The Business Case:

A Mexican entrepreneurial woman (Carly) has decided to launch her own brand of handmade artisanal soaps. She has planned a company launch in two phases: Phase 1 is to launch during Mexicos Mother's Day (May 10) using a reduced distribution network and Phase 2 (once Mother's Day campaign is finished) is to expand the market as much as possible.

Guidelines:

• Mainly digital sales and referrals. Local stores not preferred.
• Limited money: Carly has a restricted budget for her startup: MXN $75.000.
• Carly wants her company to have:
  • Registered Brand (to avoid copycats).
  • Clear accountant processes.
  • Outsourced Delivery (she does not want to use her car).
  • A sustainable company.
  • Currently everything is done manually (but its not the expectation).

Product Information:

Handmade soaps with natural ingredients and premium ingredients.

Available Aromas: 12 SKU's

• Pack Floral (4 soaps)
• Pack Citric (4 soaps)
• Varied Pack (4 soaps)

Production Information.

Costs of Good Sold:

• Ingredients: $25 / piece.
• Pack Material: $7 / piece.
• Transportation: $50 / order.

Labor:

Currently "The Soap Company" is managed and operated by Carly, but she knows that is not sustainable if she wants to grow.

Distribution:

To start her business, Carly has reached out to a local transportation company that charges MXN$50 per shipment (within a 50 mile radius).

Production Time:

Preparation: 10 Minutes, Heating: 30 minutes, Mixing: 5 minutes, Cooling: 55 minutes.

Once production finalized, the soaps need to rest for 30 days before they can be sold.

Expected Sales:

	May'23	Jun'23	Jul'23	Aug'23	Sep'23	Oct'23	Nov'23	Dec'23	2024	2025	2026
Soaps (Units)	300	500	700	1000	1500	2000	2500	3000	42.000	55.000	60.000
Price per Unit $MXN	75	75	75	75	75	75	75	75	80	85	90

Case Questions.

As a consultant, you are asked to provide feedback and recommendations on the topics below. Please be aware it's a new business and there is very little information available. Most likely, you will need to research to gain additional insights.

• What is the digital strategy that the company should follow? (Including the key elements to utilize from a Global Value Chain perspective: sales, marketing, operations, distribution, etc.)? Please note she will be working on 2 phases and therefore a strategy is required for both.
  • How can she leverage technology to maximize the connection with her clients, considering it's a tangible good.

• What should Carly do in terms of labor for running the company?
  • Hire new personnel? think on automation tools, a mix of both, why?
  • What should be her people management strategy (minimum team and skills to run the company), considering its going to be a digital business.

• From a supply chain perspective, what are the distribution / transportation options that she could follow?
  • Leverage on existing Crowd-Works (e.g. Amazon) or develop a network of her own, and why?
  • What could her options be in terms of Order Management (e.g. use Excel or develop an app) and why?

• Carly wants to be successful on her implementation, and considering this new business startup can be managed as a new project could you help providing Carly the following:
  • Key considerations and guidelines to manage this business opportunity as a project.
  • Build the Project Charter for her start up.