During the preparation of this assignment the main objectives have been
Ø To analyse the business plan and its implications
Ø To present with the all dimensions pertaining to the market segmentation and strategy implementation and their approaches
Ø To present with the the financial sections with the comparative approach so as to determine the potentialities of the new business and growth aspects and prospects
Ø To assess the bases for the strategies development for marketing, and finance in particular
HAM ROVER LTD (H.R.L) is in start up situation at present and is going to be producer of washing machines. Presently this company is located in the Hampshire , in united kingdom and having the capital enough for establishing itself in the competitive market place so as to secure a good market share for its products by targeting the well defined and segmented consumers thereof. While it is also developing on sources so as to solicit its start up financial resources so that the available with capital is not imbalanced due to unequal distribution and investment being to be made initially with due efficiency and effectiveness.
The company intends to start up its production work in the month of may 2010 to take the advantage of the increased product demand for washing machines. At present it is determined to start up production in the current location of Hampshire. And it is going to launch the product under the name SEA-VIST. The product has been designed and going to be manufactured while keeping in mind the needs and basic requirements of the common housewives. The core features to turn on this product are its easy to use (being user friendly) and less maintenance cost which must be having a sure shot impact on the sales of the company and would enhance its reputation while compared with other traditional washing machines producers in the market place for this particular market segment needs and demands. The company has a strong and creative market research department which has, since its inception, developed an effective and potential customers database and referral networking system through its marketing survey and campaigns programmes. And the successful and positive market results have made sure the owners of the company for earning a great profit in the coming years to come and establish itself as a company of good repute and highly qualitative product. The later sections , will be comprising of their financial projections for the coming two years as to measure the financial stability and marketing effectiveness and efficiency of its operations.
The prime goal of H.R.L is to provide the highest -quality and versatile washing machine as the product. The main target customers of this product are common housewives and maids. The mission of H.R.L is to provide better price range than other commercial and household washing machinery manufacturer who claims to deliver premium quality services. H.R.L management has realisation that there is lot of untouched market potential available in the present market. The main reasons of this gap are:
Ø The current manufacturers are too diversified. Therefore, they failed to focus on the customised need due to increasing changes and tastes in the housewives being segmented.
Ø The lack of high precision control in the washing machines which makes them fail to perform in the operations specific to these consumers and the relevant segment.
The success of this company depends on the following key factors
Ø User friendly options and technical alignment being proportioned to the housewives and maids needs and demands within
Ø Controlling and maintaining the quality standards to deliver premium quality
Ø Concentrate on precisely controlled washing machines.
Ø Incorporating the recent technical innovations by investing significant budget in research and development
Ø Keep focusing on the referral business and growing it further
Ø Enhanced efficiency of production operations
Summary Of The Company
H.R.L is a manufacturing firm in strat-up phase, and its management team will consist of four executives for marketing, sales, administration and finance operations and personnel in the departments respectively. The executives will bring a significant amount of experience in the relevant field and all belong to electric and washing machines manufacturing industry. The management team perceives a chance to hold a good amount of market share, by concentrating on customised requirements of the local housewives consumers. This can be done by providing highly user friendly and precise control in the product of H.R.L than the other competitors present in the market. The organisation structure of the company is a closely held corporation and majority of the company share will be held by the main four executives.
The Company is looking to collect roughly 0.1 million through loans and rest from the private investors. These funds are required to carry out the start-up operations. H.R.L is having one construction site in Hampshire.
The H.R.L will have closely held organisation structure. And the Board of Directors will be formed by five main shareholders. H.R.L is also looking forward to institute a public offering in the coming year in order to increase its financial capability. This will provide the H.R.L to carry forward their growth plans much more rapidly. The main shareholders of the company want to retain the almost all company's stock for the future plans.
Chief Executive Officer.Explicit experience in washing machinery manufacturing, specialises in Sales and Marketing
Chief Financial Officer.Having experience of managing big financial accounts like miele and Electrolux.
Somenick of Sales.Expert in manufacturing sales and have a good network in customer base.
VP of Marketing.Expert in business development and marketing strategies.
About The SEA-VIST Product
H.R.L is going to manufacture the washing machine with difference specially the user friendliness with precision control and operative effectiveness so that the needs of the housewives and maids are satisfied at the fullest. The main focus of the company will be on the machine's engineering and reengineering and the efficiency of manufacturing operations. This will help the company to achieve higher quality than the competitors who are not focusing on precisely controlled washing machine for the customised needs of the housewives and the maids.
The prime goal of H.R.L is to provide the highest -quality and versatile washing machine as the product. The main target customers of this product are common housewives and maids. The product has been designed and going to be manufactured while keeping in mind the needs and basic requirements of the common housewives. The core features to turn on this product are its easy to use (being user friendly) and less maintenance cost which must be having a sure shot impact on the sales of the company and would enhance its reputation while compared with other traditional washing machines producers in the market place for this particular market segment needs and demands.
The industry of washing machines is quite open and lacking the presence of large companies. The market has few large companies who are dominating this industry in the marketplace. The main players in this market are miele, whirlpool, hoover, and credr.The largest company in this sector is miele; it holds roughly 45% of market share. These main players have significant large marketing strategies. They focus on the large commercial hotels , laundarates and other big customers groups and local households.
The distribution channel in this industry consists of local distributors who market the company's product. These local distributors are generally franchises of the manufactures. There is a very minimal direct sale volume especially to very large customers. The key feature of this distribution channel is that these distributors can offer close relationship with the customer and also provides customised solutions and good after sales.
The purchase criteria of customers in this industry are; after sales, reliability and customisation provided by machine manufacturers. “After sales service” also includes the availability of parts and technical support services. Customers make their purchase decision after considering the reputation of manufacturer in terms of quality, services and brand. This is very big investment for any washing machine producer and company because of their being assumed and justified long term assets.
Growth Of Market
The industry of washing machines (including personal and professional users both ) had been sized to be by £20 the last year. miele, whirlpool, hoover, and credr had the contribution of £2.5 billion to the total sales volume in united kingdom alone. Being the stable market for this industry products , the annual average growth rate is 6%. The customer base of this market is made up big commercial hotels, laundariates, and private houses. The main focus of H.R.L is on local houses and housewives , as they usually have high volume demands and their investment is quite significant in products like H.R.L's product. They have the largest requirement of these machines to carry out their washing cloth functions.
The local and small washing machines companies are one of the sub-set elements of commercial washing machines producers and manufacturing companies which are growing very rapidly. The market of these small washing machines companies have lowest entry and exit barriers. Hence it quite easy to enter in this market and capture the market shares with well designed strategies. Still this is not the prime focus of H.R.L as the market size of these small washing machines companies is low and unattractive.
The recent economic recession has affected the machinery industry the most.There has been sales drop reported in the large companies working in this area. The main reason in the decrement of sales volume is the weakening of global economy and also the customer confidence is degrading. If this recession economic persists for the long time duration then it is expected that H.R.L will face difficulties achieving target sales and finance.
One recent trend in the manufacturing sector of washing machinery is customisation. This indicates that manufactures are focusing on the real customer need and incorporating the customisation machinery introduced in the target market.
Segmenting The Market
This company has developed strategy to focus on nationwide houses and users being housewives and maids. The annual revenue from this targeted sector is £5 billion. This is the main reason to eye on this sector. The main requirements of these companies are cost effective and user friendly washing machines which should be long lasting and can perform their specific tasks with higher efficiency. They should be light and easy to move. User friendliness and precise control offered by the machine manufacturers are very well appreciated by these consumers.
H.R.L is expecting that these customers will be attracted more towards the “ SEA-VIST”. As this model matched with the customer expectations, their acceptance would be easier by the target customer segment.
Strategy And Implementation Summary
This company is planning to manufacture very high quality, washing machine which must offer durability to its user. H.R.L has planned to offer this model to meet variety of customer needs. The company will focus on wider group of target customers which contributes the significant amount of total market size. The company will be taking full advantage of advertisement through both media electronic and print and conducting free demonstration campaigns in the open market place and in trade exhibitions.
The company has the following competitive edges and advantages
Ø High Quality standards
Ø Product offering as different and unique model
Ø Product controls and features
Ø Networking with commercial hotel and laundarates companies
Financial Considerations And Projections
The table shown below is the profit forecast based on the sales forecast. H.R.L revenue generation for the Year 1 is £ 90,150 and for the year 2 is £ 140,980. This is likely to grow further as H.R.L has designed a strategy to attract a large number of housewives and maids and build a good referral business.