NEW HAIR PRODUCT Essay Example | Topics and Well Written Essays - 1000 words

NEW HAIR PRODUCT - Essay ExampleMarketing scheme. Initially ARG Hairs Group valued Hair Softe to be carried by supermarkets in UK and Ireland. ARG Hairs Group also plans to open a caller website wherein future customers can order the product on line. A separate study on the marketing strategy is being prepared to initialize the campaign.Production capability. Hair Softe Shampoo is a commodity item that is salable for both men and women, and a target of 24,000 ml units of shampoo monthly could easily be change in the UK market. It has a end product capacity of 1,000 ml. units per day, but has the capability to improver future production.Investment plan. An enthronement of $150,000 and equity capital of ARG Hairs Group are needed to launch the product in the market. Owners capital is $65,000.00 small-arm investors will have to provide $150,000 in form of stock equity.1. The return on the equity of the proprietor is 9% on the first year of operation. The 9% return on investment is higher than the rule bank rate of interest in UK which is 0.5%. UK interest rate is expected to remain at the modern level because of the governments monetary policy. (Bank of England, 2011) Monetary Policy Decisions. (http//www.bankofengland.co.uk/)2. The notes flow didactics of the company prepared for a 12 month operation shows that for the first three months there is a dearth of cash inflow to sustain all the expenses of the company and there is a need for an outside financial backing for its day to day operations because of capital expenses during these months. Thereafter, after March, company will have available cash to pay for its loan obligations, taxes and interest and to pay for equity. The cash flow has been prepared based on the 1,000 ml. units of production per day and operations of 24 days in a month. Sales are expected to increase by 5% a month, and profit is also anticipated along the operations.The cash flow statement present all the cash expected to be