Eco2Team Feng Huang

Hong Yifan

Ban Jung Tae

Emiri Shigeoka

BackgroundOur vision and business modelMarket AnalysisMarketing StrategyAction PlanFinancial Statement

Outline

Background

2,300,000,000 plastic bags

per yearForgetful Unfashionable

We do!

Not remindful enough

No fashionable

eco bag

Lack of recycling system

Our features

Sell eco-bags

Change mind towards

environment

Our vision

Executive SummaryWe sell two kinds of eco-bags made from recyclable materials;

(1) Eco bags for mothers and shoppers

(2) Eco bags for student organizations and companies

Executive Summary

(1) Eco bags for mothers and shoppers with barcodes of point system

(2) Eco bags for student organizations and companies with their own logos

Eco bag × point card system

Eco-Bag

Membership card

How the point system works?Oh point card in KoreaCustomers can accumulate points

and use it just like money

Many cooperated stores

→ pay for the points

・ Customer loyalty・ Advertisement effect・ Get customer information

Point card company

can get commission from stores

Cooperate with a card company

Put the barcodes for point accumulation

→ Remind people to bring eco bags with barcode

→ Cut down family budget and saving money

How the point system works?Our e-point system

Interview Result (1)83 % of mothers said they won’t forget to bring eco bags if they have our product.

83%

17%

Usage increase for Eco-bag

Yes No

69% of mothers said they want to buy our

e-point eco bag if this service exists.

69%

31%

Eco-bag purchasing

Yes

No

Interview Result (2)

Executive Summary

(1) Eco bags for mothers and shoppers with barcodes of point system

(2) Eco bags for student organizations and companies with their own logos

Examples

Our websitePeople can design eco-bags for their own use (Choosing materials, size, shapes, colors, designs etc)

Cf. ClubT in Japan

OVAL Eco bag

5. Sell

4. Attach barcodes

3. Produce

2. Design

1. Collect materials Garbage company, households, offices

Students, designers

(Generalized for public)

Card companies

Supermarkets

Student organizations, companies (Customized)

Online website

How we produce and sell

FactoriesFactories

What we use?

Recyclable trash (from garbage company)

Old clothes (cf. Clothes box in Korea)

Used banners (cf. placards collecting company in Korea)

Generalized for public

University students

New designers

Customized

Student organizations

Companies

How we design?

Who designs? For whom?

• Produces the general models• Storage them

• (1) For "mothers“ ----------^^^--------------------- attach the barcodes on the eco-bags

• (2)For student organizations and companies print the patterns according to customer needs

How we produce?

Supermarkets

Online

Where we sell?

Market AnalysisSegmentation

Geographic : Beijing

Demographic : Beijing mothers

students/organization Behavior : Try to save budget

/want to have good image Psychology : Pay back is good

/use good image

Mothers who wants to save their family budget

Student organizations that want to have their original goods or promote their own organization

Companies that want to promote themselves as an environment-friendly company

Market AnalysisTargeting

The good image of “Environment-friendly company” to youngsters(10~20) and mothers(30~60)

Reducing the usage of plastic bags and encouraging people to use eco bags with e-point barcodes

Market AnalysisPositioning

Value・ Use recycling materials

・ E-point system・ Website for eco bags

design・ CSR and good ad

RarityIn China,

・ no fashionable eco bag

・ point system just started・ lack of recycling

company

Imitability

Entry barrier level will be high once we get alliances

with many stores and establish our system

Organization

Small in the beginning,

but grow by year

VRIO

VRIO Analysis

High

MediumRelatively

low

Relatively high

Sustainably competitive superiority

Start with a small headquarter

Use computer system to collect customer information

Cooperate with students and new designers, model the bag size

Collect recyclin

g material

s in a low cost

Produce by

ourselves

Build inventory

near factories

Mouth to mouth,

Selling on the internet and on the

spot

Website and apps

for customers to check

their points

Margin

Value Chain

Marketing Strategies for mothers

Advertisements and promotion in supermarkets

Using internet web, apps to promote(online point check system)

Mouth-to-mouth

CSR (corporate social responsibility) is highly considered

Focus on companies with high awareness towards environment

Heighten our brand images by cooperating with big business conferences and events

Marketing Strategies for companies

Cooperate with fashion magazines

- our eco-bags as supplements → popularize

- articles about eco-bags

- put our advertisement in these magazines

Marketing Strategies for students organization and companies

Successful example in Japan 1 These eco-bags (free gift) of the famous Japanese

fashion magazines.

“Cher”

“MARC BY MARC JACOBS”

“Anya Hindmarch” Made to deal with environmental

problems by a British popular brand

Sold in a low price

although it is a luxury brand.

→Cooperate with Chinese celebrities, famous brands

Successful example in Japan 2

Affiliate system

We’ll pay fees to affiliate websites if their products were bought by visitors from affiliate websites

SEO (Search engine optimization)

SNS, apps for young people

Digital marketing strategy

Q1 Q2 Q3 Q42017

Promotion

20142015 2016

Expansion

Strategy

Selling our eco bagsRecycleable dealership

Develop point system and service

Familialize our product Establish better images

Cutting cost

SubwaySNSSupermarket

Internet & application

lower commission

Action Plan

Year 1 Year 2 Year 3 Year 4 Year 5

Total Sales

913,600

1,552,000

2,016,000

2,424,000

2,744,000

Total expenses

686,196

607,796

738,872

737,672

742,792

Net Income

227,404

944,204

1,277,128

1,686,328

2,001,208 Net Income

after tax 170,553 708,153 957,846 1,264,746 1,500,906

Year 1 Year 2 Year 3 Year 4 Year 5 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Total Sales

Net Income

Projected Income Statements

Estimated sales in the first yearJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

(Units)

5,000

5,000

10,000

10,000

15,000

20,000

20,000

20,000

25,000

25,000

25,000

25,000

205,000

Sales of eco bags with barcodes

20,000

20,000

40,000

40,000

60,000

80,000

80,000

80,000

100,000

100,000

100,00

0

100,000

820,000

(Units)

200

500

500

500

1,000

1,000

1,000

1,000

1,500

1,500

1,500

1,500

11,700 Sales of customized eco bags

1,600

4,000

4,000

4,000

8,000

8,000

8,000

8,000

12,000

12,000

12,000

12,000

93,600

Total sales

21,600

24,000

44,000

44,000

68,000

88,000

88,000

88,000

112,000 112,000

112,000

112,000

913,600

Facilities (Factories)Rent 60,000 Machines (recycle, print) 40,000 Cost of goods 49,200 Utilities, fuels, insurance 120,000 Repairs and Maintenance 18,000

Total Facilities (Factories) 287,200

Facilities (Headquater)Rent 7,200 Furniture, office supplies 3,000

Total Facilities (Headquater) 10,200

Salaries for full-time workers (3) 90,000 Salaries for part-time (5) 26,400 Trucks and fuels 132,000 Cost of clothes boxes 10,000

Commission fee to card company 16,400 Advertisement 110,000 Depreciation 3,996 Operating Expenses 686,196

Operating Expenses 686,196

Total sales 913,600

Net Income 227,404

Net Income after tax 170,553

Estimated expenses in the first year

Year 1 Year 2 Year 3 Year 4 Year 5Facilities (Factories)

Rent 60,000 60,000 60,000 60,000 60,000 Machines (recycle, print) 40,000 5,000 40,000 0 0 Cost of goods 49,200 79,200 100,800 122,400 137,280 Utilities, fuels, insurance 120,000 132,000 180,000 180,000 180,000 Repairs and Maintanence 18,000 21,600 21,600 21,600 21,600

Total Facilities (Factories) 287,200 297,800 402,400 384,000 398,880

Facilities (Headquater)Rent 7,200 7,200 7,200 7,200 7,200 Furniture, office supplies 3,000 0 0 0 0

Total Facilities (Headquater) 10,200 7,200 7,200 7,200 7,200

Salaries for full-time workers (3) 90,000 90,000 90,000 90,000 90,000 Salaries for part-time (5) 26,400 26,400 31,680 31,680 36,960 Trucks and fuels 132,000 72,000 72,000 92,000 72,000 Cost of clothes boxes 10,000 0 10,000 0 0 Commission fee to card company 16,400 26,400 33,600 40,800 45,760 Advertisement 110,000 84,000 84,000 84,000 84,000 Depreciation 3,996 3,996 7,992 7,992 7,992 Operating Expenses 686,196 607,796 738,872 737,672 742,792 Total sales 913,600 1,552,000 2,016,000 2,424,000 2,744,000

Net Income 227,404 944,204 1,277,128 1,686,328 2,001,208 Net Income after tax 170,553 708,153 957,846 1,264,746 1,500,906 Cash end 170,553 878,706 1,836,552 3,101,298 4,602,204

Our Value

•Can benefit from point systemShoppers (mothers)

•Can use our website for designing their original eco bags with their logos

Student organizations

•Can show their positive attitudes to environmentCompanies

•Can get customer loyalty, customers’ information, and advertise their stores

Cooperated companies

Sell eco-bags and

change people’s behavior and mind

towards environment

Point card

system

Fashionable eco bag

Conclusion

Lots of ideas from Korea and Japan

→ Apply them to Chinese market

Thank you