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CMA Young Post Green Manufacturing

CompetitionWriting Business

Proposal(for junior level)

CMA Young Post Green Manufacturing

CompetitionWriting Business

Proposal(for junior level)

Alex ThamAlex ThamTeaching FellowTeaching Fellow

Department of MarketingDepartment of MarketingCity University of Hong KongCity University of Hong Kong

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Recommended Structure of the Business Proposal(25 slides excluding

appendix) 1. Executive Summary2. Company Summary3. Products and Services4. Market Analysis5. Strategy and Implementation6. Financial Plan7. Risk management and contingency

plan8. Bibliography and Appendix

Language• Power Point Report: Chinese or

English• Oral presentation: Cantonese or

English

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Your Task• Be creative! Develop a green product,

outline your concept, the manufacturing process and promotional campaign.

• Your promotional campaign of the product should be creative and include a good variety of media and approaches that are environmental friendly.

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Marketing Scheme (Senior Level)

Marking Scheme Junior Level

Innovation 50%

Originality 25%

Creativity 25%

Commercial Viability 30%

Profitability 10%

Investment Ability 10%

Market Potential 5%

Long Term Growth Potential 5%

Communication 20%

English Paper Presentation 10%(English / Cantonese / Mandarin)

Presentation 5%

Q & A 5%5

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Marking Scheme• Innovation / creative thinking 50%

– Originality / modification (25%)• Is the business idea an original one?• Zero mark would be given if there is

adequate evidence of cheating

– Creativity (25%)• Does it have a creative approach?

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Commercial viability (30%)

• Profitable (10%)– Does the business idea offer an attractive and realistic

opportunity?• Investment ability (10%)

– Does it have a sound business strategy?– Is the proposed technology or skill capable of creating a

commercial advantage?• Market potential (5%)

– Is there a demand for its products services?– Are the market and financial projections realistic?

• Long-term growth (5%)– Does the business have a good growth prospects?

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Communication Skills (20%)

• Paper presentation (10%)– Is the business plan clear and well written?

• Presentation (5%)– Does the team present the business plan

clearly and convincingly?• Response (Q&A) (5%)

– Can the team quickly and appropriately respond to the Judging panel’s inquiries?

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Executive Summary• Highlights of your business• Value proposition (less than 30 words)• Objectives of your business / your

product• Keys to success for the business• Market potential (short term and long

term)• Growth prospects and sustainability

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Company Summary• Valid assumptions• Company Ownership e.g. Limited

Company or Partnership • Start-up Plan, including start-up

expenses, assets and liabilities, investment and total capital

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Value Proposition• A statement summarizing the core

differentiation of one's product from the offerings of competitors.

• A clear statement of the tangible results a customer gets from using your products or services.

• The more specific your value proposition is, the better.

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McKinsey & Company - Corporate Finance - value proposition

• Our value proposition rests on an unrivalled package of strategic, transactional and financial advisory services, uniquely linked with independent judgment and deep industrial/commercial insight.

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Product and Services• Product and Service Description e.g.

special features and functions, technology, materials used and sourcing of products and services

• Any patent, copyright, license needed or acquired

• Future development of products or services

Green Manufacturing• A method minimizes waste and pollution.• CMA – bring green manufacturing to Hong Kong.• Range from solutions for waste reduction and

carbon emissions to ways to use renewable energy such as water.

• Find ways to 'green' industries that already exist or come up with a new concept to manufacture green products.

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Market Analysis• Market Segmentation • Market Potential: Target Market /Customers, ,

market needs and wants, buying behavior, trends and growth

• Competition and major competitors, suppliers, substitutes etc– Who, What (business model, strategy, and entry

barrier)

• Market Research (primary and/or secondary)

Contemporary Marketing, 2005

FB 2601 Marketing

A Famous Story about Marketing Potential:

Marketing shoes• Business all around the world• Find a country where they don’t have their

business there.• According to the secondary data, the

purchasing power is “ok”; able to buy as least one pair of shoes made by this company and the the target population is large enough.

Question– So, what will you do if you are the boss of

this company?

Send a team to have a market survey

Facts – True secondary data – Blue sky, dusty ground• No one wearing

shoes

Question• What is Demand?

Conclusion•No Demand

•No need => No habit => No desire => No market•Same as selling a comb to a monk who has no hairs.•Give up this market

Send the 2nd TeamFacts

– The same facts

Conclusion • A huge market!!! Go! Go! Go!

Question• Why ?

• Currently no competition > Enter it as quickly as possible to get the first mover advantage.• As long as you can sell your benefits to the market, people will buy your products.

Send the 3rd teamFacts

– Same as the previous twoConclusion

– They don’t need it because they can’t see the benefits of wearing shoes.

Question– So, what are the critical success factors to

market shoes there? – What should this company do to market

shoes there?

SummaryTeam Conclusions Concepts

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No demand No market

People buy what you sell Selling concept

People buy what satisfies their needs / solves their problem(s)

Marketing concept

Marketing is the delivery of customer satisfaction at a profit.Kotler & Armstrong, Principles of Marketing, 12h edition

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What is a Market?• Having desire to buy• Willing to buy• Having authority to buy• Having money to buy

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Market Potential• You need users and customers.• Who and where are your customers?• How many? (Now and Future)• Research support• Useful Links on the Internet

Competition• Direct Competitors• Indirect Competitors• Barriers to entry

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Strategy and Implementation

• Specific Objectives, with dates• Marketing Strategy, including product,

pricing, promotion, and distribution• Sales Strategy, with sales forecast and

programs

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Marketing ObjectivesObjective Direction

Measure per month, quarter, or year

To increase unit sales

No. or % increase of product sold

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Financial ObjectivesObjective Direction

Measure per month, quarter, or year

To increase sales volume

Dollars sales per a period of time

Risk and Contingency

Risks Solutions

1. Economic downturn Price reduction

2. Copycat of the products Patent

3. A lot of unsatisfied consumers

Survey and product modification

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Important Notes• Acknowledge sources of reference,

information and data• Attach supporting researches or

documents

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Good LuckGood LuckGood LuckGood Luck