The PLUTO Business Proposal is confidential and entails PLUTO’s proprietary information. The information in this document should not be reproduced or disclosed to any person without approval from PLUTO.
Introduction
Pluto Inc. is a bike manufacturing company founded in 2010 in New York City, United States. The company manufactures, repairs and sells bicycles. The company offers a special type of bicycle, which is centred on customers’ posture and health issues. Back pain is an issue associated with recreational and professional cyclists. The company’s intention is to address the health issues associated with normal bikes, such as lower back pain. Therefore, this presents the company’s business proposal.
Company Concept And Overview
Pluto is a new company focusing on manufacturing advanced sporting bikes. The company was formed in 2010 in New York City. After conducting market research with bike riders, potential customers and experts with knowledge of the industry, we realized the need to develop new racing bicycles and recreational bicycles. Currently, we are working on creating a functioning company that manufactures and sells racing bicycles.
Problem: Back pain is an issue associated with recreational and professional cyclists. Therefore, every cyclist is complaining about the lower back pain associated with cycling. Cyclists have complained that the bicycles are too long and lack flexibility and core strength. Due to these problems, cyclists and bike lovers are abandoning their recreational activities while others are using bicycles in the market due to the lack of an option. Also, riding a bike is becoming so tiresome due to the fact that the bikes are too long, making cyclists and riders ride for a short period. The lower back pain associated with the bikes in the market is caused by the lack of flexibility in the bicycle’s core system. Lack of flexibility causes riders to spend time in the same position for a long time without a break, causing muscle pain. This creates more problems for the rider since the natural position of being on the bicycle implies that a lot of stress goes through the spine. Thus, for the pedal strokes to work properly, the body must be in a flexed position, which results in lower back pain. Therefore, our company intends to make things easier for riders.
Pluto Solution
Pluto’s solution to the problem stated above is our main competitive advantage, and we intend to penetrate the market with it. We shall use the sensory device to notify riders when to change their position a bit so they do not experience lower back pain. The proprietary “sensory device” will be in the bike pedals, and it will provide positional awareness to riders. Thus, at some point, after the rider has travelled for five miles, he or she gets a notification from the sensory device to change his or her position. Therefore, the bicycles will allow flexibility, which is not common with the bicycles in the current market. Also, the advanced technological bicycle will be manufactured with a Heart Rate Monitor Device. When riders are cycling, their body temperatures rise, which then causes blood pressure to increase, which can cause heart problems. Pluto intends to make it possible for riders to have heart rate monitors to ensure that their health is intact while riding. The heart rate monitor devices measure the rate of the rider’s heartbeat. The device is essential since it ensures that riders know that they are in good health before, during and after racing.
Pluto will incorporate GPS features into the bikes we produce. Normally, riders go to places with which they are not familiar. Thus, the GPS feature will help riders know where they are and where they want to go. The GPS feature will give riders directions. Also, the GPS feature will help riders avoid getting lost.
Pluto’s innovative and proprietary automatic seat height will be flexible, and it will set itself depending on the weight and height of the rider. The seat height of the Pluto bikes will ensure that the lower back pain problem is completely eliminated. Also, the seat angle will ensure that cyclists are in the right positions, and it allows positional changes to ensure that riders are not as exhausted as they are on normal bikes. Due to the comfort and flexibility of the bike, riders will be able to burn up to 75 calories per mile. Our products ensure that they reduce lower back pain by 70% and offer flexible seats that are not too long.
The Opportunity
Research has shown that there is steady growth in the number of people who commute using bikes. The overall growth of bike commuting is recorded as follows: there is an increase in the growth of commuters who are not friendly with cycling by 31% in the United States. Also, all over the United States, the number of people commuting by bicycle has increased by 62%, and the number of people who are friendly with a bicycle has increased by 105%. Thus, the increase in people using bicycles implies there is a gap in the market that needs to be filled. Also, the research shows that different states consume different types of bikes. There is an increase in the market for bikes and the use of bicycles in Washington, DC, by 498%, while in a place like Austin, Texas, the number of people commuting by bike has increased by 77%.
The bicycle market is available in the United States. Therefore, entry for modernized and technologically advanced bicycles will be accepted in the market. Across the globe, the number of bikes has increased tremendously in terms of their capability and flexibility. This growth has created a market for our product, and we intend to address this need in the market. Furthermore, the uniqueness of our product and the competitive advantages of the health-oriented bikes will offer different opportunities for our company’s products (Osterwalder & Pigneur, 2010). Moreover, our bikes intend to offer a solution and improve the bike’s operation, which will help to increase the demand for our product. Also, due to traffic jams in cities, there is a prediction that people will be using bikes to report to their jobs. This prediction presents the company with a perfect opportunity since the demand for bikes will increase; thus, our company will fill the gap in the market. There is already a ready market for bikes. Therefore, the time for market entry is perfect and helps the company gain market share and increase its sales. Thus, the increasing community of bike users offers the company the perfect opportunity.
Business Model
Pluto’s business model is to manufacture within the company and partner with an established electrical manufacturer, bike manufacturer and electrical retailers to ensure smooth distribution and sales in the market. Our model will focus on key activities, which include hardware design, marketing, maintenance, and upgrades. Our value proposition will be based on health issues by reducing risk, promoting health, and offering comfortable experiences. Our products will help ensure the bike community is happy and offer a product to the mass market, racing riders and trainers. We intend to have the best customer service to help create customer relationships.
Pluto Mission Statement
Our mission is to deliver an innovative solution to the persistent problem of back pain caused by bad posture while providing various degrees of performance measurement tools tailored to whatever recreational, therapeutic, or professional need the customer requires. Our business is to create a customer-based business. We intend to achieve this by offering and providing the highest-quality bikes. We also improve our service and all aspects of the business in order to have long-term success and satisfy our customers and ourselves. We will create a friendly environment for our employees and customers. Our delivery services to our clients will be timely and quick.
Product Offering
Pluto’s bike enables riders to change position while cycling. Thus, at some point, after the rider has gone for five miles, he or she gets a notification from the sensory device to change his or her position. The bikes will allow flexibility, which is not common with the bicycles in the current market. Also, the advanced technological bikes will incorporate a Heart Rate Monitor Device into their system. When riders are cycling, their body temperatures rise, which then causes blood pressure to increase, which can cause heart problems. Pluto intends to make it possible for riders to have heart rate monitors to ensure that their health is intact while riding. The heart rate monitor devices measure the rate of the rider’s heartbeat. The device is essential since it ensures that riders know that they are in good health before, during and after racing. Pluto will incorporate GPS features into the bikes we produce. Normally, riders go to places with which they are not familiar. Thus, the GPS feature will help riders know where they are and where they want to go. The GPS feature will give riders directions. Also, the GPS feature will help riders avoid getting lost.
Pluto’s innovative and proprietary automatic seat height will be flexible, and it will set itself depending on the weight and height of the rider. The seat height of the Pluto bikes will ensure that the lower back pain problem is completely eliminated. Also, the seat angle will ensure that cyclists are in the right positions, and it allows positional changes to ensure that riders are not as exhausted as they are on normal bikes. Due to the comfort and flexibility of the bike, riders will be able to burn up to 75 calories per mile. Our products ensure that they reduce lower back pain by 70% and offer flexible seats that are not too long. Our product is customer-centred and looks at bikers’ health and posture. Thus, it offers more benefits to our clients.
Benefits
The company’s product will benefit riders on different fronts. Our product intends to help current bikers get comfortable bikes. Also, in cases of falls, sensors on our bikes will help to reduce the impact of cyclists’ falls. Also, our product is designed to monitor the posture and health of bikers. The GPS ensures the security of the bike. The bike sensors are accurate, which protects the cyclist.
Intellectual Property
Engineer Phillips is the brain behind this project and is the inventor of the underlying technology. Our technology is new, and it is being applied to bikes for the first time. The seating posture and flexibility and the heart rate monitor sensor are discoveries that are being used on the bikes. Under the patent statute, the owner of the patented product, service, or process is the only one with the right to sell and offer services for the invention until the entire term of the patent expires. Thus, the requirement for the invention to be patented is that it must be new and non-obvious. Also, the inventor must give a detailed written description of the invention and the process to use in full context. Also, the patent statute is classified as matter-processes or machines or the composition of matter. Thus, for the product to be patented, it must follow at least one of the statutory classifications. Our technology qualifies for patent application.
Developmental Stages
We have determined how the technology is going to fit the bike system. Posture is the minimum viable product; thus, seat angles and heights are the main features of the bikes. Also, to track performance, measuring vital signs, speed, and GPS navigation technology will help ensure that riders are aware of their cycling conditions. Pluto will incorporate GPS features into the bikes we produce. Normally, riders go to places with which they are not familiar. Thus, the installation of the GPS feature will help riders know where they are and where they want to go. The heart rate monitor sensor will have an audio notification voice. The device is essential since it ensures that riders know that they are in good health before, during and after racing. Thus, the earpiece of the device will be put on the rider’s helmet.
Customers Analysis
We have identified our target market for our products, and we have classified the market as follows:
- Recreational cyclists
- People going through physical therapy
- Trainers
- Professional teams
- Commuters
Recreational cyclists are the victims of the current bikes in the market since 50% of recreational cyclists suffer lower back pain. Thus, our target will be them since our products care about their posture and health status. Also, from the research, recreational cyclists are eager to buy new bikes that will improve their posture and that have heart rate monitors as well as GPS devices (Van Hoof et al., 2012).
Our product is centred on bikers’ posture and health; thus, it offers a perfect solution to people going to physical therapy. People are improving their physical strength. The bike offers health devices and posture support that help them achieve their objectives.
Our product features are perfect for professional cyclists. The posture and other technological devices in our bikes will help professional bike racers to compete effectively and efficiently. Therefore, professional cyclists are also our target market. Also, the bike enables trainers to train effectively.
Our main market is commuter consumers. Research has shown that the number of commuter cyclists is increasing every day. Thus, our product is unique in the market due to its features. We intend to market and advertise our product to reach the commuter market.
Interviews & Results
- How hard is it to figure out the cause of back pain?
Approximately 66% of the respondents acknowledged that it is very hard to know the cause of lower back pain, while the remaining respondents offered different opinions, as indicated in the graph above.
- How often do you face this problem?
- Have you ever been a beta tester for any product, service or app?
- Do you want to have a solution to this problem?
- How likely are you to use this service?
- How likely are you to recommend this service to other clubs?
- Would you be willing to pay a little more to find a solution to this problem?
Results Analysis
From the research, it is clear that our product is destined for success. Consumers are ready for a new product that values them due to the product’s health stance and ability to show that it’s consumer-centered. Thus, consumers have a negative attitude toward the existing substitute products in the market. The respondents associated the problems they face while riding bikes with current bikes in that market. Our product will address the issues associated with bikes on the market.
Sales Strategy & Promotion
Our company will adopt different strategies to promote and advertise bikes to the market. Our objective is to gain market share and create brand loyalty among customers. First, we will use a break-even pricing strategy to penetrate the market. By using this pricing strategy, we lower the cost of our product to attract more customers and also reduce competition from the market, hence earning more clients in a short period. Also, we will make sure that our product is different from that of the existing competitors. Thus, a product-differentiation marketing strategy will be our core strategy in creating brand loyalty as well as earning market share in the market.
Also, strengthening customer relationships and using their ideas to create a friendly environment for the clients will attract more customers to our business. Also, we will ensure that the relationship between employees and customers is better to help attract more clients and maintain the existing ones. Furthermore, we will base our business on an innovative background, thus creating room for continuous improvement and helping to keep the customer satisfied. Also, we will embark on creating smart hiring practices that will help to create an innovative business.
We will use social media as an advertising channel for our business. Advertising on social media is an effective method since it is cost-effective. Also, social media offers a better platform to market our product to cyclists. Moreover, we will use networking to attract more customers to our business as well as create customer loyalty.
The company intends to have at least eight major events in a month apart from its daily activities. Thus, our organization will have those major events hosted every weekend, i.e. Saturday and Sunday, and on public holidays. Management communicates the location of the event three weeks prior to the event. Also, the events are advertised in local dailies, TV shows, and radio stations. Moreover, the company offers services every day in the morning and evening apart from the weekend. These events will help us market our product to the public.
References
Osterwalder, A., & Pigneur, Y. (2010). Business model generation. John Wiley & Sons. https://www.strategyzer.com/books/business-model-generation
Van Hoof, W., Volkaerts, K., O’Sullivan, K., Verschueren, S., & Dankaerts, W. (2012). Comparing lower lumbar kinematics in cyclists with low back pain and healthy controls. Manual Therapy, 17(6), 593–599. https://doi.org/10.1016/j.math.2012.05.003
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