Executive summary - Freemdiedhiou79.free.fr/mesdossiers/E-BUSINESS/Cours Irlande... · Web viewProject Summary Promoters “A promoter is an individual that finds out a new idea and

2006 Student Awards Galway-Mayo Institute of Technology

Contents:

1. PROJECT SUMMARY.................................................................21.1 PROMOTERS.............................................................................................21.2 PRODUCT.................................................................................................21.3 MARKET...................................................................................................31.4 INVESTMENT.............................................................................................31.5 SHORT OVERVIEW OF KEY ISSUES..............................................................4

2. PROJECT PLAN..........................................................................52.1. PROMOTERS.............................................................................................52.2. PRODUCT.................................................................................................62.3. PRODUCTION............................................................................................8

2.3.1 Process description...............................................................................................82.3.2 Proposed level of output......................................................................................92.3.3 Investment Details.................................................................................................92.3.4 Investment effect...................................................................................................102.3.5 Raw Materials.......................................................................................................102.3.6 Source and cost....................................................................................................102.3.7 Quality and training............................................................................................102.3.8 Environment..........................................................................................................102.3.9 List of equipment..................................................................................................112.3.10 Employment...........................................................................................................12

2.4. MARKETING............................................................................................122.4.1. Industry background...........................................................................................122.4.2. Market size.............................................................................................................132.4.3. Market trends........................................................................................................132.4.4. Market consumer.................................................................................................152.4.5. Market segment....................................................................................................152.4.6. Competition...........................................................................................................162.4.7. Market strategy.....................................................................................................172.4.8. Pricing policy........................................................................................................182.4.9. Marketing plan.....................................................................................................202.4.10.Projected market shares....................................................................................212.4.11.Management and employment..........................................................................222.4.12.Strategy for future development.......................................................................22

3. FINANCE....................................................................................244. Profitability..................................................................................24Annex 1 – Curriculum VitaeAnnex 2 – Calculation of Compartments’ VolumeAnnex 3 – Drawing of the kitchen and four compartment household waste binAnnex 4 – Drawing of the production flow

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1. PROJECT SUMMARY

1.1 Promoters“A promoter is an individual that finds out a new idea and launches himself in the development of that novelty. A promoter will analyse the market opportunities, threats and check if the new proposal suit the market. The risk taking is required”

We are a team of five international entrepreneurs with each different qualification, as follows: one Romanian student in Mechanical Engineering, one Irish student also from Mechanical Engineering, and three French students from Marketing. This melting of origins provides to our project a cultural diversity and also different points of view and ideas. Being aware of the ecological problem nowadays, we have decided to launch a reliable product, which shall be used for the recycling process. The separation of waste has been our target.

1.2 Product“A product is a good or service able to satisfy more or less completely a need”

After comprehensive research on the major environmental issues, we have developed a product that will help to ensure an effective separation of waste material produced in a household. According to the National Waste Report 2004, there are four major types of waste, and accordingly we have decided to design a four compartment household waste bin.

The four major types of waste identified by the national waste report are:

plastic, paper & cardboard,

organic,

glass and

non-recyclable waste.

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1.3 Market“The market place is a place of meeting between a supply and a demand of product satisfying a determined need. In a narrow point of view the market notion represents the consumers or potential consumers of the product.”

The market of our product is centred on householders and particularly the kitchen items.

We are going to follow the Porter’s model of the market in order to understand ours. According to Porter the market is composed of five elements:

i. The suppliers, which provides the raw materials and the components of the product.

ii. The competitors: our competitors are represented by the producers of one single compartment bins. There is a wide range of prices for regular waste bins, starting from 8 euro to 175 euros.

iii. The new entrants: taking into account that this is a new product, there are a lot of risks involved. A major risk is represented by the possibility of duplication of the design by future competitors. The costs of entry are high (purchase of a mould, raw materials etc.), we can make the market less attractive with an economy of scale.

iv. The substitutes: the reliability of the substitutes depends on a technical comparability, a relative price and cost of switching. The substitutes of our product.

v. The buyers: concerning our product, the buyers represent the Irish households. It is obvious that almost every households is already equipped with bins, consequently our marketing strategy is going to be based on convincing our target market to change their present bin for ours. We have to show them the advantage of our product through the liability of our goods, the benefits of long time investment with our customers and the contributions we are making for the environment.

1.4 InvestmentThe investment is required for financing the raw materials, equipment, premises, software and hardware in order to design, manufacture and market the four compartment household waste bin.

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1.5 Short overview of key issuesThe inappropriate waste management represents a major issue of our times. It is visible that the diversion of biodegradable waste from landfill has shown little progress and that, in particular, the municipal waste remains a considerable challenge to achieve the landfill diversion targets, set down by the Landfill Directive.In this respect, the challenge is to improve the present waste management and to provide the solutions to environmental issues. Our product is coming as a solution to the problems raised by the separate waste collection. A smarter way of waste collection will lead to a better global waste management.

Another key issue is the necessity to integrate the four compartment household waste bin in the existing architecture of the kitchen. This waste is specially designed to become an essential item in everyone’s kitchen.

The product will provide an important service to householders and also to the environment. Furthermore, the materials, which have been chosen we feel best, suit our product and are mechanically correct for this type of design.

The last, but not the least important issue is represented by the financial components involved along the entire designing and manufacturing process. The imperative requirement for major improvements in the ways of waste management is making this particular product to become a necessity of our times. As a consequence, financial resources must be found in order to develop and improve the four compartment household waste bin.

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2. PROJECT PLAN

2.1. PromotersThe name of our company is BINSTER Ltd.

The date of incorporation is the 16th February 2006.

Our company gathers five managers, each one having a determinant function, bringing to the company different values, which are necessary for its correct operation. The particularity of our business is that our team is multinational; thereby we brought to our business different ways of thinking that enriches the common reflexion.

The details of our directors are presented, as follows (see Annex 1):

The present Managing Director is Emilie Combe, which is from the area of Avignon in France and has a BBS in marketing from GMIT. Her course in France is very diversifying; she studied two training courses of long duration, which enabled her to acquire good knowledge of management.

The present Marketing and Design director is Aurelie Bureth, which is from the area of Toulouse in France and has also a BBS in marketing from GMIT. She has experience in the launching of products through a major project in second year in the university.

The present Marketing Director is Line-Jacques Leuly, which is from the area of Martinique in France and has a BBS in marketing from GMIT. Her course in France is primarily the bases on management and finance, which is a major asset for our company, enabling her to acquire good knowledge and a real vision of the company.

The present Production Directors, the Head Director is Andrei Soltan, which is from the area of Marasesti in Romania and has an honour in Mechanical Engineering. His course is much diversified; he has knowledge of management and administration but also engineering, being a student of the Faculty of Engineering and Management of Technological Systems.

The co director is Jacinta Barrett, which is from the area of Co-Cork in Ireland and has an Honour in Mechanical Engineering. She has received qualifications in medical Device Engineering and Production Engineering. She offers a great deal of knowledge in the designing of this product.

2.2. ProductPage 5 of 17


Our product was developed in order to counter act the issues raised by the increasing quantity of household waste as part of the municipal waste as shown by the National Waste Report 2004.

The necessity of this product is given by the necessity of effective household waste collection. It is an important factor in the international aspects in environmental behaviour.

As previously stated, the household waste can be divided into four major types of waste, as following:

Plastic: paper, magazines, plastic bottles and bags, cardboard, milk and juice cartons and

empty food tins and drink.

Organic: all food waste, paper towels and tissues, grass cuttings, pruning and leaves.

Non-recyclable waste: nappies, tin foil, blades, toothpaste tubes, non-CFL light bulbs,

crisps packets, biscuit wrappers, wax-paper wrappings, and yoghurt containers.

Glass: all glass jars and bottles.

The garbage bin was designed in order to facilitate different quantities of household waste. The use of each compartment is to be decided upon by each individual household owner. In this respect we have designed three different types of compartments, as follows:

two identical compartments with a capacity of 35 litres each, (see Annex 2);

a third compartment with a capacity of 87 litres (see Annex 2) and

a fourth compartment, specially designed for glass with a capacity of 60.5 litres (see Annex 2).

The fourth compartment is provided with a special wire mesh frame in order to ensure a safe storage for glass bottles,

The effective collection of household waste is to ensure the increase of quantity of recyclable waste and to reduce the landfill. By introducing this type of waste bin we want to dispose the waste products evenly. We want to divide the waste products in an environmentally friendly way. As stated in the National Waste Report 2004, the landfill is decreasing and the recovery is increasing, but the progress can be considered to be slow. The target for 2013 for the recovery is 50% and we know that by producing this type of waste bin we will help the recycling process to reach this target.

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From studying this design we have established that this type of product has become part of a kitchen unit taking into account the existing furniture (see Annex 3). Therefore, the height of the bin will be 900mm, which is a normal standard height of a unit. The dimensions of the bin are designed in such a way that it has enough capacity to maintain a high level of recyclable waste.

The dimensions which we have decided upon for this product are, as follows:

Length: 550mm

Width: 550mm

Height: 900mm

The drawer compartment, which is part of the overall structure, has a height of 200mm, length of 550mm and a width of 550mm. The top compartments, two of which are of the same capacity, have a length of 225mm, height of 700mm and width of 225mm. The third compartment is the largest of the three and has a length of 550mm, height of 700mm and the width is 225mm. The bottom compartment has a length of 550mm, a height of 200mm and a width of 550mm.

The most suitable material for this product is the High Density Polyethylene (HDPE). This material best suits our product because it is a low cost plastic, it is a hard and strong Polyethylene, lighter than water, also can be easily moulded and it is high resistant to many acids and solvents.

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2.3. Production2.3.1 Process description

Injection Moulding is the process of forcing melted plastic in to a mould cavity. Once the plastic has cooled, the part can be ejected. Injection moulding is often used in mass-production and prototyping. Injection moulding is a relatively new way to manufacture parts. The first injection moulding machines were built in the 1930's.

There are six major steps in the injection moulding process:

I. Clamping

An injection-moulding machine consists of three basic parts: the mould plus the clamping and injection units. The clamping unit is what holds the mould under pressure during the injection and cooling. Basically, it holds the two halves of the injection mould together.

II. Injection

During the injection phase, plastic material, usually in the form of pellets, are loaded into a hopper on top of the injection unit. The pellets feed into the cylinder where they are heated until they reach molten form. Within the heating cylinder there is a motorized screw that mixes the molten pellets and forces them to end of the cylinder. Once enough material has accumulated in front of the screw, the injection process begins. The molten plastic is inserted into the mould through a sprue, while the screw controls the pressure and speed.

III. Dwelling

The dwelling phase consists of a pause in the injection process. The molten plastic has been injected into the mould and the pressure is applied to make sure all of the mould cavities are filled.

IV. Cooling

The plastic is allowed to cool to its solid form within the mould.

V. Mould Opening

The clamping unit is opened, which separates the two halves of the mould.

VI. Ejection

An ejecting rod and plate eject the finished piece from the mould. The un-used sprues and runners can be recycled for use again in future moulds.

Advantages of Injection Moulding:

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http://www.what-is-injection-molding.com/Default.aspx?tabid=40#Sprue


high production rates

high tolerances are repeatable

wide range of materials can be used

low labour costs

minimal scrap losses

little need to finish parts after moulding

Disadvantages of Injection Moulding:

expensive equipment investment

running costs may be high

parts must be designed with moulding consideration

2.3.2 Proposed level of output

From our calculations, our estimated target for 2 years time is 13,140 units.

2.3.3 Investment DetailsThe necessary investment to manufacture the garbage bin can be divided into the following main items, as follows:

premises,

hardware & software and

manufacturing devices

The location of the premises is established based on factors that will influence the total cost of the manufacturing process, existing market and the road links with major cities in Ireland. Taking into account all these factors, we have decided that the most suitable location for the premises would be Galway City.

The second component of the investment is the consequence of the designing process. Computer Aided Design Software shall be used to design the moulds, which will be acquired at a later stage.

For the third major investment we must take into account the nature of the raw materials to be used and the nature of the manufacturing process. In this respect, 3 moulds are to be acquired together with handling devices, which will be used during the fifth step of the moulding process (i.e. Mould opening). Also, 5 different benches are to be used during the Preliminary and Final Quality Inspection phases (see Annex 4).

2.3.4 Investment effect

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The investment will achieve to high standards of recycling for people, which will improve the environment in the long run. We want this product to be a high effect in the percentage in the national waste recovery.

2.3.5 Raw Materials

The materials, which are suitable for this project and also mentioned earlier, are as follows:

HDPE;

Handles;

Hinges;

Roller hinge;

Wire mesh frame;

Moulds.

2.3.6 Source and cost

The wire frame, which is the structure for the drawer, is going to be bought from a supplier. This supplier works extremely well to satisfy there customers needs. They have looked at our design and are very happy to accept us as customers. They really enjoyed our product and thought that is was a very useful and practical design. The cost of our mould is going to be 10,000 euros. The cost of our material is 506 euros per tonne. The total of the smaller items, which are the handles and the hinges, amounts to 83.04 euros.

2.3.7 Quality and training

It is a necessity that all of our employees and our-selves will have the proper and adequate training. This is a set guideline as everybody needs to know what exactly he or she are meant to do and what they are able to do. It is also a safety aspect, because we need to know if our employees are working in a safe and friendly environment. Each product that we will produce will be of top standard. There is no room for failure. Each product will be inspected and checked for any damage, faults or cracks. If a product is in any way damaged then it will not leave the shop floor.

2.3.8 Environment

The environment is at the top of people’s priorities today. It is vital that we look after it as so much to date has been destroyed. We feel that by designing this product, we will help to improve the state of the environment. It takes only a short period of time to recycle and we feel that this product makes it a great deal easier for householders. This method hopefully will become part of everybody’s daily routine.

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2.3.9 List of equipment

The equipment involved in the design, manufacture and market stages is comprised of:

Item no. Equipment Specifications No. of

devicesPrice per

deviceEUR

1. Mould According to the design 3 10,0002. Arburg Allrounder M221-75-350 35 tons/35mm injection

unit (high wear-resistent and raised rotation speed), Ser.-No. 163470, 2 shifts, constructed 1995, complete without material funnel, standard without peripherals

1 4,900

3. Morris S3 hoist Capacity 500 kg safe3 m height of lift top hook

1 850

Total cost of equipment: 35,750

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2.3.10 Employment

We will be providing a number of jobs in the local area. We want to ensure that these jobs will be well supervised and well trained. A company that works well together produces better products. It is easier to work in a friendly environment when everybody is working together as a whole unit. For the first two years we will be providing jobs for twelve operators and four supervisors and one job for the initial mould design. We want to try and ensure that the system will run as affectively as it possible can.

2.4. Marketing2.4.1. Industry background

The recycling industry has been developed thanks to the state and the efforts to make sensitive the public to the management of domestic waste. The Environmental Protection Agency (EPA) that protects and improves the natural environment taking into account the environmental, social and economic principles of sustainable development has provided a great effort during the past 5 years. For the businesses, the Waste Directory of Ireland, which enables Irish business to identify realistic routes for waste as part of their Waste Management Plans, is a great actor of that.

More and more companies take care of the problem of the recycling; there is a big market and great opportunities for this kind of activities, there is a great diversity of companies, there are haulage companies who carry the waste to the landfill or the recycling factory, recycling companies which provide solutions for electronic, food, metal waste.

Our company will provide a disposal solution for the household who want to gain place in their houses, so we will sell a new product in a dynamic market, which constantly grow as showed in the National Waste report 2004. So the ingredients are a massive communication and we will profit of the national promotion of the recycling process and a quality service. The Irish Waste Management Act 1996 ensures that the recycling process will be part of the responsibilities of the local authorities and will give a legal frame to this activity:

The objective is to provide a legal framework to ensure that the holding, transportation,

recovery and disposal of waste do not cause environmental pollution.

Emphasis on producer responsibility. Local Authorities have significant powers in relation

to the presentation and collection of waste.

According to the Waste Management Act 1996, Section 5 "recycling" means, in relation to

waste, the subjection of waste to any process or treatment to make it re-usable in whole or

in part.

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2.4.2. Market size

The volume of waste and emissions has increased very rapidly as a consequence of advancing industrialisation and civilization. Major raw materials are at today’s rate of consumption will only last for a few more years. This consideration leads to the idea of recycling. The principal actors of recycling will be for our company the households that gather a major part of the Irish population. Our company will have great forecast shares of market. For the launching of our product we are going to touch approximately 1 household out of 10 for the first year and then over 5 years we want to reach 2 households out of 10. According to our statistical studies and our research it is estimated that up to 50% of households waste is produced in the kitchen, so our product will be perfectly adapted to the needs of the market. To calculate our market size we have determined approximately how many potential consumers there will be for our product and we have analysed the market feasibility between market demand and company resource. We have great prospects of evolution because the recycling market is not yet too developed.

Evolution of the population

Total population* 3 790 3 847 3 917 3 953Population growth rates 1.283 1.504 1.82 0.919Birth rates 14.3 15 15.4 ..

* In million

Source:OECD

2.4.3. Market trends

Nowadays ecology becomes a real societal, political and also economical problem. People begin to be aware of the treats that fly on our world. A lot of associations such as green peace, World Wide Fund (WWF) try to help people be responsible and to “educate” the firms, the households and the individual concerning the behaviour to be adopted in our daily lives.The ecology becomes also a business tool and a competitive advantage for a company (e.g.: products becoming from the equity trade). More and more firms are adopting a green market.

At the same time the households change their consumption to suit those new requirements. Indeed, they really feel concerned by that treats toward the world we live in, the world our children will live in.The ecology question will obviously stay at the first plan and people will be obliged to improve their attitudes concerning the protection of the environment.Our product concerns the garbage and in particular the different ways of recycling, that will become more important, if not necessary, in the future. Households try to fulfil their mission of recycling by sorting out their rubbish.

Our product suits these social and economical evolutions of the trends and is integrated in such ecological requirement.

Disposal and recovery of municipal waste, 2004

Material Quantity managed

Quantity landfilled(tonnes)

National landfill

Quantity recovered

National recovery

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(tonnes) rate(%) (tonnes) rate(%)Glass 123,446 54,642 43.3 68,804 56Paper and cardboard 821,903 446,306 54.3 375,597 46Plastic 295,890 239,986 81.1 55,904 19Organic 750,580 667,075 88.9 83,505 11

(Source: recycling organisations survey, local authority survey, landfill annual environmental reports and EPA municipal waste composition survey)

Municipal waste generation2002 2003 2004

household waste 1.679.098 1.704.844 1.737.416Commercial waste 975.744 1.141.274 1.227.489

Street cleansing waste 65.573 71.779 69.661Total waste 2.720.385 2.917.886 3.034566

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Marketing research

We already made a market research and we want to launch another marketing research confirming our strategy and the trends we perceived. This research will be more targeted on the needs of our potential customers.We want to conduct a primary marketing research; we will use face-to-face interviews, mail interview, telephone interviews. We will have precise objectives:

- improve our knowledge about the Irish households (Target market)- know if the urban consumers are more likely to buy our product

2.4.4. Market consumerOur future consumer will be divided up into several categories:

Couples with children Couples without children Single people.

For these various categories our product will be the same because recycling through the government or advertising becomes increasingly current in Ireland and that all goes to create a need in our future consumers’ mind that will buy our product.

There is a considerable body of research, which explores the waste management practices of householders but notwithstanding the two studies described above. There is currently a lack of information regarding consumer attitudes to recycling.

Surveys published by the strategic unit (2002) and the Welsh Consumer Council (2002) show that significant barriers to recycling include inadequate local facilities, lack of kerbside recycling scheme, space concerns for storing items, lack of convenience. For those not participating in recycling, a survey by Wastewatch in 99 found that “…main reasons for not recycling were laziness (30%) and lack of convenience (19%)”.

For our research and for the launching of our product we have studied also on the web site the CSO. However, with these researches we have tried to create a conventional product that will correspond for each person as well as single and couples with children or without children. As if the needs for the consumers change, our product will adapt to the future trends.

The most difficult task for our company will be to make some changes in the mentality about the rubbish so that recycling becomes an automatic gesture.

2.4.5. Market segment

“The strategy of segmentation is the process of dividing the market into groups of consumers with similar needs and evaluate which are likely to react in positive ways to the offer provided. It is toward that segments the commercial effort has to be made”.

It suits the requirements MASSC for a successful segment (Measurable, Accessible, Substantial, Congruent, Stable).

The criteria of segmentation for a product of large consumption like ours can be gathered in two parts:

I. Geographic, demographic and socio-economics

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Our segment is based on a social /demographic criteria: Irish households. We include in that segment all the cities of Ireland and all the kind of households (single, couple with children, couple without children, students sharing houses)

II. 2-behaviour / attitude of a customer faced with the product

Obviously, the customer must be interested and feel concerned by the recycling but the main point is that the households targeted will not be the only people who already fulfil the recycling aspects but will be the behavioural people (i.e. people who already used to divide their garbage in three and also people who are not used to do it). The household will purchase once (in the case of an equipment of the kitchen only and more in the case of an equipment of another room)

2.4.6. Competition

Innovative product.

We do not have directs competitors in the national market and by means of the shape and the design bins with 4 compartments do not exist on the Irish market. Obviously we have indirect competitors, i.e. the shop providing kitchen bins.Whereas of course on Internet there are plenty of bins with compartments from United States, Europe… Taking into account the costs of transport the final price is important ( about 150 euros).

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2.4.7. Market strategy

Our company must control internal and external variables. The external variables relate to the environment with STEP model:

Social with behaviour, beliefs and values are very important to create a product.

Technological environment with pace of change, production,

Economic environment with the purchasing power, inflation and interest rates, tax rates,

employment.

Political environment with competition policy, taxation policy and privatisation.

Our company will be a leader for the market because we launch an innovating product (bins with 4 compartments), we will have largest market shares, economy of scale, increase market shares with news products, we will have to protect market shares for this we must find a way of expanding the market. About our competitors, we do not have direct competitors, but we have indirect competitors with the producers of bins but with our position of leader we have a mobile defence that means continuous development to prevent future attack. For our strategy, promotion is very important; our company will act on several variables. First of all it will be essential to make known our product before it is launched, thanks to the partnership with the association “ Reduce Reuse Recycle”. This partnership will make possible the assimilation by the consumers of our product; our advertising campaign will be based on specialized magazines and local newspapers and leaflets received by each householder in their home. Once our product is known, our promotional strategy will be based on the long term with frequent and different advertising.

SWOT Analysis

Strengths WeaknessesBinster Ltd will launch a new, innovative product Our company doesn't have a huge range of product

that will prevent us from to develop our brandBinster Ltd will be located in Galway, Ireland best way Our marketing expertise is limited, we are to answer the specifics needs of the local market Our price is high in comparison of the other domestics Binster Ltd will profit of the constant growth of the recycling products

Opportunities Threats

Ecologic issues are more and more important in our society Our price is not accessible for everybody The selective tri is becoming an obligation We have a lot of competitors The households are already equipped by the ordinary

bins so we must convince them to buy a new

Product life cycle

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2.4.8. Pricing policy

The fixation of the price is a determinant element of the strategy of the company because it has direct consequences on the commercial results (number of sales) but also on the financial results (profitability).

The price of a product must be defined in function of:

The costs per unit, (e.g. costs of production, raw material, use of machines, employees)

The competitors

The demand (the elasticity of the demand, sensitivity of the consumers toward the price,

psychological pricing

The objectives of the firm (the strategy adopted, profit)

2.4.9.1 Cost of production of our product: The unit cost of our product is 103 euros.

2.4.9.2 Competitors: The market of the bins today has a large variety of prices. We can only find this

kind of bins on French, German, English web site from 20 euros to 160 euros.

2.4.9.3 The demand: The elasticity of the demand: the purchase of a bin being an occasional planned

and purchase might have a decrease in the price which will have low effects on the sales.

2.4.9.4 The objectives of the firmA profit margin of 15% has been decided for the first year. With a higher margin the product might not be able to face the competition. The price of our product, including our profit margin, is 119 euros.

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Different pricing strategy

Pricing strategy

Our policy tends to charge a high price because we have a substantial competitive advantage: we are an Irish-based company. It means that we can adapt our product to this specific market, feel the evolution and changes of the needs of consumers faster than our indirect competitors.

However, the advantage is not sustainable we know that our product will be copied in few years because the high price tends to attract new competitors into the market, and the price inevitably will fall due to increased supply.That’s why our pricing policy must be very well supported by our global strategy (communication, marketing, distribution)

2.4.9. Marketing planWe decided to have a marketing budget of 10 % of our turnover, because of our price we have to advertise, make us known from our target: Irish household. Even in case of slow sales we want to provide a consequent amount of money in the marketing area.

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To manage the marketing area, we will have a marketing Director, an assistant Marketing and two sales people. We believe that a student must be helped and given a chance to work and be in contact with a real work environment therefore we will favour the students, the placement to fill our gaps.

The elements of our promotion plan will be integrated to form a coherent campaign. We will use different tools in our promotion plan:

Our main objectives are to Inform (build awareness) and persuade that we have a new brand, a new company on this ma

We want to undertake a huge promotion plan: Direct Mail, specialised magazine, brochures, billboards, websites, and partnership with the Waste Directory of Ireland, because we provide an easier way to recycle the waste. So, before launching the brand we want that the institutional association (EPA, etc.) advertise for us by our partnership, we can provide brochures for them on the recycling theme, for schools and households (our target). We can build awareness actions and programmes for school on the theme of the recycling process: inform and in the same time make us known.

Trade Fairs and Exhibitions

The trade exhibitions are important because of the number of contact you can have, the promotion aspect of this is amazing because you can build awareness on your brand, take orders, provide specific information on your product and talk to the press. There is a giant trade exhibition who takes place every 18-month, we will miss the 2006 edition but we can take part in the next edition. (According to http://www.environment-ireland.com/)

Sponsorship Marketing

Our sponsorship policy will target the schools and association providing documents, brochures on the recycling process, provide support to the manifestation organised by www.raceagainstwasteireland.com or other associations.But our main objective is awareness and persuasion of our potential customers that our product is needed.We will organise a big event in relationship with the children and the secondary schools: we will organise a Design competition: invent a product in relationship with the recycling process, We will have two aspects in that event: pedagogical side involving data research on the recycling process, waste, on the existing product, the support of Binster’s team for the technical support.The winner will appear in a special magazine edited in the whole Ireland for this occasion and maybe if we find relevant ideas produce them. So we want to promote our concerns about ecology, Earth, IrelandChannel of distribution

The mean of distribution will be exclusively direct channels: because our target is the Irish household, the most effective way to sell our product is to present it to the consumer. The distributor must be familiar with the customer, it represent the friendliness, the fact that we care about the phenomenon of the waste problem, the efficiency that we provide.

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http://www.raceagainstwasteireland.com/


So we choose as our main channel: the retailers, all the shop proposing equipments for the house, it can be retail shops or supermarket (TESCO)The retailers have a much stronger personal relationship with the consumer. We are the only one on the market to propose this product, we think that propose this product in almost all retailers will bring concurrence but with our promotional plan reassure our place of leader.In general retailers are promoted and merchandising their product but we will provide a marketing expertise and support to put our product forward in their store: advice and assistance.

We chose only this type of channel because of our target but we want show our consistency stable and close from our consumer basis

We also want to be present on the Internet channel because we cannot be out of this area nowadays, be consistent will be our objective, create a data base on all kind of informations related to ecology, recycling process, research and our product and the event and technology we bring to the society. The main interest and one of the the most valuable way to improve our position on this market.The Internet has a geographically disperse market and the costs attached are very lowThere are low barriers low barriers to entry as sets up costs are low.

After our implantation on the market we will adapt our channel distribution strategy so we will expand and sell our products in the building company’s brochures, interior decoration stores. Because at long term we want to evaluate in a design, innovative, original brand that can fit in all spaces: decoration design or common decoration. Maybe evaluate toward single or couple without children if possible.

2.4.10. Projected market shares

Our company has a projection of sales at 10% per annum. This is our projection and our company will be able to face more important risks of the sales. Our business has the ability to meet the market needs effectively and can exploit the market forces. Indeed, our company launches out in a field still being developed in Ireland and the future shares of markets are therefore very important. However, our company will have to pay attention to the needs of the consumers and the evolution of mentalities. To have the most effective results and to see its shares increase, our company will follow-up very precise steps, which are: business mission, SWOT analysis, goal formulation, strategy formulation, program formulation, and implementation.

2.4.11. Management and employment

Our business seems to be a multi-skills management team because we have two engineers, one who have experience in the industry (Industrial engineer diploma) and the other who have a mechanical degree.

For the management of the company we plan to have a weekly meeting with the whole team where we will speak about the sales, the communication and everybody will have the right to intervene and give his opinion on the general state of the business.

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The financial team miss a worker who really knows the Irish market and the rules of Irish accountancy and that is why we want to hire an independent auditor who will help us to produce financial reports for the bank, take care of our accountancy and everything in relation with the financial aspect of the business.

We plan to hire a lot of marketing students because we think that they will have fresh knowledge and the motivation needed to launch a new business.

Categories of employees Type of contractMarketing and Design Director Full timeAssistant Marketing and researcher TrainingFinancial Director Full timeManaging and sales Director Full timeProduction Director Full timeSupervisor*4 Full timeMould monitor Full timeOperators*12 Full time

2.4.12. Strategy for future developmentPlanned for expansion and additions to product

The legislation is the same in the European Union concerning the selective recycling and can predict that our product will eventually be expanding. In the other hand, if we take into account the price of exportation (red tape, transport, market research etc.), our product will not be any more competitive in terms of price. On top of that, some countries are implied in ecologic policy for a more long time than Ireland and obviously have their garbage adapted to that policy, thus we will be faced with low cost shops settled in that countries (e.g. Ikea, Leroy Merlin)The best strategy to be adopted for expansion is to extend the market at a national level, by targeting:

the restaurants, pubs, companies and schools, which can also be a promotion (i.e. the

employees or the customers can become potential customers of our business)

the Council by placing bins in the street (few councils have launched their city in a zero

waste project). In that case we have to change the raw material of the product into a

material more suitable for the weather.

Indeed, the expansion happens in the phase of growth and we can guess some new entrants, direct and indirect competitors will arrive; consequently it is very important either to modify some features of the product (design, size, price etc.), or to extend the segmentation in order to keep and increase our markets shares. Growth potential

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At first, we targeted the Irish households, which is a important segment. The first step for the communication product will be to show the advantage of our product and convince the households to change their actual bins for our product. We suppose a slow beginning and an increase of the sales after that. We expect our customers will make a testimonial of their satisfaction around them and will launch a word of mouth. In terms of numbers, at the beginning, we hope to sell 20% to households and the second year 25%.

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3. FINANCEFinancing the companyThe cost of production of one unit includes the cost of the production factors: the raw material, the equipment and the working capital.

Price of material: 506 euros per tonne Price of handles: drawer - 5.976 euros

3 compartments – 27.36 euros Price of hinges: 8.01 euros Price of roller hinge: drawer 41.7 euros Mould: 10,000 euros Labour cost for one year: 267,000 euros

12 normal operators: monthly salary = 1220 euros

4 supervisors : monthly salary = 1400 euros

Cost per unit = 103 euros

4. PROFITABILITY

Year 1 Year 2Sales 154700 190400Production 1300 1600 Cost of sales 133900 164800Gross Profit 20800 25600

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