eco project creating a business

Sun protection shirts are specially designed clothing items that are designed to protect the wearer from the harmful effects of the sun''''s UV rays.. One of the biggest benefits of wearing

VAN LANG UNIVERSITY

-o0o -ECONOMICS

Lecturer: Nguyễn Hồng Mai

Submission date: 11/05/2023

Semester: II

ECO Project: Creating a business

Purpose/ Instructions:

For this project, you will create your own business This business will produce a particular good or service in order to get a glimpse of what it means to start a business You will hopefully see what we talked about in Chapter 1and other chapters in action

You will use this plan later in the year as we continue or study or economics

Business plan:

What kind of business are you creating? (Circle one or write in other)

Restaurant Non-Profit Clothing Shoes Other: _Clothing

OR what kind of service will you provide (Circle one or write in other)

Doctor Lawyer Teacher Barber Other: _The name of your business: _Mia sun jacket _

*IN COMPLETE SENTENCES, answer the following questions.

Describe what your business is trying to produce?

Sun protection shirts are specially designed clothing items that are designed to protect the wearer from the harmful effects of the sun's UV rays Sun protection shirts can be worn for a variety of outdoor activities, including sports, camping and working outdoors.

What capital goods are you going to need for your business? What are they for?

These shirts are made from special fabrics that have a high UPF (Ultraviolet Protection Factor) rating One of the biggest benefits of wearing sun protection shirts is that they provide excellent protection against the sun's harmful rays Sun protection shirts can help prevent sunburn, skin cancer, premature aging, and eye damage Additionally, sun protection shirts are designed to wick sweat away from the body, which can help keep you cool and comfortable in hot weather

Where do you want your business to be (location)? How are you going to acquire the land? Areyou going to rent or are you going to buy the land out right? Why did you decide this?

Our company will be based at our home Because today's e-commerce business is so very developed, we take advantage of it by investing more in product quality to provide customers with the greatest possible experience

Describe the type of people you want for labor Are there specific requirements for your prospective employees (education, experience, expertise, etc.)

Labor: over 22 years old Requirements: Having at least 2 years of experience in design, marketing and sales consulting, creativity, honesty, hard work and always keeping up with trends

How are you going to divide the labor? Are your employees going to specialize in a certain job or are they going to do everything? Why?

Our business will have 1 manager, 1 designer, 1 marketer, 2 sales consultants, and 2 packing staff Our employees specialize in a certain job because each employee has their own skills and experience in a certain field

Who is your business for: boys, girls, families, animals, etc.? Why are you targeting those types of people?

Our products focus on adults aged 18-30 who care about their skin and work outdoors Because people of this age will often go to school and work by motorbike a lot

Describe a particular product or expertise you are going to sell Why are you producing that product or supplying that expertise? Why would people want to buy it? What makes it stand out from your competition? What makes it special?

Our sun protection shirt is made of high-quality, lightweight, and breathable fabric that is specially designed to protect the wearer from harmful UV rays The shirt has a UPF (Ultraviolet Protection Factor) of 50+, which means that it blocks 98% of the sun's rays, helping to prevent sunburn and reduce the risk of skin cancer We use high-quality, lightweight, and breathable fabric that is specifically designed for sun protection We realize the need of protecting skin from sun damage, but more importantly, we want people to understand how harmful sun damage can be

Our emphasis on quality, comfort, and unique style distinguishes our sun protection shirt from the competitors We also take care to ensure that the shirt fits well and is comfortable to wear for extended periods of time Our design is very beautiful, youthful and suitable for the age of the customers that we target It's a product that we're proud to offer and believe will be highly valued by anyone who spends time outdoors

Using the box provided below, draw the product your business is going to sell Make sure your product is creative and reflects your groups business plan! Your product is to be as big as the box is! You will take this product and try to sell it later in the year

Part 1- Market ResearchResearching Demand for Your Product

PriceQuantity Demanded200.000VN

D

20

250.000VND

17

300.000VND

15

350.000VND

12

400.000VND

9

450.000VND

4

1 Name of Product: Mia sun jacket2 Utility (What is it for?): Prevents skin darkening and UV rays that cause skin cancer3 Describe the market for your product:

Market segment: young people from 18-30 years old ( boy and girl) -In recent days, the temperature has increased sharply In addition, the sun also has harmful rays that cause skin cancer

-Sun protection jackets become a trend that is sold a lot on the street and in famous clothing brands such as Uniqlo, Laroma and Canifa

-The different types of products also depend on the price they spend to get quality samples The type of sunscreen that can protect against UV almost completely, the price is very high There are also a number of other popular types that are suitable for everyone in the country with low prices and quality

4 Who are your competitors?

Uniqlo, Suntop, OhSunny,…

5 What makes your product different or better?

Our products are cheap and suitable for workers Especially, we guarantee product quality and have a good warranty and return policy

6 What is the sale price of your product?

250.000vnd-350.000vnd

7 What is the sale price of your competitor’s product?

500.000vnd- 800.000vnd

8 How much money can be made in this market?

The profit of sun protection jackets falls in the range of 100000-150000vnd

9 Is your product trending right now? Do you think it will fly off the shelves or are there just aselect few who might buy it? Explain:

Our products are trendy at the moment Because the current weather in Viet Nam is very hot, there are also harmful rays that cause skin cancer In addition, young people now like to protect their beauty, so choosing our products is absolutely a good decision Our products will fly off the shelf

10 Part of generating a demand for your product is advertising Think of 3 ways to get your product’s name out there.

-We will run promote on TikTok and Facebook by live stream.-Post on groups buy and sold sun protection jacket

-Open a product testing booth in the mall and market

11 Focus Group:

Select 6 possible price points at which you are willing and able to sell your product and record them in the “Price” column of the demand schedule at the top of this page In one minute or less, advertise your product to your classmates At the end of your pitch ask your classmates, by a show of hands, how many of them are willing to purchase your product at each price point Start at the lowest price and move up Record the data in the “Quantity Demanded” column at the top of this page Once you’ve recorded your data, you are allowed to ask your classmates 3 questions about their connectionto your product Use this data to inform your next moves.

Examples: “Jenny, I noticed you lowered your hand when the price increased to $8/unit Why were you willing to pay $6.50 but not $8?”

“What would you change about this product to make it work better for you?”

Part 2: Factors of Demand

Part 3: Factors of Production

1 Product quality

2 Number of trusted customers

3 Products with good prices for consumers

4 Alternative product

5 Marketing to more people

6 Many different segmentsGood for Business

The supply of raw materials is not stable in terms of price

2 Many competitors in the same field

3 Inflationary economic situation makes the market complicated

4 Inventory makes it difficult for businesses to turn cash flow

5 Rapid and continuous changing trends make it difficult for businesses to keep up

6 Comparison of products between competing firms in the field

Bad for Business

Capital (machines, office, factory,

Storehouse

8 millionVND/ 1 month

Variable1

Designer and 1 Marketer

7 millionVND/ each person

VariableFabric

70000-900000VND/1 jacket

Variable1 Manager

15 million VND/ 1month

Variable

E-commercewebsite

2,5%/1 order

Fixed2 Sales

Consulting

4 millionVND/ each person

FixedElectricity& Internet

3 million

Variable

Ads

10 millionVND/ 1 month

Fixed2

Packing Staff

3 millionVND/ each person

Fixed

2 Create a marginal product schedule (you can make up the data but keep it realistic)

# of WorkersTotal ProductMarginal Product

3 Create a supply schedule and curve below that reflects how much you are able and willing to produce at each price:

Sale Price $Quantity SuppliedTotal RevenueCost of ProductionProfit200.000 VND1000200.000.000 VND110.000 VND/1 jacket90.000.000 VND250.000 VND1500375.000.000 VND120.000 VND/1 jacket195.000.000

VND300.000 VND2000600.000.000 VND150.000 VND/1 jacket300.000.000

VND

According to your marginal product schedule, how many workers are you going to hire? _

400.000 VND30001.200.000.000 VND280.000 VND/1 jacket360.000.000

VND

Part 4: What are some things that can affect your ability and willingness to supply the

product or service?

Input Costs Increase fabric costs lead to an increase in input costs.

Increasing garment factory costs leads to higher input costs.

Labor ProductivityEmployees do not work on time.

Employees lost or damaged goods.

The rapidly changing trends

Difficult to reach users.The fashion industry, including sun-protective clothing, undergoes frequent and rapid changes in design and color trends As a result, it is crucial for businesses to stay updated on these trends and be able to respond quickly to meet the evolving demands of customers.

Government ActionThe government raised taxes on the fashion market.

Producer ExpectationsEveryone will take advantage of buying cloth to reserve

Number of ProducersPrice break

Stolen ideas

· Setting perpetual inventory so customers know when stocks running low.· If a customer is interested in a product that is not currently in stock, encourage them to participate in receiving notifications when it is available.

Surplus:

Sale offMarketing ( this reason make me cost more money, but if you do it well, you can completely solve your existential problem quickly )

Use any form of promotionOrganize special events ( However, the product sold at this time will not bring the desired revenue as initially But it prevents you from losing even more when you leave itin storage for too long)

· Build into combined products (you can sell a combo with the quantity of 2, 3 or more but still the same product but the price is cheaper than the retail price)

3 Are there price controls on your goods and services? Explain

Yes The store will have an advantage and can determine the price when demand is high (and supply is short) Therefore, they can raise prices to increase profits

4 How much are your competitors selling similar products for? How will youcompete?

Competitor: -Uniqlo : -Dry – Ex Jacket: 699000vnd -Pocket UV Protective Parka ( 3D cut) : 999000vnd -Suntop : -Suntop master : 850000vnd

- Suntop X : 750000vnd -OhSunny:- OhSunny unisex UV Sun Protection Jacket Sports Casual Baseball : 999999vnd

How will: -Free clothing modification support and lifetime product/service warranty.-Refund policy (when the product is faulty, it will be exchanged 1 to 1, if the customer is not satisfied when buying the product can 100% refund)

5.5.1 What are your plans for lowering costs?

Decrease cost production ( material, labor, update machine and equipment, )Find the best supplier

Discard the products that are unmarketable

5.2 Will you outsource labor?

Outsource with the low price

5.3 Move to a more strategic location?

When you open your store where there is a need, the number of products sold will be more, which specific business location can help you avoid risks such as natural disasters, security and threats.if your brand presence is not too close but within your competitor's store radius, that will improve your marketing strategy, product needs and customer flow

6- Group Essay

Nowadays, human priorities such as appearance and physical, mental health are putting on top of the list which explained why many fashion products have been created, selled and tones of clothing businesses appear, earning huge profits every year The fashion industry has been dramatically grown from a long time ago whereas this is one ofthe most basic human needs, so the opportunity to enter in this category is really promising Therefore, we started an idea about creating a sun protection shirt that can be adapted to three main goals: affordable, fashionable and have the ability to protect health This product is specially designed clothing item that is designed to protect the wearer from the harmful effects of the sun's UV rays Sun protection shirts can be worn for a variety of outdoor activities, including sports, camping and working outdoors Our creation focuses on everyone from every age following the needs of people who has to work, study or entertain with outdoor activities, so sun protection shirt is an indispensable item After making some surveys and research on 77 people, we came to the conclusion that humans are willing to buy our shirts at 250 000 to 350 000 VND

We are not perfect, there are still some tough problems facing us On one hand, this is a seasonal product which means our sales will decrease in cold weather and also we cannot reach the low UV index markets Following that, as we said before, this market is really competitive, therefore, we have to try to be different from the others, especially some huge brands like Uniqlo, Laroma and Cafina The next reason is that as a start-up business, we need economy tomaintain our inventory full of production On the other hand, we had many positive and effective ways to improve our sun protection shirt, first of all is top-tier quality in price, Our production is made of high-quality, lightweight, andbreathable fabric that is specially designed to protect the wearer from harmful UV rays The shirt has a UPF (Ultraviolet Protection Factor) of 50+, which means that it blocks 98% of the sun's rays, helping to prevent sunburn

to understand how harmful sun damage can be Secondly, the number of consumers that have a demand on our creation is really stable, because this is essential stuff and we are confident about our marketing plan which tells people how harmful UV rays would affect on their skin if they do not protect it Speaking about how would we advertise our product, e-commerce is hardly developed nowadays so this is a huge advantage for us to reach out to many different people, we will run promotions on TikTok and Facebook by live stream, open a product testing booth in the mall and market, post it on e-commerce platform such as Shopee, Lazada, Amazon,… and some Facebook groups about selling clothes

Our product costs about 200 000 to 400 000 VND with different quality, the revenue would change base on the price we announced, the profit falls in the range of 90 000 – 120 000 VND per shirt – jacket Here is the a supply schedule and curve that reflects how much we are able and willing to produce at each price:

Sale Price $Quantity SuppliedTotal RevenueCost of ProductionProfit200.000 VND1000200.000.000 VND110.000 VND/1 jacket90.000.000 VND250.000 VND1500375.000.000 VND120.000 VND/1 jacket195.000.000 VND300.000 VND2000600.000.000 VND150.000 VND/1 jacket300.000.000 VND350.000 VND2500875.000.000 VND220.000 VND/1 jacket325.000.000 VND400.000 VND30001.200.000.000 VND280.000 VND/1 jacket360.000.000 VND

After making this board, at our best we could able to produce 3 250 000 000 VND in total revenue and 1 270 000 000 VND on profit This is the ideal scenario for us but the real number could change.

The table below would answer these following questions: What are the total costs of production? What are you fixedcosts? What are your variable costs? What kind of capital and how much of it do plan to have?

Capital (machines, office,factory, etc.)

Labor (how many workers,what will they do?)

Land (raw materials like steel,iron, crops, etc)

Entrepreneurship- brains,management

Fixed orvariabl

e

Fixed orvariabl

e

Fixed orvariabl

eItemCostFixed or

variable

Materials

15 millionVND

Variable1 Marketer

7 million VND

VariableFabric

70000-900000VND/1 jacket

Variable1 Manager

10 million VND

Variable

commercewebsite

E-2,5%/1 order

Fixed2 Sales consulting

7 million VND

FixedElectricity & Internet

2million

Variable