Tile Entering to Hong Kong Market - Example

Business Plаn оf Тilе еntеr tо Ноng Kоng mаrkеt Student’s Name Institution Executive summary Tile has a clear record of growth accomplishment, which has made it penetrate most parts of the world. It is also geographically diversified and multi-branded company and panning to enter the Hong Kong Market. It differentiates itself trying hard to differentiate from others by offering high quality and unique services and products, which increases customer loyalty. The business will have to invest more in the customer research and find out the information about the changing states and needs to be undertaken and increase satisfaction. The company will have to increase the promotional budget in covering direct marketing, advertising, publicity, and sales promotion. Also, because of the company’s high innovativeness and creativity, the brand expansion is imaginative, soulful and helpful. Having said that, this paper will examine the industry and company, marketing analysis, marketing plan, sustainability and impact, overall schedule, risks, and operation plan. Table of Contents Executive summary 2 Tile’s Business Plan Industry & the company Even though connections are normally restricted by the Bluetooth’s typical connectivity with a range of 1000 feet, the range of tiles can be extended this by using the Bluetooth connection of the neighboring phones that run the Tile app to cast the search net (Tile, 2017). If a tile is outside the tile app range, the tile will send a signal, which puts other tile apps in reach for the missing item. Such shapes inventory background, and it entails that of another person who runs the tile app will come within range of lost product. Porters 5 forces for Tile Company The Threat of Entry of New Competitors It is difficult for new competitors to enter market because of the substantial capital in facilitating marketing and advertising. Tile has established itself in different markets, which means that it will easily be establish in Hong Kong with no Tile producers and small chances of other competitors coming in in the first two years operation. Brand image and customer loyalty will help the company to easily establish in Hong Kong market. Threat of substitute products Effect of substitution will be low in the industry. The low substitution effect emanates from marketing and advertising which is needed in gaining market space. Bargaining Power of Customers The Hong Kong market reveals that most customers belong to middle class who can easily afford to purchase the Tile products. The Bargaining Power of Suppliers The suppliers bargaining power is strong since basic materials are hard to get. The materials are not easily available to everyone. Marketing analysis Marketing segmentation will be a crucial part of the marketing strategy of the company (Blackwell, 2011). The company will be both consumer and business oriented to maximize profits. The customer will be segmented based on their personal behaviors, brand loyalty, benefits sought, and patterns of use. The higher income clients will need high quality products and services. The business will have a responsibility to target high services and products to a specific group in a particular the young people who are more value oriented and love pleasure as a result of new products (Halligan & Shah, 2010). The business should also understand how to deal with those who are budget conscious like the baby boomers. Moreover, the value proposition canvas will be important in solving problems and difficulties and enhancing the needs of the customers. We will gather all the needs of the customers, the problems they are facing, and the tasks hey are trying to accomplish. We all also gather the customer pains by understanding all the undesired costs, negative emotions, and risks that customers can experience during, after and getting the task done. The tiles are always available and secure on anyone’s tile app (Tile, 2017). Tile will help the customers find their misplaced wallets, lost keys, among other things (this is one of the biggest challenges facing people in Hong Kong). The tile network is spanning over 200 territories and countries, which means that it is the largest Lost and Found company in the entire world. Moreover, Tile will help customer to never lose anything easily since the tiles are sleek, simple, and can be placed on different valuable things such as wallets, keys, computers, and luggage to ensure that they will always be found. Different from other products, the customers’ needs will be satisfied because it is normally quick and fun to find to see a tile by asking it to start playing a melody or seeing its last location. When a tile app is connected to the phone, a customer will find his or her stuff. It is important to use excellent skills in selling; this means that the staff should be thoroughly trained in sales (Pinson, 2008). Moreover, the business will be auditing every seller by observing their sale activities and giving feedback on weaknesses and strengths in skills so that the discussed needs of customers are properly met. The business will also use contact management to allow easy monitoring of the effectiveness of various promotional strategies and the different marketing messages (Huang, Leng & Liang, 2012). Moreover, the marketing director will ensure that his or her creative skills and innovation to take a key role to identify opportunities and market and define service charlatanism and defining product (Blackwell, 2011). To ensure that our product is well accepted in Hong Kong market, the main responsibilities will include advertising and public relations for the company and carry out customer observation and market research to help in enhancing customer satisfaction and service quality. Marketing plan Markets consists of 4 ps of marketing: place, promotion, price, and place, all the services or products may have all the marketing principles applied to them. Product The product of the company entails the availability of particular material properties, which define physical features, and emotional relations of the product (Pinson, 2008). Tile business is going to provide information about our product such as the purchasing decision. We will use emotional appeal so that we can increase sales. Price The business will price the products at a relatively higher price so that it can appeal to the middle class or upper class who can afford luxurious products like phones. Also, another option will be to make products with different effectiveness so that people from all the economic classes and increase profit margins. Place There is need to continue intruding and innovating new products or to increase product quality and product costs that will likely attract the different regions in Hong Market. Promotions The promotions and advertising are going to be around 6 strategies: that is internet website, shop front, press advertising, and customer relations (Halligan & Shah, 2010). Firstly, in public relations, the business is going to use considerate efforts to prepare and disseminate flow of press releases regularly. Such will be based on stories about co-operating clients, destinations, activities, and staff. We are going to employ public relations adviser to help the business locate and write copy publications editors (DeThomas & Derammelaere, 2008). Secondly, we will use shop front. We will have an exciting informative, and effectively management window display. We will have a display video of tiles and how they work. Different locations may be selected from outside window through control panel is that the scenes will not be rotating on the random basis. Thirdly, internet website will be used because the internet has become a major promotional challenge and its important will always increase over time (Pinson, 2008). Uses of internet website are convenient ways that will help the business have a regional and even global outset (DeThomas & Derammelaere, 2008). Moreover, the business will undertake some press advertising so that it can enhance public relations (Zeng, Huang & Wenyu, 2009). There is enough research supporting the claim that most often potential client hear about business. The more likely they will approach it when they need some services. Operation plan/manufacturing plan The business will continue manufacturing tiles and bring its products to the new market. A market store will be used, and every product will be dismayed in the market. The business will be located within the Hong Kong market because it is close to the city center with a high density of the business premises and residential premises, it has wide pavement where customers can stand looking for products without obstructing others. The Hong Kong market is one of the biggest markets in the world enabling the business to be expressed to numerous audiences. The process will be more appealing because there are huge crowds in the market (Pinson, 2008). The location is advantages because the market has people from different social classes and backgrounds who attend the market. It is important for a tile business to have both visible separate entrance and storefront facing the main street of Hong Market. The business will rent 2000 square meters of serviced space at the cost of $40,000 per year. Internal refurbishing will need 30, 000 dollars. Some of the work will be done by the business. Also, an additional of 5,000 will be needed for chairs, desks, among other furnishings. Moreover, the telephone line is going to be staffed 24 hours daily having live operators, during this time from 8.am-7 pm our staff will be responsible for communication. Nonetheless, overload calls and day calls are going to go to the live telemarketing bureau. Most people will consider purchasing products after discussion with parents and friends in evenings. Lastly, the IT specialists, a team of 13 workers, will be at the premise to design and re-design update the tiles and tile software to be sold to clients. Sustainability & Impact It is evident that there is enough market for this product meaning that there are enough customers for the produced products (Halligan & Shah, 2010). The correct location is significant. Because the product will mostly be sold via an online platform, there will be less overhead costs. The main expense will be renting a space. Because there will be no major resources required in plenty such as water and electricity, the costs are going to be kept at a minimum, and the bargain will be transferred to customers. When the business plan is analyzed, there is a bigger chance of success of the project. The business will have to use discounted prices and the rates should be visible on channels of distribution and change it with the arising needs. The customer will be primary target of the Tile business. We will enhance online marketing through provision of customized services and products to the customers. The business will so use scan cards to capture the patterns to generate discounts for reinforcement of the customer loyalty. We will sell high quality products and services without compromising prices. Overall schedule During the 4th week of the September 2017, the company members came up with business die of selling tiles to members of the community to help them locate the lost things. All the members generated the idea because of the ever increasing complains of item lose and the need to increase profit margins (Blackwell, 2011). With the coming out of the business idea, the business plan was agreed to be prepared through discussion among all members. The business plan has to have the vision, mission, business conceptual marketing plan and uniqueness of the products. On 3rd of October 2017, John, marketing manager will set up and design a website from Google to promote the product. In website, there will be an exclusive summary about the products. Next, the financial managers are going to be in charge of securing significant financing by acquiring a loan. The loan will be used to launch the business; the John will lead the department of marketing to deal with suppliers. The company is aiming to get along the different suppliers, which come from various countries so that we are able to provide enough choices for consumers. Later in the year, the venture will be increased and the company launched by a stakeholder of the company. After the start of the company’s operation, the first sale will be in January 2018. The anticipate to get the first payment on January 10th 2018. Risk, problem, assumption The possible risks entail possible appearance of the new competitors and existing competitors in the Hong Kong market, which might reduce the profit margins of the Tile Company (Blackwell, 2011). Also, tax policy changes, increase in credit rate, and inflation increase is potential risks to the business. There is also small assurance that the interests and motivations of the business are going to remain consistent with the goals of the company or if the technology will be transferred easily (Pinson, 2008). Another change is the complex legal procedures and after factual questions, and patents cannot be predicted easily at the moment. There is little assurance that the products are going to sell successfully in the new market. The company’s success entering the market will depend on its capability of managing the business effectively, and satisfaction of the customer needs. There is an assumption that with credible information on clients and their prospects, we will be in a position to provide personalized services (Pinson, 2008). The business assumes that the use data for encouraging satisfied customers for recommending services to relatives, employers, colleagues, and friends will increase sales. Another challenge is that the company needs high skilled personal and enough capital before entering a new market (Pinson, 2008). Meeting the customer’s preferences and specifications will require constant technological advancement. It will be a hard to keep producing innovative products so that we can keep customers satisfied. Moreover, there will be a probe of choosing distributions and channels. The business will need more resources is establishing an effective distribution business model where the marketers will be distributing the products from the manufacturing place to the customers (Pinson, 2008). There will be need for money for storing products, money for inventories, selling merchandise, and the place of display. Moreover, there is no absolute certainty that Tile business is going to establish an alliance in Hong Kong market or smoothly maintain existing plans. There is also no absolute assurance that interests and motivations of the franchise are going to remain consistent with the goals of the company or transfer technology, market, manufacture, and comply with the regulatory commission (Pinson, 2008). Moreover, the patent position of its products, the legal procedures, factual questions that cannot be easily predicted at the moment. Similarly, the business at the present is not sure enough that it will sell its products and establish in Hong Kong market easily. Lastly, there is a risk of the company coping with the communist ideologies in the Hong Kong market. It is alleged that before starting a business in this market, a company is required to submit its manufacturing secrets to the state. If true, this is going to expose it to risks of stiff competition from state competition in the market, which might force it out of the market. Conclusion A business plan is normally produced to convince the stakeholders, banks to invest in business. The discussed business plan will be a blueprint for the business. It has some purposes such as acting as a yardstick by which business owners measure success to meet stated objectives and goals, it is a tool to obtain a loan from leading agency or attracts venture capital. Moreover, the concept of the business is producing products and purchasing produced products and the tile products are going to be sold aimed at different age groups. In order for a business to succeed and reap maximum profits, it is critical to making sure that its costs are kept at minimum. The Tile business is going to be focused on the selling of tiles that are normally used in identifying the lost items. References Blackwell, E. (2011). How to prepare a business plan. London: Kogan Page. DeThomas, A., & Derammelaere, S. A. (2008). Writing a convincing business plan. Hauppauge, N.Y: Barron's Educational Series. Halligan, B., & Shah, D. (2010). Inbound marketing: Get found using Google, social media, and blogs. Hoboken, N.J: Wiley. Huang, J., Leng, M., & Liang, L. (2012). Recent Developments in Dynamic Advertising Research. European Journal of Operational Research, 2(20), 591–609. http://dx.doi.org/10.1016/j.ejor.2012.02.031 Lee, J. (2011). The right-brain business plan: A creative, visual map for success. Novato, Calif: New World Library. Pinson, L. (2008). Anatomy of a business plan: A step-by-step guide to building the business and securing your company's future. Tustin, CA: Out of Your Mind & into the Marketplace. Tile,. (2017). Find Your Keys, Wallet & Phone with Tile’s Bluetooth Tracker and Save Up to 30%. | Tile. Thetileapp.com. Retrieved 14 March 2017, from https://www.thetileapp.com/ Zeng.F., Huang.L. & Wenyu.D. (2009). Social Factors in User Perceptions and Responses to Advertising in Online Social Networking Communities. Journal of Interactive Advertising, 1-13 Read More