industries which are flourishing in the nearby areas. Herbal products have grown in popularity in the last ten years. Fortunately, nature has provided India with an abundance of plants, roots, flowers & herbs rich in vitamins, enzymes, proteins, minerals & other biologically active compounds that have been used in the care of the body, skin & hair for centuries. Bhimtal, a town growing at the rate of 4%, will be the place for its first store.
Herbelium will sell its product to the localities for their daily needs, also catering to the opportunities presented by the tourist.
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Budget.
Start-up Expenses Legal Stationery etc. Insurance Rent Expensed Equipment Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Total Assets Total Requirements 1,00,000 30,000 40,000 1,70,000 4,70,000 3000. 10000 50,000 30,000 2,00,000 2,93,000
Company Location.
The main shop is located in the main market of Bhimtal,at a rent of 6000 per month.The location of Manufacturing units lie in Mehragaun,Mukteswar & Ramgarh.
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2. Market Analysis.
Products
The product line of Herbelium is as follows: Beauty products including shampoo, face pack, face wash, beauty soaps. Hair Oil. Balms & antiseptics Moisturizer for face and hands with various scented oils. Herbal Medicines for common ailments like headache,fever, & stomach upsets. Chawanprass,rose juice. Herbal products are making their comeback in the twentieth century because of their effectiveness, noside effects, lower price & longer expiry dates. This perceptual change have led to increase in demand of herbal products. The youth especially in the need of herbal remedies for their beauty problems are really excited about a herbal store in their small town. All the herbal products under one roof is also a new concept in Bhimtal, which is being widely appreciated in the market. The industry can be divided into following segments Herbal Beauty Products. Herbal Health Products.
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2.1 Market Needs

Herbal industry is the fastest growing sector in cosmetics and health products in India,growing at the rate of 15-20% per year.The growing demand for hebal products have led to local-cottage industries to flourish,hence requirement of more retail outlets to sell their products.The market in Bhimtal is really excited for an exclusive herbal retail shop in their small community.The ablity of the store to provide different herbal product under a same roof is a major advantage. Middle class & lower middle class constitute a major proportion of Bhimtal's demographics.Expensive Chemical products offered by various large brands are too expensive for the middle-class Indian people.People of this class consume the low-grade of products built by such companies.The usage of such products deteriotes their health & skin,instead of improving it.We at herbelium,provide products from best Herbal Companies and from the fresh local-cottage industries.These products are high in quality,as well as low on price. We would provide our customers face packs,face wash & anti-ageing creams,thus introducing them to a new gambit of products at an effective price.Bhimtal,where 60% of the population is less than 30,need products lot of cosmetic products to take care ofc their hygiene & beauty,our products will focus more on cosmetics. Bhimatl has one hospital with two doctors (only cater to 39% of health problems),it also is responsible for health related problems of the town. People from nearby villages also have to travel to Nanital or Haldwani for small problems of headache,fever or stomach upsets.Consumers are in need of medicines that can be used without doctors prescription, and with no side effects. Our hearbal health sector hopes to address such issues
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4.1 Market Segmentation
Herbellium will focus on two target segments: Herbal Heath Products: Utrakhand is home to many small-to-medium size herbal heath product companies such as Ashima,Peatangali , Ayurvadeya,which relocated all over Uttrakahnad . All of these companies buy raw or finished products from third-party vendors. These companies generated huge sales,which a margin of 30% on each product. Their products are available, both in their own local stores, & some of them sell through medical stores. Herbal Beauty Products: Uttrakhand is also home to a number of small-to-medium size herbal beauty product companies such as Peetangali,Fruitage, Himalaya and Rising Sun Products . All of these companies buy raw or finished products from third-party vendors. Most of their product is sold in daily grocery shops.
% Distribution of Shelf Space

Herbal Health Products Herbal Beauty Products
Expected Market GrowthFor Herbal Health Products- 4% For Herbal Beauty Products- 2%
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Target Market Segment Strategy

Herbal beauty products dominate sales but herbal health products have been growing in popularity each year. There are at least 20 companies which serve herbal health market, 5 of these are regionally based, the & but the rest of them include big names like Himalaya & Vadyanath which operate on a National level .This is compared to only 30 herbal beauty product companies. Most of these companies also only compete regionally though there are a handful in Peetangali,Friuteage & Ghandhi Ashram that constitute major part of the market. As sales grow in herbal beauty product, more new companies will enter the marketplace. Herbellium will focus on smaller companies serving the Uttrakhand regional market. Many of these smaller companies aggressively come out new products that they can add to their product line, but because of lack of proper marketing strateg, ,most of these have a comparatively small product life cycle. The cost of manufacturing all these items themselves is prohibitive so they contract with third party vendors to supply product.
Buying Patterns
Quality, timeliness & longetivity are the essential factors in being successful as a supplier to an herbal product company. This is especially true when the tourist season is on, 40% of the companys turnover is supposed to come from that period,i.e. March to June . A delay in delivery will impact the company's ability to meet delivery deadlines. Quality is also an important factor because word of mouth is one of the strongest marketing tools with herbal products. The local success of an herbal product many times leads to a larger company procuring the product for their line.
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Competition
In present time Herbellium face tough competition both from its regional companies,& also a stiff comptetion from its national comptitors.With the established brands in Peetangali,Fruitage ,Gandhi Ashram,Himalya,Vedhnath,it will be difficult to reach its break even within a few years. The company has to do lots of advertising, creating a brand. Creating more awareness about the benefits of herbal products
Market share
Petangali Fruitage Gandhi Ashram National Brands
According to a survey done on Peetangali, following facts came out. The data indicate the number of regular customers received were mostly regular,indicating to a large brand following behind its success.
Consumer Data
Regular Customer New customers
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Competitive Edge
The competitive advantage of Gentle Touch Creations is the consistent quality of the herbs that are at the core of each product.The procurement & selection of right products,according to market needs. The products have been tested locally for years developing and establishing the customer satisfaction level demanded by Herbelium at an affordable price .
Market Statergy of rival firm Petangali.
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SWOT Analysis
Strengths: Natural products without any kind of side effects. Innovative Aspects.
Working under a well thought out Marketing strategy.. Procurement of companies with quality product
Social Responsibility to make people healthy.
Weaknesses: Strong Competitors & availability of substitute products. Low exports levels. High price of some products. Small Production Unit. Very less promotional activities.
Opportunities: Growing population of Bhimtal. Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers. Export potential and tax & duty benefits for setting exports units.
Threats: Removal of import restrictions resulting in replacing of domestic brands Tax and regulatory structure. People perception of herbal products
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Marketing strategy.
The marketing strategy of herbllium will be to
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Page |1

2.1 Company Ownership

2.1 Market Needs

4.1 Market Segmentation

% Distribution of Shelf Space

Target Market Segment Strategy

Petangali Fruitage Gandhi Ashram National Brands

Regular Customer New customers

Market Statergy of rival firm Petangali.

Social Responsibility to make people healthy.

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