Daisy LLC

Daisy LLC Business Proposal

Kailea Iskra March 17, 2009

Daisy LLC Mission Statement and Product Description

Today, young women are experimenting with makeup and often don’t understand how harmful some of them may be. Daisy Cosmetics offers all organic, natural skin care and makeup for young girls. Daisy Cosmetics provides that beauty that young women today are seeking. At Daisy, we use all organic ingredients hand picked from all over the world to ensure its customers are receiving a quality product at a reasonable price. Ingredients may include but are not limited to 34 essential vitamins and minerals, chamomile, cinnamon, fruit extracts, green tea, lavender, lemongrass, aloe vera and many more. Daisy guarantees a flawless lightweight coverage without breakouts. Daisy Cosmetics essentially holds the properties that other cosmetic companies do not have: Beauty without the Baggage.

Daisy LLC Target Market

Demographics Daisy Cosmetics has two target markets. Its primary market is the young teenage girl between the ages of 13 to 18. She lives in a suburban area in and around a major metropolitan city like New York or Los Angeles. She attends a public or private school, that of her parent’s choice, and is a trend setter for her peers. Her and her family falls within the category of middle to upper middle class. Its secondary target market is the young teenage girl’s parents, primarily her mother. She is a middle aged woman in her mid 30s and resides in a gorgeous home outside of a metropolitan city. She has a Master’s Degree in Marketing and purses small business endeavors on her own time. Psychographics Daisy’s primary clientele enjoy their time hanging out with their friends at the beach, the mall and any other social place. She is heavily involved with her studies and strives to please her parents. She is very outgoing, sweet and optimistic about the things she does with her life and the things that she has to look forward to, to her in her future endeavors. She plans on attending college and works towards that every day. She is on the honor roll, is involved in extra curricular activities in school like cheerleading, tennis, student council and is a member on the debate team. She is always looking for new and exciting things for her wardrobe and to entice her parents with. She is constantly rewarded for her hard efforts in her school work and at home. She consistently tends to the house work with her mom and taking care of her younger siblings. She is very conscious of the way she looks and will often persuade to purchase the top of the line skin care, cosmetics and other merchandise of choice. Daisy’s secondary clientele is the mom. She is heavily involved in her daughter’s education and constantly pushes her to do her very best. She is always seeking the best for her children’s well being, whether it is food, clothing or other products of need. She is a member of the PTA organization at her daughter’s school and always attends her cheerleading and tennis games. She is a thoughtful individual but very stern about what is expected from her children. She will often buy her children the things that they want but only on good behaviors or hard work earned.

Daisy LLC Positioning

Daisy LLC is run and operated under the control of its founder Kailea Iskra and with future expansion will be divided into several different departments specified by category. The specific departments will be run in house and are as follows, Marketing and Public Relations, Operations, Technical Support and Financials. In the expansion process, Daisy LLC will use prestige positioning when launching their company from the ground up. Daisy LLC already has a functioning website where products can be purchased with minimal shipping costs. Now that Daisy LLC is ready to expand, it will be operating as a specialty store independent and will be opening a store front location with all products available for purchase from the ground level. Daisy LLC wants to continue its expansion by offering its products in high end department stores such as Neiman Marcus, Bloomingdales, Macy’s, Nordstrom and Lord and Taylor.

Daisy LLC Branding

Logo

Daisy LLC Pricing and Manufacturers

Essential Wholesale 8850 SE Herbert Ct.

Clackamas, OR 97015 P: (503) 722-7557 F: (503) 296-5631

Essential Wholesale is a cosmetics manufacturer that provides all services from product formulation, packaging, and graphic design work. Essential Wholesale will be used in the production and packaging of the Organic Skin Care line that Daisy LLC will be offering. High quality certified organic ingredients will serve as the raw materials in all of Daisy LLC skin care products. Specific plant and flower based ingredients will be chosen by Daisy LLC and will be additional additives and costs for Daisy LLC to Essential Wholesale. Essential Wholesale will also provide packaging assistance to Daisy LLC. Daisy LLC will provide and source product packaging as well.

Audrey Morris Private Label 1501 Green Road, Suite "J"

Pompano Beach, Florida, 33064, USA TEL: 1-954 – 332 - 2000

1-800 – 826 - 8287 FAX: 1-954 – 332 - 2001

Email: [email protected]

Audrey Morris Private Label is a cosmetics manufacturer that provides services for formulating cosmetic products such as eye wear, face crèmes and powders, and lip wear. Audrey Morris Private Label Inc will be used for the formulation and packaging of Daisy LLC’s initial and future cosmetic lines.

Daisy LLC Manufacturer Pricing

Essential Wholesale

The total estimated cost for Daisy LLC can only be determined once have all the details like the

product(s) chosen plus packaging, quantity, labeling requirements, and finishing details. Customized ingredients will result in additional costs. The price chart is below.

Formulation & Development Minimums:

Item Minimum Fees

Product Customizing - Adding ingredients* to current stock product base

5 - 40 Gallons** 500 pcs

$50 set up fee plus the cost of ingredients and cost of a pre-production sample.***

Reformulate a current stock product base 40 Gallons* 500 pcs

$750 to $1500 development fee***** depending on requirements, plus cost of any non-

stock ingredients. Includes 5 hours of lab/research time only. Additional hours are $170 per hour.

New Product Development 40 Gallons* 500 pcs

$2500 development fee***** depending on requirements, plus cost of any non-

stock ingredients. Includes 5 hours of lab/research time only. Additional hours are $170 per hour.

Custom Perfume/Cologne Custom EO Blends

32 fl oz 100 pcs

$2500+ per Perfume/Cologne $475 per EO Blend + 1 hour lab time

($1150 to own the EO Formula) Manufacturing Service

(Using your formula/methodology) 40 Gallons 500 Units

$170 per lab hour and $75 for a pre-production samples plus the cost of any ingredients.

Customizing Options:

• These are ingredients that can be added to our stock bases without being considered a custom formulation. • We require that customers who choose to order one of our customizing options, order a preproduction sample. • Customer can request a 1 oz pre-production sample when choosing options of scenting and extracts. The cost is $20 - $50 each + lab hours + shipping. • 1 ounce lab samples are not always a true representation of the final product from manufacturing due to scale up. • For more accurate representations, a 4 - 8 oz sample is available for $95 + lab time + shipping. * For color, pre-production samples are required. The cost is a 1/2 gallon of that product + lab hours + shipping. Due to natural variations in natural cosmetics, colors are not exact from batch to batch.

Preservative: • That cost for a preservative preproduction sample is the cost of 1/2 gallon of that product + lab hours + shipping. Micro test may also be required ($150/product)

Information Obtained: Essential Wholesale http://www.essentialwholesale.com/Cosmetic_Private_Labeling_Contract_Packaging_s/127.html

Daisy LLC Manufacturing Pricing

Audrey Morris Private Label Cosmetics International, Inc.

Processing time 3-5 business days - excluding orders to be printed. Please allow additional time for shipping. Minimum Order $200.00 ($35.00 service charge will be automatically added if under minimum). Minimum of 3 pieces per shade / per product - excluding specified kits or

compacts (6 minimum).New Account: First time order must be prepaid in full by credit card or cashiers check. All print orders must be prepaid in full. International orders: Must be prepaid by credit card with written authorization, prior to processing. Orders may be accepted via telephone,

fax, e-mail or mail. Payment may be made with Visa, MasterCard or American Express with written authorization from the client, form will be sent.

All credit card orders over $300.00 must be charged before processing

State of Florida clients: Must supply copy of signed sales tax certificate (DR13)

Audrey Morris Cosmetics & Skin Care is not responsible for UPS delivery schedules or times of delivery. Someone must be present to receive the package. If a package is returned, the customer

will incur additional shipping charges

All shortages and breakage in shipping must be reported within 48 hours.

Shipment refusals - 25% handling fee will be charged, plus shipping

No returns without written authorization. Prices subject to change without notice. Audrey Morris Cosmetics & Skin Care assumes no responsibility for the product if it has been repackaged and

will not be covered by our liability insurance. Back orders: Occasionally an item may be temporarily out-of-stock at the time you order. Please be aware that we DO NOT back-order.

Your invoice will flag any items that were not shipped. Please re-order these items on your next $200.00 minimum order. You are not charged for any items not shipped. There is a $75.00 charge for returned checks. Customer warrants that he/she will comply with all labeling requirements of

the Federal and State Laws pertaining to The Food, Drug and Cosmetics “Act”. Price break indicates same product shade and package style. Rush Service: For a service fee of $100.00 to

ship within a 24 hour time frame if order is placed before 12pm EST (exceptions may apply).Title and ownership of products remain the property of Audrey Morris Cosmetics & Skin Care until

payment is made in full. Printing orders: Lead time is 2 to 4 weeks. Marketing sheets are available on all products upon request. Sample packages available for a nominal fee (please speak

to your sales representative for info).

All information obtained Audrey Morris Private Label Cosmetics International, Inc.

http://www.audreymorriscosmetics.com/private_label_cosmetics/agoracart55/agora.cgi?cartlink=Company_Policies.htm&cart_id=3798808.13234

Daisy LLC Labor and Materials

All labor and materials will be obtained through the manufacturing companies at their expense. The development and packaging of the products will be incurred under the specific manufacturing companies and Daisy LLC will hold no withholdings to any fees of such. Services provided to Daisy LLC will be subject to payment under the supplier’s intent and will hold Daisy LLC solely responsible of such payment within a given time period negotiated between Daisy LLC and selected manufacturer.

Daisy LLC Opening and Construction Projections

Daisy LLC will consider all expenses incurred and will mark-up products at a minimum of forty percent at retail. Specific products may receive certain discounts and incentives depending on the time of exposure to the market and current sales. Daisy LLC is not a commission based company. It is held solely to the owner and at his or her expense. Employees of the company, depending on experience and availability will receive set wages hereby set by the owner and small incentives for employees for reaching company goals. Below is a list of expenses that will be incurred the first year of business.

Opening Costs

Office Price Quantity Total

EXPEDIT Storage Desk $69.99 1 $69.99

SIXTEN Chairs for Guests $49.99 2 $99.98

EXPEDIT Drawer Unit $59.99 1 $59.99

Skruvsta Swivel Chair $139 1 $139

High Pressure Laminate Shelving $19.99 2 $39.98

Employee Lounge

MELLA Dining table $69.99 1 $69.99

HERMAN Chairs $14.99 4 $59.96

Stock Room

IKEA Raw Wood Shelving 30 10 $300

Gift Registry

Ribbons $10.90 4 $43.60

Bags

Small(8.5''x11") at 500 ct $47.70 4 $190.80

Large(12"x11") at 500 ct $79.90 4 $319.60

Boxes

11.5"x8.5" $38.75 2 $77.50

15"x9.5" $43.15 2 $86.30

19"x12" $46.80 2 $93.60

White Tissue Paper(960 sheets) $19.90 3 $59.70

Selling Floor

T-Stands $198.35 2 $396.70

Four Ways $68.00 2 $136.00

Round Racks $63.95 2 $127.90

Hand Rail $85.99 3 $257.97

High Pressure Laminate Shelving $19.99 5 $99.95

Garment Rods $7.25 4 $29.00

Garment Rod Hardware $1.95 8 $15.60

Guest French Boudoir Chairs $135 2 $270

Wooden Coat Hangers(100) $114.00 4 $456

Wooden Pant/Skirt Hangers(100) $142.00 4 $568.00

Jiffy Steamer $205.00 1 $205.00

Cash Wrap $9,000 1 $9,000.00

Mannequin Bust Forms $60 2 $120.00

Vintage French End Table $25 1 $25.00

French 19th Century Table $550.00 1 $550.00

Faintain Painting $150.00 1 $150.00

Rose Painting $285.00 1 $285.00

Rose Bouquet Painting $220.00 1 $220.00

Dressing Rooms

Silk Pleated Drapes $150.00 3 $450.00

Simply Shaggy Chic Vanity Stools $29.99 3 $89.97

Hovet Mirrors $100.00 3 $300.00

Hooks $20.00 3 $60.00

Miscellaneous

Clorox Bleach Cleaner $6.20 2 $12.40

Glass Cleaner $4.71 2 $9.42

Paper Towels in Bulk $30.00 1 $30.00

Swiffer Sweeper $31.51 2 $63.02

Swiffer Sweeper Cloths $7.99 3 $23.97

Anti-bacterial Hand Wash $4.50 3 $13.50

Sub-Total Costs $15,674.39

Daisy LLC Construction Costs

Construction Costs    Paint Price Quantity Total

Behr Premium Plus Venetian Plaster: Corsican $21.95 4 $87.80

Behr Venetian Plaster Top Coat $25.95 4 $103.80

Behr Sealer $25.95 4 $103.80

Behr Premium Plus: Rose Silk $21.95 2 $43.90

Behr Premium Plus: Spring Song $21.95 2 $43.90

Lighting

Hampton Bay 44'' Track Rubbed Bronze Finish $79.00 33 $2,607.00

Halo 6" Coilex Baffle Trim Recessed $189.99 10 $1,899.90

Fluorescent Lighting $41.83 4 $167.32

Flooring

3" Turlington American Exotic Maple Cherry Wood $123 33 $4,059.00

Design Zone Carpet Panels $149.89 3 $449.67

American Olean 4x4 Radius Tiling $0.88 350 $308.00

Security System

Dell and Avermedia Complete Security System $2,532 1 $2,532.00

Retail Security Package $1,999.95 1 $1,999.95

Sub-Total Costs $14,406.04

Daisy LLC Income Statement

Income Statement Daisy

Year ended 1/31/10

Revenue Sales 275040 Cost of Goods Sold 137520 Gross Profit 137520 Expenses Operating Expenses Rent 52320 Payroll Expense 12054 Inventory 0 Repair/Maintenance 1800 Office Supplies 3500 Travel Expense 3300 Advertising 5504 Bank Charges 8244 Insurance 1500 Security 832 Accounting & Legal 3200 Taxes & Licenses 925 Telephone 1790 Utilities 8450 Interest & Principles 24115 Furniture/Equip/Racks 20050 Sign 2500 Grand Opening 1500 Owners Draw 12000 Total Operating Expenses 163584 Total Operating Expenses 163584 Income Before Taxes -26064 Income Tax 0 Net Income/Net Loss -26064

Daisy LLC Distribution Channels and Retailing

Daisy Inc, as stated earlier, will do direct sales to retailers with branded items with an “in house” staff, which include such companies as Neiman Marcus and Nordstrom. Daisy Inc will also be using direct sales to consumers through the use of television through infomercials and website. Daisy Inc will be attending the following trade shows: 1. Natural Products Expo West- 2009 When: March 3 2009 Location: Anaheim Convention Center, Anaheim, CA 2. 7th Annual Society of Dermatology SkinCare Specialists Meeting When: March 9 2009 Location: Marines’ Memorial Club and Hotel 609 Sutter St, CA 3. 18th Annual Society of Permanent Cosmetic Professionals Convention & Trade Show When: March 14 2009 Location: Renaissance Las Vegas, Las Vegas, NV Daisy Inc will also be using website, sales representatives and television advertisements.

Daisy LLC Integrated Marketing: Online Strategy

Company Website Related Company Websites Social Site: MySpace It is important to create an online experience for the consumer, to have it available 24/7. This will increase the amount of traffic that would otherwise not be able to be at the store during closing hours. It is important to advertise on even competitor websites to further expand the market in which you are trying to reach. You are likely going to reach a market that is similar to your target market. MySpace is a great way to reach a young target market. MySpace provides global coverage and is destined to be a successful tool.

Company Website

Related Company Websites

Being a Girl

www.beinggirl.com

GURL

www.gurl.com Jamie Elden VP interactive & Print 212-329-8490 [email protected]

Social Site Myspace

MySpace advertises mainly on the front page of the main website. Here, there are latest TV commercials, pop culture and other music news. This could be a possible avenue for Daisy Cosmetics to make an appearance. We can also work with MySpace by also offering a percentage of the earnings from the website to the company for great visibility on the site. Ads that Fit Any Budget You control how much to spend by setting a budget limit. You only pay when someone clicks your advertisement up to the budget limit. The budget and pay per click amounts can be changed at anytime. Pay only when a user actually clicks your ad (prices start at 25 cents per click) No other fees — just pay per click No long-term contracts

Daisy LLC Integrated Marketing: Offline Strategy

Daisy LLC will be promoting through the use of print advertisement, a press kit, QVC spots, and will launch the product through these sources with high customer focus. Daisy plans to saturate the market this upcoming year.

Daisy LLC Our Responsibility at Daisy Cosmetics

Daisy Cosmetics offers that natural coverage that many young girls are after. They’re skin is young and beautiful and they want it to stay like that. Makeup is made to enhance our natural features, not hide them away. With Daisy’s skin care, they can take the right steps into preserving their youth at a young age with our all natural ingredients. What young girl doesn’t want to feel beautiful in her own skin? Beauty without the Baggage- Just Daisy.