Group 6

1. Group 6 Oval CHINA, JAPAN, KOREA published 2008 C The Final Project of team ‘Sirius’ BANANA Revolution Kim JeeYoon Sakawa Yuko Ding Nan OVAL CHINA OVAL JAPAN OVAL KOREA 1

2. Group 6 Oval CHINA, JAPAN, KOREA published 2008 C A table of contents Contents Executive Summary I Our Product / Service and Business Model III Market Analysis IV Marketing Strategy II Operation Finance VII VI V Future Vision

3. Executive summary I Executive Summary Figures that we should know World population in 2050 91 billion Amount of water to produce 1t of paper 95 t Number of trees to produce 1t of paper 17 373,691 kg Amount of polluted water every Just in Korea only

4. Executive summary I Executive Summary Here is the answer to the problems

5. Our product / service and business model II Our Product / Service and Business Model A. Background knowledge • Social issue • In 2030, 8.5 billion people consume 1 billion tons of paper • (1 person consume 60 tons / year)

6. Our product / service and business model II Our Product / Service and Business Model A. Background knowledge • Origin of bananapaper • In India, there is one NPO that produces man-made banana paper

7. Our product / service and business model II Our Product / Service and Business Model B. The industry • Paper making Industry in East Asia • Our business is going to be B2B business C. Our Product • Banana paper

8. Our product / service and business model II Our Product / Service and Business Model C. Our Product • Comparison between Banana papermaking and conventional papermaking Banana waste & rags Banana paper Additives BANANA PAPER Low cost of raw material Environmentally friendly ; save 95t water and 17 trees every one ton of paper No chemical usage No polluted water produced Special features ; Endurable(3,000 times harder than normal paper) Fireproof / Waterproof Harmful Chemicals Paper NORMAL PAPER Wood & Water

9. ③ Sell paper Our product / service and business model ② Shipping ① Produce paper ① Produce banana paper in Hainan Island, China Ship the produced paper from Hainan island to Tokyo, Japan ② ② Sell banana paper in Tokyo II Our Product / Service and Business Model D. Our main business model • Why Hainan? • Famous for banana • Shipping cost is low • Labor cost is low • Why Tokyo? • Willing to buy eco-friendly • product • Shipping cost is low • Relatively low rent fee • in Hachioji

10. Our product / service and business model II Our Product / Service and Business Model D. Our main business model Wallpaper company End users Operation Gown Co. BANANA REVOLUTION Shoji making company Product Cash

11. Our product / service and business model II Our Product / Service and Business Model E. CSR For Employees : Opportunities for employment For Suppliers : Get rid of banana waste For Customers : Special features contribute to their product Gain good reputation For Shareholders : Gain profit Make contribution to society For Neighborhood : Ensure living environment of local people For Society : Solve the serious environmental issue

12. Group 7 Market Analysis Market Analysis III Segmentation

13. Group 7 Market Analysis Market Analysis III Market Size Analysis (USD)

14. Group 7 Market Analysis Market Analysis III Our potential consumer

15. Group 7 Market Analysis Market Analysis III Competitor Analysis • Major Competitor: Conventional Paper making Company • Oji Paper Group • Nippon Paper Group • Mitsubishi Paper Group

16. Group 7 Market Analysis Market Analysis III Strength and Weakness of the competitor

17. Group 7 Market Analysis Market Analysis III SWOT Analysis

18. Group 7 Market Analysis Market Analysis III Industry 5 Forces Analysis A : Low Entry Barrier B : Low Potential Entrant C : Threats from subsides D : Low Bargaining Power of Suppliers E : Bargaining power of customers

19. Group 7 Market Analysis Market Analysis III Price Range of paper

20. Group 7 Market Analysis Market Analysis III How we choose our ideal industry according to price sensitivity High price Construction Wall paper High Sensitivity Low sensitivity Stationery Low price

21. Marketing Strategy The company’s theory is to use natural fiber to make their product Banana paper is made of natural fiber They want their products could prevent from getting wet SINCOL is our ideal customer It is water proof The paper they use should be able to absorb odors The natural fiber could absorb smell Group 7 Market Analysis Marketing Strategy IV Promotion Direct way Mouth to Mouth Features of SINCOL wall paper Features of banana paper

22. Marketing Strategy Group 7 Market Analysis Marketing Strategy IV Promotion Direct way Contact with the industry association and government Promotion indirect way Banana Revolution Organizing tours to our company Corporate with NPO & CSO

23. Group 7 Market Analysis Operation V Operation

24. Finance VI Finance 24

25. Finance VI Finance 25

26. Finance VI Finance Break-Even Analysis We need to produce at least 35,612 tons of paper to meet the break-even point and in total five year we produce 40,000 tons Cost (USD) Variable cost 1,232,180 Fixed cost 35,612 Amount (t) 26

27. Finance VI Finance Budget : Projected FCF 27

28. Finance VI Finance Budget : Projected I/S (USD) 28

29. Finance VI Finance Budget : Projected B/S 29

30. Future Vision Future Vision VII Short-term vision • Our goal is to meet a profit of 2 million USD in 5 years. Mid-term vision • Expand our business to other fields such as candles, bags, etc. • Expand our business to the other countries and make transnational • company, arousing people’s awareness towards eco and save the • earth Long-term vision • As a social entrepreneur, it is our commitment to solve the most • serious environmental problem we human-beings are facing 30

31. Future Vision VII Future Vision 31

32. Thank You 32