Essay on "New Venture UK Green Clean Market Entry"

Essay 6 pages (1609 words) Sources: 15

[EXCERPT] . . . .

New Venture UK

Green Clean Market Entry Proposal

Market Analysis

Organizational Structure and Funding Requirements

Green Clean Market Entry Proposal

The purpose of this venture is to propose a product with a bright future in one of the only markets emerging in the black in the current global market catastrophe. The only industry that will have a market that grows exponentially and indefinitely is within an industry that is focuses on building a sustainable business around providing the products that a new aged consciousness consumer will require now and into the future. Therefore this venture wishes to enter the market in the eco friendly cleaning products industry with a product line called Green Clean. This industry is currently still in an infantile stage in the product life cycle curve and therefore an optimal time for market entry is now. If firms can a toe hold in the market place at this state of market development, the organization will be poised to utilize future growth trends in the industry.

This venture will begin by purchasing unbranded wholesale items and rebranding them and selling them at retail through various distribution channels. One avenue for distribution will be through big and small box retail outlets. Delivery of these products will integrate with the retails outlets current distribution routes. For national retailers this will entail bulk shipments to a distribution warehouse. For smaller local chains delivery will be on site and the shelves can re-stocked directly by a delivery crew.

Another method of distribution will be through a direct business-to-business cleaning service that can branded as an eco friendly cleaning service cleaning solution. Not only will this service appeal to business' that are trying to maintain a balance scorecard in their operations, but it will also give the local distribution crews a dual role. They can maintain the cleaning services offered to clients and service the delivery routes simultaneously in early development. Therefore this positioning gives this organization a niche into market entry. Clients of Green Clean can utilize the Green Clean branding to promote themselves as an environmentally consciences business entity.

Market Analysis

The market for eco friendly cleaning products is young but not without established competitors. One organization already sells a full line of environmentally conscious products through national distribution routes; this line is known as Simple Green. This product line stands as one of the most formidable opponents in the market and also operates internationally. These products can be found at most retail outlets, big and small, who offer a decent selection of cleaning products.

However, our product will have a competitive advantage by three separate means. First, the multiple distribution channels will promote product awareness among consumers in an expedient manner. Another advantage to using the multiple distribution routes to promote product awareness is that the products can be branded as "industrial strength" and carry that image throughout the market. Customers will perceive the value added component of the product's price to be rather large. This will provide a solution for clients to ensure them that they are contributing to the environmental causes by choosing the Green Clean brand.

Another competitive advantage is that Green Clean will be able to offer a dynamic product line by not tying up resources by investing in the production of any one product. All though this type of investment maybe considered as the organization develops, initially Green Clean products will rely solely on product rebranding to offer a full package of cleaning products. This will make product selection in the product lineup malleable and subject to nimble responses to fluctuating markets as the industry develops. The value added portion of the price to the consumer will exist in the form of them trusting the selection of products in the lineup. They will know when they purchase a Green Clean product that it represents the most eco friendly cleaning solution that is available in the market place.

The final competitive advantage that the Green Clean product line will offer over the current market competitors is that they will be used and branded in a professional service industry. Not only will this represent a newly emerging niche service solution, but it will also act to promote the brand image concurrently which will further enhance brand equity in consumer perceptions of quality. This perception of quality will allow Green Clean to charge a premium over the competitors who are already charging a premium in regards to the standard cleaning products lineups.

These three separate competitive advantages will allow Green Clean to quickly capture market share in the UK. It can roughly follow the Starbucks coffee business model and use the way Starbucks entered the market as a model. First Starbucks began operations by offering the service; offering premium coffee. Then after the brand image became established, they offered their products to consumers through multiple distribution channels and sold their products through retail venues at market premiums. This success was largely due to the fact that Starbucks management understood the relationship between quality and branding in the early stages of product development and the same trend will be the aim of the Green Clean product line.

Organizational Structure and Funding Requirements

The organizational structure will undergo a planned evolutionary phase development from the very beginning. Initially, the campaign will begin in one major metropolitan area which will be London. The London market will serve as the primary operational hub and will be the hub of corporate operations as the business further develops. This strategy will focus on one primary urban area at a time and represent a fairly flat organizational structure of managing these locations. London will be the flagship that serves as the model for development into other markets.

The strategy to emerge successful will incorporate three core values. The first will involve purchasing a quality product line with custom packaging. This purchasing function will also act to establish a just-in-time purchasing strategy to keep overhead as low as possible. The next core value will focus on the company's dedication to marketing and brand image. A sales team will established to market the Green Clean product line in both distribution channels. Having multiple target markets will allow the company flexibility in the initial product development and allow the marketing team to pursue leads that generate the most demand.

The final core value will focus on the quality of service that utilizes the most advanced cleaning technologies available. This will not only ensure that customer service initiatives are fully optimized but also that the brand image is built properly and maintained throughout the growth stages. Equipment must be purchased immediately and the service crews must be trained before service routes can be developed.

To fund this development a total of four million (4,000,000) pounds will be required and split equitably between the three business functions that represent the core values of the organization plus an additional million to stock an initial inventory of products. One million will be budgeted for product and supply chain development with a just-in-time strategy built into to this development. Another million will be budgeted to sales and marketing including product promotion. This will allow the sales team enough funding to properly develop pipelines and also to advertise thoroughly. Finally, another million dollar budget will be provided to the service crews and related equipment. These teams will be equipped with the latest portable cleaning equipment that is designed completely around the Green Clean product line to be used to provide a total solution for environmentally conscious organizations. Furthermore, ten percent of each individual budget will be reserved to provide the business working capital. The projections based upon these budgets for the first three years will be illustrated in the following statement:

Forcast Income Statement for the year ending:

2010

2011

2012

Gross sales revenue… READ MORE

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