Dubai Rental Home Cinema Industry - Example

Business Plan A Table of Contents The Business Idea 3 Background of the Dubai (UAE) Rental Home Cinema Industry 3 Company Structure and Ownership 4 The Product 5 The Marketing Plan 6 Customer Segmentation 7 Market Research 7 Marketing Mix 8 Sales and Distribution 10 Competitors 10 Customers 11 Financial Plan 12 References 15 The Business Idea With regard to the present day scenario, businesses have seen immense growth in various sectors of the world owing to the advancement of technology along with the aspect globalisation. Along with the growth and advancement of numerous business sectors, the threats and the barriers of entering into any competitive industry for new companies is quite high which further hinders the plans for initiating a new business. However, despite all these problems, people emerge with new business ideas where the aspect of sustainability is quite apparent. In this regard, the idea for initiating a rental home cinema business is deemed to be quite a good prospect. Similar to that to any other business sector, the aspect of rapid increasing competition is quite apparent in this particular industry sector as the number of players in the industry is fast increasing. However, since this particular business idea is not quite widespread, entering in this particular industry will be quite beneficial indeed as it is in its growing stage. Contextually, taking these aspects into consideration, this particular report will include a business plan to initiate a business of rental home cinema in the Dubai (UAE) market. The plan will include all the predetermined stages of starting a business further assuring its long-term sustainability. Background of the Dubai (UAE) Rental Home Cinema Industry In relation to changing trend of the global business environment, it is vital to identify the dramatic changes in the habits or preferences of the customers in the rental home cinema industry. Notably, entertainment is one of the most important and usual parts of day-to-day life of humans. This aspect is also deemed to be apparent in the lifestyle of the people of Dubai (UAE) which further has become one of the vital reasons to choose this particular area as the target market to initiate the business of rental home cinema that is directly relevant to day-to-day entertainment. In keeping with the changing trends in the entertainment sector, people have been viewed to become greatly attracted towards renting home theatre (indoor or outdoor theatre) to have a better and convenient experience. This aspect is seen to have increased rapidly over the years where people intend to have their own home or outdoor theatre that is made from assembling various materials hired through rent. There are units which provide rental services of goods required for setting up an open outdoor or home theatre. In Dubai (UAE), owing to the increasing craze of the people towards this sort of theatre especially after the year 2011 with the release of Hollywood movies in this place, the number of service providers has also increased rapidly which further shows a scope for new players to enter into the market (Motivate Val Morgan, 2013). Hence, in accordance with this particular aspect, Dubai (UAE) is chosen as a target market to initiate the business. Company Structure and Ownership It is crucial to mention that ownership has a pivotal role for any particular venture to assure the deliverance of strategic decisions with regard to the managerial and operational functions of the business which in turn further assures sustainable position for the business in the market. Notably, it is quite crucial for a new business venture to ensure a strong establishment of its business structure in order to frame effective and noteworthy strategies further making the functions of business different and diverse in nature. The ownership body will also be liable to mitigate with the strategic as well as operational issues of the business that might emerge in various stages of conducting the operations (Mellor, 2009). Contextually, the structure of ownership of the proposed business of rental home cinema will be based on a sole proprietorship where the proprietor would be responsible for decision making along with assuring the investment for the business. Correspondingly, the company structure of the proposed rental home cinema would focus on informal orientation in the initial stages owing to the small number of staff that will be appointed for the initial stages of the business. However, when the business experiences growth in the later stage in the Dubai (UAE) market, the venture would implement matrix structure to have a better control along with management of the workforce. However, it will be crucial to mention that the business will employ or require employing a highly skilled and experienced set of engineers and staff who are well acquainted with the process of installation of home theatre (Spadaccini, 2007). The staff of the business will also include drivers to deliver the products to the customers and fix them as per their convenience and instructions. This will add to the service quality for the business unit. Their controlling as well as communication skills will also be the key criteria for staff recruitment to maintain a balance in the operational process of the business. The Product Product is among the core and the most vital aspect associated with any sort of business which further shapes the reputation for the company amid the customers. It is important to mention that in order to obtain and attract maximum number of customers in the start-up phase of the business, rental home cinema would intend to offer a range of quality and updated products to the customers in the market. The products of the company will be differentiated into three types based on the quality and the nature of the products to be offered to different types of customers. The three set of products that will be offered to the customers in this particular venture will include the groups i.e. bottom, middle and top. The top group of products will include items such as sofas, cinema screen, sound system along with latest movies collection and the projector. This particular set or group of products for the customers will also include a section of catering for the customers who are willing to get a systematic set of waiters for serving the food while enjoying movies in their rental home theatre. Another group of the products named the middle section would include products such as cinema chairs, screen, projector, latest movie collection and sound system among others. This group or the section of the products will also include a food menu that will be served to the customers in a buffet system. The last and the basic product set i.e. bottom group will include materials such as chairs, screen and sound system along with the projector and a collection of latest movies. Customers will be allowed to rent home cinema based on the three categories of products provided as per their budget and convenience. In order to differentiate the products from that of the competitors offering similar sort of products and services in the Dubai (UAE) market, the proposed venture will need to integrate the concept of ensuring quality of the products such as chairs, sofas and food offered to the customers on the basis of the three segregated packages. Moreover, the business will also need to assure that the technological products such as projector, screen and sound system should be latest and updated to provide a better experience to the ultimate customers. The Marketing Plan The plan for any particular business can be segregated into various categories which comprise the aspect of customer segmentation, market research along with marketing mix among others. Customer Segmentation Customer segmentation is a particular process that comprises segregating customers of the target market with regard to the needs and the demands of the customers along with devising a planning of products and services for the same accordingly (Sandhusen, 2000). Contextually, in this particular proposed business of rental home cinema in the area of the Dubai (UAE), the customers will include the entertainment and cinema loving people of the place who are fascinated towards a different kind of experience while watching movies (Columbus Enterprise Development Corporation, 2010). In this regard, the segmentation for the potential customers in this particular proposed business will include identifying the moviegoers which especially includes those who are quite passionate towards diversified range of cinema experience. This will also include the customers from all age groups. Likewise, the management of the business will emerge with business strategies accordingly to meet the expectations as well as demands of the customers in the target further ensuring their utmost loyalty towards the products and services offerings of the business. Market Research Notably, marketing research is an organised effort or process that is focused towards obtaining valuable information with regard to the choices and preferences of the target customers (Sandhusen, 2000). Contextually, in this business plan of initiating rental home cinema company in the region of the Dubai (UAE), the preferences along with the patterns of the demands of the customers with regard to home rental cinema will be analysed. In this context, it will be crucial to mention that the customers in this particular region of the world seek utmost variety in gaining getting entertained. Furthermore, it has also been noted that the customers of the Dubai (UAE) for the rental home cinema industry appreciate fast as well as efficient services, to gain a good experience. The customers also appreciate technologically updated products in any field which includes the rental sector as well. Additionally, the market research also depicted that people of all age group include among the moviegoers in Dubai (UAE) which will again be the potential target customers for the company offering rental home cinema (BBC, 2013). Marketing Mix This domain of marketing mainly concerns with strategizing the relevant 4P’s and 4C’s the business marketing. 4P’s Product: The product for the rental home cinema to be established in the Dubai (UAE) includes items such as sofas, sound system, and projector that people can use to rent and set their own indoor or outdoor theatre. Price: The pricing strategy of the products offered by the proposed business of rental home will be generic and will concentrate towards aligning with the purchasing and spending pattern of the potential or targeted customers in the Dubai (UAE) region. This particular approach will affirm that the company could be able to attract a large customer base. Promotion: It is one of the most important activities of any particular business irrespective of the industry it is operating in. Contextually, in this particular business of rental home cinema the products and services offered by the business will be promoted with the use of both print and digital media. The quality of the products and services set to be delivered by the business will be conveyed to the potential customers with the assistance of television advertisement along with hoardings and newspaper advertising among others. The promotion approach will implement and utilise social media for marketing the products and services while targeting the youth in the region of Dubai (UAE) (Shah & D’Souza, 2009). People: The product promotion for the rental home cinema will be intended towards enticing the potential customers on the grounds of their age, gender as well as the income level 4C’s Customer Services: One of the most prominent objectives of the business is to frame and deliver efficient services to the customers in Dubai (UAE). This aspect will include the deliverance of efficient as well as timely services to the customers further complying with their demands and preferences. This aspect will also be used as a strategy towards accomplishing the goal of the rental home cinema business. Cost: The products will be offered to the customers at quite a reasonable price and will be comparably less than that of the competitors. The business will follow a penetration pricing strategy wherein the initial phase will see the product prices to be affordable to low while with the increasing demands in the later stages, the prices would be augmented in a prudent manner to leverage the possible profitability. Convenience: The business will intend to deliver high quality and updated products to the customers along with rendering efficient services so that utmost convenience for the customers could be attained. Communication: The specialty and effectiveness of the products as well as services of the rental home cinema will be directly conveyed to the potential customers in Dubai (UAE) with the assistance of effective communication and advertising tools. Source: (Ehmke & et. al., n.d.) Sales and Distribution The sales and distribution of the products of the business will be mainly conducted from the outlet of the company in various regions of Dubai (UAE). It will be crucial to comprehend that in the initial stages of the business operations the products and services will be delivered for rent directly to the buyers. However, in the later stage, when the business begins to flourish in Dubai (UAE) market, the unit will provide services of home delivery to the customers to enhance the customer base and reach of the company. Furthermore, in the later stage of the business operations in Dubai (UAE) the company will also intend to expand its business all over the place through franchising (Gupta, 2009). Competitors As mentioned in the earlier section of the plan, like in any other industry, the competition is also deemed to be immense in the rental industry of the world. The growth of the renting sector has been quite impressive over the years, which further encourages new players to enter into the sector with their operations. Competition is considered to be among the major challenges for a new player when it enters into a new market or industry. Subsequently, the planned business of rental home cinema will also need to deal with a considerable level of rivalry when it enters the competitive market of Dubai (UAE). In this regard, the business unit will require evaluating the nature and working process along with the strengths and the weaknesses of the potential competitors to ensure long-term sustainability for its own business. A few of the major competitors for the rental home cinema in Dubai (UAE) market comprise ICON and KFTV among others (Wilmington Publishing & Information Ltd, 2014; ICON, n.d.). Customers It is believed that in order to ensure effective operations of business, companies will need to have a better comprehension about the nature and the preferences of the customers along with comprehending the level of satisfaction of the customers. This particular approach is quite vital to ensure smooth and sustainable operations of the company in particular region. Contextually, these aspects will also be relevant in the case of the proposed business of home rental cinema. Notably, for this particular business, the customers will be segmented on the basis of their lifestyle, behaviour, age along with the buying pattern of the customers. Correspondingly, for this particular business, the targeted customers will include people of all age group and gender in any part of Dubai (UAE). This is because of the fact that entertainment is for all and people are equally fascinated towards gaining unforgettable experiences for themselves in terms of entertainment. The business will also intend to target the customers especially including the youth who are deemed to be quite enthusiastic towards gaining noteworthy experiences in the domain of entertainment which they can be able to obtain from the home cinema rental products of the business venture. Correspondingly, the business will also target the potential targeted customers during the holidays where the craze for movies and home theatre is at the utmost level. Additionally, the company will also provide products that can be used to fix both indoor and outdoor cinema which will again attract the adventure loving customers (BBC, 2013). Financial Plan This is one of the most important parts of initiating any sort of business. The financial asset will ensure that the business is conducted in a smoother manner. In the initiation of any sort of business, analysing the financial needs as well as the sources for the same is quite vital. Contextually, in this particular business the financial needs are up to the primary level. Funds are among the most important aspects for initiating any sort of business. In this regard, since this particular business will be a sole proprietorship venture, personal capital will be the ultimate source of funding for the business. Moreover, loans from financial institutions of Dubai (UAE) at a particular rate of interest will also be the potential source of funding for the planned business venture of rental home cinema. These aspects are comprehensively presented in the tables hereunder. Start-up Funding Assets Liquidity and Capital Projected Profit and Loss Statement References BBC, 2013. United Arab Emirates Profile. Home. [Online] Available at: http://www.bbc.com/news/world-middle-east-14703998 [Accessed May 27, 2014]. Columbus Enterprise Development Corporation, 2010. Customer Segmentation. Home. [Online] Available at: http://www.cedcorp.com/ks/customerseg.pdf [Accessed May 27, 2014]. Ehmke, C. & et. al., No Date. Purdue Extension. Home. [Online] Available at: https://www.extension.purdue.edu/extmedia/ec/ec-730.pdf [Accessed May 27, 2014]. Gupta, S. L., 2009. Sales and Distribution Management. Excel Books India. ICON, No Date. Cameras. Home. [Online] Available at: http://www.iconfilmequiprental.com/filmequipmentrentaldubai/ [Accessed May 27, 2014]. Mellor, R. B., 2009. Entrepreneurship for Everyone: A Student Textbook. SAGE. Motivate Val Morgan, 2013. The Cinemagoer. Home. [Online] Available at: http://www.motivatevalmorgan.com/audiences/uae-cinemagoers/ [Accessed May 27, 2014]. Spadaccini, M., 2007. Business Structures: Forming a Corporation, LLC, Partnership, Or Sole Proprietorship. Entrepreneur Press. Shah, K., & D’Souza, A., 2009. Advertising n Promotion. Tata McGraw-Hill Education. Sandhusen, R. L., 2000. Marketing. Barrons Educational Series. Wilmington Publishing & Information Ltd, 2014. Equipment Rental in United Arab Emirates. Home. [Online] Available at: http://www.kftv.com/section/Equipment-Rental/country/United-Arab-Emirates [Accessed May 27, 2014]. Read More