Business Case

Presentation
KAKUL : Sustainable Gifting Products Marketplace

Presented By:
Keerthivasan C.S
Aadhil
Guneel Kumar
 Problem Statement Problem statement analysis
Astha Manroa, the founder of Kakul, wants to increase its product line and the level of operations; the firm is looking to • Shift in consumer demand favoring environmentally conscious brands and rise in awareness of
develop a new business model from production, distribution, and sales while striking a balance between environmental sustainability issues warrant the need for innovative business models that balance eco-impact
responsibility and economic viability to meet the growing demand for eco-friendly products. reduction with continued commercial success and profit margins.
• Kakul Eco aims to solve this problem through strategic objectives across sourcing, carbon
footprint, packaging, recycling and circular models - leveraging their existing expertise and scaling
Total Addressable Market (TAM) : Population of India = 1.403
Market Analysis billion
to larger eco-conscious retail markets, while ensuring ethical labor practices.
• Kakul has the opportunity to create benchmark sustainable operations that promote responsible
Assuming internet penetration rate of 75% (Statista, 2023) consumption through innovations like creative packaging solutions and ethics-driven supply
Internet users in India = 1.403 billion * 0.75 = 1.052 billion chains
TAM
Assuming 20% of internet users are potential customers for eco- Insights from primary research
210.45
friendly products
mn Potential customers in India = 1.052 billion * 0.2 = 210.45 million
SA • A segment is willing to pay extra for eco-friendly products, but price remains a strong factor
21.045 - the majority only willing to pay 20% extra money for eco-friendly products
M Serviceable Available Market (SAM) : Assuming 10% of potential • Factors like Trust, Quality and Eco Friendliness are considered together, not singly, showing
mn customers are interested in purchasing eco-friendly products an integrated decision-making preference. Customers see sustainability as an additive
SOM Eco-friendly product interested customers = 210.45 million * 0.1 = quality
1.052 21.045 million • Adopting a multi-tier pricing strategy with about 20% and 40% premium price points based
on product attributes would align to consumer preferences
mn
Serviceable Obtainable Market (SOM) : Assuming a market share • A premium-priced product line focused on Quality differentiation could succeed. A sizable
of 5% portion of responses show willingness to pay 40% or 60% more for quality alone.
SOM for eco-friendly products in India = 21.045 million * 0.05 = 1.052
million 4P’s
Primary Research Our primary research shows that 70% of
people are willing to pay 20% extra for an Product :
eco-friendly and sustainable product. • Eco-friendly materials: Use recycled, organic, biodegradable, or sustainably sourced materials.
Furthermore the research also found • Durability and reusability: Design products to last long and be easily repaired or repurposed.
• Minimal packaging: Reduce unnecessary packaging and use recycled or compostable materials.
23.3% and 6.7% of people were • Transparency and certifications: Clearly communicate the product's eco-friendly features and
interested in paying 40% and 60% extra obtain relevant certifications .
respectively. Price :
• Value pricing: Focus on the product's long-term value proposition, emphasizing durability,
resource savings, and ethical sourcing.
Another analysis found that majority of • Fair pricing: Ensure fair wages and working conditions throughout the supply chain.
the people were more concerned about Promotion :
Quality and Trust while ordering from new • Positive storytelling: Showcase the positive impact of using the product, from individual choices to
website or platform. Whereas Eco-friendly collective change.
• Community engagement: Build relationships with eco-conscious consumers through events,
was the 3rd most important aspect. partnerships, and social media.
Competetors • Educate and empower consumers: Highlight the product's environmental benefits and educate
consumers about sustainability issues.
Place
• Sustainable distribution: Choose eco-friendly shipping options and minimize transportation
emissions.
• Online presence: Utilize online platforms for efficient distribution and reach a wider audience.
Customer Segmentation and Profiling Revenue Model

Uninformed Environmentalis Source (Who

High attitutde
Revenue Model Reason Method
Customer don't know about the existence of Customer is highly
t aware of the environmental pays?)
eco-friendly products. They are more likely to damage and try to be environmental conscious
adopt change if awareness is imparted. wherever possible.
Reasons can be: Reasons can be: Mark up the selling margin bought from the seller
• Dogmatic attitude towards using
• High income level Mark-up Model End customer Products - sold via website
and sell the products to customers
• High awareness
alternative.
• Less reach to existence of such products • Accessibility to resources
Digital middlemen - Providing seller a platform to
High Sales Commission list and sell their products in return of the
Awarness Seller E-commerce platform
commission (predetermined percentage of the
Ignoran Slacker Model sales price
Customert is unaware of the environmental Customers is aware of the environmental
damage. They are very hard to convince. damage. and also knows the impact of Acting as an agency to collaborate with suppliers
• E-commerce platform
Reasons can be: sustainability in the world. Agency Revenue and offer them specialized services to remain
• Low literacy rate Reasons can be: Seller • Specialized services
competitive and sell products through e-
• Low overall awareness in society • unavailability of resources Model commerce platform
• Low income
• lackadaisical attitude
Personalized selection of Fostering an ongoing relationship between
Subscription consumers and the brand by providing
End customer Products - for discounts in
personalized monthly deliveries of selected
Revenue Model subscription basis buckets of products

Business Model
APPROACHING CLIENTS:
ECO FRIENDLY CERTIFFICATIONS: Cost comparisons for packing materials:
RURAL: Approach can also be based on validating their eco
• Identifying geography based eco friendly items that are friendly certifications. Some of the top certifcations in
manufactured. Eg. Silk saree in Kanchipuram, Tea in India are:
Darjeeling
• Analyzing competitors sourcing companies • Ecomark = certificate from Bureau of Indian
• Analyzing local organizations what they sell related to Standards
eco-friendly products • Carbon free certification = NSF international
sustainability division
COMMON APPROACHES:
• Introduce eco-friendly products to aspiring
entrepreneurs and guide them into this sector.
• Foster awareness and promote eco-friendly products as
potential startup ventures through engagement Analyzing the packing materials:
initiatives like beach cleanups, highlighting plastic
usage, and advocating for eco-friendly alternatives.
1. Reusable and biodegradable containers are the best choices for
URBAN:
• Using websites like Indiamart, ExporterIndia, packing materials. Reusable containers have a greater depreciation life
Ecotrade ;Linkedin, social media platforms as it can be reused in households.
• Government registered initiatives in MSME = Eg. Coir. 2. To improve sales, offer creative and optimized packaging to the
• Fair and exhibitions product mix.
 Operational Strategies in Detail
Business process
Strategy 1 :

Strategy 2:

iNI Strategy 3 :
https://www.figma.com/file/3Ob4p4J0kVQRyHyEy3BED0/KAKUL-flowchart?type=whiteboard&t=JY8VihuOo4xcEnl
S-1

OPERATIONAL STRATEGIES:

Operational Stratergy: Considerations 1.Setting up zonal distribution centers

2. Setting one Distribution centers for entire

• According to 2021 INTERNATIONAL COUNCIL ON CLEAN nation
TRANSPORTATION= carbon footprint is 121.3g/km
• considering 130g/km in 2024
3. Identifying regular customer region and
Establishing distribution centers
Strategy 4 :
• consider Distribution of welllness hamper = ₹1869
4. Setting centers in each state
BEST OPERATIONAL STRATEGY:
Considering carbon footprint:
• The current operation runs as per strategy 2.
• To increase their operation, strategy 3 is a
good option.
• The company can later on adapt strategy 1
and 4 to expand their market in India
BUSINESS MODEL Designed For:kAKUL Designed By: Team IIMV Date: 20 FEB -
2024

CANVAS
KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER
PROPOSITIONS RELATIONSHIP SEGMENTS
Platform design & optimization Convenience Automated services
• interactive • A few clicks only needed
Logistics • chatbot
• user-friendly Urban Indian consumers
• Safe e-transportation Supplier onboarding Social Media advertising • Gift buyers
• Certification Check Variety • newsletter
• GoGreen Logistics • Organic lifestyle
JIT assembly • Diverse eco-friendly product • email marketing
• Smart Truck • Demand-Based Batching • Conscious Families
line Community Building
Merchandising • Eco-Aware Youth
Suppliers • WhatsApp Community
-AI • Organic Moms Groups
Eco-friendly delivery Groups
• Farmer co-ops & collectives • Urban Working Professionals
• Carbon-free Shipping
• Women artisan networks • Sustainability Officers
• Local Sourcing • Creative Agencies
• Alliance of Bazaar Artisans KEY CHANNELS
• Organic Cotton Farmers RESOURCES Transparency Rural Indian consumers
HR • Meet Your Maker • Farmer Co-Op Members
Affiliates E-commerce website
• Software engineers • Audit Trails • Sustainable Tourists
• Eco-influencer networks • https://www.kakul.market
Platform • Ethical Handicraft Retailers
• Eco-conscious corporates
• Eco-Friendly Data Centers Health and Wellness • Eco-Tourism Operators
• Conscious Consumer Social Commerce
Delivery • Toxin-Free Products • Fair Trade Forum Members
Community • Instagram storefront
• Electric Vehicles Fleet • Offline-First Shoppers
Sourcing @Kakul.eco
Waste Reduction
• Farmer Network Directory • Circular Systems

COST REVENUE
STRUCTURE STREAM
CAPEX a) per annum b) to breakeven a) per annum b) to breakeven
Building platform Mark-up Model

OPEX Sales Commission Model

Advertising
HR salary Agency Revenue Model
Transport Costs
Taxes Subscription Revenue Model
New Product Line Packaging Success metrics
Darjeeling Tea / Oil solutions
Bamboo Fan Biodegradable packaging materials: Overall::
Coconut shell spoon - Bagasse - Fiber leftover from sugar cane processing - Increased revenue and profitability
Bamboo spoon - Bamboo - Fast growing and renewable material - Expanded product line and market share
Bamboo hat - Mushroom based packaging - Made from mycelium - Enhanced brand reputation and customer
Bamboo hanging Chair - Bioplastics from plant starches like corn or sugarcane loyalty
Bamboo Basket - Increase in brand awarness
Bamboo toothbrush Reusable/returnable containers: - Increase in no. of orders
Sea shell keychains - Glass bottles/jars with deposit return programs
Natural fiber carpet or rugs - Reusable crates made of durable plastic or wood Social:
Coconut fiber doormats - Durable containers that customers can mail back - Stronger fair labor practices
Biodegradable plant-based after use - Community engagement and positive impact
cutlery
Beeswax candles Optimized packaging dimensions: Environment:
Reusable beeswax food bags - Sizing packaging as small as possible reduces wasted - Reduced carbon footprint
Recycled tire sandals materials - Reduced packaging waste
Organic and fair trade coffee - On-demand custom sized boxes and mailer - Increased use of sustainable materials
Eco-friendly pet toys made from envelopes
recycled materials

Customer Evolution
GTM strategy
Barriers to adoption Adoption in early Retention Attitude Shift New category
Unique Value Proposition stages intro.
• Unaware of such product • Customer is made aware • Value proposition of
• Benefit realization in • Recent climate
• Women entrepreneurship: : normal retail product
or the company • Sustainability and eco- terms of: change news and
Highlighting the concept of female to KAKUL product
entrepreneurship which makes • Low Income friendly priority ⚬ Sustainability conference
their high selling value • Use Case not Known • Ease of purchase line
⚬ Make in India • Cleaner environment
• Eco-friendly: Products are pitched • Availability • Understanding the use • Possible increase in
⚬ Long lasting • Higher sense of
in the form of eco friendly market adoption with
• Accessability case by educating ⚬ Fair trade purpose
• Fair Trade Practice: As a increase in
distribution channel which enables audience. ⚬ Customer Luxuary
awareness
the lives of the manufacturers and
gives fair trade • Lower price to
• Synergy of Sustainability: increase category
Considering the future of human, Campagin • Social Media Campaigns with hashtag such as • Embedded Marketing in Amazon Prime
adoption
providing sustainability factors • Promote use of KAKUL eco friendly product #KakulEco, #KakulEcoSquad to promote brand or OTT platform to promote the use of
in major 3-5 star restaurants and hotel reach among similar audience via conducting ecofriendly product in shows with
facilities. Events and Giveaway coupons millennial and Gen Z.