Plan for Yamasa Tokei Keiki Company - PowerPoint Presentation Example

Slide Good day to all, today I am going to present a business plan for Yamasa Tokei Keiki Co. Ltd., a health care product manufacturer and exporter. I will act as their VP of marketing where I will recommend the selling of Yamax pedometers to Suburban Hospital to help reduce childhood obesity in the community. Slide 2 Mission The mission of the company is to become the number one choice for medical technologies and laboratory equipment for health care organizations. Objectives The objectives are to begin an alliance with Suburban Hospital for a childhood obesity resolution campaign and to boost the sales of Yamax Digi-Walker SW-200 pedometers to Suburban for 10% every year. Recommendations The main recommendations are alliance-building and providing marketing research and support for Suburban Hospital. Keys to Success The keys to success are marketing research and marketing plan for Yamasa and Suburban Hospital regarding the project of weight management for overweight and obese children, and the production and distribution efficiency that Japanese companies are known for. Slide 3 Overweight and obesity are the result of “caloric imbalance” or “too few calories expended for the amount of calories consumed—and are affected by various genetic, behavioral, and environmental factors” (“Childhood Obesity Facts”) How prevalent is childhood obesity? Childhood obesity is one of the health care concerns of the nation, especially when its prevalence more than doubled among children for the past three decades. The percentage of obese children aged 6–11 increased from 7% in 1980 to nearly 18% in 2012. In 2012, more than one third of children and adolescents were overweight or obese. Their numbers are increasing because of access to fast food, sedentary lifestyles (i.e. more screen time in front of TV, phones, and computers, and less physical activity), and poor education about nutrition and health. Several scientific studies showed some successful interventions for managing childhood obesity. These interventions include education for parents on healthy lifestyles that involve better nutrition and more physical activity. Monitoring lifestyle changes is also important to determine progress and to maintain healthy lifestyles. Slide 4 The company is Yamasa Tokei Keiki Co. Ltd. It is a private Japanese company that was founded in 1942. Its headquarters in the U.S. is in San Antonio, Texas. Its main products are electronic equipment, medical technology, and laboratory equipment. Based on research on its products, its primary competencies are in production and distribution and product research and development. As a private company, it does not provide accurate sales and marketing information, as well as information on organizational design and structure, so assumptions are made for these information and data. Slide 5 The first component of this business plan is marketing analysis. The market needs of health care institutions are cost-efficient health care tools and equipment, integrated health care components, and marketing research support. Because of the high costs of health care, they want to purchase affordable tools only. They are also looking for more integrated services and products that reduce costs. They also need marketing research and other form of support in launching health care education programs. For overweight and obese children, their needs are to enhance their life quality through reducing BMI and to have social support for their health care goals. This can be done through more physical activity and education and nutrition programs. Slide 6 Market demographics will refer to target children. They have the ages of 5 to 11 years old and come from low-income to middle-class families. Many obese children are from low-income groups due to poor access to markets and healthy food options in their neighborhoods. Market growth is based on population growth rate and it is around 10% every year. Market can also grow through expanding in the future to other older market segments, such as adolescent and adult groups. Slide 7 The technology trends are based on the use of pedometers in schools and communities due to physical activity and anti-obesity programs. There is also a trend for mobile applications that monitor physical activity and fitness. Many children also have access to computers, Internet, and mobile communication tools that can be used to help them develop self-monitoring health practices. The social trends are the promotion of physical activity versus sedentary modern life and greater engagement with communities. Many communities want to promote healthy living t through clamoring for more farmer markets and fewer fast foods in their neighborhoods. The rise of dual-income households reduce time spent in having physical activity with children. They also can monitor their children’s physical activity less, so technology can be helpful on this regard. Social media, in addition, is an emerging marketing platform for spreading market information and collecting market segment data. Slide 8 I will now proceed to competitive analysis. The main competitors are the following pedometer products: GeoPalz Ibitz Pedometer and Omron HJ-105 Pedometer. The companies are then GeoPalz and Omron. They are chosen because they have the same price range and target market as Yamasa. You can see from this figure that I will compare these three products through their marketing resources and strategies, fashionable design, product price, marketing alliances, accuracy, brand awareness among target markets, and brand awareness among pediatricians and researchers on child obesity. The strengths of GeoPalz Ibitz Pedometer are its colorful, fashionable design that can appeal more to children and its marketing strategy. It is the first brand that comes up in searches for kid pedometers in Google. It is also used in several health campaigns in schools and communities, so it has high brand awareness. The weaknesses of this brand are that it is not used in many health care marketing researches, it is a little more expensive than Yamax, it is more or less accurate, and it is not well-used in health care studies. Omron HJ-105 Pedometer has the strengths of marketing resources and strategy. It is a well-known health care product brand and is known to be accurate. It has commercial success and is very visible in different locations, such as stores and pharmacies. Its weaknesses are that the design may not be pleasing to children, it is not well-used in health care studies, and it is a little more expensive than Yamax. Yamax is the strongest brand and product because it has sufficient marketing resources and strategy, it has a lower price than competitors, it has and can build strong alliances with hospitals, schools, and local governments, it is an accurate pedometer, its products is known to many parents, and it is well-used in health care studies. Its main weakness is that its design is not colorful compared to GeoPalz. Slide 9 This part discusses the Value Chain Analysis. For pre-service, Yamasa will provide marketing research service and some funds in marketing research and brochures for marketing information about the pedometers. The target market is for Suburban Hospital and parents of obese and overweight children. The price of each pedometer is $20. The brand positioning is for simple, kid-friendly, cost-efficient pedometers that can last for 3 to 4 years. Distribution will be provided to hospital, although extra orders can be sent to end consumers. The promotion includes brochures and streamers for active childhood activities. The services for point of service are marketing support and sales support. Marketing support is for providing any other information during sales. The sales support will help provide more marketing information to parents. For after service, the services are marketing evaluation and research support for evaluation of outcomes. This includes providing funds for evaluating outcomes, such as the impact of more physical activity on BMI. For the support activities, the organizational culture includes shared values of customer satisfaction, teamwork, and integrity. The company is dedicated to research and development which can be seen from how it improves new products based on market research. Slide 10 The next section is SWOT analysis. Yamasa is a trusted Japanese brand because it has been operating for 72 years. The Yamax Digi-Walker SW-200 is also affordable, accurate, and it has been used in different health care studies that study childhood obesity. Furthermore, it has production and distribution efficiency. It can promote itself through being an affordable pedometer that works in helping kids become more mindful of their physical activity levels. Its weakness is that it has a very basic and non-colorful design. The threats to the business plan are competitors from known American and other brands. They may have stronger branding and marketing strategies. Changes in technology can also make pedometers obsolete, such as phones that have pedometer applications. The opportunities are the need to address childhood obesity and social marketing. If Suburban Hospital agrees to an alliance, this can be the start of more alliances that promote quality health for children and adults. Social marketing is a possibly affordable way of marketing Yamax if Yamasa can use word-of-mouth in being promoted across social networking sites of schools, governments, and parent organizations. The government may also be tapped to buy pedometers for other health care programs for the obese and overweight. These government institutions are local health care departments. Federal budgeting may also provide support if Yamasa can get a contract in providing pedometers to fight obesity in different states. Alliances with local governments, schools, and health care institutions can expand in the next five years too through additional marketing plans. If Suburban Hospital will not enter in an alliance with Yamasa, these strengths can attract other hospitals. There are many opportunities of building alliances with other hospitals and schools that have obesity resolution programs. Slide 11 The value of the proposition is the timeliness of resolving childhood obesity through effective and efficient methods. This proposition is a program that has long-term aspects because of its monitoring and evaluative aspect, meaning it assesses health care outcomes, such as lower BMI and weight. The main competitive edge is the Japanese style of production and management that emphasizes low-cost, good-value products and quality management. The marketing strategy is focus cost leadership with emphasis on low-cost health care tools. The markets are hospitals, parents, and local governments. They are the main stakeholders of the program. Pricing is competitive because of bulk purchases. The company will be providing marketing support and research funding support for Suburban Hospital. Slide 12 Yamasa is proposed to enter into a strategic alliance with Suburban Hospital for the active childhood program. The alliance ensures shared goals and responsibilities for the success of the program. The implementation will be done through contacting The Office of Community Health of Suburban Hospital regarding the alliance and presenting the business plan to them. This is the right office to communicate with because they make decisions regarding health projects for the hospital. Yamasa will then present its marketing research and marketing plan. If Suburban accepts the proposal, it will sell and distribute pedometers to it. It will also co-evaluate health and sales outcomes. The contingency plan is to sell pedometers directly to parents of obese and overweight children through making business proposals at schools and community health care agencies. Slide 13 This slide shows the basic organizational chart of Yamasa. The CEO is the overall chairman of the company. The COS and CFO report to him. The VPO Sales and VPO Marketing report to the COS. Slide 14 The company has a functional management structure. It has a division based on marketing/sales and financial departments. The marketing team consists of the CEO, CFO, COS, VPO Sales and VPO Marketing. The CEO is Takahiro Kanji and he is in charge of approving marketing strategies and projects. The CFO is Margaret Westley. She makes the initial approval for budgeting target marketing projects. The COS is John Aruhito. He manages the authorization of final marketing projects. The VPO Sales is Haruto Sota. He is in charge of approving point-of-service sales activities. I am the VPO Marketing. I manage several marketing projects, including marketing research. I also hire Junior Marketing assistants. The team needs two marketing assistants who will help make and conduct the marketing plans and coordinate information and data among different groups. Slide 15 The target number of children is 10,000 every year with a unit sales increase of 15% every year. You can see from the Profit and Loss Statement figure that for year 1, the target sales are $200,000 for the first year. The profit margin is targeted at 10% to 12% every year. The price of the product is $20 but will increase by $1every year. The fixed costs are $40,000. The estimated variable cost per unit is $5. Break even will be reached once the company sells 2,666 units which can be achieved by year 1. Slide 16 This figure shows that the target sales by year 1will be $200,000 at 10,000 pedometers sold. Expenses this year will be $216,500, creating a loss of $16,500 for the first year. The company, however, targets a 15% increase in pedometers sold every year as it expands its reach to more children and adolescents in the community. The company targets the sale of 11,500 pedometers by year 2, 13,225 by year 3, 15,208 by year 4, and 17,489 by year 5. Expenses will also increase from $221,100 in year 2, to $245,700 in year 3, $270,300 in year 4, and $294,900 in year 5. Profit will increase by $20,400 in year 2, $45,250 in year 3, $79,484 in year 4, and 124, 836 in year 5. Thus, it is a good marketing project to enter an alliance with Suburban when these target sales and expenses are met. Year Year 1 Year 2 Year 3 Year 4 Year 5             # of Pedometers 10,000 11,500 13,225 15,208 17,489 Price 20 21 22 23 24 Income 200,000 241,500 290,950 349,784 419,736             Expenses                       Wages 200,000 200,000 220,000 240,000 260,000 Advertising 10,000 12,000 14,000 16,000 18,000 Subsidy research support from Yamasa to Suburban 2,000 4,000 6,000 8,000 10,000 Office Supplies 500 600 700 800 900 Telephone 4,000 4,500 5,000 5,500 6,000             Total Expenses 216,500 221,100 245,700 270,300 294,900             Profit/Loss -16,500 20,400 45,250 79,484 124,836 Slide 17 Childhood obesity is an important health care concern because it leads to diseases such as diabetes, heart problems, and digestion problems, among others, by the time children become adolescents or adults. Some components that can reduce childhood obesity are education, stakeholder engagement, and technology. The main recommendations are to build an alliance with Suburban Hospital and to conduct and implement marketing research and sales support. The keys to success come from evidence-based marketing research and marketing plan and applying production and distribution efficiency to create affordable, quality health care products. Read More