Course: The World of Business

Name:

Tutor:

Course: The World of Business

Date: 17/4/2014

Pokyware Company

Company summary

The foundation of our whole business idea at Pokyware Company is pivoted around the inkling on ‘Fictional characters cooking, even if they are not the chef’. This might sound a little absurd but there is more. For example, Peter Pan cooking an omelet, or Dora the explorer boiling some rice, these statements could leave a lasting impression and a trend. Our business model is based on creating a line of cookware that is the client’s favorite fictional character, which will be a fun way of organizing all the clutter in the cooking area.

The product would be adoptable and unique and it could revolutionize the traditional cooking culture by making it new and trendy. With the growth of the entertainment industry, and the growing number of fictional characters that are adored by their fan base, this opportunity presents a need to invest in not only the brand but also the product. The fan base of movies, novel, series and cartoon fictional characters number in their millions and is ever growing world wide with the success of such companies such as Netflix, Hulu, Amazon and others in the industry.

Customer/market analysis (including market size)

To a company, analyzing its opportunities becomes the most challenging activity. The key in analyzing the marketing prospects and often rests on the superiority of a company’s marketing information system. Our company has the ability to meet our customer’s expectations and we are helped by how well we have researched on consumer needs and wants. We have analyzed their location(s), their buying habits, and inventory methods.

Due to our unique product presentation and model, the customer is always first and he/she has the power to identify what he or she want from our products. This is because we build and package the product depending on the fictional character and uniqueness of their design. This gives us a unique market share niche that is unprecedented and a big advantage. The competitors products have become to monotonous and Pokyware is here to change that. The market currently is dominated by ordinary cookware products but our projected market share is up to 25% in the first year, with the right marketing plan.

The cutlery products market experience stable growth during the entire 20th century and the preceding first decade of the 21st century. Data from the United States Census Bureau indicates continued growth in this market from 2005 revenues of $1.9billion to $2.1 billion in the year 2009. The industry has two main components namely the table and kitchen cutlery markets. Cutlery products are sold in retail stores, specialty stores, warehouse clubs and catalog operations. This is a highly structured market, which would need adequate information and resources for successful entry.

Product or service description

Back in 1960, Harvard Professor Theodore Levitt wrote in his famous article “Marketing Myopia” (Levitt 1960), in which he discussed how management’s failure to define their product broadly enough can lead to a decline in revenues, or to susceptibility to competition from new industries and new entrants, or to both. In Pokyware Company, we understand that fact and we have defined our product design as custom based. Meaning we design the product according to the specification of the customer and what they want. The product comprises of a set of cookware sets that comes in 6-8 separate pieces. In addition, all have a specific fictional character embedded into them that can be viewed by the consumer in a beautiful and creative presentation. The product is centered on the customer and every detail is to their specification. This industry comprised of products within the following descriptions electric house wares, silverware, plated ware, and stainless steel ware, all of which are used for cooking purposes. This indicates the depth of the market in terms of product diversity that will ensure that the entity has different revenue streams from the product categories identified.

Competitive differentiation

Changes that affect a business do not have to be either subtle or unexpected to take a company by surprise. We can consider this quote made in the reference to the increasing impact of large regional markets: “… it’s hard to believe that people will drive for miles to shop for foods and sacrifice the personal service … to which Mrs. Consumer is accustomed.” (Zimmerman 1955, p. 48). We offer our customers with custom profiles and finishes on longer lead-time. We will allow our customers to make, choose, and design how they want their fictional character presented in the cookware products. This sets us apart from other cookware products in the market that are more of a produce and sell model without the consideration of the customer’s real need. We change that and make the customer come to us and we design the products depending on their tastes and occasion, be it a birthday, anniversary, wedding gifts among others. We also focus on the cost competitive advantage factor where we are aiming to reduce the cost of production by over 5% to that of our competitors and still be able to offer our customers quality and value for money products.

Other strategies towards increasing the competitive nature of the entity include using pricing, product, marketing, technology and convenience of products and services provided by the entity.

  1. Pricing: This amounts to the use of pricing strategies in the initial strategies of market entry using differentiated products. There is a need to evaluate the pricing strategies used by other firms in the same market. This will provide the management with the insight on the appropriate strategies that can be applied by the entity upon entry into the market using a variety of products. Each product appeals to diverse market segments, which means that products may apply diverse pricing strategies. Low pricing is appropriate in entry into highly competitive markets whereas high pricing is appropriate for oligopoly and monopoly markets.
  2. Product: differentiation from other competitors in a market usually takes the form of new products. New entrants into the market have to battle with existing products with new ideas. In addition, the presence of a Research and Development team will ensure that there is constant evaluation of existing products and new ideas for new products in the market. This will ensure that consumers are provided with variety in the market to suit their diverse product needs, wants and preferences.
  • Technology: this is a necessity for modern entities given that it resonates with providing exceptional customer services. Furthermore, this also influences customer satisfaction and experiences to result in customer loyalty. Providing consumers with the avenue for interaction with the organization through different online social platforms will ensure that consumer insights, needs and preferences are incorporated in product development and overall delivery of services. Customer satisfaction has been termed as a highly effective tool towards ensuring that consumers make repeat sales.
  1. Customer Experience: this amounts to providing consumers with excellent experiences through exceptional services. This is a sure means of creating customer loyalty given that service quality compliments the product quality. Good se5rvices and excellent product quality would ensure higher levels of customer loyalty irrespective of the presence of other resource-laden entities in the market.

Management team

The organizational structure of Pokyware Co. is more of a functional, and team based and will consist of one leader and a horizontal cross-functional team units headed by their respective unit managers.

President- The oversight authority behind the workings of the company and he is the decision maker. He is also the one to pass the company policies and strategies.

Human resources manager – All the activities involved in acquiring, maintaining, and developing an organization’s human resources. This is a critical part of the organization given that it includes control of the most important factor of production of goods and services in the organization. Controlling and motivating employees is essential towards exceptional performance in the organization in terms of products development and service delivery to consumers.

Financial Controller–is responsible for the financial strategies and policies of the company

Sales Manager – in charge of sales and promotions and will work closely with customers and build customer relations

Marketing Manager – the marketing manager is responsible for the marketing of Pokyware products and selling the entity as a brand to consumers.

Operations Processing Manager –the head of the production process unit

Research and Development Team-As a means of staying in line with constantly evolving consumer needs and wants, the entity will establish a research and development team. This team will be responsible for bringing new ideas into the entity with respect to new product development and changing needs and preferences of consumers. This is a necessity for the organization given that it provides the organization with the avenue for increasing its competitive abilities in a highly competitive market. Constant evaluation of existing products designs and ideas for new product designs will ensure that the entity is able to make a successful market entry as well as increasing its market share with new innovative products. Furthermore, this team will be an incorporation of executives heading the departments in the organization such that they all provide professional input towards this business strategy.

Information Technology Manager- the individual will be tasked with ensuring efficient and effective flow and availability of information for all departments. This is an essential part of the organization as it provides for communication within the organization. In addition it also facilitates effective communication between the organization with the consumers; thus maintaining an effective customer loyalty program. In addition, the manager will be tasked with ensuring that the entity maintains seamless communication for higher lead-time in delivery of products across its value chains and supply chains.

Financial projections

The 2014 marketing plan is designed to increase Pokyware Co.’s sales of custom cookware by 20 percent to a projected $1.5 million in the first year. The initial profit projection objective for the first year is set at $165,000 and is expected to increase by up to 50% in the next 3 years of operation. We expect to meet these increases by having salespersons in different parts of the country promoting our product and by employing a determined workforce that is ready to meet the company’s goals. A small decrease in the gross margin (from 12 to 11 percent) is anticipated due to nonrecurring costs associated with the hiring and training of the sales representative across the states. The marketing budget is set at $288,000, which will be increased by 2 percent for the next 3 years.

With increases in prices of steel over the first decade of 1990, cutlery manufacturers faced increased costs of production resulting in massive layoffs. However, the prices of steel declined as per data in the year 2009 indicating a cost of $502 per metric ton, as compared to the cost of $854 per metric ton in the year 2008. This indicates an opportunity for increased profits for entities that use steel in manufacture of cutlery products. In addition, steel has gained wide use in production give its relatively low cost as compared to other materials such as silver.  The prices of steel have continued to decline this decade with prices of $485 being recorded in the year 2010.

Financial requirements

Pokyware Company operations team has identified the following capital needs for the initial year of starting up. This includes a planned budget of all the organization initial equipment and materials, which is still being calculated.

Office equipment and furniture                    $30,000

Conveyors and material handling $ 12,500

Industrial stamping equipment $187,500

Miscellaneous molder upgrades $ 37,500

Sorting software for the paint and ink$ 40,000

Computerized painting machine                                               $ 4,700

Sorting Tables        $ 7,700

Computers (office and production) $ 25,000

Photocopier $ 3,700

Total $322,600

Layout estimate $100,000

(Includes doors, rewiring, air, dust)

Total $422,600

 

 

 

 

 

 

 

 

 

 

 

Work Cited

Levitt, Ted. 1960. Marketing myopia. Harvard Business Review. 8(July/Aug): 24-47.

Paulson, Edward; Layton, Marcia. 1995. The complete idiot’s guide to starting your own business. New York: Macmillan. 307 p. Zimmerman 1955, p. 48

Calculate your order
275 words
Total price: $0.00

Top-quality papers guaranteed

54

100% original papers

We sell only unique pieces of writing completed according to your demands.

54

Confidential service

We use security encryption to keep your personal data protected.

54

Money-back guarantee

We can give your money back if something goes wrong with your order.

Enjoy the free features we offer to everyone

  1. Title page

    Get a free title page formatted according to the specifics of your particular style.

  2. Custom formatting

    Request us to use APA, MLA, Harvard, Chicago, or any other style for your essay.

  3. Bibliography page

    Don’t pay extra for a list of references that perfectly fits your academic needs.

  4. 24/7 support assistance

    Ask us a question anytime you need to—we don’t charge extra for supporting you!

Calculate how much your essay costs

Type of paper
Academic level
Deadline
550 words

How to place an order

  • Choose the number of pages, your academic level, and deadline
  • Push the orange button
  • Give instructions for your paper
  • Pay with PayPal or a credit card
  • Track the progress of your order
  • Approve and enjoy your custom paper

Ask experts to write you a cheap essay of excellent quality

Place an order