Medium Scale Business Modelling

© 2018 Chinthaka Pathirana
MANUFACTURING AND SUPPLYING
OF
RECYCLED RUBBER TOYS
MANUFACTURING AND SUPPLYING
OF
RECYCLED RUBBER TOYS

Executive Summary
Implementation of Eco Friendly Medium Scale Business
Eco Toys Lanka Pvt Ltd, is a Sri Lankan entity established to build up a profit making
company to develop a business, by using the concept of recycling and saving an eco friendly
non polluted environment in Sri Lanka. Focus of the company is to manufacture and supply
toys, mats, accessories used in domestic activities for local and foreign customers. Recycled
raw rubber material is planned to be sourced by using available cost effective ways, which
are already available in Sri Lanka, which will be stream lined and organized by using the
emerging eco trends in the country.
The seriousness of waste problems is on the rise due to a surge in the amount of waste
generated, attributed mainly due to the economic development in Sri Lanka. This is one of
the top priority issues for most of the local authorities because they are responsible for
executing solid waste management. Solid wastes generated in Sri Lanka include paper,
polythene, rubber, food waste, sludge from factories including toxic materials, plastic, etc.
Though there are different ways that has been implemented and executed to collect waste
and to dispose them, the main lacking area of the country is to categorize the waste
depending on the chemical structure and to retreat them accordingly using new
technologies available in the world.
Therefore the selected solid waste for this business is rubber and semi rubber slippers, flip
flops and shoes which are added by a huge number to the environment, which is not
directly addressed as a problem to the country. Usage of rubber slippers, sandals and shoes
has been increased from a huge amount with the no of businesses implemented in the
country to manufacture and import shoes, which are sold for very reasonable prices.
Therefore people have changed their lifestyles to change and experience new trends and
changes in footwear industry, newly introduced to the market. But the actions are not
being taken measurably to dispose the amount of used footwear in line with rate of the
amount of footwear added to the soil rapidly.

This business is focused to use this troublesome material as the raw requirement to our
products, which ultimately cut down the cost of materials, while giving the opportunity of
capturing customers using eco friendly theme.
Recycling material is a topic which is broadly discussed in the world nowadays, which
concentrates its perspectives on methodologies of recycling, expanded from simple
concepts to very high and advanced technological processes. Rubber can be recycled using
very costly processes under high temperature and high pressure, which gives raw rubber
material as the output. On the other hand rubber can be collected from solid waste and it
can be turned in to different shapes after purely clean it which can be used to produce
different objects.
In this concept raw rubber is collected from solid waste of the garbage and purely washed
and cleaned to produce our list of products; toys, mats, carpets, etc. As the process of
manufacturing doesn’t deal with much higher technologies and machineries our targeted
source of human force to word for this organization is middle aged and upper aged men
and women in rural areas who seeks opportunities to earn money to maintain their lives.
As this is a process which ultimately contributes to the environment of Sri Lanka we have
planned to get the government intervention in to this business which can be used as a
marketing tool while using the available, feasible and effective channels such as Zoological
gardens, museums, elephant orphanages, etc, on top of our own sales channels.
Nature of the Business
The seriousness of waste problems is on the rise due to a surge in the amount of waste
generated, attributed mainly to economic development in Sri Lanka. This is one of the top
priority issues for most of the local authorities because they are responsible for executing
solid waste management. Solid wastes generated in Sri Lanka include paper, polythene,
rubber, food waste, sludge from factories including toxic materials, plastic, etc. Though
there are different ways that has been implemented and executed to collect waste and to
dispose them, the main lacking area of the country is to categorize the waste depending on
the chemical structure and to retreat them accordingly using new technologies available in
the world.
Therefore the selected solid waste for this business is rubber and semi rubber slippers, flip
flops and shoes which are added by a huge number to the environment, which is not
directly addressed as a problem to the country. Usage of rubber slippers, sandals and shoes
has been increased from a huge amount with the no of businesses implemented in the
country to manufacture and import shoes, which are sold for very reasonable prices.
Therefore people have changed their lifestyles to change and experience new trends and
changes in footwear industry, newly introduced to the market. But the actions are not
being taken measurably to dispose the amount of used footwear in line with rate of the
amount of footwear added to the soil rapidly.

This business is focused to use this troublesome material as the raw requirement to our
products, which ultimately cut down the cost of materials, while giving the opportunity of
capturing customers using eco friendly theme. Recycling material is a topic which is
broadly discussed in the world nowadays, which concentrates its perspectives on
methodologies of recycling, expanded from simple concepts to very high and advanced
technological processes. Rubber can be recycled using very costly processes under high
temperature and high pressure, which gives raw rubber material as the output. On the
other hand rubber can be collected from solid waste and it can be turned in to different
shapes after purely clean it which can be used to produce different objects.
In this concept raw rubber is collected from solid waste of the garbage and purely washed
and cleaned to produce our list of products; toys, mats, carpets, etc. As the process of
manufacturing doesn’t deal with much higher technologies and machineries our targeted
source of human force to word for this organization is middle aged and upper aged men
and women in rural areas who seeks opportunities to earn money to maintain their lives.
As this is a process which ultimately contributes to the environment of Sri Lanka we have
planned to get the government intervention in to this business which can be used as a
marketing tool while using the available, feasible and effective channels such as Zoological
gardens, museums, elephant orphanages, etc, on top of our own sales channels.
Manufacturing plants are to be located in Anuradapura and Galle areas by purchasing two
lands suitably. As per the labor analyzed labor requirements from these areas it will be
much easy for the business to do recruitments. Raw materials are planned to be collected
from southern coastal belt, Anuradapura, Kurunegala and Kandy areas.
As the second phase of the business our plan is to be collaborated the raw material supply
with few leading rubber flip flop manufacturers in the country to collect used rubber
slippers. That concept is planned to launch as a purchasing discount which is to be offered
to shoe buyers from those manufacturers, where the buyers get a discount by returning
used slippers when they purchase new shoes.

Name and the Logo
The business is developed to earn profits while contributing to the country to save its
environment by reducing solid rubber waste which is added to the soil day by day. To
denote its Sri Lankan affection its name consists of the words “Lanka Co Pvt Ltd”. As we
make toys, but prioritizing the concept of clean environment the main part of the name is
proposed as “Green Toys” which directly gives the customers about the idea of this core
concept. As we use rubber slipper wastage as the raw material of the products logo
contains a green color pair of flip flops with a toy placed in the right corner of the logo. The
part “Lanka Pvt Ltd” is colored in blue to show its identity about the country.
Goals and Objectives
We are a company that is established to make profits. But as an organization which is
highly concerns about the sustainable development of the country we wish to build up and
tickle the people enthusiasm on buying products while supporting the environment
cleanliness. Developing businesses by prompting sustainable development is a business
theme which is on the stage of business discussions as people change their minds more
towards to support the environment with all the activities they perform on their day today
lives. Therefore our goal is to become the best and most popular toys manufacturing firm in
the country by adapting in to newly emerging technologies in the world, for recycling. From
the products we expect to give a high value for the toys people buy from our organization,
as they make an investment to save the environment of the country simultaneously.

Trends in the Industry
Related with the business model of Green Toys Lanka Pvt Ltd, the trend in the industry can
be discussed in two broad topics.
1. Trend of purchasing rubber toys
2. Trend of purchasing eco products
With the developments in Information Technology, smart mobile phone usage, and the vast
developments in communication infrastructures the massage and the information about
environmental pollution is effectively broadcasted among a higher majority of community
these days through web based multimedia channels. This has made a wonderful change in
people mind to think and care about the environment by giving a higher weight age. Based
on this conceptual mind change businesses has made a huge turn in their processes of
manufacturing to focus more on sustainable production methodologies. On the other hand
businesses are newly built to cater products by using the above explained mind change of
people towards eco concepts.
In Sri Lanka this can be seen in mostly with the food items where many number of
organizations are newly started to cater organic foods to buyers. At the same time there are
number of organizations established here to dispose different types of waste materials
from different manufacturing processes in a right way. But no company has ever taken any
step to think about an effective way to collect used shoes and to convert it in to a profitable
product. Therefore we expect to stimulate peoples grown mind set on sustainable concepts
in to a path which they keenly strive to buy eco recycled rubber toys whenever they
purchase toys. Related with the same topic we have observed that number of plastic and
PVC toys which are imported from countries like Malaysia, China, Thaiwan has been
enormously increased during the past few years, with the developed sales channels with
web based technologies.
All together, here in Sri Lanka a market trend is available to buy toys which are
manufactured locally and globally. On the other hand we have a set of consumers who like
to purchase greener products. Our company is going to bridge these both ends together to
offer customer requirement while giving them an opportunity to satisfy their inbuilt
enthusiasm as well.

Business Registration
The company is planned to be registered under COMPANIES ACT, No. 07 OF 2007, of
PARLIAMENT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA. Verification of
the availability of name is already done with the corporation of Registrar od Companies Sri
Lanka. Below documents will be submitted to Companies of Registrar Sri lanka, with a
payment of 19,980 LKR.
Form 1 - REGISTRATION OF A COMPANY
Form 18 - CONSENT AND CERTIFICATE OF DIRECTOR)
Form 19 - CONSENT AND CERTIFICATE OF SECRETARY / SECRETARIES
Incorporation of the company will be done with a public notice, specifying below details.
(a) The name and company number of the company
(b) The address of the company’s registered office.
*public notice- Where public notice of any matter is required to be given under this Act,
that notice shall be given by publishing a notice of that matter-
(a) In at least one issue of the Gazette; and
(b) In at least one issue of a daily newspaper in the Sinhala, Tamil and English (three
papers) languages, circulating in the area in which-
(i) The company’s place of business;
(ii) If the company has more than one place of business, the company’s principal place of
business; or
(iii) If the company has no place of business or the location of neither its principal place of
business nor any other place of business is

Initial investment
Initial investment is structured as per the schedule shown below, containing different
categories of investment under fixed assets.
Investment category Estimated Cost
Lands and buildings
Two manufacturing plants with minimum
requirements for the process Two lands under lease
or rent basis, with small building in Anuradapura
and Galle areas
50,000X6 =300,000 LKR
(key money) 300,000 LKR
Machineries
Fiberglass cleaning baths 2 NOS 13,000 X 4 = 26,000 LKR
Table fixed grinding machines 4 NOS 14,500 X 4 = 58,000 LKR
Hand grinding machines 4 NOS 6,250 X 4 = 25,000 LKR
Wire brushes 20 NOS 500 X 20 = 10,000 LKR
Table fitted cutting machines 2 NOS 35,000 X2 = 70,000 LKR
Cutting tools and accessories 20,000 LKR
Cost of construction of production process 40,000 LKR
Initial cost for electricity account under industrial
tariff rates
20,000 LKR
Vehicles
Vehicles for transporting waste flip flops and shoes
will be sourced by rented lorries in the initial stage
Delivering of finished goods to the retailers will be
carried out by using existing courier services and
rent based vehicles
Health and safety of the employees
Safety equipments (helmets, glouse, safety shoes) 50,000 LKR
Initial Investment for fixed assets 619,000 LKR
Legal requirements
Company registration 19,800 LKR
VAT registration
Payment for company secretaries
Total Estimated Initial Cost 638,800.00 LKR

Operation Process
Operation process is planned to be carried out in a medium scale manufacturing
environment by prioritizing safety measures that will be taken in a manufacturing
environment in the same nature. Open area of the leased land is separated to store received
waste slippers and to categorize them by considering the color of the slippers and the type
of rubber material. After categorizing the raw material those will be washed by using an
acidic compound, water, and a rinsing chemical.
After washing and cleaning the slippers properly those will be stored in a covered,
sheltered store to send for production process. If any parts of the material are not washed
properly or not in good quality to continue the manufacturing process it is sent back to the
washing section again or trashed. Then the washed various colored flip flops are glued
together by using flexible chemical compound depending on the type of designs to cut in to
different shapes.
Employees who are having craftsmanship skills are allocated to do designing process to
convert the fixed sandwich of rubber layers in to usable attractive toys, mats and other
accessories. This will be done by using sharp tools such as knives, drilling tools, etc. roughly
shaped designs are further processed with a grinding activity to pop out the actual desired
shapes. Then the final crafts are polished by using small scale sand papers before packing
those in recycled paper bags.
All the crafts are planned to be tagged under the logo of the company which is printed on a
piece of cleaned rubber by using a laser engraving machine.

Flow chart for production process
Collect solid waste flip flops from
coastal areas including Negombo,
Hikkaduwa, Galle
Deliver waste flip flops to
manufacturing premises
Remove dust, non usable flip flops
and other materials from
collected waste flip flops
Wash the flip flops from pure
water
Wash the flip flops using acidic
chemical
Wash the flip flops using acidic
chemical
Wash the flip flops using rinsing
chemical
Categorize washed flip flops
based on the color of the material
and the type of rubber used
STORE

Based on the design select the
colors of flip flops
Fix selected flip flops together
using glue as a sandwich
Place in racks for curing process
Cut the basic shapes from the flip
flop sandwich
Grind the shape to smoothen the
surface
Grind further using hand tools for
further smoothening
Combine different shapes
according to the designs using
glue/nails
Attach brand tag and price tags
STORE DEPENDING ON THE
CATEGORY OF THE PRODUCT
Pack in recycled paper bags
Make thin layers of rubber using
shaping and cutting tools
Make the surface smooth using
hand tools
Cut in to relevant shapes based on
tag designs
Print the logo design and price
tags using laser engraving
machine

Production Process

Final products of the process
Below mentioned final products will be manufactured under different categories as shown
in below table to send to the relevant markets.
Casts of animals which ameliorate the enthusiasm of wild life tours of both local and
foreign visitors to national parks, zoological gardens, etc. this product specially
focuses on foreign visitors who visits above places, to purchase those as monuments
or souvenirs to memorize their trip to Sri Lanka. The planned designs under this
category are animals including, elephants, wild tigers, wild buffalos, birds, etc.

Rubber toys including vehicles, dolls, cartoon characters, targeting both local and
foreign kids.
Rubber objects which are used to improve the skills and abilities of kids such as play
stores, puzzles, alphabets, etc, targeting local and foreign buyers.

Rubber table mats, floor mats, wall picture frames, and house hold accessories,
targeting both local and foreign buyers.
Rubber ornaments, such as anklets, necklaces, earnings, mainly targeting foreign
visitors to Sri Lanka who seeks souvenirs

Marketing Strategy
Steps that are planned to be taken in the future to distribute these final toy products among
the buyers basically based on the trend of people to purchase eco friendly goods. On top of
this concept the desire of people to buy souvenirs from their visits to other countries or
from the places they love to travel is also used.
Target market for each product category is summarized below before we discuss about the
marketing activities.
Product category
Target Market
Local Foreign
Casts of animals
Local buyers from supermarkets
and toys shops
Local web purchases
Local visitors to zoo, botanical
gardens, exhibitions
Foreign travelers who visit wild
life sanctuaries, zoological
gardens, etc
Foreign online purchasing
customers
Rubber toys including
vehicles, dolls, cartoon
characters
and toys shops
Local web purchases
Local visitors to carnivals, events,
etc
customers
Knowledge gaining
toys
and toys shops
Local web purchases
etc
customers
Household accessories
such as table/floor
mats, wall picture
frames. etc
and toys shops
Local web purchases
etc
customers
Foreigners who visits local hand
crafts shops

Rubber ornaments
Local buyers from fashion stores,
supermarkets and toys shops
Local web purchases
etc
customers
Foreigners who visits local hand
crafts shops/ shopping malls /
fashion stores
Considering the whole targeted market and considering all the above products which focus
on different purchasing aspects of the customers the overall consumer brand association is
figured below, to illustrate the variety of products to a wide variety of customer base.
From the above brand association plot we try to illustrate the brand
association we expect to build in the consumers mind to be popped
FUN
AFFORDAB
ATTRACTIVE
ECO
FRIENDLY
NICE SIMPLE
ENVIRONMENT
FRIENDLYCOLORFUL
LOVELYGREEN

up when they want to purchase a toy from our products. All our strategies and activities
starting from raw material supply we always focus our strength to deliver the above
attributes to the buyers with maximum effort.
Sales of the product is planned to activate using available sales channels in Sri Lanka.
Basically we are planning to sell our products to the foreigners who visit wild life camps,
zoological gardens, adventure camps, water rafting locations, sea surfing camps, etc with
the help of the government organizations related in these areas. As this is a process which
helps to clean the environment of the country the provision and the helps from the
government could be easily obtained for the organization. The places where the sales is
planned to carry out with the coordination of government entities are shown below.
National Zoological Gardens of Sri Lanka, Dehiwala
Wilpattu National Park
Bundala National Park
Horton Plains
Piegion Island
Udawalawa National Park
Yala National Park
Kitulgala White water rafting training centers
Surf See Breeze, Mirissa
Talalla Beach
Negombo Beach
Local buyers will be facilitated to buy our products from first level Supermarket chains in
the country such as Arpico Super Center, Keells Super, etc, where the products will be sent
through a general distribution channel to deliver the goods according to the requests from
the shop owners. On top of this fashion stores, pharmacies, grocery stores are targeted to
distribute products to our customers.

Marketing Mechanisms
As we all aware the usage of internet and smart mobile devices has been increased from a
huge amount in Sri Lanka during the past few years. As per the published researches the
latest figures for internet users worldwide and according to them the latest internet
penetration figure for Sri Lanka is 25.8%. This rapid increase of internet usage has
explicated a great opportunity for Sri Lankan entrepreneurs to sell their products using
online methodologies. This can be done using number of different online channels such as
online stores, social media networks, etc. Sri Lanka is fast establishing itself as a potential
regional ICT hub, and the users in main few channels are listed below as per a research
done by Telecommunication Regulatory Commission of Sri Lanka (TRC).
Sri Lanka is a 21 million strong population served by five mobile service providers. In fact,
Fitch Ratings in their last year’s report named Sri Lanka as one of the most crowded
telecom markets in Asia while predicting a possibility of merger between the weak market
players to provide innovation and facilitate de-regulation.
Fig: Users in different channels
As per the researches thought the market is undoubtedly certain for the Sri Lankan
markets to exploit, most of them lack in internet marketing due to lack of best strategies. A
thorough understanding about the volatility of using internet marketing and applying it in
the Sri Lankan context should be the key to succeed in the internet arena. This is the reason

for many local brands to tryout several internet marketing tactics and give-up saying it has
not brought any sales for them. Most of the local brands spend their time in developing
internet marketing tactics but not in developing marketing strategies for their respective
organization. It could be seen that many successful international case studies in online
marketing arena have been directly applied in Sri Lankan context and proven to be a failed
effort. Sri Lankan climates should be considered while implementing an internet marketing
success story that is copied from a western country. Highest level of adaptation should be
involved than a mere imitation.
Therefore we have focused on analyzing the role of internet marketing on this business
plan. Most of the successful internet marketing businesses have focused on selling
multiple items by giving the priority to the price by using the concept of “Daily Deals”. They
sell a small quantity from each item with a deal price where the early customers can order
the products before the number of vouchers expire. This has been a wonderful strategy
where these web marketers have been able to encourage customers to visit these sites and
to buy something available on “Deals”, though these products are not really essential for
them.
Web based online purchasing has grown up in to a remarkable level now in Sri Lanka due
to the rapid growth in telecommunication industry. The e-commerce industry is
profoundly impacted by the rise of social networks and the proliferation of mobile devices
at an enormously large scale. Since mobile devices such as smart phones and tablets have
made a vast number of choices and plenty of information available at fingertips, consumers
are leaving behind traces and records of their behaviors, preferences and interests; and
this report aims to capture and analyze all these trends.
We referred a comprehensive and very useful research performed by Kaymu.lk in order to
understand the real behavior of consumers who are involved in e commerce and e buying.
Through the research conducted by Kaymu and the facts collated, it can be observed that
the population falls between the age brackets of 25-34 years account for the highest
number of users, with the 35-44 and 18-24 brackets falling at second and third places
respectively. One of the primary reasons behind this observation is the fact that people

falling in the age bracket of 25-34 years are more inclined towards technology and its
usage. These people are at the forefront of technological revolution and are more open
towards online shopping. (Kaymu, 2016)
Therefore we have planned to launch a website to sell our products online for local buyers,
by expanding the knowledge of them about the value of having a clean environment. There
are number of websites, which offer online product selling services in Sri Lanka under
different categories of goods. But all these websites have not been able to penetrate their
businesses in to the market to sell their products with considerable share of profit.
Therefore we carried out a simple research on buyers behaviors with these online sales
stores.
According to a research conducted by Alexa (a premium digital online marketing tool), we
checked the most popular web sited in Sri Lanka in order to check the trends of community
to use internet as a shopping channel. The most visited sites are listed in below table.

1 google.lk 2 facebook.com 3 google.com 4 youtube.com
5 hirufm.lk 6 blogspot.com 7 Ikman.lk 8 Yahoo.com
9 Wikipedia.org 10 Ebay.com 11 Gossiplankanews.com 12 Hirunews.lk
13 Kat.cr 14 Xhamster.com 15 Ananmanan.lk 16 Twitter.com
17 Baisecopelk.com 18 Alibaba.com 19 Linkedin.com 20 Amazon.com
21 Elakiri.com 22 Blogger.com 23 Stackoverflow.com 24 Onclickads.net
25 Slt.lk 26 Dialog.lk 27 Lankadeepa.lk 28 Lankacnews.co
29 Adaderana.lk 30 Espncrickinfo.com 31 Nethfm.com 32 Tamilwin.com
33 Jvpnews.com 34 Imdb.com 35 Live.com 36 Xvideos.com
37 Lankahitgossip.com 38 Topjobs.com 39 Wordpress.com 40 Trackingclick.n
41 Microsoft.com 42 Extratorrent.cc 43 JayaSrilanka.net 44 Commercialbk.c
45 Gsmarena.com 46 Txxx.com 47 Paypal.com 48 Bing.com
49 Torrentz.eu 50 Aliexpress.com 51 Bbc.com 52 Zoom.lk
53 Github.com 54 Gossipking.com 55 Dailymirror.lk 56 Divaina.com
57 Instagram.com 58 Ask.com 59 Cmb.ac.lk 60 Lankasri.com
61 Imzog.com 62 Bongacams.com 63 Adnetworkperformance.com 64 Lankahitvideo.c
65 Hclips.com 66 Cineulagam.com 67 Pornhub.com 68 Freelotto.com
69 Offerjuice.me 70 Adf.ly 71 Eskimi.com 72 Maduraonline.c
73 Eskimi.com 74 Pinterest.com 75 Mydeal.lk 76 Newsfirst.lk
77 Asianmirror.com 78 Aluth.com 79 Beeg.com 80 Sampath.com
81 Watchmygf.net 82 Rdsa2012.com 83 Bpblogspot.com 84 T.co

85 W3schools.com 86 Hnb.lk 87 Wow.lk 88 Lankaenews.co
89 Upornia.com 90 Ada.lk 91 Godaddy.com 92 Apple.com
93 Whatsapp.com 94 Quora.com 95 Witchcraftcrash.com 96 POpads.net
97 9gag.com 98 Directrev.com 99 Tharunaya.us 100 Cricket.com.au
101 Terraclicks.com 102 Reddit.com 103 Kaymu.lk 104 Dailynews.lk
105 Tuberel.lk 106 Hsbc.lk 107 Srilankanmirror.com 108 Dropbox.com
109 Softnic.com 110 Gossip99.com 111 Savefromnet.com 112 Cnet.com
153 Takas.lk 163 Yamu.lk 184 Kapruka.com 274 Amazon.co.uk
298 Agoda.com 349 Buyabans.lk 358 Riyasewana.com 363 Mystore.lk
366 Wasi.lk 372 Ebay.co.uk 385 Ticketslk.com 394 Hitad.lk
397 Amazon.in 404 Shopping.lk 418 Samsung.com
1.8 How to increase number of visitors
Time spent on websites
As we all know Sri Lankan society is also moving in to a very busy environment, where
people spend the limited active hours in a day with a lot of day today activities. Therefore
spending time in surfing internet for shopping is not a task they perform leisurely always.
In order to cater their demand in a way that they can select their needs easily and quickly is
a key point to be successive in online marketing.
This challenge has been addressed by few no of online marketers in Sri Lanka. One popular
concept that has been introduced for this in Sri Lanka is “Deal” concept. These websites
always update their sites with their new products introduced, as deals.
These web sites has been able to capture and increase the number of visitors to their web
sites because of this web design with easy access and availability of information customers

needs which are presented in a very convenient ways. We have identified that a web site
must always present below mentioned information very conveniently to their customers.
 Graphics/Pictures/photos
 Price
 Technical details
 Size
 Warranty
 Delivery method
 Payment methods
Therefore we expect to design our website with a very simple structure which all the
visitors can login at once to the site and check the available sandals in the stores, at a glance
with all the information available. We have identified the most important information the
buyers need are
 Price
 Available Sizes
 Available Colors
 Delivery
 Payment method
At the same time we have planned to start a Facebook page which to penetrate the
information about the market to young generation, as it is the most common social media
channel used among teenagers in Sri Lanka. As well as the social media marketing, we
would be able to get the customers reviews through this channel, which will be so much
helpful to identify the customers buying behaviors and exact requirement.

Payment Methods
The top payment methods in Sri Lanka are:
o Cash on Delivery: is the most commonly used payment method in Sri Lanka. As per
estimates, more than 95% of e-commerce users in Sri Lanka prefer cash on delivery
(COD) payment model.
o Bank / Wire Transfer: Very few e-commerce businesses operate on the system of
only delivering the product after receiving the amount through a wire/bank
transfer.
o ezcash / mcash: Some e-commerce websites also prefer these payment models for
transferring small amounts.
o Credit Card: Most of the e-commerce websites in Sri Lanka have merchant accounts
integrated on portals to facilitate credit card transactions. However, almost all such
e-commerce websites also offer multiple other payment methods and cater to the
cash on delivery system.
Implementing bank/wire transfer, credit card, ezcash and paypal payment methods are
much difficult and the implementing cost is very high. Therefore we expect to carry out the
initial stage of the business by using cash on delivery method.
On the other hand the easiest way to access international buyers is to use available trading
web sites which are very popular in these days around the world where millions of people
buy their products through those. Therefore we have planned to sell our products using
ebay, amazon, web sites which would be so easy for us to sell products to international
markets by using utilized resources such as delivery, payment methods, which are
provided in these web sites for sellers.

Competitor Analysis
For the toys business in Sri Lanka there are number of entrepreneurs involved in, with
both small and medium scale businesses. Most of these entities are local individuals who
manufacture crafts using wood in different areas of the country to sell the products
regionally, without having a well developed distribution chains. Few suppliers are carrying
out the business in both medium and large scale targeting both local and international
markets. But the severe threat to the industry is the imported toys from China, Malasia, and
Taiwan which are manufactured using plastic and other synthetic materials.
Therefore we have identified the main suppliers in same scale to do a competitor analysis
locally. The main companies who are involved in the business in the same scale we have
identified are, DSL Lanka Pvt Ltd and Sri Toys International Pvt Ltd. The competitor
analysis is summarized below.
ECO toys Lanka Pvt
Ltd
COMPETITOR 1 COMPETITOR 2
STRENGTHS Recycling based
manufacturing
process
Well planned
manufacturing
process with a very
low operational cost
Have accessed Sri Lankan
stores to sell products
Established brand name
Have already touched the
international markets
WEAKNESSES Brand new to the
industry.
Lack of initial client
Use wood for
manufacturing process as
raw materials which is
Have not focused in to
our target market of
foreign visitors to the

list. not highly accepted in
eco friendly purchasing
trends
Have not focused in to
our target market of
foreign visitors to the
country
country
No eco concepts involved
in manufacturing process
Taxes on importing
materials for
manufacturing process
From the analysis we can see that we have a untouched target market yet which can be
captured using the core concept of eco manufacturing and recycling, with a well planned
brand positioning strategy.
Pricing
When we analyze our manufacturing process we only have to bare the delivery cost of the
raw material of our products, but not the cost of materials. This is the main advantage we
have to carry out the business forward in to a higher level. The facts that must be
considered in our pricing strategies are further analyzed here.
Material Availability Details about the cost
Main raw material - rubber Available in all parts of the
country which can be easily
collected as it has become a
environmental issue to the
country with the help of
community.
No taxes involved
No cost is needed to pay for
raw rubber material
Fixing glue Can be easily found from
local market with a planned
supply chain procumbent
procedure
No taxes directly involved
Can be purchased for local
selling prices
Steel clamps, pins, wires Can be easily found from No taxes directly involved

local market
Scrap wire pieces from
relevant industries can be
collected easily for a very
low cost
Can be purchased from local
market for a low cost
Sometimes can be collected
from scrap of relevant
industries for no cost
Cleaning chemicals Can be purchased from local
chemical suppliers
No direct taxes involved
Therefore we can see the materials of the process can be organized to collect properly with
a very minimum cost. This can be effectively used to take down the prices of the products
easily with the help of low operation cost involved manufacturing environment.
Product promotion
Product promotion is planned to be done using different forms of marketing and
advertising tools available. This must be done carefully by clearly categorizing the target
markets and carrying out relevant product promotion activities accordingly.
For foreign visitors product details and the features of the products are planned to deliver
using tour guide booklets, travel agent advertisements, leaflets. These are mainly focused
to be done by mainly targeting the places where the foreign visitors always gather. On the
other hand, printed advertisements to be published in magazines which are kept in flights
of the air lines such as Sri Lankan airlines who mainly take part in immigration of the
visitors to the country.
Attractive leaflets and product catalogs are planned to be designed and distributed to
foreign visitors through travel agents, main hotels and restaurants.
Awareness on local customers can be done using local printed and web based media
channels such as news papers, e based business flyers, and facebook promotion programs.

The most effective and important activity that can be carried out to deliver the details
about the company is organizing environment cleaning programs with the help of
education institutes such as universities, and other environment related organizations such
as Central Environment Authority.
This can be used to stimulate the attention of community towards the company as an entity
which helps the country to have a clean environment while making profits to the country
and as a company which gives local unemployed people opportunity to join with an
organization to earn a salary.
Management Structure
ECO TOYS LANKA PVT LTD is a single owner company which the owner will recruit
employees to work under his supervision structured in a proper small hierarchy. For the
first stage of the business below positions are to be recruited using available Sri Lankan
recruitment methodologies.
Main divisions that are planned to establish are shown in the above chart.
Managing
Director
Production Quality
Sales and
Marketing Administration
General
Manager

Medium Scale Business Modelling

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