Team 3: InnovatorsBio Store: Save money, save the world!

ABSTRACTPackaging waste is a global problem. In certain countries, they make up quarters of landfill waste. We are aware that this waste does eventually lead to the ocean and hold sea life ransom. We have seen innovative companies creating means to reduce and possibly eradicate this problem by selling food without packaging, hence giving rise to our innovation. An application that brings these stores closer to the people.

Ivan LyubeyZethu MabuzeInts MancassRobins ReinsSamet HaliliChwayita Baca

Hack The Waste

ContentsProject Scope.........................................................................................................................................2

Business Model......................................................................................................................................3

Marketing Plan......................................................................................................................................3

Market Plan Implementation.............................................................................................................4

Budget...................................................................................................................................................6

SWOT analysis.......................................................................................................................................8

Risk Analysis/Assessment......................................................................................................................9

Project ScopeOur business proposal is to create an application that the end users can use to search for stores that sell food without packaging near them. This application will make use of an API that will track their location and give pop up suggestions of the nearest stores. This API will be integrated to our main application interface that will be downloaded and used by the user. The API is a tool that will allow the user to plan routes amongst many other things. Our application will make use of a simplistic and easy to understand interface so that people from different backgrounds, are able to use it seamlessly.

Business needs we satisfy:

● A new source of customers getting knowledge about these stores.

● Customer needs we satisfy:

● Feeling of social responsibility - saving animals

● Feeling of social responsibility - helping the little guy

● Saving money

● Easy access to information

● Increasing understating of the impacts of plastic waste

We Promote:

Different marketing campaigns Loyalty system promotion Process: after a while show how many animals you’ve saved not buying

plastic packaging People: representing zero waste and socially responsible communities Product: Simple app which helps locate zero waste stores and save

money in them

Business Model

Our pricing model will work as follows:

Free for consumer Monthly fee for businesses

Marketing PlanOur objective is to satisfy our customer with an application. The demographic we wish to reach varies. From people of different tastes, preference, lifestyle choices and habits but similarly, all with one main objective, cutting the usage plastic. Our target audience will be 13 - 45 year old people of any gender which are already slightly interested in the eco-friendly lifestyle, or would like to adapt and learn more about it. Despite our “seemingly” filtered audience, we do not wish to exclude people outside this range.

Research says that 26% of all plastic waste is caused by packaging alone. Despite the fact that some foods require packaging, there is a number of those packaged in plastic that could do without the plastic packaging. We want to decrease the number of plastic packaging used in the world and introduce society to packageless stores. This implementation does not only benefit the consumer but the World on a greater scale. The reduction of industrial use of this toxic packaging could reduce the carbon footprint. Inversely saving humanity-the consumer.

This application is creating value for companies that offer locally sourced or packageless products and consumers who are socially responsible and want to save both the earth and money.

According to our market research, we found that amongst our application is most likely to succeed owing to two main types of people:

Psychographic: people interested in zero waste and who are willing to sacrifice the comfort of store made packaging to save some money, save the environment, and order the exact amount of food necessary which. In a few words – Socially responsible people.

Behavioural: People who are interested in loyalty programs, who want to save some money and buy the exact amounts they need not the amounts given in packages.

With this in mind, we have a broad idea on which concepts to make use of for a greater consumer force.

The market potential is exponential. The trend for eco-friendly products is ever-growing and the retail food and market industries turnover in 2016 was 1192 billion euro in Europe.

This product is in growth stage of product life cycle because the zero waste movement and community is growing and people are becoming more socially responsible.

Market Plan ImplementationMake a motto which will stay in our target audiences mind. “Don’t waste money on packaging and save the world!”. With this motto we will advertisements on social media platforms (Instagram, Facebook, Twitter and

tiktok), where popular people and influencers will generate traction around it, with an emphasis on saving money and animals. We expect that with these advertisements people will understand that breaking this habit will not only save their money, but the environment too!

Educate people about plastic pollution. Make seminars, workshops and physical activities. Make sure that everybody understands what is happening in the world and what they can do to change their future. Show them how they can impact plastic pollution. We have to make materials which show the difference between world without plastic pollution and with it.

Make a loyalty system in our app. When somebody signs up in our app, they get 10 loyalty points for an opportunity to change the world - try to make world without unnecessary waste from packaging. Users of the application can invite friends or shop at packageless stores to get more loyalty points and exchange them with products or vouchers form packageless shops.

BudgetFUNDING Estimated Actual Over/(Under)Investor Funding {42}

Owner 1 100 000  

Owner 2 100 000  

Crowdfunding 300 000  

Total Investment 500 000 - -

Loans

Bank Loan 1 150 000  

Non Bank Loan 1 ALTUM 100 000  

Non Bank Loan 2 LIFE 1 000 000  

Total Loans 1 250 000 - -

Other FundingGrant 1 50

000  

Other    

Total Other Funding 50 000 - -

     

Total FUNDING 1 800 000

-

-

COSTS Estimated Actual Under/(Over)Fixed Costs

Advertising for Opening 150 000  

Basic Website 20 000  

Brand Development 10 000  

Building Down Payment 5 000  

Building Improvements/ Remodelling 15 000  

Business Cards/Stationery 1 000  

Business Entity 500

 

Business Licenses/Permits 150 000  

Computer Hardware/Software 150 000  

Decorating 5  

000 Franchise Start Up Fees -  

Internet Setup Deposit 5 000  

Lease Security Deposit 5 000  

Legal/Professional Fees 5 000  

Machines & Equipment 500 000  

Office Furniture/Fixtures 50 000  

Operating Cash (Working Capital) 100 000  

Point of Sale Hardware/Software 50 000  

Prepaid Insurance 15 000  

Public Utilities Deposits 15 000  

Reserve for Contingencies 15 000  

Security System Installation 15 000  

Setup, installation and consulting fees 50 000  

Signage 100 000  

Starting Inventory 30 000  

Telephone 10 000  

Tools & Supplies 50 000  

Travel 50 000  

Truck & Vehicle 100 000  

Other 1 (specify)    Other 2 (specify)    

Total Fixed Costs 1 671 500 - -

Average Monthly CostsAdvertising (print, broadcast and Internet) 75

000  

Business Insurance 20 000  

Business Vehicle Insurance 10 000  

Employee Salaries and Commissions 50 000  

Equipment Lease Payments 10 000  

Inventory, raw materials, parts 1 000  

Franchise Fee -  Health Insurance 1  

000

Internet Connection 100

 

Loan and Credit Card Interest & Principal ???  

Legal/Accounting Fees 200

 

Merchant Account Fees 150

 

Miscellaneous Expenses 1 000  

Mortgage Payments 500

 

Lease Payment 10 000  

Owner Salary -  Payroll taxes or Self-employment tax    Postage/Shipping Costs    

Security System Monthly Payment 20 000  

Supplies    

Telephone 1 000  

Travel    Public Utilities    Website Hosting/Maintenance    Other 1 (specify)    Other 2 (specify)    

Total Average Monthly Costs 199 950 - -

x Number of Months 7

Total Monthly Costs 1 399 650 - -

Total COSTS 3 071 150

-

-

         

SURPLUS/(DEFICIT) (1 271 150)

-

1 271 150

SWOT analysis

Strengths Weaknesses

● Easy to use

● No cost for consumers

● Saves money for consumers with

loyalty program

● Helps reach target audience for

stores

● Helps people be more socially responsible

● Consumers have to download

another app

● Small local businesses and stores

might not want to pay a monthly fee

● People who are passionate about this

might already know where to buy

packageless items

Opportunities Threats

● Create webapp in future

● Include recycling points, so a wider

audience of the zero-waste and

eco-friendly download the app

● Include bottle recycling stations for

countries where they are accessible

(Denmark, Sweden, Etc)

● Geographically easily scalable. The

limit is the entire earth.

● People in current situation care more

about getting their food from the most

nearby store, so they spend less time in

public.

● Huge companies like Google can

quite easily adapt their existing maps

to include eco-friendly stores

● Companies like Cashback add these

eco-friendly stores to their loyalty

program

Risk Analysis/Assessment