Business                             Plan”Clean Cookstoves, Sustainibility for Indonesia”                            TEAM ...
”Clean Cookstoves, Sustainibility for Indonesia”                                                   EXECUTIVE SUMMARY      ...
”Clean Cookstoves, Sustainibility for Indonesia”          efficiency measures in thermal applications of non-renewable bio...
”Clean Cookstoves, Sustainibility for Indonesia”        1. MARKETING PLAN           a. Product Description and Purpose    ...
”Clean Cookstoves, Sustainibility for Indonesia”              cheaper, excessive fuels supply, and popular to the people. ...
”Clean Cookstoves, Sustainibility for Indonesia”                    Java. This supply has been excessive for the need of C...
”Clean Cookstoves, Sustainibility for Indonesia”             Number of potential customer (all citizens of Citeureup)     ...
”Clean Cookstoves, Sustainibility for Indonesia”              while sales for used-oil is getting increase following the i...
”Clean Cookstoves, Sustainibility for Indonesia”                   using it. Our promotion campaign is “Buy Protos, Discou...
”Clean Cookstoves, Sustainibility for Indonesia”                       b) Food Bazaar Protos Expo                         ...
”Clean Cookstoves, Sustainibility for Indonesia”                                                      2 x installment Rp. ...
”Clean Cookstoves, Sustainibility for Indonesia”                              KOPERASI       NUMBERS OF        COST PER   ...
”Clean Cookstoves, Sustainibility for Indonesia”                      SUMMARY OF OUR PROMOTION STRATEGY FOR THREE YEARS PE...
”Clean Cookstoves, Sustainibility for Indonesia”          f.   Distribution and Logistics                     We will dist...
”Clean Cookstoves, Sustainibility for Indonesia”                       Total land area of PT Indocement Tbk in Citeureup c...
”Clean Cookstoves, Sustainibility for Indonesia”              Here is the definition of each element in organization struc...
”Clean Cookstoves, Sustainibility for Indonesia”              Finance                   Finance division will be led by a ...
”Clean Cookstoves, Sustainibility for Indonesia”                       up to CDM project approvel will take a year to comp...
”Clean Cookstoves, Sustainibility for Indonesia”                                                            Highlights    ...
”Clean Cookstoves, Sustainibility for Indonesia”                                                                          ...
SIEMENS HB23AB520                  BOSCH HBA23B150E                   BOSCH GSD12A20Built in oven                      Bui...
”Clean Cookstoves, Sustainibility for Indonesia”                                                          Highlights      ...
”Clean Cookstoves, Sustainibility for Indonesia”                      Indocement (Heidelberg Group): Indocement had plant...
”Clean Cookstoves, Sustainibility for Indonesia”                                                            Highlights    ...
”Clean Cookstoves, Sustainibility for Indonesia”        .                          Oil Gallon and drums                  ...
”Clean Cookstoves, Sustainibility for Indonesia”                 g. Key Assumption                              Key Assump...
”Clean Cookstoves, Sustainibility for Indonesia”           i.   Financing Requirement                See Annexes in Cash F...
”Clean Cookstoves, Sustainibility for Indonesia”        3. Annexes                     a. SWOT Analysis                  S...
b. Competition Anlysis among Cookstoves                                                  Protos                           ...
Team 16 business plan submission
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Team 16 business plan submission

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Team 16 business plan submission

  1. 1. Business Plan”Clean Cookstoves, Sustainibility for Indonesia” TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT JAKARTA
  2. 2. ”Clean Cookstoves, Sustainibility for Indonesia” EXECUTIVE SUMMARY Indonesia with its 240 million population, at least 100 million people cook with kerosene and wood-fires stove for their daily cooking needs. These group belongs to lower-middle income communities which can only afford to buy these kinds of stove. These stoves suffer for low efficiency and poor level of emissions. The unavailability of more proper stove and fuel made them stay in the same condition for years. This condition becomes even worse when the Indonesian government run convertion of kerosene to gas. Since most people can not afford to buy gas stoves, regulators, and the jar, there is a lot of kerosene users are back again using firewood which has worse emissions level and low level of security. What is needed by this community is a stove with a low level of emission, high efficiency and affordable fuel. This condition provides an opportunity to position the stove named Protos as a substitute for kerosene stoves and firewood to a cheaper fuel than LPG. This idea could not work alone. We need a program to support and deliver those ideas. That’s why we came up with a program named “Clean Cookstoves, Sustainibility for Indonesia” to challange those ideas. By doing it, we aim to bring community to enjoy live by doing cleaner, healthier and happier cooking. We are Biokraftstoffe here as a partner of BSH (Bosch and Siemens Home Appliances Group) will act as an agent who colaborates some partners to build alliances in order to run these programs. Our vision is “Achieving Healthy Way of Cooking to Support Indonesia Sustainability Environment”. This vision reveals our goal which is distributing 5.000 protos cookstove into one spesific area and reach break even points within 2-3 years while there is still cost gap which we have to cover costs for $ 30 for each stove. To achieve this goal we collaborate the power of local partners that has full concerns in developing CSR program deal with Carbon reduction and environmental program through community development to cover this cost gap. We colaborate three local partners and one international partner that has fitted the criterias. Our local partners are BSH, PT. Indocement Tbk (HeidelbergCement Group), and PT Shell Indonesia; while our international partner is CER’s (Certified Emission Reduction)’s buyers. BSH will act as protos cookstove producer who provides the cookstove, while PT Indocement Tbk (part of the HeidelbergCement Group) will provide plant oil supply from jatropha plantation in their areas since 2007 as part of their CSR program. Our local firm, PT Shell Indonesia will donate such amounts to support our program which align with their program named “Global Alliances Clean Cookstove Program”. On the other hand, CER’s buyers (international companies) will buy the certified emission reduction issued by us as agent who collaborates our local partners regarding CDM (Clean Development Method). All those partners are colaborated into one to be hand in hand supporting our program. We will organize and run all their support and investment so that our vision will be acomplished. “Clean Cookstoves, Sustainibility for Indonesia” is a program that consider with the implementation of CDM (Clean Development Management) project under the supervision of UNFCCC which requires application of a baseline and monitoring methodology in order to determine the amount of Certified Emission Reductions (CERs) generated by a mitigation project in a project host country like here in Indonesia. There are 3 projects of CDM that we are possibly going to develop. They are AMS-I.G (Plant oil production and use for energy generation in stationary applications). This project will be collaborated with PT Indocement Tbk which have 170 hectares jatropha plantation and produce plant oil which next will be used for supporting oil supply of protos. The second project is AMS-I.H (Biodiesel is produced from cultivated oil crops or from waste oil/fat and used for the generation of electricity. This program will be in charge of Biokraftstoffe which are doing two main activities: processing jatropha crops to become plant oil then sell it to our customers and collecting used oil from food stall and sentra “gorengan” in Sumedang and Majalengka then sell it to our customers. The last project is AMS-II.G (EnergyTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 1
  3. 3. ”Clean Cookstoves, Sustainibility for Indonesia” efficiency measures in thermal applications of non-renewable biomass). This project will be collaborated with BSH by producing and distributing protos cookstove with low level of emission. These 3 projects in the following three years will reduce totally 15.252 ton CO2 at the end of 3rd year of which counts for 2.217.333.052 rupiahs. This amount can cover the cost gap of 1500 cookstove for the next two years and keep the price as minimum as $ 5. The CDM program will keep generating revenue for years running. On this basis the cost gap of 1500 protos cookstove annually will be covered. We plan to implement this program in a place named Citeureup, 45 km away from southern Jakarta and 20 km away from northern Bogor. We chose this region since it’s near factory of PT Indocement so that it can be correlated with CDM program done by them. Besides, this region is densely populated area which most of their citizen is from low-middle economic classes that mostly used kerosene as their way of cooking. These type of citizens belongs to our target consumers so by chosing this place is very beneficial for us. Citeureup consists of 12 villages, namely Hambalang, Citeureup, Tajur, Pasir Mukti, Leuwi Rubber, Nambo, Bantarjati, Gunung Putri, Lulut, Gunung Sari, Tarikolot and Puspanegara. These villages are part of the three villages, namely sub Citeureup, Gunung Putri and Cileungsi. There are 75,000 people live right next to the factory area. By assuming that each family consist of 5 members, there will be 15.000 households as our potential market while we target 5.000 households (one-third of all citizens of Citeureup). However, the whole progam has to be safeguarded. One important thing that needs to be considered is the availability of fuel supply for 5000 families that would be our target consumers. Currently, the availability land of jatropha owned by PT Indocement is not enough to meet the objectives of this program. For that reason, we need to secure our supply by combining fuel supply of Jatropha and used oil we gained by collecting used oil from fast-food industry like McD or KFC, and Sentra Gorengan near the neighbourhood and build the system that enable household to collect their used oil to the collector we point. This activity will sooner become small business entity and empower community to be a real businessman as used oil collector and middleman. Form of used oil collection can be designed like depo or cooperation located in each village under the supervision of Minister of Small-Medium Enterprise. By doing this, it will atrract and retain protos user to keep using their stove because of cheaper and easier to find biofuel rather than kerosene or fire-wood. We will acquire customers by promotion activities like bundling system, cooking competition, food bazaar in Independence Day, Microfinance program, Membership program, and Member get member program. The cooperatif (Koperasi) in selected villages will be set as integrated selling point, that is to sell the cookstove, fuel and service inquiries. The promotion activities can also be embedded with training program to help the customer getting the product’s insight. The one in charge for this training is Cooperative (Koperasi) staff which is regarded as our sales person in retail chains. Cooperative (Koperasi) will gain profit from us with special discount for $3 for each protos purchasing item. We will raise capital fund from charity plan in Europe, involving BSH and all its chain including retailers and customers. We bring the campaign to offer non-cash BSH consumers 1 cent Euro for each purchasing activities. We target to gather amounts for € 150.000. The charity fund will be used to help to register CDM project AMS-I.G and AMS-I.H. The whole business plan will see break-even-point in the first quarter of the 2nd year. The NPV (Net present Value) will be Rp. 1.527.558.148 and IRR (Internal rate of Return) value would be 53% and 44% for MIRR (Modified Internal Rate of Return).TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 2
  4. 4. ”Clean Cookstoves, Sustainibility for Indonesia” 1. MARKETING PLAN a. Product Description and Purpose Protos is the world’s first plant oil cookstoves. Based on technology developed by BSH, Protos is able to burn almost any filtered plant oil – including used frying oil. Protos cookstove is rigorously tested, affordable, aesthetic, and directly meet consumer needs while providing health, environmental and economic paybacks. Our products are ideal carbon programs due to their ultra-high efficiencies and 5-year extended life durability. By using this stove, it can reduce indoor air pollution (black soot/smoke) and increase the overall health of the family. The ultimate purpose is helping non-traditional customers enjoy safer, cleaner and lower-cost cooking so that it will support environmentally sustainibility program. Here is the product spesification of Protos Cookstove: Power range •2-2,5 kW Usage •2-4 liters/ week Fuels •All plant oil also used oil Efficiency •45-58 % Emission •Ten times lower than kerosene CO2 Balance •Netrals The elements support are:  mat,  oil tank,  stove cover,  stove body,  regulator,  adaptor,  pump  vaporizer b. Competitive Strategy and Positioning Competitive strategy is a plan for how a firm will compete, formulated after evaluating how its strengths and weaknesses compare to those of its competitors. Protos cookstove as “a new to the world product” decide to concentrate on special niche product offered in limited areas after determining it cannot compete on price with major competitors (kerosene stove). We will compete with kerosene stove which is known asTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 3
  5. 5. ”Clean Cookstoves, Sustainibility for Indonesia” cheaper, excessive fuels supply, and popular to the people. Here is competeitive strategies that we are going to use to distribute Protos to target markets: 1. Collaborating with three local partners and one group of international partner by bringing issue of CDM (Clean Development Mechanism). By doing so, we could get offset from CER’s issued. This program will be sustainability visible to cover the cost gap which is $ 30 per stove and will be (mechanism will be explained later in Cash flow statement). We’ve pointed three local partners to support our programs. Those are: One international partners is group of companies which frequently bought CER from carbon stock market. We’ve identified 9 international buyers related with our carbon issue (list of companies explained in Annexes). By gathering these partners into one, it will strengten our goals to drop 5.000 protos cookstoves within 3 years, either we can do by conducting promotion strategy, delivering intensive training and small talkshow about products to potential users, above the line promotion, or media exposure as part of company activities in developing CSR program. 2. Attracting target market by educating them through event based marketing usually done in neighbourhood near target market (Citeureup). The event can be like Arisan RT or RW (monthly housewifes community gathering), Food bazaar, Cooking competition commemorate The Independence Day of Indonesia, or Bazaar promo. These events will be beneficial since we can educate the market the advantages using Protos rather than kerosene or fire-wood. We can give special promo to target market by giving them discount for the first trialist user. We can also retain them in order to keep using the stove by using membership program which allow them to get oil supply regularly by delivering them directly into their house. This service will satisfy customer since they don’t need to look for the oil or gather the oil themselves. 3. Combining two kinds of oil supplies which are Jatropha oil and used-frying oil to ensure the availability of oil supplies. By doing this pattern we can solve the problem in keeping the availability of oil support that mostly became weakness of BSH which implement this program years by years. Based on our research, Jatropha oil will produce 321.000 Litre/ year with total area of 170 ha owned by PT Indocement Tbk, while used oil will produce 300.000 Litre/year which we get by collecting them from Sentra Gorengan Majalengka until Sumedang and some Restaurants located in WestTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 4
  6. 6. ”Clean Cookstoves, Sustainibility for Indonesia” Java. This supply has been excessive for the need of Citeureup markets annually which is 150 Litres/year/household. 4. Empowering Citeureup citizens by opening new businesses focused on used frying oil collection so that it fulfill the employment. They can be a collector, middleman or reseller of used frying oil. By doing so, it will improve the welfare of citizens there. 5. Supporting the issue of CDM (Clean Development Mechanism) in order to response to environmental and Health (MDGs) program. Here is list of three projects which we will run to support CDM project: Clean Development Mechanism (CDM) AMS-I.G : Plant oil production and use for energy generation in stationary applications AMS-I.H : Biodiesel production and use for energy generation in stationary applications AMS-II.G: Energy efficiency measures in thermal applications of non-renewable biomass By implementing those strategies, we can have positioning for Protos as: The world’s first plant oil stove which is efficient, reliable, healthy, eco-friendly with high technology Kompor Minyak support so that it can burn for almost any filtered Nabati plant oil – including Jatropha and used frying oil. Murah, Hemat, Aman , c. Market Penetration Assumptions As we are “new to the market” with the product that has been developed in six years period, we have to use market penetration strategy. We assume that we will penetrate the market by gaining competitors customers (part of their market share) which considered to be kerosene and fire-wood user. Other ways include attracting non-users of our product or convincing current customers to use more frequent of our product (by promotion or training activities etc). By doing so we will gain the advantages of entering a new spesific market. The assumptions are as follows:TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 5
  7. 7. ”Clean Cookstoves, Sustainibility for Indonesia” Number of potential customer (all citizens of Citeureup) 75.000 citizens (Source: PT Indocement Tbk Final Report Number of household (assumption 1 household: 5 citizens) 15.000 households Number of target market 5.000 households Percentage of target market from potential market 5.000/15.000 x 100 % 33,3 % Those numbers will be acquired for three years period by calculation as follows: Year 1-5 1st year 2nd year 3rd year 4th year 5th year Sales of Protos 1600 1700 1700 1500 1500 Cookstove (unit) Percentage of target 10,67 % 11,33 % 11,33 % 10 % 10 % market from from from from from potential potential potential potential potential market market market market market Price per unit (dollar) 5 5 5 5 5 Price per unit (rupiahs) 42.760 42.760 42.760 42.760 42.760 Sales of Cookstove 68.416.000 72.692.000 72.692.000 64.140.000 64.140.000 (in rupiahs) We also provide fuels and pre-heating materials to burn those cookstove using two kinds of fuels which are jatropha oil and used-frying oil. Besides, we also can get revenue from these sales. Here is the calculation: Year 1-5 1st year 2nd year 3rd year 4th year 5th year Sales of Jatropha oil 321.970 321.970 321.970 321.970 321.970 (Litres) Price per Litre (rupiahs) 3.500 3.735 3.985 4.252 4.537 Total sales of Jatropha Oil 1.126.893.939 1.202.395.833 1.282.956.354 1.368.914.430 1.460.631.697 (rupiahs) Sales of Used-frying oil 300.000 350.000 428.030 653.030 878.030 (Litres) Price per Litre(rupiahs) 3.500 3.735 3.985 4.252 4.537 Total sales of Jatropha Oil 1.050.000.000 1.307.075.000 1.705.577.271 2.776.480.561 3.983.228.556 (rupiahs) Sales of Spiritus (Litres) 58.240 120.120 182.000 236.600 291.200 Price per Litre (rupiahs) 10.000 10.670 11.385 12.148 12.962 Total Sales of Spiritus 582.400.000 1.281.680.400 2.072.049.980 2.874.140.527 3.774.409.775 (rupiahs) TOTAL SALES OF FUEL AND 2.759.293.939 3.791.151.233 5.060.583.605 7.019.535.518 9.218.270.029 PRE HEATING Number of jatropha oil sales remains same every years since we only have 170 ha jatropha plantation that we can organize for 5 years periods owned by PT Indocement Tbk.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 6
  8. 8. ”Clean Cookstoves, Sustainibility for Indonesia” while sales for used-oil is getting increase following the increasing number of coockstove sold every years. Besides selling our main business as explained above. we also gain revenue from the sales of CER’s (Certified Emission Reduction) from CDM project. Here is the calculation: Year 1-5 1st year 2nd year 3rd year 4th year 5th year Project AMS-II.G 1.722 3.552 5.382 6.997 8.611 (tCO2/year) Project AMS-I.G 1.610 1.610 1.610 1.610 (tCO2/year) Project AMS-I.H 620 755 1.153 1.547 (tCO2/year) Price per tCO2/year ($) 17 17 17 17 17 Price per tCO2/year (Rp) 145.384 145.384 145.384 145.384 145.384 Total Sales of CER from 250.386.140 840.613.702 1.126.333.210 1.418.861.447 1.710.830.318 CDM Here is the total sales for all products wesell in 5 years period: Year 1 Year 2 Year 3 Year 4 Year 5 Net Revenue (rupiahs) 3.283.344.080 4.922.532.936 6.477.684.815 8.694.956.965 11.185.660.347 d. Price Strategy We use cost-based and competitive-based pricing which means we set the price for our products based on each items build for installment and production of cookstove. jatropha oil, used-frying oil and pre-heating materials. We also concern the price of our competitors product for both of the cookstove and the fuels (Jatropha and used-frying oils). Here is the price list we are going to set for four of our products: Products Price Protos Cookstove Rp. 42.760 Jatropha oil/Litres Rp. 3.500 Used frying oil/ Litres Rp. 3.500 Pre heating materials (spiritus)/Litres Rp. 10.000 e. Promotion Strategy The activities we are going to develop for promotion strategy is by using two kinds of activities: 1) We offer protos cookstove by bundling system. We will sell protos cookstove, plant or used oil, and spiritus in a package so that our customer will find no difficulties inTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 7
  9. 9. ”Clean Cookstoves, Sustainibility for Indonesia” using it. Our promotion campaign is “Buy Protos, Discount for Fuel Supply!!” only for cash payment. In the first time user buy the cookstoves, we will provide the oil and spiritus for 1 month consumption. We will stimulate user to buy the oil in koperasi regularly every month with very low price for fuel for Rp. 3.500/litre. This bundling system is more economical than buying separatedly. Bundling system sold for Rp. 70.760, while for seperated buying sold for Rp. Rp. 110.760. Buyers will save for 36 % with this system. SAVE 36 % Plant oil Spiritus Rp. 42.760 Rp. 40.000 Rp. 28.000 *Cash only 2) Regular promotion collaborate with bundling system, means we regularly attend and educate housewife joining monthly meeting in each villages of neighbourhood (arisan PKK RT, RW, dan kelurahan) to try and use Protos cookstove. The promotion activities are giving discount by offering the first 7 cook stoves buyer free for oil supply for a month. By promoting to 12 villages we will get 1008 buyers in a month. 3) Event based Promotion such as: a) Cooking Competition. Promoting cooking competition by using protos cook stove as burner and collaborating with food or cooking materials such as instant meatball. sausage. or food flavor. Each group of 4 people must pay for registration fee for Rp. 100.000. By paying and joining this competition. they will get one Protos Cook stove to be used as burner. if they win they will get some attractive and valuable prices. This activity will be done every 6 months. We targeted 100 people will join this program per event. so there will be 50 buyers in a year.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 8
  10. 10. ”Clean Cookstoves, Sustainibility for Indonesia” b) Food Bazaar Protos Expo This activities is held by joining bazaar usually done to comemorate the independence day of Indonesia. We will give special price by launching offering “Buy 2 get 1 free” for only one day event. This event we will target 50 buyers in a year. 4) Microfinance Program We will offer micro finance program by giving them access to pay for the stove within four to six months through fuel savings alone. This self-financing loop makes it possible to scale-up the initiative over time impacting millions across the globe. We will colaborate with koperasi in collecting the installment. Every months we will billed the money paid by our buyer. We target to acquire 15 buyers every 3 months period so there will be 60 buyers in a year. PARAMETER KEROSENE STOVE PROTOS COOKSTOVE Fuel + pre-heating Rp. 204.000/month Rp. 68.000 /month Price of stove Rp. 200.000 Rp. 42.760 Total Rp. 404.000 Rp. 110.760 If they use protos cookstoves, they will benefit economically better than use kerosene stove. By doing so, they’ll save Rp. 293.240 per month. This amount will be allocated for Rp. 55.000 to pay the installment fee per month (package of cookstove and one month fuel supply), even they still can save the rest Rp. 182.480 for monthly saving. By 2 months period they can fulfill the installment.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 9
  11. 11. ”Clean Cookstoves, Sustainibility for Indonesia” 2 x installment Rp. 55.000 5) Membership (Retention Program) We also make our retention program for our customer by offering membership card. For the one who has bought our cook stove will automatically get a membership card. The advantages they got is they can have a right to purchase our plant/ used oil regularly. While for the one who hasn’t bought or cookstove may not buy our fuel. This program will be enlarged with special discount for the member who has bought our fuel for minimum 50 litres with 10 % discount. 6) Member Get Member (Development Program) If existing buyer can get a new member by their own effort. we will give them incentive $ 3 for each new buyer. This program will develop and acquire new buyers in the future. We target 5 new buyers each month can be gained by this program so there will be 60 buyers in a year. 7) Training for Trainer We also promote our cookstove by training how to use and teach the manual to trainers (koperasi staff who will sell protos, fuel and spiritus) that will be done in every 6 months period in 3 villages. These 3 villages represents 12 districs we have. Here is the calculation:TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 10
  12. 12. ”Clean Cookstoves, Sustainibility for Indonesia” KOPERASI NUMBERS OF COST PER TOTAL COST LOCATION TRAINING TRAINING (RUPIAHS) (Districts) Gunung Putri 2 300.000 600.000 Citeureup 2 300.000 600.000 Cileungsi 2 300.000 600.000 TOTAL COST OF TRAINING PER YEAR (rupiahs) 900.000 8) Marketing Tools Here is the list of marketing tools that we are going to use to support our promotion activities above: YEAR 1-5 MARKETING NUMBER OF NUMBER OF COST PER TOTAL TOOLS ACTIVITIES ITEMS USED ITEMS COST (items) (month) (MONTH) (RUPIAHS) (RUPIAHS) Banner 6 3 100.000 300.000 Flyer 6 1000 100 1.200.000 Poster 6 30 4000 1.440.000 TOTAL COST OF TRAINING PER YEAR (rupiahs) 2.940.000 Here is our design to support our “1 CENT CHARITY PROGRAM FROM EUROPEAN COUNTRIES”: We will collaborate with BSH to bring this campaign by using their existing marketing program. This logo will be added to price tag and poster in every retail store where BSH products existed in all over European countries.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 11
  13. 13. ”Clean Cookstoves, Sustainibility for Indonesia” SUMMARY OF OUR PROMOTION STRATEGY FOR THREE YEARS PERIOD YEAR 1 Program Period Target buyers (per period) Target buyers (year) Bundling system Every month 84 1008 with Regular promotion Cooking competition Every 6 month 25 50 Food bazaar in Independence Once a year 50 50 day Microfinance program Every 4 month 132 396 Membership Every month 3 36 Member get Member Every month 5 60 TOTAL NUMBER OF BUYERS YEAR 1 1600 buyers YEAR 2 Program Period Target buyers (per period) Target buyers (year) Bundling system Every month 84 1008 With Regular promotion Cooking competition Every 6 month 25 50 Food bazaar in Once a year 50 50 Independence day Microfinance program Every 4 month 165 496 Membership Every month 3 36 Member get Member Every month 5 60 TOTAL NUMBER OF BUYERS YEAR 2 1700 buyers YEAR 3 Program Period Target buyers (per period) Target buyers (year) Bundling system Every month 84 1008 With Regular promotion Cooking competition Every 6 month 25 50 Food bazaar in Once a year 50 50 Independence day Microfinance program Every 4 month 165 496 Membership Every month 3 36 Member get Member Every month 5 60 TOTAL NUMBER OF BUYERS YEAR 3 1700 buyers Here is the value preposition of using Protos Cook Stove as our promotion campaign: More powerful stove Local added Uses value and renewable job energy creation Value Preposition Healthy Environm for the entally user friendlyTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 12
  14. 14. ”Clean Cookstoves, Sustainibility for Indonesia” f. Distribution and Logistics We will distribute and display protos cookstove, fuel, and pre-heating materials by placing them monthly in our distributor such as a depo, koperasi, or food stall. Here is the amount for each distributor (koperasi) we plan each month: Number of Item distributed (monthly) Koperasi Location Cookstoves Plant Oil Used-oil Spiritus (Village/ Desa) (unit) (Litre) (Litre) (Litre) Hambalang 11 2.236 2.083 405 Citeureup 12 2.236 2.083 405 Tajur 11 2.236 2.083 405 Pasir Mukti 11 2.236 2.083 405 Leuwi Rubber 11 2.236 2.083 405 Nambo 11 2.236 2.083 404 Bantarjati 11 2.236 2.083 404 Gunung Putri 11 2.236 2.083 404 Lulut 11 2.236 2.084 404 Gunung Sari 11 2.236 2.084 404 Tarikolot 11 2.235 2.084 404 Puspanegara 11 2.235 2.084 404 TOTAL NUMBER 133 26.830 25.000 4.853 We also held promotion activities regular and in special occasion located in public area near the neighbourhood based on promotion schedule designed. We place our cook stove together with our oil supply in every depos we have, so that they can buy at once easily. This program is the implementation of bundling system we explained before in promotion strategy. We also offer membership program so that only buyer who can buy our oil supply. This strategy is used to anticipate oil buyer who wants to stock or resell the oil for trading rather than to consume by using protos cookstove. g. Market Development We will develop the market in spesific area named Citeureup, 45 km away from southern Jakarta and 20 km away from northern Bogor. We chose this region since it’s near factory of PT Indocement so that it can be correlated with CDM program done by them. Besides, this region is densely populated area which most of their citizen is from low-middle economic classes that mostly used kerosene as their way of cooking. These type of citizens belongs to our target consumers so by chosing this place is very beneficial for us. Citeureup consists of 12 villages, namely Hambalang, Citeureup, Tajur, Pasir Mukti, Leuwi Rubber, Nambo, Bantarjati, Gunung Putri, Lulut, Gunung Sari, Tarikolot and Puspanegara. These villages are part of the three District (kecamatan), namely sub Citeureup, Gunung Putri, and Cileungsi. There are 75.000 people live right next to the factory area. We plan to develop this community to become environmentally aware with cleaner and sustainability way of cooking and healthy life. By doing so we hope they will increase their ecnomic life through new and more employment surround them. Here is the map of Citeureup and its 12 villages surround PT Indocement, Tbk. Red lines circle represents our focus target market:TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 13
  15. 15. ”Clean Cookstoves, Sustainibility for Indonesia” Total land area of PT Indocement Tbk in Citeureup consists of 240 ha of land plants (including 78 ha of the building) which altogether having a 2700 ha area, including excavation and mineral reserves. It brought a broad impact on the surrounding community. Residential area is directly adjacent to production facilities, namely in the north, west, and partly from the southern boundary line of factory land. Quarry and adjacent conveyor located surround with residential land, agricultural land and industrial land. 2. BUSINESS OPERATIONS a. Organization and Structure Type, Employee, Team Bios, and Talent Gaps The suitable organizational structure is divisional one. This will support many parties that are involved within the chain. Divisional organization structure fits as well with the diversed operational and marketing activities.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 14
  16. 16. ”Clean Cookstoves, Sustainibility for Indonesia” Here is the definition of each element in organization structure: Team Biokrastoffe Biokrastoffe is the team’s name by whom this business plan is written. The team is ready and fully intended to lead the business as it was planned. It consists of three members who are more than capable to sit in board’s chair. All member of the team hold a graduate degree in Master of Management (MBA) and some professional experiences, locally and abroad. However, some expertise are required to cover Cleaning Development Mechanism area. The team vision is achieving healthy way of cooking to support Indonesia’s sustainable environment in 2015. Should any managerial help is needed, the team has a back up from PPM Management Consultancy to provide nexessary knowledge and service. More details regarding team members are given in the annexes. Key Parnertship The business and social relation with key partners are maintained by Biokrastoffe team. This relation is crucial as several possible revenues may come from here. These revenues could be in a form of a financial support or grant and payment. The ability to keep the relationmaintained may also be a key point to ensure flow of raw material. In one end, the key partners include any companies, business entities, in this case Shell Indonesia and Indocement Heidelbergcement Group. In the other end, NGO, foundation and general public such as foreign embassies in Indonesia are potential ker partners. In this part, the business plan includes UNFCCC for CDM project purposes. Marketing division Marketing division will lead teams for customer support, service and sales. The sales department are responsible to manage the product’s selling activity in daily basis or in a special events. In the same time, they are also given fully product knowledge. Meanwhile promotion and communication planning will be done by marketing department head. Production division The production activities will be divided into two parts, the distribution and production. The distribution team will have to collect the used oil and protos cookstove to the depo and further transfer it to the reselling point. The production team will have the responsibility to produce the plant oil out of the jatrhopa seeds. They too filter the used oil collected from the food chain and do further process. Production team will manage all the activities in the depot including material storage and equipmment maintenance. Purchasing: the division will hold responsibility for business or production procurement. Their position in the business will support the core activities mainly in operation and marketing. General affair and Human resource department General affair will hold the administrative responsibilities in general.However, this division has two subordinates. The division will be led by a head of division. Ideally someone who has human resource management background.  Human capital: this sub-division is responsible to recruit necessary employee from sales force, accounting staff, production personels and maintain employment. The division will be responsible for building strong system dedicated for employee training such as product knowledge, sales and marketing skill, communication skill and relationship building.  Administration: they will work on any business administration matters. Their position internally can be seen as an interdivision hub. They wil be responsible for keeping and storing any necessary document and archive,within a corporate level or lower.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 15
  17. 17. ”Clean Cookstoves, Sustainibility for Indonesia” Finance Finance division will be led by a division head and will have two sub-divison. The division will be responsible to organize cash-flow, tax management and accounting management. There will be two sub divisions here:  Accounting: this sub-division will work on accounting management activity including cash-flow management, journal, internal audit and tax.  Carbon Trading Management: the sub-division calculate all the cabon trading conversion. They have to measure the gain ina business and environmental perspective from 5 Clean Development Mechanism (CDM) The organization will be led by a CEO. One CFO (Chief Financial Officer) will have to be responsible for the business financial performance. One marketing director will lead the marketing division. A single person as Chief Operating Officer takes the lead of the operation division and one human resource director will be responsible for general affair and HRD Highlights Division Sub division Staff Labor Accounting 1 Finance CDM 1 Production 1 3 Operation Purchasing 1 Distribution 1 3 Sales 5 Marketing Technical Support 2 Customer Service 1 Human capital 1 HRD & General Affair Administration 2 Total number of staff and labor 16 6 b. Business Processes The business process describes how the revenue will be generated. In this business plan, there are three different business processes . Each of them refers to the proposed CDM project as the main drive of the business. Every operational activities of the CDM project are varied within the business. The details are given as the following Project CDM AMS-I.G The AMS-I.G will make use of the carbon trading with the base of 170 Ha ready to harvest jathropa plantation own by Indocement Heidelberg Group. The baseline of the project proposal is: oil crops is cultivated, plant oil is produced and used for the generation of electricity, thermal or mechanical energy displacing fossil fuel.  Process I Indocement Heidelbergcement Group will be proposed to use the jathropa seeds from their plantation. These seeds further are the source of raw material to produce plant oil. The oil it self is sold to supply the Protos cookstove.  Process II The proposal as a request to join Shell’s Global Alliances Clean Cookstove program. Shell Indonesia is then expected to promote financial donation that will be used for a CDM project registration at UNFCCC. Once the registration is fulfilled, the authorized auditor then performs project audit. Hereafter, the carbon trading incentives will be obtained as the project has been approved valid. The process from the registrationTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 16
  18. 18. ”Clean Cookstoves, Sustainibility for Indonesia” up to CDM project approvel will take a year to complete. For global overview of the project, please see the picture below. Highlights  Capacity: 320.000 litres of  Harvesting time: twice a  Broad of plantation Area: plant oil a year year 170 Ha  Retail price plant oil: Rp.  Total carbon emission  Initial investment for bio- 3.500 / litre improvement: 1.610 facility: Rp. 60.000.000 tonCO2 per year  Shell’s Global Alliances  CDM project registration: € Clean Cookstove: € 75.000 75.000 Project CDM AMS-II.G This project base line is based on installation of more-efficient thermal energy generaton units utilizing non-renewable biomass and/or complete replacement of existing less-efficient thermal applications and/or retrofitting of existing thermal energy generating appliances reduces GHG emissions by saving non-renewable biomass. In this case, the selling activity of Protos cookstove it self.  Process I: The first process is defined as selling the cookstove at $5 each. The revenue is fixed as much as $150.000 for 5000 units of Protos cookstove.  Process II: Basically, the process here is the same as what was mentioned in project CDM AMS- I.G. Only the project audit will have some diffrences. The initial fund needed for CDM project registration will be obtained from Shell’s Global Alliances Clean Cookstove too.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 17
  19. 19. ”Clean Cookstoves, Sustainibility for Indonesia” Highlights  Sales target year 1: 1600  Sales target year 2&3 : 1700  Total revenue up to year 3 @ $20 each: $100.000  Shell’s Global Alliances  Pre-heating material: Rp  Emission reduction initial Clean Cookstove: € 75.000 10.000 / litre year: 1605 tonCO2a year Project CDM AMS-I.H AMS-I.H project is base on biodiesel production from cultivated oil crops or from waste oil/fat and used for the generation of electricity, thermal or mechanical energy displacing fossil fuel.  Process I Main material of the biodiesel in this process comes from partner food chain restaurant and hotel in a form of used oil. After the used oil collection, it will be brought to the biofuel facility to be further processed. The outcome is the biodiesel used to supply as a fuel for Protos cookstove. Plant oil capacity does not fulfill the required fuel supply for 5000 Protos cookstove. Therefore, the collection of used oil plays very important role in this business plan.  Process II The process will not much differ from the previous two CDM project. The only different lays again in the project audit. But this will be the main concerned of the authorized party like UNFCCC.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 18
  20. 20. ”Clean Cookstoves, Sustainibility for Indonesia” Highlights  Collection target in initial  Selling price: Rp 3.500 / litre  KFC food chain in year: 300.000 litres Used oil will be bought from Indonesia: 317 stores in food chain for Rp. 1.400 / 2007 (assumption 50% of litre them located in Java)  Shell’s Global Alliances  Mc Donald food chain in  Emission reduction initial Clean Cookstove: € 75.000 Indonesia: 112 in 2011 year: 533 tonCO2 (assumption 50% located in Java) Year 1 Year 2 Year 3 Partner Additional Information Contribution Allocation Contribution Allocation Contribution Allocation Initial Fee for CDM Project BSH - - € 75,000 - - European Charity Program (Project AMS-I.G; AMS-I.H) Indocement 170 ha Jatropha 170 ha 170 ha Sustainability of Sustainability of Sustainability of Plantation already exist (Heidelberg Plantation (equal Jatropha Jatropha Plant Oil Supply Plant Oil Supply Plant Oil Supply since 2007 Cement Group) with $ 55,000) Plantation Plantation Initial Fee for Shell Cookstove Program Shell Foundation CDM Project has establish in India. For € 75,000 - - - - (Indonesia) (Project AMS- Indonesia will establish II.G) soon (end of July 2011) The Charity Plan The charity plan is set to collect the donation to fund the project. The idea is to save 1 euro cent from the first 15 million BSH unit sold in Europe. In 2010, BSH has sold 40 millions unit. Suppose in 2011 BSH sales stays the same that means BSH will be able to collect € 150.000 or equal to Rp. 1.898.544.000 within perhaps half a year. The 1 euro cent donation will be included into the retail price of the product. By doing this, any purchase on the unit sold will add 1 euro cent to the donation automatically. Also, to simplify the payment mechanism, the donation payment will only be available in every purchase with credit card and debit card. Therefore, the customer that want to buy BSH product and be involved in the program will not have to search for 1 euro cent coin. Many home appliances unit that BSH sells have a price range above € 100. The huge different between the retail price with the donation -1 euro cent - will not harm the price competitiveness of BSH product with those of competitors. Please see examples of mentioned BSH units below.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 19
  21. 21. SIEMENS HB23AB520 BOSCH HBA23B150E BOSCH GSD12A20Built in oven Built in oven RefrigeratorRetail price € 499 Retail price € 539 Retail price € 299Charity plan € 0.05 Charity plan € 0.05 Charity plan € 0.05SIEMENS KG36VV03 BOSCH WAE28162NL SIEMENS WD12D520Refrigerator Washing Machine Washing MachineRetail price € 349 Retail price € 469 Retail price € 699Charity plan € 0.05 Charity plan € 0.05 Charity plan € 0.05 At the same time ,this charity plan can also be used as BSH marketing or advertising strategy as the green issue is involved here. The communication has to be direct and eye- catching which will create a sense of an involvement and contribution in customer’s heart for a better world and living. In a way, their 1 euro cent will make a positive big different half-a-world far in Indonesia. Hopefully this will also help improve BSH sales. The issue will also bring up companies exposure beneficially, on environmental issue to the public. Retail chain store is the perfect place to sound loud the communication as home appliances products are mainly purchased here. All over Europe, there are many retail chain stores that sell home appliances. Their numbers, like Media Markt and Saturn, are growing up year after year which will positively support the charity plan to be succed.
  22. 22. ”Clean Cookstoves, Sustainibility for Indonesia” Highlights  Charity Plan target: collect  The customer in Europe is  BSH sold 40 millions unit in charity fund €150.000 in asked to join the program 2010. The charity counts less than one year by spending 1 euro cent in only for the first 15 million every BSH product they unit sold purchase c. Supply Chain and Distribution Channel, Collaborator and Partners The picture shown below represents the supply chain network of BSH Protos project in Indonesia. This supply chain connects all the concerned parties in the business. Further more, these parties and their roles will be described in this part of the report. Look at the picture below for better global view. Customer This business plan identifies three different potential customers. Each customer may have different type of goods to purchase.  The first customer is small food business. In Indonesia they tend to use gas fueled cookstove.  Household usage is considered as a potential customer too. However, the protos advantage, that is 100-200 liters of oil usage per year compared to 200-400 liters of kerosene, should be made familiar to them.  Biodiesel business is willing to buy the used oil. They need it as a flow of raw material in producing biodiesel. Key Partner There are several key partners involved here.  Food chain, restaurant, hotels: they play the role as used oil supplier and provider. The used oil will be traded from them with very low price per liter. The chance to collect used oil in a big scale will come from the fast food chain like McDonald and Kentucky Fried Chicken. They use oil in a big amount of it in their daily operation. Their big numbers of restaurantsTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 24
  23. 23. ”Clean Cookstoves, Sustainibility for Indonesia”  Indocement (Heidelberg Group): Indocement had planted jathropa in Citeurep, West Java, as vast as 170Ha. The land used for plantation was a former mining site. The plantation has two roles, first as a plant oil source. It can also be used as CDM categorization Reseller Partnership with local community trade union will hold the key role in the downstream area. This partnership too will empower local residence too. Here are the key roles the local community trade union has to play:  Carry the task as a reseller point for used oil, biofuel and protos cookstove.  They may also be considered as a service point to reach and engange the customers.  Communication center can also be established here. This will support product endorsement, product information and customer feedback.  Other parties rather than local community trade union can be involved too as a reseller. They can be in a form of small family stall, store or shop. Distributor and Depot Distributor and depot connect many players within the supply chain. The distributor main activity will be transportation. While the depot operates as a storage point of used oil or biofuel. There are three kinds of distributors and two types of depots. The details are given as the following: Distributor  One distributor is situated between the food chain and biofuel facility. The responsibilities will be included to collect the used oil from the food chain, store it in the depot and transfer it futher biofuel facility and local community trade union.  The second distributor links the biofuel facility and local community trade union. This distributor has to transfer the biofuel out of the biofacility to the biofuel depots and transfer it further to the local community trade union.  The last distributor is simply the Protos distributor. They have simply to ship the cookstove to the selling point, in this case local community trade union. Depot  The first depot will be used as the storage point of used oil  One more depot will be used as biofuel storage point. d. Pre Heating Materials 90% rubbing alcohol or “spiritus” as most Indonesian call it, will be chosen for the pre- heating material. There are many suppliers that might be requested to provide the pre- heating material. Mostly, the deal can be done by any local chemical store.However, the customer will be given the freedom to buy seperately from any parties.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 25
  24. 24. ”Clean Cookstoves, Sustainibility for Indonesia” Highlights  Assumption usage for one  Assumption 4 times a day  Selling price per litre: time light up the the cookstove is used: Rp.10.000 cookstove: 25ml 700ml / week of supply  Price from supplier: Rp.  Distribution cost: Rp. 300  9.500 e. Plant property and Equipment (Biofuels Factory) The bio facility is a production house to produce the plant oil and filtered used oil. This facility has several main equipment to be invested in. The details are given below:  Jathropa press machine This machine is used to press the jathropa seeds. The outcome is the jathropa oil. There are several types of such a machine. The electrical one can produce from 300 liters up to more than 2000 liters of oil a day per machine. Very simple designed press machine is given Rp. 2.000.000 price tag. The machine that the bio fuel intends to invest is the manually operating machine. Therefore, the capacity of the oil the machine can produce is much lower too. As the consequencies, the bio facility will have to own several of it. Capacity can run up to 25 liters a day. The operator number will be added up accordingly to the number of the machines. The facility is planning to have 10 of this machine to cope up with the monthly capacity.  Filtering Machine The same with its name, the machine has the very similar purpose. The machine filters plant oil and used oil into the more useable form. Its construction is very simple. Basically, it filters the oil through some layers of clothes or tight- structured fabrics. It costs in a range of Rp. 500.000 to Rp. 750.000.  Peeling Machine This machine will be the most expensive of all the machine the facility should has. It is used to peel out the jathropa fruit to have only the seed as the remaining part. The specification is shown below. The price starts at Rp. 20 millionsTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 26
  25. 25. ”Clean Cookstoves, Sustainibility for Indonesia” .  Oil Gallon and drums The gallons an oil drums are used to store any neccesary oil, from raw material to the processed oil. The facility should has enough nnumber of them. The number of oil gallon and drum will be adjusted equal to 20% inventory out of total capacity per month. Highlights Operational investment Unit Price each Total initial investment Press machine 30l / day 10 2,000,000 20,000,000 Filtering machine 50l / day 10 500,000 5,000,000 Peeling machine 250kg / hour 1 20,000,000 20,000,000 Oil Gallon 5l / unit 200 50,000 10,000,000 Drum oil 100l / unit 100 250,000 25,000,000 Other equipments 1 1,000,000 1,000,000 Total Rp.81,000,000  Depot The depot is intended to be a storage point. This will act as a distribution centre for used oil, plant oil, jatrhopa seeds and Protos cookstove. At the begining of year 1, the depot requires Rp 60.000.000. The fund paid will be included office rooms and equipments. The location of the depot accordingly will be measured in a such way that it is the optimal distance from all parties’ perspective. f. Value Creation Projections (Cost Coverage) See Annexes in Cash Flow StatementTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 27
  26. 26. ”Clean Cookstoves, Sustainibility for Indonesia” g. Key Assumption Key Assumption 1 Currency Convertion 1$= Rp 8,552 1€= $ 1.48 1€= Rp 12,657 2 Inflation Rate 6.70% 3 Days, Month and Year 1 Month = 25 workdays 1 Year = 300 days 4 Price from supplier: Jatropha seed free (from Indocement Plantation) Used Oil Rp. 1400/ litre (from restauran chain) Spiritus Rp. 9500/ litre each price assume increasing relative based on inflation rate 5 All activity is assumed no account receivable and no account payable 6 Price for CER is assumed € 17 /tonCO2/year h. Business Models Overview (Graphic) Business Model Protos’s US $ 50 COGS Cost Gap Incentive US $ 20 for retail End User Price Key Activities: Customer  Stove distribution Relationship:  Marketing  Community social program event  Sales activity Value proposition:  Membership program Customer segment: Key Partner:  Fuel supply  Very economic stove  Training  Kerosene and  BSH  User training  Affordable fuel  Discount card for wood users who  PT Indocement Tbk.  Fuel agency  Easy to get fuel protos user can’t switch to gas  PT Shell Indonesia development  Eco-friendly fuel  C and B - Segment  Potensial CERs Key Resources: Channel:  Easy to use stove  Rural and Buyer  Distribution team  Direct selling  Cleaner cooking suburban  Fuel Agents  Sales marketing  Community based team • Healthier people selling  Young to middle age  Training team • Happier planet  Event exhibition  Cookstove technology Cost structure: Revenue stream:  Distribution and logistic • The Charity program  Sales of stove  Marketing and sales activity  Sales of fuel  Training activity <  Carbon credit  Fuel processing  Partner’s CSR Program  Protos ’s COGS  Sales of Used oil  Used oil sales activityTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 28
  27. 27. ”Clean Cookstoves, Sustainibility for Indonesia” i. Financing Requirement See Annexes in Cash Flow Statement Projection j. Conclusions By raising capital fund from charity plan in Europe, involving BSH and all its chain including retailers and customers. We bring the campaign to offer non-cash BSH consumers 1 cent Euro for each purchasing activities. We target to gather amounts for € 150.000. The charity fund will be used to help to register CDM project AMS-I.G and AMS-I.H. The whole business plan which collaborate BSH, PT Indocement Tbk, PT Shell Indonesia will see break- even-point in the first quarter of the 2nd year. The NPV (Net present Value) will be Rp. 1.527.558.148 and IRR (Internal rate of Return) value would be 53% and 44% for MIRR (Modified Internal Rate of Return). We conclude that after implementing these whole program with the partners we have, we strongly believe that our vision “Achieving Healthy Way of Cooking to Support Indonesia Sustainability Environment” will be accomplished.TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 29
  28. 28. ”Clean Cookstoves, Sustainibility for Indonesia” 3. Annexes a. SWOT Analysis STRENGTH WEAKNESSES OPPORTUNITIES THREAT  Full support of  Jathropha is not as  The increasing  The risk of using he technical efficient number of local land for planting  Ten times lower economically as partners supports jathropa based on than kerosene in used oil for biofuels system reserarh efficiency  Sociazilation of in Indonesia from  Indonesian  The production of biofuels industry is 2007 government policy biofuels contributes still limited  Adequate plant oil not stated the full to secure energy  Less of governance’s resource for support of such supply incentive Indonesia issue  The use of biofuels  Unestablished  Pro job policy  The retail price of can reduce GHG marketing system  Pro planet policy gasoline and diesel emissions  Instability of  Pro poor policy is lowered by  Due to a longer biofuels price  Pro growth policy Government of value chain within  Local and Indonesia because the national international of the drop in boundaries, biofuel investment global oil rpices production creates  scramble new employment competition of raw  Numerous materials between availibility of raw foodstuffs and material in energy Indonesia  Large number of  Availability of large competitor in this plantation in industry Indonesia  Trend of producer  Cleaner burning, no to sell it export ash, no soot rather than import  Numerous number  Negative impact of employees toward environmentTEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 30
  29. 29. b. Competition Anlysis among Cookstoves Protos LPG Stove Kerosene Stove Woods Stove (1 Stove) (1 stove) (1 stove) (1 stove) Stove Rp 70,000 Regulator Rp 100,000Stoves Price Rp. 196,000 Rp 200,000 Rp. 40,000 Gas Tank (3 Kg) Rp 140,000 Total Rp 310,000.00Fuel Price (/unit fuel) Plant Oil Rp. 3,500/ litre Rp. 14,000/ 3 kg Rp. 8,500/ litre Rp. 1,000/kg Preheating (Spiritus) Rp. 10,000/ litre Fuel Consumption(/week) Plant Oil 2 - 4 litre 3 Kg 4-6 litre 5 Kg Preheating (Spiritus) 700 mlEfficiency 55% 53% 40% 35%Emission (/unit fuel) Carbon neutral 3 Kg CO2/Kg 2,5 Kg CO2/Kg 1,84 Kg CO2/Kg c. Projected Cash Flow and Income Statements Please See Annexes

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