OVAL Beijing 2013

TEAMSHUIXIAN

Waterin

Beijing

WHATIs polluting the water?

Oil9000 tons

per year

“Cooking”

eating habits

Fried Foods

4000L water→ 20ml oil

SoapSmallerChemicals

HowTo solve problem?

Soapfor

HopeOilSoap

Recycle

Chemicals

Water

Soap

Eco-friendly

5.52

7.5

.2 .23

.21

1.7

.1.1

.1

.1.1.1 1.4 1.7

3.4

10.5cmSoapfor

Hope

3.4 cm

Small.

Soapfor

Hope

No tight feeling

Eco-friendly

Full of Moisture

Less side-effect

Function

waterSalt

SugarHoney

A weekmixtureHow

To produce

NaOH Oil

Business Model

Restaurant Oil

Customers

Soap

Business Model (Supplier)

5000yuan/ton

Collecting

Business Model (Customer)

Soap for hope

Off-line commercial trucks

Online shopping

Whythis market

SoapMarket20%Green productMid-priced49%

SoapMarket

Brand Non-brandBrandHigh

pricedMid

pricedLow

pricedMid

priced

FemaleTargetAge 25~40

Regular income

categories Sub categories (Price)

example

Brand product

High-end (high quality)

L’OCCITANE

Middle-end 40yuanLow-end Safe Guard

Non brand product

High-end (high quality)

Handmade soap

Mid to Low-end Self-made soap

EnvironmentSociallyresponsibleProducts

New products

Characteristics of our target

Eco-friendly

New

1,967,000 * 0.49 = 963, 830

963, 830 * 0.3 = 289,149 (people)

Market Size

Niche Market

High-end Soap for hope Low-endingredient Extra virgin oil,

natural ingredient

Filtered used oil, honey, salt, sugar

Chemicals

quality high high-middle middle-lowdesign mostly bar stick liquid, barstrength high quality rational price cheap

eco-friendly (CSR)pacesetter in stick soap marketpositive image

weakness expensive low brand image low quality

ComparativeAdvantagePrice QualityDifferentiation

HowOperational &Marketing Plan

Short term

OperationalPlan

Off-line truck salesOn-line salesOfficial WebsiteFund fromNGO

Short term

MarketingPlan

Free soaps for restaurantSNS marketing

Mid term

OperationalPlan

Cooperation withNGOs

Mid term

MarketingPlan

Green Oil Campaign

Long term

OperationalPlan

Green Certificationsystem

Long term

MarketingPlan

Mouth to Mouth

$?Financial Plan

Cost sheet

Balanced SheetAssets Historical Year Ended

Year 1 Year 2 Year 3 Year 4 Year 5Investment 30000 530146.2 817086.1 1347819.5 2146136.9

Cash 217787 (242785.2) (281852.7) (320550.05) (574969.95)Total Current Assets 247787 287361 535233.4 1027269.45 1571166.945

Fixed assetsTruck 8800 8800 8800 8800 8800Equipment 1764 1764 1764 1764 1764Less accumulated depreciation - (1056.4) (1056.4) (1056.4) (1056.4)

Total fixed assets 10564 9507.6 9507.6 9507.6 9507.6

Total assets 258351 296868.6 544741 1036777.05 1580674.545

Liabilities and owner’s equity

Owner’s equityInvestment capital 30000 30000 30000 30000 30000Accumulated retained earning 228351 266868.6 514741 1006777.05 1550674.545

Total owner’s equity 258351 296868.6 544741 1036777.05 1036777.05

Total liabilities and owners equity

258351 296868.6 544741 1036777.05 1036777.05

Income Statement Historical Year Ended(Chinese yuan) Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenue 152198 256920 642120 1750920 2579400Sales (40) 87198 256920 642120 1750920 2579400

Funds 65,000 - - - -

Cost of Goods sold 3944 15136 35186 92899 136021Raw materials (2.082) 2180 13372 33422 91135 134257

Machinery 1,764 1764 1764 1764 1764

Gross profit 148254 241784 606934 1658021 2443379Selling

Advertising 8000 7200 7000 7500 7700Commission (5%) 7412.7 12089.2 30346.7 8291.05 122168.95

Sub-total 3663 19289.2 37346.7 15791.05 29868.95

AdministrativeSalaries and wages 6480 12960 13920 15960 17400

Rent (Factory) 194400 194400 194400 194400 388800Rent (Trans. Truck) 500 1000 1000 1500 2000

Truck 8800 - - - 880Sub-total 210180 208360 209320 211860 409080

Total Operating Expense 213843 227649.2 246666.7 227651.05 438948.95Net income -65589 14134.8 360267.3 1430369.95 2004430.05

Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5

-500,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

net incomeFixed costVariable CostRevenue

Time (year)

Cost

(yua

n)

Breakeven Analysis

Thank youQ&A