assignment-4

Table of Contents Lean Canvas 3 Business Concept Statement 5 Market Assessment 5 Marketing Strategy 7 COMPETITIVE DESCRIPTION & ANALYSIS 9 Financial Strategy 12 References: 13

People now-a-days just recycle plastic containers, but that does not really solve the problem because some people still throw their garbage anywhere without even segregating it properly. Even how hard a person tries to recycle segregate trash properly, there will still be other individuals who just doesn’t know how to or just simply don’t want to help conserve the environment . Due to the massive use of plastic containers we suffer from water pollution that kills our marine life . Thus , will greatly affects the future generation .With this, the team manage to sit down and think of a way to lessen the use of plastic by turning liquid shampoo to solid shampoo.

Shampoo Company is a zero-waste single use organic shampoo which is packed in a composable wrappers made of cornstarch that can dissolve in water. In addition to that this product does not consist of harmful chemicals which is why it’s also safe even for the youngest member of the family. Furthermore, this product is also perfect for traveling and outdoor activities such as camping and hiking since its very handy and convenient. With this product the family do not need to worry about that messy leaks of their usual plastic containers. Shampoo Company’s unique value proposition is the zero-waste technology by using compostable material made out of cornstarch which dissolves in water if soaked. By having this kind of shampoo bar, environmental friendly customers will have more reason to purchase this product .

However, since we cannot force everybody to be sustainable as much as we want them to be . The team decided to focus only to the people who are willing to do something for the environment. Hence, this product targets the head of the household who enjoys sustainable living and hassle-free travels together with his/her family members. Since this is also perfect for travel and outdoor activities such as camping and hiking since its convenient to use and leaked free compare to your normal liquid shampoo bottle.

The group identified the different channels that the Shampoo Company will penetrate. Firstly, we will go to retail stores such as Walmart and Shoppers Drug Mart. Not only that, we will also go for the online retailers like Amazon. In addition, the group will also set up a website wherein customers can directly order the Shampoo Company. And most importantly, Shampoo Company is planning to partner up with known hotel chains such as Marriott, Sheraton, and Hilton. Since these hotels are also promoting sustainability in their operation. This is the perfect opportunity for the group to introduce the product that will also eliminate the use of small plastic bottles in every hotel room which will significantly contribute to the main goal of the team which is to make a movement I making the planet plastic free .

Shampoo Company is a zero-waste single use organic shampoo bar which is packed in a composable wrappers made of cornstarch that can dissolve in water. This Product targets the head of the household who enjoys sustainable living and hassle-free travels together with his/her family members. This product do not contain any harmful chemical which is why it is safe even for the youngest member of the family. The goal of this product is to help conserve the environment by making a move to reduce plastic container waste at a very affordable cost compare to other sustainable bar available in the market .

Industry Description & Analysis

The main goal of shampoos is to reduce dirt and oil without making the hair damaged or frizzy (Zion Market Research, 2019). According to the Zion Market Research, “the market is categorized by anti-bacterial shampoo, anti-dandruff shampoo, herbal shampoo, and care shampoos (Zion Market Research, 2019). Asia is the leading user of shampoo and this development is predicted to be consistent in the incoming years (Zion Market Research, 2019). On the other hand, North America and Europe is also considered the largest purchasers in the market due to the increase in purchasing power and the development in products (Zion Market Research, 2019).

The green industry bases its financial gain with accordance and concern in the environment (FranchiseHelp.com, 2018). In order to reduce waste and use of chemicals in the supply chain, as this industry acknowledges the significance of the natural capital (FranchiseHelp.com, 2018). A report from the year 2014 states that, 55% of customers agrees to pay more for products that are sustainably approved, and a research in 2013 says that 71% of consumers recognizes green products (FranchiseHelp.com, 2018).

Industry Size

The industry size of the shampoo market is growing, as it is concluded that the trends through product improvisation and problems regarding hair is predicted to support in this term as the Compound Annual Growth Rate (CAGR) is expanding at an average degree (PersistenceMarketResearch.com, 2017). A forecast formulated by the Persistence Market Research reports that, the shampoo market is estimated to be USD $13 Million in 2022 – this shows that fifty percent of the profit share of the sector is lost in 2017 (PersistenceMarketResearch.com, 2017).

Asia-Pacific has the largest share of consumers in the international shampoo segment – with 2,194 units of the products was consumed in 2017, with the CAGR amounting to 6.2% while South America accelerates quickly with its CAGR of 9.2% (MordorIntelligence.com, 2018). The global market is rising as the problems regarding hair like dandruff, irritation, falling hair, etc., and as the raise in the income per household, improved lifestyles, and the harmful environment are the common reasons for the boost in the market (Zion Market Research, 2019). Additionally, the growth rate is explained due to the currency rate during a 3.8% increase in the unit sales (MordorIntelligence.com, 2018).

Market Description & Analysis

According to the travel U.S Vacation survey 2018 , 56 percent of millennials likely to take vacations on the other hand only 22 percent baby boomers are interested(Biesiada,J. , 2018). This only shows that millennials nowadays loves to go to other places and explore the world . Furthermore, based on research millennials are also willing to spend for vacations (Biesiada,J. , 2018).Thus, one in three millennials are even willing to spend 5 k or more for vacation (Newsdesk, 2018).

Aside from travelling, millennials also enjoys outdoor activities such as camping . According to the 2018 north America camping report sponsored by the Kampgrounds of America (KAO), the number of millennial campers has risen in Canada and United States (Houghton, M., 2018 ). Mainly because it has been proven that Camping help reduce stress and helps overcome physical and emotional health (Houghton, M., 2018).Which is very common these days.

Furthermore, the millennials are also said to be the most sustainable among all generations (Saussier, 2017). According to the survey conducted by Nelsen and Deloitte, millennials are willing to spend more for services or products that are eco-friendly (Saussier, 2017).

The table below shows that consumers are willing to pay more for sustainable products, 51 percent of the participants of this survey are millennials (Saussier, 2017).

According to the 2018 report of 10,455 millennials across 36 countries, 33 percent millennials believe that businesses should improve and protect the environment (Deloitte, 2018). Which is why millennials today, are very picky when it comes to choosing the product that they purchase.

Shampoo Company will target green consumer millennials since according to research, 66 percent of the global buyers are willing to pay more for sustainable products and with that 66 percent, 73 percent are the millennials (Curtin,n.d). In addition to that, about 84 percent of Green Consumers think that the products that they purchase should have a recyclable packaging (Hitwise, 2017). This benefits Shampoo Company since it offers a zero-waste product.

In addition to that Forbes also concluded that 73 percent of millennials are willing spend for eco-friendly products (Forbes, 2018). Also, the survey conducted by Nielsen below also shows how Millennials sustainability level is greater than the Gen x and Baby Boomers (insight, 2018).

Source: The Conference Board® Global Consumer Confidence Survey conducted in collaboration with Nielsen Q2 2017

With the aforementioned statics above and researches the team strongly believes that Shampoo Company has the potential market among sustainable millennials , who travel and enjoy outdoor activity such as camping .

Target Audience

The target market will be the millennials in the ages 23-28 years old. This individuals are the head of the household who enjoy sustainable living and hassle free travels with his or her family members .

Description of product

Shampoo Company mini bar is your zero waste single use mini bar shampoo which is individually packed in a composable wrappers made of cornstarch which can dissolve in water . The main packaging would be just a large bag made of cornstarch as well. Each pack contains of 30 mini bars and there are 4 fragrance to choose from such as : Fragrance Free ,Lavender, Eucalyptus and Green tea. This product is organic and does not contain any harmful chemicals which is why it also safe even for the youngest member of the family .

For now we are focusing on the Shampoo Company mini bar as our first step in making a movement to reduce plastic consumption. Thus , in 2021 the group would also want to tap the packaging market which we will be naming the “ Pure Packaging “ . This project is still being discussed by the team . However, the implementation of this idea will still depends on the performance of Shampoo Company mini bar for the coming years. If Shampoo Company mini bar remain successful we will definitely push through with this idea. Hence, we can help other companies contribute to the reduction of plastic consumption . After all ,our ultimate goal is to be able save the future generation.

Pricing

The strategy that the company will use for Pricing is Market Penetration as this focuses on providing lower price, since this also helps in getting the sustainable consumers’ attention mainly because green products are usually expensive and we want to tap that problem by providing eco-friendly consumer affordability . As a result, brand recognition will also increase and boost the profits .

Promotion

For social media promotion, as hashtag will be used in order to promote a campaign that aims to educate people about the plastic pollution, #plasticfree will be used when a consumer purchases the Shampoo Company or when they do something for the environment which is related to the company’s goals. Additionally, an eco-friendly influencer that is known with this lifestyle will promote the product, and an ambassador of the brand will be chosen from the contests in the social media platforms. Moreover, for every purchase of shampoo , 10% of the proceedings will go to the brand’s chosen organization which is the Plastic Oceans Foundation Canada, that shares a similar objective as the company.

Distribution

The distribution channels of the company are through retail stores such as Walmart and Shoppers Drug Mart, as the company directly sells to the retailer after getting the goods from the manufacturer; E-commerce such as our own website and Amazon will be the company’s means to sell the goods online anytime and anywhere, and it will decrease costs from labor; and lastly, partnership with Hotels that share the same culture as the brand in regards to helping the environment. One of them would be Hilton Hotels, one of their main social responsibility is to recycle soap in to their landfill. With this, they were able to recycle 9.6 million new soap bars to be allocated to different parts of the world (Hilton, nd). In addition, Hyatt’s way of contributing sustainability is by segregating waste properly and also recycling soap bars to be distributed to different countries, especially to those who are in need (Our Planet, ND). Lastly, Marriott corporate social responsibility is by reducing all of their carbon emission such as water usage is lessened by 15%, carbon by 30%, and waste and food by 45% and 50% respectively (Bethesda, 2017).

Marketing costs

5 to 10% of the revenue will be committed to marketing costs - the company aims to provide its marketing channels to obtain and acquire different consumer sectors for brand recognition and maximum profits. A website will be made where it will be maintained and updated by a designated team, also it will show the analytics and data of the visitors of the website, and this will guide the brand to the patterns and behaviors of the customers; Social media platforms that shares and posts that are related to the brand’s mission, vision and goals; and online advertising for the advertisements that will use cookies to match the keywords and searches of potential clients.

SWOT

Strengths

Shampoo Company uses cornstarch packaging which makes the product zero waste. Compare to its competitors, Shampoo Company offers its product in very affordable price . Also the product is very handy and made of organic ingredients which is safe even for the youngest member of the family .

Weaknesses

Low brand awareness would be Shampoo Company’s major weakness since its still new in the market. In addition to that its limited product line and limited fragrance would be considered one of the weaknesses .

Opportunities

Since sustainability is done all over the world, it is a great opportunity for the brand to expand its horizons to different countries that does not have this kind of product. With this we would be able to help not just our country, but other countries that are striving for change as well.

Threats

Possible threats for the brand is that competitors may also shift to this set-up in order to capture some of the market share if the brand is booming and they see that this kind of product is being accepted by the people, they will definitely do a version of their own.

Porters 5 Forces

Pestle Analysis

For the PESTLE Analysis, the brand can compete to established businesses because products that are tested in animals are being banned by the government, and most of the competitors undertake this procedure – additionally, increase in salaries for the Canadians will influence the purchasing behaviors, and may result in trying new green products; Increased awareness of the use of synthetics in shampoos or soaps due to social media; Marketing tools designed for the company that will influence the brand recognition; Enacted laws that will govern the protection of the environment thus may prohibit the use of harmful chemicals in the products, transparency that will force companies to reveal their waste, taxes on industrial and chemical waste; Rules in regards with recycling may change, and this may change the mindset of the people; and the government prohibiting animal testing.

Perceptional maps

Budget is one of the reasons when consumers decides on buying a product, and the indirect competitors such as Dove, Pantene and Tresemme are with similar prices, and Shampoo Company can compete with this due to the fact that it is almost the same cost but with no harmful chemicals. With the direct competitors such as Rocky Mountain Soap and Lush, the brand can compete through having zero-waste with its packaging, moreover, establishing the brand with the help of marketing, and strategies in the business model.

Financial Strategy

Startup Assets
Cash required	$20,000
Startup Inventory	$8,000
Other Current Assets	$2,000
Long-term Assets	$35,000
Total Assets	$65,000
Total requirements	72,150

Startup Funding
Liabilities
Accounts Payable	$8,000
Notes Payable	$2,500
Other Current	$1,000
Long-term Liabilities	$10,000
Total liabilities	21,500
Capital
Owner	$25,000
Investors	$5,000
Total capital	$30,000
Total Startup Funding	72,150

This financial table shows the forecasted balance sheet for the company Shampoo Company. On the top left side of the table is the start-up cost that will need to start the company. This amount will be gathered from the team members and investors of the company.

Since the industry is growing the forecasted sales for the Shampoo Company is growing to if all falls according to plan. All the liabilities will be coming from the payment of loans from the investors of the company. That being said the projected revenue of the company will be $394,650.49

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