MACO by MF Parejas

MACO.

MACO. Is a Massage Cork Ball, ideal to release tight, uncomfortable muscles, improve circulation and release toxins. It is very portable, very versatile and most importantly very very sustainable & ecofriendly. As a product designer, I can say that I’ve chosen a really enjoyable, fun, and pleasent profession, but when it comes to launching new consumer products I used to find myself in a blank page. I can have a sense of where this products could ideally be sold... But what needs to be done to achieve success? “Making a small batch by hand is fine, but how do you find the suppliers to meet larger scale production and what will be the realistic unit costs? How can the market appetite be explored? How do we get the attention of potential stockists to discuss retail orders and what mark-up are they expecting?” Lynne Elvins.

In an effort to try and answer my lecturer’s questions (now also my own) I’ve taken the focus away from the creative-fun part of designing, to go on an adventure. I’ve spoken with manufacturers, stockists and other colleagues to find that as Lynne well said “ The harder part is doing business, making the numbers stack-up and securing the investment to follow-through”.

Index: Design

Product Branding Packaging

Material

Market

Manufacture

Business

Composition Harvesting Montados Origin

Persona Review Ruts Suppliers Costs

Profit Website

Design: Product Branding Packaging

MACO. An excellent way to loosen up tight muscles. It is great for getting into those areas that a foam roller cannot reach. This tool is very easy to use - The users simply need to find the spot that is giving them pain and work the ball into the surrounding muscle whilst rolling against a wall to reach back and shoulders, or rolling against the floor for those tight spots in their back, calves, glutes, hamstrings etc...

85h x 550 (units in mm)

Product: - Helps release extreme discomfort and tightness - Convenient size for travel and portability - Provides intense firmness for dense muscle tissue - Cork composition gives it a very touch appealing finishing - Sustainable and ecofriendly production method - Designed to withstand repeated use without breaking down - Recommended areas of use: Lower Leg: foot, calf, tibilias anterior Hip/Glutes: glutes, psoas Upper Body: upper back, chest/ pecs, lats/side torso, neck and arms 6

rounded area permits easy rolling side to side and circular movements sharp end ideal for reaching intricated trigger points.

self-massage:

massage others:

MACO. compresses and â&#x20AC;&#x153;gripsâ&#x20AC;? tissue, encouraging blood and oxygen flow

to enhance overall movement and range of motion. With a slip resistant texture, it can be used on any hard surface, so the user can roll anytime, anywhere. For best results, the ball needs to be placed directly on the area of discomfort, to then apply pressure and roll side to side. 7

MACO. Cork massage ball www.maco.uk

Applied branding to stationary products and business cards. 8

Branding: The Name of the product comes form its use and material “Massage Cork”. MACO is a short and friendly name, easy to remember and nice to say. The logo is the outlined shape of the product, I wanted to keep a minimalistic style to the brand image by saying as little as possible with a sense of calm and simplicity.

www.maco.uk was the shortest domaine name available online. I tried to get a “.com” site as a first option, but it was already taken, other options like : “macostudio.com” or “macodesign.com”were available but I thought just MACO is easier to remember and also looks better with the style of the brand.

Fabric bags that could be part of the launching advertising campaign, or a benefit for people buying 3 or more items. 9

Packaging: MACO has a strong ecosophy and it intents to reflect it in every aspect. For that reason the packaging is based on teh use of sustainable, recyclable, safe environment and eco-friendly materials.

140h x 100 x 80 (mm)

The Massage ball would come inside an organic fabric bag, that the user can keep to protect the product while being stored or transported. This fabric bag, will be at the same time contained inside a cardboard box that will keep the product safe during its transportation and delivery from

the storage point to the different stockists and retail shops. The manufacture of the packaging and the product should come from producers that are certified by forestall protection standards and organizations. This will add value to the product itself and to the brandâ&#x20AC;&#x2122;s manifesto. 11

Material: Composition Harvesting Montados Origin

Composition:

Harvesting:

Cork is the bark of the cork oak tree (Quercus suber L), a very unique tree with a long life time and an enormous capacity for regeneration.

Cork harvesting is the process of removing the bark off the cork tree.

Once the tree reaches a mature age of 25 it is ready to be peeled off for the first time. The first two harvests of cork bark are called the virgin cork and secondary cork. The quality of obtained material is not good enough to produce cork stoppers. Only at 43 years of age cork oak bark regenerates with the top quality cork called amadia. With each harvest cork acquires a smoother texture.

Harvesting takes place always between May and August, when the tree is at its most active phase of growth and it is easier to strip the bark without damaging the trunk. An average cork oak tree can live up to 200 years what gives an opportunity to strip the bark around 16 times with 9-12 years interval.

Montados:

Origin:

Cork tree forests (Montados) cover the surface of almost 2.2 million hectares in the West Mediterranean basin.

Portugal Has 1/3 of the total area of cork oak trees (34%), is the largest producer of cork, being responsible for around 50% of the world’s cork production. There, the cork oak is the National Tree and occupies 22,5% of the national forest area. Portugal is not only exporting cork (around 65% of world´s cork export) but also importing, mostly from Spain.

The landscape supports a rich diversity of wildlife, including the Iberian lynx, imperial eagle and Barbary deer. The cork forest serves a valuable ecological function by providing soil conservation, clean water renewal, while also buffering against climate changes and desertification. It is estimated that every year cork oak forests retain up to 14 million tonnes of CO2, a sizeable contribution to reduce greenhouse gas emissions, the main cause of climate changes. Equally surprising is the fact that the cork oak increases its ability to absorb these gases during the natural regeneration process following stripping. A stripped cork tree absorbs, on average, five times more CO2. The ability to retain carbon dioxide is also passed on to manufactured cork products, which continue to ensure this function to absorb CO2.

Cork represents more than 30% of all forest products exported and 2% of all exported goods. Data provided by APCOR: the portugueses cork association that represents, promotes, divulges and carries out research in the Portuguese cork industry.

Cork forests are supported by : “World Wildlife Fund” 15

Granulated: Can be supplied at a wide range of mesh sizes and densities, ranging from fine powder to 12mm chips. Cork granules can be used to make composite cork products, sports field infill, soil conditioner, agglomerated wine corks, cork flooring, brake shoes, shoe soles, insulation cork blocks and so on, but granulated cork can also be purchased unprocessed to be used as an insulation filler. Cork dust can be used for explosives and a super lightweight filler. Cork is an incredibly flexible material and some of the lesser known uses of granulated cork are: Clearing up oil spills – because of its absorbency properties, it can be a very effective way of containing and cleaning up emergency spills.

Filler and Insulator – being light weight, natural and with insulation properties that synthetics cannot match, granulated cork has been used in countless applications. Gardening – granulated cork can be mixed with the soil to aid aeration, without recourse to synthetic materials. Creative – cork grain can be used to add texture and organic effects to paint and other displays. The price of cork granules is largely determined by density, as low density (e.g. 55 kg/m3, which is very soft and elastic) being much more prized than high density (220 kg/m2 granules, which are dark coloured and contain more woody outside bark).

Agglomerated: Agglomerated cork can be moulded into almost any shape and by using different binders and cork granules, the moulded cork products can have a wide variety or properties, made to be for example heat resistant, soft, hard-wearing or whatever the particular requirement may be. Moulded cork has been used to make a variety of household and industrial objects, sometimes just for the natural beauty and texture that cork provides and at other times for the unique properties that cork can offer: is recyclable Cork is both recyclable and biodegradable. Even during the manufacturing process, cork waste is reused and ground to make agglomerated cork products. Cork powder and chemical components removed during processing can be recovered as useful fuel sources and byproducts. Because of this, cork is increasingly being incorporated into â&#x20AC;&#x153;greenâ&#x20AC;? homes and designs. is resilient Cork is a lightweight, low-density material. The durable material is one of the most insulate of any natural material, due to the low conductivity of heat, vibrations, or sound. It is the only solid material that retains its width while compressed vertically. The capability for the material to rebound to its original shape makes it resistant to wear and tear, increasing longevity.

has an unmatched cellular structure Corkâ&#x20AC;&#x2122;s surface is antistatic, antimicrobial, and water-resistant, which makes it great for people with allergies. It also contains a waxy, fire-resistant substance called suberin, which makes cork naturally fireresistant. is unique Because cork comes from nature, it offers a variation of unique grain, texture, and color choices. No two pieces of cork are the same. There are several Cork producers, manufacturers and eco-friendly corporations like PEFC (Programme for the Endorsement of Forest Certification)

encouraging the use of cork for design and innovation, to support the farmers and save the cork forests. Bangor Cork for example has a strong message on its website to encourage cork based green-design: How can you go green with cork? You can benefit the environment by using cork products in your next project. Not only will you be using an eco-friendly material, you will be saving the cork forests and supporting thousands of family farmers. Do you have an innovative, eco-friendly use for cork? We would love to hear from you! www.bangorcork.com 17

Market: Persona Review Ruts

Persona: All the people in the images are potential consumers for MACO.

1- He’s got a sportive lifestyle and a cervical ache from he’s gym routine.

They have very different lifestyles and probably not much in common, what makes MACO suitable for all of them is that it targets a physical necessity.

2- She wares heels for work every day and her feet are killing.

Whether they have similar or different lifestyles, they all share one thing: they all have a body. When it comes to choose what is good for it, they know what’s better. MACO not only feels great, but come from sustainable sources, which makes it perfect for everyone. 20

3- He’s a business man and spend a lot of time travelling and sitting in uncomfortable seats. 4- They share a healthy lifestyle and thy love massages and organic products. 5- She Practices yoga and has a strong notion of her body and posture.

beauty

design

Review: A variety of pictures along the next pages show the different retail shops where the product could perfectly fit and some competition products. Most massage balls and foam rolls can be shopped online and in health/fitness shops. Now, How do I want MACO to sit next to other products? MACO is a small product and the costs of production aren’t extremely high, the intention is that the product would sit into a high standard design and quality range of products, highlighting its sustainability and eco friendly background. This means that the Retail price will be also high compared to the production costs, allowing a reasonable profit for all the parts involved in the process. In all the retail shops that MACO targets, the product wouldn’t look expensive compared to other products that people normally shop in those places. Also the idea is to place this product in other shops different form what a traditional “massage ball retail shop” would be expected to be like. Some examples can be found along the following pages.

Apollo 360 Pivot MB £15

Competitors.

Trigger Point MB 1 £11

boutique

Spa

decor

yoga

Spa After a nice day at the spa that showcases MACO in the waiting room and offers a discount in the next visit to the spa when purchasing an item, would look tempting enough for most clients. Yoga Yoga people normally buys bricks foam rolls, and other utensils for their practices which if also respond to sustainable features are normally far more expensive than MACO. Home decoration & Design Next to other products like tables, chairs, or trendy frames and vases MACO would still have a surprisingly accessible price.

Routs: To start with, there are plenty retail shops that could exhibit MACO among their current stock. But the question is, Will they be aiming to? And mainly, will I be able to provide the necessary quantities to begin these business? To have a better notion on this process I went to different shops in Plymouth and Totnes, and asked if they could answer some questions about my design. In most places the answer was that they couldn’t answer my questions because they weren’t involved in the process of buying the stock. In any way it was good to visit the shops to look at the prices of other products that would be exhibit next to mine in case of successfully placing it in that market. There was one shop in Totnes though, “Green Fibres” where luckily enough I could speak with the Founder & CEO of the company William Lana. He’s into the fabric industry and is an eco pioneer since 1996. His brand is a founding member of the Organic Trade Board; also a founding member of SEE What You Are Buying Into; and is a licensee of the Soil Association Certificate.

Pomme by Lars Beller Fjetland 39,00€ similar dimention Cork Design product.

(they also print their business cards in 100% post consumer waste paper)

William was really enthusiastic about my product and explained to me what would be the best way to do business with it and get it in the market: He first talked about the design, he said he loved the product and the texture and smell it had. He pointed out that before deciding to buy the item in case I actually had it for sale, he would like to see some information about the production and use; that once it is manufactured, the product would need some testing (light, temperature, oils absorbence, use, durability, etc). He also said it would need a proper packaging and that he would recommend a box, which I explained was under design process at the moment. He then moved on to the costs and profit and sugested a 200% difference between trade price and retail price. He said (not far from what the manufacturer estimated a few days later) that a product like MACO could cost around £2 to produce, to wich I should add my profit this (Considering I might have an extra pound of packaging if I put the boxes together myself to start with) would give me a trade price of around £5. With that price in mind, if I intent to sell direct, I can have a couple of options to offer to the shops according to the quantity of items they will take to start with. For example, Let’s say a small shop or a spa is interested in my product, but they can’t afford to make a big order 26

to start with, or they simply don’t want to risk it all at once. I offer them my product at £5,50 and I let them have an order of 100 pieces to start with. Now if the shop is larger or wants to take a bet on my product, then I can let them have it for £5 under a minimum of 1000 pieces per order. Always suggesting to the stockists a retail price of £15 to what they can add another couple of pounds if they think they can sell it at that price, but letting them know that the official price on the website will be £15. Another option to consider is going to a distributor who could maybe place larger orders of around 5000 pieces at the time, in which case I might have to think a different price that may seem like less profit for my share at the beginning but will make up for itself with the quantities because the pruduction times are the same for 100 than for 5000 pieces and also the manufacture prices goes down in larger orders (same thing for me than for the stockists and distributors). What I was thinking at this point was: OK, now... Where do I get those pieces from? how do I get enough money to start producing MACO? Could the retail price go a bit higher to get a better profit?

There are different ways to get funding to start a business: 1. Solicit venture-capital investors.

3. Start a crowd-funding campaign online.

These are professional investors, who invest institutional money in qualified start-ups, usually with a proven business model, ready to scale. They typically look for big opportunities, with a proven team. So Iâ&#x20AC;&#x2122;m look for a warm introduction to make this work.

This newest source of funding, where anyone can participate is exemplified by online sites such as Kick-starter. Here people would make online pledges to my start-up during a campaign, to pre-buy the product for later delivery, give donations or qualify for a reward, such as a T-shirt.

2. Apply to local angel-investor groups.

4. Fund my own start-up myself.

Most metropolitan areas have groups of local high-net-worth individuals interested in supporting start-ups, and willing to syndicate amounts up to a million pounds for qualified start-ups. I can use online platforms to find one that relates to my industry and passion.

These days, the costs to start a business are at an all-time low, and over 90 percent of start-ups are self funded (also called bootstrapping). It may take a bit longer to save some money before I start and grow, but the advantage is that I donâ&#x20AC;&#x2122;t have to give up any equity or control.

All of these options require work and commitment, so there is no magic. Every funding decision is a complex trade-off between near-term and longer-term costs and paybacks. 27

Manufacture: Suppliers Costs

Dear ..........., My name is Maria Florencia Parejas, Iâ&#x20AC;&#x2122;m a Product Designer from Argentina based in the UK.

85h x 550 (units in mm)

MACO. my most recent design, is a cork massage ball, Iâ&#x20AC;&#x2122;m looking for an estimative manufactury price on this piece, if possible on different alternatives of pruduction methodes (I was thinking moulded) preferently with a strong focus on ecological and sustainable processes.

I would also need details of the quantity of pieces required for a first order, together with your normal delivery procedure and costs, or any other information that you consider relevant for a firs negotiation with the investors. Iâ&#x20AC;&#x2122;m looking forward to hear from you. Kind regards Flor.

Suppliers: I’ve design the the form in the previous page, and I sent it to several suppliers in Portugal and Spain. After waiting for weeks to get an answer from any of them (which I didn’t) Roberto Fraquelli mentioned that he had a supplier in Portugal and I asked if I could have his contact details to try and get some estimatives for the production of MACO. I sent a last email whith only a few days left before the end of the module, thinking it wouldn’t be enough time for him to reply but fortunately, against my predictions, he replied inmediately. Ramiro Baptista is the international Operations Manager in Portugalia Cork. He said that prototype development will have a cost of £256, what includes the production, moulds and tools and shipping to UK. He also said that he needed the quantities to be produced to be able to calculate the production costs. I replayed saying that I had in mind orders of 1000 and/or 5000 pieces once the product is placed in the market. I asked as well if there was a possibility to start with a smaller order, and in that case which minimum quantity would he be willing to manufacture for a first order. together with the times that regardes to the prototype development.

Finally I asked for a detail of this three possibilities: Quantity

price

time

Min order £ weeks: 1000 £ weeks: 5000 £ weeks: He replied the following:

Costs: The prototype will take 3/6 weeks to produce. Here you have the price per unit: (delivery not included) 100 £ 3.50 weeks: 3/4 weeks 1000 £ 2.15 weeks: 3/4 weeks 5000 £ 1.60 weeks: 3/4 weeks The prices are estimated, only after we produce the prototypes we will be able to verify the exact production costs. With this information I can calculate an approximate profit margin and initial funding that I would need to start the production. 31

Business: Profit Website

Profit: MACO. Is a Sustainable and eco friendly massage ball. It stands out among other massage balls because its is naturally antimicrobial, water resistant, with good absorption for oily essences, portable, light weighted, durable and self explanatory. With a memorable name that references the characteristics of the product “massage cork ball” and a very minimalistic design, MACO could sit next to other high quality products in the market. The idea is to promote the item online and with pop-up shelves in different shops. The target is medium to high class people who cares about well being and is probably into organic and sustainable products or a sportive and healthy lifestyle. The proposed retail price is £30.

The lowest manufacturing costs possible to get is of £1.60 per unit. on a production of 5000 pieces. In addition to a speculative cost of £0.90 for the packaging and shipping, unit price, the total cost of production would be £2.50. If the trade price is then of £10, the profit for me would be of £7,50 per unit. Giving the stockists the possibility to a %200 mark on the retail price. Being this the best case scenario, I will need £12.500 to start the production cycle and I would end up with a profit of £37.500 after selling all the 5000 pieces.

The second lowest manufacturing costs is of £2.15 per unit. on a production of 1000 pieces. In addition to a speculative cost of £1.35 for the packaging and shipping, unit price, the total cost of production would be £3.50.

The third possibility is to produce a really smaller quantity of massage balls at the time. The cost for 100 products will be of £3.50 per unit. In addition to a speculative cost of £2 for the packaging and shipping, unit price, the total cost would be £5.50

If the trade price is still of £10, the profit for me would be of £6,50 per unit. Stockists would still be able to have a %200 margin on retail price.

Maintaining the trade price at £10, the profit that I would get is £4.50 per unit. Stockists will be able to remark the retail price at a %200.

For this second best case scenario, I will need £3.500 to start the production cycle and I would end up with a profit of £6.500 after selling all the 1000 pieces.

On this third case, I will need £350 to start the production cycle. My profit after selling the 100 units would be of £450. This is only a rough idea of the costs and investments that would be needed to start the production of MACO. The costs of shipping and packaging are only aproximate and estimative, also depending on the orders and how fast they are shipped to the stokists, it might be necessary to rent a storage room and possibly hire some staff to help putting the packaging together. All this things will add to the production cost. There should be enough margin to cover those expenses without rising the trade or retail price. 35

Production lot

5000

unit cost

£1.60

shipping & packaging

£0.90

total cost

£2.50

profit

£7,50

trade price margin retail price profit on online sales

£10 %200 £30 £27,50

1000

100

£2.15

£3.50

£1.35

£2.00

£3.50

£5.50

£6,50

£4.50

£10

%200

£30

£26,50

£24.50

Shop

Processes

MACO.

Cork Massage Ball, ideal to release tight, uncomfortable muscles, improve circulation and release toxins.

Contact info

Shop

Processes

Journal

About

Maco is very portable, very versatile and most importantly very very sustainable & ecofriendly.

exercise chart

MACO.

tutorial videos

Journal

About

rounded area permits easy rolling side to side and circular movements sharp end ideal for reaching intricated trigger points.

Contact info

exercise chart

tutorial videos

Website: For direct sales MACO will have a website where the product can be purchased. The site will also provide information about the process, News, and background story of the brand. It would also make an ideal platform for post-purchase services such as exercise charts of the possible ways to use MACO, also tutorial videos and benefits and temporary offers.

The website will leave an open door to a brand expansion: Different sizes of MACO could be included to the brand, as well as maybe some association with some oil essences producers, or personalized options. On the previous page there are a few images, showcasing a mock-up of how the home page of www.maco.uk would look like.