Business Planning-The Twist Kettle - Assignment Example

1. Introduction 2. Analyses of product, people, marketing and finance elements covered by the business plan 2.1 Product 2.2 Marketing strategies 2.2.1 Pricing 2.2.2 Promotion 2.2.3 Strong customer relationship 2.2.4 Launching of the Twist Kettles 2.3 People 2.4 Finance 3. Analysis and evaluation of the strengths and weaknesses of the plan and suggestions as to how this could have been improved 4. Analysis and evaluation of the strengths and weaknesses of my contribution to the development of this plan 5. Main benefits that I drew from my participation in the module and the group business planning process 6. References 1. Introduction of the project This project was an idea that developed due to the wide spread demand , by consumers ,to have an eco-friendly kettle designed to meet the needs of the mainstream market, integrating successfully usability in a sustainable pattern. This was not to suggest that the kettles the current market was offering were not sustainable or ,in any way ,are lagging behind in as far as convenience and sustainability is concerned (Nielsen Report, 2011). Twist Kettle was a concept aimed at improving on what the market was already offering .This was developed after quite a number of researches had shown that the average consumer has environmental concerns, and therefore needed a gadget that is more environment friendly. One of the other main problems that most consumers had with the earlier kettles was that they were expensive and not very convenience to use (Green Gauge Report, 2002). Twist Kettle was basically designed to address these problems and introduce in the mainstream market a more improved kettle. The product is designed along the lines of eco products; preventing energy waste while at the same time is distinguished by the ease of use. According to Blackwell(2011),pricing is normally a very vital aspect of any product .The market price of the twist kettle makes it affordable for the average household, thus providing adding value. The project is extremely competitive and the commercialization process is expected to gain significant market share. This was after intensive market research was conducted investigating consumer attitudes to sustainable products with the intention of knowing what exactly consumers had in mind in regard to a sustainable kettle that could appeal to the wider market rather than just environmentalists. An aspect that Rogers (2003),recommended greatly in his written works about innovations. Before venturing in any business, in ones plan ,there must be a rationale to as why they have decided to venture to that said business(Cohen,2002). The group sat down and came up with a design that embodied sustainable features but within a conventional kettle form which the content of this report is about. 2. Analyses of product, people, marketing and finance elements covered by the business.  Here is a brief summary of some of the key elements in this Twist Kettle business plan devised by our group. It largely talks about our product which is the kettle and of what importance and benefits it has over what has been in the market. The whole concept of marketing it and the concerned team and not forgetting other closely related aspects like the financing .These are some of the key elements covered in the report. The report does not just cover that ,it goes ahead to basically show the linkages between the plan and the commercialization of the Twist Kettle .This project aimed at promoting an integrative understanding of the challenges and opportunities involved in business planning through practice. The marketing of twist kettle will be an out-of-the-box kind of thinking because the team has come up with some shrewd strategies to enable it to penetrate the mainstream market. This includes lower prices, proper customer service and a colourful launch of the product (Kitzi,2002). The group ensured that the product to be made will have the ability to carry at least 1.5 liters of water, to boil water, use a 2 kW or higher concealed heating element. The product will be designed for optimal efficiency to minimize power consumption. The product is a household kitchen appliance. To be placed on a kitchen work surface, the product surface must be able to wipe clean. Materials used in construction will be resistant to cleaning products. This product will be utilized between one to seven times per day, varying on size of household. The users/owner will be responsible for maintenance of the product. Like it was suggested by Slater(1998),lime scale build up from use will decrease the efficiency and reduce lifetime of the product. The product must be intended to work for at least 3 years. Increased usage will likely decrease product lifetime. Modular design of key components would allow easier repair and increase product life. The cost of production cannot be finalized awaiting after the design phases (Bigelow,2003). The promotion value of the product will be someplace between £30 and £50, therefore the developing cost must be limited between £7.50 and £12.50. A bill of materials will be assembled alongside the design to ensure costs are maintained. Manufacturing will use high volume methods; therefore it will require high initial set-up costs-an aspect that can never be ignored in the planning Pinson,2008). The product will be marketed amongst other kettles in quite a crowded market. The kettle will be valued to adjust in the center of the market estimating somewhere between £30 and £50. The product will be designed considering behavioral change methods to encourage users to maintain their kettle. The product will be intended to optimize its presentation competence to reduce exhausted energy in use. 2.1 Product The product to be introduced to the market is a twist kettle ,manufactured by our group. 2.2 Marketing strategies Some of the marketing strategies include fair pricing ,good customer care and doing serios product promotion. 2.2.1 Pricing In a bid to sell to many customers ,the price is very affordable .The Kettles will be sold for £45 2.2.2 Promotion Some of the methods of promotion include demonstrations in shopping malls , Radio broadcasts, newspapers, billboards will be used for the first six months to promote our product. 2.2.3 Strong customer relationship A very strong customer relationship has to be established to ensure that customers are treated with respect and this is also aimed at ensuring that there exist a mutual relationship between the two parties. 2.2.4 Launching of the Twist Kettles Launching of the kettle is of utmost importance. The group recommended that the Kettles should be launched in the conference room of the W hotel, which is in London. Journalists, retailers, marketing executives from several companies will be invited to grace the occasion. 2.3 People The people involved in this entire project will be required to be hard working and results oriented to ensure that the product becomes a success in the market. 2.4 Finance This proved to be abit of problem because many members in the group wanted it to be sold to a wider market but unfortunately due to a restricted budget, the kettles will only be sold in the U.K. 3. Analysis and evaluation of the strengths and weaknesses of the plan and suggestions as to how this could have been improved. Like any other man made product, the twist kettle has its own strengths and weaknesses and here are some of them. This section basically entails an analysis and evaluation of the strengths and weaknesses of the plan and suggestions and goes further to explain and recommend about how this can be improved. Firstly, this being a high tech machinery ,it is made in such away that it accelerates the functions of which it was made for and in the process increase efficiency in a major way (Bhide,1999). The product is advantageous in the sense that it was an amalgamation of ideas –in fact an improvement of what is already in the market – hence its appeal to more customers. Another strength is that it is a product that is aimed at making life better and its sustainable patterns eliminate the risk or probability of attracting legislative interventions. It being such a attractive innovation ,its sales coverage can easily be increased to boost turnover. Some of the few weaknesses it is likely to face may include intense competition in the market by stronger rivals. The group is likely to have a weak operational base owing to the fact that we will only be delivering services within the U.K and also the inability to exploit the fast growing markets world over. Another major weakness is lack of financial resources in comparison to competitors who are likely to be an established company with a strong presence in the international market. And last but not least, limited manpower resource compared to likely competitors. One of the only ways to improve this is by looking for more funds to enable the group afford more sophisticated technologies.  4. Analysis and evaluation of the strengths and weaknesses of my contribution to the development of this plan. Here is an analysis and evaluation of the strengths and weaknesses of my own contribution to the development of this plan. One major strength I came up with is that concerning the availability of the cheap materials for making the twist kettle-something other competitor may not be in a position to access-is something worth considering as a strength that the plan has over its competition. The main weakness I noted which most of the group members seemed to lack a solution for was the inability to sell the product to a wider market .This was due to the limited finances available to market the kettle internationally. 5. Main benefits that I drew from my participation in the module and the group business planning process . In the summary ,we have summarized some of the main benefits that we feel we have drawn from the participation in the module and the group business planning process, including academic and employability outcomes.The plan clearly brings out some of the academic outcomes gained by taking part in this business plan ,for instance, how to link theory to practice; employability outcomes like how to bridge the gap between ones study and their broader career development (Bangs,2002).The specific educational objective of this business plan and course in general is to help individuals on how to work through the business planning process and to develop a successful business plan by bringing the different aspects of business planning such as market opportunity, competition, business models, financing etc. into a unified whole.Th plan also highlighted the aspect of developing critical thinking through the development of a business plan and to reflect on the whole process, the team dynamics and their personal development. This business plan was also aimed at supporting an integrative consideration of some of the challenges and prospect concerned in business planning through practice. This detailed and concise report basically documents the journey that the project will take. This clearly provides an evaluation of research findings, design & development and the results of testing (Abrams,2003). The final proposed product will be represented in a proving principle prototype, which proves the individual functions of the various aspects of the design. This project aims to design a sustainable product that fulfils the needs of the wider market, although for most consumers sustainability is not at the top of their requirements when choosing a new kettle. This report shows how the group managed to balance the economic, social and environmental responsibility that the product to be designed will meet. References Abrams, R. M. (2003). The successful business plan: secrets and strategies. 4th edn. 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