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Chapter 1
Introduction

1.1 Background and Signification of the Project

Nowadays, the consumer especially women concern beauty, healthy and nature
product that safe to the consumer, not become the pollution after used to environmental, and
reduce chemical. Through the general cosmetic product in the market most compound with
chemical mainly which faster result but might have negative effect in the long time.

The cosmetics industry is one of the fastest growing sectors not only in Thailand, but
the entire Asian region as well. The year 2006 saw the fastest growth period in the cosmetic
industry, with a growth rate of 20 percent. Although the economic crisis has had a negative
impact on consumption levels, results during 2008-2009 show the cosmetics industry’s
growth rate is at 15 percent with an average market value of approximately 10,800 million
Baht.

During the initial stages of industrial development, there were very few manufacturers
of cleansing and skin-care cosmetics. Most manufacturers were foreign companies who
established a production base in Thailand. The majority of cleansing, skin-care products, and
cosmetics that were distributed to the market were imported. The only customers who had the
means to afford these products were the upper-class who had a high degree of purchasing
power. The high price of imported products was a weakness as they were too expensive for
middle and lower class customers. However, this lack of affordability presented an
opportunity for investors to establish a cosmetics production base in order to meet the desire
of those less affluent customers. In this way, the production of cleansing and skin-care
cosmetics in Thailand has expanded and developed continually.

The company decided to production in domestic of Chiang Rai province that critical from:
- Lower cost of hire local labor
(Average revenue of Chiang Rai people 31,448 per year/ 2,620 per mouth),
- Cheaper investment of land and factory building,
- Accessibility to raw material from local agriculture supplier.
- Chiang Rai is the gate of trade aboard with other countries,
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- Strong advantage competition industry,

- High natural quality resource base.

1.2 Project Objective

1. To analyze and research consumer behavior and competitors.

2. To know and identify the potential and trend of market.

3. To know and expand new target market group and attract to the new customer
group.

4. To know or perform the system and learn the process in term of professional.

1.3 Benefits of Project

1. The members have effective and efficiency production process and outcome.

2. The members can create business plan and market strategy.

3. The members can evaluate the advantage from competition in the market.

4. The members can analyze the project in term of financial to evaluate the
business profit.

1.4 Activities / Time Frame

Gantt chart and Time frame of the study

Team Manager

Managing Director

R&D Manager Financial Manager

Sales Manager

Procurement Manager Marketing Manager

Figure-1.1: Organization of one Herb Company

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Process operations

Medical Sciences Research and Herbal extracts &

product Packaging
development manufacturer

Check the Sampling for Cosmetics plant

packaging order testing
chemistry

Marketing Sales Purchasing

Department

Check and sent to

the warehouse

Figure-1.2: Operation method of one Herb Company

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Qtr 1 Qtr 2 Qtr 3 Qtr 4

Project steps Jan Feb Mir Apr May Jun Jul Aug Sep Oct Nov Dec

Explore Market
Need

Develop
Concept for
Product

Begin
Development
Cycle

Develop GUI

User Interface
Test Evaluation

Quality
Assurance
Tsting1

Fix Outstanding
Problem from
Alpha

Beta Version
Release

Quality
Assurance
Testing Phase 2

Fix Outstanding
Problems

Begin Advance
Advertising
Campaign.

Final Quality
Assurance
Testing

Production and
Packaging

Project Development
Marketing Development QA testing

Figure-1.3: Gantt chart of one Herb Company

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Chapter 2
Industry Profile
2.1 Nature of Industry

• History of Cosmetics
20th century face powder label
Cosmetics have been used since Egyptian times. They were also
commonplace in Ancient Greece and the Roman Empire. The idea of using
cosmetics to enhance the appearance has not changed since these times.
Using cosmetics is still designed to capture the appearance of youth in perfect health.
Colorful cosmetics hide the appearance of pale cheeks, pale lips and fingernails and dull hair.
Many of the cosmetics used contained dangerous ingredients. There was often more
importance put on the application of cosmetics rather than washing and cleaning the skin.

Cosmetic practices
From the 1400s onwards whitening the face was one of the most common cosmetic
practices. This was still popular in the 1800s. A mixture composed of carbonate, hydroxide,
and lead oxide was commonly used. This could lead to muscle paralysis or death when used
repeatedly. It was replaced by zinc oxide in the 1800s.Another way to have whiter skin was
to bleed yourself. This was done by using the widespread medical practice of using leeches or
occasionally a more extreme method called cupping. This involved drawing blood by heating
air in a glass cup while having it pressed against the skin. When the heat source is removed
the cooling air causes a vacuum.

Mid 20th century

leg tan label
In the 1920s having tanned skin became popular when Coco Chanel was
seen with a tan on the Duke of Westminster’s yacht. The idea of having
brown skin became more attractive and products were produced that could
create this color artificially.

Nail varnish label dating

from the early 20th century
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Nails and hair

Staining of the fingernails has been used in cosmetics for a long time. The first
examples date from 3000BC in China. They used gum arabic, egg whites, gelatine and
beeswax to create the varnish. The royal family in China used gold and silver nail colours. In
the first century AD black and red were also used. The lower ranks were only allowed to
wear pale colours. In Egypt the colour of nail varnish used also represented social class.
Henna was used to dye the nails. Modern nail varnish comes in a variety of colours and is
actually a variation of car paint.

Label for hair cream dating

from the early 20th century
Hair dye and dressing hair is not new. The Romans, Ancient Egyptians and Greeks
were all involved in elaborate forms of hairdressing and dyeing. Most of the early
hair dyes, such as henna, indigo, sage and camomile, could only darken the hair. Roman
women would show off their dark shiny tresses that had been dyed with a mixture of boiled
walnuts and leeks. They also used blond dyes made from goat’s fat and ashes. In the
Renaissance, blond was also popular as it was considered angelic and mixtures of black
sulphur, alum and honey were painted onto the hair and left to work in the sun. It was in 1907
that the first synthetic dye was created by French chemist Eugene Schueller. It was originally
called Aureole, but later it was renamed L’Oreal. By the middle of the 20th century,
cosmetics were in widespread use by women in nearly all industrial societies around the world.
Cosmetics have been in use for thousands of years. The absence of regulation of the
manufacture and use of cosmetics has led to negative side effects, deformities, blindness, and
even death through the ages. Examples of this were the prevalent use of ceruse (white lead), to
cover the face during the Renaissance, and blindness caused by the mascara Lash Lure during
the early 1900s.The worldwide annual expenditures for cosmetics today are estimated at U.S.
$19 billion. Of the major firms, the oldest and the largest is L'Oréal, which was founded by
Eugene Schueller in 1909 as the French Harmless Hair Coloring Company (now owned by
Liliane Bettencourt 26% and Nestlé 28%, with the remaining 46% are publicly traded). The
market was developed in the USA during the 1910s by Elizabeth Arden, Helena Rubinstein, and
Max Factor. These firms were joined by Revlon just before World War II and Estée Lauder just
after. Beauty products are now widely available from dedicated internet-only retailers, who
have more recently been joined online by established outlets, including the major department
stores and traditional bricks and mortar beauty retailers. Like most industries, cosmetic
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companies resist regulation by government agencies like the FDA, and have lobbied against
this throughout the years.

Top Uses for Herbs

Lotion, facial scrubs, bath products, shampoos and lip products top the list of most
sought after herbal cosmetic preparations. These products normally require an oil or liquid for
the base. Vegetable products like almond oil, avocado oil, castor oil and coconut oil are used
to make lotions and soap. Beeswax, cocoa butter and glycerin are also common components.
Herbal extracts and oils are normally used in cosmetic skin and Hair product because fresh or
dried herbs will not dissolve in a base. Bath products include herbal oils and dried herbs. You
can buy or make sachet bags to hold the herbs and keep them from being washed down the
drain. Many long-forgotten herbal cosmetics are gaining popularity with consumers. Health
and beauty companies are taking their cues from customers. Mineral makeup, though not
actually herbal, provides a natural choice in cosmetics that enhances skin, without clogging
pores. Look around inside and outside your home. You can use flowers, fruits, oatmeal,
lemon juice, vinegar, baking soda and salt to make herbal and natural cosmetics.

• Herb

1. Centella asiatica in cosmetic skin care use

General

Apart from the beauty use of Centella asiatica, it is also of great help when
used on post-operation and trauma scars, as it promotes healing, yet helps to
prevent the formation of excess scar tissue.

Its historic use was in the healing of leprosy wounds, as well as ulcerated skin, wounds, burns
and ulcers. Research has shown that asiaticoside can also help provide treatment for leprosy
and skin tuberculosis, as the bacteria are coated in a wax-like substance that the body's
immune system cannot penetrate, but this waxy coating is dissolved by centella, thereby
allowing the body's immune system to destroy the bacteria.Centella asiatica extract is an
extract of the leaves and roots of the Hydrocotyle Centella asiatica. It is classed as a
biological product and is used as a miscellaneous skin-conditioning agent.It is also known as
extract of hydrocotyle, Fo-ti-tieng extract, gotu kola extract, hydrocotyl extract, hydrocotyle
asiatica extract, Asiatic pennywort, Indian pennywort, hydrocotyle, Mandukaparni (Hindi),
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luei gong gen (Chinese) and is an aromatic creeping perennial that is indigenous to both
tropical and subtropical areas and is found in India, Pakistan, Sri Lanka, Madagascar and
South Africa.The word "gotu kola" means "cup-shaped leaf" in Singhalese - the language of
Sri Lanka. Gotu kola is NOT related to cola or kola nut and contains no caffeine.It is such a
magnificent herbal ingredient that it is used as one of our "signature"ingredients, and used in
almost every product, as it has a positive effect on nearly any type of skin and skin condition.

Historic use of Centella asiatica

This herbal compound has been used in Ayurvedic medicine for a long time, but has
become very popular in the past couple of years for both internal use as well as topical
application - although the cosmetic application is relatively new.In Ayurvedic practice it also
has a valuable and sought-after Vayasthapana effect - helping to retard the aging process.

Active ingredients in Centella asiatica

The main active ingredients contained in Centella asiatica are triterpenes asiatic acid
and madecassic acid, together with triterpenoid ester glycosides - known as asiaticoside and
brahminoside.A volatile oil with p-cymol, b-caryophyllene and farnesene is also found in the
plant.

Reason why Centella asiatica is included in skin care cosmetics

The asiaticosides and triterpenes extracted from the plant have modulating properties
on the development and metabolism of connective tissue, improve the synthesis of collagen
and other tissue proteins by modulating the action of fibroblasts in the vein wall, and
stimulate collagen remodeling in and around the venous wall. It is especially the triterpenoids
that are thought to stimulate the production of collagen I and assist with wound healing. They
therefore improve wound repair, with a better re-epithialisation and a normalization of
perivascular connective tissue, thus allowing an improvement of the venous wall tone and
elasticity. It is found that in poor connective tissue conditions, the triterpenes in Centella
asiatica are able to renew the collagen, in quantity and quality, and restore tissue firmness and
skin elasticity, improving skin appearance and comfort. Apart from this it also has anti-
psoriatic properties. These saponins also help prevent excessive scar formation, by
modulating and slowing down the excessive production of collagen (the material that makes
up connective tissue), at the wound site and also increases the concentration of antioxidants
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in wounds. Various studies have supported these actions of centella and furthermore have
been shown it to be effective in treating surgical wounds, skin grafts, gangrene, traumatic
injuries, burns, chronic skin lesions, ulcers and even leprosy wounds. It has great importance
in preventing and correcting venous insufficiency. Taken internally it appears to exert its
anxiolytic and anti-stress activity by depressant action on the central nervous system (CNS)
involving an increase in the concentration of GABA (gamma-aminobutyric acid) in the brain.

Furthermore, it also is helpful to minimize varicose veins, as it appears to enhance blood

flow, increasing the tone of the connective tissue sheath that surrounds the veins, and helps to
maintain the suppleness of the veins. In a clinical trial it was also shown that asiaticoside
significantly improved wound healing. After reading about all the positive effects that
centella asiatica have on your skin and various skin conditions, it is easy to understand why it
is found in the majority of Dermaxime skin care products.

2. Lemon peel essential oil to help remove cellulite

Lemon peel essential oil acts as a natural astringent, antiseptic, and

bactericide on the skin, which is of particular benefit to people with
problem and acne skin. The rubefacient and diuretic properties are
also used to bring balance to the fluids in the cells and ensuring
optimum circulation - which is needed to remove cellulite.
Cosmetic benefits of lemon peel essential oil.

There are various benefits of lemon peel essential oil as it is an excellent natural astringent,
antiseptic, and bactericide which are of particular benefit to people with problem skin and to
remove cellulite. The rubefacient and diuretic properties are of great value, as it balances the
fluids in the cells and ensure optimum circulation. It further has the ability to stimulate the
white corpuscles in the blood, which defends the body and fights infection. It is also used to
balance the pH of the skin, by counteracting acidity on its surface and acts as a very mild
natural bleach or lightener on the skin, which enables it to brighten dull skin color and calm
redness, as well as the irritation of an inflamed skin.

General information on lemon peel essential oil

It is extracted from Citrus limonum (also known as Citrus Limon) of the Rutaceae
family and is also known as cedro oil (which refers to oil which contains no terpene
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compounds).It is pressed from the outer rind of lemons. It has a crisp and fresh smell and is
pale greenish-yellow in color with a watery viscosity. This essential oil, just as most other
essential oil, should never be used neat and undiluted on the skin, and although it contains
some amazing therapeutic properties, must be formulated with great care into skin care
cosmetics as it can have a phototoxic effect on the skin. It is non-toxic oil, but if used in too
high concentration may cause skin irritation and sensitizing in some individuals. It can have a
photo toxic effect on the skin and it should not be used (even in low dilution) before exposing
the skin to the sun. It is therefore recommended that no product containing lemon oil should
be applied before sun tanning, as it could cause dermal irritation. This effect is not as
pronounced in "wash-off" products such as facial scrubs or skin washes, yet due care should
be taken.

Composition of lemon essential oil

The typical composition of lemon oil contains alpha-pinene, camphene, beta-pinene,

sabinene, myrcene, alpha-terpinene, linalool, beta-bisabolene, limonene, trans-alpha-
bergamotene, nerol as well as neural. It has antimicrobial, antiseptic, astringent, bactericidal,
cicatrisant, depurative, diaphoretic, diuretic, febrifuge, haemostatic, rubefacient, tonic, as
well as vermifuge therapeutic properties on the skin.

Classification of lemon peel essential oil in cosmetics

Citrus medica limonum peel oil is the volatile oil obtained from the fresh peel of
Citrus medica limonum and is classified as an essential oil. It is used as a fragrance ingredient
and is known as cold pressed or distilled lemon oil, as well as citrus lemon oil.

3. Melissa (Melissa officinalis) to help create a clear complexion

This herb has a long history of medical use, with wide antioxidant, antiviral,
antibacterial and anti-tumo Description of Melissa, also known as lemon
balm, balm, bee balm, and sweet balm, is a herbaceous perennial growing to
nearly 1 meter, with angular stems and rugosely veined leaves in opposite
pairs, with cream to white flowers. It originated in the eastern Mediterranean regions and
Asia Minor, with current commercial cultivation centered in southwestern, central and
Eastern Europe.
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Parts used

The dried leaves are normally used, but a superior essential oil is also extracted from
the fresh plant material.

Compounds found in Melissa

It contains rosmarinic acid, phenolic acids, triterpenes, monoterpene glycosides and

flavonoids. The essential oil contains citronellal, citral, germacrene and caryophyllene.
Recent studies have shown that it also contains flavonoids containing luteolin, luteolin 7-O-
beta-D-glucopyranoside, apigenin 7-O-beta-D-glucopyranoside, and luteolin 7-O-beta-D-
glucuronopyranoside, luteolin 3’-O- beta-D-glucuronopyranoside and luteolin 7- O beta-D-
glucopyranoside- 3'-Obeta-D-glucuronopyranoside. The last three glycosides have only been
found in lemon balm recently and luteolin 7-O-beta- D-glucopyranoside-3'-O-beta- D-
glucuronopyranoside is a new compound found in the plant.

Effect of Melissa on the skin

Clinical studies have conclusively shown that Melissa has exceptional antioxidant
properties - which directly influence the health of the skin when applied topically. The
antioxidant action prevents free radicals from causing damage to the skin, causing premature
aging, and is also active in preventing lipid peroxidation. Apart from these very positive
effects on the skin, it shows great activity against tumors as well as great anti-microbial and
anti-viral activity. On top of this, it has excellent antibacterial properties. This, and all of the
above, helps to prevent infection, inflammation and skin imperfections - all contributing to a
clear complexion and even colored skin.Furthermore, it was shown in various clinical studies
to be effective against the Herpes virus. With all the above in mind, it is clear to see why our
researchers included the Melissa extract in our Rejuvenating Toner.

4. Black pepper essential oil as a cosmetic ingredient

Black pepper essential oil has good rubefacient and analgesic properties for
skin care and therefore has a warming effect, which stimulates blood flow
while reducing pain. It is also most effective in dispersing bruising.
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General information on black pepper essential oil

Black pepper essential oil is strong and has a sharp, spicy smell, and is faintly
reminiscent of clove oil, yet more refined. It can range in color from light amber to yellow-
green and has a watery viscosity.The essential oil is composed of various chemical
constituents and includes thujone, A-pinene, camphene, sabinene, B-pinene, A-phellandrene,
myrcene, limonene, caryophyllene, B-farnesene, B-bisabolene, linalool and terpine-4-ol.
Black pepper oil can be used to help in the treatment of pain relief, rheumatism, chills, flu,
colds, to increase circulation, relieve exhaustion, calm muscular aches, physical and
emotional coldness, as a nerve tonic and to relieve fevers.It is especially effective when
treating bruises on the skin, and it rubefacient property makes it very valuable when you wish
to increase circulation to the skin and the supportive tissue underneath the skin.Due to fact
that black pepper essential oil helps to boost circulation and has a "warming" action on the
skin, it was included in our cellulite cream.

Classification of black pepper essential oil as a cosmetic ingredient

Piper nigrum fruit oil is the volatile oil distilled from the dried ripe fruit of Piper
nigrum. It is classed as an essential oil and is used as a fragrance ingredient. It is known as
black pepper oil, while Piper nigrum seed extract is extracted from the seeds of black pepper
and classed as an essential oil and used as a fragrance ingredient.

5. Lime essential oil and its use in cosmetics and skin care products

The astringent action of lime essential oil helps to increase and improve the
tone of the skin and the anti-scorbutic properties help to detoxify and clear
the skin of any accumulated waste material and especially for fighting
cellulite.

Cosmetic use of lime essential oil

Its antiseptic and infection busting properties, coupled to the astringent effect that this
oil has, makes it valuable in assisting with poor or compromised circulation and to clear oily
skin, while fighting problem and acne skin in general. It is also most helpful in areas where
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circulation is a problem; such is the case with cellulite. The therapeutic properties of lime oil
in skincare are anti-scorbutic, antiseptic, antiviral, disinfectant, bactericidal, astringent,
restorative and tonic.The oil is non-toxic, non-irritant and non-sensitizing and although the oil
obtained from cold expression does not have any phototoxic effect on the skin, it is still not
advisable to use strong concentrations of it on your skin before sunbathing. Our inclusion rate
of the oil is low enough not to cause any sunbathing problems and the oil we use is cold
expressed oil. We do however suggest that any person with a problem or acne skin do not
expose their skin to extended periods of sun tanning.

General information on lime essential oil

It is extracted from Citrus aurantifolia (also known as Citrus medica, subspecies acida
and Citrus latifolia) of the Rutaceae family. It is also known as Mexican and West Indian
lime, as well as sour lime and is used in specialized skincare products. It has a sharp citrus
peel smell and is pale yellow to light olive in color.

Classification of lime essential oil in cosmetic use

Citrus aurantifolia oil is the volatile oil obtained from Citrus aurantifolia. It is classed
as an essential oil. It is used as a fragrance ingredient and is known as cold pressed lime oil,
as well as West Indian lime oil.

6. Peppermint oil as used in preparations to treat aching feet

Peppermint oil has great analgesic and anesthetic effects which are great for
relieving foot pain, as well as aching feet, rheumatism, neuralgia and
muscular pains. It furthermore has good stimulant action which is most useful
as it assists and boosts blood circulation.

Cosmetic benefits of peppermint

According to Greek mythology, the nymph Mentha was hotly pursued by Pluto,
whose jealous wife Persephone then trod Mentha into the ground. Pluto then turned her into a
herb for people to appreciate her for years to come. Peppermint is ideal for use in skin
preparations designed for the feet, as it has good antiseptic properties. The vasoconstrictor
action helps to reduce redness of the skin and reduce dilated capillaries. An increase in
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circulation helps to relieve itching and removes toxic congestion. The cooling effect on the
skin is a welcome bonus for tired, swollen and achy feet. Although peppermint essential oil
can be used for the inflammation of acne and problem skin, we have opted to only use it in
our foot preparations, since it is strong smelling oil, and contact between it and the skin, as
well as mucus membranes, can cause irritation if used in too high concentrations. It should
also be kept away from the eyes. This refreshing herb has found a foothold in many
household items ranging from toothpaste to air fresheners, skin care and hygiene products.

General information on peppermint oil

The therapeutic properties of this volatile essential oil on the skin are analgesic,
anesthetic, antiphlogistic, antiseptic, astringent, anti-infectious, decongestant, stimulant and
vasoconstrictor.The main constituents are menthol, menthone, 1,8-cineole, methyl acetate,
methofuran, isomenthone, limonene, beta-pinene, alpha-pinene, germacrene-d, trans-sabinene
hydrate and pulegone.

Classification of peppermint oil as a cosmetic ingredient

Mentha piperita oil is a volatile oil obtained from the plant Mentha piperita (Labiatae
family) and classified as an essential oil. It is used as a miscellaneous skin-conditioning agent
and fragrance ingredient and is also known as brandy mint and balm mint.

7. Pumpkin seed in cosmetics and combating fine lines

Pumpkin seed oil is highly nourishing and lubricating oil, and is useful for all
skin types. It is especially good if used to combat fine lines and superficial
dryness and to prevent moisture loss.

Benefits of pumpkin seed oil in skin care products

This is highly nourishing oil that helps prevent excess moisture loss and also combats
fine lines.The typical analysis of the fatty acids contained in pumpkin seed oil is as follows -
palmitic, stearic, oleic, linoleic, linolenic, alpha linolenic, arachidic, eicos-11-enoic and
erucic. It is high in protein, zinc, as well as polyunsaturated fats. It is made from the common
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pumpkin - Cucurbita pepo - and although some people use it orally for the treatment of
urinary tract infections, it also makes a great addition to skincare products because of its high
concentration of protein, zinc and polyunsaturated fats.

Classification of pumpkin seed oil as a cosmetic ingredient

Cucurbita pepo seed oil is an oil expressed from the seeds of the pumpkin (Cucurbita
pepo) and is classified as a fat and oil. It is used as an occlusive skin-conditioning agent and
is known as pumpkin seed oil.

8. Rose is used in many forms in cosmetic products and helps to create a youthful
complexion

Rose extract and rose oil have a host of beneficial effects on the skin and are
great for promoting a youthful complexion with good tone, elasticity and an
even colored complexion.

Rosa damascena oil

Rosa damascena oil is the volatile oil obtained from the flowers of Rosa damascena
and is classified as an essential oil. It is used as a fragrance ingredient and is known as rose
oil, absolute and concrete. It has a deep yet fresh, rosy aroma, and the color of the oil ranges
from clear to a pale yellow or with a greenish tint (while the absolute has a more reddish
orange tint). It has an extremely complex chemical composition with more than 300 separate
compounds, but the main constituents are citronellol, phenyl ethanol, geraniol, nerol,
farnesol, stearpoten plus traces of nonanol, linalool, nonanal, phenylacetaldehyde, citral,
carvone, citronellyl acetate, 2-phenylmethyl acetate, methyl eugenol, eugenol and rose
oxide.The main therapeutic properties for skincare are antiphlogistic, antiseptic, antiviral,
astringent, bactericidal, cicatrisant, depurative and a general tonic. It has excellent emollient
and hydrating properties, which helps the skin to stay soft and properly moisturized and fight
any dryness and dehydration. The stimulating action of it on the other hand is a boon for
fighting aging and maintaining a soft, dewy and youthful complexion. It is an extremely
expensive ingredient to produce, as it takes about 4,000 kilograms (about 8,800 pounds) of
flowers to yield 1 liter (about 33.81 fluid ounces) of rose otto or about 30 roses to yield one
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drop of oil.The cicatrisant properties help with normal scar tissue formation - without any
excess keloids or fibrous matter. The cicatrisant properties and its great antiseptic, antiviral
and bactericidal properties, cause it to be a great ingredient to help heal the skin after any
trauma and stress and help speed up healing in general. The farnesol contained in the oil has
bacteriostatic as well as exceptional dermatophile properties and is also very helpful in
reducing broken capillaries and thread veins, as well as boosting poor circulation. This results
in a more evenly colored complexion, that is well toned and healthy looking. It also has great
value when used to calm an irritated skin and in general promotes a younger looking skin
with good tone, elasticity and color. It is a soothing, non-toxic, non-irritant and non-
sensitizing ingredient, and although gentle, has a profound effect on the quality of the skin
when used.

Rosa centifolia extract

Rosa centifolia flower extract is an extract of the flowers of the cabbage rose, Rosa
centifolia. It is classed as a biological product and is used as a miscellaneous skin-
conditioning agent and fragrance ingredient. It is known as cabbage rose extract as well as
rose extract. This aqueous extract is not as concentrated as its volatile oil cousin, yet has the
same benefits and therapeutic effects on the skin, with minor variances, as there is a slight
difference in the chemical composition of the flowers. The aqueous extract also contains a bit
of tannin as well as a bitter principle, which translates into it having a more toning effect,
which is helpful in tightening the skin. The differences are more pronounced between the
Rosa damascena otto and the Rosa centifolia absolute, and can be simplified on average as
follows, 44 % less citronellol, 2,000% more phenyl ethanol, 35% less geraniol as well as
nerol and 55% less stearpoten.

Classification of rose extract and rose oil as cosmetic ingredients

Rosa damascena as well as Rosa centifolia are both used in our range - the distilled
volatile principle from the one, and the extract of the other. We have information about both
these compounds on this page, which you can view by clicking the hyperlinks Rosa
damascena and Rosa centifolia.
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9. Tea tree oil in cosmetic use and particularly for problem skin conditions

Tea tree oil can be used to fight and clear up pimples, acne, skin lesions and
blemishes, dandruff, cold sores, athlete's foot, sunburn, fungal nail infections
and infected wounds, while the balsamic properties of the oil again soothe the
irritated and inflamed skin.

Cosmetic benefits of tea tree oil

For over 60 years tea tree oil has been used in Australia as a natural antiseptic and
fungicide. It has been shown to possess anti-microbial activity against a wide range of gram
positive and gram-negative bacteria and fungi as well as viruses. These intrinsic properties,
combined with the penetrating power of the oil, are believed to be responsible for the
efficiency of this natural product in helping with problem skin conditions. This must be one
of the most popularessential oils, and is used extensively in cosmetic and other
pharmaceutical products, since it has wonderful healing properties. It has a light spicy, rather
pungent smell and is very pale in color. The main constituents are a-pinene, ß-pinene,
sabinene, myrcene, a-phellandrene, a-terpinene, limonene, 1,8-cineole, y-terpinene, p-
cymene, terpinolene, linalool, terpinen-4-ol and a-terpineol, with the 1,8 cineole content not
larger than 15% and the terpinene-4-ol at least 30%.Its antimicrobial, antiseptic, anti-fungal,
antibiotic, analgesic, anti-inflammatory, bactericide, balsamic, decongestant, cicatrisant and
stimulant therapeutic properties in skincare adds a new dimension when formulating products
intended to fight infections and inflammations, while stimulating healing. The cicatrisant
property of the oil is valuable when wounds are healing, as it helps the formation of normal
scar tissue, preventing excessive scar tissue or keloids forming, while the decongestant action
helps to clear the congestion caused by any infection or inflammation.

Classification of tea tree oil as a cosmetic ingredient

Melaleuca alternifolia leaf oil is the oil distilled from the leaves of the Australian
Melaleuca alternifolia. It is classified as a fat and oil and is used as an antioxidant and
fragrance ingredient and is known as tea tree oil, ti-tree, ti-trol and melasol.
 18

10. Aloe Vera

Aloe vera (Aloe Vera) is a succulent from the Asphodelaceae (Asphodelaceae).

The plant has a short, woody stem of 30-50 cm high, which forms the base
runners or branching. The leaves are often crowded. They are blue-green, very
succulent, 40-50 cm long and 7-8 cm wide at the base, then they narrow to a point. At the
bottom are the leaves and they have rounded on the edges spaced, triangular, pale green,
horny teeth.The Trossige inflorescence to 90 cm long. There are red and yellow flowers. The
young, unopened flowers upwards. The older flowers with their cylindrical-curved and fused
flower tubes down, making the inflorescence a pyramid-like shape. The slender flower tube
six stamens are hidden. The ovary has three carpels and grows into a capsule. Aloe is
probably originally from the Arabian Peninsula. Today he is among others also in the
Mediterranean Sea, Indonesia and West Indies. In Barbados there are many farms of this
plant. The sap can be used as a means wound and sunscreen. It is widely incorporated into
cosmetics. The extraction takes place by cutting off the leaves and the juice dripping from
this collection and in the air to dry.

11. Turmeric

Turmeric is another name for Curcuma. In countries like India and

Sri Lanka is much cultivated and used in almost all dishes. The active
ingredients in Curcuma would protect against prostate cancer,
Alzheimer’s and diabetes. In India they know that the herb does more
than just taste good. They gargle with it when they are cold and sprinkle it on an open wound.
In addition to suspect that turmeric also affect the emergence and growth of cancer.
Turmeric: biter, golden yellow and member of the ginger family. Turmeric is a striking
yellow herb and it tastes a little bitter. In the oriental cuisine is widely used. For the taste, but
also for the color. Moreover, it’s in every curry mixture. (curry is a blend of various
spices).Turmeric comes from the root of the curcuma longer. This plant belongs to the ginger
family. Turmeric is also a color. It is used to color textiles and paints to color. Turmeric as
inflammatory. Besides the use in the kitchen is in the Eastern countries seen as an
inflammatory. In places like Thailand, India, China and Indonesia is used in both internal
 19

and external inflammations, menstrual problems, jaundice, liver disease, intestinal disorders,
skin diseases and toothache.

12. Jasmine

Among the flowers, the sweet scent of jasmine is one of the most intense,
exquisite and seductive; it’s essential oil is an aromatic ingredient of the
more popular and attractive out there. The jasmine plant is considered a
yang (male) in China, comes from a flowering shrub, often climbing (if you guide wires or
sticks), which usually lives in tropical and temperate environments, where the humidity
should be present. There are about 20 different kinds of jasmine, its showy clusters of white
flowers and brown, whose flowering is in summer (between January and March), used for
producing the binges, which are very typical compositions of jasmine in the city of Malaga
and of the Costa del SolJasmine essential oil This elegant flower is removed one of the most
popular essential oils of aromatherapy, which has interesting properties both for health
and for the beauty and emotional harmony. Essential oils have many advantages, besides
helping in various conditions through the nose stimulate the hypothalamus, where odorant
molecules trigger stimuli very beneficial and healthy for the body. From this arises
aromatherapy, which helps to heal both the physical and the emotional and mental health of
the person through the smells of plants and flowers.

• Organic and natural ingredients

Even though many cosmetic products are regulated, there are still health concerns
regarding the presence of harmful chemicals within these products (citation needed). Aside
from color additives, cosmetic products and their ingredients are not subject to FDA
regulation prior to their release into the market. It is only when a product is found to violate
Federal Food, Drug, and Cosmetic Act (FD&C Act) and Fair Packaging and Labeling Act
(FPLA) after its release that the FDA may start taking action against this violation. With
many new products released into the market every season, it is hard to keep track of the
safety of every product. Some products carry carcinogenic contaminant 1, 4- dioxane. Many
cosmetic companies are coming out with "All natural" and "Organic" products. All natural
products contain mineral and plant ingredients and organic products are made with organic
agricultural products. Products who claim they are organic are not, unless they are certified
"USDA Organic.
 20

2.2 Situation of Industry

Situation

Nowadays, industry of Thailand have more use herbs for healthy such as food,
beverage, spa, cream, lotion, and many things for life then have export for herb. Herb is
usefully for every thing include people because it doesn’t dangerous for skin. Everyone
knows about herb for healthy in nowadays. In Thailand have more cosmetic industry by use
herb for compound of products then reduce comical for produce the products.

The concept of beauty and cosmetics is as ancient as mankind and civilization.

Women are obsessed with looking beautiful. So, they use various beauty products that have
herbs to look charming and young. Indian herbs and its significance are popular worldwide.
Herbal Cosmetics have growing demand in the world market and is an invaluable gift of
nature. There are a wide range of Herbal Cosmetic Products to satisfy your beauty regime.
Adding Herbs in Cosmetics is very safe for your skin.

The global market for herbal cosmetics in 2005 is estimated at US$620-million and is
expected to grow approximately 3 percent to US$639-million in 2006.

Surprisingly, the Asia Pacific region will account for nearly a third of the market with sales
of US$206-million in 2005 growing to US$212-million in 2006.

And in the region, India is by far the sales leader with approximately US$100-million in sales
in 2004, according to a story on the Channel News Asia website. Sales will increase to
US$105-million in 2005 and to US$112-million in 2006

The manufacture of Cosmetics is by no means new methods adopted were used

several decades ago. The attempt made in this book is to improve the older methods and
provide the latest formulae and techniques to manufacture the different cosmetics like Hair
Preparations, Face Powders, Toilet Powders, and Cosmetics for the Skin, Cream, and Lotions
for various uses, Lipsticks, Shampoos, Dandruff Tonics, Nail Polishes etc. The book is highly
recommended to entrepreneurs, industrialists, research centers, technologist and libraries.
 21

The cosmetics industry is one of the fastest growing sectors not only in Thailand, but
the entire Asian region as well. The year 1997 saw the fastest growth period in the cosmetic
industry, with a growth rate of 20 percent. Although the economic crisis has had a negative
impact on consumption levels, results during 1999-2000 show the cosmetics industry’s
growth rate is at 15 percent with an average market value of approximately 10,800 million
Baht.

During the initial stages of industrial development, there were very few manufacturers
of cleansing and skin-care cosmetics. Most manufacturers were foreign companies who
established a production base in Thailand. The majority of cleansing, skin-care products, and
cosmetics that were distributed to the market were imported. The only customers who had the
means to afford these products were the upper-class who had a high degree of purchasing
power. The high price of imported products was a weakness as they were too expensive for
middle and lower class customers. However, this lack of affordability presented an
opportunity for investors to establish a cosmetics production base in order to meet the desire
of those less affluent customers. In this way, the production of cleansing and skin-care
cosmetics in Thailand has expanded and developed continually.
The current situation regarding the production of cleansing and skin-care cosmetics is as
follows:

 Cleansing and skin-care products have traditionally come from two sources: local
production and imports from overseas
 Leading imported brand manufacturers were very interested in the development of a
production base in Thailand, with the objective of distributing the products domestically
as well as exporting to foreign countries
 The development of a production base in Thailand by brand leaders encouraged Thai
personnel to improve their knowledge and skill in production and management
 The current main target market for imported products are upper-class customers
followed by middle-class customers who have increased their purchasing power
 The current main target market for locally produced products with Thai brand names are
middle-class and lower-income customers
*0 Readiness and suitability of officers involved directly and indirectly with the production
of cosmetics
 22

*1 Readiness and suitability of plant location, production equipment especially in the case of
specially controlled cosmetics production
*2 Quality of raw material used for production
 Quality of containers for products
 Clear explanation of label as prescribed by the Ministry

2.3 Product / Service

- Cosmetic Products

Skin and body care products will be developed and produced at our contract facilities.
Production of cosmetics herb will be managed through our contract manufacturer of Herb
industry. Production of accessories will be managed through a contract with a manufacturer
of quality accessories for the wholesale market.

One Herb Cosmetics will have two product lines, skin care herb and cleansing herb.
Within the skin care line we will offer a wide array of products including, cleansing creams,
facial scrubs and masks, spa, and body lotions. Within the cosmetics herb line we will offer
color cosmetics including brushes, belt, hair color, and dust dazzlers.

Our Product has 4 kinds

1. Herbal Face foam, treatment, scrub, toner

2. Herbal Soap
3. Herbal Bath
4. Body Lotion

Figure-2.1: Company Logo


Name
Centella asiatica Toner for
a fresh clear skin
Lemon peel essential oil
Anti-Cellulite Cream
Melissa Toner for a fresh
clear skin
Black pepper Anti-Cellulite
Cream
23
picture describe
• Ensures the pH of
your skin is correct.
• Contains active
ingredients to boost
the health of your
skin.
• It will help refine and
minimize pore size
and helps refine the
skin texture.
• Reduce redness and
calms the skin.
• Improve circulation.
• Economical as only a
small amount is used.
• Non-tacky, non-oily
formula.
• Easily absorbed.
• Rapid results
experienced.
• Ensures the pH of
your skin is correct.
• Contains active
ingredients to boost
the health of your
skin.
• It will help refine and
minimize pore size
and helps refine the
skin texture.
• Reduce redness and
calms the skin.
• Improve circulation.
• Extremely
economical to use.
• Economical as only a
small amount is used.
• Non-tacky, non-oily
formula.
• Easily absorbed.
 24

Rapid results experienced

Lime essential oil Skin • Extremely

Serum - a boost for a economical, as only a
younger looking very small amount is
complexion applied.
• This product is a
high-performance
treatment serum that
will boost the skin
when required at
times of stress and to
fight the ravages of
aging.
• Oxidative stress from
pollutants and
lifestyle are
neutralized by the mix
of super-anti-
oxidants, while skin
moisture and
hydration is corrected
at all levels - starting
from the deepest level
to the upper most - for
a smooth youthful
looking complexion.
• The formation of
collagen is drastically
and dramatically
boosted and then
protected, while
elastin formation is
also improved.
• The ingredients will
facilitate accelerated
cell renewal as well
as increasing skin
enzyme activity,
while reducing sun
induced skin
wrinkling and
preventing moisture
loss and also
protecting against
cold weather.

• Circulation is boosted
and the health and
tone of the skin is also

Tea tree oil Face Scrub for
a clear youthful looking
skin
25
increased for a
healthy, vital and
clear complexion.
• We use gentle and
smooth scrubbing
compounds that will
not damage or hurt
the skin and will
cause no micro-
wounds.
• The enzymes
contained in the scrub
will assist the
mechanical action of
the scrubbing
compounds to not
only remove the skin
cells, but also boost
the skin's health in
general.
• The other natural
ingredients will help
to create a clearer,
smoother and more
hydrated skin, while
the other compounds
get rid of the dead
skin cells.
• It is economical, as
only a small amount
is used, and only
needs to be applied, in
most cases, every
three to four weeks.
• Apart from gently
removing the dead
skin cells it will also
positively influence
the texture of the skin
as well as the pore
size.

Nourishing and Refreshing
Foot Cream
Problem Skin Face Mask
Rejuvenating Face Scrub
for a clear youthful looking
skin
26
• Apply the Nourishing
and Refreshing Foot
Cream to clean feet.
• The cream should be
massaged into the
entire foot area,
giving special
attention to dry and
cracked areas.
• Use the Nourishing
and Refreshing Foot
Cream daily or
whenever necessary.
• To remove dead skin,
refine feet, and perk
up circulation, use the
cream after using the
Refining and
Refreshing Foot
Scrub.
• Removes excess
oiliness, toxins and
impurities.
• Reduces skin redness
and inflammation.
• Helps fight skin
infection, acne and
pimples.
• Promotes healing and
helps reduce scarring.
• Boosts the formation
of healthy skin cells.
• We use gentle and
smooth scrubbing
compounds that will
not damage or hurt
the skin and will
cause no micro-
wounds.
• The enzymes
contained in the scrub
will assist the
mechanical action of
the scrubbing
compounds to not
only remove the skin
cells, but also boost
the skin's health in

Purifying Face Mask to
purify your skin and banish
dull looking skin
Problem Skin Spot
Treatment
27
general.
• The other natural
ingredients will help
to create a clearer,
smoother and more
hydrated skin, while
the other compounds
get rid of the dead
skin cells.
• It is economical, as
only a small amount
is used, and only
needs to be applied, in
most cases, every
three to four weeks.
• Apart from gently
removing the dead
skin cells it will also
positively influence
the texture of the skin
as well as the pore
size.
• Deeply cleanses your
skin and while
preventing minor skin
problems, will also
help clear up minor
problems.
• Leaves the skin
feeling deeply
cleansed, fresh and
rejuvenated.
• Adds a healthy glow
to the complexion and
also helps to clear
dull looking skin.
• Helps to balance oil
production and
brighten the skin.
• Highly effective and
doesn’t sting.
• Does not dry out the
skin.
• Reduces skin redness
and calms the skin.
• Reduces painful areas
and promotes healing.
 28

• Helps prevent and

reduce swelling,
discomfort and pain.
Rejuvenating Toner for a • Ensures the pH of
fresh clear skin your skin is correct.
• Contains active
ingredients to boost
the health of your
skin.
• It will help refine and
Cellumend Anti-Cellulite • Economical as only a
Cream small amount is used.
• Non-tacky, non-oily
formula.
• Easily absorbed.

Rapid results experienced

Problem Skin Night Lotion • Fights acne and

pimples.
• Non-greasy, yet highly
moisturizing.
• Reduces skin oiliness
and shiny skin.
• Reduces pore size and
refines skin texture.

• Sooths and calms the

skin, while reducing
skin redness.
Figure-2.2a: Company product
Our natural herbal soap contains Thai herbs which have various good properties to
your skin. For example, Papaya pure natural soap contain blended fresh papaya, a tropical
fruit loaded with vitamin A, helps moisturize the skin, while natural AHA acids exfoliate and
brighten your skin. Our natural herbal soap is suitable for who has sensitive skin because it
contains natural compound and also suitable for who has dry skin because it contains glycerin
which moisture the skin.

name picture descirb

Black Pepper Pure Natural Black pepper is an important

Soap herb in traditional Thai
medicine. The blended black
pepper essential oils in this
soap stimulate your
 29

circulation and fight against

cellulite.

Papaya Pure Natural Soap Blended fresh papaya, a

tropical fruit loaded with
vitamin A, helps moisturize
the skin, while natural AHA
acids exfoliate and brighten
your skin. It is used widely in
tropical spas, and is rapidly
making inroads elsewhere.

Lemongrass Pure Natural This soap highlights the

Soap relaxing scent of lemongrass,
a famous Thai herb, which is
widely used to relieve stress.

Ginger Pure Natural Soap Ginger is an important herb

used in many oriental
remedies to raise energy
levels and stimulate
circulation. This soap’s
ginger extracts do this, while
its refreshing aroma

One herb Herbal Bath

name picture Descirb

 30

This highly concentrated bath

Orange & Linden Blossom treatment, featuring aroma-
intensive essential oils of
orange and linden blossom
extracts, harmonizes your
mind and body.

Rosemary This highly concentrated bath

treatment, featuring aroma-
intensive essential oil of
rosemary, exhilarates and
wakes up the system.

Melissa This highly concentrated bath

treatment, featuring aroma-
intensive Indian melissa oil
and extracts of lemon balm,
relaxes and soothes.

Figure-2.2b: Company product

2.4 Vision

Leader of one herb cosmetic brand and forward to another country in 5 year

2.5 Mission
To establish “One Herb cosmetic” as an important brand that represent quality in skin
care, and make up that accessories herb. We will accomplish this using high quality
manufactory and research, a creative marketing program, and comprehensive distribution
network using competitive advantage strategy. By utilizing this multi-channel approach we
will be able to reach the niche market for quality personal care product rapidly and
efficiently. It will allow us to develop “one herb cosmetic” as the brand for quality skin, body
care and Herb cosmetics product within our target market.

2.6 Strategy:
• Corporate Level

The company commissioned promotional posters from various graphic artists to

publicize the company‘s product. That brought about a new advertising medium, particularly
the movies. Today, the company takes on actresses or different personalities of all ages that
 31

best exudes the vision of the company. Famous personalities enable average to relate to
personal lives, that we can look as good and so ensure higher sales. Corporate level strategy
fundamentally is concerned with the selection of businesses in which the company should
compete and with the development and coordination of that portfolio of businesses.

Corporate level strategy is concerned with:

• Reach - defining the issues that are corporate responsibilities; these might include
identifying the overall goals of the corporation, the types of businesses in which the
corporation should be involved, and the way in which businesses will be integrated
and managed.
• Competitive Contact - defining where in the corporation competition is to be
localized. Take the case of insurance: In the mid-1990's, Aetna as a corporation was
clearly identified with its commercial and property casualty insurance products. The
conglomerate Textron was not. For Textron, competition in the insurance markets
took place specifically at the business unit level, through its subsidiary, Paul Revere.
(Textron divested itself of The Paul Revere Corporation in 1997.)
• Managing Activities and Business Interrelationships - Corporate strategy seeks to
develop synergies by sharing and coordinating staff and other resources across
business units, investing financial resources across business units, and using business
units to complement other corporate business activities. Igor Ansoff introduced the
concept of synergy to corporate strategy.
• Management Practices - Corporations decide how business units are to be governed:
through direct corporate intervention (centralization) or through more or less
autonomous government (decentralization) that relies on persuasion and rewards.

Corporations are responsible for creating value through their businesses. They do so by
managing their portfolio of businesses, ensuring that the businesses are successful over the
long-term, developing business units, and sometimes ensuring that each business is
compatible with others in the portfolio.

• Business level
- A very vital aspect in the success of company our leaders handle and run the business.
The Board director and the Board members are well aware of all company duty
 32

required by our respective functions and of collective mission for in hands that the
company’s future depends on. The board members are also obliged to act with due
care responsibility. Board is the strategic orientation of the control and correct
running of the company
- Analysis of internal environment with a variety of internal factors found in the current
state-level competition in the herbal products industry not very serious and
environment-friendly cover director of person to go pop between the individual
owner. The company found that the advantage in product quality and meet customer’s
strategy to differentiate (Differentiation Strategy) is a strategic fit with the company.
Therefore, use of differentiating the product quality and reliability image and product
over the competition. And the different services was instrumental in the creation of
brand loyalty (Brand Loyalty), which allows companies to set prices high (Premium)
because customers will agree to pay the price increase this value to differ from other
products. Marketing which will create the potential to do Long-term profit to the
company.

A strategic business unit may be a division, product line, or other profit center that can be
planned independently from the other business units of the firm.

At the business unit level, the strategic issues are less about the coordination of operating
units and more about developing and sustaining a competitive advantage for the goods and
services that are produced. At the business level, the strategy formulation phase deals with:

• positioning the business against rivals

• anticipating changes in demand and technologies and adjusting the strategy to
accommodate them
• influencing the nature of competition through strategic actions such as vertical
integration and through political actions such as lobbying.

Michael Porter identified three generic strategies (cost leadership, differentiation, and
focus) that can be implemented at the business unit level to create a competitive advantage
and defend against the adverse effects of the five forces.

• Function level
 33

The vast majority of functional personal care regimes are incorporated by women, the
male category is also growing rapidly, albeit from a smaller base. Functional personal care
usage by males as part of a daily routine accounts for the vast majority of routines.

The functional level of the organization is the level of the operating divisions and
departments. The strategic issues at the functional level are related to business processes and
the value chain. Functional level strategies in marketing, finance, operations, human
resources, and R&D involve the development and coordination of resources through which
business unit level strategies can be executed efficiently and effectively.

Functional units of an organization are involved in higher level strategies by providing

input into the business unit level and corporate level strategy, such as providing information
on resources and capabilities on which the higher level strategies can be based. Once the
higher-level strategy is developed, the functional units translate it into discrete action-plans
that each department or division must accomplish for the strategy to succeed.
 34

Chapter 3

Market Feasibility Study

3.1 Market Analysis

3.1.1 General Environment Analysis

1. Political
Chiang Rai, local lack of enthusiasm, lack of legal knowledge, expense, and mistake in
communication improving knowledge of citizen improving the related laws and policies, and
finally, improving local officers’ attitudes toward the hill tribe. Our business has expend for
increase chain to comfortable in to customer then close service and our business will be
increase everywhere.

The Government support Labor Standard implementation to ease trade barriers. The
Government has been promoting and encouraging private sector to establish their labor
standard. The Cabinet Resolution of 18 December 2009 has granted the Project on Labor
Standard Development for Free Trade Promotion and budgeted 301.87 Million Baht over the
next 5 years (Fiscal Year 2010 – 2014.) The project’s goal is to enable the private sector to
introduce and successfully implement their labor standard system which will gain
international acceptance.

2. Economy

These organizations have expressed the possibility of financial support –to reach the
Millennium development Goals, since resources are surely needed to expand public services,
including health care, education and to reduce poverty, an understanding of basic problems of
the grass root as well as the developing a strategy are essential for achievement, within the
frame work to the bud set, importantly work for poverty reduction and build up a learning
society to enhance economic stability. For economy in Chiang Rai has low cost of living.
This place will be having more income from foreigner. Economy of Scale: Costs of herbal
product industry have small production scale. Therefore, business cannot get the advantage in
low cost in large production. And easily enter of new investors in industry. This will forward
result increasing of competition. Government Force: In the present, the government
encourage and more supporting to produce and trade the herbal goods from local
communities herbal goods.
 35

MINIMUM WAGE 2010 Announced minimum wage rate since 1 January 2010 Minimum
Wage Rate

Fingure-3.1: Minimum rate wage rate

Social and Environment

 36

That promotes learning social reform, justice and equity for everyone and enhancing
human dignity. FAO is involved in agriculture restructuring under changing market and trade
conditions, natural resource conversation, strengthening biosecurity for food security and
poverty reduction for farmers. FAO has worked through collaborated efforts with other UN
organizations Collaborated efforts to strengthen partnership among international
organizations in providing assistance to countries of the Upper Greater Mekong Sub-region
will importantly work for poverty reduction and build up a learning society to enhance
economic stability for people at the grass root level. This is more competitors in Chiang Rai
but nowadays the people have increase interest for healthy, beauty, and dresses. So, my group
wants to do about cosmetic for enough to customer wants and needs. That in our country
have variety of herbal natural environmental to use for company and it have few
disadvantage.

Figure-3.2: Social rate

4. Technology
Today the progress of technology is running so fast and Technology in our company has
use for sale, and checks the products. Our business has new technology for sell products such
as sell product by Internet zone to customer for comfortable.
 37

3.1.2 Competition Analysis (3C Analysis)

1. Competitor Analysis
- Oriental princess

“Oriental Princess”. The products are made of specially selected herbs and natural extracts.
These, including facial make up products, cause no irritation to the skin while nourishing and
purifying the beauty of hair, facial skin and body skin.

Cleansing Cream
A make-up removing cream with added cleansers which gently and smoothly wash the skin
to leave it thoroughly clear of dirt, for smoother, whiter skin.
Cleansing Foam
Carefully formulated gentle facial cleansing foam brimming with goodness for all skin types.
The special properties of fissions yeast help gradually improve the condition of the skin
during the cleansing process to leave it looking clearer.
Brightening Toner
A water-based facial toner which reduces dryness while acting as an astringent and
maintaining the skin’s natural moisture balance after washing to leave the skin looking
naturally whiter. Gentle cleansing, even in the most sensitive area around the eyes.
Whitening & Repairing Night Cream
A nutritive cream which restores the facial skin before resting at night time, with fissions
 38

yeast to continually whiten and clarify the skin as it rests, halting the production of melanin
while smoothing and firming the skin.
Dark Spot Treatment
A treatment for individual spots which helps fade moles, freckles, blemishes, discolorations
and dark spots, eliminating deteriorated skin cells while stimulating the generation of new
ones evenly across the face.

- Patummas
Patummas Herbs Sale Cosmetic SUPAPORN PATUMMAS ISAON Herbal Cosmetic
Manufacturing Extract /Essential Oil/ Rice Bran Oil, Horseradish Oil/ Face Scrub, Facial
Mask, Milk, Body Scrub.

Vision
1. Be engrossed in to give cosmetic goods that participate to mix of Thai herbs, by the
craftsmanship of a Thai have admit from both of consumer in the country.
2. Foreign countrieses are will engrossed in to are side research leader develop and produce
herbs Thai plant by lead the Technology at modern come to process herbs give stay in a
picture of a substance separates for apply important components in the production the
cosmetic.
3. All formats s are will engrossed in to are major producer in cosmetic herbs production and
pertaining to herbs products which can are of good quality base section and are accepted in
universal level.

Mission
1. Give advices in the sense of the research and develop pertaining to herbs products is Thai
and the cosmetic that do to is from herbs by the personnel who expert type professional.
2. Take to separate and produce Thai every kind cosmetic or at participate mix of Thai herbs
follow the requirement since 1 a kilogram goes up
3. Sell the cosmetic under Supaporn herbs, Patummas Ison and Cheenada 4. To work for to
pack the cosmetic in the format both of the envelope, pot, and tube or other follow the
requirement.

Face Scrub Product

 39

Face Scrub Product

Whitening Cream

Foam Product
 40

-MFU

School of Cosmetic Science at Mae Fah Luang University provides fundamental and
advanced knowledge as well as skills in cosmetic science for students and Graduates wishing
to pursue their careers in the cosmetic industry. As a matter of fact, our School is the first
institution offering this kind of study programmed in Thailand and hence an ideal place for
students and people who are interested in pursuing their study in this field.

Mission
 41

1. Give advices of cosmetic science serve of the research and the development produce the
quality control including market conspiracy.
2. Sale ways give the graduate s have the ability s in applying knowledge all the remedy
including give advices of the cosmetic has in industry level.
3. Knowledge all lead come to apply for invent research and products development have
correctly and are born.
4. Give the knowledge to the community, for lead the knowledge of the cosmetic, go to apply
and develop give born topmost advantage.

Face and whitening cream product

Body Lotion product

Spa product
 42

-Mojula
Cream Mojula is the cream maintains
the face, there is the properties helps to
make in front white clear clearly has the
natural mannerly, decrease be vague hand
alkaline black dot and a trace become dull
and have the properties in sperm bacteria
accident cause murder of a pimple are
infected make a pimple is infected decrease the quantity and subside fast go up. Also cream
Mojola without quicksilver substance and acid retinoic at bad build skin state. Cream Mojola
herbs make of herbs is a principle such as curcuma slanting is white includes all vitamins that
are valuable such as vitamin A, vitamin C, and the vitamin E.

Special properties
Cream Mojola is the supernatural power helps to protect bacteria sperm make a pimple is
infected subside fast go up together with heal a wound and help well-fitting pore decrease
become dim a trace is vague hand alkaline black dot a trace becomes dull keep an eye on pale
down disclose white clear clearly clean smooth has the natural mannerly observe obviously in
2-3 week.
 43

Product of Mojula: Mojula cream

SWOT Analysis
To development a business strategy, company considers the strengths and
weaknesses of the business, including assesses opportunities and obstacles the
following:
 44

Figure-3.3: SWOT Analysis

Strength
1. Use of a range of these plants in spicing our food.
2. Knowledge on plants and their use in therapy and remedy Vast Biodiversity of
tropical, subtropical and temperate crop species.
3. Variable agro climatic conditions for year round production skilled, low cost
manpower.

Weakness
1. Unawareness of useful crop species to some people
2. Weak infrastructure
3. Fluctuating climate

Opportunity
1. Revival and renewal of global interest in traditional medicine
2. World demand for herbal product is increasing at rate of 10-15%.
3. Greater demand for export of medicinal crops.
4. Subsidies provided by government.
5. Large amount of lands available in some parts of the country.

Threat
1. Fluctuating market prices.
2. Unexpected climatic fluctuations.
 45

3. Lack of education amongst the farmers makes them very vulnerable especially in the hands
of unscrupulous people.
4. Indiscriminate shifting from cereals to cash crop can affect the food balance.

2. Customer Analysis

Figure-3.4: Company Segmentation

The consumer concern with healthy that to define the product which made from natural
environment extract for real benefit. The customers use many things for their beauty such as
face foam, scrub, lotion, soap, etc. Although, the customer aspect the fast result product, but
they need to use the product that low negative impact and look forward to the herbal product.
The customer trend desire more using of natural resource instead of cosmetic’s chemical
material that may did destroy and dangerous for user. There are a number of new demand
trends that have impacted the market and created greater opportunities. These trends include a
returning to age old, time proven, natural remedies; more consumers that are looking for
more holistic and healing benefits from her skin care products, and today's consumer being
more informed and more inquisitive about the benefits of her personal care products. In
Chiang Rai has people 2 classes for income. First class is high income and second class is
low income. For in Chiang, Rai will be having first class more than second class because
Chiang Rai will be top destinations for tourist.
 46

Our targeted user is healthy lifestyle retailer, spas club and hotel industry. This consumer
has an active lifestyle. They are concerned about social and environmental issues. Mind and
body wellness are important to them. They belong to a health club; take yoga lessons. The
effects of aging and the maintenance of a youthful appearance are a part of their life.

3. Competitive Analysis

External Environment Analysis

We focus on investment in the industry. The capability to make the profit beyond the
future effect by the intensive of competitive. There are five Competitive Forces:

New

Threat of cost, sub competitors

Competitive Customer
Supplier
in company ↑
Loyalty

Substitute goods

Figure-3.5: External Environment Analysis

1. Potential Competitor

1.1 Cost of production

1.1.1 Vertical Integration: less integrate of vertical organization because most of

entrepreneurs have not enough resources to integrate with others.

1.1.2 Learning Curve Effect: The entrepreneur who stays with this industry for a long time
will get strong advantage. They have more expertise involve the material type of herb such as
properties, recipe, channel, supplier which quite difficult to competition within industry.
 47

1.2 Brand Loyalty: For herb product industry have low loyalty consumer because many
alternative brand and less expense for switch cost. This make easy enter of new competitors.

1.3 Invest Cost: High cost investment in machine for production and regulation in quality of
production process follow the legal (GMP: Good Manufacturing Process) that why threat for
enter of competitors.

2. Rivalry among Established Companies:

2.1 Producer: There are many small business in the industry and have a little leader brand in
some specific product line.

2.2 Competitive advantage: have a large gap between leaders and follow business
competition. Therefore, reducing level of competitive because, small producer avoid fighting
with the big producer.

2.3 Demand Conditions: A increasingly grows about 20 % per year of the industry that
reduce high competitive because, each producer able to extend their sales in the market
without fighting to get market share from other producer.

2.4 Differentiate: The ability to create uniquely goods in term perception of customer. Now
present in little different from each other product. That why customer feel a little bit different
to state each brand product.

2.5 Exit Barriers: Reason of the low cost technology using in production. And machine can
be applied for producing other goods which effect to easy exit from industry and low
competitive.

3. The bargaining power of buyers

3.1 In the industry of natural product. It’s compost of the small size distributor and the small
size of buyer. Selling and buying is in small amount, so the bargaining power of users is not
high.

3.2 Same product in market has similar quality and product of each producer is low level
different, so it makes brand loyalty is low level too. And the cost of changing buying from
one seller to another seller is low, so it can cause the bargaining power of buyers is low too.

4. The bargaining power of suppliers

 48

4.1 Suppliers: There are a lot of medium size and small size of distributors in the industry, so
the bargaining power of suppliers is quite low.

4.2 Distributors that have more quality of product will be have more the bargaining power
because the customer give more important about quality of product.

5. Threat of substitute products

5.1 In market, there are a lot of substitute products that use the chemical substantial instead of
natural substantial to produce products, although the quality of product is not good equal the
product that produces from natural substantial.

5.2 Natural product that impact from other countries, it almost has the ingredient of plant or
herb that cannot grow in Thailand, so profit ability is still high because the competitive is not
intensive.

Internal factor analysis: Competitive advantage analysis

To study to competitive advantage of the organization two of the business in the

industry can be analyze follow these factor.

- Efficiency

The company that is small size and has more fluency, can be comforted and rapidly to
distribute the product to customers. Planning of delivery service, to increase the opportunity
of product distribution. Otherwise if can be connecting purchasing and marketing information
system together, to find the suitable quantity of product and to reduce the management cost of
inventory goods.

- Quality

Our product is mixed of Thai herb that in Thai life way, believe that Thai herb has the
effectiveness to healing and our product also pass the process of science and test of the
quality of healing medical science institute, so our product is safe to using.
 49

- Innovation

Our product is produce from adaptation of Thai herb knowledge in the past and mix
with the knowledge of research of science to find suitable kind of herb that match in each
symptom. These will be the introduction of the Thai herb to be famous to the person that did
not know about the quality of Thai herb before. Our company is more concentrate in the
innovation, and try to product new product to serve customer’s need and need to be create the
different to our product too.

- Customer Responsiveness

Our company care about customers’ need and satisfy. We start from doing marketing
research to find the need of customer, and then we present the product that match customer’s
need and try to make the easiest way to buying product. We choose the suitable way to sale,
such as delivery service and we also have the staffs to receive or listen to customer’s
problem.

From 4 factors that we have explanted, it all will be increase competitive advantage
for the organization.

3.2 STP Analysis

Today’s skin care customer is looking for magic. We want to believe that there is a
potion in a bottle that will erase her wrinkles. Most manufacturers believe this is being driven
primarily by vanity. At One Herb Cosmetics we believe it is a result of a better educated
consumer base and easier access to information. We believe that you only need to look at the
proliferation of personal trainers, spa and cosmetics, the awareness of vitamins and the
benefits of eating and living healthy for both mind and body. These indicators are not
unrelated and we believe them a signal a change in values and lifestyle rather than just a
fashion trend. While it may well have been spurred on by the growth in the stock market and
the general economy, we do not believe that is dependent upon the continued rapid growth of
these factors. Once the consumer has recognized the benefits of these products they will not
be willing to simply give them up.

This new generation of creams is more scientifically advanced than anything previous
manufacturers brought to market. Research has shown that alpha hydroxyl acids, retinol and
anti-oxidants can smooth out wrinkles and even out irregular pigmentation. Other natural
 50

ingredients can speed up the regeneration process of skin cells, tone the skin, clarify the
complexion, and reduce wrinkles as well. They have many people begun to shift formulation
to vitamins, anti-oxidants and herbal extracts.

Many manufacturers site the high cost of research as a major reason for the high price
of their products. However this manufacturers site the high cost of research as a major reason
for the high price of their products. However this "new" trend is more a returning to age old,
time proven, natural remedies than new science. One noted chemist and cosmetics researcher
recently stated that charging more than $100 for a vial (ounce) of any serum is unwarranted.
She stated that while there are some very special ingredients that are costly, when prices go
above this level it is just maxing out snob appeal. When you combine these facts with the
rapidly increasing level of consumer education and the demand for a price-value equation,
you can begin to see the market niche that is developing for high-quality skin care at price
points reflective of their ingredients and value.

Market Segmentation

- Healthy lifestyle retailers: This is the shop focus on selling healthy and wellness product
like herb cosmetic which made of natural extract plant.

- Cosmetic specialty retailers: This is the shop focus on selling only cosmetic cleansing
accessories product with prefers many type of beauty care.

- Spa club and hotel industry: This is group of spa and hotel service that use herb product to
be material of their service.

- Boutique department store: This is stores that sell the unique and fashion product in high
quality.

Target market

The healthy group people who most use our herbal cosmetic which support mental
natural life style and body treatment

Product Positioning

One herb cosmetic have high quality and luxury unique herbal accessories. The
company prefers many product options for alternative variety choice for consumer.
 51

- Company focus on quality of product and price that make different between our brand
and others competitors follow this table.

High price

One herb cosmetic

Oriental Princess
Khun Ying Mae(คุณหญิง
MFU

Low quality High quality

Mho Jula (หมอ Patummas

Low price

Figure-3.6: Positioning

- Company also focuses on variety of product that support competitions in the market
follow this table.

Marketing Strategy

One Herb Cosmetics will utilize a brand building (pull) strategy as the basis for our
marketing plan. We will position our print media spend in magazines that influence our target
consumer and validate the brand. These are the same publications retail buyers and trend
analysts scour to find emerging brands or trends. In addition to paid ads in regional issues of
the publications mentioned, we will retain a PR firm to develop a grass roots program for
obtaining product placement and celebrity/trainer endorsements. Our media and PR strategy
will bring the brand to the forefront for the consumer and set the stage for our image
development. We will have a separate plan to market to spas and retailers at trade shows. In
addition we will develop a unique in-store graphic and communication package that explains
our products benefit and advantage at point of sale.

3.3 Marketing Mix

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Product

The product of One Herb Cosmetic has many products such as Skin Care--facial
treatment and sun care, applicators and organizers, Body & Bath--all hand and body care,
bath and shower products and aromatherapy that can always develop the product:

- Development of product packaging: Develop a packaging and labeling system that

communicates the One Herb Cosmetic message.

- Development of product brochures: Create a series of brochures that will function at

point of sale and at trade shows.

- Creation of a One Herb Cosmetics video: Develop a video that explains the
connection between the herbal and the human body.

- Creation of our graphic language

- Selection of an advertising firm

- Development of our print campaign: Development of this campaign will begin

immediately after selecting an agency.

- Creation of consumer seminars: Develop and implement these programs.

- Development of bonus week programs and products.

Price: Pricing Strategy

Our pricing strategy at retail will be to create a price-to-benefits ratio that positions
One Herb Cosmetics as a superior value. At wholesale we will price our products to provide
the retailer with a 50% maintained margin and offer a product exchange program for current
accounts. Our wholesale prices will be derived after the appropriate retail is determined to
insure that the shelf price represents a value to the consumer and the retailer has a 50 %
margin.

Place
The distribution plan distribution through the retail channel primarily because a brand
new product introductions channel selected in the first phase need to be clear to the audience
and build brand better known. To enable potential customers know the product and brand-
 53

wide. And can buy products easily, while investment is not too high, so the company is
planning the following distribution channels.

Promotion
The growth of the Body and Bath category and the Alternate channels is being driven
by three major market influences:
- An acceleration of cross distribution creating new opportunities for branded
day herbal cosmetics and catalogues.
- Pampering has taken a front seat in the consumers mind and is viewed as a
need rather than a want. This has created an opportunity for new herbal
cosmetics lines, spa-oriented products encompassing aromatherapy and new
age positioning.
- The day cosmetics influence is creating consumer awareness of the benefits of
quality skin care and body & bath products.
Promotion Strategy
Pricing: We will not have price promotions in our own facilities and we will discourage our
wholesale customers from reducing prices. Instead we will have a quarterly bonus week.
During the bonus week consumers will receive a free gift with any One Herb Cosmetics
purchase over a pre set amount. The gift sets will consist of sample size One Herb Cosmetics
products from our most current launch in a specially designed tote or gym bag.
Consumer Mailers: We will have a monthly mailer for One Herb Cosmetics customers. It
will be designed to educate the consumer about the benefits of a particular product or
ingredient. The mailer will be redeemable for a sample of the product.
Seminars: Our point of sale system will track consumer sales and usage by customer. We
will invite our best customers to quarterly seminars on skin care and wellness.
Affiliations: We will outfit select female yoga and fitness instructors in key cities.
Public Relations: We will contract a top public relations firm to develop and execute a
gorilla campaign. The objective will be to secure product placement in key publications and
endorsements by opinion leaders.
Print Campaign: We will have a paid placement program that includes monthly placement
in regional issues of W, Vogue, Wallpaper, Cosmopolitan, Travel & Leisure, Vanity Fair,
Departures, In Style, Food & Wine, Shape, Town and Country and the New York Times
Sunday edition.
 54

Advertising
1. Distributed leaflets which contain photographs of properties available sizes and prices,
including retail locations, phone number to call and order or get information to distribute the
company's shop counter. And the introduction of store trade show, arch exhibit area parks
and plan is short during the first 6 months and has been instrumental in promoting order
through service delivery by the company expects to distribute 100,000 leaflets to the property
set.

2. Distributed leaflets and fragrant oil attached sheet to promote sales, telephone number for
service delivery channels. The company will distribute leaflets and sheets of aromatic oil in
January, April July and October, after the audience has known brand products and brands
rather from the open arch show during the first 6 months already. The company has a target
budget for distribution of approximately 20,000 people.

3. Advertising in magazines and women's mental life purpose, readers, and the audience was
introduced brand more will be in February in May and August. The reason to select
magazines, because magazine readers match the interests of the audience, though television,
radio and newspapers will be targeted at more general, however, the company selected media
magazine, which placed only No. 4 only, because the media can magazine clearly targeted
and more specific can be read long. Readers can read it slowly to the details better.

4. Create website to create a recognized brand and product information, retail locations, how
to order and organize different promotional items. The begin months from January to
December.

3.4 Sales Forecast/Profit Estimation: Sales Strategy

Our retail sales strategy consists of just two parts. First we will hire and train people
who fit the One Herb Cosmetics image and lifestyle. Our training programs will insure that
they have the product knowledge necessary to serve the customers’ needs and close the sale.
Second, our commission and retention programs will insure we recognize and reward
performance. Our sales people will be on a commission program that compensates for follow
up sales at progressively higher rates. This will provide an incentive for consumer follow up
 55

and the creation of repeat business. Our commission program will also insure that individual
performance is monitored and recognized. Top performers will be singled out for recognition
and poor performers will be given additional training or encouraged to seek a profession
more suitable to their skills.

Our wholesale sales program will evolve through two phases as we grow. In the first
phase leading showrooms will represent us. The Studios will act as our national sales
manager. They will be paid a 15% commission on all sales and will manage the contracts
with other showrooms. This rate is three points above the average for small firms and five
points above the average for larger accounts. These higher rates will motivate the reps to
promote One Herb Cosmetics products and aggressively pursue reorders. They will also
handle order follow up and customer service. Their commission will be paid 50% at time of
shipment and 50% at time of payment, insuring a vested interest in customer satisfaction and

payment. After we reach ฿6,000,000 in wholesale business to outside accounts we will begin

to develop an internal sales force and customer satisfaction team. Our internal sales team will
be paid 6% of sales. The customer satisfaction team will handle all post sale activities.
Insuring delivery, claim processing and collection. (This team will cost approximately 8% of
sales in salary and support costs.)

Sales Forecast

Wholesale sales are budgeted to grow enormously by the end of 2015. While we
believe this growth is achievable for the following reasons:

- A great deal of our growth will come from adding doors. We will begin 2010 with no
accounts. As we add accounts we will experience both per door growth and geometric growth
in the size of our wholesale client base.

- Our product launch schedule will result in our range being approximately 10 times as large
in product offering by the beginning of 2015.

- Our advertising plan (media and PR) is to grow our annual media spend extensively by
2015. This will increase brand awareness by both the consumer and the retailer.

Our wholesale sales plans do not include sales to our own outlets or from the catalogue. Our
margin plans reflect these sales coming from first cost. It is our belief that this approach
 56

assures a true measure of profitability for our retail stores and a true measure of growth for
our wholesale efforts.

Figure-3.7a: Sales Forecast

Figure-3.7b: Sales Forecast

 57

Sales Forecast

Year 1 Year 2 Year 3 Year 4 Year 5

Sales

Retail ฿245,801 ฿487,500 ฿1,033,500 ฿2,219,100 ฿4,803,942

Wholesale ฿224,500 ฿3,000,000 ฿8,000,000 ฿15,000,000 ฿30,000,000

Catalogue and Internet Sales ฿0 ฿250,000 ฿1,000,000 ฿2,000,000 ฿4,000,000

Total Sales ฿470,301 ฿3,737,500 ฿10,033,500 ฿19,219,100 ฿38,803,942

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

Retail ฿61,450 ฿121,875 ฿258,375 ฿554,775 ฿1,200,986

Wholesale ฿85,310 ฿1,140,000 ฿3,040,000 ฿5,700,000 ฿11,400,000

Catalogue and Internet Sales ฿0 ฿62,500 ฿250,000 ฿500,000 ฿1,000,000

Subtotal Direct Cost of Sales ฿146,760 ฿1,324,375 ฿3,548,375 ฿6,754,775 ฿13,600,986

Figure-3.7c: Sales Forecast

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Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Figure-3.7d: Sales Forecast

Sales

Retail ฿0 ฿0 ฿0 ฿0 ฿0 ฿25,185 ฿24,725 ฿39,871 ฿25,895 ฿34,125 ฿39,871 ฿56,129

Wholesale ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿73,100 ฿74,800 ฿76,600

Catalogue and Internet Sales ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0

Total Sales ฿0 ฿0 ฿0 ฿0 ฿0 ฿25,185 ฿24,725 ฿39,871 ฿25,895 ฿107,225 ฿114,671 ฿132,729

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Retail ฿0 ฿0 ฿0 ฿0 ฿0 ฿6,296 ฿6,181 ฿9,968 ฿6,474 ฿8,531 ฿9,968 ฿14,032

Wholesale ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿27,778 ฿28,424 ฿29,108

Catalogue and Internet Sales ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0

Subtotal Direct Cost of Sales ฿0 ฿0 ฿0 ฿0 ฿0 ฿6,296 ฿6,181 ฿9,968 ฿6,474 ฿36,309 ฿38,392 ฿43,140
 59

3.5 Marketing Expenses (Sales Incentive)

The One Herb Cosmetics market grew by over $1 billion in 2009. (A rate of 6.6 %.) A
major factor in the growth of this segment was the impact of niche lines with cosmetics
positioning. Clear divisions between categories are becoming blurred. The Cosmetics theme
now touches on virtually all product categories. Aromatherapy has gained mainstream
acceptance and is present in all product categories. All categories experienced growth. 2009
sales and growth by category broke down as follows:

Sales Growth Market Share

Body and Skin Care ฿8,995 3.10% 45.00%

Accessories ฿6,960 2.20% 38.00%

Fragrance ฿4,090 1.30% 17.00%

Total ฿20,045 6.60% 100.00%

Figure-3.8: Sales Incentive

3.6 Conclusion

for my our business can impossible in the future because environment in Chiang Rai
has top destination in the north then people has more income in the future.

The initial management team is very compact. Our CEO and founder is the only
current (full-time) employee. However we have utilized significant external resources and
have secured a committed and talented team to join One Herb Cosmetics as our funding gets
in place. We will be our director of retail and spa operations. We will join us as creative
director. We will be the director of product development. We will join the team as
administrative assistant. In addition to our internal resources we have access to a significant
pool of senior management and design talent. This resource has been detailed in the
management team section.
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Chapter 4

Technical Feasibility Study

4.1 Production and Operation Analysis

( 4.1.1) Product Characteristics (in Detail)

One Herb Cosmetics distributes quality personal care products, cosmetics color and
related accessories. This is accomplished through a combination of company-owned retail
outlets and wholesale distribution.

- Herbs for Beauty Care

Herbs and spices have been used in maintaining and enhancing human beauty since
time immemorial. The women have long used herbs such as Sandalwood and Turmeric for
skin care; Henna to color the hair, palms and soles; and natural oils to perfume their bodies.
Not too long ago, elaborate herbal beauty treatments were carried out in the royal palaces of
India to heighten sensual appeal and maintain general hygiene. Rightly said, beauty is very
much an inner thing. First beautify from within. A large number of cosmetic and toiletry
formulations have been developed based on Indian Herbs recently. Apart from traditionally
documented applications, some modern trials have also established the utility of Thailand
herbs in Personal Care products. Below is a partial list of herbs with Cosmetic applications.

Health Food Ingredients / Supplements

Health Food ingredients supports and improve basic and essential bodily functions
that influence the quality of one's health.

One of the most common ways of classifying medicinal plants is to identify their
action. Health Food/Nutracuticals are combination of Herbs/Herbal extracts which can be
taken to improve body functions. They helps to maintain good health. Talking Nutracutical is
self treatment for problems often experienced later in life. Health foods help in preventing
symptoms that are inevitable
 62

- Our Product has 4 kinds

1.Herbal Face foam

2.Herbal Soap

3.Herbal Bath

4.Body Lotion

Centella asiatica in cosmetic skin care use

This herb has an interesting history, and has been used in herbal medicine for ages,
yet Centella is a relative newcomer to skin care cosmetics. It is an excellent ingredient to
include in skin care creams and lotions, as it has a pronounced effect on the health of the skin.

Centella asiatica Toner for a fresh clear skin

Our Rejuvenating Toner is an alcohol-free toner, containing silk amino

acids, myrrh, witch hazel, cranberry, rosehip, jojoba and thirteen other
botanical extracts to help boost the health of your skin, while at the same
time refining the skin and helping to reduce pore size and fighting any
minor inflammation while having a great astringent effect on the skin.

General information on our Centella asiatica Toner

Old fashioned toners were developed to remove the oily residue left behind by old fashioned
cleansers - and in order to do this, they contained alcohol (giving a cooling sensation) to
emulsify and remove the oily residue, but the alcohol content caused a drying effect on the
 63

skin. Since we no longer have to use oily "cold creams" to clean the skin - and can rely on
extremely effective, yet gentle face washes, which will not dry or distress our skins, while
removing all dirt, pollution, grime and make-up - like our Centella asiatica Face Wash - the
role played by facial toners has changed. Some modern facial toners are developed to only
balance the pH of the skin after cleaning, but since our Centella asiatica Face Wash does
NOT disrupt the pH of the skin, our research team could spend their efforts on developing a
toner that will help tone and refine the skin, while completing the cleansing phase of your
daily skincare regimen.

Ingredients used in our Centella asiatica Toner

Our research and development department combined a formula that attends to various aspects
of skin health, and has formulated the Rejuvenating Toner to positively influence the health
and vitality of your skin. Whereas some cosmetic manufacturers only use one or two active
ingredients, we rely on a whole range of active ingredients to create the promised results,
and all the active ingredients are used in therapeutic quantities.

Benefits of our Rejuvenating Toner

• Ensures the pH of your skin is correct.
• Contains active ingredients to boost the health of your skin.
• It will help refine and minimize pore size and helps refine the skin texture.
• Reduce redness and calms the skin.
• Improve circulation.
• Extremely economical to use.

Directions for use

• Cleanse the skin with Centella asiatica Face Wash, pat skin dry and apply toner by
spraying directly on to the skin and wiping with a tissue or cotton wool.
• The toner can be applied by spraying it onto cotton wool and wiping the face with the
wetted cotton wool.
• Ensure that you use the toner all over the face, including the area under the chin, the
neckline and hairline as well.
 64

Lemon peel essential oil to help remove cellulite

Lemon peel essential oil acts as a natural astringent, antiseptic, and bactericide on the
skin, which is of particular benefit to people with problem and acne skin. The rubefacient and
diuretic properties are also used to bring balance to the fluids in the cells and ensuring
optimum circulation - which is needed to remove cellulite.

Lemon peel essential oil Anti-Cellulite Cream

Cellulite is not simple fat, but a way in which your body reacts to a build-
up of toxins in the connective tissue in the skin. This then manifests as a
honeycomb web of waterlogged and toxin filled tissue. Some people are
skeptical about cellulite creams, as so many of these products promise
results - but then not delivering on its promise. But with the coming of
Lemon peel essential oil this all changed - this first-of-its-kind cellulite
cream effectively removes cellulite and gets rid of the orange-peel effect on your skin, when
used regularly as prescribed.

General information on our Lemon peel essential oil Anti-Cellulite Cream

Lemon peel essential oil is a serious anti-cellulite product, backed by a huge amount of
research and formulation of the active ingredients. Liporeductyl, one of the patented
molecules used in Cellumend, was clinically tested, and showed to be most effective in
achieving a cellulite-free body. Although our cream is effective, we also advocate that people
change their lifestyle to prevent further cellulite from forming. Our cream will however
remove cellulite, without any change in lifestyle or diet.

The cream was formulated to be easily absorbed and to leave the skin smooth with no tacky
or oily feel afterwards.
 65

Ingredients used in our Lemon peel essential oil Anti-Cellulite Cream

Apart from the patented molecule used in Lemon peel essential oil we have also included a
variety of other botanical and marine ingredients to further bolster the effectiveness of the
formulation. Whereas some cosmetic manufacturers only use one or two active ingredients
we rely on a whole range of active ingredients to create the promised results, and all the
active ingredients are used in therapeutic quantities.

Benefits of our Lemon peel essential oil Anti-Cellulite Cream

• Economical as only a small amount is used.
• Non-tacky, non-oily formula.
• Easily absorbed.
• Rapid results experienced.

Directions for use

Apply the cream sparingly to the affected area, twice daily, after a shower or bath. Do this
preferably in the morning and before going to bed at night.

Warning:
• Not to be used during pregnancy or in cases of iodine or marine allergies, or if allergic
to any of the ingredients listed.

Melissa (Melissa officinalis) to help create a clear complexion

This herb has a long history of medical use, with wide antioxidant, antiviral,
antibacterial and anti-tumor properties - all of these properties help create and maintain a
clear complexion.

Melissa Toner for a fresh clear skin

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Our Melissa Toner is an alcohol-free toner, containing silk amino acids, myrrh,
witch hazel, cranberry, rosehip, jojoba and thirteen other botanical extracts to
help boost the health of your skin, while at the same time refining the skin and
helping to reduce pore size and fighting any minor inflammation while having a great
astringen t effect on the skin.

General information on our Melissa Toner

Old fashioned toners were developed to remove the oily residue left behind by old
fashioned cleansers - and in order to do this, they contained alcohol (giving a cooling
sensation) to emulsify and remove the oily residue, but the alcohol content caused a drying
effect on the skin. Since we no longer have to use oily "cold creams" to clean the skin - and
can rely on extremely effective, yet gentle face washes, which will not dry or distress our
skins, while removing all dirt, pollution, grime and make-up - like our Melissa Face Wash -
the role played by facial toners has changed. Some modern facial toners are developed to
only balance the pH of the skin after cleaning, but since our Melissa Face Wash does NOT
disrupt the pH of the skin, our research team could spend their efforts on developing a toner
that will help tone and refine the skin, while completing the cleansing phase of your daily
skincare regimen.

Ingredients used in our Melissa Toner

Our research and development department combined a formula that attends to various aspects
of skin health, and has formulated the Rejuvenating Toner to positively influence the health
and vitality of your skin. Whereas some cosmetic manufacturers only use one or two active
ingredients, we rely on a whole range of active ingredients to create the promised results,
and all the active ingredients are used in therapeutic quantities.

Directions for use

• Cleanse the skin with Melissa Face Wash, pat skin dry and apply toner by spraying
directly on to the skin and wiping with a tissue or cotton wool.
• The toner can be applied by spraying it onto cotton wool and wiping the face with the
wetted cotton wool.
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• Ensure that you use the toner all over the face, including the area under the chin, the
neckline and hairline as well.

Benefits of our Melissa Toner

• Ensures the pH of your skin is correct.
• Contains active ingredients to boost the health of your skin.
• It will help refine and minimize pore size and helps refine the skin texture.
• Reduce redness and calms the skin.
• Improve circulation.
• Extremely economical to use.

Black pepper essential oil as a cosmetic ingredient

Black pepper essential oil has good rubefacient and analgesic properties for skin care
and therefore has a warming effect, which stimulates blood flow while reducing pain. It is
also most effective in dispersing bruising.

Black pepper Anti-Cellulite Cream

Cellulite is not simple fat, but a way in which your body reacts to a build-up of
toxins in the connective tissue in the skin. This then manifests as a honeycomb
web of waterlogged and toxin filled tissue. Some people are skeptical about
cellulite creams, as so many of these products promise results - but then not
delivering on its promise. But with the coming of Black pepper this all changed
- this first-of-its-kind cellulite cream effectively removes cellulite and gets rid
of the orange-peel effect on your skin, when used regularly as prescribed.
 68

General information on our Black pepper Anti-Cellulite Cream

Black pepper is a serious anti-cellulite product, backed by a huge amount of research and
formulation of the active ingredients. Liporeductyl, one of the patented molecules used in
Black pepper, was clinically tested, and showed to be most effective in achieving a cellulite-
free body. Although our cream is effective, we also advocate that people change their
lifestyle to prevent further cellulite from forming. Our cream will however remove cellulite,
without any change in lifestyle or diet. The cream was formulated to be easily absorbed and
to leave the skin smooth with no tacky or oily feel afterwards.

Ingredients used in our Black pepper Anti-Cellulite Cream

Apart from the patented molecule used in Black pepper we have also included a variety of
other botanical and marine ingredients to further bolster the effectiveness of the formulation.
Whereas some cosmetic manufacturers only use one or two active ingredients we rely on a
whole range of active ingredients to create the promised results, and all the active
ingredients are used in therapeutic quantities.

Benefits of our Black pepper Anti-Cellulite Cream

• Economical as only a small amount is used.
• Non-tacky, non-oily formula.
• Easily absorbed.
• Rapid results experienced.

Directions for use

Apply the cream sparingly to the affected area, twice daily, after a shower or bath. Do this
preferably in the morning and before going to bed at night.

Warning:

• Not to be used during pregnancy or in cases of iodine or marine allergies, or if allergic

to any of the ingredients listed.

Lime essential oil and its use in cosmetics and skin care products
 69

The astringent action of lime essential oil helps to increase and improve the tone of
the skin and the anti-scorbutic properties help to detoxify and clear the skin of any
accumulated waste material and especially for fighting cellulite.

Cosmetic use of lime essential oil

Its antiseptic and infection busting properties, coupled to the astringent effect that this
oil has, makes it valuable in assisting with poor or compromised circulation and to clear oily
skin, while fighting problem and acne skin in general. It is also most helpful in areas where
circulation is a problem, such is the case with cellulite. The therapeutic properties of lime oil
in skincare are anti-scorbutic, antiseptic, antiviral, disinfectant, bactericidal, astringent,
restorative and tonic. The oil is non-toxic, non-irritant and non-sensitizing and although the
oil obtained from cold expression does not have any phototoxic effect on the skin, it is still
not advisable to use strong concentrations of it on your skin before sunbathing. Our inclusion
rate of the oil is low enough not to cause any sunbathing problems and the oil we use is cold
expressed oil. We do however suggest that any person with a problem or acne skin do not
expose their skin to extended periods of sun tanning.

Lime essential oil Skin Serum - a boost for a younger looking complexion

This serum was created to be the ultimate treatment to boost your skin's
moisture content, while providing maximum nutrition, nourishment and
antioxidants to help fight the signs of aging, and in doing so, create the
softest, and most even colored skin, while creating a younger looking
complexion.
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General information on our Lime essential oil Serum

Our Rejuvenating Serum is used in conjunction with our entire range and is normally applied
under the Lime essential oil or the Lime essential oil Night Cream or can be used as a
treatment on its own. Daily stresses and strains, coupled to the unhealthy environment we live
in and our under-par diet, places stress on the way we look, and our Rejuvenating Serum was
developed to be used as a magnificent boost to the skin. It contains high amounts of active
ingredients, formulated into a easily absorbed serum base, to immediately penetrate the skin,
and not only boost the moisture levels, but work actively by means of the specialized peptides
and extracts to create the finest, firmest and youngest looking skin possible. People find that
they go through periods when they need to use the Rejuvenating Serum on a regular basis - or
simply every two weeks, or whenever necessary. If you live a very hurried life, or have a very
hectic social life, or you work and live in an extremely dry and polluted environment, you
may find great benefit in using this product on a regular basis - even if only a tiny amount is
used under your Lime essential oil Day Cream. The formula was so created that it spreads
very easily and with this, makes for an extremely economical product, as very little is used.

Ingredients used in our Lime essential oil Serum

Our researchers formulated our Rejuvenating Serum into a light serum base that is easily
absorbed by the skin, while providing excellent hydration and moisture to the skin, supplying
high amounts of active ingredients to actively fight the signs of aging, improving skin tone
and boosting collagen and elastin manufacture in the skin, while protecting the DNA from
damage. Whereas some cosmetic manufacturers only use one or two active ingredients we
rely on a whole range of active ingredients to create the promised results, and all the active
ingredients are used in therapeutic quantities.

Directions for use

• Cleanse the skin with Lime essential oil Face Wash and dry.
• Apply Lime essential oil Toner.
• Place a small amount of Rejuvenating Serum on tips of fingers, rub together, and then
gently massage with upward and outward strokes to your face and neck.
• This can be done as a stand-alone treatment, or under the appropriate Lime essential
oil Day or Lime essential oil Night cream.
 71

Benefits of our Rejuvenating Serum

• Extremely economical, as only a very small amount is applied.
• This product is a high-performance treatment serum that will boost the skin when
required at times of stress and to fight the ravages of aging.
• Oxidative stress from pollutants and lifestyle are neutralized by the mix of super-anti-
oxidants, while skin moisture and hydration is corrected at all levels - starting from
the deepest level to the upper most - for a smooth youthful looking complexion.
• The formation of collagen is drastically and dramatically boosted and then protected,
while elastin formation is also improved.
• The ingredients will facilitate accelerated cell renewal as well as increasing skin
enzyme activity, while reducing sun induced skin wrinkling and preventing moisture
loss and also protecting against cold weather.
• Circulation is boosted and the health and tone of the skin is also increased for a
healthy, vital and clear complexion.

Tea tree oil in cosmetic use and particularly for problem skin conditions

Tea tree oil can be used to fight and clear up pimples, acne, skin lesions and
blemishes, dandruff, cold sores, athlete's foot, sunburn, fungal nail infections and infected
wounds, while the balsamic properties of the oil again soothe the irritated and inflamed skin.

Cosmetic benefits of tea tree oil

For over 60 years tea tree oil has been used in Australia as a natural antiseptic and
fungicide. It has been shown to possess anti-microbial activity against a wide range of gram
positive and gram-negative bacteria and fungi as well as viruses. These intrinsic properties,
combined with the penetrating power of the oil, are believed to be responsible for the
efficiency of this natural product in helping with problem skin conditions. This must be one
of the most popular essential oils, and is used extensively in cosmetic and other
 72

pharmaceutical products, since it has wonderful healing properties. It has a light spicy, rather
pungent smell and is very pale in color. The main constituents are a-pinene, ß-pinene,
sabinene, myrcene, a-phellandrene, a-terpinene, limonene, 1,8-cineole, y-terpinene, p-
cymene, terpinolene, linalool, terpinen-4-ol and a-terpineol, with the 1,8 cineole content not
larger than 15% and the terpinene-4-ol at least 30%. Its antimicrobial, antiseptic, anti-fungal,
antibiotic, analgesic, anti-inflammatory, bactericide, balsamic, decongestant, cicatrisant and
stimulant therapeutic properties in skincare adds a new dimension when formulating products
intended to fight infections and inflammations, while stimulating healing. The cicatrisant
property of the oil is valuable when wounds are healing, as it helps the formation of normal
scar tissue, preventing excessive scar tissue or keloids forming, while the decongestant action
helps to clear the congestion caused by any infection or inflammation.

Tea tree oil Face Scrub for a clear youthful looking skin

As skin cells age and die off, they have to shed from the skin in order for
the skin to appear radiant, youthful and vital. Should an unnatural
accumulation of dead cells persist on the skin, this will make the skin
look dull, sallow and unhealthy. To combat this, a regular exfoliating
facial scrub, done correctly with a good product, will prevent this
problem and leave your skin glowingly healthy.

General information on our Tea tree oil Facial Scrub

Skin cells are formed in the basal layers of the skin and migrate upwards, in a natural
progression, towards the top of the skin, where they die and eventually shed. It does however
happen that these dead skin cells do not shed properly, or only shed partially. In order to
promote the youngest looking skin, you need to remove these excess dead skin cells, as they
no longer perform any function - and only make your skin appear dull, lifeless and sallow.
Although skin exfoliation - scrubbing - should be done at regular intervals to ensure optimum
skin health and beauty, it should however not be overdone, or done with any medium or scrub
that will harm the skin in any way. Removing dead skin cells is beneficial to your skin - but
scouring off the dead cells and harming the skin, is to be avoided. Some facial scrubs are
either too acidic or alkaline - or the mechanical scrubbing particles are too rough for the
texture of the skin. A person must look for a happy medium - where the face scrub - or
exfoliant - is made from smooth, small gauged particles that will not damage the skin, while
 73

manually removing the dead skin cells. A good facial product should contain a non-abrasive
component - such as our papaya extract - which will gently assist in the removal of dead skin
cells. Apart from removing dead skin cells, a gentle exfoliation of the skin will also positively
help to create a smoother and finer skin texture, as well as reduce pore size - when used over
an extended period of time.

Ingredients used in our Exfoliating Facial Scrub

The formulation instruction to our research and development team was clear - we were
looking for an effective, yet safe and gentle scrub - that will remove dead skin cells without
causing any damage whatsoever to the skin. They came through with a sterling formula,
containing gentle scrubbing particles combined with botanical enzymes to gently, yet
effectively, remove dead skin cells, without causing any harm, while at the same time
boosting the general health of the skin. Whereas some cosmetic manufacturers only use one
or two active ingredients, we rely on a whole range of active ingredients to create the
promised results, and all the active ingredients are used in therapeutic quantities.

Directions for use

• Cleanse the skin with Tea tree oil Face Wash.
• Place a small amount of the Tea tree oil Face Scrub on tips of fingers, and gently
massage the entire face and neck area in small circular movements, without undue
pressure and avoiding the eye and lip area.
• Leave on the skin for 5 - 7 minutes and then rinse with tepid water, dry the face and
apply moisturizer.
• The Rejuvenating Face Scrub can be used every 2 - 3 weeks. In extreme cases use
weekly.

Benefits of our Tea tree oil Facial Scrub

• We use gentle and smooth scrubbing compounds that will not damage or hurt the skin
and will cause no micro-wounds.
• The enzymes contained in the scrub will assist the mechanical action of the scrubbing
compounds to not only remove the skin cells, but also boost the skin's health in
general.
 74

• The other natural ingredients will help to create a clearer, smoother and more
hydrated skin, while the other compounds get rid of the dead skin cells.
• It is economical, as only a small amount is used, and only needs to be applied, in most
cases, every three to four weeks.
• Apart from gently removing the dead skin cells it will also positively influence the
texture of the skin as well as the pore size.

Peppermint oil as used in preparations to treat aching feet

Peppermint oil has great analgesic and anesthetic effects which are great for relieving
foot pain, as well as aching feet, rheumatism, neuralgia and muscular pains. It furthermore
has good stimulant action which is most useful as it assists and boosts blood circulation.

Cosmetic benefits of peppermint

According to Greek mythology, the nymph Mentha was hotly pursued by Pluto,
whose jealous wife Persephone then trod Mentha into the ground. Pluto then turned her into a
herb for people to appreciate her for years to come. Peppermint is ideal for use in skin
preparations designed for the feet, as it has good antiseptic properties. The vasoconstrictor
action helps to reduce redness of the skin and reduce dilated capillaries. An increase in
circulation helps to relieve itching and removes toxic congestion. The cooling effect on the
skin is a welcome bonus for tired, swollen and achy feet. Although peppermint essential oil
can be used for the inflammation of acne and problem skin, we have opted to only use it in
our foot preparations, since it is strong smelling oil, and contact between it and the skin, as
well as mucus membranes, can cause irritation if used in too high concentrations. It should
also be kept away from the eyes. This refreshing herb has found a foothold in many
household items ranging from toothpaste to air fresheners, skin care and hygiene products.

Nourishing and Refreshing Foot Cream

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We use and abuse them every day, yet lavish very little care on our feet. Our
Nourishing and Refreshing Foot Cream does exactly that, but with some
added extras. When using a cream for your feet the cream needs a bit of a
different formulation than what you would need on the rest of your body,
since the environment in which your feet function is slightly different to the
environment in which the rest of your body functions.

Benefits of our Nourishing and Refreshing Foot Cream

Maybe your feet are not looking their best, or feeling tired, sore, swollen, tender and dry.
If that is the case, you definitely do not feel like you are "walking on sunshine" and to rectify
this, you can look at using our Nourishing and Refreshing Foot Cream. Not only will the
cream nourish and feed your skin, but will also help perk up the circulation to your feet,
while soothing and cooling them, and keep them fresh. The cream was formulated in such a
way as to be light and easily absorbable, therefore not making your feet feel oily or slippery -
yet it contains a host of ingredients to deeply nourish and nurture your feet.
The specialized ingredients will also help to regulate and improve circulation to your feet,
which will not only greatly enhance the way that they feel and look, but will also help fight
that burning itchy feeling you sometimes get. The other ingredients included in the
formulation will help to fight any bacterial and fungal infections, and to heal any small minor
sores you may have. The moisturizing and hydrating ingredients will deeply penetrate to
balance the moisture content of your skin, and to fight hard, tired and crepey looking skin. In
relation to other parts of the body - the feet are really the step-sisters of the body, with little or
no attention given to them. Is it not time that you are nicer to your feet and give them a treat
for holding you upright and supporting you through life's journey?

Ingredients

We believe that consumers should be well informed, and for this reason we list our
ingredients, and provide a hyperlink per ingredient to a page dealing specifically with that
ingredient, in order for consumers to understand why the ingredient was included in the
formulation.

• Extracts
 76

o To help you freshen your feet, we included Horse chestnut extract for
improved circulation, to strengthen the veins and capillaries and to prevent
venous problems and Centella asiatica (gotu kola) to also help with circulation
and to revitalize the skin.
• Essences
o We use a selection of volatile principles in this cream - Peppermint to freshen
the feet, soothe the skin, cool irritation and soothe and revitalize sore, tired and
tender feet.
o Geranium is used for better circulation and to balance the hydration and sebum
in the skin and to keep the skin supple; While Rosemary helps the circulation,
has an analgesic effect and tones the skin.
o Calendula has excellent anti-inflammatory effects, promoting enhanced blood
supply to the tissue and is also great for healing any sores or wounds, clearing
up infections and to fight fungal infections. Myrrh on the other hand
penetrates deeply to moisturize and regenerate the skin, as well as to fight
fungal infections.
• Emollients
o Since feet are so often forgotten, we added deeply penetrating Avocado to the
formulation to moisturize and nourish the skin and Almond to soothe and
soften in its turn. To this, Rose hip is added with its vitamin C content, to help
rejuvenate the skin while deeply moisturizing it.

• Other ingredients
o Silk amino acids are included since they have a great capacity for binding
water in the skin and their humectant effect helps to create soft and smooth
skin.
• Full list
o The above is a short summary of benefits of the active ingredients used, but to
view the full list of ingredients, please click here.

Directions for use

• Apply the Nourishing and Refreshing Foot Cream to clean feet.
 77

• The cream should be massaged into the entire foot area, giving special attention to dry
and cracked areas.
• Use the Nourishing and Refreshing Foot Cream daily or whenever necessary.
• To remove dead skin, refine feet, and perk up circulation, use the cream after using
the Refining and Refreshing Foot Scrub.

Pumpkin seed in cosmetics and combating fine lines

Pumpkin seed oil is a highly nourishing and lubricating oil, and is useful for all skin
types. It is especially good if used to combat fine lines and superficial dryness and to prevent
moisture loss.

Benefits of pumpkin seed oil in skin care products

This is a highly nourishing oil that helps prevent excess moisture loss and also
combats fine lines. The typical analysis of the fatty acids contained in pumpkin seed oil is as
follows - palmitic, stearic, oleic, linoleic, linolenic, alpha linolenic, arachidic, eicos-11-enoic
and erucic. It is high in protein, zinc, as well as polyunsaturated fats. It is made from the
common pumpkin - Cucurbita pepo - and although some people use it orally for the treatment
of urinary tract infections, it also makes a great addition to skincare products because of its
high concentration of protein, zinc and polyunsaturated fats.

Problem Skin Face Mask

When fighting a problem skin with pimples, blackheads and acne, proper
daily care of your skin is essential. A regular face mask (face pack) can
greatly assist in achieving a clear, spot-free complexion. A face mask is an
easy way of providing high amounts of active ingredients to your skin to
help clear the complexion and assisting with faster healing.
 78

General information on our Problem Skin Face Mask

The benefits of using a specialized face mask are twofold. You first of all help clean the
skin by removing any dirt, pollutants and toxins from the skin, while at the same time provide
the skin with high concentrations of active material to fight the problem areas effectively.
The kaolin and black mud contained in this mask will help remove excess oil, sebum and dirt,
while at the same time helping to balance oil production. The patented ingredients contained,
will actively target the pimples and acne on your face, while helping to reduce skin redness,
reducing inflammation, softening the skin, soothing irritation and helping to reduce pain,
while promoting a clearer skin. To effectively manage and sort out pimples and acne,
excessive sebum (oil) must be removed, the natural flow of the sebum in the skin must be
established and excessive keratinization (build-up of dead skin cells) must be prevented and
removed. Compounds must be put in place to fight the infection and inflammation of the skin
and in doing so also prevent the infection from spreading. In severe cases of cystic acne, a
dermatologist should also be consulted to look at the possibility of adding a systemic
antibiotic, taken orally, to help clear up the infection. Other ingredients are included, which
also fight skin infection, help the skin heal, and to promote general skin health. A common
mistake made by many people when suffering from problem or acne skin is to use very harsh
products on their skin which dries the skin to the point of flakiness. Although excess sebum
(oil) must be contained, the skin needs proper moisture and hydration to function properly -
and over-drying the skin can be a contributory cause of skin problems. With this in mind, the
Problem Skin Mask was developed to help ensure proper moisture and hydration in the skin,
without oiliness or greasiness. After using the face pack, your skin will not only feel better,
but will also look better, since all the different ingredients are combined to work in synergy
to help sort out the problem.

Ingredients used in our Problem Skin Face Mask

This face mask was specifically developed for people suffering from problem and acne
skin, and the ingredients combined in this mask will pro-actively work at helping to create a
clearer, smoother and less problematic skin. Whereas some cosmetic manufacturers only use
one or two active ingredients, we rely on a whole range of active ingredients to create the
promised results, and all the active ingredients are used in therapeutic quantities.
 79

Directions for use

• Cleanse the skin with Dermaxime™ Problem Skin Face Wash.
• Pat dry.
• Apply Problem Skin Face Mask evenly over the face and neck area, avoiding the eyes
and lips.
• Relax and leave on for 15 - 20 minutes and then wash off with tepid water.
• Apply Dermaxime™ Problem Skin Toner, followed by Dermaxime™ Problem Skin
Day Gel or Dermaxime™ Problem Skin Night Lotion.
• Use the Problem Skin Face Mask every 2 - 3 weeks, or every week in extreme cases.

Benefits of our Problem Skin Face Mask

• Removes excess oiliness, toxins and impurities.
• Reduces skin redness and inflammation.
• Helps fight skin infection, acne and pimples.
• Promotes healing and helps reduce scarring.
• Boosts the formation of healthy skin cells.

Papaya (Carica papaya) to help clear up skin problems

Most people know papaya as a tropical fruit, yet are clueless about the wonderful
effects it can have on the skin - assisting with wound healing and healing to clear up skin
problems.

Cosmetic properties of papaya

This fruit contains the enzyme papain, which has wonderful exfoliating properties -
removing dead skin, and specifically damaged skin. This particular property of papaya has
extensively been used in medical conditions to debribe the skin from abnormal skin growth
and skin diseases. Another use of the papaya juice is to help reduce and attenuate freckles or
brown spots due to exposure to sunlight, smoothing the skin and creating a healthier looking
 80

skin. It has been used and researched extensively for the positive effect it has on skin ulcers,
as well as helping patients with severe burn wounds. Not only does it have great antibacterial
and wound healing abilities but is also extensively used in wound care and is of particular
help in removing damaged and dead skin. All of the positive effects listed above are
attributed to the enzymatic action of the papain.

Rejuvenating Face Scrub for a clear youthful looking skin

As skin cells age and die off, they have to shed from the skin in order for
the skin to appear radiant, youthful and vital. Should an unnatural
accumulation of dead cells persist on the skin, this will make the skin
look dull, sallow and unhealthy. To combat this, a regular exfoliating
facial scrub, done correctly with a good product, will prevent this
problem and leave your skin glowingly healthy.

General information on our Exfoliating Facial Scrub

Skin cells are formed in the basal layers of the skin and migrate upwards, in a natural
progression, towards the top of the skin, where they die and eventually shed. It does however
happen that these dead skin cells do not shed properly, or only shed partially. In order to
promote the youngest looking skin, you need to remove these excess dead skin cells, as they
no longer perform any function - and only make your skin appear dull, lifeless and sallow.

Although skin exfoliation - scrubbing - should be done at regular intervals to ensure optimum
skin health and beauty, it should however not be overdone, or done with any medium or scrub
that will harm the skin in any way. Removing dead skin cells is beneficial to your skin - but
scouring off the dead cells and harming the skin, is to be avoided. Some facial scrubs are
either too acidic or alkaline - or the mechanical scrubbing particles are too rough for the
texture of the skin. A person must look for a happy medium - where the face scrub - or
exfoliant - is made from smooth, small gauged particles that will not damage the skin, while
manually removing the dead skin cells. A good facial product should contain a non-abrasive
component - such as our papaya extract - which will gently assist in the removal of dead skin
cells. Apart from removing dead skin cells, a gentle exfoliation of the skin will also positively
help to create a smoother and finer skin texture, as well as reduce pore size - when used over
an extended period of time.
 81

Ingredients used in our Exfoliating Facial Scrub

The formulation instruction to our research and development team was clear - we were
looking for an effective, yet safe and gentle scrub - that will remove dead skin cells without
causing any damage whatsoever to the skin. They came through with a sterling formula,
containing gentle scrubbing particles combined with botanical enzymes to gently, yet
effectively, remove dead skin cells, without causing any harm, while at the same time
boosting the general health of the skin. Whereas some cosmetic manufacturers only use one
or two active ingredients, we rely on a whole range of active ingredients to create the
promised results, and all the active ingredients are used in therapeutic quantities.

Directions for use

• Cleanse the skin with Dermaxime Rejuvenating Face Wash.
• Place a small amount of the Rejuvenating Face Scrub on tips of fingers, and gently
massage the entire face and neck area in small circular movements, without undue
pressure and avoiding the eye and lip area.
• Leave on the skin for 5 - 7 minutes and then rinse with tepid water, dry the face and
apply moisturizer.
• The Rejuvenating Face Scrub can be used every 2 - 3 weeks. In extreme cases use
weekly.

Benefits of our Exfoliating Facial Scrub

• We use gentle and smooth scrubbing compounds that will not damage or hurt the skin
and will cause no micro-wounds.
• The enzymes contained in the scrub will assist the mechanical action of the scrubbing
compounds to not only remove the skin cells, but also boost the skin's health in
general.
• The other natural ingredients will help to create a clearer, smoother and more
hydrated skin, while the other compounds get rid of the dead skin cells.
• It is economical, as only a small amount is used, and only needs to be applied, in most
cases, every three to four weeks.
• Apart from gently removing the dead skin cells it will also positively influence the
texture of the skin as well as the pore size.

\
 82

Orange extracts in cosmetic use

Various parts of the orange - from the orange fruit extract to the orange peel essential
oil can be used in cosmetics in a variety of ways.

Purifying Face Mask to purify your skin and banish dull looking skin

Daily skincare is essential for a good, healthy and vital looking skin.
A regular face mask will help you retain a clear and youthful skin,
giving your skin a boost and a breather, by treating it to more
intensified therapy. This face mask deeply cleanses the skin,
removing impurities and fighting minor skin problems and dull
looking skin, while providing nourishment to the skin.

General information on our Purifying Face Mask

Applying a face mask on a regular basis is a great way of boosting your skin's health
and vitality. The benefits achieved from using our Purifying Face Mask with Tea Tree are
many - it helps to clear up minor problem areas, deeply cleanses, adds vitality and a healthy
glow to the complexion, while also boosting your skin using high concentrations of active
ingredients. The active ingredients are so selected to balance your skin, while clearing out
impurities and fighting minor skin blemishes at the same time. (If you have skin problems,
rather use the Problem Skin Face Mask) This face mask is excellent to use on normal, dry as
well as moderately oily skin and can be used by both younger and more mature people.
Environmental pollutants cause havoc on your skin, and for this reason a regular face
treatment is a great way to ensure that you keep your skin looking healthy, glowing, vital,
well toned and clear.
 83

Ingredients used in our Purifying Face Mask

Our R&D people specially formulated this face mask to brighten dull looking skin while
deeply cleansing the skin and pores, fighting minor skin problems and at the same time
providing nourishment to the skin. Whereas some cosmetic manufacturers only use one or
two active ingredients, we rely on a whole range of active ingredients to create the promised
results, and all the active ingredients are used in therapeutic quantities.

Directions for use

• Cleanse the skin with Rejuvenating Face Wash, pat skin dry and apply Rejuvenating
Toner.
• Apply Purifying Face Mask with Tea Tree evenly over the face and neck area in small
circular movements, avoiding the eye and lip area.
• Relax and leave on for 15 - 20 minutes, then wash off with tepid water.
• Apply Rejuvenating Toner and Rejuvenating Serum plus the Rejuvenating Day
Cream or Rejuvenating Night Cream.
• Use the Purifying Face Mask with Tea Tree every 2 - 3 weeks, or weekly in extreme
cases.

Benefits of our Purifying Face Mask

• Deeply cleanses your skin and while preventing minor skin problems, will also help
clear up minor problems.
• Leaves the skin feeling deeply cleansed, fresh and rejuvenated.
• Adds a healthy glow to the complexion and also helps to clear dull looking skin.
• Helps to balance oil production and brighten the skin.

Olive leaf extracts to improve skin health and healing the skin
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It is an antiseptic and astringent ingredient when applied to the skin, and when used
internally it helps to lower fever, blood pressure and improves kidney function.

Olive leaf and promoting a healthy skin

Olive leaf extract is traditionally used as a cicatrizing agent – helping sores and
wounds to heal such as acne and pimples lesions. This activity is explained by the presence of
flavonoids and oleanolic acid, which stimulate the components of the connective tissue and
regularize the tissue - thereby boosting the health of the skin. It also has a positive effect on
human fibroblast, which translates into a healthier skin and furthermore has excellent
antioxidant and genoprotective effects, especially during conditions of oxidative stress.
When suffering from pimples and acne, the antioxidant effect of olive leaf is very useful,
since the skin is in a state of stress, and the continuous inflammatory state, which produces
the tell-tale skin redness, can cause premature aging over a period of time. Apart from these
healing and protective qualities, it also exhibits an antiviral effect as well as an anti-microbial
effect against fungi and bacteria.

Classification of olive leaf extract as a cosmetic ingredient

Olea Europaea (olive) leaf extract is an extract obtained from the leaves of the olive tree
(Olea europaea). It is used as a miscellaneous skin-conditioning agent.

Problem Skin Spot Treatment

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This treatment can be used daily on the skin when suffering from pimples and acne, or
can be used to help remove the occasional pimple or zit - which plague people of all ages.
The formula of our Spot Treatment does NOT contain Benzoyl Peroxide - so it will not dry
out the skin, nor will it cause any irritation.

General information on our Problem Skin Spot Treatment

This product falls within our Problem Skin Range, which is specially formulated for
people who have a problem with pimples and acne. However, this product can also be used
by people who do not have a continuous problem, but are bothered by the occasional pimple
or spot. Our Spot Treatment differs from most other topical treatments, as these other types of
treatments are normally based on benzoyl peroxide to treat the problem, and although we do
not doubt the effectiveness of this ingredient, it can irritate the skin to a great degree, and also
causes excessive dryness, which in turn is not conducive to a healthy, well-functioning and
vitally healthy clear complexion. We rather turned to two patented ingredients and a selection
of natural extracts to target the spots and pimples. We also included exotic botanicals such as
dragon's blood, as this has proven to help reduce the inflammation caused by pimples. The
other botanical extracts were all selected to support the skin and to assist with skin healing,
while at the same time supporting skin health. The first of the highly active patented
ingredients is ACNET, which has been clinically proven to clear problem skin and spots. The
other active ingredient - Bacocalmine, has been proven to soothe irritation, reduce skin
redness and will also ease the discomfort experienced with problem skin. Another dynamic
ingredient in the Spot Treatment is sulfur, a relatively expensive ingredient, but it is included
as it helps form an excellent topical treatment, containing the inflammation and the spread of
pimples and spots. When you use our Spot Treatment you will experience no stinging, so
often found with other topical treatments, as the product was specifically formulated not to
irritate the skin.

Ingredients used in our Problem Skin Spot Treatment

Most spot treatment creams or ointments have the habit of stinging the skin, or cause
excessive dryness - which in fact can promote even more skin problems. Our Spot Treatment
is a highly effective treatment to use on spots and pimples - and will achieve excellent results
without stinging or drying the skin - soothing and calming the skin and relieving skin
discomfort. Whereas some cosmetic manufacturers only use one or two active ingredients, we
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rely on a whole range of active ingredients to create the promised results, and all the active
ingredients are used in therapeutic quantities.

Directions for use

• Ensure your skin is clean and apply the Spot Treatment to the problem areas,
whenever necessary, at least twice a day.

Benefits of our Problem Skin Spot Treatment

• Highly effective and doesn’t sting.
• Does not dry out the skin.
• Reduces skin redness and calms the skin.
• Reduces painful areas and promotes healing.
• Helps prevent and reduce swelling, discomfort and pain.

Rose is used in many forms in cosmetic products and helps to create a youthful
complexion

Rose extract and rose oil have a host of beneficial effects on the skin and are great for
promoting a youthful complexion with good tone, elasticity and an even colored complexion.

Rosa damascena oil

Rosa damascena oil is the volatile oil obtained from the flowers of Rosa damascena
and is classified as an essential oil. It is used as a fragrance ingredient and is known as rose
oil, absolute and concrete. It has a deep yet fresh, rosy aroma, and the color of the oil ranges
from clear to a pale yellow or with a greenish tint (while the absolute has a more reddish
orange tint). It has an extremely complex chemical composition with more than 300 separate
compounds, but the main constituents are citronellol, phenyl ethanol, geraniol, nerol,
farnesol, stearpoten plus traces of nonanol, linalool, nonanal, phenylacetaldehyde, citral,
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carvone, citronellyl acetate, 2-phenylmethyl acetate, methyl eugenol, eugenol and rose oxide.
The main therapeutic properties for skincare are antiphlogistic, antiseptic, antiviral,
astringent, bactericidal, cicatrisant, depurative and a general tonic. It has excellent emollient
and hydrating properties, which helps the skin to stay soft and properly moisturized and fight
any dryness and dehydration. The stimulating action of it on the other hand is a boon for
fighting aging and maintaining a soft, dewy and youthful complexion. It is an extremely
expensive ingredient to produce, as it takes about 4,000 kilograms (about 8,800 pounds) of
flowers to yield 1 liter (about 33.81 fluid ounces) of rose otto or about 30 roses to yield one
drop of oil. The cicatrisant properties help with normal scar tissue formation - without any
excess keloids or fibrous matter. The cicatrisant properties and its great antiseptic, antiviral
and bactericidal properties, cause it to be a great ingredient to help heal the skin after any
trauma and stress and help speed up healing in general.

The farnesol contained in the oil has bacteriostatic as well as exceptional dermatophile
properties and is also very helpful in reducing broken capillaries and thread veins, as well as
boosting poor circulation. This results in a more evenly colored complexion, that is well
toned and healthy looking. It also has great value when used to calm an irritated skin and in
general promotes a younger looking skin with good tone, elasticity and color. It is a soothing,
non-toxic, non-irritant and non-sensitizing ingredient, and although gentle, has a profound
effect on the quality of the skin when used.

Rejuvenating Toner for a fresh clear skin

Our Rejuvenating Toner is an alcohol-free toner, containing silk amino acids,

myrrh, witch hazel, cranberry, rosehip, jojoba and thirteen other botanical
extracts to help boost the health of your skin, while at the same time refining
the skin and helping to reduce pore size and fighting any minor inflammation
while having a great astringent effect on the skin.

General information on our Rejuvenating Toner

Old fashioned toners were developed to remove the oily residue left behind by old
fashioned cleansers - and in order to do this, they contained alcohol (giving a cooling
sensation) to emulsify and remove the oily residue, but the alcohol content caused a drying
effect on the skin. Since we no longer have to use oily "cold creams" to clean the skin - and
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can rely on extremely effective, yet gentle face washes, which will not dry or distress our
skins, while removing all dirt, pollution, grime and make-up - like our Dermaxime
Rejuvenating Face Wash - the role played by facial toners has changed. Some modern facial
toners are developed to only balance the pH of the skin after cleaning, but since our
Dermaxime Rejuvenating Face Wash does NOT disrupt the pH of the skin, our research team
could spend their efforts on developing a toner that will help tone and refine the skin, while
completing the cleansing phase of your daily skincare regimen.

Ingredients used in our Rejuvenating Toner

Our research and development department combined a formula that attends to various
aspects of skin health, and has formulated the Rejuvenating Toner to positively influence the
health and vitality of your skin. Whereas some cosmetic manufacturers only use one or two
active ingredients, we rely on a whole range of active ingredients to create the promised
results, and all the active ingredients are used in therapeutic quantities.

Directions for use

• Cleanse the skin with Rejuvenating Face Wash, pat skin dry and apply toner by
spraying directly on to the skin and wiping with a tissue or cotton wool.
• The toner can be applied by spraying it onto cotton wool and wiping the face with the
wetted cotton wool.
• Ensure that you use the toner all over the face, including the area under the chin, the
neckline and hairline as well.

Benefits of our Rejuvenating Toner

• Ensures the pH of your skin is correct.
• Contains active ingredients to boost the health of your skin.
• It will help refine and minimize pore size and helps refine the skin texture.
• Reduce redness and calms the skin.
• Improve circulation.
• Extremely economical to use.

Caffeine in skincare
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Caffeine is used in specialist cosmetic and skin care products, as it helps with the
absorption of the other active ingredients contained in the formula. In clinical trials it was
also proved that caffeine works in synergy and improves the effects of escin (the active
ingredient found in Horse chestnut). This is a heterocyclic organic compound, classed as
heterocyclic compounds. Caffeine is used as a miscellaneous skin-conditioning agent and can
also be applied as a fragrance ingredient. It furthermore presents a lipolytic effect: it blocks
enzymes responsible for the destruction of AMPc, which is involved in triglycerides
breakage. It also possesses vasodilator properties, increasing blood flow and therefore
contributes in both the lipolytic and venotonic effect. Caffeine does not have the same effect
on the skin, when used topically in skin care, as it has when taken systemically (e.g. when
you drink coffee).

Cellumend Anti-Cellulite Cream

Cellulite is not simple fat, but a way in which your body reacts to a build-up of
toxins in the connective tissue in the skin. This then manifests as a honeycomb
web of waterlogged and toxin filled tissue.

Some people are skeptical about cellulite creams, as so many of these products
promise results - but then not delivering on its promise. But with the coming
of Cellumend this all changed - this first-of-its-kind cellulite cream effectively removes
cellulite and gets rid of the orange-peel effect on your skin, when used regularly as
prescribed.

General information on our Cellumend Anti-Cellulite Cream

Cellumend is a serious anti-cellulite product, backed by a huge amount of research

and formulation of the active ingredients. Liporeductyl, one of the patented molecules used in
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Cellumend, was clinically tested, and showed to be most effective in achieving a cellulite-
free body. Although our cream is effective, we also advocate that people change their
lifestyle to prevent further cellulite from forming. The cream was formulated to be easily
absorbed and to leave the skin smooth with no tacky or oily feel afterwards.

Ingredients used in our Cellumend Anti-Cellulite Cream

Apart from the patented molecule used in Cellumend we have also included a variety of
other botanical and marine ingredients to further bolster the effectiveness of the formulation.
Whereas some cosmetic manufacturers only use one or two active ingredients we rely on a
whole range of active ingredients to create the promised results, and all the active ingredients
are used in therapeutic quantities.

Benefits of our Cellumend Anti-Cellulite Cream

• Economical as only a small amount is used.
• Non-tacky, non-oily formula.
• Easily absorbed.
• Rapid results experienced.

Directions for use

Apply the cream sparingly to the affected area, twice daily, after a shower or bath. Do this
preferably in the morning and before going to bed at night.

Warning:
• Not to be used during pregnancy or in cases of iodine or marine allergies, or if allergic
to any of the ingredients listed.

Borage for use on problem and acne skin

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Borage has a cooling, saline, diuretic effect on the skin, which is very welcome, as it
soothes damaged and irritated tissues and skin, such as in the case of problem or acne skin. It
furthermore helps to soothe the skin while having an anti-inflammatory action.

Cosmetic use of borage in problem and acne skin

Borage is very emollient and soothing and helps to reduce reddening of very sensitive
skins. It has a skin clearing and lightening effect and promotes healthy skin growth. It
furthermore has good anti-inflammatory action and also acts as a hormonal balancer. Taking
the above-mentioned properties into account, it is easy to see why it is a great ingredient to
use on problem skins, especially when acne, pimples and blemishes are present. Topical
application of borage oil has been shown to be effective in preventing and treating
inflammatory conditions and skin disorders, such as eczema and dermatitis, in both animals
and humans.

Problem Skin Night Lotion

When you have skin problems such as acne, pimples and zits - you would be
looking at a treatment that would not increase the oiliness of your skin, but
would effectively fight the problems, while at the same time look after the
general health of your skin. Effective results are achieved with our Problem
Skin Night Lotion - it will help reduce oiliness, refine the skin, reduce pore
size, sort out the causes of the problems - and also balance the moisture and
hydration levels of your skin.

General information on our Problem Skin Night Lotion

At night your body, including the skin, has the task of repairing and maintaining
itself, and for this reason we formulated our Problem Skin Night Lotion in such a way as to
provide the skin with all the ingredients needed to not only fight problem skin, but look after
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general skin health as well. Apart from helping to sort out existing skin problems, it will help
to prevent any further skin problems, yet ensure that the skin is not irritated or traumatized in
any way. It often happens with treatments designed for sorting out acne and pimples, that
although they do help, they lead to a sore, irritated and badly inflamed skin, which is not only
painful, but also dry, flaky and peeling. We opted to look at the problem holistically, and
created our Problem Skin Range to not only sort out the problems, but to look at the general
health of the skin as well. With this in mind we rather decided to use an array of patented
ingredients to sort out the acne and pimples, and combine this with other botanical extracts to
assist in clearing up the skin and to actively look after the skin health in general. Apart from
sorting out the causes of the acne and pimples, we also included ingredients to help the skin
heal faster and better, and to help reduce the risk of scarring. With our Problem Skin Range,
including our Problem Skin Night Lotion, we enable people of all ages to have a blemish-free
skin, and while achieving this, ensure the utmost comfort, while maximizing general skin
health.

Ingredients used in our Problem Skin Night Lotion

This superb light-weight lotion will not only help sort out your skin problems, but will at
the same time calm and soothe the skin and improve skin health. Whereas some cosmetic
manufacturers only use one or two active ingredients, we rely on a whole range of active
ingredients to create the promised results, and all the active ingredients are used in
therapeutic quantities.

Directions for use

• Cleanse the skin with Dermaxime™ Problem Skin Face Wash, pat dry and apply
Dermaxime™ Problem Skin Toner.
• Place a small amount of the Problem Skin Night Lotion on tips of fingers, rub
together, and then gently massage with upward and outward strokes to your face and
neck.
• Individual spots can then be treated with Dermaxime™ Spot Treatment.

Benefits of our Problem Skin Night Lotion

• Fights acne and pimples.
• Non-greasy, yet highly moisturizing.
• Reduces skin oiliness and shiny skin.
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• Reduces pore size and refines skin texture.

• Sooths and calms the skin, while reducing skin redness.

Description for one herb Herbal Bath:

Melissa: This highly concentrated bath treatment, featuring

aroma-intensive Indian melissa oil and extracts of lemon balm, relaxes and soothes.

All One Herb Herbal Baths bathe away stress, strain and fatigue with the purest natural
herbs in the form of essential oils (the plant's "immune system"), which interact with the
natural healing and soothing powers of water. These therapeutic baths benefit body and
mind through skin absorption and inhalation.

Description for One Herb Herbal Bath: Orange &

Linden Blossom:

This highly concentrated bath treatment, featuring aroma-intensive essential oils of

orange and linden blossom extracts, harmonizes your mind and body. All One Herb
Herbal Baths bathe away stress, strain and fatigue with the purest natural herbs in the
form of essential oils (the plant's "immune system"), which interact with the natural
healing and soothing powers of water. These therapeutic baths benefit body and mind
through skin absorption and inhalation.
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Description for One Herb Herbal Bath: Rosemary:

This highly concentrated bath treatment, featuring aroma-intensive essential oil of

rosemary, exhilarates and wakes up the system.
All One Herb Herbal Baths bathe away stress, strain and fatigue with the purest natural
herbs in the form of essential oils (the plant's "immune system"), which interact with the
natural healing and soothing powers of water. These therapeutic baths benefit body and
mind through skin absorption and inhalation.

Description for One Herb Herbal Bath: Juniper:

This highly concentrated bath treatment, featuring aroma-

intensive essential oil of juniper and wintergreen, relaxes and
soothes your muscles after physical exercise. All One Herb
Herbal Baths bathe away stress, strain and fatigue with the purest natural herbs in the
form of essential oils (the plant's "immune system"), which interact with the natural
healing and soothing powers of water. These therapeutic baths benefit body and mind
through skin absorption and inhalation.

Black Pepper Pure Natural Soap

Black pepper is an important herb in traditional Thai medicine.
The blended black pepper essential oils in this soap stimulate
your circulation and fight against cellulite.

Papaya Pure Natural Soap

Blended fresh papaya, a tropical fruit loaded with vitamin
A, helps moisturize the skin, while natural AHA acids
exfoliate and brighten your skin. It is used widely in
tropical spas, and is rapidly making inroads elsewhere.
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Ingredients : Oryza sativa (rice) bran oil, aqua, Cocos nucifera L. (coconut) oil, Elaeis
guineensis (palm)oil, Helianthusannuus(sunflower seed) oil, sodium hydroxide, Carica
papaya Linn.(papaya), fragrance, essential oils, Tocopherol

Ginger Pure Natural Soap

Ginger is an important herb used in many oriental remedies
to raise energy levels and stimulate circulation. This soap’s
ginger extracts do this, while its refreshing aroma balances
your mind.
Ingredients : Oryza sativa (rice) bran oil, aqua, Cocos nucifera L. (coconut) oil, palm
oil, Olea europaea(olive)oil, sodium hydroxide, zingiber offcinale (ginger) oil,
cymbopogon citratus (lemongrass) oil, tocopherols.

Lemongrass Pure Natural Soap

This soap highlights the relaxing scent of lemongrass, a famous
Thai herb, which is widely used to relieve stress.
Ingredients : Oryza sativa(rice) bran oil, aqua, Cocos nucifera
L. (coconut) oil, Elaeis guineensis (palm)oil, Olea europaea (olive) oil,Theobromam cacao
(cocoa butter), sodium hydroxide, Cymbogon citratus(lemongrass)oil, Cedrus Atlantica
(cedarwood)oil , tocopherols

Pomegranate Pure Natural Soap

Blended pomegranate extracts contain high vitamin C
promote the production of collagen. Pomegranate is a
traditional symbol of prosperity in parts of Asia.
Ingredients : Oryza sativa (rice) bran oil, aqua, Cocos nucifera L. (coconut) oil, Elaeis
guineensis (palm)oil, Olea europaea (olive) oil,Theobromam cacao (cocoa butter),
sodium hydroxide, Punica granatum (pomegranate)ext., Citrus aurantium (orange)oil,
styrax benzoin (benzoin), tocopherols
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Mangosteen Pure Natural Soap

Blended mangosteen extracts and fresh, sweet aromas fight
against aging skin and brighten your skin.

(4.1.2)

• Specification, Feathers, Dimension, Life Time, etc.

The demand for natural beauty products have increased considerably in recent years
because of an evolving awareness of holistic health. Certainly, chemicals and synthetic
preservatives used in cosmetics have been conducted allergies, acnes and other skin damage
and that is the reason consumers are drawn to natural products. Natural cosmetics of different
kinds of resources that are harmless and environmentally friendly production. Nature has
abundance to obtain resources that are used directly or indirectly as derivatives for beauty
products. Natural resources provide an endless selection of the best skin toners, skin creams,
moisturizers, lotions and other natural skin care and cosmetics.

Thailand is the hub for all natural cosmetics. Beauty and Ayurvedic recipes from India
are known all over the world. Various Thai herbs and plants are highly regarded for their
beauty recipes. Some of the most popular among them are senna Leaves, moringa dried
leaves, neem leaves, sandalwood, rose petals and lavender. Thai Aloe Vera has a special
meaning in the whole world, because the end results from the plant to its use.

These cosmetics are also known as herbal cosmetics various parts of plants "are
mentioned frequently used in the production of different beauty recipes. Various essential oils
from seeds, leaves, extracts, barks as important ingredients in many of the used Cosmetics.
Some fruits and vegetables are used effectively to capture the beauty by maintaining and
improving the radiant youthfulness of the skin. Fruits such as cucumber, orange, peach,
apricot and incomparable beauty masks do. Milk, honey, turmeric, saffron, grapefruit, lemon,
yogurt and eggs are among the most widely accepted natural ingredients. Beeswax, carnauba
wax and candelila are waxes derived from plants that are used in cosmetics as a Texturizer.
Beauty products from natural Commodities rejuvenate and harmonize body, skin and soul, to
keep improving the texture and moisture capacity of skin. Not all natural products are mineral
based and organic. Some of the natural beauty products consist of minerals and organic
 97

ingredients. Titanium dioxide, zinc oxide, mica and sericite minerals are found naturally in
the earth's crust. Various beauty recipes are obtained from these natural resources. Natural
mineral cosmetics are free from chemicals,synthetic oils, alcohol, perfume and other
preservatives, and the best option for people with sensitive skin. Natural Organic Skin Care
Cosmetics are products that are truly natural and organic ingredients, the skin vibrant,
beautiful, and leave healthy. There is an endless series of safe and non toxic organic skin care
products.

(4.1.3) Production/Services Process

We often classify processes based on their physical configuration, material and product flow,
flexibility, and volume expectation.

- Analyzing the product entry and exit.

- Determining the appropriate mix of manufacturing facilities, identifying the key

manufacturing objectives for each plant, and monitoring progress on those objectives
at the corporate level.
- Reviewing investment decisions for plants and equipment in terms of their
consistency with product and process plans.
- Determining the direction and timing of major changes in a company's production
processes.
- Evaluating product and market opportunities in light of the company's manufacturing
capabilities.
- Selecting an appropriate process and product structure for entry into a new market.

(4.1.4) Location

Company Locations and Facilities

- The company's main office is located in Chiang Rai. The office is approximately
400 square feet. An additional 800 square feet of office space can be made available
within the building. This should be sufficient for planned staff size within the first few
years. The company has a five-year lease on the current space with an additional five-year
option. An option exists on the expansion space as well.
 98

- Distribution in the first year will be managed from a facility. In years two through
five we plan to manage distribution through a contract resource capable of handling both
wholesale distribution and retail fulfillment

- Skin and body care products will be developed and produced at our contract
facilities in Chiang Mai.

- Production of apparel products will be managed through our contract manufacturer

of cosmetics-related apparel. They have a 50,000 square foot production

- Facility in Chiang Rai, for high-quality technical apparel.

- Production of cosmetics will be managed through a contract with a manufacturer of

quality.

Figure-4.1: Company Location

(4.1.5) Facility Layout

Infrastructure

We are equipped with a state of the art infrastructure that combines all kinds of
wherewithal to facilitate the complete set of activities to ensure superlative quality of
ayurvedic herbs and experiments for novel as well as customized formulations. To refine the
quality of our products, we constantly keep the entire process of preparation under the
scanner of the experts. We have highly qualified and specialized experts with keen and
extensive knowledge of herbs and herbal matters. We have the entire range of apparatus, in
our laboratories, to pay attention to each and every aspect of the herbs as they undergo the
preparatory process. The set of apparatus is regularly checked by the lab keepers to ensure
proper maintenance of their efficiency. Our sprawling laboratories house the latest collection
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of apparatus. Some of the apparatus have been imported from abroad, while the rest has been
procured from the domestic market.Apart from modern apparatus, our laboratories also
posses special arrangements to regulate the temperature in keeping with the requirements.

We offer a range customized herbal formulations, by mixing and matching different herbal
parts, to provide you with efficacious remedy that is minutely and specifically tailored to
your need.
Our infrastructural facilities allow us to adopt Good Manufacturing Practice (GMP). At
Natural Cosmetics, it means the pursuit of excellence. It is not restricted to manufacturing
and the factory floor alone. It extends to the entire process, from manufacturing to shipping to
providing the individual customer the best that Ayurvedic medicine has to offer. From the
basic raw material to the quality end product GMP is interrelated closely and practised by
every employee.

At Natural Cosmetics include

Facilities: Layout and construction of the plant, lighting, ventilation, air filtration, air heating
and cooling, plumbing sewage and refuse, sanitation, washing and toilet facilities.

Herbal formulation development : Pre-formulation, herbal stability evaluation, detailed

specifications of various inputs like raw materials and packing materials.

Vendor selection and development.

Good warehouse management practices.

Good production management practices: Selection and validation of equipment, detailed

documentation and preparation of standard operating procedures.

Good maintenance practices : Proper layout of equipment, spares maintenance, equipment

maintenance and preventive maintenance.

Good control laboratory practices : Analysis and testing procedures, standardization and
sampling plans, etc.
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Good distribution practices : Proper storage conditions and appropriate transportation.

road variety of lipids called NanoSolve

(4.1.6) Machine/Tools/Equipment

Herb Extracts for Cosmetic/Topical Application

Herbs and spices have been used in maintaining and enhancing human beauty since time
immemorial. Indian women have long used herbs such as Sandalwood and Turmeric for skin
care; Henna to color the hair, palms and soles; and natural oils to perfume their bodies. Not
too long ago, elaborate herbal beauty treatments were carried out in the royal palaces of India
to heighten sensual appeal and maintain general hygiene. Rightly said, beauty is very much
an inner thing. First beautify from within.

(4.1.7) Logistics Management

Logistics management is a process of delivering the required goods and services. The
balanced scorecard is a strategic planning and management framework that is persistently
used to translate the organizational strategies into action plan. With the aid of balanced
scorecard, a business organization can surely boost up its logistics and supply chain
management process significantly. In addition, these system applications would help the
business organization to determine its insufficient areas effectively. Then these system
applications would help you to improve your various business processes such as order
processing, production, accounting, transportation, shipment and route. Thus it would help
you to improve your internal as well as external communications effectively.

(4.1.8) Facility Management

- All-Encompassing Product Range

All these products are manufactured to fulfill the quality standards and acceptability
norms of various countries and hence are widely accepted in domestic as well as export
markets. We are offering a wide range of herbal hair care and body care items. We can also
provide customized solutions as per the buyer's requirements and specifications.
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- Manufacturing Unit

We follow a streamlined and stringent manufacturing process, with special attention

being paid to the quality of the raw material used. The raw materials used by us are procured
from natural resources that that are organically grown plants and herbs from natural habitats.
Advanced techniques in extraction, blending, mixing, filtering, straining, etc. are
implemented that ensures all our products are produced hygienically.

- Team

Apart from the automated support, we consider our manpower to be our competitive
edge. Our dynamic and energetic team members have vast experience in this industry. Our
management team consists of engineers, pharmacists, chemists, foreign trade management
executives and other skilled personnel. They are capable of commencing your assignments to
the exact specifications and in the stipulated time period.

Our R&D team constantly engages in research to understand the market dynamics in a better
way and offer innovative products. Our highly disciplined and diligent team has been
responsible for the maintenance of the quality of our products. All necessary facilities have
been provided to ensure hygiene and cleanliness of the end products. We are open to
incorporate innovative ideas and to adapt to the changing times and tastes of our buyers.

- Quality Assurance

We lay high emphasis on the quality of our products. Quality being the prime feature
of our products we utilize only authentic raw materials and natural elements to manufacture
all our products. From the extraction of raw herbs to the final packaging of the products, all
stages of production are strictly monitored by quality control experts.

Clients

Our products have gained immense popularity in the market. We have earned the
confidence and trust of a large number of esteemed customers across the globe.Due to our
commitment and customer-centric approach.

- Dealership
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Most of the initiative towards the success of our organization can be credited to a
strong association with dealers throughout the domestic and international markets. We are an
organization that believes in strengthening its network while capturing the mass through its
well-established dealers and outlets. We try to reach all the segments of market by forming
strong bonds with wholesale and retail dealers. We tend to retain our relationships with them
by providing an active support and excellent services.
We current dealers intend to continue marketing and supplying our graded quality products
that are widely appreciated. We regularly make efforts to bind with new dealers and always
invite them to associate with us, in order to carry on the business in a cooperative manner.

4.2 Cost of Investment

- Pre-Operating Cost

Cost and revenue for management Activities before operation (Gantt chart)

Activities before Month

No operation
1 2 3 4 5 6 7 8 9 10 11 12
1 Research
2 Connect office
3 Commitment o

Figure-4.2: Cost of Investment

Pre-Operating Cost

No Activities before operation Amount

[baht]
1 Connect cost 8,000
2 Miter cost 3,000
3
4
Total 11,000

Figure-4.3: Pre-Operating Cost

 103

 Investment Cost

- Land

- Buildings

- Equipments

- Tools

- Etc

- Depreciation

Organization

Price How long Depreciation Depreciation

No Item [baht] [year] per year per month

1 Land of office 900,000.00 3 300,000.00 25,000

350,000. 35 2,
2 Buildings of office 00 10 ,000.00 916.67
3 Equipments in office
25,000.
The desks 00 5 5,000.00 416.67
9,000
The chairs .00 5 1,800.00 150.00
30,000.
Bookshelf 00 5 6,000.00 500.00
180,000. 36 3,
Computer 00 5 ,000.00 000.00
35,000.
Printer 00 5 7,000.00 583.33
18,00
Telephone 0.00 5 560.00 46.67
2,000.0
Fax 0 5 4,000.00 333.33

829,000. 15 12,
Total 00 5,360.00 946.67
4 Vehicle of office 200,000.00 10 20,000.00 1,666.66
 104

Total 200,000.00 20,000.00 1,666.66

6 Property
Franchise
Office rent

Total
2,279,000.0
Total 0 510,360.00 42,530

Figure-4.4: Investment Cost

Office cost

Cost of produce

Property for a long time to produce

105
 106

Figure-4.5: Office Cost

How long for Depreciation Depreciation per

No Items Price [baht] per year
use [ year] month

1 land 150,000.00 10.00 15,000.00 1,250.00

2 Building for produce 250,000.00 5.00 50,000.00 4,166.67

3 Equipments - - - -

Total 400,000.00 65,000.00 5,416.66

4 Transport fee cost - - - -

Total - - - -

5 Property

Franchise - - - -

Office rent - - - -

- - - -

Total - - -

Total (1 + 2 + 3 + 4 + 5) 400,000.00 65,000.00 5,416.66

 Operating Cost
 107

- Raw material Cost

- Direct Labor Cost

- Overhead

amount [baht]
No Item per year
1 Equipments 100,000.00
2 Salary of 420,000.00
3 Utilities 28,000.00
4 Telephone 36,000.00
5 Office rent 150,000.00
6
734,00
Total 0.00

Figure-4.6: Operating Cost

Transport fee for receive and deliver goods of material.

Year Month Total

1 2 3 4 5 6 7 8 9 10 11 12
1 3,000 1,500 1,500 - - 1,500 1,500 - - 1,500 1,500 12,000

Total 3,000 1,500 1,500 - - 1,500 1,500 - - 1,500 1,500 12,000

Figure-4.7: Transport Fee

(Transport fee cost is 12,000 baht for year)

 108

Labor for produce

Figure-4.8: Labor for produce

Month Total
Item
1 2 3 4 5 6 7 8 9 10 11 12

Labor fix cost

150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00
Salary 150,000 1,800,000
0 0 0 0 0 0 0 0 0 0 0
150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00
Total 150,000 1,800,000
0 0 0 0 0 0 0 0 0 0 0

Labor for produce cost is 1,800,000 baht for year because our company has less employees then employees is same salary.

Company cost for produce

Company cost for produce [fix cost]

Electricity cost of office is more for use because there must to use produce the product then must water cost, Fuel cost, and Building rent of facto
 109

Cost and budget of marketing

Cost and Month

budget of
marketing 1 2 3 4 5 6 7 8 9 10 11 12 Total

1.Advertising 10,000 5,000 5,000 - - 1,500 - - 1,500 - - 1,000 24,000

2.Public 3,000 2,000 1,000 - - - 1,000 - - - - 1,000 8,000

relations cost

3.Commissions 1,500 - - - - - 1,500 - - - - - 3,000

cost
150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 150,00 1,800,000
4.Wage of 0 0 0 0 0 0 0 0 0 0 0 0
employees cost
3,000 1,500 1,500 - - 1,500 1,500 - - 1,500 1,500 12,000
5. Transport
fee cost

Total 167,50 158,50 157,50 150,00 150,00 153,00 154,00 150,00 151,50 151,50 150,00 153,50 1,847,000
0 0 0 0 0 0 0 0 0 0 0 0
Figure-4.9: Cost and budget of marketing
 110

Cost and budget of marketing has 1,847.000 baht for first year because the first year must
use the most budget because promote the product, customer can know about the product.

4.2 Management Analysis

- Administration Cost

For cost of our company, must use the most money because it first year then must buy
many types of equipment for use in the organization. Our company must compute about
organization and factory rent then our company may be lost for the first year because use the
most money after that the second year our company don’t buy some equipment because it can
use 5 years. We have reduced some cost for organization and next year our company will be
profits in the future.

4.3 Conclusion

For my our business can impossible in the future because environment in Chiang Rai
has top destination in the north then people has more income in the future. Because, our
company goods produces from raw source material from the nature and herbs. Thus now we
then should turn to take an interest with the cosmetic from the nature and herbs more and
more for the beauty and have good health simultaneously by have various kinds herbs in now
that like to use are the compounds of the cosmetic such as product of One Herbs Cosmetic
company. And be popular well because of, the user is certain that safe more than using
chemicals cosmetic.
 111

Chapter 5

Financial Analysis

Financial

In order to launch its unique product line One Herb Cosmetics requires an initial outlay.
Sales at One Herb Cosmetics retail stores are planned to grow rapidly from year 1 through
Year 5. During this time frame our wholesale revenues are planned to grow enormously. One
Herb Cosmetics will become profitable in our third year of operation. Initial growth will be
financed by a combination of equity investment and debt financing. Our ratios are well within
prudent limits and our growth plans are challenging, but realistic.

Figure-5.1: Net Profit

All financial Statements are in monthly base. Minimum 5 year statements are required

5.1 Profit/Loss Statement

One Herb Cosmetics is expected to reach profitability in year three. Certain expenses in
the early years may appear outside the accepted ranges (i.e. marketing) as a % of sales. This
is a result of our strategy to bring the brand to prominence in five years and should be
considered as a start-up cost. Likewise, our initial salary numbers and staffing reflect our
growth plan rather than a stable or mature business. Our margin numbers may appear high.
This is the result of a combined retail and wholesale strategy. Our retail stores and catalogue
will calculate margin from first cost rather than wholesale. Our wholesale effort will not
 112

receive sales credit for internal sales (this reflects a more accurate picture of retail
profitability and of wholesale growth). Our margins are projected lower in years two and
three to account for promotions to wholesalers intended to assist in reaching our wholesale
sales targets. In years four and five, margins move up again as the number of retail stores
increases and the catalogue comes online. As the retail business overtakes the wholesale
business we believe maintained margins can exceed median. Wholesale commissions are
calculated at a straight percent of sales. We have assumed a continuation of outside sales
management in these tables.
 113

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales ฿0 ฿0 ฿0 ฿0 ฿0 ฿25,185 ฿24,725 ฿39,871 ฿25,895 ฿107,225 ฿114,671 ฿132,729

Direct Cost of
฿0 ฿0 ฿0 ฿0 ฿0 ฿6,296 ฿6,181 ฿9,968 ฿6,474 ฿36,309 ฿38,392 ฿43,140
Sales

Production
฿0 ฿0 ฿0 ฿0 ฿0 ฿3,333 ฿3,333 ฿3,333 ฿3,333 ฿5,166 ฿5,166 ฿5,166
Payroll

Ecommerce &
Catalog
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Production &
Fulfillment

Total Cost of
฿0 ฿0 ฿0 ฿0 ฿0 ฿9,629 ฿9,514 ฿13,301 ฿9,807 ฿41,475 ฿43,558 ฿48,306
Sales

Gross Margin ฿0 ฿0 ฿0 ฿0 ฿0 ฿15,556 ฿15,211 ฿26,570 ฿16,088 ฿65,750 ฿71,113 ฿84,423

 114

Pro Forma Profit and Loss

Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 61.77% 61.52% 66.64% 62.13% 61.32% 62.02% 63.61%

Operating
Expenses

Sales and
Marketing
Expenses

Sales and
Marketing ฿0 ฿0 ฿0 ฿0 ฿4,800 ฿7,333 ฿7,333 ฿7,333 ฿7,333 ฿7,333 ฿7,333 ฿7,336
Payroll

Advertising/Pro
฿0 ฿0 ฿0 ฿0 ฿0 ฿1,007 ฿989 ฿1,595 ฿1,036 ฿1,365 ฿1,595 ฿2,245
motion Retail

Advertising/Pro
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿10,000 ฿10,000 ฿20,000 ฿20,000 ฿20,000
motion Brand
 115

Pro Forma Profit and Loss

Travel &
฿0 ฿0 ฿0 ฿0 ฿0 ฿756 ฿2,000 ฿1,196 ฿4,000 ฿2,145 ฿3,440 ฿2,655
Entertainments

Selling Supplies ฿0 ฿0 ฿0 ฿0 ฿0 ฿252 ฿247 ฿399 ฿259 ฿1,072 ฿1,147 ฿1,327

Wholesale
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿8,772 ฿8,976 ฿9,192
Commissions

Total Sales and

Marketing ฿0 ฿0 ฿0 ฿0 ฿4,800 ฿9,348 ฿10,569 ฿20,523 ฿22,628 ฿40,687 ฿42,491 ฿42,755
Expenses

Sales and
0.00% 0.00% 0.00% 0.00% 0.00% 37.12% 42.75% 51.47% 87.38% 37.95% 37.05% 32.21%
Marketing %

General and
Administrative
Expenses

General and ฿3,000 ฿6,750 ฿10,500 ฿13,833 ฿13,833 ฿13,833 ฿17,833 ฿17,833 ฿18,833 ฿18,833 ฿18,833 ฿18,833
Administrative
 116

Pro Forma Profit and Loss

Payroll

Depreciation ฿0 ฿0 ฿0 ฿1,574 ฿1,574 ฿1,574 ฿1,574 ฿1,574 ฿1,574 ฿1,574 ฿1,574 ฿1,574

Leased
฿0 ฿0 ฿0 ฿1,800 ฿1,800 ฿1,800 ฿1,800 ฿1,800 ฿1,800 ฿1,800 ฿1,800 ฿1,800
Equipment

Utilities ฿0 ฿0 ฿0 ฿0 ฿0 ฿126 ฿124 ฿199 ฿129 ฿375 ฿402 ฿465

Insurance ฿0 ฿0 ฿0 ฿0 ฿0 ฿126 ฿124 ฿199 ฿129 ฿536 ฿573 ฿664

Bad Debt ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿1,327

Legal Fees ฿0 ฿0 ฿0 ฿0 ฿0 ฿76 ฿74 ฿120 ฿78 ฿322 ฿344 ฿398

Licenses &
฿0 ฿0 ฿0 ฿0 ฿0 ฿25 ฿25 ฿40 ฿26 ฿107 ฿115 ฿133
Permits

Office Supplies ฿0 ฿0 ฿0 ฿0 ฿0 ฿126 ฿124 ฿199 ฿129 ฿536 ฿573 ฿664

 117

Pro Forma Profit and Loss

Telephone ฿0 ฿0 ฿0 ฿0 ฿0 ฿126 ฿124 ฿199 ฿129 ฿375 ฿401 ฿465

Taxes/non-
฿0 ฿0 ฿0 ฿0 ฿0 ฿378 ฿371 ฿598 ฿388 ฿1,608 ฿1,720 ฿1,991
income tax

15
Payroll Taxes ฿450 ฿1,013 ฿1,575 ฿2,075 ฿2,795 ฿3,675 ฿4,275 ฿4,275 ฿4,425 ฿4,700 ฿4,700 ฿4,700
%

Other General
and
฿0 ฿0 ฿0 ฿0 ฿0 ฿1,259 ฿1,236 ฿1,994 ฿1,295 ฿1,706 ฿1,994 ฿2,806
Administrative
Expenses

Total General
and
฿3,450 ฿7,763 ฿12,075 ฿19,282 ฿20,002 ฿23,124 ฿27,684 ฿29,030 ฿28,935 ฿32,472 ฿33,029 ฿35,820
Administrative
Expenses

General and
Administrative 0.00% 0.00% 0.00% 0.00% 0.00% 91.82% 111.97% 72.81% 111.74% 30.28% 28.80% 26.99%
%
 118

Pro Forma Profit and Loss

Creative
Expenses:

Creative Payroll ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0

Consultants ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0

Contract/Consult
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
ants

Total Creative
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Expenses

Creative % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Total Operating
฿3,450 ฿7,763 ฿12,075 ฿19,282 ฿24,802 ฿32,472 ฿38,253 ฿49,553 ฿51,563 ฿73,159 ฿75,520 ฿78,575
Expenses
 119

Pro Forma Profit and Loss

Profit Before
(฿12,075 (฿19,282 (฿24,802 (฿16,916 (฿23,042 (฿22,983 (฿35,475
Interest and (฿3,450) (฿7,763) (฿7,409) (฿4,407) ฿5,848
Taxes ) ) ) ) ) ) )

(฿12,075 (฿17,708 (฿23,228 (฿15,342 (฿21,468 (฿21,409 (฿33,901

EBITDA (฿3,450) (฿7,763) (฿5,835) (฿2,833) ฿7,422
) ) ) ) ) ) )

Interest Expense ฿693 ฿1,385 ฿1,286 ฿1,188 ฿1,089 ฿990 ฿891 ฿792 ฿693 ฿594 ฿495 ฿396

Taxes Incurred ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0

(฿13,361 (฿20,469 (฿25,890 (฿17,906 (฿23,933 (฿23,774 (฿36,167

Net Profit (฿4,143) (฿9,148) (฿8,003) (฿4,901) ฿5,452
) ) ) ) ) ) )

Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% -71.10% -96.80% -59.63% -139.67% -7.46% -4.27% 4.11%

Figure-5.2: Profit and Loss Statement

 120

Figure-5.3a: Profit

Figure-5.3b: Profit
 121

Profit and Loss minimum 5 years

Pro Forma Profit and Loss

Year 1 Year 2 Year 3 Year 4 Year 5

฿3,737,5 ฿10,033,5 ฿19,219,1 ฿38,803,9

Sales ฿470,301
00 00 00 42
฿1,324,3 ฿3,548,37 ฿6,754,77 ฿13,600,9
Direct Cost of Sales ฿146,760
75 5 5 86
Production Payroll ฿28,830 ฿82,000 ฿109,000 ฿137,000 ฿146,000

Ecommerce & Catalog ฿1,600,00

฿0 ฿125,000 ฿500,000 ฿900,000
Production & Fulfillment 0
฿1,531,3 ฿4,157,37 ฿7,791,77 ฿15,346,9
Total Cost of Sales ฿175,590
75 5 5 86

฿2,206,1 ฿5,876,12 ฿11,427,3 ฿23,456,9

Gross Margin ฿294,711
25 5 25 57
Gross Margin % 62.66% 59.03% 58.57% 59.46% 60.45%

Operating Expenses

Sales and Marketing

฿56,134 ฿150,604 ฿347,208 ฿656,416 ฿967,624
Expenses
Sales and Marketing Payroll ฿9,832 ฿19,500 ฿41,340 ฿88,764 ฿192,158

Advertising/Promotion ฿1,000,00 ฿2,000,00

฿80,000 ฿250,000 ฿500,000
Retail 0 0
Advertising/Promotion
฿16,192 ฿74,750 ฿200,670 ฿384,382 ฿776,079
Brand
Travel & Entertainments ฿4,703 ฿37,375 ฿100,335 ฿192,191 ฿388,039

฿1,800,00 ฿3,600,00
Selling Supplies ฿26,940 ฿360,000 ฿960,000
0 0
฿1,800,00 ฿3,600,00
Wholesale Commissions ฿26,940 ฿360,000 ฿960,000
0 0
Total Sales and Marketing ฿2,149,55 ฿4,121,75 ฿7,923,90
฿193,801 ฿892,229
Expenses 3 3 0
 122

Sales and Marketing % 41.21% 23.87% 21.42% 21.45% 20.42%

General and Administrative

Expenses
General and Administrative ฿1,020,50 ฿1,122,55
฿172,747 ฿640,000 ฿905,000
Payroll 0 0
Depreciation ฿14,166 ฿37,170 ฿73,740 ฿146,880 ฿220,015

Leased Equipment ฿16,200 ฿21,600 ฿36,000 ฿50,400 ฿79,200

Utilities ฿1,820 ฿13,081 ฿35,117 ฿67,267 ฿135,814

Insurance ฿2,351 ฿7,475 ฿20,067 ฿38,438 ฿77,608

Bad Debt ฿1,327 ฿37,375 ฿100,335 ฿192,191 ฿388,039

Legal Fees ฿1,412 ฿7,475 ฿20,067 ฿28,829 ฿58,206

Licenses & Permits ฿471 ฿3,738 ฿10,034 ฿9,610 ฿19,402

Office Supplies ฿2,351 ฿18,688 ฿50,168 ฿96,096 ฿194,020

Telephone ฿1,819 ฿13,081 ฿35,117 ฿67,267 ฿135,814

Taxes/non-income tax ฿7,054 ฿56,063 ฿150,503 ฿288,287 ฿582,059

Payroll Taxes ฿38,657 ฿142,141 ฿224,281 ฿294,197 ฿359,747

Other General and ฿2,400,19

฿12,290 ฿24,375 ฿51,675 ฿110,955
Administrative Expenses 7
Total General and ฿1,022,2 ฿1,712,10 ฿2,410,91 ฿5,772,67
฿272,665
Administrative Expenses 62 4 7 1
General and Administrative
57.98% 27.35% 17.06% 12.54% 14.88%
%

Creative Expenses:

Creative Payroll ฿0 ฿75,000 ฿134,000 ฿147,400 ฿162,140

Consultants ฿0 ฿0 ฿0 ฿0 ฿0

Contract/Consultants ฿0 ฿74,750 ฿200,670 ฿384,382 ฿388,039

Total Creative Expenses ฿0 ฿149,750 ฿334,670 ฿531,782 ฿550,179

 123

Creative % 0.00% 4.01% 3.34% 2.77% 1.42%

฿2,064,2 ฿4,196,32 ฿7,064,45 ฿14,246,7

Total Operating Expenses ฿466,466
41 7 2 50

Profit Before Interest and (฿171,75 ฿1,679,79 ฿4,362,87 ฿9,210,20

฿141,884
Taxes 5) 8 3 6
(฿157,58 ฿1,753,53 ฿4,509,75 ฿9,430,22
EBITDA ฿179,054
9) 8 3 1
Interest Expense ฿10,490 ฿2,375 ฿0 ฿0 ฿0

Taxes Incurred ฿0 ฿0 ฿0 ฿0 ฿0

(฿182,24 ฿1,679,79 ฿4,362,87 ฿9,210,20

Net Profit ฿139,509
4) 8 3 6
Net Profit/Sales -38.75% 3.73% 16.74% 22.70% 23.74%
Figure-5.3c: Profit

Figure-5.4a: Gross Margin

 124

Figure-5.4b: Gross Margin

5.2 Cash Flow

Projected Cash Flow
Our cash Flow projections are shown on the following table. Cash flow after capital
expenditures and investment varies between positive and negative, depending upon our rate
of expansion and increasing accounts receivable.
 125

Figure-5.5a: Cash Flow

 126

Projected Cash Flow in monthly base

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cash
Received

Cash from
Operation
s

Cash
฿0 ฿0 ฿0 ฿0 ฿0 ฿25,185 ฿24,725 ฿39,871 ฿25,895 ฿34,312 ฿40,135 ฿57,073
Sales

Cash from
Receivabl ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿2,430 ฿72,967
es

Subtotal
Cash from
฿0 ฿0 ฿0 ฿0 ฿0 ฿25,185 ฿24,725 ฿39,871 ฿25,895 ฿34,312 ฿42,565 ฿130,041
Operation
s
 127

Additional
Cash
Received

Sales Tax,
VAT,
0.00% ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
HST/GST
Received

New
Current
฿0 ฿100,000 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Borrowin
g

New
Other
Liabilities ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
(interest-
free)

New
Long-term ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Liabilities
 128

Sales of
Other
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Current
Assets

Sales of
Long-term ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Assets

New
฿1,500,00
Investmen ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
t Received 0

Subtotal
฿1,500,00
Cash ฿0 ฿100,000 ฿0 ฿0 ฿25,185 ฿24,725 ฿39,871 ฿25,895 ฿34,312 ฿42,565 ฿130,041
Received 0

Expenditu
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
res

Expenditu
res from
 129

Operation
s

Cash
฿3,000 ฿6,750 ฿10,500 ฿13,833 ฿18,633 ฿24,499 ฿28,499 ฿28,499 ฿29,499 ฿31,332 ฿31,332 ฿31,335
Spending

Bill
฿38 ฿1,185 ฿2,413 ฿2,935 ฿5,083 ฿5,851 ฿10,778 ฿12,777 ฿23,635 ฿27,133 ฿102,573 ฿89,094
Payments

Subtotal
Spent on ฿3,038 ฿7,935 ฿12,913 ฿16,768 ฿23,716 ฿30,350 ฿39,277 ฿41,276 ฿53,134 ฿58,465 ฿133,905 ฿120,429
Operations

Additional
Cash
Spent

Sales Tax,
VAT,
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
HST/GST
Paid Out

Principal ฿12,500 ฿12,500 ฿12,500 ฿12,500 ฿12,500 ฿12,500 ฿12,500 ฿12,500 ฿12,500 ฿12,500 ฿12,500 ฿12,500
Repaymen
 130

t of
Current
Borrowin
g

Other
Liabilities
Principal ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Repaymen
t

Long-term
Liabilities ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Principal
Repayment

Purchase
Other
฿0 ฿0 ฿0 ฿0 ฿50,000 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Current
Assets

Purchase
Long-term ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿192,873 ฿0 ฿0 ฿0
Assets

Dividends ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
 131

Subtotal
Cash ฿15,538 ฿20,435 ฿25,413 ฿29,268 ฿86,216 ฿42,850 ฿51,777 ฿53,776 ฿258,507 ฿70,965 ฿146,405 ฿132,929
Spent

Net Cash ฿1,413,78 (฿232,612 (฿103,840

(฿15,538) ฿79,565 (฿25,413) (฿29,268) (฿17,665) (฿27,052) (฿13,905) (฿36,653) (฿2,889)
Flow 4 ) )

Cash ฿1,563,13 ฿1,545,46 ฿1,518,41 ฿1,504,50 ฿1,271,89 ฿1,235,24 ฿1,131,40 ฿1,128,51

฿124,462 ฿204,027 ฿178,614 ฿149,346
Balance 0 5 3 8 6 3 3 4

Figure-5.5b: Cash Flow

 132

The Cash Flow Minimum 5 years

Pro Forma Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

Cash Received

Cash from Operations

฿2,006,70
Cash Sales ฿247,196 ฿747,500 ฿4,228,202 ฿8,924,907
0
฿1,158,16 ฿4,692,17 ฿10,380,29 ฿20,022,29
Cash from Receivables ฿75,398
8 1 5 8
Subtotal Cash from ฿1,905,66 ฿6,698,87 ฿14,608,49 ฿28,947,20
฿322,594
Operations 8 1 7 5

Additional Cash Received

Sales Tax, VAT,
฿0 ฿0 ฿0 ฿0 ฿0
HST/GST Received
New Current Borrowing ฿100,000 ฿0 ฿0 ฿0 ฿0
New Other Liabilities
฿0 ฿0 ฿0 ฿0 ฿0
(interest-free)
New Long-term
฿0 ฿0 ฿0 ฿0 ฿0
Liabilities
Sales of Other Current
฿0 ฿0 ฿0 ฿0 ฿0
Assets
Sales of Long-term Assets ฿0 ฿0 ฿0 ฿0 ฿0

฿1,500,00 ฿1,200,00 ฿1,500,00

New Investment Received ฿1,500,000 ฿0
0 0 0
฿1,922,59 ฿3,105,66 ฿8,198,87 ฿16,108,49 ฿28,947,20
Subtotal Cash Received
4 8 1 7 5

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

 133

Expenditures from
Operations
฿1,495,20
Cash Spending ฿257,711 ฿947,604 ฿1,961,316 ฿2,398,314
8
฿2,571,64 ฿6,645,28 ฿12,562,46 ฿26,443,59
Bill Payments ฿283,496
6 9 8 9
Subtotal Spent on ฿3,519,25 ฿8,140,49 ฿14,523,78 ฿28,841,91
฿541,207
Operations 0 7 4 3

Additional Cash Spent

Sales Tax, VAT,
฿0 ฿0 ฿0 ฿0 ฿0
HST/GST Paid Out
Principal Repayment of
฿150,000 ฿50,000 ฿0 ฿0 ฿0
Current Borrowing
Other Liabilities Principal
฿0 ฿0 ฿0 ฿0 ฿0
Repayment
Long-term Liabilities
฿0 ฿0 ฿0 ฿0 ฿0
Principal Repayment
Purchase Other Current
฿50,000 ฿0 ฿0 ฿0 ฿0
Assets
Purchase Long-term
฿192,873 ฿242,846 ฿465,692 ฿806,384 ฿851,384
Assets
Dividends ฿0 ฿0 ฿0 ฿0 ฿0

฿3,812,09 ฿8,606,18 ฿15,330,16 ฿29,693,29

Subtotal Cash Spent ฿934,080
6 9 8 7

(฿706,428 (฿407,318
Net Cash Flow ฿988,514 ฿778,329 (฿746,092)
) )
฿1,128,51
Cash Balance ฿422,086 ฿14,769 ฿793,098 ฿47,005
4
Figure-5.5c: Cash Flow

5.3 Balance Sheet

Projected Balance Sheet The following table is our balance sheet projection through 2015
134
 135

Balance Sheet in monthly base

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Starting
Assets
Balances

Current assets

Cash ฿140,000 ฿124,462 ฿204,027 ฿178,614 ฿149,346 ฿1,563,130 ฿1,545,465 ฿1,518,413 ฿1,504,508 ฿1,271,896 ฿1,235,243 ฿1,131,403 ฿1,128,514

Accounts
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿72,913 ฿145,019 ฿147,707
Receivable

Inventory ฿44,500 ฿44,500 ฿44,500 ฿44,500 ฿44,500 ฿44,500 ฿38,204 ฿32,023 ฿22,055 ฿15,581 ฿36,309 ฿38,392 ฿43,140

Other
Current ฿0 ฿0 ฿0 ฿0 ฿0 ฿50,000 ฿50,000 ฿50,000 ฿50,000 ฿50,000 ฿50,000 ฿50,000 ฿50,000
Assets
 136

Total
Current ฿184,500 ฿168,962 ฿248,527 ฿223,114 ฿193,846 ฿1,657,630 ฿1,633,668 ฿1,600,436 ฿1,576,563 ฿1,337,477
Assets

Long-term
Assets

Long-term
฿65,000 ฿65,000 ฿65,000 ฿65,000 ฿65,000 ฿65,000 ฿65,000 ฿65,000 ฿65,000 ฿257,873 ฿257,873 ฿257,873 ฿257,873
Assets

Accumulate
d
฿0 ฿0 ฿0 ฿0 ฿1,574 ฿3,148 ฿4,722 ฿6,296 ฿7,870 ฿9,444 ฿11,018 ฿12,592 ฿14,166
Depreciatio
n

Total Long-
฿65,000 ฿65,000 ฿65,000 ฿65,000 ฿63,426 ฿61,852 ฿60,278 ฿58,704 ฿57,130 ฿248,429 ฿246,855 ฿245,281 ฿243,707
term Assets

Total
฿249,500 ฿233,962 ฿313,527 ฿288,114 ฿257,272 ฿1,719,482 ฿1,693,946 ฿1,659,140 ฿1,633,693 ฿1,585,906 ฿1,641,320 ฿1,610,094 ฿1,613,068
Assets
 137

Liabilities
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
and Capital

Current
Liabilities

Accounts
฿0 ฿1,105 ฿2,318 ฿2,766 ฿4,894 ฿5,494 ฿10,364 ฿11,990 ฿22,818 ฿23,698 ฿99,615 ฿85,791 ฿95,813
Payable

Current
฿100,000 ฿87,500 ฿175,000 ฿162,500 ฿150,000 ฿137,500 ฿125,000 ฿112,500 ฿100,000 ฿87,500 ฿75,000 ฿62,500 ฿50,000
Borrowing

Other
Current ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Liabilities

Subtotal
Current ฿100,000 ฿88,605 ฿177,318 ฿165,266 ฿154,894 ฿142,994 ฿135,364 ฿124,490 ฿122,818 ฿111,198 ฿174,615 ฿148,291 ฿145,813
Liabilities

Long-term
฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0 ฿0
Liabilities
 138

Total
฿100,000 ฿88,605 ฿177,318 ฿165,266 ฿154,894 ฿142,994 ฿135,364 ฿124,490 ฿122,818 ฿111,198 ฿174,615 ฿148,291 ฿145,813
Liabilities

Paid-in
฿320,000 ฿320,000 ฿320,000 ฿320,000 ฿320,000 ฿1,820,000 ฿1,820,000 ฿1,820,000 ฿1,820,000 ฿1,820,000 ฿1,820,000 ฿1,820,000 ฿1,820,000
Capital

Retained
(฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500) (฿170,500)
Earnings

Earnings ฿0 (฿4,143) (฿13,291) (฿26,652) (฿47,122) (฿73,012) (฿90,918) (฿114,850) (฿138,625) (฿174,792) (฿182,795) (฿187,696) (฿182,244)

Total
฿149,500 ฿145,357 ฿136,209 ฿122,848 ฿102,378 ฿1,576,488 ฿1,558,582 ฿1,534,650 ฿1,510,875 ฿1,474,708 ฿1,466,705 ฿1,461,804 ฿1,467,256
Capital

Total
Liabilities ฿249,500 ฿233,962 ฿313,527 ฿288,114 ฿257,272 ฿1,719,482 ฿1,693,946 ฿1,659,140 ฿1,633,693 ฿1,585,906 ฿1,641,320 ฿1,610,094 ฿1,613,068
and Capital

Net Worth ฿149,500 ฿145,357 ฿136,209 ฿122,848 ฿102,378 ฿1,576,488 ฿1,558,582 ฿1,534,650 ฿1,510,875 ฿1,474,708 ฿1,466,705 ฿1,461,804 ฿1,467,256
 139

Figure-5.6a: Balance Sheet

 140

5.4 Balance Sheet Minimum 5 years

Pro Forma Balance

Sheet
Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

฿1,128,51
Cash ฿422,086 ฿14,769 ฿793,098 ฿47,005
4
฿1,979,53 ฿5,314,16 ฿19,781,50
Accounts Receivable ฿147,707 ฿9,924,770
9 8 8
Inventory ฿43,140 ฿127,473 ฿341,537 ฿654,211 ฿1,320,871

Other Current Assets ฿50,000 ฿50,000 ฿50,000 ฿50,000 ฿50,000

฿1,369,36 ฿2,579,09 ฿5,720,47 ฿11,422,07 ฿21,199,38

Total Current Assets
1 8 3 9 4

Long-term Assets

Long-term Assets ฿257,873 ฿500,719 ฿966,411 ฿1,772,795 ฿2,624,179

Accumulated
฿14,166 ฿51,336 ฿125,076 ฿271,956 ฿491,971
Depreciation
Total Long-term Assets ฿243,707 ฿449,383 ฿841,335 ฿1,500,839 ฿2,132,208

฿1,613,06 ฿3,028,48 ฿6,561,80 ฿12,922,91 ฿23,331,59

Total Assets
8 1 8 8 2

Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5

Current Liabilities

Accounts Payable ฿95,813 ฿221,716 ฿575,245 ฿1,073,483 ฿2,271,951

Current Borrowing ฿50,000 ฿0 ฿0 ฿0 ฿0

 141

Other Current Liabilities ฿0 ฿0 ฿0 ฿0 ฿0

Subtotal Current
฿145,813 ฿221,716 ฿575,245 ฿1,073,483 ฿2,271,951
Liabilities

Long-term Liabilities ฿0 ฿0 ฿0 ฿0 ฿0

Total Liabilities ฿145,813 ฿221,716 ฿575,245 ฿1,073,483 ฿2,271,951

฿1,820,00 ฿3,020,00 ฿4,520,00

Paid-in Capital ฿6,020,000 ฿6,020,000
0 0 0
(฿170,500 (฿352,744 (฿213,235
Retained Earnings ฿1,466,563 ฿5,829,435
) ) )
(฿182,244 ฿1,679,79
Earnings ฿139,509 ฿4,362,873 ฿9,210,206
) 8
฿1,467,25 ฿3,028,48 ฿5,986,56 ฿11,849,43 ฿21,059,64
Total Capital
6 1 3 5 2
Total Liabilities and ฿1,613,06 ฿3,028,48 ฿6,561,80 ฿12,922,91 ฿23,331,59
Capital 8 1 8 8 2

฿1,467,25 ฿2,806,76 ฿5,986,56 ฿11,849,43 ฿21,059,64

Net Worth
6 5 3 5 2

Figure-5.6b: Balance Sheet

 142

Chapter 6
Risk Management

Obstacles to industry growth

Advise:

So , we can solve this problem with the risk strategy which is accept because even sale
decrease 10 % we still able keep gaining enough the revenue to the investors.

Sensitive analysis (Sensitivity Analysis).

As the product of a new product. Not yet known consumer players. So to prepare.
Plan supports the uncertainty of sales. The company has made. Financial estimates and
financial analysis. If sales is not as anticipated as follows.

If sales volume increased 10% from original estimates.

Since the original estimates. The company also manufactures products to meet the needs of
consumers buy.
May increase. The current health care products from nature, so even though volume.
Sales will increase. The company also can produce to meet demand has increased. By
financial estimates.
Payments and estimates by the ratio of financial sector integration.

Therefore, if sales volume increased 10% from the previous estimate of value will be
increased to MVA. 4,156,635 Baht.

If sales volume decreased 10% from the original estimate.

The Company's products due to a new product. And economic conditions. And needs.
Alltel who consume it is Knoxville uncertainty factors so as to provide support in case of
lower sales.
 143

The Company has estimated the fiscal estimates. Estimates and financial ratios.
If the balance. Sales decreased 10% from previous estimates.
Therefore, if sales volume decreased 10% from the previous estimate the company is valued
at MVA. Level of 683,378 baht, which also show that this project can add value to investors.

Case 1 If the forecasts sales of more than 10% (Best Case)

Marketing.
1. Products add a new option for consumers. The new product line out (New Product Line).
Earlier than planned to grasp. Screen on the set. To increase market opportunities. References
education trend.
To market the criteria. Add a variety of packaging sizes, especially large increased.
2. Prices maintain the same price.
3. Channel organized extending channel memory sick sick mind by considering the type
channels sick note to extend the analysis of data from actual sales occurred, and growth
prospects of each channel.
Finance.
1. Planning and financial management to meet the increasing volume of orders. And sales
increased.
2. Captioned raise cash. Vice to meet the increasing volume of orders.
Manufacturing.
1. Track order to increase production and supply of resources available to learn sick in each
box medical sick note closely. Not to lose market opportunities.
2. Plan negotiated discounts have increased. To reduce costs.

Case 2 where sales less than expected 10% (Worst Case).

Marketing.
1. Analyze and compare the competitive situation, market strengths. Vulnerability to both
direct and competitive otherwise primarily made for. Sales are not expected to and do
adjustments to marketing strategies needs and target markets.
2. Analytics products that meet market needs or not. And adjust the product line needs most.
 144

3. Channel memory consistent with the behavior and sick that can spread and reach the target
or not much.
4. Promotion of new forms. Consistent with the way black. Ongoing life and passion of the
group target.
Finance.
1. Recovery from short-term limit. SMEs and business support industry projects to bring
change short-term liquidity problems.
2. Policy rebates on trade receivables to accelerate cash flow to the company.
3. Extend time to pay the salaries of executives away manufacturing delay or reduce orders in
early to reduce the burden on inventory.

Measures to accelerate the drive to promote herbal products are as follows: Although
today's market herbal products is extensive and growing domestic market and overseas
markets, but there are many problems that impede or limit the growth of herbal products. If
both publicand private sector collaboration that drive various measures to eliminate obstacles
that are expected to be bright future of herbal products than they do today

1. Measures in production

Guidelines for developing herbal products in the future must focus on promoting
commercial herb production. Development of the herbal approach is divided into 2 groups is
promoting the planting of herbs to use in household consumption and growing herbs
commercially to enter the processing plant. Herbal processing plants, which are divided into
2 types based herbal products as raw materials such as food, cosmetics, beverages, etc. and
manufacturing of herbal medicine in the production of medicinal plants for herbal medicine
to enter a rigorous quality control. How grow better Substance or substances have an
important ingredient in the desired quantities, managed care from the best harvest, clean
storage, no contamination, particularly contamination by fungi. The farmers to grow herbs
commercially must start education in quality control resources to be purchased and purchase
price. Currently growing herbs commercially must also depend on intermediaries to collect to
send to processing plant herbs. Since plants will not be buying from local people in kind of
direct buying. The herbs will help establish a cooperative problem solving in this section
significantly and encouraging farmers turned to growing herbs commercially more. The
development and production control both quality and quantity of herbs.
 145

2. Measures the domestic market

Currently the government is encouraging farmers or farmers’ group together with

district group in order to manufacture herbal products based on local raw materials available.
This business is a business of herbal products can help enhance the income of farmers in
times of agricultural problems very well. Since prices of agricultural products most likely
decreased continuously since 1999 income of farmers by occupation agriculture decreased.
And even in times of economic or in the normal economic prosperity by then herbal products
business will generate more revenue for farmers is very considerable create stability for
farmers and households as a nation quite well. In addition, herbal products business help
build employment in rural areas. Which is equal to assist workers from industry and services
back into rural areas because of reductions in labor and unlock the economic crisis.

Obstacles in the operations and risks

1. Operational risk from counterfeit products caused by the herbal products business from the
current number of increasing. And differences in the appearance of the product have not yet
seen much clear. The company has tried to prevent by differentiating the brand to
differentiate the brand, loyalty, and trust in the quality of the brand, which replicate more
difficult and has patented and patent protection for risks that may arise in the future.

2. Risk of dependence on outside manufacturers for the supply, which has no own production
facilities. The manufacturers relies only potential risk if the manufacturer failed to produce or

facility problems. The company has used several manufacturers to reduce risks in operations.
And increase its bargaining power.

Regulatory measures and exchange of mobility products neighboring countries Mekong Sub-
region in the valley is not at the same standard.

3. Investors, tourists, especially from the GMS countries, China, travel in and out of Thailand
(Via Chiang Rai) to ask Visa from China as a federal trade and investment barriers travel to
Thailand without legal 3.Security problems along the border policy and situation neighbors
are not sure changes frequently.
 146

Chapter 7

Summary

7.1 Executive Summary

One Herb Cosmetics is a factory that has created a brand concept consisting of both
skin care and cleansing cream multiple channels of distribution. We are seeking recurring
investment to fund the growth of the brand. The plan that follows explains our market, our
value proposition and our market segmentation strategy. The detailed financial plans provide
a clear view of our sales and profit forecasts. These plans show how One Herb Cosmetics
will reach profitability in our third year of operation and generate shareholder return on
equity within five years.

The cosmetic industry is expected to continue to expand, thanks to a reduction in

import tariffs from 5 percent to 0 percent for raw material and finished goods of cosmetics
before the year 2005, according to AFTA agreement. Furthermore, Japan recently lifted their
import restrictions in line with World Trade Organization (WTO) regulations, thus causing a
number of Japanese manufacturers to relocate their production base to Thailand, taking
advantage of the lower cost of production. Therefore, Thai manufacturers have the potential
to produce more standardized products (GMP: Good Manufacturing Practices). For instance,
Kanebo of Japan has partnered with Thai Sin Company (60/40) with more than 400 million
Baht registered capital to produce cosmetics to serve both local and international consumers.
 147

It is expected that the cosmetics industry will enjoy a 20-25 percent growth rate over
the next few years. The economic slowdown in Japan in recent years may cause an increase
in the number of companies relocating their production base to Thailand. Thailand is also a
popular place for herb and aromatic products. EU countries also perceive Thailand as a
suitable location for cosmetic production due to low wages of workers, especially compared
to Singapore.
 148

Preferences

- http://www.niir.org/books/catalogue_pdf/43/%5BNIIR%5D_Books Cosmetics
%20and%20Beauty%20Products%20(Ayurvedic,%20Herbal.pdf

- http://www.encyclopedia.com/doc/1G1-140015820.html

- http://www.bestindiansites.com/herbal-cosmetics/