Cottons buds is the popular product in the hygiene industry, though it is not necessary and basic need item but it is included in our day to day activities. Due to their simple design and light weight they have many benefits. This cotton bud business is easy to set up with low expedition cost and manufacturing also.As this business has less start up risk is profitable to start this cotton bud business.
Cotton swabs mainly referred as in western countries, is basically consist of two end long stick usually of plastic or wood, which has cotton swab around both the ends. They have used in variety of places like self-cleaning, medical treatments, first aids, art and crafts, cosmetic applications, beauty treatments etc.
2. CASE STUDY
JOHNSONS & JOHNSON:
J&J is the big brand in the field of providing all hygienic medical product, since 1886. They have almost 250 and more subsidiary companies with 60 +countries and selling product more than 175 countries. They have best known for their baby caring, beauty and bandages products. They have their market at such big level due to only their product quality they maintained with the marketing and sales strategy they applied.
HICKS THERMOPMETERS INDIA LTD:
Hicks are totally swadeshi brand.Famous for their medical equipment and the hygiene products. They all guaranteed their product, the raw material they used and the warranty of product results they supplied. Also, they make sure the customer services properly and with full satisfaction.
3. BUSINESS SWOT ANALYSIS
- # Highly required product.
- # Special education criteria bot essential.
- # Online sales can be done.
- # Raw material is abundantly available.
- # No customising product concept applied.
- # Cotton is costly.
- # Supplied to retail store, retailers’ market, wholesalers.
- # Partnership with the sale distribution chainers.
- # Highly competitive business.
- # Need strong customer relations or supplier relations for the large sales.
4. MARKETING STRATEGY
- # Online: The online marketing is the best tool for any business to develop and initial businesses can be succeeding due to online resources fast. By creation of own website or blog and then creating awareness about the launch of the product can be good marketing. Also branding or collaborating with other firms makes the business to achieve the promotions and profit too.
- # B2B websites: These are the best platforms for the new comers as there are no market entry barriers and also direct sale can be done here. These are the popular sites like Alibaba, India-mart, Trade-India, Exports-India. The speciality about them are the profit earning are in higher amount as the demand for the product is in bulk.
- # B2C websites: Apart from the B2B website, selliing is also the better option. For these registering free on websites like Amazon, flip kart, Snapdeal is profitable.
5. OPERATIONAL PLAN
Types of machines available for the production of cotton buds:
- # Automatic cotton bud manufacturing machine:
This machine has the drying technology that it helps in dry absorbing coating layer with the PLC processor. Then the vacuum manipulator doesthe feeding of the cotton layer by wrapping around the absorbent material.
The next part is packaging, it automatically prepares the packaging of the bud. There no need of separately buying another.
- # Spindle fabrication machine:
These machines are dependent on the spindle and the material used for the spindling. The wooden spindle shape by using lathe machine, paper spindle by die cutting machine and rolled paper machine. In this machine plastic is melt through die and then send to hopper machine to stick it to cotton ands wrapped around it.
They needed the separate packaging machine for the packaging of the cotton buds.
6. SUPPLY CHAIN MANAGEMENT
The following are the basic steps of the supply chain management:
- # Plan: The firm needed detailed planning about the services they are going to offered, like raw material from where they get or would they producing by itself or exporting it, producers or the manufacturers needed for their product, market they are going to serve any many more factors. The location of the place must be near by cotton market as easy for the export of material.
- # Source: The source is the factor by which that help they are producing finished goods. That is plastic or wooden sticks are the finishing products to which cotton buds are embellished on them by producing. For this purpose, they need good suppliers of plastic and cotton. Or they can produce or agri the cotton by farming in their own land or become supplier also.
- # Manufacture: There are certain rules and standards for producing or manufacturing any product. So, the finished product must be marked by that rules and regulations. also, company must not generate waste to any local place or ground or river after production. The finished good must be matched with company’s standards that testing time.
- # Deliver: The delivering of product at proper market and getting it distributed at the suitable environment where can maximum is challenging task. So this process need understanding of market and customers demand, so hiring marketing and sales expert for this suitable. There must not be mismatched with the demand and supply of goods, the goods must b exact as per the demand.
- # Return: The products that fails to stand the expectations of customers or the damaged/faulty pieces are sent back to factory. They are exchanged with the good products and thus the cycle is repeated of supply chain.
7. FINANCIAL EXPENSES
- # Location/manufacturing plant
- # Cotton bud manufacturing setup
- # Spindle
- # Raw material (plastic/wood, cotton)
- # Adhesive /pressing tools
- # Labours
- # Electricity supply
- # Packaging equipment and material
- # Transportation facility