Executive summary
Spree Watches Company develops and designs watches that are related to the current fashion in the market. This marketing plan demonstrates the marketing segment as well as the strategies of the company. Moreover, it shows the strategies in place that the company employs to get the clients and create a solid income stream. It is important to note that the company is not a merely watch company but it is unique and focus on the creation of watches considering the fashion which gives the company a twist advantage over the competitors. Moreover, the company gives the clients a new outlook of their desired watches which ensures the retention of the clients.
The company is supposed to fund the development of the watches by offering consulting services to create a similar watches which would be used by the clients to receive calls and messages also known as the smartwatches. Furthermore, the consulting assignments would come from the advertising sponsorship relationships that the company is supposed to establish with the partners. Overall, within the initial three years of operation, the company expect consulting to constitute a huge portion of the needed revenue stream.
SPREE WATCH COMPANY
Description of the Company
As the name advocates, Spree Watch was generated out of the passion, love, and dedication of the owner for the watches for the developing demand and fashions in the market. The goals and objective of the company is to offer the highest and quality services for the people who love watches in Ghana. The firm’s initial investment is $40,000, with the annual target earnings equivalent to $ 50,000. Further, the organization will continuously innovate and adapt to the new demands from the customers in the area. Other than servicing the people within the area, Spree Watches has the intention of opening its branches to other cities and towns to ensure that it widens the range of its clients before venturing to other countries. As of now, the company will concentrate on the Spree Watches outlet as the platform where the residents can get the quality services the customer requirements. Moreover, the outlet will provide the maximum cost-effective ways in order to promote the products of the company as the customers get to try these services while still using and paying for the same. The Spree Watches Company will customize its services to meet all the interest and demands of the clients in the region. The targeted market of the company mostly includes enthusiastic internet users who continuously utilize the internet to communicate with friends and family.
Objectives
The goals of the company within the first year of operations include;
- To sustain a 60% gross margin.
- To break even within the fifth month of its operation.
- To merge the leading outlet for Watches in the region.
Mission
The primary mission of the organization is to offer the greatest quality services in a unique as well as the conducive environment. Spree Watches Company aims to make sure that all the clients have the best quality watches.
Guiding Principles
One of the most principles that the company should sustain is being mindful of the customers and the employees on the company. By the societal values, the company is expected to treat both the workers and the clients in a manner that ensures customer loyalty and employee satisfaction. Further, the company will constantly show a feeling of gratitude for the employees and the customers because of their dedicated input, time, and labor they put in place for the success of the Spree Watches Company. Overall, the Spree Watches Company will ensure that they offer the warm as well as friendly services which are expected from the Spree, Watches Company, good customer and management relationship that will make the clients be satisfied with the services and make them loyal to the Spree Watches Company.
Keys to Success
The primary success factor that the Spree Watches Company promotes is repeated business. The company ensures that all the customers who come in to purchase the products are satisfied with all the services. As a result, the clients will find it easier to return and buy from the company. Moreover, when the customers are satisfied with the services, they will use word of mouth to recommend the company to other people who will make the firm famous and is a vital strategy of marketing the services and products provided in the firm. The hiring of the right people with the right skills and experiences in dealing with the firm and managing the company as a whole is essential. Hence, with the right people in the management sector, customer relationships with the company will be enhanced. Moreover, employing the right individuals who know how to deal with the far products.
The location of the Spree Watches Company is another key factor in its success. Before setting up the firm and the management company, the management should identify the main market since, for the company to succeed, being closer to the market is the primary factor. Therefore, recognizing who the company’s customers are. Finally, the variety of products offered on the Spree Watches Company. People believe that it is easier to purchase all they require as a whole and not in small pieces. Thus, the Spree Watches Company with all the products that the customers require, will naturally have a range of customers. Further, reasonable prices should be provided, not just the company concentrating on making a profit but also ensuring that the customers have the products at a reasonable price. Besides understanding the customers and analyzing their income strategy will help in formulating the prices for the products else, the Spree Watches Company will not have the number of clients as expected.
Industry Analysis and Trends
The analysis depicts that the company has, over the years, experienced tremendous development, specifically regarding the services provided by the Spree Watches Company in the region. Further, the demand from the clients concerning the products has increased with the clients learning the special products offered by the company. The latest research conducted in Ghana shows that there is an increase of 50% of the people living in Ghana have developed the growing trend of using smartwatches in crowded places to receive calls and messages. As a result, there is a growing demand for people requiring quality smart watches hence making Spree Watches Company relevant in the market. The closest rival of Spree Watches Company is the Alpina Watches Company which has been growing in at a rate of 3% since the year 2014. However, the difference between the companies in the market presents a great potential available in the market.
The current trend in Ghana indicates that the highest opportunity within the industry depends on the provision of specialty watches hence, explaining why the Spree Watches Company mainly focuses on particular products. Within the area, 22% of the clients at the outlet are of the age between 18-24 years, which is the prime age of fashion; 65% of these people have an income of $120,000; hence, doing the service at Spree Watches Company within reach. Moreover, the high demand for the services and products offered at Spree Watches Company makes it relevant and competitive in the market.
Target Market
The Spree Watches Company targets unique and specific customers, especially the professionals in the market. The organization appreciates the fact that over the year of establishment, the company has been able to realize most of the objectives and goals it had formulated. The most significant thing is that the individuals getting the services within Ghana are satisfied with both the products and employees’ relations. Further, Spree Watches Company has been able to identify its primary target in the market, and this knowledge has been relevant in the strategy and development of the products obtained. As stated earlier, the central target market of the company mainly includes professional who prefers the latest fashion in the industry.
Moreover, the company targets customers who have a great preference for an extra and specific feature within the industry. Therefore, the company has both pre and postpaid services to facilitate the smooth operation of the company. On the other hand, Spree Watches Company believes its target market to broaden in the future as the clients are becoming more aware of the services and products via the internet and the company website. Further, the company ensures that they have an effective and sustainable relationship with its customers. As a result, communication has been a core ingredient in ensuring the success of the company. The organization has implemented website pages and integrated the website with the communication system in the company to ensure that the company is continuously in touch with the clients. Also, the feedback that the company obtains are used to ensure that all the concerns are addressed and that all the clients are satisfied with the products they offer. Moreover, the company has implemented house delivery. This ensures that the clients receive their products without much effort.
Competition
A number of the leading players within the industry, such as Alpina Watches Company, pose the main competition in the market. For instance, the Alpina Watches Company operates within more than 7000 locations in Ghana. In this industry, the competition is as a result of the client’s preferences, tastes, and income. Therefore, the company will strive to produce the best products to ensure that the company remains relevant and achieves a sustainable competitive edge. It is more important to note that, the profitability of the companies in this industry relies on their ability to provide high-quality products, secure a prime location to set their company as well as drive store traffic.
Large companies have the benefit of small organizations, especially those that are start-ups such as Spree Watches Company, since having adequate sources of funds to market and finance their processes. Consequently, Spree Watches Company will have to compete effectively by offering specialized services, pursuing the native market, plus providing memorable client experience. This industry over the year has been increasing in Ghana with the increase of professionals and with the development of new fashions in the market. Thus, the leading organizations in this industry generate above 80% of the total summation of their sales in the market.
Therefore, Spree Watches Company anticipates gaining profit from the industry because of numerous factors. In the beginning, the company has witnessed continuous growth in disposable profits as well as client confidence within the economy of the country. Presently, consumers are ready to spend more cash in the shop to attain the best products from the company. Despite the developing demands, the company expects intense competition is anticipated in the industry because of the developing number of players pursuing to benefit from the growth in the size of the market available. Therefore, Spree Watches Company will make sure that it avails of innovative services that are exceptionally priced. Besides, the organization will have a variety of services and products satisfying the requirements of the health-conscious items. Though, Spree Watches Company firm still expects tough competition from the industry heavyweights like Alpina Watches Company that have a market presence within the region.
Strategic Position and Risk Assessment
The Spree Watches Company will apply an approach of the total market service that entails the provision of unique services and products, attracting the complete spectrum in the industry as well as providing a conducive environment for all the customers. Further, the firm aims to provide a memorable experience, not just sell their product. Also, the firm intends to be part and parcel of the community of their clients. This strategy, therefore, presumes that every person is a potential customer and ensures that the market experiences tremendous development in the future. Also, it suggests that the best method to drive sales is by selling to the soft needs of the clients.
Corporate Strategy
The company uses competitive pricing in that the company sets the prices relevant to that of the rival companies to make sure that it sustains the high profitability degree for sustainability and development. Nevertheless, with the aim of distinguishing itself from the other competing companies, the Spree Watches Company will have specific promotions and discounts that are unique to ensure the loyalty of the customers. Moreover, it will engage in website and television advertisements of all the services and products that they provide to increase the awareness of the company.
Distribution Channels
The company will market its products through franchising, in which the company will work with some other watch outlets in the region. Under the agreement, the outlets will submit approximately of 20% of the sales benefits annually, which will, therefore, sum up to the company’s 40% of the expected gross annual income. Further, the Spree Watches Company firm will promote its products through online platforms and advertisements to reach multiple customers in the region, specifically the high-class individuals within the community. The firm has entered into an annual program to ensure that its products are constantly advertised in televisions and websites to promote awareness of the products and services the company produces.
Spree Watches Company will sell its products via online platforms such as Facebook and Twitter, which is expected to raise the sales of the company by 30%. Thus, through the website of the company and social media, the clients will place their orders for these services to be delivered at their places of residence. Furthermore, Spree Watches Company will partner with other distributors who operate in the area to make it possible for sales and targeted income. Hence, the clients will have the appropriate opportunity to order from their cell phones and book the services they require at a particular time. The sales approaches are expected to increase the sales of the organization because of the timely delivery of the products which will, in turn, boost the satisfaction of the clients.
Risk Analysis
There are some risks that the company has to take into consideration to succeed and to be profitable. The Spree Watches Company faces the risk of the government of Ghana imposing certain restrictions which require complying with such as specific production standards which may, in turn, increase the product cost. This may affect the price and the profitability of the company.
Marketing Strategy
The Spree Watches Company has a diffident marketing budget. Consequently, the firm applies the innovative strategy in order to reach the market that the company targets. Moreover, the aim of the company is to spend no more than $500 in the sector of marketing a month.
Ethics and Social Responsibility Plan
By definition, business ethics is the moral recommendation that the organization ought to follow while conducting its activities. Normally, these ethics are based on the notions of right, wrong, or considered fair, and it concerns the suppliers, employees, customers and stakeholders in the business. Therefore, it is imperative for the Spree Watches Company conduct all business operations ethically to pass their beliefs, morals, and values down to the customers and workers. Similarly, social responsibility is equally vital in business ethics since it regards caring for the organization’s employees, being responsible socially and environmentally, as well as ensuring that they give back to society.
Creating jobs
The main social responsibility of the company is to create job opportunities, just like any other company within the region. All the societies hope that when an organization is established, it will be capable of generating jobs for all the local people living in the area. Therefore, Spree Watches Company like any other company creates jobs for both the young and old individuals in the region where the outlet is established. Further, the department of human resources is committed to the honesty as well as fairness of the workers. Moreover, the human resource sector encourages for employees to be treated with a lot of respect, honesty, and fairness while at the workplace. Preferences of the employees and customers with the management and fellow customers are discouraged as it discourages the workers who are working hard, also may create an issue in the workplace. For the employees to feel appreciated for all the work they do, then they should be treated with both honesty and fairness in the company.
Also, hiring the right employees and being fail while hiring is an issue to be considered. The Spree Watches Company is always ethical when hiring its employees and while dealing with both customers and workers within the company. At the time of hiring, all the individuals that have applied for the work are given a fair and equal opportunity to join the workforce of the company. Moreover, the organization encourages all the candidates applying for a position in the firm from all diversity of people, and all are treated without discrimination at the time of hiring. Since having a varied workforce will make the company provide opportunities to all the people who feel disfranchised.
Also, Spree Watches Company will, over the years, embark on partnerships with the local facilities like a football team or a movie publisher to provide both part-time as well as full-time partners the chance to assess their services, however the time limits. Thus, this will assist in empowering people who are employed in Spree Watches Company as in the course of interaction with the customers; they will be able to advance their careers and get promotions in case of excellent work done in the company. Also, the workers in the company will be able to learn new tricks of the business through the program.
SWOT Analysis
Strengths
One of the strengths of the company is its location. The firm is located in an easy-access area. Also, the company has generated billboards that point to the direction where the firm is located in case a client did not get the direction guide on the website. Moreover, the Spree Watches Company has come up with exceptional employees with the right attitude for business. The company always retains its workers through the best salary compared to other Spree Watches Companies, work satisfaction, and the best flexible working hours on the Spree Watches Company. As a result, the workers are at their best all the time and in doing their jobs. Due to the fact that the owners are agricultural and management ex-pats and with their experiences, the Spree Watches Company enjoys the already established client market as well as approved vendors for the company. The other strength that the firm has is the size of the Spree Watches Company. Because of the size of the Spree Watches Company, it is easy to manage and to ensure that it produces exceptional quality through the hand selection of the market specials compared to the large Spree Watches Company competitors. This makes sure that the Spree Watches Company has the best employees who strive to provide unsurpassed services.
Weaknesses
The main challenge the Spree Watches Company faces is recruiting as well as training the quality employees required in the industry. It is costly to support the constant training of employees on the Spree Watches Company. This somehow pulls the Spree Watches Company to the ground, however much it tries. Since the Spree Watches Company is still at the stage of development, it is hard, though necessary for the Spree Watches Company to constantly train the employees on the new market trend in order for the Spree Watches Company to remain relevant in the market.
Opportunities
The first opportunity that the Spree Watches Company has is the little barriers. It is important to note that the little barriers to entry permit for instant business opportunities. The company explores markets in Ghana.
Threats
The main threat the company faces is the government of Ghana’s mandates. These mandates include the protection of employees, safety as well as sanitation. Therefore, these will make the company spend more in ensuring that all the facilities required in the Spree Watches Company are operational. Further, if the Spree Watches Company does not run as the owners anticipate, they risk losing the capital funds they had put in to start up the business. Moreover, after the startup, there might be a problem of increased operational cost, in turn, will paralyze the effective running of the company.
Consumers are the foundation of a successful organization. Therefore, it is important for the management to work towards achieving customer satisfaction. The reason being the firm will be able to gain consumer loyalty and hence high sales volumes. However, it is imperative for the firm to place customers at the center of its objectives and strategy to realize productivity and profitability. The company should put in place a better business and marketing strategy to achieve maximum profit annually. Overall, the firm should have a well-planned scheme that will enhance market share and leadership, consumer satisfaction and retention, and organizational profitability.
The success of an organization relies on the state of the economy, especially in its unique field. Thus, the market environment comprises of many economic and human factors. The choice individual makes before buying a product influences them to buy such products. Hence, it is important to understand and identify human factors so that the firms may put in place strategies that will be productive and profitable. Consumer choice implies the customer has full and transitive preferences and chooses the products they want. In this sense, the spree watch marketing department has an interest in getting insights into how consumers make economic decisions. Additionally, consumers’ choice influences the economic prosperity of a firm. Thus important for any company to conduct better market research. This will able them to get consumers’ insight and aim to provide for their needs. The asymmetric information provides evidence that a company experiences some challenges in the market.
Products
The Spree watch firm ensures that they offer quality products and services to their consumers. As a result, they have been able to retain their consumers. Moreover, this firm offers benefits and service delivery, which is a method they use to keep their potential consumers.
Segmentation
The firm will use a differentiation strategy to compete with other firms, such as conventional firms that offer quality watches. Through adequate and effective market segmentation, this firm will offer its services to serve the people of Ghana. Thus market segmentation has enabled them attar and retain customers. As a result, they have achieved profitability band productivity in the sector.
Market concept consumer
Market consumers are the most important people in any business. The spree watch values its customers since it is the only avenue the business can thrive. Also, the firm has offered better services such as free delivery of products. Also, customers are given better services and products which have ensured their consumer loyalty and retention.
Motivation of employees
Motivation is another factor that drives the consumer in deciding on what products to purchase or not. Motivation comes from within and it influences greatly the psychology of consumers on what products to purchase. Each brand has a motivational factor that influences the consumers to like it. Some brands are deemed to be durable and not expensive. This factor can motivate the consumer to go for this brand. Some, on the other hand, are expensive and less durable. This takes away the motivation of the consumers to purchase the brand. Therefore if the consumers are motivated by a particular brand, they would look for it and purchase it. But when they are not motivated by that brand, they would not choose to purchase it even if you place the product in the consumer’s evoked set. Many consumers classify brands based on their need for use and their prices. Some brands are needed for consumption, and construction, among other needs. Therefore if the consumers were planning to buy the brand for consumption for dinner, the consumer would not buy the products for lunch that time, however much it falls within their evoked set. This is because the time in which the product is needed varies. Therefore the consumers will only go for the products according to the classification of their needs.
Getting consumer insight
Besides, the financial status of the consumer determines what they buy. Some brands are expensive and they fall out of the consumer’s choice. Consumers have a set of mind on a particular amount of money to be used in purchasing some products. If such products still go at higher prices, then the consumers would not consider buying them even if they are placed within the consumer’s evoked set. A consumer’s financial status is vital in deciding on what to buy, and it influences a lot in their buying processes. If the products still seem to be stagnated in their high prices, then the consumers would not choose between purchasing them. Finally, prior experience may influence the consumers buying decisions. For instance, if such products gave a bad experience for the consumers, they do not consider buying it however much it is within the consumer’s evoked set.
One of the strategies that marketers can use is to find the consumer’s insights which are vital in building a good relationship with them. Finding consumers’ insights also helps in finding consumers’ needs, wishes, likes, and dislikes to solve them. This would change the perception of the consumer and their evoked set. Marketers should produce quality and less expensive products to attract consumers so that they can establish their brand. While marketing these brands, they should use convincing language and pictures illustrating why that brand is better than others. Any company that wishes to market its brands should work out efficient strategic measures to win the heart of consumers. There are consumers who have evoked consumer sets. Such consumers have their reason why they do not wish to purchase a particular product. Finding consumers’ insight before marketing is important because it helps in the satisfaction of the consumers.
Most thriving firms evolve with the demand of their consumers. Customers from the major center of any business. Without customers, there is no successful business. It is for this reason recognizing and making one’s customers comfortable is the objective of most organizations. Companies such as Apple appreciate their customers using various ways. One of the ways that Apple Company uses to get to customers’ countries is by identifying customers’ insights and tastes. The company has also opened up stores in several countries so that the consumer can readily get the products they want available. In addition to the products that the business sells, the stores sell other related products such as digital cameras, software titles, and camcorders. Some companies take pride in forming and building attractive and pleasing experiences with their consumers with products that are stylish. Recently, the company released new products that are less expensive.
The company is trying to capture the most market share among its customers substantially. Spree Watches will be committed to introducing better personal computing services to its customers by producing innovative hardware and software as well as internet offerings. The company rolls programs that our services based on the comments, complaints, band questions they get from customers. The structure of the industry within its external factors and attractiveness is purely based on the purpose of consumer satisfaction as well as familiar customer elements of the business. Additionally, the corporation’s various related software, peripherals, networking solutions, services as well as digital applications and content. Overall, the business atmosphere has become extremely competitive, and hence it is crucial for any company gaining entry into the market to develop and implement a strategic plan on the market, especially concerning customer needs. By definition, the price elasticity of demand can be described as a measure of the association between a transformation in quantity needed for certain products and an adjustment in its price. Therefore, an effective company’s cooperation produces new goods and a steady supply of their products. The products are less expensive as well as customer friendly. Factors that influence productivity Growth can be said to be the appropriate internal progress of a business. Notably, active firms Company has made tremendous steps in trying various strategies to enter new. Also, the company should ensure job satisfaction for its employees.
Financial analysis
Financial Summary
The Spree Watches Company is seeking a loan of the amount $10,000 plus the $15,000 being invested by the owners of the business.
The table below gives a summary of the main facets of the projected organization’s performance.
| 2017 | 2018 | |
| Sales Revenue | $200,000 | $250,000 |
| The Gross Profit | $170,000 | $220,000 |
| Pre-tax Profit | $200,000 | $250,000 |
| The Operating Cash Flow | $1500,000 | $200,000 |
| Debt Service | $10,000 | $10,000 |
| Debt Service Coverage | $10,000 | $10,000 |
The highlights of the financial forecasts are provided in the table below;
Summary of the cash flow and balances
| 2017 | 2018 | ||
| The Collections from Sales | $180,000 | $220,000 | |
| Payments for Spree Watches Company | $20,000 | $30,000 | |
| Overhead Expenditure | $40,000 | $40,000 | |
| Debit Service | $10,000 | $10,000 | |
| Net Operating Cash Flow | $200,000 | $250,000 | |
| Memo: Net Pre-Debt Cash Flow | $200,000 | $250,000 | |
| starting Cash Balance | $310,000 | $450,000 | |
| Net Cash Flow | $200,000 | $250,000 | |
| Capital Additions | TBD | TBD | |
| Loan Incomes | N/A | N/A | |
| Capital Procurements | TBD | TBD | |
| Other Draws | |||
| Closing Cash Balance | $170,000 | $220,000 | |
OVERHEAD EXPENSES PER YEAR
| 2017 | 2018 | |
| Overall Payroll | $130,000 | $190,000 |
| Facilities, Rent, and Fees | $5,000 | $5,000 |
| Other relevant Utilities | $2,000 | $2,000 |
| Insurance coverage | $10,000 | $10,000 |
| Advertisement and Promotions | $1,000 | $1,000 |
| Purchase of equipment | $10,000 | $10,000 |
| Maintenance and Repairs | $2,000 | $2,000 |
| Taxes from properties | $2,000 | $2,000 |
| Workplace Supplies | $500 | $500 |
| Mobile Phones | $200 | $200 |
| Internet connectivity | $100 | $100 |
| Licenses coverage plus charges | $5,000 | $5,000 |
| Emergencies/ suplimentaries | $4,000 | $4,000 |
| Total expenditure | $170,000 | $220,000 |
Conclusion
The companies which have businesses in various communities must be involved with the social responsibilities which are as a result of doing the firms in society. Therefore, the companies must exercise good cooperation with citizens. Thus, Spree Watches Company is no exception. This will assist the organization to relate well with the employees, stakeholders as well as their clients to provide quality services and products and help for the betterment of the community. Moreover, consumers’ choice influences the economic prosperity of a firm. In this sense, the upward slope informs the company that the products they sell are perfuming well in the market demand regardless of the cost of the product they are selling. Additionally, the higher wage for consumers implies they can afford higher luxury quantities. These types of goods determine how customers make their choices. Also, with the higher rate of interest for customers, there is a possibility that they can save a lot because they are likely to get high in return. Finally, it is essential for a business owner to identify a target market and consumers. By doing this, the business owner will be able to provide efficient products and services to the designated target consumers. Overall, marketing has become an essential component in organizations to achieve a competitive advantage as well as take market leadership.
APPENDICES
FINANCIAL PROJECTIONS
Uses and Sources of Finance for the Spree Watches Company
Income Statement
2017: $90,000
Jan – $1000
Feb – $1000
Mar – $5000
Apr – $10000
May -$20000
Jun – $15000
Jul – $7000
Aug – $2000
Sep – $4000
Oct – $7000
Nov – $13000
Dec – $5000
2018: $120,000
Jan – $1000
Feb – $1000
Mar – $5000
Apr – $14000
May -$30000
Jun – $15000
Jul – $7000
Aug – $2000
Sep – $4000
Oct – $16000
Nov – $20000
Dec – $5000
Cash Budget for the Spree Watches Company
2017: $250,000
Jan – $20000
Feb – $20000
Mar – $20000
Apr – $20000
May -$20000
Jun – $20000
Jul – $20000
Aug – $20000
Sep – $20000
Oct – $20000
Nov – $20000
Dec – $20000
2018: $300,000
Jan – $25000
Feb – $25000
Mar – $25000
Apr – $25000
May -$25000
Jun – $25000
Jul – $25000
Aug – $25000
Sep – $25000
Oct – $25000
Nov – $25000
Dec – $25000
