Business Development Plan Essay

Question:

Write an essay on A business development plan.

Answer:

Introduction

A business development plan provides the business with an opportunity to undertake a comprehensive strategic plan for future growth. The Dragons is a new Smartphone manufacturer in New Zealand. The organization has just started their smart phone production from March 2016. The organization has assigned a new marketing manager for developing and implementing the new marketing plan. The marketing manager has planned to implement a new report for approving the budget of the marketing strategy (Lambert & Davidson, 2013). The marketing manager expects that the organization will allocate $50,000 to develop a new business plan for the new Smartphone business. The marketing manager has planned to implement a creative approach about the new marketing plan. The new marketing plan will include a summary of the market, overview of the company, owners’ description, market segmentation, business structure and operations, financial forecast, hierarchical decomposition process, goals and action plan of the organization (Davenport, 2013). The marketing manager has planned to present the graphical structure of the expenses in the marketing process.

Summary of the market

The organization, The Dragons has planned to launch their Smartphones in New Zealand market. It has been observed that there is a high competition in the New Zealand market. Moreover, it has been observed that maximum market share has been owned by popular smart phone brands such as Samsung, Apple, HTC and Motorola (Johnston & Bate, 2013). Therefore, this organization seems to have little chance regarding entry into the new Smartphone business market. It has been observed that more than 38.9% market share has been gained by the Apple on 2014. On the other hand, Samsung has owned 21.5% market share in New Zealand (Muller, Soule, Daniels & Cheng, 2013). Additionally, it is understood that every organization has increased their market share gradually.

As stated by Govindarajan and Trimble (2013), the Smartphone brands have implemented an attractive marketing strategy and an attractive pricing strategy with the aim of increasing the brand value. Additionally, these Smartphone manufacturing organizations have implemented regularly technological improvement in their Smartphones. It is understood that Smartphone models of organizations like Samsung, HTC and Motorola are inbuilt with innovative features and are reasonably priced as well (Hashi & Stoj?Ќi?‡, 2013).

Overview of the industry

The organization, The Dragons is a privately owned new market entity in the New Zealand market. The organization was initiated by the end of December 2016 and production commenced from March 2016. The organization has organized its product launching program in May 2016. The marketing team has taken the responsibility to implement a new marketing plan for the new products (Boons, Montalvo, Quist & Wagner, 2013). It has been observed that the new organization will face tough market challenges in the New Zealand market as the organization is new in the Smartphone business and has no such experience about the Smartphone market. The organization has implemented some technological innovation in their Smartphones such as finger print scanner, LED flash on the front facing camera and their own interfacing software system (Thorp & Goldstein, 2013).

The organization has planned to select a low price range for the new Smartphone. The organization has planned to target the middle economic customers for the organization. Moreover, keeping in mind the technological aspect the organization has implemented a partnership with a Chinese technological organization to acquire technical support.Business plan

The marketing manager has implemented the business plan for the new Smart phones of Dragons.

About the owners

Three owners who are also responsible for managing the business operations have founded the organization, The Dragons. The owners of the organization have implemented a production unit in order to commence production. The owners have assigned various tasks to the project managers, production managers, planning and development team, employees, team leaders, supervisors and sales managers. The sales managers have the responsibility to promote the product in the New Zealand market. At present it is understood that the owners are currently negotiating with the distributors and the suppliers.. As stated by Foreman (2013), start-up cost is high for starting a production plant and thus the owners have decided that they will sell these Smartphones through the local stores and mobile shops and the electronic market. Additionally, the owners have bought costly manufacturing equipments, assigned the employees and made contracts with the labors as well to progress further in their business.

About the customers

The organization has focused on the low pricing strategy for their Smartphones. The marketing team has focused on the demographic segmentation strategy to select the target customers (Fischer, Diez & Snickars, 2013). The marketing managers have focused on the medium earning people of New Zealand and the young customers. They have observed that the features and quality of the new Smartphones will attract the youths. The organization has implemented some innovative designing in the Smartphones to attract the technology lovers. It has been observed that younger generation has spent more than $200 for buying the new Smartphones (Skarzynski & Gibson, 2013).

The market price of the standard Smartphones starts from $180 (Westerski, Dalamagas & Iglesias, 2013). Therefore the customer may choose Smartphones from The Dragons rather than other normal Smartphones. The organization has planned to launch five different models of the new Smartphones so that customers have an opportunity in terms of variety with respect to products and features. Moreover, the marketing managers have observed that the youth is busy in the social media sites. The organization has planned to implement a contract with the mobile service providers for increasing the sales.

The issues and the ‘Pain’

The marketing team has observed some issues in the New Zealand market such as strong competition in the New Zealand market. As stated by Alguezaui and Filieri (2014), a new organization has almost no brand value in the market. The organization has followed the government rules and legislation about the taxation policies for establishing a new business. The marketing team has to handle the customers in the social media sites. Therefore a strong market competition, negative feedback and limited budget will be a challenge for the marketing managers. Due to these various challenges of the market the company will suffer from greater level of loss of revenues. In addition to that, the companies will lose the brand image which will have an adverse effect on retaining the customer base. At the same time, the limited budget will restrain the promotional activities of the company that will hinder the attainment of greater range of customer base.

In this context, the organization must initiate on aggressive online advertisement strategy which will be highly popular for enhancing the brand awareness within the market. The extensive amount of advertisement will effectively create hype amongst the customer base so that they will be attracted towards the brand image. In addition, the strong online presence will help them to reach maximum number of customers. The aggressive online advertisement strategies are highly crucial for resolving the issues of the New Zealand Market as it will help the organization to gain significant amount of customer attention. Furthermore, this will also greatly serve the organization as it is quite cost effective in comparison with other means of promotional activities. Therefore, it is evident that the aggressive advertisement strategy in most effective as well as feasible solution.

The business idea

The organization has implemented a business idea based on the innovative products and services. The organization has observed market opportunity in New Zealand and attractive marketing strategy of the marketing managers. The marketing managers have planned to implement online and offline marketing strategies for the organization. Additionally, the organization has implemented creative features in their Smartphones. The marketing manager believes that the innovative features and smart designing will be the key selling point of the Smartphones (Ward & Sobek, 2014). Therefore, the marketing manager has planned to develop a budget planning for the marketing plan. The administrative will allocate the budget for implementing the marketing strategy.

The market analysis

Demographic:

The marketing managers have focused on the demographic segmentation of the customers. They have segmented the customers as per their age, religion, family size, income and education. It has been observed that marketing team has planned to attract the young generation population by their marketing strategy. As stated by Ward and Sobek (2014), youths are very passionate about the devices like Smartphones. On the other hand, the purchasing habits of the customers also depend on factors such as income of the organization. It is understood that older customers are not very choosy about the Smartphones unlike their younger counterparts who are more fascinated by brands. Therefore, the new Smartphone business will depend on the younger customers and people with average earning.

Competition:

The marketing managers have observed the prevalence of a high competitive market in New Zealand. Dragon Smartphones have no high brand value as compared to that of Samsung, Apple, HTC and LG. Therefore, the low pricing strategy and the innovative features will provide some advantage to this brand in New Zealand.

Price:

The organization has planned to select a low and medium pricing strategy for the new Smartphones. The managers have observed that good quality products in the low price range will increase the brand value of the organization (Berends, Jelinek, Reymen & Stulti?ns, 2014). The marketing manager has remarked that the primary goal of the organization is to improve the brand value rather than collecting high profit.

Promotion:

The marketing managers have planned to implement online and offline marketing strategies for this newly launched products. The marketing managers have implemented online marketing strategies such as television advertisements and social media advertisements for their new Smartphones (Skarzynski & Gibson, 2013). Moreover, the marketing manager has also planned to implement various offline marketing strategies such as sponsorship in different events, hoardings, posters, live message screen and campaigning.

Product:

The organization has implemented three to five different models in the market. Each model has unique features and price segmentation (Foreman, 2013).

Place:

The marketing team has planned to launch the new Smartphones in the New Zealand market by the end of 2016.

Business structure and operations

Flow chart of operation:

Task and roles:

The task and role of a manager in this business will be the most important job of a person who would be related to the new business directly. A manager in a new business plan will play several roles such as an entrepreneur who will take risks frequently He will play a part as a primary innovator, business manager, exceptional leader and restorer. Moreover, he will also be a leader and guide in the task who will take the major decisions during the process (Thorp & Goldstein, 2013). Upon decision it will be decided that whether the business will gain a success or not. Besides, it would be the decision of a manager to develop communication with the potential stakeholders. He will also communicate with the other managers in the same industry to collect their valuable advice in order to run the business on the right track.

Financial Forecast

Marketing budget:

Category

USD

Initiating Dealership

$ 3,000.00

Enhanced sales

$ 10,000.00

Funds offers as sponsor

$ 12,000.00

Increment in market share

$ 11,000.00

implement social media marketing

$ 9,000.00

Reducing processing error

$ 5,000.00

Total Tangible Benefits

$ 50,000.00

Cost and benefits analysis

Cost Benefit Analysis using Present Value (ENOC Group)

Benefits of option

Year 1

Year 2

Year 3

Year 4

Year 5

Labor cost savings

$ 35.00

$ 58.00

$ 65.00

$ 69.00

$ 74.00

Improved working

$ 25.00

$ 45.00

$ 45.00

$ 48.00

$ 52.00

Improved savings

$ 15.00

$ 18.00

$ 20.00

$ 24.00

$ 42.00

Total Benefits

$ 75.00

$ 121.00

$ 130.00

$ 141.00

$ 168.00

Costs of option

Year 1

Year 2

Year 3

Year 4

Year 5

Additional costs

$ 125.00

$ -

$ -

$ -

$ -

Development costs

$ 4.00

$ 10.00

$ 10.00

$ 4.00

$ -

Maintenance costs

$ 15.00

$ 22.00

$ 22.00

$ 21.00

$ 21.00

User time during implementation

$ 14.00

$ -

$ -

$ -

$ -

Operations costs

$ -

$ 8.00

$ 5.00

$ 4.00

$ 5.00

Total Costs

$ 158.00

$ 40.00

$ 37.00

$ 29.00

$ 26.00

Net benefits/costs

$ (83.00)

$ 81.00

$ 93.00

$ 112.00

$ 142.00

Cumulative benefits/costs

$ (83.00)

$ (2.00)

$ 91.00

$ 203.00

$ 345.00

Net benefits/cost (NPV @ 5%)

$ (79.05)

$ 73.47

$ 80.34

$ 92.14

$ 111.26

Cumulative NPV

$ (79.05)

$ (5.58)

$ 74.76

$ 166.90

$ 278.16

Summary of research findings

The marketing manager has implemented budget planning for both the marketing functions as well as for business implementation and development. The marketing manager has developed initial plan to streamline marketing activities such as implementation of dealership and sponsorship activities to increase market share. Further, outline for social media marketing and reducing the processing errors strategies have been developed. Additionally, the manager has developed a budget forecast for a period of five years.

Goals and Action plan

The goals of the marketing managers are to develop the perfect business development plan for Dragon Smart phones and implement the marketing planning for the organization.

Action plan

Outline Number

Task Name

Duration

Start

Finish

Predecessors

1

Action plan for Dragon Smart phone

280 days

Tue 12/1/15

Mon 12/26/16

1.1

Implementation of the Smartphone manufacturing

2 months

Tue 12/1/15

Mon 1/25/16

1.2

Developing the prototypes

3 months

Tue 1/26/16

Mon 4/18/16

2

1.3

Testing the prototype

40 days

Tue 4/19/16

Mon 6/13/16

3

1.4

Developing the final product

3 months

Tue 6/14/16

Mon 9/5/16

4

1.5

Marketing and promotions in the market

40 days

Tue 9/6/16

Mon 10/31/16

5

1.6

Launching of the smart phone in the market

40 days

Tue 11/1/16

Mon 12/26/16

6

Reference list:

Alguezaui, S., & Filieri, R. (2014). A knowledge-based view of the extending enterprise for enhancing a collaborative innovation advantage. International Journal of Agile Systems and Management, 7(2), 116-131.

Berends, H., Jelinek, M., Reymen, I., & Stulti?ns, R. (2014). Product Innovation Processes in Small Firms: Combining entrepreneurial effectuation and managerial causation. Journal of Product Innovation Management, 31(3), 616-635.

Boons, F., Montalvo, C., Quist, J., & Wagner, M. (2013). Sustainable innovation, business models and economic performance: an overview.Journal of Cleaner Production, 45, 1-8.

Davenport, T. H. (2013). Process innovation: reengineering work through information technology. Harvard Business Press.

Fischer, M. M., Diez, J. R., & Snickars, F. (2013). Metropolitan innovation systems: theory and evidence from three metropolitan regions in Europe. Springer Science & Business Media.

Foreman-Peck, J. (2013). Effectiveness and efficiency of SME innovation policy. Small Business Economics, 41(1), 55-70.

Govindarajan, V., & Trimble, C. (2013). Reverse innovation: Create far from home, win everywhere. Harvard Business Press.

Hashi, I., & Stoj?Ќi?‡, N. (2013). The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4. Research Policy, 42(2), 353-366.

Johnston, R. E., & Bate, J. D. (2013). The power of strategy innovation: a new way of linking creativity and strategic planning to discover great business opportunities. AMACOM Div American Mgmt Assn.

Lambert, S. C., & Davidson, R. A. (2013). Applications of the business model in studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010. European Management Journal, 31(6), 668-681.

Muller, M., Geyer, W., Soule, T., Daniels, S., & Cheng, L. T. (2013). Crowdfunding inside the enterprise: employee-initiatives for innovation and collaboration. In Proceedings of the SIGCHI conference on human factors in computing systems (pp. 503-512). ACM.

Skarzynski, P., & Gibson, R. (2013). Innovation to the core: A blueprint for transforming the way your company innovates. Harvard Business Press.

Thorp, H., & Goldstein, B. (2013). Engines of innovation: the entrepreneurial university in the twenty-first century. UNC Press Books.

Ward, A. C., & Sobek II, D. K. (2014). Lean product and process development. Lean Enterprise Institute.

Westerski, A., Dalamagas, T., & Iglesias, C. A. (2013). Classifying and comparing community innovation in Idea Management Systems. Decision Support Systems, 54(3), 1316-1326.

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