What is Re-Eco?
An oral hygiene company that provides environmentally
conscious products featuring the latest American Dental
Association approved design elements.
Our earth-friendly toothbrush features:
An interchangeable toothbrush head
100% post consumer recycled materials
Modern design elements
Our Team CEO
Christopher Cote
Director of EngineeringNelia Sousa
Director of Sales & MarketingJessica Pattie
Director of OperationsAshley Evans
Director of FinanceJunbing Ye
Director of HR & AdministrationYilin Jin
What Do We Stand For?
Our Mission:Our mission is to provide ecologically friendly oral hygiene products while remaining on the cutting edge of dental technology
Our Values:• Providing Quality Recycled Oral Hygiene Products• Satisfying Our Customers• Fostering Employee Growth
Industry Analysis10,000,000 toothbrushes were sold in 19984.4 Billion people in the world use
toothbrushes 2.3 Billion people replace their toothbrush
every year Guests today are well informed about
recycling, eco-friendly materials, conservation, and disposal.
Source: Neustel Law Offices, 2011
Direct Competition
Preserve SourceThe Environmental Toothbrush
Competitive Analysis Grid for Re-eco
Direct Competition
RE-ecoRadius Source Preserve
The Environmental Toothbrush
Product features (replaceable head) X X
Product attractiveness (appearance) X X Impact on the environment X X X X
Social responsibility X XBrand name recognition X Marketing avenues X X X X
Access to suppliers X
Access to distribution X X X X
Design attractiveness (effectiveness) X Price X X Effectiveness X
Indirect CompetitionMainstream oral care companies:
Colgate, Oral-B, Arm & Hammer, Reach
Competitive Analysis Grid for Re-ecoIndirect Competition
Colgate Sonic Power
Oral - B Pulsar
Pro Health
Arm and Hammer
Spin Brush
Colgate 360
Oral - B Cross Action
Spin Brush
Reach Total Care
Reach By
DesignProduct features (replaceable head) X X X X Product attractiveness (appearance) XImpact on the environment Social responsibility Brand name recognition X X X X X X X XMarketing avenues X X X X X X X XAccess to suppliers X X X X X X X XAccess to distribution X X X X X X X XDesign attractiveness X X X X X X X X
Price Effectiveness X X X X X X X X
Re-Eco’s Competitive Advantage
Environmental impactProvide consumer with an avenue to reduce impact of the environment
Cost efficientReplaceable heads allow Re-eco to offer their product at a value to the consumer
Effective bristle designVisually appealing design
Glass handle design will be adaptable to the consumer’s bathroom décor
Survey Results83% people typically purchase a manual toothbrush67% people accept paying between $5-$8 for their toothbrush90% people expressed interest in an eco-friendly toothbrush70% people collect their information from advertisements
Operations PlanApril, 2012:Toothbrush design Sample of target market/marketingHire production workersMay, 2012:Website design Warehouse move-in/begin to manufacture June, 2012:Whole Foods contract signedShipping to Whole Foods begins; sales begin to generateJuly, 2014:Hire management July, 2015:Expand to Target
Distribution Channels
Wholesale through Whole Foods - Products will be available in 58
Whole Foods stores
Direct sale through company website - A secure website
Place: Cambridge, Massachusetts
Product & Price Product:The brush is made of a lightweight glass base, with an interchangeable head; both pieces made from 100% post-consumer recycled glass and plastics
Retail Price: $7.75 for the first toothbrush (head already in place)$5.75 for 2-pack replacement heads
Wholesale Price (Whole Foods):$6.20 for the toothbrush$4.60 for the 2-pack of toothbrush heads
Promotion
Start-up Funds$240,000 (Owner’s investment of $180,000; commercial term loan of 60,000)
Equipment: $124,000 Vehicle: $25,000 Pre-pay expenses: $25,000 Deposit of plant rental: $5,800 Inventory: $31,665 Working Capital (cash): $28,535
Estimated Price & Quantity
Year Product
Wholesale Direct SaleProjecte
d Revenue
Toothbrush
Brush heads (2-pack)
Toothbrush
Brush heads (2-
pack)
Price $6.20 $4.60 $7.75 $5.75 Year
1Quantit
y 42,000 58,000 12,000 20,000 $735,20
0Year
2Quantit
y 45,360 62,640 12,960 21,600 $794,01
6
Year 3
Quantity 49,896 68,904 14,256 23,760
$873,417
Income StatementYear 1 Year 2 Year 3
Revenue $735,200 $794,016 $873,418
Net Profit $30,584 $58,113 $64,493
Profit Margin
4.16% 7.32% 7.38%
Total Cost of production (50% of revenue)Include cost of material, manufacturing labor.
Marginal CostTo produce a toothbrush is around $3.80A 2-pack brush heads is around $2.20
Total Expenses (42-45% of revenue)Payroll 13%, Rent 10%, Advertising & Marketing 5% , Utilities 4%,
R&D 3%
Balance SheetAssets Steady increase in current asset Account receivables and Inventory increased accordingly. Fixed assets remain the same, depreciation was
calculated using straight-line 3 yearsLiabilities Loans of $60,000 at the beginning, it reduced every year
as we make repayments Account payable increased Shareholders’ Equity Stable & steadily increasingRatio Analysis Total Assets to Total Liability ratio: 3.66 in Yr1 4.75 in
Yr3 Total revenue to Fixed Assets ratio: 4.9 in Yr1 5.86 in Yr3
Cash Flow Majority of cash are generated from operating
activity. Investment activity stays the same as the
beginning. Some cash is paid out for the repayment of loan. Overall, the projected cash flows indicated that the
company could be able to generate cash from its operation.
Ratio Analysis Operating Cash Flow to Total Average Liability ratio:
1.28 in Yr2 1.67 in Yr3
Warehouse Trauma & Equipment Damage
Risk & Contingency
• Design Malfunction• New Competitors• Raw materials shortage/price increase
Risk & Contingency