Tall Drink of Water is a business that is started by Tonya McClendon. She has designed a new pet feeder module. This company promotes pet safety and health. They use their retained profits for developing more new products. The main objectives of this business is to be able to survive in the market for its initial years, as it is a newly formed business.
The name of the business is Tall Drink of Water.
It is situated in New York (headquarters are at New York).
There are many start up costs, such as:
? the start-up capital needed to finance the business. 52% of the total amount of start-up capital will go for research and development (R&D), 19% will go to brand development, 10% will go to administrative costs, and 19% will go to interior improvements and software installments.
? any loans taken from banks/friends and family
? costs for purchasing machinery to build the pet feeder
? rent for the premise of which the business will be set up
? advertising costs.
The owner is Tonya McClendon. She has a strong customer service and sales foundation and is comfortable working in different environments. She has a wide range of skills and experience to launch the company from start-up to a successful business.
Type of business organization: Sole trader
The goods that are being offered by the company are pet feeders.
Customers are likely to purchase these pet feeders as most of them have pets in their homes. Also, it is more convenient for them as they dont have to do much work to feed their pets. They can just press a button on the pet feeder, and it will do all the work by itself to feed them. These features of the product will attract them to purchase it. Since it is a starting business, the price of the product would be low, which would attract more customers to purchase it. Tall Drink of Water would use penetration pricing to price their products as it is a new business in the market. Once they establish better customer relationships, they can change to competitive pricing and price the pet feeders at similar levels to their competitors. Then, they can get more revenue, which leads to more profit for the business to expand more in the future.
The equipment needed for production is a wide range of technology to build the pet feeder module. The business would be in the secondary sector as a factory is needed for the production of the pet feeder. It is also in the tertiary sector as it acts as a service to customers to feed their pets.
The business will use the Just-In-Time (JIT) inventory control method, which is when they sell their products immediately once the production process is over. This will reduce inventory costs to the business as they dont have to store any inventory.
The business has objectives and aims to increase their sales by at least 10% for the first three years of operation, and to reach sales of 250,000 dollars by the end of the third year of operation.
They expect to get a lot of customers as they feel that many people in New York have pets, and so will need pet feeders to feed them.
There are four target market segments that were selected by the business for this product, which are design professionals, pet care professionals, government agencies, and individual consumers.
? Design professionals:
They were selected as the target market as it would help the business. If it employed such workers, then the business would be more efficient and there would be lesser wasted resources.
? Pet care professionals:
They recognize the health benefits of these pet feeders to the animals. They recognize the benefits of flowing water over stagnant water, and so will offer the feeders to the customers. Customers will more likely purchase it when they realize that it benefits the health of their pets. It will be a form of advertisement as more customers will be aware of the product. It will create brand awareness.
? Government agencies:
Police and fire departments use animals (mostly dogs) as service animals. Instead of having one dish used by hundreds of dogs, there will be enough supply of food/water for every dog with this pet feeder module as it is high-tech.
? Individual consumers:
Research indicates that most people in New York own pets, and so this product will benefit them. Since most people own pets, the business is likely to gain more customers if they target the right segment of the market.
At first, the product will be at the introduction stage of the products lifecycle. This is when the product (the pet feeder module) is introduced to the market. The companys aim is to keep it at the maturity stage for as long as possible at this stage, as it is the most profitable one in the products lifecycle. To do this, the business will conduct extension strategies, such as:
? Finding new markets for the product the business can look for foreign markets to enter into to increase awareness for their brand and to gain more customers from around the globe. This will help them gain more revenue and profit to aid in expansion of the business.
? Finding new uses for the product the research and development team (R&D) may conduct more research as to how the product can be used in other ways instead of people just being able to feed their pets. For example, the pet feeder can also be used to train pets to feed themselves whenever the owner isnt at home.
? Adapting the product or the packaging to entice customers the business can add more features to the product to attract more customers to purchase it. They can also change the packaging and make it fancier to attract more customers.
? Increased advertising and other promotional activities the business can look for other ways to promote their products by conducting different advertisements. This will also help to remind the existing market that the product is still available for purchasing.