The Feasibility of a Luxury Cosmetics Company

Open Access
Author:
Scully, Aubrie A
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Brian Spangler Davis, Thesis Supervisor
  • Brian Spangler Davis, Honors Advisor
  • Lisa Elizabeth Bolton, Faculty Reader
Keywords:
  • cosmetics
  • luxury market
  • business plan
Abstract:
The cosmetic industry is a trend driven, mature market that has a few large players and many small players. This thesis considers the expected profitability of a luxury cosmetics company using organic, clean ingredients with high-fashion marketing. Aubrie Ann Cosmetics is the proposed luxury cosmetics company and will use modern-day marketing through social media and influencers to promote the company, as well as emphasize clean beauty: a trend that is taking currently over the market. This thesis will layout the complete business proposal of Aubrie Ann Cosmetics. The luxury cosmetics industry is thought to be one of the most profitable businesses when looking at the cost to make versus the price of goods sold. This thesis will examine the industry, market and customer base to develop a plan that will deem more profitable. The business concept, product description as well as the marketing plan for Aubrie Ann Cosmetics will be laid out to help envision the company. This thesis will use scenario analysis to help build out the income statement as well as the NPV and breakeven analysis. After going through the financials, the feasibility of a luxury cosmetics company, with the use of modern-day marketing, is clear.