Transcript New Business Adventure 2008

CMA Young Post Green
Manufacturing
Competition
Writing Business
Proposal
(for junior level)
Alex Tham
Teaching Fellow
Department of Marketing
City University of Hong Kong
1
Recommended Structure of the
Business Proposal
(25 slides excluding appendix)
1.
2.
3.
4.
5.
6.
7.
8.
Executive Summary
Company Summary
Products and Services
Market Analysis
Strategy and Implementation
Financial Plan
Risk management and contingency plan
Bibliography and Appendix
2
Language
• Power Point Report: Chinese or
English
• Oral presentation: Cantonese or
English
3
Your Task
• Be creative! Develop a green product,
outline your concept, the manufacturing
process and promotional campaign.
• Your promotional campaign of the product
should be creative and include a good
variety of media and approaches that are
environmental friendly.
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Marketing Scheme
(Senior Level)
Marking Scheme
Junior Level
Innovation
50%
Originality
25%
Creativity
25%
Commercial Viability
30%
Profitability
10%
Investment Ability
10%
Market Potential
5%
Long Term Growth Potential
5%
Communication
20%
English Paper Presentation
(English / Cantonese / Mandarin)
Presentation
10%
Q&A
5%
5%
5
Marking Scheme
• Innovation / creative thinking 50%
– Originality / modification (25%)
• Is the business idea an original one?
• Zero mark would be given if there is
adequate evidence of cheating
– Creativity (25%)
• Does it have a creative approach?
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Commercial viability
(30%)
• Profitable (10%)
– Does the business idea offer an attractive and realistic
opportunity?
• Investment ability (10%)
– Does it have a sound business strategy?
– Is the proposed technology or skill capable of creating a
commercial advantage?
• Market potential (5%)
– Is there a demand for its products services?
– Are the market and financial projections realistic?
• Long-term growth (5%)
– Does the business have a good growth prospects?
7
Communication Skills
(20%)
• Paper presentation (10%)
– Is the business plan clear and well written?
• Presentation (5%)
– Does the team present the business plan
clearly and convincingly?
• Response (Q&A) (5%)
– Can the team quickly and appropriately respond
to the Judging panel’s inquiries?
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Executive Summary
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•
•
•
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Highlights of your business
Value proposition (less than 30 words)
Objectives of your business / your product
Keys to success for the business
Market potential (short term and long
term)
• Growth prospects and sustainability
9
Company Summary
• Valid assumptions
• Company Ownership e.g. Limited
Company or Partnership
• Start-up Plan, including start-up
expenses, assets and liabilities,
investment and total capital
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Value Proposition
• A statement summarizing the core
differentiation of one's product from the
offerings of competitors.
• A clear statement of the tangible results a
customer gets from using your products or
services.
• The more specific your value proposition is,
the better.
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McKinsey & Company - Corporate
Finance - value proposition
• Our value proposition rests on an
unrivalled package of strategic,
transactional and financial advisory
services, uniquely linked with
independent judgment and deep
industrial/commercial insight.
12
Product and Services
• Product and Service Description e.g.
special features and functions, technology,
materials used and sourcing of products
and services
• Any patent, copyright, license needed or
acquired
• Future development of products or
services
13
Green Manufacturing
• A method minimizes waste and pollution.
• CMA – bring green manufacturing to Hong Kong.
• Range from solutions for waste reduction and carbon
emissions to ways to use renewable energy such as
water.
• Find ways to 'green' industries that already exist or
come up with a new concept to manufacture green
products.
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Market Analysis
• Market Segmentation
• Market Potential: Target Market /Customers, ,
market needs and wants, buying behavior, trends
and growth
• Competition and major competitors, suppliers,
substitutes etc
– Who, What (business model, strategy, and entry barrier)
• Market Research (primary and/or secondary)
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A Famous Story about
Marketing Potential: Marketing
shoes
• Business all around the world
• Find a country where they don’t have
their business there.
• According to the secondary data, the
purchasing power is “ok”; able to buy
as least one pair of shoes made by
this company and the the target
population is large enough.
Question
– So, what will you do if you are the
boss of this company?
Contemporary
FB 2601 Marketing
Marketing, 2005
Send a team to have a
market survey
Facts
– True secondary data
– Blue sky, dusty ground
•
No one wearing shoes
Conclusion
•No Demand
•No need => No habit => No desire => No market
•Same as selling a comb to a monk who has no hairs.
•Give up this market
Question
• What is Demand?
Send the 2nd Team
Facts
– The same facts
Conclusion
• A huge market!!!
Go!
Go!
Go!
Question
• Why ?
•
Currently no competition > Enter it as quickly as possible to get
the first mover advantage.
• As long as you can sell your benefits to the market, people will
buy your products.
Send the 3rd team
Facts
– Same as the previous two
Conclusion
– They don’t need it because they can’t
see the benefits of wearing shoes.
Question
– So, what are the critical success
factors to market shoes there?
– What should this company do to market
shoes there?
Summary
Team
Conclusions
Concepts
No demand
No market
2
People buy what you sell
Selling concept
3
People buy what satisfies their
needs / solves their problem(s)
Marketing concept
1
Marketing is the delivery of
customer satisfaction at a
profit.
Kotler & Armstrong, Principles of Marketing, 12h edition
What is a Market?
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Having desire to buy
Willing to buy
Having authority to buy
Having money to buy
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Market Potential
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You need users and customers.
Who and where are your customers?
How many? (Now and Future)
Research support
Useful Links on the Internet
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Competition
• Direct Competitors
• Indirect Competitors
• Barriers to entry
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Strategy and
Implementation
• Specific Objectives, with dates
• Marketing Strategy, including product,
pricing, promotion, and distribution
• Sales Strategy, with sales forecast and
programs
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Marketing Objectives
Objective
Direction
Measure per month, quarter, or
year
To increase unit
sales
No. or % increase of product
sold
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Financial Objectives
Objective
Direction
Measure per month, quarter, or
year
To increase sales
volume
Dollars sales per a period of
time
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Risk and Contingency
Risks
Solutions
1. Economic downturn
Price reduction
2. Copycat of the products
Patent
3. A lot of unsatisfied consumers
Survey and product modification
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Important Notes
• Acknowledge sources of reference,
information and data
• Attach supporting researches or
documents
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Good Luck
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