Question: erthos has developed an innovative bio - based material that offers a sustainable alternative to traditional plastics and other materials commonly used in consumer packaged

 erthos has developed an innovative bio-based material that offers a sustainable
erthos has developed an innovative bio-based material that offers a sustainable
alternative to traditional plastics and other materials commonly used in
consumer packaged goods (CPG) and other industries. A large CPG company has
expressed interest in transitioning to sustainable packaging solutions and is
considering partnering with your company. erthos will retain ownership of all
intellectual property (IP) related to the biomaterial and CPG companies will
license the right to use the IP for their packaging using a royalty model. Your
task is to assess the revenue potential and conduct a market sizing analysis for
your bio-based material within the CPG industry.
a. Revenue Model
i. Propose a royalty model that would allow erthos to capture the
largest revenue potential from CPGs.
ii. Choose one CPG with publicly available information. Develop a
5-year revenue projection for erthos assuming the royalty model
you proposed in a) i. and making assumptions for how many
categories that the CPG would use the biomaterial for. Please show
your work and provide sources for your assumptions.
b. Market Sizing
i. Considering the CPG industry and royalty model proposed in a) i.
estimate the total global available market for erthos. Please show
your work and provide sources for your assumptions.
alternative to traditional plastics and other materials commonly used in consumer packaged

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!