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Business Plan for Innovation Guaranteed - Case Study Example

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The paper "Business Plan for Innovation Guaranteed" is a perfect example of a case study on business. The author argues in a well-organized manner that the car market in Australia has undergone changes with the growth and development of new cars and accessories which helps to maximize the satisfaction level of customers…
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Extract of sample "Business Plan for Innovation Guaranteed"

Executive Summary Innovation Guaranteed has a strong opportunity to use the different opportunity which the car industry provides by developing a seat cover which acts as a massager and ensures that the comfort of driving enhances. The organization based on the product characteristics and strengths has focused on building their products and targets all type of customers. The product which Innovation Guaranteed is an innovative seat cover which will look to enhance customer experience of driving by having a massager along with it will look to attract people of all type who have a car. Further, the organization has also developed the seat cover of different shapes and sizes depending on the different car available in the market which will thereby help to attract people from all segment and type. Innovation Guaranteed further looks to ensure that the customers who are aimed at are the one who is looking to purchase a new car or has a car. Further, the organization has looked towards working on the different parameters and has looked towards developing the product which will help to fit every car available in the market. Innovation Guaranteed has further looked towards ensuring that the promotional strategy inclines with their product and has aimed to highlight their product characteristics to the customers. The financials also depict that Innovation Guaranteed aims at having a strong financial figures and thereby has ensured that the overall productivity is maximized. Thus, the manner in which Innovation Guaranteed has aimed at developing the product has ensured that the overall satisfaction level and the acceptance of product increase within the customer. This will help to bring the required transformation and will help Innovation Guaranteed to develop a niche market through which their market improves. Table of Contents 1.0. Introduction 3 2.0. Company Description 3 3.0. Strategy Focus & Plan 4 4.0 Situational Analysis 6 5.0 Product Market Forces 10 6.0. Market Program 13 7.0. Market Implementation Analysis 15 8.0. Financial Analysis 15 9.0 Implementation Strategy 19 10.0. Evaluation & Control 20 11.0. Conclusion 21 12.0. References 22 1.0. Introduction The car market in Australia has undergone changes with the growth and development of new cars and accessories which helps to maximize the satisfaction level of customer. The increase in competition is so stiff that the time has come when organizations have to look at delivering new products and services which are innovative and provides the customer with totally different experiences. Organizations which are able to bring the required transformation are able to visualize the changes and are able to increase the overall satisfaction level of customers. This report thereby looks to present the analysis for a company named Innovation Guaranteed which is looking to provide new products to the customers. The company has looked at designing seat cover for the different models of car available in the market where they look to use technology which will ensure that the seat which is used will have features to relax the customer and will be developed on the technology of acupressure. Along with it the seat will also have an option of using the vibrator which will help to relax the different muscle and will provide an enhancing experience to customers looking to drive the vehicle. The report thereby looks to present a complete description of the marketing plan which includes a situational analysis, the financial analysis, the market analysis and a complete description of the both the internal and external factors which will help to ensure that the product becomes successful and the new business venture provides the required return the organization is aiming at. 2.0. Company Description Innovation Guaranteed which is looking to explore a new opportunity in the car industry aims to provide the customers with new product which will help to enhance their experience of driving. The company has looked at designing seat cover for the different models of car available in the market where they look to use technology which will ensure that the seat which is used will have features to relax the customer and will be developed on the technology of acupressure. Along with it the seat will also have an option of using the vibrator which will help to relax the different muscle and will provide an enhancing experience to customers looking to drive the vehicle. This will help Innovation Guaranteed to work as a monopoly player in the market because a product which aims at maximizing the experience of the customer and ensuring that the customer doesn’t gets tired while driving hasn’t been developed. The fact that the product will look towards acting as a point where people indulge in different forms of massage will act as a point through which customers satisfaction will be maximized and will help to work towards a niche market by supplying and delivering a product which is different from the ones available in the market. 3.0. Strategy Focus & Plan This looks towards examining the three important facets and aspects through which Innovation Guaranteed will be able to further improve their products and is as 3.1. Mission Statement The company looks to work on the fundamentals of enhancing customer experience by developing products and services which increases the joy of driving and makes more and more people to use the services. The company based on their offering has developed their mission statement through which they look to accomplish the goals and look to improve the overall experience for the customers. 3.2. Goal Innovation Guaranteed focuses on delivering a product which provides hybrid advantage to the user and supplements the main product which the user has. The focus is to ensure that the organization is able to sell 1 million seat covers within a span of 2 years and it is expected that with growing popularity of the product the sell is expected to be accomplished before the stated time. 3.3. Core Competency & Sustainable Competitive Advantage Innovation Guaranteed is working towards developing a model which is better sustainable and will provide an opportunity to provide customers some extra facilities along with the car. The development of technology has enabled Innovation Guaranteed to bring the required changes through increased investment which will thereby have an impact on the different products being offered and will help to multiply the overall satisfaction level for the customers (Bateman & Snell, 2004). To ensure the success of its product thorough research has been conducted and a prototype model for the seat has been tested against different level of customer satisfaction to find out the manner in which it will satisfy the need of the market. This has been facilitated by the fact that the car industry is growing as the increase in the sale of car will ensure better sales and the company looks to have future tie ups with different car manufacturer which will improve the level of penetration and help to increase the satisfaction level by being able to cater to a larger population (Chew, Cheng & Petrovic-Lazarevic, 2006). 4.0 Situational Analysis The success of Innovation Guaranteed will on the large extent depend on their internal environment and the manner in which the organization is able to use its resources to create an urge among the customers to purchase a product which will multiply their experience of driving. To identify the manner in which Innovation Guaranteed will be benefitted a SWOT analysis is conducted which will help to find out the manner in which the internal and external factors have an effect on the performance. 4.1. SWOT Analysis This aspect highlights both the internal and external factors and resources which will have a role in determining the success of Innovation Guaranteed and has a role in decision making and is as (Bateman & Snell, 2004) Internal Factors Strengths Weaknesses Management Has a strong management team capable of performing different roles Huge size of management might have an effect on decision making as the process would be delayed Offering Product aimed at maximizing customer pleasure and experience Increase expense for the customers as the product has been priced high Marketing Distribution of products through different stores and mediums Increased cost of using the established network Personnel Have employees with the required knowledge about the products Problems will increase if the experienced employees leave the company Finance Expected high income due to growth in car industry Increased risk as customer might not accept the product Manufacturing High quality products which are durable and consistent Fluctuations in the prices of raw materials R&D Increased R&D to develop new and better products Table 1: SWOT Analysis through Internal factors External Factors Opportunities Threats Consumer/social Stability in the car market is highly projected Changes in other factors external to the business might hamper the business prospects Competitive Differentiated product will give the product a niche market to sell their product Other products with superior technology might be launched thereby affecteing the sale Technological Continuous break through R&D ensured better technological upgradation Economic Increasing consumer income provides an opportunity to tap the market Customers looking for other alternatives due to high disposable income Legal/Regulatory Regulation ensures no exploitation Table 2: SWOT Analysis through External Factors Strengths: •New Product •Increase in Car Market as sales have increased •Increase in disposable income Opportunities: •Consumer demand for better products which multiplies experience •Improved technology •Growing in urban youth Weaknesses: •Limited client base •Limited market knowledge Threats: •New manufacturers looking to work on similar lines •Growth in better and sophisticated product Table 3: SWOT Analysis Matrix 4.2. Industry Analysis Innovation Guaranteed through its differentiated product and technology will be able to create the competitive edge through which business will grow. For example, having a different product like a seat cover which acts as a massager and uses technology from acupressure will ensure customer acceptance. This will further provide an opportunity before Innovation Guaranteed to enter the new markets especially the developing and emerging countries as those countries have an increased demand for such products (Chrisan, 2001). The fact that the product is new to the industry and is different from all other products it will thereby help to create a niche market and will provide an opportunity through which different section of the society and customers can be attracted. 4.3. Company Analysis Innovation Guaranteed is a new company which has aimed towards developing a product which is different from other products in the market. The product being offered by the company is a seat cover which acts as a massager as well. The company has looked at designing seat cover for the different models of car available in the market where they look to use technology which will ensure that the seat which is used will have features to relax the customer and will be developed on the technology of acupressure. Along with it the seat will also have an option of using the vibrator which will help to relax the different muscle and will provide an enhancing experience to customers looking to drive the vehicle. This is a new product which is being launched in the market and will thereby help to develop a niche market for their products and will help to establish a framework through which more and more customers can be attracted towards the product (Chrisan, 2001). 4.4. Customer Analysis Innovation Guaranteed has identified their customers to be people who have a car and also people who are looking to purchase a new one. Since, the product which Innovation Guaranteed is an innovative seat cover which will look to enhance customer experience of driving by having a massager along with it will look to attract people of all type who have a car. Further, the organization has also developed the seat cover of different shapes and sizes depending on the different car available in the market which will thereby help to attract people from all segment and type. The customer analysis further shows that Innovation Guaranteed is looking at all type of people irrespective of ages, incomes, geographical locations, and social and cultural statuses so that all type of customers are attracted. This will also help to focus on the individual needs of the customers and will provide an opportunity where the strategies are directed and moulded according to the requirements of the customers and looks towards achieving the desired outcome. The strategy will thereby focus on all type of customers and will help to ensure a better penetration in the market. 5.0 Product Market Forces This section concentrates on the deeper aspects and looks to analyze the market forces from the perspective of strategic focus; marketing goals and objectives; target market; and the company position in the market. 5.1. Developing a Strategic Focus Innovation Guaranteed has focused on a differentiation strategy by developing a product which is different from others available in the market will act as a major source of penetration in the market. The company looks to focus on the product characteristics to give it a competitive edge against its competitors. . To ensure the success of its product thorough research has been conducted and a prototype model for the seat has been tested against different level of customer satisfaction to find out the manner in which it will satisfy the need of the market. This has been facilitated by the fact that the car industry is growing as the increase in the sale of car will ensure better sales and the company looks to have future tie ups with different car manufacturer which will improve the level of penetration and help to increase the satisfaction level by being able to cater to a larger population. The cost of production for the product will be larger due to the fact that the product is different and since producing in such large batches will ensure that the total cost of production remains low and will thereby ensure better penetration and chances of earning more profits in the market. 5.2. Marketing Goals & Objectives Innovation Guaranteed will be able to meet the industry demand and needs as the growth in the number of cars and the strengthening of the car industry provides an opportunity for increased business of seat covers which acts as a massager as well. The perceived sense of the customer who looks at increasing the consumption of cars will thereby witness a growth in the business as the increase in the population will provide an opportunity through which the needs can be easily met. Innovation Guaranteed aims at producing quality products and at no point looks to compromise quality which will help to create a positive impression on the customers and will help to make people loyal towards the products. The organization further stresses on the need of developing the business model through which they are able to rely on the different areas which will help them to provide the customers with something extra and will thereby be able to attract a large chunk of the people towards the product or services 5.3. Target Market The product developed by Innovation Guaranteed is aimed at all customers who have a car or are looking to purchase a car shortly. Further, the product has been designed and developed in different shapes and sizes based on the different seats which the different manufacturers of cars have in their different models. This will thereby ensure that the product looks at attracting all type of people purchasing or looking to purchase the different type or variant of car. Further, the target market for Innovation Guaranteed is also very niche and it will mostly attract customers who have spent a higher sum while purchasing the car as those category of people will look at higher comfort level. This will help to attract people especially belonging at the higher segment of the population having a higher disposable income and looks to purchase product which will maximize the satisfaction level. This section of the society will be considered as the primary customers whereas the secondary customer will be the one who purchases car which are less costly but still looks to increase their overall experience. The customer analysis further shows that Innovation Guaranteed is looking at all type of people irrespective of ages, incomes, geographical locations, and social and cultural statuses so that all type of customers are attracted. This will also help to focus on the individual needs of the customers and will provide an opportunity where the strategies are directed and moulded according to the requirements of the customers and looks towards achieving the desired outcome. The strategy will thereby focus on all type of customers and will help to ensure a better penetration in the market. This thereby will ensure that Innovation Guaranteed is able to target the correct section of the society as the customer base the organization is looking is large and will thereby help to increase their reach attract more people towards the product. 5.4. Company Position in the Market Innovation Guaranteed is positioned as a distinct producer supplying a differentiated product to its customers and the increase in the demand for car and the presence of car in the market provides an opportunity through which additional products can be sold (Cateora, Mary & Graham, 2009). Further, the product has been positioned as a niche market and will thereby result in creating a distinct position in the industry. 6.0. Market Program This aspect looks into the marketing mix elements which will help them to develop strategies through which the product becomes acceptable among the people 6.1. Product Strategy Innovation Guaranteed has developed a product which is different from other in the market and has transformed the manner in which the industry works. The company has looked at designing seat cover for the different models of car available in the market where they look to use technology which will ensure that the seat which is used will have features to relax the customer and will be developed on the technology of acupressure (Chen, 2003). Along with it the seat will also have an option of using the vibrator which will help to relax the different muscle and will provide an enhancing experience to customers looking to drive the vehicle. This thereby helps to provide different purposes like an option to seat and at the same time ensures that the customer doesn’t get tired while driving as the seat has the massager attached to it. 6.2. Pricing Strategy Innovation Guaranteed has ensured that the price their product in such a manner that it remains within the reach of each customer and still doesn’t look like other seat covers available in the market. The pricing for the product is higher compared to the normal seats which is available in the market. The pricing strategy has been determined on the different function that the product provides and has aimed at justifying the strategy which has been adopted to determine the price which will be charged (Chen, 2003). The organization has further looked towards ensuring that the pricing mechanism adopted is a premium pricing pmechanism and will thereby helo to ensure that they are able to attract more and more people towards the product by attracting the higher end customers. 6.3. Location Service Innovation Guaranteed at the present moment looks to establish its business in Australia and based on the popularity of the product and demand looks to further improve the sale of their products by concentrating on other regions. While looking to perform in Australia Innovation Guaranteed looks to use the already established supplier network which is used by other manufacturers and also looks to have their exclusive stores (Brassington and Pettitt, 2001). The locational strategy has also looked at ensuring that the different regions based on location which contributes towards the long term prospect of the business is better considered 6.4. Promotion Strategy Innovation Guaranteed looks to promote its product based on the features and qualities which the product looks to offer to its user. The promotional strategy has been developed on the backdrop that the organization will highlight the consumers the manner in which using their seat cover can enhance their experience of driving and provide different benefits to the customers (Brassington and Pettitt, 2001). The promotional strategy also proposes the use of different media like print, audio, visual and so on so that maximum market penetration becomes possible and the organization is able to attract the targeted customers and ensure that long term sustainability of the product 7.0. Market Implementation Analysis Innovation Guaranteed main focus is to attract customers towards the product as the product provided by Innovation Guaranteed is new and untested by others in the market. The company has further aimed at exploring the market of Australia because of the different opportunities that the Australian market presents. To develop the business process Innovation Guaranteed aims to use the established network of suppliers and aims to develop a mechanism through which the organization will be able to supply the products at every nook and corner of the country. Innovation Guaranteed has also ensured that the human resource factor is properly considered as the organization has aimed at hiring the best talent who understands the product and will be able to explain the same to the customers. This will act as a framework through which Innovation Guaranteed will be able to ensure that customer satisfaction can be enhanced as they will be able to develop and supply products and services by explaining the same to the customers (Cable & Judge, 2006). This will help to maximize the overall satisfaction level for the customers and will act as a major mechanism through which Innovation Guaranteed will be able to meet the requirements of the customers. 8.0. Financial Analysis Innovation Guaranteed has identified the manner in which the financial analysis and the manner in which finances will be managed in the organization will be determined. Innovation Guaranteed has looked to plan for its finances through proper planning of the funds available with it and maximum utilisation of the fund in the most optimised manner. A complete analysis of the same is presented as under (Czinkota & Ronkainen, 2004) Innovation Guaranteed firstly has to decide upon the source of financing in its business. It needs to make a balanced leverage in its funding by equipping it with both own funds and borrowed fund (Czinkota & Ronkainen, 2004). The interest at which loan is to be taken is to be further negotiated and efforts should be made to avail the loan at minimum percentage of interest rate. The following items will be required for setting up the business. Office supplies and equipment’s which include basic assets like desk chairs etc Stationery items for daily running of the business A complete furnished outlet on rent or on ownership basis. Skilled sales men to sale the products etc An analysis of the projected setup cost may be as under. Projected start-up cost $ Working Capital $4500 Initial lease payments and deposits $1500 Salary to salesmen $1000 Opening supplies $4500 Marketing Budget $3000 Miscellaneous and unforeseen costs $500 Total Start-up Cost $15000 It is to be noted that this are hypothetical figures and may vary county to country and upon the scale of business being setup. Sourcing of funds can be as under. Source of funding $ Management funding $20000 Banks and Lender $50000 A hypothetical profit and loss statement of Innovation Guaranteed may look like this: PERFORMA PROFIT AND LOSS STATEMENT(yearly) $ Sales 80000 Cost of goods sold 20000 Gross Margin 75% Operating Income 80000 Less expenses payroll 1000 General administrative 3500 Marketing expenses 3000 Insurance cost 1000 Rent and utilities 1500 Interest cost 5000 Miscellaneous costs 1000 Net operating income 64000 This has thereby ensured that Innovation Guaranteed looks at different aspect to determine the manner in which the financials will be managed and has developed the required parameters through which proper financial management will be done so that the business is able to ensure sufficient liquidity. This has further led towards determining the different marketing tactical expenses which will be done by Innovation Guaranteed to be as Specific Tactical Activities Person/Department Responsible Required Budget millions of yen Completion Date Product Activities 1. Seat Cover which acts as a massager as well as a seat cover Production engineers and Product management 30.45 2011 Pricing Activities 1.New Technologies Operations management 15.25 2012 Distribution Activities 1. Opening up of new factory 2. Machine handling 3.Logistical operations Logistics management 21.40 2010 IMC (Promotion) Activities 1.Concerts 2.Volunteer 3Youth Invention club Marketing manager 9.20 2012 Thus, the marketing tactical strategy which has been adopted by Innovation Guaranteed focuses on different aspect through which the organization aims at improving leverage and aims to ensure that better use of funds become possible. The overall financial strategy which has been developed by Innovation Guaranteed thereby focuses on ensuring proper management of funds and carrying out the activities in the most beneficial manner. 9.0 Implementation Strategy Innovation Guaranteed has developed a plan for the next 3 years which stresses the importance and manner in which the organization looks to carry out the different roles and responsibilities so that they are able to improve customer satisfaction and increase the chances of the customer accepting the product. The implementation strategy which has been developed by Innovation Guaranteed thereby aims at the following Year To be Achieved New Targeted Markets (millions) Cumulative Targeted Markets (millions) Today Working towards hybrid products 250 250 1st Year Introduction of pricing mechanism and price differentiation strategies. 320 600 2nd Year Enhancing hybrid products by use of new technologies 370 970 3rd Year Product differentiation to meet the needs of the market 420 1320 The overall strategy which has been developed by Innovation Guaranteed thereby aims at continuous innovation and development of product which will help to enhance customer satisfaction and provide an opportunity where the organization is able to provide new and better products (Cook & Dave, 2004). The implementation process also shows that Innovation Guaranteed concentrates on developing the products based on customer needs and looks to work on a niche market where the product characteristics acts as a best method towards attracting customers. 10.0. Evaluation & Control This process entails on monitoring and evaluating the performance of Innovation Guaranteed based on different criteria and objectives so that the organization is able to measure the performance based on different parameters. The organization to achieve their objective has further broken down the entire process into different year and looks to monitor the performance for all the year (Cook & Dave, 2004). The process aims at ensuring that the development takes place through a mechanism which will be aimed at controlling the overall performance and continuously looking to innovate and develop new products so that customer satisfaction can be better achieved. This will require properly evaluating the performance based on different areas and finding out the method through which maximum efficiency and achievement of objectives become possible 11.0. Conclusion Innovation Guaranteed has a strong opportunity to use the different opportunity which the car industry provides by developing a seat cover which acts as a massager and ensures that the comfort of driving enhances. The organization based on the product characteristics and strengths has focused on building their products and targets all type of customers. Innovation Guaranteed further looks to ensure that the customers who are aimed at are the one who is looking to purchase a new car or has a car. Further, the organization has looked towards working on the different parameters and has looked towards developing the product which will help to fit every car available in the market. Innovation Guaranteed has further looked towards ensuring that the promotional strategy inclines with their product and has aimed to highlight their product characteristics to the customers. The financials also depict that Innovation Guaranteed aims at having a strong financial figures and thereby has ensured that the overall productivity is maximized. Thus, the manner in which Innovation Guaranteed has aimed at developing the product has ensured that the overall satisfaction level and the acceptance of product increase within the customer. This will help to bring the required transformation and will help Innovation Guaranteed to develop a niche market through which their market improves. 12.0. References Brassington, J. and Pettitt, M. 2001. Principles of Marketing, 2nd Edition, Prentice Hall Bateman, T. & Snell, S. 2004. Management: The New Competitive Landscape. 6th Edition, McGraw Hill, New York Cable, D. & Judge, T. 2006. Person-organization fit, job choice decisions, and organizational entry. Organizational Behavior and Human Decision Processes, 67(3), 294–311 Chen, I. 2003. Understanding Customer relationship management: people, process and technology. Business Process Management Journal, 9 (5), 672-688 Cook, D. & Dave, D. 2004. Structural element of service quality product. International Journal of Business Performance Management, 6 (2), 189-207 Chrisan, P. 2001. Marketing: A Behavioral Analysis, McGraw – Hill. New York Czinkota, M.R. & Ronkainen, I. A. 2004. International Marketing, 7th edn. South-WesternPublishing:Australia. Cateora, P.R. & Mary, C. G. & Graham, J.L. 2009. International Marketing, 14th edn. Irwin: McGraw-Hill. Chew, M.M.M., Cheng, J.S.L. & S. Petrovic-Lazarevic, 2006. Managers’ Role in Implementing Organizational Change, Journal of Global Business and Technology, Vol. 2, No. 1 Read More
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