financial analysis, details, and timeline

The primary efforts on this project will be in the research and development phase while testing out materials and deciding on an appropriate design with the exact specifications required. For this piece of the initiative, we have estimated $144,000 to be allocated in wages to two employees who will transition into production following the research and development phase. These wages are competitive and fair based on the work to be performed, at $25/hour, well over the local living wage here in Regina (Numbeo, 2024).

The other major financial piece of this initiative is in materials and supplies. To acquire everything needed for research and development, and then into production, we have allocated $86,000. This allocation includes purchases for multiple 3D printers at $2,000- $7,000 each (3D Printers Depot, n.d.), biodegradable bioplastic filaments which are typically $50-$150 per spool (Bioplastic Shop, n.d.), and any additional material costs that may arise from the research and development phase.

The final allocation in the cost breakdown for this initiative lies in the marketing campaign. This campaign will begin with a refreshed brand that specifically and directly references our sustainability and bioplastic efforts, with $11,250 allocated for external branding and marketing. The campaign will consist of promoted posts on Instagram at $0.90 per click, leading to an estimated $750 if 10% of our current followers click through (WordStream, 2024). We will also be promoting through 2 established brand ambassadors each assigned 2 contracted posts at $1,250 per post, and an additional long-form video discussion about the research and development process and the specifications of the new product line with the employees who worked on it, with an allocated $3,000 for production costs including wages for external production staff (Get Camera Crew, 2024).

Failure to move into a more sustainable material in manufacturing can cost the company millions in potential future revenue and studies have shown 76% of people in the work force take into account the diversity and sustainability of an organization when deciding if they want to work there (Steinbrink, 2023). Additionally, leaning into sustainable practices not only fortifies us in the long-term future as we will be ahead of the curve when it comes to climate change, incoming governmental regulations that affect the production of plastic, and this change will better align us with customer values (Steinbrink, 2023). With Canada’s recent announcement prohibiting single-use plastics manufacturing by the end of 2025, there is potential that it could expand into other plastic products not currently covered by the Canadian Environmental Protection Act, 1999 and the Single-use Plastics Prohibition Regulations act (Canada, 2023).