Toki Bags sustainable grocery bags

Executive Summary

Problem Statement/Business Opportunity

In our vision, we see a large amount of plastic bags being used in grocery stores that are
thrown out right after a single use. This problem becomes an opportunity for us to create a
product to find a suitable solution.

Business Idea
● Toki Bags aim to reduce the use of plastic bags in grocery stores with our
sustainable tote bags

Company History
We started out as a small business with 4 founding members producing and transporting
our products to local grocery stores, in the present we accepted more employees helping
out with bag production and now transporting and selling our goods throughout the
country.

Industry
Sustainable Fashion Industry:
● Made out of old fabric scraps
● Fashionably designed
● Carefully sewn

Target Market/Customer
● Our target market is local grocery stores and those who value a sustainable lifestyle.
Which makes our target customers the consumers of the grocery stores
● We will start out by targeting stores like Rimping, Big C, Tesco Lotus, and other
grocery stores in malls. Customers from these stores usually buy items in big
quantities that will need to be carried with a bag
● Our target market and customers will look forward to our bags because of our
affordable price and quality of our bags

Competition
Our Advantages:
● Sustainable
● Affordable
● Made from old unusable fabric
Our Disadvantages:
● Competitors might have better looking designs
● Might not be as durable since it is sewn from small pieces of fabric

Milestones
2 Years: We aim to reach our breakeven point by selling our bags on our online store to
small grocery stores in Chiang Mai.
4 Years: We will expand our market to bigger grocery stores and different markets in
Chiang Mai. Also to grow our company in size to fit the increasing orders.
6 Years : Our objective of the 6th year is to expand our range of sustainable products and
expand our market size even further.

Financial Plans
Our pricing strategy will be value based pricing, since our bags are sustainable, customers
will probably consider that when buying our products and it will differentiate us from other
similar products. Estimated bags sold per month is around 500 when starting out, since our
target customers are local grocery stores and they will most likely purchase in big
quantities.
- Price per bag - ฿350

- Fixed cost - ฿143,000

- Variable cost - ฿58,000

 - Variable cost per unit - ฿290

- Contribution margin - ฿60

- Sales revenue - ฿841,176

- Number of bags sold to break-even - 2,403 bags in around 4 to 5 months

Balance Sheet
Assets Price Liability Price

Raw ฿40,000 Loan ฿100,000

Materials/inventory

Supplies (machinery, ฿10,000 Taxes payable ฿20,000

equipment, etc)

Cash ฿50,000 Rent ฿10,000/month

Promotional materials ฿3000

(social media platforms)

Investment

Intangible assets ฿5000

(copyright, license,
permit etc.)

Total ฿170,000 ฿130,000

Equity - ฿40,000

Management Team
● Our management team consists of 4 founding members. As enthusiastic
entrepreneurs, we are looking forward to growing our business and promoting it
around the globe. We will meet up monthly to discuss and reflect on our sales,
making changes to improve our products
● Decisions are made by voting and discussing

Plastic Reduction
By using our sustainable bags we can reduce the use of plastic bags used in grocery stores
and landfills, or other environmental issues plastic causes.