PROPOSAL AND

MARKETING PLAN
RICE HUSK MANIA

Team Name: Mega-Film-Trons

Members:
1. Saad Ul Bari
2. Batool Imran
3. Hasan Imran
4. Raazi Ali Khan

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RICE HUSK MANIA

Executive Summary
Nowadays, plastic utilization is increasing rapidly. This is because plastics can be used in many
applications such as packaging, automobile parts, etc. The need for such large quantities of conventional
plastics and their dominance over other materials is due to their excellent “long life” properties. These
properties include resistance to chemical reactions, especially enzymatic reactions. For example, it can
take up to 100 years to degrade only a few grams of plastic (such as polyethylene) under normal
environmental conditions. Because natural processes cannot degrade plastics in a short period, they are
left as ‘plastic waste’, causing environmental problems. Methods normally used to destroy other types of
waste such as burning and burying are not suitable for plastic destruction. The major problem in plastic
packaging film manufacturing today is compromises made on plastic film quality, its biodegradability
leading to humungous disposal and landfilling problems all around the world.
An effective way to solve this problem is by incorporating the plastic film with a renewable biomass to
improve the degradability of composite plastics with prolonged life. Rice Husk is a widely available
biomass material that is produced during rice milling. It is reported that about 0.23 tons of rice husk is
being generated for every ton of rice-produced meaning millions of tons of rice husk wastage every year.
Its continuous generation leads to a major disposal problem due to its limited commercial application.
The silicate component (15-17%) in the Rice Husk improves the mechanical performance of the
composite material. Therefore, utilization of rice husk as a filler to develop an environmentally friendly
composite packaging film, conforming to the price of conventional one with enhanced mechanical
properties can be a major breakthrough in packaging world.
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Business Model (constituted after observing multiple new startup

statistics)

CATEGORY AMOUNT ( PKR)

ESTIMATED COST OF FI LM (PER KG) 80-120 PER K G

TOTAL DIRECT COST 8, 95, 86,412

TOTAL INDIRECT COS T 2, 72, 65, 428

FIXED CAPITAL INVEST MENT (D+I) 11, 68, 51, 840

TOTAL CAPITAL INVEST MENT 13, 80, 00, 000

WORKING CAPITAL (15% OF TCI) 2, 07, 00, 000

*ALL PRICES STATED I N PKR ARE ACCORDING TO THE CUR RENT EXCHANGE RATE.

Marketing Plan
(A) MISSION STATEMEN T:
Generating employment for the skilled and unskilled youth by using the silica component present in rice
husk to produce high tensile strength and disposable LDPE films for multiple purposes.

(B) DIAGNOSIS:
In the current atmosphere of Pakistan, the production of LDPE films has seen a steady boom with the
application in packaging increasing as the uses are varied and the need is great. All food industries,
courier services, glass ware industries are active customers of this sector. Tripack Films pvt. Ltd., for
example, is the lead competitor of this sector and has captured around 70% of the total market of
Pakistan. Our target is to meet the same capacity in next 10 years of implementing the idea.

(C) PRODUCT DETAILS:

1. Tradename: RHM-Pack©
Applications: Confectionary, biscuits & snacks, lamination with paper & other substrates.
2. Tradename: RHM-Serv©
Applications: High Tensile equipment packaging.
3. Tradename: RHM-Frag©
Applications: Fragile equipment packaging.
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(D) MARKET:
Customer details:

Rice Husk Mania will be focusing on packaging film distributors who want to initially sell in Pakistan and
then widen their reach globally. These are mostly larger companies, and occasionally medium-sized
companies.

Our most important group of potential customers are executives in larger corporations. These are
marketing managers, general managers, sales managers, sometimes charged with international focus and
sometimes charged with market or even specific channel focus. They do not want to waste their money on
unsteady potentially defective packaging material and are always on the look out for manufacturers
offering superior properties in the same cost since they are very sensitive to risking their company's
name and reputation.

Market segmentation

 The food industry particularly the packaging department is always in need of a sturdier durable
film that can handle the stress of transporting and that of the loading and unloading of product.
Damaged packaging affects the overall presentation of the product and its customer value as
customers buy what they see as impeccably undamaged. Additionally the degradability value of
our films also makes it a potential product for the consumers as it is environmentally friendly.
 The courier services also demands high tensile strength films in order to sustain the burden of
loading and unloading of deliveries and to minimize the number of packaging layers required.
 The glassware industry demands the same properties for the same purposes as greater the
workable strength higher will be the safety of the fragile equipment.

(E) DISTRIBUTION:

The target audience shall benefit from our product through a distribution channel (B2C Company).

(F) PROMOTIONAL STRA TEGY:

We will be targeting B2C firm in order to introduce our item for consumption to the market and one of the
tasks assigned to the marketing team would be convincing the customer for our product by doing
comparative analysis with the existing product. Under this umbrella, we shall be utilizing cause marketing
as our prime tool to garner interest of our target audience. The environmental friendly nature of our
product as compared to its competitors supports this vision and will be the forefront tagline of our
product series.

Social networking and viral marketing shall also be tools that will be employed extensively with ‘Search
Engine Optimization’ and creating a robust Google+ presence, being a vital area of concern in this respect.

Cross Promotion, paid media advertising and direct selling shall also be strategies that will be frequently
used.
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Competitive Advantage
Our product boasts superior properties in terms of mechanical strength compared to its competitors and
gives an edge as far as degradability is concerned, which is its prized specification of interest.

Improved product specifications comprise of the following,

 Variable Thicknesses
 Low Haze %
 Improved Elongation
 Improved Tensile Strength
 Improved Impact Strength
 Broad Heat Seal Range & Strength

The above-mentioned specifications make our product distinct from existing ones. Diverse marketing
plan is also crucial in targeting market aspects.