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).
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
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.
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.
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.
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
|FACILITIES||QUALITY||UNIT PRICE||TOTAL COST
|Books of accounts||450|
The sources of money needed to purchase these facilities will be
Own advances 850000
Short term loan 1,280,000
Comprehensive Financial Plan and Break-Even Analysis
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
|Adding &weighing Machine||10,000|
|Electricity installation &reinforcement||21,700|
|Books of account||11,000|
Projected Cash flow
Estimation of Working Capital
|Cash at bank||680000000|
|Cash at hand||20000000|
|Work in progress||80000000|
|Goods available on sale||180000||225000||250000||265000||270000||27500||280000||280000||295000||310000||380880||380000|
|Cost of sale||40000||65001||70000||65000||60000||55000||30000||35000||20000||70000||75000||180000|
Proposed Income Statement (year 3)
|Goods available on sale||180000||215000||242000||264000||288000||310000||335000||36000||382000||405000||470000||510000|
|Cost of sale||20000||350000||42000||44000||48000||48000||50000||60000||62000||25000||50000||50000|
Proposed Proforma Income Statement (year 3-5)
Pre-operational cost 652100
Working capital 2840000
Fixed assets 212400
Bank overdraft 955060
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.
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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.