group assigment entrepreneurship and small business management business plan for ecosaigon company

We are part of the solution: EcoSaigon sells unique, innovative, high-quality merchandise, combining both style andfunction, providing any non-plastic products, from the household to tak

International University-Vietnam National University

GROUP ASSIGMENT Entrepreneurship and Small Business Management

BUSINESS PLAN FOR ECOSAIGON COMPANY

Group member:

I) Executive summary

1 Mission

2 Vision

II) Products and service

III) Target market and customers

1 Market research

2 Target market

3 Customer

a) Customer insights

b) Target customers

IV) Competitors

1 Competitors

2 Competitive advantages

V) Business plan

1 Marketing strategy

2 Future plan

3 Financial projection

VI) Management team

1 Organizational chart

2 Functions

VI) FINANCIAL ANALYSIS

1 Income Statement

2 Balance Sheet

3 Sale Forecast

I) Executive summary:

Did you know?

 Vietnamese people discard 33.6 million tons of plastic a year

 An estimated 28 million tons go into our landfills.

 It takes plastic up to 1000 years to decompose

 One hundred million tons of plastic debris float around in our oceans, kill birds and fish, and make its way into our food stream

We are part of the solution:

EcoSaigon sells unique, innovative, high-quality merchandise, combining both style and function, providing any non-plastic products, from the household to takeaway products Our eco-friendly products will be targeted toward those who are interested in green, sustainable and environmentally friendly way of life

The consumer will gain due to our product’s ability to encourage healthy green lifestyle

by purchasing positive element habit EcoSaigon will initially sell REUSABLE bag, ZEROWASTE ECO Straw, ZEROWASTE Utensil, and several alternative products making by organic elements

1) Our Mission:

EcoSaigon intend to provide the consumer eco-friendly products so that they may benefits from innovative, high-quality product with organic elements In addition, we hope to give the consumer a positive feeling about recycling and Earth’s environment

2) Our Vision:

Green-Lifestyle / Sustainable

We aim for sustainability in our lives, in people and in products Green living is understood as an environmentally friendly way of life, minimizing the amount of personal waste discharged into the environment by the daily routine

5Rs (Reduce, Reuse, Recycle, Repair, Refuse)

The life cycle of each item, long or short, is determined by the owner, the user But most

of all, our supplier look to 5Rs with the following actions:

Reduce the amount of unnecessary supplies and the amount of waste produced

 Reuse what can be in the process of producing and supplying customers.

 Recycle the materials and bring new ideas to reuse, helping customers save

more

 Repair old items to increase life span or renew it

 Refuse what creates waste and or is not needed

Wabi-Sabi

Looking for the inner beauty of imperfections It is something EcoSaigon always care about, because of impermanence in life, which happens in every instance and thing

consumer will happen to catch the old and new images in a space and time

Minimal

EcoSaigon care about the minimalism, because in the minimal there is just enough As our group waste more, we lose more balance from within ourselves But when Ecosaigon begin to live in minimalism and equilibrium state in our daily routine at home,

at work, in society, and in the environment, our group feel happier because our group have more time to enjoy life

Local

Ecosaigon care about quality products and value from local people (Vietnam) to the people currently living in Vietnam In addition, the supply of goods in the country is also

a way to save energy and protect the environment

Objectives:

The concept of non-plastic products become a trend in young generation due to its convenience, unique element, and simple outlook We feel that introducing this product

to the marketplace will be successful because of its innovative factor and the many positive characteristic that non-plastic products can provide to environment The consumer will find this to be a compelling product not only because it is organic, and thus in growing demand, but also due to its marketable benefits

II) Products and service :

EcoSaigon will offer customer the following on-the-go products:

 Bag

 Coffee Cup/ Tumbler

 Lunch Box

 Straw

 Utensil

EcoSaigon was establish as an initiative to reduce the amount of single use plastic packaging or hard to decompose products, which includes common household products, or takeaway Our company also pay attention to components in each product

At EcoSaigon, the consumer will be always provided details product information for

environment EcoSaigon always prioritize the use of natural ingredients in the production process

Reusable Straw as one of our essential category, since many other competitors selling

green products, they provide several kind of straws including silicone However, our company definitely eliminate silicone straw in EcoSaigon’s product list since our in-dept research has shown that silicone still carries health and environment risks due to its characteristic from synthetic polymer and there are concerns over toxicity and chemical leaching, especially when exposed to heat

III) Target market and customers :

1 Market Research

In recent years, an increasing amount of plastic is being used more and more significantly The amount of plastic used is one of the factors contributing to

environmental pollution Therefore, to improve the environment, we must reduce and control the plastic that is being used as an essential part of our life

According to the Paper and Packaging Consumption Trends Report for 2019, the majority of consumers are concerned about sustainability in their spending habits, and willing to pay more for daily products with friendly materials to the environment The investigation results of Nielsen Vietnam Company announced at the seminar "Brand strategy associated with green development" shows that Vietnamese consumers are increasingly concerned about the issue of "green" and "clean", they are willing to pay more for brands with "green" and "clean" commitments Specifically, up to 80% of consumers are concerned about the long-term harm of artificial ingredients and 79% are willing to pay extra for products that do not contain unwanted ingredients Consumers not only express their views through surveys but also express their will to protect the Earth through their actions, concretizing by the growth of the "green" commodity market Last year, Nielsen's Global Corporate Sustainability Report showed that sales of brands committed to prioritizing sustainability quadrupled those of their non-committed competitors

The Sustainable Business Center (CSB) of New York University (USA) has analyzed purchase data on sales of more than 71,000 products in 36 different consumer goods Items are considered to be stable on the market if they are advertised with certain criteria, such as non-GMO, of plant origin, or certified to be environmentally friendly by reputable organizations such as Fair Trade or the Rainforest Alliance - a

non-2013 and 2018, even though they account for less than 17% of the market share The report published in 2019 also shows that after 5 years of follow-up, sales of products labeled "green" increased 5.6 times faster than conventional products

Due to the collected information, we come up with the conclusion that the eco-products will be accepted by Vietnamese consumers since this product segment has been recognized for a long period

2 Target Market

From a supplier perspective, the marketplace model helps them promote their brand, introduce their products to a large number of existing customers, and this can make us attract more suppliers For buyers, a general trading platform with a wide range of products and a commitment to ensure safe payment helps customers feel safer and more convenient in transactions

Starting as a distribution channel on an online platform, we use mostly technologies to run our business and the marketplace is a potential market that we target In the 4.0 era, it will be easier for us to start as an online shop selling all the products that reduce plastic consumption Therefore, we decide to sell our products through our website: EcoSaigon Instead of opening a store which may costly and inefficient since the cost of leased premises is increasing, we aim to focus on the distribution network and delivery network stretching from the North to the South of Vietnam We are also selling on other shopping apps such as Shopee, Lazada, etc We are aiming to have our target customers have the access to EcoSaigon products

3 Customer

a Customer Insight:

Since the environmental issues appear to increase at an alarming level, there is a rising

in environmental protection solution campaigns to raise people's awareness about their plastic consumption and waste behaviors that can cause serious damage to their health and their living environment After acquiring the knowledge and information, the major of generation Z has shown a huge interest in using plastic-replaced products and aim to look forward to a sustainable life In essence, our target customers are not restricted to just a group who are interest in the eco-products but all those who want to join hands with us in minimizing the impact of plastic on the environment As an online platform store, we understand that the marketing strategy is important to gain attention from customers, and customer insight plays an important role in developing a successful marketing campaign

Given that, we have conducted online research about the awareness of eco-products and the intention to choose eco-products over plastic products Surprisingly, the

products, only the general Z showing a high intention in using the eco-products while the Millenials and generation X tend to feel inconvenient to replace the plastic products

in their daily life due to the lack of information about where to buy and what are the choices of eco-products that replace the plastic However, there are still some modern housewives and mothers who care about the eco-products, the rest of them just do not have enough information that leads to the downward in the intention to buy eco-products

Therefore, we will conduct the brand awareness campaign on social media such as Facebook, Zalo, Tiktok to reach both generation Z and Millenials In order to effectively reach the millennials, we will focus on their children which are generation Z as advise them to buy our eco-products as a gift for their parents As a result, it will be a meaningful and convenient present for adults and it can help them to know about our products

b Target customer:

Since our store provides eco-products through an online platform, we decide to focus on the individual customer After we collect and analyze all the data from the research about the intention of choosing eco-products, we can come up with the ideas of what our target customer will be:

 Age: 18 – 35 years olds, generation Z, and millennials This age group has already had a high concern about environmental protection solutions and recognized the importance of environmental preservation

 Income: has a low or average income, lower middle class or middle class

 Occupation:

_ Students and office staff who frequently bring lunch to school or work and require personal eating utensils and cup/tumbler/bottle for water, tea, or coffee

_ Housewifes, mothers who go to the market every day which consume lots of plastic bags to contain foods, looking for the alternative solution which can reuse many time life clothes bags or mesh bag

_ People who concern about environmental issues and trying to change the habit of using too many plastic products by converting them into other alternative material products like bamboo straws, stainless steel straws, wheat composited cups, or tote bags

Customers of EcoSaigon are young people who have a strong sense of protecting the

to pay for products manufactured from ecologically friendly materials In the market survey that we have conducts with the intention of better understanding the customer segment, with the total sample size of 750 people, 94.7% of the respondents indicate that they are concerned about environmental protection, 40% of whom do not know that there are eco-products to replace the daily plastic uses, which are mostly plastic bag, plastic eating utensils like plastic cups, spoons, etc Besides, 70.8% of respondents showed they would be willing to buy our eco-products for everyday use As such, our buyers are interested not only in the eye-catching nature of our products but also through the friendly environmental aspect as well, which contributes to environmental conservation

IV) Competitors

1) Competitors

 "Laiday Refill Station" was set up as an activity to diminish the measure of single utilize plastic bundling or difficult to disintegrate items, which incorporates regular family items, for the two grown-ups and kids, or takeaway They likewise focus on the segments in every item At LaiDay Refill Station, they generally gave subtleties item data to top off and buying Their straightforwardness makes it simple for purchasers

to check the source and nature of our items whenever They generally organize the utilization of characteristic fixings in the creation cycle

 “Ecolife’ was established in October 2010, it is an enterprise specializing in manufacturing and supplying natural beauty products such as fragrant soap, essential oil, scented stone, scented candles, with 100% original ingredients materials from nature that are safe and environmentally friendly Under the direct management of Korean cosmetics specialist people

2) Competitive Advantages:

With the mission to bring products that are good for the mental health and take care of themselves safely for consumers, Ecosaigon specializes in providing products from nature, and environmental friendly With a chain of stores nationwide, and an online website to provide dedicated support to customers In addition, Ecosaigon also has the best incentives and ways to take care of customers For more information, please visit the website www.ecosaigon.com

1) Marketing analysis:

 Target market:

Ecosaigon's goal is to reach most people of unlimited age or gender However, our main

We always provide the best choice for them to help them feel comfortable in choosing products with the protection of nature that we have set out

 SWOT:

 Strength:

- With the combination with many companies supplying raw materials entirely from

nature, our strength is product quality

- Our product line has a variety of models, so customers will feel comfortable to choose the items

- We have special programs on monthly basis

 Opportunities:

-The potential market because their products are relatively new to the market share -With the available strengths, we can target the market to potential customers of middle and high income and those who are concerned about the importance of products to protect environment

 Weakness:

- Our weakness may be the price, with the use of standard raw materials, the price of the product will not be cheap

- The business model that we follow is quite strange to Vietnamese people, therefore,

we can have difficulty in attracting customers at the beginning

 Threats:

-Given the existing weaknesses, we may face some challenges as competitors can sell lower prices to increase competitive advantage

-To meet the high demand for Vietgap standards, it is necessary to find suppliers at reasonable prices

 4 P’s

 Place:

In terms of location, the first phase of our company will approach the South area first because it is a key economic region where have a huge number of labor in the country Specifically, our restaurant will be located in district 3 of Ho Chi Minh city We chose this location since it is the downtown area where there are traffic of customers with average living standards Being located here will make it easier for us to reach a large number of target customers and to promote the restaurant’s image more easily In addition, placing

a restaurant in the city center will help reduce freight costs significantly as many people with medium and high income work here It means more people who order our services gathering in center, therefore, we can save more shipping costs In the future, we plan

to open more branches in the North and go to the international market in 2030



 Product:

be able to feel free to choose their loyal products In addition, we will recommend items that are popular for customers to help customers identify what they need Our products also divide into 5 types These are bags, cups, boxes, straws, and utensil



 Pricing:

Regarding pricing, we will divide the price of the each product We have different prices based on different goods

Resuable Produce 100% Cotton Mesh

Bag

25,000VND Minimalist Eco Insulated Lunch Bag 150,000VND

Minimal Classico with Wooden Lid 350,000VND

Zerowaste On-the-go Utensil 3PCS 200,000VND



 Promotion:

 Target: According to the results of the surveys based on the needs and habits of consumers, we will focus on serving those who have a need for convenience and save time in their life

 We focus primarily on students, office workers and housewives These customers are often busy with work, and what they need is convenience They also require factors

of safety and origin of the product By categorizing these types of customers, we will have the right strategies to reach customers more easily as well as create

promotional campaigns suitable for each customer group

2) Future Plan:

In the developed society context, people are quite busy with work so they hardly have time to be able to take care of themselves as well as their bodies Therefore, Ecosaigon was established with the goal of giving everyone natural products The purpose of our company is to help customers save more time, have various choices

of products that make from all natural Moreover,Ecosaigon want to grow strongly to reach more customer not only in Vietnam but also in other countries In order to be able to perform well the goals that our company set out Firstly, we always research carefully about suppliers and always ensures quality and safety Besides, Ecosigon also regularly comes to survey suppliers to ensure products quality We run the continuous improvement model to measure and upgrade our quality Secondly, after ensuring the good and quality supplier, we can build a strong brand’s reputation and