BUSINESS PLAN

I FA - A 0 5 - g r o u p 4
2012

Angelle Eugenie Besamusca | 508938

Christian Paffhausen | 511834
Christina Desire Bollmann | 505519
Geert Elizer Kok | 514873
Kyle Marcus Fontenelle | 507893
Ryan Kharisma Danoko | 510286
Timea Bartha | 508079

CONTENT

I. BHINEKA
I.A. Company Summaries and Overview (BHINEKA)

I.A.1. Vision & Mission

I.A.2. Company Hierarchy

I.A.3. Business Ordinates & Financial Position
I.B. Product Description

I.B.1.Product concept & design

I.B.2. Design rational of the product

I.B.3. Systematic concept & main features

I.B.4. Identity design and rational

I.B.5. packaging design

I.B.6. Unique selling Point of the Product
I.C. Method of Research

IV. LOGISTIC
5
6
8
10
11
12
13
14
15
16
16

II RESEARCH
II.A.Target Audience Analysis

II.A.1. DESTEP

II.A.2. Sample of Target Audience
II.B. Competitor Analysis
II.C. SWOT Analysis

18
21
24
26

III. MARKETING
III.A. Marketing Objective
III.B. Marketing Goal (Long-Term and Short-Term)
III.C. Customer Segmentation
III.D. Marketing Strategy

III.D.1. Marketing Phases

III.D.2. Entry/Introduction Strategy

III.D.3. Competitive Strategy

III.D.4. Product Positioning

III.D.5. Marketing Segmentation

III.D.6. Growth Strategy

III.D.7. Demands

III.D.8. Needs and Wants

III.D.9. Social Responsibility
III.E. Marketing Mix
III.F. Marketing Design

28
31
32
33
34
35
36
37
38
39
40
41
42
49

IV.A. Manufacturing
IV.B. Shipping, Transportation and Distribution
IV.C. Warehouse and Office
IV.D. Retailer
IV.E. Decoupling Points
IV.F. supply Chain
IV.G. Bill of Material
IV.H Material Requirement Plan

52
53
55
56
56
57
58
60

V. FINANCIAL
V.A. Financial Objective
V.B. Price calculation
V.C. Financial Strategy

V.C.1. Opening Balance Sheet

V.C.2. Sales Estimation

V.C.3. Expenses

V.C.4. Cash Flow Statement

V.C.5. Income statement

V.C.6. Retained Earnings Statement

V.C.7. Ending Balance sheet

V.C.8. Break Event Point

V.C.9. Ratios

V.C.10. Fix Assets

V.C.11. Depreciation on Assets

62
64

VI. Conclusion

79

VII. Appendix

81

VIII. Sources

94

65
67
68
70
72
72
73
75
76
77
78

.
CO

I.A.

Bhineka is adopted from an ancient

Indonesian word that means diverse.
This is how we see our company.
We are a multicultural company,
consisting of seven equal partners
from different nations. The board of
our Company is manned with two
Dutch, one British, one Indonesian, one
Rumanian and two Germans.
We care for our social responsibility
and therefore we try to create a fair
working environment for our workers
abroad and in Europe. The Company
has its roots in the Netherlands and
we start launching our products in
Europe. Here we will support different
social foundations in our direct
neighbourhood and in the whole
country. As a company we also try to
reduce our carbon footprint and the
environmental harm. Our goal for the
future is, to fund enough projects to
balance our ecological scale.

We are not only trying to become a

supplier of a gadget, we want to deliver
a new lifestyle of pursuit for perfection
to our customers. Our business is mainly
a merchandise company, although we
design our own products and adapt
them to the customers needs.
The board of our Company is organized
democratically, but everybody is
responsible for one specific district
and will make the last decision if we
dont agree on a topic in that exact
department.

Where do we want to be in five years time?

I.A.1.

MISSION
&VISION

We start off with a five year plan showing our vision.

As Bhineka we want to create a new lifestyle.
In five years time people will use our product and cannot imagine living
without it. We will help them to live their life efficiently.
In five years time we will determine a new five year plan considering the
information we can access at that time.
How are we getting there?
We are going to introduce a new product, it is going to be a product that is
not really necessary. But its going to be a product that everyone wants! People
buy things that looks cool and products that will help them to live their life
easier. Our focus is going to be on promotion, because it is a new product
so we have to introduce it to the market. The market does not know
our product yet so we have to show them the benefits of our product. We will
do so through social-media.
For whom do we do it?
Both Male and Female Smart Phone user.

What is our sphere of work?

What do we mean to our stakeholders?

Our work field is going to be the Netherlands as a start. People in the Netherlands
can afford products like ours and they have an interest in doing everything as easy
as possible. They want a product that can save them time.

We are going to mean a lot to our stakeholders. They will invest in our company. We
will have money to spend on promotion to sell our product. People will see what
our product can do, it will help them to live more perfectly. And they will see their
friends buying it and they also want our product. Our shares will increase and our
stakeholders will get the benefits for it.

Why do we exist?
We exist because we are coming up with a brand new product that is going to
create a new lifestyle. And people want our product because it will help
them to life more perfectly. People try as much as possible to live perfectly and
we are going to help them with that. That is the reason for our existance.

Norms and values?

We as a company have norms and values. It is not only the profit we care about.
We want to create a save, respectful and warm environment for our staff. What we
also want is to connote something to the community. We dont want to be just a
company we want to be a company that also gives something back to the people.
Thats going to be an important part of our philosophy.

WE ARE THE PEOPLE

Chief Executive Officer

Ryan Kharisma Danoko
25 year old
ryan@ryankharisma.com

Logistic Manager

A young & dynamic designpreneur

who believes that personal touches can
transform ordinary things into the extraordinary. Shaped by three different cultural
backgrounds which are oriental eastern,
wild wild west and now unique europe give
flair of diversity in combining creativity &
customer centric attitude, that brings out
unconventional, bold & genuine value that
reflects first class creative professionalism &
also initiates world class entrepreneurship.

Angelle Besamusca
18 year old
A.besamusca55@gmail.com
One of my biggest dreams is seeing the
world, and I had the chance to fulfill this
dream a year ago. After my high school, I
decided to take a gap year. In this year, I
have worked in a animal shelter in Spain,
which was one of the most amazing
experiences in my life.

Finance Manager
Christina Desire Bollmann
20 year old
christina@dacabo.de
I was born in Dsseldorf, Germany, and was
raised in a small city called Korschenbroich
which is close to Dsseldorf. After High
school i went to a business school where I
figured out that I want to study IBMS and
come to Anhem Business School. I am
determinded, hard working and I love to
experience new challenges.

Marketing Manager
Giel kok
18 year old
Born in Ede Raised in Apeldoorn, the
Netherlands. Have been for a half year in
South-Africa did voluntary work there. And
is a lover of marketing and sales.

R&D Manager
Kyle Marcus Fontenelle
19 year old
kylefontenelle@hotmail.co.uk
Born and raised in london, born into an
English-Carribean family from St Lucia an
Jamaica. a Factual Logic, who is good with
numbers.

Sales Manager
Timea Bartha
19 years old
timieabartha@yahoo.com

HR Manager
Christian Paffhausen
20 year old
christian.paffhausen@web.de
I was born and raised in western germany.
I graduated from highschool with my
A-levels in 2011. Afterwards I went on a
working holiday for 8 month to australia
and new zealand.
Now Im studying Business Management
in an international environment at the ABS
faculty of the HAN Arnhem, Netherlands.

I grew up in a family centric environment

in Romania. I learned from my parents and
teachers what respect and responsibility
means. I studied in the best Hungarian high
school in Romania and I am a possessor of a
highly scored Baccalaureate Diploma. I am
a brave person who enjoys adventures and
came to Holland for studying, experience
and meeting people from all around the
world.

I.A.3.

BUSINESS
ORDINATES
We set up our company as a domestic, limited organisation in The Netherlands. Our company
considered as small enterprise with only eight staffmembers. We will start focusing on
the domestic segment for the first two years and will expand to other European countries
such as Germany. As the next step of our expansion intentions, we will spread our product
internationally, for instance in China and the USA.
Our company will be a limited organisation in which every member of the board bought an
equal amounts of shares.

FINANCIAL
POSITION
Bhineka was founded by seven young and multitalented enterpreneur students who started
their business with their own capital. Each incorporator investes 10,000. The total Paid-incapital is 70,000 as a start. Furthermore, we borrowed 50,000 at a percentage of 3% from
Deutsche Bank.

10

I.B.1.

PRODUCT CONCEPT
& DESIGN

is a key to perfection.
AWW is a totally new and innovitive idea, to the world
of smartphone gadget-ry. As the concept of AWW is a
product never seen on the open market the levels of direct
competition are virtually not existant and there are no direct
threads by similar products. The biggest competition for
BHINEKA will be convincing the general public and specific
target groups that the product is not a fashionable luxury,
but infact a sustainable necessity. AWW was not developed
to replace both, irons and straighteners. It was infact created
to touch up on the points that these appliances miss; the
crease at the bottom of a shirt and the curly hair the wind
created after straightning. If everything goes according to
our plan, it will become second nature for the consumer
to use AWW when in a situation fitted to our product.
Eliminating problems of every day life by using AWW will
result in BHINEKAs splendid development.
AWW is a smart phone add-on in the shape of a back cover.
Its primary function is the phone cover itself. It provides
safety to the telephone that it is applied on. Nevertheless;
the functions wich make our product unique are: iron and

straightener. The most dominate function is to become a

handy miniscule iron when noticing your clothing is not
satisfactory, meaning not being flawless. The products
outstanding feature being the hot plate which whilst
providing a controlled contained heat, still safely and
efficiently will smooth out creases. It can be used in everyday
life therefore the consumer gets their expenses worth and
will feel their money has been well spent. The product is very
compact in size so this should not be an issue when it comes
to the question of increasing the phones size drastically.
Although the added size and weight will be noticeable they
should not prevent sales. The other function of the product
is a straightener. This add-on is directly adapted into the
the iron hot plate and extends to create a similar experience
to normal straightners just at a closer range. This unique
attachment is exclusive to BHINEKA.

11

I.B.2.

DESIGN RATIONAL
OF THE PRODUCT

Make your life wrinkleless with AWW, feel confident the telephones battery. In addition, this external
and enjoy your daily life. AWW is a phone case which battery can be recharged with the same charger
can be transformed to an iron or a straightener by that is used for the telephone covered by AWW.
pressing a single button.
We offer this product for the following types of
AWW is a innovation on the market field, which mixes telephones: Samsung Galaxy S3 and iPhone 4, 4S
iron and straightener with a phone cover. As a phone and 5. To ensure, that to product reaches you in the
case, AWW ensures the phones safe and conveys a original condition, we pack it in a safety box in which
design with attitude. It provides a secure hold, by you can also find the user manual. The product can
combining versatile materials such as leather and be found and bought in The Phonehouse stores in
iron. The iron plates are made out of a special alloy, the Netherlands.
which heats up and cools down quickly, so using it
isnt time consuming but effective on imperfections.
AWW contains an own battery, so it doesnt consume

12

I.B.3.

SYSTEMATIC CONCEPT
& MAIN FEATURE

open clap

Black Leather Cover

Switch Button
High Power Lithium
Flat Battery

Magnetic Lock
Metal Heat Transmitter Plate
100O In 10 Seconds
10 Seconds To Cool Down
Charger Socket

transparent black
plastic shell

13

I.B.4.

IDENTITY DESIGN
& RATIONAL

AWW
Is our product brand. It originates from the exclamation of
shock or disgust for high pitch tone and admiration and
enthusiasm in a low pitch one. It reflects the expression
after and before using the product.
Type Face
The use of Myriad san serif font represents the modern and
minimalistic image of the product.
Color Moods
Light Orange
Deep Orange

red

The use of warm and vibrant colors is to support the powerful

and dynamic design of the product as well as its relation to heat
used for the iron and the hair straightener.

14

I.B.5.

PACKAGING
DESIGN

We designed the packaging with mainly white color with

a touch of warm color and paint splash vector to give an
sophisticated and dynamic look to the product. This design
also can attract our target audiences attention. On the other
hand, we can manage to lower the packaging cost because
of the dimension that effect to the use of paper and shipping.
Additionally the use of color is mainly warm color and we use
percentage shades of one color (red and yellow) which will save
printing costs.

15

I.B.6.

UNIQUE SELLING POINTS

* Hybrid product
* solution of perfection oriented
* user friendly

I.C.

RESEARCH METHOD
* Questionnaire
* Interview to sample audience
( students, young adult, house wife and business professional)
* Observation (a few sample audiences in their daily life)
* Online sources

16

S
RE

II.RESEARCH

17

II.A.

TARGET AUDIENCE
ANALYSIS
II.A.1.

DESTEP
The Netherlands
The so-called DESTEP is a marketing related research tool. It consists out of 6 different research topics namely demographics,
environment, social aspects, technology, economics and politics. As we had to decide whether to launch the product in
the Netherlands or in the US we started with an economical research about both countries. We wanted to know, which
economy would grant a more stable and reliable ground for our company. We discovered that the Netherlands as part of
the European Union- grant not only economically but also politically and socially a more trustworthy proximity for our startup business. So we concentrated our research on the Netherlands and came up with the following conclusions.
Demographics
There are almost 17 million people living in the Netherlands. The country is approximately 41.54 square kilometres big, of
which 18.4% is water. In the Netherlands, we have a target audience of 4.9 million, 2.2 million is female and 2.7 million is
male. Weve compared Amsterdam with Rotterdam, the Hague and Arnhem and the city where we have the biggest target
audience is Amsterdam, with a target audience of 331 544.
Environment
The Netherlands have a total coast line of 451 with many major ports. There is also a a highly developed network of channels
throughout the country for the transportation of goods on waterways. The weather is very varying, dominators are rain and
wind which leads to a higher possibility to get wrinkled clothes and/or curled hair. Also the fact that approx. 99.1% of the
people in the Netherlands are cyclists raises the possibility of getting your looks ruined on the way to school or work. The
constant growing number of cell phones thrown away leads to a rising level of pollution. The main reason why people
dispose their phone is because of wear&treat marks which can be prevented or delayed by using a phone case.

18

Social
Socially, the Netherlands are a melting pot off more than 190 countries in the world, so we face a very diverse
and broad target group.
Three most populated cities in The Netherlands are AMSTERDAM (capital) 1.044 million; Rotterdam 1.008 million;
The Hague (seat of government) 629,000 (2009), so we will launch our product in these big cities and concentrate
our advertising on these areas.
According to the literacy and education expenditure, The Netherlands is number 49 in the world, which supported
by the fact of 99% literacy. This leads to a more intellectual way of advertising.
English is well spoken in The Netherlands due to a low number of synchronised movies and TV shows, which it
gave us conclusion to approach the market with English ads.
Technology
Out of the 17 million people who live in the Netherlands, there are around 6.8million smart phone owners. 60%
of smart phone owners are between the ages of 15-29. This is within our target markets for our product.
Recent statistics show that the rate of smartphone owners is not decreasing but is stalling.
Also the rate at which tablets are selling has increased drastically, with the amount of owners starting at 1.7
million, 11 months later reaches 2.8million.
We are the first company to create a case in which the consumer is able to straighten not only their hair but iron
their clothes as well.
One of our best USPs is the technology inside our product, that being thee rapidly cooling metal, and the high
powered, long lasting battery running the product.
Our biggest competition comes from holiday equipment, such as travelirons and a pair of smallscalestraighteners.
This said, the sheer size of travel items in comparison to AWW should be enough to exclude travel items from
competing with everyday use.

19

Economics
The Netherlands have economically a stabile position in the European Market. Their GDP (gross domestic product
which refers to the total market value of all goods officially produced in the country) is in the top third of Europes
countries.
The European Union is the most solid federation of the world with a rising share in the global wealth. Concerning
the labour participation the Netherlands are at the top of Europe with almost 75% in 2011 compared to the
European Average of 58%.
Inflation rates in Europe and therefore also in the Netherlands were raising in the last 3 years but will shrink in the
next two years.
Politics
The foreign policy of the Netherlands have four commitments: to Transatlantic relations, European integration,
International development and International law. While historically the Netherlands used to be a neutral state, it
has joined many international organisations since second world war. Most prominently the UN, NATO and the EU.
The economy is very open en relies on international trade.
Regional government in the Netherlands is formed by twelve provinces. Provinces are responsible for spatial
planning, health policy and recreation, within the bounds prescribed by the national government. Furthermore
they oversee the policy and finances of municipalities and water boards.
The VAT has rates of 0%, 6% and 21%. If doing business abroad the 0% rate is applicable. Some goods have a
VAT of 6% . For example, for food, medicines and insulation, painting and plastering work on homes. For other
products or services, is the general VAT rate 21%. For our product it will be 21%.

20

II.A.2.

SAMPLE OF
TARGET AUDIENCE
We divided the target audience into three segments in The Netherlands
1. Business Man
Gender
: Male
Age
: 20 - 45
Lifestyle
: stylist, metrosexual, social
Sample Occupation:
Manager, Teacher, Event Organizer, Public Relation, Marketing.
2. Career Woman
Gender
: Female
Age
: 20 - 36
Lifestyle
: stylist, socialize, perfectionist
Sample Occupation:
Manager, Teacher, Event Organizer, Public Relation, Marketing, Secretary.
3. School Girl
Gender
: Female
Age
: 14 - 20
Lifestyle
: stylist, likes to hang out/party
Sample Occupation:
Highschool student, University student.

21

SAMPLE OF
TARGET AUDIENCE
For our consumer research, we handed out a single page questionnaire in order to get an idea of the market
reception. As the founding members of Bhineka, are from 5 countries, expanding into 2 continents, the results
are broad and still with such variety ,that its clear to see patterns emerging. The results are as followed.
We asked 70 people in total, a number of questions ranging from their native country and town they reside
in, to the question if they have phone cover or not. Also if they would prefer a phone cover and the price they
would be willing to pay for such a product as ours.

How many people have a phone cover?

The chart shows that 60% of the asked people have a phone
cover. This shows the potential market for our product.
As the dominant color of choice was black, we decided to
create our product with a black base.

40% no cover

60% has cover

22

Would you buy our product?

Out of the 70 people asked, 49 responded with the

answer, that they would buy our product. Thats 70% of
the potential consumers we asked. This is a great initial
upshot as only 8 members of the study didnt possess a
smartphone.
The most common price chosen by our respondents was
between 20-25 Euro, with both 15-20 and 25-30 both
close to each other in frequency. This also reflects well on
our final decisions, as we have chosen to lower the price
at around 18.99. We did so, because our product is most
likely to be price elastic, meaning the change of price is
often than not going to lead to a big quantity in demand
change relative to the increase or decrease of the price.

61% buy

39% not buy

The most suggested option of either the straightener

or the iron, was actually the iron, with around 56% of
people voting for that particular choice. But within the
choosing of the preferred function of the product it was
wasnt just by gender, as the results showed a number of
females picking the ironing option and a smaller but still
a noticeable number of males picking the straightening
function. Showing the effects of the modern man and
more people becoming metrosexual, which means paying
a lot of attention to their looks.

23

II.B.

COMPETITOR
ANALYSIS
Since Bhineka sells products which are new on the market, finding out who the competitors are is hard. AWW
represents the beauty as well as the electronics industry.
This seems a strange combination but this is on of the biggest strength of our product. AWW is a combination of
a phone cover, an iron and hair straightener. For making a clearer view of the competitors, we analyzed them by
the four products which are making up our one special product.
Phone cover:
AWWs primary duty is the protection and damage prevention. So companies on this market field are our direct
competitors. Based on a research made by About.com Readers Choice Awards the top five companies best in
mobiles are: Instell, Krussel, Incase, Otterbox, The Joy Factory and Wrapsol. Taking in consideration the price,
place, promotion and product we found our direct competitors who are as follows:
* Krussel:They offer cases for all kind of electronic gadgets. They are available througout the Netherlands. They
have really good prices from 15.00 to 25.00 (Euro). They dont have too many models just a several ones. They are
focused more on having covers for all kind of gadgets.
* Otterbox: They were the finalists at the Awards. They offer a cases only for mobile phones in a wide variety. Otter
is focused on quality, thats why the prices are also higher ( 20.00-45.00 Euro). They have a web shop, and they
offer free delivery for costumers from America.

24

Iron:
We had to take in consideration, that AWW can be transformed into an iron and this iron can be compared most
appropriately to a travel iron. Our product should be used on small imperfections due to have a perfect look
anytime.
Our competitors on this field mainly are: Rowenta and Hamilton Beach.
* Rowenta: This company offers two kinds of travel irons on an affordable price around 30.00 (Euros) just as our
product. They dont have their own showroom, but they sell their product through merchandise companies and
they also have a web shop.
* Hamilton Beach: They offer a lot of different types of travel irons, in different figure, color and of course prices.
They prices are between 15.00 and 35.00Euro. Hamilton Beach is an American company so these products are
mostly available there, but Europeans can buy them from European merchandise companies.
Hair Straightener:
Companies offer straighteners for a younger target audience than the companies with the irons, so we analyzed
a different market. We also have to take in consideration the small size, so we compare our product with the
travel hair straightener.
Competitors: Remington, Babyliss
* Remington: This company is specialized on hair beauty products. You can check their catalog on the website,
but you cant web shop. The straighteners can be bought in beauty and electronics shops (for example, in the
Netherlands: Douglas, Media Markt, Kijkshop, etc.). They offer a good quality for a big price, their prices are
between 20.00-100.00Euro.
* Babyliss: They are also specialized on hair beauty products. They have only a several products under 30.00Euro
what means they targeted a richer and also older audience than us, Bhineka and Remington did. They have an
online shop available also in the Netherlands.

25

II.C.

SWOT
ANALYSIS

Strengths
Unique application on phone that can be use in daily life *
high quality product *
professional customer service and after sales (customer oriented) *
possibilities to create a new lifestyle *
user friendly *

Weaknesses
limited promotional budget *
brand awareness *
new product need more researched *
dimension concerned *

Opportunities
* can be a trend
* target audience is open for new technology
* smart phone market is a big market
* new innovative product
* relativele affordable product price

Threats
* downturn in economy
* our cover is big compare to the other covers
* new product in the market

26

KT

III.MARKETING

27

III.A.

MARKETING
OBJECTIVE
Bhineka is introducing a new product on the market. Our main objective is to create a product for customers, build a strong and long
lasting costumer relationship in order to capture value from them in return (revenue).

2013 2014 2015 2016 2017 2018

Short term (12 months)
Long term (3 to 5 years)

SHORT TERM OBJECTIVES

This periods objectives are more detailed and they are less general but more particular ideas. Our short term objectives grab on 12
months (2013/2014).
Our objectives are specific, measurable, achievable, realistic and time specific, or SMART for short.
Bhineka wants to sell its goods across the Netherlands and wants to boost revenue for its product range. We will have a co-operation
with the Phonehouse company. AWW will be available only in these particular stores, plus on their online webshop. After launching
AWW, we want to sell 50,000 units by the end of the first year. To detail this objectives more clearly, we defined it using the SMART
approach.

28

pecific: We will gain our target audiences attention by showing the smart phone users of the benefits of our product and convince
them about the necessity of owning it. We will approached them by online media such as facebook, twitter and youtube.

Measurable: We want to sell 50,000 products in order to cover the costs and earn profit. That means that 2% (=50,000 divided by total

Iphone users in the Netherlands: 1,088,000 plus total Samsung Galaxy S3 users: 1,360,000 ) of the Samsung Galaxy S3 and/or Iphone
users have to buy our product, AWW.

Achievable: Since people from the Netherlands always have time pressure, they could use the benefits of AWW. Not only the time, but
also the way they travel, the biggest part of the year they ride bicycles, which means more possibility to get imperfections. According to
our research by survey we draw the conclusion that 2 out of 3 people would buy our product.

Realistic: Nowadays, every person wants to look good in order to make a good impression. But we focus on tree main target segments:

business man, school girl, house wife. These are the people who are more likely innovators and who have wants other then the daily
necessities. They are the ones, who use social media (Twitter, Facebook, Youtube) on a daily bases. Regarding to our promotion and
advertising strategies, social media is our main focus point, and these people attention and interest can be easy reached.

ime Specific: In 12 months we want to sell 50,000 units. We are conscious about the fact that the first months will not be successful,
but by promoting our selfs we believe that we can achieve our goal. Additionally, a regular progress update will be taken every month
to track level of success.

29

LONG TERM OBJECTIVES

This period is more general, and more flexible since it depends on what we will achieve in the first year. We plan to launch a new
product in every 2 years, according to our 5 years, in year 3: 2015 and year 5: 2017. Our plans contain two new products so far:
shaver to ease our daily confrontations with hair appeared on unlikely places and lighter. In the meantime, we will also create
little accessories which can be attached to AWW, for instance a handle. We can also make AWW available for more smartphone
types.
We want to broaden our market by spreading out our product not only in the Netherlands but in Germany, USA and China.
People from USA always try out new things, they are adventurous people, we can say that they are innovators. Chinese people like
buying European products so after a history of selling AWW at least one year in the Netherlands, our product can be successfully
spread out in China. German people are a lot alike Dutch people, so delivering our product to their country does not need too
much effort regarding to analyze their behaviour.
After the first year, we want to collaborate with other retail companies such as MediaMarkt, Kijkshop. These actions would raise
our market share and help us growing as a company. We, as a merchandise company will make sure that these partnerships will
be successful and long lasting.
Another objective is to be a market leader in 5 years and to become the most trusted and recognised brand in our industry.
As our product is mostly meant to be used by Samsung and Apple users, we can also make partnership with these companies, for
example making advertisement for each other.

30

According to our research, we came up with the

numbers to calculate our marketing goal for the
first and second year.
As you can read in the technological part of the
destep there are 6.8 million people in the Netherlands using a smart phone. Around the 50%
of the smartphone buyers buy a Samsung and
16% an Apple. And around 40% of the Samsung
owners buy a Samsung Galaxy S3.
Samsung Galaxy S3
6.8 million*50%=3.4 million
3.4 million*40%=1,360,000
Iphone 4/4S
6.8 million*16%=1,088,000
We see here that 1,360,000 people are using a
Samsung Galaxy S3 and 1.088.000 people are
using an iPhone 4/4S.
Together:
1,360,000+1,088,000=2,448,000
The number of 2,448,000 stands for the people
who are using an iPhone or a Samsung Galaxy
S3 in the Netherlands. We expect that 2% of all
these smartphone users will buy our product.
First year: 2,448,000*2%=48,960

III.B.

MARKETING GOALS

In the third year we are going to introduce our

product in Germany so it will be a rough marketing goal because it depends how we succes
during the first year in the Netherlands. We are
taking the same percentage of users as in the
Netherlands because the percentages in Europe
are very similar.
35,000,000*50%*40%=7,000,000
35,000,000*16%=5,600,000

The fifth year we will introduce our product in

U.S and China. In the U.S are 100 million smartphone users. We see that around the 30% of the
smartphone users uses a iPhone. And around
the 10% a Samsung Galaxy S3. In China are
around the 250 million smartphone users. Apple
has a market share of 12% and Android a market share of 55% and the Samsung Galaxy S3
around the 5% of the Android market share.

5,600,000+7,000,000=12,600,000

100 million*30%=30,000,000
100 million*10%=10,000,000

Third year: 12,600,000*2%=252,000

Total market share for IPhone and Samsung

galaxy S3in the U.S: 30,000,000+10,000,000=40,
000,000
250 million*55%*5%=12,500,000
250 million*12%=30,000,000
Total market share for IPhone and Samsung
galaxyS3 in China:
12,500,000+30,000,000=43,500,000
Total U.S and China: 40,000,000+43,500,000=83,
500,000
Fifth year: 83,500,000*2%=1,670,000

31

III.C.

CUSTOMER
SEGMENTATION
The male target audience will be from 20-45 years old.

The Female target audience will be from 14-36 years old.

We chose this group because 68% is them are owners of a

smartphone. What we also see is that often gentlemen wear a
suit or business shirts in this segment. And they have to present
theirself in presentations, meetings etc. That is obviously the
perfect mix for our product. Also very important is that the
biggest part of this group has a fulltime job, our product is a
special gadget which costs money. We chose them because
most of them can afford our product. Our focus is going to be
the cover with the iron for this target audience because most of
them are not using straighteners.

We can divide this target audience in two categories. The first

one is girls from 14-20 and the second one ladies from 20-36.
The girls from 14-20 are often really busy with how do they
look and hair is the most important part in looking good. In
this group arround 80% own a smartphone. In the Netherlands
most of them are cycling to school, work or meeting friends,
which causes their hair to get untidy. With our product they
have the opportunity to fix it before their friends can see them
and straighten their hair again to make it perfect before they go
inside. Our focus is going to be the cover with the straightener
for this target audience as most of them are not wearing business
clothes and therefore have less need in the iron.
The ladies from 20-36 are often business ladies who wear smart
clothes and who have meetings, presentations, dates with
friends etc. They always want to look perfect and so their hair
has to be good and also their clothes. Around 70% of this target
group own a smartphone. A lot of them are also working fulltime or their partner is working full-time and they are working
part-time which means that often they can afford gadgets like
ours. So our focus is going to be both, the iron and the straigtner,
for this target audience.

32

II.D.

MARKETING STRATEGY

III.D.1.

MARKETING PHASES
Phase 1: Definition phase

Phase 2: Preparation Phase

What is our business? Our business is mainly a merchandise

company, although we design our own products and adapt them
to our costumers needs. As Bhineka, we are a supplier of a gadget
named AWW ( a multifunctional phone cover). We want to deliver a
new lifestyle of pursuit of perfection to our costumers.

What do we offer exaclty? We offer a multifunctional phone cover,

AWW. This product offers safety to consumers smart phones but it
can also be transformed to an iron or/and a hair straightener when
needed. Our product is a mix of a phone cover, iron and/or hair
straightener.

Who are our customers? Our primary target audience will be the
iPhone and Samsung Galaxy S3 users. But more deeply: business
mans from 20 years old to 45, business ladies from 20 up to 36 and
school girls from 14 up to 20 years old.

What is our price? Our price will be around 20Euro in stores, this
is based on the current market, the demand and the competition.
The cost of our product until stored in our warehouse is 10 Euro
but there will be additional costs such as advertisement, promotion,
warehousing etc. .

Who is the competition? Since we provide a new product on the

market field we dont really have direct competition. If we take in
consideration that our products primary function is the phone
cover than we can mention two direct competitors: Krussel (from
the Netherlands) and Otterbox (America). Competitors regarding to
the other functions of AWW: Remington, Babyliss (hairstraightener);
Rowenta, Hamiltonbeach (iron);
What are our objectives? Our main objective is to create a product for
costumers and build a strong and long lasting costumer relationship
in order to capture value from them in return (revenue). Short
term objectives: deliver approximately 50,000 products across the
Netherlands and build up a good reputation. Long term: launching
a new product in the second year and distribute our products also
in Germany, the fifth year in the USA and China.

Where do we want to sell and deliver the goods? Our short term
objective is to distribute AWW in the Netherlands. We focus on the
largest cities in Holland, which are: Amsterdam, Den Haag, Utrecht
and of course Arnhem. After the firs year we want to deliver our
goods also in Germany, the USA and China.
Phase 3: Selling Phase
How do we promote and advertise our product? We see great
importance in advertising on social media. Besides social media
which includes: Facebook, Twitter, Youtube etc. , we want to do
promotion on TV-spot, posters, radio and by giving our product to
famous people.

33

III.D.2.

ENTRY/INTRODUCTION
STRATEGY
Entry/Introduction strategy:

As from the second year on we want to broad our market and cooperate with other companies: consumer electronics companies
such as MediaMarkt or Kijkshop. These co-operations should
last on a long term basis and will be beneficial for both sides.
For Bhineka the biggest benefit would be a fast market access.
These retailers are the best in the Dutch electronics industries
as they have a good reputation and also a high number of loyal
costumers.

First of all, we want to produce our products in China, then

ship to the Netherlands in our warehouses trough the biggest
port of Europe: Rotterdam port. We are going to have a
manufacturing contract with a Chinese company, we will use
them only to produce our products. Since this contract will be
about producing only two types of products in a big volume the
production cost will be relatively low. The contract will be valid
MediaMarkt is Europes largest retailer of consumer electronics,
for a minimum of one year.
and the second largest in the world after American retailer Best
After the arrival of the products in our warehouses, we will Buy. This company offers a wide range of electronics at or slightly
distribute them to retail companies. In the first year we will below the avarage market price.
co-operate with The Phonehouse, a telephone and telephone
Kijkshop is a Dutch company that operates approximately 100
accessories marketer.
stores in the Netherlands.This company offers a range of nonThe Phonehouse is available in 8 European countries with more food items, from electronics to jewelry.
than 2,400 stores. Co-operating with them would make it easier
to distribute our products plus they can ease reaching our long
term objectives by being present in foreign markets.

34

III.D.3.

COMPETITIVE
STRATEGY
Our business is a merchandise company, supplier of a
multifunctional smart phone cover. We represent the electronics
industry, specifically the cell phone industry. We offer consumers
a mix of a hair straightener, iron and phone cover in a single
product, named AWW. We want to achieve a good reputation
world wide, mostly in the Netherlands, Germany,USA and China
and be a market leader in 5 years.

should rather buy AWW instead of buying each separately wich

would cost three times more than that. (20 Euro instead of 60
Euro)
By spreading out our product, convincing our target about the
necessity of our product and making an AWW product culture,
we can knock out rival businesses not only on the phone cover
field but also iron and straightener. After knocking them out we
can take over their market shares.

As Bhineka, we introduce a totally new product in the market.

But since it is a combination of more products (iron, hair
straightener, phone cover) we still have competitors. Our direct For making sure that we stay in a high post in the phone cover
industry, we, as Bhineka, will launch in each second year a new
competitors are lead by Krussel and Otterbox.
product (such as shaver and lighter). In addition, we will also
Krussel is also available in the Netherlands, so it may be our offer accessories which can be attached to AWW, for instance:
handle, stain removal etc. .
biggest competitor.
We differentiate between their and our product by the We will try to win our costumers confidentiality and to achieve a
high number of loyal customers.
multifunctionality of AWW.
With AWW we are not only competing with phone cover retailers
but also travel iron/straightener retailers. The costumers can take
a big benefit out of buying our product: they dont have to buy
all (iron, straightener, cover) separately but they can have it by
owning only one product, which is the AWW. Plus we offer our
product approximately in a price of only one of the component
products. The avarage price of a travel iron, straightener and
a proper smart phone cover is around 20 Euro. So, costumers

Of course, in a competition we also need to be aware of an attack:

Do not assume the enemy will not come but be prepared for
his coming...Do not presume he will not attack, but instead
make your own position unassailable. (Sun Tzu)
But we will defend ourselfs by being unique on the market.

35

III.D.4.

PRODUCT
POSITIONING
We positioned our product AWW as a product that helps people to feel more
confident and to enjoy the daily life. AWW will help them with little irritations as
wrinkles in their clothes and hair that isnt as it suppose to be. Without changing
their clothes or take their big hair straighter with them they can just use their
phone cover. Its an application that makes life easier.
This is the reason that we use the USP (unique selling proposition) competitive
strategy. We as Bhineka are introducing a very unique product its a hybrid
product that doesnt exist yet will create a new lifestyle and easy to use.
As it is projected in the axis, we positioned our product as high lifestyle and user
friendly product.

lifestyle
Remington

Rowenta

unique

36

III.D.5.

MARKETING
SEGMENTATION
a)(business) men from 20-45

Additionally in the future we will collaborate with teenage magazine

and sponsoring events such as concert and parties. As you have a
This target group is mainly known for their need of wrinkleless clothes. look at the product design part you can see that our posters and
As they have to give presentations and speeches in meetings they are flyers are different to the male target audience. What we want to try
always under pressure as many people take a close look at them.To make is to approach them on a way that suits them the best so they will
their life easier and make them feel more confident they would have feel that our product is really meant to be for them.
a need for an iron, but probably not many of them for a straightener.
So when we approach this target group with promotion we will
think about that. They will be targeted different to the other groups, c) (business) ladies from 20-36
as the function of a hairstraightener will not convince them to buy
our product.
This targetgroup is often stressed and always under a lot of
This message will be communicate by poster, flier and viral video. pressure. Compared to the business men it is often expected
We will spread the promotional tools in the business disctrict area from them to look good and to present themself well. So
because this is the prime area for this target audience. Additonally, they need to feel comfortable with both- their hair and their
in the future we will colaborate with man magazine, sport magazine clothes. Another aspect of this target group is, that they often
and sport events. A specific planing and examples are to be read in have fully stuffed days and therefore would probably love to
the design part.
refresh themselves after a long day before meeting friends.
So our focus is going to be the iron and the straigtner for this target
audience. In the future we will try to collaborate with fashion
magazine such as cosmopolitan or bazzar. nevertheless, we will try
b) (school) girls from 14-20
to sponsor fashion events to create awareness among this target
This target group has probably the biggest interest in a hair audience. It will be a bit of a mix of the two previous target groups.
straightening device. Young girls are often insecure and define They care about there looks and again hair is playing a big part in
their looks mainly by their hair. They are always on the way to that also their clothes are very important and often you see that they
school, parties or their friends, which leads to the demand for a wear a mix of casual and smart clothe. In our promotional approach
small gadget that fits in their purse. So our approach to them will you will recognize that. You can see also an example of an poster
be totally different compare to the male target group. Also in our and flyer in the design part.
promotion our focus will be the hair straightening application. We
will create brand awareness by online media such as facebook,
and create the demand by competition for that targeted for them.

37

III.D.6.

GROWTH
STRATEGY
The best growth strategy for Bhineka is the product development.
The reason that we chose for this, because our product is new, unique
and innovative product that everyone wants to buy. We start with
an iron and a hair straighter features. For the existing market/target
audience.
In earlier stage, we are going to penetration the market by introduce
the product on online media, we. When our product is known, we will
introduce it to the big brands and advertise more in more expanded
ways. We expect that its going to be a success and that we create the
demand of our products.
After one year we will introduce a razor application that is attached
to the existing product. The year after, we will introduce a lighter
application with a handle merchandise.
The second year we will expand our product in Germany. A big
percentage of our profit we will spend to expand. So, in the third year
we will reach the Chinese and American markets.

38

III.D.8.

DEMAND
In order to prevent failure (going out of the business with
the company) we made a research on what the desirability of
goods and services is in our targets demographic.
As our short term objective is to deliver products in
the Netherlands, we did the analysis on this particular
demographic.
The population of the Netherlands is currently 16.7 millions,
of which 8.2 are male and 8.5 female(measured in 2012) . This
number is still growing thanks for immigrants and the high
birthrate: 10.3 births/1,000. The Netherlands is the 61th most
populated country in the world. Dutch men and women
are concentrated on an area of 4.526 km; this means that
the country has a population density of 397 per km, or 487
per km if only the land area, 33.883 km is counted. Thanks
to this concentration, delivering our products for as many
consumers as possible is easier.
The growing population of the Netherlands:

This graph regards to the years 1900 until 2000, but the population growth rate in
2012 is 0.452 % (est. 2011) so it is still growing. ( www.indexmundi.com/netherlands)
Our male target audience will be from 20-45 years old. And for the female the target
audience will be from 14-36 years old. In the Netherlands the age structure is: 0-14
years 17.4% , 15-64 years 67.7%, 65-over 14.9%. We can deduce that our target groups
are the most common, so finding these people and convince them about our product
necessity doesnt need too much effort.
For being more effective, we will focus on delivering our goods to the biggest cities
of the Netherlands: Amsterdam, Rotterdam(population of 610 386 with a target
audience of 209 116), Arnhem(population of 148 070 with a target audience of 53
049), The Hague (population of 495 083, with a target audience of 167 235).
Regarding to the environment and the dutch peoples needs, we draw the conclusion
that our product, AWW, would definitely fulfill our target audiences needs. Firstly,
because there are 16,500,000 bicycles in the country and ~99.1% of people are
cyclists(source top10hell.com), women and even men could make a big use of AWW
after cycling by straightening their hair, curled up due the wind and the moist air.
n the Netherlands there are approximately 20,000,000 cell phones. Of which 2,448,000
(the number of Iphones in the Netherlands: 1,088,000 plus the number of Samsung
Galaxy S3s: 1,360,000) are Iphone or Samsung Galaxy S3. The users of them,are people
who live mostly in the big cities of the Netherlands, in these circumstances we will
make sure to reach our objectives by promoting and delivering our product to the
right place, for the right people.
In addition, because market demand can change over time, we will invest resources
in constantly checking the current status of consumer wants and needs. We will
keep the interest of current customers by introducing new products and different
accessories that can be attached to the main product.

39

III.D.9.

DETERMINATION
OF NEEDS & WANTS
Needs and wants of customers
Perfection
High Quality
Easy to use
Time saving
Trendy products

We want to achieve this by

Our product helps people to look perfect
People receive value for the price they pay
The customer only has to push a button
Our products works very quick and can save the customer a lot of it
You can personalized your own AWW product.

40

III.D.10.

SOCIAL
RESPONSIBILITY
Since we are a new company on the market, we will focus more
on keeping up our business by being profitable and reaching as
many costumers as we can, but we do not ignore being social
responsible.

The least reason can be shrank by using covers to protect

the cellphone from damage. Bhineka offers AWW to
his costumers in order to avoid the damage on their
cellphones and also to enjoy making daily life easier
when it comes to wrinkles/imperfections. By using AWW
consumers can protect their environment by not throwing
out their damaged phone.
So, our main reason why we exist on the market is protecting
cell phones from damage. Other environmental decisions
of our company are: using ships for delivering our products
from the production point to our warehouses, trying to
order products as few as possible but with a high volume,
being available on online shop (so consumers dont have
to take the car for driving to the shops).

Approximately there are 20,000,000 cell phones and this

number is growing daily as the consumers are tempted by
the latest and fashionable models. By throwing away the old
cell phone and buying a new one the environmental problem
increases. Phones are made of materials which require specialist
treatment to reduce their impact on the environment.
The top five reason (by listmyfive.com) why people change their
cell phones are: emergence of newer model, to be able to use
more advanced features, to try other cell phone brands, to store
music on their cellphones, wear and tears.

On the other hand, we would like to grow with the

community. We will work side-by-side with non-profit
organisation to give back for the community. In the third
year on ward every product sold we will donate amount
of money for UNICEF, WWF, local NGOs such as HandsOn
that work to help foster kids, fighting women trafficking,
refugee, againts drunk driving word wide.

41

III.E.

MARKETING MIX
PRICE
Since AWW is new product in the market we can not deduce a price regarding to the existing market. We
have no direct competition, so we can not offer a higher or lower price than the competitors. As a starters
we have to take in consideration internal end external condition is order to find a good price.
In order to find the good price we took in consideration multiple factors. Such as, positioning (being the first
company who offers such a product), demand curve ( we asked some people about their opinion, in form of
a questionnaire: Would you buy this cover? Yes/No, How much money would you be willing to spend for it?
) , cost (we did a cost estimation for the cost of good sold, and we decided to add a 20% markup), and also
environmental factors.
We, as Bhineka want to maximize our long-term profits, so we seek to the short term revenue maximization
pricing strategy. We will try to achieve a broad market share with a fair price. We will focus more on spreading
our product and the benefit of owning it in the whole Netherlands. We also took in consideration that in the
first months we might make loss but we are building on the market share.
Pricing of AWW
Suggested retail price
Retailer margin
Price to retailers
(electronics retailers)

: 18.99
: 31% (4.52 )
: 14.47

Our final price is 18.99 Euro. It is not to high, so even people with average salaries can afford it, we believe
that with this price we can spread out AWW in the Netherlands. In the future this price might change by new
competitors affection or other conditions.

42

PRODUCT
We provide phone cases, which can be transformed into an
a travel iron/straightener. AWW is a tangible product, which
means that it tested, touched and possessed.
The layers of our product are:

Core product:
AWW is a phone cover. The initial reason why we created it is
providing safety for smart phones as iPhone and Samsung S3.
Inspite, AWW is way more special then a simple cover. It can be
turned to an iron/straightener, since an iron plate is attached
to the main cover. The main cover ensures a secure hold of the
smart phone. The metal plates, which are attached to this holder
are made of by a special alloy which warms up and colds out
completly in under 30 seconds. In order to warm up these plates
we added an internal battery.
In summarize, AWW is a complex gadget, containing iron,
straightener and cover in a same product.
Actual:
In order to deliver our product to our costumers in the original
status, we make sure that during the lead time it will not get
damaged and we will pack it in a paper box. On the package
will be illustrated the core product plus a short review about the
product.
To make sure, that everyone can use the product in most efficient
way we include in the package an instruction. This will be available
in two languages: English and Dutch.

CORE
ACTUAL
AUGMENTED

Augmented:
We offer a chance for return. If the costumers observes anything
irregular, they can return it and then our employees will decide
whether the problem accrued because of the bad production or
of the costumer.

43

PROMOTION
There are numerous ways to introduce our product to the Flyers, stickers, posters and doorhangers
market, and our company is very young so we do have a relative
low budget for promotion. Therefore we have to be really We as Bhineka are going to the streets with a promotion team in
effective in promoting our product.
the four cities Amsterdam, Rotterdam, Den Haag and Arnhem
we will hand out flyers, put stickers on every possible object
We choose to do the promotion in the three biggest cities of where we are allowed to put stickers on. We will try to hand out
Holland; Amsterdam, Rotterdam, Den Haag and our home city flyers to everyone who is passing us and leave flyers in shops
Arnhem. We would love to introduce our product in every city who are open for that. We will also go to a few neighborhoods
in Holland but our budget doesnt allow us to do that.
and put door hangers on residents doors and leave the flyers in
their mailboxes. We will also put posters on walls and possible
objects. We will do this all to get known in the cities and in the
Deals with phone providers
whole Netherlands.
What we are going to have a deal with the Phonehouse. If they
offer a contract and they have a special offer sometimes they Rewards to customers
give a gadget with the phone as there promotion. What we
want for the beginning to offer our product for a 50/50 share As we said before social media is very important for us especially
to the Phonehouse. So our market will get known with our Facebook. We have a Facebook page and we want as many likes
product. Since the Phonehouse is our investor we only work as possible; this all to let people be aware of our product. Also
the product upgrades and things we are up to as a company
together with the Phonehouse.
will be posted on this page. We want to give rewards to people
who like us by giving free products away. To be specific it will be
Free Advertising
seventeen products that we will give away randomly in certain
When it comes to free advertising, the main field if focus is on months.
social media. This is done by concentrating on the websites that
are primarily used by the country in the population question
of our research. The main social media websites/apps used by
people in the Netherlands are as followed:
* Facebook
* Linkedin

* Twitter
* Hyves

* Tumblr

44

Reward to best salesman

The Phonehouse is the shop we are working together with. We want to create competition for the Phonehouse
employees, the person who has sold the most Aww phone covers can win at the end of the year a trip to Turkey with
his/her partner. We do this because competition helps them to try to sell more of our cover instead of other covers,
because they can win something and also there will be a competition with their colleagues who will sell the most in
one year.
Festivals
We will also sponsor festivals for this year we picked two festival. The first one is pinkpop around the 60,000 people
visit Pinkpop, we are going to give 50 covers away visitor of Pinkpop we do this that people become acquainted
with our product and tell their friends and family about our product. We will also be one of the sponsors of the
bevrijdingfestival in Wageningen this is a festival that celebrates that we are a free country after the second world
war. This has still a high value in Holland to most of the people so we also want to be known as a company that cares
about the country.
Design competition
To create awareness and increase the demand, we will have a design competition. The competition is about making
poster design for AWW. By that we will attract the customer to look at our product or even buy it. The pasticipants
will have to upload their design through facebook and get as many like-s as possible to win the price. By this, we
will create awareness of our product. The two best designs will be used to make a mural(wall) painting next to the
highway in Amsterdam, as part of our guerrilla marketing. The price to be won is a trip to Amsterdam.
Inflatable screen
Our Company will buy an inflatable screen that we can move easily and works the same as a normal screen. We rent
for two months in our four cities a place next to the highway to put our screen there. Every day there is a lot of traffic
on the highway and they all drive passed our screen can read our message.

45

Monthly promotional plan

We made a time table for the promotion planning for the first year. We planned here all the promotion action we will do and
the cost of the promotion actions. You can also see in which city we do what and for how much.

Month Activities
1
Inflatable screen
Amsterdam:
5.000 stickers
5.000 A3 posters
25.000 flyers
5000 doorhangers
Promotion team
Rent place to display screen
Rotterdam:
5.000 stickers
5.000 A3 posters
25.000 flyers
5000 doorhangers
Promotion team
Den Haag:
5.000 stickers
5.000 A3 posters
25.000 flyers
5000 doorhangers
Promotion team
Arnhem:
5.000 stickers
5.000 A3 posters
25.000 flyers
5000 doorhangers
Promotion team
Total month:

Cost
550.00

199.00
296.00
282.00
237.50
700.00
450.00

199.00
296.00
282.00
237.50
600.00

Amsterdam:
Rent place to display screen
Total month:
Product give away (17 items)
Rotterdam:
Rent place to display screen
Total month:
Rotterdam:
Rent place to display screen
Total month:
Sponsoring bevrijdingsfestival
Wageningen
Total month:

450.00
450.00
177.50
450.00
627.50
450.00
450.00
1,250.00
1,250.00

199.00
296.00
282.00
237.50
600.00
199.00
296.00
282.00
237.50
600.00
7,558.00

46

Pinkpop festival
Amsterdam:
2.500 A3 posters
25.000 flyers
Promotion team
Rotterdam:
2.500 A3 posters
25.000 flyers
Promotion team
Den Haag:
2.500 A3 posters
25.000 flyers
Promotion team
Rent place to display screen
Arnhem:
2.500 A3 posters
25.000 flyers
Promotion team
Total month:
10.000 likes trip to Curacao for 4
persons for 4 days
Den Haag:
Rent place to display screen
Total month:

500.00
148.00
175.00
150.00
148.00
175.00
150.00
148.00
175.00
100.00
450.00
148.00
175.00
100.00
2.242.00
2391.50

10

11

12

TOTAL

Den Haag:
Rent place to display screen
Total month:
Arnhem:
Rent place to display screen
Total month:
Arnhem:
Rent place to display screen
Total month:
Design competition:
mural & trips 2 persons to Curacao
3days
Total month:
Empolyee of Phonehouse who sold
the most Aww products wins a trip
to Turkey 2 persons 1 week
Total month:

450.00
450.00
450.00
450.00
450.00
450.00

627.50

729.50
729.50
18,126.00

450.00
2.841.50

47

PLACE
Our head office and our warehouse is going to be in Arnhem, Gelderland, the Netherlands. Arnhem has a population of 146,272
people. And the metropolitan area of Arnhem and Nijmegen has a population of 738,700 people. We choose for this city for a
number of reasons:

* Our office and wareghhouse is strategically close to a inland river port, a cargo train station and a highway.

* The location of Arnhem as a transit place between Western, Eastern, Northern and Southern Netherlands, and because
the city is the gateway to Germany, the city has been able to develop as an important trading centre.
The first year:
In the first year you can only buy our product as The Phonehouse. We did our research and we find out that the Phonehouse is
very big and spread thru the Netherlands. Another reason that we choose to sell our product to only one shop is that its easier
and cheaper for us as a just founded company.
Second year:
We will approach the following shops in the second year to buy
our product.
The retailers of consumer electronics

* MediaMarkt

* Kijkshop

* Dixons

* BCC

* Scheer&foppen

Phone shops

* Belcompany

* Phonehouse
Webshops

* bol.com

* wehkamp.nl

* gadgetfabriek.nl

* megagadgets.nl

The phone providers in the Netherlands

* Vodafone

* T-mobile

* Kpn

* Telfort

* Hi

* Tele2

Daily deals websites

websites that provides printable or digital vouchers for daily
deals offered by local businesses. The site allows merchants in
various markets around the world to open an online store and
post their daily deals via the site.

* Groupon

* Ibood

48

III.F.

MARKETING DESIGN

POSTER

49

FACEBOOK PAGE

COMPETITION POSTER

50

LO
G

IV.LOGISTICS

51

IV.A.

MANUFACTURING
The manufacturing of our product needs to be cheap and fast, as we have to react to changing demands
quickly and keep the costs low, as our target group is not willing to pay a lot of money for our product.
Therefore we decided to manufacturer our product in China, because China is the number one country in
the world for manufacturing and offers a good balance between cheap prices and reliable quality, which
is exactly what we need for our product.
Due to extensive research on databases such as Marketline, Webshops for manufacturers as for example
Conrad.com or alibaba.com we decided to work with Spider-Foot International Limited in Hong Kong as
our supplier. The supplier has the manufacture in Mainland China. Also quotes from companies such as
Vos logistics, China Shipping and a middle sized manufacturer near Hong Kong, we estimated the cost
for our product at a total amount of 10 . If we add the quoted and calculated shipping cost plus a little
amount for price changes due to the market, you can estimate a overall sum of costs of 10,4 per product.

Smartphonecover

Metal plate for iron

2,7

Safety switch & magnet

1,3

High power battery & socket

2,5

Assembling 1,3

1,3

Manufacturing Costs

8,8

Packaging

1,2

Shipping costs

0,4

Cost product until stored

in our warehouse

10,4

The Office Location :

Room K, 5/F., Century Centre,
33-35 Au Pui Wan Street, Fotan,
New Territories-Hong Kong
Manufacture Location :
Rm 28E Yongyige, 6 Zhen Zhong Road, Futian District
51803, SHEN ZHEN, Guangdong-China (Mainland)
T : 86-755-83019702
F : 86-755-83013132

52

IV.B.

SHIPPING , TRANSPORTATION,
AND DISTRIBUTION
Shipping
We buy our manufactured goods in a small city close to Hongkong. So we decided to use the port of Guangzhou due to
its good transport connections and international reputation. The shipping will be done in a 1m x 3m x 1m box, which will
be supplied and handled by the Guangzhou Shipping Company. Due to the dimensions of a standard container we will
be able to ship 5000 products in one container. Therefore 5000 is our most Economic Order Quantity and the shipping
cost per container will be 2000. We will ship our products to the Port of Rotterdam in the Netherlands.
Calculation amount of ready to sell-packaged
goods per full oversea container load

packaging measures:
length
: 0.15 m
width
: 0.1 m
heigth : 0.03
m
volume
: 0.00045 m

volume standard oversea container
3m3 will fit 6666.66667 products
Shipping Box
L : 1m
W: 3m
H : 1m
If packed ideal there would fit 6667 packages in one box, but due to safety packaging and loading
regulations(freespace to the top of the container), the actual amount of packaged goods in one standard
oversea box would be around 5000.
The price for this small container load seems to be expensive, but as we have an full-insured and and express
shipping deal to reach a leadtime of only 3 weeks, it is a fair and reasonable price.

53

Transportation And Distribution

We will distribute the products to retail-centers and shops throughout the Netherlands by ourselves. By using
our own car to deliver stock of products, we are flexible and effective. Travelling by car through Netherlands
is not costly, as The Netherlands are a small and densely populated. The online retailing will also be done by
The Phone House, as they offer a commonly used online shop.
The delivery of our products to the retailers shops will be done as they require it. We will always do our tour
on the first working day of the month. In the first 5 month we just need to deliver once, in the sixth month
we will deliver again and during the following 6 months of our business year we will have to drive another 3
times. As the cost per delivery is 151,94, the delivery cost for the first year will be 759,70.

Bhineka will buy two second hand cars as the transportation and distribution vehicle

Volkswagen Transporter 2.5 TDI 300 Trend.DC

Price : 11,950.00

Opel Zafira 2.0 16V dti maxx cool *7

Price: 6,250.00

54

IV.C.

WAREHOUSING AND OFFICE

Vos Logistics will transport the container to our Warehouse in Arnhem. Our warehouse is strategically
close the a riverport, a trainstation and the highway which saves time and costs while distributing our
products.
The warehouse is about 123m which should provide enough space to store the packaged products
and other supplies such as further packaging material, flyers or other advertising goods. There is also an
office space included. The rent is 1,150 per month, inclusive taxes, energy and interest.

Eimerssingel-West 0
6832 EW Arnhem
Gelderland - The Netherland

55

IV.D.

RETAILERS
Our main retailer will be The Phone House Netherlands. Their target audience is similar to ours and they are
strategically located throughout the Netherlands. We will also try to get into contracts in the following years
with MediaMarkt, Hema and Apple-retailing agencies.

IV.E.

DECOUPLING POINTS
For the product AWW of our company we will use a mix out of decoupling point one and decoupling point
two. We display and sell our product in retail stores such as MediaMarkt or the Phone House, so we order and
build our product to stock it. This is due to the fact that many people tend to buy new products spontaneously
without doing a lot of research about it. Customers also dont want to wait until they can use a product.
Another way of selling our product will be an online-shop. By that we use decoupling point two which targets
people who usually research a lot about a product before spending money on it and therefore probably would
buy it on the internet. Customers who want to save money but dont care too much about lead-time also tend
to use online shops.

56

IV.F.

SUPPLY CHAINS
As we got a mix out of two different decoupling points, we naturally have two supply chains.
Decoupling point one:

supplier

stock

ware
housing

producing

retailer

shiping from
China to The
Netherland

consumer

Decoupling point two:

supplier

stock

ware
housing

producing
shiping from
China to The
Netherland

Our Retailers
online shop

consumer

Leadtime from both supply chains will be around three weeks, due to average oversea delivery times. Leadtime doesnt
differ between the two supply chains, as sending parcels in the Netherlands is fast and reliable.

57

IV.G.

BILL OF MATERIAL
Aww will consist out of 10 different articles, divided over 3 levels. The ready-tosell product consists out of two items, the product itself and the packaging. The
product itself again consists out of 5 items: leather, magnets, iron plates, on/off
switch and the base cover. The base cover will be made out of a flat battery, a
plastic cover and a charger socket.
The insurance costs cover all the possible insurance that we need. It insures our
inventory, our stock, possible damage to our warehouse and our transports.
Weve calculated the transportation to distribution costs by setting out a trail
through the Netherlands, to visit all the big cities to get our product to the
shops there. Well start in Arnhem, then go to Utrecht, Maastricht, Eindhoven,
Breda, Rotterdam, Den Haag, Amsterdam, Leeuwarden, Groningen, Zwolle and
then back to Arnhem. The gasoline costs will be approximetaly 151,94 euros
for one trip.

58

BILL OF MATERIAL
SCHEME
Level
0
1
1
2
2
2
2
2
3
3
3

Level no.
001
101
102
201
202
203
204
205
301
302
303

Item
AWW-Ready to sell
AWW
Packaging
Leather
Basic cover
Magnets
Iron plates
On/Off button
Flat battery
Plastic cover
Charger connector

Quantity
1
1
1
1
1
2
2
1
1
1
1

Part 001
AWW
ready to sell

Part 101
AWW

Part 102
Packaging

(paper box & user guide)

Part 201
leather

Part 202
base cover

Part 203
magnets

Part 301
flat battery

Part 302
plastic cover

Part 303
charger socket

Part 204
iron plates

Part 205
on/off switch

59

IV.H.

MATERIAL REQUIREMENT PLAN

Month
Gross requirement
On hand
Order receipt
Order release
Delivery Quantity
Lead Time
Safety Stock

Jan
489
4511
5000

Feb
734
3777

Mar
1469
2308
5000

Apr
2448
4860
5000

May
2316
2544
5000

Jun
4406
3138
5000
5000

Jul
5741
2397
5000
5000

Aug
6228
1169
5000
10000

Sep
6180
4989
10000
5000

Oct
6343
3646
5000
5000

Nov
6151
2495
5000
5000

Dec
6455
1040
5000

: 5000 pcs
: 3 weeks
: 50

This scheme shows how many times we will have to re-order in the first year. The gross requirement is what we will
need each month, and on hand is what we already have. We have chosen for a safety stock of 50 items and our lead
time is three weeks. Well order in March, May, June, July, August, September, October and November. Well have to
order twice as much in August to meet the demand in September

60

N
FI

V.FINANCIAL

61

V.A.

FINANCIAL
OBJECTIVE

SHORT TERM OBJECTIVES

Survival
Out of all of the targets and objectives set for Bhineka, first and foremost is survival. With around 50% of businesses
never making it to their first anniversary, it is crucial to owning a successful business, that you survive the hardest
period. This arguably the first year, when the brand, product, message, and company are all unfamiliar and unknown.
Increase in revenue
As the first year will also prove to be a financial struggle on the company, it is important to gain enough revenues to
survive. This does not mean the business will be profitable in the first year, but it is expected that the sales revenue and
profits from products sold will be enough to cover most of the costs incurred in start-up costs and operational costs
throughout the year, leaving a small deficit at the end of the financial year.
Increase in market share
To have a reliable position in the business industry, Bhineka will have to gain some kind of hold in the market. This
market may be complex to define, as there is no direct competition for AWW.

62

LONG TERM OBJECTIVES

Most of the short term objectives of the business will also be
covered in the long term targets of the company but on a
bigger and strategic level. This is because the intention of most
successful businesses is to not only survive and make profit,
but to increase profits and market share constantly, in order to
dominate the market in which your product is in.
Survival
Once the company has made it past the first year, this does not
mean that the company is safe forever. The first 12 months may
be the trickiest, but this doesnt mean the years that follow will
not be a struggle. The success of the first year may turn out to be
a trend, and that may be the only reason that the product was
successful. If this is the case, once the hype has died down the
product will be in serious risk of failing.
Increase in revenue

Increase in market share

Bhinekas first attempt is to gain a 2% market share of the
smartphone market. By that we would reach around 136,000
customers per year. This is also expected to increase as the years
go by. Another important factor for the business is that phones
get replaced frequently and cases/ appliances break often,
meaning each year there will be more potential customers
as people who have already owned a smartphone, but used
another existing cover become available for our product as
they get bored of their case or it breaks. After the research we
conducted, it was shown that 70% of our audience would hve
purchased our product, therefore a future prediction of 5% to
even 10% of the target market in 5 years, is highly achievable.
This would mean selling near 350,000 products up to 680000.
Increase in profits

The last of the initial financial objectives is the increasing of

As the first year is expected to be one of the lowest, within the profits. As the company develops as a successful business, we
products life cycle, the next few years the amount of revenue will look to decrease the costs of bulk buying of the cases and
gained from the sale of products is expected to rise drastically, metals to install in the case for the iron. As the contribution per
and preferably to increase year by year. This makes increase in unit is only at 6.59, this still has to cover fixed costs. Hopefully
we would look to increase the contribution by 20% to around
revenue a key objective for many years to come.
7.9 or 8.

63

V.B.

PRICE
CALCULATION
Manufacturing Price
Packaging
Shipping Costs

8.80
1.20
0.40

Total Costs

10.40

Gross Profit 15%

1.56

Price excluding taxes

11.96

Taxes 21 %

2.51

Price including taxes

14.47

Once the product is fully made itself, this being the initial 8.80, it then has to be packaged before it
can be loaded for shipping, this is the next fee we encounter. Once the packaging costs are made, the
shipping costs then have to be paid. The sum of these three expenses is the total cost of the product
(COGS).
The profit margin is added, in our case 15% (1.56) and this gives the price excluding tax. The tax 2.51
(21%) is then combined to the sum and gives the final price of thee product including tax, at 14.47
In the Netherlands the prices in the stores are including taxes. For this reason the selling prcie is 14.47
. But as the company does not earn the taxes we also quote the price without the taxes, to know what
we really earn.
GPM = (14,47-10,4)/14,47*100% = 28,13 %

64

V.C.

FINANCIAL STRATEGY
V.C.1.

OPENING
BALANCE SHEET

65

EXPLANATION
Assets
As the Opening Balance sheet is written on the companys first start of the financial year all of the cash
stated in the current assets is from the initial investments, from both a bank and the shareholders. This
then has to cover all the start-up costs and initial purchases of both stock (Merchandise inventory) and
fixed assets, which appear further down the Balance Sheet. The Merchandise inventory is achieved by
the purchase of one full container, which contains 5000 products. After stock, the prepaids appear. This
includes one years rent and prepaid insurance, which contains office and warehouse insurance and
both vehicles insurance combined.
The companies fixed assets are simpler, containing just the office equipment purchased and the cost of
the two vehicles purchased by Bhineka.

Liabilities
There is only one current liability, this being the 50% of the initial stock purchases made. This amounting
to 26,000. Like current liabilities there is only one long term liability, this being the loan agreed with the
bank. The Deutsche Bank also granted us a long-term loan in the amount of 20,000.
Equity
Bhineka was started by 7 original members, who all invested 10,000 of their own cash as capital for the
business. This led to the shareholders Equity figure of 70,000

66

V.C.2.

SALES
ESTIMATION

We expect to earn 14.47 for each unit while having the average cost of 10.40 per unit.

According to this our Contribution Margin per unit will be:

CM= 14.47 - 10.4 = 4.07

How we came up with our estimation we alrady described in Part III B

67

V.C.3.

EXPENSES

68

EXPLANATION
Building

* For the rent see Part see page 55

* Insurance is paid for a whole year for warehouse and personnel

* The telephone and internet flaterate is paid every month

Transportation

* Insurance is paid for a whole year for 2 cars

* We bought the two cars second hand and paid in cash

* For the transportation to the distribution centres see page54

Salary

* All of the managers will earn 1,350 per month and will be the best paid emloyees in the company

* The secretary will be every day in the comapny and will earn a decent income

Other

* Office supplies are ordered twice a year and last for 6 month;

Also see Apprendix

Marketing expense

* For the marketing expense see page 46

Depreciation expense

* For more information see page 78

Interest expense

* The LTD interest is the 3% Deutsche Bank loan

69

V.C.4.

CASH FLOW
STATEMENT

70

EXPLANATION
Revenues

Month by month sales revenue increases, nearly doubling in June from
Mays figures. Revenues rise to over 90,000 in august, before fluctuating
until the end of the year. The peak of sales however, occurs in december
with 93,414.18

Remit to Suppliers

We purchase 50% of the inventory on account. For this reason we always
pay off the AP within the next month which results from the previous
month . At the end of the year we still have to pay off 26,000.


Purhased Inventory

The Other 50% of merchadise is purchased by cash. This amount is usually
26,000 (half a full crate) unparalleled to septemper where two crates are
ordered. Therefore the figure in this month is 52,000 (half of two crates)


Salaries

The salaries paid to staff are fixed and apply evenly through the year. These
include the standard wage of all managers and executives (including the
CEO) and the wage of the secretary as well.

Short-term Note 3%

In order to cover some losses when we need to pay off the Account
Payable we have to borrow money from the Deutsche Bank on the basis
of Short-term liabilities with 3% interest which have to be paid back
maximal one year afterwards.


Redemption

As our profits increases rapidly two month after BEP we are able to pay off
our short-term debts including interests.


Cash End

Due to our forecasts and expenses we expect to register a cash ending
balance of 14,241.71 in December 2013 after yearly dividends have been
deducted.

71

V.C.5.

INCOME
STATEMENT
Our yearly revenue is as shown, this figure minus the Cost
Of Goods Sold gives us the gross profit at the end of the
financial year.
This figure (gross profit) Is then In effect used to pay all the
remaining expenses the business incurs. Transportation,
building expense, the salaries, twice a year office supplies
and the marketing expenses (such as promotional
campaigns)
29,996.7 is the ammount of earnings obtained, before the
realisation of; Depreciation, Interest and Taxes
All taxes, interest and depreciation are then accounted for
and the real profit of the business is actualized in the form
of net income.
After all deductions we expect to reach a net income of
16702,72

V.C.6.

STATEMENT OF RETAINED EARNINGS

Net Income Dividends = Retained Earnings
16,702.72 14,000.00= 2,702.72

72

V.C.7.

ENDING
BALANCE SHEET

73

EXPLANATION
Current Assets


Cash
As stated on the cash-flow statement (page 69) the cash we obtain at the
end of the financial year is 14,214.71

Inventory
with no Accounts Receivables the merchandise inventory is taken into
account. This is found by working out the
amount of stock left in the company at the end of the year, and finding
out the value of the stock.

Prepaids
As the prepaids are for a whole year, this means they are not realised until
January 1st 2014 and therfore comply
with the same figures given in the Opening Balance Sheet (page 64).

Fixed Assets

Office Equipment
The office equipment has been slightly altered as extra trade tools were
purchased half way through the year. This
figure is then depreciated.

Vehicles
The Vehicles are the same two, purchased at the start of the financial year.
But the Value of these Assets also has
To be depreciated, giving the figure seen above.

Current Liabilities

the only current asset present, corresponding to that of the opening
balance sheet is the cost of half a full crate of merchandise. 26,000
purchased in December

Long-term Liabilities

similarly to Current Liabilities, The long term are also symmetrical to
that of the opening balance sheet (page 64). The Long granted to us by
Deutsche Bank is the only account present.


Equity
Equity contains the intial start up investment from the owners (Capital
Investment) and now also the retained
earnings of the business, this figure is the profit after; taxes, interest,
depreciation and now dividends.

The theoretical value of the company would be 118,702.72 on December
31st 2013, after a year of operating.

74

V.C.8.

BREAK EVEN POINT

Break-even point
Break-even point = (fixed costs / cm per unit)
fixed costs
= 49,949.37
cm per unit
= 4.07
Break-even point 12268

If sales are to go as predicted, we are set to reach our Break-EvenPoint (12268 products) in july 2013. After july all CM per unit will be
profits, these used to fund the other departments.

75

EXPLANATION

V.C.9.

RATIOS
Return on Asset
14.23%
Return on Equity
23.41%
Return on Sales
3.43%
Debt/Equity Ratio
63.27%
Debt/Assets 38.75%
Current Ratio 3.75
Quick Ratio 1.33
Gross Profit Margin
28.14%

Return on Assets
Our return on assets is relatively high. At over 14%, this is very encouraging for our business.
This means that the company is making more money on less investment.
Return on Equity
Our return on Equity is also quite high, this indicates that we are more proun to generating cash
internally, and not just at the expense of loans
Return on Sales
The return on sales figure is quite low in regards to the product. It states that for every Euro made on
sales 3.43% of that is profit.
Debt/ Equity Ratio
Our growth in the business, has been highly influenced by the company taking on debts, therefore
this figure is equally high. This would need to be lowered as we become more established and
comfortable in the market in order to avoid future liquidity problems
Current Ratio
As it is shown, our current assets are almost quadruple our current liabilities. This isnt too high, and
means that the business is running efficiently.
Debt/Total Assets Ratio
The assets financed by debt is not as high as the previous ratios, meaning a bigger percentage of
assets are funded by other means, such as; capital investment, and revenue gained from prior sales.
Quick Ratio
the acid test shows liquidity and the ability to liquidate all quick assets in order to dissolve current
liabilities. As the table shows, the ratio is above 1 and therefore there is not an instant
Gross Profit Margin (percentage)
The Gross Profit Margin shows that for Euro received in revenue, 0.2814c is gross profit. As the business
develops, this figure would presumable lower as the compny finds a way to work more effieciently.

76

V.C.10.

FIX
ASSETS

77

V.C.11.

DEPRECIATION
ON FIX ASSETS

78

CO
N

VI.CONCLUSION

79

This should be the closing part of our proposal, but we will refer to
a big start. This start is releasing our dreams. Seven people, from all
different countries with different culture came together, formed a
group and headed for a dream. They are the constituents of Bhineka,
in other words US. Our dream is to change the world, to make a new
lifestyle and AWW product culture.
AWW will be a market leader product in five years. This will be
achieved by the committed employees and AWWs unique usage,
complexity, reasonable price that Bhinekas competitors do not
offer. We know this facts by doing researches, analyzing the market
and observing target consumer behaviors. By these actions, we
were forced to examinate our business not only from the point of
view of the entrepreneurs, but also potential investors or potential
consumers.
Last but not least, thank you for reviewing our proposal. We hope, we
convinced you with our enthusiasm, and made you an AWW believer.
Take this opportunity and join us to a pursuit of perfection!

we are ready for AWW-FECTION

80

PX
AP

VII.APPENDIX

81

Office supplies

82

83

Office furniture

84

85

Demographics
The population of the Netherlands is approximately 16730348, of which 16730348 are male and 8447477 female(measured in 2012)
. Below you will find a pie chart about the population of the
2500000
2,
Netherlands. They are all living on an area of approximately 41,54 km
2000000
of which 18,4% is water. That means that on each km2 , there are 397
1500000
people living on it, which is a lot. The highest density is in the west of
1000000
the Netherlands. In the Netherlands, our target audience is
500000
approximately 4 902 926, of which 2 180 236 is female and 2722690 is
0
male. To round it off, lets say weve got a target audience of 4,9 mill of
0 till 15
15 till 30 30 till 45 45 till 65 65 years or
which 2,2 million is female and 2,7 million is male. The most populated
years
years
years
years
older
city of the Netherlands is Amsterdam with approximately 790044 living
there. Our target audience in Amsterdam is approximately 331 544, which is more than Arnhem which has a population of only 148
070. Arnhem has a target audience of 53 049, which is compared to Amsterdam and Rotterdam(population of 610 386 with a target
audience of 209 116) not a very strategic place to launch our product. The Hague has a population of 495 083, with a target
audience of 167 235. When just looking at the target
900000
800000
audience, Amsterdam would be our best choice. However,
700000
Amsterdam does offer a lot of competition, having a lot of
600000
500000
Target audience
shops in their city centre. Above you will find a scale of the
400000
Rest of population
population of Arnhem, Amsterdam, Rotterdam and the
300000
200000
Hague.
100000
0

Arnhem

Amsterdam

Rotterdam

the Hague

86

Economics

87

Median age:
total: 41.5 years
male: 40.7 years
female: 42.3 years (2012 est.)
Population growth rate: 0.452% (2012 est.) country comparison to
the world: 153
Urbanization: urban population: 83% of total population (2010)

Social.
Ethnic groups: Dutch 80.7%, EU 5%, Indonesian 2.4%, Turkish 2.2%, Surinamese
2%, Moroccan 2%, Caribbean 0.8%, other 4.8% (2008 est.)

Major cities population:

AMSTERDAM (capital) 1.044 million; Rotterdam 1.008 million; The
Hague (seat of government) 629,000 (2009)

Sex ratio: at birth: 1.05 male(s)/female

under 15 years: 1.05 male(s)/female
15-64 years: 1.01 male(s)/female
65 years and over: 0.8 male(s)/female
total population: 0.98 male(s)/female (2011 est.)

Languages: Dutch (official), Frisian (official)

Education expenditures: 5.3% of GDP (2007)

country comparison to the world: 49
Literacy:definition: age 15 and over can read and write

Religions: Roman Catholic 30%, Protestant 20% (Dutch Reformed 11%, Calvinist
6%, other Protestant 3%), Muslim 5.8%, other 2.2%, none 42% (2006)

total population: 99%

male: 99% female: 99% (2003 est.)

Population: 16,730,632 (July 2012 est.)

School life expectancy (primary to tertiary education):

total: 17 years
male: 17 years
female: 17 years (2008)

country comparison to the world: 63

Age structure: 0-14 years: 17% (male 1,466,218/female 1,398,463)
15-64 years: 67.4% (male 5,732,042/female 5,624,408)
65 years and over: 15.6% (male 1,141,507/female 1,484,369) (2011 est.)

Unemployment, youth ages 15-24: total: 6.6%

country comparison to the world: 119
male: 7.1% female: 6.2% (2009)

88

For decades the countrys historical ties with other parts of the world has
brought foreigners to settle in Holland, bringing some of their own ideas
and cultures. This makes the Dutch generally open-minded and tolerant.
Dutch society is now home to over 190 different nationalities. Although
Dutch is the national language, most people also speak English and often
another foreign language, such as German or French. Another characteristic
of the Dutch is their openness and direct manner. You can say exactly what
is on your mind; the Dutch are not easily offended.

The Netherlands has approximately 480 inhabitants per square kilometer.

With only 0.008% of the worlds area, the Netherlands is the worlds third
largest agricultural exporter. The Netherlands has at least 15,000 km of
bicycle paths. The Netherlands has nearly 1,000 museums, with 42 in
Amsterdam alone. Almost every Dutch person has a bicycle and there are
twice as many bikes as cars. The Netherlands is the worlds eighth largest
exporter. The Netherlands has the highest number of part-time workers in
the EU (four in ten people). People of 200 nationalities live in Amsterdam.

Technological
When it comes to the technological side of things, not only does the new product need to be taken into consideration, but the products that already exist.
The pre-existing problem they were created to solve, and the way in which they can be improved. A year ago, research was done into how many people
owned a smart phone in the Netherlands. http://www.dutchnews.nl/news/archives/2011/08/four_out_of_10_dutch_have_a_sm.php
It was found around four of ten people were owners of a smart phone, and some 60% of young people aged 15-29 year olds were found to be in
possession of one. With a population of just under 17 million that leaves the potential market for our product at around 6.8 million customers. (Wikipedia
states there are 20million phones in the Netherlands, but does not state which percentage are smart phones.) The pie chart below should how much
potential customers Aww will be aimed at.

89

Dutchnews.nl also stated in a more recent post that the rate of smart
phones is stalling and the rate of tablets is increasing drastically raising from
the measly 1.7 million people ten months ago to a more respectable 2.8
million owners, with predictable the Apple Ipad being the leader in brand.
When it comes to looking at the old technology that already exists it
becomes a bit harder. For years there have been phone covers and multipurpose phone cases, but not such as ours. Aww is the first product to not
only encase the customers smart phone, but also provide an ironing device,
a straightening device and potentially a shaving device as well, whilst
powering the phone with its own longer lasting battery. So researching
old competitors or market leaders in the same field is virtually impossible.
But certain aspects of the product can be looked at such as the metal used
which cools rapidly, this could be compared and bettered from previous
products using the same metal. Also the battery included with the product
can be reviewed as we will not be the first company to place the battery in

question into our product.

Another big part of the technological analysis is that the product shouldnt
get lost in itself. Defined, consideration needs to be taken when remembering
the pre-existing problem that the product was created to solve. This being
the moments where the customer has missed a spot of hair gone curly, a
crease in the shirt, a hair missed whilst shaving, some of these problems,
may individually have cures already made separately. On the big scale none
of the issues we aim to solve have a pocket-able solution, but all have a
travel option. A travel option being a smaller version of the original product
but designed for when a person is travelling, i.e. a travel iron or straighteners
for a holiday.
A pair of travel straighteners and a travel iron. They show the size difference
from the familiar household versions, but dont show how they could
both be present in one device which can easily be kept comfortable in a
customers front pockets.

Environment
Holland is located in Western Europe, bordering the North Sea, between
Belgium and Germany. The Netherlands has a coastline of 451 km and it
has seven major ports for instance Port of Rotterdam which is the largest
port in Europe. Transportation of goods over water in the Netherlands is
highly developed. Ports in the Netherlands also cherish the Environment. A
lot of them participates in the Ecoports organization (www.ecoports.com).
Ecoports tries to find environmental friendly solutions and work together in
projects for more sustainable ports and logistics chain.
The climate of the Netherlands is very variable. Rain and wind are dominant
but the weather changes day by day even hour by hour. Rain can cause
Bhineka an advantage, because people cannot walk to their meetings/
school/work/etc. but they have to take the car or bus which means higher
possibility to get their clothes wrinkled.
People from Netherlands express their care about the environment by
riding bicycles. In Holland 27% of all trips and 25% of trips to work are made
by bike. There are 16,500,000 bicycles in the country and ~99.1% of people
are cyclists.(source top10hell.com) This means that women and even men
can make a big use of Aww when it comes to straighten their hair, curled

up due the wind and the moist air. Approximately 20,000,000 people in
the Netherlands uses cell phones and this number is growing daily as the
consumers are tempted by the latest and fashionable models. By throwing
away the old cell phone and buying a new one the environmental problem
increases. Phones are made of materials which require specialist treatment
to reduce their impact on the environment. We should pay attention on the
environment other wise we cause our selfs health or other problems.
The top five reason (by listmyfive.com) why people change their cell phones
are: emergence of newer model, to be able to use more advanced features,
to try other cell phone brands, to store music on their cellphones, wear and
tears.
The least reason can be shrank by using covers to protect the cellphone
from damage. Bhineka offers Aww to his costumers in order to avoid the
damage on their cellphones and also to enjoy making daily life easier when
it comes to wrinkles/imperfections. By using Aww consumers can protect
their environment by not throwing out their damaged phone.

90

Politics: Judicial system

The judiciary comprises 19 district courts, five courts of appeal, two
administrative courts and a Supreme Court which has 24 justices. All
judicial appointments are made by the government. Judges nominally are
appointed for life but actually retire at age 70. The functions as the highest
court in most administrative cases.

Monopolies
If you are in a position that you have a market share of 40%. Abuse of that
position lies in wait. You might be able to increase prices unreasonably, or
just lower your prices to other suppliers from the market to work. This is
clear abuse of your dominant position. And that is prohibited.

Mergers: Mergers and acquisitions

Foreign policy
When companies merge or one company takes over another, the new
The foreign policy of the Netherlands have four commitments: to company will be bigger and stronger in the market. This competition can
Transatlantic relations, European integration, International development get in the way. Therefore, there are conditions associated with mergers and
and International law. While historically the Netherlands used to be a neutral acquisitions. Above a certain turnover your company has to tell the NMA.
state, it has joined many international organisations since the second world
war. Most prominently the Un, NATO and the EU. The economy is very open The VAT has rates of 0%, 6% and 21%. Doing business in foreign countries?
en relies on international trade.
Then the 0% VAT rate applicable. For some goods, the reduced VAT rate of
6% applies. For example, for food, medicines and insulation, painting and
Sub national government
plastering work on homes. For other products or services, the general VAT
Regional government in the Netherlands is formed by twelve provinces. rate of 21%. For our product it will be 21%.
Provinces are responsible for spatial planning, health policy and recreation,
within the bounds prescribed by the national government. Furthermore
they oversee the policy and finances of municipalities and water boards.
Our sub national policy will be Arnhem:
Burgomaster: Mrs. P.C. Krikke
Counsillors: Gerrie Elfrink, Michiel van Wessem, Margreet van Gastel, Henk
Kok and Martijn Lesink Secretary: S. Gerritsen
Cartels
If you make agreements with other companies on prices or over goods or
services, we speak of a cartel. A cartel is detrimental to consumers because
the price can go up or because the consumer has less choice. A cartel
prevents competition. A cartel is prohibited. Companies may be together, if
more than eight companies work together and goods totalling 5.5 million
for services or EUR 1.1 million turnover is permitted together. And if the
combined market share is less than 10% and the appointment no bad effect
on has or trade between EU Member States, companies may collaborate.

91

Bhineka twitter page

92

Bhineka youtube page

93

C
SR

VIII.SOURCES

94

www.cbs.nl (page 18, 31, )

www.wikipedia.com (page 17, 38)
Telecompaper (page 30)
Hong kong office (page 48)
www.ikea.com (page 66)
www.misco.com (page 66)
www.staples.com (page 66)
http://www.marketingsphere.com/marketing-articles/unique-sellingproposition.html (page 35)
http://www.inc.com/guides/small-business-growth-strategies.html (pg 36)
www.indexmundi.com/netherlands (page 36) www.listmyfive.com (pg 39)

Doorhangers:
http://www.virtualprinter.nl/deurhangers-drukken
Curacao:
http://www.arke.nl/verre-reizen/curacao/curacao/willemstad/renaissancecuracao-resort-en-casino/prijzen.aspx
Turkey:
http://www.arke.nl/zonvakantie/turkije/turkse-riviera/side/side-starbeach/prijzen.aspx
Amsterdam:
http://www.weekendjeweg.nl/hotels/nl/hotel-amsterdam/mystery-hotelamsterdam-en- omgeving.html?allot=209943490&mf=03&df=2#dates

inflatable screen:
Place for screen:
http://www.dutchinflatable.nl/Opblaasscherm/Opblaasscherm-/- http://www.weilandreclame.nl/prijzen-adverteren-langs-de-snelweg
Reclamescherm-4
Bevrijdingsfestival Wageningen:
Posters:
http://www.4en5meiwageningen.nl/Sponsorenoverzicht/index.
http://www.virtualprinter.nl/posters-drukken
php?id=868 June Pinkpop:
http://nl.wikipedia.org/wiki/Pinkpop
Flyers:
http://www.virtualprinter.nl/flyers-drukken
Advertisment highway:
http://www.weilandreclame.nl/prijzen-adverteren-langs-de-snelweg
Stickers:
http://www.virtualprinter.nl/stickers-drukken
www.marktplaats.nl (page 66)

95