For my homework I have been asked to design a business plan for the Lapdesk product. The lapdesk is made by Hebden Design Ltd (which is not me) and this is a picture of the lapdesk. What follows is my idea of a business plan:
HEBDEN DESIGN LIMITED
LAPDESK
Business Plan.
INTRODUCTION
This business plan is intended for show the general ideas and methods we will use to promote our product and get as most profit as possible. It will contain analysis of both market and organization, in order to clarify the modus operandi when the business starts.
The Lapdesk is a very useful product that is both healthy and practical, and it can be highly spread in the business environment, mainly in meetings and related activities. It will improve the comfort of businessman and with it, the results of concentrating in the meetings will be shown: more participation, mental and body relax.
We are in an age of innovation. Each product which goes on the market and offers a new way to get a task done is widely accepted. The human needs to feel new emotions and explore new fields of thinking. Combining a folder and a portable table which offers the best angle to write without compromising the user's back health means an original and innovative way to take care about your back and increasing the performance in concentration. Again, the principal market would be businessman and meeting guests, where you don't have a flat and firm surface to write notes.
Beginning by investing a considerable quantity, buying a huge number of Lapdesks, the buying process should be contacting directly the original vendor and getting the desired number of products to market with. The selling process will be both online shopping and retailers distribution, which will buy stock by mass and sell for earning profit for them and paying a percentage to the distributor (this business). TV advertising and TV Sales will be also considered as a selling process.
This business differs from competition in various points: first, this business will have special offers on mass sales to main companies and main retail stores, and also we will add the TV Sales, for non-businessman customers who want to try the benefits of the product. We offer more variety of getting this product.
MARKET ANALYSIS
As said in the introduction, this business' market orientation will be businessman and other people who periodically assist to meetings, conferences and other activities of the same branch, as they involve sitting on a chair, taking out a notepad and write tips about the speakers' ideas. Also independent buyers who want to take advantage of innovative ideas, or stop to compromise their backs when sitting in an unhealthy position. Customers which have this need will be the main target of the sales; that will be the final user, the one who wants the product to use it.
The next market level will be the retailers. Retailers are the first economic entity after the consumer. They are the ones who are in contact with the market, so they can modify (stopping or accelerating) the Wholesalers' and producers' marketing and merchandising activities. Those would be stationers, technology stores (laptop stores) and other smaller and independent sellers. Our business will distribute directly the products to these stores, avoiding the process and cost of hire a third party distributor and ensuring the effectiveness of the business. They won't be the major target of sales because the control of the product selling and the marketing pass to their hands unless they specify they want advertising help, which is a secondary point in the business; so the constant distribution of products depends on the selling ability of the retailers.
Other wholesalers will be also a minor market target. There is no good point to focus the business on them because the longer is the way for getting to the final customer, the more expensive the product gets. The sales to other wholesalers will be made only if a good offer is given from them, in both quantity and price. Again, those organizations won't be the centre of the market because they also can become competitors if they decide to get the same product from the producer itself.
The main sales will be on big companies who care about their employees' comfort, we can advertise our product directly in those companies, because they appear as a profitable mass sales objective.
Preferentially we will offer mass sales to those customers who express desire to get lots of our products, due to the investment amount on the Lapdesk. Mass sales gives a great advantage to a distributor (our business) because increasing the original price by 10% generates a considerable profit. And also when marketing the product, the rise of the price seems negligibly. Two great benefits (ease of marketing and profit multiplication) obtained by only one feature – mass sales.
As the Lapdesk stands for an innovative product, and focusing its sales to the stationery and meetings guests, it matches the Diversification description, as the Ansoff's Matrix explains. Diversification implies showing up a new product in a new market (for the company)
PEST ANALYSIS
Political:
Lapdesk trade right will be negotiated with Hebden Designs Limited, in case they exist. The business will start as a local trading, so neither international issues nor major political affairs should appear in the process. The trade policies would be generated in the moment when our company deals with the producer (Hebden Designs).
Economical:
A possible concession of taking part in the manufacturing of the Lapdesk will be considered, a partnership with the producer company. The investment could be 50% of the budget, as economical support for the manufacturing, as the other half would be invested in buying directly the products for making profit from them.
The taxation process should not be a barrier for the business, it will be paid with a percentage of the profit.
Seasonal issues are non-existent. The Lapdesk is not influenced by seasonal buying, neither for weather issues. Is a product for indoor use (meeting rooms, conference halls, trains, air planes, classrooms...) so its functionality is for the whole year.
The market routes are two:
From our company to...
Final Customers. This process is direct, by internet or TV Sales, using the company's distribution team.
Main Companies. Here we sell mass quantities of Lapdesks to private (or public) companies who wish to take advantage of the product giving it to its employees (e.g. Law Firms). The final customer will be the company's employee.
Retailers. Again selling mass quantities, the retailers will sell the products to the final customer, making the Lapdesk more expensive (the retailer has to generate profit).
As a local business, interest and exchange rates do not apply.
Social:
The costumers' attitude will change, they won't buy just any folder to store their files, but they will buy Lapdesks to also help their back when taking notes in a place where they don't have any firm support but their laps.
Also will change a little bit the lifestyle, because the customers will care more about their own health and they will search for products which provides functional features and innovative ways to complete a task.
The original brand and manufacturing company doesn't helps at all because the Hebden Designs is a small company and also in virtual bankrupt, so socially it is a negative point.
Technological:
In this topic, the Lapdesk is not the big deal. Its materials are the same of common file folders. The only different thing is the design (the two side supports) but this is not considered a major technological upgrade. Also its patent is still pending, so anyone can copy the design, make it better, sell it and generate more money than its original “competitor”.
NOTE: The above is just my idea of a business plan for the lapdesk. This is not my product and I do not sell it. Neither do I represent Hebden Design
