SAINT LOUIS UNIVERSITY

SCHOOL OF ACCOUNTANCY, MANAGEMENT,

AND INFORMATION SYSTEM

DEPARTMENT OF ACCOUNTANCY

AY 2022 - 2023

BUSINESS MODEL CANVAS: ZERO WASTE

GROCERY STORE “PICK N’ MIX”

(PROPOSAL PAPER)

DAMAYON, SAMANTHA FAYE

EUGENIO, NINO ALBERT

FLORES, SHEKINAH MARI

MAWIRAT, LARA JULIENNE

ROSARIO, SUNSHINE FAITH

MAY 2023
Societal Problem Description

The Philippines face several societal problems that need to be addressed. One of the main

issues is the need for more awareness and understanding of the importance of reducing waste and

promoting sustainable living practices. Many Filipinos are unfamiliar with using reusable

containers and bags or may need access to information about how to do so.

Another challenge is the need for more infrastructure and support for waste reduction

initiatives. For example, waste management systems in the Philippines are often inadequate, and

there may be insufficient facilities for recycling or composting. It can make it difficult for zero-

waste grocery stores to operate effectively and may discourage people from participating in

waste reduction efforts.

Accessibility is also a concern. Zero-waste grocery stores may be located in urban areas,

making it difficult for people in rural areas to access them. Additionally, many Filipinos rely on

public transportation, which may need to be more convenient for transporting reusable containers

or bags to the store.

Affordability is another issue. Sustainable products, reusable containers, and bags may

be more expensive than conventional products and single-use plastics, making it difficult for

low-income Filipinos to access them. It can perpetuate inequality in access to healthy and

sustainable food options.

Lastly, cultural attitudes towards waste and consumption may present a challenge.

Traditional Filipino values prioritize hospitality and generosity, which can manifest in large

amounts of food waste. To add to that, single-use plastic is often seen as a convenient and

practical solution for packaging and storage.

 While zero-waste grocery stores that promote the use of reusable containers and bags

have the potential to address environmental issues in the Philippines, there are societal

challenges that need to be addressed to make them accessible, affordable, and culturally relevant

to all members of society.

Baguio is one example of a sustainable city. Baguio City's current administration

disallows the use of plastics in the city, and locals are encouraged to use reusable bags in grocery

stores. Furthermore, here are sustainable stores in the Philippines: the sustainable Kathy Lifestyle

store in Cubao Quezon City, Humble Market, a sustainable bulk store in 2F Glorietta, Makati;

back to Basic Eco store, a refill grocery store located at 30 Maginhawa St., UP Village, QC.

Luminary Ph in Makati City.

Brief Business Description

Focused on reducing the amount of waste generated by the traditional grocery shopping

experience. In a zero-waste grocery, the goal is to eliminate packaging waste and promote the

use of reusable containers and bags. The zero-waste grocery concept has gained popularity in

recent years as consumers become more aware of the impact of their shopping habits on the

environment. By reducing packaging waste, supporting local and sustainable producers, and

encouraging the use of reusable containers, zero-waste groceries offer a more sustainable and

conscious approach to grocery shopping.

Customer Segments

A zero-waste grocery store is a type of store that aims to reduce waste by providing

products that are package-free or have minimal packaging. Customers who are environmentally

conscious and want to reduce their carbon footprint are the primary target market for zero-waste
grocery stores. However, this segment can be further divided into subgroups based on specific

needs and preferences.

Eco-conscious consumers. These customers are passionate about reducing waste and

deeply concerned about the environment. They prefer to buy sustainable products and

actively seek businesses aligning with their values. They are willing to pay a premium for

eco-friendly products and are often early adopters of new green initiatives.

Health-conscious consumers. These customers are focused on their health and well-

being and prefer to buy organic, non-GMO, and natural products. They are interested in

products free from harmful chemicals and preservatives and are willing to pay more for

products that promote health and wellness.

Frugal consumers. These customers seek ways to save money and reduce waste. They

are attracted to zero-waste stores because they can buy products in bulk and pay only for

what they need. They are also interested in reusing and recycling containers to reduce

waste and save money.

Convenience-oriented consumers. These customers are busy and value convenience

above all else. They are attracted to zero-waste stores because they can find everything

they need in one place and can avoid the hassle of dealing with excessive packaging.

They are willing to pay a premium for the convenience of shopping at a zero-waste store.

Ethical consumers. These customers are concerned with their purchases' social and

ethical implications. They are attracted to zero-waste stores because they promote ethical

and sustainable practices, such as fair trade and supporting local farmers. They are

willing to pay more for products that align with their values.
 Zero-waste enthusiasts. These customers are passionate about the zero-waste lifestyle

and actively seeking ways to reduce waste. They are likely to be more experienced with

zero-waste practices and are looking for a store that can provide a wide range of package-

free products to help them continue their journey towards zero waste.

Community-oriented customers. These customers value building connections with their

local community and are attracted to businesses that share this value. They are looking

for a store that promotes sustainability and supports local farmers and businesses. They

may be willing to pay a premium to keep a store that aligns with their values and helps to

build a stronger community.

In summary, the customer segment for a zero-waste grocery store includes eco-conscious,

health-conscious, frugal, convenience-oriented, and ethical consumers. Each subgroup has

unique needs and preferences, and a successful zero-waste grocery store should aim to cater to

all of these segments to ensure a diverse and loyal customer base.

Value Proposition

Our business offers novelties and a lifetime experience for all our customers. The

proposed zero-waste grocery store is:

(1) Sustainable. It reduces packaging waste and encourages reusing, as well as recycling

refillable containers. As implied, it is a zero-waste shopping experience;

(2) Cost-Effective. Affordable prices are available for our customers. Furthermore, food

and other products are thoroughly used before refilling goods to lessen excess purchase;
 (3) Modernization. The current trend for the future is sustainable and convenient.

Reusable packaging has been the rage for product consumption. Additionally, up-to-date

payment methods are available.

(4) High-quality & Healthy. Fresh produce from local farmers and products from local

entrepreneurs will be on the forefront of the store; and

(5) Community Engagement & Education. Through the store, collaboration between

local producers and consumers are heightened. It also helps proliferate

Channels

These are several channels that a zero-waste grocery store can use to reach its target

audience and promote its brand. Specifically the following:

Physical store location. Having a physical store location is essential for a zero-waste

grocery store to allow customers to browse products and make purchases. The site should

be easily accessible and visible to the target audience.

Online ordering and home delivery. Providing customers the option to order products

online and have them delivered to their doorstep can significantly increase the reach of a

zero-waste grocery store. This option can be especially appealing to busy customers who

don't have time to shop in-store.

Social media and email marketing. Social media platforms and email marketing can

create a solid online presence and engage with customers. A zero-waste grocery store can

post updates about new products, promotions, and events and share educational content

about reducing waste and living sustainably.

 Word-of-mouth and community events. Word-of-mouth marketing can be a powerful

tool for a zero-waste grocery store. Positive reviews and recommendations from satisfied

customers can help to build credibility and attract new customers. Hosting community

events and workshops can also help to make a strong sense of community and encourage

word-of-mouth marketing.

In-store events and workshops. Hosting events and workshops in-store can be a great

way to engage with customers and build a sense of community. A zero-waste grocery

store can host workshops on topics like composting, sustainable living, and zero-waste

cooking, as well as events like product launches and food tastings.

Local partnerships. Building partnerships with local businesses and organizations can

help a zero-waste grocery store reach new customers and build a stronger community.

For example, partnering with a local environmental group can help promote the store to a

broader audience.

Packaging and labeling. Using unique and eye-catching packaging and labeling can help

a zero-waste grocery store stand out from the competition and attract new customers. The

packaging should convey the store's commitment to sustainability and zero waste.

In summary, a zero-waste grocery store should use a combination of these channels to

reach its target audience and promote its brand. The effectiveness of each track will depend on

the specific characteristics and preferences of the customer segments they are trying to reach.

Customer Relationship

Customers will be treated as a part of a bigger cause to support the ongoing Green

movement. Most especially through:

(1) Personalized Shopping Experience. The customers will be given offers and

recommendations based on their purchases. Upon request, they will also have employees

with them during their shopping to guide them through the right lanes. The goal is to give

them enjoyment and convenience through promos, as well as catering to their buying

patterns.

(2) Educational and Informative Content. Working with local producers, entrepreneurs,

and interested environmentalists, the store’s layout will include information regarding the

products. From how and where they were produced to its significance. Customers can

also ask further questions from employees.

(3) Active Engagement with the Community. Local members of the community are a

large part of the business. Because the products are mostly from local producers and

entrepreneurs, both their demographic will collaborate to ensure good quality products.

Meanwhile, the customers provide economic flow and helpful feedback to innovate

certain aspects of the business.

(4) Responsive Customer Service. We aim to give our customers satisfactory cross-

checking regarding manufactured products or services that may have been unfit to the set

standards. Any queries they may have will be dealt with promptly to the best of the

management’s abilities.

(5) Flexible Payment Modes. Technological advancements paved the way for contactless

payment. It is a suitable moment in relation to the current times that require limited

touch, as well as the popularization of online wallets.

 (6) Online Network. The grocery will be equipped with various online platforms

customers and recommendees can visit. It will consist of promotions, discounts, and new

product announcements.

(7) Location. Since the grocery store also relies on online networking and payments, it

will be located in an accessible location with network signal and easy to spot.

Key Resources

Switching from traditional to sustainable no-waste grocery is becoming increasingly

important as we face a global waste crisis. According to the World Bank, the world generates

2.01 billion metric tons of municipal solid waste each year, which is expected to increase by 70%

by 2050. Traditional grocery stores contribute to this waste through excessive packaging, single-

use plastics, and other unsustainable practices. Switching to a sustainable no-waste grocery can

reduce our environmental impact, save money, and build a more sustainable future. It is time to

switch and embrace a more sustainable way of shopping.

Identifying and investing in key resources is essential to success when launching and

operating a sustainable grocery store like Pick n' Mix. These resources can include everything

from the physical store location and facilities to the inventory management systems, sustainable

packaging solutions, and knowledgeable staff. By focusing on these critical resources, the store

can create and meet the target audience's needs and expectations and promote sustainable and

environmentally-friendly practices that can benefit the community and the planet. In the

following paragraphs, we will explore these key resources in more detail.

Store location and facilities. An ideal grocery store location is accessible and easy to

locate. Pick N' Mix can be located at the heart of Baguio City, along Session Road. Its
 location can be accessed by locals, households, and even tourists to boost the store's

demand.

This segment also includes the store's fixtures, fittings, and any equipment needed

to run the store, such as refrigeration units, point-of-sale systems, and display shelves.

Inventory management systems. Ensure inventory is managed correctly and prevents

waste. The store is to invest in inventory management software or other tools to help keep

track of stock levels, order new products, and manage supply chains.

Sustainable packaging and waste reduction strategies. One of the key selling points of

Pick N' Mix is its zero-waste and sustainable approach to packaging. This may involve

investing in reusable containers, bulk dispensers, or other packaging solutions that reduce

waste.

Trained and knowledgeable staff. Pick N' Mix will need its staff to be trained and

knowledgeable about the store's mission and vision.

Marketing and advertising materials. To promote the store, provide sustainable facts,

and attract customers, the store can invest in making social media campaigns and other

promotional materials that highlight the unique selling points of the store.

Key Activities

To keep track of the store’s vision to provide a sustainable and no-waste set of products,

there are a number of key activities to consider. These activities can include everything from

sourcing high-quality, locally-sourced products to managing inventory and waste reduction

strategies, conducting effective marketing campaigns, engaging with the community, and

providing a unique and sustainable shopping experience.

Sourcing and curating high-quality, locally-sourced products. This may involve

building relationships with local farmers and suppliers, attending farmers markets, and

conducting extensive research on the best sources for your products.

Managing inventory and waste reduction strategies. To minimize waste and ensure that

the presented products are what the target wants, there is a need to implement effective

inventory management and waste reduction strategies. This might include forecasting

demand, carefully tracking inventory levels, and setting up systems for managing unsold

or expired products.

Marketing and advertising campaigns. There is a need to invest in marketing and

advertising campaigns that showcase the unique selling points of your grocery store in

order to attract and retain customers.

Community outreach and engagement. Building relationships with the local community

will be key to the success of the store and its vision to promote zero-waste. This might

involve attending local events and festivals, collaborating with community organizations,

and offering educational programs and workshops on topics related to sustainability and

waste reduction.

Providing a unique and sustainable shopping experience. This might include offering a

range of bulk dispensers for products like grains, nuts, and spices, using eco-friendly

packaging solutions, and implementing recycling and composting programs.

Key Partners

As a zero-waste grocery store business in Baguio City, the key partners for this venture

would include various organizations and stakeholders that share a common vision of promoting

sustainability and reducing waste in the community. The key partners for the store would

include:

Farmers and Agricultural Cooperatives: Working closely with local farmers and

agricultural cooperatives, such as the La Trinidad Vegetable Trading Post, can ensure a

steady supply of fresh produce and promote sustainable farming methods.

Sustainable packaging suppliers: Collaborating with suppliers of eco-friendly packaging

materials is crucial for maintaining a zero-waste approach. These partners could provide

reusable bags, containers, and other sustainable packaging solutions. An example could

be a local supplier of biodegradable packaging materials like Baguio Eco-Pack.

Baguio City Government: Collaborating with local authorities and the city government

can provide support in terms of waste management policies, recycling programs, and

creating a favorable environment for zero waste initiatives.

Local Environmental NGOs: Partnering with environmental non-governmental

organizations (NGOs) such as the Cordillera Ecological Center or the Baguio Regreening

Movement can help in raising awareness, education, and community engagement for

sustainable practices.

Waste Management Companies: Collaborating with waste management companies, such

as Benguet Waste Management and Metro Clark Waste Management, can facilitate the

proper disposal and recycling of waste generated in the store.

 From these partners, the zero-waste grocery store acquires key resources such as fresh

and locally sourced produce, eco-friendly packaging materials, and knowledge about sustainable

farming and waste reduction practices. The collaboration with the government provides access to

waste management infrastructure, regulations, and policies that can support the store's zero-waste

initiatives. The involvement of environmental organizations enriches the store's educational

programs and community engagement efforts, helping to foster a culture of sustainable living

and waste reduction. Overall, these partnerships and collaborations are essential for the success

of the zero-waste grocery store in Baguio City. By working together, the store, its partners, and

suppliers contribute to building a sustainable and environmentally conscious community while

providing customers with access to responsibly sourced products and supporting the local

economy.

Cost Structure

The following are costs that need to be maintained and managed upon operating and

opening the store: Rent and Utilities, Employee salaries, Inventory and equipment costs,

Marketing and advertising expenses, and Waste reduction and recycling costs.

Managing these costs effectively is essential to creating a sustainable grocery store that is

both financially viable and environmentally-friendly.

Revenue Stream
In a zero-waste grocery store business in Baguio City, the revenue streams would

include:

Sales of groceries, household items, and personal care products: The primary revenue

stream would come from the sale of a wide range of groceries, including fresh produce,

bulk dry goods, packaged foods, household items, and personal care products. Customers
 can purchase these items in a zero-waste manner, either by bringing their own containers

or using the store's reusable packaging options.

Sales of reusable containers, bags, and other eco-friendly products: The store can

generate additional revenue by offering a variety of reusable containers, bags, bottles, and

other eco-friendly products. These items provide customers with sustainable alternatives

to single-use items and promote a zero-waste lifestyle. Revenue would be generated

through the sale of these products.

Subscription and membership programs: The store can implement subscription and

membership programs to generate recurring revenue. For example, customers can

subscribe to receive a weekly or monthly box of fresh produce and groceries.

Membership programs can offer additional benefits such as discounts, exclusive access to

events or workshops, or personalized zero-waste consultations. Customers would pay a

subscription or membership fee, contributing to the store's revenue.

These revenue streams collectively support the zero-waste grocery store's operations,

allowing it to offer a diverse range of products and services while promoting sustainable

practices and a waste-free lifestyle.