Novelty Gifts Company - Research Proposal Example

Novelty Proposal Novelty Gifts company Introduction The novelty gift company is a company focusing on the production of gift items, which can be used to improve the Trust. The completion of the company’s proposal will be done based on the success of the gift program to the Canal trust. The focus of the company is to improve the performance of the Canal trust. The gift items to be developed include the development of executive toys, earring and bangles. The ability of the company to support the Trust will depend on the ability to make quality products and develop the necessary platform to sell the products. Demand The demand for Novelty products such as executive toys, personal gifts are usually constant, but changes according to the changes in the seasons and important events. However, the demand occurs all the year round making the company profitable. Innovation The success of a business idea is improved through developing a patent. The patenting of ideas ensures that the innovation is by the organization, and any of its application will increase the monetary value. The main problem with patents is the steps involved in obtaining the patents. The patents enforce and protect intellectual property such as software. Changes in design and technology must be analyzed depending on the success that they can bring to the society while the innovator must obtain a reward from the advancement. The commercialization process is complex and involves steps that should be addressed efffectively. These steps include invention disclosure and assessment disclosure. Upon receiving the invention, the review analyzes the importance of patenting to the organization. The major challenge has been the rights of the initiators who may be employees of the company. In order to succeed, the company must have a reward system that recognizes the role of the employees in innovation. It is vital for the employees to own the innovation which will in turn encourage creativity within the organization. Individuals should be allowed to apply for patents for their innovations because they own it and it should not be taken away from them. However, the current situation does not encourage individuals to apply for intellectual property ownership leading to the development of issues including fear and loss of wealth generation opportunities (Mauzy, 2006). The failure to address such issues affects the creativity of the employees leading to reduced improvement in technology. When individuals own patents, it is easier for other to struggle to develop new technology because there is room for creativity (Cacioppe, 2000). For the Novelty product, the patenting should be based on the Idea created by the founder, which is the creation gift items made from wood and are hand woven. Feasibility The project has the ability to succeed with the focus being on the provision of the Gifts and other activities associated with the company. The company focuses on the development of sanitary and other related products. Making the gift company will be able to develop the necessary platforms for development and improve the growth of the Canal River Trust. Attraction Pricing is a vital aspect of marketing because it may offer a competitive advantage for the company. Consumer preference is based on affordability which is a vital aspect in choice determination. However, the pricing depends on the production process and technological advancement. In addition, pricing is an essential aspect in marketing strategy development. However, the pricing of the product must resonate with consumers. High Prices may affect the development of brand image. The development of brands depends on the four main issues stipulated in the marketing mix. A strong brand is characterized by ability to drive the shareholder value (Sandhusen, 2000). Therefore, it is managed by brand marketers who ensure an active buy-in from all stakeholders. The brand is valued in financial terms and is classified as an asset to the company during the calculation of profits and loss. It is an integral part of the organization with diverse business dimension. The financial value of the brand can be used to obtain loans, or be bought as an asset. It is believed that there are four factors that influence brand development. These four factors influence the strength, image and loyalty of the brand. The four factors are; affinity, challenge, fame and price. Product A great brand is usually backed up by a great product. A product as defined by Sandhusen is goods or service offered to potential customers to meet their needs. For the development of Novelty products, the target market and the pricing of the product must ensure that it is affordable and easy to use. The company will focus on collectables which include handbags, toys, bangles, toys and other items that could be used as memorials. The major area of focus of the company is toys. The company intends to manufacture expensive toys for the clients of the Canal River Trust. The aim of the product is to improve the performance Canal Trust by increasing sales or generation of revenues. The product of focus is the mass manufacture of toys focusing on children. The toys will be made from recycled plastics reducing the cost of manufacture and increase productivity. The Toys will be for children of below twelve years who visit the Trust. The product will encourage parents to engage in Canal Trust thus increase the success of the company. Price Novelty should approach pricing using geographical segmentation. With a variety of toy companies around the world, the production cost should be reduced, and the company should offer several prices based on location. The geographical segmentation ensures that the products are sold in affordable pricing. The other strategy to be developed by the company especially in areas with the competitor presence is competitive pricing (Crawford, 2000, p. 123). The strategy developed in such areas is the competitive pricing, which includes comparing prices with the competitors and using relatively the same price. The company should ensure global presence making its products cheaper. For a new institute, the price level needs to be somewhere in between the highs and lows because those charging high are already established brands and those charging low might be perceived as low quality or not recognized on a bigger scale. Product budget Product Development and Testing       Hire expertise to develop product        $1030 Prototype development costs:          $200 Labor        $130 Materials        $560 Special Purpose Equipment        $450 Miscellaneous          $120 Fees for lab testing            $300 Field Trial costs            $200 Patent Application Fees          $130 Development of technical manuals        $120 Development of User training manuals        $50 Packaging Design            $10 Update business plan            $10 Other related costs:            $45                 3485 Promotion Novelty Company can engage the use of social media marketing. The success of the social marketing strategy is based on the ability to integrate various issues in the social media platform to develop a comprehensive approach. The company must venture into the use of social media in a correct and delightful way leading to immense success. The five factors that the company can add into the social marketing strategy include the use of dynamic consumer engagement. Novelty can develop a digital dashboard which can effectively increase penetrations. The online destinations have encouraged the increased visitation of the social platform (Crawford, 2000, p. 65). The company can use song selections and encores for online advertising of the concert series for the summer. The connection allows for the participation of consumers in the brand promotions. Social media offers information on age, interests, demographic, interests and customer reactions. The data obtained has been employed by Novelty to refine its customer engagement model leading to the attraction of new fans and obtaining of new data. The use of social media on other devices such as smart phones is opening a new platform for Novelty company. The company is hoping to adopt the new technology, which includes SoLoMo or Social Local Mobile. The motive of the company is to reach populations in specific geographical areas. Social media is a great place to start off with Facebook, Twitter and MySpace all excellent platforms to engage prospective consumers in understanding the products developed the company in order to improve the revenue collection for the Trust, which is the main focus of the company (Baker, 2011). Social media marketing is vital in the promotion of collectables in the process improving sales of the collectables. In addition,the use of online payment platforms is vital because it will encourage the faster purchases and encourage penetration of the market. Place The company will not have any distribution channels or exhibition center, but will use the online platforms with the only outlet being the manufacturing center. The main partner in the process is the Amazon.com. Amazon.com has often looked at as an example of a successful form of e-business. The company’s success is based on the integration of the supply chain and merging of wholesale and retail roles. It then acts as a single online intermediary between consumers and publishers. This model allows for easy purchasing, a wide selection. It also leads to sustainable economies of scale which enables Amazon.com to achieve a price advantage over many conventional booksellers. Therefore, Amazon is a cybermediary merchant carrying out informational, transactional and logistical roles all at one. One of the most influential reasons for Amazon’s success is its creation of a brand name. However, customization of its products would be best achieved by reducing its portfolio. It also enables Amazon to achieve a higher degree of customization of its service. The deal will involve a 5% commission for the company for any item sold via its platform. The percentage must be agreed upon by both companies. Implementation The operational strategy influences the product price, efficiency and volume of production. Operation strategy deals with five issues that affect production, which also affect the quality and quantity of the product. Efficiency reduces raw material consumption while reducing the amount of time used in the production of one unit. Efficiency in operations include acceptance of new technology and skills that would accelerate the production and ensure product availability. For example, an operation strategy in a sugar company will change the production cycle to include ethanol and fiberboard production. Such change in production will reduce the volume of waste generated while increasing the volume of the product. However, such changes come with the need for further investment in technology. In spite of the differences, it is important to state that operation strategy covers five main aspects of the production cycle. These five factors include speed, effectiveness, cost, dependability, quality and flexibility. These factors are vital in production because they affect the price and quality of the final product. With such importance, these factors must be evaluated and be addressed by the operation strategy. The operational strategy forms the core of the production unit because it evaluates the usefulness and effectiveness of the production cycle and thus influences the steps and process involved in production. The four phases of the strategic role are internally neutral, externally neutral, internally supportive, and externally supportive (Sandhusen, 2000). The four strategic roles of operations are the core issues that influence the cost of production and the ability to influence the marketing strategy. The marketing strategy of any organization depends on the product quality and volume produced. It is influenced by operation strategy. Growth Advertising has affected the company's performance positively as witnessed with the increasing demand and sales of new product as a result of customer understanding. The six, seventh and eight simulations were highlighting the need for advertising to be entrenched in the process. The increase in advertising led to increased performance of the company. Thus, it led to the creation of the new understanding of the product. From the results obtained, the engaging in advertising will facilitate the development of effective and successful products. In line with the changes in advertising finances, advertising strategy can be evaluated to cover all the emerging issues in the market.The partnership with Canal Trust must be documented, and the agreement document be clearly drafted including the stipulation of the patent and intellectual property rights. The food industry is dynamic such that the protection of the trademark is vital in the development of the new product and patterns. The success of the pattern will depend on the ability to own it and market it in as a unique product or brand. The creation of brand may not be successful if the marketing and promotion strategy is not properly planned. Uniqueness of the product The products of Novelty Company are different from the already existing in the market. The focus of the marketing strategy would be on the uniqueness of the product compared to the already existing products. The first focus of the product will be on the composition. It is composed of natural products as opposed to the known artificial product used as such making it a very different product in the market. The uniqueness of the product is both a plus and constrain in the marketing process due to the need for market penetration. Consumer tend to look at products that seem to relate to the one he consumes as such new products with a unique touch have a challenge in the influencing of consumers to use the product, which is the main issue facing the Gifts by Novelty Company. For success to be achieved, with such products, penetration marketing and promotions should be encouraged by the marketing department to facilitate trials of the new product thus obtaining consumer feedback; thus, encouraging the development of new approaches in the product development. Exit strategy The duration of the program is estimated to be five years with the fifth year being the exit year. The exit strategy for the company is to change the approach and reduce production levels while selling all the other non-strategic investment with the final items being liquidated at the end of the year in a public auction. The success of the exit strategy will depend on the nature of the machines which are employed in the production process. The exit strategy is simple because the company focuses on the growth of Conclusion Global brands employ capitalization to stifle competition from other competitors and therefore, tend to compete with each other. The same principle applies to local businesses because they desire a larger market share compared to competitors. The retailer departmental stores in Singapore have succeeded in developing strong brands through association. In conclusion brands rely on the quality of product and consistency developed by the product. Products that have been in the market longer and have widely been used and appreciated by the consumers as such their brands have dominion over other brands. Due to the rising cost of living and the same brands being expensive, consumers are forced to try other brands leading to loss of customers to the dominant brand. The Gift industry in the UK is dynamic and should be handled in the same way to ensure success of the whole process. 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