Ethereal Paper Coffins

Ethereal Manufacturing Company is engaged in the manufacture of affordable coffins made from recycled paper using the papermache technology, a uniquely Filipino craft.

Ethereal Coffins will be a practical alternative to wood-based coffins. They are more affordable, durable, aesthetic and, most importantly, environment-friendly. If our company takes-off on a positive direction, we will provide jobs to 25 out-of-school youths and persons with disabilities. By the fifth year, our manpower will increase to 65 employees.

The prices of our paper coffins depend on the sizes — namely: small size with dimensions of 24"L x 10"D x 12"W (€24) and regular size with dimensions of 72"L x 18"D x 24"W (€40).

To produce a paper coffin, we will use good lumber for the frame, recycled paper to be converted into papermache for the body and cover, fixtures such as handles and knobs, glass for viewing, and fiber field and satin for the interior part of the coffin. The steps in production are simple, easy to learn and adapt, and require low technology.

To cater to varied tastes of our customers, we have come up with different designs and styles, e.g. plain (white, black, silver, navy blue, maroon, brown); monochromatic, wood (oak, mahogany, bamboo), floral (rose, orchid, sunflower), thematic (royalty, cherubs, Chinese characters, religious images), and corporate seals or insignias.

The primary target markets of Ethereal Manufacturing Company are the individual markets within the broad D and E Classes. We are also open to corporate or group markets like the government agencies (National Disaster Coordinating Council, Department of Social Welfare and Development and local government units); NGOs (Caritas Manila, Red Cross); international organizations (United Nations High Commission on Refugees, UNICEF) and cooperatives.

The secondary target markets are the A, B and broad C Classes. Because paper coffin is not only for burial purposes, it can also be used for crematory purposes.

The company’s initial investment of €166,129 will grow in terms of revenues at 61% per annum and in terms of net assets at 38%. Payback is 3 years.

The Competitor Analysis identifies some advantages of our product compared to our competitors. Ethereal Paper Coffins are more environment-friendly, affordable and provide decent burial for the poor.

In the paper coffin industry, there is no existing leader as we are pioneering in this new industry. However, in the generic coffin industry, Eternal Life is the apparent leader. They produce metal and wood-based coffins.

Ethereal Paper Coffins have a strong potential of becoming the industry leader because it possesses all the key success factors (KSFs): quality products (style and durability), price and good relationship with intermediaries (funeral parlors and agents). Customized quality paper coffins are made to suit the preferences of the bereaved families. We have the lowest selling price in the market. Our marketing strategies (particularly in sales and promotions) will seek to forge strong alliances with all intermediaries as manifested by a well-thought out budget and well-skilled and personable marketing agents.

The company’s main objective is to provide low cost quality coffins for Third World countries starting with the Philippines.

An important part of our company’s Sales Plan is a promotion strategy which gives 1 free coffin to the funeral parlors for every 5 orders made inducing intermediaries to make volume orders. We have a 30-day credit policy, consignment policy and a 3-month warranty policy. Government and insurance companies can include paper coffins in their memorial plan packages.

In our PR and Advocacy Plan, we will sponsor 12 coffins to indigents upon approval of company requirements. We will donate 10% of the company’s annual net income to a chosen charitable institutions.

Our Advertising Plan will include promotional brochures, standing signages, tarpaulins and posters; and fliers. We will promote our products and our programs in various media.

The main business partners are Marie Catherine Castillo (General Manager), Tristan Jason Gallardo (Production and Quality Control Supervisor) and Franciz Josef Valenzuela (Finance and Administrative Supervisor).

The initial investment of this general partnership is estimated at €166,129 to fund the operation of the business and acquisition of equipment. The initial investment is all equity coming from the partners.

Ethereal Manufacturing Company will initially provide jobs to 25 out-of-school youths and persons with disabilities. By the fifth year, our manpower will increase to 65 employees.

For every employee that we hire, more employees are hired on the supplier side and on the coffin retail trade. This ripple-effect makes our business significant to the community.

The provision of inexpensive alternative coffins for the poor liberates them from a potential vicious cycle of indebtedness and even psychological trauma.

In the Philippines, many politicians are asked for burial contributions by their constituents. Through this product, politicians can spread the benefits to even a greater number of indigents.

Moreover, unused paper during production can be recycled again leaving our production process, as much as possible, with zero waste.

After 10 years, the incorporators of Ethereal are looking for a possible exit strategy. If the company has penetrated the global market by then, the original partners may want to have an initial public offering (IPO) to continue providing low-cost quality coffins to the larger and more challenging the global market.