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  1. 1. . There are a growing number of consumers eager for products whose production does less harm to the environment. Green marketing is the process by which businesses produce, label, distribute, and/or sell goods and services (many times at a premium price) to consumers who prefer purchasing products that are generated in a more environmentally-responsible manner. GREEN’S – Environment friendly paper products will offer an integration of services- designing, printing and publishing it all under one roof. The product range would include calendars, visiting cards, diaries, invitation cards, stationery articles, greeting cards, brochures and promotional stationery. These will be totally natural and eco-friendly. Amongst the strong competitors are Orchid’s and Navneet’s Eco-buddy. However, Orchid’s is a highly premium product and Navneet’s Eco-buddy lacks mass awareness. I intend to position my product in the unfilled gap by these major players. Market research shows a huge demand for such products. It however demands increase in awareness about place of purchase, credibility and availability. These will be dealt by good advertising and positioning strategies. Using green seal certification, the credibility of my claims will also improve. The price premium compared to the regular products would vary in the range of 10-15% across the product categories. Green’s target audience would mainly include teenagers, college students, professionals and people in the middle, upper middle and the upper class. Beside retail sales, corporate houses will also be targeted. Brand building and awareness will be the two main objectives of the communication strategy. Once a strong market position is gained the brand name can be extended to other product categories. Greens - 1 - Executive SummaryExecutive Summary
  2. 2. . GREEN’S – Environment friendly paper products will offer an integration of services-designing, printing and publishing it all under one roof. GREEN’S – Environment friendly paper products forte is in conceptualizing and designing of calendars, visiting cards, diaries, invitation cards, stationery articles, greeting cards, brochures and promotional stationery. These are totally natural and eco-friendly; these products can be customized in terms of color, quality, size and printing. GREEN’S can also supply multipurpose paper, which is made of wood free paper. It has a prestige range of premium quality office paper designed for most demanding office printing and copying technologies. This stationery will be suitable for Laser, color, inkjet, monochrome printers. Also the Fax rolls of such paper shall be made available to as meet the complete requirement of any corporate or business house. It will be available in both A4 and A5 sizes in packets of 100,250 and 500 sheets. WHY THESE PRODUCTS? IS THERE ANY DEMAND?? There are a growing number of consumers eager for products whose production does less harm to the environment. Green marketing is the process by which businesses produce, label, distribute, and/or sell goods and services (many times at a premium price) to consumers who prefer purchasing products that are generated in a more environmentally-responsible manner. To tap into and expand this market, firms operating in a more "environment friendly" way work to distinguish them as "green". "Green” consumers, in turn, create more demand (and business opportunities) for goods and services whose production and consumption incorporate environmental and social costs. Greens - 2 - Introduction to the Business Venture Introduction to the Business Venture
  3. 3. . Besides, school children are becoming more and more aware of environmental issues, thanks to the educational packages provided to schools by various environmental organizations. Greens - 3 -
  4. 4. . Stationery products (books, diaries, etc) A positioning map for the category is shown below. A gap is identified wherein my product will be positioned. Environmental friendly * Orchid’s * Green’s * Navneet’s Ecobuddy Low Price High Price * Local brands * Unbranded Non Environment friendly Greens - 4 - Positioning MapPositioning Map
  5. 5. . Availability * Local brands * Unbranded Low Price High Price * Green’s * Navneet’s Ecobuddy * Orchid’s Awareness * Unbranded * Local brands * Green’s High Price * Orchid’s * Navneet’s Ecobuddy Greens - 5 -
  6. 6. . • Calendars • Corporate diaries • Visiting Cards Greens - 6 - Product RangeProduct Range
  7. 7. . • Wedding cards • Invitation Cards • Stationery Articles High quality paper is used for manufacturing the Notebooks and Note pads. Ideal for corporate and individual’s these are available both as spiral bind and normal bind. These books can also be printed with custom design stationery as per clients design requirements. Greens - 7 -
  8. 8. . • Greeting Cards • Brochures, leaflets, danglers • Promotional Stationery - Notepads and Long exercise books Greens - 8 -
  9. 9. . • Gift boxes • Paper carry bags Greens - 9 -
  10. 10. . Name Age Gender – Male / Female Education Occupation / Profession Family income per month < 10,000 between 10,000 and 20,000 Between 20,000 and 40,000 > 40,000 1) Are you aware of eco-friendly (recyclable / reusable / biodegradable) products? Yes / No 2) Which of these eco-friendly products have you heard of? o paper o diaries / books o pencils o match-sticks o bags o khadi / jute products o cosmetics o liquid cleaners o others (specify) 3) Have you ever bought any such product? Yes / No If Yes, please specify, • Which product • Which brand • From where 4) Did you experience any kind of dissatisfaction from such products? Yes / No If yes, specify 5) Any specific reason as to why have you not tried / purchased other such products? Greens - 10 - QuestionnaireQuestionnaire
  11. 11. . • price • lack of awareness • unavailability • quality • did not know of any shop selling such products • lack of credibility / lack of belief about claims being true • others (specify) 6) You will definitely believe claims about a product being eco-friendly? • if raw material used is known • if production process of the product is known • if it comes from a reputed company • if it has a certification saying so • others (specify) 7) How much extra are you ready to pay for an eco-friendly product when compared to a similar other product? o 2% more o 5% more o 10% more o 15% more o 20% more o 30% more 8) Rank in terms of 1 to 5 (1-highest and 5 -lowest) your perception about the features in each of the product categories Paper Cosmetics Liquid Cleaners Khaadi/ Jute Products Quality Price Credibility of Claims Awareness Level Greens - 11 - Market Research AnalysisMarket Research Analysis
  12. 12. . SAMPLE SIZE – 75 RESPONDENT PROFILE AGE GROUP 20 – 25  25 25 – 30  25 30 – 35  25 GENDER M  35 F  40 EDUCATION Graduates - 55 Post – graduates – 20 FAMILY INCOME PER MONTH <10,000 - 3 Between 10,000 and 20,000 - 35 Between 20,000 and 40,000 - 29 > 40,000 - 8 Greens - 12 -
  13. 13. . AWARENESS LEVELS OF PEOPLE FOR DIFFERENT RECYCLED PRODUCTS Paper aw are 63% unaw are 37% Diaries/books aw are 47%unaw are 53% Pencils aw are 37% unaw are 63% Matchsticks aw are 33% unaw are 67% Bags aw are 47%unaw are 53% Khadi/jute aw are 70% unaw are 30% cosmetics aw are 30% unaw are 70% Greens - 13 - Results of the Market SurveyResults of the Market Survey
  14. 14. . REASONS FOR NOT PURCHASING RECYCLED GOODS Reasons for not purchasing recycled goods Price 15% Lack of awareness 21% Quality 11% No shops 28% Lack of credibility 25% EXTRA PERCENTAGE THAT PEOPLE WERE WILLING TO PAY FOR RECYCLED/ECO FRIENDLY GOODS people willing to pay extra money for recycled goods 5% extra 19% 10% extra 30% 15% extra 29% 20% extra 19% 30% extra 3% Greens - 14 -
  15. 15. . WILL BELIEVE CLAIMS ABOUT A PRODUCT BEING ECO-FRIENDLY WILL BELIEVE CLAIMS ABOUT A PRODUCT BEING ECO-FRIENDLY raw material used known 23% production process known 13% reputed company name 26% certification 35% others 3% Greens - 15 -
  16. 16. . High percentage of respondents were aware of eco-friendly books, paper and khadi/jute products available. However, the two main reasons why people did not purchase these products were • Non-availability • Lack of credibility Thus, the main objective would be • Making the product available • Credibility However, when a few neighborhood retailers/stationery shops were interviewed, it was found that they did stock eco-friendly books. But the consumers didn’t know about this. Thus, there was awareness about the product being available, the products were also available; BUT THERE WAS LACK OF AWARENESS ABOUT “WHERE” THE PRODUCTS ARE AVAILABLE. Thus, advertisement is the most essential element to make the brand a generic name in this category. The other major deterrent to purchase was ‘lack of credibility’. It was also found that certified products were easily trusted. Thus, greens would overcome this problem by using a seal of certification on its products. Demand for eco friendly products in various product categories was seen. However, the product range would initially be restricted only to the paper products as entry in this category and getting a good hold in the market would be relatively easier. Greens - 16 - Market Research – Findings and Implications Market Research – Findings and Implications
  17. 17. . The brand name would later be stretched across other product categories. Our products are placed in the win-win quadrant as • The degree of compromise is low, and • The degree of confidence is high Thus the switching of consumers in this category will be achieved with comparatively less efforts than it is in other categories. Thus once a trusted brand name is created and embedded in the consumers mind, we will then stretch the brand name to other product categories. Greens - 17 - The Green Purchase Perception MatrixThe Green Purchase Perception Matrix
  18. 18. . Greens - 18 -
  19. 19. . Conventional marketing wisdom has always stressed “know your customer.” By understanding the subtle variables that drive green consumers, clean power providers may be able to convince more people to buy their product. Green consumers are often motivated by four needs: • the need for information, • the need for control, • the need to make a difference, • the need to maintain a lifestyle. All four profoundly affect the way clean power should be marketed and advertised. Green consumers strongly desire information on green products. Consumers want to know what the product is, where it came from, and what environmental benefits it offers. As consumers begin to understand life-cycle impacts, they want to know how and where a product was manufactured and whether and how it can be recycled. Because many people believe that both their own health and that of the Earth are threatened, they are buying green products to prevent environmental damage and to protect their health. People want to know that products are environmentally safe. The sheer range of green buzzwords — organic, natural, non-toxic, recyclable, CFC-free, ozone-safe, biodegradable, pesticide-free — indicates that consumers are giving increasing weight to product attributes, even those they are unable to see or to feel. People who thirty years ago might have applauded products that had been chemically enhanced, sanitized, or pasteurized, now prefer products touted as “natural” or “healthy” or “safe.” Greens - 19 - Knowing Green’s ConsumersKnowing Green’s Consumers
  20. 20. . Green consumers want to limit their own environmental impacts. They do not like buying products that will harm the Earth or make them feel guilty. Since they often have imperfect information, many prefer to buy from companies they believe are trustworthy. A brand name provides an added layer of assurance that this product is not harmful. Corporations must reciprocate this trust, acting on their customers’ concerns. Most green consumers enjoy their current lifestyle. They want to purchase products and services that offer environmental benefits, but do not require them to change their habits or consumption patterns. Ideally, helping the environment should be easy and convenient. Green consumers want environmental protection built-in, institutionalized. A system where doing good is like falling off a log, where the natural everyday acts of work and life accumulate into a better world as a matter of course. This suggests an opportunity for clean energy because it is an affordable, easy to buy, environmentally sound alternative to the existing energy mix. Although green consumers want to have more information, want to have control, want to make a difference, and want to maintain their current lifestyle — they are not interested in making tradeoffs. In other words, they also judge green products by price, performance, convenience, and availability, the conventional buying criteria. The consumers will pay a significant premium — up to 15% —for products that offer a perceived health, environment, or quality of life benefit. Because value resides in a consumer’s perceptions, the perceived costs of a product or service are not limited to its dollar price, just as perceived benefits are not limited to its direct, tangible features. Consumers are now paying significant premiums for organically grown baby food, natural soft drinks, and unbleached coffee filters. Over time, higher prices should be less of a problem for some green products because of economies of scale and declining costs. At this point, however, some green products are at a competitive disadvantage. On the Greens - 20 -
  21. 21. . other hand, price premiums can tap into the belief that if a product is more expensive it must be better. However they are priced, green products must perform as well as the alternative. Only the most committed environmentalist will buy a poorly performing green product twice. Because the abysmal performance of some early green products discouraged consumers, the misconception remains that some green products are too expensive and may not work. Similarly, green products should be as convenient as conventional alternatives. Greens - 21 - Classification of ConsumersClassification of Consumers
  22. 22. . • Trueblue Greens: Consumers who engage in a number of environmentally motivated activities, ranging from recycling to various green shopping choices . The Trueblues do not typically accept high environmental price premiums. • Greenback Greens: Those who claim willingness to pay price premiums for greener products, but who are generally too busy to pursue other ecological practices. • Sprouts: People who are very concerned about the environment and say they want to do more to protect it, but who haven’t yet adopted many environmental practices. Note: Consumers almost always overstate their green buying intentions. In order to gauge production and marketing efforts realistically, we need to be wary of people’s tendency to overstate environmental behavior. Market research needs to be conducted after the first few months of launch to find out where the consumers lie amongst the 3 categories. Sales forecasts will have to be revamped accordingly. Also, the marketing strategies will have to be revamped. Greens - 22 - Marketing PlanMarketing Plan
  23. 23. . Any marketing plan necessarily requires answering these few basic questions: • Who are we? • Who is our target audience? • Who are our competitors? • Where are we right now? • Where do we intend to be? 1) Who are we? We are manufacturers of environment friendly paper products. Our product range includes long books, greeting cards, visiting cards, diaries, planners etc. We intend to serve both B2B as well as B2C markets. 2) Who is our target audience? This is one question, which needs to be answered very carefully because any mistake in identifying your target market can lead to failure of all your marketing efforts. For this reason, I conducted a survey all over Mumbai to find out who is our target market, where are they located and what should be our communication strategy to reach them. From the results of the survey, I segmented the population into various categories- • Teenagers • College students • Working individuals • People in the higher income group Accordingly, I decided that an ideal target market for us would be a combination of these various segments. So I decided on the following target market- Greens - 23 -
  24. 24. . 1) Youth segment – population in the age group of 15 to 35 years. 2) Higher income group – population with an annual income of 2.25 lakhs and above. Taking these factors into consideration, I felt that an ideal place to launch our product will be Mumbai as it fits in all our criteria. Also our product category being fairly new I would like to start of with Mumbai as a TEST MARKET and then go on for a national launch. I also intend to target companies with a turnover of 1 crore and above. 3) Who are our competitors? As already mentioned, this product belongs to a product category, which is a fairly new one with not many established brands. Environment – friendly products are yet to find acceptance in Indian markets, although in West they are a huge hit. The only direct competition this product has is from Navneet, which also manufactures eco- friendly books under the name ECO-MATES. They are priced higher than the normal long books and serve a niche market. Apart from navneet, we would be facing a whole lot of indirect competition from manufacturers of ordinary branded long books like Vimal books, Crazy world Books by Sundaram paper products ltd. Also our competitors will be various unbranded local manufacturers as even these books have a huge market. in the greeting cards category our competition will be with Archies and ITC who manufacture cards from recycled paper. Also Ngo’s like CRY, Help age India will also pose indirect competition to our products. For our other products like diaries, a visting card etc. there is no particular brand that is most sought after. The purchase decision is influenced mainly by price, design and availability of the product. 4) Where are we right now? Greens - 24 -
  25. 25. . Before deciding the future course of action it is very important to know where this product stands at present in the market place. In our case the situation right now is quite grim. This product belongs to a product category of paper products, which is a LOW-INVOLVEMENT product category. To add to our problem the market for eco-friendly paper products is even smaller than that for normal paper products. Another major problem with our products is “Lack of Awareness”. The survey revealed that a huge segment of the population is unaware of any such products. But as every dark cloud has a silver lining there is hope for us too. The market for eco- friendly products though being small has a highly dedicated fan following. Consumers of these products are ready to go length and breadth till they come across a genuine and reliable product. Thus although we are targeting a niche market we do realize that once captured these customers will become our loyal followers for years to come. Also from our survey we found out that there is a huge potential for these products in the market, which has remained untapped merely due to lack of any “Brand building” efforts. There are people who use similar priced products and are not users of eco-friendly products due to lack of awareness and also due to unavailability of these products in the market. 5) Where do we intend to be? After going through the various problems as well as opportunities that exist in the market I have realized that the entire thrust of our marketing efforts should be – • Creating awareness about our product category • Developing a sound “Brand Image” • Excellent communication • Easy accessibility of our products Thus I intend to establish this product as a “Brand par excellence”. Greens - 25 - Targeting CorporatesTargeting Corporates
  26. 26. . Organizations are responsible to a number of different stakeholder groups, including owners, customers, suppliers, employees, financial institutions, government regulators, and the public at large. Any one action that an organization can take might please some of these stakeholders while, at the same time, alienating others. Under some theories of the firm, corporations exist to maximize shareholder wealth. That is, the stockholders (as owners) are the primary stakeholder group; and the preferences of the other stake-holder groups are somehow subordinate to owner preferences. Even if one accepts this extreme theory of owner self-interest, there are still a number of circumstances in which green advertising and/or green marketing would be advisable or profitable (for owners to pursue). These circumstances include the following three possibilities: a) the emergence of a green consumer segment; b) the greening of other stakeholder groups, notably owners; and c) the increase in responsible business development. Our main targets would be • Hotel industry • Schools/Institutions • Cosmetics industry • Healthcare industry • Pharmaceutical industry Greens - 26 - Communicating StrategiesCommunicating Strategies
  27. 27. . COMMUNICATION STRATEGY The main aim of our marketing efforts is to build a strong “Brand Image”. For this we need to educate our audience and create awareness about our products. As a result we intend to spend heavily on communication and sales promotions. Name of the brand The first step in our marketing program was to select a suitable name for our brand. Various options that came in our mind were as under – • Green’s • Green-addiction • Green-Gen • Eco-friends • Natural • Go-Green • Earth-mates, • Eco-Mates • Green-Mates • Paper-Mates. After brain storming over all these options the name, which was unanimously selected by our entire group, was “Green’s”. The reason for choosing this name was that it instantly gives the eco-friendly linkage to our product and is also easy to recollect. Greens - 27 -
  28. 28. . Communication • Alliances with other companies, environmental groups, universities, and research organizations. • Combining public relations, imaging, and other marketing/communications efforts with traditional advertising. • Communicating through sources people trust. Greens - 28 -
  29. 29. . Objective of advertising - Creating Brand Awareness. Target Audience • Youth with an annual income of 2.25-lakh p.a and above. • Corporates. Message strategy This refers to the content of the advertisement. As we intend to educate our audience about our products, the main thrust will be to put forth the environmental benefits of making eco – friendly products. Underlying advertisement appeal • fear • guilt • You can make a difference • bandwagon • social responsibility • comparision • exempler • celebrity endorsement Greens - 29 - Advertising StrategiesAdvertising Strategies
  30. 30. . Message tactics This refers to the execution of the advertisement. Taking cue from “experiential marketing”, we would be making use of the “think” and “feel” appeal to promote our products. Also we would like to project our products as a part of a person’s identity. Taglines • Don’t let your choices ruin the beauty of nature • Solutions for a greener tomorrow. • The earth is the only home we’ve got. • Savour the joy of doing things right. Greens - 30 -
  32. 32. . PRINT ADVERTISEMENT – 2 You are highly choosy about every thing you use, be it your bag, shoes clothes, perfumes anything. But when it comes to books you don’t even put a second thought before you buy. You know fully well THAT YOUR CHOICES TALK ABOUT YOU. so why project yourself as SELFISH, RUTHLESS AND CRUEL. The paper you use is made by cutting a beautiful tree that can make this world a better place to live. Let us reveal your true self … CONTEMPORARY, STYLISH YET RESPONSIBLE AND SENSITIVE. DON’T LET YOUR CHOICES RUIN THE BEAUTY OF NATURE SWITCH TO: GREEN’S ENVIRONMENT FRIENDLY PAPER PRODUCTS SOLUTIONS FOR A GREENER TOMMOROW!!! Greens - 32 -
  33. 33. . SPECIMEN OF PRINT ADVERTISEMENT TARGETTING CORPORATES Gifting is an expression of acceptance - acceptance of behaviour, wavelength, thought and goodwill of people. It turns what's insubstantial into substantial, what's unsung into an allegro of joy. We at Green’s realize the importance of corporate gifting and the joy of building life long relationships. This season give a gift that not just touches somebody’s heart but also his soul, because our products are completely environment friendly and do not harm any tree. Choose from our wide range of our products • Calendars • Corporate diaries • Visiting Cards • Invitation Cards • Stationery Articles GREEN’S - ENVIRONMENT FRIENDLY PAPER PRODUCTS SOLUTIONS FOR A GREENER TOMMOROW!!! Greens - 33 -
  34. 34. . The media decisions were made taking into consideration the product category, the target market and reach of the media. Ours being a low –involvement product category and we intend to give extensive information about our product to the target audience. For the time being we do not intend to make use of television as a medium to communicate with our audience. PRINT Newspapers Our target audience mainly being the educated English speaking crowd we would be placing our ads only in English newspapers. Following are the newspapers we would be using- • Bombay times- as we are test marketing only in Mumbai. • Sunday times- For Corporate advertising • The Indian Express • Midday Magazines a) For B2B market Communication for B2B market will be mainly through magazines and trade journals. Following magazines will be used- • Business world • Business today • India today Greens - 34 - Media MixMedia Mix
  35. 35. . • Outlook b) For B2C market Following magazines will be used to target this market- • Femina • Savvy • Health • Filmfare • Reader’s digest Point of sale displays Point of sale displays and brochures for providing more in-depth information than that can be offered on labels. These would catch the eye and communicate the uniqueness of the company’s green products. These would also have statistical information and graphs/charts for easy visual understanding of our products. The catalog would be designed to teach consumers about environmental issues. The text would highlight on how the company’s products can yield measurable environmental benefits. RADIO This medium will be used to target the college going audience as well as for people going to office by their own vehicles who tune into radio. • GO 92.5 FM • CITY 91 FM • MIRCHI 98.3 FM • RED 93.5 FM Greens - 35 -
  36. 36. . INTERNET This is another powerful medium, which is being used extensively by many people to make purchase decision. We intend to have our own website which speaks about our products, the production process, the various events sponsored, press releases and such other details. We also intend to place advertisements for our products on the following two sites. • • Greens - 36 -
  37. 37. . A sales promotion is an activity intended to stimulate purchases by adding an incentive to the inherent features of the product or service offered. We intend to accomplish following marketing objectives from our sales promotions: • Encourage an initial purchase. • Reward repeated purchases and thus encourage even more shopping activity. For B2C market • On purchase of 10 long books one telephone diary free. • On purchase of 5 greeting cards get one card free. • On purchase of our products worth Rs.300 get 5% cash discount. For institutional sales This market will primarily be served by direct selling. We intend to hire smart salesman with good communication skills to increase our sales potential. For this market there will mainly be cash discount of 10% on purchase worth Rs.25000-Rs.50000. For purchase above Rs. 50000 the discount will increase upto 25%. Sponsoring events • On April 22nd which is celebrated as earth day we would be holding contests like “earth quiz” to promote the cause of sustainable ecological development. • Similar events will be held on June 5 - World Environment Day. Greens - 37 - Sales PromotionSales Promotion
  38. 38. . • Also we intend to use “Miss India- Earth” as a brand ambassador for our product in future. Green Club This would be for our loyal customers. However, this would be implemented only after one year of operation. Greens - 38 -
  39. 39. . For our products we need to focus on public relations just as much as we focus on advertising. We therefore intend to pay special attention towards • Developing community out reach programs involving the company and the areas it serves. • Working with corporate customers to “partner” environmental programs specific to their industries. • Educating the public and the media about the environmental issues. • Involving knowledgeable technical people – not just PR professionals to respond to environmental questions likely to be asked by the Media. • Collecting stories of employees' green initiatives and trying to publicize them, being concrete and educational in approach. • Anticipating bad press, and preparing information to minimize its impact. • Combine public relations, imaging, and other marketing/communications efforts with traditional advertising. • Educational pieces written by neutral authorities or company experts, along with traditional visual and image ads. • Environmental endorsements. Greens - 39 - Public RelationsPublic Relations
  40. 40. . Besides, the various events we intend to hold will also help in PR • On April 22nd which is celebrated as earth day we would be holding contests like “earth quiz” to promote the cause of sustainable ecological development. • Similar events will be held on June 5 - World Environment Day. • “Miss India- Earth” as a brand ambassador for our product in future. Paper production The paper production will be outsourced to Tamil Nadu Newsprint & Papers Limited Tamil Nadu Newsprint & Papers Limited Cane Fields paper is manufactured in India by an International Standards Certified company, Tamil Nadu Newsprint & Papers Limited - better known as TNPL. TNPL has been producing paper for more than 22 years. TNPL is a company committed to manufacturing paper from renewable, non invasive resources, principally bagasse (sugar cane waste). It is now recognised as the world's largest producer of high quality newsprint from bagasse. The Hindu Times is printed on TNPL Paper - the only Newsprint in the World produced wholly from bagasse. The newsprint has high tensile strength and excellent reel conditions that ensure a trouble free run till the core. The manufacturing process The principal raw material used for the production process is bagasse. Bagasse is the solid fibrous material left after the extraction of juice from the sugar cane. The use of bagasse, a renewable resource, helps prevent the denudation of 30,000 acres of forest land a year. The manufacturing process is not only extremely energy efficient but TNPL are also energy self Greens - 40 - ProductionProduction
  41. 41. . sufficient from wind and co-generation. This shows the eco- friendly way to make high quality papers without inflicting irreversible damage to the environment. Further processing at the manufacturing unit The paper obtained from TNPL will be further processed at the company’s manufacturing unit. This is where the various products will be made. The various processes that would happen at the manufacturing unit would be, • Cutting of paper • Printing o Regular printing for books, diaries, etc o Customized printing for products like business cards, invitation cards, brochures, etc as per the orders. • Binding of paper into books • Making of paper bag, gifting boxes, etc • Packaging These finished goods would then be sent to the warehouses for further distribution across the city. Greens - 41 -
  42. 42. . All the products will necessarily display • the company name, • logo, and • the Green seal. Besides these, wherever feasible, the following info will also be specified • Product details • Contact address • Phone no. • Website address • Specifications about how our product protects the environment Greens - 42 - ProductionProduction
  43. 43. . A vital step in green marketing is ensuring consumers that the product was produced in a manner that was environmentally sound. This is done by "certifying" products - kind of like a "Good Housekeeping Seal of Approval". The product or input into a product (for example, timber that has been harvested at sustainable rates using low-impact logging practices) is then labeled so consumers are provided with the necessary information to make educated choices. There are numerous national and international programs for certifying and labeling timber and agricultural products and consumer goods whose production and use are less harmful to the environment (i.e. energy efficient lighting, chlorine-free paper, etc.). For durable consumer goods, the field of green certification and labeling is relatively new and the two key domestic organizations, Green Seal, a nonprofit organization, and the for-profit Scientific Certification Systems (SCS -formerly known as Green Cross) have only been in existence since 1990. Greens - 43 - Certification for Green ProductsCertification for Green Products
  44. 44. . Green Seal certifies products that meet their product-by-product environmental standards and rewards these companies by allowing them to use their emblem - a blue globe with a green check mark. Green Seal only tests products when the manufacturer pays for the testing. However, Green Seal helps create demand for the product by identifying buyers for its Environmental Partners Program. By using this certification, the credibility of our claims with respect to the production process of our products will improve. Greens - 44 - The Green SealThe Green Seal
  45. 45. . With current level of operations, the hierarchy in the sales force will be : SALES HEAD There would be one sales head for the entire city of Mumbai. AREA SALES EXECUTIVE There would be 7 area managers across Mumbai. Each area manager would be responsible for achieving the sales targets of their areas. With 7 distributors across Mumbai, each sales manager would be responsible for getting sales from one particular assigned distributor. Greens - 45 - Sales Head Area Sales Executive Sales ForceSales Force Junior Sales Officers
  46. 46. . JUNIOR SALES OFFICERS Initially, there would be 2 sales representatives under each area manger. Thus the total number of sales representatives would be 14. However, the number of sales representatives recruited would keep increasing steadily with the increase in the acceptance level of the product in the market. Greens - 46 -
  47. 47. . Greens - 47 - Institutions/ Schools/ Corporates Supplier Retailers Distributors Super Stockist Depot Company (Manufacturing unit) Distribution ChannelDistribution Channel
  48. 48. . Direct channel This would takes place only in case of: • Large orders • Customization Channel members • Depots – 1 (Bhiwandi) • Super stocktists – 2 • Distributors – 5 Selection of super-stockists Greens - 48 - Institutions/ Schools/ Corporates Company (Manufacturing unit)
  49. 49. . • Financially viable • Market image • Good relations • Work force • Infrastructure Important considerations while selecting distributors: • optimize transportation costs, • ensure no ‘out of stock’ problems at the retailers • average time for replenishment at the retailers Retailers • Retailers are identified according – to the sales generated by them – Cost to sales ratio in visiting them • classification – Class A - Are visited once a week – Class B - Are visited once a fortnight – Class C - Are visited once a month Greens - 49 -
  50. 50. . Margins • Super stockist - 3% + 2% (cash discount) • Distributor – 6% +2% (cash discount) • Retailer – 25% • Supplier – 3% + 6% (cash discount) • Institutions – 25% • 12 to 21 days credit period Greens - 50 -
  51. 51. . Finance Paper Sheets Papers are bought on the basis of GSM i.e. gram per square metre. This is the weight of one sq. metre of paper. Higher the GSM more is the cost. This basically corresponds to the thickness of the paper. When bought in lots of 100 boxes (each box containing 5000 sheets of double papers) this paper is quite cheap as compared to loose or quantity of rim. We being regular buyers, get a further concession. The paper size being A4 (210 mm. x 297 mm.) On these terms we get following cost of paper Cost Per box (5000 sheets) Simple Paper of 75 GSM = Rs. 1250 /- Thick Paper of 95 GSM = Rs. 1700 /- For institutional sales, our target being about 4000 institutions including about 3000 corporates, 100 retail outlets, 400 schools and colleges and 500 other institutions. Expecting at least about 20% amongst them as positive we assume 500 institutions as prospects. Average employee strength for these organisations is assumed to be 250 employees. Similarly as we target the upper middle class and upper class for this niche market, through out Mumbai we expect a customer base of 1000 for products like greeting cards, long books, notebooks etc. These being affordable for middle class. So is assumed for the calculation of Break Even. For other products we assume a customer base of 500 within a year. Calculating break even, we assume some product sales like envelopes, telephone diaries, business cards, promotional material etc. to be distributed evenly in 12 months as they are independent of the period. Whereas some product sales like long books and note books are expected to take place in June or products like calendars or year planner diaries are expected to take place in January. The distribution of sales of products hence has been distributed accordingly. Greens - 51 -
  52. 52. . The contribution margin of different range of products. Items Selling Price (in Rs.) Variable Cost Contribution Diaries Per Unit Executive Diaries 150 100 50 Telephone Diaries 30 12 18 Year Planner Diaries 120 80 40 Per Unit Invitation Cards 5 2 3 Wedding Cards 12 6 6 Greeting Cards 10 5 5 Buss -Cards Per Unit 1.5 0.75 0.75 Books Per Unit Long Book (100 pgs) 25 14 11 Long Book (200 pgs) 40 28 12 Notebooks (100 pgs) 15 8 7 Notebooks (200 pgs) 25 15 10 Stationary Per Unit Covering Material 1.5 0.75 0.75 Envelopes 2 0.75 1.25 Scribble Pads Per Unit Letter Pads 20 10 10 Note Pads 13 7 6 Calendars Per Unit Simple 20 12 8 Designer 45 25 20 Others Per Dozen Paper Carry Bags 36 12 20 Gift Packs 120 60 60 Kid Face masks 36 18 18 Book Marks 18 6 12 Per 100 units Brochures ( 2pgs) 300 150 150 Leaflets ( 1 pg) 50 35 15 Danglers (1 pg) 70 45 25 Annual Reports (50 pgs) 3500 2000 1500 Greens - 52 -
  53. 53. . The Sales Forecast expected for a period of 1 year. Items Institutional Sales Retail Sales Total Sales Diaries Qty. per year Average Requirement x Target Customers Executive Diaries 200 x 500 =100000 500 100500 Greens - 53 -
  54. 54. . Telephone Diaries 200 x 500 =100000 1000 101000 Year Planner Diaries 200 x 500 =100000 250 100250 Cards Invitation cards 250 x 500 = 75000 100 x 1000 = 100000 175000 Wedding Cards Nil 1000 x 250 = 250000 250000 Greeting Cards 3 x 250 x 500 = 375000 8 x 5000 = 40000 415000 Buss -Cards 200 x 500 x 500 =50000000 100 x 100 = 10000 50010000 Books Average Requirement x Target customers Long Book (100 pgs) Nil 12 x 1000 = 12000 12000 Long Book (200 pgs) 10 x 500 = 5000 12 x 1000 = 12000 17000 Notebooks (100 pgs) Nil 12 x 1000 = 12000 12000 Notebooks (200 pgs) Nil 12 x 1000 = 12000 12000 Stationary Covering Material Nil 12 x 1000 = 12000 12000 Envelopes 2000 x 500 = 1000000 25 x 1000 = 25000 1025000 Scribble Pads Letter Pads 40 x 500 = 20000 1 x 500 = 500 20500 Note Pads 10 x 200 x 500 = 20000 1 x 250 = 250 20250 Calendars Simple 400 x 250 = 100000 2 x 500 = 1000 101000 Designer 400 x 250 = 100000 2 x 500 = 1000 101000 Others Paper Carry Bags 10000 x 50 = 500000 12 x 1000 = 12000 512000 Gift Packs 50 x 500 = 25000 5 x 1000 = 5000 30000 Kid Face masks 500 x 20 = 10000 25 x 250 = 6250 16250 Book Marks 200 x 500 = 100000 2 x 500 = 1000 101000 Brochures ( 2pgs) 250 x 300 = 75000 Nil 75000 Leaflets ( 1 pg) 1000 x 50 = 50000 100 x 10 = 1000 51000 Danglers (1 pg) 1000 x 50 = 50000 Nil 50000 Annual Reports (50 pgs) 500 x 400 = 200000 Nil 200000 Greens - 54 -
  55. 55. . Items Selling Price Total Sales value Dec Sales Dec Sales Value Jan Sales Jan Sales Value Diaries Per unit Executive Diaries 150 15075000 100500 15075000 Telephone Diaries 30 3030000 8410 1261500 8410 1261500 Year Planner Diaries 120 12030000 100250 12030000 Cards Per unit Invitation cards 5 875000 6250 31250 6250 31250 Wedding Cards 16 4000000 20830 249960 20830 249960 Greeting Cards 10 4150000 34580 345800 34580 345800 Buss -Cards 1.5 75015000 4166660 6249990 4166660 6249990 Books Long Book (100 pgs) 25 300000 Greens - 55 -
  56. 56. . Long Book (200 pgs) 40 680000 5000 200000 Notebooks (100 pgs) 1.5 18000 Notebooks (200 pgs) 25 300000 Stationary Covering Material 1.5 18000 1000 1500 1000 1500 Envelopes 2 2050000 8542 0 170840 8542 0 170840 Scribble Pads Letter Pads 20 410000 1710 34200 1710 34200 Note Pads 13 263250 1690 21970 1690 21970 Calendars Simple 20 2020000 1010 00 202000 0 Designer 45 4545000 1010 00 454500 0 Others Paper Carry Bags 3 1535760 4266 0 153576 0 4266 0 153576 0 Gift Packs 10 300000 2500 300000 2500 300000 Kid Face masks 3 48600 1350 48600 1350 48600 Book Marks 1.5 151200 8410 151380 8410 151380 Brochures ( 2pgs) 3 225000 6250 187500 0 6250 187500 0 Leaflets ( 1 pg) 0.5 25500 4250 212500 4250 212500 Danglers (1 pg) 0.7 35000 4160 291200 4160 291200 Annual Reports (50pgs) 35 7000000 Total Sales Value 1341003 10 466514 50 127814 50 Cumulative Sales Value 466514 50 594323 00 Greens - 56 -
  57. 57. . Items May Sales May Sales Value June Sales June Sales Value Diaries Executive Diaries Telephone Diaries 8410 1261500 8410 1261500 Year Planner Diaries Cards Invitation cards 6250 31250 6250 31250 Wedding Cards 20830 249960 20830 249960 Greeting Cards 34580 345800 34580 345800 Buss -Cards 416666 0 6249990 416666 0 6249990 Books Long Book (100 pgs) 12000 300000 Long Book (200 pgs) 12000 480000 Notebooks (100 pgs) 12000 180000 Notebooks (200 pgs) 12000 300000 Stationary Covering Material 1000 1500 1000 1500 Envelopes 85420 170840 85420 170840 Scribble Pads Letter Pads 1710 34200 1710 34200 Note Pads 1690 21970 1690 21970 Calendars Simple Designer Others Paper Carry Bags 42660 1535760 42660 1535760 Gift Packs 2500 300000 2500 300000 Kid Face masks 1350 48600 1350 48600 Book Marks 8410 151380 8410 151380 Brochures ( 2pgs) 6250 1875000 6250 1875000 Leaflets ( 1 pg) 4250 212500 4250 212500 Danglers (1 pg) 291200 4160 291200 Annual Reports (50pgs) Greens - 57 - Items Feb Sales Feb Sales Value Mar Sales Mar Sales Value April Sales April Sales Value Diaries Executive Diaries Telephone Diaries 8410 1261500 8410 1261500 8410 1261500 Year Planner Diaries Cards Invitation cards 6250 31250 6250 31250 6250 31250 Wedding Cards 20830 249960 20830 249960 20830 249960 Greeting Cards 34580 345800 34580 345800 34580 345800 Buss -Cards 4166660 6249990 4166660 6249990 4166660 6249990 Books Long Book (100 pgs) Long Book (200 pgs) Notebooks (100 pgs) Notebooks (200 pgs) Stationary Covering Material 1000 1500 1000 1500 1000 1500 Envelopes 85420 170840 85420 170840 85420 170840 Scribble Pads Letter Pads 1710 34200 1710 34200 1710 34200 Note Pads 1690 21970 1690 21970 1690 21970 Calendars Simple Designer Others Paper Carry Bags 42660 1535760 42660 1535760 42660 1535760 Gift Packs 2500 300000 2500 300000 2500 300000 Kid Face masks 1350 48600 1350 48600 1350 48600 Book Marks 8410 151380 8410 151380 8410 151380 Brochures ( 2pgs) 6250 1875000 6250 1875000 6250 1875000 Leaflets ( 1 pg) 4250 212500 4250 212500 4250 212500 Danglers (1 pg) 4160 291200 4160 291200 4160 291200 Annual Reports (50pgs) 2000 7000000 Total Sales Value 1278145 0 1978145 0 12781450 Cumulative Sales Value 7221435 0 9199580 0 10477250
  58. 58. . Total Sales Value 1278 145 0 14041450 Cumulative Sales Value 11755870 0 13160015 0 Cost Sheet Particulars Amt. ( In Rs.) Total Sales Value 134100310 Variable Cost 62206200 Contribution 71894110 Greens - 58 -
  59. 59. . Fixed Cost Machinery 2500000 Land and Bldg 2500000 Administration Overheads 2000000 Advertising and Promotions 10000000 Sales and Distribution 40230093 57230093 Net Profit 14,664,017 Break Even in Rs. = Fixed Costs / ( P/V Ratio ) = 57230093 / (14664017/134100310) = 10,67,48,289 Therefore we would reach a break even with Sales value as Rs.106748289. On seeing the earlier mentioned sales forecast, we see that this amount of sales is achieved in the sixth month. The cumulative sales figure of fifth month being very near to the break even point. So break even period for Green Eco Friendly Paper Products being approximately less than 6 months. Therefore, Break Even Period ~ 6 months. By the end of first year, profits being Rs.1,46,64,017/- Greens - 59 -
  60. 60. . Greens - 60 -
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