The main objective of this report is to identify and develop a business plan for the business idea under consideration. This business plan is required to be developed on a business idea of developing and distributing solar powered power banks. This is an innovative idea that will help in the conservation of energy as well as promote the use of renewable energy at a smaller level. This type of product introduction will also help in ensuring the conservation of energy on a larger scale. The focus of this report will be on a market analysis of this product (Erasmus, Strydom and Rudansky-Kloppers, 2016). The demand forecast will be undertaken by analysing the financial position of other business organizations operating in this industry. In addition to the two marketing plans will be developed by considering market segmentation, targeting, positioning statements, and environmental scanning.
Competitor analysis is one of the most essential aspects of any business plan as it helps in identifying the strategies of the business organization that will be in direct competition with the new business. For a new business organization, the competitive analysis also helps in developing their business plans by identifying competitors that are performing exceptionally well in the industry. After analysing the industry it can be said that this market is comparatively new as compared to other industries. The primary reason that this industry is in its growing stage is the lack of effective technology and the high cost of production. Overall selling prices of solar power banks is significant as compared to traditional power banks which decrease the demand for such products in the market.
Some of the major competitors in this market are Anker, Microsoft Corporation Panasonic Corporation, One Plus, and Sony Corporation (Aanesen, Heck and Pinner, 2017). Business organization under consideration of this report will be developing its operation on a medium scale level and it can be said that anchor will be its primary competitor. All the other business organizations mentioned in this industry large scale business operations with a significant amount of financial resources and reach to customers (Carlson, 2019). Over the period these competitive management strategies will be improved and other business organizations will be considered as major competitors.
SWOT analysis is an effective technique that can help the organization to identify its effectiveness to compete with the primary competitor.
Strengths-
Weaknesses
Opportunities
Threats
This section of the report will be primarily focused on external factors that will be affecting the operations of the organization generated through the market and not the internal efficiency of the company. The factors are beyond the control of management and proper analysis of each of the specific factors that can harm operations of the companies required to be analysed and strategies are required to be developed. Pestle analysis can be used in the given scenario for identifying the major factors affecting operations-
Political factors- these factors will not have any impact on operations as policies of Government are generally promoting business organizations operating in renewable energy.
Economic factors- Economic factors will be the primary factor affecting business operations negatively as the cost of production associated with this business plan will be significantly higher as compared to traditional power banks (Jayaraman and Ling, 2017). Overall profitability during the initial phases is required to be reduced to provide the product at reasonable prices and prices lower as compared to competitors.
Social factors- The majority of the customers are not aware of this type of product and their advantages in the long run. For this purpose, management will be focused on developing a marketing campaign directed towards the target customer for promoting the benefits of using solar power banks as compared to traditional power banks.
Technological factors- The cost of production is expected to decrease over the period with the help of advancement in technology (Kannan and Vakeesan, 2016). Management will be required to constantly monitor the advancement in technology to ensure that the production process is flexible to incorporate the changes.
Legal factors- Legal factors are also not expected to have any negative impact as there are no restrictions on entry and exit in this market. Different legislations apply to business organizations operating in Australia that are required to be followed. Management is recommended to develop a legal department that will be focused on identifying these regulations and implementing them in the business (Chan, Cameron and Yoon, 2017).
Environmental factors- This factor can also have a significant impact on operations as rules and regulations concerning the protection of the environment are required to be followed by the company. For example, management will be required to ensure that there are plans in the company for recollecting damaged power banks for their environmentally friendly disposal.
This demand forecast is developed based on the available financial resources, production capacity, and popularity of competitors in the market. It is expected that the management of the company will be able to sell around 4800 units of solar power banks during the first year of operation. It is also expected that the demand for the product every month will increase gradually with the help of marketing campaigns. In the second year of operation, it is expected that the total number of products sold by the organization will increase by 40%.
|
Month |
Number of units |
|
January |
300 |
|
February |
300 |
|
March |
300 |
|
April |
350 |
|
May |
350 |
|
June |
350 |
|
July |
350 |
|
August |
500 |
|
September |
500 |
|
October |
500 |
|
November |
500 |
|
December |
500 |
Demographic marketing segmentation will be used in the given scenario for dividing the market. Target markets in the given scenario will be selected based on the age group and the preferences of the customer. This type of product is generally popular among people between the ages group of 16 and 35. This is since this category of people is more aware of environmentally friendly products and solar power products. In addition to that preferences of customers will also be considered (Dolnicar, Grün and Leisch, 2018). For example, people with a preference for traveling for pleasure or business will be considered as an effective market for this product. Analysis of this market will be undertaken with the help of the various website of traveling and adventure sports available on the internet. Preferences of such customers can be identified for the development of a marketing campaign that will be directed towards increasing demand for the product in the segment.
Targeting of market segmentation can be done with the help of effective and efficient marketing campaigns and strategies. In the given scenario to marketing strategies will be used i.e. personal marketing and social media marketing. Personal marketing will be undertaken by visiting traveling and adventure camps and promoting the product directly to the customers. This will help in describing the product and its advantages and more efficient manner. The primary focus of this marketing campaign will be to provide information about the use of solar power products and their cost efficiency as compared to competitors.
Social media marketing will be used as an overall reach of this marketing plan is significantly higher due to the increase in the number of people using social media. A various business organization such as Coca Cola and other retail sector organization has been able to influence purchasing patterns of the customer with the help of effective and efficient social media marketing (Tuten and Solomon, 2017). Social media marketing will be done with the help of social media platforms such as Twitter, Instagram, and Facebook. This combination will help in maintaining the effective balance between cost efficiency of both these marketing plans.
The unique proposition offered by a particular product is communicated with the help of a positioning statement. This unique quality presented by a product helps in gaining a competitive advantage over other competitors in the market. The positioning statement of the company will be focused on the pricing of the product. The profit margin retained by the organization for the initial first year of operation will be lower as compared to competitors at 15% only. Over the period this profitability margin will increase as long as management can create a brand image among the customers (Keegan, 2017).
Conclusion
Business marketing and planning is very essential for our new product as customers are not aware of the unique quality that is being proposed by a new business organization. This type of planning helps the organization to acquire loyal customers of other brands in the market and create a higher market share. The main focus of this report was on identifying an important aspect of the marketing plan for an organization producing solar power banks. The target market of the customer will be people between the age group of 16 and 35 with a preference for camping and adventure sports. Social media marketing and personal marketing will be the key strategies used for attracting customers.
References
Aanesen, K., Heck, S. and Pinner, D., 2017. Solar power: Darkest before dawn.
Carlson, M., 2019. Concentrated Solar Power: Electrifying Data Centers. Available at SSRN 3383880.
Chan, D., Cameron, M. and Yoon, Y., 2017. Key success factors for global application of micro energy grid model. Sustainable cities and society, 28, pp.209-224.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market segmentation analysis. In Market Segmentation Analysis (pp. 11-22). Springer, Singapore.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business management. Oxford University Press Southern Africa.
Jayaraman, K. and Ling, C.P., 2017. Obstacle for Business in Generating Electricity Through Solar Energy-Insights From An Industry. Amity Global Business Review, 12.
Kannan, N. and Vakeesan, D., 2016. Solar energy for future world:-A review. Renewable and Sustainable Energy Reviews, 62, pp.1092-1105.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Kim, H.J., 2019. Solar Power and Energy Storage Systems. CRC Press.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.
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