Business Plan: “Rainbow” company

     After evaluating our product we came to conclusion that main challenges for us will be creating an image of the product in the market and introducing it. We have to make strong promotion for our product and make it familiar, create demand.

     As to competition with jewelry sellers – we have something new to introduce to the market. Our product has great potential on the market. 

Marketing Plan 

Marketing Mix

Product

This product is rather new to the market. Main goal is to create strong brand. We have to represent our product as exclusive and unique. We have to intrigue our target audience at first then offer them something that they can’t find anywhere else.

For jewelry for women we should make emphasis on:

• Unique, handmade style jewelry
• Luxury product
• Creative ideas
• Great addition to any style

As to the accessories:

• “Stand out from the crowd”
• “Style in details”
• “Keep sweet things close”

 

Price

     As our product is unique, luxurious, the price level should meet its high class status. We make accent on its handmade origin and creative ideas so we are going to base our strategies on this.

     Our prices will range from budget options – starting from 50.00 UAH and luxurious up to 500.00 UAH. The price will depend on the materials and complication of the work.  

Place

     We are going to open our shops in big cities. So we are planning to have some storage space for our products.

     We will also have online store so customers can get their product at the store or get it shipped.  

Promotion

As far as many types of products are manufactured & aimed at different target markets, the promotion campaign will be divided into 2 parts l:

1. Promotion for final consumers through:

• Double-advertisement on billboards: particular supermarket (Velyka Kyshenya, Furshet in Kiev or smaller chains in other cities) introduces new product:creative handmade jewelry Rainbow;
• Advertisements in newspapers, mainly oriented on active and young people;
• Advertisements in magazines, such as “Liza”, “OK”, “Natali”, which are mainly oriented on woman and focused on fashion and style.

2. Promotion online:

• Advertisement on popular websites for young people;
• Creating blog with ideas for styles, promoting our products.
• Spreading information on special forums and participating in different exhibitions, fairs, festivals, etc.
• Supporting demonstrations on eco topics connected with young people;
• Direct promotion: making presentations for gallery directors;

Promotion plan:

1- 6 Months

The aim is to inform potential consumers. The main sources of information for final consumers will be billboards & thematic magazines. (Newspapers & magazines in other cities).

7- 18 Months

The aim is to persuade consumers to trust our company. We should provide supermarket chains & regional consumers beneficial delivery conditions. We should also persuade consumers that our product is quality:

• Ecologically friendly
• Cheap

18- 36 Months

The aim is to remind. Marketing approach such that doesn’t let customers to forget about our company. We’ll keep participating in youth-related events.

Cost of promotion will conduct (for the 1^st year):

• About 16 000 UAH per month in 1- 6 months
• About 11 000 UAH in 7- 18 months
• About 8 000 UAH in 9- 12 months

Further is the advertisement budget plan for 2 years (active promotion campaign)

 

Production Plan 

Production process is rather simple. We don’t need much equipment except some tools, furnaces and places to store work-in-process product.

The main difficulties are to create design and know how to make it real.

The production operations are the following:

1. Creating design
2. Purchase of raw materials
3. Forming piece of jewelry
4. Drying (machinery needed)
5. Finishing strokes and packaging
6. Sales

All the operations will be directed by the company, using company's resources, staff and vehicles. Only transportation will be partially conducted by external party: if the company sells its production to far distant places in Ukraine, it is going to be transported by UkrPoshta, be local shipping services and to local stores.

The material and technical sources, involved into production will be the following:

1. Raw materials (plastica)
2. Drying machines
3. Trays

 

All the prices include transporting and establishment expenses. All the machinery can be bought from regional retailers at good price as buying from abroad will bring more expenses than setting equipment from regional representatives.

The materials needed for production are plastica, small accessories for earrings (closures, beads). All these materials don’t need and further processing. In this way we can spend less time producing and getting more results.

 

The production place will be a rented office, which is a part of some office building with good location, therefore the access to resources will be constant and unlimited. No transportation cost for resources will be paid.

The machinery is wholly automatic, that is why the Rainbow Company will only need the following personnel in the office:

1. Technologist (1)
2. Master-designer (5, part-time job)

The company will rent one building:

1. Office: appartment, Kiev.

There exist external factors that can influence the process of production. For example:

1. Lack of materials delivered (not enough materials to produce desired masterpiece)
2. Unexpected productional problems (breaking of machines, etc)
3. Promotion campaign failure (weak interest, weak sales)

Organizational Plan

The Rainbow company as a start-up firm is established by an entrepreneur and third-party investors: the business will equally belong to:

60% - founder

40% - Ukrainian investor

Rainbow start-up costs will include the following equipment for the home-based business:

• Legal fees.
• Website creation fees.
• Home office furniture including desk, file cabinet, chairs.
• Computer including printer, CD-RW.
• DSL hookup.
• Copier and fax machine.
• Extra land phone line.
• Cutting tools.
• Raw materials (titanium sheet and wire).
• Anodizing equipment.

Rainbow is an open-stock share company. All the investors will receive dividends according to their shares in the establishment.

The founder is a start-up businessman from Kiev with an experience in many branches of business.

Ukrainian investor – is a «Ua-Gallery» company, that specializes on unique antique masterpieces (exclusive gallery for exquisite production). «Ua-Gallery» wants to own a part in a supported business.

The Rainbow company will need the following personnel categories:

For the office:

• Technologist (1)
• Master-designer (5, part-time job)
• CEO and CFO
• Marketing & Promotion Director
• Legal Dep-t Director (part-time)
• Accountant (part-time)

 

The investors are non-staff party according to such type of company organization. No external consultants will be hired. The technologist will be a full-time payed specialist from Sweden. 
 

 

Financial Plan

 
 

 
 
 
 
 

 

Risk Evaluation

There exist several factors of risks that the Rainbow company may meet in the beginning of its activity.

1. Production

This type of risks can be connected to some production failures, such as: