The PLUTO Business Proposal is Confidential and Entails Proprietary information of PLUT. The information in this document should not be reproduced or disclosed to any person without approve from the PLUTO.
Pluto Inc. is a Bike manufacturing company founded in 2010 in New York City, United States. The company manufactures, repair and sell bicycles. The company offers a special type of bicycles, which are centered on customers’ posture and health sue Back pains are being an issue associated with the recreational and professional cyclists. The company bike intention is to address the health issues associated with normal bikes such as lower back pain. Therefore, this presents the company business proposal.
Company Concept and Overview
Pluto’s is a new company focusing on manufacturing of advanced sporting bikes. The company was formed in 2010 in New York City. After conducting market research from the bike riders, potential customers and experts with knowledge in the industry, we realized that the need to develop new racing bicycles and recreational bicycles. Currently, we are working are working on creating a functioning company that manufactures and sells racing bicycles.
Problem: Back pains are being an issue associated with the recreational and professional cyclists. Therefore, every cyclist is complaining about the lower back pains associated with cycling bicycles. The cyclists have complained that the bicycles are too long and their flexibility and core strengths. Due to these problems cyclists, lovers are abandoning their recreational while others are using the bicycles in the market due to lack of an option. Also riding a bike is becoming so tiresome due to that fact the bike are too long making the cyclists and riders to 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 bicycles core system. Lack flexibility makes the riders to spending time in the same position for a long time without a break causing muscle pain. This develops 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 in a flexed position which results in lower back pain. Therefore, our company intends to make things easier for riders.
Pluto’s solution to the problem stated above is our main competitive advantages that we intend to penetrate the market with it. We shall use the sensory device to notify the riders when to change their position a bit to allow them not to experience lower back pain. The proprietary “sensory device” will be bike peddles, and it will provide positional awareness to the riders. Thus, at some point, after the rider had travelled for five miles he or she gets notification from the sensory device to change his or her position. Therefore, the bicycles will allow flexibility which not common with the bicycles in the current market. Also, the advanced technological bicycle will be manufactured with Heart Rate Monitor Device. When riders are cycling the body temperatures rise, which then make blood pressure to increase which can cause heart problem. Pluto intends to make it possible for the riders to have heart rate monitor to ensure that their health is intact while riding. The Heart rate monitor devices measure the rate of the heartbeat of the rider. The device is essential since it ensures that riders know that there are in good health before, during and after racing.
Pluto will incorporate GPS Feature on the bike we produce. Normally riders go to ride places which they are not familiar with. Thus installation of the GPS feature will help the rider to know where there and where they want to go. The GPS feature will give the rider’s direction. Also, the GPS feature will help the riders from getting lost.
Pluto Innovative and proprietary automatic, seat height, will be flexible and it will set itself depending on the weight and height of the rider. Seat Height of the Pluto bikes will ensure that it eliminates the lower back pain problem completely. Also, Seat Angle will ensure that cyclists are in right positions and it allows positional change to ensure that riders are not that much exhausted compared to the normal bikes. Due to comfort and flexibility of the bike the riders will be able to burn up 75calories per mile. Our products ensure that it reduces the lower back pains by 70% and offer flexible seats which not to too long.
The research has shown there is steady growth in the people commuting using bikes. The overall growth of the bike commuting is recorded as: there is an increase in growth of commuters who not friendly with cycling by 31% in the United States. Also, all over the United States people commuting with bicycles have increased by 62% and people friendly with a bicycle has increased by 105%. Thus, the increase in people using bicycles implies there is the gap in the market which needs to be filled. Also, the research has different states has different consumption of the bikes. There is an increase in the market for bikes and use of bicycles in Washington DC by 498% while a place likes Austin Texas the people commuting with bikes has increased by 77%.
The market for a bicycle is available in the United States. Therefore, entry for the modernized and technological advanced bicycles will be accepted in the market. Across the global bikes, usage has increased tremendously in the market in due to 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 competitive advantages of the health-oriented bikes will offer different opportunities for our company products. Moreover, our bikes intend to offer a solution and improve the bikes operate 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 of opportunity since the demand for the bikes will increase; thus, our company will feel the gap on the market. There is already a ready market for the bikes in the market. Therefore, the time for market entry is perfect and helps the company to gain market share as well as increase its sales. Thus, the increasing community of the bike users offers the company perfect opportunity.
Pluto’s business model is to manufacturing within the company and partner with an established electrical manufacturer, bike manufacturer and electrical retailers to ensure smooth distribution of the sales in the market. Our model will focus on key activities which include hardware design, marketing, maintenance and upgrade. Our value proposition will be based on the health issues by reducing risk and promoting health, offer comfortable experiences. Our products will help in ensuring bike community are happy, offer a product to mass market, racing riders and trainers. We intend to have the best customer services which help in creating customer relations.
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 customers’ based business. We intend to achieve this by offering and providing the highest quality bike. We also improve our service and all aspects of the business in order to have long-term success in the business to 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.
Pluto’s bike enables riders to change position while cycling. Thus, at some point, after the rider have gone for five miles he or she gets notification from the sensory device to change his or her position. The bikes will allow flexibility which not common with the bicycles in the current market. Also, the advanced technological bikes will incorporate Heart Rate Monitor Device into its system. When riders are cycling the body temperatures rise, which then make blood pressure to increase which can cause heart problem. Pluto intends to make it possible for the riders to have heart rate monitor to ensure that their health is intact while riding. The Heart rate monitor devices measure the rate of the heartbeat of the rider. The device is essential since it ensures that riders know that there are in good health before, during and after racing. Pluto will incorporate GPS Feature on the bike we produce. Normally riders go to ride places which they are not familiar with. Thus installation of the GPS feature will help the rider to know where there and where they want to go. The GPS feature will give the direction of the rider. Also, the GPS feature will help the riders from getting lost.
Pluto Innovative and proprietary automatic, seat height, will be flexible and it will set itself depending on the weight and height of the rider. Seat Height of the Pluto bikes will ensure that it eliminates the lower back pain problem completely. Also, Seat Angle will ensure that cyclists are in right positions and it allows positional change to ensure that riders are not that much exhausted compared to the normal bikes. Due to comfort and flexibility of the bike the riders will be able to burn up 75calories per mile. Our products ensure that it reduces the lower back pains by 70% and offer flexible seats which not to too long. Our product is customer centered and looks the bikers’ health and postures. Thus, it offers more benefits to our clients.
The company’s product will benefit riders on different fronts. Our product intends to help the current bikers to have bikes that are comfortable. Also, our bikes in cases of fall, sensors will help to reduce the impact of cyclists fall. Also, our product is designed to monitor the posture and health of the bikers. The GPS ensures the security of the Bike. The bike sensors are accurate, which protects the cyclist.
Engineer Phillips, he is the brain behind this project and is the inventor of the underlying technology. Our technology is new and it for the first is being applied on the bikes. The seat posture and flexibility, and the heart rate monitor sensor are discoveries that 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 of the invention until the end entire term of the patent expires. Thus the requirement for the invention to be patented 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 statutory classified as matter-processes or machine or the composition of the matter. Thus for the product to be patented, it must follow at least one of the statutory classification. Our technology qualifies for patent application.
We have determined how the technology is going to fit bike system. Posture is the minimum viable product; thus, seat angles and heights are the main features of the bikes. Also, to track performance measure the vital sign, speed and GPS navigation technology will help in ensuring that riders are aware of their cycling conditions. Pluto will incorporate GPS Feature on the bike we produce. Normally riders go to ride places which they are not familiar with. Thus installation of the GPS feature will help the rider to know where there 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 there are in good health before, during and after racing. Thus, the earpiece of the device will put on the rider’s helmet.
We have identified our target market for our products and we have classified the market as follows:
- Recreational cyclists
- People going through physical therapy
- Professional teams
Recreational cyclists are the victims of the current bikes in the market since 50% 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, the recreational cyclists are eager thy new bike that will improve their posture and that has health rate monitor as well as GPS device.
Our product is centered on bikers’ posture and health; thus, it offers a perfect solution to people going physical therapy. People are improving their physical strengths the bike offers health devices and posture that helps them achieve their objectives.
Our product features are perfect for the professional cyclists. The posture and other technological devices in our bike will help professional bike racers to compete effectively and efficiently. Therefore, professional cyclists also are our target market. Also, the bike enables the trainers to train effectively.
Our main market is commuters’ consumers. The research has shown that commuter cyclists are increasing every day. Thus, our product features are unique in the market due to its unique features. We intend to market and advertise our product to reach to commuter market.
Interviews & Results
How hard is it to figure out the cause of back pain?
Approximately 66% of the respond acknowledged that it is very hard to know the cause of the lower back pain, while the remaining respondents offered different opinion as indicated on 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 going to use this service?
How likely are you going to recommend this service to other clubs?
Would you be willing to pay a little more for a solution to this problem?
From the research, it is clear that our product is destined for success. Consumers are ready for a new product which values them due to the product health stand and ability to show it’s consumer-centered. Thus, the consumer has a negative attitude toward the existing substitute products in the market. The respondent associated the problem they face while riding the bikes to current bikes in that market. Our product will address the issues associated with bikes that are in market.
Sales Strategy & Promotion
Our company will adopt different strategies to promote and advertise Bike to the market. Our objective is to gain market share and create brand loyalty among costumers. First, we will use break-even pricing strategy to penetrate the market. By using this pricing strategy, we low the cost of our product to attract more customers and as well be able to reduce competition from the market hence earns more clients in short period. Also, we will make sure that our product is different from that of the existing customers. Thus, 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 the employees and customer relationship is better to help in attracting more clients and maintaining the existing clients. Furthermore, we will base our business on an innovative background thus creating room for continues improvement hence help in keeping 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 cost effective method. Also, social media offers a better platform to market our product to the cyclist. 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 on every weekend, i.e. Saturday and Sunday and public holidays. The location of the event is communicated by management three weeks prior to events. Also, the events are advertised on local dailies, TV shows and radio station shows. Moreover, the company offers services every day in the morning and evening apart from the weekend. These events will us market our product to the public.