Industry Analysis:

If all those polythene plastic bags are added up, officials estimate, they total 55
billion a year in Pakistan (Washington post). Now, the government has taken a
drastic first step toward eliminating this public eyesore and environmental
hazard. The federal government along provincial government have imposed ban on
plastic bags allover Pakistan, especially in major cities. Thus, a huge opportunity
for a substitute has cropped up.
However, such substitutes have to provide minimum features, which are provided
by plastic bags. For example, the substitute has to be strong enough to bear weight
of grocery, durable enough to be used multiple times, cheap enough to be afforded
by consumers.
Subsequently, the trend of using cotton bags has increased as their production has
seen a rise. Also, the fact that they are more easily available in the market now,
relatively speaking. Pakistan is home to one of the biggest textile industries in the
world and is a big producer of cotton bags.
Considering above mentioned conditions, sapphire introducing cloth bag as
substitute of plastic bag as it carries weight, stays long and cost a little.
One of the reasons for this huge demand-supply gap is lack of any big player in
manufacturing of cloth bags. The cheap plastic bag substitute was a fundamental
reason because of which a large player couldn’t sustain in this business. Thus,
cloth bag manufacturing was meant only for tiny fragmented micro-enterprises.
However, due to ban on plastic bag usage, Sapphire cloth bag have great potential
to capture great market share.
Market Place Analysis:
Following are the findings which we got after a Personal interaction and
observation with the Retail owners and their staff with regards to use of plastic
bags. It covered supermarkets, traditional stores, brand store, provision stores, and
Pharmacy’s and takeaway retail outlets etc. We surveyed 10 retailers.
The study showed that approximately more than 1000 customers cater to these
outlets every month, which provide bags for its customers who come for shopping,
while a small minority does not offer the same because of the reason like “no
demand” or “less demand”. Most of these outlets provided plastic bags for its
customers because of its easy availability and high demand.
When asked “Would you be willing to replace the plastic bags with eco-friendly
and customized paper bags?” almost all the outlets responded positively by saying
“Yes”. But only 60% of the total believed in providing their customers with
reusable cloth bags at a price ranging from Rs.
On an average the demand for reusable cloth and paper bag is quite good, and as
far as the customer’s point of view is concerned, he will always look for something
which is eco-friendly. So with an increased use of cloth and paper bags (which can
be reused) over a period of time can play a vital role in the right benefit of the
environment and cater to the needs of our customers. We get an added advantage
of customizing in designing and adding of the company name which ads as a part
of their advertisements.
Customer Analysis:
We would offer our product to consumer who are looking for substitute product of
plastic bag. Moreover, green consumer will be our main target. According
to International Institute for Sustainable Development green consumers:

 are sincere in their intentions, with a growing commitment to greener

lifestyles;

 almost always judge their environmental practices as inadequate;

 do not expect companies to be perfect in order to be considered 'green'.

Rather, they look for companies that are taking substantive steps and have
made a commitment to improve.

Competitor Analysis:
Following are our competitors:
 Existing Small local suppliers of paper bags and cloth bags artisans
 Existing Plastic Bag manufacturers etc.
 NGOs who do the manufacturing of paper bags.
There is no major established brand in cloth bag industry. The cheap plastic bag
substitute was a fundamental reason because of which a large player couldn’t
sustain in this business. Thus, cloth bag manufacturing was meant only for tiny
fragmented micro-enterprises. However, due to ban on plastic bag usage, Sapphire
cloth bag have great potential to capture great market share.
 SWOT Analysis:
Strength:
 Eco-friendly, re-usable and is can be easily disposed off.
 Customized bag as per requirement of consumer.
 Cloth bag can also be used as promotion tool.
 Better and tough product compared to other small scale suppliers
 Sapphire would be positioned as an eco-friendly brand.

 Weakness:
Sapphire cloth bag will cost more compared to substitute.
 Cloth bag is new experience for Sapphire. Thus, it will face new issues and
hard time to solve it.

Opportunity:
 Plastic bag ban has resulted in an opportunity for a substitute for customers,
which is an eco-friendly product and would hold the weight of items.
 There is also increase in demand for eco-friendly product in Pakistan.
 Green consumer are also willing to pay more for eco-friendly products.
 All foreign and national media have been encouraging green purchase
behavior. Thus, more consumer will be influenced to choose eco-friendly
products.

Threats:
 Potential entrants in the market with the same products.
 Existing small scale producers like small artisans.
 Existing plastic bag producers.
 Introduction of cheap biodegradable plastic bags in Pakistan.
 The government failure to implement plastic bag ban.