Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Re-Eco Business Plan Presentation
1.
2. What is Re-Eco?
An oral hygiene company that
provides environmentally
conscious products featuring
the latest American Dental
Association approved design
elements.
3. Our earth-friendly
toothbrush features:
An interchangeable
toothbrush head
100% post consumer
recycled materials
Modern design elements
4. Our Team
CEO
Christopher Cote
Director of Engineering
Nelia Sousa
Director of Sales & Marketing
Jessica Pattie
Director of Operations
Ashley Evans
Director of Finance
Junbing Ye
Director of HR & Administration
Yilin Jin
5. What Do We Stand For?
Our Mission:
Our mission is to provide ecologically friendly oral
hygiene products while remaining on the cutting
edge of dental technology
Our Values:
• Providing Quality Recycled Oral Hygiene Products
• Satisfying Our Customers
• Fostering Employee Growth
6. Industry Analysis
10,000,000 toothbrushes were sold in 1998
4.4 Billion people in the world use
toothbrushes
2.3 Billion people replace their toothbrush
every year
Guests today are well informed about
recycling, eco-friendly materials,
conservation, and disposal.
Source: Neustel Law Offices, 2011
8. Competitive Analysis Grid for Re-eco
Direct Competition
Radius The Environmental
RE-eco Source Preserve Toothbrush
Product features (replaceable
head) X X
Product attractiveness
(appearance) X X
Impact on the
environment X X X X
Social responsibility X X
Brand name recognition X
Marketing avenues X X X X
Access to suppliers X
Access to distribution X X X X
Design attractiveness
(effectiveness) X
Price X X
Effectiveness X
10. Competitive Analysis Grid for Re-eco
Indirect Competition
Oral - B
Colgate Pulsar Arm and Oral - B
Sonic Pro Hammer Colgate Cross Spin Reach Reach By
Power Health Spin Brush 360 Action Brush Total Care Design
Product features
(replaceable
head) X X X X
Product
attractiveness
(appearance) X
Impact on the
environment
Social
responsibility
Brand name
recognition X X X X X X X X
Marketing
avenues X X X X X X X X
Access to
suppliers X X X X X X X X
Access to
distribution X X X X X X X X
Design
attractiveness X X X X X X X X
Price
Effectiveness X X X X X X X X
11. Re-Eco’s Competitive
Advantage
Environmental impact
Provide consumer with an avenue to reduce impact of the
environment
Cost efficient
Replaceable heads allow Re-eco to offer their product at a
value to the consumer
Effective bristle design
Visually appealing design
Glass handle design will be adaptable to the consumer’s
bathroom décor
12. Survey Results
83% people typically purchase a
manual toothbrush
67% people accept paying between $5-
$8 for their toothbrush
90% people expressed interest in an
eco-friendly toothbrush
70% people collect their information
from advertisements
13. Operations Plan
April, 2012:
Toothbrush design
Sample of target market/marketing
Hire production workers
May, 2012:
Website design
Warehouse move-in/begin to manufacture
June, 2012:
Whole Foods contract signed
Shipping to Whole Foods begins; sales begin to generate
July, 2014:
Hire management
July, 2015:
Expand to Target
14. Distribution Channels
Wholesale through Whole Foods
- Products will be available in 58 Whole
Foods stores
Direct sale through company website
- A secure website
16. Product & Price
Product:
The brush is made of a lightweight glass base, with an
interchangeable head; both pieces made from 100%
post-consumer recycled glass and plastics
Retail Price:
$7.75 for the first toothbrush (head already in place)
$5.75 for 2-pack replacement heads
Wholesale Price (Whole Foods):
$6.20 for the toothbrush
$4.60 for the 2-pack of toothbrush heads
18. Start-up Funds
$240,000
(Owner’s investment of $180,000; commercial
term loan of 60,000)
Equipment: $124,000
Vehicle: $25,000
Pre-pay expenses: $25,000
Deposit of plant rental: $5,800
Inventory: $31,665
Working Capital (cash): $28,535
19. Estimated Price & Quantity
Wholesale Direct Sale
Brush Projected
Year Product Brush heads Revenue
Toothbrush heads Toothbrush
(2-pack)
(2-pack)
Price $6.20 $4.60 $7.75 $5.75
Year
Quantity 42,000 58,000 12,000 20,000 $735,200
1
Year
Quantity 45,360 62,640 12,960 21,600 $794,016
2
Year
Quantity 49,896 68,904 14,256 23,760 $873,417
3
20. Income Statement
Year 1 Year 2 Year 3
Revenue $735,200 $794,016 $873,418
Net Profit $30,584 $58,113 $64,493
Profit Margin 4.16% 7.32% 7.38%
Total Cost of production (50% of revenue)
Include cost of material, manufacturing labor.
Marginal Cost
To produce a toothbrush is around $3.80
A 2-pack brush heads is around $2.20
Total Expenses (42-45% of revenue)
Payroll 13%, Rent 10%, Advertising & Marketing 5% , Utilities 4%, R&D 3%
21. Balance Sheet
Assets
Steady increase in current asset
Account receivables and Inventory increased accordingly.
Fixed assets remain the same, depreciation was
calculated using straight-line 3 years
Liabilities
Loans of $60,000 at the beginning, it reduced every year
as we make repayments
Account payable increased
Shareholders’ Equity
Stable & steadily increasing
Ratio Analysis
Total Assets to Total Liability ratio: 3.66 in Yr1 4.75 in Yr3
Total revenue to Fixed Assets ratio: 4.9 in Yr1 5.86 in Yr3
22. Cash Flow
Majority of cash are generated from operating
activity.
Investment activity stays the same as the beginning.
Some cash is paid out for the repayment of loan.
Overall, the projected cash flows indicated that the
company could be able to generate cash from its
operation.
Ratio Analysis
Operating Cash Flow to Total Average Liability ratio:
1.28 in Yr2 1.67 in Yr3
24. Risk & Contingency
• Design Malfunction
• New Competitors
• Raw materials shortage/price increase
Notes de l'éditeur
Presented by:Christopher CoteAshley EvansYilin JinJessica PattieNelia SousaJunbing Ye
We place extreme importance on our high quality standards and our goal is to continue to raise the bar. We view quality as the backbone of our company; by using the highest grade of recycled materials available we are able to provide Re-Eco customers with an unparalleled level of quality.
Consumer’s growing concern for the environmentPreserve - Recycled plasticThe Environmental Toothbrush - Made from renewable resource,bambooRadius Source - Replaceable head
Provide products that fulfill the needDo not target the environmentally conscious consumer
- Original drawings, Nelia will be in charge of. May go through multiple models.Jess will conduct focus groups within our target market, as well as attend industry trade shows to showcase the product. Marketing for our product will begin (MBTA, Farmers Markets).Workers will be hired to work the machinery, including packagingAshley will be in charge of the website design, and setting it up for online orders. Build social media.4,500 toothbrushes, and 6,500 toothbrush heads, by May 31. Chris will be in charge of signing our contract with Whole Foods with the North Atlantic and North East regions. We will deliver the toothbrushes bi-weekly to Whole Foods’ distribution center, located in Connecticut.Providing to NE states (with NY & NJ) will give us a great head start to the local Northeast area, allowing us to grow locally before expanding.In 2014,our projected financials will allow us to hire a Management team to help us run our facility and the production of the toothbrushes. We will hire 3 managers, whose titles we will decide upon once we start to produce.Hope to expand to Target by 2015.-
- Whole Foods in the states of Connecticut, Maine, Massachusetts, Rhode Island, New York and New Jersey.- Website will allow customers in USA and Canada to shop online for our products.
Leased facility in Cambridge, MA. 6th friendliest eco-friendly community in the US (treehugger.com)Close to Boston, airport & water for our shipment needsTarget market is also to college-aged students (the most eco-friendly population). Cambridge is home to Harvard, and close to other college communities
Product:Features a sleek, glass base, which is designed to be displayed in our consumers’ bathroomsThe first toothbrush purchased will come with the toothbrush head already in place. When the consumer changes their toothbrush head, they can purchase replaceable heads, which will be self-addressed for the consumer to send the used products back to Re-Eco Oral HygieneThe new, interchangeable head is easily inserted into the base, and then clicked into place by the consumer. Drops the used toothbrush heads into their mailbox, and they are sent back to our warehouse to be recycled and used to produce more toothbrush heads.Our plastic bristles in the toothbrush head is designed to effectively and safely clean teeth, providing an overall, thorough cleaning each useEach Earth Friendly Toothbrush is packaged using 100% recycled post-consumer cardboard and plasticPrice: goal is to deliver our toothbrush to customers on competitive pricingIndividual sales: in store, and through website. Wholefoods, warehouse pricing benefit of 20% off retail price.
MBTA: 250 million riders a year through bus line & subwayFarmer’s Markets: shows our commitment to being local & involved in the community. Great way to advertise at a low costColleges: hitting our target market with free samples, which will encourage future use Tradeshows: membership to American Dental Society, $133, low cost to reach our industry.
Warehouse Trauma:Renting building as opposed to buying.Insurance to cover fire, and weather related damages.Landlord will be responsible for some building damages as well.Equipment Damage:Purchasing equipment through Wan Hsin Toothbrush Machinery Manufacturing Company.Support contract/warranties have been purchased – Wan Hsin responsible for all repairs, replacements, and maintenance.This will ensure efficiency remains high, product is consistent, and machinery is in compliance.
Design Malfunction:In house Engineer will review the malfunction and revamp the design.Contractors hired if necessary.New Competitors:Continue to release the best product available.Patent for specific designContinue market surveys for product feedback.Continue to evolve the design to meet our customer’s ever changing wants and needs (based on survey results).Raw materials shortage/price increaseDo not see a cardboard or glass shortage.For price increase we will rely on our in house Engineer for redesign to use less raw materials.
Chris to moderate questions from panel to group members. Thank you!
