Contents-Soy Candle-Scents Available -About Soy Candles-Benefits of Soy Candles-*Production, Price, & Cost-Production, Price, & Cost (explanation: items and cost)-Production, Price, & Cost (selling cost, fixed, and break-even)-*Promotion & Advertising: Our Approach (marketing)-Promotion & Advertising: U.S. & England (marketing)-Shipping-Consumer Information-References

2005

Soy Illuminates A Cleaner and Fresher Way to Illuminate your Life

We do custom orders for colors and scents! Great and safer or parties, weddings, ceremonies, bath, home, dorms, churches- anywhere!

*Become a frequent buyer! For every 6 jars or tin candles you buy, receive 10% off any future purchase!

Scents AvailableWe use Essential oils!

Do not see what you want? Call or visit our website. We are continuously adding new scents .

Aloe Vera Geranium Apricot Grapefruit Chamomile JasmineCinnamon Leaf LavenderClary Lilac Clove Myrrh

Eucalyptus Neroli Frankincense Orange Patchouli Peppermint Primrose

Rose Rose geranium RosemaryRosewood SageSandalwoodSpearmint Tangerine Tea tree Ylang-ylang

About Soy Candles

• Soy wax, a hydrogenated soybean oil that is used as renewable and biodegradable alternative to paraffin wax in candle-making, was investigated for its tendency of producing soot and potentially harmful organic volatiles (e.g. acrolein, formaldehyde and acetaldehyde) during candle burning. While a considerable amount of soot was produced from the combustion of paraffin candles under disturbed condition (simulated air movement), little or none is observed from soy wax candles.

About Soy Candles

-In 2004, the world's farmers produced 223 million tons of soybeans, one ton for every nine tons of grain they produced.

-The soybean was domesticated in central China some 5,000 years ago and made its way to the United States in 1804, when Thomas Jefferson was President. For a century and a half, the soybean was grown mostly as a curiosity crop in home gardens.

-This soy wax innovation is fast-becoming a new national industry. Today, soy candles manufacturers range from numerous entrepreneurs to major manufacturers

- It has been called a miracle crop because soybeans are used for food for people, as animal feed, and in non-food products such as our own line of soy candles!  Today’s U.S. farmers produce about 2 billion bushels a year making the US the largest producer of soybeans in the world!

Soy Wax Information

• Soy wax is very sensitive to temperature and sunlight.

• Storage temperatures should not exceed 80 F or be below 32 F.

• If candle does get hot enough to melt, just move to a cool, dry area and it will set back up. 

• Extreme changes in temperate can cause discoloring of the wax.

The Benefits of Soy Candles

• Cleaner-burning than traditional candles.• No sooty residues.• Lower melting point so they burn cooler. • This allows their long-lasting pleasant

aromas to quickly fill the air.• Soy is nontoxic: safe for humans &

animals.• Stronger scents.

Benefits of Soy Candles

• Soy candles hardly affect allergies.• Soy candles are biodegradable.• Paraffin wax candles contain many of the same

toxins as burning diesel fuel.• Soy candles can provide added value to U.S.

agriculture by using more than 110 million bushels of soybeans.

Production, Price, & Cost

• Variable Costs: Increase directly in proportion to the level of sales.

• Ex: cost of creating, shipping/delivery, materials/supplies, etc.

• Fixed Costs: remain the same regardless of the level of sales.

• Ex.: rent, plant/equipment expenses, business license, etc.

• Break-even price: per unit cost of production.• Break-even revenue: determines amount of

needed so the business neither makes nor loses money.

Production, Price, & CostExplanation: Item & Costs

• Variable costs $ per unit• Soy oil (creation) $0.35• Wicks (creation) $0.15• Wax (creation) $0.25• Jars (packaging) $0.40 • Lids (packaging) $0.15• Tins (packaging) $0.60• Labels (marketing) $0.20• Boxes (shipping) $0.55• Scent $0.20• Total Variable Cost: Wax beads/tarts $1.50, Votive $.170, Jar $2.25,

Tin $2.45

Production, Price, & Cost • Fixed Costs TotalFixed Costs Total• Insurance liability insurance Insurance liability insurance

$1,200$1,200• Advertising Promotion, Web presence, magazine ads Advertising Promotion, Web presence, magazine ads

$4,500$4,500• Utilities Lights, phones, heating/cooling Utilities Lights, phones, heating/cooling

$2,700$2,700• *Buildings Purchased bldng where candle prod. Occ. *Buildings Purchased bldng where candle prod. Occ.

$1,500$1,500• *Equipment Equipment used in production *Equipment Equipment used in production

$2,400$2,400• Interest Paid Interest payment of 1Interest Paid Interest payment of 1stst yr. Operation yr. Operation

$2,200$2,200• Total Fixed Cost $14,500Total Fixed Cost $14,500

*Building: based on purchase price of $15,000 w/ 10 yr. Payback period.*Building: based on purchase price of $15,000 w/ 10 yr. Payback period.

*Equipment: based on purchase price of $9,600 w/ 4 yr. Payback period.*Equipment: based on purchase price of $9,600 w/ 4 yr. Payback period.

*Most soy candles start above $10.00*Most soy candles start above $10.00

Production, Price, & CostProduction, Price, & Cost

• Break-even revenues based around selling pricesBreak-even revenues based around selling prices

(fixed costs divided by projected Selling cost minus the variable (fixed costs divided by projected Selling cost minus the variable cost/unit)cost/unit)

• Projected selling cost:Projected selling cost:

• Wax Beads/Tarts: $3.50 Votive: $2.98 Jar $6.75 Tin 7.50Wax Beads/Tarts: $3.50 Votive: $2.98 Jar $6.75 Tin 7.50

• Variable cost/unit:Variable cost/unit:

• Wax beads/Tarts: $1.55 Votive: $1.70 Jar: $2.25 Tin: $2.45Wax beads/Tarts: $1.55 Votive: $1.70 Jar: $2.25 Tin: $2.45

• Total Fixed Cost Total Fixed Cost

• $14,500 $14,500 $14,500 $14,500$14,500 $14,500 $14,500 $14,500

• Break-even units:Break-even units:

• Wax Beads/Tarts: 7,435 Votive: 11,600 :Jar: 3,222 Tin: 2,959Wax Beads/Tarts: 7,435 Votive: 11,600 :Jar: 3,222 Tin: 2,959

ShippingGreat Britain & Northern Ireland

Weight not over (in lbs.) Not allowed over 66lbs.(not above given weight) Air Mail -1lbs.= $16.00-2lbs.= $20.00-3lbs.=$24.00-5lbs. =$32.00-6lbs.= $35.00-7lbs.= $38.00-8lbs.=$41.00-9lbs.=$44.00-10lbs.= $47.00-11lbs.=$ 50.00-12lbs.=$53.00-13lbs.=$56.00-14lbs.=$59.00-15lbs.=$62.00(United States Postal Service)Economy Mail (Book & Sheet Music) could probably be used sometimes. The max is 4lbs. With rates from $2.65 to $7.80.

Promotion & Advertising: Our Approach

-The scented candles market has seen a lot of cross-category encroachment, as fashion designers, perfume manufacturers, and specialty chain marketers introduce their own lines of candles. For example, upscale retailers.

-Internet marketing:-A well done website: makes a company look like a successful

one, cheaper: cuts middleman and advertising costs.-Can place banner ads on other websites.

Promotion & Advertising: Our Approach

Catalogue:• -Cause word of mouth, cheaper: gets passed around to many • people at work, home, doctor offices.•  • Magazine:• -Reaches potential of thousands of readers. -Wide range of magazines to choose from (fashion, home, craft, etc.).•  • Trade Shows:• -Popular in most industries.• -Wide range of customers (businesses, travelers, locals, etc.).• -Allows sample opportunities.

• Radio & Newspaper:• -Ads may be geared toward holidays & special events. • -Can target a certain area or group (large or small).

Marketing to U.S. Home Base & England

• Direct Supply / Direct Sale• -Selling directly to your customer; retailing, door-to-door, mail order

and ecommerce all directly sell to customers.

• -Direct contact will your customers, easily detect the subtle changes occurring and adapt to the changes; i.e. demand for price changes, overall demand for products.

• -Complete control over product range, how it is sold and at what price. • Direct to retailer• -Saves company a lot of money setting up a variety of retails outlets to covers areas regionally or nationally.

Marketing to U.S. Home Base & England Advantages & Disadvantages

• Wholesaler, merchant or agent supplier

• May loose some company identity.

• Supplier may request product be sold under the merchant/wholesaler brand name.

• Loose contact with end consumer, unable to gauge/identify subtle changes occurring as quickly as if directly supplying them.

• Takes off an enormous amount of pressure of distribution, as this will be done for you.

• Also reduces level of storage space necessary to hold stock. selling to larger organization means more reliable income of capital, more stable business.

Marketing In England

• Use a lot of mail order and TV infomercial selling.• Stable no high political risk, stable currency.• High since of individualism (Our custom orders

will fill this).• Low-context culture. The details any terms of sale,

contracts, etc. are important.• Numbers need to be written out and firm (done

through catalogue and Internet sales).

Consumer Information

• The National Candle Ass. states that the US candle consumer retail sales for 1999 are reported at $2.3 billion, not including candle accessories.  

• The Packaged Facts report claims that the growth of scented candles alone is close to 22 percent per year.  

• Estimates scented candles represent 55 percent of the $2.4 billion total home fragrance market, or $1.3 billion in scented candle sales.  

• Candles are purchased for utilitarian, religious, or other institutional purposes, but the majority of candles, particularly scented candles, are purchased for non-utilitarian home use.  

• 70 percent of households purchase candles.

• 96 percent of all candles purchased are bought by women.

References

Aroma Haven & Rustic Essentials (2001). Wick Pins photo. Retrieved February 23, 2005, from http://www.aromahaven.com/wicks2.html

Angel Scented Candles (No Date). Soy Facts. Retrieved February 24, 2005, from http://www.angelscentedcandles.com/soyfacts.htm

  Ask Yahoo! (2003) . Are soy candles really better than wax candles? Retrieved February 24, 2005, from http://ask.yahoo.com/ask/20030207.html Brown, L. (2004). Soybeans: The New King of the Crop? Retrieved February 16, 2005, from http://www.theglobalist.com/DBWeb/StoryId.aspx?StoryId=4302  Bug Town Candle Company (2004). General Soy Wax Candle Burning Tips. Retrieved February 24, 2005, from

http://www.buggytowncandles.com/burningtips.html

Business Bureau UK (2002) The Marketing Mix-Place. Retrieved February 21, 2005, From http://www.businessbureauuk.co.uk/salesmarketing/marketing_mix_place.htm   Cierra Candles (2005). Dye block, chip, and liquid photo. Retrieved February 19, 2005, from

http://www.cierracandles.com/dyes.aspx

 

References

EcoLightHomepage. Available: http://www.ecolightcandles.com/history.htm

EPA Report (2000). Candle Distribution. Retrieved February 20, 2005, from http://web.ksl.com/dump/news/cc/series/candepa2.htm

Glenny’s Diet Center (2004). Bowl of soy photo. Retrieved February 24, 2005, from http://glennys.blogs.com/dietcenter/health_diet_news/

Keegan, W., J., & Green, M., C. (2003). Global Marketing: Third Edition. New Jersey: Prentice Hall.  Iowa Soybean Promotion Board (2003) See The Light With Soy Candles. Retrieved February 16, 2005, from http://www.iasoybeans.com/ispb/soycandles.html

•

Iowa Soybean Promotion Board (2003). Made From Soybeans. Retrieved February 16, 2005, fro m http://www.soyworld.com/Candles.html

•  

, Inc. Retrieved February 16, 2005, from

 

References Moonrose (2004). Woman making candle photo. Retrieved February 24, 2005, from

http://www.bestofsanjuancapistrano.com/giftstore/candles.html

Soap and Candle Maker (2005) Jars and Lid photos. Retrieved February 19, 2005, from

http://www.soapandcandlemaker.com/static/Catalog/1236.html

USPS Postal Rates (2005). Complete International Rates Chart.Retrieved February 24, 2005, from

http://pe.usps.gov/text/Imm/immicl/immicleg_021.html

University of Missouri-Columbia (2002). Break-even pricing, Revenue, and Units.

Retrieved February 16, 2005, from

http://muextension.missouri.edu/explorepdf/agguides/agecon/G0648.pdf Unit

Webcrawler (2005). Soy candle and flower photos. Retrieved February 19, 2005, from

http://www.webcrawler.com

Webhosting (2001). Internet photo. Retrieved February 24, 2005, from

http://www.web-host.net.nz/kotarecandles.htm

Yahoo! (2005). Soy candle & flower photos. Retrieved February 19, 2005, from http://www.yahoo.com