Surprezoo

Business
Plan

Presented by:
Zeus Team
 Ahmed Abdelbaqy
Supervised by:
 Dina Ghazaly
Dr Ahmed Fouad
 Karim Essam Elsherif
 Maha sabry
 Mohamed Abdelwahab
 Yasmin Ahmed
Table of Contents
Executive Summary ...................................................................................................................................... 2
Market Analysis/survey ............................................................................................................................... 2
Target Market ........................................................................................................................................... 2
Industry/ Field Analysis ............................................................................................................................. 3
Product/ service Analysis .......................................................................................................................... 8
SWOT Analysis......................................................................................................................................... 11
Entry barriers .......................................................................................................................................... 11
Company Description ................................................................................................................................. 12
Surprezoo Goal........................................................................................................................................ 12
Surprezoo Objectives .............................................................................................................................. 12
Surprezoo strategic roadmap ................................................................................................................. 12
Surprezoo Business model ...................................................................................................................... 13
Core Competencies ................................................................................................................................. 14
Legal Form of the business ..................................................................................................................... 14
Surprezoo Ownership ............................................................................................................................. 15
Organization and Management ................................................................................................................. 15
Stakeholder’s value chain ....................................................................................................................... 15
Organization chart .................................................................................................................................. 16
Organization Job Analysis ....................................................................................................................... 16
Compensation plan ................................................................................................................................. 18
Marketing/pricing strategies ..................................................................................................................... 19
Competitive Analysis ............................................................................................................................... 19
Pricing Strategy ....................................................................................................................................... 20
Service Description ..................................................................................................................................... 21
Service overview ..................................................................................................................................... 21
Phases of operational life cycle............................................................................................................... 21
Financials .................................................................................................................................................... 30
Start-up expenses ................................................................................................................................... 30
Fixed costs ............................................................................................................................................... 30
Marketing Costs ...................................................................................................................................... 30
Break even Analysis................................................................................................................................. 31
1st year income statement ...................................................................................................................... 32
2 years income statement ...................................................................................................................... 33

1
Executive Summary:
Egypt’s cosmetics market has maintained steady growth despite the downturn in the
economy, the depreciation of the Egyptian pound and some serious regulatory
challenges. According to market researcher Euromonitor International, in 2016, this
market grew by 18% in value terms, year-on-year, to total Egyptian Pounds EGP1.6bn
($90.5m). The above statistics gave us an indicator that this field might be highly
potential for a new business and after further analysis including females’ behavior
towards cosmetics it was clear that some of them can dedicate a monthly budget for
their beauty care and they are in need for daily routines, so by offering the proper
counselling and a adding different experience to the customer while using the products
(Surprezoo) our service will be able to add a unique identity to the industry.
Simply (Surprezoo) is a full suite service dedicated for females’ beauty, it starts with a
subscription service that delivers samples of the different beauty products to offer
females the experience of trying products before buying it; the choice of the products
inside the box depends on a detailed customer profile filled by the customer concerning
all details about their bodies, trials and routines. This data base and the analytics
produced from it will benefit the companies working in this field as well (our B2B
customers). After receiving the box the customers can scan the QR code on the box to
open videos and read articles concerning their routines and the products they received
(the counselling part). The subscription service will lead the customers to visit our
website and application platforms so they can initiate online purchases for the full
products.
750,000 EGP is the required capital for (Surprezoo) including development of the app
and website platforms, establishment expenses, service logistics, marketing activities,
salaries and content development (beauty experts and influencers) while the sources of
revenues are multiple including subscription fees, database analytics selling, website
and app platform Ads, commission on market place purchases so based on
(Surprezoo) business plan it’s expected to breakeven sales by the 4th quarter of the
second year and the ROI can be expected from the wide growth of this industry.

Market Analysis / Survey:

 Target Market:
(Surprezoo) market consists of consumers whom are beauty products users
Mostly females between age group 22 – 54 years old who has online presence and
benefited from e-commerce before targeted as diagram below;

2
 1. Demographics
 Age: 22- 54
 Gender: female &male
 Residential Area: Cairo & Giza Resident
 Education: College Graduate
 Single, married
2. Psychographics:
 Internet & Social Media user
 Busy to shop at store
 Into online shopping
 Influencers’ Followers
3. Interests
 Shopping online
 Technology
 Internet
 Trying new products
 Fashion Trends

 Industry / field Analysis:

1. Economy and E-commerce:
Egypt is home to the highest number of Internet users in the Arab world, with over half
the population online, accounting for 48 million users. In 2017, the Egyptian B2C
ecommerce turnover grew by 22% to $5 billion USD. Egypt had an online population of
20.3 million of people who were aged 15 and older, of the total online population, 7.8
million bought something online in 2015. The average spending per eShopper was $641
USD in this year.1
Currently, mobile phones, tablets and iPad are driving much of the E-commerce growth;
customers are using mobile phones for making purchases as well as for searching and
comparing products they are willing to buy.
The E-commerce in Egypt hit USD 770 million in 2015 and reached USD 1.3 billion in
2016 and expected to reach 2.7 USD billion by 20202, online retails in Egypt is highly
growing and this can be clear in the below info-graph showing the online retail
penetration;

1 https://www.ecommercewiki.org/Global_Ecommerce_Figures/Africa/Egypt
2 https://dailynewsegypt.com/2015/05/12/egyptian-e-commerce-market-to-reach-2-7bn-by-2020/
3
(Source: Global web index, q2& q32017. based on a survey of internet users aged 16-64. note:
data has been rebased to show total national penetration, regardless of age)

However still Egyptians have a problem with online payment and they prefer cash on
delivery and Less than 4% of the population have debit cards and a little less than 2%
have credit cards. This is an obvious hurdle that has to be overcome before huge gains
are seen in the e-commerce market. Many Egyptian banks do not allow their clients to
purchase goods online using their debit or credit card.3
Also the e-commerce in Egypt released what’s known by social media influencers and
bloggers who play a very important role now days in consumers’ buying decisions and
shape consumers’ preferences as they present the latest trends and offers from
different sources and companies that may suit many consumers’ needs. It’s very clear
that the online buying behavior has been increased in comparison with previous years
and this comes from increasing the trust day by day through word of mouth and the
influence of these influencers on the online users. The power of social media
succeeded to affect a lot of offline businesses and affect their reputation. Social media
is becoming the new face of interaction between people around the world. In particular,
in 2016, the new trend of beauty bloggers and fashionistas popped up followed by
millions of women due to the great advice on fashion and beauty tips they give.

2. Cosmetics Industry:
Competition in Egyptian beauty and personal care became more aggressive between
leading players while niche players struggled in 2016. Due to the hikes in unit prices,
the leading players tried to attract consumers as much as they could with promotional
products during 2016 to rebalance consumers’ expenditure with noticeable marketing
campaigns. Overall, 2016 embedded the leading players which prospered while niche
players aimed to survive within such a challenging environment.4

Something was very interesting and might a lot affect the idea of the subscription box is
that the development of packaging gained a new level of innovation in Egyptian beauty

3 http://twoschmucks.com/country/egypt-e-commerce-data/
4
http://www.euromonitor.com/beauty-and-personal-care-in-egypt/report
4
and personal care in 2016, which was considered a factor that may have an effect on
consumers’ preference. Many companies have tried to keep updating their products’
packaging to compete with other products besides reviving the old designs with new
design’s spirit and new formulas or scents.5

Egypt’s make-up market remains vibrant despite of the Egyptian economy as a whole.
Researchers refer the main reason of this to the growth of the country’s large young
population that has kept sales buoyant. Under-15- year-olds account for a third, or
34.2%, of Egypt’s 94.79 million people, while just 3.9% of the population is over 65
years old.6

According to the Euromonitor report we can find a forecasted increased growth in the
followed year in different cosmetic market sectors as shown in info graph below;

Forecasted Data. Source Euromonitor International

The reported figures for the cosmetics and personal care market of Egypt are showing
uptrends for both Exportation & Importation.

5
Ibid
6
(Source CAPMAS Report Dec-2017)
5
3. Market research and data analytics Industry:
Marketing research (MR) is used to discover consumer insights. It is the
systematic gathering, recording, and analysis of qualitative and quantitative data
about issues relating to marketing products and services in order to identify and
assess how consumer behavior is impacted by changes to the marketing mix.
As strategic business partners, marketing researchers leverage their expertise in
consumer behavior and discover insights to translate, communicate, and
advocate the “voice of the consumer.” They turn data in powerful insights for real-
world business applications, sharing their knowledge to help shape the creation
of new products, packaging, promotional events, and the development of
branding and advertising campaigns.
Market research is one of the key factors used in maintaining competitiveness
over competitors. Market research provides important information to identify and
analyze the market need, market size and competition. Market-research
techniques encompass both qualitative techniques such as focus groups, in-
depth interviews, and ethnography, as well as quantitative techniques such as
customer surveys, and analysis of secondary data.
According to a recent report by First Research Inc., the global market research
industry produces $45 billion in revenue each year. Although Europe and the
United States lead the industry overall, other countries such as China, Brazil,

6
Russia, and India are experiencing increasing demand for services related to
market research.
IBISWorld predicts that the increasing use of social media and the changing
media landscape will “revolutionize traditional methods of conducting market
research.” Between 2016 and 2020, IBISWorld expects industry revenue growth
to accelerate in the U.S. as more market research firms adopt new innovative
methods.
Global revenue of market research from 2008 to 2016 (in billion U.S. dollars)

In Egypt, There are number of Market Researches companies, some are

operating from Egypt and others are conducting researched about Egypt from
abroad.
Most famous governmental research companies is the Central Agency for Public
Mobilization and Statistics (CAPMAS), yet there are also a number of private
research companies too.
The Main Challenges for Market Research process is related to Privacy and
security issues as modern consumers are becoming increasingly more private
and more suspicious of research organizations asking those questions about
their thoughts/feelings/behaviors. This causes them to opt out of surveys, panels,
interviews, etc.
During our communication with Cosmetics Company we also found that data on
the consumer preferences is very limited and this could be giving advantage /
profitable profile to operations that is having strong access to such kind of
analysis and data when sharing this with the relevant concerned
industries/organizations.

7
  Product / service Analysis:
Our Market Survey is supporting this direction of growth/needs as it is showing that
56.2% are using cosmetics on daily basis & 96% of surveyed individuals are showing
their willingness to follow /continue following hair and skin care daily routine, almost the
same percentage as well are showing their potential willingness of start testing / using
new products different from their currently used products
The survey is showing that there is a large sector (77%) actually who prefers to have
the chance of testing their cosmetic products as samples before buying them this
strongly promotes for the subscription box idea. It provides monthly samples that suit
each customer, this enables the customer to test the product before purchasing it, in
addition to trying and testing various products. With the subscription box’s products, the
customer will test the sample of new products and if it suits her, she will purchase it.
The subscription box will also provide rapid delivery within a week for the purchased
products, in addition to after-sale services by ongoing support to the customers and
solving any problems through the company’s website.
 Survey Analysis:

Do you use cosmetics on Do you have hair and skin

daily basis? care daily routine?

No 44% No 48%
Yes 56% Yes 52%

Are you interested to follow a How much you spend on

routine concerning your hair your cosmetics monthly ?
and skin beauty?
16 More than 500 LE

23 50 : 100 LE

Maybe 3 400 : 500 LE

42% Total
No 15 300 : 400 LE
55%
Yes 22 200 : 300 LE

31 100 : 200 LE
3%

8
 Are you Willing to try new How do you buy your
products (Yes, No)? products (Cosmetics, hair &
skin care)?
2%
Go directly to
Maybe 33% stores and shop
No 31%
You are ok with
Yes 63% both options
67%
4% you prefer to order
online

How would you like to pay Would you like to try samples
for such service? of any product (Cosmetics,
2% hair & skin care) you buy
8% before buying it?
Cash on delivery
Credit Card 18%
Maybe 5%
Fawry
No
90% Yes 77%

How much you spend on your Are you satisfied with your
hair and skin care monthly ? currently used products?
12 More than 500 LE

21 50 : 100 LE 23%
14 400 : 500 LE No
15 300 : 400 LE Yes

26 200 : 300 LE 77%

22 100 : 200 LE

9
 Most used brands in skin Most used brands in
Care cosmetics

30 Clean & Clear 64 Mac

30 Eva 49 Bourjouis

33 Garnier 53 Amanda
No. of customers No. of customers

61 Bioderma 75 Maybelline

43 Loreal 65 Loreal

80 60 40 20 0 80 60 40 20 0

Most used brands in hair care

27 Gliss

43 Tresseme

No. of customers
36 pantene

60 Loreal

70 60 50 40 30 20 10 0

10
  SWOT Analysis:
Strengths Weaknesses Opportunities Threats

Big market size.

Purchasing
Product/ Service Personalized Market penetration.
Easily to imitate power.
Offering Service Reach.
Current need for
service.
High fees of
social media Pool of available
Human Professional No commitment for
influencers and influencers and
Resources Consulting Team startups
beauty bloggers
consultants
Devaluation of currency
Multiple Revenue
SMEs funding and increase in tariffs
Streams. Low funding
Finance competitions and on such products.
Multiple collection sources
agencies Customers prefer cash
channels
on delivery.
Large size of
Precise Market High costs of
suppliers and Rising costs of
Operations Database. technology and
business transportation
Follow up. operations
partners

 Entry barriers:
1. According to Doing Business 2017, starting a business has become easier as
the country has merged various procedures. In addition, the country has clarified
some ownership and control structures for the minority investors that will
increase shareholders’ rights in the major corporate decisions.
2. High costs of logistics including packaging, delivery and money collection, in the
first 3 years we will have to bare these costs however by the fourth year we will
be able to have our own couriers and produce our packages.
3. The social experience that females gain while shopping and that they might take
the samples and go to buy the product from the store and this will be replaced
with the experience gained while following bloggers and influencers and the
content development of daily routines and unboxing activities.
4. The acquisition of Amazon on Souq and dealing with a giant of online retail.
5. The idea of subscription concept in Egypt and prepaid services and this will be
influenced by the free subscriptions to the social media blogger and influencers
and unboxing activities as well.
6. The operations needed to maintain customer satisfaction and follow up
concerning their feedback with samples.
7. The huge number of indirect competitors ranges from stores and pharmacies to
online and offline retails.

11
Company Description:
 Surprezoo Goal:
To lead the cosmetics online shopping and its market research. To be the main
market place for all small and medium sellers on social media as well as leading
subscription services in Egypt in 5 years.
 Surprezoo Objectives for the 1st year:
1- Increase brand awareness.
2- Gather 50000 customer profiles in 1 year.
3- Gather 1500 subscription by the 4th quarter of launching Surprezoo.
4- Promote online sales.
5- Reach 200 partnerships with small, medium and big size cosmetics suppliers
by the 4th quarter of launching Surprezoo.

 Surprezoo Strategic Road map:

4-5 Years
2-3 years
•Product development
•New services and new
1st year
•3000 subscriptions
lines
•200000 customer •2000 subscriptions
•Expand market profiles
research services •10000 customer
•Increase online sales profiles
•Maintain 10% of 20% from 1st year
cosmetics Market share •Promote online sales
•1000 suppliers
•200 suppliers

12
  Surprezoo Business Model:

Key Partners Key Activities Value Proposition Customer Customer Segments

 Beauty products  Research (gather (Business 2 Customer) Relationships  Women concerned
providers information on and  Personalization of  Pampering / Care / with beauty (22-54
 Logistics(packaging feedback from service Trust years).
and delivery) subscribers)  Beauty / care and  Sampling platform for  Beauty brands
 Printing  Data analysis on styling products brands (products providers)
 App and website consumer profiles  Convenience  Discovery service  Beauty brands
developers  Content publishing  Variety (encourage monthly (seeking awareness
 Beauty consultants  Merchandising  Surprise factor discovery of through content and
and influencers  Marketing and promotion  Counseling products). customer insights).
 Assembly and curation of (Business 2 Business)  Gathering  Market research
boxes  Platform for brands companies concerned
 Brand and subscriber (sampling) with beauty market
acquisition  Exposure to subscribers data.
Key Resources profiles (their target Channels
 Customer base and market) as well as their  Social media
intellectual data feedback concerning platforms
 Logistics products  Website and mobile
 Counselling  Advertising space and application
 Mobile and website data insights  Pick up stores
platform and commerce  Box delivery
 Logistics

Cost Structure Revenue Streams

 Logistics (packaging & delivery)  Monthly subscriptions
 Marketing & sales  Providing brands with customer data
 Staff  Commission from online market place
 Development and maintenance of mobile app and  Advertising space and branded content
website
 Beauty consultants and influencers

13
  Core competencies:
1. Client focus: Making customers and their needs a primary focus of one’s actions;
developing and sustaining productive customer relationships.
2. Innovation: Taking prompt action to accomplish objectives; taking action to achieve
goals beyond what is required; being proactive in addition to generating innovative
solutions in work situations; trying different and novel ways to deal with work problems
and opportunities.
3. Building Customer Loyalty: Effectively meeting customer needs; building productive
customer relationships; taking responsibility for customer satisfaction and loyalty.
4. Building Partnerships: Identifying opportunities and taking action to build strategic
relationships between one’s area and other areas, teams, departments, units, or
organizations to help achieve business goals.
5. Building Trust: Interacting with others in a way that gives them confidence in one’s
intentions and those of the organization.
 Competitive Advantage:
Personalized full suite of beauty service delivered directly to the customer.
 Legal Form of Business:
(Surprezoo) will be established as a Limited Liability Company (LLC), as we tend to ensure
that our liabilities as partners is only limited to the company and its assets, and not to have an
effect on any of the partners personally, also the fact that we have a medium size startup
capital, we will outsource the legal service for the first 2 years.
) 1883 ‫خطوات تأسيس شركة ذات مسئولية محدودة (طبقا للقانون الصادر في عام‬
‫ الستخراج شهادة بعدم التباس االسم التجاري‬: ‫ مكتب السجل التجاري بهيئة االستثمار‬-1
‫ ايداع راس المال – اذا وجد – وبدون حد ادنى‬: ‫ البنك‬-2
‫ سند ملكية أو حيازة مقر الشركة مثبت التاريخ أو إقرار بتقديم السند فى خال سنة من تارخ القيد فى السجل التجارى‬-3
‫ خطاب قبول تعيين مديرين‬-4
‫ خطاب قبول تعيين مقدم من مراقب الحسابات‬-5
‫ الحصول على صورة طبق االصل من شهادة قيد لمراجع الحسابات في جمعية المراجعين والمحاسبين الذي سيتولى مراجعة‬-6
‫حسابات الشركة‬
‫ ايداع كافة االوراق والمستندات السابقة حيث يقوم محامي الهيئة باستالم المستندات ومراجعتها‬:‫ ادارة التاسيس بهيئة االستثمار‬-7
‫وكتابة عقد الشركة‬
‫ تقوم ادارة التاسيس باستخراج ترخيص مزاولة التجارة من الغرفة التجارية‬-8
‫ توثيق عقد الشركة في الشهر العقاري‬-9
‫ لتقييد الشركة في السجل التجاري بموجب االوراق السابقة‬: )‫ مكتب السجل التجاري(مرة ثانية‬-10
‫ اصدار البطاقة الضريبية من مكتب الضرائب بهيئة االستثمار‬-11
‫ تسجيل الشركة والموظفين فيها‬: ‫ مكتب التأمينات االجتماعية‬-12
: ‫رسوم التسجيل‬
‫ جنيها‬500 ‫ تقريبا‬: ‫ البنك‬-1
‫ جنيها للنشر‬150 : ‫ هيئة االستثمار‬-2
ً ‫ جنيها‬1000 ‫ جنيها ً وحد أقصى‬100 ‫فى األلف بحد أدنى‬1 ‫ رسوم التأسيس‬: ‫ هيئة األستثمار‬-3
‫ جنيها‬2000 ‫ جنيها وحد اقصى‬24 ‫ من راس المال بحد ادنى‬%2 ‫ نسبة‬: ‫ الغرفة التجارية‬-4

14
 ‫الشهر العقاري ‪ %0.25 :‬من راس المال بحد ادنى ‪ 10‬جنيهات وحد اقصى ‪ 1000‬جنيها‬ ‫‪-5‬‬
‫رسوم نقابة التجاريين ‪ 125 :‬جنيها ً إذا كان راس المال أقل من‪ 500‬الف جنيها ً و ‪ 250‬جنيها ً إذا كان راس المال ‪ 500‬الف‬ ‫‪-6‬‬
‫جنيه وأكثر‪.‬‬
‫السجل التجاري ‪ 56 :‬جنيها‬ ‫‪-7‬‬
‫األتحاد العام للغرف التجارية ‪ :‬ترخيص المزاولة إشتراك سنوى‪ 2‬فى األلف من رأس المال المدفوع بحد أدنى ‪ 24‬جنيها ً وحد‬ ‫‪-8‬‬
‫أقصى ‪ 2000‬جنيها ً‬
‫رسم شهادة المزاولة والشعبة والدمغة ‪ 29 :‬جنيها ً‬ ‫‪-9‬‬
‫البطاقة الضريبية والتأمينات ‪ :‬بدون رسوم‬ ‫‪-10‬‬

‫‪‬‬ ‫‪Surprezoo Ownership:‬‬

‫‪The ownership will be distributed equally among the 6 owners however the signature right‬‬
‫‪will be delegated to the CEO only.‬‬

‫‪Organization & Management:‬‬

‫‪‬‬ ‫‪Stakeholder's Value Chain:‬‬

‫‪15‬‬
  Organization Chart:

CEO

Sales &
Operations
Finance Leader Marketing HR Leader R&D Leader
Leader
Leader

Online Marketing R&D Team (5 Operations Team

Team (2) members) (5 members)

Offline
Logistics team
Marketing Team
(2) (4)

CRM Team (5)

 Organization Job Analysis (12 positions):

Position Job Description Job Specification

1 CEO (Yasmin) Oversee the whole operations and 7-10 years of experience in
make sure that customer receive the field of retail and logistics
promised value and support the rest of management
the team.
2 Finance Leader Oversee the financials of the company, Accounting and financial
(karim) release periodic reports concerning management good
financial position, breakeven analysis, knowledge.
income statement and cash flow. 1-3 years of experience as
Responsible for dealing with the accountant
outsourcing legal service that we deal
with.
3 HR Leader (Dina) Manage the HR processes including 3-5 years of experience as
planning, recruitment, compensation HR Generalist
and benefits, training and development.
4 Operations Leader Manage the operations of online retail, 5-7 years of experience in a
(Ahmed Abdelbaqy) subscription box logistics, delivery and similar position
collection, and aftersales needed
service. Will be responsible also for
contacting the outsourcing IT company
for any problems encountered with the
technology infrastructure.

16
5 R&D Leader Mainly responsible of creating surveys 3-5 years of experience as a
(Mohamed and consumer profiles questionnaires, business analyst
abdelwahab) gathering data and analytics, managing
the accounts of the companies that act
as customers for the data analytics.
6 Sales & Marketing Set and oversee sales and marketing 5-7 years of experience in a
(Maha sabry) strategy, establish tactics and monitor similar position
its performance.
7 Operations Team Responsible for matching customer Fresh graduates with good
member profiles with the needed samples and organization, problem solving
routines, follow up on receiving and and follow up competencies.
feedback of the customers Bsc degree of business and
administration is preferred
8 Logistics Team Responsible for inbound and outbound Fresh graduates with good
member logistics including shipping, packaging, organization, problem solving
delivery and collection and follow up competencies.
Bsc degree of business and
administration is preferred
9 R&D Team member Responsible for data gathering, data 1-2 years of experience in
analysis, market research and research field of analysis.
design. Bsc of economics is preferred
10 Online Marketing Responsible for creating social media Fresh graduates with good
Team member content and moderate social media computer skills and perfect
platforms. social media exposure.
Extra curriculum activities
participation is a must
11 Offline Marketing Responsible for offline marketing Fresh graduates with
Team member activities, activation events, product creativity, innovation,
development and integrated marketing planning competencies.
communications Extra curriculum activities
participation is a must
12 CRM Team member Create a positive relationship with Fresh graduates with
customers; make sure that they are organization, follow up and
satisfied with the service they receive. reporting competencies.
Extra curriculum activities
participation is a must

17
  Compensation plan:
Position Manpower Gross Salaries Total Annual
Requirements salaries
1 CEO (Yasmin) 1 15000 180000
2 Finance Leader (karim) 1 7000 84000
3 HR Leader (Dina) 1 7000 84000
4 Operations Leader (Ahmed 1 12000 144000
Abdelbaqy)
5 R&D Leader (Mohamed abdelwahab) 1 12000 144000
6 Sales & Marketing (Maha sabry) 1 12000 144000
7 Operations Team member 5 3500 210000
8 Logistics Team member 4 3500 168000
9 R&D Team member 5 3500 210000
10 Online Marketing Team member 2 2500 60000
11 Offline Marketing Team member 2 2500 60000
12 CRM Team member 5 2500 150000
p.s. the 6 owners will receive these salaries from the beginning of the 2 nd year.

18
 Marketing / Pricing Strategy:
(Surprezoo) service is specially tailored for each customer. It provides monthly samples that suit
each customer, this enables the customer to test the product before purchasing it, in addition to
trying and testing various products. After the devaluation, most of the prices had increased which
make each person thinks many times before trying a new product. With the subscription box’s
products, the customer will test the sample of new products and if it suits her, she will purchase it.
The subscription box will also provide rapid delivery within a week for the purchased products, in
addition to after-sale services by ongoing support to the customers and solving any problems
through the company’s website.
We will target females, in the age from 22-54 years, educated, and live in Cairo or Giza. To reach
them, we will make corporate deals with delivery companies like Aramex and DHL to ensure the
safe delivery of the products.
 Competitive Analysis:
Our key competitors are:
 Souq and Jumia
 Pharmacies
 Beauty stores
 Beauty centers / Hair dressers
 Premium cards
We compared our service with our competitors to figure out our competitive advantages and
disadvantages by weighing them as follows:

Beauty
Souq and Premium
Pharmacies Beauty stores centers /
Surprezoo Jumia cards
Factor Wt coiffeur

Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score
Provide
samples of
25 25 100% 0 0 8 32% 8 32% 8 32% 0 0
various
products
Provide
20 17 85% 0 0 12 60% 15 75% 20 100% 0 0
consultation
Solve problems
and reply on
20 15 75% 18 90% 12 60% 10 50% 10 50% 8 40%
customer’s
feedback
Discounts,
offers, loyalty
15 6 40% 12 80% 9 60% 9 60% 8 53% 14 93%
Quality of 10 8 80% 8 80% 8 80% 7 70% 7 70% 7 70%

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services
provided
Payment
Process (online 5 1 20% 5 100% 2.5 50% 1.5 30% 0 0 2.5 50%
payment)
Delivery to
home
5 5 100% 5 100% 4 80% 2.5 50% 1.5 30% 1 20%
Total
71% 64% 60% 52% 48% 39%

In addition to the above table, there are other factors that may be weakness at the startup of our
project for example:
o The outreach: at the startup phase, we will not have a huge outreach like our
competitors, but when the service suits the customers, this will increase our outreach.
o Company reputation: the startup of a new company and business is challenging and
needs a huge effort to build trust with customers.
 Pricing Strategy:
o The pricing strategy will be cost plus. Cost-plus pricing is relatively simple, as it only
requires the unit cost and desired profit margin for calculation. Unit cost consists of all
fixed and variable costs associated with making a product and bringing it to market –
including, labor, utilities, samples, packaging, delivery, marketing, and overhead.

o Cost-plus pricing is a straight-forward and effective strategy because it ensures that all
costs are covered before profits are calculated. Unlike some pricing methods which
hedge seasonal losses against profitable time-periods, cost-plus pricing has the added
advantage of generating steady profit at an established, consistent rate.

o However, shifting market factors, competitor behavior, and consumer activity are
closely monitored to ensure that the profit margin used in cost-plus pricing is one that
maximizes net gains and avoids arbitrary decision-making.

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Service Description:
 Service overview:
 Tailored Beauty Subscription box to deliver monthly beauty samples that
Service Idea fits your profile & Preference.
 Customer Reach via Booths , Social Media , Web Site , & Mobile App

 Custom Subscription Box that is tailored to your beauty

Special Benefits  Variety of Options in our Marketplace that match your profile

 Personalized Beauty Counseling

Unique Features  Online Beauty Shop

 Influencers to promote the service

 Ladies tendency to prefer store experience
Limits & Liabilities  Online Payment adoption in Egypt
 Capital to support Booths & Fund Fashionista Events

 Box & Products Flexible Delivery options for Subscription Boxes & online
Delivery
Store
 Beauty Manufacturers: Samples & Beauty Products on the Online store
 Delivery & Collection: Aramex
 Technology: Cloud CRM & Data Analytics
Suppliers  E-Payment: Fawry
 Counseling: Influencers and beauty consultants

 Phases for Project Operational Life Cycle:

Phase 1: Aware:
This phase tends to promote the service among the selected target market discussed
earlier in the document
Tactics in this Phase:
1. Know our customer better by gathering data about customer preferences and
routines this will help us to better Customer Retention rate
2. Expand Business to Online Store
3. Heavy presence: By placing our brand in popular areas with heavy presence of the
target market audience using ushers and R&D team at first then extending to
Shopping Malls, Social Clubs and universities later based on the cost structure. The
heavy presence will allow us to:
 Gather more precise data from our customers
 Enhance our results due to larger data sets available
 Encourage the demand on the Subscription box

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 4. Developing content of articles, videos and routines to be able to provide the
customers with the personalized service, and establishing Social Media Accounts on
the most recommended social media platforms used by the target market audience
 Facebook
 Instagram
 Twitter
 YouTube
These pages will display a careful selected content to enhance the consumer’s
interaction with the brand & to form a community were experiences are shared.
Social Media campaign ads would be used to expand the reach of the pages to the
target audience, for Facebook as an example.
Here you are a detailed guideline for creating online campaign;
o Facebook Extensive advertising guidelines

o Choosing campaign Objective: To choose the right ad objective, answer the question
"what's the most important outcome I want from this ad?" It could be sales on your
website, downloads of your app or increased brand awareness.

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o Select your audience: Using what you know about the people you want to reach –
such as age, location or many other things– choose the demographics and behaviors
that represent your audience.

o Decide where to run your ad: choose where you want to run your ad, either on
Facebook, Instagram, or the apps and websites in Audience Network – or across all
of them. In this step, you can also choose to run ads on certain mobile devices.

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o Set your budget: Enter your daily or lifetime budget, and the time period during which
you want your ads to run.

o Pick a format: You can choose to show a single image or video, or multiple images
and videos in your ad. Or you can choose to create a slideshow ad or canvas ad.
o Photo: Use beautiful Images to convey your messages
o Carousel: Show multiple images or video in aa single ads
o Video: Tell your story with sight, sound & motion
o Slideshow: Create a lightweight video ad to connect with people across
connection speeds

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o Measure and manage your ad: Once your ad is running, you can track performance
and edit your campaign in Facebook Ads Manager, Power Editor or Business
Manager. Within these tools, you can see if one version of your ad is working better
than another, or if your ad isn't being delivered efficiently, and make adjustments
accordingly.

5. Establish Web site & Mobile Application: They will serve as our main customer
interaction portal with connection to all post on Social Media. Advertisements on
both platforms is considered one of our cash revenue streams.
Sample of offers received:

6. Supplier Management: Here we will tighten the competitive advantage by allowing

the most prominent beauty products to be displayed on our marketplace (Web site &
Mobile App)
7. Social Media Influencers by giving them free subscriptions and shooting unboxing
videos to increase word of mouth and promote (Surprezoo) in addition to
sponsoring events & host the following media influencers, those names were
nominated via the target market survey results as trusted beauty consultants:

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  Dina Ragheb (Makeup Artist)
 Aliaa Awni (Model)
 Yasmin Yousri
 Sara Sabry
 Amy Mwafi
 Nada al Ashmouny

Phase 2 Join:
This phase will promote the user subscription & clarifying all product details & benefits to
consumers
Tactics in this phase:
1. User & Subscription Management
 Data Curation (Collection & Sorting of Information) from Booths & Events
 Self-registration via Web Site & Mobile Application
 Subscriptions of definable periods, pricing, and payment models
 Automatic or Term based renewals Options
 Complete view of all Users, Profiles, and Orders
2. Promote Customer Interactions
 Watch & read Professional Material
 Subscribe to a Subscription Box
 Buy a Product
 Follow up a Purchase
 Compliant or Inquire
3. Customers deal with Payment Options
 Face to face cash payment of subscription fees during aware phase.
 Cash on Delivery (can collected via the delivery courier) for the first 2 years
 Integration with AR and credit management systems
 This has been selected as the most appropriate billing solution from the data
gathered from the market
 Payment gateway integration to popular merchant systems “Fawry” :

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 o A phone Interview was held with FAWRY in order to understand how the
service works if we want FAWRY to host the online payment service for
Surprezoo
o It has been highlighted that the fee for each purchase is 3% from the
purchase value.
o The amount of the 3% can be either Collected from Surprezoo team or
Collected directly from the customer or it can be can be splitted.
o Also for checking the risk of being an overcharge to the customer, it can
also be presented as a 3 LE fee over a 100 LE payment.
o Required Fees to include FAWRY Payment Option: Initial fee of 30,000 LE
and the sales should be at least 5,000 LE per month in order for the
FAWRY service to not charge, Surprezoo shall pay any fees that is
remaining to cover the minimum of 5,000 LE
 Credit Card (E-payment Gateway)

4. Reconciliation:
 Payment gateway integration to popular merchant systems
 Payment reconciliation and history
 Integration with customer’s reward points
 Coupons & refer a friend
 Refund issues

5. Define Customer Tiers & Product Categories: This will be engineered to ease
Operational efficiency & assure a personalized profiling & product assignment for
Customers
Product Categories
 Hair & Skin
 Bath & Soap
 Nails
 Make Up
 Perfumes
Customer Tiers
 Purple
 Gold
This will allow us to provide a more modular approach, where the samples can be
delivered in 2 main categories who differ in contents, size, & brands
Phase 3 Interact:
1. Order Management
 Item Selection & Order Placement
 Shipping Integrations & QR code generation
 Order Delivery follow up

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  Courier Service Level Management (SLA) & Quality
 Special Delivery Options (Gifts, Orders, ....)
This has a paramount importance in retaining the customer by a unified shopping
experience via all available channels. This can also be used to be a core competency
The delivery Part will be done via Aramex’s Domestic express service
Domestic Express is our fastest door-to-door delivery for your urgent packages to
anywhere inside Egypt. We offer same-day and next-business-day door-to-door delivery
for your urgent domestic packages to main cities in Egypt with proof of delivery, inclusive of
various other solutions tailored to meet your business needs. By using our smart tools
available on aramex.com, you can track your Domestic shipments online. Aramex also
provides you with shipping rates in your local currency included in a consolidated invoice at
the end of the month detailing all your exports.

Our main target is to saturate the market in Cairo & Giza first then expand to the rest of
Egypt

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2. Customer Care Channels
The following channels will allow Omni-channel experience with the customer,
where which the customer care & technical support will be provided in a consistent
manner. Our brand is our main assets that must be defended
 Web site
 Mobile Application
 Social Media (Facebook, Twitter, Instagram, YouTube)
 Call Center
 Email
Social media response times to consumer complains can be a deciding
factor in the whole brand reputation, as the Social media power has
become a deciding factor in multiple cases.

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Financials:
 Start Up Expenses:

Expenses Description Amount (EGP)

Website & Mobile application development 150,000

Processing of premises 40,000

Legal & Licenses 15,000

Total Startup Expenses 205,000

 Fixed Costs

Total Salaries per year 750,000

Renting Flat 42,000

Platform & Apps maintenance 45,000

Marketing Activities 497,000

Startup Expenses 205,000

Total Fixed Cost 1,539,000

 Marketing Costs:

Social Media marketing for 12 months 42,000 200 USD / Month

5 in the 1st 3 months then 2 every month

Consultants & Influencers 135,000
x 5000/influencer
Ashers collecting data from Beauty 20 Usher x 8 Weekends x 4 Months x
320,000
stores & Pharmacies 500/day

Total 497,000

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 Break Even Analysis:

Item Value

Price Per Subscription 150

Variable Cost Per Subscription 50

Contribution Margin 100

Total Fixed Costs 1st Year 1,539,000

Break Even number of Subscriptions 15,390

1st Year Subscriptions 11,550 (3,840)

Uncovered 1st Year Fixed Costs 384,000

Total Fixed Costs 2nd Year 1,987,800

Revenues From Selling Customer Data (225,000)

Total 2,146,800

Break Even number of Subscriptions 21,468

2nd Year Subscriptions 26,000 4,532

BreakEven Nov 2nd Year 23 Months

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 First year income statement:

32
 2 years income statement:

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