business plan prep class notes

8/11/2019 Business Plan Prep Class Notes

1/15

(

(

Product

/

Service hecklist

3 Determine a fair price

Cover your costs

Spring 2004

Gillette

iPod

What are your

pro

margins?

PM =

Operating Profit

I

Sales

v\ hAt

a customers willing to pay?

Starbucks

What are your competitors charging?

What are your competitor s margins?

- Avoid signs o desperation

GEB 4994 - Week 3

23


2/15

Product / Service hecklist

4

Product Attributes

Competitive advantages?

Proprietary advantages?

5 Production / Logistics

Can

yOU

deliver?

A product that meets customer expectations

In

a timely fashion

And get it to where the customer needs it

.

6

Warranties / Repairs

-

-

Who provides ongoing services?

Will you be aro

d

in

th

1

g term?

Spring 2004

GEB 4994 - Week 3

25


3/15

Supplier argaining Power

How stable are the size and composition of

our supplier group?

Are there any suppliers likely to attempt

forward integration into the industry?

How dependent will our suppliers be n the

future?

Are substitute suppliers likely to become

available?

Could we become our own supplier?

Spring 2004

GEB 4994 Week 4

7


4/15

Occasions

Benefits

User status

Usage rate

Loyalty status

Buyer

readiness stage

Attitude toward

roduct

Spring 2004

Consumer Markets

Behavioral Variables

Regular occasion special occasion

Quality service economy speed

Nonuser ex-user potential first-time regular

Light user medium user heavy user

None medium strong absolute

Unaware aware informed interested

intends to buy

Enthusiastic positive indifferent negative

hostile

GEB 4994 - Week 4

3


5/15

(

(

(

What you should

NOW

ntr pr n ur p

r

Strengths

Weaknesses

Understand where and

how

you make

money

Cash Value

hain

Distribution

hain

Spring 2004

GEB 4994 - Week 4

9


6/15

Substitute Products Services

Are new substitutes likely?

Will they be price competitive?

Could we fight off substitutes by price

competition or by advertising to sharpen

product differentiation?

What actions could we take to reduce the

potential for having alternative products

seen as legitimate substitutes?

Spring 2004

GEB 4994 Week 4

48


7/15

(

(

(

ompetition hecklist

cnlrcprcnC 'ur:s.h p

m;m

t tL'''

1

List direct competition by product and

geographic market.

- Who is directly seeking the same money you

are?

- Specialty retail stores compete with

specialty stores, not department stores

2

List the indirect competitors by product

and geographic market.

- Movie theaters are indirect competitors of

video stores

Spring

2004 GEB 4994 - Week 4

53


8/15

(

(

ompetition hecklist

3

List emerging competitors entering the

industry or market.

- Video rental stores, supermarkets entering

video business.

4

Describe the competitors strengths and

weaknesses by product and market

segment

- List

in

chart form, tie these back to your

strengths and weaknesses.

Spring 2004

GEB 4994 - Week 4

54


9/15

(

I

Competition Checklist

5

Describe the competitors share

o

the

market by prod uct.

- List by percentages or

in

unit or dollar

volume

6 Discuss relevant background information

concerning major competitors

- Include profiles of their management team,

company history, financials

- Show where they are strong or weak

Spring 2004

GEB 4994 - Week 4

55


10/15

(

(

(

ompetition hecklist

t'n l"eprt'nC'urs.h p

;'f

7

On what basis will the product / service

compete with them?

- Product superiority, price, advertising, etc.

8 How is this venture superior to that of the

competition?

- Operations, management, product / service,

price, service, delivery, etc.

Spring 2004

GEB 4994 - eek4

56


11/15

ompetition hecklist

9

ow

does this product / service compare

with the competition in the eyes of

customers?

- Include some customer reactions from a

small sample you have taken

1O Does this venture threaten the major

strategic objectives

or

self-image

of

the

competition?

- Will they attempt to destroy the venture at

any cost?

Spring 2004

GEB 4994 - Week 4

57


12/15

(

usiness

model

Revenue

model

. ' .

Value

roposition

Spring 2004

)

(

Key usiness Concepts

--

What is the basic principle behind

the business?

.

? ':

' ,

How do you plan to make money?

What are your sources

of

income?

How do . you plan create value?

What is the commercial proposition?

What is the customer going to pay for?

GEB 4994 - Week 3

5


13/15

Competitive

Position

Weak)

Spring 2004

SW T nalysis

Opportunities

Threats

GEB 4994 Week 4

Competitive

Position

Strong)

40


14/15

Business Concept Checklist

1

Define the important and distinct functions

o

the product

service

/ 2 What are the unique or proprietary aspects o the product

service?

Describe any innovative technology involved with the product

service

/

;4 Describe the position the concept plays in the industry

5 Who is the intended customer or customer group?

/ Who pays? Who uses?

GEB 4994 Wolson 1 Business Concept Checklist


15/15

What benefits will be delivered to the customer?

Y

How will the product service be sold to the customer?

ho will make the product or design the service?

ow will the customer know you exist?

GEB-4994-Wolson 2

~

~

~

Business Concept Checklist

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