Business plan Essay Example for Free

Business plan Essay Introduction Selective marketing strategy Most of the small business or businesses seeking to enter into new venture like creative technology seeking to enter the American headphone market will employ select marketing with the main objective being to get higher returns on their marketing investments. To achieve this objective, creative technology should strive hard in knowing their customers in the basis of their origination, who they are and where do their products do well (Homburg, etaal, 2009). Once they have that in mind, then they will try to maximize the best performing market segment, to realize these high returns on investment (ROI). The other vital objective of creative technology is to eliminate the guess works and the wastes involved in new venture and replace them with specific targeted efforts. This will ensure that they reduce on the operating cost and maximize their returns on investment. Also, owing to the luxury nature of the product that Creative Technology is to introduce in the United States market, they should gravitate towards these selective marketing as their product target a very limited population segment. Creative Technology employs this type of marketing to achieve their objectives as this product which they want to engage in is not for everyone and so they want to ensure that the message meets the right consumers and so reflecting in increased sales. Mostly, Creative Technology might include a glossy ad in the magazine and televisions. This is so because most of the population would be uninterested with luxury goods adverts. Moreover, Creative technology should employ tactics to differentiate the product from other brands in their category of products. This entails at classifying a brand as being more superior to other competing brands. This will involve stressing the quality of brand and design on their historical relevance and the longevity of the brand. In this approach, they will strive to paint the other competing products as unreliable, generic as and of a lesser quality than their own headphones (Homburg, etaal, 2009). This will ensure that Creative Technology meets its objectives of high returns on investments. This is so because it will reduce the extra cash and time spent on advertising messages directed towards consumers who may otherwise not be interested in the product. Also in addition to making this product stand out, specialized focus on specific market areas can help in building product’s reputation and ensure that this product has a long term fostered loyalty. Target Market Creative technology will then employ the tactics of target market selection in order to engage in the market which they are sure that their product will sell. There are two important factors which they should consider in doing this. These include; the attractiveness of the market segment and also how the segment will fit their objectives and resource capabilities (Shaw, E. 2012).. When they are selecting the target market, they should consider the following aspects. The size of the segment; this basically entails to the number of their customers that are in that population. When they ascertain that the segment has a considerable number of people then they can choose to invest in it and the vise versa. The other aspect which they should also consider is the growth rate of the segment. This will help them to determine their future prospect in the market. Also, they should be at a position of determining the level of competition in the population that they want to invest in. this will enable them decide their product in a manner that they will be more appealing than that of their competitors. In doing so, they will also know the loyalty of the customers in the competing brands and hence know the strategy of invading this market segment. In addition they will be at a position of determining the attainable markets share if they got the knowledge of the competitor’s expenditure in promoting their brands. Given the size of the population, they should also ascertain the required market share so as to break even and the profits they expect from the sales in the said segment (Aaker and David, 2008). To obtain this information, market research and analysis is vital for Creative Technology. For instance, buyer intentions, test marketing, sales estimation and analysis in demand is very useful in determination of sales potential. The micro and macro environmental variables on the segment should also be put into consideration (Shaw, E., 2012). It is very important for the Creative Technology to note that larger segments are not advisable for targeting as they will already have more competition. It could be more profitable to invest in two or more small segments with little or no competition. However, if the firm is sure of developing a competitive advantage like patent protection, they can engage in larger market segments. Target Market Strategies There are different marketing strategies that should be employed by Creative technology in their endeavors of choosing a market strategy. These strategies include; Single segment strategy: this strategy is also referred to as concentrated market strategy.Here one market segment is served as opposed to the entire market. It is a strategy which should be employed by smaller firms with little resources. Selective specialization: it is a multiple- segment strategy and is also referred to as differentiated strategy. Different market segment are served with different marketing strategies. Only the promotional message varies with the product not being the same in these markets. Product specialization: In this strategy, the company specializes in particular products that tailored to different market segments Market specialization: here the company will specialize in a single market and serve it with varied products. Creative Technology cannot employ market specialization as it is planning to employ only one product, the headphones. Full market coverage:   Here the organization tries to cover the whole market. It is mostly achieved either through mass marketing where a single undifferentiated market mix is employed to the entire market or by a differentiated strategy in whicha different mix is offered to every segment. Individual marketing strategy: this is a strategy which has been employed recently owing to the technology where market mix is tailored in accordance to the individual consumer (Brian Solis,2011). For the Creative Technology to remain competitive in the market and realize high returns, it should always target a market that matches its capabilities. Once it has gained momentum, then it can expand by embarking on specialization strategy, tailor the product for different markets. Positioning strategy After selecting the target market, the firm will now embark on deciding on how it will position itself in the chosen market segment. Positioning refers to how the firm wants their customers to view their product. It is about effective conveyance of messages to the target market about the firm’s product or service. Position strategy development The first step is to do a market research. The main aim of this is to feel the features of your product that the consumer wants to feel their presence in the target market of your choice. You research the general features and not the features offered by a particular brand for example headphone features by Creative Technology Company. Once you have identified the features which are preferred by your potential customers and their ranking according to your target customers, the then compile a list of product in that target market offering these features. Then draw a map showing not only the features of the product but also the competitors that offer those products with the same features. It is also advisable to place your product in this map too, for comparison purposes. After this you will have a clear picture on where competitors products are positioned in your map in the chosen target market, you can the make an informed decision on where you would like your product to appear on the map. Position strategy development mostly depends on how the firm will position itself. The firm can take a ‘me too’ strategy and position themselves adjacent to the competitor and allow the customers to directly compare the product features or they can choose a strategy positioning themselves away from their competitors. One way of doing this is by offering a feature absent from the competitors’ products that their market research revealed that the consumers in that market rank as vital. Market mix This refers on how the firm, Creative Technology will distribute their headphones to their consumers. They should plan this strategy so as to distribute their products (headphones) to their consumers at the right time and place. Efficient distribution is imperative if the firm is to meet their objectives. If for any reason they underestimate or overestimate the demand, the firm’s profitability will be negatively affected (Borden, Neil,2013). Choosing the Distribution channel There are two available channels of distribution which include direct and indirect distribution channels. Indirect pertains to the distribution where one uses the intermediaries in distribution. For instance, they can sell to the wholesaler who sell to the retailer and then to the end user. Conversely, direct distribution is where the company will be distributing directly to the end users at the right time and place required. It is mostly preferred as it gives the manufacturers direct control over their products. Choosing a distribution strategy Different products are distributed differently and there are three different distribution strategies which can be employed. There is; intensive distribution strategy which is employed in distributing low priced products, exclusive distribution which involves limiting distribution to a single outlet. This strategy is mostly employed in the highly priced product like vehicles and also may require an intermediary (Borden, Neil,2013).. Selective distribution; here a small number of outlet, especially retailers, are chosen for product distribution. If Creative Technology adopts a selective or exclusive strategy, they should choose an intermediary who is well versed with handling these or similar product and is well know by the target consumers.       Planning assumptions Projected cost and sales Financial tracking is a very vital part of any given business plan. In this financial tracking, one should be careful to note that the programme cost not only refers to the cost of the project but also the cost involved in administering this programme itself. Any project, for instance the Creative Technology’s project of venturing into the US market should contain the expected cost and the return or the sales expected from the same. In addition it should show clearly where the project’s resources will be obtained to make sure that it will not fail on the way. The projected sales and cost is the culmination of all the previous section of the business plan as each section will always impact on the cost and sales hence affecting the whole project finance. For it to create accountability, it should show clearly the firm organization structure so that it may indicate who is responsible for what, who will be making decisions regarding productions, legal compliance and financial management. Sensitivity analysis This is a tool which can be used by firms to examine their effects on the net income whe sales levels increase or decrease. These changes against which the sensitivity analysis is done are the unexpected event or the contingencies I outlined in the contingency planning. This analysis will usually centre its process on the ‘what if question’. Mostly these questions are as the following; what would be the firm’s income if it has a sales forecast of 12%, 16% or 34% higher? Also what can be my firm’s net income is the firms forecast a 12%, 16% or 34% lower than the expected (Helton etaal, 2009). Contingency plan Contingencies are events which are not expected or not expected in the firm business plan. So the company must develop a contingency mitigating strategies or plans in order to be prepared for these unexpected outcomes. This is because these events do not arise from time to time and so they must be ready with these plans in case they occur. These plans entail preparing for crises and for unwelcome outcomes in case they occur (British Standards Institution, 2012). This will ensure that the firm will easily recover these unexpected events. It will also ensure that these impacts are minimized. When drawing a contingency plan, the first step is recognizing its need, and then indentifying all the possible scenarios. After this they must know what the consequences of these crises will be. Then assess the degree which might be caused by these eventualities. After they have done all this then the final step is to choose a risk strategy to employ so that they can mitigate these crisis and lastly do a crisis simulation which is testing their plan. (British Standards Institution, 2012) The firm management should also consider the ‘what if’ question where they prepare scenarios which could arise in the business operations. Some of these questions could include: what if the competitors produce a very powerful product with much favorable features in the eyes of the consumers of the target market? What if the firm does not meet its expectations? What if their competitors employ advanced advertisement strategies than the firm? Etc References Baker, Michael The Strategic Marketing Plan Audit 2008. p. Homburg, Christian; Sabine Kuester, Harley Krohmer (2009): Marketing Management A Contemporary Perspective (1st ed.), London. Marketing basics Marketing strategy based on market needs, targets and goals. Aaker, David (2008) Strategic Market Management Baker, Michael The Strategic Marketing Plan Audit 2008 p. 27 Shaw, E. (2012). Marketing strategy: From the origin of the concept to the development of a conceptual framework. Journal of Historical Research in Marketing, 4(1), 30–55. Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building Business and Securing Your Company’s Future (6th Edition). Page 20. Dearborn Trade: Chicago, USA. A. Simon, Rational decision making in business organisations, American Economic Review Borden, Neil. (2013)The Concept of the Marketing Mix. Brian Solis(2011) Engage!: The Complete Guide for Brands and Businesses to Build, Cultivate, and Measure Success in the New Web, John Wiley Sons, Inc. pp.201-202. Koichi Shimizu (2003)Symbiotic Marketing Strategy,4th edition, Souseisha Book Company. Intrieri, Charles (10 September 2013).  Business Contingency Planning. Flevy. Retrieved 29 September 2013. British Standards Institution (2012). Societal security – Business contigency management Systems – Requirements: London Saltelli, A., Ratto, M., Andres, T., Campolongo, F., Cariboni, J., Gatelli, D. Saisana, M., and Tarantola, S., 2008,  Global Sensitivity Analysis. The Primer, John Wiley Sons. Campolongo, F., J. Cariboni, and A. Saltelli (2008). An effective screening design for sensitivity analysis of large models.  Environmental Modelling and Software,  22, 1509–1518. Fassà ², Alessandro ()  Sensitivity Analysis for Environmental Models and Monitoring Networks. Preprint J.C. Helton, J.D. Johnson, C.J. Salaberry, and C.B. Storlie, 2009, Survey of sampling based methods for uncertainty and sensitivity analysis.  Reliability Engineering and System Safety

The Impact of Digital Media on Consumer Spending Essay examples -- Con

The impact of digital media on consumer spending has had a positive and negative impact on the average consumer. While digital media has opened up new businesses and career fields, simultaneously it has closed and decimated traditional â€Å"brick and mortar† establishments, decreasing the need for sales professionals. Many years prior to the affordability of personal computers in the 1980s, consumers were hunter-gatherers, whereas their actual jobs were hunting and gathering food for everyday subsistence. Once humankind evolved, trading and bartering came into play along with an increased level of occupational specialization. As the world population increased, natural resources decreased, innovation and transportation systems improved, and trade became the vehicle for survival and wealth building. Fast forward to present day, and we can see three major impacts digital media has had on consumer spending, the ease of accessibility for the consumer, the financial benefit to the online retailer, and the impact to the traditional â€Å"brick and mortar† establishments. Seeing that we are becoming more of a sedentary society, ease of accessibility is critical in the influencing consumers spending habits. Fast food restaurants, microwave foodstuffs, and â€Å"instant† products all have one major advantage to the consumer†¦they save time. Consumers spend an average of 8.6 hours working per day (Labor), therefore with only 24-hours in the day; any product or process that can save precious minutes could be destined for success. Online shopping is only a few clicks away, and the product you select will be at your doorstep in a relatively short period. Additionally, with internet accessibility, consumers spend less time and resources researching products... ...rt journey towards insolvency. Works Cited Internet Retailer, Portal to E-commerce Intelligence. (2012). Trends and Data, Consumers. Chicago, IL: Retrieved from http://www.internetretailer.com/trends/consumers/ Internet Retailer, Portal to E-commerce Intelligence. (2012). Trends and Data, Sales. Chicago, IL: Retrieved from http://www.internetretailer.com/trends/sales/ United States Department of Labor, Bureau of Labor Statistics. (2011). American Time Use Survey. Washington, DC: Retrieved from http://www.bls.gov/tus/charts/ Hubbard, R. G., & O’Brien, A. P. (2010). Macroeconomics. (3rd ed.). Boston, MA: Pearson. United States Department of Commerce, Census Bureau, and International Trade Administration; Advocacy-funded research by Kathryn Kobe (2007). Washington, DC: Retrieved from http://www.sba.gov/advo/research/rs299.pdf The Impact of Digital Media on Consumer Spending Essay examples -- Con The impact of digital media on consumer spending has had a positive and negative impact on the average consumer. While digital media has opened up new businesses and career fields, simultaneously it has closed and decimated traditional â€Å"brick and mortar† establishments, decreasing the need for sales professionals. Many years prior to the affordability of personal computers in the 1980s, consumers were hunter-gatherers, whereas their actual jobs were hunting and gathering food for everyday subsistence. Once humankind evolved, trading and bartering came into play along with an increased level of occupational specialization. As the world population increased, natural resources decreased, innovation and transportation systems improved, and trade became the vehicle for survival and wealth building. Fast forward to present day, and we can see three major impacts digital media has had on consumer spending, the ease of accessibility for the consumer, the financial benefit to the online retailer, and the impact to the traditional â€Å"brick and mortar† establishments. Seeing that we are becoming more of a sedentary society, ease of accessibility is critical in the influencing consumers spending habits. Fast food restaurants, microwave foodstuffs, and â€Å"instant† products all have one major advantage to the consumer†¦they save time. Consumers spend an average of 8.6 hours working per day (Labor), therefore with only 24-hours in the day; any product or process that can save precious minutes could be destined for success. Online shopping is only a few clicks away, and the product you select will be at your doorstep in a relatively short period. Additionally, with internet accessibility, consumers spend less time and resources researching products... ...rt journey towards insolvency. Works Cited Internet Retailer, Portal to E-commerce Intelligence. (2012). Trends and Data, Consumers. Chicago, IL: Retrieved from http://www.internetretailer.com/trends/consumers/ Internet Retailer, Portal to E-commerce Intelligence. (2012). Trends and Data, Sales. Chicago, IL: Retrieved from http://www.internetretailer.com/trends/sales/ United States Department of Labor, Bureau of Labor Statistics. (2011). American Time Use Survey. Washington, DC: Retrieved from http://www.bls.gov/tus/charts/ Hubbard, R. G., & O’Brien, A. P. (2010). Macroeconomics. (3rd ed.). Boston, MA: Pearson. United States Department of Commerce, Census Bureau, and International Trade Administration; Advocacy-funded research by Kathryn Kobe (2007). Washington, DC: Retrieved from http://www.sba.gov/advo/research/rs299.pdf

Character Analysis: John Updike A&P

John Updike’s story entitled â€Å"A&P† is a narration of a man who seeks for his identity and pride. The narrator of this story is also the main character – Sammy. This protagonist is a simple man – a grocery clerk and an observer.Because of this job, Sammy used to observe his costumers and the ambiance of the A&P. However, due to one situation that occurred into the grocery store, Sammy realizes many things and gives him certain actions that changed his life. Being the main character of the store, Sammy shows different emotions – happy, angry, sad, confused, and puzzled. That is why Sammy is a picture of transforming identity from the beginning up to the end of the story.In terms of sympathy towards Sammy’s character, I have seen that Updike uses different factors and elements to show emotions and actions coming from the main character. It is to provide conflict, climax, and resolution to the story. the author sympathize with Sammy’s character that can be seen in the end of the story where Sammy realizes that he has no job and the worlds will not be a better place for him anymore.This part shows sympathy in a sense that the author makes the character realize the fact of life and did not only release the solution of the conflict. Updike shows the justification and idea of Sammy after he quit his job, which is a form of sympathy to the character.Because the character comes from a middle class, the language is casual and straight. In the beginning of the story, we could see that Sammy is very observant with people or with his environment. When Sammy wants to express his feelings, he shows it directly without any form of pretention.From this fact, it defines the identity of Sammy as a normal character with dignity and pride. However, the way he describes things or people is dramatic in a sense that he provides accurate imagination to feel and understand his perceptions. As the story goes by, we could able to show t hat Sammy starts to express his actions and words together that changed his path.Sammy is easily affected by his environment. This is the most significant trait that he showed throughout the story. From the beginning up to the end of the story, Sammy establishes a concept of being affected to everything that happens in his environment. From this fact, we could distinguish that Sammy is a composition of attraction, curiosity, inferiority, and distinction. All these factors rehabilitate the mind and actions of Sammy towards other people like Quennie and Lengel.In my own observation, I can say that Sammy’s persona is dynamic because his actions and motivations are not stable. As the story goes on, Sammy’s personality elevate from one factor to another. In the beginning of the story, Sammy is an observant. When he saw Queenie in a swim suit, he started to analyze things. When Lengel enters the scene and confronts the ladies in swim suit, Sammy talks to Lengel. When Sammy t hinks that Lengel’s actions are illogical, he quits his job. His actions had a process to establish his character – not just a static formation of his identity.From all of these, I can say that Sammy is a good character that can be played. He is flexible enough to adjust in different scenarios. This is what I like with his character. Even if he is prank, direct, and ‘weird’ character, there is a concept of intelligence that lies within his persona. It shows that Sammy was not easily manipulated by his environment but he could think and become supple to show who he really is.Work CitedUpdike, John. A&P.

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