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BUSINESS
PROPOSAL
Together, We Grow




Presented by: Hui Shan, NG | Clara, PUAR | Nicole, KOO
00 O’RAN PTE LTD
        The company




 O’ran Pte Ltd | Business Proposal Together, We Grow   2
00 O’RAN PTE LTD
        Say oh-ran




                                   • “O’ran” - inventive word
                                       • Oriental + 然 (ran) or “natural” in chinese
                                   • “As Bare As You Get”
                                       • Unconcealed, naked, no addition
                                       • Associates bare skin with our offerings




 O’ran Pte Ltd | Business Proposal Together, We Grow                                  3
00 FACES OF O’RAN
        Key personnel




                                           Hui Shan, NG
                                           Managing Director
                                           Deputy General Manager, Finance




                                           Clara, PUAR
                                           General Manager, Sales and Marketing




                                           Nicole, KOO
                                           General Manager, Administration and Operation



 O’ran Pte Ltd | Business Proposal Together, We Grow                                       4
00 AGENDA
          An overview of today’s presentation
                                                                                    9 Future
                                                                                    Outlook


                                                                7 Financial
                                                               Management
                                           4 Strategic                              8 Exit
  2 Competitive                                                                     Plans
     Analysis                               Analyses


                                                                            6 Operation
                            3 Brand DNA                                     Management

 1 Background                                              5 Marketing
and Introduction                                         Strategies / 4Ps

   O’ran Pte Ltd | Business Proposal Together, We Grow                                       5
01 TOGETHER, WE GROW
        Introduction




       Social Responsibility
           Enhancing well-being
           of workmen, their                                    Business
           families, local
           community, society at                       Maximising wealth
           large                                              for owners




 O’ran Pte Ltd | Business Proposal Together, We Grow                       6
01 TOGETHER, WE GROW
        Introduction




       Social Responsibility
           Enhancing well-being
           of workmen, their                                            Business
           families, local
           community, society at                               Maximising wealth
           large                                                      for owners




                                               O’ran Pte Ltd
         Generates sustainable growth ⬌ Grows quality of life
 O’ran Pte Ltd | Business Proposal Together, We Grow                               7
01 TOGETHER, WE GROW
        Introduction




                                                PRODUCERS
                                                 As suppliers,
                                                grow livelihood




                        O’RAN                                           YOU
               As business, grows                                      As valued
                brand value and                                     investor, grows
                  market share                                    sustainable wealth



 O’ran Pte Ltd | Business Proposal Together, We Grow                                   8
01 TOGETHER, WE GROW
         Introduction




                                                                        Mission
                                                         Achieves industry leadership
                                                         levels of revenue and profit in
                                                              Asia and beyond, through
                                                            innovation, authenticity and
Vision                                                  continual improvement, without
                                                                compromising the well-
An exemplary handmade                                     being of people, animals and
                                                                  the planet by being
cosmetics group known for                                committed to ethical and
fresh, natural and authentic                                  sustainable acts
formulations


  O’ran Pte Ltd | Business Proposal Together, We Grow                                  9
02 THE INDUSTRIES
        Cosmetics and Toiletries (C&T) and Corporate Social Responsibility (CSR)




                                   • C&T
                                       • Resilient to economic cycles
                                       • C&T retail sector worth 〜~S$742.8M (2007),
                                           3.8% in 2008 / 09

                                   • CSR
                                       • Increasing awareness and implementation since
                                         Singapore Compact launched
                                       • National society committed to bringing CSR
                                         movement forward
                                       • 240 organisations (e.g. MNCs, SMEs)
                                         implementing CSR practices



 O’ran Pte Ltd | Business Proposal Together, We Grow                                     10
03 WHERE WE ARE NOW
        Business overview




                                                       • Singapore-incorporated
                                                       • Produces and sells handmade
                                                         bath and body products
                                                         • E.g. face masks, soap bars, hand
                                                           and body lotions
                                                       • 1 January 2013
                                                       • Outsources manufacturing
                                                         to marginalised producers
                                                       • Registered member of
                                                         Singapore Compact



 O’ran Pte Ltd | Business Proposal Together, We Grow                                      11
03 WHERE WE WILL BE
        Business model as at 1 January 2013




                                         KEY ACTIVITIES                    CUSTOMER
                                                                         RELATIONSHIPS




             KEY PARTNERS                                                                CUSTOMER
                                                             VALUE
                                                                                         SEGMENTS
                                                          PROPOSITION




                                         KEY RESOURCES
                                                                           CHANNELS




                                                                        REVENUE STREAM
                        COST STRUCTURE




 O’ran Pte Ltd | Business Proposal Together, We Grow                                                12
04 WORK FLOW
        Organisational structure


                                                  Managing Director                                             Reporting line
                                                  Deputy General Manager,
                                                                                                                As at January 2013
                                                  Finance
                                                  Hui Shan, Ng                                                  Additional workforce as at
 Secretary
 Accounts Executive                                                                                             December 2017
 Pauline, Heng




             General Manager,                                                General Manager, Sales &
             Administration &                                                Marketing
             Operations                                                      Clara, Puar
             Nicole, Koo




   Operation Master 1       Operation Master 2       Retail Sales Lead 1                                 Retail Sales Lead 2




                                        Retail Sales Associate 1   Retail Sales Associate   Retail Sales Associate    Retail Sales Associate
                                                                   2                        3                         4




 O’ran Pte Ltd | Business Proposal Together, We Grow                                                                                     13
05 FRIENDS OR FOES
        Competitive analysis




        • L’Occitane en Provence
        • Our Natural Factory
        • The Body Shop
        • LUSH                                            i. Keep up with up-to-
        • Kiehl’s                                           date technology and
        • A-Yuan                                       new media trends in IMC

                                                           ii. Strategic supplier
                                                         management to boost
                                                       productivity per supplier

 O’ran Pte Ltd | Business Proposal Together, We Grow                                14
06 BRAND DNA
            O’ran’s make-up
                                                                  Essence
                                                                  Handmade bath and body
                                                                  products using fresh
                                                                   natural ingredients
             Experience                                             procured from rich Asian
We indulge our customers with                                         lands which seek to
products made from fresh herbs                                           soothe and cleanse
  and fruits with medicinal or                                                our consumers
    healing capabilities and an
  addictive in-store experience,                           Values
    while ensuring that each
   product reaches them in a                               Social responsibility;
        sustainable way                                    People-oriented;
                                                           Authenticity and
                                                           innovation


     O’ran Pte Ltd | Business Proposal Together, We Grow                                  15
06 BRAND DNA
           The O’ran logo



                                                            ran ➠ heart and
                                                            soul of O’ran
 Wholesomeness,
 responsibility,
 reliability

                                                             Unfinished stroke
                                                             ➠ continual
 “World” ➠                                                   improvement and
 leadership levels of                                        innovation
 revenue and profit in
 Asia and beyond
                                                          Neutral earth colour
                                                          ➠ raw, bare, natural
sans serif ➠ modern


    O’ran Pte Ltd | Business Proposal Together, We Grow                      16
06 BRAND DNA
           Target audience personality profile (TAPP)




                                                          Demographic
                                                          • 25 to 35 year old
Psychographic                                             • Income: S$2,800
                                                            (20% disposable)
• Quality- and eco-conscious
• Exclusive and pampered
• Delighted by purchases with
     far-reaching social goods
•    Attracted to exotic formulations of
     Asian makeups

    O’ran Pte Ltd | Business Proposal Together, We Grow                         17
07 HOW DOES IT SOUND?
           Primary research




                                        • Business model: use natural
                                          ingredients which can cleanse,
“What is your overall perception of the   soothe and heal
product described above?”
                                        • Retain ethical, social values
  Poor
                            60.0%               24.4%
  Average                                                         “Would you be likely to select this product
  Good                                                    15.6%   over other offerings from other brands?”

  Excellent
                                                                    Yes                73.3%      26.7%
                                                                    No




    O’ran Pte Ltd | Business Proposal Together, We Grow                                                    18
08 PORTER’S 5 FORCES
             Forces from horizontal and vertical competition



• High ease of               HIGH THREAT OF
                                                                                           • Low barriers to
  substitution               SUBSTITUTE PRODUCTS                        MODERATE TO HIGH     entrance and
• Low buyer                                                               THREAT OF NEW      exit
  switching costs                                                             ENTRANTS     • Low initial
• Product                                                                                    investments and
  substitutes                                                                                fixed costs
  readily available                                                                        • Deterrence by
                                                                                             strict HSA
                                                              LOW TO                         regulations
• High degree of                                            MODERATE
  differentiation                                            RIVALRY                       • Small economies
                                                            INTENSITY                        of scale
• Low buyer
  switching costs
                                             LOW                                       • Low buyer
         • Low threat of                     BARGAINING
                                                                           MODERATE      switching costs
                                             POWER OF
           forward integration               SUPPLIERS                    BARGAINING   • Low threat of
         • High concentration                                               POWER OF     backward
           of suppliers                                                       BUYERS
                                                                                         integration

      O’ran Pte Ltd | Business Proposal Together, We Grow                                                  19
09 PESTLE
           Political . Economic . Social . Technological . Legal . Environment




         P                            • Extremely low corruption levels
                         E            • Ranks one of best places to do business
E                                         • E.g. 2012 Budget Statement
                                      • High per capita Gross Domestic Product
         O’RAN PTE LTD

                             S
    L                                 • Most competitive corporate tax regimes
                 T                        • E.g. low corporate tax rate of 17%
                                      • Retail sales grew 10.9% on-year, June ’11




    O’ran Pte Ltd | Business Proposal Together, We Grow                             20
09 PESTLE
           Political . Economic . Social . Technological . Legal . Environment




         P                            • Demand for natural, organic cosmetics
                         E              surging in Asia (Organic Monitor)
E                                         • “Sustainability”, “eco-friendly” remain buzzwords
         O’RAN PTE LTD
                                            in 2012
                             S        • Social Media no longer a choice
    L                                     • Necessity for businesses to incorporate social
                 T                          media in IMC strategy




    O’ran Pte Ltd | Business Proposal Together, We Grow                                      21
09 PESTLE
           Political . Economic . Social . Technological . Legal . Environment




         P                            • No need to apply for any product,
                         E              manufacturer and import licences
E                                     • Absence of major climate changes provides
         O’RAN PTE LTD                  low-risk harbour for businesses
                             S
    L
                 T




    O’ran Pte Ltd | Business Proposal Together, We Grow                             22
10 SWOT Strengths . Weaknesses . Opportunities . Threats



        S   TRENGTHS                                   W   EAKNESSES



                         WHO




                                                                                                    INTERNAL
                                                                Addressed in “Future Outlook”.




        O    PPORTUNITIES                              T
                                                       HREATS




                                                                                                    EXTERNAL
                      Addressed in “Future Outlook”.            Addressed in “Contingency Plans”.

                             POSITIVE                                  NEGATIVE

 O’ran Pte Ltd | Business Proposal Together, We Grow                                                           23
11 MARKETING MIX (4PS)
             Marketing strategies




 SALES           INTRODUCTION                               GROWTH            MATURITY   DECLINE




                                                                     TIME

  YEAR                     1                      2 to 3             4 to 5

MARKETING          Create product                  Maximise market share
OBJECTIVES         awareness and
                        trial

      O’ran Pte Ltd | Business Proposal Together, We Grow                                    24
11 4PS - PRODUCT
           Marketing strategies




                                                                • USP through product
                                                                  differentiation strategy
“How important (is effectiveness) as
being a part of this product?”                                  • Fresh, natural ingredients
                                                                  ethically, sustainably procured
  Not Important
                                                                  from Asia
  Neutral                                78.6%                       • Recommended by WHO for
  Important                                          14.3%             medicinal values
  Very Important                                         7.1%   • Singapore Green Labeling
                                                                  Scheme Certification




    O’ran Pte Ltd | Business Proposal Together, We Grow                                       25
11 4PS - PRICING
           Marketing strategies




                                                            Premium pricing strategy
“How important (is being cheap) as                          • Price sensitivity fairly low
being a part of this product?”                              • Indication of good quality
                                                              through handmade process
  Not Important
  Neutral
                                                            • Avenue to support social cause
  Important                41.7%                      37.5% 20.8%
  Very Important




    O’ran Pte Ltd | Business Proposal Together, We Grow                                   26
11 4PS - PROMOTION (IMC)
                  IMC Plan: Year 1




                                                      JAN   FEB   MAR   APR   MAY   JUN   JUL   AUG   SEP   OCT   NOV   DEC

        INTERACTIVE         Company Website
        ADVERTISING
                           Blog (oranblog.com)

                            Facebook, Twitter

                               Webisodes

                        O’ran Mobile Application


     DIRECT RESPONSE          Direct Mailers

                                  EDMs


   PLACE ADVERTISING      Train Platform Screen
                         Doors (Orchard Station)

  STORE SIGNAGE AND
                        External and In-Store Shelf
  POINT-OF-PURCHASE
                                   Signs
        ADVERTISING

 CONSUMER-ORIENTED
                          Samples and Coupons
       PROMOTIONS
                             Loyalty Program

                             Price-Off Packs


PUBLIC RELATIONS AND
                        Best Employee / Producer
            PUBLICITY
                          / Product Recognition

                               Brand Story

                         Team Bonding Activities




        O’ran Pte Ltd | Business Proposal Together, We Grow                                                                   27
11 4PS - PROMOTION (IMC)
                  IMC Plan: Years 2 and 3




                                                      JAN   FEB   MAR   APR   MAY   JUN   JUL   AUG   SEP   OCT   NOV   DEC

        INTERACTIVE         Company Website
        ADVERTISING
                           Blog (oranblog.com)

                            Facebook, Twitter

                          Webisodes, Podcasts

                        O’ran Mobile Application


     DIRECT RESPONSE          Direct Mailers

                                  EDMs


   PLACE ADVERTISING      Train Platform Screen
                         Doors (Orchard Station)

  TRADITIONAL MASS
                               Magazines
  MEDIA ADVERTISING

  STORE SIGNAGE AND
                        External and In-Store Shelf
  POINT-OF-PURCHASE
                                   Signs
        ADVERTISING

 CONSUMER-ORIENTED
                              Refer to Year 1
       PROMOTIONS

PUBLIC RELATIONS AND
                        Best Employee / Producer
            PUBLICITY
                          / Product Recognition

                               Brand Story

                         Team Bonding Activities

                            Milestone Events




       O’ran Pte Ltd | Business Proposal Together, We Grow                                                                    28
11 4PS - PROMOTION (IMC)
                  IMC Plan: Years 4 and 5



                                                      JAN   FEB   MAR   APR   MAY   JUN   JUL   AUG   SEP   OCT   NOV   DEC

        INTERACTIVE       Refer to Years 2 and 3
        ADVERTISING

     DIRECT RESPONSE          Direct Mailers

                                  EDMs


   PLACE ADVERTISING      Train Platform Screen
                         Doors (Orchard Station)


EVENT MARKETING AND
                                Seminars
       SPONSORSHIPS
                                Contests

                              Sponsorships

  TRADITIONAL MASS
                               Magazines
  MEDIA ADVERTISING

  STORE SIGNAGE AND
                        External and In-Store Shelf
  POINT-OF-PURCHASE
                                   Signs
        ADVERTISING

 CONSUMER-ORIENTED
                              Refer to Year 1
       PROMOTIONS

PUBLIC RELATIONS AND
                        Best Employee / Producer
            PUBLICITY
                          / Product Recognition

                               Brand Story

                         Team Bonding Activities

                            Milestone Events

                          Article Contributions




       O’ran Pte Ltd | Business Proposal Together, We Grow                                                                    29
11 4PS - PROMOTION (IMC)
           Marketing strategies




                                                                 Direct response, interactive
                                                                 advertising
 “How many hours do you spend
television, newspapers and internet on                             • Electronic direct mailers
average per day?”                                                     • 1st 6 months, bi-monthly
                                                                   • Company Website
 Television / Radio
 Newspapers                      61.7%             24.3% 14.1%     • Webisodes
 Internet / Smartphone                                             • Blogs, podcasts, social
                                                                     networks
                                                                   • Smartphone application




    O’ran Pte Ltd | Business Proposal Together, We Grow                                          30
11 4PS - PROMOTION (IMC)
        Marketing strategies




                                   Seminars and contests (Year 4 onwards)
                                       • Encourage participation from customers, friends
                                         and families
                                   Sponsorship of causes (Year 4 onwards)
                                       • Effort to advocate social responsibility
                                       • To build desired brand image and values
                                   Marketing-oriented PR and publicity
                                       • Milestone events (eg.O`ran birthday)
                                             • Create awareness, audience participation
                                       • Quarterly highlight outstanding performer
                                             • Show appreciation



 O’ran Pte Ltd | Business Proposal Together, We Grow                                       31
11 4PS - PROMOTION (IMC)
          Marketing strategies


                                                                    Marketing budget (S$)

                                               YEAR 1    YEAR 2    YEAR 3    YEAR 4    YEAR 5


ON-LINE (E.G. BLOG, MOBILE APP)                 3,550     2,550     2,550     2,550     2,550



DIRECT RESPONSE (E.G. MAILERS)                 30,000     10,000    10,000    10,000    10,000



PLACE ADVERTISING (E.G. TRAINS)                110,400    55,200    55,200    55,200    55,200



EVENT MARKETING, SPONSORSHIPS                     0         0         0       3,800     3,800



MASS MEDIA (E.G. MAGAZINES)                       0       6,000     6,000     6,000     6,000



EXTERNAL/IN-STORE SIGNAGES                      2,000     2,000     2,000     2,000     2,000



OTHERS (E.G. PUBLIC RELATIONS)                   830      2,890     2,890     3,070     3,070



TOTAL ANNUAL MARKETING                       146,780     78,640    78,640    82,620    82,620
EXPENSES


   O’ran Pte Ltd | Business Proposal Together, We Grow                                           32
11 4PS - PLACE
               Marketing strategies




                                                • Sell directly over the counter at its flagship
          OF
              FIC
                                                  retail store at Orchard Ion
                    E
                                                    • Control over how, to whom, at what price
                                                    • Reduce costs
                                                • On-line purchase on official website
                                                    • Shift in buyers’ behaviour to online shopping
                                                                W
                                                                AR
                                                                  EH
                                    SH                                 OU
                                      ELF                                 SE

SH
  ELF

                                                                     SH
                                                                        ELF


                                       DIS
                                            PLA
                                               YT
                                                 AB
                                                       LE
        O’ran Pte Ltd | Business Proposal Together, We Grow                        PO                 33
                                                                               T     S
12 HOW WE OPERATE
          Operation management
                                                   PRODUCTS RETURN


    SUPPLIERS (PRODUCERS)

TRAINING AND           PRODUCTION              QUALITY
 SUPERVISION           SCHEDULING              CONTROL
                                            (PRODUCTION)                       ORAN.COM
                                                                               O’RAN (RETAIL)
                                                               WAREHOUSING
                                                               AND STORAGE


                                                                INVENTORY
                                                                  UPDATE




                                                                PACKAGING
                                                                   AND
                                                                 DELIVERY

  CONSUMER IS             STORE             SALES SUPPORT
     BOSS              MANAGEMENT           MANAGEMENT




                                                                                    T S
                                                                                  OR LE
                                                                               PP SA
                                                                             SU ER-
                                                                                T
                                                                             AF



               END-CONSUMERS

   O’ran Pte Ltd | Business Proposal Together, We Grow                                          34
12 HOW WE OPERATE
          Operation management




TRAINING AND            PRODUCTION               QUALITY
 SUPERVISION            SCHEDULING               CONTROL
                                              (PRODUCTION)




                                               ❶ Training and Supervision
                                                    • 3 - 5 months to train and supervise suppliers

                                               ❷ Production Scheduling
                                                    • Every 2 months one production

                                               ❸ Quality Control (Production)
                                                    • To promptly rectify deviation from prescribed
                                                      standards promptly rectified



   O’ran Pte Ltd | Business Proposal Together, We Grow                                                35
12 HOW WE OPERATE
        Operation management




❹ Warehousing and Storage
  • Sorted, repackaged and kept in a cool, dry place for
    up to 3 months                                                         WAREHOUSING
                                                                           AND STORAGE
❺ Inventory Update
  • Upadate SRM system, catalogues, website                                 INVENTORY
                                                                              UPDATE

❻ Packaging and Delivery
  • Weighed and sold bare
  • Third party logistics service provider                                  PACKAGING
                                                                               AND
                                                                             DELIVERY
❼ Sales support management
                                                           SALES SUPPORT
  • SAs work on 6 - 8 hour shifts to assist SL             MANAGEMENT




 O’ran Pte Ltd | Business Proposal Together, We Grow                                     36
12 HOW WE OPERATE
        Operation management




                                             ❽ Store Management
                                                  • Addictive in-store experience
                                                  • Exchange policy - within 7 days from date
                                                    of purchase
 CONSUMER IS             STORE
    BOSS              MANAGEMENT
                                             ❾ Consumer is Boss
                                                  • Spend time with consumers
                                                  • Regularly administer quantitative surveys



 O’ran Pte Ltd | Business Proposal Together, We Grow                                            37
13 O’RAN AND SUPPLIERS
         Supplier Relationship Management (SRM)




Measure Performances
• Establish KPIs
• Track suppliers’
  performance                              STORE                    SUPPLIERS
  overtime

                                                        SRM

                                                        LOGISTICS
                                                        COMPANY

                                                                                Execute and Collaborate
                                                                                • Automate generation
                                                                                  of production orders
                                                                                • Issue delivery notes
                                                                                  and transport orders

  O’ran Pte Ltd | Business Proposal Together, We Grow                                              38
14 OUR PEOPLE
              Labour needs




                                                                         1. Operation Master (OM)
                                                                           • Supports OGM in R&D
General Manager,                General Manager, Sales &
                                                                           • Travel and manage suppliers
Administration &                Marketing
Operations
Nicole, Koo
                                Clara, Puar                              2. Retail Sales Lead (RSL)
                                                                           • Reports to Sales & Marketing GM
                                                                           • Evaluates associates’ performances
  Operation Master                Retail Sales Lead
                                                                           • Interacts with customers at frontline
                                                                         3. Retail Sales Associate (RSA)
                                                                           • Minor administrative tasks in store
                     Retail Sales Associate 1   Retail Sales Associate
                                                2
                                                                           • Assistant to RSL




      O’ran Pte Ltd | Business Proposal Together, We Grow                                                            39
15 THERE’S ROOM FOR FUN
         O’ran work culture




                                                                             Morality,
                                                                             creativity,
                                                                           spontaneity,
                                                                      problem solving, lack
                                                                     of prejudice, acceptance
SELF-ACTUALISATION                                                            of facts

                                                                    Self-esteem, confidence,
                                                                 achievement, respect of others,
ESTEEM                                                                  respect by others


                                                                friendship, family, sexual intimacy
LOVE/BELONGING

                                                        security of: body, employment, resources, morality,
                                                                     the family, health, property
SAFETY
                                                  breathing, food, water, sex, sleep, homeostasis, excretion
PHYSIOLOGICAL

                                                            Maslow’s Hierarchy of Needs

  O’ran Pte Ltd | Business Proposal Together, We Grow                                                          40
16 SHARE CAPITAL
        How much we require from you




                                                               S$500,000
 Investment Required
 Current Cash


                                      51.0%




                                                                 S$245,000
                                                       49.0%


 O’ran Pte Ltd | Business Proposal Together, We Grow                         41
17 STARTING UP
        How much we need for the first six months of operation




                                                                          S$600,000
Salaries and Bonus
Rent
Starting Inventory
Advertising (First Year)                        • 1 January 2013 to 30 June 2013
Others
                                                • Key expenses:
              45.1%                                    • Salaries and bonus         9.9%
                                                       • Advertising (first year)   12.3%
                                9.9%                   • Rent                       13.6%
                                                       • Starting inventory         19.0%
     12.3%                   13.6%
               19.0%

 O’ran Pte Ltd | Business Proposal Together, We Grow                                        42
18 O’RAN IN NEXT 5 YEARS
        Financial management




                                                                Balance Sheet (SGD‘000)
                                                                            As at 31 December

                                                       YEAR 1   YEAR 2   YEAR 3   YEAR 4   YEAR 5


           TOTAL CURRENT ASSETS                          433       413     393      507       719

           TOTAL FIXED ASSETS                             36        18      45        18      45

           TOTAL ASSETS                                  469      431      438      525      764

           TOTAL LIABILITIES                              45       45       59       50        91

           TOTAL LONG TERM LIABILITIES                    75       50       25        0        0

           TOTAL SHAREHOLDERS’ EQUITY                    349      336      354      475      674

           TOTAL LIABILITIES AND EQUITY                  469      431      438      525      764




 O’ran Pte Ltd | Business Proposal Together, We Grow                                                43
18 O’RAN IN NEXT 5 YEARS
        Financial management




                                                                  Profit and Loss (SGD‘000)

                                                       YEAR 1   YEAR 2   YEAR 3   YEAR 4   YEAR 5


          REVENUE                                        600      749       841    1,078    1,306

          COST OF GOODS SOLD                            (210)    (231)    (254)    (280)    (307)

          GROSS PROFIT                                   390      518      587      798      999

          OTHER INCOME(S)                                 55       50       50       50       50

          OPERATING EXPENSES                            (596)    (580)    (616)    (702)    (809)

          NET PROFIT BEFORE TAX                         (151)     (13)      21      146      240

          TAX EXPENSE                                      0        0       (4)     (25)     (41)

          NET PROFIT AFTER TAX                          (151)     (13)      17       121     199



 O’ran Pte Ltd | Business Proposal Together, We Grow                                                44
18 O’RAN IN NEXT 5 YEARS
          Financial management




Sales Revenue SGD’000                                           Net Profit Before Tax SGD’000
                                                                300
1,400
                                                      1,306     250                                               240
1,200                                                           200
                                            1,078                150                                    146
1,000




                                                                                                         Year 4

                                                                                                                   Year 5
                                                                                     Year 2

                                                                                               Year 3
                                                                          Year 1
                                  841                           100
 800                    749                                      50
            600                                                                               21
 600                                                              0

                                                                 -50
                                                                                   -13
 400
                                             Year 4
                                                       Year 5
                         Year 2
                                   Year 3
               Year 1




                                                                -100
 200
                                                                -150
                                                                        -151
    0                                                           -200




   O’ran Pte Ltd | Business Proposal Together, We Grow                                                                      45
18 O’RAN IN NEXT 5 YEARS
        Financial management


                                                         Break-even revenue
                                                           S$866,400

                                   • Year 4 or FY 2016




 O’ran Pte Ltd | Business Proposal Together, We Grow                          46
19 HOW O’RAN WILL FARE
        Measuring financial effectiveness and efficiency




 Return on Investment (ROI)
 Return on Investment %

 40.0
                                                                         YEAR 1   YEAR 2   YEAR 3   YEAR 4   YEAR 5
                                                     32.6
 30.0
                                 27.5                          ROI (%)              22.9              20.5     32.6
                       22.9                20.5
                                                                          -32.1              27.5
 20.0
                                            Year 4

                                                      Year 5
                        Year 2

                                  Year 3
              Year 1




 10.0

   0
                                                                         25.9%
-10.0

-20.0

-30.0
           -32.1
-40.0



 O’ran Pte Ltd | Business Proposal Together, We Grow                                                             47
19 HOW O’RAN WILL FARE
        Measuring financial effectiveness and efficiency




 Gross Margin (GM)
 Gross Margin %
 72.0
                                                     71.3               YEAR 1   YEAR 2   YEAR 3   YEAR 4   YEAR 5
 71.0
                                                               GM (%)     63.2     67.6     68.2     68.7     71.3
 70.0

 69.0                                      68.7
 68.0                            68.2
                       67.6
 67.0

 66.0

 65.0
                                            Year 4
                                                      Year 5
                        Year 2
                                  Year 3
              Year 1




 64.0

 63.0       63.2


 O’ran Pte Ltd | Business Proposal Together, We Grow                                                                 48
20 CASHING OUT
         Exit strategies



                                                              Merger
                                                               • Increases business
                                                                 value if we meet
                                                                  perfect acquiring
Sale to strategic buyer                                             company
• Most attractive and
  common
• Pay acquisition premium
                                                        IPO
                                                        • Profitable;
                                                          market value
                                                          $25M to $50M or
                                                          revenue $30M
                                                           to $50M

  O’ran Pte Ltd | Business Proposal Together, We Grow                                 49
21 WHAT FUTURE HOLDS
             Future outlook




  Brand Line Expansion                       Backward Integration               Brand Extension
  Stores Expansion                           B2B Sales                          Market Penetration
  2013-15: Build brand awareness             2019: Secure local                 2022 and onwards: Branch into
  2016-17: Focus on specialised              manufacturing facility             other profitable industries and
  functions such as R&D for                  2020: Increase market share by     international markets beyond
  greater scale brand line                   exploring B2B segment              Asia
  expansion (i.e. product variety)           2021: Extensive CRM system         2025: Set up an O’ran Asia
  2018: New stores opening in                ready for use                      Funds in aid of marginalised
  CBD                                                                           communities




YEAR 1 (FY2013)                          YEAR 7 (FY2019)                      YEAR 10 (FY2022)




    O’ran Pte Ltd | Business Proposal Together, We Grow                                                           50
22 CONCLUSION
        Together, We Grow



                                  • Inclusive community
                                  • C&T a lucrative industry (US$71B in Asia)
                                  • Unique CSR business model
                                      • Marginalised persons for economic self-sufficiency
                                      • Investors for protracted investment horizon
                                  • ROI ➠ Sustainable growth and value
                                    maximisation
                                                                                       40.0




                                                              Return on Investment %
                                                                                       30.0
                                                                                       20.0
                                                                                        10.0
                                                                                          0
                                                                                       -10.0
                                                                                       -20.0
                                                                                       -30.0
                                                                                       -40.0
                                                                                          Year 1 Year 2 Year 3 Year 4 Year 5

 O’ran Pte Ltd | Business Proposal Together, We Grow                                                                       51
THANK
YOU
Together, We Grow




Presented by: Hui Shan, NG | Clara, PUAR | Nicole, KOO

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O'ran Together We Grow

  • 1. BUSINESS PROPOSAL Together, We Grow Presented by: Hui Shan, NG | Clara, PUAR | Nicole, KOO
  • 2. 00 O’RAN PTE LTD The company O’ran Pte Ltd | Business Proposal Together, We Grow 2
  • 3. 00 O’RAN PTE LTD Say oh-ran • “O’ran” - inventive word • Oriental + 然 (ran) or “natural” in chinese • “As Bare As You Get” • Unconcealed, naked, no addition • Associates bare skin with our offerings O’ran Pte Ltd | Business Proposal Together, We Grow 3
  • 4. 00 FACES OF O’RAN Key personnel Hui Shan, NG Managing Director Deputy General Manager, Finance Clara, PUAR General Manager, Sales and Marketing Nicole, KOO General Manager, Administration and Operation O’ran Pte Ltd | Business Proposal Together, We Grow 4
  • 5. 00 AGENDA An overview of today’s presentation 9 Future Outlook 7 Financial Management 4 Strategic 8 Exit 2 Competitive Plans Analysis Analyses 6 Operation 3 Brand DNA Management 1 Background 5 Marketing and Introduction Strategies / 4Ps O’ran Pte Ltd | Business Proposal Together, We Grow 5
  • 6. 01 TOGETHER, WE GROW Introduction Social Responsibility Enhancing well-being of workmen, their Business families, local community, society at Maximising wealth large for owners O’ran Pte Ltd | Business Proposal Together, We Grow 6
  • 7. 01 TOGETHER, WE GROW Introduction Social Responsibility Enhancing well-being of workmen, their Business families, local community, society at Maximising wealth large for owners O’ran Pte Ltd Generates sustainable growth ⬌ Grows quality of life O’ran Pte Ltd | Business Proposal Together, We Grow 7
  • 8. 01 TOGETHER, WE GROW Introduction PRODUCERS As suppliers, grow livelihood O’RAN YOU As business, grows As valued brand value and investor, grows market share sustainable wealth O’ran Pte Ltd | Business Proposal Together, We Grow 8
  • 9. 01 TOGETHER, WE GROW Introduction Mission Achieves industry leadership levels of revenue and profit in Asia and beyond, through innovation, authenticity and Vision continual improvement, without compromising the well- An exemplary handmade being of people, animals and the planet by being cosmetics group known for committed to ethical and fresh, natural and authentic sustainable acts formulations O’ran Pte Ltd | Business Proposal Together, We Grow 9
  • 10. 02 THE INDUSTRIES Cosmetics and Toiletries (C&T) and Corporate Social Responsibility (CSR) • C&T • Resilient to economic cycles • C&T retail sector worth 〜~S$742.8M (2007), 3.8% in 2008 / 09 • CSR • Increasing awareness and implementation since Singapore Compact launched • National society committed to bringing CSR movement forward • 240 organisations (e.g. MNCs, SMEs) implementing CSR practices O’ran Pte Ltd | Business Proposal Together, We Grow 10
  • 11. 03 WHERE WE ARE NOW Business overview • Singapore-incorporated • Produces and sells handmade bath and body products • E.g. face masks, soap bars, hand and body lotions • 1 January 2013 • Outsources manufacturing to marginalised producers • Registered member of Singapore Compact O’ran Pte Ltd | Business Proposal Together, We Grow 11
  • 12. 03 WHERE WE WILL BE Business model as at 1 January 2013 KEY ACTIVITIES CUSTOMER RELATIONSHIPS KEY PARTNERS CUSTOMER VALUE SEGMENTS PROPOSITION KEY RESOURCES CHANNELS REVENUE STREAM COST STRUCTURE O’ran Pte Ltd | Business Proposal Together, We Grow 12
  • 13. 04 WORK FLOW Organisational structure Managing Director Reporting line Deputy General Manager, As at January 2013 Finance Hui Shan, Ng Additional workforce as at Secretary Accounts Executive December 2017 Pauline, Heng General Manager, General Manager, Sales & Administration & Marketing Operations Clara, Puar Nicole, Koo Operation Master 1 Operation Master 2 Retail Sales Lead 1 Retail Sales Lead 2 Retail Sales Associate 1 Retail Sales Associate Retail Sales Associate Retail Sales Associate 2 3 4 O’ran Pte Ltd | Business Proposal Together, We Grow 13
  • 14. 05 FRIENDS OR FOES Competitive analysis • L’Occitane en Provence • Our Natural Factory • The Body Shop • LUSH i. Keep up with up-to- • Kiehl’s date technology and • A-Yuan new media trends in IMC ii. Strategic supplier management to boost productivity per supplier O’ran Pte Ltd | Business Proposal Together, We Grow 14
  • 15. 06 BRAND DNA O’ran’s make-up Essence Handmade bath and body products using fresh natural ingredients Experience procured from rich Asian We indulge our customers with lands which seek to products made from fresh herbs soothe and cleanse and fruits with medicinal or our consumers healing capabilities and an addictive in-store experience, Values while ensuring that each product reaches them in a Social responsibility; sustainable way People-oriented; Authenticity and innovation O’ran Pte Ltd | Business Proposal Together, We Grow 15
  • 16. 06 BRAND DNA The O’ran logo ran ➠ heart and soul of O’ran Wholesomeness, responsibility, reliability Unfinished stroke ➠ continual “World” ➠ improvement and leadership levels of innovation revenue and profit in Asia and beyond Neutral earth colour ➠ raw, bare, natural sans serif ➠ modern O’ran Pte Ltd | Business Proposal Together, We Grow 16
  • 17. 06 BRAND DNA Target audience personality profile (TAPP) Demographic • 25 to 35 year old Psychographic • Income: S$2,800 (20% disposable) • Quality- and eco-conscious • Exclusive and pampered • Delighted by purchases with far-reaching social goods • Attracted to exotic formulations of Asian makeups O’ran Pte Ltd | Business Proposal Together, We Grow 17
  • 18. 07 HOW DOES IT SOUND? Primary research • Business model: use natural ingredients which can cleanse, “What is your overall perception of the soothe and heal product described above?” • Retain ethical, social values Poor 60.0% 24.4% Average “Would you be likely to select this product Good 15.6% over other offerings from other brands?” Excellent Yes 73.3% 26.7% No O’ran Pte Ltd | Business Proposal Together, We Grow 18
  • 19. 08 PORTER’S 5 FORCES Forces from horizontal and vertical competition • High ease of HIGH THREAT OF • Low barriers to substitution SUBSTITUTE PRODUCTS MODERATE TO HIGH entrance and • Low buyer THREAT OF NEW exit switching costs ENTRANTS • Low initial • Product investments and substitutes fixed costs readily available • Deterrence by strict HSA LOW TO regulations • High degree of MODERATE differentiation RIVALRY • Small economies INTENSITY of scale • Low buyer switching costs LOW • Low buyer • Low threat of BARGAINING MODERATE switching costs POWER OF forward integration SUPPLIERS BARGAINING • Low threat of • High concentration POWER OF backward of suppliers BUYERS integration O’ran Pte Ltd | Business Proposal Together, We Grow 19
  • 20. 09 PESTLE Political . Economic . Social . Technological . Legal . Environment P • Extremely low corruption levels E • Ranks one of best places to do business E • E.g. 2012 Budget Statement • High per capita Gross Domestic Product O’RAN PTE LTD S L • Most competitive corporate tax regimes T • E.g. low corporate tax rate of 17% • Retail sales grew 10.9% on-year, June ’11 O’ran Pte Ltd | Business Proposal Together, We Grow 20
  • 21. 09 PESTLE Political . Economic . Social . Technological . Legal . Environment P • Demand for natural, organic cosmetics E surging in Asia (Organic Monitor) E • “Sustainability”, “eco-friendly” remain buzzwords O’RAN PTE LTD in 2012 S • Social Media no longer a choice L • Necessity for businesses to incorporate social T media in IMC strategy O’ran Pte Ltd | Business Proposal Together, We Grow 21
  • 22. 09 PESTLE Political . Economic . Social . Technological . Legal . Environment P • No need to apply for any product, E manufacturer and import licences E • Absence of major climate changes provides O’RAN PTE LTD low-risk harbour for businesses S L T O’ran Pte Ltd | Business Proposal Together, We Grow 22
  • 23. 10 SWOT Strengths . Weaknesses . Opportunities . Threats S TRENGTHS W EAKNESSES WHO INTERNAL Addressed in “Future Outlook”. O PPORTUNITIES T HREATS EXTERNAL Addressed in “Future Outlook”. Addressed in “Contingency Plans”. POSITIVE NEGATIVE O’ran Pte Ltd | Business Proposal Together, We Grow 23
  • 24. 11 MARKETING MIX (4PS) Marketing strategies SALES INTRODUCTION GROWTH MATURITY DECLINE TIME YEAR 1 2 to 3 4 to 5 MARKETING Create product Maximise market share OBJECTIVES awareness and trial O’ran Pte Ltd | Business Proposal Together, We Grow 24
  • 25. 11 4PS - PRODUCT Marketing strategies • USP through product differentiation strategy “How important (is effectiveness) as being a part of this product?” • Fresh, natural ingredients ethically, sustainably procured Not Important from Asia Neutral 78.6% • Recommended by WHO for Important 14.3% medicinal values Very Important 7.1% • Singapore Green Labeling Scheme Certification O’ran Pte Ltd | Business Proposal Together, We Grow 25
  • 26. 11 4PS - PRICING Marketing strategies Premium pricing strategy “How important (is being cheap) as • Price sensitivity fairly low being a part of this product?” • Indication of good quality through handmade process Not Important Neutral • Avenue to support social cause Important 41.7% 37.5% 20.8% Very Important O’ran Pte Ltd | Business Proposal Together, We Grow 26
  • 27. 11 4PS - PROMOTION (IMC) IMC Plan: Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC INTERACTIVE Company Website ADVERTISING Blog (oranblog.com) Facebook, Twitter Webisodes O’ran Mobile Application DIRECT RESPONSE Direct Mailers EDMs PLACE ADVERTISING Train Platform Screen Doors (Orchard Station) STORE SIGNAGE AND External and In-Store Shelf POINT-OF-PURCHASE Signs ADVERTISING CONSUMER-ORIENTED Samples and Coupons PROMOTIONS Loyalty Program Price-Off Packs PUBLIC RELATIONS AND Best Employee / Producer PUBLICITY / Product Recognition Brand Story Team Bonding Activities O’ran Pte Ltd | Business Proposal Together, We Grow 27
  • 28. 11 4PS - PROMOTION (IMC) IMC Plan: Years 2 and 3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC INTERACTIVE Company Website ADVERTISING Blog (oranblog.com) Facebook, Twitter Webisodes, Podcasts O’ran Mobile Application DIRECT RESPONSE Direct Mailers EDMs PLACE ADVERTISING Train Platform Screen Doors (Orchard Station) TRADITIONAL MASS Magazines MEDIA ADVERTISING STORE SIGNAGE AND External and In-Store Shelf POINT-OF-PURCHASE Signs ADVERTISING CONSUMER-ORIENTED Refer to Year 1 PROMOTIONS PUBLIC RELATIONS AND Best Employee / Producer PUBLICITY / Product Recognition Brand Story Team Bonding Activities Milestone Events O’ran Pte Ltd | Business Proposal Together, We Grow 28
  • 29. 11 4PS - PROMOTION (IMC) IMC Plan: Years 4 and 5 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC INTERACTIVE Refer to Years 2 and 3 ADVERTISING DIRECT RESPONSE Direct Mailers EDMs PLACE ADVERTISING Train Platform Screen Doors (Orchard Station) EVENT MARKETING AND Seminars SPONSORSHIPS Contests Sponsorships TRADITIONAL MASS Magazines MEDIA ADVERTISING STORE SIGNAGE AND External and In-Store Shelf POINT-OF-PURCHASE Signs ADVERTISING CONSUMER-ORIENTED Refer to Year 1 PROMOTIONS PUBLIC RELATIONS AND Best Employee / Producer PUBLICITY / Product Recognition Brand Story Team Bonding Activities Milestone Events Article Contributions O’ran Pte Ltd | Business Proposal Together, We Grow 29
  • 30. 11 4PS - PROMOTION (IMC) Marketing strategies Direct response, interactive advertising “How many hours do you spend television, newspapers and internet on • Electronic direct mailers average per day?” • 1st 6 months, bi-monthly • Company Website Television / Radio Newspapers 61.7% 24.3% 14.1% • Webisodes Internet / Smartphone • Blogs, podcasts, social networks • Smartphone application O’ran Pte Ltd | Business Proposal Together, We Grow 30
  • 31. 11 4PS - PROMOTION (IMC) Marketing strategies Seminars and contests (Year 4 onwards) • Encourage participation from customers, friends and families Sponsorship of causes (Year 4 onwards) • Effort to advocate social responsibility • To build desired brand image and values Marketing-oriented PR and publicity • Milestone events (eg.O`ran birthday) • Create awareness, audience participation • Quarterly highlight outstanding performer • Show appreciation O’ran Pte Ltd | Business Proposal Together, We Grow 31
  • 32. 11 4PS - PROMOTION (IMC) Marketing strategies Marketing budget (S$) YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ON-LINE (E.G. BLOG, MOBILE APP) 3,550 2,550 2,550 2,550 2,550 DIRECT RESPONSE (E.G. MAILERS) 30,000 10,000 10,000 10,000 10,000 PLACE ADVERTISING (E.G. TRAINS) 110,400 55,200 55,200 55,200 55,200 EVENT MARKETING, SPONSORSHIPS 0 0 0 3,800 3,800 MASS MEDIA (E.G. MAGAZINES) 0 6,000 6,000 6,000 6,000 EXTERNAL/IN-STORE SIGNAGES 2,000 2,000 2,000 2,000 2,000 OTHERS (E.G. PUBLIC RELATIONS) 830 2,890 2,890 3,070 3,070 TOTAL ANNUAL MARKETING 146,780 78,640 78,640 82,620 82,620 EXPENSES O’ran Pte Ltd | Business Proposal Together, We Grow 32
  • 33. 11 4PS - PLACE Marketing strategies • Sell directly over the counter at its flagship OF FIC retail store at Orchard Ion E • Control over how, to whom, at what price • Reduce costs • On-line purchase on official website • Shift in buyers’ behaviour to online shopping W AR EH SH OU ELF SE SH ELF SH ELF DIS PLA YT AB LE O’ran Pte Ltd | Business Proposal Together, We Grow PO 33 T S
  • 34. 12 HOW WE OPERATE Operation management PRODUCTS RETURN SUPPLIERS (PRODUCERS) TRAINING AND PRODUCTION QUALITY SUPERVISION SCHEDULING CONTROL (PRODUCTION) ORAN.COM O’RAN (RETAIL) WAREHOUSING AND STORAGE INVENTORY UPDATE PACKAGING AND DELIVERY CONSUMER IS STORE SALES SUPPORT BOSS MANAGEMENT MANAGEMENT T S OR LE PP SA SU ER- T AF END-CONSUMERS O’ran Pte Ltd | Business Proposal Together, We Grow 34
  • 35. 12 HOW WE OPERATE Operation management TRAINING AND PRODUCTION QUALITY SUPERVISION SCHEDULING CONTROL (PRODUCTION) ❶ Training and Supervision • 3 - 5 months to train and supervise suppliers ❷ Production Scheduling • Every 2 months one production ❸ Quality Control (Production) • To promptly rectify deviation from prescribed standards promptly rectified O’ran Pte Ltd | Business Proposal Together, We Grow 35
  • 36. 12 HOW WE OPERATE Operation management ❹ Warehousing and Storage • Sorted, repackaged and kept in a cool, dry place for up to 3 months WAREHOUSING AND STORAGE ❺ Inventory Update • Upadate SRM system, catalogues, website INVENTORY UPDATE ❻ Packaging and Delivery • Weighed and sold bare • Third party logistics service provider PACKAGING AND DELIVERY ❼ Sales support management SALES SUPPORT • SAs work on 6 - 8 hour shifts to assist SL MANAGEMENT O’ran Pte Ltd | Business Proposal Together, We Grow 36
  • 37. 12 HOW WE OPERATE Operation management ❽ Store Management • Addictive in-store experience • Exchange policy - within 7 days from date of purchase CONSUMER IS STORE BOSS MANAGEMENT ❾ Consumer is Boss • Spend time with consumers • Regularly administer quantitative surveys O’ran Pte Ltd | Business Proposal Together, We Grow 37
  • 38. 13 O’RAN AND SUPPLIERS Supplier Relationship Management (SRM) Measure Performances • Establish KPIs • Track suppliers’ performance STORE SUPPLIERS overtime SRM LOGISTICS COMPANY Execute and Collaborate • Automate generation of production orders • Issue delivery notes and transport orders O’ran Pte Ltd | Business Proposal Together, We Grow 38
  • 39. 14 OUR PEOPLE Labour needs 1. Operation Master (OM) • Supports OGM in R&D General Manager, General Manager, Sales & • Travel and manage suppliers Administration & Marketing Operations Nicole, Koo Clara, Puar 2. Retail Sales Lead (RSL) • Reports to Sales & Marketing GM • Evaluates associates’ performances Operation Master Retail Sales Lead • Interacts with customers at frontline 3. Retail Sales Associate (RSA) • Minor administrative tasks in store Retail Sales Associate 1 Retail Sales Associate 2 • Assistant to RSL O’ran Pte Ltd | Business Proposal Together, We Grow 39
  • 40. 15 THERE’S ROOM FOR FUN O’ran work culture Morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance SELF-ACTUALISATION of facts Self-esteem, confidence, achievement, respect of others, ESTEEM respect by others friendship, family, sexual intimacy LOVE/BELONGING security of: body, employment, resources, morality, the family, health, property SAFETY breathing, food, water, sex, sleep, homeostasis, excretion PHYSIOLOGICAL Maslow’s Hierarchy of Needs O’ran Pte Ltd | Business Proposal Together, We Grow 40
  • 41. 16 SHARE CAPITAL How much we require from you S$500,000 Investment Required Current Cash 51.0% S$245,000 49.0% O’ran Pte Ltd | Business Proposal Together, We Grow 41
  • 42. 17 STARTING UP How much we need for the first six months of operation S$600,000 Salaries and Bonus Rent Starting Inventory Advertising (First Year) • 1 January 2013 to 30 June 2013 Others • Key expenses: 45.1% • Salaries and bonus 9.9% • Advertising (first year) 12.3% 9.9% • Rent 13.6% • Starting inventory 19.0% 12.3% 13.6% 19.0% O’ran Pte Ltd | Business Proposal Together, We Grow 42
  • 43. 18 O’RAN IN NEXT 5 YEARS Financial management Balance Sheet (SGD‘000) As at 31 December YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL CURRENT ASSETS 433 413 393 507 719 TOTAL FIXED ASSETS 36 18 45 18 45 TOTAL ASSETS 469 431 438 525 764 TOTAL LIABILITIES 45 45 59 50 91 TOTAL LONG TERM LIABILITIES 75 50 25 0 0 TOTAL SHAREHOLDERS’ EQUITY 349 336 354 475 674 TOTAL LIABILITIES AND EQUITY 469 431 438 525 764 O’ran Pte Ltd | Business Proposal Together, We Grow 43
  • 44. 18 O’RAN IN NEXT 5 YEARS Financial management Profit and Loss (SGD‘000) YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 REVENUE 600 749 841 1,078 1,306 COST OF GOODS SOLD (210) (231) (254) (280) (307) GROSS PROFIT 390 518 587 798 999 OTHER INCOME(S) 55 50 50 50 50 OPERATING EXPENSES (596) (580) (616) (702) (809) NET PROFIT BEFORE TAX (151) (13) 21 146 240 TAX EXPENSE 0 0 (4) (25) (41) NET PROFIT AFTER TAX (151) (13) 17 121 199 O’ran Pte Ltd | Business Proposal Together, We Grow 44
  • 45. 18 O’RAN IN NEXT 5 YEARS Financial management Sales Revenue SGD’000 Net Profit Before Tax SGD’000 300 1,400 1,306 250 240 1,200 200 1,078 150 146 1,000 Year 4 Year 5 Year 2 Year 3 Year 1 841 100 800 749 50 600 21 600 0 -50 -13 400 Year 4 Year 5 Year 2 Year 3 Year 1 -100 200 -150 -151 0 -200 O’ran Pte Ltd | Business Proposal Together, We Grow 45
  • 46. 18 O’RAN IN NEXT 5 YEARS Financial management Break-even revenue S$866,400 • Year 4 or FY 2016 O’ran Pte Ltd | Business Proposal Together, We Grow 46
  • 47. 19 HOW O’RAN WILL FARE Measuring financial effectiveness and efficiency Return on Investment (ROI) Return on Investment % 40.0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 32.6 30.0 27.5 ROI (%) 22.9 20.5 32.6 22.9 20.5 -32.1 27.5 20.0 Year 4 Year 5 Year 2 Year 3 Year 1 10.0 0 25.9% -10.0 -20.0 -30.0 -32.1 -40.0 O’ran Pte Ltd | Business Proposal Together, We Grow 47
  • 48. 19 HOW O’RAN WILL FARE Measuring financial effectiveness and efficiency Gross Margin (GM) Gross Margin % 72.0 71.3 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 71.0 GM (%) 63.2 67.6 68.2 68.7 71.3 70.0 69.0 68.7 68.0 68.2 67.6 67.0 66.0 65.0 Year 4 Year 5 Year 2 Year 3 Year 1 64.0 63.0 63.2 O’ran Pte Ltd | Business Proposal Together, We Grow 48
  • 49. 20 CASHING OUT Exit strategies Merger • Increases business value if we meet perfect acquiring Sale to strategic buyer company • Most attractive and common • Pay acquisition premium IPO • Profitable; market value $25M to $50M or revenue $30M to $50M O’ran Pte Ltd | Business Proposal Together, We Grow 49
  • 50. 21 WHAT FUTURE HOLDS Future outlook Brand Line Expansion Backward Integration Brand Extension Stores Expansion B2B Sales Market Penetration 2013-15: Build brand awareness 2019: Secure local 2022 and onwards: Branch into 2016-17: Focus on specialised manufacturing facility other profitable industries and functions such as R&D for 2020: Increase market share by international markets beyond greater scale brand line exploring B2B segment Asia expansion (i.e. product variety) 2021: Extensive CRM system 2025: Set up an O’ran Asia 2018: New stores opening in ready for use Funds in aid of marginalised CBD communities YEAR 1 (FY2013) YEAR 7 (FY2019) YEAR 10 (FY2022) O’ran Pte Ltd | Business Proposal Together, We Grow 50
  • 51. 22 CONCLUSION Together, We Grow • Inclusive community • C&T a lucrative industry (US$71B in Asia) • Unique CSR business model • Marginalised persons for economic self-sufficiency • Investors for protracted investment horizon • ROI ➠ Sustainable growth and value maximisation 40.0 Return on Investment % 30.0 20.0 10.0 0 -10.0 -20.0 -30.0 -40.0 Year 1 Year 2 Year 3 Year 4 Year 5 O’ran Pte Ltd | Business Proposal Together, We Grow 51
  • 52. THANK YOU Together, We Grow Presented by: Hui Shan, NG | Clara, PUAR | Nicole, KOO