Noteable Limited Marketing Plan - Case Study Example

TITTLE: NOTEABLE BUSINESS PLAN NAME ADDRESS PHONE NUMBER EMAIL Feasibility Plan Executive Summary Noteable Limited is an internet-based company that links students who need quality notes but could not access them during lectures due to worthy reasons with students who have good neat notes. It’s entry into the market will diversify and expand the existing notes exchange platforms to include categorization of notes per university and to control pricing in a way to attract customers (buyers and sellers). The business will be marketed in higher education institutions and in social websites where college students hangout. This business plan describes the type of business, management structure, growth plan, marketing, research, and contingency plan. It is a sole proprietorship business operation. Chief executive officer, accountant, and support team comprising web designers, programmers, and customer care relations experts will run the daily activities of the company that will make it the fastest growing and profitable internet based company of our country in two years’ time. The sole proprietor will contribute the startup capital that will operationalize the company to tap into the existing promising market niche. This venture will be successful because recent viability researches conducted in social websites reveal that students would wish to have that kind of a service. Contents 1 TITTLE: NOTEABLE BUSINESS PLAN 1 Feasibility Plan 2 Executive Summary 2 Contents 3 Description of Business 4 Management and Organization 7 Marketing Plan 8 Marketing Research 9 Financial Plan 10 Growth Plan 13 Contingency Plan 14 Work Cited 15 Description of Business This business will provide services by acting the intermediary role between students who do not have notes with those who have them. The company will tap business opportunity by solving challenges that students face due to inadequate notes that originate from missed classes and poor quality notes subsequently leading to failure in the final exams. Those who require notes will be posting specifications on the website. Those who have notes that meet those criteria will bid as proof that they have notes that meet the specified criteria within a specified time. The most important attribute of this business is the ability to provide specific notes as taught by a specific lecturer within the shortest time possible that a student needs them. Customers will have a chance to get top quality notes that are required to get excellent grades, thus avoiding the challenges of having poor notes and subsequent poor performance in class. Our customers include college students buying notes and fellow college students who are out to make money during their college years. Noteable limited vision is to create a friendly, trustworthy, and reliable website that will support students to excel in their academic endeavors. The vision will be achieved by linking students with perfectly clear notes with those who do not have them at an expense. It will keep students interacting and able to share knowledge as well as earn from their daily academic activities. The company will be called Noteable Limited and will have a website called Noteable Online. Notable name was preferred due to the frequent use of the word notes while searching solutions related to notes. Customers will associate the company name and the service they expect to make. Moreover, the word ‘able’ is used as a suffix to imply that they can get good notes and worry no more. Besides, it is a reminder to others that it is possible to make money out of the notes provided. It will be an internet-based company where staff and customers interact online by logging into their accounts as provided in the company website. However, the company will have one main physical address head office to host the Chief executive officer and the secretariat. Customers are allowed to make physical visits to the head office in case of any special services that are only possible through face-to-face interaction. Noteable Limited intends to serve mainly college students who have conflicting interests in school, job, partying, sickness, job search, parenting, and many other issues that reduce their attention in classwork and result in subsequent low quality of notes. Moreover, each lecturer has a special type of notes that cannot be searched online. Hence, such notes were only available from classmates who attended lectures and got first-hand notes. Noteable Limited aims to start locally by engaging clients in our country before venturing to global markets that are quite reachable via the internet. Approximately, sixty percent of college students are worried about the quality of notes they have due to their divided attention in classwork. Of these, thirty percent obtains information from internet search engines such as Yahoo, Google, and Yahoo among others, while supplement knowledge they get from their scanty notes. The others manage academic activities that require clear understanding of concepts taught through hardships to get the least possible grades that will make them qualify for the next semester (Latreille, 18). Competitors in this business are wide range, including internet search engines such as Google that enable students to supplement their notes from websites and online books. Other online note-sharing organizations are not stable now, started recently, and have quite a number of challenges facing them. They include ‘Notehall’ that was sold to ‘Chegg’ that does not have fully intengrated service into platform, ‘Coursehero’ that offers random college notes without classification, and ‘FlashNotes’. The most challenging competitor is ‘FlashNotes’ because it has similar ideas and strategies. Nevertheless, ‘FlashNotes’ has challenge marketing and expanding the business because a survey conducted in social media indicates some students have never heard of it. They wish such services were introduced because it would be of great help to them. As many notes as the students want can be uploaded. The authors of the notes set their own prices. When they are sold, the student keeps 70% of the price, while ''Flashnotes'' gets the other 30%. To create a competitive edge, Noteable Online will embrace technology in advertising its services through social interaction websites that are appealing to university students such as Facebook, Twitter, Googe+ and others that may come up to ensure there are constant customers who require notes and who are willing to sell notes. The registered students will be able to offer their notes, indicating the university, course, and Professor’s name. During initial registration, they will pay about $5-15 to start their business. The best pricing policy is to keep 25% from the sum made by students when a set of notes is sold. The clients will leave their feedback, rank the authors of the best notes, and will get additional scores and discounts for next purchases. It will be the task of the support department to process the data and maintain a website. All the payments will be through PayPal, for instance. All payments will be made a day after customer confirms that the notes meet the criteria, hence creating a competitive gap over other companies that take too long to dispatch payments to customer accounts. Noteable is currently a start-up innovative idea that will have the opportunity to enjoy almost a monopoly market as well as address the risks that face companies based on new innovative ideas. Once customer trust and brand name are established, the company will consider a spin-off for activities that will be making less impact to concentrate on ventures that are more profitable. For instance, the company may spin-off notes depending on the subject. Depending on which subject is not making good sales, the company will entrust another company to run exchange of notes related to that subject only. The business has negligible effects on the environment because it is based on online services and online interaction between buyers, sellers, and the staff. The company looks forward to investing in the environment in its corporate social strategy plans through recycling, reusing, proper disposal of its materials, and supporting social responsibility initiatives to ensure a conducive environment for the current and the future generation to live in. Management and Organization Noteable Limited management will comprise the Chief Executive Officer (CEO) who will be overall in-charge managing the daily affairs of Noteable Limited Company. The CEO will be a master’s graduate in business administration or in possession of any customer care, human resource management or any other related course. Below him will be an accountant who will be responsible for the execution of financial transactions. The accountant must have a diploma in accounting (Latreille, 18). Others below them will be web designers who have certificates to prove proficiency in web designing. Students in Information Technology and customer relations will comprise the support team. The company will outsource legal services in situations where a lawyer is required. They will be maintaining the website and daily interaction with the customers (Latreille, 21). The authors of the notes will find us on Internet through advertisements, in particular, in social nets, as well as clients needing such services. Marketing Plan Marketing plan will begin by identifying the thousands of students in our country who have the potential to miss class or have poor quality notes. The next initiative is to link them with counterparts who have all the time to attend lectures and make good quality notes. The present market is estimated to be 200,000 students studying in various universities in this country (which is approximately 1 % of students in higher education institutions), and the company aims to control 40% of the market share at the beginning (NCES, 15). It is estimated to double as the company expands to target middle level colleges in the next two years. Marketing strategies will include giving special attention to those working while studying and who comprise about twenty percent of master’s students in our country. University students are using social websites at a higher rate than other age groups, according to a social website research. Hence, the appropriate marketing strategy will be through social websites and one-on-one campaigns in campuses and college institutions. The company will expand market share by investing in other countries as the company establishes its name in the market. Later, Noteable Limited will expand to worldwide international markets. Seasonal opening and closing of school activities will affect the business. During school holidays, the company will reduce the number of staff to lower operational expenses. Profit margin per item will be low to enable customers get their right monetary value. However, with more customers transacting, the company will be able to consolidate funds to big profit margin. Hence, marketing will be part of its core business activities. Noteable Limited acknowledges there are a wide range of competitors in this sector, which include both internet search engines like Google and other online note sharing organizations. However, Noteable will beat them all through a uniquely thorough market research, advertisement, and customer care that will make it the number one customer choice. Marketing Research Market research analysis will be a key pillar for this business to forecast sales, determine appropriate pricing, and evaluate customer satisfaction. By evaluating consumer satisfaction through email after completion of every task, the company will get information that is essential for improvement of the quality of services. Besides, the company will be able to address real needs of its customers as dictated by emerging market needs and adjust its operational costs based on sales forecast findings. The target market will comprise university students who have other commitments such as games, drama, work, illness, and many other reasons that require them to miss classes. Hence, the company will strategize to meet them during the occasions that they are expected to miss classes and comfort them with a solution of buying notes from the company. Besides, the company will approach students in lecture halls to let them know they can make money out of their notes. More research will be conducted to evaluate competitor’s market price to enable Noteable use competitive pricing. Financial Plan In the beginning, there will not be many earnings, as long as time will be needed to gather the database of clients and notes' authors. At the start, the business is projected to make $3927.5 per week translating to $15, 710 per month. 28.54 % monthly income will be incurred in paying salaries and allowances. A total of 67.69 will be used to cater for monthly expenses.(Longenecker, Petty, Palich, & Hoy, 77-123). The startup capital is estimated to be $3,853,000 that comprises costs of items needed to start such as costs of buying three desktop computer at a cost of $1439.97, office desks, and chairs at a cost of $ 209.95 as well as monthly expenses. As an online platform, the start-up costs will comprise only expenses on launching a website and the work of the programmer. Below is a table shows start up estimate as discussed secretly with one of the managers at FlashNote (established competitor in the market). Start-Up Capital Estimate Noteable Limited 3rd Aug, 2014 Monthly Costs Monthly Expenses Cash Needed to Start % of Total Source of Estimate Salary of owner-manager $200, 000 $600,000  15.57   All other salaries and wages $150,000 $500,000  12.97   Rent $50,000 $150,000  3.89   Advertising $3000 $12,000  0.31   Delivery expense $1000 $10,000  0.26   Supplies $20000 $50,000  1.30   Telephone $400 $3000  0.078   Other utilities $400 $4000  0.104   Insurance $600 $7000 0.182    Taxes, including social security $1000 $10,000  0.26   Interest $500 $2000  0.052   Maintenance $6000 $60,000  1.56   Legal and other professional fees $10000 $1,000,000  25.95   Miscellaneous $2000 $200,000  5.19   Subtotal $441500 $2,608,000  67.69   One-Time Costs Cash Needed to Start % of Total Source of Estimate Fixtures and equipment $20,000  0.52   Decorating and remodeling $10,000  0.26   Installation charges $30,000  0.78   Starting inventory $5,000  0.13   Deposits with public utilities $50,000  1.29   Legal and other professional fees $70,000  1.82   Licenses and permits $200,000  5.19   Advertising and promotion for opening $500,000  12.97   Cash $300,000  7.79   Other $60,000  1.56   Subtotal $1,245,000  32.31   Total Estimated Start-Up Capital $3,853,000     Advertising can be done free of charge through social nets. Sources of capital will come from the owner of business who will sell shares and gather money from friends and relatives. Nevertheless, if additional costs are needed, many ventures and angel funds might be interested. By the end of the year, sales are expected to rise to $40000 per week. Expenses are also expected to rise because employees’ salary is based on 40 percent of sales. Growth Plan With increased advertisement, demand, and number of transactions, Noteable Limited will expand its venture to more geographically remote schools worldwide. Besides, high school notes will be included as the business grows. More programming competent staff will be required to expand the website depending on increased number of transactions and to promote a website from attempts to hack it. There will be a need to increase personnel to attend to increased number of customers. The good thing about it is that the business growth will be able to accommodate the increasing wage bill. The markets of the future will be established by new concept of distance learning. Students who are millions of kilometers away from classrooms will be able to acquire lecture notes immediately after class. Contingency Plan If sales projections are too low, Noteable Limited will ensure that the recurrent expenditure is sustainable and proportional to the profits gained at that time. Moreover, if stiff competition threatens market share, the company will invest in market research to find out what is it that the customers prefer and what are the strengths of the competing businesses. This will enable it to make good strategic plans. Liability issues such as salary payments even when the company has not made profits can affect the business. To prevent this, employees will be required to agree that their salary payments will be based on a fraction of sales per month. Delay in start-up can be caused by legal requirements in starting a business. Therefore, the company will ensure it has a permanent employee to follow up business registration process. Work Cited Latreille, P. L. (2008). Student attendance & lecture notes on VLEs: Part of the problem or part of the solution. University of Bristol: HE Academy Economics Network. pg 21-30 Longenecker, J., Petty, J., Palich, L., & Hoy, F. (2011). Small business management: Launching and growing entrepreneurial ventures. Cengage Learning. Retrieved from http://books.google.com/books?hl=en&lr=&id=Un28jS2nF9oC&oi=fnd&pg=PT4&dq=cost+of+starting+business+in+USA&ots=6WAPrcM6q9&sig=JHvaV4_MawtOdJfZYzzqsziknf4. pg 77-123 Watters, A. (2011). The Cost of Starting a Small Business in the U.S. and Abroad [Infographic]. ReadWrite. Retrieved August 3, 2014, from http://readwrite.com/2011/01/24/the-cost-of-starting-a-small-b. pg 5 NCES . "Fast Facts Enrollment". U.S. Department of Education. Retrieved 21 May 2014. Pg 15 Read More