Structure of Outlet Business Plan - Assignment Example

?Business Plan After identifying a business opportunity among our fellow we decided to come up with business plan that would help us achieve our business objectives1. The plan presented by my team mainly outlined the main futures of our shop as the main business outlet. This was an important step since the proposed shop was going to be the point or channel through which we could market our products. In relation to this, a business plan should outline and discuss the shop or the outlet in various ways. The analysis of the shop from different perspectives captures the four P’s of a business2. Firstly, a business premises is a place and hence a physical location from where we distribute our products and meet with our customers. Secondly, through the shop we will be able to determine the appropriate prices for our commodities by analyzing the customer’s reactions. The shop will also enable us to distribute our products and hence the shop will symbolize our products. Finally, through the shop we will be able to carry out advertisement for our products. After analyzing the four P’s for our Students Vault, the second step was to define our mission and vision statements based on our goals and future prospects. The main customers for our business were the university students and therefore our mission and visions had to be in relation to their needs. Our mission also had to incorporate the dynamic nature of their needs and to be flexible enough to include any future needs for a change. As a business team, our mission for venturing into the business was to supply university students with all their stationary and appliances needs for a successful university life. To realize our mission we had to define our vision in the business through a vision statement. A vision statement is a statement is a declaration of anticipations relating to growth and expansion of the business within a given period. In the project, we settled for expansion of our business within the United Kingdom and the diversification of our products as our vision statement3. The vision and mission statement of a business summarizes the four P’s of the business in an implicit way. Through these statements, a business team gives its intentions or plans on achieving the four P’s of a business. The product is an important part of any business, through the product a business is able to realize and launch its competence in the market4. Due to the importance attached to the product, we had to consider our product as an important part of the business plan. Stationery and books were our main products. Our business also dealt with accommodation equipment, electronic devises and catering equipment. These products were intended to fulfill our mission of supplying university students with all their requirements for a comfortable university life. After defining our product, the second important part was the definition of the place or location of our business. Our business team settled for Manchester city as the first target or business location. Unlike other potential locations, Manchester city had a high student’s population due to the availability of many colleges and universities within the city. The city also lacked business dealing with stationeries and students necessities and this implied that our bushiness was unique to the city. Our business plans therefore capitalized on the uniqueness of our business as the basis for our competence. Manchester city also served as an ideal city and therefore establishing our business in the city enabled us to determine the response of other potential cities towards our business. The price of a commodity determines the success of the commodity in an ideal market5. This implies that in the business plan we had to settle at an appropriate price in order to attract and retain our customers. Students were our target customer and therefore our prices had to be considerate of their financial status and capabilities. In the plan, we settled for a competitive price for all our products. This implies that our prices were low enough to accommodate the student’s financial capabilities and at the same time, enough to cover our production cost. A competitive price is of great importance to a business since it determines its promotion strategies. Settling for a competitive price for our commodities was therefore an important part in launching promotion campaigns for our products. The price of a commodity determines its competence in the competitive market however, the price of a commodity is not sufficient in attracting and retaining customers in a business. This implies that a business requires additional promotion strategies to compliment the price. In our business plan, we considered this by creating our promotion strategy as part of our mission and vision6. Product and business promotion involves popularizing a business together with its products among the potential customers. Promotion process therefore involves creating and giving information about a product to potential and existing customers. The process also involves reminding the customers of the existence of a particular products and its uniqueness. Due to the importance of product promotion in business, different businesses need to settle for promotion methods that best fits their products7. Considering our target customers, we had to choose a promotion method that is appropriate to them and a promotion method that best defines our business through our objectives. The first strategy was giving of discount to our customers. This strategy was aimed at acquiring new customers and enhancing customer loyalty. The strategy was also intended to increase our sales volume since the discount was given based on volume bought by customers. In our store, we dealt with technical commodities such as laptops and computers. Consumers of such commodities require assurance and after sales support unlike consumer products customers. We therefore decided to sell such commodities on a contract basis. Therefore, we had to do a follow-up on the performance of a laptop or a computer and give technical assistance to the customers whenever called upon. We also decided to have a reward scheme for our customers especially the regular customers. In this scheme, we delegated Tuesday as a special offer day. On this day, electronic products were sold at 10% discount to all customers. This move was also aimed at creating a purchasing habit among our customers. Specifically we wanted to concentrate sale of electronics to a particular day of the week to enable our sales team to offer the best possible care to the customers. Tuesday was also an appropriate day to sell electronic equipment due to the availability of technical staff who could offer the necessary advice to our customers. Promotion of a commodity involves establishing features that increase the competence of a product. The importance of promoting a commodity is only realized through sales this implies that promotion is an incomplete strategy without sales. To realize sales there is need to inform the potential and existing customers on the special features in our commodities. Advertising is therefore a form of communication between the business and the customers that is aimed creating or increasing sales. Through advertisement, a business informs the potential customers of the existence of a particular commodity that they need8. Advertisements also address the existing customer by giving them information concerning the improvements on an existing product. Advertisement also reminds the existing customers on the availability of a particular product and the reasons they should continue buying the product. Considering our target customers, we had to select advertisement channels that are appropriate to the students. We decided to launch our advertisements using poster, the posters were distributed in all universities across the city. We also passed information about our business to the customers through leaflets and brochures. Considering the technological advancements among university students, our group decided to capitalize on Facebook and website shop as our main advertisement media. The competitiveness in the market was therefore the main reason for considering advertisement as a major part of our business plan. Our target market was a centralized market due to the concentration of many universities in the town. Initially the market was an attractive market to its centralized nature and availability of customers. The availability of huge malls and store supplying students with their requirements implies the past nature of the market. To penetrate such market is not an easy task and hence the uses of advertisement and sale promotion as a major aspect of our business plan. Through advertisement, we are assured of a brighter future for our business. Bibliography Bennett, J. “Multinational corporation, social Responsibility, and conflict.” Journal of International affairs. Vol. 2. 2002. Bond, H, Social psychology across cultures: Analysis and perspectives. London: Harvester Wheatsheaf, 1993. Graydon, S, "Made You Look - How Advertising Works and Why You Should Know", Toronto: Annick Press, 2003. Greiner, L. Evolution, and revolution as organizations grow. Harvard Business Review. July-August, 37-47. 1972. Hirshleifer, J. Glazer, A. & Hirshleifer, D. Price theory, and applications: Decisions, markets, and information. London: Cambridge University Press. 2005. Kalb, I. structuring your business for success. New York: K & A press, 1993. Prentice, D. Corporate Personality in the 20th Century. Oxford: Hart Publishing, 1998. Lawrence, A. T., Weber, J., Post, J. E. Business, and society: Stakeholders, ethics, public policy. 11th Edition. Boston: McGraw-Hill, Irwin. 2005. Read More