Due to the dynamics of customers’ needs, competition among different organization is ever growing. Consequently, organizations are coming up with strategies of sharpening their competitive advantage. Many of these strategies are either geared towards minimizing the cost of production, maximizing the net profit, minimizing the customers waiting time or even improving the quality of products produced. Product differentiation and integration are some of the ways many organizations have been using to meet their organizational goals.
Dehumidifier.inc, originally specializing in making refrigerators, has been facing stiff global competition. As a result, it wants to venture into making dehumidifiers so as to boost its cash-flows in the positive direction.
A dehumidifier is a device that reduces the amount of humidity in the air. By doing so, it reduces the chances of survival of moths, cockroaches, termites and fleas. Thus, it helps a lot in preventing the diseases that can be transmitted by these pests. Previous studies have shown that by use of a dehumidifier, the chances of transmission of diseases are reduced by 75%. Another advantage of a dehumidifier is that it increases conformability by reducing sweating.
This product will be safe for use and will meet all the current regulations. The advantages of this product over those existing in the market are less consumption of power and automatic defrost. Other key features of this dehumidifier are Automatic Humidistat Control, Automatic Bucket Full Shut-Off, washable air filters and Removable Water Tank. Unlike the product offered by our competitors, the noise level of this product is less than 49dB (A). It also has caster wheels for easy movement.
The initial capital will be used to patent, approve, test, produce, and market as well as providing the initial working capital during the inception year.
Table of Contents
- Executive Summary
- To Achieve the Desired Growth, the Following Strategies Will Be Used by Dehumidifier Inc.
- Keys to Success
- Objectives
- Potential Risks
- Company Background
Objectives and Key Themes
The main objective of Dehumidifier Inc. is to diversify its product line by venturing into the dehumidifier market to enhance profitability and counter stiff global competition in its existing refrigerator business. The business plan outlines strategies for achieving market penetration, profitability targets, and overall organizational growth.
- Market Differentiation and Competitive Advantage
- Product Development and Launch Strategy
- Financial Projections and Risk Mitigation
- Marketing and Branding
- Global Expansion Strategy
Chapter Summaries
Executive Summary: This section introduces Dehumidifier Inc.'s plan to enter the dehumidifier market to combat intense competition in its existing refrigerator business. It highlights the product's key features, including low power consumption and automatic defrost, differentiating it from competitors. The summary also presents projected financial returns and the total funding required for the project.
To Achieve the Desired Growth, the Following Strategies Will Be Used by Dehumidifier Inc.: This chapter details the strategic approach Dehumidifier Inc. will employ to achieve its goals. Strategies include differentiation to meet diverse customer needs, a first-to-market approach for rapid customer acquisition and retention, a robust branding campaign, a cost-focused strategy to attract price-sensitive customers, and a prompt response system to customer complaints. The chapter emphasizes the importance of these strategies in achieving rapid market penetration and sustained growth.
Keys to Success: This chapter identifies critical factors contributing to the project's success. Key elements include a strong first-mover branding campaign, patent protection to safeguard the product concept, complementary relationships with other businesses impacting production and the overall success of the company, positive relationships with both suppliers and customers, a capable management team, and effective marketing strategies offering a decisive competitive edge.
Objectives: This section outlines specific, measurable, achievable, relevant, and time-bound objectives for Dehumidifier Inc. These objectives encompass product development milestones (prototype completion, testing, and launch), market penetration goals (becoming the customer's preferred choice in the UK and achieving worldwide distribution), and sales targets for specific time periods. This section sets clear benchmarks for the organization’s success.
Potential Risks: This section identifies potential challenges that could hinder project success. These risks include geographical limitations of the production unit affecting market reach, government regulations, costs associated with product defects and late deliveries, issues related to product visibility and management support, potential customer reluctance in market reviews, and lack of essential tools, software, training, and commitment within the project team.
Company Background: This chapter provides an overview of Dehumidifier Inc.’s history, existing assets, and expertise. The company’s extensive experience in refrigeration manufacturing, coupled with its strong management team, positions it favorably for market entry. The plan outlines a phased market penetration strategy, beginning with a pilot test in the UK before expanding globally, primarily focusing on the African market due to a lack of significant dehumidifier manufacturers in the region.
Keywords
Dehumidifier, Business Plan, Market Entry Strategy, Competitive Advantage, Product Differentiation, Financial Projections, Risk Management, Global Expansion, Branding, Marketing Strategy.
Dehumidifier Inc. Business Plan: Frequently Asked Questions
What is the main objective of Dehumidifier Inc.'s business plan?
The primary objective is to diversify the company's product line by entering the dehumidifier market. This aims to increase profitability and mitigate the challenges posed by intense global competition in their existing refrigerator business.
What are the key strategies outlined in the plan to achieve growth?
The plan details strategies focusing on market differentiation to meet diverse customer needs, a first-to-market approach for rapid customer acquisition, a robust branding campaign, cost-focused pricing to attract price-sensitive customers, and a responsive customer complaint system. These strategies aim for rapid market penetration and sustained growth.
What are the key factors identified for the project's success?
Key success factors include a strong initial branding campaign, patent protection for the product, beneficial relationships with other businesses, positive supplier and customer relationships, a competent management team, and effective marketing strategies providing a competitive advantage.
What specific objectives are outlined in the business plan?
The plan sets specific, measurable, achievable, relevant, and time-bound (SMART) objectives. These include product development milestones (prototype completion, testing, launch), market penetration goals (becoming a preferred choice in the UK and achieving worldwide distribution), and sales targets for specific timeframes.
What are the potential risks identified in the plan?
Potential risks include geographical limitations affecting market reach, government regulations, costs associated with product defects and late deliveries, challenges with product visibility and management support, potential negative customer reviews, and a lack of essential resources (tools, software, training) within the project team.
What is Dehumidifier Inc.'s company background and experience?
Dehumidifier Inc. has extensive experience in refrigeration manufacturing and a strong management team. The plan outlines a phased market entry, starting with a UK pilot test before expanding globally, focusing initially on the African market due to limited competition there.
What are the key features of Dehumidifier Inc.'s dehumidifier product?
The plan highlights key features designed to differentiate the product from competitors, including low power consumption and automatic defrost.
What financial aspects are covered in the business plan?
The plan includes projected financial returns and the total funding required for the project.
What is the proposed marketing and branding strategy?
The plan emphasizes a strong branding campaign as a key element for success, along with other marketing strategies to establish a decisive competitive edge.
What is the global expansion strategy?
The global expansion strategy involves a phased approach, beginning with a UK pilot program before expanding to the African market due to a lack of significant competition in that region.
- Quote paper
- Kelvin Cherry (Author), 2013, Business plan of Dehumidifier Corporation of America, Munich, GRIN Verlag, https://www.grin.com/document/271469
