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 June 5, 2025

Report on Beauty Cream

Report on Beauty Cream

The Need for Nano Sweat Free Cream:

Sweat is a weak salt solution produced by the sweet glands in human body. While sweating during summers and hot weather is normal for every other individual, Muslim women around the world have to experience intense sweating for wearing hijab (veil) tailored to hide their bodies from exposing. Some countries by Islamic Law binds the women to take hijab while going out of their houses, Saudi Arabia and Iraq are main examples of obligatory hijab for women (The Daily News, 2014). Hence, due to obligatory hijab practices, Muslim women has to face major hit back due to excessive heat and sweating problem that trigger bacteria and ends up in infections like scalp folliculitis and hyperhidrosis.

This push from the government for compulsory hijab driven by “Islamic Law” creates a market driven opportunity to supply women with sweating problems a solution to avoid infectious diseases. Anti-sweat cream prevents people from sweat rash and chafing.

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Nano Sweat Free Cream Concept:

Anti-sweat creams exist presently in the market as the effective antiperspirant in an emollient and soothing bases. Many of the creams in the market are manufactured to serve the purpose of preventing skin from sweat and rashes. The excessive use of antiperspirants in creams cause clogging, closing and/or blocking of pores. This is where the idea of producing Nano Sweat Free Free Cream with nanofibers technology breaks in. Nano technology breaks the chemicals used in cream into nanoscale materials that exhibit similar properties and contain the same material at a smaller scale (Contri, 2011). Large sized Zinc Acetate (used in most antiperspirants) when applied on skin can produce a heavy feel, difficult application and high levels of residue on the skin after its application (Contri, 2011). The idea is to breakdown Zinc Acetate into smaller particles through nanotechnology which shows sophisticated chemical properties and is easily blend-able. Moreover the cream will also contain active ingredients like Titanium Dioxide and Zinc Dioxide that will also be broken down into nanoscale materials for increased prevention of UV irradiation and will also work as sunscreen.

 

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The distinction between Nano Sweat Free Cream and other market available creams lies in its 3 in 1 action containing Zinc Acetate (working as antiperspirant), Titanium and Zinc Oxide (working as sunscreen) and Lipsomes (accelerating the process of easy application and helps in fast releasing and dissolving of contents onto the surface of the skins) (Contri, 2011).

 

Product Development and Patents:

The production of Nano Sweat Free Cream is expected to take up to approximately 4 – 5 months after passing the research phase. The research phase will be based on applications and testing of Nano particles as science is developing at a faster pace. After passing research phase, development phase may take up to 5 months in which Skin & Cancer Foundation Inc. will be provided with cream samples to pass ISO 9001:2008 certification of skin care and certified organic products. The idea will be patented and trademarks will be required in research phase.

 

Target Market:

In total there are 48 Muslim majority countries in the world. Out of which few countries require, by law, the wearing of Hijab. These countries are Saudi Arabia, Iran and Kuwait rest of the countries are either secular or provide options and free right to wear or not to wear hijab (The Daily News, 2014). In start, we will target Saudi Arabia women as the target market and alter on expand in Iran, Iraq, Kuwait and Turkey. Saudi Arabia which is economically more developed, is most conservative in terms of the women’s style of dress (The Daily News, 2014). The Nano Sweat Free Cream have niche market as first the population targeted is women out of which veiled women are identified as target market. The niche market defines the product features aimed at satisfying specific needs of targeted small market segment.

 

Competition:

The main competition facing Nano Sweat Free Cream is from roll-ons, deodorants and antiperspirant creams. Main two competitors are Lever Faberge and Beiersdorf holding 24% and 19% share of deodorant market in Saudi Arabia (Euromonitor International, 2015). However, there is limited competition in this regard as nothing specifically is being designed for women who have to wear hijab for religious purposes. Deodorants and anti-sweat roll-ons are available at a broad range of price so for entering the market in Saudi Arabia price skimming will be used. Price skimming will let us set the price at higher level to reflect the quality of cream and will be differentiated on basis of 3 in 1 cream providing solutions for non-greasy (easily applicable), sun screen and anti-sweat characteristics enabled through Nano technology.

 

Economics:

The price will be set at $70 for big tube while in start testers will be distributed through direct and indirect channels of marketing i.e. home to home supply, free of charge testers in malls etc. Assuming production cost to be $50 for tubes, the contribution will be $20. This will help in matching the initial research cost and development expenditure. The total revenue by 5th year end will be $11.9 million (expected).

 

Funding:

For research and development phase and Nano technology use $2 million fund injection will be needed. This will be raised from National Australia Bank after giving them proposal for development of Nano Sweat Free Cream. This amount includes $70,000 for leasing Nano Technology in development phase $10,000 for patents fees and $20,000 for salaries of 5 scientists and researchers for 4 months ($1000 each month per researcher).

 

Budgeted Profitability Analysis:

Over five years span the sales revenue of $5.6 million, $7 million, $10.5 million and $11.9 million per tube will be enough to produce profit. The snapshot of budgeted income is given below.

 

 

Year

Per Hour Wage

Hours

Units

Total Hours

Total Wage Per Employee

Total Employees

Total Labor Cost

1

 

0

0

0

$ 120,000

0

0

2

6

0.25

80,000

20000

$ 150,000

20

$         2,400,000.0

3

6

0.25

100,000

25000

$ 225,000

30

$         4,500,000.0

4

6

0.25

150,000

37500

$255,000

35

$         7,875,000.0

5

6

0.25

170,000

42500

$ 120,000

40

$       10,200,000.0

                   

 

BUDGETED INCOME STATEMENT

For The Year Ended

 

Year 2

Year 3

Year 4

Year 5

 Sales Revenue

 $              5,600,000

 $           7,000,000

 $          10,500,000

 $           11,900,000

 Less:

       

 Direct Material

 $                 100,000

 $               150,000

 $                200,000

 $                 200,000

 Direct Labor

 $              2,400,000

 $           4,500,000

 $             7,875,000

 $           10,200,000

 Gross Profit

 $              3,100,000

 $           2,350,000

 $             2,425,000

 $             1,500,000

 Lease

 $                    20,000

 $                 20,000

 $                   20,000

 $                   20,000

 Rent

 $                    30,000

 $                 30,000

 $                   30,000

 $                   30,000

 Packaging

 $                    10,000

 $                 20,000

 $                   20,000

 $                   30,000

 Advertisement

 $                    30,000

 $                 30,000

 $                   30,000

 $                   30,000

 Net Profit

 $              3,010,000

 $           2,250,000

 $             2,325,000

 $             1,390,000

 

Entry and Exit:

Nano Sweat Free Cream will be striking to obtain 10% market share in the deodorants industry as the Saudi Arabia’s population is increasing and high temperatures remained the main factors previously for driving growth in sales of deodorants over the last decade (The Daily News, 2014). High temperature and use of hijab and abayas is increasing the risk of heavy sweating which is opening more doors for entrants.

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References

Contri, R. V. (2011). Nanocosmetics and nanomedicines: new approaches for skin care. Springer.

Euromonitor International. (2015, May). Beauty and Personal Care: Deodorants in Saudi Arabia. Retrieved August 24, 2015, from http://www.euromonitor.com/deodorants-in-saudi-arabia/report

The Daily News. (2014, January 10). Majority in Mideast prefer women to wear headscarves: Survey. Retrieved August 24, 2015, from http://www.hurriyetdailynews.com/majority-in-mideast-prefer-women-to-wear-headscarves-survey.aspx?pageID=238&nID=60824&NewsCatID=352

 

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