Business Plan for Brand New Venture

LEO COMPUTER SYSTEM

Prepared By:

Bhawani N Prasad

Executive Summary of the Company - LEO COMPUTER SYSTEM

LEO COMPUTER SYSTEM is a joint computers manufacturing company founded by Bhawani Nandan

Prasad in India. LEO COMPUTER SYSTEM Company is planning to launch primarily in Delhi, India

during winter fall January 2014 and after a short-term of its operation, the company has plan to expand its

business outside the country and will cover Gulf Market (Dubai Based) and African market. LEO

COMPUTER SYSTEM is a computers and software manufacturing Company. The Company produces

different types of computers and software.

In addition to the software and computers, the company will produce a variety of other spare parts that

are generally used in computers such as mouse, floppy disks, color graphic, Pin drives, loudspeakers,

monitors and so on. Competition is so fierce in the market and each of the rival companies and

entrepreneurs come with new innovative products to the market but the Stylish products of LEO’s

company have greatly dominated a big segment in the markets and industry.

Innovation is the process of creating new product, process, and applications which are accepted,

prioritized by the market, authorities, and society. If we compare LEO’s company products with

competitors and its last one decade of operation, then we can easily recognize that the company made

incredible advancement than other competitors.

Founder and Leadership Team

Leo Computer System is founded this year but still not in Market by Bhawani Nandan Prasad who is

renowned Market Leader in IT and Computer world. Bhawani has graduated in Computer Science

Engineering from a reputed India Top Engineering Technology Institute and also having management

education. The company LEO is backed and financed by many industry business leaders.

Bhawani has been associated with India Top IT consultancy Firm such as Tata Consultancy Services,

Polaris Finance Technology, Fidelity Investments and AgreeYa solutions. He has keen interest in Cloud

infrastructure technologies and applications. Bhawani is highly optimistic and committed for the success

of this company and motivated by huge growing demand of IT innovative products globally. His carrier

experience and education equip him to face any kind of adverse challenges.

Bhawani represents IT CIO Forums, PC world chapter, PMI Project and Program Management Chapter

and Enterprise Architecture Community.

Opportunity

Large pipelined orders and prospect clients with sponsor of advance capital investment. The Products are

based on Business Strategy of distinct and unique smart value delivery model. The pricing of products

are based on Core Value propositions with different products with different revenue model of Low Cost

Strategy, Differential Value based, Hybrid and Niche Market.

Risk and Rewards

The Company has high initial investment capital to compete with existing strong brand market players

and competitors. There reward for first time buyers.

Products and Services Description

Our company produces and provides the following products and services to market and the customers:

• LEO Glass (Powered with Internet and Google Map).

• Laptops (Each size starts from 7inches- 25 Inc, various colors).

• Desktops (size range 13.5 inc- 40 Inc, with Separated and connected CPU).

• Notebooks

• Net books

• Think pads

• Idea pads

Other Accessories produced by the Company:

Following are the parts and accessories manufactured by our company and provided to the market and

company customers:

• Batteries

• Power adaptors

• Memory devices

• Storage devices

• Carrying cases

• Docks

• Keypads

• Mic

• Video cards

• Wireless & networking

• USB key drives

• Projectors

• Screen n Security filters. Etc

In addition to our company products and accessories, we are committed to satisfy our customers and

provide them the following services:

1. Safe and on time delivery of products purchased by the customers.

2. Assist in installation and other initial fixing process.

3. Warranty of products.

We guarantee our products for one year and provide the customers with a one year warranty card which

is valuable for the specified period.

4. Post sales repairing:

We provide post sales repairing services to our customers and repair the products that are either harmed

by the power shock or due to any sub-parts disorders. We are not responsible for any subsequent

physical damage occurring during this time.

5. Assigning a Toll free complaints number.

We have established a complaints department to reach our customers’ needs and resolve their problems

subjected to their products.

6. Free software provision:

Beside the core products purchased by the customers, we can provide some additional free cost software

to our customers.

7. Online order services.

To satisfy our customer and timely approach to their needs, we can accept online orders for any

accessories and software of the same company.

8. Products Returning:

If our customers decide for a new product or not satisfied with the products purchased, they can return it

in the next five days and replace them with their desired one.

Mission

“To be the most successful computers and software manufacturing company to invent technologies and

services that drive business value by delivering the best high-quality, low cost, innovative products that

create social benefit, improve the lives of customers and to increase stakeholder value without affecting

environment resources. To capitalize market position as a leading distributor of computer and networking

products by increasing penetration of existing markets through acquisitions and expanding into new

markets.”

Vision

“To be the global leader in industry, satisfy our customers and facilitate society with innovative products."

Project Contents

Contents

Executive Summary of the Company - LEO COMPUTER SYSTEM ................................................. 2

Mission ......................................................................................................................................................... 5

Vision ............................................................................................................................................................ 5

1. Current Marketing Situation .............................................................................................................. 7

Current Product and Services Demand in the market .............................................................................. 8

Company Situation .................................................................................................................................... 8

Current Market situation .......................................................................................................................... 8

Consumer Situation .................................................................................................................................. 8

Macro-environment Situation .................................................................................................................. 8

Competition .............................................................................................................................................. 8

2. SWOT Analysis ....................................................................................................................................... 9

3. Marketing Strategy – Blue Ocean Strategy ......................................................................................... 12

4. Objectives - Launching new product ................................................................................................. 13

5. Market Research .................................................................................................................................. 16

5.1 Computer Market and competitors in Afghanistan ............................. Error! Bookmark not defined.

5.2 Computer Market and competitors in Dubai .................................................................................... 16

5.3 Computer Market and competitors in India ..................................................................................... 17

5.4 Industrial Analysis ............................................................................................................................. 17

6. Competitive Analysis ........................................................................................................................... 20

7. Target Market ......................................................................................................................................... 21

7.1 Primary and Secondary Market ................................................................................................... 22

7.2 Market Segmentation .................................................................................................................... 22

7.3 Niche Market .................................................................................................................................. 22

8. Marketing Objectives and Strategies ................................................................................................ 24

8.1 Product .............................................................................................................................................. 24

Components: ......................................................................................................................................... 24

8.2 Place .................................................................................................................................................. 26

8.3 Pricing ................................................................................................................................................ 27

8.4 Promotion ......................................................................................................................................... 28

9. Action Programs .................................................................................................................................. 29

10. Financial Budget – Projected Profit and Loss Statement ............................................................ 29

11. Controls ................................................................................................................................................. 37

12. Conclusion ....................................................................................................................................... 37

13. Appendix ......................................................................................................................................... 37

1. Current Marketing Situation

Our company periodically analyzes the markets and different environments and after our last survey

conducted, we gathered the following data and information about current situation in the market:

Current Product and Services Demand in the market

According to the company survey conducted, the demand for such product is higher in the market and it

is not entirely dominated by other competitors. Peoples still seek higher quality products in the market

which we can provide to them.

Company Situation

Good and Competitive

Current Market situation

Growing Industry

Consumer Situation

Consumer ready to pay premium for innovative differential value products and applications

Macro-environment Situation

Economy not good

Competition

Each business has a market share and different competitors are working in the industry. As per our

analysis competition in this market is not stronger and we can increase the prices without losing the

customers and we believe that in a very short period of time the business will get to the higher peak of its

development.

Labor conditions

Beside the advanced technology we need some human power in our business but when we conducted

the assessment a large percent of people is in unemployment position and we can hire them with less

salary/ wages in the business different processes.

The need for labors in the company

We can hire both skilled and unskilled people for manufacturing process. According to the process and

market evaluation a large segment of unskilled people will be recruited for the entire process and we

need limited technical employees who will be responsible for overall process of production.

- Unskilled people recruitment.

- Need for limited skilled people.

Regulatory condition

Each of the industry is subjective to government regulations but most of the time the Gov does not allow

the firms to enter the business world due to their rules. As per our survey the Gov has strong

collaboration with LEO COMPUTER SYSTEM Company and there is no any restriction for its operation in

the market.

2. SWOT Analysis

S – Strength

W – Weakness

O – Opportunities

T – Threat

T – Trends

A SWOT analysis is a fundamental method generally used for making strategic planning and objectives

and it is one of the main steps that should be taken prior making any progress toward launching the

venture.

The SWOT analysis helped us to identify all of the factors that lead business either toward success or

failure in the future. In order to be more successful in our business and recognize each of the internal and

external factors influencing our business, we conducted the SWOT analysis survey for the business

which is summarized in the following section.

Strengths

• High skilled, Competent, experienced employees.

• Talented leader with more than ten years experience such as a CEO.

• Favorable working environment (Office space).

• Adequate resources (Human, financial ...etc).

• High quality product and services.

• Provision of lower cost price as a result of efficiency.

• High market shares.

• Less risk and investment (Partnership).

• Strong organizational behaviors.

Weaknesses

• The Company is new in Industry In comparison to other competitors

Opportunities

Limited number of competitors in the market (Afghanistan & Dubai).

High price of substitute products in the market.

Labors availability.

Customer’s dissatisfaction from other companies products.

High market shares of the company.

Large number of NGOs, organizations, schools, universities which will help us to sell a bulk

amount of company products.

Threats

Well settled competitors.

Building a brand image.

Environment & health hazards.

Copying.

New companies to industry and the market.

Rapid changes in governmental regulations such as tax...etc.

Innovation by other competitors and rivals.

How did the SWOT Analysis help LEO COMPUTER SYSTEM Company?

1. The SWOT analysis helped the partners (Entrepreneurs) to confidently start with their new

venture.

2. The gathered data was a rich and confident source of information and contributed the company to

generate its long-term strategic planning.

3. SWOT analysis helped the company to realize the competitive status of other companies in

industry.

4. SWOT analysis identified the needs and requirements in market and helped the organization to

further predict its business prospect and keep customers satisfied.

5. The SWOT analysis contributed our company to recognize all the strength, weaknesses, threats

and opportunities in environments and overcome the insurmountable obstacles on our path.

6. It helped us to turn our organization stronger than other competitors and rivals in industry and

sustain growth in the market.

Conclusion

To conclude I would like to mention that; marketing is the fundamental part of each organization which

defines both its success and failure in the market. Marketing plan contributes us to promote and inform

our customers about products and services. In order to be successful in the business and industry, we

must periodically conduct the SWOT analysis which would help us to identify the marketing trend and

assign resources accordingly. The goals of the marketing should be realistic and based on the data

received from the SWOT analysis process. It must remain in line with the firm’s mission and vision. Each

objective set in marketing plan should be measurable and time specific. A comprehensive marketing plan

is a plan that is based on the market analysis and the competitor’s status in industry.

Recommendations

Each marketing strategy of an organization should comply or to stay in line with its mission and

vision.

In order to be successful in marketing and the entire business, we must maintain relationship with

existing customers and attract more through their WOM.

Periodically analyze the market and our competitors and make strategies accordingly.

Recognize the market and gather sufficient data regarding our products and customers

requirements and submit it to production and other units for further amendments.

Recruits talented staff for marketing and motivate them to pursue the organizational

and marketing goal and objectives.

Use different modern techniques for promoting the products and services and aware customers

and markets from our innovation.

Represent organization and participate in many community events and other associations and

aware people of our products. Participation in such events will greatly contribute us to gain high

reputation in the market.

Continuously conduct assessment survey and identify the gaps between the performance and

expected outcomes and refill them on time.

3. Marketing Strategy – Blue Ocean Strategy

Blue Ocean represents all industries not in existence today. In existing industry it represents new

opportunity, new marketplace, and creation of new demand, value innovation and undefined

Market space. Example: Google glass application is Blue Ocean Strategy

Here, in last 20 years, automotive, aviation, health care, plastics, DVDs, Computers, Personal

entertainment devices (iPods etc.) have created new market space.

The following are the characteristics of Blues Ocean Strategy:

Create uncontested market space.

Make the competition irrelevant.

Create and Capture new Demand.

Break the value-cost trade-off.

Align the whole system of a Firm's activities in pursuit of differentiation and low cost.

Value innovation = innovative value

The beliefs in Blue Ocean Strategy:

Industry Assumption: Industry condition can be shaped.

Strategic focus: Create a quantum leap in buyer value to dominate the market.

Customers: Go for the mass of buyers and willingly let some existing customers go.

Think in terms of embracing key customer value commonalities.

Assets & Capabilities: Think free from a company's existing assets and capabilities. Ask,

what if we start a new?

Product/Service Offerings: Think in terms of buyers' solution even if that transcends the

industry. Seek to solve buyers' major bottlenecks/Chief compromises in using the

products/services of the industry.

The four actions to create a blue ocean:

Raise: What factors should be raised well beyond the industry standard?

Create: What factors should be created that the industry has never offered?

Eliminate: What factors should be eliminated that the industry has taken for granted?

Reduce: What factors should be reduced well below the industry standard?

4. Objectives - Launching new product

LEO COMPUTER SYSTEM is one of the innovative companies which produces and delivers a variety of

products and services to its customers and market. Since the industry has been more competitive and

each of the rivals companies continuously endeavor to come with a new product and services, hence

LEO COMPUTER SYSTEM Company conducted a market research survey and later on decided to

launch a new product in the end of 2013.

Market research indicated that majority of public and particularly the existing customers demanded some

new and luxurious computers to have additional functions and features, in addition the data emphasized

on the higher demands of the customers who were unless more likely to be attracted by some other

innovative companies in the market.

The new product which is supposed to be released in the end of this year is a Laser Laptop computer

which has additional functions, options and designed with numerous new features and some of its

characteristics are explained as follow:

Product characteristics:

Laser Laptop Computer which has no physical keyboard/ Key pads and managed through radial

system.

Compared to a regular laptop, the new product is customized with multiple functions and even

can work as an IPOD.

The product has minimum width which is 2.5 Cm and lighter than the other usual laptop

computers.

Each size of Laptop starts from 7inches- 25 Inc, with various colors

High quality of RAM & storage devices, processors.

A webcam with high resolution or high mega pixel.

Quality & quantity of already Installed software.

specially designed laptops for photographic purposes

Better Computing and Battery Power.

Niche Product characteristics - LEO Glass:

LEO Glass (styled "GLΛSS") is a wearable computer with an optical head-mounted display (OHMD)

with the mission of producing a mass-market ubiquitous computer. Google Glass displays information in

a smart phone-like hands-free format, that can interact with the Internet via natural language voice

commands.

Type Augmented reality (AR), Optical head-mounted display (OHMD), Wearable

technology, Wearable computer

Release date Developers (US): February 2013

Consumers 2014

Introductory price Explorer version: $1500 USD Consumer Edition: $300-500 USD

Operating system Android[4] (4.0.4[5])

Power Lithium Polymer battery (2.1 Wh)

CPU OMAP 4430 SoC, dual-core

Storage capacity 16 GB Flash total (12 GB of usable memory)

Memory 1GB RAM (682MB available to developers)

Display Prism projector 640×360 pixels (equivalent of a 25 in. screen from 8 ft. away)

Sound Bone conduction transducer

Input Voice command through microphone, accelerometer, gyroscope,

magnetometer, ambient light sensor, proximity sensor

Controller input Touchpad, MyGlass phone app

Camera Photos - 5 MP, videos - 720p

Connectivity Wi-Fi 802.11b/g, Bluetooth, micro USB

Weight 50g

Backward compatibility Any Bluetooth-capable phone; MyGlass companion app requires

Android 4.0.3 (Ice Cream Sandwich) or higher

Website google.com/glass

Pricing System Costs:

A large segment of market is attracted by the lower cost of products and services and correspondingly

competitors are in constant endeavors to cover their requirements and demands. Our marketing plan

describes the different pricing strategies and the costs associated with the products and services. LEO

COMPUTER SYSTEM organization has different methods for its pricing such as discount for the

customers particularly for those who stay loyal to the company, none or fewer discounts for the high

margin of the market and so on.

Since the new product is new to the market therefore our company has incredible discount and other

offers to the customers and it is underlined as follow:

1- Though the products has additional features and functions, we offer it with a more affordable prices

which is ranging from 200 $- 4000$.

2- We grant 10% discount per piece for clients that buy in bulk quantities (Starts from 2 pieces – Up to

ten).

3- An amount of 5% discount will be given for loyalty purposes (per piece).

Profitability of products:

LEO COMPUTER SYSTEM focuses on its long term customer’s satisfaction as well as company’s

profitability.

Profitability of the company is directly linked with production and the sales of the new products, therefore

the main thing that was primarily overviewed by the company was to go on the market research and find

out the target market, analyze competitors and other relevant factors for its new product.

In order to be the most profitable product in the market and satisfy the customers’ demands and

requirement the company went through a series of phases before releasing the new products and some

of these cycles are listed as below:

Accurate pricing of the product.

Excellent testing of the project.

Good advertising of the laser laptop through different channel and the media.

Organizing promotion program of the new product in target market.

The good team work is to be in the organization.

The establishment of the good channel of the distribution of the products.

These were all the fundamental stages that increased the supply and demands of the products and

dramatically raised its production and sales rate in the market.

5. Market Research

Computer manufacturing companies and demand is across all over the world. Now, Schools, colleges,

universities, organizations, and other business offices are everywhere and their paperless work has

largely grown demand for computers and other related products such as notebook, iPod etc.

Demographic, Psychographic, Geographical Considerations and Industrial Analysis:

5.1 Computer Market and competitors in Dubai

The UAE computer market represents one of the largest trading sectors in the country. The retail network

for computers in Dubai is next in size only to the network of food stores, textiles, gold and electronics. The

annual turnover of this market is estimated at about US$1 billion per year. Domestic demand for

computers and related products forms a major share of the total trade. A substantial portion of the

domestically sold computer hardware and software is bought by tourists, shoppers and home-going

expatriates.

Dubai has huge competition for LEO COMPUTER SYSTEM but at the same time it can also provide huge

opportunities to LEO COMPUTER SYSTEM to sell their products to a large number of exporters and

suppliers in the market.

Africa has been targeted by UAE companies as the next emerging market for computer hardware,

software and accessories. Large number of buyers from Kenya, Uganda, Tanzania, Eritrea, Senegal,

Congo and South Africa are seen buying large quantities of computer hardware and accessories from the

various computer shops in Dubai. From printer cartridges to complete computer systems, these African

buyers are buying increasingly large quantities. Low prices and the availability of a wide range of products

are major factors that have attracted African buyers to the UAE.

The main computer and its parts supplier and retailer in Dubai are:

Retail computer sales partners are

Achiever Computers LLC, Dubai

Advanced Business Computers, Dubai

Alpha Data, Abu Dhabi

Apex Computers LLC, Dubai

ARC Computers, Dubai

Carapelli Computers, Dubai

Carrefour, Dubai

Computronic Trading, Dubai

5.2 Computer Market and competitors in India

India is a huge market for IT, computers and kinds of equipments which lead huge competition. But there

is still huge demand of quality cheap computers, iPads and laptops. India's personal computer (PC)

market will be a new hub for Asian PC makers as western PC makers are gradually slowing down and

hence Asian makers are starting to make a contrive plan to grab the Indian market.

A recognized research firm Gartner said global PC sales in 2011 grew 3.8% as against its forecast of

around 10% growth. Generally, western PC giant like HP and Dell has always been dominated the market

worldwide. However recent deceleration of HP to stop its PC segment, it has lost 1% of its market share

in Indian market according to IDC, a research firm of India. Taiwanese PC maker Acer took the place of

HP to become No. 2 after Dell.

LEO COMPUTER SYSTEM is a fastly moving forward in tying up with educational institution to sell their

product in the Indian market. This Company is growing high as it getting highest order from the education

sector and a large numbers of orders from government bodies and educational institution has contributed

the company to succeed and win among other competitors.

Although LEO COMPUTER SYSTEM has good reputation in the market and dominated a large segment

of the Asian markets, but it still has some competitors in the India and they are listed as below:

5.3 Industrial Analysis

Involving interests of the PC community can be described as diverse. Advantages consist across the

board for the PC user. Ranging from music manipulation, video enhancement, money management,

research, school, science and a myriad of others; there are many uses for the PC. Therefore this means

the customers that buy the computers are diverse and use their machines in a variety of ways.

The computer offers an efficient way of running a business, playing a game or managing your calendar.

The bottom line is that any person can find a useful attribute for a computer: which provides the industry

with revenue higher than the auto and chemical industries combined.

Trends of the Company

Increasing Clock Speed

Mass Customization

Outsourcing

Electronic Commerce

Current Trends and Issues

Demand Dynamics

Changing Profit Dynamics

Market and Distribution Trends

New Product and Technology Directions

New Business Strategies

Microenvironment analysis:

The microenvironment of LEO COMPUTER SYSTEM is comprised of all the stakeholders with whom the

company is dealing on a more continuously and direct basis such us customers, suppliers, Distributors,

competitors...etc.

The constituents of microenvironment form the most critical part of our business and play a vital role in

areas of production, sales, quality, and profitability. Some of these elements are detailed as follow:

Suppliers

We deal with a large number of suppliers and they form the most significant portion of our production and

supply chain. In a more simple words; suppliers of our company (LEO) can be defined any party or any

agent that provide us the goods and service such us raw material and other spare parts of the computers.

Most of our company suppliers are from North Korea, UK, and China.

Customers

Customers are the king of any market and they are the dynamic element of business profitability. Since

the laser laptop is the luxurious product in the market, therefore LEO’s company customers are mostly

from high income class people and it has greatly monopolized the luxurious products line of computer

industry.

Our company continuously struggle to screen up its customers’ needs, predict and develop responsive

strategies to timely and effectively meet their requirements. So to understand customers’ requirements

and demands, the firm constantly makes its efforts to gather market related information, process and

analyze them and take outstanding measures.

By gathering data on shopping patterns and matching this data with the individual seller firms can build up

detailed pictures of their buyers and then offer them appropriate deals.

In addition to that, our company focuses on developing relationships with its customers to help and

ensure that they come back and purchase again and again. Loyalty cards, frequent flyer programs and

frequent sales incentives are all merely aimed at rewarding customers who buy a firm's product regularly.

Distributors

Distributors plays a fundamental role in the computers industry. It includes the whole sellers, retailers,

online distributors, and other intermediaries. Competition is intense in the market, and our online

distributors who provide online purchase, sales, delivery services to customer have extremely contributed

to the LEO COMPUTER SYSTEM.

6. Competitive Analysis

The competition within the PC industry is extraordinarily cutthroat.

Competitors in Dubai:

>Microsim Computers

>Hatta Computers

>Memory Technology

>House of Memory & Processor

>Lunar Trading

>Mutex Computers

>Intertec Systems

Competitors in India:

DELL

HP

APPLE

AAEON Technology Inc.

AICSYS INC.

Advantech (India) Limited.

ADLINK Technology Inc.

ARBOR Technology Corp.

Avalue Technology Inc.

Axiomtek Co. Ltd.

IBASE Technology Inc.

Lanner Electronics Inc.

Competitors for New Product Laser Laptop

Although the laser Laptop computer is a new luxurious product and has largely monopolized the market,

but it still has a large number of competitors in the market and again they are less capable to hinder our

profitability since our company has good reputation in the market. Some of the nimble competitors are

listed as follow:

DELL

Sony

HP

Apple

Toshiba

Dell - The world's #1 direct-sale computer vendor provides a broad range of computer and

entertainment products for the consumer and enterprise markets.

Sony - Sony has refocused its approach to selling computers: Instead of appealing primarily to

consumers, it is now targeting business customers (mostly small and medium-sized companies).

HP - HP's Personal Systems Group (PSG) markets desktop and notebook PCs to consumer,

businesses, government agencies, and schools.

Apple - Once the world's top PC maker, Apple Computer has been relegated to niche status in a

market dominated by "Wintel" machines (computers using Microsoft Windows software and Intel

processors).

Key Success Factors in regards with Competitors Strategy

PC Industry Services and Custom Built PCs

Technology Services and New Technology

Consulting and Integration

Managed Services

Reliability

7. Target Market

Target market is the main focus area or the location to be overview by the firm or the company. While we

do the market segmentation there we found the three types of the market and they are :

1. niche marketing

2. local marketing

3. individual marketing

These are the dominant economics characteristics driving target market decision:

1. Market Size

2. Scope of Competitive Rivalry

3. Stage in Life Cycle

4. Number of Companies within the Industry

5. Customers

6. Technology/Innovation

7. Product Characteristics

8. Scale Economies

9. Learning and Experience Effects

10. Capital Requirements

11. Industry Profitability

7.1 Primary and Secondary Market

Primarily we have local market as target in Afghanistan and Dubai. We have also planned to start from

Nepal and India considering Kathmandu as the central functional business unit in Nepal and New Delhi

central functional business unit in India as there is more high profile population and hence consumers for

our products. Africa is our secondary market and planning future expension there sooner.

7.2 Market Segmentation

Geographical : South Asia and African

Demographical : Government, Tourist, School and College Students.

Psychographical : Low size Firms and urban consumers

Behavioral : Government officials and Rich consumers who can afford laser laptop.

7.3 Niche Market

We get the opportunity to contract with Nepal and Afican continents government to supply our products

for official supplies.

8. Marketing Objectives and Strategies

8.1 Product

Product Type:

Laser laptop, Laptops, PCs and accessories

Components:

• Case - The box all the parts (except monitor, keyboard, mouse, and printer) are stored in.

• Mother Board - The main printed circuit board in the computer, which the CPU (see below) plugs

into.

• CPU (Central Processing Unit) – The CPU is the actual "brains" of the computer.

RAM (Random Access Memory) - Like pieces of scratch paper that information is temporarily stored

on ONLY WHILE you are actually working on the computer.

• Disk Controller – The Disk Controller allows your computer to interact with your disk drive storage

devices.

• Hard Disk Drive - A STORAGE device, NOT MEMORY! The Hard Disk Drive is like a filing cabinet -

no more, no less. Retrieval is faster, and finding things is usually easier, but it is still just a filing

cabinet.

• Video Display Adapter - Unlike your eyes, it can ONLY OUTPUT the computer information in the

form of a video signal that is human readable (via the monitor).

• Monitor - The actual display you see the words, pictures, and data on. There are two main types:

analog and digital.

• Input Device - Keyboard, Mouse, Digitizer, Scanner, Pen, Digital Camera, etc.

• Modem - A device that hooks your computer up to the telephone line

Features:

The laptop memory and processor is LEO COMPUTER SYSTEM specific and only LEO

COMPUTER SYSTEM provides this part.

Small size laptops which can be carried in pockets just like mobile phone instrument. Lesser size

than existing iPads in market.

Various attractive color available upto 26 colors.

The metal of the instrument is very strong in comparision to products available in markets.

Stages of the Product Life Cycle

The stage of the PC industry life cycle can be described as mature. However, the growth of PC sales has

not decreased due to the globalization trend taking place within the multinational corporations.

Identification

Each product is tagged with company logo "LEO COMPUTER SYSTEM" and license, features details.

Adoptive Process

The new product is attractive to Innovators and Early adaptors. The existing products features are

upgraded to attract majority and laggards consumers.

There is perceived benefits over alternative products. LEO COMPUTER SYSTEM also promoting new

product questions, feedback communication on various social networking medium such as FaceBook.

Company has reputation to be consistent on price. The product are compatible with existing standards

and values.

Regulations Regarding your product

LEO COMPUTER SYSTEM is committed to compliance with the laws and regulations in each country into which the

company ships our products. LEO COMPUTER SYSTEM products are designed and tested to meet the appropriate

worldwide standards for Product Safety, Electromagnetic Compatibility, Ergonomics and other regulatory compulsory

requirements, when used for their intended purpose.

Sample of Product

Sample products are displayed on company website in Products banner.

8.2 Place

Distribution channel LEO COMPUTER SYSTEM Company

The system of product distribution - is a mechanism when product supplied from manufacturer to the

ultimate buyers.

The level of the distribution channel is the set of mediators who provides work to promote the goods from

producer to final consumer.

1. Distribution channel zero:

Producer → consumer.

2. Distribution channel of the first level:

Producer → consumer retail intermediary.

3. Distribution channel of the second level:

Manufacturer → wholesale retail intermediary → mediator → consumer.

4. Distribution channel in the third level:

Producer → wholesale intermediary→ small wholesale intermediary → mediator → Retail

consumers.

Distribution channel in “LEO COMPUTER SYSTEM ” perform a number of very important functions and

they are described as follow:

1. Gathering Information:

The research work, gathering the information necessary for planning and facilitating the exchange.

2. Sales Promotion:

Sales promotion, creation and dissemination of communications about the product and services.

3. Maintain Relationship:

To keep contacts and maintain communication with all potential buyers and customers.

4. Creation of Image:

Adaptation of product, the goods fit the requirements of customers. This applies to activities such as

manufacturing, sorting, assembling and packing.

5. Negotiation:

They negotiate and attempts to harmonize prices and other conditions for the subsequent

implementation of the act of transfer ownership or possession.

6. Post production services:

Organization of product movement, transportation and warehousing of goods.

7. The adoption risk, taking responsibility for the operation of channel.

Implementation of the first five functions is facilitating transactions, and the remaining two are already

completing transactions.

We are providers of large companies and government agencies in Afghanistan Kazakhstan Nepal India.

«LEO COMPUTER SYSTEM » is one of the most developed retail chains of computer equipment in all

the above countries.

Product Transportation:

- Freight is transported by road.

- Rail transport.

- Air transport.

Orders are received by mail, by telephone, via computer networks, as a result of personal visits by

customers. Order processing is to transfer them to the warehouse where the checks for the requested

product. In addition, the order is sent to the appropriate economic life, checking prices, delivery

conditions, and the creditworthiness of the customer. Once the order is ready for shipment, storage and

marketing of service constitute the schedule of the vehicles.

Delivery charges of product:

Afghanistan Kazakhstan Nepal India free delivery charge within 24 hours.

International shipping and price of international delivery is dependent on the country and destinations.

More complete information can be found on our website www.LEOcomputers.com

Or by phone;

Distribution Department of LEO COMPUTER SYSTEM

+918835676920

+913948576789

Our experts will acquaint you with the details of all information and answer all your questions

8.3 Pricing

LEO COMPUTER SYSTEM plans at Board level seriously on pricing to make competitive advantages.

These Pricing characteristics are:

Policy

Elasticity of Demand

Skimming or Penetration Strategy for introducing new product

Production Cost of each unit

Break-even Point

Markup

Suggested Selling price

Sales and Prices, discounts, coupons, credit terms

Price and quality relationship with customer's perception

8.4 Promotion

Personal Selling

Advertising

Sales Promotion Activites

Public Relations

Samples

9. Action Programs

Confidential at this stage

10. Financial Budget – Projected Profit and Loss Statement

LEO COMPUTER SYSTEM

Company Planned Budget for 2013

S/N Items Quantity Unit Frequency Unit Cost Total US $

Program Cost

1 CEO of the Company 1 Month 12 3000$ 36000$

2 Deputy Director 1 12 2000$ 24000$

3 Office managers 4 12 1000$ 48000$

4 Technical Specialists 15 12 1000$ 180000$

5 Computer operators 10 12 200$ 24000$

6 Warehouse supervisors 4 12 400$ 19200$

7 Labors 50 12 100$ 60000$

8 Guards 10 12 100$ 12000$

Total Program Cost

403200$

Machineries

9 Manufacturing Machines 8 - Once 8000$ 48000$

10 Assembling machines 8 - Once 3000$ 24000$

11 Other machineries - - - - 10000$

12 Other Machinery overhead - - - - 8000$

Total Machinery

90000$

Raw Materials

13 Entire Raw Material (4000

Units)

- Once 20000$

14 Material overhead - - - - 5000$

Total Raw Materials

25000$

Office Furnitures

15 Desks 40 - Once 20$ 800$

16 Chairs 40 - Once 10$ 400$

17 Meeting Room Table 4 - Once 50$ 400$

18 Others - - - - 3000$

Total Furniture

6200$

Office Equipments

19 Computer 20 - Once 500$ 10000$

20 Photocopy Machine 4 - Once 400$ 1600$

21 Scanners 4 - Once 50$ 200$

22 Others - - - - 5000$

Total Equipments

16800$

Operating Expenses

23 Transportation costs - - 4000$

24 Building Rent 4 - - 400$ 19200$

25 Machinery fuel costs - - - - 10000$

26 Electricity - - - - 5000$

27 Gas - - - - 1000$

28 Commission - - - - 1000$

Other Expenses - - - - 4000$

Total Operation Expenses

33800$

Total Land Cost Purchased

80000$

Total Marketing Expenses

10000$

Total Budget for year 2013 709200$

LEO COMPUTER SYSTEM

Marketing Budget Plan for 2013

S/N Items Quantity Unit Frequency Unit Cost Total US $

Program Cost

1 Marketing Manager 1 Month 12 2000$ 24000$

2 Sales executive 5 12 1000$ 60000$

3 Marketing officers 5 12 500$ 30000$

4 Customers Relation Officer

(MKT)

20 12 300$ 72000$

5 Customers Complaints (Call

Center)

10 12 200$ 24000$

6 Computers operator 5 12 200$ 12000$

Total Program Cost

222000$

Advertising

News paper 100 Year 1 10$ 1000$

Magazines 50 20$ 1000$

Trade publication 40 50$ 2000$

Television 60 400$/Min 24000$

Radio 80 200$/Min 16000$

Direct Mail 100 20$ 2000$

Billboard 200 30$ 6000$

Others - - - 5000$

Total Advertising Expenses 57000$

Sales Promotion

Trade Shows 40 Year 1 700$ 28000$

Others - - 10000$

Total Sales promotion 38000$

Administration

Office (Marketing Branches) 3 1 2000$ 6000$

Telephone - - 3000$

Travel - - 4000$

Budget Plan for New Product (Laser Computers) (Jan ,13- Mar,13)

Budget

The total investment for starting the LEO COMPUTER SYSTEM business was 2000000 $ which was

shared among four partners of the business.

Financial Plan for a new Product

Our new product financial plan includes overall organization’s financial information and resources

allocated for launching the new product. Before to launch with a new product the entrepreneurs analyzed

the entire budget required for the business.

Financial plan helped us to recognize that how much budget is required to launch the new product and

how the business looks feasible from economic perspective. These are the most fundamental points

which are strongly concentrated in our financial plan.

A business is founded on its financial and human resources and without financial resources we cannot

come into the business world. In order to hamper further instability and deferment in our business

operation, the LEO COMPUTER SYSTEM entrepreneurs greatly concentrated on its financial plan and

took more deliberated measures.

Generally our new product financial plan is comprised of three major items such as the pro forma income

statement, cash flow and balance sheet. But before working on these statements we should prepare a

capital and operating budget.

Capital invested for three months 400000$

Other Necessities - 7000$

Total Administration

expenses

20000$

Total Marketing Budget for 2013

342000$

Program cost

Quantity Jan Feb Mar

Director of Org 1 2000$ 2000$ 2000$

Deputy Director 1 1500$ 1500$ 1500$

Office Managers 4 1000$ 1000$ 1000$

Tec specialists 6 1000$ 1000$ 1000$

Computer operators 6 400$ 400$ 400$

Ware house supervisors 4 300$ 300$ 300$

Labors 30 150$ 150$ 150$

Guards 5 100$ 100$ 100$

Total 22100$ 22100$ 22100$

Total Machineries 9000$ - -

Office Furniture 6200$ - -

Office Equipments 7000$ - -

Operating expenses 30000$ 30000$ 30000$

Land cost 20000$ - -

Total marketing Expenses 1000$ 1000$ 500$

Total budget for three months 73200$ 53100$ 52600$

Pro Forma Income Statement – Sample only as Company not launched for sale

Prior beginning with pro Forma Income statement the entrepreneurs developed the sales budget

forecasted. Developing the sales budget will help us to identify the overall sales cost incurred during the

process.

A sample sales and manufacturing budget for three months

Jan Feb Mar

(Unit/Ave cost 800$) (Unit/Ave cost 800$) (Unit/Ave cost 800$)

Planned sales 147 196 240

Preferred ending Inv 3 4 10

T available for sale 150 200 250

Less beginning Inv 0 3 4

Total production 150 197 246

Sale cost /operating budget for three months

Rent 800$ 800$ 800$

Salaries 22100$ 22100$ 22100$

Utilities 200$ 300$ 400$

Insurance 1000$ 1000$ 1000$

Advertising 1000$ 1000$ 1000$

Depreciation 100$ 200$ 300$

Total cost of Sales 25200 25400$ 25600$

Sample for Pro forma income statement (Three Months)

Sales 120000$ 157600$ 196800

Less cost of

Good sold 30000$ 45000$ 60000$

Gross profit 90000$ 112600$ 136800$

Less total operating

Expenses 25200$ 25400$ 25600$

Net Profit 64800$ 87200$ 111200$

This was a sample for three months income statement and it should be prepared for the whole year and

the next two or three following years as well.

Pro forma cash flow (Three Months)

Jan Feb Mar

Sales receipt 120000$ 157600$ 196800

Less outflow:

Rent 800$ 800$ 800$

Salaries 22100$ 22100$ 22100$

Utilities 200$ 300$ 400$

Insurance 1000$ 1000$ 1000$

Advertising 1000$ 1000$ 1000$

Cost of goods 30000$ 45000$ 60000$

Cost of Equip 7000$ - -

Total

Disbursement 62100$ 70200$ 85200$

Cash Flow 57900$ 87400$ 111600$

Beginning Balance 150000$ 130000$ 120000$

Closing Balance 92100$ 42600$ 8400$

Total Ending Balance for three months 143100$

Pro Forma Balance Sheet for Three Months

Assets

Current Assets

Cash 143100$

Inventory 5600$

Total current Assets 148700$

Fixed Assets

Land 20000$

Total Machineries 9000$

Office Furniture 6200$

Office Equipments 7000$

Less depreciation 600$

Total fixed assets 39600$

Owners Equity

A. Ahmad 50000$

B. Koschee 10000$

C. Bhawani 60000$

D. Aimyra 30000$

E. Ramin 50000$

Total Owners Equity 200000$

Total Owners Equity for three Months 588300$

11. Controls

Feedback mechanism to monitor progress

Online feedback submission through Company Website

Customer Care Calls Customer and receive feedback based upon Questionnaire

Written feedback form filled by customers at the time of purchase

Research and Development Strategy to compile information and define process and product

improvement strategy

Evaluation Process

Business Research methods based upon Primary and secondary data

12. Conclusion

Later to post

13. Appendix

Later to post

[End of Business Plan]