Target Market and Competitor Comparison - Case Study Example

BUSINESS PROPOSAL By Name Course Instructor Institution City/State Date Executive summary The most noteworthy benefits of paper plates are the fact that they are not reusable; thus, one must not be bothered concerning carrying mucky plates after use is normal with other ordinary plates. Fundamentally, this is beneficial, particularly on individuals who are irretrievably on the move and would desire to carry as little load as they could. For this reason, the paper proposes plastic plate as the potential product, which after production will bring about countless benefits to the producer, the end-user and the environment. The proposal foremost offers a brief introduction concerning the paper plates, before providing a comprehensive insight in regards to target market and competitor comparison operation plan for the business, marketing mix, and competitor comparison. Table of Contents BUSINESS PROPOSAL 14 1 BUSINESS PROPOSAL 1 Executive summary 2 Table of Contents 3 Introduction 4 Target Market & Competitor Comparison 4 Competitor comparison 6 Message Map 6 Promotional message 7 Marketing mix 8 Product 8 Benefits 9 Distribution/delivery 10 Pricing strategy 10 Operation plan for the business, 11 Legal form of the business 11 Risk and risk management 12 Operational procedures 12 Bibliography 13 Introduction This is a plate made out of paper and serves the functions just like any other plate. The plate consists of 10 layers of paper. Therefore, this means that a user can have a maximum of ten meals using one paper. This is attributed to the fact that the each layer of paper can be ripped off allowing the user to use the next the next layer to serve their meals. Unlike ordinary paper, the papers used are quite different in regards to their quality. This is evident whereby the paper does not allow leakage of fluids on to the next layer making the underlying layer good as the first layer. Additionally, the paper has been made in such a way that it easily decomposes when disposed off. This factor makes the paper environmental friendly as it does not pollute the environment. It is also important to take note on the fact that the plate does not need to be washed every time it is used. Rather the used layer is ripped off and disposed. This aspect of the paper plate makes it economical in various aspects. One such advantage is that it saves on water as one does not need to wash the plate after taking a meal with it. Additionally, the paper plate saves on cost since a single paper plate comes with 10 layers equivalent of ten plates. Furthermore, this saves on the space required to store 10 single plates (Mary 2013). Target Market & Competitor Comparison The paper plates hope to target various markets where it is deemed the use of the paper plate will greatly benefit the users in this market. The first target market for paper plate would be campers. Campers as we all know are always on the move, and one of the main concerns for any given camper is the amount of luggage they carry. Campers will in most occasions try to minimise on the amount of luggage they are carrying. Additionally, it is common practice for campers to prepare meals during their expeditions. However, since they are far from their homes this could prove tricky as it would force them to pack cooking and serving utensils. This is where the paper plate is of great significance to the campers. The main reason being the fact that it enables campers to reduce on the size of luggage they are carrying. This is because every paper plate consists of ten layers of paper equivalent to 10 single plates. Therefore, this greatly reduces the load carried in instances where the camper will be away from home for several days. Additionally, since the paper plate is disposable, it greatly reduces the load and eliminates any worries of carrying dirty utensils back home. In addition to this, there are those campers who are environmentally conscious and try to ensure their activities do not pollute the environment. Such campers need not worry about destroying the environment as the paper plate is quite environmental friendly. This is attributed to the fact that the paper plate easily decomposes once it is disposed without harming the environment. In addition to campers, the paper plate seeks to target homesteads that are comprised of large family units. Large family units require a lot of serving utensils to accommodate the large number of individuals. This could prove to be very challenging when it comes to cleaning of so many utensils. However, with the introduction of the paper plate such families need not worry about the tiresome duty of washing utensils. This is can be attributed to the fact that all that one needs to do is to rip of the used layer and dispose it. Therefore, this reduces the workload while at the same time accommodating the needs of each of the family members. Last but not least paper plate would also target water stricken areas within the society. Such areas fall prey to numerous diseases, which could arise as a result of using dirty utensils to serve their meals. However, with the use of paper plates such families need not worry as they are able to use clean plates very time they take their meals. This is attributed to the fact that the paper plate is made of ten layers of paper, and every time it is used all that one needs to do is rip off the used layer. Therefore, paper plate has a variety of options within the market where it is likely to make significant strides in the realization of profits. Competitor comparison Despite all the benefits associated with the use of the paper plate, it is still faced with numerous challenges, which could hamper the realization of profit. These challenges arise from some of the existing competitors who also target the same market. The presence of these alternatives could derail the progress made by paper plate. Therefore, in order to beat off competition paper plate has to be innovative and better meet the needs of the customers. In line with this statement, it is clearly visible that paper plate is not only innovative but has also prioritised the needs of the customers. The major competitors are the disposable plastic plates, which have over the years been dominating the market. However, one disadvantage of disposable plastic plates is in reference to their disposal. Disposable plastic plates are not that environmental friendly when compared to paper plates. This is because, unlike paper plates, they take long to decompose thus polluting the environment. Message Map Promotional message Pratfall Paper Plate from Mignafell Enterprise Massage! Does anyone know they deserve to hold parties, gathering, or celebrations economically with disposable plastic plates? There is no time to shop? It is simple to purchase Pratfall Paper Plate, which all and sundry adores Get more entertainment with your biodegradable Pratfall Paper Plate. Save time and money with Pratfall Paper Plate packages. Save 15% when you purchase Pratfall Paper Plate prior to November 1 Packages for big gathering and parties available. Email or call to order Pratfall Paper Plate packages for the holidays: info@pratfallpaperplate.com or call 254-66584-000 Visit my website www.pratfallpaperplate.com for more on Pratfall Paper Plate packages. Marketing mix Product As earlier stated, a paper plate is a plate that is made out of high quality paper which are easily distinguishable from the ordinary paper. The incorporation of the latest technology in coming up with the paper to be used in the manufacture of paper plates greatly improves the quality of the paper plates. Technology has enabled to make papers that do not leak thereby maintaining the quality of remaining layer of papers. In addition to these, paper plates consist of ten layers of paper carefully lain on top of each other. The layers can easily be ripped off after taking a meal using the plate, without affecting the quality of the remaining layers of paper. Additionally, as earlier stated, the use of paper as the raw material means that it easily degrades once disposed. Therefore, this makes paper plates environmental conscious when compared to the disposable plates. (Mary 2013). Figure 1 shows the physical features of paper plates. Fig. 1 Paper Plates (Mary 2013). Benefits One of the most significant advantages of paper plates is the fact that they are disposable. This means that one need not to worry about carrying dirty plates after use as is common with other ordinary plates. This comes in handy especially on individuals who are always on the move and would want to carry as little load as they could. The other advantage of using paper plates is the fact that they are biodegradable. This means that once they are used and disposed they easily decompose which is attributed to the fact that paper as raw material is biodegradable. In line with this statement, paper plates are environmentally friendly as they cause little harm to the environment. This is attributed to the fact that they decompose when disposed after use with necessarily using too much energy. Additionally, paper plates are economical in that individuals using paper plates to serve their meals use no water to clean as they are disposed after use. Therefore, water bills for such individuals when compared to individuals who have to wash their plates every time they take a meal. Distribution/delivery The company has orchestrated a plan to oversee the successful distribution of paper plates to its desired market. One of the ways that the company seeks to achieve this is to ensure that paper plates are available in every major retail outlet. This ensures that customers have an easy access to the products at any time. As for the campers, the company seeks to ensure that every camping organisation is stocked with paper plates so as to meet the demands of the campers. Therefore, with such a strategy it becomes easy to ensure that every desired market is reached out. In doing so, this replicates to profits realized from the sale of paper plates. Pricing strategy Pricing plays a crucial role for any new products that try to make its name in any given market. This can be attributed to the fact that the price of any product may attract customers or discourage customers. Therefore, pricing can either lead to the realization of profit or loss for any organisation and for this reason care must be observed when determining the price of any new product. There are various strategies that a company may choose one in determining the price of their new product. However, this is dependent on various factors such as market size, competition and objectives of the company. For paper plates, the most desired pricing strategy that will be adopted will be the penetration strategy. The penetration strategy works well for paper plates based on the fact that paper plates is a new business adventure that is yet to be witnessed. This means that there are no existing precedents to indicate the response of customers to the use of paper plates. This strategy depicts setting a lower price for the products without really concentrating on the possibility of realising a loss. The reason for setting a lower price is to attract customers and make a name for itself in the market. Therefore, for paper plates this would be a strategy of great significance as it moves to establish its own customer base. This is based on the fact that paper plates being a new idea people will be curious to try out the plates. However, if high prices are set for the paper plates, few customers will get the opportunity to try out paper plates. Therefore, to ensure that paper plates are available for all a lower price will be set. Once paper plates have a name for themselves in the market the price may be hiked, but this is done gradually so as to avoid losing customers. Therefore, the penetration strategy focuses on establishing a customer base for new products such as paper plates. The price of ordinary plates normally ranges from £3 to £5, but as the company has adopted the penetration strategy, the plates will go for £2.50. This price makes it easier for customers to purchase and experience the benefits of using paper plates. Additionally, this price ensures that it is capable of fighting off competition from ordinary plates (Hinterhuber 2008, p.42). Operation plan for the business, Legal form of the business The company is a limited liability company, which means that the business shall acquire its own legal personality separate from that of its founders or employees. Therefore, this means that the company can sue and be sued under its name. Additionally, the company acquires perpetual succession meaning that it can only cease to exist through dissolution. This is quite beneficial as it protects the company from wrangles that may exist between the founders. Additionally, by adopting the limited liability employees feel secure when conducting activities of the company. This is because the company accords them legal protection when conducting activities on behalf of the company (Gibson & Fraser 2013, p. 700). Risk and risk management The most probable risk that could attach itself to the paper plates is destruction as a result of fire during storage. This is attributed to the fact that the paper plates are made out papers and as it is well known paper easily catches fire when exposed fire. Therefore, with this in mind a lot of care should be undertaken during storage to reduce chances of fires. This can be achieved by adopting a packaging strategy that discourages the spread of fire should there be a fire. Additionally, the packaging materials should have a high resistance to fire as this will ensure that the damage is minimal. In addition to these, a fire alert system has to be set up which will be capable of detecting the slightest fire thus making it easier to avoid spreading of the fire. Furthermore, fire extinguishing equipment should be put in place and in areas that are easily accessible in the event of any fire. Therefore, by setting up an effective fire alert and extinguishing system it becomes easier to minimise the possibility of the risk attaching to the products. Additionally, should the risk attach itself it becomes easier to tackle it, thus minimising the damage caused by the risk. Operational procedures The operation procedure adopted for the manufacture of the product greatly determines the quality of the final product. Therefore, the procedures adopted should work for the benefit of the company and easy to implement. One such procedure is in relation to the working hours, which in this case will be 8 hours a day. This ensures that employees are productive every day as tiredness could compromise the quality of the product. This is as a result of employees slacking when at work as they are overworked. Additionally, the company is to be suited close to the city with warehouses in the major cities. This reduces the cost of distribution of the products and also ensures that at no time do the plates miss in the major retail outlets in the city. Additionally, since the paper plates are manufactures using the latest technology, the company has outsourced some of the finest experts dealing with paper production. This ensures that the plates manufactured meet and maintain the required standards. Bibliography Gibson, A & Fraser, 2013, Business Law, Pearson, New Jersey. Hinterhuber, A 2008, Customer value-based pricing strategies: why companies resist, Journal of Business Strategy, vol. 29, no. 4, pp. 41-50. Mary 2013, Paper Plate. [online] Available at: viewed 18 September 2013 Read More