BUSINESS ENVIRONMENT

Business environment

Task 1

Part a

EOE is a company that has created a brand concept consisting of flavors and perfume oils to manufacturers that uses multiple distribution channels. We are looking for recurring investment to finance the growth of the brand, and position the company for an IPO. The plan that follows explains our market, our value proposition and our market segmentation strategy. Detailed financial plans provide a clear vision of our sales and profit forecasts. These plans show how EOE reaches profitability in the third year of operation and generate shareholder return on equity within five years. EOE establishes as a major brand that represents quality in skin care, clothing and fitness accessories. (Hassan 2007 p.446) We will achieve this by making high quality and research, a creative marketing program, and a global distribution network with brick and mortar outlets, Internet presence, and a catalog of consumers. By using this multi-channel approach will be able to reach the niche market for quality personal care products quickly and efficiently. This allows us to develop EOE, as the brand for the skin and quality products for body care within our target market. (Garcia 2009 P.28)

EOE occupies a unique market position. No other brand offers a special line includes skin care, cosmetics, sportswear and accessories. However, within each category of major brands in the world quality and price vary widely within each group. EOE is positioned as a premium brand. The U.S. market cosmetics have seen huge growth rates annually over the last decade. Last year alone, the market grew by more than $ 1 billion. Clear divisions between the traditional categories are becoming blurred and new lines, such as aromatherapy are also emerging, creating new openings for profit. Sportswear and accessories is a great opportunity as the client has been extremely high. Most large companies do not produce products specifically focused on the client. Puma is the only brand that has developed a line of fitness apparel for women and forth. The early sales of them have been exceptional, which highlights the potential within this category. (John 2003 p .27)

Company headquarters is in Portland Oregon. The office is approximately 400 square feet. An additional 800 square feet of office space may be available within the building. This should be sufficient for the number of staff provided for in the early years. The company has a lease for five years in the current space with an additional five year option. There is an option in the expansion space as well. Distribution in the first year will be managed from one center in Southwest Portland. In two to five years we intend to manage the distribution of resources through a contract capable of handling both the wholesale distribution and retail compliance. (Engel 2005 P.26)

Flavor and perfume oil will be developed and produced at our facilities Pontrieux contract and Nice in France, and Compton, California. The productions of garments are managed through our contract manufacturer of sports-related ...