5 steps in Business Plan

1.0.         Nature of the business

Mosquito is one of the most dangerous animal that infected many diseases like Malaria, Filarial, Dengue fever. Every year millions of people are affected by these diseases all over the world. Mosquito is found more or less everywhere in the world. 343 people were founded in UK those were affected by dengue fever in 2012 (Bupa.co.uk, 2015). There are various tools are used for eradicating mosquitoes such as various coil, electric mat, spray etc. In addition, the traditional spray and coil polluted the air which is harmful for human health.

Keep Fresh Britain (KFB) is a private limited company, going to introduce a mosquito killer spray- QucikAction manufactured from NEEM, a divine tree. In UK, mosquito repellent market stands on in around £35 million which is increasing at an estimated rate of 5-7% per year and globally the rate is very high especially in South and South East Asia (Kremer, 2012). In this situation, the target of KFB is to capture 3% market share by 2 years. The strategic objectives are to penetrate in Asian market by 2018 and secure 15% of mosquito repellent market within 6 years. The financial objective is to gain 44% sales growth within 2017.

The question comes ‘Why people buy QuickAction?’ The answer lies in the customer experience cycle in relation with the product. OuickAction is different from traditional chemical based mosquitoes repellent and not harmful for health because QuickAction is produced by using natural compounds that is NEEM and free form any toxic chemical at the same time refresh the air from pollution.  The ingredients of QuickAction block the internal function of mosquitoes and kill the insects. The action of the repellent over mosquitoes remains 12 hours after spraying in the air.

The suppliers of KFB are from India and Brazil because in these countries the high quality NEEM trees are produced. Keep Fresh Britain will be a private limited company consisting of four directors. KFB will have three functional departments Operations, Marketing and sales and Finance and accounts. The company includes a consultant come from applied chemistry background who is responsible for monitoring the safety standard of the product. Marketing and brand communication department will get more priority in KFB because the role playing by the department will help the company to achieve the organisation’s objectives.

2.0.         Situation analysis

SWOT analysis

Strengths: The strengths are as follows:

Ø  Product with unique feature that not only eradicate mosquitoes but also stop the breeding of insects.

Ø  Zero chances of air pollution and health hazard.

Ø  Provide superior safety up to 12 hours with low cost.

Ø  This is an environment friendly business because for raw materials need NEEM trees.

Weaknesses: 

Opportunities: the opportunities are as follows:

Ø  Increasing awareness about the adverse effects of chemicals

Ø  The influence of existing DEET and dallethrin based will be ineffective gradually

Ø   Support from government for manufacturing eco-friendly product.

Threats:

Potential customers: The price of the product is competitive but the unique features of the repellent will attract middle income level customers to high income level customers. In UK, currently no company produce NEEM base misquotes repellent so it is hoped that middle class and higher class people will purchase the product. In addition, Asian market is comparatively challenging because there people are used to with coil, electric mat and chemical based spray. But, QucikAction will be popular to all level of customers for its unique features.

Geographical area: The head office of KFB will establish in UK. The company will establish two production facilities at India and Brazil because the raw materials are available there. Primarily manufactured product will sell in UK market. After three years the company will expand its marketing and selling operations in Asian market.

Business competitors: UK mosquito repellent market is very competitive. Major competitors of KFB’s are Boots, Pyramid, Mosi-Gaurd, After Bite, Sawyer, Dabur Odomos, Incognito, and Expedition. These competitor brands capture maximum market share of mosquitoes repellent in UK. Some brands are certified from Royal Health Care Society. So, KFB have to face a strong competition in capturing the target market share.

3.0.         Marketing Strategy

The company will manufacture three types of QuickAction repellent; economy size (120 ml), premium size (250 ml) and premium plus (425 ml). The target customer for economy size is individual and small family, premium size is for small and semi large family, and premium plus is for semi large, large and business office.

KFB keeps its product price affordable compared to rival brand. The price of economy size will be keeping £5, for premium size price will be £7 and for premium plus price will be £10. This price will eligible for UK market. Price will vary for Asian market when the company will start marketing and selling in the market. But, currently this price rate will be keeping.

The production capacity of the company is 1.5 million mosquitoes repellent bottle per year. In the first year, KFB will utilise 68% of its total capacity. And, in the second year, the company will bring it to 86% and it will be expected that from third year the company will reach in economies of scale. The sales projection for each quarter is 30,000 bottles in the first year. Second year sales projection is 42,000 in each quarter and third year sales projection is 51,000 in each quarter.

Marketing strategy is the most vital part for KFB of its QuickAction mosquitoes repellent. For achieving the market maximum market share the company should take unique marketing strategy than rival company. The objectives of marketing plan are:

Ø  Creating psychological positioning of maximum efficient chemical free brand in customer’s mind

Ø  Creating awareness to customer’s about the usefulness of the natural mosquitoes repellent and bad effect of chemical base solution

Ø  Positioning brand image of QuickAction in the market

Ø  Handover quality product with affordable price to the customers.

KFB will use the following four types of marketing strategies to grab the target customers:

Innovative product strategies: Emphasising on the innovative product attributes of stopping the breeding of the mosquitoes and ensuring highest level of safety up to 12 hours.

Promotion strategies: Educating customer especially Moms about the health hazards from using of chemical oriented spray.

Market penetration strategy: There are many strong competitors currently competing in the market. So, market penetration strategy will be adopted to create stronghold in the market

KFB apply integrated marketing communication tools as promotional strategies for QuickAction. The company will follow Below the line (BTL) tools for promotion the product. Two of the innovative BTL are-

 MAM campaign: MAM refers moms against mosquitoes that will hold during the period of school time when the Moms dropping and picking their children from school.  Free sample: The Company will distribute free sample of QuickAction (30 ml) to various religious institution, and public homes

4.0  Operations and Human Resource Strategies

5.0.         Financial Plan

References

Bupa.co.uk (2015) Dengue fever. [Online]. Available at: https://www.bupa.co.uk/health-information/directory/d/dengue-fever (Accessed: 8 October 2015).

Kremer, W. (2012) Ultrasound mosquito repellents. [Online]. Available at: http://www.bbc.com/news/magazine-20669080 (Accessed: 8 October 2015).