The Timberlake Company will compete with the existing companies. For instance, the company will face competition from traditional soap manufacturers.
These producers integrate pleasant scents and dyes in their soaps. These factors encourage hand and body washing compliance in the consumers. However, these soaps do not meet the specifications of the target audience. The target audience that the company is pursuing needs a chemical-free soap to curb communicable diseases.
The existing soap manufacturing companies have a large market share in commercial markets and hence have established strong brand names compared to Timberlake soap manufacturers. For instance, Zipper Corp has registered considerable sales in the recent past. This has enabled the company to acquire a relatively large market share. The other large soap manufacturers include Kimberley, Dimples, Star-soft, and Daniela, among others.
The other factor that will affect Timberlake manufacturers is the alternative hand and body washing compliance systems. Genius-HY, a hand and body washing scheme, which is a product of Compliance Catering Inc., will affect the performance of Timberlake Company. This system is installed and leased in hotels, baby-care centers, hospitals, and restaurants.
The system has a small switch charged with the responsibility of regulating the temperature of fluids. It also regulates run-times and pressures. It is also efficient in the utilization of water. However, the compliance systems are particularly expensive to install or lease. Furthermore, they do not increase employee compliance.
The other factor is the presence of disposable gloves. They are provided by various agencies to tackle the risks of non-compliance. These agencies offer hypo-allergenic gloves for curbing the risks related to hand and body washing. However, the usage of gloves has several limitations. Disposable gloves are expensive, rip and tear, as well as carry bacteria on their surfaces and between fingers.
Strategies and marketing tactics for attracting first-time customers
Strategies
To attract first-time customers, Timberlake Soap Manufacturers will employ several strategies. These include a promotional strategy, a pricing strategy, and a marketing strategy. Through a promotional strategy, we will be able to create awareness of our products within the target audience. Our products are aimed at reducing and preventing infections from communicable diseases, which is currently a national disaster.
The company will seek positive public perceptions. This will be achieved by obtaining endorsements from the government to enhance the significance of the product. We shall also integrate social media marketing, TV, and radio broadcasts, as well as print media, to create awareness, inform, and persuade consumers to try the products (Sheehan, 2010).
The company will also spread awareness through stickers at all hospitals, baby-care centers, homes, and restaurants, among others. The stickers will contain information guiding consumers to use our products for better results.
The company will also send pamphlets to homes through mailing lists obtained from day-care rosters. Powerful messages encouraging the use, and explaining the benefits of the soap products from Timberlake Company will be used to attract first-time customers.
Timberlake Soap manufacturers will also employ a pricing strategy to attract new customers. The company will offer its products at relatively lower prices than its rivals. However, it will emphasize high-quality standards to meet the needs of its customers. This will attract a lot of customers, particularly consumers, who are relatively cautious about pricing. The high-quality soap products will also attract prospective buyers.
The company will also integrate a marketing strategy to attract first-time customers. It will invest in branding campaigns assuring customers that the soap products from the Timberlake manufacturers are the most efficient in containing infections from communicable diseases.
The company will offer free samples to new customers, who after trying the products and getting satisfied will come back to purchase them again.
Tactics
The company understands that high-quality standards are essential in customer satisfaction (Burrow & Bosiljevac, 2009). The company will also employ consistent branding messages as a marketing strategy. This will ensure that customers are reminded and informed about the products.
Timberlake Company will also use branding as a marketing strategy. The company understands that enthusiasm is the basis of customer loyalty. The company will not only focus on winning customers but also on creating fans to encourage post-purchase behavior.
Strategic positions available for the business plan
These include cost leadership, brand and product differentiation, strong customer bonding, and niche marketing, among others. Timberlake manufacturers will offer chemical-free soap products at a slightly lower cost than its competitors (the traditional soap producers, glove providers, and washing compliance systems).
The company’s products are unique. There is no other company producing chemical-free products. When a customer uses a chemical-free soap from Timberlake Company, the effectiveness of the product is noticed immediately. No other soap product from the competitors can meet this standard.
The company will build a strong brand within a short period because it will invest intensively in branding campaigns. It will focus a lot on social media in its advertising campaigns. Most of its competitors are not active in social media, and hence, Timberlake will gain a competitive edge after pursuing this strategy.
Also, Timberlake Company will develop strong customer relationships than its competitors. This will include providing high-quality products and having a competent customer care department. This will ensure that the customers’ complaints are settled in an efficient and prompt manner. Employees will receive training in customer relations to enable them to communicate well with consumers, and hence influence loyalty.
Types of opportunities the strategic positions bring to the business
Through the differentiation of its products and brand from its competitors, the company will gain a competitive advantage over its rivals. This way, the company will have an opportunity to grow its market share. Good customer relationships will also contribute to enhancing customer loyalty, and hence influence post-purchase behaviors (Abrams, 2012).
Considering that a lot of individuals are dying of communicable diseases, the chemical-free soap from Timberlake Company will have a higher demand compared to competitors. This will lead to increased sales, profits, and revenues. The company will grow its market share and presence across all regions without difficulties, considering that it produces a unique product that is efficient for use and meets the needs of its consumers.
Key types of risks that the business opportunity will face
The key risks associated with the business opportunities of Timberlake Company include competition from existing companies and new entrants. After seeing how quickly the Timberlake products and business are growing, new organizations will copy the same strategy and venture into the market.
For instance, they might use the gaming theory to establish how the Timberlake Company operates, and hence copy its core competencies in their operations. This might deny the Timberlake soap manufacturers a considerable market share in the industry.
Sources of funding available for funding entrepreneurial ventures
The funding sources include bank loans, venture capital, group/investors/firms, private loans from families and friends, as well as the Small Business Administration (SBA) loans, among others. Timberlake Company will pursue funds from these sources to support its operations in all stages of product development. It will provide the financiers with a business plan to influence them to provide funding.
Funds from the sources mentioned above will help the company in many ways. For instance, the company will run all its operations without stagnating at any stage of product development. It will use the funds to purchase the inventory, raw materials, and other resources.
A report on operating costs required for your product venture
The Timberlake Company will use the funds acquired from the above sources to pay for its operating costs after introducing the product. The company needs finances to cater for one time costs and operating costs. The following table shows the summation of all the costs that the company will incur in one year.
Prepare a break-even analysis in which you explain the report you created for the venture capital group
The following graph summarizes the report presented to the venture capital group in the quest for funding. It shows fixed costs relative to distributing chemical-free soaps in the target markets within the region.
It should be noted that it does not reflect the fixed costs required for further expansion. The monthly revenue break-down is $11,250. The graph also shows the average variable cost of 40%. The Timberlake Company’s estimation of monthly fixed costs is $6,750.
References
Abrams, R. M. (2012). Entrepreneur-ship: A real-world approach: hands-on guide for today’s entrepreneur. Palo Alto, CA: Planning Shop.
Burrow, J., & Bosiljevac, J. (2009). Marketing. Mason, OH: South-Western Cengage Learning.
Sheehan, B. (2010). Online marketing. Lausanne: AVA Academia.