Amarel Cosmetics Amarel IC Amarel Labels Amarel Packaging Amarel Containers


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Executive Summary

Amarel Labs Pty (ltd) was started with the intention of closing and purchasing Amarel Laboratories close corporation and to create a stronger company geared up for listing in the stock exchange within the next five years.
The business is categorised into five divisions which are:

Plastic injection mould and blowmoulding

This part of the business is responsible for the manufacture of plastic containers that are used by the divisions in packaging of finished products namely haircare, skincare and industrial chemicals.

Printing and Labelling

This is the division that does screen printing, container printing and label printing for the various brands the company owns.

The core business of the company is to manufacture haircare products. The company owns two well known brands namely Amarel E and Just Hair which are registered trademarks.

The company launched its skincare range in 2000 and has gained a fair share of the market. The following are trademarks the company owns: Babytots, Katie Ann, Just Silk and Amarel E Skincare.

Industrial Cleaners

The company manufacturers various industrial chemicals under the trademark Just Clean which are sold through various customers who supply the government tenders.

In order for the company to reach its target of listing on the stock exchange it needs to crate a good financial stability and maintain a good cash flow status.

General Company Description

Amarel Labs core business is manufacturing cosmetics for the African market.

Mission Statement
“To create a formidable multinational house of cosmetics which puts South Africa in the forefront of style and image”.

Company Goals and Objectives
Goals are destinations – We hope to list in the stock exchange in five years. To be a leader in quality, affordability and customer service in the industry. To have created an image with customers that when they see any Amarel brand it is a sign of quality. To increase the company’s sales by at least 30% a year.

Philosophy: To maintain sound business integrity in all we deal with whether it be customer or supplier, creditor or debtor.

Brief description of the cosmetics industry
The cosmetic industry is the fastest growing industry in South Africa due to the fact that South Africa is more for the mass’s that wants to keep up with the worlds fashion in style and image.
Amarel has grass root connection with rural business men and women who provide a service to of style to people who live in rural areas. This is definitely a core strength for tapping into communities who are not serviced by our competitors. Our rural friends have a great sense of loyalty to the product because of our commitment to them.

Brief description of main director
I Mr ersayvanan Padayachee have worked in the industry for ten years namely for a company call Labnor Pty Ltd. Labnors core business was to contact manufacture for hugh multinationals like: Permark, Proctor, Gamble and Carson products, Loreal, Ladine, Bristol, Meyers and Quibb and many more. My job was to help to reformulate the formulas for South African weather conditions.

Marketing Plan

Brief marketing history
Amarel started selling the Amarel E brand in February 1997, we followed a very aggressive marketing strategy that has defined the way we have done business. The then directors of Amarel Labs decided that the product we created in the laboratories was of high quality and we decided to put it to the test. We took out entire working capital and invested it in 1000 5L buckets of relaxer (hair straighter) and offered to the salon customers the following challenge: “try the relaxer and if you feel it is of inferior quality you don’t need to pay for it”
Well after a month every customer paid for the relaxer and purchased more and demanded  that we manufacture the entire range of ethnic hair products. We still maintain the money back guarantee on all five divisions of Amarel.

Marketing Material
Amarel has invested in various models and posters to uplift its image. We have negotiated with our distributors to start marketing the entire South Africa and invest in a budget of R1 500 000.00 for this current year.


Facts about the cosmetic industry

Cosmetic exports given boost

By Neesa Moodley

Since South African cosmetic companies conformed to international standards of ingredient labeling in February last year the value of cosmetic exports has exceeded $170 million (R986 million)

Carmen Botef, the executive director of the SA Cosmetic Export Council, said this was an approximate figure but the industry had definitely seen growth.

Botef said Africa absorbed most of the exports although South Africa was driving a strong market in the US and the EU, boosted by the free trade agreement with the EU.

“With the strong rand, most industries have had a flat or declining growth rate. But South Africa’s cosmetic industry is so vibrant that we have seen local growth of 14.5% in 2004.”

Botef said it was important for companies targeting international markets to meet the compulsory ingredient labeling requirements.

“The South African market is worth about $2.25 billion. However, there are a large number of small companies exporting products and South African cosmetic companies are keen to make inroads in the North American market, which is worth more than $46 billion.”

Botef said the government would be taking a delegation of about 14 companies to New York next month. Some of the delegates would visit Canada, at the expense of the Canadian government, to market their products.

Maureen McKenzie, the marketing manager of Environ, which has an annual turnover of R80 million and which was named Exporter of the Year last year, said 50% of its business was exported.

“However, we have always conformed to international standards as for as ingredient labeling goes, since Environ knew from inception that it would be targeting export markets.” She said

Nikki de Kok, the marketing manager of Permark International, which houses 16 local brands including Gallia, Like Silk and Tropitone, said ingredient labeling had put South Africa in line with global trends.

Jill Gardiner of the cosmetics, Toiletry and Fragrance Association said the move was important for customers who experienced allergic reaction. With the ingredient labeling dermatologists would be able to identify what caused a reaction and the consumer would be better informed.

Published on the web by Business report on March 14, 2005.

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