UGE1002 Enterpreuentrship Assignment 1 Semester 1 2025/2026 | UMPSA

FACULTY OF MANUFACTURING AND MECHATRONIC ENGINEERING TECHNOLOGY

UNIVERSITI MALAYSIA PAHANG AL-SULTAN ABDULLAH  

UGE1002 Assignment 1 

1. Introduction

This project is about making and selling homemade, natural soap. We used the pour soap making method to make soap that is better for the skin than store-bought kinds because it uses natural oils and no harsh chemicals. This assignment shows how we developed the product, managed the costs, and planned how to sell the soap to people who want natural and eco-friendly products. By the end, we will show if our soap business idea can work in the real world.

2. Business Concept

The business concept for this project is to launch homemade soap , a local artisan brand dedicated to producing high-quality, handcrafted bath products that serve as a direct, superior alternative to mass-produced commercial soaps. Our core value proposition centers on exceptional skin benefits, using natural ingredients like nourishing plant oils and pure essential oils while completely avoiding synthetic detergents and parabens. Our target market is the student who seeks both luxury and ethical sourcing in their daily personal care routine, allowing us to position our soap not merely as a cleansing agent, but as an affordable, daily indulgence with a positive environmental impact.

3. Target Market

Main customer :

• Age: 13-25 years old
• Gender: Male & Female
• Location: Students in schools, colleges, and nearby communities
• Income Level: Low-middle, dependent on allowance
• Lifestyle: Enjoy self-care, aesthetic products, and affordable personal hygiene items

4. Customer needs / Problems

Based on the customer needs we’ve identified gentle hydration, aesthetic appeal, and affordability your target market is a unique blend of the value conscious shopper and the impulse buyer seeking high quality, beautiful items. This market prioritizes products that offer an excellent balance of function and form. They specifically look for soaps that are designed to be gentle and non drying, show a high degree of concern for skin health and sensitivity. Simultaneously, they are driven by aesthetic and gifting potential, seeking out cute, unique, and well presented bars that elevate the routine experience or serve as thoughtful gifts. Crucially, this customer base expects these qualities at an affordable price point, recognizing that store bought specialty or “natural” soaps can be overly expensive, thus positioning your homemade soap as a superior value proposition that satisfies their desire for both quality and save budget.

5. Reasons to buy our product

Customers should choose our handcrafted soap because it directly addresses the key compromises they currently face when buying commercial or specialized bath products. Unlike harsh, store-bought bars that strip the skin and cause dryness, our soap is specifically formulated with natural oils to be exceptionally gentle and deeply moisturizing, transforming the daily routine into a nourishing experience. Furthermore, we satisfy the strong consumer demand for products that are both high-quality and visually appealing, offering cute, aesthetic, and gift-worthy designs and scents that make our bars perfect for personal indulgence or thoughtful presents. Most importantly, we bridge the gap between quality and cost by providing these premium, artisan-level benefits at an affordable price point, ensuring that superior skincare and beautiful packaging are accessible without the premium cost associated with major specialty brands.

6. Competitor Analysis

7. Unique Selling Proposition (USP)

Our homemade soap offers a highly compelling value proposition, making it a distinctive choice in the personal care market. We stand out primarily because we deliver the coveted benefits of a natural product at an affordable price, recognizing that most high-quality, natural soaps are often too expensive, especially for budgetconscious students; our pricing strategy ensures superior ingredients are accessible. This affordability is powerfully combined with a wide variety of options, allowing every customer to choose a scent or design that perfectly suits their personal preference or skin need. Finally, the aesthetic and handmade nature of our bars ensures that each soap is created with personal care and attention, resulting in a product that is not only highly functional but also perfectly suited for thoughtful gifting, offering a more personal and beautiful alternative to standard mass-produced items.

8. Revenue Model

Our homemade soap business will primarily earn money through direct product sales of our artisan soap bars, which represents our core revenue stream and allows us to capture value immediately upon transaction. We will maximize profitability by strategically utilizing multiple sales channels, including local markets and online platforms, to reach our target student demographic. In addition to the base price of the soap, we will generate supplementary revenue through delivery fees for convenient local drop-offs or shipping, ensuring our costs for logistics are covered. While we are not implementing subscriptions or advertising at this initial stage, successful sales volumes will naturally allow us to reinvest profits into new product variety and potentially scaled production, which will further drive sales growth and increase overall income.

The selling price for our homemade soap bars is strategically set to be both competitive and profitable, prioritizing affordability for our student target market while ensuring sustainable business operations. The price is determined by first calculating the Cost of Goods Sold (COGS), which includes all raw materials (oils, lye, fragrance, packaging), and then adding a target profit margin. Given our focus on offering a budget-friendly natural option, our price will be slightly higher than generic storebought soap to reflect the high quality of ingredients and handmade labor, but deliberately kept below the price of most high-end artisan and specialized natural soap brands. This positioning allows us to capture the value-conscious consumer who seeks quality and aesthetics without the prohibitive cost, ensuring an appealing and accessible purchase.

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