IBPM 3 – 22/11/2011

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

Nikolett DELY, Szandra KANAI, Camille LE MEUR

Ludivine LEBRETON , Céline VITROUIL, Menglu ZHANG

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Summary

Introduction

………………………………………………………………………………………………p 03

Brand Name

………………………………………………………………………………………………p 05

Strategic Analysis

………………………………………………………………………………………………p 05-17

I Pestel

II Porter

III Swot

IV Benchmark

1) Direct competitors

2) Indirect competitors

Marketing Mix : 4 P’s

………………………………………………………………………………………………p 18-20

Survey

………………………………………………………………………………………………p 21-23

Financial part

………………………………………………………………………………………………p 24-26

I Sales forecasts

II Business Finance

Conclusion

………………………………………………………………………………………………p 27

References

………………………………………………………………………………………………p 28

Annexure

………………………………………………………………………………………………p 29-

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Introduction

Nowadays, according to the change in consumption there is a growing demand of drinking

coffee more times per a day than it used to be. But unfortunately, in some countries, price sensitivity in

case of economical conditions is questionable. Some are very price elastic in case of continuous

purchase of coffee during the day, while in others’ life the issue of being eco-friendly and to contribute to

reduce its side effect is a must.

To be exact, within the beverage industry, price elasticity is very high in case of price discrimination

within different geographical segmentation. As an example students’ consumption in case of any drinks

is high. It is a basic need, in case of spending the whole day in school or going to gym or any kind of

sports. That is why having a tumbler is famous within this segmentation. Not just cheaper, but practical,

fashionable and eco-friendly.

But have you ever thought about 2 in 1? Two separated sides in order to keep the cold and the hot

within the same tumbler, so you can drink hot coffee during the day and cold fresh drinks after deducting

from the excess energy at the gym.

Would it be a successful innovation within the French market?

With the following assignment you will get a bright picture about the benefits of our product and the

concept of reducing the consumption of disposable glasses and bottles.

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Brand Name

Our product’s brand name is Green Fish, which is a symbolic name referring mostly to being

environmentally friendly. Nowadays there is a growing demand of eco-friendly products in order to save

our environment and reduce the waste, recycling, etc.

The fish part of our brand name refers to the duality, because fish lives in cold and hot water too.

As our slogan says –share your drink, save your planet!- it contains two important concepts. One is

about socializing, the issue of giving something, to share with your friends, because it has two sides one

for you, the other for your friend. Save your planet because by drinking from it and by giving, you reduce

the amount of those who use disposable product either glasses or bottles.

Moreover, our value contains the 4 F’s, which is the following:

Friendly: as we above mentioned, the concept of saving our planet and being eco-friendly.

Funny: The symbol with the fish, and the name shows the funniest of your product

Fresh: any of the drinks what you fill into our two sided tumbler is being kept fresh, which

makes you being fresh as well, no matter if you are doing sport or just spending the day in the

library.

Fashionable: our product has various designs according to the demand of the consumer. It is

varied by gender, by age and by hobby. Our target can choose color according to their needs.

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Strategic Analysis

I PESTEL

Political influences

Environmental issues are becoming more and more present and important in politic

people’s mind and there is a growing awareness of them in people’s mind.

The relationships between the French government and eco-friendly companies can influence our

strategy to run our business and chose recycled materials to produce our tumblers. In France,

companies deals with what is called the “RSE”.

We also have to deal with health issues through our product because it concerns beverage and its use

can occur things we are responsible for.

Because we produce a beverage product, we must be prepared for state and local government controls.

Economic issues

There is no denying that at any time, there is a constant demand for food & beverage

products.

But customer’s purchasing power depending on changes of incomes, economic and financial situation.

Especially for students who often must be careful of what they buy, a crisis can affect their purchasing

power.

Also with the students’ market what can be important to know is the sensibility to a middle/long-term

vision for daily used products. Indeed, some students would think it is more practical and cleaner to just

buy a cup of coffee or tea or a fresh drink at the closest bar rather than preparing it itself on a daily basis

and wash one’s tumbler. But students who feel concerned by ecological issues and who have a good

image of recycled products are likely to prefer our product. Besides, some others really prefer drinking

their own beverages that they know where it comes from if they bought it before, or they simply made it

themselves. Then our product will let them free to carry their own beverages. The other advantage is

that you don’t need pounds in your pocket to buy a drink at the bar!

If we cover first a local market and expand it in the whole France, we must take into account taxations in

our financial plan.

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Social influences

The education that students received during their childhood won’t directly determine if they

are likely to buy our products but their willingness to enjoy having a cup of coffee or tea during the

break, after lunch and so on… Indeed, a child who has parents who are used to do these little breaks is

more likely to do the same than a child who has not.

We admit that gender issues are quite important in our strategy to target customers. Girls and women

are more likely to buy our tumbler. It relates to their bags, the trends and the appearance you get when

you drink in a funny and personalized tumbler. Boys and men are generally less sensible to these little

things and above all this when they go to school they don’t have as big bags as girls have.

Trends will probably boost our sales if for example, famous people are seen with tumblers in the street

or if tumblers catch the eye of students and potential customers.

The lifestyle determines the willingness to buy our tumbler. Indeed, many social criterias will influence

students to buy r not our product. Some may say they don’t feel they have the time to prepare or buy

their beverages and pour it in a tumbler, depending on the regularity of their breaks, if they feel they

could return their purchase with our tumbler…

Moreover, changes in preferences and “natural” psychological evolutions are important in the buying

decision. For instance, some students drink the same things for a certain amount of time, and then they

enjoy changing for another beverage, and drinking it for another amount of time, and then changing

again. Lassitude might be a barrier in the buying decision process in students’ minds.

Technological influences

Progresses in manufacturing could improve efficiency even if we would not produce high

levels of quantity but give the priority to naturalness and quality of our product.

Agricultural & organic development is a issue for producing our product at a lowest cost and a best

quality possible.

There are challenges in chemical advancement for keeping constant temperature and increase the

lightness of our tumbler.

Ecological influences

We will take advantages of the eco-friendly trend by analyzing continuously advances in

fair trade equity, and find the best recycled materials and suppliers to produce our tumbler.

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We believe it is an opportunity to develop our eco-friendly image with the increase of sensibility to

environmental and social issues in student’s mind.

Legal influences

Because we produce an innovative product, we will buy a patent in order to make profits

with this innovation throughout competitors

Sometimes students make only a wooly differentiation between public highway and private road, which

can be a problem in some situations. The authorization to drink on the public road depends on the

location and what is inside the tumbler…

Finally, we should pay attention to the legal dimension of targeting students market, characterized by

low power purchasing, impulsive buying, and high level of suggestibility.

II Porter

The threat of substitution is a crucial factor, because it can limit the profit of a company potential for

the market it wants to enter to.

Since we are talking about a tumbler having two parts, both of them with the

same, but at the same time with different functions, we have to check the

possibility for substitution for both parts.

What can replace a tumbler keeping a drink warm? It could be a microwave, a

kettle to boil water, or a gas-stove. Since we are talking about a product that people take with them

where they want, these options are impossible to be as substitutive products. No one could bring a

microwave to a park when he wants to drink a hot coffee in the afternoon. The same applies to the cold

substitutive products.

A fridge or a cooler bag would be the two possibilities, but evidently the fridge is out of the question. It is

too big and too heavy.

A cooler bag can be a potential threat for substitutive product, but we also exclude this option. If our

customer wants to drink cold ice tea during his way to the gym-for example-, a bag and the ice battery

would just take too much space and it would also be heavy.

Therefore we have decided that the level for the threat for substitution is low, because none of the

above mentioned items are portable.

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First, we would like to sell our tumbler in the French market, starting with Rennes. Therefore with the

help of Hofstede’s cultural analysis, we observed the purchasing power of the French inhabitants as a

first step in the buyer power analysis.

We found out that French have a very high level: 681 , which means that when it comes to new,

unknown products, it takes bit of a time for them to get to know the product and maybe to try to use it.

Even though everyone knows what a tumbler / thermos is, we still have to make the French customers

believe that having a 2in1 tumbler is something that they must have. Therefore we have to make them

loyal, have to make them attracted to our product from the early beginning.

Hence, we will start selling the Green Fish tumbler at a lower price at the beginning and then in the

future, we can think about raising the price.

Also, we believe that convincing our customers with the eco- friendly idea can be the best way. Even if

some of the students we want to sell to do not care about if the thing they drink from is eco-friendly or

not, we can make them interested in this idea by having various campaigns and presentations, mainly

about how fashionable Green Fish is at the same time.

We think that the buyer power is not that extensive, because thermoses are not every day, nor luxury

products.

After observing the buyer power, we took a look at the supplier power. Of course the most important

thing is to find a supplier for the tumbler. Most of these thermoses are made from stainless steel,

because it can keep the liquid hot or cold for 24 hours.

Green fish is an eco-friendly tumbler, because it also has designed papers to cover it with recycled-

paper. Therefore we “share the drink and save our planet” at the same time. From one hand a recycled

paper has the same technical specifications as the normal papers and they have relatively high

brightness level that reflects the light clearly, so it would be easy (and cheaper) to use different designs

in these papers.

1 http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/

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We would also like to keep in touch with some designer companies, to collect some ideas for the

Green Fish design.

Finally, we would like to collaborate with French beverage companies to find sponsorship and support

for our business.

Competitors:

Competitor analysis is an essential component of corporate strategy. The intensity of rivalry between

competitors in an industry will depend on many things, but in our case the most important is the degree

of differentiation.

In case of our product the most effective competitor is the Starbucks. Starbucks has a very

strong market share worldwide, offering quality and creating value and loyalty. Starbucks is an

international coffee chain based in Seattle, Washington. The company, by using value added

pricing created very strong brand equity and with its continuous differentiating they keep their

strong market share and increase in its profit annually. To be more effective the company is

trying to target every people by creating different products. By launching portable mugs they

became a very strong competitor for our Green Fish Product. Mostly since the company added

value by using recycled materials and by showing environmental responsibility.

A double-walled tumbler made with 30% recycled materials and featuring

our new logo.

Just like the name suggests, Made Greener tumblers are made with the

environment in mind, using 30% post consumer recycled materials.

Featuring our new Siren logo, this tumbler helps to keep hot beverages

hot and cold drinks cold holds 16 fl oz and fits standard car cup holders.

Cf benchmark part

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As a conclusion of the rivalry within the industry, we can say that because Starbucks has its

strong brand equity, it would be hard to compete and gain strong market share, according to Hofstede

the uncertainty avoidance of a new product is high within the French culture, which means create loyalty

and strong brand equity takes time but since our product is differentiation with the added value of having

two parts within one tumbler, we can say that among the other competitors, like Funtainer, which only

keeps the cold and not the hot temperature, the Raya and Thermos, we can make success within the

market. With other words, the intensity of rivalry is high in case of structure of the competitors but

differentiating our product creates bigger market share.

Threat of new entrants:

New entrants to an industry can raise the level of competition, thereby reducing its attractiveness. The

threat of new entrants largely depends on the barriers to entry. In case of our Tumbler being effective in

France, setting up a lower pricing strategy is must. As the competition and the fear of switching for

different supplier are high, and as our target group is mostly students, setting up a high price would be

loss for the company. In case of our product and target group, we can say that the price sensitivity is

high and people are elastic. According to Hofstede, French people are a bit sensitive in case of new

product (uncertainty avoidance is high) and they do prefer long term relationship where the loyalty is

the value and where relationship what counts over deal focusing. If they try once a product, it is hard to

convince them for a switch so the new entrant has to focus on new targeting, segmentation. In these

kinds of market, differentiation is very important to succeed. That is one of the main barriers what our

company has to deal with.

That is why we have chosen penetration pricing, which is about setting up an undeniably lower price

compared to the regular prices of this product in the market. The reason is to attract consumers to try

this new product and likewise to promote it to the users in order to increase its demand. Using push

advertising methods would be an effective way of making the consumers switch to the new product and

by using low price strategy we could increase within the volume of sales and creating economies of

scales.

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III Swot

Strengths

Practical

The Green fish’s tumbler is very simple and practical. These two parts can be detached on one

second, and then two people can drinks on the same time a liquid with a different nature and

temperature. Then, the lid’s tumbler can be removing and allow to clean the tumbler to the dishwasher,

so you keep your tumbler for long time still clean and without microbes. Moreover, for drink you just

need to open the small capsule on the top of the lid and close it after using. And in the intention to make

our tumbler still more practical we add one handle.

Prototype:

Innovation

For sure this is an innovation; a lot of tumblers exist today on the market but they have not the

same features; keep liquid cold and hot and on the same time, the user can’t divided the tumbler on two

parts, only one person can drink and then sometime it’s difficult to clean it so to keep it by hygiene

precautions.

Green Fish tumbler had never been selling. Our tumbler is microwave and dishwasher saves that mean

use can use it for numerous of using (makes chocolate drink, coffee, tea ...). And the lid provides easy

drinkability and helps to prevent spills. So, Green Fish has a great commercial advantage and good

opportunities.

Individuals’ capsules for each

part of the tumbler; easy drink

and no spills

Practical

handle

Two separated parts

(no passing one

temperature)

Removing lid at the

top of the tumbler

Airless space

between two

walls

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Eco friendly

Our tumbler will use a maximum of recycle materials, for the lid that will be a plastic bottle

recycle. For the body’s tumbler we need some technology in order to keep temperatures’ liquids so we

will use airless space between two walls (a vacuum isolation). That allows avoiding the ambiance

temperature to change the liquid temperature. In this case, we don’t need to use some very polluting

materials, like the aluminium. These two walls will be created in stainless steel. This system will be use

of each tumbler but between them as well. The production will be local in order to avoid not necessary

transport and pollution.

Two utilizations instantly

As we said above, our tumbler is divided in two equal parts and the feature is very useful

because unusual, the others tumblers on the market don’t propose it. In the same idea, these parts can

be use to keep two at the time cold and hot drinks. So the user will save his time and enjoy during the

using two different natures and temperature of liquids.

For everyone

Is because the Green Fish tumbler is practical, that it can be use by everyone, we decide to

focus our market on the student segmentation for the laugh, but we already know that a lot of different

types of consumer can use it; women, men, student, and even children.

Simple

Of course, out tumbler is simple! Simple of using, for clean it, share it with friends or family and

even to customize it, it’s fundamental for us to sell something that everyone can reach by the price and

by the using, that why we create Green Fish.

On the other hand, you don’t need to read the notice or make training in order to understand how the

tumbler works and how it is building.

Economic

The tumbler has an easy using and cleaning and the design is simple as well, that why, Green

Fish has a cheap price. But, the Green Fish tumbler is also economic because people use to drink two

coffees by days minimum. For example, at school each coffee cost 0, 50€, so around 20-25€ by month.

And the tumbler represent a cost of 25€ so only after the first month after buy it, the customer has

already makes his return on investment (ROI). Then make your coffee at home each morning will

cheaper than to buy one at school or to work. In supermarket you can buy on coffee pack for 3€ and you

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can make, around 25 coffee with, so you coffee cost around 0, 12€. That why the tumbler is economic,

even if you buy it 25€!

Weaknesses

The weight

Even if the tumbler is an innovation, the weight stays the same (for 50 centiliters countenance

represent a weight of 230g) and we will make research in order to improve this feature of the product.

Our intention for the next product of Green Fish is to propose something with innovative technology that

allows reducing the weigh (like the carbon or the titanium material).

Time

According the using time, the user can keep his liquid cold or hot during around eight hours like

the others existing thermos in the market. So it’s not an advantage for use, the added value of our

product is the design and the convenience of it.

Limit of utilization

Then like this others thermos as well, the efficiency of the Green Fish tumbler is the best in

some limit and condition of using. Our tumbler will present his best capacity between 0° and 16°C,

outside these temperatures, the tumbler will be not so efficient.

Opportunities

Newness

Green Fish is a young company and our product, vision and value are definitely new and

young, we want to be the new fashion tumbler at work, in your car, to the beach and in your bag!

Opportunities of market

As we said above, our product can interest a large part of the consumers that mean we have

large opportunities as well. We can sell the Green Fish tumbler in the work market, student market,

sport market, travel market, a lot of possibilities can be imagine to increase our sell and grow our

company. This potential can attract business angel and help us to grow.

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During next year’s we want create a range which answer to all requests by segmentation. That mean we

don’t want to propose a generic product for everyone, contrary we want to focus on needs of each

segment and propose to them on product adapt to what they expect.

Evolution of consumption

In the same idea, years after years we notice an evolution of the consumption of the population.

Definitely, people accuse more stress, travelling more often and are less sedentary. Then people are

always attracted by the news things. The changes mean companies have to adapt those products and

find others solutions to answer to the news population needs. Green Fish tumbler answers to these

news needs because our product can be use on a large type of situations. And in the same idea, in

order to reduce our stress we consume more energetic drinks than some years before, not only coffee,

but all drinks can keep us awake and ready to work longer.

Threats

Thermos existing

When we have made survey on our market we have sawn that there is already a lot of different

thermos shops, a lot of different design, price and others choices available on internet. That means

Green Fish has a numerous competitors, and we have to be different and make the difference for the

customer.

Competitors copy

All of news companies know that, we can’t avoid the copy, above all on this international

economic work. We exchange still more and more merchandizes between countries and obviously,

countries will inspire of the others products and copy the others one.

People’s habits

People use to buy, to drinks or to eat something that they will throw after. Contrary that before,

our parents and grandparents used more “long life thing”, so we have to educate again our customers to

pay attention the ecosystem and learn to them to use one thermos rather one bottle, or one glass. This

phenomenon can slow down our sales and our market share growth.

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IV Benchmark

In order to know where our product is on the thermos market and know our strengths and weaknesses,

we realized a survey on our competitors. We listed their features.

1°) Direct competitors:

The definitions:

Offering almost the same and/or services as we are offering to your clients and/or customers.

Having the same targeted field of clients, customers and/or demographics.

Our direct competitors are numerous; we just list some of them, they most important, first in Europe:

thermos and Sigg Corporate.

A – Thermos

Thermos, founded in 1904, is the most famous brand for this product; it created the thermos product,

that why today when we want to talk about the tumbler which keep hot and

cold water we call it thermos. The name of this brand is becoming the name

of the product. The quality is basically the best one on the market.

Thermos Company is based on all over the world; it’s the leader of the market. And they pay attention

especially to the design of the product and propose all the time new and

trendy products (as you can see above on the picture on the right). But they

still not propose our idea; make a thermos with two separated parts.

The thermos brand has thought like us for segmentation of the market, that

mean they propose different products for children to go to school, other for

professional to go to work and to go to the mountain or to the sport, and still

new products as well.

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B- Sigg

Sigg Corporate, Switzerland Company, famous for his quality and special design easy to keep

your hand, was founded 100 years ago. This brand proposes only tumbler 100% recyclable materials.

They promote and sell the tumbler with a trendy way that changed from few years before, the customers

tumbler was mountain athletes. This brand is one of nearest of our product, because Green Fish

propose as well recyclable products and a nice design, like a fashion product. Moreover, Sigg Corporate

sell its products in France, so it’s definitely a direct competitor.

C- Aladdin Company

Aladdin Company (based in Los Angeles, United

States) is recognized by its recycle product, even if it’s not the

only brand to do this kind of tumbler, the style and their

customers target and communication strategy is different. Then

the price is not the same, for these tumblers (above on the picture) the customer

need only 10€, it’s really cheap product and the company don’t really pay attention

to the design and the trend. So one more time, Green Fish has advantage against this company.

D- Contigo

Contigo® presents these tumblers, with a design very particular, which

one the customer can recognize the brand. The products are stylish, yet resilient

and sleek yet strong. This American brand proposes as well ceramic mug and

water bottle, by shipping. It’s present in South America, but in Europe, in Asia,

Middle East and Australia as well, this company is a huge competitor for us, even our innovation, it

knows contacts in the market and has businesses on over the world.

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E- Copco

Copco was founded in 1960 as a porcelain-enameled,

and propose today more than 50 different styles of teakettles

in an array of colors and stainless steel finishes. The

customer can find these products online but in different

American distributors also, like Wall Mart.

Then Asia is an area and a market, where people use a lot and often tumbler, thermal or not, so it’s

important as well to know what happen to our competitors on this market, two of them; Tiger Company

and Zojirushi.

F- Tiger

Tiger Company, is a South Korea company, created in 1997, it has shop based in Korea in

China. This company assured the quality of his product, that mean it not on the same pricing strategy

that us, because we don’t propose a luxury product but standard product, very practical, innovative and

the price is reaching by students.

G- Zojirushi

Zojirushi, is a big company which proposes a lot of tools to cook by

ourselves at home. This brand, created in 1918, is famous by its rice cooker, so

for us it an advantage because customers will not think to go in this shop to buy a thermos tumbler. This

company makes as well restaurant and hospitality products, so it’s have very diversified segment.

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The biggest difference with our product is that their

tumblers are not divided in two parts, so it’s a real

innovation that Green Fish proposes! Then this

company is not on the European market and in France, it’s sell in Japan, Korea, Taiwan, South East

Asia, China, so it’s should be an high potential competitor in the future when we will develop our product

in Asia.

2°) Indirect competitors:

In opposite the direct ones, those competitors are not providing exactly the same products with us

but they provide similar and alternative things.

A- Small glass story and Stio

Small glass story and Stio propose a service very personal. You can mail you

photo or the picture you want to print on you

bottle to them and then they will make the

bottle for these special purpose. We think it

has a great developing opportunity in the future. This is an age

when every wants to show their personality.

We think create a website in which we can make our costumer design their own bottles. We make them

select the colors of lid and bottle, the shape and size. The picture on the paper is also decided by our

customers. The customer can in this case make his unique and individual tumbler.

B – Starbucks Coffee

Starburcks Coffee, everyone knows this American trendy brand

which makes a nice coffee and others drinks that we like to drinks

after a shopping day. It operates a cross-product operation. They sell

coffee and sell the ceramic tumbler and mug as well, that why it’s an

indirect competitor because it sells some similar product that our

customers can choice instead of our tumbler.

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Marketing mix : the 4 P’s

Product

“SEATTLE, April 12, 2010 - Starbucks is giving customers around the world a bold

incentive to swap the paper cup for a more eco-friendly option. On Thursday, April

15, the company will reward customers who bring a reusable tumbler into

participating stores with a complimentary brewed coffee. This effort is just one of the

ways Starbucks is collaborating with customers to reduce environmental impacts.

The company has offered customers a discount for tumbler use since 1985.”

Starbucks has launched a trend with their tumbler but our product is more than a

casual tumbler: it’s a travel mug very practical and innovative.

The Green fish’s tumbler is innovative because is composed of two parts separated

in the middle by a double walled. The objective is to keep the coffee hot in the first part and the iced tea

cold in the second part. Other beverages can be used. On the top of the tumbler, there is a filter in the

cap in order to avoid microbes. Therefore, the tumbler is very practical because is represent the two in

one concept.

Nowadays, the sustainable development is more than

important : is essential. We have decided to create a product

environmentally friendly. The product is made of recycled

materials. Furthermore, our product is totally reusable.

And because the principal target is composed by students,

we have chosen to personalize our products. Everyone can

choose the color of either the tumbler, or the cup, or both.

And it’s also possible to customize with a picture to cover

the tumbler.

Price

Green Fish has to do a penetration price strategy by setting a low price. Indeed we want to capture a

large share of the market quickly. Moreover, we know that a strong competition will emerge soon after

our introduction.

We did a benchmark and with all thus elements we conclude that a price around 25€ is a good choice.

Indeed, we want to target firstly the students in schools and universities. They are very price sensitive.

We can’t afford sell our product for more.

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Example of Starbuck’s products : the cheapest price is 8,95$ and the more expensive is 22,95$.

Place

To the beginning, we will use only internet with our own website and an online boutique. We are

more in favor to use the clicks strategy because of the chosen target and the current world. Indeed we

have to be present on the web, because there are more and more people whom use this tool.

Our company wants to create some partnerships :

ESC Rennes : the school wants to help its students. We will use the cafeteria and the Autobar

to be present around coffee, tea, and other beverages.

La Brioche Dorée : In Rennes there is no Starbucks but a lot of La Brioche Dorée shop. We

will suggest them a partnership to be present in their boutiques. It’s a good opportunity for them

because of the competition in Rennes concerning the coffee shop. If people can order coffee

and after keep it on the tumbler until they arrive to their office, and if they appreciate it, they will

buy again in La Brioche Dorée.

Décathlon : it’s a French Manufacturer of apparels and equipment for a range of sports. There

is also shelve dedicated to the food and beverage for sportsmen. Because of sportsmen usually

use tumbler to go to the sport. We will organize a shelf with Décathlon. To begin, we will test on

the Décathlon Oxylane in Betton.

Les Vieilles Charrues : This festival is the largest music festival in France, attracting more than

200,000 festival-goers every year. It’s correspond to our target : students !

Promotion

Our company and our product are new. Therefore, we have to use the push communication. As I say

before, we must use internet. It’s why we have developed a website. The objective is to communicate

about our product, our events. In few years, it will become also a e-boutique. … The social networking

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sites have to be used. Indeed, facebook is now an essential tool for any company hoping to do

business online. We can know who are following us, their information (name, mail…) and obviously the

popularity of our company.

There are other social networking sites as Twitter, YouTube … On YouTube for example, we will post

son video as a lip dub … to promote our company.

We want to use the sponsorship and especially the cycling. Because cyclists use lot the tumblers.

Moreover there is a huge event regarding the cycling : Le Tour de France. It allows us to travel around

the different French department and to become more famous. To begin, we will just go in 3 different

towns as Paris obviously but also Albertville … During this kind of events, we will distribute some pens

and advertising bags.

And obviously with our partners, according to partnership agreements, we can use their

communication tools like, their facebook page sharing link with our website… And with the ESC

Rennes we can advertise on Descibel radio and in their exhibition booth during “le salon de

l’étudiant”.

22

Survey

The result of our questionnaire

In order to get to know the consumer behavior, our group has gone through a questionnaire among

thirty students randomly chosen by our target population, internationally, from all over the world.

Basically we questioned those students who studies in Rennes, France, as our business’ starting point

is Bretagne.

The 57% of our sample population were male, while the rest 43%

were female.

The average age is between 21-25 years, and 100% proved to be

students. We asked students because the target group for our

product is mainly youngsters.

Our survey has been created to enlighten the question of how

price elastic students are and how eager they would be to buy

a product like a tumbler.

The interviewee had been chosen not just by age but by

different geographical situation too. Fourteen countries had

been asked and the answers were very differing according to

geography. According to the cultural differences, those

countries where the quality and brand counts more, like France, Norway and Germany, people are less

elastic and the asked students said “yes”, they would buy our product for a little bit higher price, but for

example a country like Hungary or Mexico would not pay more than five Euros. From one point of view,

this result shows a very positive tendency, because our basic market is France, mostly the region

Bretagne and the students tended to be less price sensitive, but on the other side, in the city like

Rennes there are numerous amount of exchange students, who has more negative consumer behavior

in our case.

AGE

17%

80%

3%

Under 20 21-25 >30

GENDER

Female

43%Male

57%

23

How often do you drink

coffee?

46%

36%

18%

Once a day >once a day Don't drink

Do you drink tea?

yes

67%

no

33%

Fifty-four percentages of the asked students consume coffee, once or more time per a day and

according to the result of our survey 67% drinks tea different period of the day which means that they

either buy it in the school or take it from home. As the 63% of the interviewee does not have a

thermos, then it means that they are eager to pay extra in the school to buy either coffee or tea.

Does it worth for them? Is it better than taking from home? Well, coffee is a lifestyle. Some people drink

it as a habit, some drink it because they are tired, some need it after smoking but one is for sure, the

consumption has a growing demand among nowadays’ youngsters.

More than half of the questioned students’ answer was “yes”, when we asked about the need of drinking

water after coffee. In some countries, like Italy and Hungary it is a part of the culture, and sometimes

when people are having picnic or going to the mountain for having a trip, it can be annoying when we

need some cold water after coffee or after climbing a big mountain. But what if it gets warm? Nobody

likes the feeling in case of need. That is why 93% of our students said that the idea of two-sided

tumbler is very useful. “You can keep cold and hot at the same time, it is very practical and an

amazing idea” said Györgyi, from Hungary. “It is not just fashionable but the concept of being eco-

friendly brings a greater value.” Joel says, from France. 80% think that being eco-friendly is a must

nowadays and they prefer these kinds of products.

Another advantage for our company is that 73% of the

people said that thermos was fashionable and as our

product has an extra value of being environmentally

friendly, they would be eager to pay more for the

product.

Only 17% said they would pay 5-10 Euros, 27% would

pay between 10-20 Euros. While the rest said, that

they would pay even more because of the concept and the differentiation what our product has.

The conclusion throws up a very positive result in case of announcing our product among the students

and analyzing and using the given data, according to the calculation of mean, we can say that to gain

the best success the right pricing for our product is between 20-25 euro.

How much would you spend on the

Green Fish thermos?

17%

27%

23%

33%

5-10 € 10-20 € 21-25 € 26-30 €

24

FINANCIAL PART

I Sales Forecast

This table explains how we calculated our sales forecast for Year 1 and Year 2. We decided to rely on a

Medium level of forecasting for our financial plan, but we also mention what sales could be at a low and

a high estimation. The launch of the business is planned on September, which is why Year 1 begins in

September and ends in August the year after.

Years Forecasts levels

ESC Rennes I Rennes II Salon de l’Étudiant

Décathlon La Brioche Dorée

Festival Vieilles Charrues

Tour de France

Year 1

High 15% 270

8% 1920

8% 1200

3% 1920

Medium 10% 180

6% 1440

6% 900

2% 1280 (only in January)

Low 5% 90

4% 960

4% 600

4% 600

3800-1280= 2520 (units on 12 months)

2520/12=210 (units per month) and 2520*25= 5 250€ (incomes from September to December and February to August)

210+1280=1490 (units) and 37 250€ (incomes in January)

Year 2

High

We maintain our Sales, same than Year 1

150 1 000 900 450

Medium 120 720 750 300

Low 90 400 500 150

2520+120+720=3360 (units by year) and 280 (units per month)

280*25=7000€ (incomes per month) and 280+750+300=1330 (units in July) and 1330*25= 33 250€ (incomes in July)

1280+280=1560 units*25€= 39 000€ in January

Year 1

We are planning to focus on the Students Market in Rennes for the launch of our

business, Year 1. That is why we choose the 3 main areas to distribute our product: the ESC Rennes,

and Universities of Rennes I (24 000 students) and Rennes II (15 000 students). We based our

percentaging strategy on the estimated Purchasing Power of students in each school. The last public

we target for Year 1 is people coming into the “Salon de l’Etudiant” of Rennes (Student Show), which

happens once a year in January, and usually gathers between 60 000 and 70 000 (64 000 in 2010). We

will take the benefit of the ESC Rennes’s presence at the show to set up a little place where people

could discover what a micro enterprise born in an Entrepreneurship Class can do! It may provide a

strong visibility in the Students’ minds and it would be an occasion to sell our product.

25

By the end of Year 1;

- Our Sales forecast is 3 800 units sold

- For a Turnover of (3 800*25€) 95 000 €

Year 2

For Year 2, we plan to keep our selling constant into our Students Public (ESC

Rennes, Rennes I, Rennes II, and Salon de l’Étudiant). But we plan to increase our sales, by targeting

new markets, within we believe opportunities lie;

The Décathlon store, in Chantepie next to Rennes,

provides equipment and sports products,

Le Tour de France, a well known international biking

competition, which may be a lever to implement and

develop our Sport People and General People Market

La Brioche Dorée (our partner)

Le Festival des Vieilles Charrues in Carhaix, Brittany,

is one of the biggest music shows during 4 days that brings

more and more people, especially young people but also

music fans every year.

Here again, we have done an estimation of our sales based on the number of customers where we want

to sell. By the end of Year 2;

- Our Sales forecast is 5 690 units sold

- For a turnover of 142 250 €

Sport and Dynamic People Martket

General People

26

II Business Finance

The following table sums up the key numbers for our financial plan for Year 1 and Year 2.

Year 1 Year 2

Turnover 95 000 142 250

Total Direct Costs 33 990 24 468

Gross Profit 61 010 117 782

Gross Margin 64% 83%

Total Expenses 45 041, 25 61 555, 2

Total Profit 15 968, 75 56 226, 88

Net Margin 16, 8 39, 5

Calculations:

Total Profit (Y1) = Turnover – Total Direct Costs – Total Expenses

Total Profit (Y1) = 95 000 – 33 990 – 45 041, 25

Total Profit (Y1) = 15 968, 75

Net Margin (Y1) = (Total Profit * 100) / Turnover

Net Margin (Y1) = (15 968, 75 * 100) / 95 000

Net Margin (Y1) = 16, 8%

27

Conclusion

We began building up our business two months ago and coming up with the idea of Green Fish

was not an easy task to do. We wanted to find an idea which is both innovative and eco-friendly. After a

lot of discussions together, we came up with the idea of a tumbler / thermos divided into two parts and

made with recycled materials: one for keeping the drinks cold, the other one to keep the liquids warm.

It was a really good experience to learn to work in team but also to develop our individual skills.

By analyzing the internal and external factors of the company, we have a clear view and better

understanding now of our business. This allows us to see which direction we are going and how we are

going there.

We have dealt with this project by focusing on both project management and entrepreneurship classes.

More specifically we were building up our project by taking into consideration the three key points: -

time; -money; and –schedule. As a result of our analyses and survey -we did among the students of

ESC-, we came to the conclusion that we have an opportunity within the market.

After having done the sales forecast and the financial analysis we confirm that our product would be

profitable and feasible enough to launch it in real life.

By purchasing our tumbler students will both save money in the long term and “save the planet”.

If other students multiply the ecological actions, we will efficiently manage to contribute to the

environmental issues with Green Fish.

28

References

Kotler Armstrong : Principles of Marketing ( fifth edition)

www.sigg.com

www.coffeebean.com

www.tiger-ltd.co

www.zojirushi.com/

www.starbucks.com

www.goodhousekeeping.com

www.gocontigo.com

www.copco.com

www.starbucksstore.com

www.singaporehomebiz.wordpress.com//

www.briochedoree.fr

www.esc-rennes.fr

www.univ-rennes1.fr

www.univ-rennes2.fr

www.letour.fr

www.vieillescharrues.asso.fr

www.machpro.fr

www.ouestinox.com

www.arval.fr

impacktnuit.com

www.altidot.com

http://conservatree.org/paper/PaperTypes/

www.cric.ac.uk/cric/compprojects/project-10.htm

29

ANNEXURES

I Our questionnaire

1. Gender:

-Female

-Male

2. Age:

-under 20

-21-25

-25-30

->30

3. Nationality:

4. Occupation:

-Student

-Worker

-Other:

5. Do you have a car? (in case of drinking coffee in the car, they need the thermos!!)

-Yes

-No

6. How often do you drink coffee?

-Once a day

-More than once a day

-I don’t drink coffee

-If not…: Why?

- Don’t like it

- Health issues

- Expensive

7. When do you drink coffee? (Put an X)

Never Rarely Often Always

In the

morning/Breakfast

Lunchtime

In the afternoon

Evening /Dinner

In restaurants

After Sports

Visiting friends,

relatives

During

work/studying

When stressed

30

8. Do you think that drinking coffee is a kind of a lifestyle?

-Yes

-No

9. Do you need to drink water (or any other drinks) after coffee?

-Yes

-No

10. Do you have a tumbler?

-Yes

-No

-If no…: Would you buy one?

11. If you don’t have a tumbler, how much would you spend on one?

-5-10 €

-10-20€

-21-25€

- 26-30€

12. Do you think a tumbler with two sides is useful?

-Yes

-No

-If no…: Why not?

13. Do you think that having a tumbler is fashionable?

-Yes

-No

-If no…: Why not?

14. Is it important for you to use eco-friendly products?

-Yes

-No

-If no…: Why not?

15. Do you drink tea?

-Yes

-No

16. Do you prefer hot tea or cold tea?

-Hot

-Cold

17. How often do you drink tea?

-Only in the morning

-After every meal

-In the evening

-Before/after sports

18. Do you prefer tea or coffee?

-Tea

-Coffee

31

19. What other drinks do you consumer a day?

- Water

- Soft drinks

- Energy drinks

- Alcohol

-Other:

20. Do you prefer to drink hot or cold drinks?

-Hot

-Cold

-Depends on the season

II The Work Breakdown Structure

Process nameTime length

(hours)Responsible

Immediate predecessor

A Study opportunity innovation 2h Everybody 一

B Find the idea 3h Everybody A

C PESTEL

Market researches

8h Ludivine B

8h Niki & Szandra BD5 Porter’s

Forces

E SWOT 5h Céline B

F Price

Financial plan

8h Camille C,D,E

G Distribution 10h Céline C,D,E

H Cost 10h Ludivine C,D,E

I Marketing mix 12h Camille F,G,H

J Partnership 9h Camille I

K Production 6h Menglu J

L Communication 8h Szandra K

M Launch 3h Niki K

N Evaluation 7h Zhang L,M

Work Breakdown Structure

A B D

F

G I J

L

M

STA

RT FIN

ISH

E

C

K

H

N