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Green's - Environmentally Friendly Stationery Business Plan
1. .
There are a growing number of consumers eager for products whose production does less
harm to the environment. Green marketing is the process by which businesses produce, label,
distribute, and/or sell goods and services (many times at a premium price) to consumers who
prefer purchasing products that are generated in a more environmentally-responsible manner.
GREENâS â Environment friendly paper products will offer an integration of services-
designing, printing and publishing it all under one roof. The product range would include
calendars, visiting cards, diaries, invitation cards, stationery articles, greeting cards,
brochures and promotional stationery. These will be totally natural and eco-friendly.
Amongst the strong competitors are Orchidâs and Navneetâs Eco-buddy. However, Orchidâs
is a highly premium product and Navneetâs Eco-buddy lacks mass awareness. I intend to
position my product in the unfilled gap by these major players.
Market research shows a huge demand for such products. It however demands increase in
awareness about place of purchase, credibility and availability. These will be dealt by good
advertising and positioning strategies. Using green seal certification, the credibility of my
claims will also improve. The price premium compared to the regular products would vary in
the range of 10-15% across the product categories.
Greenâs target audience would mainly include teenagers, college students, professionals and
people in the middle, upper middle and the upper class. Beside retail sales, corporate houses
will also be targeted.
Brand building and awareness will be the two main objectives of the communication
strategy. Once a strong market position is gained the brand name can be extended to other
product categories.
Greens - 1 -
Executive SummaryExecutive Summary
2. .
GREENâS â
Environment friendly paper products will offer an integration of services-designing,
printing and publishing it all under one roof.
GREENâS â Environment friendly paper products forte is in conceptualizing and
designing of calendars, visiting cards, diaries, invitation cards, stationery articles,
greeting cards, brochures and promotional stationery.
These are totally natural and eco-friendly; these products can be customized in terms of
color, quality, size and printing.
GREENâS can also supply multipurpose paper, which is made of wood free paper. It has a
prestige range of premium quality office paper designed for most demanding office
printing and copying technologies. This stationery will be suitable for Laser, color,
inkjet, monochrome printers. Also the Fax rolls of such paper shall be made available to
as meet the complete requirement of any corporate or business house. It will be
available in both A4 and A5 sizes in packets of 100,250 and 500 sheets.
WHY THESE PRODUCTS? IS THERE ANY DEMAND??
There are a growing number of consumers eager for products whose production does less
harm to the environment. Green marketing is the process by which businesses produce, label,
distribute, and/or sell goods and services (many times at a premium price) to consumers who
prefer purchasing products that are generated in a more environmentally-responsible manner.
To tap into and expand this market, firms operating in a more "environment friendly" way
work to distinguish them as "green". "Greenâ consumers, in turn, create more demand (and
business opportunities) for goods and services whose production and consumption
incorporate environmental and social costs.
Greens - 2 -
Introduction to the Business
Venture
Introduction to the Business
Venture
3. .
Besides, school children are becoming more and more aware of environmental issues, thanks
to the educational packages provided to schools by various environmental organizations.
Greens - 3 -
4. .
Stationery products (books, diaries, etc)
A positioning map for the category is shown below. A gap is identified wherein my product
will be positioned.
Environmental friendly
* Orchidâs
* Greenâs
* Navneetâs Ecobuddy
Low Price High Price
* Local brands
* Unbranded
Non Environment friendly
Greens - 4 -
Positioning MapPositioning Map
5. .
Availability
* Local brands
* Unbranded
Low Price High Price
* Greenâs
* Navneetâs Ecobuddy
* Orchidâs
Awareness
* Unbranded
* Local brands
* Greenâs
High Price
* Orchidâs
* Navneetâs Ecobuddy
Greens - 5 -
7. .
⢠Wedding cards
⢠Invitation Cards
⢠Stationery Articles
High quality paper is used for manufacturing the
Notebooks and Note pads. Ideal for corporate and
individualâs these are available both as spiral bind and
normal bind. These books can also be printed with
custom design stationery as per clients design
requirements.
Greens - 7 -
10. .
Name Age
Gender â Male / Female Education
Occupation / Profession
Family income per month
< 10,000 between 10,000 and 20,000
Between 20,000 and 40,000 > 40,000
1) Are you aware of eco-friendly (recyclable / reusable / biodegradable) products? Yes /
No
2) Which of these eco-friendly products have you heard of?
o paper o diaries / books o pencils
o match-sticks o bags o khadi / jute products
o cosmetics o liquid cleaners
o others (specify)
3) Have you ever bought any such product? Yes / No
If Yes, please specify,
⢠Which product
⢠Which brand
⢠From where
4) Did you experience any kind of dissatisfaction from such products? Yes / No
If yes, specify
5) Any specific reason as to why have you not tried / purchased other such products?
Greens - 10 -
QuestionnaireQuestionnaire
11. .
⢠price
⢠lack of awareness
⢠unavailability
⢠quality
⢠did not know of any shop selling such products
⢠lack of credibility / lack of belief about claims being true
⢠others (specify)
6) You will definitely believe claims about a product being eco-friendly?
⢠if raw material used is known
⢠if production process of the product is known
⢠if it comes from a reputed company
⢠if it has a certification saying so
⢠others (specify)
7) How much extra are you ready to pay for an eco-friendly product when compared to a
similar other product?
o 2% more o 5% more
o 10% more o 15% more
o 20% more o 30% more
8) Rank in terms of 1 to 5 (1-highest and 5 -lowest) your perception about the features in
each of the product categories
Paper Cosmetics Liquid Cleaners
Khaadi/ Jute
Products
Quality
Price
Credibility of Claims
Awareness Level
Greens - 11 -
Market Research AnalysisMarket Research Analysis
12. .
SAMPLE SIZE â 75
RESPONDENT PROFILE
AGE GROUP
20 â 25 ď 25
25 â 30 ď 25
30 â 35 ď 25
GENDER
M ď 35
F ď 40
EDUCATION
Graduates - 55
Post â graduates â 20
FAMILY INCOME PER MONTH
<10,000 - 3
Between 10,000 and 20,000 - 35
Between 20,000 and 40,000 - 29
> 40,000 - 8
Greens - 12 -
13. .
AWARENESS LEVELS OF PEOPLE FOR DIFFERENT RECYCLED PRODUCTS
Paper
aw are
63%
unaw are
37%
Diaries/books
aw are
47%unaw are
53%
Pencils
aw are
37%
unaw are
63%
Matchsticks
aw are
33%
unaw are
67%
Bags
aw are
47%unaw are
53%
Khadi/jute
aw are
70%
unaw are
30%
cosmetics
aw are
30%
unaw are
70%
Greens - 13 -
Results of the Market SurveyResults of the Market Survey
14. .
REASONS FOR NOT PURCHASING RECYCLED GOODS
Reasons for not purchasing recycled
goods
Price
15%
Lack of
awareness
21%
Quality
11%
No shops
28%
Lack of
credibility
25%
EXTRA PERCENTAGE THAT PEOPLE WERE WILLING TO PAY FOR
RECYCLED/ECO FRIENDLY GOODS
people willing to pay extra money for
recycled goods
5% extra
19%
10% extra
30%
15% extra
29%
20% extra
19%
30% extra
3%
Greens - 14 -
15. .
WILL BELIEVE CLAIMS ABOUT A PRODUCT BEING ECO-FRIENDLY
WILL BELIEVE CLAIMS ABOUT A
PRODUCT BEING ECO-FRIENDLY
raw
material
used
known
23%
production
process
known
13%
reputed
company
name
26%
certification
35%
others
3%
Greens - 15 -
16. .
High percentage of respondents were aware of eco-friendly books, paper and khadi/jute
products available.
However, the two main reasons why people did not purchase these products were
⢠Non-availability
⢠Lack of credibility
Thus, the main objective would be
⢠Making the product available
⢠Credibility
However, when a few neighborhood retailers/stationery shops were interviewed, it was found
that they did stock eco-friendly books. But the consumers didnât know about this. Thus, there
was awareness about the product being available, the products were also available; BUT
THERE WAS LACK OF AWARENESS ABOUT âWHEREâ THE PRODUCTS ARE
AVAILABLE.
Thus, advertisement is the most essential element to make the brand a generic name in this
category.
The other major deterrent to purchase was âlack of credibilityâ. It was also found that
certified products were easily trusted. Thus, greens would overcome this problem by using a
seal of certification on its products.
Demand for eco friendly products in various product categories was seen. However, the
product range would initially be restricted only to the paper products as entry in this category
and getting a good hold in the market would be relatively easier.
Greens - 16 -
Market Research â Findings and
Implications
Market Research â Findings and
Implications
17. .
The brand name would later be stretched across other product
categories.
Our products are placed in the win-win quadrant as
⢠The degree of compromise is low, and
⢠The degree of confidence is high
Thus the switching of consumers in this category will be achieved with comparatively less
efforts than it is in other categories.
Thus once a trusted brand name is created and embedded in the consumers mind, we will
then stretch the brand name to other product categories.
Greens - 17 -
The Green Purchase Perception MatrixThe Green Purchase Perception Matrix
19. .
Conventional marketing wisdom has always stressed âknow your customer.â By
understanding the subtle variables that drive green consumers, clean power providers may be
able to convince more people to buy their product. Green consumers are often motivated by
four needs:
⢠the need for information,
⢠the need for control,
⢠the need to make a difference,
⢠the need to maintain a lifestyle.
All four profoundly affect the way clean power should be marketed and advertised.
Green consumers strongly desire information on green products. Consumers want to know
what the product is, where it came from, and what environmental benefits it offers. As
consumers begin to understand life-cycle impacts, they want to know how and where a
product was manufactured and whether and how it can be recycled.
Because many people believe that both their own health and that of the Earth are threatened,
they are buying green products to prevent environmental damage and to protect their health.
People want to know that products are environmentally safe. The sheer range of green
buzzwords â organic, natural, non-toxic, recyclable, CFC-free, ozone-safe, biodegradable,
pesticide-free â indicates that consumers are giving increasing weight to product attributes,
even those they are unable to see or to feel. People who thirty years ago might have
applauded products that had been chemically enhanced, sanitized, or pasteurized, now prefer
products touted as ânaturalâ or âhealthyâ or âsafe.â
Greens - 19 -
Knowing Greenâs ConsumersKnowing Greenâs Consumers
20. .
Green consumers want to limit their own environmental impacts.
They do not like buying products that will harm the Earth or make
them feel guilty. Since they often have imperfect information, many prefer to buy from
companies they believe are trustworthy. A brand name provides an added layer of assurance
that this product is not harmful. Corporations must reciprocate this trust, acting on their
customersâ concerns.
Most green consumers enjoy their current lifestyle. They want to purchase products and
services that offer environmental benefits, but do not require them to change their habits or
consumption patterns. Ideally, helping the environment should be easy and convenient.
Green consumers want environmental protection built-in, institutionalized. A system where
doing good is like falling off a log, where the natural everyday acts of work and life
accumulate into a better world as a matter of course.
This suggests an opportunity for clean energy because it is an affordable, easy to buy,
environmentally sound alternative to the existing energy mix.
Although green consumers want to have more information, want to have control, want to
make a difference, and want to maintain their current lifestyle â they are not interested in
making tradeoffs. In other words, they also judge green products by price, performance,
convenience, and availability, the conventional buying criteria.
The consumers will pay a significant premium â up to 15% âfor products that offer a
perceived health, environment, or quality of life benefit. Because value resides in a
consumerâs perceptions, the perceived costs of a product or service are not limited to its
dollar price, just as perceived benefits are not limited to its direct, tangible features.
Consumers are now paying significant premiums for organically grown baby food, natural
soft drinks, and unbleached coffee filters. Over time, higher prices should be less of a
problem for some green products because of economies of scale and declining costs. At this
point, however, some green products are at a competitive disadvantage. On the
Greens - 20 -
21. .
other hand, price premiums can tap into the belief that if a product is more expensive it must
be better. However they are priced, green products must perform as well as the alternative.
Only the most committed environmentalist will buy a poorly performing green product twice.
Because the abysmal performance of some early green products discouraged consumers, the
misconception remains that some green products are too expensive and may not work.
Similarly, green products should be as convenient as conventional alternatives.
Greens - 21 -
Classification of ConsumersClassification of Consumers
22. .
⢠Trueblue Greens: Consumers who engage in a number of environmentally motivated
activities, ranging from recycling to various green shopping choices . The Trueblues do not
typically accept high environmental price premiums.
⢠Greenback Greens: Those who claim willingness to pay price premiums for greener
products, but who are generally too busy to pursue other ecological practices.
⢠Sprouts: People who are very concerned about the environment and say they want to do
more to protect it, but who havenât yet adopted many environmental practices.
Note: Consumers almost always overstate their green buying intentions. In order to gauge
production and marketing efforts realistically, we need to be wary of peopleâs tendency to
overstate environmental behavior.
Market research needs to be conducted after the first few months of launch to find out where
the consumers lie amongst the 3 categories. Sales forecasts will have to be revamped
accordingly. Also, the marketing strategies will have to be revamped.
Greens - 22 -
Marketing PlanMarketing Plan
23. .
Any marketing plan necessarily requires answering these few basic
questions:
⢠Who are we?
⢠Who is our target audience?
⢠Who are our competitors?
⢠Where are we right now?
⢠Where do we intend to be?
1) Who are we?
We are manufacturers of environment friendly paper products. Our product range includes
long books, greeting cards, visiting cards, diaries, planners etc. We intend to serve both B2B
as well as B2C markets.
2) Who is our target audience?
This is one question, which needs to be answered very carefully because any mistake in
identifying your target market can lead to failure of all your marketing efforts. For this
reason, I conducted a survey all over Mumbai to find out who is our target market, where are
they located and what should be our communication strategy to reach them.
From the results of the survey, I segmented the population into various categories-
⢠Teenagers
⢠College students
⢠Working individuals
⢠People in the higher income group
Accordingly, I decided that an ideal target market for us would be a combination of these
various segments. So I decided on the following target market-
Greens - 23 -
24. .
1) Youth segment â population in the age group of 15 to 35
years.
2) Higher income group â population with an annual income of 2.25 lakhs and above.
Taking these factors into consideration, I felt that an ideal place to launch our product will be
Mumbai as it fits in all our criteria. Also our product category being fairly new I would like
to start of with Mumbai as a TEST MARKET and then go on for a national launch.
I also intend to target companies with a turnover of 1 crore and above.
3) Who are our competitors?
As already mentioned, this product belongs to a product category, which is a fairly new one
with not many established brands. Environment â friendly products are yet to find acceptance
in Indian markets, although in West they are a huge hit.
The only direct competition this product has is from Navneet, which also manufactures eco-
friendly books under the name ECO-MATES. They are priced higher than the normal long
books and serve a niche market. Apart from navneet, we would be facing a whole lot of
indirect competition from manufacturers of ordinary branded long books like Vimal books,
Crazy world Books by Sundaram paper products ltd. Also our competitors will be various
unbranded local manufacturers as even these books have a huge market.
in the greeting cards category our competition will be with Archies and ITC who
manufacture cards from recycled paper. Also Ngoâs like CRY, Help age India will also pose
indirect competition to our products.
For our other products like diaries, a visting card etc. there is no particular brand that is most
sought after. The purchase decision is influenced mainly by price, design and availability of
the product.
4) Where are we right now?
Greens - 24 -
25. .
Before deciding the future course of action it is very important to
know where this product stands at present in the market place.
In our case the situation right now is quite grim. This product belongs to a product category
of paper products, which is a LOW-INVOLVEMENT product category. To add to our
problem the market for eco-friendly paper products is even smaller than that for normal paper
products. Another major problem with our products is âLack of Awarenessâ. The survey
revealed that a huge segment of the population is unaware of any such products.
But as every dark cloud has a silver lining there is hope for us too. The market for eco-
friendly products though being small has a highly dedicated fan following. Consumers of
these products are ready to go length and breadth till they come across a genuine and reliable
product. Thus although we are targeting a niche market we do realize that once captured
these customers will become our loyal followers for years to come. Also from our survey we
found out that there is a huge potential for these products in the market, which has remained
untapped merely due to lack of any âBrand buildingâ efforts. There are people who use
similar priced products and are not users of eco-friendly products due to lack of awareness
and also due to unavailability of these products in the market.
5) Where do we intend to be?
After going through the various problems as well as opportunities that exist in the market I
have realized that the entire thrust of our marketing efforts should be â
⢠Creating awareness about our product category
⢠Developing a sound âBrand Imageâ
⢠Excellent communication
⢠Easy accessibility of our products
Thus I intend to establish this product as a âBrand par excellenceâ.
Greens - 25 -
Targeting CorporatesTargeting Corporates
26. .
Organizations are responsible to a number of different stakeholder groups, including owners,
customers, suppliers, employees, financial institutions, government regulators, and the public
at large. Any one action that an organization can take might please some of these
stakeholders while, at the same time, alienating others. Under some theories of the firm,
corporations exist to maximize shareholder wealth. That is, the stockholders (as owners) are
the primary stakeholder group; and the preferences of the other stake-holder groups are
somehow subordinate to owner preferences. Even if one accepts this extreme theory of owner
self-interest, there are still a number of circumstances in which green advertising and/or
green marketing would be advisable or profitable (for owners to pursue).
These circumstances include the following three possibilities:
a) the emergence of a green consumer segment;
b) the greening of other stakeholder groups, notably owners; and
c) the increase in responsible business development.
Our main targets would be
⢠Hotel industry
⢠Schools/Institutions
⢠Cosmetics industry
⢠Healthcare industry
⢠Pharmaceutical industry
Greens - 26 -
Communicating StrategiesCommunicating Strategies
27. .
COMMUNICATION STRATEGY
The main aim of our marketing efforts is to build a strong âBrand Imageâ.
For this we need to educate our audience and create awareness about our products. As a
result we intend to spend heavily on communication and sales promotions.
Name of the brand
The first step in our marketing program was to select a suitable name for our brand.
Various options that came in our mind were as under â
⢠Greenâs
⢠Green-addiction
⢠Green-Gen
⢠Eco-friends
⢠Natural
⢠Go-Green
⢠Earth-mates,
⢠Eco-Mates
⢠Green-Mates
⢠Paper-Mates.
After brain storming over all these options the name, which was unanimously selected by our
entire group, was âGreenâsâ. The reason for choosing this name was that it instantly gives the
eco-friendly linkage to our product and is also easy to recollect.
Greens - 27 -
28. .
Communication
⢠Alliances with other companies, environmental groups,
universities, and research organizations.
⢠Combining public relations, imaging, and other marketing/communications efforts
with traditional advertising.
⢠Communicating through sources people trust.
Greens - 28 -
29. .
Objective of advertising - Creating Brand Awareness.
Target Audience
⢠Youth with an annual income of 2.25-lakh p.a and above.
⢠Corporates.
Message strategy
This refers to the content of the advertisement. As we intend to educate our audience about
our products, the main thrust will be to put forth the environmental benefits of making eco â
friendly products.
Underlying advertisement appeal
⢠fear
⢠guilt
⢠You can make a difference
⢠bandwagon
⢠social responsibility
⢠comparision
⢠exempler
⢠celebrity endorsement
Greens - 29 -
Advertising StrategiesAdvertising Strategies
30. .
Message tactics
This refers to the execution of the advertisement. Taking cue from âexperiential marketingâ,
we would be making use of the âthinkâ and âfeelâ appeal to promote our products. Also we
would like to project our products as a part of a personâs identity.
Taglines
⢠Donât let your choices ruin the beauty of nature
⢠Solutions for a greener tomorrow.
⢠The earth is the only home weâve got.
⢠Savour the joy of doing things right.
Greens - 30 -
31. .
PRINT ADVERTISEMENT - 1
SEE THIS PICTUREâŚâŚPRESERVE IT!!!
because⌠A FEW DECADES FROM NOW THIS COULD FETCH YOU
A MILLION DOLLAR BECAUSE THIS IS ALL THAT WILL BE LEFT
TO SHOW TO THE NEXT GENERATION.
DONâT LET YOUR CHOICE RUIN THE BEAUTY OF NATURE
SWITCH TO:
GREENâS
ENVIRONMENT FRIENDLY PAPER PRODUCTS
SOLUTIONS FOR A GREENER TOMMOROW!!!
Greens - 31 -
32. .
PRINT ADVERTISEMENT â 2
You are highly choosy about every thing you use, be it your bag, shoes
clothes, perfumes anything. But when it comes to books you donât even put
a second thought before you buy.
You know fully well THAT YOUR CHOICES TALK ABOUT YOU.
so why project yourself as SELFISH, RUTHLESS AND CRUEL.
The paper you use is made by cutting a beautiful tree that can make this
world a better place to live.
Let us reveal your true self ⌠CONTEMPORARY, STYLISH YET
RESPONSIBLE AND SENSITIVE.
DONâT LET YOUR CHOICES RUIN THE BEAUTY OF NATURE
SWITCH TO:
GREENâS
ENVIRONMENT FRIENDLY PAPER PRODUCTS
SOLUTIONS FOR A GREENER TOMMOROW!!!
Greens - 32 -
33. .
SPECIMEN OF PRINT ADVERTISEMENT TARGETTING CORPORATES
Gifting is an expression of acceptance - acceptance of behaviour,
wavelength, thought and goodwill of people. It turns what's insubstantial
into substantial, what's unsung into an allegro of joy.
We at Greenâs realize the importance of corporate gifting and the joy of
building life long relationships.
This season give a gift that not just touches somebodyâs heart but also his
soul, because our products are completely environment friendly and do not
harm any tree.
Choose from our wide range of our products
⢠Calendars
⢠Corporate diaries
⢠Visiting Cards
⢠Invitation Cards
⢠Stationery Articles
GREENâS - ENVIRONMENT FRIENDLY PAPER PRODUCTS
SOLUTIONS FOR A GREENER TOMMOROW!!!
Greens - 33 -
34. .
The media decisions were made taking into consideration the product category, the target
market and reach of the media. Ours being a low âinvolvement product category and we
intend to give extensive information about our product to the target audience. For the time
being we do not intend to make use of television as a medium to communicate with our
audience.
PRINT
Newspapers
Our target audience mainly being the educated English speaking crowd we would be placing
our ads only in English newspapers. Following are the newspapers we would be using-
⢠Bombay times- as we are test marketing only in Mumbai.
⢠Sunday times- For Corporate advertising
⢠The Indian Express
⢠Midday
Magazines
a) For B2B market
Communication for B2B market will be mainly through magazines and trade journals.
Following magazines will be used-
⢠Business world
⢠Business today
⢠India today
Greens - 34 -
Media MixMedia Mix
35. .
⢠Outlook
b) For B2C market
Following magazines will be used to target this market-
⢠Femina
⢠Savvy
⢠Health
⢠Filmfare
⢠Readerâs digest
Point of sale displays
Point of sale displays and brochures for providing more in-depth information than that can be
offered on labels. These would catch the eye and communicate the uniqueness of the
companyâs green products.
These would also have statistical information and graphs/charts for easy visual understanding
of our products. The catalog would be designed to teach consumers about environmental
issues. The text would highlight on how the companyâs products can yield measurable
environmental benefits.
RADIO
This medium will be used to target the college going audience as well as for people going to
office by their own vehicles who tune into radio.
⢠GO 92.5 FM
⢠CITY 91 FM
⢠MIRCHI 98.3 FM
⢠RED 93.5 FM
Greens - 35 -
36. .
INTERNET
This is another powerful medium, which is being used extensively by many people to make
purchase decision. We intend to have our own website which speaks about our products, the
production process, the various events sponsored, press releases and such other details.
We also intend to place advertisements for our products on the following two sites.
⢠www.rediff.com
⢠www.indiatimes.com
Greens - 36 -
37. .
A sales promotion is an activity intended to stimulate purchases by adding an incentive to the
inherent features of the product or service offered.
We intend to accomplish following marketing objectives from our sales promotions:
⢠Encourage an initial purchase.
⢠Reward repeated purchases and thus encourage even more shopping activity.
For B2C market
⢠On purchase of 10 long books one telephone diary free.
⢠On purchase of 5 greeting cards get one card free.
⢠On purchase of our products worth Rs.300 get 5% cash discount.
For institutional sales
This market will primarily be served by direct selling. We intend to hire smart salesman with
good communication skills to increase our sales potential. For this market there will mainly
be cash discount of 10% on purchase worth Rs.25000-Rs.50000. For purchase above Rs.
50000 the discount will increase upto 25%.
Sponsoring events
⢠On April 22nd
which is celebrated as earth day we would be holding contests like
âearth quizâ to promote the cause of sustainable ecological development.
⢠Similar events will be held on June 5 - World Environment Day.
Greens - 37 -
Sales PromotionSales Promotion
38. .
⢠Also we intend to use âMiss India- Earthâ as a brand
ambassador for our product in future.
Green Club
This would be for our loyal customers. However, this would be implemented only after one
year of operation.
Greens - 38 -
39. .
For our products we need to focus on public relations just as much as we focus on
advertising. We therefore intend to pay special attention towards
⢠Developing community out reach programs involving the company and the areas it
serves.
⢠Working with corporate customers to âpartnerâ environmental programs specific to
their industries.
⢠Educating the public and the media about the environmental issues.
⢠Involving knowledgeable technical people â not just PR professionals to respond to
environmental questions likely to be asked by the Media.
⢠Collecting stories of employees' green initiatives and trying to publicize them, being
concrete and educational in approach.
⢠Anticipating bad press, and preparing information to minimize its impact.
⢠Combine public relations, imaging, and other marketing/communications efforts with
traditional advertising.
⢠Educational pieces written by neutral authorities or company experts, along with
traditional visual and image ads.
⢠Environmental endorsements.
Greens - 39 -
Public RelationsPublic Relations
40. .
Besides, the various events we intend to hold will also help in PR
⢠On April 22nd
which is celebrated as earth day we would be holding contests like
âearth quizâ to promote the cause of sustainable ecological development.
⢠Similar events will be held on June 5 - World Environment Day.
⢠âMiss India- Earthâ as a brand ambassador for our product in future.
Paper production
The paper production will be outsourced to Tamil Nadu Newsprint & Papers Limited
Tamil Nadu Newsprint & Papers Limited
Cane Fields paper is manufactured in India by an International Standards Certified company,
Tamil Nadu Newsprint & Papers Limited - better known as TNPL. TNPL has been
producing paper for more than 22 years. TNPL is a company committed to manufacturing
paper from renewable, non invasive resources, principally bagasse (sugar cane waste). It is
now recognised as the world's largest producer of high quality newsprint from bagasse.
The Hindu Times is printed on TNPL Paper - the only Newsprint in the World produced
wholly from bagasse. The newsprint has high tensile strength and excellent reel conditions
that ensure a trouble free run till the core.
The manufacturing process
The principal raw material used for the production process is bagasse. Bagasse is the solid
fibrous material left after the extraction of juice from the sugar cane. The use of bagasse, a
renewable resource, helps prevent the denudation of 30,000 acres of forest land a year. The
manufacturing process is not only extremely energy efficient but TNPL are also energy self
Greens - 40 -
ProductionProduction
41. .
sufficient from wind and co-generation. This shows the eco-
friendly way to make high quality papers without inflicting
irreversible damage to the environment.
Further processing at the manufacturing unit
The paper obtained from TNPL will be further processed at the companyâs manufacturing
unit. This is where the various products will be made.
The various processes that would happen at the manufacturing unit would be,
⢠Cutting of paper
⢠Printing
o Regular printing for books, diaries, etc
o Customized printing for products like business cards, invitation cards,
brochures, etc as per the orders.
⢠Binding of paper into books
⢠Making of paper bag, gifting boxes, etc
⢠Packaging
These finished goods would then be sent to the warehouses for further distribution across the
city.
Greens - 41 -
42. .
All the products will necessarily display
⢠the company name,
⢠logo, and
⢠the Green seal.
Besides these, wherever feasible, the following info will also be specified
⢠Product details
⢠Contact address
⢠Phone no.
⢠Website address
⢠Specifications about how our product protects the environment
Greens - 42 -
ProductionProduction
43. .
A vital step in green marketing is ensuring consumers that the product was produced in a
manner that was environmentally sound. This is done by "certifying" products - kind of
like a "Good Housekeeping Seal of Approval". The product or input into a product (for
example, timber that has been harvested at sustainable rates using low-impact logging
practices) is then labeled so consumers are provided with the necessary information to
make educated choices.
There are numerous national and international programs for certifying and labeling timber
and agricultural products and consumer goods whose production and use are less
harmful to the environment (i.e. energy efficient lighting, chlorine-free paper, etc.).
For durable consumer goods, the field of green certification and labeling is relatively new
and the two key domestic organizations, Green Seal, a nonprofit organization, and the
for-profit Scientific Certification Systems (SCS -formerly known as Green Cross) have
only been in existence since 1990.
Greens - 43 -
Certification for Green ProductsCertification for Green Products
44. .
Green Seal certifies products that meet their product-by-product environmental standards and
rewards these companies by allowing them to use their emblem - a blue globe with a
green check mark. Green Seal only tests products when the manufacturer pays for the
testing. However, Green Seal helps create demand for the product by identifying buyers
for its Environmental Partners Program.
By using this certification, the credibility of our claims with respect to the production process
of our products will improve.
Greens - 44 -
The Green SealThe Green Seal
45. .
With current level of operations, the hierarchy in the sales force will be :
SALES HEAD
There would be one sales head for the entire city of Mumbai.
AREA SALES EXECUTIVE
There would be 7 area managers across Mumbai. Each area manager would be responsible
for achieving the sales targets of their areas. With 7 distributors across Mumbai, each sales
manager would be responsible for getting sales from one particular assigned distributor.
Greens - 45 -
Sales Head
Area Sales Executive
Sales ForceSales Force
Junior Sales Officers
46. .
JUNIOR SALES OFFICERS
Initially, there would be 2 sales representatives under each area manger. Thus the total
number of sales representatives would be 14. However, the number of sales representatives
recruited would keep increasing steadily with the increase in the acceptance level of the
product in the market.
Greens - 46 -
47. .
Greens - 47 -
Institutions/ Schools/ Corporates
Supplier
Retailers
Distributors
Super Stockist
Depot
Company (Manufacturing unit)
Distribution ChannelDistribution Channel
48. .
Direct channel
This would takes place only in case of:
⢠Large orders
⢠Customization
Channel members
⢠Depots â 1 (Bhiwandi)
⢠Super stocktists â 2
⢠Distributors â 5
Selection of super-stockists
Greens - 48 -
Institutions/ Schools/ Corporates
Company (Manufacturing unit)
49. .
⢠Financially viable
⢠Market image
⢠Good relations
⢠Work force
⢠Infrastructure
Important considerations while selecting distributors:
⢠optimize transportation costs,
⢠ensure no âout of stockâ problems at the retailers
⢠average time for replenishment at the retailers
Retailers
⢠Retailers are identified according
â to the sales generated by them
â Cost to sales ratio in visiting them
⢠classification
â Class A - Are visited once a week
â Class B - Are visited once a fortnight
â Class C - Are visited once a month
Greens - 49 -
51. .
Finance
Paper Sheets
Papers are bought on the basis of GSM i.e. gram per square metre. This is the weight of one
sq. metre of paper. Higher the GSM more is the cost. This basically corresponds to the
thickness of the paper. When bought in lots of 100 boxes (each box containing 5000 sheets of
double papers) this paper is quite cheap as compared to loose or quantity of rim. We being
regular buyers, get a further concession. The paper size being A4 (210 mm. x 297 mm.) On
these terms we get following cost of paper
Cost Per box (5000 sheets)
Simple Paper of 75 GSM = Rs. 1250 /-
Thick Paper of 95 GSM = Rs. 1700 /-
For institutional sales, our target being about 4000 institutions including about 3000
corporates, 100 retail outlets, 400 schools and colleges and 500 other institutions. Expecting
at least about 20% amongst them as positive we assume 500 institutions as prospects.
Average employee strength for these organisations is assumed to be 250 employees.
Similarly as we target the upper middle class and upper class for this niche market, through
out Mumbai we expect a customer base of 1000 for products like greeting cards, long books,
notebooks etc. These being affordable for middle class. So is assumed for the calculation of
Break Even. For other products we assume a customer base of 500 within a year.
Calculating break even, we assume some product sales like envelopes, telephone diaries,
business cards, promotional material etc. to be distributed evenly in 12 months as they are
independent of the period. Whereas some product sales like long books and note books are
expected to take place in June or products like calendars or year planner diaries are expected
to take place in January. The distribution of sales of products hence has been distributed
accordingly.
Greens - 51 -
52. .
The contribution margin of different range of products.
Items Selling Price (in Rs.) Variable
Cost
Contribution
Diaries
Per Unit
Executive Diaries 150 100 50
Telephone Diaries 30 12 18
Year Planner Diaries 120 80 40
Per Unit
Invitation Cards 5 2 3
Wedding Cards 12 6 6
Greeting Cards 10 5 5
Buss -Cards Per Unit
1.5 0.75 0.75
Books
Per Unit
Long Book (100 pgs) 25 14 11
Long Book (200 pgs) 40 28 12
Notebooks (100 pgs) 15 8 7
Notebooks (200 pgs) 25 15 10
Stationary
Per Unit
Covering Material 1.5 0.75 0.75
Envelopes 2 0.75 1.25
Scribble Pads Per Unit
Letter Pads 20 10 10
Note Pads 13 7 6
Calendars Per Unit
Simple 20 12 8
Designer 45 25 20
Others Per Dozen
Paper Carry Bags 36 12 20
Gift Packs 120 60 60
Kid Face masks 36 18 18
Book Marks 18 6 12
Per 100 units
Brochures ( 2pgs) 300 150 150
Leaflets ( 1 pg) 50 35 15
Danglers (1 pg) 70 45 25
Annual Reports (50 pgs) 3500 2000 1500
Greens - 52 -
53. .
The Sales Forecast expected for a period of 1 year.
Items Institutional Sales Retail Sales Total Sales
Diaries
Qty. per year
Average Requirement x Target Customers
Executive Diaries 200 x 500 =100000 500 100500
Greens - 53 -
54. .
Telephone
Diaries
200 x 500 =100000 1000
101000
Year Planner Diaries 200 x 500 =100000 250 100250
Cards
Invitation cards 250 x 500 = 75000 100 x 1000 = 100000 175000
Wedding Cards Nil 1000 x 250 = 250000 250000
Greeting Cards 3 x 250 x 500 =
375000
8 x 5000 = 40000 415000
Buss -Cards 200 x 500 x 500
=50000000
100 x 100 = 10000 50010000
Books
Average Requirement x Target customers
Long Book (100 pgs) Nil 12 x 1000 = 12000 12000
Long Book (200 pgs) 10 x 500 = 5000 12 x 1000 = 12000 17000
Notebooks (100 pgs) Nil 12 x 1000 = 12000 12000
Notebooks (200 pgs) Nil 12 x 1000 = 12000 12000
Stationary
Covering Material Nil 12 x 1000 = 12000 12000
Envelopes 2000 x 500 =
1000000
25 x 1000 = 25000 1025000
Scribble Pads
Letter Pads 40 x 500 = 20000 1 x 500 = 500 20500
Note Pads 10 x 200 x 500 =
20000
1 x 250 = 250 20250
Calendars
Simple 400 x 250 = 100000 2 x 500 = 1000 101000
Designer 400 x 250 = 100000 2 x 500 = 1000 101000
Others
Paper Carry Bags 10000 x 50 = 500000 12 x 1000 = 12000 512000
Gift Packs 50 x 500 = 25000 5 x 1000 = 5000 30000
Kid Face masks 500 x 20 = 10000 25 x 250 = 6250 16250
Book Marks 200 x 500 = 100000 2 x 500 = 1000 101000
Brochures ( 2pgs) 250 x 300 = 75000 Nil 75000
Leaflets ( 1 pg) 1000 x 50 = 50000 100 x 10 = 1000 51000
Danglers (1 pg) 1000 x 50 = 50000 Nil 50000
Annual Reports (50 pgs) 500 x 400 = 200000 Nil 200000
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55. .
Items Selling
Price
Total Sales
value
Dec
Sales
Dec Sales
Value
Jan
Sales
Jan Sales
Value
Diaries Per unit
Executive Diaries 150 15075000 100500 15075000
Telephone Diaries 30 3030000 8410 1261500 8410 1261500
Year Planner Diaries 120 12030000 100250 12030000
Cards Per unit
Invitation cards 5 875000 6250 31250 6250 31250
Wedding Cards 16 4000000 20830 249960 20830 249960
Greeting Cards 10 4150000 34580 345800 34580 345800
Buss -Cards 1.5 75015000 4166660 6249990 4166660 6249990
Books
Long Book (100 pgs) 25 300000
Greens - 55 -
57. .
Items
May
Sales
May
Sales
Value
June
Sales
June
Sales
Value
Diaries
Executive Diaries
Telephone Diaries 8410 1261500 8410 1261500
Year Planner Diaries
Cards
Invitation cards 6250 31250 6250 31250
Wedding Cards 20830 249960 20830 249960
Greeting Cards 34580 345800 34580 345800
Buss -Cards 416666
0
6249990 416666
0
6249990
Books
Long Book (100 pgs) 12000 300000
Long Book (200 pgs) 12000 480000
Notebooks (100 pgs) 12000 180000
Notebooks (200 pgs) 12000 300000
Stationary
Covering Material 1000 1500 1000 1500
Envelopes 85420 170840 85420 170840
Scribble Pads
Letter Pads 1710 34200 1710 34200
Note Pads 1690 21970 1690 21970
Calendars
Simple
Designer
Others
Paper Carry Bags 42660 1535760 42660 1535760
Gift Packs 2500 300000 2500 300000
Kid Face masks 1350 48600 1350 48600
Book Marks 8410 151380 8410 151380
Brochures ( 2pgs) 6250 1875000 6250 1875000
Leaflets ( 1 pg) 4250 212500 4250 212500
Danglers (1 pg) 291200 4160 291200
Annual Reports (50pgs)
Greens - 57 -
Items
Feb Sales
Feb
Sales
Value
Mar Sales
Mar
Sales
Value
April
Sales
April
Sales
Value
Diaries
Executive Diaries
Telephone Diaries 8410 1261500 8410 1261500 8410 1261500
Year Planner Diaries
Cards
Invitation cards 6250 31250 6250 31250 6250 31250
Wedding Cards 20830 249960 20830 249960 20830 249960
Greeting Cards 34580 345800 34580 345800 34580 345800
Buss -Cards 4166660 6249990 4166660 6249990 4166660 6249990
Books
Long Book (100 pgs)
Long Book (200 pgs)
Notebooks (100 pgs)
Notebooks (200 pgs)
Stationary
Covering Material 1000 1500 1000 1500 1000 1500
Envelopes 85420 170840 85420 170840 85420 170840
Scribble Pads
Letter Pads 1710 34200 1710 34200 1710 34200
Note Pads 1690 21970 1690 21970 1690 21970
Calendars
Simple
Designer
Others
Paper Carry Bags 42660 1535760 42660 1535760 42660 1535760
Gift Packs 2500 300000 2500 300000 2500 300000
Kid Face masks 1350 48600 1350 48600 1350 48600
Book Marks 8410 151380 8410 151380 8410 151380
Brochures ( 2pgs) 6250 1875000 6250 1875000 6250 1875000
Leaflets ( 1 pg) 4250 212500 4250 212500 4250 212500
Danglers (1 pg) 4160 291200 4160 291200 4160 291200
Annual Reports (50pgs) 2000 7000000
Total Sales Value
1278145
0
1978145
0
12781450
Cumulative Sales Value
7221435
0
9199580
0
10477250
58. .
Total Sales Value
1278 145
0 14041450
Cumulative Sales Value
11755870
0
13160015
0
Cost Sheet
Particulars Amt. ( In Rs.)
Total Sales Value 134100310
Variable Cost 62206200
Contribution 71894110
Greens - 58 -
59. .
Fixed Cost
Machinery 2500000
Land and Bldg 2500000
Administration Overheads 2000000
Advertising and Promotions 10000000
Sales and Distribution 40230093
57230093
Net Profit 14,664,017
Break Even in Rs. = Fixed Costs / ( P/V Ratio )
= 57230093 / (14664017/134100310)
= 10,67,48,289
Therefore we would reach a break even with Sales value as Rs.106748289.
On seeing the earlier mentioned sales forecast, we see that this amount of sales is achieved in
the sixth month. The cumulative sales figure of fifth month being very near to the break even
point. So break even period for Green Eco Friendly Paper Products being approximately less
than 6 months.
Therefore, Break Even Period ~ 6 months.
By the end of first year, profits being Rs.1,46,64,017/-
Greens - 59 -