Table of Contents

1. Introduction.................................................................................................................................2
2. Marketing Feasibility..................................................................................................................3
3. Organizational Feasibility...........................................................................................................8
4. Basic Financial Requirements..................................................................................................11
5. Socio-Economic Impact.............................................................................................................12
6. Conclusion..................................................................................................................................12
References..........................................................................................................................................13

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 1. Introduction
When it comes to picking a business to establish, the general rule is to go for one whose
products or services are required in our daily lives. A compostable bag manufacturing
company is one of these enterprises. Asia is the world's second-largest plastic consumer, with
a total consumption of around 55 billion tons of plastic bags and a trash generation of roughly
eight million tons. Compostable materials are those that are made from natural resources
(Napper & Thompson, 2019). As a result, SpreadGreen is focusing on offering biodegradable
bags as a disposable and biodegradable alternative to polyethylene and paper bags in Asia
under the umbrella of the sole proprietorship. The business will start its production facilities
after 2021. The initial capital investment will be $41,350, we have $50,000 in cash on hand,
and we will incur a loss that will progressively reduce as our product becomes more well-
known in the market. The following is a breakdown of startup costs:

Equipment 30,000
Raw material 2,000
Rent & deposit 5,000
Modeling cost 2,500
Marketing 200
Transportatio
1,500
n
Other costs 2,500
Cash reserve 50,000

There is little need for finance at the launch phase, but if investments are required for
development, we may raise cash through bank, government, and partnership programs once
the company has been established.

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 2. Marketing Feasibility
2.1. Business Environment Analysis & Customer Demographics

At least 8 million metric tons of plastic are dumped into the ocean each year, the comparison
of one garbage truck discharging its contents into the ocean every minute. It kills sea life and
birds when they eat it or get trapped in it. In the water, the plastic breaks down and becomes
tiny enough to enter the food chain (France et al., 2014).

Figure 1: (Source: The wall street journal)

SpreadGreen is a collaborative effort that brings together important stakeholders, such as

inventors and manufacturers, to rethink and rebuild the future of plastics, beginning with
packaging. Compostable bags are constructed of natural elements that degrade naturally in
the environment when natural microorganisms in the environment metabolize and break
down the compostable bag's structure.

Because the world is moving toward climate change, the retail business has completely
embraced the usage of biodegradable bags. This demonstrates that there will be a sizable
demand for biodegradable bags in our society, and as a result, a slew of investors are flocking
to the compostable bag production business. Manufacturers of compostable bags are part of

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the manufacturing business, and companies in this business produce compostable goods,
which are organic polymers made from sustainable biomass sources.

Over the five years leading up to 2020, the compostable manufacturing sector has seen
consistent expansion. Concerns over the future of petroleum-based plastics fueled demand for
biodegradable, recyclable, and long-lasting alternatives. Furthermore, the unpredictability of
crude oil prices throughout the world prompted big plastics companies to look for
alternatives.

Figure 2: World Production of Plastic Material, 2018 (Source: PlasticsEurope)

During this time, rising environmental consciousness prompted the government and big
corporations to push the use of biodegradable materials, which benefited the sector directly.
Because the sector is still in its infancy, research and development costs are significant.

2.2. Products Offered

Compostable bags are manufactured from sources such as vegetable oil, cornstarch, plants, or
microorganisms and are designed to decompose (Deconinck and de Wilde, 2013). When
compared to standard plastic packaging, the finished product is less hazardous to the
environment. Plants grown from renewable basic resources are typically used to make
compostable bags (Biocycle, 2012).

2.3. Competition Analysis & Competitive Advantage

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A careful investigation of the biodegradable bag manufacturing sector finds that during the
last decade, the market has become significantly more intensively competitive. Chemical
fillers are used in traditional plastic, which can be damaging to the environment when
expelled when the plastic is melted down (Iwata, 2015). Corn oil, orange peels, starch, and
plants are among the ingredients in SpreadGreen biodegradable bags. Different from paper
and cotton bags, biodegradable plastic bags are created from natural materials and do not
include these chemical additives. They also do not offer the same environmental concern.

2.4. Pricing Strategy and Competitive Pricing

Quite apart from quality, one of the most important factors that give Compostable plastic bag
manufacturing businesses an advantage is pricing. It is natural for consumers to seek out
spots where they'll get such bags for a lower price, hence why big industry players will
always attract a large number of customers. SpreadGreen will thus use a price skimming
technique.

2.5. Advertising and Promotional Strategies

 Place ads in local newspapers, radio stations, and television stations.

 Encourage loyal customers to spread the information through word of mouth.
 To market, the company, internet, and social media channels must be used.
 Distribute leaflets and handbills in and around the neighborhood's target regions.
 Promote Compostable plastic bag manufacturing firm on official site and use
marketing tactics to drive visitors to it.
 All of SpreadGreen’s official cars and vehicles should be branded, and all of the
employees should wear the branded shirt or cap regularly.

2.6. SWOT Analysis

Strengths Weakness
 Compostable plastic bags are made  The expense of developing new or
from all-natural plant materials enhanced biodegradable bag
 It does not pose the same risk to the solutions is far more than the cost of
environment the usual bag your consumer would

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  Compostable plastic bags do not require
release carbon, because no carbon is  Market competition
involved in the manufacturing
process
 They are able be broken down by
naturally occurring bacteria
 Beneficial to the environment

Opportunities Threats
 Consumer spending for more  As a cost-cutting measure, large
biodegradable products is increasing, shops may produce their
which may pique the interest of biodegradable bags, reducing the
manufacturers who want to meet market and increasing your
their customers' needs. susceptibility.
 As fossil fuels become scarce and oil
costs increase, the demand for
biodegradable bags grows as a
viable solution to the problem.
 As farmers cultivate more natural
items like sugar cane, maize, and
bamboo, ingredients for
biodegradable bags will become
more easily accessible and less
expensive.

2.7. Market Research

Target Market: Compostable bags are required for packaging items purchased from a
variety of pharmacy shops, department shops, grocery shops, supermarkets, and boutiques.

Market Size & Trends: Indeed, the increased pollution from petroleum-based plastic bags
and other similar items is harming the environment. The medical and food industries'

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growing reliance on environmentally friendly plastic packaging is a significant element
driving demand for Compostable bags and sacks.

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 3. Organizational Feasibility
3.1. Organizational Structure & Chart

3.2. Job Description with Corresponding Salary Appreciation

 Production Manager

Job Description: The production manager will be responsible for:

 Make a production timetable and plan.
 Determine and order the resources necessary, as well as maintain acceptable stock
levels.
 Estimate expenses.
 Keep an eye on the production process and make any adjustments to the timetable.
 Engage with various departments, teams, and firms.
 Ensure that health and safety regulations adhere.
 Ensure that client orders are delivered on schedule and within budget, as well as
ensuring quality standards and objectives are fulfilled.
Salary: $8,000

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  Marketing Manager

Job Description: The marketing manager will be responsible for:

 Sets marketing objectives based on previous performance and market expectations.
 Market trends, demographics, price schedules, rival products, and other pertinent
facts are researched and analyzed to develop marketing plans.
 Approves and supervises the design of promotional materials, website content, ads,
and other marketing-related initiatives.
 To assist in the completion of marketing initiatives communicates with various
media owners, advertising agencies, publishers, and other services.
 Responds to collected data and other inputs by adjusting marketing campaigns and
plans as appropriate.
Salary: $8,000

 Foreman (Fabrication)

Job Description: Foreman will be responsible for:

 Supervises the building of fabrication yards.
 Installation and pre-fabrication operations are coordinated and interfaced.

 Coordinates the activities of subcontractors engaged in the assembling process.

 Ensures that safety procedures and quality requirements are followed.
Salary: $4,600

 Foreman (Assembly)

Job Description: Foreman will be responsible for:

 Maintaining daily production and delivered items records and paperwork
 Employee guidelines and shift schedules are being planned.
 Creating and delivering monthly and annual reports to production or manufacturing
management
Salary: $4,600

 Sales Officer

Job Description: Sales Officer will be responsible for:

 Creating and maintaining long-term consumer connections.
 Making phone calls to potential consumers to explain the company's offerings.
 Developing a thorough understanding of the company's goods.

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  Keeping track of all transactions, booked customer appointments, and customer
complaints in a precise manner.
Salary: $4,600

 Sales Persons

Job Description: Salespersons will be responsible for:

 Provide product information to customers.
 Purchases are rung up.
 Complaints should be brought to the attention of management.
Salary: $2,000

 Factory Workers

Job Description: Factory workers will be responsible for:

 Keeping the workstation and manufacturing floor clean.
 Following the standards and criteria for the manufacture.
 Putting the finishing touches on things and packing them for shipping.
 Maintenance and operation of machinery and manufacturing line equipment
Salary: $1,500

4. Basic Financial Requirements

4.1. Assumptions
Product sold in January = 22,000
Price = 0.1 USD / bag
Demand will grow by 2% each month
4.2. Projected Monthly Sales

Pro Price Dem Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
d Sales
Bags 0.1 2% 2200 2244 2289 2335 2381 2429 2478 2528 2578 2630 2682 2736 30,000

4.3. Business Expenses & Projected Income Statement

GreenSpread
Projected Annual Income statement
For the year ended 2021 - 2023

10
  
2021 2022 2023
   
Sales: $ $ $
66,42
Total sale 30,000 99,667
0
26,56
Cost of goods sold 12,000 35,866
8
  39,85
Gross profit 18,000 63,800
  2
Operating expenses:  
  14,08
Salaries 10,080 16,080
  0
Security charges   2,400 2,400 2,400
  25,20
Rent   24,000 26,460
0
Security Deposit   3,000
Modeling cost   1,500
Furniture   2,640
Crockery 200
Air conditioners 2,000
Electricity charges 4,200 4,200 4,200
Selling, general, and
800 840 882
marketing
Maintenance 300 300 300
Other expenses   1,000 1,000 1,000
48,02
Total expenses 52,120 51,322
0
Income before income tax   -34,120 -8,168 12,478
Income tax 35%  1,1942 2,158 -4,367
 
Net income -22,178 -4,009 8,110
 

5. Socio-Economic Impact
5.1. Competitive Position & Business Contribution

Growing awareness about environmental conservation, the use of bio-based or natural

resources for producing goods, and the formation of varied rules across nations for optimal
use of natural resources and waste management have increased the demand for compostable
bags over the last decade. The overall development of the Compostable packaging market is
predicted to be boosted by increased customer desire for compostable materials, as well as
rising environmental concerns. Food and beverage packaging is predicted to cause the fastest
growth in the compostable packaging industry (WEF, 2016).

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The high demand for environmentally friendly and reusable bags in the retail business is a
major driver of their acceptance. The market is projected to benefit from the falling price of
major raw materials used in the production of compostable bags in numerous countries
(Stevens, 2001). Bio-based compostable bags are used in a wide range of industries,
including fibers, medicine, packaging, and agriculture. In the packaging industry, there is a
huge need for bio-based compostable materials.

After 3 months in the maritime environment, the compostable bag samples had vanished, but
experts say additional research is needed to determine what the degradation products are and
to assess any significant ecological repercussions. They discovered that composting material
composed of recycled materials had no beneficial effects on soil nutrients or composition.
Natural fibers in compostable bags do not provide adequate nutrients to plants and break
down too quickly to serve as a land component (Song et al., 2009).

6. Conclusion
The biodegradability of components is determined by several variables. Variable settings
have variable humidity, temperature, and microbe populations, leading to diverse
biodegradation kinetics. A single material solution that biodegrades rapidly in all types of
ecosystems is implausible because the requirements for some uses are incompatible with
quick biodegradation in particular settings. Looking to the future, biodegradable bags could
become the commercial polyethylene of the future, but only in situations where degradability
is a must.

References
BioCycle. (2012). Industry news - Zero waste olympics. BioCycle 53: 63. Available at:
http://www.biocycle.net/2012/08/14/industry-news-29/

Deconinck, S. & de Wilde, B. (2013). Benefits and challenges of bio- and oxo- degradable
plastics, a comparative literature study. Final Study, O.W.S. for PlasticsEurope.

France, J., Orlando-Bonaca, M., & Mavrič, B. (2014). Testing of the biodegradability of
plastics in the marine environment. In: GOF 2014. Electrotechnical Society Zagreb, zagreb,
Šibenik, Croatia, 61–66.

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Iwata, T. (2015). Biodegradable and bio-based polymers: Future prospects of eco-friendly
plastics. Angewandte Chemie International Edition 54: 3210–3215.

Napper, I. E., & Thompson, R. C. (2019). Environmental Deterioration of Biodegradable,

Oxo-biodegradable, Compostable, and Conventional Plastic Carrier Bags in the Sea, Soil, and
Open-Air Over a 3-Year Period. Environmental Science & Technology. 

Song, JH. & Murphy, RJ. & Narayan, R. & Davies, RBH. (2009). Biodegradable and
compostable alternatives to conventional plastics. Philos Trans R Soc Lond B Biol Sci 364:
2127–2139.

Stevens, ES. (2001). Green plastics: An introduction to the new science of biodegradable
plastics. Princeton, USA: Princeton University Press.

World Economic Forum. (2016). The New Plastics Economy – Rethinking the future of
plastics. World Economic Forum, Ellen MacArthur Foundation and McKinsey & Company.
Available at: http://www.ellenmacarthurfoundation.org/publications

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