Our product will be $15-20 in stores if you purchase the bowl online then it will be $25-35.
Value Proposition |
Competitive Advantage |
There are many factors in value proposition. The first is our product. We value our product by knowing the market and finding out what customers will pay. Competitors is another factor. Knowing how much they charge for a similar product will help us with a final pricing on our product ($15-20 in-stores).
Marketing StrategyIdentifying our goals for this product is our main idea for a marketing strategy. Also researching the market can help because we can then see how the market for pet supplies are. Profiling potential customers and competitors is very useful in a marketing strategy. Profiling potential customers helps determines our main audience and profiling competitors can help us see who's in the same market/business as us.
Positioning StatementFamilies with children can be rough depending on their children's age. maintaining the house is a huge responsibility, keeping their pets food fresh and untouched by any pests is another responsibility. Our bowl is designed to take that responsibility away to make chores easier. The dome cover keeps pests out of the bowl and away from the food, keeping the food fresh and safe.
Sales StrategyWe intend to focus on online sales more than in-store sales. This is to keep control of growth and sales in line with projections. We will focus on retail sales as our online sales increase.
Sales ForecastWe expect our first year of selling 8 oz. bowls will make $500, 12 oz. bowls will make $350, and 16 oz. will make $200 Our second year of selling 8 oz. bowls will make $1,000, 12 oz. will make $600, and 16 oz. will make $240. Our third year of selling 8 oz. bowls will make $1,500, 12 oz. bowls will make $950, and 16 oz. bowls will make $330. Overtime, our sales will increase depending on the consumers needs and the market value over the course of three years.
Assumptions
Our percentages stay relatively the same over the course of three years. Our current interest rate and long-term interest rate stay at 10%, while the tax rate stays at 30%.
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Competitive advantages helps us determine our overall products use and popularity. Reviewing our core strengths is one way to have an advantage in the market like knowing how good our product is and how much it will appeal a potential customer. Reducing cost is also an advantage. If someone has a similar product, we could reduce cost so that more customers will buy our product instead of the competitors. Our service is a big part to our company, let alone our product. Forming alliances with other companies can have a really big impact on our product. Our product can be sold on more store shelves and online sites, increasing the popularity of our product.
Distribution PatternsMany pet stores buy from distributors. Distributors have regional and national coverage in pet supplies. Other pet stores buy form the manufacturer. Catalog and internet sales comprise a significant portion of the market.
Pricing StrategyWe base our pricing on a skimming strategy. A skimming strategy consists of setting the initial price high to establish a high-precieved value. This is very important because the market has a substantial disposable income and will pay for style and functionality. We priced our bowls at $15, up to $20 for a larger size. This is significantly lower than the suggested retail price of $27.
Revenue Streamswill be updated soon...
MilestonesWe plan to use a $5,000 budget to spend throughout to achieve some milestones. Our most expensive milestone would be branding. We plan on spending $2,000 on branding itself. We also plan on spending $300 for our prototype and the development for it.
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Break-even analysis |
Projected Profit & Loss |