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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

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Executive Summary

1.Business Overview

1.1 Business Name and Logo

The business name is Coco Colour. This name was chosen because it relates to the function of the business which is based around colour. Coco Colour is also very easy to remember as it is not very long and the flows well. The logo for Coco colour is a tree with different colored leaves and a colored trunk. It encapsulates the colour aspect as well as related to growth hence the tree. To view Logo please refer to Appendix 1 on page !

1.2 Slogan

The business slogan is ‘be inspired.' This was chosen because is simple yet memorable, much like the name of the business and encapsulates what the business aims to do; inspire efficient studying.

1.2 Prime Function

This business is based on the scientific theory that color can affect learning and that certain colors simulate certain reactions/functions such as focus (red), creativity (blue) and memory (orange). The business with incorporate these colors' and their effects into stationary and study products to benefit the customers note taking or studying. This business aims to share this idea with people who aim to be efficient studiers. This is also a compulsory commodity for students which will aid in the businesses success.

Trading Hours: (Same as Macquarie Shopping Centre – its location)

Thursday

9:30am–9pm

Friday

9:30am–6pm

Saturday

9am–6pm

Sunday

10am–6pm

Monday

(Queen's Birthday)

9:30am–6pm

Hours might differ

Tuesday

9:30am–6pm

Wednesday

9:30am–6pm

1.3 Business mission

Coco Colour mission is to inspire efficient study and note taking through use of colour organized stationary which looks great and functions well, being of high quality.

1.4 Business Goals

The business has the following goals:

• To gain and maintain a competitive advantage over competition businesses (Smiggle, Muji)

• To provide an excellent quality customer service and product for customers

• To gain a reasonable profit

• To expand the business across Australia

• To become involved in Macquarie events such as fairs

• To donate to Save the children monthly. This charity provides education to disadvantaged children around the world which is important to the business values of inspiring education.

1.5 Location

The business will be located in Macquarie Shopping Centre. Many students and potential customers, of many different demography's, often go to Westfield as there is a variety of shops, this will allow the store to be more accessible to them which is needed as this business has a mass market.

1.6 Legal Structure

CoCo Colour will begin as a Sole Trader of small size. This is because the business would get the benefits of:

• The owner being in sole control, allowing the manager to be fully independent

• It is the simplest and cheapest to establish

• The owner will be able to take all profits and has access to all taxable losses

• There will be a higher degree of speed and flexibility to change

• The is more privacy.

1.7 Goods

Coco Colour will sell two different types of products:

1. Stationery:

• Pens

• Pencil/Pacer

• Highlighters

2. Books:

• Notebooks

• Diaries

These products will be assorted into colour categories and when purchasing a particular coloured item a slip of paper will be placed into purchasing bag explaining the theory of the effect of the colour/coloured items the customer has purchased.

These products will be sold fitting into three different price ranges. All items under stationary will be marketed for $3.50. All items under books will be marketed for $8.50.

1.8 The Production Process

Inputs

Transformation

Outputs

Machinery and Equipment:

• Disk rulling machine with motor

• Paper cutting machine with motor

• Stitching machine with motor 0.5

• Perforating machine - manual

• Press - manual

Raw Material:

• White sheets

• Grey board sheets

• Printing ink

• level cover sheets

• gum

• binding cloth thread

• stitching ware

• Plastic

• Ink cartilages

Labor:

• Employees who package and ship items

Time

• Employees must start machines and watch over processing of items

• Machines process items systematically

• Items are packaged and shipped

• Quality control

• Notebook

• Diary

• Pens

• Pencils

• Highlighters

1.9 Quality Management

Because there is so much product being made, instead of checking every single item, line inspectors will take random samples of pen pieces at certain time intervals and check to ensure that they meet set specifications for size, shape, and consistency. The primary testing method is visual inspection, although more tests will also be conducted. Various types of measuring equipment are available. Length measurements are made with a Vernier caliper, a micrometer, or a microscope. Each of these differ in accuracy and application. To test the condition of surface coatings, an optical flat or surface gauge may be used.

1.9.1 Quality Assurance

Our business follows the following International standard to ensure quality:

• ISO/FDIS 9000:2000 - Quality management systems – Fundamentals and vocabulary

• ISO/FDIS 9001:2000 - Quality management systems – Requirements

• ISO/FDIS 9004:2000 – Guidelines for performance improvement

2. Marketing

2.1 Target market

Coco colour's target market is aimed at male and female students aged from 5 years old and above. The business is also a mass market.

2.2 Product

Books:

Quality:

• High quality, follows through with constant quality management strategies.

Design:

• Simple design, incorporates a balance of colour and white.

• Lightweight

Name:

• Name is simple, specific to what it is i.e. notebook and diary

Warranty and guarantee:

• No warrantee or guarantee as the products are cheap, small items which are not usually bought in large stock.

Packaging:

• Purchased products come in a paper bag with Coco Colour's logo printed in black on it

• Paper bag is recyclable which shows it is a socially responsible company

Labelling:

• At the bottom of every note book there will be a white print of the Coco Colour's logo printed

Exclusive features:

• Pages and covers of notebooks and diaries will be colour specific to the ranges of colours we provide.

Stationery:

Quality:

• High quality, follows through with constant quality management strategies.

Design:

• Simple design, incorporates a balance of colour and white.

• Lightweight

• Colour specific

Name:

• Name is simple, specific to what it is i.e. highlighter, pencil, pen

Warranty and guarantee:

• No warrantee or guarantee as the products are cheap, small items which are not usually bought in large stock.

Packaging:

• Purchased products come in a paper bag with Coco Colour's logo printed in black on it

• Paper bag is recyclable which shows it is a socially responsible company

Labelling:

• At the top of every stationery item there will be a white print of the Coco Colour's logo printed

Exclusive features:

• All stationary will be colour specific to the ranges of colours we provide.

• Every purchase will include a paper slip explaining the effect of the colour the customer

2.3 Place

Coco Colour will be in Macquarie Centre as previously stated.

The products will be sold in the process of producer to wholesaler to retailer to customer. This is a safe method as it is the most common method used for the distribution of consumer goods.

The products will be manufactured from China. This allows for lower costs at higher output in quicker amounts of time

The manufacturer that will be used is Wenzhou Success Group Gift & Premium Co. Ltd who:

• Have 23 years' industry experience and have over 2 million pieces exported yearly

• Can provide samples based on CoCo Colour's designs.

• Set a price is based on style, with simple designs done for free.

• They do not cover the shipping costs.

2.4 Promotion

Coco Colour will use Sales promotion: this refers to activities or materials used by the business to attract interest and support for the good or service. For stationary products, there will be “buy 2 get 1 free” sales on Tuesdays which will be marketed as “Cheaper Tuesday”. This form of Advertising is low cost which will positively impact the business

Coco Colour will also use Advertising as a form of promotion: this will include print and electronic mass media. As a form of print advertising Coco Colour will hand out pamphlets with pricing and colour theory information and as form of electronic mass media Coco Colour will have a website will the same information as the pamphlet but in greater depth, highlighting cheap deals on cheaper Tuesday. This form of Advertising is also low cost which will positively impact the business

2.5 Price

Coco Colours price will be determined using the Competition-based method: choosing a price that is either below, equal to or above that of the competitors.

Stationery pricing:

Coco Colours main competitors include Smiggle and Muji. Smiggle's stationary's mode cost is $5.95 per captia where as Muji's stationary's mode cost is $2.50 per captia for an extremely basic looking and functioning product. This gave Coco Colour a more balanced cost of $3.50 per capita on Stationary products.

Note book Pricing:

Smiggle's note book's mode cost is $22 per captia where as Muji's note book's mode cost is $5.50 per capita for an extremely basic looking and functioning product. This gave Coco colours a balanced cost of $8.50 per capita on Notebook products.

2.6 SWOT Analysis

Strengths

• Stationery is a mass market, meaning many people will immediately be interested in buying those products

• Products differ from other stationery products

• Price to ship and manufacture products from china is much lower than the selling price of the product.

Weaknesses

• There are many companies who sell stationery so there will be competition

• The manager will need to put a lot of time into running the shop and ensuring accounting, human resources and legal registration is settled

Opportunities

• To provide a new, more colorful and inspired perspective on study material

Threats

• Competition is a threat because there are so many other

3. Finance

3.1 Establishment Costs

Establishment costs include:

Item

Cost

Funds

Opening stock of products

$3,375

Bank loan

Store equipment

$300

Bank Loan

Colour cards

$100

Bank loan

The businesses initial source of finance will be from a Commonwealth Bank business loan.

3.2 Sales Forecast – balance sheet

To view sales forecast table please refer to Appendix 3 on page 11.

3.3 Cash Flow

To view cash flow chart please refer to Appendix 4 on page 12.

3.4 Break Even Analysis

To view break even analysis, please refer to Appendix 5 on page 13.

4. Human Resources

4.1 Staff Required

CoCo Colour will only need to employ one member to staff and to work fulltime during weekdays and on weekends the manager will staff at the shop to save money efficiently. The staff member will be paid an average $5302 per week.

CoCo Colour will not need to employ production staff as the manufacturer, Wenzhou Success Group Gift & Premium Co. Ltd, will cover this.

4.2 Staff Qualification and training

Management:

There will only be one manager who is also the owner. The skill and knowledge required by management will need to be extensive as the role as a sole trader requires them to manage most areas of the business, including finance, human resources, management and ordering of product.

Staff:

Staff training for the full-time worker will only be minimum as the staff simply must work at the register and unpack and stack product onto the shelves. This can easily be taught to staff by the manager. For this position, there are no qualifications needed.

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