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Student Number: 483563 Business Proposal for an Eco-product

Section A: The business context


The nappy industry is continuously thriving due to the nature and the demand of the product. There is a lot of competition in the nappy industry with larger brands trying to state their dominance. There are various different types; standard disposable nappies, environmentally friendly disposables and cloth based diapers. There are three main competitive manufacturers and suppliers of disposable nappies in the UK: Procter & Gamble; Kimberly Clark; and SCA Hygiene. Together with other smaller brands of disposable nappies, the total number of disposables sold annually in the UK is approximately 2.47 billion. Together, Procter & Gamble and Kimberly Clark account for approximately 75 per cent of the market and SCA account for most of the rest, (Enviornmental Agency, 2005). Disposable nappy products are almost identical in the marketplace; raw materials and design. According to the Environmental Agency, The main disposable nappies in the UK are very similar. They are all mainly consists of an absorbent pad sandwiched between two sheets of nonwoven fabric, surrounded by plastic; materials which take a significant amount of energy to produce and a long time to biodegrade. Currently, disposable diapers are not very environmentally friendly or sustainable. Sustainability can be defined as, meetings the needs of the present generation without compromising the ability of future generations to meet their own needs, (Moldan et al, 2012). However, the major companies are trying to develop new designs which incorporate new materials which help aid biodegrading. Materials such as Moltex which uses decreased the uses of chemicals in the production. The largest problem with disposable diapers is the fact that the materials take a long time to biodegrade, filling up landfills with vast amounts of used nappies. Disposable nappies are an environmental disaster; 2.5 billion disposable nappies are sold each year in the United Kingdom, making up 6% -400 000 tonnes-of landfill in the UK, (Anthony-Pillai, 2007). No one knows how long it takes for a disposable diaper to decompose, but it is estimated to be about 250-500 years which has a devastating effect on landfill capacity. Furthermore, the production of nappies inflicts damages to the environment itself. The average 2006 disposable nappy would result in a global warming impact of approximately 550kg CO2 equivalent if used over the 2.5 years a child is typically in nappies (Environmental Resource Management, 2008). In the UK, there are a few different manufactures of re-useable nappies, their products mainly comprised of the traditional cotton design. Also in the UK, there are only a limited number of laundry services which will actually wash these nappies, provided that they are dropped off by the consumers.

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Student Number: 483563

Section B: The product


The developed product incorporates re-useable nappies and a more efficient product and cleaning service. The product/business proposal is to design a re-useable nappy which can be re-washed and reused multiple times, incorporating an environmentally friendly laundry service. The company would be called EnviroNappy. The designing of this product is intends to relate to Design Councils visions of producing a design which will be beneficial to all stakeholders, making the product more environmentally friendly, (Design Council, 2011). In relation to the Design Councils, an environmental management system (EMS) would be considered in the operations. It would help identify and manage significant environmental impacts, save money by increasing efficiency, acknowledges environmental legislation and provides various benchmarks for improvements. Traditionally, nappies were comprised of using basic cloth material; being used and re-washed but demand of such products have diminished. The decrease in demand can be said to be caused by an increase in more convenient products such as the disposable nappy and the issue of energy consumption to clean traditional material nappies. The re-useable diaper would incorporate more environmentally friendly and bio-degradable materials such as organic cotton. Organic cotton is chosen over traditionally farmed cotton due to its superior environmental advantages. For example, ordinary cotton is treated with a variety of chemicals as it goes through the processes from plant to fabric, and residues remain even after washing. The cultivation of traditional cotton uses synthetic chemical pesticides and fertilizers that may be highly toxic and cause environmental problems (Bond, 1999). As a result, the chemicals can cause decline in soil fertility and erosion; aerial spraying affects other crops; high water use and water supplies polluted. However, organic matter uses no chemicals yet fertilizes soils and renews soil productivity; less water used. In addition, bamboo would be used as a liner material to the diaper to help absorbing up fluids. Bamboo fabric has been growing in popularity because it has many unique properties and is more sustainable than most textile fibers. Bamboo fabric is light and strong, has good absorbent properties, and is to some extent antibacterial, (Kawahito, 2007). Bamboo fabric is very soft and can be worn directly next to the skin, resulting in less irritation to the babies skin. Disposable nappies contribute to waste; cloth nappies consume water and energy. The product would also be followed with a laundry service, whereby customers can get their soiled nappies picked up and washed to reduce the amount of wasted water and energy. Employees would drive energy efficient vehicles running on biofuels, reducing the transportations impact on the environment (Kinver, 2006). According to the Department of Transport, biofuels to reduce emissions by about 70% compared to fossil fuel equivalents. An Environment Agency (EA) report suggested that 'there was no significant difference between the environmental impacts of disposable and re-useable (Environment Agency, 2005). Studies have shown that the impacts for re-usable nappies are highly subject to the way they are laundered. Washing the nappies in fuller loads or line-drying them outdoors all the time was found to reduce this figure by 16%. 2|Page

Student Number: 483563 Combining two of the beneficial scenarios -washing nappies in a fuller load and outdoor line dryingwould lower the global warming impact by 40 per cent from the baseline scenario, or some 200kg CO2 equivalent over the two and a half years,(Environmental Resource Management, 2008). Figure 1 shows the amount of energy used in the life-cycle of disposable, commercial and home laundered. The figure shows that there is a difference between disposable compared and commercially laundered. Developing the commercial laundry service provided to customer would help reduce waste energy, making a smaller environmental impact. This would entitle using larger industrial washers which would be used to its full capacity, as well as using natural drying methods, instead of the energy intensive dryers.

Figure 1 Comparison of net energy requirements of Single Use, Commercial and Home laundered diapers. (Le Van, 2007).

When developing this product and service, the packaging of the nappies needs to also be considered. Plastic is known to have the lowest position regarding the ecological compatibility. The reason for such relationship to the polymer materials was their resistance to the natural degradation, long persistence in the environment and long period of permanent alterations of natural relationship in the environment (Vujkovic et al, 2003). However, some plastics have been developed further after years of researchwhich enables it to break down rapidly once reaching landfills. These types of plastic materials known as Biopol- can be synthesized by number of species of microorganisms, serving them as a intercellular carbon and energy source, and that these polymers are biodegradable, (Khan et al, 2012). The product would also use paperboards which dates back to the 17th century with accelerated usage in the later part of the 19th century (Marsh et al., 2007) Paperboard is thicker than paper and is commonly used to make boxes which would be suitable storage for nappies, (Soroka 1999). The paperboard packaging is ideal because it is considered as the most ecologically compatible, such packaging does not alter the environmental equilibrium substantially. 3|Page

Student Number: 483563

Section C: A description of your method/rationale and approach:


The rationale towards designing a new product was that traditional disposable nappies were causing large impact on the environment, contributing to a waste in energy and landfill capacity. With this in mind, the new product had to be environmentally conscious as more recently design has been looking at its role in the environmental impact of materials and processes. The approach was to try to redesign the product with sustainability in mind. The new nappies and laundry service will recognise its responsibilities and the effects of design decision throughout the lifecycle of manufactured products. (Kusz, 2005). This means that the development of both good and service will take the entire lifecycle into consideration, from manufacture to decomposition. The create techniques used was to try to innovate and improve the existing products, forming a new developed product and service. Considerations needed to be made on the manufacturing and sourcing of raw materials. In operation, there will be a lot of focus placed on Corporate Social Responsibility (CSR). CSR can be said to be the concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis, (Brammer et al, 2012). The raw materials have to be sourced and harvested sustainably. For example, the bamboo material for the nappy has been chosen due to its fast growing nature. Bamboo grows naturally and does not require the use of pesticides, herbicides, or irrigation, other than the natural rainfall that it receives. Also, the bamboo does not require planting as the stalks can be cut off above ground and they will continue to grow, ready for harvest again in just a few short years compared to a tree which takes 70 years. In addition bamboo has a vast root system network that constantly sprouts new shoots. Unlike many other resources, bamboo does not require gas guzzling tractors, pesticides, and herbicides to harvest and bring to production. When harvested, no chemicals are added, only natural enzymes are used to break down the bamboo into a mushy substance that is then combed out and spun into yarn. The service part of the business the laundry service- would also be carbon neutral. The vehicles used to pick up and drop off the dirty and clean diapers would run on biofuels, which have shown to be more environmentally friendly and lower carbon emissions. The drying of the products would be done naturally as it is proven that using electronic dryers require considerable amounts of energy. Sterilized and clean nappies would be hung on lines and rely on sunlight and wind for drying. Products are services would also have to conform to various ISO standards and Environmental policies, which establish a baseline for environmentally friendly operations. In addition, an Environmental Impact Assessment would be completed on all possible decisions which the company makes. For example, an impact assessment would be conducted on the location of factories to limit the amount of damage and risk; environmentally and socially.

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Student Number: 483563

Section D: The eco- marketing plan for your product


Eco-marketing can be defined as, all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment,( Grundey, 2009). The concept calls upon marketers to balance three considerations in setting their marketing policies, namely, company profits, consumers satisfaction, and public interest (Kotler, 2001, p.26). Environmentally friendly products have markets as their driver. The demand for these products is derived from the increasing environmental awareness of consumers, constituting of 10-20% of all consumers in Western societies and have the willingness to pay a higher price. However, the product and service would be cheaper in comparison to disposable products on the market. Consumers would only have to pay on a monthly basis, making the product cheaper in the longer run. One standing payment per month would equal out as cheaper than repetitive individual purchases of new disposable products. This also helps to try to convince new markets that new product and service will be more convenient. This is because customers do not have to purchase disposable nappies at hypermarkets on a regular basis, as the product is delivered to their home. The product pricing strategy would be based penetration pricing, where the introduction to market consists of pricing low and promoting heavily in order to gain a large market share and associated economies of scale as quickly. Eco-labeling is also considered, the use of eco-labeling schemes appears to be the most logical approach to encourage consumer confidence and activity in selecting products with the minimum environmental impact. Eco-labeling is a designation awarded to products that are judged to be environmentally preferred compared with alternative products. Germany, Canada, Japan, Nordic countries, and the European Community have either government-funded eco-labeling programs or will have them in the near future. (LeVan, 2007) The market segment focused would be based on parents with young babies and/or children. Emphasis would be put on the fact that the products are more beneficial to the parents and children; having no added chemicals, being more convenient and more environmentally friendly. As consciousness about product safety and reliability rose, the making of safer and more reliable products became fist a marketing advantages and then an expectation. I will try and develop this same theory, now incorporating the environmental factor as a marketing advantage. (Kusz, 2005).

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Student Number: 483563

Section E: A strategic view of your product and its future in the industry/ marketplace
My product and service will be successful due to the nature of the product and the market. The UK sales figure for disposable nappies in 2001-2002 provided an average daily use figure of 4.5 nappies a day (Environment Agency, 2004). This statistic shows that demand for the product is high, consumption at a high rate. In addition, local councils in the UK are desperately trying to reduce their landfill tax bills and are setting up schemes and money back offers to encourage parents to use washable cloth nappies. Government schemes would help raise awareness and would increase sales in re-useable nappies. As the awareness of the environment increases, a larger amount of consumers are going to be willing to move towards a greener product. This switch will be helped along with the cheaper price of the reuseable nappies. Current disposable brand diapers cost near $0.20 per diaper with an estimated 3 years total of $1,752.00. In comparison, re-usable diapers cost much less, roughly $300-$1000 for those three years. As a result, the cheaper prices and the higher convenience would enable the business to create a larger market share in the nappy market, potentially conquering the best of the disposable market. Currently, disposable nappies account for some 95 per cent of the market and around 2.5 billion disposable nappies are sold in the UK each year, (Environmental Agency, 2005). This suggests that these re-useable diapers have a relatively small market share. However, sales and market share could rise with the increase in awareness, marketing and product pricing. It is also hopefully that the product and service will be successful by the expansion in the number of suppliers in the UK over the last few years, which may suggest the market share is growing. Furthermore, the Environmental Agency shows evidence that commercial nappy services that involve a centralised laundry are gaining in popularity and coverage in the UK. The waste generated by the re-useable nappies would be considerably less compared to the disposable nappies. Figure 1 shows the amount of energy disposable and laundered nappies use during its lifetime. The diagram shows that commercially laundered operations are the most affective in comparison to the other options, using roughly 1MJ less than home laundered or disposable.
Table 1: Energy Impact per infant per lifetime (Landbank Consultancy, 1991).

Re-useable Energy (MJ) Waste Water Raw Materials (KG) 2532 12.4 25

Disposable 8900 28 208 240

Impact Difference 3.5x 2.3x 8.3x 60x

Domestic Solid Waste 4 (KG) 6|Page

Student Number: 483563 Table 1 shows the comparison in waste between the two types of nappies over the period of its lifetime. The table suggests that re-useable nappies are more environmentally friendly. The re-useable nappies use less energy and 2.3 times less amount of water, mainly down to the manufacturing process of both the nappies. For reusable nappies, the baseline scenario based on average washer and drier use produced a global warming impact of approximately 570kg CO2 equivalent. However, according to the Environmental Resource Management, using a more environmentally friendly laundering service full capacity and natural drying- could reduce the amount of waste water and energy- as much as 16% and reducing 200KG of CO2 out of the atmosphere. Also, the raw materials used in the production of re-useable nappies are 8.3 times more than disposable. This means that the production of disposables require more than 8 times more material which creates a problem when referring to sustainability. Lastly, the domestic solid waste is the amount of waste which reaches the landfills. It shows that the reuseable nappies have considerably less amount of weight, compared to the disposable; having 60 times more weight which reaches landfills. Overall, I believe that the re-useable nappies and the laundry service which accompanies the product will be successful.

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Student Number: 483563 Bilbiography Anthony-Pillai, R. (2007). Whats potty about early toilet training? The Journal of Business Management, 334(10), 1166. Bond, A.B. (1999). A Guide to Cotton, Care to make a difference. Accessed April 10, 2012 from http://www.care2.com. Brammer, S., Jackson, G., Matten, D. (2012). Corporate Social Responsibility and institutional theory: new perspectives on private governance. Socio-Economic Review, 10, 3-28. Design Council. (2011). Broader, Further, Closer and Leaner. Accessed April 1, 2012 from www.designcouncil.org.uk. Environment Agency. (2004). Time to change? An Environment Agency study of parental habits in the use of disposable and reusable nappies. Accessed April 8, 2012 from www.environment-agency.gov.uk. Environment Agency. (2005). Life Cycle Assessment of Disposable and Reusable Nappies in the UK. Accessed April 8, 2012 from www.environment-agency.gov.uk. Environmental Resource Management, ERM. (2008). Conclusions, An Updated Life Cycle Study -The Use of Disposable and Reusable Nappies in the UK. Accessed April 9, 2012 from publications.-environment-agency.-gov.-uk. Grundey, D. (2009). Eco-Marketing and Eco-Labelling: Does It Ensure Customer Loyalty for Eco-Products in Lithuania? Transformations in Business & Economics 8(1), 152179. Kawahito, M. (2007). A comparative study of Bamboo Shijira Fabric and Cotton Shijira Fabric. Seni Gakkaishi, 64(4), 108-112. Khan, M. A., Kopp, C., & Hinrichsen, G. (2001). Effect of Vinyl and Silicon Monomers on Mechanical and Degradation Properties of Bio-Degradable Jute-Biopol Composite. Journal of Reinforced Plastics and Composites, 20(16), 1414-1429. Kinver, M. (2006). The next generation. Biofuels look to the next generation. Accessed April 5, 2012 from www.bbc.co.uk. Kotler, P., Armstrong, G., Saunders, J., & Wong, V. (2001). Principles of Marketing (Third European Edition). Prentice Hall : Harlow, England. Kusz, J.P. (2005). When Good Design Means Responsible Design. Design Management Review, 16(3), 2936. Landbank Consultancy. (1991). A Review of Procter & Gambles Environmental Balances for Disposable and Re-Usable Nappies. Landbank Consultancy: London, England.

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Student Number: 483563 LeVan, S. (2007). Life Cycle Assessment: Measuring Environmental Impact, Life Cycle Environmental Impact Analysis for Forest Products. Accessed April 8, 2012 from http://www.yellowstonebusiness.org. Marsh, K., Bugusu, B. (2007). Role of Food Packaging. Journal of Food Science, 72, 39-55. Moldan, B. Janouskova, S. Hak, T. (2012). How to understand and measure environmental sustainability: Indicators and targets. Ecological Indicators, 17, 1-126. Soroka, W. (1999). Handbook of Food Engineering (2nd Edition). Taylor and Francis Group: USA. Vujkovic, I. & Matavulj, M. (2003). Environmentally Friendly Packaging, Annals of the faculty of engineering Hunedoara. Accessed April 5, 2012 from http://annals.fih.upt.ro.

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