KOMPOT - Phase 5 - Business Plan

 KOMPOT - Business  Model And Plan

 Business Model

 Business Plan

1. The Market

The factors that are beyond the control of a business entity in which the company is operating.

2. Customer Segment - ICP 

"The study targets people in Greater London who live in high-rise flats with small kitchens and no garden space for compost bins. They need to dispose of kitchen waste and are environmentally conscious professionals who enjoy keeping plants at home."

3. Value Proposition

Unique Selling Value Proposition:

"Because our product is high-capacity, compact in design, and energy efficient, it will help year-round composting of smelly and messy kitchen food waste in urban spaces."

4) Key Resources

a. Stakeholder Analysis

 

✅ Internal: Innovation team, professors, and design engineers collaborate on the KOMPOT design and prototype.
✅ External: Suppliers, investors, and distributors support materials, troubleshooting, and funding.
✅ Interface: Community feedback shapes design; municipal policies determine feasibility.

b. Competitor Analysis

Company	Price	Material	Capacity	Weight & Portable	Energy Consumption	Operational Efficiency
Vitamix Food Cycler Eco-5	£380.96	Plastic	5 Liters	30 lbs, Indoors	120 Volt	Easy to use, 8-Hour Cycle to Compost. Carbon Pallets Required
Lomi 2	£456.43	Plastic	3 Liters	20 lbs, Indoors	110 Volt	Easy to use, 5 to 20 20-hour cycle to Compost. Charcoal and Pods Required
Beyond Green	£332.56	Plastic and metal	4 gallon weekly capacity	5 lbs, Indoors, outdoors	Not mentioned	2 weeks composting cycle, Sawdust pallets required
Hot Bin Mini	£190	Recycled and insulated material APRO	100 Liters	outdoors	Not mentioned	30 to 90-day cycle, Woodchips required
Involly	£419.09	PC, Aluminium Alloy	3.3 Liters	21 lbs indoors	220 - 240V	13-14 hours Cycle, Activated Carbon Refill Required, The output is dry fertiliser, not compost

 5. KOMPOT - SWOT Analysis

• Designed to monitor the competitor landscape and internal company analysis.

6. Key Activities

a. Routes to Market

The products will be sourced from Togo Solutions, and then the products will be distributed to retailers such as Tesco, B&Q. where the products will be displayed and sold. 
Product pitching will secure partners with full overviews, followed by price, service negotiations, and partnership agreements.. 

 Strategies

7. Financial Planning 

1. Cost Structure

a. UK Costing of  a Single Prototype

b. Price Comparison of UK and China-Made 100 Products

Cost Item	China-Sourced (£)	UK-Produced (£)
Inbound Logistics
Production Cost	1,500	6,996
Packaging Cost	300	-
Domestic Transport	-	100
Shipping (Ocean Freight)	400	-
Customs Duties	75	-
Warehousing	50	-
Total Inbound	2,325	7,096
Outbound Logistics
Packaging	-	300
Domestic Shipping	700	700
Storage / Agent Fee	100	-
Total Outbound	800	1,000
Subtotal (pre-VAT)	3,125	8,096
VAT (20%)	615	-
Total Cost	3,690	8,096

The cost analysis showed China-sourced KOMPOT prototypes were cheaper; hence, the company will source from China for the first six months.

c. Cost of Sales and Revenue

Cost of Sales

The expected supplier price range from China is set at approximately £15 per unit.

Cost per unit =

Cost per unit = ​

                =£36.90

Revenues

The manufacturing cost of one KOMPOT bin is £36.90, and the desired profit margin is 59%.

Below is the calculation of the sales price per unit;

“Cost = 41 % of Sales Price

Profit margin = 59% of Sales Price

Sales Price per unit = Cost per unit / (1 – (Profit margin/100))

Sales Price per unit = £36.90 / (1 – ( ))

= £36.90 / 0.41

= £90 excluding VAT”

d. Financial Scenarios

e. Start-up Expenses, Assets, and Net Profit Margin

8. Conclusion

The business aims to launch a simple, efficient compost bin to tackle UK food waste challenges profitably and at scale. Market analysis highlights climate-adaptive consumer behavior and increased summer gardening spending. Competitor bins are costly and require supporting products; hence, KOMPOT offers an energy-efficient, self-contained alternative. Careful pricing analysis and financial planning define sales targets and support a strong seasonal marketing strategy.