Blue Sphere: Karibon Facewear

Product/services
Existing facemasks in Vietnam offer no protection from chemical pollutants. In contrast, Fresh Facemasks contain a filter of activated carbon fabric. Activated carbon fabric removes a wide range of air borne chemical pollutants and is used in a number of industrial products including car and aircraft air-conditioner filters.

Profit generation
The cost point for production, packaging and distribution is USD$1.09. The sale price to retail outlets will be USD $3. Based on a projected sales volume of 20,000 masks in year 1, total cash inflow is predicted to be USD $24,800 with a net cash flow of USD $3,211. By year 2, the projected sales volume is 95,000 resulting in a total cash inflow of USD $76,000 and net cash flow USD $4,221. This includes payment of dividends of USD $6,500 up to the final quarter of year 2.

Labour
The masks will be sewn together using industrial sewing machines. Year 1 will employ four women with basic skills in the operation of a sewing machine. In the second and third year a further two women will be employed. A part-time production manager and sales and marketing manager will control the quality of production and sales of the company.

Customers
Based on the market research findings 60% of males and 97% of females have worn a facemasks. The current population of Hanoi and Ho Chi Minh city is 9,262,251. If we assume 62% of the population are aged 18-45 years old. If we then assume 20% of these are early adaptors and consider purchasing a Fresh Facemask. The market research found 4 in 100 of these early-adapters would be willing to pay the retail price of 50,000 VND (USD$3) and would therefore be more likely to convert to our product for subsequent facemask purchases in the first year, the annual sales will be 47,111.

Supply chain
Cotton fabric, elastic and cotton thread will be purchased at Long Bien fabric market. The sales will take place in bulk orders will local fabric retailers. The entrepreneurial team intends to develop long-term relationships with 2-3 suppliers to ensure a consistent and reliable supply of cotton fabric, elastic and cotton.

Activated carbon fabric (ACF) is not currently manufactured in Vietnam. Manufacturers of ACF exist in Taiwan, China and the United Kingdom. Contact has been made with six suppliers. The most suitable supplier was identified in the United Kingdom. Although not the lowest cost, the United Kingdom firm Calgon Carbon were the only supplier that could provide evidence of their production standards and the extractive capabilities of the ACF - www.chemvironcarbon.com/en/carbonclothintro. The ACF has been registered under the name ZORFLEX®. Calgon Carbon has achieved ISO 9001 certification for the manufacture of ZORFLEX® cloth and in addition holds ISO 14001 environmental standard.

Male, female and pregnant female motorbike riders will be our key target market. To initially reach this target audience A5-flyers will be handed to motorcyclists when stopped at the traffic lights at busy intersections. This type of marketing distribution is common in Hanoi and Ho Chi Minh city.

Peer-to-peer marketing has been recognised as a vital source of increasing consumer awareness of new products. To encourage peer-to-peer marketing the Fresh Facemasks logo will be displayed on the outside of all Fresh Facemasks. The logo will be located on the bottom right-hand corner of the mask. This will ensure all surrounding motorcyclists and pedestrians will identify a Fresh Facemask.

Fresh Facemasks will be packaged in a branded, cotton bag with key ring. The lettering on the bag will be large and will ensure potential customers will be able to read the brand name from a distance of up to 4 meters. This will act to support peer-to-peer marketing as owners of Fresh Facemasks are identified when they display their motorbike keys.

Eye-catching point of sales displays will be provided to retail vendors. The display will be based on the model used to display sunglasses. The display would rotate on a single axis to allow the customer to select their favourite colour, pattern and size. A5 posters will be placed on the windows of all retail outlets that stock Fresh Facemasks. Stickers will be produced that can be placed on the rear fender of motorbikes.

Publicity through mass media will be actively sort through a press kit that highlights the current state of air pollution in Vietnam and the unique selling point of Fresh Facemasks. The press kit will be supplied to national newspapers, TV and radio stations, newsletters and business journals. Journalists will be sent a complementary Fresh Facemask to introduce them to the product.

Competititors include exisiting facemasks. These facemasks contain only cotton filters and offer no protection from chemical pollution. This will be highlighted in all promotional materials. International competitors do exist however they are very expensive (up to USD $50) and are not currently distributed in Vietnam.

The unique selling point will be the ability of Fresh Facemasks to remove chemical pollutants. It will be stressed in all marketing material that Fresh Facemasks offer a level of protection from chemical pollutants that existing facemasks are incapable of providing.

Thuy Pham Thi Hoang has two Bachelor of Arts degrees, one majoring in finance and accounting and the other majoring in English Language. She will become a member of The Association of Chartered Certified Accountants (ACCA) of United Kingdom by the end of 2008. Thuy acted as Director of an NGO that had 12 employees. Her outstanding financial management skills are combined with practical knowledge in human resources and interpersonal skills. Thuy has successfully managed the financial management of numerous community business development projects.

Ben Cole has been working in the environmental health and community development sector since 2000. He has worked in Sri Lanka, Papua New Guinea and Vietnam. In 2004 he founded and chaired an NGO that supports agricultural micro-enterprises in Sri Lanka - www.double0one.org This experience has provided him with hands-on experience in researching, funding and evaluating business projects in a developing country context. For further information on the micro-enterprise please visit - digamadulla.wordpress.com/news/

Over the last 10 months we have invested our spare time in the research and development of this business proposal. This includes; selecting an activated carbon manufacturer, developing and testing prototypes, conducting market research surveys and initiating partnerships with existing NGOs in Vietnam. We are confident this is a viable business plan that provides human health and financial benefits.

From our past experiences in business we understand the vital role of market research in creating a product that is suitable for the target consumer. In developing countries, price sensitivity is a top priority in launching an innovative product.

As the company establishes its sales base, the company's revenue will be used to support environmental health promotion activities selected and managed by the female employees. These activities will have a direct impact in empowering lower-income women to take local action to create a safer and cleaner environment for themselves and their community.

Activities could include: conducting education on child nutrition and family planning; protection of young babies from injury from air and water-based pollution and understanding the sources of environmental pollution in their local community. The benefits of these programs will continue for 10-25 years.

Direct employment of 6 low-income women and provide them with a substantial increase in their daily income in the first year.

Support local fabric markets with regular purchases of cotton (each month) and sewing machines (six monthly).

Increase living standard of 12 low-income women and their families over three years. This income will allow the women to make their own contributions towards their family's health, housing, education and recreational activities.

Training will take place in business management and financial literacy with all employees. The company will be run as a bottom-up enterprise. All employees will be offered a regular opportunity (monthly meetings) to contribute their ideas towards the management of the company. These meetings will encourage the employees to seek out new opportunities for establishing their own SMEs over the next 5 years.