IAM Business Plan voor
BlueSky
Versie Datum Auteurs Klas
2.0 13-03-2009 Sander Heling, Xander Knol, Rob Duits Rood
Table of Contents 1. 2.
Executive Summary ............................................................................................................................ 3 Internal Analysis.................................................................................................................................. 4 2.1. Business Description .................................................................................................................... 4 2.2. Access to resources ..................................................................................................................... 4 2.3. Founders....................................................................................................................................... 4 3. External Analysis ................................................................................................................................ 5 3.1. Market and Industry Data ............................................................................................................. 5 3.2. Demographic Trends .................................................................................................................... 5 3.3. Social Trends ................................................................................................................................ 5 3.4. Technology Trends ....................................................................................................................... 5 3.5. Customer Analysis ........................................................................................................................ 5 3.6. Competition................................................................................................................................... 6 4. Conclusion from analysis .................................................................................................................. 7 4.1. Strengths and weaknesses .......................................................................................................... 7 4.2. Opportunities and Threats ............................................................................................................ 7 4.3. Porter’s Five Forces ..................................................................................................................... 7 5. Target Market, Segmentation and Positioning ................................................................................. 9 5.1. Target Market ............................................................................................................................... 9 5.2. Segmentation................................................................................................................................ 9 5.3. Positioning .................................................................................................................................... 9 6. Objectives .......................................................................................................................................... 10 6.1. Short term objectives .................................................................................................................. 10 6.2. Long term objectives .................................................................................................................. 10 7. Marketing Strategy ............................................................................................................................ 11 7.1. Product ....................................................................................................................................... 11 7.2. Place ........................................................................................................................................... 11 7.3. Price............................................................................................................................................ 11 7.4. Promotion ................................................................................................................................... 11 8. Risks ................................................................................................................................................... 12 9. Financial Projection .......................................................................................................................... 13 9.1. Revenue ..................................................................................................................................... 13 9.2. Costs........................................................................................................................................... 13 9.3. Profit / Loss, Payback Period ..................................................................................................... 13 Appendix A ................................................................................................................................................ 14 Appendix B ................................................................................................................................................ 15
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1. Executive Summary This business plan is about BlueSky, a business that produces and sells mouthwash capsules. We expect to set up the business with a lab where the capsules will be made. When BlueSky makes enough profit, they can upgrade their business by automating the process of making the capsules. The capsules will then be created in a factory in high numbers. From there the product is going to be transferred to drugstores and supermarkets, where it will be sold. We believe that the capsules have high potential to grow in the market. Having healthy teeth is very important these days, but people often don’t spend enough time to maintain and brush their teeth. The mouthwash capsules are meant to be but in your mouth. There is will dissolve when it comes in contact with your saliva (speeksel). Saliva already has the power to protect your teeth, and with the capsules this power will be much stronger. The effects of the capsules are noticeable immediately and it is more effective than brushing your teeth the old fashion way. The main purpose of the capsules is sweeping away all bacteria in your mouth and creating a fresh breath while doing this.
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2. Internal Analysis 2.1. Business Description BlueSky is a business that produces and sells mouthwash capsules. These capsules are meant to be put in your mouth. The capsule then will dissolve when it comes in contact with your saliva (speeksel). The contents of the capsule will unleash a refreshing taste. It will be safe to swallow everything because the capsule does no harm to your body and most of it is saliva. Saliva already has the power to protect your teeth, and with the capsules this power will be much stronger. And at the same time your breath will smell nice too. Our vision is to provide an alternative method to a clean and fresh smile. We will be making money by selling our capsules in packs of 12 pieces.
2.2. Access to resources We expect to set up the business with a lab where the capsules will be made. Two scientists have composed a formula for the capsules. BlueSky had sponsored their project and is now the owner of the lab and the capsule formula. BlueSky had also sponsored a group of scholars that investigated the effects of the capsules when it comes in contact with saliva, to see if it is fit to be distributed. When BlueSky makes enough profit, they can upgrade their business by automating the process of making the capsules. The capsules will then be created in a factory in high numbers. From there the product is going to be transferred to drugstores and supermarkets where it will be sold.
2.3. Founders Sander Heling Entrepreneurial experience: Personal strengths: Personal weaknesses: Motivation: Role within the company:
none focused and innovative weak concentration Learning new things Technical engineer
Xander Knol Entrepreneurial experience: Personal strengths: Personal weaknesses: Motivation: Role within the company:
none Innovative Bad planner Learning new things. Technical engineer
Rob Duits Entrepreneurial experience: Personal strengths: Personal weaknesses: Motivation: Role within the company:
none Perfectionist, fanatic and overactive too much of a perfectionist growing in skills Manager
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3. External Analysis 3.1. Market and Industry Data Only 200 million of our 740 million rural population uses toothpaste. However, in the long term toothpaste players have tremendous potential to grow in this market. This is because more people are becoming aware of personal hygiene. We will concentrate on dental practices because they can recommend our product to their customers for their dental care.
3.2. Demographic Trends We will mostly be concentrating on people with the age between 20 and 60 years old. The target group rarely takes the time to brush their teeth for more than once a day. And even then they don’t brush with enough care. There are people whom are being told by the dentist that they have strong teeth. These people then use this to pass on brushing their teeth. Furthermore, the target group’s income, household and education don’t really influence these trends.
3.3. Social Trends Having healthy teeth is very important these days, it can make a great deal in a (beginning) relationship. Knowing that most people vote this to be the number 1 turn off on a date, people don’t spend enough time to maintain and brush their teeth. So teeth whitening has become a trend. Using special toothpaste or gums to keep your mouth fresh and clean. The main reason it’s this popular might be because it takes less time to maintain your mouth this way.
3.4. Technology Trends Our product will be based on technology that already exists. The product will be similar to Listerine, but more portable and in more comfortable flavors for the target group.
3.5. Customer Analysis The customer uses this product to take care of their mouth. This means that they can use our capsule to maintain a good and healthy mouth. By using this capsule they take care of their teeth and mouth. They also get a good breath. The capsules don’t require much effort or time to maintain your teeth. This makes it more attractive to use the capsules rather than toothpaste. The customer is busy all the time and doesn’t take enough care of his teeth because of this.
Internet: Equitymaster, (2000), http://www.equitymaster.com/DETAIL.ASP?story=7&date=3/18/00 Internet: SoChicken, (2007), http://www.sochicken.nl/lichaam/10_tips_voor_een_mooi_en_gezond_gebit.html Internet: Trendstyle, (2005), http://www.trendystyle.net/trends/wittetanden.html Internet: Ezine Articles, (2006), http://ezinearticles.com/?Teeth-Whitening---A-Popular-Trend&id=241561
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3.6. Competition 3.6.1.
Direct competitors Listerine is a direct competitor. This product works the same way as the capsules from BlueSky. Only Listerine comes in bottle’s and many people consider the taste to be horrible. Because Listerine is sold in a bottle, it isn’t as portable as the BlueSky capsules. Another difference between the capsules and Listerine is that there is no alcohol in the capsules (it wouldn’t be safe to swallow it if it was). The capsules start their work when they come in contact with saliva. In short, one of the strengths of Listerine is that you can immediately feel the effects of it. Another strength is that Listerine doesn’t take much time to use. One big weakness however is that Listerine isn’t really portable, and so it won’t really help people use it more often a day. Because most people might not be home all day. The disliked taste of most Listerine products also are a weakness.
3.6.2.
Indirect competitors / Substitute products
Brushing your teeth more during the day This can be seen as an indirect competitor. The casual way of brushing your teeth is very effective, but people don’t often take their toothbrush to their work or school. Because the mouthwater capsules are aimed at people who aren’t home long enough to take the time to brush their teeth, these products don’t really battle each other.
Mouthspray The mouthspray is more aimed at killing bacteria at the tongue and improving your breath.
Internet forum: Forum.Fok.nl, (2006), http://forum.fok.nl/topic/816048 Internet: Wikipedia, (2009), http://en.wikipedia.org/wiki/Listerine Internet: Listerine mondwater, (2008), http://www.listerinemondwater.nl/veelgesteldevragen.html Internet: Tandartsplein, (2007?), http://www.tandartsplein.be/winkel/product/1102/
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4. Conclusion from analysis 4.1. Strengths and weaknesses Strengths idea - Compact - Easy to use - Saves time - Better taste as lookalike products - Works faster than lookalike products
Weaknesses idea - Less uses as lookalike products
Strengths access to resources - Cheap chemicals - Many suppliers
Weaknesses access to resources - Most resources comes from other countries
Strengths personal skills - Creative minds. - Willing to learn new things. - Willing to get new skills.
Weaknesses personal skills - Not much experience in the business. - Sometimes bad concentration
4.2. Opportunities and Threats Opportunities: - The product can be sold cheap because the chemicals are cheap to buy. - Because the product is better(Saves time, Easy to use, Better taste, etc) as other products it is very attractive to people to buy Threats: - Because the product is in pill form it you can use it less as lookalike products. - Because we use a special formula for the pills it is harder to recreate.
4.3. Porter’s Five Forces 1. Threat of new competitors Because in the branch there are some good competitors that produce lookalike products but because we have a new kind of product it’s harder for other people to compete. Our product is made with a special formula that is not easy to get, So other companies cannot create simple a lookalike product that works the same. 2. Threat of substitutes Because we use a special formula that is bought by our company it not easy to create a substitute. 3. Negotiation position of suppliers We sell our product in large amounts to drugstores and supermarkets. people can only buy it there per box. The buyers cannot buy larger amounts together. 4. Negotiation position of buyers There are many suppliers for the chemicals we need to create our product. Because when one supplier makes the supplies expensive, then we can choose a different supplier. Because of this none of our suppliers has a monopoly position.
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5. Competitive rivals Some of our rivals are big competitors, they create products like toothpaste and mount water. Because our product is much easier and faster we think that much of the big competitors are not very strong against our product. Conclusion: After analysing the Porter’s five forces we can conclude out of it that the industry that we choose to create a new product in is an attractive one. This is because it’s easy and cheap to get supplies and the big competitors we have are not very strong against our product because our product is much easier and faster to use. And because we use a special formula, our product is not easy to recreate.
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5. Target Market, Segmentation and Positioning 5.1. Target Market Our product will be focused on people who are away most of the time and have less time to take good care of their mouth hygiene. Because our product will work faster than toothpaste and because it is smaller to bring with you then a toothbrush and toothpaste, it will be easier to bring with you when you are away from home. Although, our product will not be suitable for children who don’t have gotten their adult teeth.
5.2. Segmentation The target market will be segmented for people who don’t brush their teeth daily and/ or travel a lot. The variables that matter most here are the Psychographic variables. The product is made for the middle social class. The lifestyle variables like interests, attitudes (and maybe hobbies) have a part to play in the segmentation. The target group has to be open to new things to explore and either likes to travel, or has to do so for work or other reasons.
5.3. Positioning 5.3.1.
Competitive advantage We want to place our product next to products like toothpaste in the supermarkets and drugstores to let the consumers know that this can be used as a replacement for that product. Blue sky tastes good and is easier and faster to use than other products.
5.3.2.
Unique Selling Point Our product will be easier to take with you if you are traveling a lot. And can then be used as an replacement for a toothbrush and toothpaste. Blue sky consumes less space and works faster than brushing your teeth for at least 2 minutes. People who don’t like to brush their teeth can take a Blue sky pill because it is easier and won’t take a lot of effort. As a nice side affect Blue sky even tastes good.
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6. Objectives 6.1. Short term objectives The brand name to be known to at least 2% of the population of the target group increase sales immediately
6.2. Long term objectives Having the brand name known to 20% or more of the market population within the next three years
Automate the process of making the capsules within the next five years
Fast growing sales up to 25.000 products a day within the next five years
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7. Marketing Strategy 7.1. Product Core product The main purpose is sweeping away all bacteria in your mouth and creating a fresh breath while doing this. Actual product The actual product consists of a small box with three pill strips, each containing 10 capsules. Within this box, there is a small manual with information about the capsules, the best way to use them and public information about ingredients. The product also comes in various flavors such as natural, mint and extreme fresh. For the distribution, the capsule boxes are packed in a bigger box. This box contains 12 capsule boxes. Augmented product Within the augmented product there is the good value service. If the product doesn’t deliver what it promises to a customer (cleaning teeth and giving fresh breath) than the customer can have his money back.
7.2. Place The product will be sold in supermarkets and drugstores. To get it there, it makes sense to involve a intermediary. The intermediary can offer some added value to the transaction, like promoting the product to other stores the intermediary delivers to. This intermediary is like a retailer that ships products to stores on many different locations. It makes sense that it takes less effort to drive a truck full of mouthwash capsule goods to one retailer, than delivering pieces of it to many small supermarkets and drugstores. Probably one level a intermediary is necessary.
7.3. Price We will offer a premium strategy. We claim to offer a better quality than the competitors, such as Listerine. Therefore the product is relatively more expensive. For market strategy we use penetration pricing. The reason for this is because the market is price sensitive and the product and distribution costs fall based on increased volumes.
7.4. Promotion The product can be promoted to the end consumer with advertising on bus stops and billboards near roads. People who travel notice this, and they are the targeted group for the mouthwash capsules.
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Other supermarkets and drugstores are noticed by the retailer who promotes the product. This is a part of the service they offer.
8. Risks Risk: Verlies draaien, Uitleg: Als er meer uitgegeven wordt dan er wordt verdient Kans: Veel kans op het begin. Later als zaken beter gaan minder. Wat als dit gebeurd?: Mocht dit gebeuren dan kunnen we inkopen verminderen en dingen die niet noodzakelijk zijn later kopen. Risk : Failliet gaan Uitleg: Als we niet in staat zijn om aan onze financiële verplichtingen te voldoen een in de wet geregelde procedure voor een persoon of onderneming die niet (meer) in staat is aan zijn financiële verplichtingen te voldoen Kans: Klein, met een ruim budget is de kans hierop klein Wat als dit gebeurd?: Als dit gebeurd zouden we moeten stoppen met de onderneming Risk: Leveranciers stoppen met leveren Uitleg: Wanneer leveranciers een product niet meer leveren of failliet gaan en daarom niet meer kunnen leveren aan ons. Kans: Klein, de leveranciers gaan niet snel failliet en houden een product vaak langer in het assortiment Wat als dit gebeurd?: Als dit gebeurd moeten we gebruik maken van een andere leveranciers, omdat er veel zijn die de benodigde producten leveren is dit makkelijk te doen. Risk: Diefstal Uitleg: Wanneer er ingebroken wordt bij het bedrijf of groothandel, of dat een medewerker diefstal pleegt. Kans: Klein, omdat er niet veel medewerkers zijn is de kans op diefstal klein. En omdat het bedrijf en groothandel voorzien zijn van alarmen is daar ook de kans klein. Wat als dit gebeurd?: Als een medewerker diefstal pleegt wordt hij op staande voet ontslagen en moet hij de producten vergoeden. Wanneer dit gebeurd bij een inbraak wordt dit vergoed door de verzekering. Risk: Nieuwe en betere concurrent Uitleg: Wanneer er in de markt een nieuwe en betere concurrent begint. Kans: Klein, omdat ons product gemaakt wordt van een speciale formule is het namaken moeilijk. Wat als dit gebeurd?: Als dit gebeurd gaan we kijken of we doormiddel van goedkoper maken het product of acties kunnen zorgen dat consumenten ons product blijven kopen. Risk: Zieke medewerker Uitleg: Als een medewerker plotseling ziek wordt. Kans: Klein, omdat we met weinig mensen zijn is de kans op ziekte niet groot. Wat als dit gebeurd?: Als we onze planning zo maken dat bij ziekte we niet achter op schema komen is dit geen probleem, anders nemen andere het werk van de zieke tijdelijk over. Als er meerdere ziek worden is de kans dat producten te laat geleverd worden. Risk: Medewerkers die stoppen Uitleg: Wanneer een medewerker besluit op de stoppen met werken bij het bedrijf. Kans: Klein, omdat we met weinig mensen zijn is de kans op het stoppen van mensen niet groot. Wat als dit gebeurd?: Als dit gebeurd nemen we tijdelijk het werk van de gestopte medewerker over totdat we een nieuwe medewerker hebben gevonden Risk: Veel Klachten over het product Uitleg: Wanneer de mensen niet tevreden zijn over het product kunnen er veel klachten komen en daardoor kan het product niet goed lopen. Kans: Groot, omdat het een nieuwe product is en dat de markt vrij groot is heb je snel kans dat er klachten komen over het product. Wat als dit gebeurd?: Als dit gebeurd nemen we de klachten door en proberen we dit met de klant individueel op te lossen. Mochten we er niet uitkomen dan is de mogelijkheid om het aankoop bedrag te vergoeden
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9. Financial Projection 9.1. Revenue Our revenue will come from supermarkets and drugstores that buy our product. We make costs for every product we sell. And as you can see in Appendix B, we can calculate our potential revenue with the number we assume to achieve the first year. After the first year we hope to sell more products and have more customer per day. Also we hope to get a better market share after the first year. If we look at the analyses we hope we can grow fast in the market because we got a new product
9.2. Costs The major costs of producing the product are the materials of the capsules. The packaging of the product consists of plastic and board. The employees who create and package the product are also a part of these costs. Five employees are working on the process of making and packaging the capsules and the three founders of BlueSky are on office.
9.3. Profit / Loss, Payback Period we expect to make no profit at the first few years. but after these years, when we passed our break-even point, we can start making profit. We expect this to happen after five years in worst case scenario. For the break-even analysis, see Appendix B
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Appendix A Company Details BlueSky No address defined Partner 1 Naam: Adres Postcode Woonplaats E-mailadres
Sander Heling Zwanenbalg 1912 1788 ZH Den Helder
[email protected]
Partner 2 Naam Adres Postcode Woonplaats E-mailadres
Xander Knol Burg. Siemersstraat 14 1751CP Schagerbrug
[email protected]
Partner 3 Naam Adres Postcode Woonplaats E-mailadres
Rob Duits Berkenlaan 9 1943 DR Beverwijk
[email protected]
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Appendix B Financial Statements
Income Statement (Profit / Loss) Revenue: Gross Profit Expenses: Main expenses Advertising Employees Insurance Rent Materials Packaging Total Expenses: Net Income:
(262.860) € 10.000 € 2.000 € 50.000 € 1.500 € 15.000 € 10.000 € 7.500 --------------€ 96.000 --------------€ 166.860
Payback period calculation €1.000.000 pp = ------------------- = 6 jaar € 166.860
Revenue calculation Maximum number of possible customers (per day)
50
Number of days open (per year)
260
Total potential customers / year
13000
Percentage of customers who purchase
60%
Actual number of customers (per year)
7800
Average sale per customer
€
33,70
Average cost per customer
€
7,50
Revenue Potential
€
204.360,00
Break even analysis Suggestion Retail Price (SRP) For the consumer this is € 1,99 Transfer price € 2,50 – BTW(19%) = € 2,10 – 42% = € 1,48 for each small box of capsules. Break-even point € 1.200.000,00 / (€ 1,48 - € 0,63) = 1.411.764 capsule boxes (117.657 distribution boxes). 15
