Kangen richness business plan proper


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Kangen richness business plan proper

  1. 1. EXECUTIVE SUMMARYThe CompanyThe business venture is focus on direct selling. The activity will have a start-up with OFWs’ and non-Filipinocommunity households in Rome, Italy. Initial capital would be 4,524.785 euro, in which partners will have a share ofE2,262.39 respectively. The product they will provide the market is LeveLuk SD501 Kangen Water machine, a waterionizing device originated in Japan.The Product or ServiceLeveLuk SD 501 Kangen Water machine is a type of water ionizing device which creates the best quality of water.Through a three layered filter it ionize and restructure the water making it more alkaline and hexagonal or microclustered. This type of water helps in the detoxification of free radicals and helps neutralize acidity in the body. Alignwith this product is the dynamic compensation earned upon its distribution.The Market PotentialQuestionnaires were provided to prospect consumers and interviews were done in order to gather information on thedemand on the product. Target consumers are people 18 years and above, male or female, average income earners,and belongs to the household industry. Within 30 people, we have gathered the data that 18 of them will avail themachine. The reason is they aim to provide their families the best possible healthcare within reach using the bestKangen-grade water created by our product. In addition, the income to be earned in the direct selling of the machinealso stimulates customers of the product. Ultimately, the business is seen to be feasible.The CompetitionBottled waters, local purifying and filtrating devices, Osmosis purifier sold by local vendors already are the possiblecompetitors. But the product we will advocate has all the qualities of the best ionizing, filtrating water device peoplecould have. Having a mother company that exist for 30 years and more, producing the best of the best water ionizingdevices in the water industry, having its distributors of integrity and un-denied success in the field of marketing, theabundance of the product’s health merits, and financial freedom, no doubt that our product will not lead thecompetition.The StrategyFree waters will be distributed on prospected customers. Demonstrations on how the machine creates the bestKangen-grade water, discussions on how it would enrich the health status of the body and how it helps balance theequilibrium of the environment will be done as our market strategy. After seeing the benefits of the Kangen water,they will surely get a unit of the machine.The FinancialsInitial investment or the capital will come from share of contributions from partners. Projected balance sheet,forecast on income statement up to the point of break-even will be shown in the annex. 1
  2. 2. ORGANIZATION AND STRUCTUREBasic Corporate DataName of Business: -- KANGEN RICHNESSStatus: Indipendent distributor of Enagic’s Kangen Water machine.Capital: --4,524.785 euro start-up costPlanned Office: --No permanent place. Machine will be located on either of the partners’ house. Teresa Populi-De Chavez, via Giulia di Gallese 7, 00151, Rome Haydee Lunar-Panganiban, via Constantino Corvisieri 22, 00162 Rome, Italy.Company’s ultimate goalTo help enrich the health of our customers by providing a machine that will supply the best quality, Kangen-gradewater and to help them earn more income through the distribution and selling of the Kangen Water machine.MissionTo create a market in whole Rome, Italy and in the future in nearby cities by providing customers with Enagic LeveLukSD501 Kangen Water machine. Target market are households and community churches. We will do demonstrationson churches (outdoor) and in house.Company valuesIn today’s economy, direct sales marketing structure of business can be considered as the most effective way of doingbusiness. Having a trusted, highly integrated mother company and manufacturer, business partners who are hard-working, skilled, independent and client-focus, there is no doubt to success of this business venture. In addition tothis, a quality product, effective and efficient LeveLuk SD501 Kangen Water machine, a trusted medical device, theabundance of its health merits and financial rewards that the company gives are the basic values that will guide us inmanaging our business and our clients.Brief history and current statusThe business is called Kangen Richness. Teresa Populi-De Chavez and Haydee Lunar-Panganiban decided to build thisbusiness because they have seen such problems of the society that really affects it in a whole. We pertain basically onthe poor healthcare industry and lack of income sources. This start-up business focus on the distributorship of EnagicKangen Water ionizing device specifically the LeveLuk SD501 machine that produces ionized, hexagonal water. Thewater produce by this machine is the best type of water to neutralize the body and the environment as well. And thedynamic compensation plan that the mother company is offering gave us the idea to help our customers earnadditional income. 2
  3. 3. Enagic and the phrase Kangen Water are registered trademarks of Enagic, Inc. Founded by Hironari Oshiro, Enagic,Inc. is a 30 year-old company using water ionizing technology with a proven track record. It makes one of the fewwater ionizing devices that is officially approved, based on health merits, by the Japanese Ministry of Health, Labourand Welfare. Over one hundred hospitals in Japan utilize Enagic’s device, enabling them to treat their patients withKangen Water. Enagic, Inc. is the only company in the water industry endorse by the Japanese Association for thePrevention of Geriatric Diseases, an association of over 6,500 doctors and surgeons. It dominates the industry withover 400,000 satisfied families worldwide using their water devices. Enagic owns and operates the manufacturingplant where each component part is created. Each machine is assembled by hand, and their quality control is the bestin the industry. It produce several models for home and commercial use, and this business plan focuses on their top-of-the-line home model, the LeveLuk SD501.LeveLuk SD501 creates Kangen Water , the water that has returned to its origin. Water that creates balance for ourbody and for our environment. It entered in the US market in 2003. Their LeveLuk SD501 is approved by the Japaneseequivalent to the US FDA and has won an award from a prestigious group of doctors and scientists as being the ONLY 1water treatment system to prevent adult diseases.To help people become physically, financially, and mentally healthy in the midst of this economy trapped by crisis, wecome up on starting this type of direct selling business. Since the product is already introduced and presently having amarket in Milan and Bologna, we come up with the idea of starting the market here in Rome, which we all knowexactly as the center of Italy where lots of clients we focus to market the product is found.Organization and managementTeresa Populi-De Chavez and Haydee Lunar-Panganiban are the business partners of Kangen Richness. They are youngentrepreneurs who are willing to exert effort and initiative and take the risks throughout the venture of the business.Haydee is a licensed midwife, graduated in a School of Midwifery, Lyceum of the Philippines, Batangas in 1994. Sinceshe is connected in the line of medicine, she will be responsible on the product presentation, demonstration as well asdiscussion of the machines’ health merits.Teresa on the other hand has finished a bachelor’s degree in Commerce major in Business Management, andgraduated as outstanding management student in Lyceum of the Philippines, Batangas in April 2002. She will do thediscussion of the distributors’ compensation plan and will hold the responsibility of bookkeeping, where she’ll do therecords and filing of the orders, payments, clients’ accounts, and accounting in a whole.Mr. Mark Cristal will be our advisor. He is one of the successful independent distributors(rank 6A) of Enagic and is the 2CEO of Kangen International Mission. Core competenciesCustomer relationship: Our focus will be to satisfy the healthcare needs of our clients by offering them solutions andby keeping a good long-term customer-distributor relationship. Market research and understanding: Various contacts with friends, household and churches is the key on getting connected with the prospected customers. This served as our starting point in gaining market understanding through interviews and questionnaires we give them. Negotiating: Our approach is face-to-face, direct-selling type of marketing and negotiation. We understand that our customers prefer that we personally meet with them so we will do it by setting appointments. And through the power of word of mouth, we will do demonstrations to show them our product and its benefits. Face-to-face communication is proven to be a very useful skill in marketing to lessen miscommunication. 3
  4. 4. Operations Management: Our business activity concentrates on customer-relationship management and direct selling, so particularly we will do the recruitment of new clients and maintaining good relationships with them. Since we do not have inventories, we reduce our working capital to a minimum. Product development: It is characterized by having updated and continuous work with our partner, ability to meet the needs of our clients by offering them with customized best quality product, reliable and efficient service and performance of our product. PRODUCTS AND SERVICESDescriptionEnagic LeveLuk SD501 Kangen Water machine is a type of water ionizing device originally made and manufacturedfrom Japan. It produce a much higher percentage of hexagonal Kangen-grade water. It weighs 6.3kg, and with adimension of 285x264 inches making it very much portable.The machine is so unique that it has a lot of good features. It has a superior 5 year product warranty, with a 15 to 20years life span, comprehensive maintenance program, superior automatic self-cleaning system and approved medicaldevice in Japan. It has seven platinum coated titanium plates for electrolysis and also produces micro clusteredKangen-grade water. This is a heavy duty device, superior to its competitors. The water chamber is engineered so thatit may be dismantled for service if needed. The SD501 will produce about three times the volume of water that otherswill in the same period of time and the filters will lasts for about 3,000 gallons vs. 1,000 gallons. It uses 230 watts ofelectricity, a high power that splits the water molecule and produces the desirable hexagonal molecular structure.Enagic LeveLuk SD501 produces Hexagonal water which is comprised of small molecular units or ring-shaped clusters-moves easily within the cellular matrix of the body, helping with nutrient absorption and waste removal. It aidsmetabolic processes, supports the immune system, contributes to lasting vitality and acts as a carrier of dissolvedoxygen. It can provide alkaline minerals to the body and it helps in the more efficient removal of acidic wastes.Drinking hexagonal water takes us in the direction of health. It supports long life and freedom from disease.It has a compact design and easy to use. A clear, easily-viewable LCD and voice prompts guide you in producing the 5types of water (Kangen Water, acidic water, Strong Acidic Water and clean water). With only the touch of a button,the machine is extremely easy to operate. It is fully-equipped with an electrolysis enhancer tank. Continuouslyproducing Strong Acidic Water and strong Kangen Water. There is also a three-layered, high power filter that deliversthe delicious water. Able to process approximately 6,000 liters of water, these powerful filters are good forapproximately 6 months of general use(assuming an average use of 60 liters per day). The large LCD will notify youand an alarm will sound when the filter needs to be changed. The three-layered, high power water filter removescontaminates such as lead, chlorine, effluvium, rust and other debris, yet retains important minerals. Doing the direct-market selling type of business, we are going to endorse and distribute the products to communitychurches and the households. Procurement of the machine will enable the customers to serve best their communityby giving them a quality healthy Kangen-grade water. While the household will benefit not only with the abundance ofhealthy quality Kangen Water always available at home but also with the dynamic compensation plan they could earnif they will also distribute and sell units of Enagic LeveLuk SD501 Kangen water machine.As a result is a more healthy society, physically, mentally and financially. 4
  5. 5. Products/Service Features The Ultimate Home Use ModelThe LeveLuk SD501 is the finest machine in its class, with the highest quality built-in electrolysis chamber on themarket. This Kangen Water® filtration machine generates a continuous stream of 5 types of water for countlesshousehold needs. You can easily operate the SD501, thanks to a large LCD panel and clear voice prompts. When youneed enough delicious, healthy alkaline water to hydrate your whole family, the SD501 is the product youve beensearching for.(Reference: https://www.enagic.com/technology_products.php#p=sd501)LeveLuk SD501 has a compact design and easy to use. It has 7 electrode plates to ensure sufficient power. A large LCDand voice prompt make for easy use. Fully equipped with an electrolysis enhancer tank. Continuously producingStrong Acidic Water and Strong Kangen Water. It also has a 3 layered, high power filter that delivers Sanitary water[disinfecting] (*pH 2.7 & below); Beauty water [healthy and hygienic] (*pH 4.6); Clean water [gentle for everydayuse] (*pH 7-same as tap water); Healthy Kangen Water [innovative water] (pH*8.5-9.5) and Environmentally friendly 3water [green cleansing power] (pH 11 and higher).On the other hand, the dynamic compensation plan for new distributors are really exciting to achieve. They can startbuilding wealth through the distribution of Enagic LeveLuk SD501 machine. Having 6 ranks (1A-6A), all ranks have 8levels or points to pay. To advance in rank, the distributor must have personal sales and further her team mustaccumulate a specific number of sales. A distributor can rank directly from 1A (must have 2 direct sales) to any otherrank when the accumulated sales volume meets the stated requirements. Having an example, you are a 1A with twodirect sales. You become 2A when you sell a third unit. Or you can jump directly to 6A from a personal sale if the totalamount of units sold in your team is at least 100. 5
  6. 6. The total 1A commission is 145 euro for a unit sold in cash plus the special bonus of 30 euro with a total of 175euro/unit sold. . Special bonus is get when a direct sale is done within 90 days. A fantastic compensation awaits morefor 6A rank. And by helping other team to reach 6A, you become 6A2, 6A2-2 and soon. Upon reaching 6A rank andhigher, there are lots of awards, incentives and commissions to be achieve. Kangen Richness partners our prospectsclients and distributors to reaching these ranks by leading, proper guidance, trainings and mentoring. THEORY OF CHANGESaving initial capital---purchase of LeveLukSD501 Kangen Water machine---advertise and market the product---unitssold--- increase sales, less cost, more income, disease free customers---physically, financially, mentally healthy societyand environment. BUSINESS STRATEGYOur strategic objectives are as follows th 1. To lead the market in whole of Rome and nearby cities on the 5 year; nd 2. We target to sell and distribute 100 units by the end of our 2 year; nd 3. Achieve the fantastic compensation of 6A rank by the end of 2 year; 4. Achieve 95% in customer satisfaction surveys by 2015;StrategyIn-house & outdoor demonstrations---share FREE Kangen Water, discussion of compensation options & paymentplans---evaluation on the used of Kangen water---procurement of LeveLuk SD501 Kangen water machine---missionaccomplished, physically, financially and mentally healthy society.Free water. Abundance of health benefits. Affordable payment options. On this, the strategy of our business willfocus. We will give free Kangen-grade water for consumer to test its health benefits. The LeveLuk SD501 machine iscostly that we knew from the beginning it will be the reason they would hesitate to purchase the product. But afterusage of the water and proving its efficiency and effectiveness on the health of each and everyone in the family, thereis no worry that they will come back to us and buy our product. When we speak of health, people pays to invest forthe best. The affordable payment options given by Enagic would be another way of easily availment of the machine.Through this strategy that customers will try the opportunity of earning too, while helping others as well. And we willnever stop giving free water until they see the difference the machine could bring them, stability healthy, physically,financially and mentally.Direct selling is the business structure we will dig into. Defined as marketing and selling products directly toconsumers away from a fixed retail location. Sales are typically made through party plan, one on one demonstrationsor other personal contact arrangements. In here income is raise easily because the sales agent is paid not only fortheir own sales but also through a commission on the units sold by those representatives they introduced into theorganization and got recruited. 6
  7. 7. Customer SegmentOur target market will mainly be the households and community churches. For future expansion are doctors ofmedicine, skin care clinics, and gyms. These are the people concern for the health of their family members, patients,clients, and for their people in general.Value PropositionsWe will give free Kangen grade (ionized, alkaline, hexagonal) water from our Kangen water machine (LeveLuk SD501).Customers will be given free demonstrations about the product, water it produce, and the health benefits it couldgive. Having ENAGIC, Inc., a mother company of integrity of proven effective and efficient water ionizing, filtratinggenerators, surely customers will patronize the product. Doctors, skin care clinics and gyms would get more clientshaving been understood and known that they are using this machine to help serve and cure their patients andathletes. Being part of the service of the church, acquring our product would be a big help for its community, whomthe church can give free clean water to its people. In addition to this, the customers, particularly the households whoare the promising new distributors/agents to be, will benefit more on the dynamic compensation plan that thecompany is offering. The costly price of the machine can be resolved easily through the affordable payment optionsavailable.ChannelsThe machine will be introduced in the market through the free water pubblicities like leaflets, word of mouth, mediai.e, mobile phones, internet, and announcements. Advertisements will contain the abundant benefits of the water tothe equilibrium of the body and environment. Upon consumption of the water, they will be capable of distinguishingthe waters’ effectiveness and the efficiency of the LeveLuk SD501 Kangen water machine. Surely that people will comeback and ask for the machine. Providing enough understanding and information about the machine, we allow them toavail the machine. Ultimately, customers will be monitored upon purchased of the machine until the time they stillneeded our guidance and services. We will be on the reach out of updating the customers for the innovations anddevelopments of the product through trainings, seminars and internet resources.Customer RelationshipQuality service to people and society and the love for nature are the values we give emphasis on this business. All ourcustomers will be given the opportunity to help themselves, their families, their customers, patients and clients of thequality Kangen Water by the use of our product LeveLuk SD501 machine. A product that is newly introduce in Romeyet a known-guaranteed and proven medical device in Japan and US for years having a successful record to helpachieve equilibrium of mankind, body, lifestyle and environment. Having free waterto try, a machine with a compactdesign, portable and easy to demonstrate instructions, a price that is worth much of its health merits and financialbenefits, these are enough for people to trust us and avail the product. Customers will also find it easy to pay becauseof the affordable payment option available. Furthermore, when it comes to health, it pays to invest in the best.Revenue StreamsIncome will come from the commissions earned for every units of machine sold, personally and from the newlyrecruited distributors.Key ResourcesCustomer relationship - we will do direct selling, face-to-face negotiations to customer.Intellectual - Under the patent of the main company, Enagic, Inc., upon the procurement of the machine, we becomeindipendent registered distributors. 7
  8. 8. Financial - will we get our capital from our own personal savings.Raw Materials - LeveLuk SD 501 Kangen Water machine.Key ActivitiesDistribution of free Kangen-grade water, demonstration, discussion of compensation and payment plan options.Key PartnersThe mother company, Enagic, Inc., community churches and households. For future expansion are the medicaldoctors, skin care clinics and gyms.Cost StructureThe operation is considered value-driven because we are focused on the value of the machine , the best quality ofwater it produces and the health benefits it could bring to the customer. Another focus is the value of thecompensation for a win-win solution, that is the point when an order of the machine is made. Start-up cost isminimal, it is modest and mainly to cover the cost of the distributors’ kit. In addition are the supplies needed for a 3years projected marketing. Start-up Cost Marketing Expenses Start-up equipments Qty. Amount in euro Marketing Expenses AmountLeveLuk SD501 machine 1 3,308.20 Church Donation E360.00Electrolysis enhancer 6 15.00 Cell phone bill 720.00pH tester 6 9.00 Transportation 900.00Pre Filter 6 720.00 Advertising, Printing 200.00High-grade Filter 2 160.00 Miscellaneous 20.00Chlorine tester 3 10.50Brochures SD501 English 5 5.00Brochures SD501 Italian 2 2.00VAT 19% 175.085 TOTAL MARKETING EXPENSES E2,220.00 Total Cost of Production(3 years)ORP tester 1 76.00 4,524.785+2,220.00=6,744.785euro-Shipping 1x 44.00 [2(yrs) x 661.6(cost value ofTOTAL STAR-UP COST E4,524.785 SD501)=]1,323.3=5,421.485 euroThe marketing expenses covers all the expenditures connected in the operation proper of the business including thedemonstrations to be done for the indicated 3 years of projected business activity. Monthly church donation isamounting to E10 each demonstration for 36 months. Cell phone bills are E5/week, E20/mo. Tickets for transportationcosts E150.00 per partner, so E450 each making it E900 for 36 months. Advertising includes leaflets, CDs’, readingprinted materials and printing supplies that is estimated to cost E200 for 3 years. Miscellaneous expenses of E20.From the total cost of production is subtracted the remaining 2 yrs cost value of the machine, to the fact that it has 5years warranty, yet computed as is utilized for 3 years projection. Supporting financial documents are attached in theannex. 8
  9. 9. Economies of Scale 3.5 Output 3 2.5 2 1.5 Output 1 0.5 0 0 0.5 1 1.5 2 2.5 3 3.5The economies of scale shows that in the monthly advertising average cost of 61.05 euro (in church demonstrations)the number of output is increasing, as the newly recruited client get another customer. Direct and group salesincrease, thus earnings gets higher. As advertising cost spread all over the marketing activities, the number of sales(output) increases. The only thing important here is to keep getting direct sales, that is focusing on the targetcustomers and continue advertising/marketing giving value on the testimonials and evaluation on the benefits ofwater to the customers.Our Promise – what will you guarantee or promise to your customers and suppliers?An effective LeveLukSD501 Kangen Water machine, efficient to resolve healthcare problems, a dynamic compensationplan, quality service and distributors which are always on the reach to help them help enrich their lives, these wepromise to our customers.Why will this promise be hard for competitors to copy?Because we give free Kangen-grade water for free until customers see and feel the proof of its benefits, we don’t sellthe water. We introduce the only water ionizing machine, Enagic LevelLuk SD501 which has a 30 years successful trackrecord of medically proven benefits to customers and still on its way of giving abundant health merits.Why will we be profitable?The fact that water is vital to humans’ survival keeps us believing that this business will be making profits, greaterprofits. It is a win-win business because of its never ending health benefits and because of our never ending share ongiving free Kangen-grade water. Customers will continuously consume the free water and will surely be back to buythe product testifying the help it gave them to solve their health problems. Not to mention the dynamic compensationplan and the awards and incentives that would be continuously earned attracting the prospect agents. 9
  10. 10. Annex I SALES FORECASTJan-Dec. 2013 18 16 14 12 10 Total Sales Indirect Sales 8 Direct Sales 6 4 2 0 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.The graph shows the number of units sold (from direct sales- shown by blue line, and indirect sales shown by red-green line) is increasing because the demand for the product is also increasing and the more the demand is thegreater becomes the income. For the whole first year Jan-Dec. 2013. While the violet line indicates the level of salesmade each month.
  11. 11. MARKET/CUSTOMER ANALYSISDemographics- OFW, 18 years and above, average income earners, residents in Rome and nearby cities.Psychographics- customers are those people who give much value to the health of the family members and willing toinvest to the attain the best healthcare possible and within reach.Resource-based on the interviews done and questionnaires given to prospected customers, data’s on the demandwere gathered.Micro segmentation- the marketing segment will focus on the Overseas Filipino community and households who areworking very hard to give the best among the best for their families here in Rome and those who remains in thePhilippines. We will provide them our quality product that creates quality Kangen Water. Having one (product andgetting)-to- many(model) yet single segmented customers will help us give sharp focus and concentrate on thedemands of our customers. This chain will guide the business partners to mainly monitor and evaluate on the marketsegment we choose. INDUSTRY ANALYSISCompetitionAfter few observations and research, we have found out that most of the Filipino households in Rome are usingdevices, i.e. water filtrating pitcher or water purifying devices usually bought from local vendors. The reason is theyall wanted to make sure that the water they will take is clean and safe to drink. Knowing that the tap water in Rome issafe to drink, though, it’s hard and also in some cases, some water system they put so much chlorine in it. With themore affordable price of the said devices, the competition to buy LeveLuk SD501 Kangen Water machine is very high.But with all the value propositions of our product, the company where it is originated and manufactured, having allthe certificates of the water industry, the value of the machine and the quality of water it creates , the payment planthat Enagic,Inc. has provided and the income in it, we believe that a greater impact on competition could be won.Taking as well into consideration that customers buying power is greatly enhanced by the benefits the machine couldprovide them.SubstitutesMost substitutes which are seen threats are the bottled drinking water, home water purifiers and local vendors sellingosmosis water purifier. Bottled waters can be considered low cost but if we are to compute the consummated bottledwater for a day that is 2 liters(365 days)= 730 liters(.60E)= 438E/yr. x 15 yrs = 6,570E. Whereas, with LeveLuk SD501Kangen water machine, only E3,308.00 for a lifespan of 15 years. Home water purifiers are also low cost same asosmosis water purifier but does not provide the same health merits a Kangen water machine can give. Threats fromcompetitors and substitutes are not seen to be very dangerous. 10
  12. 12. New EntrantsNew entrants with similar product, providing the same healthcare satisfaction and financial benefit is considered to bethreat to the business but the reality of that fact is very hard to imagine comparing with the mother company’s trackrecord in creating high technology best quality water generator and ionizing machine, our product is highlycompetitive.CustomersPoor healthcare and lack of additional income are two of the basic problems we will try to resolve with this businessactivity. Overseas Filipino workers are working hard and most of them are away from their families. The hardships arededicated to provide good living to their families, meeting the best of their healthcare needs considering this as vitalto mans’ survival. Considering the health benefits of our product, all these stimulus will motivate the customerspurchasing power on procurement of the machine. Giving emphasis on the value of the machine and its quality water,disease free-family are the points they will consider for the purchase. In addition, the possibility of being a “ goodSamaritan” helping other people and earning at the same time through the distribution of the machine will be anachievement for them.SuppliersThe power, integrity and success invested on the mother company and manufacturer, Enagic, Inc., is sufficient enoughfor us to continue this business, the competition in the water industry is really inspiring to enter into. Enagic is in theboom of its mission, that is providing people with a better life making them physically, mentally and financiallyhealthy.Potential for growthExpansion of the business from center to south of Italy. We will also expand our target market to medical doctors,hospitals, gyms, rehabilitation centers, home for the aged and skin care clinics. This business is already introduced inMilan, Bologna and Parma. In five months, 14 machines have been bought there. In addition, based on our research,there are more or less 5 Italians doing this business here in Italy and they have leveled-up. With this facts, we arekeen on the vision that our business has a greater potential growth in this country and on its nearby cities as well. COMPETITOR ANALYSIS Name of Competitors Pricing Comparison 1. Bottled water Plastic bottles are not .40E/2 liters biodegradeable. Not portable for demonstrations in 2. Home water purifier Unknown the market. Water it produces are not Kangen-grade water. 3. Local vendors selling Hydrogenic filtrator/ 71.00E/36.00E Water is to be bought and its pitcher water expensive. 4. Osmosis water purifier 300.00E Water created is not Kangen water. 11
  13. 13. MARKETING AND SALESAdvertising leaflet Enrich your life physically, mentally and financially. Enrich your environment and save the mother Earth. Choose Enagic and change yourlife with Kangen water system. Drink the right water, take it from the right, best supplier. With Kangen water, you could be rich in every drop!!! 12
  14. 14. Dry-runs---questionnaires were given, short interviews were done---impressed potential customers---willingness toavail the machine---high demand on our product.The customers were impressed on the uniqueness and high technology adapted on the invention of the machine.They were amazed with all the benefits it could possibly give them, though some of them had commented about thehigh price of it. But considering the overall impact on the value propositions of our product, its value and our supplier,and the good quality service we will provide them, it was concluded that our customers were satisfied on our dry runs.Getting align with our mission, prospected clients are willing to purchase the product. Image Our image and brand values will be conveyed by: Easy to Use Different functionalities in one click of a button, no thick manual needed. Portable Machine weighs about 6.3 kgs. Engineered chamber Could be dismantle for service if needed. Unique and modest design Pioneered with superior craftsmanship integrated with latest scientific research and innovation. Environmentally friendly Free from use of plastic bottle container.POSITIONINGLeveLuk Sd501 Kangen water machine will be promoted for Filipino and non/Filipino households and communitymembers in Rome. Advertisements online will also be done.Promotion StrategyProduct will be promoted by informing potential clients about its existing in the market. We will distribute leaflets,reading materials and demonstrations of the machine will be done as well. Ultimately, FREE Kangen Water will bedistributed to potential customers. Continuous monitor and evaluation on the consumption of Kangen water will becontrolled every now and then. Realization of the products’ efficiency and the satisfaction of the customers will beattained. 13
  15. 15. Listed below is more information on promotional strategies that we will employ. Media Type Justification Frequency Special occassions This allows us to access new customers. 3 days/week This allows us to introduce ourselves to prospective clients and As needed Cold Call eventually secure appointments. Conferences/ Meetings This allows us to meet with potential customers 2 Sundays/mo. (Church) Directory (online,mobile, This will allow us to be searchable online and offline. Every time FB) Print We will distribute materials during events or even in our client As needed meetings to describe our product and what it offers.CUSTOMER SERVICECustomer Service DescriptionCustomer Satisfaction We will keep in touch with customers by contacting them at least every time possible afterFeedback using the Kangen water to check their satisfaction with our product and find ways on how we can improve our product or service.Customer mentoring We will keep a sharp focus on the customers evaluation of the business activity, in case of aand development win-win situation, that is if they wanted to be a new distributor as well.We want to provide our customers with a payment option that proves convenient for them.Product: LeveLuk SD501 Unit Price: E3,308.20 (VAT included) Amount of Total Amount of Monthly Mode of Payment Sales Tax 19% Installment Payment 3 payments E528.20 E2,400.00 E800.00 6 payments E528.20 E2,400.00 E400.00 10 payments E528.20 E2,400.00 E240.00 16 payments E528.20 E1,068.00 E150.00CUSTOMER COMPLAINT-HANDLINGDespite best efforts to please our customers, we acknowledge that there will be customer complaints. And becausewe believe that customer is always right and that an irate customer can be our best ally, we have outlined our actionpoints in order to handle complaints effectively. 14
  16. 16. Complaints Action pointAssessment This includes listening to the customer and understanding the complaint. We will then map out the issue to find the root cause of the situation to know how we can best address the problem.Lessons Learned We will document all customer complaints, including its root cause and solution to understand whether the issues were small one-off items, or whether these are signals for a systemic but controllable risk. OPERATIONAL STRATEGYOPERATING PLANTo operate the business, we need mobile phones, internet, office supplies, printing machine and supplies, faxmachine and most importantly, the start-up equipments. The machine will be placed either in the residence of thepartners.LeveLuk SD501 Kangen water machine---Installment of the diverter, Setting up the unit(connect the water supplyhose), Plug-in the power cord, Click on Kangen water (pH 8.5)---Run water(for the first time or after exchangingfilter)slowly for 3 minutes, until the arrow comes out in the LCD(screen)---Ionized water is flowing---Share FREEKangen Water to customers.Demonstration will usually be on Sundays from 1-3pm(outdoor), 7-8:30pm(indoor) which include pH testing, discusshow to connect the machine properly to the faucet and putting the filter, clicking buttons for the kind of waterneeded depending on pH level, finally distribute water. Discuss how the compensation plan works, this is forprospected agents. SALES FORECASTWe have 50 units sold for the first year, 18 direct customers, for a total commissions of E8,470.00. We will continue nd rd ndto the 2 and 3 year until we reach the 6A rank. Extension of target market maybe done on the 2 year. We willextend the promotion of the product to doctors, hospitals, gyms, skin care clinics and home for the aged institutionsand to nearby cities of Rome. See Annex I.SALES VOLUME ndWe intend to have 100 or more unit as per group sales in the 2 year to reach the rank of 6A. From 18 direct sales, 16has sold 32 units. We need more or less 30 direct sales to reach our target group sale of 100 units. The only thing thathinders us from meeting that gross sale is when the direct sales becomes frozen, and even the indirect customers.Limited time on promotion and demonstration could also put us in the difficulty of attaining our target sale. 15
  17. 17. PRODUCTION COSTTotal production cost for 3 years projected business activity is 5,421.485.00 euro. So every year there will be anamount of E1,800.30 total cost of production. Yearly FIXED COST =1,066.98; VARIABLE COST=733.32.PRICINGThe price of the LeveLuk SD501 water machine is fixed. Payment could be done in 3, 6, 10 and 16 monthly terms.SALES REVENUE rdOn the first year of the business, earnings from customer segments will move upward beginning on the 3 month ofthe year. On the first 4 direct customers(new distributors), we will earn 910, 770, and 2,170 respectively. See Annex II. FINANCIAL ANALYSISBREAK-EVEN th thThe point of break-even is on the 15 machine sold, on the month of May, 2013, 5 month of the first year of thebusiness where the amount of income is equal to the amount of cost that is around 1,800.00euro.CAPITAL SPENDINGShare from the partners will be the initial capital of the business. This will be use to purchase the start-upkit/equipment licensing them to independently promote, distribute and sell them in the market.STAFF COSTWages and incentives of the partners will come from the commissions earned. This will be divided into 2 on the endof each year.BALANCE SHEETIt contains only the Assets since we do not have liabilities. See Annex III. 16
  18. 18. RISK ASSESSMENTStrengths Weaknesses- Team has good experience in customer relationship - We are a new player in a highly competitive industry.management. - The team needs to gain further knowledge on the- Location is familiar to the customers product and marketing.- Strong relationship with supplier - Business model is easy to copy.- Partners are hardworking and skilful entrepreneurs- Supplier company is awarded by different body awards.- The business opportunity is dynamic and offers thebest for clients health and wealth.Opportunities Threats- To develop the program in many languages to adapt to - Latest invention of the same machine.the needs of our customers. - International competitors can enter - New entrants.- Educational allowances- Less requirements needed.- Greater income.- Purchasing power of customers will greatly be affectedby their emphasis on the value of health. REFERENCE LIST 1 2009 Star Creative, LLC KangenReports.com Rev3.09 2 markcristal@yahoo.com 3 LeveLuk SD501: Reference: https://www.enagic.com/technology_products.php#p=sd501 www.enagic.com ANNEX INDEX Annex I. Sales Forecast Annex II. Sales Revenue Annex III. Balance Sheet/One-year Cost Structure Annex IV. Income Statement Annex V. Sample Questionnaire Annex VI. Reading Materials 17
  19. 19. Annex II KANGEN RICHNESS Sales / Revenue Year 2013First year Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalUnits sold (P.S.) 1 1 1*2A 2 1*3A 2 1*4A 2 2 2 2 1 18 D.S.Comm./unit sold 70 70 140 210 210 280 280 280 280 280Ins./cash/ A.R. 105 105 350 210* 315 315 420 420* 420*2 420* 420* 700 AR 5,355.00 2 *2 2 2 2Total P. Comm. 70 70 350 280 210 420 280 560 560 560 560 700 E4,620.00Units sold by 1A 1 1 1 1 1 1 1 2 0 1Comm./unit 70 70 70 70 70 70 0 70Ins./cash/ A.R. 105 105 105 105 175 175 105 105* 105 AR 840.00 2Total Comm-1A 70 70 70 70 175 175 70 140 0 70 E910.00 ndUnits sold by 1A 2 1 2 1 1 2 1 1 0 1 1Comm./unit 70 70 70 70 70 70 70 0 70 70Ins./cash / A.R. 105 105* 105 105 105* 105 105 105 105 AR 1,155.00 2 2 ndTotal Comm-1A 2 70 140 70 70 140 70 70 0 70 70 E 770.00Units sold by 2A 2 1 1 1 2 1 1 2Comm./unit sold 140 140 140 140 140 140Ins./cash/ A.R. 210* 210 210 350 350 210 210 210 AR 1,680.00 2 *2Total Comm-2A 280 140 140 350 700 140 140 280 E 2,170.00GROSS INCOME E 8,470.00
  20. 20. Annex III KANGEN RICHNESS Balance Sheet As of December 31,2013ASSETSCurrent AssetStart-up Kit 4,524.785EquipmentComputer E 850.00less: Accumulated depreciation (340.00) 510.00Printer 50.00less: Accumulated depreciation (25.00) 25.00Total Assets E5,059.79 One-year Cost Structure Monthly, Quarterly,Yearly Marketing Costs FIXED COSTS Monthly Quarterly Yearly SD501 machine 55.13 165.4 661.6 Electrolysis .416 1.25 5.00 enhancer pH tester .25 .75 3.00 Pre Filter 20.00 60.00 240.00 High-grade Filter 4.4 13.3 53.3 ORP tester 2.1 6.3 25.3 Chlorine Tester .29 .875 3.50 Brochures E .138 .416 1.66 Brochures I .055 .166 .66 VAT 19% 4.86 14.59 58.36 Shipping 1.22 3.66 14.6 Total Fixed 88.859 266.707 E1,066.98 Costs VARIABLE COSTS Church donation 10 30 120 Cellphone bill 20 60 240 Transportation 25 75 300 Advertising, printing 5.55 16.7 66.6 Miscellaneous .55 1.66 6.6 Total Variable E61.05 183 E733.32 Costs TOTAL Cost 149.909 450 1,800.3
  21. 21. ANNEX IV KANGEN RICHNESS Income Statement For the Year Ended December 31,2013RevenuesTotal units sold: 50 LeveLuk SD501 Kangen Water MachinePersonal Sales Commission 2(1A=175) E350.00 3(2A=350) 1,050.00 3(3A=525) 1,575.00 10(4A=700) 7,000.00 E9,975.001A Sales: 10(175) 1,750.00 21A Sales: 11(175) 1,925.002A Sales: 11(350) 3,850.00Total Sales E17,500.00less: Accounts Receivable Personal Sales: E5,355.00 1A Sales: 840.00 2 1A Sales: 1,155.00 2A Sales: 1,680.00 9,030.00Gross Income E 8,470.00Less: ExpensesTotal Marketing cost E 1,800.00Net Income E 6,670.00Less: Retained Earnings (10%) 667.00TOTAL NET INCOME for Year 2013 E 6,003.00Distribution of Net IncomeHaydee Lunar-Panganiban E 3,001.50Teresa Populi-De Chavez E 3,001.50
  22. 22. Leadership and Social Entrepreneurship 8 Business Plan KANGEN RICHNESS via Giulia di Gallese 7, 00151 Rome, Italy Haydee Lunar-Panganiban Teresa Populi-De Chavez March 25, 2012 Rome, Italy
  23. 23. Table of ContentsExecutive Summary…………………………………………………1Organization and Structure……………………………………..2-3Product and Services……………………………………………….4-5Theory of Change…………………………………………………….6Business Strategy…………………………………………………….6-9Market/Customer Analysis………………………………………10Industry Analysis……………………………………………………..10Competitor Analysis…………………………………………………11Marketing and Sales…………………………………………………12-14Operational Strategy……………………………………………….15Financial Analysis…………………………………………………….16Risk Assessment………………………………………………………17AnnexSales Forecast…………………………………………………………ISales Revenue…………………………………………………………IIBalance Sheet & Cost Structure………………………………IIIIncome Statement………………………………………………….IVSample Questionnaire…………………………………………….VReading Materials…………………………………………………..VI