Executive Summary
Organizational success is dependent on the efficiency of the people involved. Often, people who are not really in the organization may have huge contributions for its development and success. The proposed business plan shall consist of the analysis for Kids and Child International.
Internet is rapidly adding another tool used to interact within the social circles, most favorably in customers and in the companies. The internet is defined as the electronic network that links people and information through computers and other digital devices allowing peer to peer communication and information retrieval. The internet could be considered one of the most liberating media forces in the world today. The Internet, has an impact on consumer marketing and it affects some of the marketing tasks. It discuss two important aspects of consumer marketing that the Internet is capable of transforming; (1) the communication process, and (2) the consumer need fulfillment through new consumer processes .As the Internet was transformed in the 80s from a “research only network” to allow commercial activities, organizations realized that the sheer number of users connected to the network and the very low cost of reaching out to them, made the Internet an attractive medium for advertising. Almost all media planners now consider the Internet as a viable advertising vehicle and almost all marketers agree. The number of people who have access to the internet has risen exponentially.
This paper also reviews the potential benefits of consultancy, possible clients, barriers and strategic management for Kids and Child International.
Table of Contents
Introduction
Business Plan sections
Ø Company Profile
Ø Mission, Vision, Values, Purposes, Key to success
Ø Marketing
§ Competition
§ SWOT Analysis
§ Development, production, and location
Ø Management
§ Financial plans & projections
§ Risk factors
Conclusion
Appendices
References
Introduction
Despite the various challenges in which children’s products face, there is always an opportunity for e-business. It has been known today that even baby products and the Internet have a natural association. Kids and Child has the potential of this partnership and be successful in consumer e-commerce. Kids and Child forged ahead with an ambitious goal to become the world’s leading e-business children’s products company and promptly set up a new cross-functional department staffed by experienced people who have been dealing with the meticulous planning and production of baby products and newly recruited e-business professionals.
Kids and Child International is committed to invest in services that enhance value to their customers while improving productivity and reducing information technology costs. With this, the company has leveraged to e-business.
Kids and Child International, known to be one of the world’s leading kid’s products producer, gives them the opportunity to acquire more customers and generate more revenues. In addition, with Kids and Child International online selling, they give more convenience to their customer giving them the chance to attract more customers especially with people that have no time to go to shops and branches to buy such products.
The company also has an opportunity of technology advancement for easier transaction and operations and for more convenience for customers and employees. Moreover, with its recognition, the airline attracts more opportunities of expansion.
Furthermore, the company has design learning experiences for the employees to deliver consistent good services to customers. The company has encouraged a culture of self responsibility, courage to innovate and openness to collaborate within the organization.
Business Plan Sections
Company Profile
Kids and Child International is a company specializing in the production of children’s safety products. The company focuses on many aspects of children’s products, most recently, safety bracelets.
Innovation and entrepreneurship are some of the most highly valued skills of today. While some may rely on their talents in other fields, entrepreneurship is slowly making its way as a highly valued ability. Entrepreneurship cannot be learned. One is born with the ability of being an entrepreneur. But just what exactly is an entrepreneur? In a definition taken from Wikipedia, an entrepreneur is someone who has an eye for unheard of, new, risky and possibly profitable undertakings. This person capitalizes on these endeavors and seems to be able to profit from it. In another definition, this person seemingly is able to keep a positive outlook, despite fallbacks on chosen businesses. The company, Kids and Child International, highly values these skills.
Mission, Vision, Values, Purposes, Key to success
In accordance with previous reports and essays regarding Innovation and Entrepreneurship, I would once again recommend making and reviewing Vision, Mission and Goals. Vision, Mission and Goals can give one a sense of direction. One can be able to keep track of what he is doing, whether he is moving forward or not. Mission, Vision and Goals can help shape a person’s future, depending on how he perceives it. But having mission and vision statements, as well as goals are not only limited to large organizations. One can also have goals and mission and vision statements. As was mentioned, these things help define one’s personal journey into advancement. Also, by doing such, a person can be able to know what his intended undertakings are. In the context of entrepreneurship, these can help point out profitable and possible good business undertakings. The following tips are taken from the article entitled, “Mission and Vision Statements: Envision your Business, Realize your Goals” by Foster:
Convey your company values;
Inspire and motivate your organization toward objectives that are
fundamentally key to the culture that you wish to establish;
Use long-lasting ideals, not fashionable statements based on current
business or market trends; and
Keep your statements clear and easy to understand for anyone coming
on to your organization.
As for Kids and Child International, they foster innovation and entrepreneurship. Furthermore, with the safety and happiness of children in mind, they have inculcated these values into their mission and vision statements, which are:
“To present quality and safe products to children around the world”
Furthermore, the company’s goal is: “our trademark safety products recognized as a quality seal that guarantees that our chain of specialized exclusive branches only sell high quality products.”
Marketing
Strategy is very important for any organization as it offers the direction the organization would like to pursue to attain its objectives. In the recent years, the integration of strategic planning and functional marketing has been perhaps the most relevant development in the field of marketing management as marketing managers have all the more realized that tactical marketing decisions must be made within a wider strategic framework.
In addition, it is necessary that management of the marketing function be built upon purposively defined and analytically based marketing strategies. Strategic marketing planning offers the analytical process which develops efficient marketing strategies. The strategic marketing planning, according to Allen (2006), involves basically three stages: (1) segmenting the market; (2) profiling the market segments; and (3) developing the market segment marketing strategy. Please refer to figure 1 for the outline.
After analyzing the market segments, customer interests and the purchase process, the firm must then establish the strategic marketing plan. This strategic marketing plan document usually constitutes (Allen 2006): (1) situational analysis – Where is the company now? – i.e., characteristics of the market, key success factors, competition and product comparisons, technology considerations, legal environment, social environment and problems and opportunities; (2) marketing objectives – Where does the management want the company to go? – i.e., product profile, target market and target volume; and (3) marketing strategies – What should the initiatives be taken in order to attain its objectives? – i.e., product strategy, promotion strategy, pricing strategy, distribution strategy and marketing strategy projection.
Competitor Analysis
Understanding the competitors of a business in a given industry and developing methods as to distinguish it from them is a very relevant and critical aspect which influences the development of the competitive strategy of the firm. In addition, it is also an important aspect of the strategic planning process as it (1) facilitates the management to understand their competitive advantage or disadvantages associated to their competitors; (2) creates understanding of the competitors past, present, and future strategies; (3) offer an informed basis to develop strategies to gain and maintain competitive advantage in the future; and (4) to facilitate the firm in forecasting the returns that may be made from future investments (Tutor2u Limited 2005).
Proctor (2000) notes that understanding competitors is the core to making marketing plans and strategy. A firm has to compare its products, prices, channels of distribution and promotional methods with those of its competitors on a regular basis to make sure that it is not at a disadvantage. The process of the competitor analysis basically constitutes three steps. The first step is to identify the firm’s competitors. As for Kids and Child International, the main competitors are Chico and other companies who produce baby products.
The second step of the competitor analysis is the assessment of its competitors. This may be done through benchmarking as the firms will first have to determine the objectives of its competitors as well as their objectives, then later on assessing the strengths and weaknesses of its competitors. Lloyd, Elute and Kathiawar (1997) notes that benchmarking sustains organizational growth as well as facilitates world-class competitive status.
Finally, the third step in the competitor analysis is the selection of competitors to avoid or to attack. After the assessment of the firm’s competitors, the firm will have to formulate the specific strategies that will give them the competitive advantage against its competitors.
It must be noted that during the process of competitor analysis and the implementations of its strategies, the firm will have to assess which of the competitors’ strategies that they will have to follow or not. The second stage which allows the company to compare their operations with others will necessitate some degree of change within the organization. Thus it should be very well noted that the company only as to follow the strategies that will apply to their business as every business is unique in their own nature. These strategies will have to be in lined with the company’s philosophies as well.
Department stores who sell baby and children products and other distributors are the main competitors of Kids and Child International. These competitors sell a different variety of products that may well have a huge impact on the sales of our trademark baby products. However, due to the birth of the Internet, it is already feasible to set up an online store that caters solely to the company’s products, therefore lessening the possibility of competition and increasing the possibility of buyers, if we consider those people who no longer have time to go retail stores.
SWOT Analysis
To formulate an effective strategy, one must take into account the distinctive competencies of the organizations, competition, and the environment. They must determine what competitors are doing, or planning to do, and take that into account. They must critically examine other factors that could have either positive or negative effects. This is sometimes referred to as the SWOT approach.
Strengths:
Ø There are enough financial resources that are allocated for the operation
Ø Innovative, quality and safe products
Ø Appealing to children of all ages
Ø Good competitive skills
Weaknesses:
Ø Not yet adept to newer and more innovative approaches to management
Ø High prices may push potential customers to competitors with affordable prices
Ø Poor uses of promotional strategy, as consumers were not properly introduced on possible benefits of a certain product
Opportunities:
Ø Opportunity to capitalize financially
Ø Develop an admirable/exceptional goodwill that can have monetary value in future
Ø Opportunity for fast market growth
Ø Growing market trend
Ø Fast growing technological advancements that may aid the growing demands for quality products
Threats:
Ø The threat of not appealing to target market at all therefore generating a loss as opposed to profit
Ø Entry of imitators
Ø Vulnerable to the business cycle
Ø Tough laws and policies being placed
Ø Possible competition
Development, production, and location
There are many possible areas as to where these products can be made and sold. One possible solution is through global expansion. Globalization has been the trend nowadays. Its main concept is that not only Americans get to enjoy eating burgers of McDonald’s, munching the famous chicken of Texas, wearing the trademark of USA sports but other cultures as well. Not only the Italians famous for their delectable pizza get to eat them but Indians, Chinese, Filipinos, and other nationalities as well. More so, MTV will not only be aired around the States, but in Europe and Asia in fact.
But delving into the technical concept of globalization, it is defined to be the umbrella term for the collective effort and change. It is caused primarily by four fundamental forms of capital movement throughout the global economy. The four fundamental capital flows are: Human capital (Immigration, Migration, Emigration, Deportation), Financial Capital (Aid, Equity, Debt, Credit, & Lending), Resource Capital (Energy, Metals, Minerals, Lumber), Power Capital (Security Forces, Alliances, Armed Forces).
Outsourcing can become a great resource for an international company in the long run. Outsourcing can assure that the company would continue to have a good number of manpower but for a lesser and cheaper cost.
Product Description
The main objective of this business plan is to launch a new Kids & Child product for the purpose of company expansion. Kids & Child International, the product manufacturer, aims to introduce the first safety bracelet in China. This product has a number of distinct features that represents its competitive advantages. The safety bracelet is made into different sizes (small, medium and large) and colors suitable for children ages 1 to 5 years. The main part of the safety bracelet will be made of 100% plastic. To create a smooth and easy to wear on the babies & children’s wrists, it will be also made with elastic.
A wireless micro speaker powered by two button batteries will also be placed on the outside part of the bracelet which looks like a watch. The micro speaker will work by means of using an infrared device placed on the wrist section of the product. Safety bracelet also installs an electronic radio frequency to protect the baby & child from mosquitoes.
The mechanism behind the safety bracelet is similar to that of a baby monitor (Baby Center, 2005). Kids & Child safety bracelet works like a radio transmitter which allows parents or home helper to keep a close watch on their children even without being near them. The product is made up of a transmitter (bracelet) and a receiver (infrared device); through these, sounds that babies make can easily be transmitted to the receiving device carried by the mother or home helper. In this way, parents can do something else at home without worrying about their children.
Outline of Operating Environment
The manufacturing facility of Kids & Child will be established in Guangzhou Province, China. As Guangzhou Province is the country’s biggest province and has the most useful resources Kids & Child needs, this geographic location is most appropriate. Specifically, Kids & Child needs a business location were retailers are very accessible. In addition, the population in China is high compared to other countries, which in turn increases the number of potential consumers. The province is also a home for other baby product manufacturers implying the location’s efficacy. In addition, being a main province in China, Kids & Child will not have any problems on suppliers and deliveries.
In order to succeed, the company should have other key success factors. Hence, in addition to geographic location, the company also intends to employ effective strategies for superior customer satisfaction. Considering that brand loyalty is a major barrier in the baby product industry, Kids & Child should implement ways on how to obtain the interest of the target markets. In order to support this objective, the company will establish a customer service department where consumers can forward their inquiries and concerns about the product.
The main distribution channel of the Kids & Child safety bracelet will be through retailers. In addition to the subsidiaries of the company, Kids & Child will also distribute its innovative product through major supermarkets. In this way, the company will be able to cover a higher level of market coverage. The level of profitability in this distribution channel is relatively high as products are directly made accessible to the consumers. In addition to retailers, the safety bracelet will also be distributed through online retailing. By developing a company website that will cater to purchases placed online, Kids & Child will be able to distribute its product at an even greater market range. This will also allow the active mothers target segment to be aware of the safety bracelet.
Expected Source of Competitive Advantage
As the Kids & Child safety bracelet is a new product, the customer service of the company will focus on giving instructional guidelines to the consumers. This will ensure that the customers are using the product effectively. This will also help the company in marketing the product. The customer care system of Kids & Child will employ four channels: by telephone, post mail, online chat rooms and electronic mails. By increasing the customers’ access to the company, Kids & Child can provide its services to a larger market.
Certain company standards will be developed by Kids & Child as well in order to create competitive advantages. One of these standards will focus on quality management and control. A quality assurance team who will ensure the quality production of the safety bracelet will be assigned. A quality reporting system will be employed so as to track down defective products, malfunctioning machineries or personnel shortage. For the human resource, screening policies will be employed. This in turn will help in selecting the right employees for specific job positions. All of these will be done in order to ensure the high level of satisfactions among consumers. In addition, these will also help the company overcome the competition in the baby product industry.
Management
The term “management” is a broad concept which can not be limited to any of the specific areas. Management is part of the everyday life. Management starts with managing oneself. It is the combination of planning, organizing, controlling, directing and coordinating.
Additionally, some other literatures defined management as ‘organizational direction based on sound common sense, pride in the organization and enthusiasm for its works’. More recently still, management is described as ‘coping with change and uncertainty.’ It is clear that management is partly the process of getting things done through people; and partly the creative and energetic combination of scarce resources into effective and profitable activities, and the combination of the skill and talents of the individuals concerned with doing this.
Financial plans & projections
Business outcomes are difficult to predict by just looking at them. An entrepreneur must be cautious enough to pore into its possible growth rate. He must try to look into other entrepreneurs who entered this type of businesses and if possible, should conduct interviews in order to view the growth rate of his chosen venture.
Another way in which an entrepreneur can ensure the stability of the industry his company may choose to venture in is to review past sales rate and revenues of the industry. If the industry chosen seems to have a lot of sales in the past decade, it would be a worthwhile investment. Though maybe at times industries tend to fluctuate, it may get back up on its own. That is a good signal of a good industry to invest in.
A rising entrepreneur must also come up with long term goals in order to have direction to which the company can veer its attention and energy. The following are some recommended long-term goals that a company must have:
Long-term strategies must include:
- Implementation of new information systems
- Development of employees who are well rounded and well capable of multi-tasking
- Must have a program that would address key issues ad complaints involving the employee and the company
- Translate desired culture into specific employee behavior
- Have a back-up plan on the undertaking chosen. If in any case the chosen plan fails, there would be an alternative plan
- Knowing several languages (incorporation in curriculum)
- Improvement, development and innovation of infrastructure of all centers
Risk factors
In all types of undertaking, there is a potential for events and constitute opportunities for benefit or threats to success. Every business faces risks that could present opportunities and threats to its success. Risk can be defined as the combination of the probability of an event and its consequences. Common risks include financial risks, operational risks and environmental risks.
Different types of risks are all around. Risk is both an opportunity and threat to manufacturing companies. Risk identification, assessment, mitigation, and elimination for all manufacturing and control processes should become the basis for thinking about product development and life-cycle management for every product.
When a company completely understands the manufacturing process for its product and can mitigate or eliminate altogether the risk factors for failure through materials and process controls, and show assurance of consistency and value, it will ensure greater consumer confidence and overall cost reduction for risk-related problems like rewards for damage. Moreover, this understanding must extend to all of the materials, facilities, personnel practices, and procedures that contribute to the manufacture of the product.
However, risks should not be avoided since one always has a 50/50 chance of gaining the bountiful consequences of the risks taken. For example, if Kids and Child would venture into making an online store, it may bring with it a huge risk, since it may not work and thus bring loss to the company, however, it may also bring potential growth to the company if it does work.
Conclusion
The childcare industry has already extended throughout the world. Firms that operate within the childcare industry are categorized as a market structure that is highly competitive. Kids and Child International and its strategic marketing planning have been the focus of this research as Kids and child International is the market leader in the childcare industry.
The strategic marketing planning provides the company a methodical and logical process that develops efficient marketing strategies. This strategic marketing planning has three stages namely: (1) segmentation of the market, (2) summarization of the market segments, and (3) development of the market segment marketing strategy.
Upon close examination of the childcare industry, using Porter’s five forces model, the researcher has assessed that: (1) the competition or the rivalry in the specific industry is very strong; (2) the threat of new potential entrants is weak; (3) the bargaining power of buyers is strong; (4) the bargaining power of suppliers is weak; and lastly, (5) the threat of substitutes is strong.
This paper has strongly recognized the importance of understanding competitors in strategic marketing planning for the benefits that it gives to the successful planning of marketing activities. These benefits and advantages include the following. First, understanding competitors will facilitate the firm’s management to understand their competitive advantage and disadvantages in relation to their competitors. Second, understanding competitors will also generate understanding of the past, present and future strategies of the firm. Third, it offers the firm an informed basis to develop strategies in order to gain or maintain competitive advantage against their competitors in the future. Lastly, understanding competitors will also facilitate the firm in forecasting or predicting the financial returns that they made from future investments.
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