29A

Opportunity

Most recently and also in the last decades, climate change has been of the most important topics not only in politics but in general discussion all over the world. This topic has the perfect background for the opportunity that I saw. Almost everyone in our society is concerned that he or she cannot do much to change the world for better. At the same time many of the same people use plastic in their life. For instance, when they use plastic bottles that they throw away but also when they go to the supermarket and use many plastic bags. For this reason I have come to the opportunity at making reusable bags for supermarkets. This idea came from the fact that I am an international business student from Germany. Back home we have a way better policy regarding plastic bags. Either you have to pay for the plastic bags or the super market offers no plastic bags at all. The market for this is huge since the market is all over the world and for basically anyone who cares for the environment. This can be anyone from young to old. My special targets are young teens or millennials who highly care for fashionable environmentally friendly bags. Customers are currently satisfying this need by living irresponsible and comfortable using non degradable bags that they get for free in the US. They might be very loyal to this current solution since it is easy and cheap for them. The opportunity is huge in my opinion and can grow very big. The window of opportunity will be open as long as people do not change their behavior in this solution.

Innovation

Since the need is there and has not yet been successfully served I innovate in this market and it solves the problem of not doing enough for the environment. It works because it will make people feeling better about shopping and just generally about environmental friendliness. What I am selling is a solution for a better conscience, while helping the environment. This will reduce the use of plastic bags and save countless tons of undegradable waste. It will also be innovative because unlike other producers of plastic bags the company will offer unique and fashionable designs. This will lure customers to the brand, since they difference themselves. The designs will have a wide range of options to be sure that everybody finds something that suits him or her. By combining fashion and helping the environment we will create something that has not yet been fulfilled. Some customers might not even know that they need this. Therefore we will also charge a premium price on our products, which is also one of the differentiations from other brands.

Venture concept

Customers would switch to this product because is combines two things. It is fashionable and helping the environment at the same time. This will make customers twice as likely to choose our products over those of competitors. They will agree that the idea makes sense and through interviews and surveys this has been shows. We asked many people what they think about this idea. Their response was that this is exactly what they would need to change their behavior in grocery shopping and plastic bags. One of them even said that they would tell all their friends and show them how important this idea this. Those opinions have showed that this makes indeed sense, since we found support for our hypothesis that this will lure customers. It will be hard to switch some of our customers but through strategically implemented marketing there will be a way. Since I have taken various marketing courses previously I am certain that I will achieve this goal. Moreover, mouth of word and hearsay will play a big role in our business. The most important marketing strategy though is social media. Getting many influencers wearing our shopping bags and representing them on platforms such as Instagram will make it possible for our brand to grow. However, this might be costly since influencers charge high fees. Therefore, our idea is to send them out to many of them for free and hoping that they will wear it during one of their Instagram posts. After seeing them online, many customers will find their way to us. Internet is one of the most important developments in the entrepreneurial culture.

Our most important and strongest competitors are supermarkets who do not want to sell our bags, and other bag producers who are simpler, cheaper and sometimes even free gifts. Their weaknesses that they all have in common is the fact that they are not fashionable and often made of low quality materials, such as cotton that easily gets destroyed. One feature that we also want to implement is a coating that will make frozen and hot products stay that way until the customer gets his groceries home safely, which is most often between 1 and 1 and a half ours. They are also vulnerable because none of the manufacturers of shopping bags is present on social media just yet. Moreover, normal bags such as backpacks are often used by people who do not want to harm the environment by using plastic bags and hence we will lose plenty of market share. Packaging will be kept simply, by just providing the bag and some paper with our brand and our mission statement which is : To make shopping experience more environmentally friendly. Simple packaging is good to attract our market as said by many interviewees of us. Price point will be at around 5-10 $ depending on size. This premium price will make customers curious about the benefits which have been outlined before. Distribution will happen through the company that my dad works for, which is a global supply chain company who have their customers such as supermarkets anyway. Hence, it will also be easier to talk to executives at the supermarkets that I am targeting, since they are already familiar with the company. Customer support will happen online and will be completely free. A respond will come within 1 to 2 working days which means that customers will quickly be helped. The business location will be home office since renting an office will be very costly. This cost can be used otherwise, such as travelling to asia to find manufacturers for our bags. This place will most likely be Vietnam, since this is my families home country, I speak the language and know the culture. The bags will first be offered in Gainesville and depending on the reception we will expand nationally. Human capital is our most important concern, because in my opinion start up success depends solely on the capability to form a business with an open minded culture which needs highly talented employees. Me as a finance student can deal with financials, convey investors my idea and manage funds. Next to that I am hiring my best friend who I think is one of the smartest people I have met. He will support me in any way possible. He would be like the second founder and also responsible for all employees. Next to that we need a designer, who in my case will be an art student. This is important to get the most wanted design that people expect from my company. To do so you have to know demographical differences, which means that surveys and interviews are most definitely important. Most importantly, my dad will be the advisor for all concerns. He knows how to deal ad hoc with problems and provide me with connections that I need for my supply chain. This for now is the team to launch the prototype in Gainesville supermarkets. Especially in higher priced supermarkets such as publix or whole foods people also want to help the environment which is why this is the first target for us.

My secret sauce will for sure be human capital and my dads knowledge in supply chain. Moreover, the opportunity of an underserved market!

Next for the venture is expanding to different areas. Because we will have a small margin, size will make the difference.

I will put all my energy in the idea for the next five years and try not to sell my venture.

Based on the last venture concept I solely got positive feedback but still tried to improve this time.