GREENING the

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GREENING the

Metro Gaisano Eco – Bags Greening the Metro

a Concept Paper by

I. Executive Summary About one million plastic bags are used every minute. Each of these bags can take up to 1,000 years to degrade and even after a plastic bag has broken down, it remains toxic. With about 46, 000 pieces of plastic floating in every square mile of ocean, it is the second largest pollutants of our seas next only to cigarette butts. The answer is not switching to paper bags or compostable bags, these also have heavy environmental consequences. The answer is to switch the shoppers' thinking and making the one time use only of paper bags or plastic bags obsolete. How do we do this? By making it the norm for patrons to bring their own reusable bags when shopping so the incredible waste, pollution and destruction caused by the use of plastic bags can be eliminated. Most supermarket chains in the Philippines already offer their shoppers a more environmentally -friendly alternative to using plastic grocery bags. As people become more and more aware of the ill effects and waste that plastic bags produce, there is a growing movement of people veering away from using plastic bags to pack away and transport their groceries. It is time for Metro Gaisano to join this movement by providing eco-bags or re-usable shopping bags to their customers so that they too could be more environmentally responsible shoppers. Metro Gaisano, together with Gifts and Graces, could make the Metro eco-bag a must-have for Metro shoppers. With clever design, merchandising and promotion of these bags, we will be helping change the culture of using wasteful plastic. Having Gifts and Graces Fair Trade Foundation design and produce these eco-bags for Metro Gaisano will not only serve that purpose but have the added value of having the bags produced by marginalized communities. Metro Gaisano will be one of the pioneers in the movement of environmental and economic sustainability. Metro Gaisano and their customers, will not only be helping preserve the environment but will also provide a steady livelihood for Gifts and Graces' poor urban community partners who will be making these bags.

II. Proposed Product Line Concept The Metro Gaisano green bag will be reusable, distinctive and easy enough to throw in the handbag to be taken out when shopping. It will be made of durable and water – proof taffeta in different colors. Functionality The bag can carry up to 8 kilos of weight with a wide handle for easy carrying by hand or on the shoulder. It can be rolled up and squeezed into a small draw string pouch not more than 3”x3” in size for easy storage before and after use. It would also come with a small hook that you can use to attach your different Metro eco-bags together. Design and Tag Line The Metro Gaisano logo will be prominently displayed on the center of the bag along with the tag line: “Greening the Metro”. Greening refers to both the move to be “green” or environmentally friendly and the green colors of Metro Gaisano's logo. The Metro connotes both the Metro Gaisano chain and the city of Metro Manila. Material As opposed to other supermarket chain's eco-bags the Greening the Metro bags will be made of taffeta which already sets it apart from the others which are commonly made of non-woven cloth or canvas material for the following reasons: 1. Taffeta is more pliable and could be easily folded, rolled or crunched up into a smaller, more portable size. 2. Taffeta is very light-weight and the added weight when it is put in a bag is negligible. 3. Taffeta is water-proof. With food items like meat, ice cream or cold juice are placed in a taffeta bag the moisture it leaves can be easily wiped away. 4. Taffeta is durable and can hold up a lot of weight. Color Variations The Greening the Metro bags will come in different colors making it a collectible to shoppers who would want to own the bags in all its vibrant colors. The initial colors would start with Red, Orange, Yellow, Green, Blue and Violet. Not only will Metro Gaisano bags be convenient and environmentally friendly, it will also be a fashionable shopping companion for the Metro Gaisano customers.

Special Lines Limited edition bags can be made available during special seasons to rekindle the shoppers' interests and increase the revenue from the bags. Below is the suggested schedule of the special edition Greening the Metro Bags and their corresponding design themes October

Halloween Metro Bags: black and orange bags decorated with spooky characters and pumpkins

December

Christmas Metro Bags: green and red plaid with yuletide decorations like hollies, Christmas trees and stars

February

Love Metro Bags: in red and pink with hearts, flowers and cupids

June

School Metro Bags: yellow and blue for back to school school related decorations

Distribution Strategy Retail The Greening the Metro Bags can be displayed by the check out counters and offered by the cashiers as they ring up the shopper's purchases. In this way, people can be faced with the choice of using plastic bags or the reusable eco-friendly bags. Consumers always want to make a good purchase decision, and having these environmentally friendly merchandise on hand at the point of purchase when they need to use it will be an excellent and effective merchandising move. Metro would also gain the reputation of being responsible retailers who encourage the use of reusable bags instead of the wasteful plastic bags. Promotional Prizes Greening the Metro Bags can be offered up to loyal Metro customers who have gained 150 points on their Metro Rewards Club card. This will increase the membership of the Metro Club and also encourage repeat purchase from Metro to attain the number of points required to avail of the free bag. To encourage, not only the purchase but also the use of these Greening the Metro bags, Metro can also offer an extra 3 points towards shoppers' Metro Rewards Club card whenever they refuse the use of plastic and use their Greening the Metro bags instead.

III. Target Market The Greening the Metro Bags will be amenable to all of Metro Gaisano's Target Market. Market! Market!'s consumers are a mix of the high-end clientele in the neighboring villages of Makati City, the diplomatic and expat residents of Bonifacio Global City and the middle income shoppers in surrounding residents of Taguig and Makati. Metro Gaisano's customers are discerning and frequent shoppers who like the innovative concept of a mall and outdoor wet market rolled into one to expand the shopping experience. As such, they are also open to new ideas and like better alternatives which would make them the ideal market for a line of environmentally friendly bags. The higher-end clientele and the middle income shoppers are all aware of the increasing need to be more proactive in being environmentally responsible. They are likely to forget this ideal unless confronted by the right alternative which explains the suggestion of putting the Greening the Metro bags at the point of purchase. They are also amenable to repeat purchases as once they are happy with a purchase they are likely to duplicate this for variety. They could buy all the colors available to complete their collection or buy multiples of their favorite colors. Other stakeholders in this operation would include the producers of these Greening the Metro Bags who are members of livelihood programs in poor urban communities or other NGOs. These producers can be given a consistent and dignified source of income with the help of Metro Gaisano.

IV. Alignment with Strategic Result Areas Below are some of the corporate objectives that The Greening the Metro bags will serve Metro Gaisano chain. Corporate Objectives

Alignment with Greening the Metro Bags

Customer Satisfaction

Metro customers will be happy to be given environmentally- friendly alternatives to using plastic bags. During Taguig's no plastic days on the 15 th and the 30th of each month, they will have something in which to put their grocery items.

Community

Metro Gaisano will be serving the community by providing a steady income to the partner marginalized communities of Gifts and Graces and contributing in alleviation of poverty and sustainable development

Business Development

As more and more shoppers carry the Greening the Metro bags, Metro Gaisano's brand identity will strengthen and their market positioning will be at par with the bigger supermarket chains

Financial Bottom Line

Greening the Metro bags will contribute to the retail and promotional profit of Metro Gaisano

Environment

The environmental impact of the Metro Green Bag will be immediate and long – term. As people increase their use of their Metro Green Bags their long term attitude towards using one-time use only bag will change.

V. Market Issues and Trends Below are two articles which best explains the increasing movement to eliminate the use of plastic bags in the Philippines Malls to charge fee for plastic bags once a week Plastic bags in nine major shopping malls and supermarkets all over the country will no longer be free every Wednesday starting next week. This was after representatives from these establishments entered into an agreement with the Department of Environment and Natural Resources (DENR) to promote the use of “reusable bags." Among the malls and supermarkets who signed the memorandum of understanding were: Ayala Malls Ever Malls Hi-Top Supermarket Isetann Malls Makro Robinson’s Supermart Savemore SM Hypermart SM Supermarkets Under the memorandum, the nine stores agreed to charge a fee for plastic bags on Wednesdays to encourage buyers to use reusable bags. The supermarkets and malls also agreed to observed “Reusable Bag Day" every Wednesday and to give incentives to shoppers who use reusable bags instead of the usual plastic bags. The signing of the memorandum of understanding was part of the DENR’s efforts to address the country’s solid waste management problem. “Partnership is key. The DENR cannot solve the Philippines’ solid waste management problem alone. We believe, and we know, that just as each of us is a contributor, each of us is also a solution to the problem," DENR Secretary Ramon Paje said in a speech during the launch of the department’s “Reusable Bags Campaign" on Thursday. According to DENR data, more than 80 percent of the trash retrieved from the country’s shorelines are made of non-biodegradable materials such as plastic and rubber. About half of plastic items thrown in bodies of water around the country were plastic bags. Aside from the malls and supermarkets, the Earth Day Philippines Network, the National Solid Waste Management Commission, the Philippine Amalgamated Supermarkets Association (PAGASA), and the Philippine Retailers Association (PRA) were also signatories to the memorandum of understanding. Even before the agreement, SM Supermarket has been charging its customers in 15 of its branches with a fee for plastic bags on Wednesdays to encourage buyers to bring their own recyclable bags. —Andreo Calonzo/KBK,GMANews.TV

*http://www.gmanews.tv/story/201791/malls-to-charge-fee-for-plastic-bags-once-a-week

Resusable bags gain popularity among shoppers by Rhodina Villanueva MANILA, Philippines – More people are now using eco-bags instead of plastic when going to the supermarket, the government said. Environment Secretary Ramon Paje said a million people now bring with them reusable bags when shopping or doing the grocery. “That would mean not using some six million plastic bags in a week,” he said, urging people to adopt the habit of bringing their own bags to the supermarket. Plastic was a major contributor to loss of lives and destruction of property during the onslaught of tropical storm “Ondoy” last year, he added. Paje said some 300,176 plastic bags have been fished out of estuaries and rivers clogged with 756,986 kilograms of garbage/debris. The government is closely coordinating with the plastics industry to help them remove garbage in rivers and estuaries. “They’ve already pledged to support us in this endeavor that will also promote recycling of the plastic garbage,” he added. The Department of Environment and Natural Resources has launched the “Reusable Bag Campaign” to discourage the use of disposable plastic bags and promote reusable bags in groceries. The campaign is being undertaken in cooperation with the Earth Day Network Philippines Inc., the National Solid Waste Management Commission, the Philippine Amalgamated Supermarkets Association and the Philippine Retailers Association. Former environment secretary Elisea Gozun, Earth Day Network president, said the campaign will focus on reusable bags rather than an “anti-plastic” message. “This is important because we do not want the consumers to become defensive,” she said. “Instead, we want them to become pro-active in becoming responsible citizens of the Earth.” Paje said the agreement calls for a concerted effort in the shift of public consciousness from plastic bags to reusable bags to emphasize the environmental hazard posed by improper disposal of plastic bags. The private sector will promote reusable bags by charging a fee for plastic bags during Wednesdays, give incentives to clients using reusable bags and promote the campaign through posters put up in conspicuous places in supermarkets, he added. *http://www.philstar.com/ArticlePrinterFriendly.aspx?articleId=615398&publicationSubCategoryId=

VI.

Project Timeline and Milestones

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Proposal and Pitching to Metro Gaisano Contract Signing Product Development Production Product Launch Product available in market Special Product Lines

VII.

Pricing

The success of the Greening the Metro Bags will mean that a steady supply will need to be ordered each month. As it grows in popularity, people will expect Greening the Metro Bags to be available in all Metro Supermarket outlets nationwide. With this in mind, the eco bag was priced low for sustainable repeat ordering. Below is the quotation for bulk orders with a 4,000 piece minimum. Item Tafeta Eco Bag

Minimum Quantity

Unit Price

Total

4000

40

P160,000.00

6000

35

P210,000.00

An SRP of P50.00 each is affordable for the shopper. With a 6,000 piece order P90,000.00 will be profited. But more than the financial profits, the long-lasting positive impact on our environment and the continued income of poor producers will be the reward. Your support will go a long way in helping our producer partners earn income and become empowered through their livelihood. Should you find this proposal satisfactory, kindly get in touch with us through our email at [email protected] or call us at 7592525. We are looking forward to partnering with you and helping you become a socially and environmentally responsible company. Thank you very much. Sincerely Yours,

Ms. Greg M. Perez Executive Director