Business Plan for Micro Shopee
Transcript of Business Plan for Micro Shopee
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REACHING TO SAFTY LIFE
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Market Targets
India to emerge largest security market in next 10 years:
report
India, which currently shares 3.6% of global homelandexpenditure, will require to take it upwardly to an extent of 6%over the next decade to effectively take on emerging securityrisks, a Assocham-KPMG report said.
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Growth Targets
Target market takeoverwould be 15% on onlyfire alarms
Target market size forfire alarms and carbonmonoxide would be 20%of market
Target market size for all3 systems would be 30%
0
5
10
15
2025
30
Target
market
in %
Each target
by system
Targets
Fire alarms
Carbonmonoxidealarms
Home alarmsystems
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Threats of Competitors
No other company produces an air freshener incombination with smoke alarm, security system,or carbon monoxide detector
Possible competitors
Fire alarm producers
Carbon monoxide producers
Security system producers
Air freshener producers
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Quantified, Quantifiable, Profitable
The two major brands, glade and renuzit, areboth owned by conglomerates
One is a publicly traded German company
Henkle and one is a private company SCJohnson
Both have been in business for several years
offering a variety of products making the homecleaning product market very profitable
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Internal Strengths and Weaknesses
Strengths
Production development
Market ability
Quick distribution capability
Weaknesses
New business
High research and development costs
Capturing of market shares in a mature market
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Product Life Cycle
Product life cycle
Market introduction
Market growth
Market maturity
Sales decline
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Market Introduction
Customers not familiar with new product Sales low
Use informative promotionTell customers about product
Introduce advantages of our product
Company will see loss during intro. due to
Cost for promotion Product development
Place development
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Market Growth
Stage for biggest profits
Rapid sales
Wide marketing mix Competition will enter
We will continue growing product and
increasing benefits
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Market Maturity
Sales level off
Competition begin creating variations
Profits will decline through this stage due to Rising promotion costs
Competitors cutting their prices
Persuasive very important at this time Competitors products becoming so similar to ours
Price sensitivity due to this
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Sales Decline
New products introduced to replace old
Strong product to create profits until the end
Successfully differentiating our product
Customer loyalty
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Forecast
New home construction from 2000-2004 is25,188
House formation going to rise at an average of
1% per year to reach 384,000 households in2010
485 single family housing constructions permits
given in 2005 11 multi-family new construction permits given
in 2005
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# of local builders
Classic Design Homes
Cougar Construction
Dan Fluery Construction
Dan Lowe Construction
Kw Signature Homes
McDadden Construction
Skyline Builders Montana
Wells Built Homes
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Segment Strategy
Homogeneous- target customers should be as similar aspossible (all are homeowners, renters, etc.)
Heterogeneous- customer in different segments shouldbe as different as possible with respect to their likely
responses (wide variety of people, backgrounds,income, etc.)
Substantial- Segment should be big enough to beprofitable
Operational- segmenting dimension should be usefulfor identifying customers and deciding marketing mixvariables
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DimensionsBehavioral
Needs- economical, functional
Benefits Sought- Continence for homeowners
Brand Familiarity- recognition- this is an advantage
because there are many room deodorizers in the market
Thoughts-
Favorable- length of time between replacements, possibleremote adjuster to control amount of scent release
Unfavorable- difficulties switching cartridges, regulatingstrength of smell
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DimensionsBehavioral
Rate of use- heavy because it is always on
Purchase relationship- intermittent due to timebetween replacement cartridges
Kind of shopping- new unsought products
Type- or problem solving- limited problem
solving Information required- medium due to new
product
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DimensionsGeographic
Region of world- North America
Region In country- Pacific, Mountain, WestNorth Central, West South Central East, NorthCentral, East South Central, South Atlantic,Middle Atlantic, New England
Size of City- any size, all consumers
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DimensionsDemographic
Income- any income, all consumers
Sex- Sex neutral
Age- 18 and up
Family Size- any size of family Family Life Cycle- any family life cycle
Occupation- No occupation preference; all renters,homeowners, emphasis on housewives
Ethnicity- no ethnical boundaries
Social Class- any and all social classes
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Decision Making Process
Identify the problem- Consumers needs are to protect homewhile giving home a refreshing scent
Gather Information- Consumers will gather information throughyellow pages, internet, newspaper, home magazines
Evaluate Alternatives- Smoke detector onlylow costs
Air freshener only- low cost
Smoke detector & air freshener- intermediate costs
Make Decision- Consumers will choose combo because they getmore for their money
Evaluate Decision- Consumer will be satisfied because productgives them sense of safety and freshens home
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Means End Chain
Product Smoke detector/air freshener
Attributes Two in one system provides convenience, safety and comfort
within a reasonable price Consequences
Physical- safety device, refreshining odor Psychological- comfort of working safety device, convenience
in two of two in one device Value
Reasonable price, convenience, safety
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Perceptual Map
General Specialty
*ReNuzit
*Oust
*Glade
*Fresh Alert
*Vapor Plug
Luxury Priced
Economically Priced
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Promotion Objectives-Inform
Attention Strategy- Newspaper advertising, internet advertising, yellow
page advertising, home magazine advertising
Information Strategy- Convenience, word of mouth, sponsorship if
demonstrations
Desire Strategy- Coupons, rebates, warranties
Action Strategy- Inform customer of additional products, Inform
customer of changes in product
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Place Objectives
How to manage channel relationships Producers (ourselves) will lead our channel We will also have a channel captain to take care of any and all
conflict that may get in the way
Customer Service level desired Inventory Level- level to meet sales + 10% Transportation Arrangements- will ship directly from our
warehouse to customer Facilities needed- Factory, warehouse, office space Information technology needed- need to know and keep up
with the safest detection ways possible and ways to keepfreshener quiet and leaving a continuous smell
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Place Objectives-Medium Care
Channel SystemsWill be sold using multi-channel distribution to
customers (builders, consumers, etc.) in order to get
our product out there and being used. Degrees of market exposure desired
Intensive distribution
Types of middlemen needed Retail store, building contractors, home cleaning
services
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Price Objectives-Sales
Current hardwired smoke detectors run from $15-$130
Automatic air fresheners can be purchased for $10-$20
Objectives: A sales oriented approach focused on unitsales growth
Competition: Although there are no currentcompetitors, success of our product would spurn rapid
copying and we could not match the resources of bigname brands. Fire alarm companies and Fragrancemanufactures could form alliances.
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Brand Positioning Statement
Fresh Alert produces specialized room
deodorizers installed inside smoke
detectors, fire detectors, and carbon
monoxide detectors. We protect your homewhile delivering a refreshing scent that is
easy and convenient to maintain at a very
economic price.
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Resources
http://factfinder.census.gov/servlet
http://housing.state.mt
http://www.hbabillings.net/permits/permit_results
http://hbabillings.net/pdf/06participatingbuilders.pdf
https://secure.spectronics.com
http://factfinder.census.gov/servlethttp://housing.state.mt/http://www.hbabillings.net/permits/permit_resultshttp://www.hbabillings.net/permits/permit_resultshttp://hbabillings.net/pdf/06participatingbuilders.pdfhttp://hbabillings.net/pdf/06participatingbuilders.pdfhttp://hbabillings.net/pdf/06participatingbuilders.pdfhttp://hbabillings.net/pdf/06participatingbuilders.pdfhttp://www.hbabillings.net/permits/permit_resultshttp://www.hbabillings.net/permits/permit_resultshttp://housing.state.mt/http://factfinder.census.gov/servlet