BUSINESS PLAN :

COMPANY & PRODUCT DESCRIPTION

MARKETING PLAN
 Schedule

Week Content Remarks

Business Plan 1:
8
Introduction, Industry – Customer – Competitor Analysis
v
Business Plan 2:
9
Company & Product Description, Marketing, Development & Operation Plan
Business Plan 3:
10
Team, Critical Risk, Financial Plan
11 Business Plan Review
Manajemen Pemasaran & Operasional Bisnis,
12
Manajemen Sumber Daya Manusia, Analisis Biaya & Keuangan
13 Business Pitching
14 Business Pitching - Exercise
Final Exam
Week 8

Week 9

Week 10
COMPANY AND PRODUCT DESCRIPTION:
SELLING YOUR VISION

The first paragraph identify the company name, where it is

incorporated, and a brief overview of the concept for the
company. Be clear but succinct in describing the
product/service in this introductory paragraph. In the
following paragraphs, you can go into much greater detail.

Graphic representations can be powerful.


Clue:
 Pick two or three of the key attributes identified in
the competitor profile matrix and show how your
venture differs from the competition
 Product Positioning Map
PRODUCT DESCRIPTION:
VALUE PROPOSITION & COMPETITIVE ADVANTAGE
Based upon your competitive analysis, why is your product better,
cheaper, faster than what customers currently have access to?
Your advantage may be a function of proprietary technology, patents,
and distribution.
Like many business success is a function of superior execution rather
than some unique product attribute.
 On top of operational excellence, Lazybones’s competive advantage
lies in understanding its customer (affordable price, customer service
provided, etc)
Entry Strategy
• Communicate how you enter the industry and survive for the first couple of years while
you are building your customer base and refining your business model.

• Since most new ventures are resource constrained, especially in terms of available capital,
it is crucial that the lead entrepreneur establish the most effective way to enter the
market. Based upon analysis in the market and customer sections, entrepreneurs need to
identify their primary target audience (PTA)
Growth Strategy
• The growth strategy should talk about the secondary and tertiary target audiences
that the firm will pursue. Thinking ahead to the next section of the business plan,
the marketing section of the business plan must support your entry and growth
strategies.
 MARKETING PLAN:
Product/Service Strategy

• How your product is differentiated from that of the competition.

• What attributes are important to the customers?

• Are they willing to pay a premium for those features?

• Will they continue to pay a premium for those features?

• This section should also address how you will provide service to the
customer. What type of technical support will you provide?

• Will you offer warranties? What kind of product upgrades will be

available and when?
Target Market

Pricing Strategy
• Determining how to price your product is always difficult.
• The two primary approaches are the “cost plus” approach and the “market demand” approach
Tips
• The better method is to canvass the market and determine an appropriate price
based upon what the competition is currently offering and how your product is
positioned.

• If you are offering a low-cost-value product, price below market rates.

• If your product is of better quality or has features superior to those of the

competition (the more common case), it should be priced at a premium to the
competition.
Distribution Strategy

• Many new ventures assume the availability and capacity of channels of

distribution for a new “improved” product.

• It is also important to understand the cost of reaching the customer, even if you
can access the distribution channels.
Distribution Strategy (Cont’d)
• The key here is to identify appropriate channels and then assess how costly it is to
access them. Lazybones has two distribution strategies. First, it can reach out to
students directly. Its advertising strategy would support this distribution by
placing flyers around campus, putting ads in university publications, and so on.

• However, since the primary target is the parent, Lazybones has found that a better
strategy is to be endorsed by the university, which then promotes and includes
Lazybones advertisements in the information packets it sends to parents. In
essence, Lazybones is distributing its service through the university.
Advertising and Promotion
• Communicating effectively to your customer requires advertising and promotion.

Sales Strategy
• How many salespeople and how much customer support do you need?
• Will these people be internal to the organization or outsourced?
• If they are internal, will there be a designated sales force or will different members of the
company serve in a sales capacity at different times?
• Sales forecast in certain period.
 BUSINESS PLAN :
OPERATIONS & DEVELOPMENT PLAN
(EXECUTION)
OPERATIONS PLAN
 When does the company pay for inputs?
 How long does it take to produce the product?
 When does the customer buy the product and, more importantly, when
does the customer pay for the product?
 The time from the beginning of this process until the product is paid for
will drain cash flow and has implications for financing.

Note: for a service company, the operations plan tends to be more detailed as it shows
how the company provides its service to the customer.
 Operations Strategy

• How does your business win/compare on the dimensions of cost, quality, timeliness, and
flexibility? The emphasis should be on those aspects that provide your venture with a
comparative advantage.

• It is also appropriate to discuss geographic location of production facilities and how this
enhances the firm’s competitive advantage.
 Scope of Operations
• What is the production process for your product or service? A diagram powerfully
illustrates how your company adds value to the various inputs.

• The scope of operations should also discuss partnerships with vendors, suppliers, and
partners.
 Ongoing Operations

• This section builds upon the scope of operations by providing details on day-to-day
activities.

• An operating cycle overview diagram graphically illustrates the impact of production on

cash flow.

• As entrepreneurs complete this detail, they can start to establish performance

parameters, which will help monitor and modify the production process into the future
and test assumptions regarding competitive advantages.
DEVELOPMENT PLAN
 The development plan highlights the process of preparing the company for generating sales and provides a
detailed timeline.

 For example, new software or hardware products often require months of development. For a retail
business plan, site location, financing, and zoning can take 12–18 months or longer. The development plan
should detail the steps taken to get to that developed software product.
 Development Strategy

• What work remains to be completed?

• What factors need to come together for development to be successful?

• What risks to development does the firm face?

• For example, software development is notorious for taking longer and costing more
than most companies originally imagined.
 Development Timeline

• A development timeline is a schedule that highlights major milestones and can be

used to monitor progress and make changes. The timeline helps entrepreneurs
track major events and schedule activities to best execute on those events.