F-Smart Key Company

Introduction of F-Smart Key Idea

The business will be a startup business targeting both local and international markets. The business will be dealing with the key holders’ product line. It will be a limited company type of business. The address of the business will be 150-404500-Canary Wharf, United Kingdom. The smart key holder is a compact and essential key holder resembling the size of a Swiss army knife that will reduce the amount of space the keys takes in an individual’s pocket. Instead of too much rattling and jingling, in one’s pocket, the key holder will keep the keys composed and aligned, permitting one to flip the key that is required for a particular door. Moreover, the key holder has been designed in a way that it has other purposes, like bearing an opener that contains a loop on the other end for attaching thicker keys. In addition, the f-smart key also has an in-built tracker tile that can help one find his or her keys since the tile contains a battery life of about five months and will automatically send a notification to an individual’s phone when the f smart key is far away.

Unique selling point

. There will be two main categories of customer’s for the smart key, i.e. domestic customer and institutional customers who will use the smart keys for their safety purpose. Through competition with other similar business, the company intends to attain a market share of 40%. A much broader appeal exists during high school and university admissions when most students require the smart keys for various security purposes. Besides new and existing organization have shown a great intention on the smart key. These are the occasions when great sales will be realized (Grönroos, 2012).

Marketing Mix


After an intense investigation around the area, the company realized that the targeted group would need an efficient smart key holder that will enable them to organize their keys effectively to avoid instances of key getting lost. Hence the organization will majorly venture on the smart key holder. The product is fast selling since it permits placing five keys on top of each stud. Moreover, the smart keys have unique spacers that allow one to compensate for various key sizes (Goi, 2009).


The company will ensure that the products are sold both online and offline where both the local and international buyers can access and order the smart keys. Moreover, the organization will use online distributors to facilitate faster strategic placement of the smart key (Brownlie & Saren, 2014). Most of the organizations in the same business have been reluctant to integrate online sale hence the F-smart key wishes to be indifferent

Pricing Strategy

The company will be very wise not to sell at very low prices or high prices when pricing the products. F-smart key solutions will be keen to ensure that fellow retailers and wholesalers do not complain about offering prices much lower than the wholesalers and the retailers because the business will be buying from the cheapest source. So the introductory prices will be slightly lower than the coverage market price to popularize the business thus customers oriented. The prices of the smart key are sensitive hence charging a slightly lower price below the competitors for a start will lead to increased market share for the company.


To create a large market coverage awareness, F-smart key solutions will initiate various promotional strategies like both online and offline advertisement, television and newspapers and direct marketing mailshots. The best time for the promotional activities will be during school and university admissions and during the launch of new organizations and companies both international and local wise. Various components of the smart key should be made aware during promotion like having a tile tracker built on it.

Market Segmentation, Targeting, and Positioning


Through segmentation, the organization will be able to identify various market niches that will specify the specific needs of customers and also will help the organization in locating new customers. The f-smart key solution will carry out various segmentation strategies to reach out on a wide range of customers. They include; demographic segmentation, psychographic, values, beliefs, lifestyle, and behavior (Chaston, 2014).


The company will need to evaluate the potentiality of each of the market segments through criteria size of the smart keys that requires the market to be large enough to accommodate segmentation (Chaston, 2014).Moreover; anticipated profits must be more than cost and marking each of the marketing segments to be accessible.


F-smart key solutions company will need the incorporation of positioning maps to illustrate the market overview (Chaston, 2014). The company can design big and efficient key holders, small key holders and less expensive, smart key having tile and tracker and so on. This will enable the organization to reach every target markets pocket. For instance, the smart key having the tile trackers which connects to one’s phone blur tooth to ensure that, the last location is identified.

SWOT Analysis


The f-smart key organization has a strength of offering a unique product in the market with is much differentiated from other competitors. Besides, the smart key has many features that come with various benefits like trackers and tiles that will help in the location of the key is lost (Hill & Westbrook, 2014).


The organization faces a weakness of budgetary limitation and how to attract skilled personnel since the organization will be a new venture


The organization will be opportunistic to introduce an online selling platform that most similar organizations have been reluctant to introduce. Besides, the organization will offer more improved quality and efficient smart key with various features.


The threat will exist since similar businesses are already in existence. However, through in-depth strategic planning, the organization is anticipating to control a significant market share.

Competitor Analysis

The company’s competitors are the existing businesses which comprise both wholesalers and retailers who have already established a market and also those willing to enter the United Kingdom market. These are wholesalers, retailers and wayside shops and supermarkets. The organization will overcome and outweigh its competitors through the use of Bowman’s strategic clock (Farquhar & Meidan, 2010).  The organization will gain insight into how its smart keys should be positioned to give it the most competitive advantage in the market. Moreover, the organization will have a variety of alternatives on positioning its smart keys which will be based on two dimensions; that will be the perceived value of the keys and the price (Burd & Cherington, 2010).  To have a competitive positioning that outplays the competitors, the organization will need the differentiated strategy which will offer the customers the highest level of perceived added value (Farquhar & Meidan, 2010).


Financial Analysis will enable the proprietor to know the effects of every transaction that will be taking place in the business. It will show the increments in profit responsible for the growth and survival of the business. The pre-operational cost will be calculated to show the initial costs that will be incurred before starting the business. A proforma income statement will be calculated to be used as a budgeting tool. A proforma balance sheet will also be prepared to indicate how liabilities and network of the business are distributed, and the cash flow will be prepared.

Startup Cost

The planned business will be started with little capital from the company’s member’s advances and a borrowed loan from the bank.  For the business to be known,  various costs will be channel to cover the different methods that will be used to make potential customers aware of the organization  through, advertising through various radio stations, televisions, newspaper and posters thus each group of people will get accessed to the advertisements, i.e. the service provided, Sweet talking-using a polite language when handling customers in order to make them buy the products/ services provided by  the company. Promotions, e.g. sales promotion. Thus making customers aware of the service provided. Providing after sales services, gift/free samples. Banner. Hanging a banner on the premises where the business will be situated and many more. Recruitment will be either internal or external depending on the skills required. If the required person is trained, then there is no need for external recruitment. Training will not be necessary as the business will employ already trained manpower to cut operating expenses but if needs arise the company will do it through seminars and attending of shows

Financial Forecast and Break-Even Analysis



Land 1acre 250,000 250,000
Premises   280,000 280,000
Website cost     63,000
Books of accounts     450
Pick up 2 200,000 400,000
Counter/shelves     7,000
Personnel     4,000
Other costs     4,000
Promotional cost     8,000
Adding machine 3 1,000 3,000
labour     1,900
    TOTAL 1,021,350


The sources of money needed to purchase these facilities will be

Own advances                                      850000

Short term loan                                      1,280,000

Total                                                        2,130,000

Comprehensive Financial Plan and Break-Even Analysis

Pre-Operational Costs

It refers to the money spent before the operating of the business. It refers to all costs to be incurred before the business starts operating

Licenses 40,000
Adding &weighing Machine 10,000
fittings 30,400
Electricity installation &reinforcement 21,700
Others cost 3,000
Shelves 14,000
Shopping 2,000
Books of account 11,000
Pick up 400,000
Receipt 300
Rubber stamps 2,000



S Jan Feb Mar April May Jun Jul Aug Sept Oct Nov Dec
Loan 150000 10000 20000 16000 0
Credit sale 50000 25000 30000 420000 35000 26000 18000 22000 0
Other sales 65000 140000 30000 150000 42000 23000 19000 1000 20000 18000 14700
Cash sale 90600 10000 30000 200000 200000 20700 320000 200000 190000 925000 29000 12000
Total receipt 3555600 265000 360000 25700 252000 250000 374000 236000 208000 1505000 308010 267000
Creditors 20000 33000 15000 30000 40000
Purchases 80000 85000 90000 85000 70000 65000 60000 45000 35000 50000 90000 85000
Maintenance 2000 3000 4000 6000 5000
Electricity 2500 3000 6000 4500 5500 3980 4560 2143 3546 4896 3120 5000
Water bill 40000 2890 3000 5423 4200 4000 3902 4300 4500 3900 3990 3400
Repair 8000 1400 399 2000 4000 5000 2800 200 2020
Transport 8000 4500 5000 3000 3800 4800 4000 6000 7000 5500 6000 5500
Loan paid 8800 8800 8800 8800 8800 8800 8800 8800        
Total outflow 117600 146000 258098 127123 105200 112980 85962 85313        
Surplus 238000 119000 101902 129877 146800 137020 29000 151687        

Projected Cash flow


Estimation of Working Capital

Cash at bank 680000000
Cash at hand 20000000
Stock 2060000000
Work in progress 80000000
Total 2840000



  Jan Feb Mar April May Jun July Aug Sep Oct Nov Dec
Sales 100000 12000 130000 14000 150000 160000 17000 180000 190000 100000 200000 210000
Opening stock 100000 140000 160000 180000 200000 210000 220000 230000 250000 260000 270000 290000
Purchases 800000 85000 90000 85000 70000 65000 60000 50000 45000 35000 40000 90000
Goods available on sale 180000 225000 250000 265000 270000 27500 280000 280000 295000 310000 380880 380000
Closing stock 140000 160000 180000 200000 210000 220000 23000 250000 260000 270000 290000 31000
Cost of sale 40000 65001 70000 65000 60000 55000 30000 35000 20000 70000 75000 180000
Gross profit 60000 55000 60000 75000 900000 105000 120000 150000 150000 75000 75000 180000
Expenses 45000 35750 35400 35250 35180 35650 35000 35485 35150 34250 35000 35150
Net profit 14050 19250 24000 39750 54820 69350 84150 114515 119850 40150 145000 831285

Proposed Income Statement (year 3)


  Jan Feb Mar Apri May Jun July Aug Sep Oct Nov Dec
Sales 1500000 155000 160000 170000 1750000 180000 188000 192000 197000 194000 195000 200000
Opening stock 1200000 1600000 180000 200000 220000 240000 260000 280000 30000 320000 380000 420000
Purchases 600000 550000 620000 640000 680000 700000 750000 80000 82000 85000 900000 900000
Goods available on sale 180000 215000 242000 264000 288000 310000 335000 36000 382000 405000 470000 510000
Closing stock 1600000 1800000 200000 220000 240000 2600000 280000 300000 320000 380000 420000 460000
Cost of sale 20000 350000 42000 44000 48000 48000 50000 60000 62000 25000 50000 50000
Gross profit 13000 12000 118000 126000 127000 13000 13000 128000 130000 169000 145000 150000
Expenses 44450 34650 34220 34930 3590 35600 35100 33180 34150 34830 34950 35650
Net profit 8550 85350 83780 91070 91100 94400 94900 94220 95850 134170 11080 114350

Proposed Proforma Income Statement (year 3-5)



FINANCING                                                 AMOUNT

Pre-operational cost                                        652100

Working capital                                              2840000

Fixed assets                                                     212400

Total                                                                820800


PROPOSED                           CAPITALIZATION

Capital                                     300000

Bank overdraft                        955060

Creditors                                 955060

TOTAL                                   2210120



In conclusion, the smart key idea is no doubt a venture that will have lifeblood in the future. Through financial, breakeven and SWOT analysis the business idea should be integrated to enable the organization to serve the vast majority of customers both local and international. Moreover, offering differentiated smart keys with various features will no doubt make the organization to thrive in the competitive market and to command a significant market share.



Brownlie, D., & Saren, M. (2014). The four Ps of the marketing concept: prescriptive, polemical, permanent and problematical. European Journal of Marketing, 26(4), 34-47.

Burd, H. A., & Cherington, P. T. (2010). Cooperative Retailing as a Competitor in the Consumer Market. Journal of Marketing, 3(2), 215. doi:10.2307/1246439

Chaston, I. (2014). Market positioning. Small Business Marketing, 82-100. doi:10.1007/978-1-137-32601-0_5

Clark, L. (2016). Marketing Courses and Marketing Research. Journal of Marketing, 12(4), 488. doi:10.2307/1246631

Farquhar, J. D., & Meidan, A. (2010). Communicating in the marketing of financial services. Marketing Financial Services, 319-350. doi:10.1007/978-1-349-92401-1_12

Goi, C. L. (2009). A review of the marketing mix: 4Ps or More?. International journal of marketing studies, 1(1), 2.

Grönroos, C. (2012). Marketing redefined. Management Decision, 28(8).

Hill, T., & Westbrook, R. (2014). SWOT analysis: it’s time for a product recall. Long range planning, 30(1), 46-52.