Final Business Plan
Swiff Electronics is a start-up cell phone accessory and electronic distribution company. Its strategy is to provide all cell phone users who have continuous dead battery while engaging in an important call or entertaining entertainment selection.
It will capitalize on the intricate engineering design and manufactured product that is capable of recharge a cell phone. There are many untapped potential markets within this industry, as the desire for high-quality; stylish goods that are convenient, affordable, and easily sourced are in great demand. It is the firm’s intention to import products from the leaders of electronic, Teqtronics and introduce it to a target population within Jamaica’s Metropolitan or corporate area and to make Swiff Electronic a house hold name customer come to know and trust.
To do this the company’s long-term goals are to achieve a 20% market share in the Jamaica’s build brand image and brand equity through marketing, achieve a sustainable 55% profit margin, and eventually produce our very own luxury product in addition to the initial, moderately-priced line.
Swiff Electronic is a limited liability corporation in which the sourcing of the product offered “Spot Charge” is done internationally while the marketing and sales are focused in and around the corporate areas of Kingston Jamaica, for short term purposes.
Ownership is divided among five principal individuals who are putting up the initial investment. These include: Dexroy Jone – Managing Director, Keon Hinds – head of Finance and administration, Calford Ramsay Head of Marketing and Human Resources, Dwayne McKay McIntoch Head of Product Development and Kirkpatrick Binns Head of Operations. The First outlet of Swiff Electronics will be located at 13 Duke Street, Down Town Kingston, Jamaica. The present location is approximately 700 square meters and should be large enough for the first three years of the company’s growth.
The portable Chargers will be stored at the Duke Street location and will be dispatched to different location based on demand and agreement signed with our feature business partners.
The initial product line will depict the full effect of the product that will be offered, inclusive of a range of different colors and possibility the opportunity to personalize. The company plans to release more models, which will be integrated as we aim to give customs a wide selection to choose from.
The pricing strategy will be to initially undercut our main competitors by selling at a minimal profit, using a market penetration strategy. Then, pricing will be adjusted to be directly competitive with the other major competitors. The price per Spot Charge is expected to be unbelievably affordable.
Entry into the telecommunication/electronics industry comes at a prosperous time. Over the past two years, the purchases of cell phone have increased vastly and the trend is expected to continue once the cell phone manufactures continues to introduce new features to their designs.
This will only adversely widen our market as individual continues to seek charge “Where ever, when ever”. One of the most important recent trends is that cell phone users are willing to spend higher amounts on their phones because of the enhanced image appeal and reliability. Therefore, a company that can build a substantial brand image in this industry gains a significant competitive advantage. It is the aim of Swiff Electronics to capitalize on its high quality and reasonable price while pursuing the innovative styles necessary for brand building. • Financial
The company’s start up costs will be $ . Owners equity will be provide $ , $ will consist of short-term borrowing, and the rest will be long-term loans. The majority of the start-up costs will consist of rent, research and development, initial inventory, and a strong cash account.
Swiff Electronics mission is simple and straightforward:
- Purpose – Swiff Electronics exists to provide a faster, more reliable source of power for all mobile phone users. Swiff Electronics sells solutions & results!
- Vision – By providing fast response, informed expertise, and consistently high quality solutions, Swiff Electronics aims to generate enough satisfied repeat customers to provide a stable retainer base. This will generates sufficient profit to provide a comfortable living for the owner.
- Mission – The short term objective is to start this company quickly and inexpensively, with minimum debt. The long term objective is to grow the company into a stable and profitable entity that the owner can easily and comfortably manage.
Marketing Slogan – “Spot Charge where ever, when ever! ”
Keys to Success
The keys to success for Swiff Electronics are:
- Marketing and Networking (getting the name out there).
- Responsiveness (being an on-call supplier paramedic with fast response time).
- Quality (getting the job done right the first time, offering 99. 9% or greater guarantee).
- Relationships (developing loyal repeat customers – retainers).
Analysis of the business environment
Jamaica’s telecommunication sector is dominated by three major players, and a number of small entities that presently supply all the electronic accessories that Jamaican’s my need for there cell phone. It has been observed however that none of these companies provide the ease or accessibility of charging your phone “where you want, when you want”, Thus the reason why Swiff Electronics has been developed. Over the past five years, the rate of failure of industries in Jamaica has remains relatively steady, and the implementation of new businesses and organization has marginally increased.
Swiff Electronics will be a new organization that is not yet established and has not yet developed its clientele. However the fact that the market for call phones keeps growing, as manufactures aim to convert a product that was once used only for communication, to a new revolutionized product that consist of attention grabbing entertainment. The need to keep the batteries of these fascinating gadgets charged “Where ever, when ever” has arisen, Thus giving Swiff Electrons the operation to be very profitable once the right marketing approach is taken.
Presently there are trend that are been experienced in the industry which are classified as positive or negative depending on the effects these trend have on particular businesses.
These trends include:
- implementation of additional features to the ordinary phones
- Reducing the size of the gadgets
- Reduction in pricing causing more individuals to be able to afford a phone
- modification of batteries to have longer life
- Developing unique charging outlet that would be difficult to source
Over the past year the population of the marketing community has been generally stable based on results obtained form the Statistical Institute of Jamaica. The attitude of the community toward the business has been favorable as the results were seen in a feasibility study that was done in and around the marketing community.
Description of product
The Spot Charge, as its name implies is a miniature device, very handy portable charger which is operated on a single AA battery and is able to power up any cell phone batter in minutes.
Pretty compacted and stylish, the Spot charge is like a tube and is small enough to be fitted anywhere. So be it anywhere in the world, you can charge up your phone battery anytime by just plugging one end of the Spot Charge adapter into the unit and the other into the cell your phone. Not only will it charge the battery, thanks to its design you can handle your cell phone while it is charging. There is a blue light at one end of the Spot charge that indicates when cell phones is being charge, and if the light goes out simply replace the battery.
Spot Charge is ideal during power outages and when camping, hiking or sailing. It gives you the opportunity to make and receive calls as soon as you plug it in. This device is able to power up a cell phone for two hour of talk time or 40 hours of standby time on one AA battery (included). It “Trickle” charges an average cell phone in 1 ? hours, and comes with a charging adapter that is compatible with: Motorola (Motorola ROKR, Motorola RAZR) Audiovox Kyocera Samsung Nokia Sanyo Sony Ericsson LG cell phone – even Blackberry PDAs! Spot Charge 3” long x ? diameter and weigh less than 1 oz.
Analysis of the competition
Based on preliminary investigation and survey of the market, there were no companies or organizations supplying the product that we are introducing to this market area, Therefore when it comes to identical portable chargers like the Spot Charger there are no real competitors. There are however products that provides that same services as the Spot Charge. These products includes car charger, house hold chargers, which are provided by the following companies.
The pricing strategy that Swiff Electronics will be using is to initially undercut our main competitors by selling our product with a small profit of 3%, using a market penetration strategy. Then after getting a share in the market, pricing will be adjusted to be directly competitive with our other major competitors. Swiff Electronics will also maximize sale by spreading the name of the company and products offered by taking part I seasonal sales that will comprise:
- The use of coupons
- Bundle pricing
This will be done to capture the attention of the public in the peak shopping seasons.
For customers who purchase our product and require the product to be shipped to then, Swiff electronics will comply with these requests; however the total price of the product will now include the additional cost for shipping. Credit Policy Swiff electronics credit policy will not be the regular policies that we know exist in the business world. What we will be introducing is a policy called “cash on delivery”, what this therefore means is that we deliver the goods and our customers will pay us on the spot.
Considering the kind of product we are introducing to the market and that we have no real competition there is no doubt that this policy will work. No other product in Jamaica can do what the spot charge does. This is certainly an advantage in the business that gives us the opportunity to do with our product whatever pleases.
There are no real competitors because Spot charge is new to the market but what we have are potential competitors. The advantages expected would be compared to businesses offering services that are not exactly like Swiff electronics.
The quality, price, location and turnaround of the business will all be an advantage over potential competitors. The quality of the product is second to none and the price compares to that of the cost of items that would provide similar service (car charger, regular phone charger etc. ) but the advantage we have is that none of those items are portable and discrete as the spot charge. Market segmentation The market segmentation is divided into the leading target markets. The division reflects the differences in marketing strategy that will be used to target each different market. The “yuppies” who enjoy being the first on their block to have a new, “chic” and “hip” product.
- The “yuppies” who follow trends and buy products that everyone else has.
- Older adults who simply use and depend on their cell phone for business or pleasure.
- Average college students who seeks convenience while indulging in entertainment.
- Technologically advance senior citizens.
- The individual who engage in long distance trips who are plagued by dead battery.
Market analysis Potential
Description of Location
Based on results gathered from a feasibility study that was done regarding or product “Spot Charge”.
Majority of the individuals who would welcome Spot Charge a part of their daily routine resides outside the metropolitan area of down town Kingston. A decision was agreed on by all executive members to locate the first business outlet of Swiff Electronics, within close proximity of the heart of down town Kingston. This would give us an advantage to bring Spot Charge closer to those who have a higher level in interest in the product. A Survey of the down town area was also carried out, to find out in which area Swiff Electronics would be more profitable. The result of that survey led us to source a shop space that is located at 13 Duke Street.
Duke Street is one of the most busiest streets, in the down town area that Is not only populated by commercial entities but also other small businesses that are doing exceptionally well, which is as a result of their location. With Swiff Electronics being a new kid on the block and the only Electronic/cell phone accessory dealer, we are expecting to welcome a number of curious shopper as well as individuals who are knowledgeable about our product and services.
The ultimate promotional goal of Swiff electronics is to:
- To communication with the target group and create awareness and interest in the service Spot Charge has to offer. To increase the use of Spot Charge, hence eliminate the break in communication associated with dead cell phone batteries.
- To acquire an increase in revenue.
- To enhance name recognition
There are many ways to market the service offered by the product Spot Charge, however, the strategies listed below represent a few cost-effective ways to accomplish the marketing objective. Communication Mix In communicating with the target group, we will use a combination of communication channels such as advertising, publicity, promotions and personal selling. Because people need to hear a message many times from a variety of sources, we will employ a combination of these with a variety of approaches.
Management and personnel
Swiff Electronics is currently not hiring any employees. The decision has been made to postpone hiring until the company begins to succeed. After approximately one year, there employees will be added to the current five.
Dexroy Jones is the managing director, and founder of Swiff electronics. Jones was president of production at Swiss Army Watches before he decided to return to his native home land to start his own company. He graduated from the University of Technology Jamaica, and received an MBA at The Florida International University. Calford Ramsay: head of Marketing and Human Resources division. He has worked and co-owned Wright and Ramsay, an advertising agency, for fifteen years. Ramsay received a BA and MBA from University of Technology Jamaica “UTech”. Dwayne McKay McIntoch: Head of product development division. He was previously vice president of operations at Greentree Sports in Phoenix, AZ.
He received his BA from Caribbean Maritime Institute Jamaica “CMI” and his MBA from UCLA. Keyon Hinds: Financial Controller and head of administration. He was previously financial controller of French Collection for United Kingdom ”FCUK” for seven years. He has returned home to provide his knowledge and expertise in the building of Swiff Electronics. He received his BA at the University of Technology Jamaica and a MBA at Cambridge University.
Kirkpatrick Binns: Operation manager.
The following important gaps exist:
- The present team has little sales experience.
- There is no current in-house designer – this should be corrected within a year.
- There is no international manager.
The personnel plan calls for adding three employees by the end of the first year for a total of eight. After the second year, employment is expected to increase by another four. These new employees will go into production and sales.
Swiff Electronics aims to provide the finest services to its employees. In fulfilling this aim the company provides benefits for all full time employees which include:
- Health plan
- Life insurance
- pension plan
The company also observes all public calendar holidays. For public holidays, salary paid employees will receive a day off, and hourly paid employee will receive double pay for the hours worked on these days. All employees are also entitled to three sick days per month however only full time employees will receive pay for these periods. Vacation time is available for all employees having being with the company for a minimum of one year.
For employees who may experience a death in the family they will be eligible for additional days off. For death within the immediate family, employees will receive 4 working days off (spouse, children, parent etc. , and 2 working days off for other members of the family (cousin, uncle, aunt etc. ). The company will also present a floral presentation to the team member who has experience such tragedy. Swiff Electronics hiring policies are governed by:
- Title VII of the Civil Rights Acts
- Age Discrimination Law
- The Americans with Disability Act
- The Family Leave Act
As the company gives equal opportunity to all applicants irrespective of the colour of their skin, religious believe, age, nationality, disability and sexual orientation.
Swiff Electronics is a partnership or limited liability company. The decision to choose this organization form is as a result of legalities that surround our organization. Being a limited liability organization gives us the opportunity to pull together the needed funding as well as a profound and well grounding decision making team. Calfrod Ramsay the Marking manager is currently in discussion with the producers of our product, making agreement to be the main distributor of the Spot Charge within our marketing environment. With that agreement finalize no other company would have legal right to purchase or be a distributor for the manufacture of Spot Charge within this market.
In ensuring the safety of our employees and property is .
Swiff Electronics source all its products from Teqtronics Manufacturing located in China. Although there are not the only suppliers, Teqtronics has proven to be more consistent in their business agreements and the quality of the product they offer. They are also the only producers of the brand and type of Spot Charge that we will be marketing. The credit terms offered by Teqtronics are unbeatable and they give us the opportunity to choose the quantity of products we would like to order based on the demand of our customers.
There are a number of uncontrollable risks that plagues new businesses that are now on the list of Swiff Electronics. These risks include:
- Natural disasters – Hurricanes – Storms – Flood etc.
- Rate of inflation
- Changes in technology
- Changes in consumer tasks and life style
- New competition
- The continuous decrease in value of our dollar vs. our counterparts
Managing Director Dexroy Jones Financial Controller/ Administration Keon Hinds Marketing and HR Manager Calford Ramsay Product Development Dwayne McKay McIntoch Marketing and sales TBA Operations manager Kirkpatrick Binns Administrative Assistant TBA Marketing and Sales TBA