A Good Quality Screen Protector in the University Market - Assignment Example

Author Note

Abstract

The Business Proposal gives an overview of the selling of IPhone screen protectors in New Zealand. The product will be imported from Schengen, China. The market for the product is mostly the student and working people. The business proposal has a lot of potential as the seller has access to the University market, which provides him with a high profit margin.

Keywords: Iphone, Screen Protector, New Zealand, University, students, business.

The demand for phone accessories has been on a rise that has also brought about a rise in business opportunities for many people. The paper is a business proposal for the sales of Chinese IPhone Screen Protector as well as providing an additional service of attaching those protectors for the customer. The proposal plans to provide specifics about the business such as the features, uses and benefits that are offered. It will describe the target market and further analyse the positioning of the product.

Proposal

The business proposal as mentioned above is about selling Chinese IPhone screen protectors and providing customer service by attaching the protectors for the customers. The proposal has many features, benefits and uses.

Features

The screen protector business has a lot of features such as,

Low investment: The business requires low investment, as the protectors will be imported from China for a reasonable price. Limited capital can be spent and further higher profits can be earned.

High Margin: The profit margin for screen protector is very high as it does not require a huge amount of capital. The profits are usually enabled at a percentage signifying low investment.

Wide Market: The market for screen protectors is wide and hence the options that are provided by seller, should be wide enough to cover a range of products and lead to increase in sales.

Benefits

Similar to the features, the benefits provided by the business are,

Huge Profits: Profit Margin is high as screen protectors can be bought in bulk and further sold at a margin which will enable a high profit value.

Future Scope: The scope of the seller in the future to further add more products in his product list along with the existing ones such as Iphone cases, Iphone accessories, etc.

Break-even: If there is not much sales, the seller can resell the existing products to various online accessories providers, who can buy off the products in the market price, assuring no loss for the seller.

Uses

The offering has the following uses,

Protection: The most important use of a screen protector is that it acts as a shield for the phone’s screen. It protects the device’s screen from any kind of scratches, liquid spills, etc.

Convenient: The buyers will not face the problem of putting the screen protector by themselves and the seller will put the screen protector for the buyers.

Sourcing of the Product

The product will be sourced from a company located at the Shenzhen district in China. The company is called Dongguan Elephant Electronic Technology Co. Ltd. and has 17 years of experience in manufacturing screen protectors for phones. The cost for bulk orders is $0.59 per piece, which is easily feasible. Also, the price is appropriate to earn a profit if sold in the University market (Dongguan Elephant Electronics Technology Co. Ltd, 2017).

Target Market

The target market for IPhone screen protectors are divided into three types:

The generation of cell phones: IPhone users aged 18-24 fall under this category, where cell phones are parts of their everyday lives. They are the most important users of screen protectors, as their phones are the most used due to wide range of applications that are provided.

Transitioners: IPhone users aged 25-34 fall under this category as they grew up with cell phone knowledge and are still updating themselves about it. They use cell phones only for few purposes and mainly business related purpose.

Adult Adopters: IPhone users aged 35 and older, who are not fully knowledgeable about cell phones and are still having a grasp of it and hence are not regular customers of IPhone accessories. They are very cautious and protective of their phones (Lipsman, 2007).

Segmentation

The market can be segmented into types such as,

Students: IPhone screen protectors are mostly used by students as they are the most prone to accidents while playing or any other activity. The Student market will be mainly served by the offering.

Working people: The people, who are working or own a business, make up 40% of the IPhone market. They are also one of the major markets that is served by the offering.

Needs Fulfilled by the Offering

The segmentation of the market according to the customer behaviour highlights that cost effectiveness is a priority consideration for the customer, which is further followed by quality and reliability. Mostly, the customers look for a good quality screen protector so that their phones are safe and protected from any kind of accident. It is recommended by Apple to change the screen protector in every three months so that the screen can remain cleaned and no dust can be accumulated. Therefore, most customers usually change their screen protector in every 2-3 months (Hoffman, 2014).

Why choose the target market?

The target market, explained above is very profitable for the seller as New Zealand has a student population of 37%, which suggests a very high number and the working population comprises of 39% (Population, 2017), therefore both the numbers give an estimate about the profit expectation, The target market will be further segregated into different cell phone users which will cut down the profits. As cell phone is a necessary in the present world, people generally prefer using a screen protector as the warranty on most cell phones does not include repairing broken screen. Therefore, most consumers generally prefer buying a screen protector for $7 than get a new screen for the phone worth $200.

Product Positioning

SWOT Analysis

Strengths: Screen Protectors are considered to be a necessity for an IPhone user as they protect the IPhone from any kind of accident. The cost of the screen protector is generally very low and therefore allows a high profit margin to be set.

Weaknesses: Sales of IPhone accessories are not stable, as many consumers prefer approaching their existing protector providers. The business will be very monotonous, as the seller will be focusing on only one product. Cross selling cannot happen.

Opportunities: The launch of new IPhones will increase the product demand. The company has an opportunity to expand the business by including other phone accessories such as cases, headphones, etc.

Threats: Competition is tough, as there are many existing and well established competitors in the market that are playing a major role in the accessories department.

Competitive Advantage

The competitive advantage of the seller against other similar offerings is the marketplace for the seller. The seller has access to the university campus and the most common customers are the students and the seller can be assured of the profit margin that will be incurred due to the competitive advantage. The competitive advantage puts a business in superior position over its competitors (Kaplan & Norton, 2008) and in the mentioned case, marketplace is considered as a competitive advantage for the seller.

Price of the Product

The product will be bought at a cost of $0.79 per piece, including transportation and purchasing cost. Therefore, the seller has decided on a price of $2.80. The price signifies a good profit margin and is also inexpensive in the local market.

Why is the Price Appropriate?

The price of a screen protector in the local market ranges from $2.50 - $4. Therefore, the price that is set by the seller, is very profitable as well as inexpensive for the company. Setting an appropriate price is important for the company as the pricing strategies should focus on all the available data so that profit and market behaviour can be kept in mind (Ingenbleek & Van der Lans, 2013).