DESIGN MANAGEMENT BUSINESS PROPOSAL
OnePercent “BE THE CHANGE”
TABLE OF CONTENTS
01/ EXECUTIVE SUMMARY
02
02/ ORGANIZATION BACKGROUND Nature of Business Company Name Vision Statement Mission Statement Value Statement Key Management Team Working Culture Developing Excellent Performances System
04 04 04 04 04 05 05 06
03/ BUSINESS MODEL
08
04/ PRODUCTS & SERVICES Business Concept Products & Services
10 10
05/ MARKET RESEARCH Research Method Market Analysis Strategic Analysis
12 13 19
06/ MARKET STRATEGY Target Market Target Audience Personality Profiles Unique Value Proposition Differentiation (Product) Pricing Location Promotion
34 34 35 35 35 35 35
07/ CUSTOMER MANAGEMENT STRATEGY Relationship Expectations & Experience Service Strategy Customer Relations Management
38 38 38
08/ BRAND STRATEGY Brand Name Brand Logo & Slogan Brand DNA Brand Value & Equity
40 40 42 42
09/ MARKETING POSITIONING Positioning Statement Positioning Factors Positioning of Price & Regular Product Positioning of Quality & Aesthetic
44 44 45 46
10/ MARKETING COMMUNICATION PLAN Mobile Application Print Media Television Publicity Events Social Media IMC Timeline IMC Budget Objective of Timely IMC
48 48 49 49 49 50 53 54
11/ OPERATION PLAN Organizational Chart Human Resource Policies Manufacturer & Logistic Operation Hours Location Standard Operating Procedures Floor Plan
56 61 62 62 62 63 66
12/ CORPORATE SOCIAL RESPONSIBILITIES
68
13/ FINANCIAL BUDGETING Capital Investment Profit & Loss Sales Forecast Break Even ROI
70 71 72 72 72
14/ CONTINGENCY PLAN Introduction Objective Scope Decision on Disruptive Events
74 74 74 74
15/ BUSINESS ROADMAP Milestones Objective Goals
76 77
Report By Eunice . Ashley . Su Ling . Omar
01/ EXECUTIVE SUMMARY
OnePercent PTE LTD EXECUTIVE SUMMARY
Introduction
OnePercent is a environmental friendly lifestyle retail outlet and online store that offers 99% recycled products. We specalise in bags, shoes, home accessories, health & beauty and travel accessories. Our target audience is focused on young working adults aged between 23 to 35. We offer not only aesthetics but high quality yet affordable goods. There is a growing concern for consumers to become more educated and realize that they can make a difference, to both their health and in terms of protecting the environment thus OnePercent cater to these needs by offering certified eco-products that benefits both their well-being and the environment.
Business summary
Our report includes rationalization of operations that will increase working efficiency and implementation of cost effective measures for quicker and higher return of investment. We provide insight of how our core values and branding strategy will create a strong brand awareness into consumers to increase sales turnover. With emphasis of upcoming challenges and strategies to tackle them, we conceive an evaluation and analytical approaches on the feasibility of establishing OnePercent as a successful Singapore house brand.
Sales projection
OnePercent’s capital investment is $1,303,715 which we will be able to break even by the middle of year 2 and start earning a net profit of $377,669 by year 3. We estimated an R.O.I of 17% in year 3 to an exponential growth of 151% by year 6 with net profit of $3,282,660.
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02/
ORGANIZATION BACKGROUND
OnePercent PTE LTD ORGANIZATION BACKGROUND
Nature of Business
One Stop eco-lifestyle retail store
Company Name
OnePercent Pte Ltd
Vision Statement
To be the first Singapore house brand eco-lifestyle retail store that strive to create a greener tomorrow.
Mission Statement • Educate people the importance of recycling • To become a one stop eco-lifestyle retail store by providing recycled products of excellent quality at affordable price range
Value Statement
We are a concoction of passionate people striving to produce high quality products in a eco-friendly way, while satisfying the customers needs and not harming the environment. • Resposibility We strongly believe that all of us play a part to continue a positive impact on the environment • Passion Our unwavering passion to make a difference to our planet earth • Commitment We are dedicated in providing excellent service and eco-products • Innovation We proud to deliver innovative products that are both environmentally friendly and of excellent quality
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OnePercent PTE LTD ORGANIZATION BACKGROUND
Key Management Team
OnePercent management Team is comprised of 4 young and passionate members from various background brought together by our love for back-to-nature products and fair trade practices.
managing director Eunice neo
operation director su ling seah marketing manager ashley wang
finance director mohammed umar
Working Culture
Our company inspires the right values and passions - environmentally friendly, respect, responsibility, honesty and the pursuit of excellence. We want to be in the forefront of “Green� culture; we want to lead, not as follower in the products and services we offer. We strive to be the best. At OnePercent, at the core of our business, we regard employee as our asset while customer is ultimate judge of our performance. Our commitment to the development and well being of our employees is undivided. We create a work environment that they will make them feel at home. Ongoing training and employee career development is built into our day to day operation. We allow our employee the freedom to generate ideas and express their views freely. OnePercent is always focuses on new and innovative solutions for our customer; we listen to their needs and continuously innovate to satisfy their appetite. We are proud that we are the pioneer in this industry be the first in many of the product available in the market. Customer feedback has showed that if we serve our customers in a honesty and respectful manner, our success will prevail. Excellent teamwork and constant communication that is focused on the end objective will keep OnePercent competitive and successful. A fast-moving, fast-growing industry like ours also requires planning and execution for future. We appreciate the dedicated and intensity of effort from our employees in uploading OnePercent value and standards of excellence. 05
OnePercent PTE LTD ORGANIZATION BACKGROUND
Developing Excellent Performances System
a. Orientation Programs All newly hired employees are required to attend an employee orientation for them to understand the Company’s profile, values, beliefs and culture. b. Corporate Meeting Monthly meeting will be held to discuss issues pertaining to sales aspect, customer service, improvement, brainstorming for new idea contribution (if any). This will help to improve employees’ collaboration and innovates our product and services. c. Corporate Team Building We believe a cohesive working environment is essential to build an efficient and dedicated team, hence annual events and activities will be organized. d. Learning & Development It is the Company’s policy to provide employees with the opportunity to enhance their job skills and career path. While the traditional classroom can still be a useful method of delivering learning, we are introducing a variety of approaches of learning to suit all types of learners; they are online learning, blended learning and on the job training. e. Total Rewards The company is introducing a competitive variable incentive plan for all employees as we believed the plan will encourage a high performance culture, which includes recognition of personal performance during the plan year. The intention is to create a more competitive remuneration system for all employees.
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03/ BUSINESS MODEL
OnePercent PTE LTD BUSINESS MODEL
ACTIVITY PERSPECTIVE Key Activity
• Retail • Promotion • Training • Management • Design & Development
Customer Relationships • Social Events • Membership Card • Vouchers
TARGET MARKET
• Age : 23 - 35 • Gender : 60%, Female; 40%, Male • Young working adults • Middle-income level • Passion about eco-living
supplier/partner Supplier
• Hemp Fortex Industries LTD
Event Partner
• SEC (Singapore Environment Council)
DISTRIBUTION CHANNEL • Retail Sales • Social Events • Website • Ads (TV, Magazine, Etc.)
Unique Value Propositions
• One stop retailer • Educate through design • Excellent quality at affordable price
REVENUE STREAMS By Providing
• Retail Products • Online Service • Product Customization (Year 6)
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04/ PRODUCTS & SERVICES
OnePercent PTE LTD PRODUCTS & SERVICES
Business Concept
OnePercent is Singapore’s first eco-lifestyle concept store that offers a wide range of innovative lifestyle products made from 99% recycled materials. We differ ourselves from other lifestyle retail stores by educating people the importance of recycling through our design. By adding Singapore’s context into our products, we will be able to build a unique brand of our own.
Products & SERVICES
OnePercent’s product and services are broadly categorise into three main sectors i.e. lifestyle products, product customization, a ubiquity in the modern marketplace. Our products differ from existing retailers as they incorporated Singapore context. It is imperative to build a platform where we can communicate better with our consumers by promoting green. a. Lifestyle Products In a fast paced city like Singapore, one-stop shopping is definitely the choice of many consumers as this concept is hassle free, allowing them to have time for other activities. OnePercent wishes to be the trusted one-stop lifestyle retailer that caters to this common needs. We sell various popular lifestyle products that mainly consisting of bags, footwear, Health & Beauty product, home accessories and traveler items with wide variety of original products crafted by our designer which house under one roof offering convenient shopping experience. b. Product customization We want to build our company core values into our product through customisation. It is a way to endorse our core value as being innovative. It is available as an additional offer and targeted at affluent customers who are willing to pay for the design fees. Our designer will work closely with the customers in order to translate their idea into the product via a sequence of attribute decisions. It will only commence in year 6 after OnePercent is considerably established. c. Online ordering OnePercent offers efficient online ordering and delivery services through our website. Now a major part of our life depends on how we use computer and internet. Online shopping is one of the spheres which is gradually coming out of the traditional format and giving rise to the online mode. Online shoppers have the option of checking the various aspects of the products they are searching for with ease. The website provides an overview of the products including cost and pictures that make decision making process easier. You can now enjoy shopping at home with comfort.
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05/ MARKET RESEARCH
OnePercent PTE LTD MARKET RESEARCH
Research Method
We do an extensive research covering areas like market trends, operating structure and public appeal which give us conclusions based on credible statistics, interviews and online surveys. a. Primary Research We posted an online survey to a specific age group on Facebook related to the environmental issues and lifestyle preferences. We also surveyed our main competitors by interviewing them on phone and also by posting relevant questions via email. This was done in order to gauge about the preferences, expectations and trends of what our competitors are doing. b. Secondary Research We conducted a detailed research on our competitors on periodic basis. We reviewed their different marketing approach in terms of products, raw materials, design flaws, manufacturing techniques, business ethics and prices. Apart from that, we searched other sources such as Channel NewsAsia online articles, credible statistics provided by the government and extracted the relevant data pertaining to our business for our market analysis. c. Purpose In 2010, about 6.5 million tonnes of waste was generated in Singapore. However the recycling rate in Singapore for 2010 is 58% and has been increasing steadily over the years due to government efforts. More efforts are needed to reduce the amount of paper, plastics and food waste disposed and to increase their recycling rates as half of the waste still end up in the incinerators. With that, we are doing our part by recycling waste and process it back into new and products while promoting awareness of the importance of recycling.
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OnePercent PTE LTD MARKET RESEARCH
Market Analysis
a. Survey Result The objective of this survey is to understand both gender of different income groups in the market. We gather 90 responses for this survey. Below show a pie chart analysis of the survey result.
1. Gender
2. Income group
10% 24%
40%
35% 60% 31%
The result show that only 40% of the males responded to the survey compared to 60% belonging to the female.
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S$1000 and below
S$1001 to S$2500
S$2501 to S$3500
S$3501 and above
Among our respondents, a 35% of them earns between the range of S$2501 and S$3500, while only 10% earn between S$3501 and above, which is out of our target group.
OnePercent PTE LTD MARKET RESEARCH
3. Profession
4. Willing to use recycled products
12% 9%
22% 55% 14%
88%
Managerial
Executive/Admin
Yes
Clerical
Others
No
The respondents are made up of contacts working in various job positions whereby a large percentage categorized under “others�, 55% (eg. designer), followed by Executive/Admin being 22% as second highest. With this findings, we have a ready network of contacts through which we could communicate our business.
This question was asked because it has a direct relation between whether people care about the environmental issues and are they willing to pay for eco-friendly products. Apparently, 88% of the respondents do not mind using products that made from recycled materials.
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OnePercent PTE LTD MARKET RESEARCH
5. Usage of eco-friendly products
6. Awareness of the benefit of eco-friendly products
36% 48% 52% 64%
Yes
Yes
No
No
A large number of our respondents, i.e. 64% of them have used such eco-friendly products before. This supports various findings that the Singapore community is becoming a more eco-friendly conscious society.
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The results show that 52% of respondents are aware of the benefits of eco-products, and 48% are not. In this instance, we believe that we should play an even more important role in educating society through our business.
OnePercent PTE LTD MARKET RESEARCH
7. Products preference ďżź
8. Price range
4% 12%
13%
23%
13% 45% 4% 34%
26%
26%
Bags, accessories & shoes
Home accessories
S$10 and below
S$11 to S$20
Travel shop
Storage
S$21 to S$30
S$31 to S$40
Health & beauty
Based on the survey results, 45% of the respondents are willing to pay for bags, accessories and shoes, 26% for home accessories, and 13% on storage followed by health & beauty and travel products.
S$41 and above
For the expenditure on the survey result, 23% of the responses were willing to spend less than S$10, 26% of the responses were willing to spend between S$11 to S$20 and 34% of the responses willing to spend between S$21 to S$30. However, what we found comforting is the fact that there are still people who realize quality does not come cheap.
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OnePercent PTE LTD MARKET RESEARCH
9. Willingness to spend more on eco-friendly products
10. Media space
24% 27%
34% 4% 66% 45%
Yes
Word of mouth
Online
No
Print media
Othersv
Out of 90 respondents, 59 of them are willing to pay more for the eco-friendly products whereas the remainder is not willing.
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Nowadays, most of the traditional marketing strategies that business has used in the past have been eclipsed by the remarkable technology that we have today. Not surprisingly, online option stood out from the rest, which is 45%.
OnePercent PTE LTD MARKET RESEARCH
11. Time spent shopping for lifestyle products
12.Refer eco-friendly products to friends
4% 12% 28% 14%
96% 46%
Once in a months
Once in a quarter
Yes
Once in half a year
Once in a year
No
It can be inferred from the survey that our target audience visits a retail store once in a quarter of a year which is 46%.
A whooping 96% of the respondents show that they willing to introduce such products to their friends.
b. Conclusion From these findings, we can conclude that in general, most of the people are aware and concerned about the benefits of eco-products and environmental issues than before. Thus, It also becoming more readily available to consumers who are making green living a lifestyle choice. When it comes to matters of money, only 4% of the responders are willing to spend above S$41. As we know eco-products are more expensive than other products which are not made from recycled materials. This concludes that high quality yet affordable products are their main priority. We also realizes that we should be employing widely the use of online presence through the survey, as technology provides several useful tools to reach our target audience. 18
OnePercent PTE LTD MARKET RESEARCH
Strategic ANALYSIS a. P.E.S.T
• National Environment Agency (NEA) • Recycling day • Government supportive on environmental protection
Since OnePercent will be setting up in Singapore, we will focus more on the political views in Singapore. Formed on 1 July 2002, the National Environment Agency (NEA) is the leading public organization responsible for improving and sustaining a clean and green environment in Singapore. The NEA develops and spearheads environmental initiatives and programmes through its partnership with public and private sectors. NEA plays a part in assisting Singapore registered companies to undertake environmental protection and public health related projects that would contribute to the long term environment sustainability of Singapore.
2
010 60%
2
004 48%
NEA not only assists but also plays a part to educate the public on recycling and environment protection. One such event that relates to OnePercent is Recycling Day. It is annual event involving the government, private sector and the community. It aims to raise awareness and support for Singapore’s recycling efforts. NEA hopes to raise the overall recycling rate in Singapore from 48% in 2004 to 60% by 2012. The Inter-Ministerial Committee on Sustainable Development (IMCSD) was set up in January 2008 to formulate a national strategy for Singapore’s sustainable development in the context of emerging domestic and global challenges. From the above analysis, we can see that Singapore political views are on a very positive side towards environmental issues and are supportive to companies engaging in such projects.
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OnePercent PTE LTD MARKET RESEARCH
• Singapore has a stable economic growth • Government entrust NEA with funding to support environmental protection
Singapore economy is strong and among the well managed in the world; the government is able to allocate more financial support for environmental protection given its strong needs and urgency. NEA has channelled funding to private companies to support and encourage greening and recycling projects. There is four such funding that is of relation to OnePercent and they are as follows: _ 3P Partnership Funds _ 3R Fund _ Innovation for Environmental Sustainability (IES) _ Environment Technology Research Program (ETRP) Such funding will enable many new companies to sustain operation costs in dealing environmental protection issues that may be a financial burden to companies. Thus from the above analysis, we are able to conclude that there is a financial stability for environmental industries in Singapore.
• Promoting a clean and green Singapore campaign • Education on environmental • Awards to companies for encouragement
A campaign was started in the 90’s to raise the environmental awareness in Singapore, “Clean & Green Week”, and it was recently renamed as “Clean & Green Singapore (CGS)” and has been transform into a long year iconic campaign. Many environmental events and initiatives are held throughout the year. CGS works are based on 3 factors, Clean Environment, Energy Efficiency & Resource Conservation and City of Gardens & Waters. It has garnered much support from various companies to fund the campaign. Other than campaigns been held, educating the young is also one of the steps to achieving a greener environment. Singapore Environment Council (SEC) has started a program in schools to educate the younger generation on the importance of environmental protection. School Green Audit Awards are given out to schools. Schools who are able to satisfy at least 50% of the Green Audit Manual will qualify for the Award. Schools also participate by expanding their curriculum and activities to educate students about sustainable development. 20
OnePercent PTE LTD MARKET RESEARCH
Awards are also given to companies who have achieved or play a part in environmental protection. This is to encourage more companies to follow in their footsteps and create a greener society. Below are some of the awards available. _ President’s Award for the Environment _ Eco-Friend Award _ Watermark Award OnePercent believes that with the support from the above factors, environmental protection will be an on-going and supportive process.
• Environmental Technology and Industry Development Office (ETIDO) • IES fund • Environmental Technology Research Program
To successfully manage and improve new environmentally friendly ideas and innovative technology is necessary. The Environmental Technology and Industry Development Office (ETIDO) are set up in July 2008 to focus on research and development programs in the environmental sector. It seeks to strengthen the nexus between local and global research institutions, industry-led research and national environmental priorities. ETIDO works hand in hand with different research partners to improve current technology on environment protection. The IES fund is a $20 million seed funding that targets projects at the applied research and demonstration stages of technology developments. This grant is open to all Singapore-registered companies. The maximum funding quantum for each project shall be $2 million and the duration is for a maximum of 3 years. Waste generation in Singapore is expected to increase in the near future; NEA has come up with a proposal to invite research projects from private companies to submit their innovations. The Environment Technology Research Programme is established to assist such projects. We can see that there are research and development been planned for the environment industries thus acknowledging and supporting OnePercent aims and goals. 21
OnePercent PTE LTD MARKET RESEARCH
b. Industry
Threat of New Entrants High • Low entry barrier • Government policies • Fund from government • Retail concept easy to replicate Low • High entry cost • Government strict on product quality There are low entry barriers for companies aspiring to come into the market because Singapore is one of the countries that is famous for its business friendliness and pro-business climate. Singapore government is positive towards new retail stores opening. At the same time, the government is promoting an environmentally friendly lifestyle by providing funds for such entrants. More of such retail stores for eco-friendly products will be available in the future. However, there is another barrier to enter, which is high entry costs. Because eco-lifestyle retail store is still a new trend in the market, thus it is difficult to find a local manufacturer. It will cost more to import the products. As Singapore government is strict on controlling the quality of the product, new entrants might find it difficult to qualify for the government fund. 22
OnePercent PTE LTD MARKET RESEARCH
Bargaining Power of Suppliers High • Hemp is our only manufacturer • Difficult to find a local suppliers Low • Many manufacturers from overseas • Relatively low switching costs for suppliers due to rising trend of eco The only threat is because we have only a single supplier, therefore we must maintain a good relationship with our supplier to ensure constant and quality supplies at the best price. However, eco-friendly trend is now very popular around the world and there is a lot of substitutes and competition in oversea industries. Our next company strategy is to negotiate with more suppliers to ensure a constant delivery of products and a better price thus keeping the switching costs low.
Bargaining Power of Customers High • Switching costs is high, consumers can find substitutes easily Low • Consumers demand is high • There are many dominant buyers and few sellers in the industry • Retail store can account for a large portion a variety of products In a situation where switching costs are high because of many substitute products that are readily available, customers can easily find products which are cheaper elsewhere. However, nowadays the demand of consumers for environmentally-friendly products is high and rising. A survey conducted by TUV SUD Asia Pacific in February 2011 showed that 84% of consumers are prepared to pay for green products. Unfortunately, only 43% of businesses produce or trade green products are in Singapore. Therefore, our proposed business of the products in this market will be a large scale. As our retail store can provide lot of variety products, we can expect a large consumer base.
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OnePercent PTE LTD MARKET RESEARCH
Threat of Substitutes High • Many existing lifestyle retailers • Product cost is high because of few manufacturers available locally, products need to be imported In the retail industry, there are many existing lifestyle retailers and substitutes products available. Even it is a trend for eco products, they are largely still perceived as niche markets, unconvinced of the products quality, awareness is still low and innovation capacity is very fragmented and under-maintained. Besides that, cost for manufacturing is high because of few manufacturers locally that products need to be imported and it will affect the cost of products. Therefore, consumer preference will turn toward lower budget which is non eco-products.
Bargaining Power of Competitor High • Same location with competitor Low • Indirect competitors with relatively high level of differentiation (eg. Tangs, focus on brand followers, expensive) • Emphasis on design and quality, which also differentiates our products apart from the rest of the competitors • Excellent quality at affordable price range
There are already a few retail stores in the market which are providing lifestyle products. Location is a main threat, because big lifestyle shopping mall such as Tangs and Muji are already located at the same area. However when compared with our competitor only Muji offers a handful eco-friendly products, whereas our indirect competitor Tangs is focus mainly on branded product which are more expensive. OnePercent strategy is emphasizing more on excellent quality and aesthetic with an affordable price in comparison to other competitors. 24
OnePercent PTE LTD MARKET RESEARCH
9
4% interested in green issue
c. Market i. Market Size and Demand The market size of lifestyle stores in Singapore is large, right from fancy showrooms to full fledge lifestyle mall like Tangs; the awareness for eco, recycled and “green” products is also on the rise. The study, named the TUV SUD Green Gauge 2010, is the first to investigate, compare & contrast consumer and corporate attitudes to Green products, services, policies and certifications in Asia. It revealed that 94% of consumers in Singapore are interested in Green issues, 72% are willing to pay a premium (11 percent on average) for Green certified items, and 62% claim to purchase Green products and services. Eco products may not be a household phrase yet but many designers are experimenting with natural materials and sustainable manufacturing methods.
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2% willing to pay a premium for Green certified iteams
ii. Projected Market Share Statistics from Singapore shows “green” idea is fast being adopted in Asia. More than just a sustainability trend, it’s a multi-billion dollar market and companies are starting to get serious about it. In conjunction with this massive potential, Singapore market shares are predicted to shoot up radically. A totally eco-friendly store may cost 20% more to set up, but the returns on the investment would make up for these added costs. The growth rate in Singapore is estimated to be in the region of 15% and 30%. The consumption of Renewable Energy is a massive 2.9 trillion in the last five years. The number of eco-friendly products sold in Singapore’s Cold Storage chain of 42 supermarkets has risen from 10 to more than 100 and sales have posted double digit growth year-on-year. OnePercent projected a 20% growth rate in the next five years by 2017.
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2% purchase green products and services
iii. Market growth trends The current Market Trends in Singapore for recycle and Eco products is on a constant rise as the Singaporeans are getting more aware of the environment and to make the world green and a better place to live in. The annual global consumer trend report released by market analysis group called Trendwatching in December predicts that throughout 2012 big brands will step up their recycling efforts, transforming discarded products into something useful and prompting consumers to recycle. Trendwatching dubbed this growing tendency for brands to recycle and lead recycling schemes as ‘Eco-cycology’ and identified it as one of 12 major consumer trends for 2012. The growing economy, rising awareness and new ‘green’ technologies are helping to intensify the eco-friendly and sustainability focus in Singapore and across the region.
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OnePercent PTE LTD MARKET RESEARCH
The rising tide of public awareness of green practices and deepening worry over global warming is fueling the movement. Singapore businesses will experience greater shareholder values for their companies if they adopt green practices. If a company has the right green governance, their products and services will attract better pricing power. The research suggests that concerns about climate change are fueling the rising demand for Green products, recycling methods and services in Singapore. On a global scale, nearly half (48 percent) believe climate change is the worldʼs most crucial environmental issue. iv. Consumer Preference Trends A global green revolution is gaining momentum and changing how people consume and how businesses operate. This generation of business leaders and companies will face new challenges in recycling methods and building a eco lifestyle but the green revolution also presents exciting business opportunities.
facilities for post-consumer raw materials. The equipment required is costly and very industry specific. It would not easily be re-sold as a system. If we have to collect a huge amount of materials for processing, we will also require more land area and consequently pay more rental fees. Also, having to process more materials means the need for additional manpower. Both will increase operating costs significantly. Given Singapore’s small local market and multitude of recycling companies, the competition could be intense within the industry. To overcome these challenges we might have to look into overseas expansion.
The two new green consumption trends in Singapore and globally are LOHAS and Collaborative Consumption. LOHAS stands for ‘Lifestyles Of Health And Sustainability’ and is a marketing term that originated in 2000 in the United States to describe a group of consumers who are environmentally, socially and health conscious, and believes in a lifestyle that benefits both people and planet. The LOHAS concept has quickly spread to Japan, and then to Taiwan, South Korea and now in Singapore. We believe that LOHAS is an important trend because it goes beyond “green” consumers and looks at the converging market of consumers who are interested in the environment, recycling methods, health and fitness, personal development, and sustainable living. In 2009, a Singapore-based social enterprise, Asia - Pacific LOHAS, was set up to promote LOHAS in Singapore and the region. Asia-Pacific LOHAS aims to educate millions of consumers in Asia that consumption can be done in a better way and to help facilitate the growth of its business community to serve these consumers. We seek to ride this wave of environmental awareness to create a dynamic change in Singapore. v. Barriers To Entry Scarcity of recycling plants in Singapore requires us to outsource the production of raw materials to recycled products in foreign countries like Indonesia which in turn increases our overall production costs. Equipment costs are high and industry specific, resulting in a high exit cost. Recycling company brands may be forced to establish cleaning and refining 26
OnePercent PTE LTD MARKET RESEARCH
d. Competitors There are a few competitors in Singapore but only two have the similar aspects of our business : lifestyle eco-products, which are Muji and CHOOSE, our primary competitors. i. Primary Competitors
Price Range (Based on Bags, Shoes &Home Accessories)
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OnePercent PTE LTD MARKET RESEARCH
ii. Secondary Competitors BGO Ecoshop It is an online store which was founded in 2009. BGO Ecoshop mainly focuses on selling organic cotton tees and toys and also provides customization service on t-shirt for organizations in Singapore which wish to go green with corporate. Greenviron Eco Greenviron Eco is a company that provides consumer and commercial green eco solution for a sustainable future targeted at public, private, industrial and educational sectors. They provide a range of products and services that comprise five key aspects; green lifestyle, renewable and recyclable, energy savings, educational kits and natural and organic. Simply Living Lifeshop Simply Living Lifeshop is a eco ethical store designed for the conscientious consumer, they sell eco-lifestyle products handmade by artisans in various region of the developing world. Their products range from recycled bags and natural yoga mats, to green household products and eco accents for the home. Tangs Singapore’s leading fashion lifestyle retailer since 1932 which is located at orchard and vivo city. However, they only have a small range of eco-products and focused mainly on providing the best in fashion lifestyle. iii. Conclusion In the conclusion, we notice that only Muji is the likely to become our strong competitor as they are a veteran in the field of retail industry. Prominent threat of Muji is due to their clever no-brand strategies which attract customers who prefer unbranded, quality products and its aesthetic looks. Although Muji is known for cheap and uncompromising quality in Japan, it is sold at a much higher price in Singapore which is contrary to Muji’s corporate mission of “Lower Priced For Reason”.
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OnePercent PTE LTD MARKET RESEARCH
e. S.W.O.T
Strengths • High quality at affordable price • Distinctive on being eco-lifestyle retailer by the • Interior outlook and products • One stop eco-lifestyle retail store • Favourable Location • Passionate and committed management team • Product customization
The main strengths of OnePercent lie in attracting consumers with their high quality yet affordable environmental friendly products. Our products are certified with the Singapore green label by the Singapore Environment Council (SEC). Singapore Green Label is a great asset and marketing tool for products. OnePercent goes through stringent tests on their quality of their green products by the Singapore Accreditation Council (SAUS). OnePercent is distinctive on being a one-stop ecolifestyle retailer by the interior outlook and products. Being an eco-store, we are an excellent showcase of environmentally conscious practices. A few of our practices include installing energy efficient lightings, carpets made of recycled material and use recycled cardboard boxes to shelf our products. Orchard Road, the shoppers' haven in Singapore where OnePercent is located, is easily accessible via CTE, public transport or the Orchard MRT station. Our company is proud to have a team of dedicated and passionate personnel that always put customers first. We demonstrate our commitment to employees as well by promoting and rewarding them based on 29
performance and by creating a work environment that reflects our values. Another possible strength of OnePercent is our product customization which is available in the Year 4. We encourage consumers to be creative to personalize and craft out their own green product or an existing product and send it to our designers via email. This means consumers get to build their own product from scratch from the choice of material, colour, finishing, down to the very fine details of adding their own monograms or initials.
OnePercent PTE LTD MARKET RESEARCH
Weaknesses
Opportunities
• Price war with other competitors • New in the eco-lifestyle industry • Distribution network • High start up cost
• Strong consumer demand for eco products • Increasing eco-friendly market • Strong government support • Quality affluent consumers • Collaboration with designers
OnePercent is located near MUJI at Orchard where we will be competing against each other. As OnePercent is relatively new to the industry, we are new and lacking in distribution network as compared to the veterans in the field like MUJI. A well established relationship between the number of distribution points, transportation costs and customer service targets helps to develop a low-cost, high service distribution network is what OnePercent strives to achieve.
Escalating consumer demand for Green products and services in Singapore, driven by concerns about climate change gives OnePercent a significant edge over other non-eco-lifestyle retailers. Recent studies show that consumers are more aware of Green certifications and have a greater understanding of their importance. The government also provides supports by initiating several funding and incentive schemes related to energy efficiency, clean energy, green buildings, water and environmental technologies, green transport, waste minimization, environmental management system, environmental initiatives, clean development mechanism, and green IT. Singapore consumers are quality, health and safety conscious and the buying decision will be influenced by this. This augurs well for OnePercent as they are the company strength.
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Strengths
Opportunities
Threats
Weaknesses
OnePercent PTE LTD MARKET RESEARCH
Threats • Products are under contract-manufacturer • Lack of raw materials in Singapore • Existing established eco retailer • Eco campaigns by company are costly and might not return favorable results
There are too little raw materials in Singapore to support environmentally friendly products and too few environmentally friendly Singapore-based manufacturers to support OnePercent's demand of goods. High costs of logistic services make OnePercent's products more expensive and reduce profits significantly. The threat of existing established eco retailer like MUJI resides near OnePercent outlet in Orchard will definitely spark price wars. Another prominent threat is the contract manufacturer with OnePercent that will give quotations of prices to complete products will eventually jack up the final product pricing. Eco campaigns designed to promote our company values and awareness to the environment might not return favorable results. As such, the company may even suffer losses.
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06/ MARKET STRATEGY
OnePercent PTE LTD MARKET STRATEGY
Target Market
a. Demographic (Market) Gender : 60% Female, 40% Male Age : 23 - 35 Occupation : Young working adults Income : Middle-income level $S2000 - 3000 Education : University Marital Status : Any Personality : Passionate about eco-living, creative, stand out from the crowd, outgoing Lifestyle : Healthy b. Psychographics (Behaviors) Our target customers are young adults who like to enjoy the natural environment with an eco-conscious mindset. In addition, they are also trend followers, like to buy and collect creative stuff and want to be difference, to show their personality or character.
Target Audience Personality Profiles (TAPP) Sze Tien is a 30-year-old male; his income is $30,000 per annum. He works as designer. His interest is going to gym to keep fit and stay healthy. He likes to have clean air, as it is important for his exercise. He likes nature, willing to do a part to protect the environment and love greeneries. Our theme color is green, which stands for eco-friendliness will attract Sze Tien’s attention. Our business sells eco products; therefore our product range will be suitable for Sze Tien’s needs. Through our survey, he shows great interest in our products.
Adeline is a 25-year-old female; her income is $30,000 per annum. She works as a IT support engineer. Her interest is recreation and sports related activities. She also concern about pollution in the vicinity. She has a liking for bags and accessories that we have in our product range and is willing to buy so long as she likes the item, regardless of the brand. We are sure there is definitely something to suit her liking in our wide range of bags and accessories. With our product guarantee quality and reliability, we are able to meet Adeline’s criteria when buying an item. Lastly our product are made from recycled items, in turn protecting the environment and reducing pollution which will attract Adeline from patronizing our store. 34
OnePercent PTE LTD MARKET STRATEGY
Unique Value Proposition
OnePercent delivers attractive design products. Design essentially act as the bridge between a product and the user’s emotion. This will indirectly communicate and possibly educate our consumer on the environmental issue. Environmental phrases that are written clearly on the packaging and label itself will become a constant reminder to consumers. How product packaging looks and feels matters just as much as the product itself , that is why when the packaging looks as good as the product , it will attract the consumers to take a second look at what we want to convey the message to them.
Differentiation (Product)
OnePercent aimed at young working adults. They benefit by getting excellence products at affordable price range. The differentiation between OnePercent and our competitors is our products are made from 99% recycled materials. In the future, we also offer product customization, this to make us unique among our competitors.
Pricing
Our price of the items will suit the criteria our company is targeting. Moreover, loyalty program, membership deals and promotions along with other benefits will give our customers the best deal in the market.
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Location
The ideal location for our business would be in Somerset as it is the center in Orchard Road. The age group of those gathered here fall into the criteria our company is targeting, The area is also easily accessible with public transport which will pull the crowd that may consist of potential buyers.
Promotion
We will hold publicity events to allow society to have a clearer picture on what our business is all about. Besides events, we have promotions and special items during various seasons. Print media and online marketing will also be done to build awareness to the public.
OnePercent PTE LTD MARKET STRATEGY
02
07/
CUSTOMER MANAGEMENT STRATEGY
OnePercent PTE LTD CUSTOMER MANAGEMENT STRATEGY
Targeting and retaining in-store customers have never been an easy task for retailers. That is why our company will focus more on front-line services. Store attendants are our front-line and they represent the company’s image. Hence they need to be adequately equipped with the right set of communication skills and product knowledge. Firstly, Store attendants need to project a professional yet friendly attitude towards the customers. They must serve customers with a smile and always offer to provide assistance to them; this will enhance communication between customers and staff, allowing more feedbacks from customers. This will allow us to improve our service and meet customers’ expectations further. Secondly, Store attendants need to be knowledgeable about the products they are promoting. Providing accurate information and explaining details on the products will show the customers that we are welltrained to give proper advice and opinions. They also have to be well aware of the status of the stock. All these will prove that we are reliable and sincere.
Relationship Expectations & Experience
The emphasis on good customer relationship is of utmost importance to our company image. Proper training and etiquette are practiced and shown during our sales interaction. With this, customers will enjoy a wonderful experience in our store and hopefully through word of mouth, customer traffic and sale volumes will increase. Attention needs to be given to customers the moment they enter; first impression always makes the strongest impact. Products are to be displayed at eye level and be clearly labeled with relevant information. All products are properly arranged to attract customers’ attention and to induce them to browse through our products. Product brief and price information are clearly shown. Product will go through quality checks to ensure they are of a certain standard, this will allow customers to build trust in our products. Once trust is build up, they will gladly introduce their friends and family to patronize our store. Lastly, the whole experience starts from the moment the customers step into the store till they leave. It is important to be consistent in our customer service and attitudes. It is not an easy task to build up trust and confidence in customers, and there are no shortcuts. Leaving a good impression also means we will gain loyalty and perhaps draw regular customers.
Service Strategy
Exchange Policy a. Defective Items/ Incorrect delivery Any defective item or incorrect delivery must be reported within 3 days upon the hand out of the receipt. It will take roughly 5 business days after the report for the exchange to be processed and redelivered. There will be no refund of cash or change of original purchase on defective items. b. Exchange Items Customer can brings the items and the original receipt to the retail outlet store for exchange. Items for exchange must be in re-sellable condition. The exchange of items will take 3 working days to be completed. There will be no refund of cash for all items. c. Customized/Personalized Items Customized items will not be available for exchange, unless the item is defective. For defective items, please refer to the defective items policy.
Customer Relations Management (CRM)
a. Loyalty Program Customers who have already joined our membership are entitled to a loyalty program. In this loyalty program, they will be able to accumulate “green points” which can be used to redeem certain free gifts, discounts or vouchers. Green points are accumulated for every $10 spent, and the points are doubled if more than $100 is spent on a single receipt. Customers are to present their membership card at the cashier in order to redeem their “Green Points”. b. Voucher Customers will be able to purchase vouchers directly from the retail store as gifts for friends and loved ones. Vouchers are given to members on their birthday month. c. Social Events Throughout the business year, promotional events and roadshows are held to promote our company further. d. CRM Technology Customers are also updated through many new forms of media, like Facebook and Twitter. Our company has Facebook and Twitter accounts, which are used to introduce new promotions and also to allow customers to present their feedbacks and experience with us. Through these media channels, mini games and lucky draws are held to allow customers to win prizes.
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08/ BRAND STRATEGY
OnePercent PTE LTD BRAND STRATEGY
Brand Name
OnePercent OnePercent represents our goal to make our products which are 99% recycled into 100% with the help of our consumers who signifies the last one percent. This is to educate consumers on the environment as well as move a step closer into our products being 100% recycled.
Brand Logo & Slogan
a. Logo The logo is made up of a circle and a slash fused together. The circle represent “O”ne, and the slash represents percentage. In addition, the division of the slash also represent OnePercent and the consumers. When these two combine together, it conveys a strong and interactive relationship towards perfection which is 100%. Just like our products, we want our logo to become modern yet timeless, that is why the colours, black and white have been selected as the logo colour. This colour scheme stems from our belief in having a low impact on the environment as it consumes less resources, and enhances the recyclability. Only sansserif has been selected, this is to reflect our design towards contemporary. b. Slogan “Be The Change” The slogan for OnePercent is “Be the change”. It means that consumers can play a part in helping our environment by implementing forms of recycling and ecology. The most basic way for consumers to help out is by purchasing our products. The secondary way could be by volunteering in our publicity events for the environment. OnePercent is encouraging people to be a part of the “Change” and hence “Be The Change”.
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be a part of the “Change”
OnePercent PTE LTD BRAND STRATEGY
Brand DNA
a. Brand essence Being a one stop eco-lifestyle retail store, we help our customers minimize their shopping time and hassle by featuring a wide range of environment friendly and creative products for their daily needs. b. Brand personality We want to project ourselves as a future leading contemporary eco-lifestyle retailer while maintaining our brand consistency of being innovative and stylish. c. Brand value Reliability and quality are two words we strongly associated with. Customer can count on us to deliver the best quality products because we value every customer. d. Brand experience The aesthetic execution of our products is being carefully detailed, innovates and most importantly practical, is a way we communicate and evoke our brand promise to our consumers. e. Brand attribute We aim to bring greater convenience to the consumers who are keen on making a personal contribution to recycling efforts when purchasing our products. As such, it is our responsibility to provide safe products to gain trust in our customers and encourage them to do practices green in their daily life. f. Brand benefits We bring to you a more substantial, healthy lifestyle through our safe and eco friendly products. g. Brand promise Excellence quality coupled with affordable price is OnePercent’s promise to every customer. We provide innovative, environmentally responsible solutions that help customers use more and waste less throughout the entire lifespan of our products. h. Brand Audience OnePercent target market is aged between 23 and 35 years.
Brand Value and Equity
OnePercent’s strong pledge of innovative, quality, affordable and safe products is very much reflected in our product and package performance. We will have our corporate colour and material that can be present to the market through the consistent use in our marketing events; by doing so, we create a brand distinction of OnePercent and a strong differentiation from other brands. By creating a set of distinctive design rules, it allows customers to recognize and remember our brand easily. 42
09/ MARKETING POSITIONING
OnePercent PTE LTD MARKETING POSITIONING
Positioning Statement
To young working adults who are health conscious about getting products that are safe and free of harmful chemicals, OnePercent is a one stop ecolifestyle retail store that offers you stylish, excellent quality products without having to cost much, besides being eco-friendly certified.
Positioning Factors
In the following chart, OnePercent identifies 4 main areas that we would like to focus on and compare against our competitors. The 4 main factors that we took into consideration are: price, regular product (recycled or non-recycled), quality and aesthetic.
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OnePercent PTE LTD MARKETING POSITIONING
Positioning of Price and Regular Product
High Price OnePercent “BE THE CHANGE”
Recycled product
Low Price
Non-recycled product
The above map shows our future positioning of our company in the eco-retail industry. Comparing other companies to OnePercent, we strive to provide full range of eco products that are made from 99% recycled materials at an affordable price as compared to Muji's high prices while Tangs’s products contains only a meager percentage of eco product and costly. As there is a small portion of businesses in the same field like us in Singapore, our prices are affordable for our target audience so we do not need to lower the prices of products any further, since we also offer loyalty programs and promotional items.
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OnePercent PTE LTD MARKETING POSITIONING
Positioning of Quality and Aesthetic
High Quality
OnePercent “BE THE CHANGE�
Aesthetic
Low Quality
Unaesthetic
In the perceptual map shown above, Muji and Tangs (indirect competitor) are positioned at the higher end of the market in the retail industry, which are providing high quality and aesthetic lifestyle products. Therefore, we plan to position our products and service higher than those competitors by providing excellent quality and innovative designs yet affordable at the same time to attract our target audience.
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10/
MARKETING COMMUNICATION PLAN
OnePercent PTE LTD MARKETING COMMUNICATION PLAN
Spreading awareness of a particular brand or advertising could be quite tricky in Singapore as there is a good mix of such diverse people. Marketing Communication Plan is the key for businesses to make brand awareness a success and move forward in the future. Its primary agenda is to get in touch with the people, be it your target audience or just the general public. The basic aim of Market communication plan is to educate the target audience of our company and its existence by giving out information regarding future offers like discount sales, events and promotional offers.
Mobile Application
Mobile phones were initially introduced as a means of basic communication in last decade but it is a completely different scenario now. Coupled with state-of-the-art technology, hand phones have transformed into mini computers since the advent of smartphones is at all time high demand. Nowadays e-mails, surfing the internet and game applications are easily accessible through the smartphone. This opens a whole new area and opportunities to seek and communicate to a wider range of people for effective marketing communication. In OnePercent, we can keep our customers well updated with the trends and discount offers we will offer them with the help of the mobile application.
Print Media
The most classic form of media presentation is Print Media. It can be traced back to the days when dramas were performed in various ancient cultures. This was the first time when a form of media was "broadcast" to a wider audience. The first dated printed book known is the "Diamond Sutra", printed in China in 868 AD! Print media might be really old but it is a very traditional and important form of communication towards the consumers. In Singapore, 92% of the people subscribe and buy print media for various factors which could be news or just commercial gossip. OnePercent is able to tap into the very core of our target audience with the help of print media to create an effective impact towards our store. 48
OnePercent PTE LTD MARKETING COMMUNICATION PLAN
Television
Marketing communication through the domestic television is one of the most effective and primary forms of communication. OnePercent will channel our customers through commercial advertisements using famous celebrities who will stir up excitement among the audience. This would in turn attract them to buy our products or even burn a lasting image of our brand. Our advertisements are graphical and will educate our customers about our products and various offers. It will agitate the emotions of our consumers to give a better understanding of what OnePercent is all about.
Publicity Events
Publicity events are a great form of marketing communication and attention grabbers as they are attractive, colorful, direct, noisy and interactive. Publicity events have great potential to engage the audience in a mental and physical way in the forms of games, contests and promotional offers. There are multiple ways to do it. Some examples are fund raisings, celebrity performances and entertainment shows. Publicity events can be held in major commercial places like Orchard road, shopping malls and parks.
Social Media
Internet is a great tool that can be used in several ways. What makes the internet so prominent is the fact that it is greatly diverse, flexible and very easily accessible through the use of smart phones anywhere and anytime. Internet has quickly become a hot trend and been conceived as a form of social media. Social media has gained much popularity and momentum since the birth of social networking websites such as Orkut, Facebook, Twitter and Myspace. OnePercent will establish an official page in these various social networking websites to update the consumers of our current promotional offers and hold special online contests only exclusively for users who participate. Facebook is designated to be OnePercent main form of social media. With the help of Facebook, our customers will know more about OnePercent and will be easily linked with our official website and other important updates.
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OnePercent PTE LTD MARKETING COMMUNICATION PLAN
IMC Timeline
Ongoing IMC plan Our official website together with Facebook fan page and Twitter will be launched concurrently, which are interlinked to each other in order to provide the latest updates about our company. Our website serves as a platform to inform consumers about new products launch, promotional items or perhaps to learn more about our company. Contact information and a convenient map on all our outlets are provided in the webpage whereby users can locate us or in case they have any enquiries. Traditional channels of advertising such as print and television ads are beginning to give way to interactive media such as social networks which are easily accessible anytime with the current technology. Using Facebook and Twitter is an easy way to communicate to our consumers on what we want them to know. We will run online campaigns on Facebook and Twitter. Besides being cost effective, these campaigns are helpful in brand-building.
Year 1 Upon the opening ceremony of OnePercent, coordination of multiple advertising campaigns will be initiated from January till February in an attempt to create as much brand awareness as possible. We will launch ambient and opening events to promote our company on January. We will continue our poster campaigns, newspaper and magazine publicity that will promote and notify consumers about our company grand opening and event venues from January till February. Later in Dec, we will launch our first social event to educate consumers on environment awareness through competitions and sales promotion. In year 2, the events will be held twice a year in June and December.
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OnePercent PTE LTD MARKETING COMMUNICATION PLAN
Year 2 & 3 According to statistics by The ITU (2011), there are 1.2 billion active mobile-broadband subscriptions in the world. Singapore is set at 44% on the top 10 countries in 3G mobile handsets penetration which concludes that mobile application is an effective way to get more target audience. Our Mobile Application, a free downloadable utility, is available to those who wish to keep an update about our special offers and upcoming events. Users will have the option of two dominating mobile platforms, Google始s Android and Apple始s iOS. Next, we also have plan to launch our TV Commercials campaign in the year 2 to create more brand awareness on the market. There will be two broadcasts on June and December respectively where there will be Singapore sales on both months. These commercial video will also be uploaded on our facebook fan page and website.
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OnePercent PTE LTD MARKETING COMMUNICATION PLAN
Year 4 & 5 Electronic Direct Mailer will commence on year 4 onwards to potential customers. Direct mailer will only be sent to loyal customers selected from our database accumulated over the past 3 years. This is to maintain and improve customer relations by offering them incentives like redemption and discount coupons credited only under their membership account to make them feel privileged special.
Year 6 & Onward
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OnePercent PTE LTD MARKETING COMMUNICATION PLAN
IMC Budget
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OnePercent PTE LTD MARKETING COMMUNICATION PLAN
Objective of Timely IMC
The nature of our industry is ever aggressive, full of stiff competition with competitors always innovate means in their marketing strategies to get through customers. OnePercent believes that retail is detail. We focus on trying to identify our consumer basic needs, in other words, evolving with them and bringing to them a whole new brand experience through every detail of our product. We plan to leverage the various channels of marketing communications such as sales promotion, Mobile & Internet, direct marketing and publicity events into coordination to create a single distinct message of our brand. To deliver to consumer value through a multichannel collaboration will likely be an essential driver of sales and profit growth.
Y
EAR 1
Y
EAR 2
Y
EAR 3
Y
EAR 4
Y
EAR 5
Y
EAR 6
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11/ OPERATION PLAN
OnePercent PTE LTD OPERATION PLAN
Organizational Chart Year 1 - 3
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OnePercent PTE LTD OPERATION PLAN
Operational Roles
Managing Director • Responsible for establishing and implementing a business plan. • Leads the company and develop the corporate culture for the organization. • Develop strategy and direction for the company. • Innovate newer dimension in his working methods to inspire innovations between employees. Designer • To improve the way the existing products works and looks or produce them at a lower cost. • Research on materials processes and market requirements. • To be highly involve in the designing of new products. • To travel to production facilities in evaluate quality control. Marketing Manager • Primary task to manage the marketing resources of a product or business. • To develop, establish and maintain marketing strategies, advertising and promotional activities to meet the business objectives. • Conduct market research to determine market requirement for existing and future products. • Analysis of customer research, current market and competitor information. • Determine and manage marketing budget and develop pricing strategy. • Be the liaison for media and advertising. • Negotiate contacts with vendors and distributors to manage products distribution, establishing distribution networks and developing distribution strategies. • Manage the efficiency of the marketing plans and projects in the company. Sales Manager • Responsible for the development and performance of all sales activities in assigned market. • Develop a business plan and sales strategy for the market that ensures the company sales goals and profitability. • Provide timely, accurate, competitive pricing on all current products and business. • Plan, organize direct and control sales staff to meet sales objectives, also to help sales staff to maximize their potential. • Handle complaints from customers and sales agents related to the sales department. • Plan and achieve forecasted sales projection. • Provide timely feedback to managing director and team with regards to sales performance. Operation Director • Takes direction from managing director in ensuring that the business policy and imperatives are being accomplished by the staff. 57
• To coordinate with the various department head to ensure that all goals are being met. • Plan daily operation from the beginning and implementing them after approval from the managing director. • Should know and understand the workings of each individual departments. • Solve dispute that arise between employees and departments so as to make sure daily work is not hampered. • Collect all reports from all departments to compile and submit to the managing director. • Provide financial, marketing and human resource advice and guidance to the finance and marketing departments. • Provide leadership by delegating task, responding to staff enquiries and providing overall direction to employees. Finance Director • To direct and oversee all of the financial activities including the preparation of current financial reports and forecasts for future business growth. • To implement and efficient system of accounting to manage payroll and expenses. • Research, prepare and submit annual budget report to the managing director. • Conduct financial analysis and prepare detailed annual financial report. • Ensure compliance with financial legalization, policies, and procedures and adhere to the terms of block funding and contribution agreements. • Develop and implement purchasing practices and monitor the purchasing system. • Establish and maintain cash controls, investments and reserves of the company. • Manage payroll system to ensure all staff are paid on a timely and accurate basis. • Review reports and analyze projections of sales and income. Event Planner • Plans, coordinate and executes events, roadshows, product launches and press conference. • Requires to conduct site survey, budget drafting, event design and theme and liaising with vendors for the events. • To oversee and to be the focal point for all events. • To communicate and plan with accordance to the marketing and sales department. Administrative Clerk • To provide secretarial and administrative support for the business. Reports back to the finance director. • Provide support to various departments including office supplies, equipment, inventory and other administrative assistance.
OnePercent PTE LTD OPERATION PLAN
• Assists in stationary requisition, including printing of name cards, forms, letterheads etc. • Perform any other duties as assigned. Store Attendant • To manage day to day activities at the retail store. • Reconciliation of goods receive against purchase orders and do regular stock taking to ensure the store is sufficient for operation. • To meet customers services goals and standards and provide good customer service. • To handle cash transactions, maintain merchandise pricing, signage and coding.
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OnePercent PTE LTD OPERATION PLAN
Year 4 - 6
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OnePercent PTE LTD OPERATION PLAN
Operational Roles
Marketing Executive • Analyze the market including competitors and consumers. • Overseeing and implementing product distribution. • Coordinating with and reporting to managers to carry out campaigns. • Act as liaison between media advertising. • Reports back to marketing manager. Sales Executive • To provide accurate and timely business sales reports. • To assists sales manager on supervising with the sales floor. • Handle complaints from customers, sales agents and vendors. • Perform any task given by or assigned from sales manager. Assistant Designer • Assists main designer improving current products. • Perform task given by assistant designer. Operation Executive • Work closely with operation director to manage the whole business operation and review program structure as and when required. • Handle staff recruitment and staff disciplinary actions when required. • Manage store attendants and monitor their progress. Finance Executive • Provide financial analysis and annual financial reports to finance director. • Assists finance director to manage budget for the business. • Conduct internal audits, involving accounting and administrative control. • Assists finance director on issuing staff salary. Senior Administrative Clerk • Manage administrative clerks on admin issues. • Take down minutes when attending higher management meetings. • Provide admin support to managing director.
Event Sub-crew • To help out with event setups. • To assists event planner in the execution of the events.
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OnePercent PTE LTD OPERATION PLAN
Human Resource Policies
a. Salary Employees will receive their salary on the first day of every month, credited into their bank account. Salary is subject to CPF deductions at the applicable prevailing rates by the government. Employees are required to work 40 hours in a week. If the working day falls under a Public Holiday, employees will be entitled to 1 day leave in lieu. b. Overtime Employees will be given 1.5 times their pay for overtime hours, or off in lieu subjected to head of department’s approval. Overtime hours are counted after the 41st hours of the week. c. Annual Leave Annual leave is computed on the basis of the calendar year, commencing on the 1st January and ending 31st December. All employees are entitled to 12 days annual leave after 1 month of probation. Any unconsumed leave will be brought over to the next working year, capped at a maximum of 4 days. d. Medical Leave Employees will be granted 14 calendar days of medical leave for each year of service, and hospitalization leave of 60 calendar days per year. In whole a total of 74 medical leave is given, this leave cannot be brought forward to the following year. e. Maternity Leave Female employees who have been with the Company for a minimum of 90 calendar days prior to the date of confinement, will be entitled to maternity leave. The employees are entitled to a maximum of 12 weeks of paid maternity leave. If the child is not a Singapore citizen, the employee is only entitled to 12 weeks of maternity leave. f. Compassionate Leave Employees will be granted 2 consecutive days of compassionate leave and are excused from work duties. All employees who suffer from immediate family bereavement will be eligible for 3 days compassionate leave from the date of joining. This will also include employees who are under probation. Immediate family in this case is defined as parents, parents-in-law, spouse, children, siblings, grandparents or grandparents-in-law. g. Workplace Safety All employees should take measures to minimize accidents in workplace as per the laws and regulations under Workplace Safety and Health Council. 61
h. Termination Notice/Retrenchment Notice Based on the table given by Ministry of Manpower, all employees are to adhere to the notice period as stated.
OnePercent PTE LTD OPERATION PLAN
Operation Hours Office : 9am – 6pm Retail : 10am – 10pm
Manufacturer & Logistic
a. Manufacturing Hemp Fortex ltd (china) Pioneer in manufacturing fabrics and apparel in an environmental friendly way Since 1999, 13years Same goal and direction as company b. Logistic FedEx Corporation International Courier & Shipping • Company will send a order form to the manufacturing company on the first Monday of each month. • The manufacturing company is given 2 weeks to prepare the goods order and deliver it to us a week after. • Site visits to the manufacturing company in China is done every 6 months to ensure the quality of the products made. • The logistic company will handle our company's distribution needs within 3 working days upon receiving the purchase order from us.
Location
We chose Somerset as it is the center in Orchard Road. The age group of those gathered here fall into the criteria our company is targeting, The area is also easily accessible with public transport which will pull the crowd that may consist of potential buyers. We will be acquiring a double storey shop lot with first floor being the administrative office where office staff are located while ground floor being the show room. The area specification are shown below : Office area Space : 50m square
ORC
HAR
Retail store Space : 65m square DR
D
313@ Somerset
SOM
ERS
Orchard Central
ET R
D 62
OnePercent PTE LTD OPERATION PLAN
Standard Operating Procedures (S.O.P) a. Manufacturing Ordering Process
b. Online Shipping and Delivery
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OnePercent PTE LTD OPERATION PLAN
c. Membership Registration
d. Events Organization
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OnePercent PTE LTD OPERATION PLAN
e. Customers Feedback
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OnePercent PTE LTD OPERATION PLAN
Floor Plan
First Floor : Retail Store
Second Floor : Office
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12/
CORPORATE SOCIAL RESPONSIBILITIES
OnePercent PTE LTD CORPORATE SOCIAL RESPONSIBILITIES
Corporate Social Responsibility (CSR) is crucial to ensure OnePercent puts forth environment, consumers, employees, communities and stakeholders as a priority in our business practices. It is also an essential component of OnePercent’s core values which are responsibility and commitment and also because of the growing demand by consumers, investors and international organizations that enterprises have to be sensitive to the needs of the communities and environment. CSR is also a correlation between environmental and financial performance for our company.
A case study of IKEA has proven the effectiveness of partnership. In 2000, IKEA joined forces with UNICEF in India to help prevent and eliminate child labour by setting up school enrollment drives, alternative learning centers and woman self-help groups. Women from the self-help groups worked for IKEA to earn income by embroidering cushions to minimize the problem of debt in the country which was a root cause of child labour. With this, IKEA’s actions have built trust within the communities it touches and the project is still ongoing till today.
a. Collaboration and partnership The Singapore Compact functions as a multi-stakeholder platform to aid and link OnePercent with other members of different companies and organizations. We collaborate through coordinated strategies with the members to promote greater environment awareness. OnePercent is also partnered with the Singapore Environment Council, a private and non-profit organization which reaches out to the community a range of holistic programs that promote and educate on environmental responsibility. The importance of partnering with them is to combine and complement each other skills and expertise to achieve our common goal which is promoting environment awareness. 68
13/ FINANCIAL BUDGETING
OnePercent PTE LTD FINANCIAL BUDGETING
Capital Investment Startup Expenditure
S$
Renovation
40,000
Rental
192,000
Equipment
70,795
Admin Expenses
44,650
Opening Inventory
68,970
IMC
145,280
Total Startup Expenditure
561,695
1st Year Operation Cost Salaries
293,712
Shipping
25,000
Utlity expenses
23,800
Others
399,508
Total Operation Expenses
742,020
Capital Investment
1,303,715
7
% Renovation
2
6% IMC
7
% Salaries
3
4% Rental
1
2% Opening Inventory
5
4% Others
8
% Admin Expenses
1
3% Equipment
3
% Utlity Expenses
3
% Shipping
70
OnePercent PTE LTD FINANCIAL BUDGETING
Profit and Loss S$ Revenue Cost of Sales
Gross Profit
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
1,815,000
2,087,250
2,817,787.50
4,085,792
6,332,977.41
9,816,115
987,360
1,135,464
1,532,876.40
2,222,671
3,445,140
5,339,967
827,640
951,786
1,284,911
1,863,121
2,887,838
4,476,148
Less Operating Expenses Renovation (Retail & Office) Rental (Retail & Office)
-
-
-
-
-
192,000
192,000
192,000
192,000
192,000
21,650
26,418
31,768
37,118
42,468
47,818
293,712
302,523
311,599
549,567
572,535
599,919
Staff Bonus
73,428
75,631
77,900
83,381
86,423
89,866
Staff Commission
10,000
14,000
16,000
18,000
20,000
20,000
Staff Training
6,000
6,000
-
9,000
9,000
-
Staff Medical
18,000
18,000
18,000
32,400
32,400
32,400
Part-time Store Attendants
60,480
151,200
75,600
30,240
30,240
30,240
Annual Social Program Expenses
20,000
20,000
20,000
25,000
25,000
25,000
145,280
68,925
40,925
42,425
42,425
35,345
3,000
3,000
3,000
6,000
6,000
6,000
License/Permit Staff Salaries
IMC (Advertising) Insurance Electricity/Water
23,800
28,800
27,800
25,800
23,800
23,800
Wireless
1,200
1,200
1,200
1,200
1,200
1,200
Telephone
1,200
1,500
1,300
1,200
1,200
1,200
Mobile
6,000
6,000
6,000
6,000
6,000
6,000
Shipping
25,000
30,000
35,000
40,000
45,000
50,000
Delivery (Local)
6,000
10,000
7,500
8,000
7,500
6,500
Business Travel
8,000
16,000
12,000
8,000
12,000
8,000
Audit Fees
5,000
5,000
5,000
5,000
5,000
5,000
Priting & Stationeries
1,300
5,000
2,500
1,700
1,300
1,200
Staff Recruitment/Ads
400
-
400
400
-
-
Repair/Maintenance
500
1,000
2,000
3,000
2,000
2,000
10,000
10,000
13,000
11,000
10,000
10,000
971,950
992,197
Miscellaneous
Total Operating Expenses Gross Profit Less : Interest
Net Profit/(Net Loss) Corporate Tax(17%)
Net Profit/(Net Loss) after Tax 71
40,000 192,000
900,492
1,136,431
1,173,491
1,193,488
(144,310)
(40,411)
384,419
726,690
1,714,347
3,282,660
6,750
6,750
6,750
6,750
(151,060)
(47,161)
377,669
719,940
-
(151,060)
-
(47,161)
-
1,714,347
-
3,282,660
64,204
122,390
291,439
558,052
313,465
597,550
1,422,908
2,724,608
OnePercent PTE LTD FINANCIAL BUDGETING
Sales forecast
Sales turnover Operational Expenses Net Profit ROI
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
1,815,000
2,087,250
2,817,788
4,085,792
6,332,977
9,816,115
1,303,715
1,192,197
1,300,492
1,626,431
2,173,491
2,793,488
511,285
895,053
1,517,296
2,459,361
4,159,486
7,022,627
17%
51%
91%
-61%
Y
EAR 1
Y
EAR 2
-25%
Y
EAR 3
Y
EAR 4
Y
EAR 5
Y
151%
EAR 6
Revenue Stream
break even 40% Retail Outlet
We will be able to break even by the middle of year 2 and start earning a net profit of S$377,669 by year 3.
ROI 60% Online Store
Estimated an ROI of 17% in year 3 to an exponential growth of 151% by year 6 with net profit of S$3,282,660.
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14/
CONTINGENCY PLAN
OnePercent PTE LTD CONTINGENCY PLAN
Introduction
Disasters might strike anytime, so we must always be prepared. A single downtime on our website or a technical difficulty might pull down our business reputation.
Objective
We have designed a plan to minimize and counter disruptions that includes illness or departure of staff, supply chain partner problems or other challenges that businesses face from time to time.
Scope
There are always flaws in every business. Problems cropping up are a harsh reality companies have to deal with everyday. Below is a list of contingencies we have projected: • Problems with suppliers • Potential inventory problems • Problems in getting location • Raw materials cost increase • Shortage of manpower
Decision on Disruptive Events
a. Problems with suppliers OnePercent will make sure that we have a stockpile of products in our store warehouse should supply chain problems occur which within this period of time, we will contact our list of alternate suppliers. OnePercent will also keep an eye for the current market for potential price hikes to stay competitive. We will effectively keep a tab on all the legalities and initiate standard year contracts between our suppliers to obtain fixed prices. b. Potential Investor Problems Investor problems could lead to major delays and cripple the company finance. We update all of our accounting statements, copies of correspondence or any hardcopies provided to us by the broker regularly. This will help us keep track of our investors and will effectively avoid anomalies. c. Problems in getting location The ideal location for our company is in Somerset which resides at the central of Singapore thus making it accessible for everyone. In any case, if there is a withdrawal of contract with the shop owner, Orchard would be the next choice that we consider. d. Raw materials cost increase The possibility of cost increase in raw materials is a common problem faced by all production companies. In order to avoid this, OnePercent will have contacts of reserve suppliers which we can fall back on. e. Shortage of manpower Temporary staff will be hired from a service agency in case of an abrupt departure of staff while we look for suitable employees.
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15/ BUSINESS ROADMAP
OnePercent PTE LTD BUSINESS ROADMAP
Milestones
Business planning and structuring Source for information and manufacturers Fund from NEA Recruitment of staff IMC implementation (official website, facebook, twitter) Setup company Setup online store
IMC implementation _ Mobile apps _ TV ads (Year 2) Educational campaign with SEC (Year 2) Promotions Expand to more products Membership target of 300
IMC implementation _ EDM _ Direct Mailer Increase staff members Launch product customization service Membership target of 600
Expand 2 retail store Collaboration with local designer Collaboration with more organization
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OnePercent PTE LTD BUSINESS ROADMAP
Objective Goals
In the next few years, We will continue to expand substantial resources in developing new and additional products for new applications and markets. After OnePercent has grown to a maturity stage, we intend to set up a production factory in Singapore, which allows us to control and monitor our products quality easily and save operation costs. Besides that, we also aim to venture into international market expansion, which means the exploration of new products , advertising methods and the augmentation of brand awareness.
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