4/15/08

Today my partner and I finished the Final Project Proposal and sent it off to Mr. Bjerke. I learned about planning for a business and marketing a product. This relates to TEKs 9(b), developing a plan for completing a project, 14(a), developing a budget for a computer project, 16(a), preparing a marketing plan for a(n) idea, product, or service, and 18(h), completing work according to established criteria. This is our Final Project Proposal completed:

Final Project Proposal

Team Members

Team Member 1 – Carly Dennis

Team Member 2 – Byron Mann

Project Part	Due Dates	Your Grade
Proposal		/50 points
Product Idea		/50 points
Product Design		/100 points
Package Design		/100 points
Print Ad 1		/50 points
Print Ad 2		/50 points
Web Page		/100 points
Web Ad		/50 points
Web Banner		/50 points
Radio Spot		/100 points
Video Spot		/100 points
Portfolio		/200 points

Total possible points on this project: 1,000

1. Describe the problem: (What is it that people need, who needs it, who will but it, why will they spend money to solve their problem)

- People need a way to carry multiple things during activities such as grocery shopping. We want to create a product in way that does not have a negative impact on the environment or the workers involved. Also, to reduce waste and consumption, a reusable item for the job is important. People who buy groceries (most everyone in our society) could use this product, and would buy it if they knew about this problem and realized the impact that other many other products have.

2. Describe the existing solutions: (What are the existing solutions for this problem – describe both commercial products and home-made solutions)

- Currently stores provide plastic and paper bags, and in some cases sturdier reusable bags. Some consumers carry canvas tote bags or other bags made from green or recycled materials from home to stores.

3. Describe your solution: (Describe how it will solve the problem, for how long, and what actions will be required by the consumer; also describe how it will work)
   - To solve this problem, people can buy reusable shopping bags made from organic materials. This will solve the problem in that it will allow people to carry the goods they purchase, but not to create waste while doing so. The bags would be very durable, and has a lifetime guarantee. The consumer would simply have to place items in the bag and carry it. The bag will have 2 straps and will be wide and rectangular; items can be placed within it and should be carried by both straps on the shoulder.
4. Describe the market:(Describe existing solutions, how much they cost, how many are sold, what companies sell them, where they are sold)
   - The average American family brings home approximately 1,000 plastic bags each year, most of which end up in landfills. Plastic bags cost retailers about 4 billion annually. Reusable bags have become increasingly popular, because they satisfy the need to carry more, but do not have to be thrown away. The average prices range for such products is about $0.50 to $30. Such products are sold at various grocery stores, on the Internet, and at various retail stores (clothing, home furnishings, and office supply stores…). Specific companies that sell reusable shopping bags include IKEA, Whole Foods, Central Market, Wal-Mart, Baggu, EcoBags, Reusable Bags, and Target.

5. Describe your price: (Describe the cost of production, the prices of existing solutions, how much people will want to pay for your solution, and what the retail and wholesale price will be)
   - As the organic production of hemp is approximately $0.90 to $0.95 per pound, to produce our product, and workers (who will hand-make the bags) will be paid more than minimum wage, it will cost approximately $10 to make each bag. With production costs at this, our product’s retail price will be about $25 and its wholesale price about $20 per bag, when purchased in quantities of 50 or more.
6. Describe your marketing strategy: (Describe how you will reach your audience, how you will convince them it is a good product and how you will get people to trust your product)
   - We will explain the problem in our advertisements, which will include print and web ads, a video, a radio advertisement, and a web page. We will explain that our product is environmentally friendly and ethically created by giving details on materials and methods of production.
7. Describe your marketing budget: (Describe how much you will spend on advertising and where you will spend that money)
   - We will spend money to create a video spot, radio spot, a web ad, a web banner, and to put 2 print ads in publications. We will spend approximately $100 or less on advertising.