1. 1 CMA Young Post Green Manufacturing Competition Writing Business Proposal (for junior level) Alex Tham Teaching Fellow Department of Marketing City University of Hong Kong

2. 2 Recommended Structure of the Business Proposal (25 slides excluding appendix) 1.Executive Summary 2.Company Summary 3.Products and Services 4.Market Analysis 5.Strategy and Implementation 6.Financial Plan 7.Risk management and contingency plan 8.Bibliography and Appendix

3. Language Power Point Report: Chinese or English Oral presentation: Cantonese or English 3

4. Your Task Be creative! Develop a green product, outline your concept, the manufacturing process and promotional campaign. Your promotional campaign of the product should be creative and include a good variety of media and approaches that are environmental friendly. 4

5. Marketing Scheme (Senior Level) Marking SchemeJunior Level Innovation50% Originality25% Creativity25% Commercial Viability30% Profitability10% Investment Ability10% Market Potential5% Long Term Growth Potential5% Communication20% English Paper Presentation10% (English / Cantonese / Mandarin) Presentation5% Q & A5% 5

6. 6 Marking Scheme Innovation / creative thinking 50% –Originality / modification (25%) Is the business idea an original one? Zero mark would be given if there is adequate evidence of cheating –Creativity (25%) Does it have a creative approach?

7. 7 Commercial viability (30%) Profitable (10%) –Does the business idea offer an attractive and realistic opportunity? Investment ability (10%) –Does it have a sound business strategy? –Is the proposed technology or skill capable of creating a commercial advantage? Market potential (5%) –Is there a demand for its products services? –Are the market and financial projections realistic? Long-term growth (5%) –Does the business have a good growth prospects?

8. 8 Communication Skills (20%) Paper presentation (10%) –Is the business plan clear and well written? Presentation (5%) –Does the team present the business plan clearly and convincingly? Response (Q&A) (5%) –Can the team quickly and appropriately respond to the Judging panel ’ s inquiries?

9. 9 Executive Summary Highlights of your business Value proposition (less than 30 words) Objectives of your business / your product Keys to success for the business Market potential (short term and long term) Growth prospects and sustainability

10. 10 Company Summary Valid assumptions Company Ownership e.g. Limited Company or Partnership Start-up Plan, including start-up expenses, assets and liabilities, investment and total capital

11. 11 Value Proposition A statement summarizing the core differentiation of one's product from the offerings of competitors. A clear statement of the tangible results a customer gets from using your products or services. The more specific your value proposition is, the better.

12. 12 McKinsey & Company - Corporate Finance - value proposition Our value proposition rests on an unrivalled package of strategic, transactional and financial advisory services, uniquely linked with independent judgment and deep industrial/commercial insight.

13. 13 Product and Services Product and Service Description e.g. special features and functions, technology, materials used and sourcing of products and services Any patent, copyright, license needed or acquired Future development of products or services

14. Green Manufacturing A method minimizes waste and pollution. CMA – bring green manufacturing to Hong Kong. Range from solutions for waste reduction and carbon emissions to ways to use renewable energy such as water. Find ways to 'green' industries that already exist or come up with a new concept to manufacture green products. 14

15. 15 Market Analysis Market Segmentation Market Potential: Target Market /Customers,, market needs and wants, buying behavior, trends and growth Competition and major competitors, suppliers, substitutes etc –Who, What (business model, strategy, and entry barrier) Market Research (primary and/or secondary)

16. Contemporary Marketing, 2005 FB 2601 Marketing A Famous Story about Marketing Potential: Marketing shoes Business all around the world Find a country where they don’t have their business there. According to the secondary data, the purchasing power is “ok”; able to buy as least one pair of shoes made by this company and the the target population is large enough. Question –So, what will you do if you are the boss of this company?

17. Send a team to have a market survey Facts –True secondary data –Blue sky, dusty ground No one wearing shoes Question What is Demand? Conclusion No Demand No need => No habit => No desire => No market Same as selling a comb to a monk who has no hairs. Give up this market

18. Send the 2nd Team Facts –The same facts Conclusion A huge market!!! Go! Question Why ? Currently no competition > Enter it as quickly as possible to get the first mover advantage. As long as you can sell your benefits to the market, people will buy your products.

19. Send the 3rd team Facts – Same as the previous two Conclusion –They don’t need it because they can’t see the benefits of wearing shoes. Question –So, what are the critical success factors to market shoes there? –What should this company do to market shoes there?

20. Summary TeamConclusionsConcepts 1 2 3 No demand No market People buy what you sellSelling concept People buy what satisfies their needs / solves their problem(s) Marketing concept

21. Marketing is the delivery of customer satisfaction at a profit. Kotler & Armstrong, Principles of Marketing, 12 h edition

22. 22 What is a Market? Having desire to buy Willing to buy Having authority to buy Having money to buy

23. 23 Market Potential You need users and customers. Who and where are your customers? How many? (Now and Future) Research support Useful Links on the Internet

24. Competition Direct Competitors Indirect Competitors Barriers to entry 24

25. 25 Strategy and Implementation Specific Objectives, with dates Marketing Strategy, including product, pricing, promotion, and distribution Sales Strategy, with sales forecast and programs

26. 26 Marketing Objectives Objective Direction Measure per month, quarter, or year To increase unit sales No. or % increase of product sold

27. 27 Financial Objectives Objective Direction Measure per month, quarter, or year To increase sales volume Dollars sales per a period of time

28. Risk and Contingency RisksSolutions 1. Economic downturnPrice reduction 2. Copycat of the productsPatent 3. A lot of unsatisfied consumersSurvey and product modification 28

29. 29 Important Notes Acknowledge sources of reference, information and data Attach supporting researches or documents

30. 30 Good Luck