Balancing the Budget Portfolio

By: Linda Baumgartner, Lisa Van Faassen, Stef Bandstra and Evelina Kucherenko

Class: ICV1A

Teacher: Pieter Swieringa

Date of Submission: 17 June 2013, 16:00

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ContentsExecutive Summary..........................................................................................................................................3

Personal Data of the Venture Members...........................................................................................................4

Company Description.......................................................................................................................................8

Internal Analysis...............................................................................................................................................9

External Analysis.............................................................................................................................................10

The Swot Analysis...........................................................................................................................................11

Financial Statements......................................................................................................................................12

The Event........................................................................................................................................................16

Reference List..................................................................................................................................................20

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Executive Summary

Across the Netherlands, the emerging environmentally friendly trend is seen as an explosion of growth

recently. People are becoming more and more interested in being ‘green’. Our market research has shown

that 9 out 10 Holland citizens have bikes and mobile phones, and all of them have difficulties with charging

them while travelling or being on road. Our company decided to come up with the smart solution to this

problem the GO Charge! The Go charge is a lightweight, as well as highly efficient, bicycle generator that

has a re-chargeable battery pack attached to it designed to power any of your electronic or mobile devices

via USB. Our generators can be attached on most of the standard bicycle frames found in the Netherlands

and the battery packs detach easily to quickly extend your battery life. Our clients are modern commuter

cyclist, the urban biker, the weekend rider, the gadget lover, the green fanatic, and anyone that’s ever

needed a charge on the go. By backing the Go charge, you’re also funding technology that is need around

the world. The marketing strategy of the GoCharge is to emphasize the contribution to the world that

people will make by using our product. The product will be available online as well as other retail stores

such as sports stores. We plan to build our client base through newspaper promotion as well as through

brochure and poster advertising, hoping that our services will appeal to all bike users throughout the

Holland.

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Personal Data of the Venture MembersCurriculum Vitae, Lisa Van Faassen

Personality

Name: Lisa van FaassenAdress: Noorderkerkstraat 5-1

9712RB GroningenPhone: 0653991905E-mail: lisavanfaassen@hotmail.comDate of birth: July 16, 1995Birth place: EmmeloordGender: femaleNationality: DutchMarital Status: UnmarriedDriving licence: none

Education

sep 2012 - heden HBO, International Communication (bezig)Hanze Hogeschool, Groningen

sep 2007 - jun 2012 HAVO, HAVO (behaald)Emelwerda College, Emmeloord

Work experience

okt 2012 - apr 2013 Ahold, GroningenFunction: CashierProceedings: Cashier activities

nov 2010 - sep 2012 HEMA, EmmeloordFunction: Sales assistantProceedings: Advise and help customers. Also cashier activities.

Other

Talent: Dutch, fluentEnglish, fluentGerman, rational

Computer literacy: Microsoft Word, very good. Microsoft Excel, rationalAdobe Photoshop, rational. InDesign, rational

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Curriculum Vitae, Linda Baumgartner

Personality

Name: Linda BaumgartnerAdress: Werfstraat 10c

9712VNPhone: 0643287375E-mail:

linda_b121@hotmail.com Date of birth: 28, February, 1993Birth place: HelsinkiGender: FemaleNationality: FinlandMarital Status: UnmarriedDriving licence: none

Education

sep 2012 - present HBO, International Communication Hanze Hogeschool, Groningen

sep 2006 - jun 2012 Kulosaari International School, Helsinki

Work experience

February 2011 – September 2011

Café SvartholmFunction: WaitressProceedings: Cashier activities, Waitressing, Bartendering

February 2012 - present Siivousfirm Mirja PekkolaFunction: CleanerProceedings: Help older people with cleaning their houses.

Other

Talent: English, fluentGerman, fluentSwedish, rationalFinnish, fluent

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Computer literacy: Microsoft Word, excellent. Microsoft Excel, rationalAdobe Photoshop, excellent. InDesign, excellentAdobe Illustrator, excellent

Curriculum Vitae, Stef Bandstra

Personality

Name: Gerke Stefan BandstraAdress: Workumstraat 48

9718HLPhone: 0643287375E-mail: Stef_bandstra@hotmail.comDate of birth: 16 September, 1994Birth place: EmmeloordGender: MaleNationality: DutchMarital Status: UnmarriedDriving licence: none

Education

sep 2012 - present HBO, International Communication Hanze Hogeschool, Groningen

sep 2006 - jun 2012 HAVO, HAVO (achieved)Emelwerda College, Emmeloord

Work experience

February 2011 – September 2011

Zeilmakerij LampeFunction: Cashier and technical assistantProceedings: Cashier activities

February 2012 - present Poiesz Supermarkets NetherlandsFunction: Sales assistantProceedings: Advice and help customers in their decisions. Also cashier activities.

Other

Talent: Dutch, fluentEnglish, fluent

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German, rational

Computer literacy: Microsoft Word, excellent. Microsoft Excel, rational.

Curriculum Vitae, Evelina Kucherenko

Personality

Name: Evelina KucherenkoAdress: Amethistsstraat 73

9712VN, Groningen

Phone: +31630141073E-mail:

kuevka@yandex.ru Date of birth: 1, October, 1995Birth place: KhmelnitskyGender: FemaleNationality: UkraineMarital Status: UnmarriedDriving licence: none

Education

sep 2012 - present HBO, International Communication Hanze Hogeschool, Groningen

sep 2005 - jun 2012Khmelnitsky Gymnasium № 1, Ukraine, Khmelnitsky Certificate of general secondary education

Work experience

February 2011 – September 2011

Khmelnitsky, Ukraine Function: CashierProceedings: Help and advice customers, cashier activities

Other

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Talent: English, fluentGerman, rationalUkrainian, fluentRussian, fluent

Computer literacy: Microsoft Word, excellentMicrosoft Excel, rationalAdobe Photoshop, excellentInDesign, excellentAdobe Illustrator, excellent

Hobby's and interests: Travelling, Swimming, Reading

Company Description

Vision

Our vision is to protect and respect the environment by providing environmentally friendly products available for people all over the world.

Mission

Our mission is to deliver the highest quality products to our clients and play an environmentally friendly role in delivering these products.

Motivation of business choice

We wanted to create a product that currently does not exist, and something that will help people in everyday use. We are becoming more dependent on technology, and it is becoming more and more important to us. We rely on apps on our phones such as Instagram and Strava, which takes up a lot of the battery on our phones these days. Our product will allow to give people a piece of mind that will allow you to charge your phone whenever and wherever you need it. Our biggest motivation towards making this product was to create renewable energy that is clean and something that is environmentally friendly. We believe that this is a type of energy is needed around the world. Not only will this help people in the developed world but also possibly people living in the developing world, to help those that are not in reach for electricity.

Location justification

Our business is currently located in a city called Groningen in the Netherlands. People in the Netherlands have an active lifestyle where the average person uses their bicycle every day. This has a positive effect on the image and total use of our product. In addition, the Dutch culture is creating more awareness of their environment and is more involved in becoming more environmentally friendly.

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Internal AnalysisGoCharge’s objective is to provide their customers a brand new and easy way of charging their technology, by delivering the highest quality products to our clients as well as playing an environmentally friendly role in delivering these products. GoCharge is a customer-oriented organization that tries to achieve the objectives through their core competencies that includes its resources as well its capabilities that allows the business to stand out and be different when comparing to its competitors.

The GoCharge product itself brings a very unique brand identity because of the environmentally friendly part of the product. The GoCharge is unique in the way that it is a wireless charger connected to your bicycle that can charge your phone, laptop, or camera with a removable battery pack. As you ride your bicycle, the peddling harnesses the kinetic energy you generate, either directly charging your device on the steer or storing the energy in the detachable battery pack, giving you on-demand power whenever and wherever you need it. Buying this product therefore funds energy that is eco-friendly and this is needed to protecting our world.

Some of the intangible resources include the knowledge and expertise of the firm. The GoCharge products are being produced in factories within China, Beijing. These people creating the products are experts in creating dynamos, which will contribute strength towards the company because of their skills. The product itself is being produced in China, however, the products are being sold in the Netherlands, with our target group being people living in Holland between the age of 16 to 60 years old who have an interest in sports activities. The employees working within the organization in the Netherlands are highly educated in certain fields. This will contribute to an additional strength of the organization, because we have a mixture of skills that will help us achieve our goal. The employees will be working in a building located in Amsterdam. In addition to this, the organization follows a hierarchical structure and the importance of the corporate culture within the organization is very important within the firm. It is important that everyone working within the firm knows the values and the mission of the company, as well as respects each other. It is also important that everyone within the firm is committed to working to ensure the success of the organization.

With the preceding facts, we can conclude that the company offers several positive internal aspects with strengths. However, the organization also faces some weaknesses. Because of the high quality of the product, the price of the product itself is also relatively high. Because of the high price of the product, it may narrow down the number of our customers and we may not be able to reach everyone we would like to. In addition, even though we offer a guarantee for the product, another weakness is that it may break if you do not handle it with care. Furthermore, there is always a possibility of it getting stolen from another individual when attached to your bicycle.

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External Analysis

In addition to the internal environment, the external environment also provides several threats as well as opportunities towards the company.

The production of the product will take place in China as the costs are relatively low there. Therefore, the company’s supplier will be located in a company within Beijing. However, the product willed be launched in the Netherlands, as biking is one of the most popular commonly use of transport among citizens within the Netherlands, so for the company this would be convenient and profitable. Therefore, our customers will be the citizens throughout the Netherlands and the product will be oriented on the ‘sport-lovers’ who travel a lot by bike. Firstly, we decided to promote the charger in larger cities such as Amsterdam, Den Haag, and Rotterdam by using different media activities such as advertising it in local gyms, sport shops, newspapers and magazines, as well as promoting it in High Schools as well as Universities. Consequently, if the product becomes popular we will expand our production in smaller cities.

Some of the various opportunities that the macro-environment of GoCharge provides are for example the current change in the increase of the trend of the society wanting to become more environmentally friendly. Due to the current development of going green, many customers are willing to pay more in order to get high quality and environmentally friendly products and this is exactly what Go-charge focuses on. Even though this business offers its product for a relatively high price, the target group may still be willing to make this investment to add additional value to their daily life.

Even though the product is distinctive and has its own characteristics, we have one competitor that is also focused on wireless charging, which may cause threats towards our company. This product is namely the ‘Power Mat’. The competitor, however, is diverse in the way that the product generates energy in a different way. GoCharge harnesses the kinetic energy you generate, either directly charging your device on the steer or storing the energy in the detachable battery pack, giving you on-demand power whenever and wherever you need it. The Power Mat does not work in a similar way.

An additional threat could be the economic environment around the company. For example, in case of a market boom, recession, or a growing inflation, it can all affect the way our company operates. This may also affect our target groups, in the way that people will lose consumer confidence and will not be confident about their stability of their income and therefore this will also affect their spending activity. This in turn, will affect our income because of the loss of potentially customers. In addition, unemployment levels, and decrease in income levels may also affect our target group’s spending activity.

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The Swot Analysis

The event

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SWOT Analysis Template

We are assessing the strengths, weaknesses, opportunities, as well as threats within the EcoMove organization

Strengths

- Unique brand identity- Corporate Culture- Knowledge and expertise

of the firm

Weaknesses

- High price of products, loss of potential customers

- Possibility of the product breaking

- Possibility of product getting stolen

Opportunities

- Rise of environmentally friendly trend

Threats

- Economic surrounding(Recession, Market Boom)

- Power Mat competitor- Loss in consumer

confidence(Decrease in income levels, unemployment etc.)

Financial Statements

Task 6: Financial Statement

A. Start up costs

Initial Investment Costs:

Initial Investment Costs (sunk costs)

Patent €5000

Webshop €500

Machines €1000

Total €6500

Monthly Operating Costs

Rent €1000

Promotion €8600

Webshop €10

Wages per month €10000

Total €20068

Variable costs per unit

Production costs 9

Total 9 per unit

Notes

Promotion costs: €5,400 promotional give-away. €52,764 magazine promotions. €15,036 Euros on

brochures and posters for school. Total promotion costs: €73200. Web shop costs:

- Software: €250 for updates and €250 for IDEAL payment integration- Domain name of the website http://www.gocharge.com €7 per year- Hosting costs: €10 per month- Total web shop costs: €500 start-up costs and €17 fixed costs per year

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B. Cash flows

Notes

1. In 2014, 2015, 2016 wages are increased by €1000 each year.

2. Sales are estimated to rise at an average rate of 20% each month, fluctuation is not included. After a

year of rising sales, we expect our sales rate will increase with 10% each year.

3. €10000 Wages a month (2500x4 employees),

4. The GoCharge production costs are 9 per unit production cost (transport and material costs in

Asia included). Adding up wages plus the expenses made up for each month according to our sales

for production costs.

5. The Retail price of the GoCharge is €24,95, we are estimated to sell 500 products in the first start-up

month.

June-December 2012 (In Euro’s)

Jun Jul Aug Sep Oct Nov DecRevenues 12475 14970 17964 21557 25869 31041 37251Expenses 14500 15400 16480 17776 19333 21196 23437FCF -€2025 -€430 €1484 €3781 €6536 €9845 €13814Total Revenue €161127

Total Expenses €128122

Income €33005

June 2012 - December 2016

2012 2013 2014 2015 2016Revenues €161127 €177240 €194964 €214460 €235906Expenses €128122 €140935 €155028 €170531 €187583FCF €33005 €36305 €39936 €43930 €48323

C. Net Present Value: ?

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D. Balance Sheet

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F Break-Even AnalysisFor the first month:

24.95N - 9N - 20068 = 015.95N = 20068N=1259

Task 7: Market your Product 4 P’s apply the knowledge from the Marketing class.

Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want. There are different kinds of products such as specialty products, unsought products, convenience products and shopping products. The product we designed is in the category specialty products, with unique characteristics for which a significant group of buyers is willing to make a special purchase effort. GoCharge is designed to be a lightweight generator to charge your phone, laptop, and camera which includes a removable battery pack attached to your bicycle. The case that comes with it is water-resistant that can be clipped onto your steer in order to attach your phone. As an individual rides their bicycle with the GoCharge attached, the peddling of the individual on the bicycle harnesses the kinetic energy you generate, either directly charging your device on the steer or storing the energy in the detachable battery pack giving you on-demand power whenever and wherever you need it. Last but not least, by buying this product you are also eco-friendly and funding energy that is needed to protecting our world.

Price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. The sales retail costs of a GoCharge is 24,95 Euros per unit. This includes the whole package deal, including the generator, the removable battery with a USB plug, a cord carrying power from the generator to your device, as well as a water-resistant case carrying your phone. The production costs per unit will cost 9 Euros per unit, making a profit of 15.95 Euros per unit.

Place refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. The production of the GoCharge product itself will take place in China, Beijing, however the product will then be transported to the Netherlands, Amsterdam, and will be sold in Holland. The product can be found on the website www.GoCharge.com. In addition, the product can be found in other retail stores such as fitness centers and sport shops. These places will be convenient for our target groups to access due to their interests.

Promotion can be taken through several promotional tools, such as advertising, sales promotion, personal selling, public relations, as well as direct marketing. The idea for the GoCharge product is to firstly start off with a give-away sales promotion with short-term incentives to encourage the purchase or sale of the product. For this promotional event a total of 100 products will be sent to several regional gyms all over the Netherlands. Because of this, people can have their first hands-on experience with the product before purchasing the product itself. We believe that an experience like this will help us build awareness of our product as well as the brand itself. We want to cooperate with fitness centers, and BasicGym will be our main client for this promotional idea. BasicGym is a recent popular and upcoming fitness centre with

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locations throughout the Netherlands. We will be handing out in total of 600 products which would cost us up to 5,400 Euros. On top of this, we have decided to use magazine promotion in a Dutch bicycle magazine known as “Fiets”. This is known to be one of the largest and well known bicycle magazines in the Netherlands, in which they print in total 45,000 magazines per month, which tells us much about the popularity of the magazine (Fiets, 2012). We would like to promote our product on a 1/1 page of the magazine which would cost us 3,445 Euros per month. In total this would cost us up to 41,340 Euros for an entire year. In addition, we would like to promote the product in the “ProCycling” magazine, another famous Dutch magazine, in a 1/1 page of the magazine which would cost us 1,904 per month. For 6 total months this would cost us in total of 11,424 Euros. 15,036 Euros will be spent on brochures and posters for the largest High schools and Universities around the Netherlands. Together our promotion activities will cost us 53,200 Euros for an entire year,

Task 8: The EventTo promote our GoCharge, we want to create an event which fits the target group. The target group of the GoCharge product is ’sport-lovers’ who use bicycling often for transportation from the age of 16 to the age of 60. We want to construct a 30km cycling marathon for active people involved in sports, or motivated people who feel connected to our company. Every racing bike available will have a GoCharge on it, and everyone completing the marathon will receive this GoCharge product for free for attributing to the race.

To do this following event, we will need to spend the following costs:

Costs in €

Event Site/Facility

Rental Fee 400

Permit(s)/License 0

Labor 1500

Subtotal €1900

Rentals

Heat/Air0

Furniture 200

Tables200

Registration Tables 150

Chairs 150

Pipe & Drape 0

Carpeting/Flooring 0

Entertainment

Music 150

Talent 0

Celebrity

Speaker’s Fees 150

Models0

Labor 0

Other0

Subtotal € 300

Utilities/Waste Management 0

Water Hookup 150

Restrooms/Portopotties 200

Trash/Dumpsters/ 150

On-Site Transportation

Truck/Van Rental 250

Carts/Hand Trucks0

Special Vehicles (bicycles, people can bring their

own as well) 2000

Other 0

Labor 0

Subtotal € 2250

Travel/Accommodations

VIP Travel 0

Limousine/Car Rental 0

Hotel 0

Staff Travel 430

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Props0

Tents/Canopies 0

Staging (skirting, stairs) 0

Risers 0

Stanchions/Ropes 0

Labor 0

Subtotal €850

Food Services

Food 0

Beverages 1500

Bartender fees 0

Catering fees 0

Equipment 1500

Tables/Chairs 500

Supplies-Linens, China, 0

Glasses, Utensils 0

Labor/Staff 750

Gratuities 0

Tax 0

Health Permits 0

Personnel/VIP/Guests/ 0

Volunteers 0

Misc. Charges 0

Subtotal € 4050

Audio-Visual

Television Monitors 0

Video Players/Recorders 0

Receptacles 0

Disposal Service 350

Setup Crew 1000

Cleanup Crew 750

Supplies 500

Misc. 0

Subtotal €3100

Promotion/Advertising

Newspapers 3000

Magazines 1500

Radio 0

TV 0

Show Signs 2000

Street Signs 1000

Directional Signs 300

Banners 400

Printed Photos 0

Promotional Items 0

Radio/TV/Video Production

Subtotal € 16200

Security

Facility 1500

Private 0

Subtotal €1500

Insurance

Gen. Liability Insurance 3000

Limousine/Car Rental 0

Hotel 0

Subtotal € 430

Personnel

Event Manager 3000

Show/Event Staff 2500

Additional Staff 1000

Overtime 0

Host/Hostesses1750

Registration 500

Consultants 0

Public Relations 0

Other 0

Subtotal € 1850

Emergency Considerations

Medical 3000

Ambulance 1000

Rain Plan Cost 0

Canopies/Tents/Coverings 1000

Subtotal €3500

Misc. Costs

Accounting 1000

Legal Counsel 0

Office Supplies 0

Office Equipment 0

Phone 1000

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Cameras 2000

Overhead Projectors 0

Projectors/Carts 0

Slide & Film 0

Screens 0

Lecterns/Podiums 0

Microphones 750

Reel-to-reel Tape Recorders 0

Disc Players 0

Sound System 1500

Walkie-Talkies 350

Pointers/Marking Pens 50

Flip Charts 0

Blackboards 0

Computer Interfaces 0

Technical Staff 750

Labor 500

Subtotal €12600

Electrical

General Lighting 500

Special Lighting 0

Generator 2000

Extension Cords 2000

Video Production 0

Other Rentals 0

Labor 0

Subtotal €4500

Rider 2500

Specialized 0

Subtotal €5500

Design & Printing

Designer 2000

Business Cards 0

Brochures 1000

Media Kit 0

Registration Packets 0

Posters 1500

Flyers 1500

Invitations 0

Tickets 5000

Letterhead/Envelopes 0

Specialty Items 0

Duplicating/Photocopies 0

Logo 1500

Program 1500

Subtotal €14000

Misc. Printing/Specialities

Menus 0

Maps 500

Sponsor Signs 0

Special Area 0

VIP Area 0

Name Tags/Holders 500

Place Cards 0

Ticket Sales Fees 0

Warehouse 0

Mileage 0

Parking 0

Extra Supplies 0

Event Photographer 1000

Event Videographer 1000

Coat Check 0

Volunteer 0

(Appreciation Activity/Gifts) 250

Complimentary Tickets 0

Local, state, federal taxes 0

Misc. Gratuities 0

Specialized Labor 500

Other 0

Subtotal €5250

Postage/Shipping/Storage

Postage 0

Bulk Mail/Permits 0

Mail House 0

Freight 0

Delivery Service 0

Drayage 0

Subtotal €0

Total Expenses €85580

Income

Event Income €15000

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Decorations

Event Decor 2500

Stage Decor ________

Stage Backdrop ________

Centerpieces/Table Decor 100

Flowers/Plants 250

Candles 0

Balloons 200

Speciality Linen 0

Chair Covers 0

Signs 1500

Props 0

Paper Supplies _0

Misc. Charges 0

Labor 1000

Subtotal €5550

Awards,Recognitions 250

Engraving 0

Certificates 0

Prizes 250

Frames 0

Thank You Cards 0

Other 0

Subtotal €1250

Transportation/Parking

Limousine/Car Rental 0

Valet Area 0

Shuttle 0

Mileage Reimbursement 0

Labor/Personnel 0

Subtotal €0

Booth Space Sales €2500

Ticket Sales/Admission €0

Sponsors/Underwriters €3000

Donations €25000

Merchandise €500

Raffle €0

Auction €0

Bar €1500

Ad Program €1500

Other €0

Total Income €49500

Event Profit or Loss €36380

Reference List

Fiets (2012) Adverteerders Gids 2012. Retreived June 16, from http://www.fiets.nl/wp-content/uploads/2012/01/FTS111_SALESBROCHUREv2.pdf

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