Product Market Fit.docx

JAIPURIA INSTITUTE OF MANAGEMENT, JAIPUR COURSE: ENTREPRENEURSHIP WORKSHOP TERM: III Term (Batch: 2018-20)

Report on Business Model:

Eco Femi 24 Hrs (Reusable and Eco-friendly Sanitary napkins)

SUBMITTED TO: Dr. ANVAY BHARGAVA

SUBMITTED BY: PRACHI JHA

PGFD1836

MEGHAL JAIN

PGFD1826

PARAS DHANKANI

PGFD1834

RASHI BHARGHAVA PGFD1840 ACKNOWLEDGEMENT We would like to thank our director

RICHPAL CHAUDHARY

PGFD1841

sir Dr. Prabhat Kumar Pankaj for adding Entrepreneur Workshop course in our curriculum. 1

We would also like to express our special thanks of gratitude to Dr. Anvay Bhargava and Start Up Oasis for giving us this opportunity to know about how to start your own business. Their immense support and guidance are very helpful throughout this project. This project would not have been completed without the cooperation and coordination between our team members.

TABLE OF CONTENT 2

Sr.No. 1 1.1 1.2 1.3 1.4 1.5 1.6 2 2.1 2.2 2.3 2.4 2.5 3 3.1 3.2 3.3 3.4 4 4.1 4.2 4.3 4.4 5 5.1 5.2

Topic Product Market Fit Target Customers Problem Solution How Are We Different From Other Competitors Value Proposition Top 3 Features Operating Model Communication/ Customer Acquisition Ordering Delivery/ Distribution Payment Collection Servicing Financial model Revenue Model Cost Structure Unit Economics Projected Cash Flow Defensibility Intellectual Property Tacit Knowledge Continuous Learning Unfair Advantage Annexures Learnings from Workshop Business Canvas Copy

Page No. 4 4 4 5 5 6 6 7 7 7 7 8 8 9 9 9 10 10 11 11 11 12 12 13 13 19

PRODUCT MARKET FIT

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1.TARGET CUSTOMER: 

Customer: women, adolescent girls, Non–users and infrequent users of sanitary

   

napkins. Age: 14 years - 45 years Locality: rural areas, semi urban areas and in urban slums. Education: illiterate and semi-illiterate Income Group: Lower and middle class

2. PROBLEM: 

There is a lack of awareness on menstrual hygiene and usage of sanitary napkins in

 

rural areas. Rural women and poor women can’t afford sanitary napkins due to its high prices. Poor menstrual hygiene can cause fungal infections, repeated infections to RTI, cervical most cancers and liable to infertility. Other distinguished illnesses include



Yeast Infection, Chlamydia and Gonorrhoea etc. We try to prevent such chronic diseases from happening in the rural areas By creating enough awareness regarding menstrual hygiene's importance and use of sanitary



napkins, Sanitary napkins are not easily accessible in rural areas. Women feel shy to buy these



napkins directly from shops. The material used in other sanitary napkins are not degradable which has a huge impact on environment.

3. SOLUTION:  

We are going to develop a cost-effective quality product. We are going to develop an environment friendly bio-degradable and reusable



product. With the help of Small Help Groups (SHGs), we are going to spread awareness and knowledge dissemination regarding menstrual hygiene to the rural women. 4



The training is provided to SHGs with the help of women NGOs regarding the use of



sanitary napkins and its advantages. After creating basic awareness, the SHGs will be train to manufacture sanitary



napkins. After the production process starts, the marketing and sales channel would be established with the help of ANMs, ASHA workers, SHG members, etc by using the



IVRS (Interactive Voice Response System) technology. In our model, Small Help Groups (SHGs) would be assigned the task of spreading awareness, production, advertising & communicating and selling these in their respective zones using the IVRS.

4. HOW ARE WE DIFFERENT FROM OTHER COMPETITORS?    

We are trying to solve the problem of lack of awareness. We are giving generalized and personalized calls by use of IVRS technology. We are going to provide personal counselling by the NGOs and SHGs. We are using less quantity of polymers in making sanitary pads. Other companies use 1.5% - 2% polymers in their product but here we are using 0.7% polymer which have

 

less impact on environment. Our product is low cost and environment friendly as compared to others. Other companies use chemical sealants in manufacturing process but we are going to

 

use heat sealant because chemical adhesive is harmful for skin. Our product is more light-weight compared to other napkins. It absorbs more leakage and lasts for 12 hours while other companies product just last for 6 hours.

5. VALUE PROPOSTIONS:     

Our product can be washed and reused. It does not create disposable waste (made by bamboo fibres). Our product is hygienic, low cost and of good quality. It is easily available through IVRS and SHGs model. Model is simple and easily replicable. 5

6. TOP 3 FEATURES: 

Our product is made up of bamboo fibres so it is reusable and doesn’t create

 

disposable waste. It is easily available through IVRS and SHGs model. We are using cross marketing strategy with Dettol so it will reduce marketing cost.

OPERATING MODEL

1. COMMUNICATION / CUSTOMER ACQUISITION CHANNEL The process of persuading a consumer to purchase a company's goods or services. The cost associated with the important customer acquisition process is an important measure for a business to evaluate in combination with how much value having each customer typically brings to the business. In case of our product: i) Personal communication to customers in this business model can be done by NonGovernmental Organizations (NGOs) or Self-help groups (SHGs). ii) Interactive voice response (IVR) technology can be used for generalised and personalised call and messages. iii) The tasks of spreading awareness can be done through non-governmental organisations, self-help groups and interactive voice response technology. iv) Conventional mediums for spreading awareness can be through newspapers, community radio, leaflets, hooters, street plays. 6

2. ORDERING CHANNELS i) Orders can be registered through interactive voice response technology. ii) Orders can also be registered by ASHA workers, ANM workers or SHG workers

3. DELIVERY / DISTRIBUTION CHANNELS A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors, and even the internet. Channels are broken into direct and indirect forms: A direct channel allows the consumer to buy the good from the manufacturer, and an indirect channel allows the consumer to buy the good from a wholesaler or retailer. In case of our products: i) Delivery to patients and other beneficiaries can be done by selling them directly. ii) Delivery can be done by ASHA workers, SHG workers and ANM workers

4. PAYMENT COLLECTION CHANNELS i) Customers can pay at the time of delivery of product by (COD) cash on delivery method ii) Can pay in cash or using any online payment method.

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5. SERVICING 

When customer will buy our product, they need to check at that time only whether the product is ok or not. If there will be any defect it will be changed on the same time.



If they took it home and comes back with complains, it won't be solved.

FINANCIAL MODEL A financial model is simply a tool that’s built in Excel to forecast a business’ financial performance into the future. The forecast is typically based on the company’s historical performance, assumptions about the future, and requires preparing an income statement, balance sheet, cash flow statement and supporting schedules (known as a 3 statement model). From there, more advanced types of models can be built such as discounted cash flow analysis (DCF model), leveraged-buyout (LBO), mergers and acquisitions (M&A), and sensitivity analysis. 1.REVENUE MODEL A revenue model is

a

which revenue source

to

framework pursue,

for

generating

what value to

offer,

revenues. how

It

identifies

to price the

value, 8

and who pays for the value. It is a key component of a company's business model. It primarily identifies what product or service will be created in order to generate revenues and the ways in which the product or service will be sold. Average Sales Price / Packet (6Pads) = 12Rs

2. COST STRUCTURE There are two types of cost

 Direct Cost: A direct cost is a price that can be completely attributed to the production of specific goods or services. Direct Cost = Cost of purchasing raw material, Cost of packaging, Marketing and customer acquisition cost = 7Rs. 

Indirect Cost: Indirect costs are costs that are not directly accountable to a cost object (such as a particular project, facility, function or product).

Indirect Cost =SHGS Margin, IVRS Setting Up cost.

3. UNIT ECONOMICS Unit economics are the direct revenues and costs associated with a particular business model expressed on a per unit basis. =12-7 = 5 (REVENUE COST STRUCTURE +COST OF CUSTOMER ACQUISITION).

4. PROJECTED CASH FLOW 9

A cash flow projection is an estimate of the money you expect to flow in and out of your business. It includes all your projected income and expenses. A cash flow projection usually covers a 12 months period. In next 12 months we will target 60 village in Chomu district. We are forecasting to sell 49400 packets.

BREAK-EVEN POINT: Fixed cost = Rs.30000, Variable cost = Rs.7/packet, Sale price= Rs.12/packet Break-even point (in terms of packet) = 30000/(12-7)= 6000 packets

DEFENSIBILITY

1. INTELLECTUAL PROPERTY Intellectual property is protected in law by, for example, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create. By striking the right balance between the interests of innovators and the wider public interest, the IP system aims to foster an environment in which creativity and innovation can flourish 

We will defend our product through copy right.



We will defend our product through moat.



We will register and patent our company's name and logo.

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2. TACIT KNOWLEDGE Tacit knowledge is the knowledge that we possess that is garnered from personal experience and context. It’s the information that, if asked, would be the most difficult to write down, articulate, or present in a tangible form. As an example, think of learning how to make your grandmother’s famous recipes. Sure, she gave you the recipe card, but when you try it on your own you feel as if something is missing. After years of experience, she has learned the exact feel for the dough, or exactly how long something should be in the oven. It’s not something she can write down; she can just feel it. For our product: We will secure methodology and composition of materials used in manufacturing our product.

3. CONTINUOUS LEARNING We will work to reduce the cost of product by doing innovations in the product as well as in communication channels.

4. UNFAIR ADVANTAGE Unfair advantage is a subjective term that is measured by a standard of proper conduct for persons in similar positions. Unfair generally means unjust, and typically involves acts deemed unethical. Any attempt to acquire an advantage or to impose a disadvantage in a manner which violates such a standard of conduct is unfair. It may

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involve exploiting another person's vulnerability for personal, social or objective gain, or using unethical methods to achieve some benefit. For our product unfair advantage are: 

Lack of competitions in Rural areas



Need for such products



First mover advantage

ANNEXURES LEARNINGS FROM WORKSHOP PRACHI JHA (PGFD 1836) I have learnt about business strategies through this Entrepreneur Workshop. These learnings are expected to reflect my understanding of taking up entrepreneurial role within the organization and also reflect on the possibility of starting a new enterprise on the basis of learnings. In this workshop, I learnt how to make a business canvas, business plan and business model which is profitable and sustainable in the current market scenario.

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First of all, we identified a potential need of a customer for a sustainable and profitable business. After recognised the need, I learnt how to identify potential customer and lead, whom we can target. And know importance of empathy in a successful business plan. Then I understand how to make a prototype, check its feasibility, makes correction and again check it with the help of pilot plan. Then in the last I learnt how to make frameworks for different types of business models. I learnt there are four components in business canvas. First, we have to identify our target customers and then identify their pain points and provide some solutions. Then we did brainstorm to make some solutions for those problems and knew the importance of monopoly in a business. We also knew different ways of creating monopoly and work in a blue ocean. I explored different operating channels like customer acquisition, ordering, delivering, payments and services and learnt which channel is more profitable and techniques of reducing operational cost by opting correct channel. I learnt how to make a product and go through by different operating channels. In the financial model, I learnt about revenue model and cost structure. I also learnt difference between direct cost and indirect cost. Then I understood how to calculate unit economics and importance of cost of customer acquisition in a financial model. I also learnt about intellectual product related to business model, how to create monopoly in competitive environment and how to work in a blue ocean market? I feel so inspired and motivated after listening to so many distinguished and experienced professionals from different backgrounds. Not only were the presenters engaging, kind and sharing but the delegates were also interesting and kind and willing to share their experiences. I am so excited to incorporate some of these concepts and ideas into my business model. I truly think this will be one of those experiences that will have a lasting impact on 13

my life. I feel very lucky to have attended and met so many great people and I hope I can hang on to this feeling for as long as I can. Over all a great learning and good experience.

MEGHAL JAIN (PGFD 1826) The learning from this project are that We have surveyed about the need of bio toilet in nearby is extreme as there is no bio-toilet in the radius of 2 kms and it is polluting our environment and it is very hard for the daily worker labourers and especially ladies to go to washroom in open. So there is a need of bio-toilet and to maintain proper hygiene is very high as Swachta Abhiyan is going on and as a resident of India we should contribute our part by not polluting the Environment and save it from others also.

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I am very thankful to Anvay Sir and Start Up Oasis team for giving us this opportunity. The workshop has awakened the entrepreneurial bug in us and I hope it will lead to conversion of ideas into start up(s).

PARAS DHANKANI (PGFD 1834) My experience of the both the workshop was amazing. Both the workshops enabled me to open the doors of the mind and explore the business world which is full of opportunities. Workshops encouraged me to develop simple idea into a full-fledged business model. When the workshop of Design Thinking started was not very positive of it. I thought it would not be any use to me as I do not have any intention of doing my own business or start up in the near future but gradually, as the workshop started it kindled my interest in it and prompted me take initiative and come up with an idea of a business. When I along with my

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team surveyed the prospective customers, we realised that the problem which we perceive can be differ from the actual problem. To provide suitable solution we must understand the problem first, then only we can cater the need of our customers. After we came up with business idea it was time to validate our business idea to know its feasibility, demand and profitability. This aspect was taken care by the Workshop on Entrepreneurship. The mere business idea went into validation and I learnt how difficult it is to pitch one’s business idea and the challenges which come across while validating it. During workshop we prepared our product market fit, operating model, financial model and defensibility which made us have clear view of our business model. In comparison of IInd trimester, this time workshop throws light on various challenges which were to be worried about but I give a thank you vote to Chintan Sir who pushed us to see what was inside us and helped us bringing out the creativity. I am very thankful to Anvay Sir and Start Up Oasis team for giving us this opportunity. The workshop has awakened the entrepreneurial bug in us and I hope it will lead to conversion of ideas into start up(s). RASHI BHARGAVA (PGFD 1840) My learnings of the course would be to develop and implement a business plan; evaluated by writing and submitting a business plan proposal. I would now be able to will be able to find problems worth solving, advance their skills in customer development, customer validation, competitive analysis, and iteration while utilizing design thinking and process tools to evaluate in real-world problems and projects and also will be able to mobilize people and resources. To identify and secure customers, stakeholders, and team members through networks, primary customer research, and competitive and industry analyses in order to prioritize and pursue an initial target market in real-world projects. 16

Also because of it, I personally have been able to create presentations and business plans that articulate and apply financial, operational, organizational, market, and sales knowledge to identify paths to value creation through 1) company formation (for-profit); 2) social innovation; or 3) intellectual property licensing. Although 1) company formation (for-profit); 2) social innovation; or 3) intellectual property licensing have not been discussed in details I would personally developed an interest in it. I am very thankful to Anvay Sir and Start Up Oasis team for giving us this opportunity. The workshop has awakened the entrepreneurial bug in us and I hope it will lead to conversion of ideas into start up(s).

RICHPAL CHAUDHARY (PGFD 1841) Here are my takeaways from Workshop on Entrepreneurship: 1. Empathize -Start with the human need get into your learner’s space, put yourself in their shoes. Don’t just look at what they say and think but also what they do and feel, as these things can be quite different. 2. Look outside – find analogous situations to inspire solutions. 3. Hook into what people are already doing – there may not always be a need to reinvent the wheel, it may be that small adaptations are all that’s needed. 4. Prototype – this one is really important. Prototype early and at low cost to mitigate risk and to build your business case. 17

5. Design not for people but with them. Engage your learners in innovation and they will become supporters. 7. Look for patterns in behavior or actions that will help you gain insights and spot opportunities. 8. Brainstorming is a great tool but certain rules must apply – defer judgement, encourage wild ideas, build on the ideas of others but always stay focused on the topic. 9. Evolution becomes inevitable when you use a design thinking approach. 10. Bring a possible change in society for the betterment in future of humanity.

I am very thankful to Anvay Sir and Start Up Oasis team for giving us this opportunity. The workshop has awakened the entrepreneurial bug in us and I hope it will lead to conversion of ideas into start up(s).

Business Model Canvas:

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