Specially Developed Trucks Seat & Cover - Example

Marketing Report on Specially Developed Trucks Seat & Cover Business Plan Feasibility of the Study The paper which evaluates the chances of a new seat covers to be successful which is based on the technology of acupuncture and looks towards providing comfort while looking to drive trucks is being analyzed. It is evident that the product will be successful as there is an increasing demand for trucks and seat covers which are more comfortable and increases the pleasure of driving. This thereby increases the chances of the product to be successful. In addition to it the overall model will look to provide the following revenues and is as PERFORMA PROFIT AND LOSS STATEMENT(yearly) $ Sales 80000 Cost of goods sold 20000 Gross Margin 75% Operating Income 80000 Less expenses payroll 1000 General administrative 3500 Marketing expenses 3000 Insurance cost 1000 Rent and utilities 1500 Interest cost 5000 Miscellaneous costs 1000 Net operating income 64000 It is clearly evident that the business will be profitable and will be able to generate revenues which are more than the cost thereby ensuring that the business will be able to carry out the new proposal in the best possible manner. This increases the chances of the product to be accepted by the people and will multiply the overall opportunities in the near future. Contents Feasibility of the Study 1 Contents 2 Executive Summary 3 Background 4 Industry and market analysis 5 Customers and value proposition 5 Marketing strategy 7 Operation & Production 9 Implementation Background 11 Resources 11 Risks and strategic options 12 Key milestones 13 Executive Summary The paper which looks into the business plan for a new product which is a seat covers for trucks. The seat cover has some extra features as it has been developed based on the technology of acupuncture and looks towards providing comfort while looking to drive trucks. The trucks seat has vibrators attached to it which the consumer can use while driving as it will help the consumer to relax at the time of driving. This will help people to relax while driving and will multiply the overall experience as it will help to ensure that the customer is able to bring about the change in the manner in which people experience while driving. It is seen that the chances of the product to be accepted is high as the product is primarily aimed towards truck drivers. The business will look to use different marketing strategies which will be aimed towards attracting and retaining new customers. The product will be sold directly through stores and outlets. Along with it the organization will look to enter into partnership with trucks manufacturers so that the product can be directly sold to the customers which will be fitted at the time of manufacturing. The pricing strategy that has been adopted is one which is slightly high compared to other seat cover which are provided in the market. The prime reason for having a slight increased price is that additional features are provided with the seat cover which has some additional cost. The promotional activities will be aimed towards using different media which includes electronic, pint, audio and video channels. This will help to reach different corner of the world and will provide an opportunity to capture a wide market. The launch will be through different advertisements which will help to attract people towards their product. Further different demonstration will be carried out at various places so that awareness can be generated. Contiguous changes and additions will be made to the already established product. The organization will look to add new features and ensure that the product provided by them improves the experience of driving. In addition to it the product will look towards improving comfort, and quality by taking feedback from customers and integrating them to take planned decisions. This thereby presents an opportunity to be successful and will help the business to ensure that the idea becomes feasible and is accepted by the people. Background Description of the product/service The product which has been selected is a specialized seat cover which is used in trucks. The seat cover has some extra features as it has been developed based on the technology of acupuncture and looks towards providing comfort while looking to drive trucks. The trucks seat has vibrators attached to it which the consumer can use while driving as it will help the consumer to relax at the time of driving. This will help people to relax while driving and will multiply the overall experience. Mission & Vision Mission: To attract people towards the newly designed seat cover for trucks which is differentiated and will help the customers to multiply their overall experience and ensure better penetration both in the new trucks segment and the present user Vision: To make driving a pleasurable experience for everyone Aims & Objectives The business looks to achieve the following Have a customer base which is of a minimum of 0.25 million people using both new and used trucks over a period of 1 years Spend around 25% of the budgeted revenue of marketing so that awareness can be created about the product Work on the different key indicators which will help to ensure that the ideal becomes acceptable and people are willing to purchase the same for longer period of time Look to improve the seat covers by continuously upgrading the same and adding new points and areas which will help to improve the manner in which acupressure is provided to customers while driving. Identify the marketing strategies which marketers need to identify and adopt so that they are able to develop strategies which helps to retain old users as well as the same time attract new ones Industry and market analysis The demand for trucks is continuously increasing which has resulted in an increase in trucks seats as it is imperative for people to use it while driving. There s a continuous demand of products which helps the people to improve their style of living and has thereby made people to look towards products which provides additional comfort and improves the manner in which people use trucks. The new seat cover which will have vibrators and acupressure points attached to it will look towards providing additional comfort to the users and will aim towards multiplying the experience of the consumers. This will help them to have a market share of around 10% and will provide an opportunity through which a large chunk of the market can be controlled. The manner in which the demand for trucks both new and old ones is growing provides an opportunity where the seat manufacturer which looks to provides additional features will be able to be successful. This will provide an additional market where the seat manufacturer will be able to look at different fundamentals through which the overall demand for seat products will rise. In addition to it people are looking towards purchasing products for their trucks which helps to multiply their experience and will thereby look towards transforming the manner in which people look at the product and the manner in which it will have a change in the purchasing pattern for consumers. The market thereby reflects an opportunity where there is a continuous growth and demand for products which are trendier as people are willing to spend extra for conform and additional features. This has resulted in transforming the manner in which the industry is growing and projects a good opportunity for different players as it could determine the manner in which demand for a particular product will be determined. Customers and value proposition The trucks seat which is being offered is slightly different from other seats which are available in the market. This thereby looks towards ensuring that the products works on a differentiation strategy and looks to create a niche market for its offerings. If the business is able to correctly identify the target market and develop its strategy based on it then the chances of being successful will be high and would help them to attract and retain customers for a long period of time. The product thereby looks to attract the following Final User: This are final consumers who use trucks and are truck drivers Manufacturer: The seat cover will also look to attract the different truck manufacturers so that a tie up can be ensured with them. This will help to ensure that all the new trucks which is manufactured will have new seat covers already installed in them. The product with different features will help to attract different type of people and can be further segmented as Old Users: This are people who drive trucks and have one and are looking towards additional comfort in their trucks. The segment will look to attract the old truck users by highlighting the different benefits of the new seat cover. New Users: The product will be aimed towards new truck purchaser where the seat cover will be provided with the truck when the purchase the same. People will be willing to purchase the seat cover as it provides something additional which other seat covers don’t provide. The customers will also be getting different benefits as It will help them to relax their muscle while driving which would ensure that people don’t get tired even after long drives It will multiply the experience of driving and will provide consumers with new and additional features through which more market penetration would become possible The cost is slightly high as compared to other providers in the market but it has additional features which other seat covers don’t have and would thereby help to provide additional comfort to the user. Marketing strategy Product Information The product is a is a specialized seat cover which is used in trucks. The seat cover has some extra features as it has been developed based on the technology of acupuncture and looks towards providing comfort while looking to drive trucks. The trucks seat has vibrators attached to it which the consumer can use while driving as it will help the consumer to relax at the time of driving. This will thereby help to attract truck drivers and ensure better targeting. Pricing Information The pricing strategy that has been adopted is one which is slightly high compared to other seat cover which are provided in the market. Having high price matches with the comfort that the product provides and will thereby look to attract people. The pricing mechanism is high pricing which slowly after a period of time will be reduced so that penetration pricing can be ensured and market share can be increased Promotion Information The promotional activities will be aimed towards using different media which includes electronic, pint, audio and video channels. This will help to reach different corner of the world and will provide an opportunity to capture a wide market. The promotional activity will be carried around highlighting the different benefits of using the seat cover and the manner in which it will help people to multiply their experience. Further, different discounts and offers will also be provided and the company will look to provide guarantee if the product gets destroyed within a certain period of time. Distribution Information The process of distribution carried out through different accessories dealers so that the goods can be directly provided to the final consumer. In addition to it tie up with different trucks manufacturers will be carried out so that the product can be directly available on the trucks which will help to attract new trucks purchaser. Further, different dealers, use of website and repair centers will have seat cover so that people can directly purchase the same from that distribution channel as well. The process will start locally where the local market will be targeted and then the business will move towards other destinations like Melbourne metro. Launch Strategy The launch will be through different advertisements which will help to attract people towards their product. Further different demonstration will be carried out at various places so that awareness can be generated. The use of radios will be undertaken as truck drivers tend to use radio and will thereby contribute towards ensuring that people are attracted in a better way. People will be allowed to use it and experience the manner in which different benefits are garnered when they use the product and the manner in which it will help them to bring about a change in the manner they look at different thing. Sales Tactics The selling mechanism is simple and will look to sell based on the additional features which the seat cover provides. The organization will also look towards providing demonstration so that people can check the same before purchasing. In addition to it direct selling from the website will able to done where people based on their trucks model can purchase the seat cover. Brand Development Continuous efforts will be laid towards improving the brand image as the business will look to be consistent with quality, service and comfort. This will help to develop a brand which people would prefer and would look towards purchasing the same again and again. Competitive Reaction The degree of competition is low as there is hardly any seat cover provider who works on the same business model. There is competition among simple seat cover providers but having additional features like acupressure and vibrator to it is a rarity. This thereby leads towards minimum competition and provides an opportunity to gain through first mover advantage. Product & Market Development Contiguous changes and additions will be made to the already established product. The organization will look to add new features and ensure that the product provided by them improves the experience of driving. In addition to it the product will look towards improving comfort, and quality by taking feedback from customers and integrating them to take planned decisions. Growth Potential The market presents a huge potential as the demand for trucks is continuously increasing. Further since the product can be sued both in new and used trucks it multiplies the overall opportunity and creates a huge market where they can cater. This increases the opportunity to be successful and reduces the degree of risk as it can be used for improving the manner in which different work activities are being carried out. Operation & Production The business will look to be carried out in the following manner Production process The production process will be carried out for seat cover where they will look to develop seat cover in such a manner that it is safe while being used. The gods will be directly produced by the organization by leasing the different plant and equipments so that the business is able to keep its secret of manufacturing After Sales Process This is an important area which the business focuses on and will look at having a team which will look to fix the different issues which people face while using the seat cover. In case some seat covers have some production issues it will be replaced by the team and a new one will be provided. The team will also look to work towards garnering different advice from different consumers and will look to solve all the issues they are facing. Suppliers The business will look to tie up with other suppliers who supply materials which will be used for production. Care will be taken to ensure that the products which are supplied from different suppliers are consistent and helps the manufacturer to carry out the different process in the most effective manner. Partnerships The business will work in a partnership model where the business will be carried out by a group of individuals who are willing to come together to carry out the different activities. The process of partnership will be aimed towards equal sharing of risk and return between the different partners who have agreed to come together and pool their resources so that the different activities can be easily carried out. Business Control The business will be controlled by the partners who work together. The partners will look to appoint different representatives who will work as managers and carry out the different roles. It will be there duty to gather all information and provide the same to the partners so that business decisions can be taken by them. Having proper control and also passing certain rights and creating accountability will ensure that the business control would be better which would thereby help to reflect the manner in which business would be better controlled. Business Structure The structure of the business will be of hierarchical structure where the different partners will look at controlling the business and will be the owners of the business. The business will look to have managers, subordinates and employees at the lowest level that will carry out the different work assigned to them. Further, the process will be aimed towards having a two way communication and discussion with different people so that fresh and can be generated and the process looks towards providing effectiveness and garners better opportunity over a long period of time. Some of the key personnel will be as Mary (CEO) : having an experience of 20 years who will be able to handle different responsibilities in a positive manner Eddie (Operation Manager): having an experience of 12 years and capable of handling the manufacturing process Fred (Accountant): having an experience of 9 years and capable of handling the financial management process John (Floor Manager): having an experience of 5 years and capable of handling the human resource Skill Gap and Filling the Skill Gap To fill the skill gap the management will undertake the process of identifying the different gaps which different individuals have. Based on it training will be imparted to the people so that they are able to garner the required skills. The training will be provided both on and off the job so that both theoretical and practical knowledge can be imparted to the required employees. This will help to develop a mechanism through which different directives will be aimed at and will thereby be looking towards ensuring a mechanism through which better skills will be identified and training will be provided. Skill retention strategies To retain the employees the organization will look towards having a process where they look at motivating the employees. This will be achieved through the process of incentives, perks and other bonuses which will help the employee to be motivated and will look towards ensuring that the overall process helps to improve employee retention skills. The overall framework will thereby help to improve employee turnover and will garner a process through which different areas will be addressed and better results will be achieved. Implementation Background Resources Premise & Facilities The organization will not direct stores but will instead look to work and develop the required supply chain network so that the seat cover can be provided to customers over different regions. This will look towards furthering ensuring that the organization will have an office and will work from there. The different directives will further look towards having after sales service centre in case there is some problems with the seat so that it can be repaired. Further, the business will be aimed towards being developed on the fundamental that it will look at having a process where different directives will be developed and better working environment will be ensured. Machinery & Equipment The machinery which will be used for manufacturing seal cover will be leaded as it will help to reduce the financial burden and ensure that the funds can be used elsewhere. The different machinery and equipments needs will be carried out in the production process as apart from it the business would hardly require and other parts. The after sales service department will be provided with the necessary equipments which they need to repair the trucks seat covers which is not working properly. This will help to ensure that the different needs will be better met. Further, with regard to the other equipments which will be needed to fit the seat cover will be available with the different dealers and fitters which will thereby help to carry out the necessary work accordingly. Staff The organization will look to hire the best workforce so that the different work can be accomplished in the best possible manner. The employees will consist of both skilled and unskilled labourer. Further, some employees will be fully hired and some will be casual labourers. The management will look to have a team of dedicated employees who contribute towards the long term goals of the organization. This will help to bring about the required change and transformation through which different business dimensions will be analyzed and looked at. Further, the employees who are hired will be such that they have the required skills which are needed for delivering superior performance. In case the employee lacks those skills than required training programs will be conducted and the overall potential which will improve the working style and help to achieve the business goals will be identified. Risks and strategic options Identified Risks The different risk which the management faces is that there are chances that the product will be copied by other players and would thereby reduce the first mover advantage which needs to be looked at strategies to deal with those has to be identified. Risk Monitoring & Mitigation The risk which has been identified needs to be dealt with properly and strategies have to be formulated which will help to deal with those. On the fore front it is important that the business looks towards having a team of talented workforce and looks at retaining them. This has to be matched by continuous innovation and development of the product so that they are able to withstand competition and determine the fundamentals through which they will be able to stay ahead. The process further has to look at ensuring that the risk is reduced and the different dimensions which are being looked at is identified so that future opportunities are handled in the best way. Critical Success Factor The key success factors are Change in the perception of people towards the product as the new product will help to meet the different needs of the customers and will multiply their overall experience of driving trucks The business strategy which has been incorporated where the product can be used for old as well as new trucks and having different designs and products which can be fitted with different variants of trucks. The pricing strategy where based on the disposable income the framework has been identified which will help to satisfy the different needs and requirements of the customers Strategic Option The strategic option which the business has to move towards normal trucks seat cover in case the product doesn’t becomes accepted and looking towards major ramifications and changes so that the product easily becomes acceptable. This will help to determine the dimensions through which customer acceptability towards the product will be determined. Key milestones The different milestone which the business looks to achieve during the business process is To improve the joy of driving where they look to provide different facilities and features which will contribute towards improving the manner in which different experiences are enriched Have a customer base which is of more that 1 million people within a span of 3 years Continuously add new features and innovation to the product so that the customer is provided with something which is different and based on which the customer looks towards being attracted towards the product Identify the marketing strategies which need to be used to grow the market and aim towards having a mechanism which will look towards strengthening the overall dimensions through which business can improve. Financial Projections The organization has looked towards identifying the different sources and dimensions through which the business will be funded. It has looked towards the following Projected start-up cost $ Working Capital $45000 Initial lease payments and deposits $15000 Salary to salesmen $10000 Opening supplies $45000 Marketing Budget $30000 Miscellaneous and unforeseen costs $5000 Total Start-up Cost $150000 The total cost which the business desires to spend will be procured from different areas and has to be managed so that the business is able to carry out the different functions in the most effective manner. This is as Source of funding $ Management funding $200000 Banks and Lender $500000 The financial projections which the business has identified is as PERFORMA PROFIT AND LOSS STATEMENT(yearly) $ Sales 80000 Cost of goods sold 20000 Gross Margin 75% Operating Income 80000 Less expenses payroll 1000 General administrative 3500 Marketing expenses 3000 Insurance cost 1000 Rent and utilities 1500 Interest cost 5000 Miscellaneous costs 1000 Net operating income 64000 References Brassington, J. and Pettitt, M. 2001. 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