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Yee Lee
002
May 5, 2008
Table of Contents
Table of Contents……………………………………………………………2
Executive Summary……………………………………………………....…3
Products……………………………………………………………..……...6
Market Analysis Summary…………………………………..………..……8
Strategy and Implementation Summary………………………………..….10
Management Team……………………………………………….…..……11
Financial Plan…………………………………………………….…..……12
Appendices………………………………………………………………..13
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1. Executive Summary
1.1. Introduction
Developing a business plan is an essential part of owning or starting up a business. It
provides the basis of what direction the company should be aiming towards in order
to succeed in the market. A business plan should outline a number of important
aspects such as: an executive summary, company summary, services, market analysis,
and strategies. Careful development of a business plan can eliminate the risk of
business failure and provide accurate guidance for a successful business. With this at
hand, the business can outline its focus in the future and move forward.
The business introduces a new innovating product: the cordless/wireless earphone.
Though there are cordless earphones out there on the market already, there are a
couple of kinks added to these. The upside is that the range for these earphones by
other companies such as Apple can be as high as $200; but the price will be set at
$59.99.
The greatest asset of these earphones is the cordless design. Much like a Bluetooth set
you get a convenient annoying cord-free product that can do much more than just a
regular pair of ear stubs; except you don’t have to explain to anyone that you’re not
talking to yourself. It’s an attractive feature though some may criticize it about the
ease of losing the item. Music and mp3 devices are part of million dollar industries
and so are the accessories that best compliment them. Another feature of the product
is that the earphones work on frequency waves emitted from the adapter, but it’s not
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limited to a specific model. There is a share feature that an owner can switch on or
off, which can allow anyone who may have lost their adapter to use as well. Though
they may not share the same taste in music from the iPod or mp3 player, the other
person still has the option of tuning into his or her favorite radio station. This is a
convenience that will attract many people, because they may or may not even need a
music device of their own. The projection of this new innovation should show major
profits in the future.
1.1. The product
The new innovating earphone product will exploit the best technology available on
the market at the most affordable price. At the same time it will set a fashion tone
amongst buyers who are looking for something unique. Prices for each earphone will
be $55- $59.99 as compared to competitors which can range from this price to $200.
Pretty much if you’re willing to spend over $100 for the name Apple, then we’ll
throw in a bumper sticker “Apple, inc.” with every product we sell.
1.2. The Market
The music industry as well as music device sales continue to rise in sales, so the
music accessories industry should follow on a relative path. Trends among customers
project that sales will increase as time allows the name and image of the cordless
earphone take place. A very important current trend is that potential buyers are
willing to spend more amounts on products because of the enhanced image appeal.
Therefore, a company or business that can build a significant brand image in this
trade gains a considerable competitive advantage.
1.3. Objectives
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1.3.1. To introduce the product to customers through commercial advertising,
outlet store promotions, and door to door sales.
1.3.2. To build an image amongst a large customer base
1.3.3. To eventually take the lead in music accessories industry.
1.3.4. To advance and create new innovating products
1.4. Mission
Selling the earphones locally in the area until recognized as a well-known product.
Then the sales will be distributed to broader markets and one day across the country.
If sales go internationally, then the business will expand and provide more jobs to
keep the flow of the business steady.
1.5. Keys to success
In order to succeed, business must:
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Produce and sell affordable and high-technology products.
Achieve 100% customer satisfaction.
Build brand image and brand equity through marketing.
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2. Products
Wireless/Cordless earphones are new and innovating products in the music and
technology industry. The cordless earphone is a standalone product that can be used with
any music device. It will offer users a new and improved sense of listening to music
while walking, jogging/exercising, studying, or just relaxing while at the same time
boasting a new fashion trend.
2.1. Product Description
Some features of the earphones is that it consist of one larger piece that has the
volume and button controls for easy tuning and a smaller stub to fit right into the
other ear. This can be a convenience for times when you want to listen to music but
are trying to be mindful of things around you; for example, you may be listening to
something as you wait for someone and you want to be sure when they come for you.
Both small frequency receiver as well as a low energy lithium battery built inside
them. The radio music adapter is basically a clip-on that merely connects and slides
onto any music device and gives any user the option of playing music from the device
or the radio. Nothing is needed to be connected; it is its own stand-alone product.
There is a wallet size case that will come equipped with the product for safe and easy
storing.
2.2. Competitive Comparison
The earphone industry is a huge market. Since the music industry itself is one of the
largest in the world, it is not surprising that accessories used for listening to music are
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relatively high also. For the affordable price of such a high tech earphone at only
$59.99, some of the competitors offer less and charge even more. However, the focus
is quality and sensitivity of sound and so the technology from competitors in that
aspect is much more advanced. The cordless earphone has a convenience and new
fashion trend focus while providing enough quality to satisfy all customers. If new
earphones are going to focus on the best quality sound using the best technology, then
projected sales will increase.
2.3. Fulfillment
Our costs are part of the margin squeeze. As competition on price increases, the
squeeze between manufacturers' price into channels and end-users' ultimate buying
price continues. With many types of product on the market, it may be worth all the
money in one year and not worth half its original price by the next year.
2.4. Future Products and Services
For the next line of earphones, better sound quality technology will be implemented
into the earphones. By maintaining the supply chain of how things are processed, the
prices made to the consumers will surely stay fairly consistent if not better.
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3. Market Analysis Summary
If media/music players such as the iPod, Zune, and other mp3 players sales are increasing
as they improve their products it can be safe that the music accessories for such media
players will increase as well. As long as the sales for media players continue to soar, the
wireless earphone will continue as well.
3.1. Market Segmentation
On the market there is always a trend amongst buyers. Some will always be there to
buy the hottest and popular items as soon as they come out. Some will eventually buy
products that have become too big for them to miss. Some will buy them for their
own sense of style or fashion trend. Some are just wealthy enough to buy new
products and there are the older individuals who still have a taste for younger fashion
trends.
3.2. Distribution Patterns
The cordless earphones will be distributed initially across local markets in order in
order to gain its profits. When sales start to grow and the earphone starts to speak for
itself, then the product will be expand to larger companies across the country and
eventually the world.
3.3. Competition and Buying Patterns
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The earphone and music accessories industry has been on the market for as long as
when the first walkman CD was invented. Since then customers have been either
buying their products based on loyalty and affordability. For its design, the hope is
that customers will now also look at it as a new fashion trend. For those who want
affordability, they can have it but it’s so much more appealing to buy what no one has
as of yet; and even when it starts to rise in popularity, those who bought them early
have bragging rights about how great their taste is from the beginning.
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4. Strategy and Implementation Summary
The strategy is to serve niche markets of the music accessories industry; specifically the
earphone industry. It will benefit from on the high quality and technology implemented in
the manufacturing of the product. There are many available potential markets that desire
high-quality goods, but do not think they can afford them or do not know where to
purchase them. The marketing strategy behind the cordless earphone will alleviate this
problem.
4.1. Marketing Strategy
Earphones will be introduced into the market through outlet selling, door-to-door
selling, and special promotion advertising. All this will be implemented on the
business budget.
4.2. Pricing Strategy
Products being introduced into the market come first as affordable. The business will
be offering earphones with similar features of more expensive earphone sets at a
much lower price. As the sales project higher sales, then the price of the earphones as
well as the advancements in its production may or may not increase.
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5. Management Summary
The business is strictly focused on the selling of the earphones. Thus the manufacturing
of the earphones and shipping of the earphones will not need many extra employees to
help with selling the products. Since they will be promoted by larger outlet stores, only a
few more employees will be selling the products door to door.
5.1. Organization Structure
The business is sole proprietorship and is a home business venture. Start up will begin
and end at business locations of the owner.
5.2. Management Team
The main management divisions include marketing, service, and administration.
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6. Financial Plan
6.1. Projection
The development of the cordless earphones will be sold at a retail cost of about $50$59.99. Manufacturing of the earphones and accessories are fairly low since they will
comprise of no more technology than what is out on the market today. All that comes
with the cordless earphones are the earphone case that carries all the materials and
radio adapter that can also connect to any music device. The product is supposed to
target a younger crowd; however it can be useful for anyone that desires a convenient
all in one earphone. Annual profit for these earphones should be fairly competitive
with other earphones on the market since they have ups and downs about the design;
in time the product can only improve in quality and breakthrough technology and
because of its relative low cost, as compared to other products on the market, its
future profits seem prosperous in the millions. The estimation cost for the cordless
earphones are fair since they use technology any more advanced that those used today
and the new design has high projection of demand.
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7. Appendices
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http://www.bplans.com/sample_business_plans/Computer_Consulting_Repair_an
d_Reseller_Business_Plans/Computer_Hardware_Reseller_Business_Plan/executi
ve_summary_fc.cfm
http://www.bplans.com/sample_business_plans/Computer_Consulting_Repair_an
d_Reseller_Business_Plans/Computer_Consulting_Business_Plan/executive_sum
mary_fc.cfm
http://www.businessplans.org/2mba/2mba00.html
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