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GRE3NKARMA | Technopreneurship | Food Waste – Renewable Energy | | Amos Tan Yi Wen, Eu Wei Yi Vivian, Abdul Azziz B Abd Talib & Andy Chua Kang Ren | 2/10/2014 |

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Contents 1. Executive Summary 3 2. The Company and its Operations 4 Company Background 4 Our Mission 4 Company Ownership and Management 5 Business Form: 5 Company Location and Facilities 6 Manufacturing and Operations Plan 7 Labour 7 Equipment 8 Office Equipment 8 Suppliers 9 3. Products and Services 9 Description of the product and services 9 Biogas – An Eco-Friendly Renewable source of energy 9 Components of a Biogas Plant 10 Benefits that the product and services can bring to customers 11 Unique features of the product and service 11 4. Market Analysis 12 Global and industry overview 12 Global outlook 12 Local outlook 12 Porter Five Forces 13 PEST Analysis 14 Political 14 Economic 15 Social 16 Technological 16 Competition Analysis 16 SWOT Analysis 18 Market Trends 18 Segmentation Analysis 19 Target Market (size in terms of number of potential customers or potential dollar volume) 22 5. Marketing Strategy 22 Product Strategy 22 Operational Excellence 22 Product Leadership 22 Labeling 22 Pricing Strategy 23 Penetration Pricing Strategy 23 Sales Forecast Plan 24 Market Penetration Strategy and the cost involved 24 Focus strategy/Differentiation based strategy 24 Promotion Strategy 25 Advertising 25 Sales Promotion 25 Public Relations (PR) 25 Distribution Strategy/Customers’ Relationship Management 25 Distribution of products 25 Ways to provide extraordinary service and gain customer loyalty 26 6. Financial Plan and Funding Requirements 27 Start-up expenses 27 Financing 27 Projected Capital Requirements 28 Income statement 29 Cash flow 29 Balance sheet 30 Break-even analysis 31 References 33

1. Executive Summary
Gre3nKarma offers a new way of clean cooking for household by using a non-commercial biogas plant, in which organic wastes or slurry are converted into renewable energy after anaerobic reaction. Our clients are people seeking for a greener and more eco-friendly living environment to increase awareness relating to recycling to the masses to address environmental concerns. Gre3nKarma offers three main products which are differentiated between the size of the area and space required for the product – terrace top, balcony and portable biogas plants.
Clean technology was identified by the Singapore government as a key economic growth area in 2007. Since then, the city state has been aiming to develop this sector so that it contributes $3.4 billion to Singapore’s gross domestic product (GDP) and provide an estimated 18,000 jobs to locals by 2015. Singapore has been generous to open its doors to clean technology companies to use Singapore as a “living lab” to test and exhibit innovative solutions before introducing it to the rest of the world.
While there are currently a few businesses offering alternatives of renewable energy in Singapore, but none offers personal biogas plant for household users.
Gre3nKarma marketing strategy is to emphasize on the quality of product and the efficiency of our services at an affordable price. People looking for greener alternatives in their daily lives have finally found a product that not only saves the earth, but also saves up on electricity consumption and piling bills.
All employees of Gre3nKarma from the service line to the executive line will go through trainings to gain product knowledge and a motivational working environment to keep employees enthusiastic in their job and improve work ethics. On start up, we will have about 12 employees to help us on admin and sales jobs. CEO Eu Wei Yi will be looking at hiring new employees after a year while going through our sales records.
The management of Gre3nKarma consists of CEO Eu Wei Yi and other 3 partners Abdul Azziz, Andy Chua and Amos Tan. Abdul Azziz is the Marketing Director of the company as he has extensive experience after working in the sector for 5 years. Andy Chua is the Finance Director of the company and helps manage all finances and budgeting aspects. Lastly, Amos Tan will be in charge of our Human Resource (HR) and customer relations department, which were initially working for the HR sector for a major corporation.
Based on the size of our market and our defined market area, which are targeting at clients from property firms that builds condominiums and Singapore town council, our sales projections for the first year are SGD$1,163,760.
2. The Company and its Operations
Company Background

The company logo gets its inspiration from the environment. The word “GRE3N” and “KARMA” reflects the ideology which we believe that our product is capable of delivering.
The true definition of the word “KARMA” is that all of your actions will have equal repercussions affecting you. In the case of our business, biodegradable wastes which are fed in to our product would provide a generous source of energy as a by-product of the chemical reaction.
GRE3N represents our commitment to protect Mother Nature and in order to achieve that; we promote the 3 R’s of the environment (Reduce, reuse and recycle) and it can be evidently seen in the 3 which has replaced E in “GRE3N”.
Our Mission
Reduce the excessive build-up of biodegradable waste through the recycling of organic matter into renewable energy at our client’s own convenience with our state of the art revolutionary technology.
Our Vision
To be the leading company in biogas, renewable energy and create a significant impact on the environment through the reduction of earth’s overall organic matter.
Goals:
* Raise the profile of the recycling industry in the public eye by educating the masses on the benefits of recycling and encourage greater involvement and acceptance * Build a company that is customer focused, always meeting the expectations of our clients by identifying their needs in order to maintain a competitive advantage * Make an impact on the environment by reducing earth’s total amount of food wastage * Increase awareness on issues relating to recycling and garner more interest and responsibility of the masses/businesses to address those concerns * Promote biogas as an efficient source of renewable energy as opposed to popular choice, such as wind and solar energy.
Objectives:
* Reduce the amount of everyday organic matter wastes, Reuse energy produced from broken down matter in to renewable energy and promote Recycling as an important movement in the efforts for zero waste. * Uphold and act upon the philosophy of zero waste which encourages the redesign of resource life cycles so that all products are reused.

Company Ownership and Management
Business Form:
GRE3NKARMA will start out as a general partnership with 4 main partners. Each partner will have equal ownership of the company once the business entity is registered as a company under the Companies Act, Cap.50.
As a partnership, the partners enjoy complete control over the operations and running of the firm and are easier to set up and maintain. Also, the main partners are liable for any legal actions and debts the company may face.
Profits generated from sales and losses incurred from the business will be equally distributed between the 4 main partners as part of the agreement of general partnership at 25% per partner.
The business terminates with the death or withdrawal of any one partner but remaining shares of that partner can be bought by remaining partners after a mutual consensus.
Company Location and Facilities
Gre3nKarma will have 2 facilities, an office where employees work at and a warehouse that stores and holds the company’s goods. Shown below are the details of the location and facilities which the company will be using for its daily operations.

Address: 1 North Bridge Road 179094
Price: $4,200/month
Floor area: 550 sqft/51.10sqm
Property type: Office
Nereast MRT station: Clarke Quay MRT station, City Hall MRT Station

Address: 85 Genting Lane
Price: $5,500/month
Floor area: 2852 sqft/265 sqm
Property type: Industrial Warehouse
Special Features: Car Parking, Security Access Control and a Loading Bay
Number of Cargo Lifts: 4
Number of Passenger Lifts: 1

Manufacturing and Operations Plan
Labour
Role | Salary (SGD) | Required Skills | Total number | Customer Service Personal | $2,300 | Handling problems, assisting in sales, clerical tasks | 1 | Cleaner and Housekeeping | $1,600 | Cleaning buildings, removing debris and keeping areas neat and tidy | 1 | Driver/Delivery Man | $2,000 | Delivering items, loading and unloading products and inspecting vehicle for operation | 1 | Human Resource Manager | $5,300 | Conduct recruitments, hiring and firing | 1 | Marketing Research Analyst | $3,000 | Conduct market research, design research project and develop focus groups and surveys | 1 | Accountant | $2,900 | Developing budgets, computing taxes and analysing accounting records | 2 | Salesperson | $2,000 | Closing sales deals, quoting pricing and providing outstanding service | 1 | Technicians | $2,000 | Provide after sales service, servicing and solving customer’s issues | 1 |

Operating Hours
Monday – Friday: 8.30am – 7.30pm
Sunday, Saturdays and Public holiday: Closed
Equipment
Vehicle Type | Model | Engine Capacity | Gear | Price (Inclusive of COE) | Total Number | Van | Nissan Urvan | 2,663 cc | Manual | $62,689 | 2 | Truck/Lorry | Mitsubishi Fuso FK617M | 7,545 cc | Manual | $68,689 | 2 |
Office Equipment Office Equipment | Brand | Price (SGD) | Type | Total Number | Computers | HP, Pavilion 23” All-In-One Computer | $549.99 | First-Hand | 14 | Office Desk | Envoy Double Pedestal Desk, Natural Cherry | $405.78 | First-Hand | 12 | Office Chairs | Leather Executive Office Desk Chair | $240.94 | First- Hand | 12 | Printers | HP, LaserJet MFP M375nw Wireless Color All-in-One Printer | $599.99 | First – Hand | 2 |

Suppliers
Shenzhen Puxin Technology Co. Ltd – Portable Biogas Plant
The company was formed in November 2001 in Guangdong, China specialising in designing, manufacturing and selling new style small size biogas digesters. It is a well-established organization with numerous professional certifications. (Blue Sky Award, High and new tech enterprises Certificate, Risk Investment Innovation Company and Bluesky Award Certificate). Their main market covers a wide spectrum of continents and latest total annual sales volume generated by the company was US$2.5 Million – US$5 Million.
Samuchit Enviro Tech Pvt Ltd – Balcony and terrace biogas plant
Located at Law College Road, Erandwana Samuchit Enviro-Tech is a private limited company registered in India which was established in 2005. Dr. A.D.Karve together with her daughter runs the company’s daily operations. They focus on providing environmentally sustainable energy and waste management that addresses the problem of indoor air pollution. There are 4 main products which they offer, Biogas for households, biogas for institutional cooking, renewable charcoal production and renewable charcoal in your backyard.
3. Products and Services
Description of the product and services
Biogas – An Eco-Friendly Renewable source of energy
Biogas, a methane rich gas is one of the many key renewable energy sources produced by the fermentation of biodegradable waste. In recent years, Biogas has gained increase global attention through the construction and upgrading of the relevant technologies involved in Biogas. In addition, the rise in prices of natural gas and oil has contributed a fair share in the growth of Biogas as well. Biogas in its natural form has to be processed in order to be used for various purposes such as electricity production, cooking and vehicle fuel.
How does the Biogas Plant Work? 1. Organic waste (Food leftovers, dead plant materials, dung, animal feed) are deposited in to the digester. The digester is an airtight container in which the waste is dumped and decomposed 2. Bacteria in the digester undergo anaerobic reaction to break down the waste as it decomposes. Biogas is produced as a result 3. The Biogas then travels in to the gas holder for storage. It is constructed to prevent any gases from escaping in to the atmosphere ( 100% safe) 4. In order to convert Biogas in to renewable energy, it will then have to flow in to the generator where it is being converted in to heat, electricity and cooking fuel. 5. The by-product (Sludge) of the chemical reaction in the digester leaves behind an organic matter which can be used as organic fertiliser. 6. The Biogas plant should be stored in a cool and dry place at room temperature protected from dust and moisture

Products offered: Description | 1 m3 Biogas Digester (Terrace) | 0.5 m3 Biogas Digester (Balcony) | Portable Biogas Plant | Country of origin | India | India | China | Gas production capacity | Up to 10 Kg of Biogas | Up to 5 Kg of Biogas | Up to 2.5 kg of Biogas | Capacity | Up to 5 Kg of kitchen waste | Up to 2.5 Kg of kitchen waste | Up to 1 Kg of Kitchen waste | Space Required | 2 meters per square foot | 1 meters per square foot | - | Water Required | 20-30 Litres/Day | 10-20 Litres/Day | 5-10 Litres/Day | Price | SGD$525.81 | SGD$443 | SGD$1272 | Dimensions | 10m3 | 5m3 | 2.5m3 |

Our Biogas plant offer impressive feature including * Simple to operate and control * Capacity range from 22 to 110 Nm3 /H * Reliability of short and long term supply, due to high production capacity * State of the art Biogas technology
Production & Quality control * 100% certified ISO 19001 and ISO14001 * Regular calibration at home factory * Constant checks and reviews by our very qualified technicians

Components of a Biogas Plant

Digester:
The digester is clad in aluminium insulation and is equipped with a heating system and a container to store the culture. The digester’s temperature is kept at 40-60 Degree Celsius for fermentation to take place at optimum temperature. The digester also contains a stirrer to mix the contents which is important as it ensures the gas produced is evenly discharge.

Gasholder:
All gas pipes are made of stainless material and are check regularly for maintenance and repair work. The gasholder is built to hold one day’s worth of biogas.

Generator:
The generator is encased in a noise insulating housing so that minimal noise is heard during operation of the Biogas plant. A cooling system is encapsulated within the generator and is activated when temperatures exceed dangerous levels.

Benefits of the Biogas Plant * Save on waste disposal cost * Produces enriched organic manure as a by-product which can be used as a high quality organic fertilizer * Alternative source of non-polluting and renewable energy * An alternative for fossil fuel * Low level of methane release compared to conventional manure management * No greenhouse gas emissions
Unique features of the Biogas Plant 1. Safe to use 2. 24/7 Availability 3. Easy to relocate 4. Little or no maintenance 5. Low running cost

Intellectual Properties and license agreement
In Singapore, it is mandatory to obtain a National Environmental Agency (NEA) license for the collection of general waste and is an offence to collect waste without a valid general waste collector (GWC) from NEA. The annual license fee is SGD$130.00 and the submitter must fulfill all the necessary requirements before the license is issued. Application, updating and renewal of GWC license shall be done online using a SingPass. Since the Biogas plant collects organic waste, it would be classified under type B and a class B license will be registered.

4. Market Analysis
Global and industry overview
Global outlook
The biogas industry has seen strong growth in recent years especially in developing countries such as India. Germany and USA currently dominates the world market in biogas production and facilitation. A new report by Global Industry Analysis (GIA) has forecasted Germany’s power generation to increase from 18.244 Gigawatt (Gwh) in 2012 to 28,265 Gwh in 2005, representing a compounded annual growth rate (CAGR) of 3.4%. USA on the flipside is expected to perform better and is forecasted to increase from 9072 Gwh in 2012 to 20,936 Gwh in 2025, representing a CAGR of 6.6%. Overall, moderate growth is projected for global biogas power market between 2012 and 2025 and is expected to climb from 50/516 Gwh to 130,321 Gwh at a CAGR of 7.6%.
India is poised to emerge in to the fastest growing regional market at a CAGR of 54.2%. Expectations and the potential for India to excel in the Biogas industry are high, promoting industry watchers and analysts to keep a close eye on a rather profitable market. There are 2 possible reasons for this occurrence. There is a growing concerns of the massive quantities of organic matter produced each year and the way they are disposed of. In addition, high levels of greenhouse emissions have been created through the incorrect disposal of such waste. As a result, lucrative opportunities exist for small sized biogas plants and companies in the agriculture and food industry.
Local outlook
Clean technology was identified by the Singapore government as a key economic growth area in 2007. Since then, the city state has been aiming to develop this sector so that it contributes $3.4 billion to Singapore’s gross domestic product (GDP) and provide an estimated 18,000 jobs to locals by 2015. Singapore has been generous to open its doors to clean technology companies to use Singapore as a “living lab” to test and exhibit innovative solutions before introducing it to the rest of the world.

Porter Five Forces

New Market Entrants * High amount of capital required to enter market * High customer loyalty * Requires good product knowledge * High barrier to entry

New Market Entrants * High amount of capital required to enter market * High customer loyalty * Requires good product knowledge * High barrier to entry

Buyer Power * Buyers are price sensitive * Small orders for households * Low buying power

Buyer Power * Buyers are price sensitive * Small orders for households * Low buying power

Competitive Rivalry * Alpha Biofuels specialising in Biofuel * Very few competitors in Biogas * Industry of growth is high

Competitive Rivalry * Alpha Biofuels specialising in Biofuel * Very few competitors in Biogas * Industry of growth is high

Supplier Power * Many suppliers for Biogas plants * Able to substitute easily * Neutral supplier power

Supplier Power * Many suppliers for Biogas plants * Able to substitute easily * Neutral supplier power

Threat of Substitute

* Alternate source of renewable energy – Solar * Limited renewable energy options for customers

Threat of Substitute

* Alternate source of renewable energy – Solar * Limited renewable energy options for customers

The bargaining power of buyers: Low pressure * Buyers exert weak bargaining power and prices of the products are dictated by producer. * High price means high revenues for the producer
The bargaining power of suppliers: Medium pressure * There is an overabundance of suppliers for Biogas Plants from a wide array of countries. A quick search on Google displays 1,081 companies specialising in Biogas Plants * The components of a Biogas plant is generally universal and therefore supplier substitution is always an open viable options

Threat of new competitions: Low pressure * Entry barriers are high for the clean energy industry. A good network of contacts and product knowledge is vital for survival in the industry * Requires a significant of capital for start-up due to the complexity of the product and business
Threat of substitute: Low pressure * Clean energy market in Singapore is relatively new and there are very few options buyers can choose from when it comes to clean and renewable energy
Intensity of rivalry among existing product: Low pressure * Beside AlphaBioFuels which focuses on recycling used cooking oil in to biofuel, there are very few competitors in the Biogas industry in Singapore.
Overall: Attractive industry – HIGH PROFITS
PEST Analysis
Political
Free Trade Agreement
Singapore signed free trade agreements with China (CSFTA) and India (CECA) on the 23rd October 2008 and 29th June 2005 respectively. As a result of both agreements, trading barriers between both countries are reduced and the facilitation of cross border movement of goods and services is improved. There is a wide array of benefits which goods exporter gets to enjoy from the trade agreements. Firstly, it eliminates taxes on imports and exports. It also eliminates import quota, allowing limitless quantity of goods produced abroad and sold domestically. Finally, it eliminates preference on most goods and service traded between each other. Consequently, it offers Gre3nKarma greater flexibility and financial savings when exporting products from its suppliers in China and India.
Singapore Labour Law
Employees in Singapore are protected by labour laws implemented by the government under Part IV of the employment act & section 33. This prevents their employers from mistreating or depriving them of the privilege they are entitled to whilst working in Singapore. Below are lists of laws regarding hours of work, overtime and rest days. * An employee is not allowed to work for more than 12 hours within a day except under special circumstances * The duration of break(s) should be no less than 45 minutes * Employees are not required to work more than 8 hours a day or 44 hours in a week * Employee covered by part IV of the employment act is entitled to a rest day every week
A new company like Gre3nKarma may have a larger workload at the initial stage of the business and may be tempted to “push the boundaries” on their employees working conditions in order to keep up with the demands of the new-found business. However as employers, it is our responsibility to ensure that laws are followed and that our employees are given the best and most reasonable treatment. After all, the employees are the backbone of the business and they are the ones that will propel the company to greater successes.
Economic
Consumer confidence
Based on figures provided by global market research firm, Nielsen Customer confidence in Singapore declined in the fourth quarter of 2012. 64% of consumers have expressed a desire to reduce their spending because of economic uncertainty. The study also found that in the next 12 months, consumers in Singapore are likely to cut back on spending. When consumers view the economy as weak, they tend to be more aware of their personal financial situation. If consumer confidence were to miraculously increase, we can expect customer to make more purchases but if the trend is set to occur than Gre3nKarma must take concrete actions to counter the problem.
In order to encourage spending among consumers, Gre3nKarma will have to bolster its marketing plan and offer greater incentives as a form of stimuli to stimulate greater spending activity to stimulate the economy resulting in a snowball effect. Likewise, the government could impose tax cuts to help households cope with rising cost.
Exchange Rate
Two of our major suppliers are from China and India and the exchange rate between the Singapore dollar with the Rupee (INR) and Renminbi (CNY) affects the prices of goods bought overseas. A quick look at the current exchange rate during the period of March 2013 to February 2014 between SGD and INR presents a positive outcome. During the early months of trading (March 2013 to May 2013), the Singapore Dollar has been staggering at 0.0225 to 1 Indian Rupee and from June onwards, the Singapore Dollar has been dropping steadily to 0.0204 on February 2014. However, comparing the Renminbi with the Singapore dollar shows slightly dull figures. The Singapore dollar has in fact rose throughout the months to 0.2100 SGD to 1 CNY. Gre3nKarama should be aware of the foreign exchange rate when buying from its suppliers overseas. Therefore when the exchange rate is low, exports will decrease as the relative prices of goods abroad are more expensive. Conversely, when the exchange rates are high, net exports rises.

Social
Favourable Consumer attitude toward clean energy
Public attitude toward clean and renewable energy concept plays an important role in determining the growth of the clean industry. An annual survey conducted by Navigant Research has found that customer favourability to clean energy concepts has risen to 51 per cent, the highest level ever recorded. The survey took in to account 10 clean energy concept, one of which was biofuels (Biogas) Therefore, customers are more willingly to buy and support clean and renewable energy.
Technological
Investment R&D
Singapore has invested more than SGD$800 million into public sector R&D funding for energy, waste, green buildings and addressing land scarcity. This is an encouraging sign as the government is supportive of the green movement. Since Gre3nKarma is part of the clean energy industry and the government is investing and focusing attention to address the country’s thirst for energy, we can look forward to possible financial support and grants from the government.

Competition Analysis
Within the energy market in Singapore, Gre3n Karma has identified two key companies as competitors in the business. They are AlphaBiofuels and Bosch (Singapore). AlphaBiofuels is a direct competitor to Gre3nKarma whereas Bosch is an indirect competitor. Bosch do not offer the same types of products as we do however they offer alternative products or services that are aimed at the same customer capital. AlphaBiofuels on the other hand, offers environmental solutions to reduce the carbon footprint of the community and the environment. The table below shows a detailed analysis of Gre3nKarama’s two main competitors. | Gre3nKarma | Alpha Biofuels | Bosch | Where are they located? | 1 North Bridge Road 179094 | 2 Tuas South Avenue 2 | 11 Bishan Street 21 | What are their annual sales? | $1 Million | $25 Million | $3.64 Billion | What are their strengths? | Specialised products and services | Passionate leaders leading the company | Well established worldwide, strong logistics capabilities | What are their weaknesses? | Difficulty in hiring people | Limited product mix | High level of bureaucracy and formalization | What are the company’s product lines? | Biogas plants for household use | Biodiesel and fuel filters | High quality photovoltaic products and thin-film solar modules | What is the price structure? | * $525.81 for 1m3 Biogas digester * $443 for 0.5m3 biogas digester * $1272 portable biogas plant | * $1.70 per litre after GST – Commercial rate * $1.40 - $1.55 per litre excluding GST – Corporate rate | * 10 watt solar panel, USD 5.50 Price/Watt * 185 watt solar panel, USD 1,41 Price/Watt * 205 watt poly crystalline solar panel – USD 2.50 Price/Watt | What are the company’s marketing activities? | Sales promotion, newspaper and magazines | Corporate website | Innovation marketing using power tools – Germany Marketing Prize 2007 | What are the company’s supply sources for products? | Shenzhen Puxin Technology Co Ltd and Samuchit Enviro Tech Pvt Ltd | Nil | Nil | | | | |

SWOT Analysis

Market Trends

From the table seen above, Condominiums have one of the highest average monthly gas sales in the year 2012. Hence, by targeting this market, it does not only help the environment but it also helps the customers to pay less gas for their household.
Segmentation Analysis
Products offered by Gre3nKarma are able to target a wide market due to its usefulness and economic benefits. Gre3nKarma’s target market is those who live in condominiums whist our main client is town council.
Segmentation on condominium

The map above shows the exact location of all the condominiums found in Singapore. It has been visually separated in to 4 areas north, south, east and west. It was taken from Google Maps. Each red dot represents a single condominium in Singapore and a quick glance of the map shows a concentration of red dots in the east and south of Singapore shown by the red oval. That region of condominiums is exactly the area of magnitude which Gre3nKarma intends to target.

There is great potential for product acceptance in the condominiums target market because waste generated by one condominium alone far exceeds any types of household in Singapore. In addition, waste is generated on a daily basis therefore there is more than sufficient amount of waste to be processed. In 2011 alone, 675 million kg of food was wasted in Singapore and if that waste were converted in to renewable energy, imagine the massive amount of energy that can be used. With Gre3nKarma’s Biogas plant, it is capable of powering the many facilities of a condominium such as lightings, clubhouse, swimming pool, etc.

Segmentation on Town Council

In Singapore, the Town Council controls, manages, maintains and improves the common property of HDB residential flats and commercial property within the town. There are 16 such Town Council in Singapore as shown in the map above. Currently, waste produced by each HDB is collected daily by the 4 public waste collectors in Singapore (SembWaste, Veolia ES, Colex and 800 Super). However our business preposition to Town Council is to them with Biogas plants to process these daily wastes and achieve self-reliance on energy production.

Target Market (Size in terms of number of potential customers)

According to Google maps, there are 1,143 (100%) condominiums in Singapore. Therefore, that will constitute as the first tier of the target market inverted pyramid. It is estimated that 80% of condominiums are situated in the east and south of Singapore hence it would represent the second tier of the inverted pyramid with a value of 914 condominiums. Finally, a survey was conducted and only 50% of respondent was willingly to purchase Gre3nKarma’s Biogas Plant so the final target market size for condominiums is 457.
Town Council will be classified as a major client. Even though they are a single unit if we were to look at the target market in numbers, we must not underestimate the buying power of Town Council because they have Town Councils in every estate of Singapore. If Gre3nKarma is able to sign a deal with Town Council to equip all of its estates with Biogas plant as a source of clean and renewable energy then the financial gains for Gre3nKarma would be massive.

5. Marketing Strategy
Product Strategy
Household Bio-Gas (Terrace)
This product is suitable for people who live in terraces or household which has an open area of land about 2 to 3 meters for sunlight.
Household Bio-Gas (Balcony)
This product is half of the size of the Household Bio-Gas (Terrace). Hence, the capacity and the production of biogas are lesser by half. It is suitable for any landed property as it is small enough to fit a balcony.
Mini Bio-Gas Plant (Portable)
This product is appropriate to anyone such as household users, food businesses and restaurants. This product comes in a package which includes glass fibre reinforced plastic digester, biogas fitting, storage bag, biogas pump, biogas stove double/single burner, rice cooker and biogas lamp. The weight of this product is 80kg.
Transport services and repairs will be available to all of the products. Prices of these services are based on the distance for transport and how bad the product is damaged for repairs.
Operational Excellence
Focus on efficiency of operations to offer affordable prices with quality so that consumer will patronize and spread through word-of-mouth to increase consumer.
Product Leadership
Gre3Karma has excellence in technology and product development. Highest quality product in the industry (household usage)
Labeling

When producing the biogas, methane is produce which is flammable and can be toxic to the lungs. The picture above shows an example of a label of the serial number of the productsThe pictures below show the details components of the company’s products and the instruction of safety uses. Pricing Strategy
Penetration Pricing Strategy
The company will be setting their prices lower than the normal prices as to hasten market acceptance. The reason is that the products are unique and setting at an affordable price for the consumers would increase the buyers and market share. In addition, this helps the company to get into a new market such as restaurants and food businesses. Examples are NTUC and Cold Storage. Hence, this would give the company a competitive advantage due to the new market in their target market.
Sales Forecast Plan | Gre3nKarma | Sales Forecast | | | Percentage | Figures(Population/Cash) | Population of target by segmentation(Geo) | 100% | Resident Household | 1500000 | Population of target by segmentation(Demographic) | 6% | Landed Properties | 90000 | Population of target by segmentation(Sub-Demographic) | 30% | 5 or more | 27000 | Estimated Target Market | 10% | survey | 2700 | | | | | No. of customer / month (Capacity Limit) | | | 6 | Average $ purchased/customer | | | $746 | sales/week($) | 5 | days/week | $22,380 | Sales forecast for Year 1 | 52 | 34 | $1,163,760 |

| | | Gre3nKarma | Consolidated Worksheet | | | | Gross receipts for sales | Profit | Percentage of Sales | Mini Biogas (Portable) | 58188 | 5% | 1m3 Digester (Terrance) | 349128 | 30% | 0.5m3 Digester (Balcony) | 756444 | 65% | | | | | | | Total | 1163760 | 100% |

Market Penetration Strategy and the cost involved
Focus strategy/Differentiation based strategy
It targets a single group of customers and emphasis a single product. It limits the market to a single geographic location. This strategy enabled the company to concentrate on the superiority and dominance of the product. Furthermore, it focuses on the uniqueness of the company’s product. Therefore, it helps to attract customers to the company than the competitors.

Promotion Strategy 1) Advertising * Social Media Websites
The use of social media websites such as Facebook and Google+ can help to promote the company’s products and services in a more relaxed environment. These social networks can help the company to connect to the world where potential customers can view the company from a different perspective. The social network can make the company to be in touch with people on a more personal level rather than seeing the company as selling products to gain profits. In addition, there is a wide and diverse type of customers to be targeted and the goal is to make the people be attracted to the products of the company. * Press Advertising
Newspaper
Newspaper advertising is among the fastest forms of advertising that allow ads to be created and run in a matter of days. Unlike most other media, it gives flexibility that allows the advertiser to build an ad in any size. It gives geographic selectivity and flexibility. People who are typically labeled upscale like upper income, higher education, professional/managerial occupations all count themselves as newspaper readers. Hence, people who are living in landed properties are more likely to read the newspapers. The goal of this form of advertisement is to make people be aware of the company’s products and services.

Magazines
The company will be using renewable energy and business magazines to advertise their products. An assumption was made that the majority of people living in landed properties hold jobs in the business industries. This helps the company to actually narrow down the scope as the customers will be targeted more specifically. Hence, it has a higher chance of the targeted audience to get the intended message. Examples of these business magazines are The Executive Magazine, Singapore Business Review and Today’s Manager. 2) Sales Promotion
The company can use business promotions to attend seminar and workshops to promote their products to a new market other than target markets 3) Public Relations (PR)
Implement strong and cost effective PR activities would increase marketing effectiveness.
Distribution Strategy/Customers’ Relationship Management
Distribution of products
Online sales
Through GRE3NKARMA corporate websites, customers are able to make online purchases after sieving through the wide range of choices and plethora of information.
Door to door sales
If customers are not well informed of the products, there is not a chance for them to approach the company as the purchase much less enquires about it. Therefore it is important that we have sales person with great product knowledge to educate the customer about the products advantages, uses and limitations and also answer customer questions and counter customer objections.
Ways to provide extraordinary service and gain customer loyalty
Keeping in touch
Getting customers’ particulars and information are kept and can help the company to contact the customers either by phone or via email. By doing this, the company can ask for feedback on the product that they have bought from the company. This is to ensure that the customers would know that the company is taking care of them. Furthermore, the company will frequently check on the customers every 6 months to see if there are any problems with the products. Customers can feedback to the company via email or my writing it down on the feedback form.
Lifetime Warranty
The company provides their customers with lifetime product warranty upon purchase. The reason is because one of the company’s strength is the ability to retain customers. One of the strategies is to provide lifetime warranty to the customers even though the biogas product is generally cheap. The picture below shows an example of the warranty slip.

6. Financial Plan and Funding Requirements
Start-up expenses
The total start-up expenses we need through the sum of various expenses are $395200.This amount comprises of various expenses that are needed for the start-up of our business and the following expense factors are:
Building renovations: $20000
Insurance, License, and Permit fees: $20000
Equipment and Supplies: $100000
Rent and Lease expenses: 46200 (3months)
Utilities bill: $12000 (3months)
Wages: $192000 (6months)
Other Operating Cost: $5000
Total start-up expenses: $395200
Financing
The amount of money that we have gather is based on the amount of start-up expenses that is needed. We gathered the amount through two ways which is personal capital investment and loan.
Invested capital: $296400 (75% of start-up expenses)
Long term notes: 98800
Total fund: $398200

Projected Capital Requirements Expenses | | | | Cost of Goods | | | | Direct labour & Salaries/Wages | $34,913 | 60% | | Other Cost | $23,275 | 40% | | Total cost of goods | $58,188 | 5% | Of sales | | | | | Sales & marketing | | | | Advertising | 50000 | fixed | | Website development & Hosting | 31463 | fixed | | Total Sales & Marketing | 81463 | 7% | Of sales | | | | | General & Adminstration | | | | Rent & lease expenses | 50400 | fixed | | Utilities/Telephone/Internet | 12000 | variable | | Insurance | 14400 | fixed | | Transport | 7200 | variable | | Accounting & Legal services | 14000 | fixed | | Salaries & Wages | 192000 | fixed | | Total General & Adminstration | 290000 | | | | | | | Total Sales, General & Adminstration | 371463 | | | | | | | Property, Plant and equipment | | | | Building renovation | 20000 | fixed | | vehicles | 262756 | fixed | | Depreciation | 5120 | 5 years | fixed | Total PP&E & Deprication | 287876 | | | | | | | TOTAL OPERATING EXPENSES | 659339 | | |

Our long term debt is paid over duration of 2 years and the yearly interest amount is 6%.

Income statement
The sales expenses and costs of good/services increase at a ratio of 15% per year and are shown as follows over a span of 4 years. | Gre3nKarma | Consolidated income Statement | | | Year 1 | | Year 2 | | Year 3 | | Year 4 | Ratio | | | | | | | | | % | Sales revenue | $1,163,760 | | $1,338,324 | | $1,539,073 | | $1,769,933 | 15% | Cost of goods/Service | $58,188 | | $66,916 | | $76,954 | | $88,497 | 15% | Gross Profit | $1,105,572 | | $1,271,408 | | $1,462,119 | | $1,681,437 | | | | | | | | | | | Operation Expenses | | | | | | | | | Sales & Marketing | $81,463 | | $87,166 | | $93,267 | | $99,796 | 7% | General & Admin | $351,200 | | $375,784 | | $402,089 | | $430,235 | | Depreciation | $5,120 | | $5,120 | | $5,120 | | $5,120 | 0% | Total operation Expenses | $437,783 | | $468,070 | | $500,476 | | $535,151 | | | | | | | | | | | | | | | | | | | | Operating Income | $667,789 | | $803,338 | | $961,643 | | $1,146,286 | | Interest Expenses | $5,928 | | $5,928 | | | | | | Earning before Tax | $661,861 | | $797,410 | | $961,643 | | $1,146,286 | | Tax | $92,661 | | $111,637 | | $134,630 | | $160,480 | 14% | Net Income | $569,200 | | $685,773 | | $827,013 | | $985,806 | | Dividends distributed | $313,060 | | $377,175 | | $454,857 | | $542,193 | 55% | Retained Earnings | $256,140 | | $308,598 | | $372,156 | | $443,613 | |

The above figures shows the income statement over the 4 years of our business which illustrates the Sales revenue, Costs of goods sold, gross profit, total operation expenses, net income, dividends and retained earnings.
Cash flow
The following shows the cash flow of our company over the span of 4 years and during the first two years the company is making losses however during the third year profit is made after paying all the invested activities and financing activities.

Balance sheet
The following shows the balance sheet of our company over a span of 4 years and this picture shows the assets of our company which comprises of current assets, non-current assets and intangibles.

This picture below illustrates the liabilities and owner’s equity which comprises of current liabilities, non –current liabilities and owner’s equity over the 4 years.

Break-even analysis
This table shows all the costs that we have for operating our business and are being segmented into variable and fixed cost to calculate our break-even.

The table below shows the price per unit of our product, total cost, total fixed cost and variable cost per unit. Break-even analysis | | | | | | | | Sales | Mini biogas (Portable) | Portable Bio-gas Plant | | 1m3 Digester (Balcony) | | 0.5m3 Digester (Terrace) | | Sales price per unit | $1,272 | | $443 | | $525.81 | | Sales volume per period | 91.49056604 | | 525.3995485 | | 1549.289667 | | Total sales amount | 116376 | | 232752 | | 814632 | | | | | | | | | Total cost | $712,407 | | | | | | Total fixed cost | $635,019 | | | | | | Variable cost | $77,388 | | | | | | | | | | | | | variable cost per unit | $845.86 | | $147.29 | | $49.95 |

The chart below shows the average break even for all 3 products. The break-even units is about 1980 and the break-even is about $1,300,000.

References
Consumer confidence http://www.prweb.com/releases/singapore/consumer-news/prweb10411216.htm http://en.wikipedia.org/wiki/Consumer_confidence
Consumers attitude toward clean energy http://callcenterinfo.tmcnet.com/news/2014/01/02/7614193.htm List of free trade agreements (FTA) and benefits of FTA http://www.fta.gov.sg/fta_ceca.asp?hl=6 http://www.iesingapore.gov.sg/~/media/IE%20Singapore/Files/Events/iAdvisory%20Series/China/4AdvantagesofFreeTradeAgreementsFTAsbetweenSingaporeandChinaforSMEsFinal.pdf
Growth potential of biofuels in Asia region http://www.siew.sg/topics/growth-potential-biofuels-asia http://cleantechnica.com/2012/02/20/report-global-biofuels-market-could-double-to-185-3-billion-by-2021/
Labour laws in Singapore http://www.mom.gov.sg/employment-practices/employment-rights-conditions/hours-of-work-and-overtime/Pages/default.aspx Currency Exchange rate http://www.exchange-rates.org/history/SGD/CNY/G/M http://www.exchange-rates.org/history/SGD/INR/G/M
Demographic Segmentation Data http://www.singstat.gov.sg/publications/publications_and_papers/population_and_population_structure/population2013.pdf Porter Five Forces http://valuationacademy.com/porters-five-forces-in-action-sample-analysis-of-coca-cola/ http://www.strategicmanagementinsight.com/tools/porters-five-forces.html http://www.mindtools.com/pages/article/newTMC_08.htm
India Supplier http://www.samuchit.com/energy-from-wastes/29-arti-compact-biogas-system.html
China Supplier http://puxinbiogas.en.alibaba.com/product/374474579-214346671/excellent_mini_food_waste_treatment_biogas_plant.html Promotion Strategies http://smallbusiness.chron.com/top-ten-promotional-strategies-10193.html http://www.naa.org/Topics-and-Tools/Advertising/Sales-Collateral/2008/~/media/NAACorp/Public%20Files/TopicsAndTools/Advertising/Sales-Collateral-Tools/Ten-Reasons-To-Advertise-In-A-Newspaper.ashx
Market Trends
http://www.ema.gov.sg/media/files/facts_and_figures/2012.03/MSB3.pdf

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