Project Management Assignment
Name of the organization: Maximfactor
Project title: Natural and Waterproof lipstick
Project time-frame: January 1, 2011- December 31, 2012
Prepared by: The managing director
The main goal of this projected mission is to design a new line of waterproof lipstick made of natural ingredients. The proposed project is provoked by the necessity to regain the company’s market share and eliminate competition from other firms in the cosmetic’s industry. To accomplish this aspiration, the new line will employ natural ingredients such as beeswax, aloe Vera, plant wax, sunflower oil, beetroot and Vitamin E. An additional strategy is the use of new innovative designs that the company has recently discovered. The company further intends to deviate from using any synthetic materials with carcinogenic consequences. The projected outcome of the proposed new line will be an anticipated 60% boost in company profits. Moreover, the new line will be used in creating awareness of other company products
The lipstick market is significant for the success of Maximfactor Company. A few months ago, one of our biggest competitor SKI, launched the first waterproof lipstick made of natural ingredients. Consequently, our market share has reduced drastically because of the ongoing campaigns to use natural ingredients. To take back our market share and be competitive in the cosmetic industry, there is need to introduce a new line of lipstick that will appeal to the current fashion drift. This lipstick should be made from natural ingredients and additionally be waterproof. Currently, the scientists working in the company laboratory have discovered new natural ingredients to make the lipsticks. Monitoring and evaluation of a sample lipstick is now on going. Similarly, the marketing team has been working on strategies for the brand repositioning and marketing. However, the major constraint in implementing the new line of lipstick is the project scope. For this project to be successful, a considerable amount of effort needs to be executed. The management of the company has already selected a team to plan and design the project.
v To introduce a new line of waterproof lipstick made from natural ingredients.
v To regain Maximfactor market share in the cosmetic industry by attracting a large number of customers.
v To eliminate competition from other firms and increase company profits by 60%.
v To use the new line in advertisement and marketing other Maximfactor products such as lip gloss.
To achieve the objectives set out for the new line, a team has been chosen. The project leader will be the managing director of Maximfactor Company. The leader has the role of coordination and communication. Communication will be through meetings, telephone and e-mails. The other team members include personnel from different department in the firm such as fashion designers, multimedia professional, scientists, graphics designers and marketing executives. All these members will work together to develop a brand of lipstick that appeals to the society and the fashion industry. The ideas generated from these personnel from diverse fields will help push the project forward. As a result, all members are expected to contribute. To make decisions, the members will cast votes and the majority votes will win.
Work breakdown and task time estimates
|Making the lipstick||Five months||Scientists|
|Branding and labeling||One month||Graphic and fashion designers|
|Advertising||Two months||The entire team|
|Introduction in the market||Five months||Designers and marketers|
|Marketing||Five months||Marketing executives|
The team hopes to deliver the product to the company seven months from the commencement of the project. At the end of this duration, the company will deliver the new line of waterproof lipstick made of natural ingredients to its customers. The team further hopes to market other products of the company and increase the company’s revenue through sale of the new product. A report with details of the overall process will be submitted to the company executives and the bureau of standards.
Project Risk Management
To identify the risks likely to occur, the team used a combination of suggestions and evaluation of ordinary risks. A business risk has been identified if the project will not meet the time deadline. Our main competitor SKI will have obtained a larger market share by the end of the time limit set in the project. If the natural ingredients are not mixed well, there is a possibility that the team will produce substandard lipstick. The use of natural ingredients is costly. In order to produce lipstick with good quality the company will have to employ huge sums of money. As a result, the prices of lipstick will increase therefore posing additional business risks.
Risk quantification, response and control
After careful assessment of the risk, the team has quantified the risks as medium (Lock, 2007). The probability of these risks occurring is neither high nor low. However, in the event that the risks occur, the impact will be costly to the company. The company has a policy of mitigating risk. The team will therefore adopt a mitigation approach in response to the risks. The team has set up a mechanism that constantly monitors the risks in order to identify any changes. One of the personnel is in charge of reviewing the risks to identify any fresh risk.
|Supplies for lipstick||10,000|
The miscellaneous expenses will be used to mitigate risks and pay for expenses incurred after the lapse of the prescribed time limit. Team members will receive a salary.
The proposed new line of lipstick has a high potential of boosting the revenue of Maximfactor Company. It will not only increase the revenue but also lay a foundation to reposition the company in the cosmetic industry. This move is necessary for the growth and development of Maximfactor.
Lock, D. (2007). Project management. Burlington, VT: Ashgate.