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Business Plan Preparation
Frank MoyesLeeds College of Business
University of ColoradoBoulder, Colorado
1Product/Service
Tonight’s Agenda Topics
PRODUCT/SERVICE DESCRIPTION Margins Read BP pp 6-7
OneButton (Vilo) business plan Elevator Speech In the Fire
Preliminary Market Analysis Results Preliminary Interview Results
Turn-in 3 alternative value propositions Customer Survey Questionnaire
Product/Service 2
Next Week Team to make
appointment with instructor next week
Marketing Plan Revenue Model Read BP pp 14-18
In the Fire - Prelim Industry Analysis Model company
description Hand in
10 Call Reports Preliminary
Competitive Matrix Model company
description
Product/Service 3
In the Fire Grading
Product/Service 4
Points Criteria25 to 30 Good Clear indication tha time and effort spent has been spent
Creative thought is evidentCan clearly articulate the issuesProvide clear evidence to support points
20 to 25 SatisfactorySome effort is evidentUnderstand the issues, but not clearly explainedSome evidence to support points
< 20 Poor Little to no effort is evidentDon't understand or can't articulate the issuesNo evidence to support
Business Plan Elements
Executive Summary Company Overview Market & Industry AnalysisProduct/Service Description Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Plan Funding
Product/Service 5
Product/Service Sections
Features Benefits Proprietary Rights Stage of Development
Product/Service 6
Features Detailed description
Attributes Environment Use photos, images, schematics
http://leeds-faculty.colorado.edu/moyes/html/documents/Business%20Plan/Amari%20Final%20BPLAN.pdf
What is unique? What is evidence that customers want these features? How produce & deliver – systems approach Don’t assume people know or understand your
product/service
Product/Service 7
Attributes Performance: durability, quality of materials, defect levels,
tolerances, construction, dependability, functional performance (acceleration, nutrition, taste), efficiency, safety, styling, packaging, etc.
Cost: purchase price, quantity discounts, operating costs, repair costs, cost of extras or options, cost of installation, trade in allowance, likely resale value, etc.
Availability: carried by local stores, credit terms, quality of service available from local dealer, delivery time, credit card, on-line transactions, etc.
Service: hours, warrant, guarantee, return/replacement policy, upgrades, maintenance, training, installation, repair service, spare parts, customer support, tech support, training, product design, make to order, level of inventory, quotation response time, lead time, quality certification, employee capabilities, etc.
Environment: location, atmosphere, layout, fixtures, aesthetics, style, sound, lighting, color, etc.
Product/Service 8
Benefits Describe major benefits - be specific What is the evidence that benefits are
understood by the market?
Product/Service 9
Benefits Emotional: ambition, power, independence, achievement,
ambition, pride of ownership, comfort, love, friendship, security, style, self Improvement, etc.
Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc.
Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc.
Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc.
Convenience? Objective is distinguish between benefits and features, not
put into categories
Product/Service 10
NetDogFeature Benefit
Adaptable to new network threats
Protection without a reduction in user productivity
Modular rules based system Adaptable to new business requirement and new threats
Guaranteed zero packet loss Eliminates the risk of false negatives
Intelligent network adaptation Protection is provided regardless of the network topology
Ships with a standard rule set Provides out of the box protection from common attacks
Scripting language and API Customers can develop their own powerful rules
Web based reporting system Improves forensics and visibility into the security of the network
Web based interface Makes administration of the system easy
Product/Service 12
FeaturesDUOBenefits
Ergonomic design
Eliminates back and shoulder pain so parents feel more comfortable while carrying their baby.
Cocoons Allow parents to more easily attach and detach baby from harness, eliminating fear of straining arms, dropping or tightly squeezing baby.
Multiple Cocoons
Parents maintain a look that can be seasonally updated to provide the feeling that they are on the leading edge of fashion. Babies are happier and more comfortable in Cocoons specifically designed to fit their current developmental stage.
Unexpected Attributes
Convenient features allow parents to keep important items, like keys, easily accessible. This saves time and energy spent preparing to get out the door.
Product/Service 13
Product & Service Conclusions
Make it real Photo, rendering, specs Prototype Evocative description
Make it exciting Sell your concept
Product/Service 14
Quality Dimensions I
Performance - the primary operating characteristics of the product or service
Features - the characteristics that supplement the basic functioning of the product or service
Reliability - probability of the product or service failing within a specified period of time
Conformance - the degree to which a product or service meets acknowledged standards
Product/Service 15
Quality Dimensions II
Durability - a measure of product life (both technical and economic)
Serviceability - the speed, courtesy, competence, and ease of repair or recovery
Aesthetics - how a product or service looks, feels, sounds, tastes, or smells
Perceived Quality - various tangible and intangible aspects of the product from which quality is inferred
Product/Service 16
Service Quality Dimensions
Reliability - ability to perform service dependably & accurately
Responsiveness - willingness to help customers & provide prompt service
Assurance - knowledge & courtesy of employees and ability to convey trust and confidence
Empathy - provision of caring, individualized attention to customer
Tangibles - appearance of physical facilities, equipment personnel and communication material
Product/Service 17
Margins
% Gross Profit Margin
% Contribution Margin
% Net Profit Margin
% Operating Expenses
Product/Service 18
Revenue – COG’s Revenue
Revenue – Variable Costs Revenue
Net Earnings Revenue
Sales, General & Admin Revenue
Margins %
ToyotaIntel Dell HP Corp
2005 2005 2005 2005 2004 2005Gross Profit 59.4 17.8 23.6 11.2 17.3 19.5SGA 16.4 9.3 16.6 3.6 2.4 4.8Net Profit 22.3 6.4 2.8 -5.7 1.4 6.5
P & G Whole Fds Kroger Amazon Merck2005 2005 2005 2005 2005
Gross Profit 51.4 35.1 24.8 24.0 76.6SGA 28.2 27.2 19.3 17.5 43.4Net Profit 12.7 2.9 1.6 4.2 21.0
Gen Motors
Product/Service 19