Eviel & BioOrganic Baby Products

Contributor : Rahul Kumar, Marie, Sophie, Iris, Rwn Agg

Index Concept, Value Gap/ Competition Gap, Goals Target Group/Customer and Market, Positioning Drivers Products, Assortment, Compromise effect & pricing strategy Competitors Study, and channels Store Concept, Location, Format Supply Chain Store Layout, In store presentation (space productivity : sessionS4P39 Financial Feasibility Analysis KPI development Communication, Loyalty Experience, Branding

The concept Concept: Making available the safe, organic and natural products for childcare

Target Age (end user of product) : 0-3 Years child

Pricing: Moderate to high

Value gap/Competition gap: Though there are players in organic product market, they are scattered and non-focused. Our offering will be targeted to Kids, and we will make available all products for childcare till the age of 5 year.

Goals: To become a most trusted and liked brand in the segment.

Value Proposition Nothing suits your body better than organic and natural products. When it

come to babies, they are even more vulnerable/sensitive to harmful chemicals present in the general off the shelf products available for child consumption or use. When you care so much about your baby, then why don’t you care about what they eat and what they wear. Our products are certified organic and natural which will not give any harmful effect on your babies. When you shop at ours you can be rest assured for it to be completely organic and natural. Being a mother or parents takes a lot of effort to raise your child, and sometimes you don’t know what is good and what is bad for your kids, come to us we will give you the information on how to take care of your child.

Gifting is always great especially when you are gifting something to your loved ones child, make sure it what they need and what is good for them. Because a gift is as good as no gift if the recipient don’t need it. Come to our store you will get to know or we will tell you what should you gift to your loved ones child.

Eveil&Bio: The ConceptTHE STORE NAME

The store name is directly linked to the store mission: promoting the organic baby growing up. The name is composed of two french words: “Eveil” means “awaking” with a strong connotation in french to the first days of a babylife. It is usually said French that baby become aware at the world. “Bio” means “Organic”. Because our identity is to be an organic retailers we decided to put “Bio” directly in our store Name to create a clear and strong organic identity.

THE LOGOOur visual identity is based on a bicolor logo that illustrates the close relationship between a mother and her baby. The two faces are looking at eachothers and represents the close and tender relationship that it could be between mother and baby..The mother face is located over the baby one on the logo to evoke a protecting relationship. The message of this logo is to protect your baby with Eveil&Bio. The leaves that form a circle around the two faces create privacy atmosphere and a kind of protection feelings. The message is “Nature protect and conserve your baby relationship”. Also the circle is a symbol of harmony and wholeness, it is “a green world for you and your baby”.The colors: natural colors. The green is a reference of the green way of life and the Nature. and the Lavand purple evokes a private atmoshpere. It is also a flower color and evokes also Colorful Nature.

Eveil&Bio“A green world

for you and your baby”

Our Core ValuesFAMILY

Parents and Babies

Family is our core value. Focused on the baby development and the pregnancy, Eveil&Bio would like to be an effective support for parents to help them to take care for their growing babies, by informing them, making baby organic products more available and by transforming the parents’ shopping experience in pleasure and easier task.

LOCALEveil&Bio food assortment is in part built on partnership with local producers. Also, the role of Eveil&Bio is to promote green way of growing babies in the city where the store is located, that is why Eveil&Bio stores are supposed to be a local and informative platform where parents can learn the good ideas or places to go to grow their baby up in green way.

FOR NATURE AND FUTURE

green, sustainable, organic

To be in accordance with our NATURE value, Eveil&Bio try to promote greener way of living by making organic and ecological more available for parents. Eveil&Bio wants also to inform parents better about organic way to grow up babies to make organic purchasing an habbit. Finally all the Eveil&Bio assortment must be organic or at least ecological.

Target Group/Customer and Market, Positioning Drivers

Target Group (TG) : City dwellers with high or middle purchase power TG1: Pregnant women TG2: Newly become parents TG3: Grand parents and relatives of born or unborn child

Market: Our first two stores will be in Paris and Lyon. We did the study and found out lot’s of market potential of in two cities.

Positioning & Driver: Informative store, satisfying the needs of Green-lifestyled people. Key positioning driver- everything you need for your kids under a roof and continuously refreshing stock People are aware that some products can be dangerous to their kids 94% of baby wipe and toilette lotion for baby tested by the association

UFC- que choisir were proved dangerous for new-borns . source the figaro sante

Profile of Our Target Group Individuals TG1: Pregnant WomenMonica: She is a working women, 27 years of age and very soon going to be mother. She works in a bank and has very less time to take care of herself. She always uses organic and natural product for herself and thinking of using the same for her kid too so that she doesn’t have to care about other things like how the product and chemical present in them is going to harm her kid and herself. She is positively thinking about using the same organic and natural products for her kid as well.

Image Source : www.thebreastcaresite.com

Profile of Our Target Group Individuals

Image source: http://www.freshlytechy.com/

TG 2: Newly Become Parents:Raphaël and Camille aged 32 and 30 have recently became parents and loves their child very much. Raphaël works in a leading auto company in Paris whereas Camille works in a consultancy firm and has to travel a lot. Both of them have heard about the chemicals present in the food and other items and their harmful effect. One of Camille’s friend has also recently become parents has told her about the benefits of organic products. She is seriously thinking about using organic products for her kid and herself from now on and has convince Raphaël too. She doesn’t know much about where can she find these product and skeptical about number of store she has to visit to get all things for her kid.

Profile of Our Target Group Individuals

Image Source: www.grandparents.about.com

TG3: Grandparents gift to their grandkidsMitt and Ann are the 68 and 67 years old grandparents to two kids of 4 years and 1 years old. The youngest kid is going to have her first birthday in 3 days and Mitt and Ann are trying to gift them something which is useful for the kid but they don’t know what they can give. They can come to our store and know about what kids parent want from our database of wish list which every parent share with us. Not only person like Mitt and Ann, other relatives can also come to our store to know about the wish list of going to be parent or a parent.

Organic and Natural Product Market in France Organic exploitations and Customers of organic or ecological products are

increasing. The French organic product market now represent 5.5 billions euros in 2015 and increased at 10% from 2014 level1.

Agence Bio says that “With almost 9 out of 10 French consuming organic products, of which 6 out of 10 is at least once a month, organic consumption is anchored in French people’s habits”.

France is the second largest bio market in the European union and the second producer. 76% of organic produce consumed is “made in France”.

Source: 1. http://www.organic-europe.net/

Organic Product Market in France & Sales Channel

Source Image1 : http://www.sial-group.com/News/Food-Beverage-News/Food-beverage-industry/Organic-farming-A-market-that-is-still-going-strong

Image 1: Organic Product Sales and channel

• Sales of Organic product and acceptance by the consumer has been constantly on rise.

• Recent trends shows that growth in specialized stores outnumbers the growth rate of sales of organic products in the big format retail stores.

• Similar to the demand of organic food products, natural and organic non-food products has also been increasing.

Competitors Study, and channels

Channel Options: We will have retail channel in the format of brick & mortar only, though customer’s can see our current and upcoming offering on our website and can associate socially on the website with other customers.

Direct competitors Indirect Competitors “autour de bébé” Naturabébé -

http://www.naturabebe.com/

  “The Ultimate Green

Store” online Simply green baby :

online babygreen :

Large scale retailers (green departements clothes and food)

Green stores (La Vie Claire)

Stores that sell some green stuffs (Nature et Découvertes)

Baby stores with common products

DIY

Products, Assortment, & pricing strategy

We intend to provide, all the natural & organic products a parents need for raise their child (age group 0-3) except medicines and school books.

Assortments : Complementary assortment- not a lot of brands, but a lot of different products

Categories : BABY FOOD CONSUMABLES : baby food (puree), candy, milk, powder milk, Milk, cereals ACCESSORY  : Baby Food Accessories, BABY PERSONAL CARE & HYGIENE : diapers, soaps, Lotions, oils, alternative medicines BABY HARDWARE : baby bed, pushchair, a play pen (un parc à jeu) BABY TOYS : BABY APPAREL : clothes, baby blankets, a bib (une bavette FR) CUDDLE TOY : teddy bear, a huge collection of cuddly toy BOOKS : books about green, books on childcare tips GIFT PACKS: for baby shower and other occasions

Pricing Strategy & Additional Services Pricing Strategy: Higher quality and higher price than normal baby project, and multiple product

in same category (3 price points at least for each category)

Additional Services: 1. Crèche facility for mother with children where they can leave their child while

shopping

2. Childcare tips, Doctors Consultation arrangement.

3. Weekly gathering of mother – only with prior booking to avoid crowding in the store

Store Concept, Location, Format Store Concept: Our store would be trendy at the same time giving the feel of safe &

natural product and environment.

Location : Our stores will be located inside a shopping mall, with 800-1000 sq. meters of floor space area in both the location (Paris & Lyon).

Format: The store will of the format of of small size hypermarket.

Store Concept, Location and FormatSTORE

CONCEPT Eveil&Bio is:

A GREEN STORES CLOSE TO MOTHERS AND BABIES

The concept of a Eveil&Bio store is to be a comfortable place, dedicated to mothers

and babies. That is why, our stores are build to make mothers’ shopping time

easier, quicker and funnier.

Our store is also a local and informative place where parents can learn how to

grow up their children in a green environment in their own city and region..

A CONFORTABLE PLACE DEDICATED TO PARENTS AND BABIES

Eveil&Bio store is a confortable and attractive place that give the wish to go shopping, because it is practical and nice designed. The space is organised to quickly see the product that parents want, in an open place. The atmosphere

do be also attractive. A place dedicated to mothers and babies. Our stores propose some additional

services like a area dedicated to push chair arrangement. Eveil&Bio also propose its own concept of basket caddy to make shopping

practicable with young babies. Everything is organised to make shopping easier, faster and more confortable for parents.

AN INFORMATIVE PLACE, ROOTED IN LOCAL PRODUCTOR NETWORK

A local and informative place where local organic productors can promote their way of doing. We also work with doctors and organize some meeting with

them.

Store Concept, Location and FormatAN ARCHITECTURE & MAINTENANCE IN

ACCORDANCE WITH THE ORGANIC ETHICS

EVEIL&BIO requirementsA strict selection of the used building and decorative materials.

Furnitures and decorative elements of the store should be made with ecological materials and in ecological way.

Eveil&Bio the way of doing - Technological innovations: ECOLABEL paintings, ecological

Energy control- Store maintenance with ecological and organic products- Waste management: Recycling, partnership with other

companies or public institutions that have their own

AN INFORMATIVE PLACE, ROOTED IN LOCAL PRODUCTOR NETWORK

The colors are natural ones: CREAM, BROWN, GREEN, LAVAND PURPLE.Some graphic elements from Nature are painted on walls and

composed the decor: TREE, FLOWERS, LEEVES

STORE CONCEPT Eveil&Bio is:

A GREEN STORES CLOSE TO MOTHERS AND BABIESOur store is built according to green and

ecological way of doing.

That is why, our store promote the green and ecological way of life through a modern

and design decoration and atmosphere.

Store Concept, Location and FormatLOCATION

Find Eveil&Bio in:CITY CENTERS,

HISTORICAL CENTERS & ECO- DISTRICTS

OF FRENCH METROPOLISES & CITIES

First, we decided to target cities more than malls because malls don’t fit with our natural and proximity image.

Eveil&Bio is supposed to be a GREEN brand, CLOSED TO mothers and babies. And malls are based on consumerism

values.

Moreover we decided to implement our store in city centers, historical centers & eco district to reach our first

target better and to stay consistent with our proximity value.

FORMATWhat does Eveil&Bio store

look like?Large and confortable store between 250 and 500 m2

Due to the location of Eveil&Bio stores, in cities center, there cannot be a fix economic model of store.

Especially the size can change and the shape also. But, as other stores with similar size, like La Vie Clair,

Eveil&Bio stores evolve between 250 and 500m2.

How many clerks? depending on the size of the store, there should be around 3 or 5 people at the same time to be at the cash machines, on merchandising shelve activity

and in stock.

Cash machines: there is between 2 or 3 cash machines, depending on the demand and the need.

Store Layout & Store OrganizationEveil&Bio store is divided in 3 main areas:

- NON FOOD : toys, accessoires, clothes for babies, children and pregnant women.

- DETERGENTS & BABY CARE PRODUTS : non food products with peremption date.

- FOOD : baby foods, powder milk, biscuits, compots, puree and alimentary complement.

Store Layout & Store Organization• The First Area (green) is supposed to be a

cocooning and very attractive area where baby soft toys, baby accessoiries and baby clothes will be well displayed to lure customers. The concept of a soft toy tree is a good example. In this place, thanks to islands system, every product can be visible from far.

• LOTION & BABY CARE AREA is also organised to display product and lure customers. Only one part of the dippers department is not well enhanced because dippers are high necessity products for new-birth parents.

• THE FOOD AREA is organised as an open market, with shelves and a central island for promotional products. And Near the cash machines, there are some eating stuffs with high margins.

Overall Store Layout- Description

ACCESSOIRY PART:Accesoiries for eating, washing, books about organic

THE CLOTHES CORNER with departments for girls, boys, pregnant mothers, birth and baby underwear.

THE TEDDY TREEDisplayed teddy bears and soft toys on a wood handmade tree. Nice presentation to lure customers and kids.

BABY BEDROOM CORNERBlankets and sleeping accesoiries for baby bedroom such as night lights.

BABY MILK:Powder milk and others. Near the stocks.

PROMOTION CORNER:Food products have peremption date, and we can make promotion for the soon perempted products.

BABDY FOOD:puree, yogurt, bottle juice, compot.

LOTIONS AND BABY CARE PRODUCTS

DIPPERS SHELVESorganic dippers in fabric or to waste for 0-3-year-old babies. Near the stocks.

Store Layout- Artistic 3-D View

Sectional Store Layout- Artistic 3-D View

Sectional Store Layout- Artistic 3-D View

Store Layout- Margin & Space Productivity

Supply Chain of the Store Supplier’s:

We will deal with only certified supplier’s willing to make short term contract for supply ( max 2 years)

Supplier’s would be responsible for delivering the product to our warehouses/store. In case of fresh/perishable product direct store delivery term (No hard rule, if FOB option is

cheaper we can explore that as well) Logistics:

In most of cases ideally logistics till the warehouse will be handled by supplier, otherwise we will outsource the logistic function

Last mile delivery to the store will be done and managed by outsourced vendor. Warehousing: For our two stores we don’t need bigger warehouse

and single warehouse in the outskirts of Lyon will serve both the store.

Financial Feasibility AnalysisParis AssumptionsPopulation 11.7 metropolitan areaCity dwellers (Inner ring) 4.4

central, covering depts. 75, 92, 93, 94

City dwellers women 2.2 50%City dweller women (25-40) 0.88 40%married 0.616 70%high purchanig power 0.308 50%TG1 0.0462 15%TG2 0.0462 15%TG3 0.0616 20%Total TG 0.154

Our markup on market price

Yearly spending on 1 baby 2000 1.3Yearly spending by to be mums 3000 1.3

Eveil&Bio

CASH FLOW PROJECTIONS (in million Euros)  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

CASH REVENUE

           

Conversion of TG (all)

3% 5% 7% 10% 12% 15%

Revenue TG1 3.60 6.01 8.41 12.01 14.41 18.02

Revenue TG2 7.21 12.01 16.82 24.02 28.83 36.04

Revenue TG3 7.21 12.01 16.82 24.02 28.83 36.04

Financial Feasibility Analysis : Cash FlowCASH FLOW PROJECTIONS (mn euros)

 CASH REVENUE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Conversion of TG (all) 3% 5% 7% 10% 12% 15%Revenue TG1 3.60 6.01 8.41 12.01 14.41 18.02Revenue TG2 7.21 12.01 16.82 24.02 28.83 36.04Revenue TG3 7.21 12.01 16.82 24.02 28.83 36.04TOTAL CASH REVENUES 18.02 30.03 42.04 60.06 72.07 90.09CASH DISBURSEMENTS            1 time Startup Costs+maintainence 0.60 0.10 0.10 0.10 0.10 0.10Cash Payments to Trade Suppliers 15.02 25.03 35.04 50.05 60.06 75.08Salaries and Wages 3.00 3.00 3.00 3.00 3.00 3.00Promotion Expense Paid 4.00 3.00 2.00 2.00 2.00 2.00Professional Fees Paid 0.50          Rent/Mortgage Payments 0.50 0.50 0.50 0.50 0.50 0.50Insurance Paid 1.10 0.10 0.10 0.10 0.10 0.10Utilities Payments 0.02 0.01 0.01 0.01 0.01 0.01TOTAL CASH DISBURSEMENTS 24.74 31.74 40.75 55.76 65.77 80.79RECONCILIATION OF CASH FLOW            OPENING CASH BALANCE 7.00 0.28 -1.42 -0.13 4.17 10.48ADD: TOTAL CASH REVENUES 18.02 30.03 42.04 60.06 72.07 90.09DEDUCT: TOTAL CASH DISBURSEMENTS -24.74 -31.74 -40.75 -55.76 -65.77 -80.79CLOSING CASH BALANCE 0.28 -1.42 -0.13 4.17 10.48 19.78

Financial Feasibility: Assumption and Results

We have done calculation for the city of Paris and assumed all things will be proportional for Lyon.

Revenue conversion from the target group has been taken as per expected increase in demand.

Startup capital required will be 7 million Euros and we will achieve breakeven in 3 years time.

We have ignored the factor for inflation and gross overall profitability has been assumed to be 30%.

KPI developmentQualitative KPI Quantitative KPI

Customer Satisfaction EBIT- Operating Profit Margin

Store Ambience & presentation GMROI

Customer Complaints Handling Customer Retention

Inventory shrinkage/Loss because of rejection

Sales/sq. foot area

Sales Per Employee

Variable cost (to be matched to industry bench mark)

Qualitative KPI’s Qualitative KPI’s which we will measure is mainly following three

Customer Satisfaction: Customer satisfaction will be our main motto, and one of the most important KPI in store manager performance evaluation.

Store Ambience & Presentation: Nobody like to go to unpleasant store, hence we decided to keep this parameter as a KPI for our store and it will be measured against the our own set of guiding parameters.

Customer Complaints Handling: However we put effort complaints are inevitable, it will be our continued endeavor to reduce the complaint handling, and we have kept this KPI, to reduce the number of unsatisfied customer and guiding ideas for our stores in the area of improvement.

Quantitative KPI: We are not in a philanthropic business and numbers do matter for us. To keep our self

growing and sustainably profitable we have decided to measure following KPI for each store. EBIT- Once we breakeven and start making profit, our target EBIT would be >20% GMROI- In any retail business ROI doesn’t gives the clear picture of return, we intend to have it

between 1.5 to 2.0 Customer Retention : For any retail business customer retention is as important as customer

acquisition, and customers are always have a tendency to switch, we plan to have 30% customer retention in initial years which will go up to 50% in an increasing step of 5%

Inventory Shrinkage: Inventory shrinkage is like plague to retail business, and to keep our business profitable we intend to have it below 2% level

Sales per Square Foot: It will be kept as per industry standard. Sales per Employee: As per the desired sales target given to each store sales per employee will

be decided at the beginning of the year. Variable Cost: Fixed cost is what we barely do anything more about, so we have kept variable

cost as a KPI, and it’s level will be decided annually to meet the profitability and EBIT target.

Communication: Before Store Opening

Mass advertising one month before opening of the stores in two cities, metros, bus stops, banners and hoardings.

Newspaper and electronic media advertisement to make customer aware of the opening of the store and it’s address .

Advertisement and articles in Childcare/Parenting magazines.

Road painting in the direction of upcoming store. Coming-soon Ad on doors and window of upcoming

store.

Communication : Store Opening Ceremony After creating a buzz in the city about the

upcoming store, opening party for the store will be equally exciting.

We will invite guest doctors, media person, blogger, child care specialist, Crèche service provider.

We will distribute childcare magazine specially prepared for the opening ceremony.

Free sample of food items. One plus one offer on opening day purchase for

non-food items.

Communication: In Store Organizing fortnightly meeting

for registered mothers to exchange their ideas on child care.

Organizing health check-up in association with the trained professional, for a nominal charge.

Organizing knowledge event by some renowned person in this area.

Awareness development program towards the use of organic and natural products.

Telling about the benefits of our products and the harm that regular product may cause.

Healthy kid competition, promote the awareness among mothers.

Sending text message to registered customer, reminding them on several due date related to purchase and child care

Communication: Special Events To reach new mothers or future mothers and create WOM (Word Of Mouth) communication

we decided to launch a instagram campaign about our given presents to new mothers and their babies. To congratulate new mothers and make them discover organic products for their babies, Eveil&Bio offer them a new birth baby box with informative flyers, tester lotion products, and organic baby underwears and dippers.

If the mother accept to take a picture of them with their just-given present in front of our logo in the store and share it on istagram they receive -10% on the clothes assortment for their next coming.

This Instagram picture campaign is about the joy to be mother and illustrates the given presents. Mother can learn our offer through WOM effect.

“Come with your new-birth baby in our store and recieve a congratulating present”

Experience As soon as customer enters the store they should feel a warm welcoming atmosphere which

looks connected to the nature.

Cocooning area at the entrance of the door should make them feel like home.

Our dedicated support staff will gently take the baby from parent to make free while shopping, also parents would see themselves at the entrance how well the babies are taken care off.

With every product a comparative information against normal supermarket product will be there, so that customers can easily understand the benefit.

Skilled sales representatives will keep a watch on them and reach them only when they feel that customer needs any help or suggestion.

Loyalty Loyalty scheme:

1. Consumer card having history of their purchase, and half yearly and annual purchase volume discounts, i.e. if they purchase worth a particular amount in half year or over a year they will get a discount or credit on their card.

2. Consumer wish list Program : Customer can make their wish list on our website and share it with their family member and friends who wants to gift them.

3. In-store suggestion on baby care and child birth for registered customers

4. Conferences in association with nearby eateries/libraries at a marginal prices.

Branding: Store Visualization of stores:

Store will have two doors, and full glass front. Interior’s of the store as seen from outside would be intriguing and color patterns would

give feel of closeness to the nature. Most the material use in the store would be natural.

Organization of Space Large space 800-1000 sq. meter, Special crèche area where you can leave your child under store person supervision and

do hassle free shopping. Layout would be fully organized on the category with easy navigation.

Establishing a Brand IdentityUnique Store

Presence

Advertising Campaign focused

on benefits of Organic Products

Special Green Packaging

Green Logo- mother and a child

on green earth

• Many Brands have been successful in establishing brand recognition and recall by using efficient and attractive packaging.

• To establish the same we will have

• Customized product packaging : Green Color

• Private Labels to increase the brand awareness and profitability.

• Child care tips leaflets, to distributed to potential customers

Brand and Social Media Campaign: