Executive Summary
This is a company which will be laptop carrier bag maker and distributor them within North America before being distributed world. The company also intends to venture into multi functions bag with high security features protecting laptops and other features. It will operate in the technology industry thus most of its revenue will be from multi functions bag sold in the market. The name of the company will be multi bag invent which will be derived from the name of the bag that they will start designing. This venture is viable because they have carried out careful survey on the theft of laptops and belonging and realized that in the country no company was producing these multi functions bags targeting the customers for protection.
Mission statement: the company shall offer the best prices at the best services. Multi functions bags invent shall also be able to behave as role models to other firms and the community by coming up with a product that offers maximum security. We shall deliver competitively priced product suiting various needs of our clients irrespective of their segments. We shall have an open culture where our customers are able to discuss and critics our product and services to enable us act to ensure future product meet the customer needs.
Vision: Our vision is to be a market leader and get committed to improved products and services.
Objectives of the Firm
The main objective of the firm will be to provide:
- High quality products and services that need the population needs and make the world the better place to live.
- We shall be committed to a wide spectrum services in areas of data security.
- We shall also diversify into offering various products.
The company has identified two sectors as possible sectors to produce competitors in which their marketing strategy has been carefully analyzed to give the multi functions bags and edge throughout the competition. The estimated multi functions bags is said is likely to generate approximately over $ 250,000,000 in sales revenue in the US alone per year. The company has done a comprehensive research on both its strong points and the weakness. The company plans to.
- Improve the work on the threats in the SWOT analysis and eliminate the weak spots in the company
- Ensure and maintain a good customer relations
- Play a smart and creative to overcome the competitors tactics
- Invest in the management and staff training so as to ensure talent retention poaching from the competitors.
The company has identified three market segments which will be target market of the multi functions bags; hence all the brand awareness and marketing campaign will emphasize all the attention to the target markets. The company will use various communication fools for example website formation, use of publicity, sales promotion as advertise so as to create more awareness about the brand. The channels of distribution will be via four ways, i.e. through manufacturers to retailers, direct marketing, online shopping especially where the stores don’t have multi functions bags and use of sales force. All the integrated marketing communications will direct its customers to these four ways of distribution.
The retail price of the multi functions bags will be set at $55 which covers all the costs of production and the profit expected. The start-up capital for the company will be $50,000 which will cover all the operation costs.
sales and revenue forecasts 1,000,000
Projected growth 10%
Expected profitability 200,000
Description of business
The company is undertaking the creation of unique laptop carrier bag with Multi functions which will also engage the consumers in the whole design process. This creation of the multi functions bag are fashioned and created for the production of personal belong while travelling. The consumer gets the chance to protect is property and be able to track their belonging once stolen. The consumer will be assisted to track your property to any level since the product will have features that are security guaranteeing. This whole track process will involve the use of computer which will produce signals of the location of the bag with the contents. After the completion of the tracking process, the images are then entered into the computer data, and then are used to track the location using the compass.
In the retailers’ store, there will also be accessories, that the consumer will want the multi functions bag to have a password and key, which will be bought an extra charge. Together with this the retailer will also have already multi functions bag which were already designed and created earlier with password. This will be especially advantageous for consumer who will want to purchase the multi functions bag immediately without having to wait for at least one week. The multi functions bag will be ready for pick-up in 2 days or it can be mailed directly, with no additional charge.
The company’s multi functions laptop bag has many advantages to its competitors as it is a new product in the market. This brand offers accessories just like the company will but it will at much cheaper price compared to the companies competitors if they design, hence more consumers get to enjoy the cheaper goods in the company. This is coupled with the fact that the consumer gets to enjoy creating and designing their passwords with help of retailers for themselves according to their desires, tastes and specification unlike being designed from the factory.
The multi functions bag will be able to address a vital issue in the society i.e. acceptance of who and what the people are. The use of the multi functions bag will be able to show highest security. This multi functions bag especially comes at a time when the world is suffering from high levels of thefts.
SWOT analysis
Strengths
- Competitive pricing of the product and accessories
- Convenient store locations
- Product long shelf-life and durability
- Right product, quality and reliability
- Direct mail delivery capability
- Product innovation ongoing
- Management is committed and confident
- Superior product performance Vs the competitor
Weakness
- No pilot or trial done yet
- Software failure of the design and creations
- No company brand awareness
- More training of the staff to familiarize without the design program software
- Limited budget
Opportunity
- Could develop and improve the new product
- Attract bank/building society cash prints
- Open of new stores in viable locations for distribution
- Sources new suppliers (home/overseas)
- Can surprise competitors
- Profit-margins will be good
- Patent of the creation of this custom-made bag.
Threats
- Threats of the key staff is critical
- Mimic of the multi functions bag idea by the competitors
- Vulnerable to reactive attack by major competitors e.g. sabotage
- Cheaper substitutes and imitation exported from other countries
Description of industry
The business shall be under information technology and clothing industries. This is one of the industries that is stable in the country and has realized growth. The industries have got large scale, medium and small scale firms. The industries has got approximately 5,000 small scale firms, 2,000 medium firms and 1,000 large firms. The size of the proposed business will be of medium size. The basic capital requirement will be 50,000 and where 5 partners will contribute 10,000 each.
The business under this industry will be expected to grow and be serving more customers. The business shall face competition no competition from the beginning.
The business shall ensure that it specializes in the design of a multi functions bags. The business shall make arrangements of sponsoring its IT team to prominent companies to gain more skills to be able to offer better services than its competitors. The industry is capital intensive win the provision of its services. In the industry, modern technology has been put on to place.
The industry has offered employment opportunities in the country to approximately 100,000 people. The proposed business will employ 10 people to be serving the business. The future plans of the industry are to ensure that product as to the requirement of the luggages and inventions are increasing to improve the general conditions and comfort product.
Business goals
The major goals of the business are:
Short term goals:
- To increase sale by 20% – 50% in the next two one year
- To employ 10 employees within the next 12 months to be able to satisfy the needs of customers.
- To be able to serve the market with efficiency
Long term goals:
- After three years the business shall open its new branches.
- The business shall buy more shares from its profits to be in a position of raising more capital.
- The business shall be offering permanent employment to the community after becoming stable.
- The business shall be aimed at being the market leader in world.
- After 2 years the business shall have an efficient trained staff to improve productivity.
- After three years the business shall be able to open up new branches.
- Salaries will be revised from time to time in relation to the sales.
Entry and growth strategy
Entry: To make the business to be known in North America at the start, posters will be printed and placed at strategic places to inform its customers of its existence, its area of specification, its location, the services it offers and the products are sold.
Growth strategy: After three years the business shall start diversifying into various fields related to the business. The business will practice segmentation and start specializing in areas where the competitors have weaknesses.
Technology plan
The production of this bag will utilize the wireless technology. Wireless technology has increased access, flexibility and lower cost to data. Wireless networks facilitate real-time access to people, applications, and network resources across, branch offices, and remote locations using a variety of devices. Because of these attributes, wireless networks can provide numerous business benefits. Wireless sensors can be used at refineries to monitor the temperature inside giant on site fans (Ricadela, 2005). They can be used to monitor industrial plants and ships, remotely adjust lighting and heat in office buildings, test soil for pollutants and detect whether chemicals are stored properly (Ricadela, 2005). Remote locations such as oil refineries may be monitored in a cost effective manner through wireless networking (Ricadela, 2005).The study showed that the greatest business benefits of wireless technology happen in environments where collaboration needs are high, where fast access to information and rapid decision making are important (Intel, 2004).
Let us now look at some advantages and disadvantages of the Wireless technology. The advantages of Wireless technology are that it is in a solid state, rugged and also has a log life. It is compact and utilizes low power consumption also it is easily configurable and can be strobed or run continuously. On the technical side the Wireless the application ha a specific monochrome wavelengths (UV-IR) or white light which has a stable output if used with constant current drivers. However, the Wireless technology has its disadvantages too which we shall discuss now. The Wireless is monochromatic and the long term intensity and spectral stability is difficult to control because of the distributed nature of multiple sources. It also has a high sensitivity to drive condition and the output decays with time. Another disadvantage of the Wireless is that of cost and also the white Wireless is unstable. These are some of the advantages and disadvantage that come with the Wireless technology.
Therefore, we have seen that the Wireless technology has taken over many infrastructure and industry and also are used widely. Though it has its disadvantages many companies still uses it without hesitation, some include the architecture industry, the industry. Therefore, this technology can meet the requirement of the innovative bag technologies that require bright light.
Every new technology has its challenges before being accepted. However, wireless sensors work in a restricted scenario and with research prototypes. Wireless networks require novel programming paradigms and technologies. One solution for software technology has been offered by Blumenthal et al. In their article titled “Wireless Sensor Networks – New Challenges in Software Engineering”, Blumenthal et al (2008) describe the concept of new service oriented software architecture for mobile sensor networks. They hold that this architecture facilitates a flexible, scalable programming of applications based on an adaptive middleware. The middleware supports mechanisms for cooperative data mining, self-organization, networking, and energy optimization to build higher-level service structures. They have said that the key issue is to separate the software from underlying hardware and to divide the software into functional blocks (Blumenthal, 2008).
Another challenge in wireless networks concerns security. The current wireless LAN standards offer very unsatisfactory level of security and it is difficult to trust them. An authentication mechanism may be used over IP to perform end-to-end authentication, but this approach gives a potential launch pad for the attacker. Some commonly used attacks are more stressed in wireless environment like denial of service using radio interference. When the wireless networks are used in strategic applications, like manufacturing or hospitals, the possibility of this kind of attack should be taken into account with a great care (Uskela, 1997). Products supporting this level of security should be made available to consumers of wireless applications.
Marketing Plan
Target Market
The bag mainly will target the laptop owners especially those who like travelling a lot and will who will make a large percentile of the total target market, and a small portion will be of other people. The main reason why the laptop multi functions bag is targeting laptop owner is because they are losing them a lot and hence they require something that will assist tracking their products. This target market size is estimated to be more than 28 million people USA. This market is segmented into three-subgroups and qualities suitable for purchase of the custom-made equipment. These segments are:
- Low income: This group consists of a large percentile of over 70% approximately of the whole market segment. Over the years, all the local manufacturers have been generating a high turnover of profit due to the high purchase by this segment.
- Medium income: This is a segment that has largely been assumed by many as the largest consumers and they consist of people in developed countries. This target comprises of approximately 25% and who are willing to purchase any equipment to assist them in to track and protect their properties as they travel.
- High income: This is a small group that consists of approximately 10% and it mainly consists of people from developed world and their lifestyle involves travelling. This segment has been known to be fully dedicated in achieving their hobby therefore very busy and have the purchasing power buy the bag at any price.
The three market segments are suitable target, because the segments are able to generate over $ 500 millions annually especially in the industry and the net worth of this industry is growing yearly. This is especially observed particular in the winter seasons, where the industry records a high profit of over 5% profits compared to the other period.
The marketing segmentation variables used to select the segments include:
- The size of the age group: 55-100 has an important bearing on the target market. This market base serves a three-fold purpose in the segmenting; decision-making and buying by young generation on behalf of the old, the influence of parents on the purchasing decision of income earning children, spending habits by the youths themselves.
- Sex: The main target market is the both sexes, because they are known to forget.
- Lifestyle: The small percentile i.e. the active in traveling will be influenced to purchase the multi purpose laptop bag because of their, lifestyle i.e. can forget and thus can be motivated to purchase it.
Macro Environment
Political factors: The control of prices will adversely affect the running of the venture. the venture will charge moderate prices.
Economic: Interest and Exchange have impact on consumer spending and could affect their profitability of the venture. Interest rates and exchange rates have an impact on consumer spending and can affect the profitability of the firm. There are many economic indicators which determine the environment of the business. This include;- effects of affluence, depression, inflation, shortages of product in the market, effects of research expenditure, research costs, buying power index, consumer ability and willingness, price elasticity, and cost of distribution affects the business. Other economical factors that affects business environment include;- the long term focused by the government, macro economic projections of the government and the financial stability of the state.
Cultural factors: A consumer is influenced by the society he lives in, if a person is of a particular religion, nation, tribe or population grouping he will adopt the culture of that grouping, and the culture of a grouping is as a result of the influence of the language of the people, beliefs, knowledge, values, habits, and laws of those people. This means this affects the consumer in question in terms of his lifestyle to the extend of what he consumes. At times it is difficult to a person to consume some products even if he as a large disposable income because of his culture. It is important for managers of various companies to look into the influence of culture before introducing a product into the market
Technological factors: Technological environment is one of the best environments which have influence on the lives of a product. It is common in the world today where there are technological changes for managers to know technological innovations taking place in market in product development. The technological environment is responsible for drastic changes in product development. The introduction of computers and other machines as made marketing and production of a product to be easier
Marketing mix
Product
Lojack equipped bag: All laptop carrier bags will be equipped with Computrace/Lojack units, capable of pinpointing location in an event of theft, or lost. This technology is available for cars, but it is being introduced in personal carriers for the first time. These units will be disclosed within the bag, and will be constantly sending signals through GPRS public satellites to Computrace Command Centre. In an event of theft or loss, users can report the incident, and Computrace security will be able to trace the criminals effectively.
Solar Panel: A new innovative technology in our laptop carrier bag would be installed solar panel on the front. These solar panels (minimal in width and size) will be connected to a lithium battery, through which users would be able to charge their laptops or cell phones, while on the go. The solar panel would be able to store energy from the sun, convert it to usable form, and then charge the battery. The system will not be able to generate a lot of power, but still it would be enough to help students, work-force, and travelers charge their laptops and cell phones.
Water and Drop Proof: The laptop carrier bag is made from waterproof ripstop fabric, making it impossible for the content inside to get breached with water. In between the lining and cloth of exterior, we have placed a sheet (in the form of gridline) of military grade steel, able to resist against drops and any other afflicted force. Thus, your belongings inside the bag will be absolutely safe against these forces.
In today’s tech savvy era, all of the solutions we have provided in our laptop carrier bag would greatly benefit consumers from all backgrounds. Thus, we believe that by addressing some of the critical issues of the society, we have come up with a solution which would attract a lot of attention and hype.
Product Monitoring Procedures: Table shows the specific product monitoring procedures to be implemented by the company. In terms of monitoring procedures, the top leadership composed of the Chief Executive Officer (CEO), Chief Operating Officer (COO), the Vice President, and Division managers shall form an executive committee to oversee all company marketing strategies, tactics, and actions plans.
Product Monitoring Procedures
Price
The pricing of products is divided into two. One is to purchase of the bag that will be inserted in the security systems that is, fixed price per bag and on the other hand, we have the price depending on the number of tracking a customer requests per month. This varies according to the usage of the service and this pricing is rather psychological because it encourages the customers to use the product and this type of pricing tends to reward loyalty of customers to the products. The price discounts are also used as promotional methods to encourage the customers to join in as groups and organizations. This is corporate pricing.
The selling price of products and services will be calculated by considering some factors.
Cost pricing – at the start of business prices shall be determined by considering the cost prices of the product. To get the cost of the material is added to the labor cost. Then a 20% discount is also charged, (Material +labor) X 20%. This will assist the business to sell its products and services are reasonable prices to avoid making losses.
- Demand pricing: the business will access the demand pattern in the area and ensure that maximum profit is made during the period of high demand for its spares and services.
- Consumer pricing: at the time the business shall set prices according to the ability of targeted customers to avoid exploiting them.
- Competitors pricing: the business will compare prices of products offered by its competitors to those it will be offering. After analyzing the competitors’ prices, the business will come up with a reasonable and affordable price for its products and services.
The pricing tactics and action plans are as follows:
Price Tactics and Action Plan
Subsequently, the company should implement the price monitoring procedures indicated below:
Price Monitoring Procedures
Place
The company shall be situated in New York and it products are distributed in various selected retail stores across the same country. It also distributes its products and merchandise through the website online shop. The business will also offer its products and services directly to its consumers. The services will be offered directly to consumers without passing through a middle man.
Place Action Plan: The recommended place tactics and actions plans can be seen below:
Consequently, the company should implement the price monitoring procedures indicated in below:
Place Monitoring Procedures
Promotion
This is an important function of marketing which is charged with the task of informing the target customers about the unique and availability of multipurpose bag, their unique benefits and features as well as the price and place at which the product will be available in the market place. The company will engage the use of the promotion mix which are:
Advertising:- This will include use of media such as outdoor poster, television, for example the business channels, catalogues, bus posters, billboards etc. The company will engage the services of an advertising agency to come-up with creative ways of targeting the market.
There will also be the use of internet advertising, targeting the customer who’s the local stores don’t have the bag and creation of a website product. The catalogue, poster, newspapers adverts, will engage the use of bright colors for example red, yellow etc so as to attract together with picture bag etc.
Personal selling:-This is the oral presentation in a conversation with one or more prospective purchase for the purpose of making sales. The company will have a already trained personnel who will attract the target market. This will be done through the use of these categories of personal selling and are:
- Merchandise delivery – here the sales person, whose main job is to delver the products, hence wearing of company’s T-shirts popularize the brand.
- Inside order-taker – the company will have sales person in the store whose main purpose is to service the customers request or suggest appropriate product to meet the customer wants.
- Outside order-taker – there will be sales persons who will be located at different entrances of the mall who will engage the task of informing target market about the companies’ products.
- Sales promotion: This involves of the use of incentives to complete the push-pull promotional strategy of motivating the sales force. The company will engage the use of: Price-off offers. This will especially used in the product introductory phase, so as to attract the customer, andUse of coupons: This will be used after 3months of the product introduction to the market. The customer will be entitled to redeem a specific standard certificate for the bag free or in part payments
Organization plan
The manager who shall take the responsibility of managing the business shall be one of the partners. For the success of the business the manager will bring some things in to the venture. First and foremost the latest technology shall be employed in the offering of services and products to promote efficiency and accuracy. Further employees will be assigned duties in their areas of specialization in order to promote productivity. The manager will ensure that the objectives of the business are achieved. The assistant manager will assist in the day to day running of the business.
He will also ensure that employees perform their duties as required. Under the key management personnel, the business shall have electrician, financial controller and sales men. The salesman shall be in charge of the selling of spares to customers. The panel beater will be in charge of body work.
The marketing manager shall be in charge of marketing the bag that the business will offer. The security man will be in charge of ensuring that the properties of the business are safe.
Before recruiting employees the business shall carry out interviews and test other factors like employees’ qualifications, experience and personality. The business will offer job training to competent employees. Employees going for short courses taking duration of less than one year shall be sponsored by the business. The business will further offer attachment opportunities to college students. Promotions shall be given to competent working employees.
To retain employees the business shall reward employees for good performance, organize social occasions for them, give them honors and introduce a profit sharing plan. Some incentives like overtime, bonuses, good working conditions, insurance covers, staff parties and transport allowances hall are given to employees. The business shall get its license from registrar and will adhere to all laws enacted by the local government and the federal government. The supportive service that the business will get includes banking services at bank of America.
Operational plan
The business needs a lot of money to start its operation. At the start the business will buy essential tools and equipments that will be required on daily basis while others will be hired. Under the product and service design the owner manager will ensure that bag are quickly produced with high quality, employees are dedicated to the success and growth of the business. He will lay plans that will allow for flexibility to change through its organizational plan.
The cost of production of the business was accessed on a supply basis. This was arrived at after realizing that some duties cannot be completed within one day. The services that the business will offer will include all services required to be done in repairing of laptops and produce and distribute bag.
The business will earn 8000 per week and a total of 442000 for a year at beginning. The regulations affecting operations include safety standards regulations and insurance act. The business shall acquire a license from the ministry of commerce. The business shall also acquire a certificate before starting its operations from local authority. All laws and regulations shall be followed in day to day operations of the business as well as strict implementations of regulations regarding the registration process.
Financial plan
This forms the most integral part of the business. The pre –operational costs will take a total amount of 334,860. The working capital will be. 482,200. The sales of the whole year will be 3, 800,000 with a total cash inflow of 855,047.
From the proforma income statement the business will get a gross profit of 470,000 with a net profit of 282,200. The fixed assets of the business costs 261,902 with the total of 330,298 as its current assets. The owners’ equity is 50,000 with a loan from the father of 250,000. The break even point of the proposed business is 640,975.
The current ratio of the business is 1: 14 with a return on capital of 46%.
Management plan
The organization chart for the proposed business will be:
Conclusion
Multi functions bag invent is a good company with main focus to customers and marketing. This company is good in consideration with the different aspects that includes the views as well as the target market and clients. multi functions bag invent is also aware with the increased awareness of plans and the efficiency of cost in relation to sales. The company exists in order to gain more profit and be able to be competitive in all aspects of business. The use of different marketing strategies is of great help because of the contribution in profit and the style in the field of business. Though there are lots of pressures experienced by multi functions bag invent, the company remains to stand in their own. Research and studies are also applied in this field of business in order to test the different styles of marketing with strategic point of view that may be implemented. There is also an ability in order to make money which can be further used in investing activity. Given the fact that there are many competitors, multi functions bag invent remained to stand and continually searching for discoveries with many important views that can be used in the future.
Another marketing strategy used by the company is the connection of the rewards systems using the card-based in order to help the marketer for getting the information required. The beginning of good relationship of company and clients can have a nice value essential with the making of loyalty work in terms of marketing. The big division between the marketers and clients has something to do with the transactional level while fostering the need for long term relationship. The good aspect that may be considered is the global brand used by most companies and business expansion in order to grow and also evolved with the target audience for the diversification of needs.
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