Sarah is an aspiring entrepreneur looking to create a new business. So far, she has written the following business idea in her business plan.

Zero Hero

Zero Hero aims to provide a one-stop shop of zero-waste and sustainable products for Australians to pursue a more sustainable lifestyle. Zero Hero will begin with a foundational range of sustainable, bio-degradable, ethically sourced products in cosmetics and beauty, home accessories, baby products, and food. While certain sustainable products have begun to flood the market, Zero Hero will uniquely combine all necessary zero-waste products under one roof. Another difference is that Zero Hero will focus on building a sense of community with its customers and adapt the stores focus products based on customer preferences and requests. Zero Heros target market is educated 18-35-year-olds as the young Gen Z and Millennials are at the forefront of the increased sustainable lifestyle pathway. Zero Heros first store will be based in Newtown, a well-known suburb for its vegan and sustainable promotion. It has a large young demographic who are very interested in living sustainably. This location will provide Zero Hero with easy access to our target market and spread the word about our brand.

Sarah has also detailed her new businesss capital requirements and funding plan in her business plan as follows. The large-scale nature of Zero Hero requires significant initial investment due to high fixed costs, low profitability, and low cash inflows at the start-up stage. Capital requirements include:

Shop fit-out	$400 000
Cash to supply working capital needs	$200 000
Inventory	$100 000
Required capital	$700 000

The funding plan for Zero Hero includes:

Venture capital	$140 000
Crowdfunding	$10 000
Bank loan	$550 000
Total funding	$700 000

Required:

a) Provide an example of ONE megatrend and explain how it might affect Sarahs business idea, Zero Hero.

b) Discuss how Sarah applied Product and Place of the 4Ps of marketing in his business plan. Suggest one improvement in either Product of the 4Ps or Place of the 4Ps (i.e., No need to suggest improvement in both Product and Place of the 4Ps).

c) Help Sarah apply Pricing of the 4Ps of marketing. In your answer, indicate what Zero Heros market positioning is according to Sarahs business plan? Justify how your pricing is consistent with Zero Heros market positioning.

d) Help Sarah apply Promotion of the 4Ps of marketing by outlining an effective promotion plan. In your answer, indicate where and how to advertise or promote, your budget, and what you want to achieve with this promotional campaign.

e) Help Sarah feed the capital requirements and funding information into the balance sheet for Zero Hero. Indicate whether the items in the following table should be classified as assets, liabilities, equities, or not applicable (n/a).

		Item classification (e.g., asset, liability, equity, or n/a)
Shop fit-out	$400 000
Cash to supply working capital needs	$200 000
Inventory	$100 000
Venture capital	$140 000
Crowdfunding	$10 000
Bank loan	$550 000

f) Sarah has made the Year 1 revenue projection for Zero Hero: Revenue is calculated based on a daily sale of approximately $500 per day: $500 365 = $182 500. Is Sarahs Year 1 revenue projection too optimistic? Explain. Revise her Year 1 revenue projection based on your assumption.