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Introduction To Business Plan
This report demonstrates assessment of business plan which has been developed to launch a new product in UK market. The product is a Bottle which will keep the water warm or cool for long period of time. The first issues which has been observed is that people in UK are not able to find out a particular product in market which can meet their needs of carrying hot or cold water with themselves for long duration. The existing products which are available in market such as thermal flask and packaged water bottle are not able to keep water on stable temperature for more time. This makes it very difficult for people such as skiers, mountaineers and travelers to satisfy their thirst of water. One of the major issues which have been identified in this project is that there was no specific data which was present to determine the need and demand of such kind of bottle in market. Approach such as primary and secondary data analysis has been used to identify the market demand. Along with this, the report also reflects the areas on which the business plan can be improved. At last a reflective statement has been provided in which highlights how this business plan has helped in personal and professional development.
1.1 Industry Research
The number of people which spend more than two hours of travelling from one place to another for doing work has increased around 72%. On the other side of this, the number of commuters travellers has increased from 500000 to 8800000 in last 10 years (Millions of people spend two or more hours commuting a day, 2015). Areas such as south east, south west and Wales has witnessed biggest increase in long commutes. On the other hand, the number of travellers in caravans in England has been increased to 28% since the year 2006. 20123 Gypsy caravans where witnessed in the year 2015 which was 604 more than what it was in January 2014. On the other hand, in the year 2000/2001 there was total 921000 skiers in UK. Every year there are 1.5 million British public which skies. The number of climbers is also increasing as more than 360000 walkers climb the summit of snowdon every year. These all facts and figures clearly explain the potential opportunities for growth and development.
1.2 Primary research
From the primary data which has been collected from 100 people it has been found that there is huge demand of bottles which can store hot or cold drink and water for long period of time up to 8 hours. The information collected randomly form people which fall in the age group of 20-55. The respondents belong to middle class and prefer saving their money. Further it can be evaluated that these people are already using Thermos flask and other alternatives such as packaged bottles to satisfy their need of water and other drinks during travelling or doing any kind of sports activity. The respondents stated that they are not satisfied by the products which are presently available in the market as the water or drink does not stay cold or warm for long period of time. Therefore, it can be stated that there are enormous opportunities for the Porttle in terms of growth and development.
1.3 Secondary research
Market analysis is termed as the process in which business carry out a market research to identify its level of competition and strategies which has been adopted by market players (Scott, 2006). The new product, Porttle which is warming and cooling bottle will face some sort of direct and indirect competition in the market. Porttle direct competition will be with Thermos flask which is commonly used by people to carry warm or cool bottle with them. Further one of the major advantage of using Thermos flask is that it keeps drink both hot and cold (Water Vital Statistics: Industry Data, 2015). Other than this, there is no electricity required to keep the drink cool or hot. On the other hand, there are some disadvantages of using Thermos flask. One of the main among those is that it does not keep the temperature of the drink consistent. After some time, the premature of cold drink starts increasing or hot drink starts declining. In addition to this, Thermos flask is also not durable in long run as its vacuum stops function after few years. The flask is also heavy to carry and can retain heat only up to 4 hours which means it is not suitable for long journeys (Bottled Water in the United Kingdom, 2015).
Models and Theories
- Political factors- Changing tax rates and changing acts of legislation will be the major political factors that will affect the operations and activities of Porttle.
- Economic factors- The country is growing slowly with a good rate of 2.9% in the year 2014. The economic conditions in UK are also stable which means that there are adequate opportunities for growth and development for Porttle.
- Social factors- It can be also stated that the taste and preference of people in market as a direct impact on sales and profitability of business enterprise. The increase in number of travellers means that there will be a great requirement of products such as Porttle. This will help people to carry warm or cool drink or water along at the time of travelling.
- Technological factors- The brand will be also affected by technological advancement in the country. High rate of technological up gradations will be very beneficial for products such as Porttle. Further online platform will be used to promote and sell the product to people in the market.
2.1 Company description
The company will be selling warm, cool and boiling bottle by the name of Porttle. Further it will be light weight and portable bottle which means that it will be very easy to carry the Bootle. The company will be offering very attractive and sport design in its bottle. The technology for warming and cooling will be used for the customers without electricity. The accessories which will be required to purchase with Porttle are detachable filter tube, spare slat filament, car cable and pad lock. The target customers will be long distance travellers, skiers, campers and mountain climbers. Further it can be stated that with the help of Porttle, the company will be able to satisfy the need of carrying water or other drink of the above stated peoples. On the other hand, it can be stated that EP 2601869A1, US 3804076 A has been patented for baby bottle warmers. US 5233914 A has been patent for coffee makers which are using car battery power.
2.2 Organization and management
In terms of organization and management it can be stated that functional structure will be followed by Porttle. In this structure all the departments will be groped in accordance with their functions and purposes. There will be 5 partners and each will have 25% share. The brand will be headed by CEO, and all the department will work under the CEO. The major department includes administration and finance department, distribution department, R & D and quality control and the last one marketing and sales department.
General partnership will be carried out in terms of management. Porttle will share its ownership along with all profit and losses equally among all its partners. All partners will be actively involved in the business and decision making process. One of the major advantages of partnership is that taxes will be more simplified as the tax will not be applicable on income but will be applicable on profit and loss. Further the responsibility will be shared among all the partners.
3.1 Marketing and sales
Marketing and sales will be an important part of Porttle overall strategy. In order to promote the product, various kinds of tools and techniques will be taken into consideration. 30% off will be provided to first 2000 online customers of Porttle which will make purchase through online website. Ads will be also displayed on travel and sports magazines to attract sports persons and travellers which is one of the main target market segments of Porttle. Promotion will be done on social media sites such as Facebook, Twitter..etc. .Other than this, Porttle will be also promoted in sports events such as Tour De France. Online price of Porttle will be £19.99 and for the suppliers the price charged will be £15.99. The product will be made available on online portals such as Amazon, also in Sports Direct and Boots. Some improvements are also required in the marketing and sales plan. It can be argued that such kind of marketing and advertisement will be very costly at the initial stage. Therefore, it will be more beneficial for Porttle to increase its promotion on social media and decease its spending on advertisement of magazines and newspapers. Further improvement is also required in pricing strategy as there should not be such kind of gap between the price offered to suppliers and what is offered to customers.
7 P's of marketing
Product- The product will be launched with the name of Porttle. It will be a light weight bottle having attractive design. Its warming and cooling technology will keep the liquid filled in it warm or cool for long durations.
Price- During the initial stage, Porttle will be sold to suppliers on the price of £15.99 and its online prices will be £19.99. Thus, it will be sold at prices which are around the price of thermos flask which will be its direct competitors. The price of flask in UK varies from £17 to £20.
Place- The management will make sure that Porttle is easily available to the people in market. Further people can buy the bottle from online portals such as Amazon, in Sportsdirect and Boots. It will be also sold in supermarkets and petroleum stations.
Promotion- Both online and offline platform will be taken into consideration for marketing and promoting the bottle. Promotion on social media sites such as Facebook and Twitter will be carried out.
People- Skilled and effective workforce will be hired to make the products successful. There will be total 5 people which will be going to manage the work. In addition to this, human resources will be also hired for various departments such as marketing, sales, finance etc.
Process- The delivery of bottle will be done with the help of departmental stores. Further it will also made available on medical stores and via online. The entire process of manufacturing and delivering the product will be well tailored so that the entire cost of operations can be lower down.
Physical evidence- The physical evidence of Porttle will be its unique and special characteristics. The services and delivery system which will be provided by Porttle will be also considered as its physical evidence. When people will think of a bottle which can satisfy their need and demand of carrying hot or cool water along with themselves.
To establish new business of Bottles there are various sources of finances available. Further some of the common sources include bootstrapping, bank loans and venture capital. For the present business enterprise, venture capital and bootstrapping will be taken into consideration. Bootstrapping is the process of starting company with your own finances and venture capital is the money which has been invested by other parties or individuals in a particular business or projects. For the business of Porttle initially bootstrapping will be done where each partner will bring £2000. After some time funds will be raised with the help of venture capital. Further it can be also stated that concept of venture capital will be risk but will provided the business with high and potential growth.
- It can be recommended that in the future, Porttle will need more research and development in term of technology. Also it can raise funds with the help of bank loans. Further it will be more convenient source as the brand will be required to pay interest and instalments over fixed rates.
- It can be recommended that the brand can also launch new products if the bottle becomes successful in the market.
- It can be recommended that the company should conduct customer survey at regular intervals in order to understand the need and demand of people in the market. Along with this, it is suggested that the company should make modification in its products and services as per the changing market trend.
- It can be stated that the company should also starts offering its products to other markets. This will help in enhancing sales, profitability and brand image of the company.
- It can be recommend that before entering the market, test marketing can be carried out to understand the response of people at market place. This will help the bottle to make sure that there is adequate need and demand of it in the marketplace. The concept of test marketing will also support in getting aware about the fact that whether the bottle requires any kind of changes or modification.
This research has helped me in developing personal as well as professionally. In personal aspect, it can be stated that it has helped me in how strongly believe in myself, have confidence in my personal capacity and be competitive without fair of failure. Also, in improving my skills related to business ideas, creativity and innovativeness. Other than this, this research has helped to evaluate my personal abilities and to discover my strengths and weaknesses to be a good entrepreneur.
On the other hand, it can be stated that this project has also helped me in professional terms. While carrying out this report, I learned how to develop a vision and translate it into a mission statement, test the feasibility of my product to determine viability of a business opportunity and develop an effective business plan. I become aware about market research, competitors analysis and about various kinds of marketing strategies which can be used to promote and sell products and services. Along with this, it has also enhanced my knowledge in the field of finance by making me attentive about various sources from where businesses can raise their funds. This project has not restricted me to one particular field but has assisted me in getting knowledgeable around different fields such as sales, marketing, management, operations and finances.
This business has assisted me to develop in every aspect as after carrying out this research, how to closely be connected to innovation. I have been able to understand various aspects of business. Further with the help of this project, I became aware of the importance of decision making. This research has also helped me to understand the significance of market research. At the time of developing new products and launching the same, businesses are required to carry out in depth research regarding the need and demand of people in market. Further products should be designed in such a manner that they can meet the needs at their best. Thus, it can be stated that the entire business plan has developed me rationally and as made me more competent.
From the above business assignment report it can be concluded that the number of travellers, skiers and climbers in UK are increasing day by day. Therefore, Porttle which is a new bottle launched to carry hot or cool water will be very successful. It can be also concluded that the brand will not face any kind of intense competition in the market and will have direct competition with Thermos flask. On the other hand, it can be evaluated that the bottle will be promoted on both the platforms which is online and offline. In order to launch Porttle, partnership will be formed and there will be five partners who will have equal rights and duties. It can be concluded that, the travellers and people in middle income group will be mainly targeted by Porttle.
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