5/27/2013

GET BEST OUT OF WASTE

UNIVERSAL BUSINESS SCHOOL

Retail management strategy

MBA2

RAHUL SHRIRAO

KESHAV SHARMA

SNEHA BISWAS

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TABLE OF CONTENT

SR.NO INDEX PG.NO 1 Executive summary 2

2 Introduction 3

3 Why this retail store? 3

4 Concept of store 6

5 Target market 7

6 Positioning strategy 7

7 Retail setup 7

8 Competitive advantage 8

9 Products can be reused and recycled 8

10 Pricing mix 16

11 place 16

12 promotion 16

13 Supply chain management 17

14 Financial plan 20

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As everyone are aware of limited resources so we thought to come up with retail store which does

recycling , reusing and reducing waste of household goods. This will lead to get new and useful

thing from the waste. Our main motto is to target all the sectors.

Reduce, reuse and recycle is a concept that people everywhere are starting to understand and apply

to everyday life. Its principles are quite basic, but are a necessity for maintaining a sustainable life.

To remain productive, reducing one’s intake of energy and materials is vital. The toxicity of trash

is at an all-time high and the only way to stop this is by preventing waste from the very beginning

of its life.

The concept of reuse is applied by reinventing items after their initial life and avoiding additional

waste by all means necessary. Though the concept of reuse is very important to the lifecycle of a

material, there are times when a second life simply cannot be created for a certain item. However,

when one does have to throw an item away; an important proactive strategy is to buy products that

can be recycled or, at the very least, determine in advance the product is an alternative to a similar,

less recyclable material. Recycling is the process of turning items considered to be waste into a

valuable resource.

This process does include many steps, but begins with taking items such as cans, glass, newspapers

or plastic to a recycle bin or collection facility. The more often individual users partake in this

practice by consciously making themselves aware of an item’s recyclability, the easier the entire

process will be for the rest of the world.

This ease will simply create a higher demand for recycled products and will be more of an incentive

for large companies and corporations to use and buy recycled products, making the entire process

more successful and stress free. These simple ideas of reduce, reuse, recycle are just the beginning

of challenging ourselves in preserving our environment, but extremely essential in ensuring the

success of conservation.

Executive summary

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Over the past decade, concern about the environment has brought with it a massive increase in

recycling around the world.

However, long before our growing levels of waste became an environmental concern, recycling

was a part of everyday life. Resources were not as readily available as they are today so people

valued them and reused materials where ever possible.

Recycling has become an increasingly important part of our more modern society.

Up to 60% of the rubbish that ends up in the dustbin could be recycled.

The unreleased energy contained in the average dustbin each year could power a television for

5,000 hours.

The largest lake in the Britain could be filled with rubbish from the UK in 8 months.

On average, 16% of the money you spend on a product pays for the packaging, which ultimately

ends up as rubbish.

As much as 50% of waste in the average dustbin could be composted.

Up to 80% of a vehicle can be recycled.

9 out of 10 people would recycle more if it were made easier.

Waste recycling has some significant advantages.

It leads to less utilization of raw materials.

Reduces environmental impacts arising from waste treatment and disposal.

Makes the surroundings cleaner and healthier.

Saves on landfill space.

Saves money.

Reduces the amount of energy required to manufacture new products.

Introduction

Why this retail store?

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Aluminum

24 million tons of aluminum is produced annually, 51,000 tons of which ends up as

packaging in the world.

If all cans in the world were recycled, we would need 14 million fewer dustbins.

36,000,000 billion worth of Aluminium is thrown away each year.

Aluminium cans can be recycled and ready to use in just 6 weeks.

Glass

Each family uses an average of 500 glass bottles and jars annually.

The largest glass furnace produces over 1 million glass bottles and jars per day.

Glass is 100% recyclable and can be used again and again.

Glass that is thrown away and ends up in landfills will never decompose.

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Paper

Recycled paper produces 73% less air pollution than if it was made from raw materials.

12.5 million tonnes of paper and cardboard are used annually in a particular country.

The average person in the economy gets through 38kg of newspapers per year.

It takes 24 trees to make 1 ton of newspaper.

Plastic

275,000 tonnes of plastic are used each year that’s about 15 million bottles per day.

Most families throw away about 40kg of plastic per year, which could otherwise be

recycled.

The use of plastic in Western Europe is growing about 4% each year.

Plastic can take up to 500 years to decompose.

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This would be unique retail store which will provide a new and useable product for customers

from their household waste. This store will be with full of environmental features such as

greenery, lights will be with water bottles in day time and at night there will be lamps which

would be made up of waste papers.

This will create atmosphere where people could realize the value of resources and avoid waste

with the help of reusing and recycling of goods. And we are going to provide the services to the

people.

BRAND NAME: GET BEST FROM WASTE

TAGLINE: WIPE OUT WASTE

Brand logo

Get best out of waste

Wipe out waste

Concept of store

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Target market would be not only the young generation but also the elder people because waste of

materials is mostly hated by old generation they try to avoid waste so by providing this services

we could help them create a new product from their waste.

We will use social media, viral marketing to target potential and new customers by making them

realize that how resources are important and they are limited which could help us to expand our

business.

Customers can give their household waste and will give them a new and useful product with their

unwanted items. This will lead to growth of our business.

Positioning statement: “A place where you can find your unwanted things are changed into

valuable things”

Get best form waste will use the technique of viral marketing, mass marketing, one-to-marketing

and direct marketing. Products will be of emotional attachments and distinctive in nature.

The store design would be exceptional with creative products and from that people can directly

buy or whatever is unwanted for them they can give us and we will make valuable product from

the same.

It would be mostly look like museum or any historic place with beautifully décor and antic models

which would be made up of waste.

Positioning strategy

Retail setup

Target market

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It would be completely different idea in terms of reusing of waste. In terms of other store it will

be very unique retail store where people will enjoy purchase of exclusive goods as a gift or for

self-use purpose and it will enjoyable shopping experience for them.

This themed store would generate excitement; create a sense of place, and increase traffic,

visitation time, frequency and gross revenues, resulting in higher occupancy and higher return to

per square feet. Real, tangible experiences that invite interaction and drive repeat visits and

purchases are the happenings that would create distinction and sustainable competitive advantage.

Competitive advantage

Products which can be reused and recycle

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Pricing will be according to the customers such as:

For mavens (high)

For bourgeois (medium)

For economy (low)

Location would be with other retail stores and especially in crowded place like markets and

highways for selling unique products. And for taking waste products from people and making

them valuable this stores basically will be present near city or town.

When expanding into cities like Pune, Kolkata, and Delhi they can have exclusive planned

stores. The most important requirement will be experience in those stores. It has to be huge and

spacious and have most of the stocks on display.

1. Mass media: In the commencement of business more investment will be required for promoting

the store as it is a new concept. Television ads in youth channels like Ad mad, discovery and

pogo will be done. For online, a website will display the products made from waste. Online sale

will be done at the start. Customers can have visit the stores to experience the products and the

high-class service provided by the store representatives. This is all done to create a high-brand

value in the mind of the customers. Of course, social media will be used extensively to keep the

users of those sites updated with the happenings in the store. Creative arts and products will be

printed in magazines.

2. Events: Events such art show or unique creative products show will be organized and items

could be sold at discount rates like any festival time or in “kala ghoda” festival etc which will

create cognizance amongst people.

3. Customer relations: Public relations can be built by organizing fest ones in a year so the new

customers will get to know about the store.

4. Sales promotion: Products will be given in discount but at the end of each season like wooden

products may get destroyed during rainy season so before rainy season will try to sell wooden

products at a low rate.

5. Direct marketing: Experts in creativity will be the brand ambassadors of stores.

Pricing mix

Place (locality)

Promotion

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We have to ensure that the Supply Chain Management has the right strategic suitable with the

positioning of the store. Since Customers will come to the store due to the store image and for

the multiplicity that the store offers, it is essential to have high product availability and right mix

of inventory. Most customers there will not be looking for the lowest price.

Hence for us it is necessary to maintain a good merchandizing mix to ensure availability at the

same time keeping the costs in reasonable control. All decisions regarding inventory, logistics,

operations and information flow will ultimately impact the customer experience which is one of

the differentiating factors for our store.

Gather waste

materials

Free home

delivery and pick

up waste

Sell it to

customers

Create a

product

Supply chain management

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Inventory management

Inventory would be managed with the unwanted things available with customers and even from waste

centers. And according to that items can be made and customized.

Logistics and supply

Products will be directly supply to the store otherwise if it is ordered products then it will straight away

transfer to customers that will save travelling cost.

Presence of store

Interior decoration of store would be like any historic place with dim lights and all waste materials

reused. Things which would be present in store such as unique chairs, unique items, creative

merchandises etc.

Store layout

Three types of rooms in store

Cash counter room to receive payments from customers

Stock room to store the items

One large spacious room like huge hall of 2000 square feet for display of products or items.

Total area: 3000 sq.ft

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w

Entry Exit

Huge equipment display

Items

display

Items

display

Stock room

Washroom Store

room

Window

display

Window

display

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Requirements of employees

One for stock management of items

One for cash handling the one who will seat at cash counter

Three sales girls who will be on floor to explain the specialty of products

One manager who will handle the overall store

One person to take care the cleanliness of the store and items

Initial cost

Cost of products price quantity

Rent 100000

Deposit 100000

Table and chairs 20000 4

computer 25000 1

landline 3000 1

stationery 500

Maintenance

cost+labour

100000

Total cost 348500

Total expenditure

Total cost would be 348500 for first 2 months.

Financial plan