Discuss About The Green Marketing Its Impact On Supply Chain.
The Green Store is a retail business which will be dealing in environmental friendly products. The store will be catering to the un-captured market and sell only those products which are good for the market. With the increase in environmental awareness and demand from various customers regarding the use of environmental friendly products, the owners of the business Margo Stenson and Eliza Rivers came up with the idea of selling green products to the customers (Anantadjaya 2013).
The vision of the green store is to:
The primary vision of the Green store is to become one of the largest retailers in the city supplying environmental friendly goods.
The main objectives of the Green Store are:
The Entrepreneurs Eliza Rivers and Margo Stenson realized that there were no stores which offered only environmental friendly products (Armstrong et al. 2015). Although there were various stores like Wal-Mart, Woolworths and others have various sections which offer environmental friendly products, but there is no store which completely offers environmental friendly products and for this reason, The Green Store aims to cater to the give demand and set up their store. The store will be set up in Blind River town.
With more people becoming concerned about the environment and the demerits of the processed food, the business is sufficiently not adequate for the customers who are healthcare conscious and are deeply concerned about the environmental issues. For this purpose, the customer demand for organic or environmental friendly products will be growing at a rate of 15-20% annually (Baden-Fuller and Haefliger 2013). This is the reason, the industry is still at its initial stage and the group of entrepreneurs wants to capture the market.
The green store would a specialty retailer who will be providing the chosen Sudbury Region with products which are good for the environment and the society at large (Arnold 2013). The women carried out a research and they have identified various products in which the customers would be interested in. They plan to rent a store in Barrydowne road and have estimated the number of household areas to be 26700.
The Green Store strengths have been given as follows:
As the company is based in just one town, they will be able to successfully cater to their needs and make offerings which are not made by the supermarkets.
The business will be run on the principles of partnership. Eliza Rivers and Margo Stenson will be equally participating in their business operations and they will be receiving equal profit from the venture.
The main reason behind this is that the idea is extremely innovative and for this purpose the company wants to keep the profits to themselves (Best 2013).
Products are the goods that the company generally tends to offer to the consumers for money. The Green Store plans to sell the consumers, a wide range of environmental friendly products which are not available in other stores (Boons and Lüdeke-Freund 2013). These products will be products like footwear, cloth, food items and others. A comprehensive list of the items has been given as follows:
The prices of these products will be a little higher than the normal products, but these products will be a lifelong investment and will be good for the environment. The main aim of the Green Store is to tap the unexplored sector.
Among the given subheads, the store will be offering around 500 products. Some of these products will be sourced from the local suppliers and the other products will be sourced from different parts of the globe through contacts (Bratton and Gold 2017).
The marketing plan of the Green Store is as follows:
The target market of Green Store can be divided into three main segments which are the:
The store wants to position itself as a one stop solution for all green and environmental friendly products (Hutt and Speh 2012). These products tend to attract a larger audience who are generally concerned about the welfare of the organization and for this purpose the store wants to become a go to store for the target market and portray itself as a store which has all environmental friendly products.
The marketing mix of green store has been given as follows:
Pricing
The pricing of the product will be based on normal industry prices which mean that the price of these goods will be generally higher than the normal goods.
Distribution
The distribution network of the company which is set up based on its supplier system is very strong and all the goods are sourced from genuine places (Mullins, Walker and Boyd Jr 2013)
The store will be using many platforms for advertisement like television advertising, magazine advertising, newspaper advertising, social media marketing and other methods.
The customers will be handled in the store by the owners and the extra staff which has been appointed. This will help them to decide the kind of products they want to purchase.
The market research component was carried out by the two owners who found that there are more than 25000 households and there was no direct competition for the given product. The target market of the product s is the health conscious ad environmental friendly people. The marketing research was conducted by meeting various competitors and analyzing their offerings.
Although the other supermarkets Wal-Mart, The Superstore and Costco offer various products to the customers who comprise of products like organic food, eco friendly items and others, however, there is no store which entirely offers green goods and hence, the plan works well.
The primary advantage of Green Store is its advertising strategy and the offerings made. The company has decided to engage in various forms of advertising which will help the firm become popular among its customers (Nilsson et al. 2015). Secondly the products are of utmost good quality which goes a long way in building the brand name of the store in the eyes of the customers.
After the analysis of the market, it can be identified that the store aims to cater to the needs of those customers who are deeply concerned about the well being of the environment and those who are health conscious.
The business model of Green Store is very simple and it seeks to work on a simple retail model whereby its primary source of income will be the sales that will take place.
The business model serves to provide given service:
The partners will be looking after the inventory of the store and they will try their level best to source the best quality products for its customers at the best prices. The suppliers may e mainly local; however, certain items will be exported from outside of the town or country as well.
The human resource department and plan forms an integral part of the store/s operations. Apart from the two owners, the following employees will be appointed at the stores:
The owners will be hiring these people on their own through a normal three staged interview method.
The owners will be continuously evaluating the performance of the employees and take further steps to provide them rewards for better performance.
Since the business will function on a partnership basis, the business will be privately managed. It will then hire 4 employees in the business. The business will then expand its operations in the future (Chwolka and Raith 2013).
The organization will also have an:
A retail space is available on Barrydowne Road and is a one storied building. Hence, in that area, around 3000 square feet area will be taken which is available for $25 square feet.
The total market size of the green market is US 158 billion. Out of this, the Green Store can aim to capture at least 1%.
The various Star-up Costs are as follows:
The primary assumptions on which this is based is research from similar stores in the industry
|
START-UP REQUIREMENTS |
|
|
Start-up Expenses |
|
|
Salaries |
$90,000.00 |
|
Wages |
$54000.00 |
|
Rent |
$75000.00 |
|
Telephones |
$1800.00 |
|
Insurance |
$3450.00 |
|
Internet |
$900.00 |
|
Accounting Fees |
$2,000.00 |
|
Office Supplies |
$1800.00 |
|
Advertising |
$5,000.00 |
|
Wrapping Expenses |
$ 4,000.00 |
|
Misc. |
$. 6650.00 |
|
TOTAL START-UP EXPENSES |
$244600.00 |
|
Start-up Assets |
$20,000.00 |
|
Cash Required |
$10,000.00 |
|
Other Current Assets |
|
|
Long-term Assets |
$33,215.00 |
|
TOTAL ASSETS |
$63,215.00 |
|
Total Requirements |
$307815.00 |
|
Performa p and l |
|
|
Year 1 |
|
|
Sales |
$ 8,50,600.00 |
|
Direct Costs of sales |
$ 4,44,600.00 |
|
Gross Margin |
$ 406000.00 |
|
Gross Margin percentage |
47.49390422 |
|
Expenses |
244600 |
|
EBIDTA |
$ 161400.00 |
|
Net profit |
$ 161400.00 |
|
% |
18.56773627 |
Year 1
Contribution Margin= Sales-Variable expenses/ Sales
=850600-444600= 406000
Margin = 406000/850600
=0.47
Break even = 244600/47%
=$114962sales
The rewards of the given project might be that:
References
Anantadjaya, S.P. (2013). Entrepreneurs vs. Business Plans: A study of Practicality and Usefulness.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R. (2015). Marketing: an introduction. Pearson Education.7th Edition, pp. 400-450.
Arnold, G. (2013). Corporate financial management. Pearson Higher Ed.6th Edition, pp. 411-414.
Baden-Fuller, C. and Haefliger, S. (2013). Business models and technological innovation. Long range planning, 46(6), pp.419-426.
Beardwell, J. and Thompson, A. (2014). Human resource management: a contemporary approach. Pearson Education. 7th Edition, pp. 400-412.
Best, R. (2013). Market-based management. Pearson Higher Ed.3rd Edition, pp. 300-345.
Boons, F. and Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, pp.9-19.
Bratton, J. and Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Chan, H.K., He, H. and Wang, W.Y. (2013). Green marketing and its impact on supply chain management in industrial markets. Industrial Marketing Management, 41(4), pp.557-562.
Chwolka, A. and Raith, M.G. (2013). The value of business planning before start-up—A decision-theoretical perspective. Journal of Business Venturing, 27(3), pp.385-399.
Hutt, M.D. and Speh, T.W. (2012). Business marketing management: B2B. Cengage Learning.
Keller, K. L. and Kotler, P. (2016). Marketing management. Pearson.
Kotler, P. (2013). Marketing Management, millenium edition: Custom Edition for University of Phoenix.
Laudon, K.C. and Laudon, J.P. (2013). Management Information Systems 13e. Derived from: blackhawk.cs.mercer.edu. pp. 5-7.
Mullins, J., Walker, O.C. and Boyd Jr, H.W. (2013). Marketing management: A strategic decision-making approach. McGraw-Hill Higher Education.
Nilsson, E., Gärling, T., Marell, A. and Nordvall, A.C. (2015). Who shops groceries where and how?–the relationship between choice of store format and type of grocery shopping. The International Review of Retail, Distribution and Consumer Research, 25(1), pp.1-19.
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