cozy inc biz plan
DESCRIPTION
Cozy Inc biz plan for first product, Computer CozyTRANSCRIPT
Legal PageConfidentiality Agreement
The undersigned reader acknowledges that the information provided by Bill Kuypers of Cozy Inc, LLC on behalf of Computer Cozy in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Bill Kuypers.
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to Cozy Inc LLC.
Upon request, this document is to be immediately returned to Bill Kuypers.
___________________ Signature
___________________Name (typed or printed)
___________________Date
This is a business plan. It does not imply an offering of securities.
1.1 Objectives..........................................................................................................................................21.2 Mission...............................................................................................................................................31.3 Keys to Success..................................................................................................................................4
2.0 Company Summary...............................................................................................................................52.1 Company Ownership.........................................................................................................................62.2 Start-up Summary..............................................................................................................................7
Table: Start-up.....................................................................................................................................8Chart: Start-up......................................................................................................................................9
3.0 Products..................................................................................................................................................94.0 Market Analysis Summary..................................................................................................................10
4.1 Market Segmentation.......................................................................................................................11Table: Market Analysis......................................................................................................................12Chart: Market Analysis (Pie).............................................................................................................12
4.2 Target Market Segment Strategy.....................................................................................................124.3 Industry Analysis.............................................................................................................................13
4.3.1 Competition and Buying Patterns.............................................................................................135.0 Web Plan Summary.............................................................................................................................15
5.1 Website Marketing Strategy............................................................................................................165.2 Development Requirements.............................................................................................................17
6.0 Strategy and Implementation Summary...............................................................................................176.1 SWOT Analysis...............................................................................................................................18
6.1.1 Strengths...................................................................................................................................186.1.2 Weaknesses...............................................................................................................................186.1.3 Opportunities.............................................................................................................................196.1.4 Threats.......................................................................................................................................19
6.2 Competitive Edge.............................................................................................................................196.3 Marketing Strategy...........................................................................................................................206.4 Sales Strategy...................................................................................................................................206.5 Milestones........................................................................................................................................21
Table: Milestones...............................................................................................................................21
7.0 Management Summary........................................................................................................................217.1 Personnel Plan..................................................................................................................................22
8.0 Financial Plan.......................................................................................................................................228.2 Important Assumptions....................................................................................................................22
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1.0 Executive Summary
Cozy Inc, established in January 2013 as a Limited Liability Corporation, is a "For Profit" charitable company with principal offices located in Orlando, FL, USA. The company designs, manufactures and sells online and B2B CPG products beginning with the Computer Cozy to an international market consisting of individuals of all ages, from all walks of life. Cozy Inc markets its product line as "A Hand Up For Hope," and commits all but $2 of each unit sold back into the company to aid in the development of the companies’ employees, which come from the disadvantaged US Veteran portion of the population located in the major cities of the USA.
The underlying foundation of Cozy Inc, and its product line, is based upon the principle of creating a "For Profit" company with the paradigm that employee empowerment and advancement to self sustaining lives is the primary goal. By embracing free enterprise principals along with the pride that comes from a job well done with fair pay, it is believed that a certain percentage of the disadvantaged population can find a pathway to a self sustaining life style and become contributing citizens, removing them from life on the street and the welfare roles.
Through a relationship with a major sewn material and foam provider, consumers purchasing the Cozy Inc Computer Cozy are making a conscientious decision to contribute to the betterment of their fellow man and community be reducing homelessness, which results in neighborhood betterment, reduced crimes, greater quality of life for all as well as contributing to the greater good of humanity.
We are seeking funding to implement Cozy Inc’s operations, establish a reputable manufacturing and sales operation, and to further develop the business, business infrastructure, internal systems, product and service development, and extensive marketing and geographic positioning. Based upon conservative market growth projections, once start-up funding is secured, the company expects to generate very healthy sales revenues in Fiscal Years one, two, and three.
1.1 Objectives
Cozys' management recognizes that the company must establish concrete goals that assist management in determining whether or not the company is achieving corporate objectives. Cozys' chance of implementing those goals depends upon management's ability to track progress toward goals and to measure results in conjunction with those goals. To ensure implementation of the company's goals, management has established the following corporate objectives:
• Securing start-up funding and subsequent funding through a combination of investment and debt strategies.
• Establishing marketing and sales initiatives to expand the company's initial product line and capture at least 30% of the computer lap desk market segment by penetrating at least two Big Box channel partners.
• Based upon market growth projections, generating very healthy sales revenues in the frist three years of operations, with a percentage of the profits reinvested in employee benefits/services.
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• Reinvesting corporate profits into additional locations in other cities for providing greater benefits and services to more employees while insuring market share growth in the current and future products.
1.2 Mission
The following is a brief overview regarding a "for profit" charitable company to aid the less advantaged:
Cozy Inc
"A Hand Up for Hope"
MISSION STATEMENT:
Providing a career pathway with employment opportunities that require entry level skills in a safe and beneficial environment for the less advantaged.
OVERVIEW:
Cozy Inc will provide employment which requires entry level job skills to create popular consumer products for the USA and other markets. The products that Cozy Inc’s less advantaged employees will manufacture have been designed to not require dangerous tools or processes while providing a sense of pride and a competitive salary to employees that will move them into productive society, whenever possible. The first product is a patent pending lap desk designed for use while sitting in bed, on a couch or in a chair. Its rigid surface displays various scenic images such as the ocean, mountains and tropical isles, allowing the easy use of a notebook computer, support to read a book or to eat a meal. The product utilizes an ultra suede material bladder filled with viscous foam to provide ultimate comfort and eliminate heat transference from an operating notebook computer or a meal. The following photo shows one of the prototypes:
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A "for profit" corporation, Cozy Inc will not accept government money of any kind, but will rely on a close partnership with city government to successfully recruit the appropriate employees and properly promote the program. The goal is to provide a hand up, not a hand out, to Cozy Inc employees, making available mental and physical health care and counseling, as well as next level job skill training for those applicable employees.
The next level job skill training is entitled "8 for 6", whereby employees who chose to can work for 6 hours, get paid for 8 hours of work, and use the other 2 hours for next level job skill training, whether it be attending academic or trade school.
The success of Cozy Inc's program is not measured by how many failures we have, but by how many success'. This goal of providing a safe and directed gateway to promote "at risk" US Veterans to the next productive job level is how our success will be measured.
1.3 Keys to Success
Cozy Inc recognizes that the idea of keys to success is based upon the need for focus. To establish itself as a global leader in the paradigm of a "For Profit" Charity, the company must display extraordinary competence and intelligent foresight. By making the company's keys to success the corporate vision, management can ensure the success of Computer Cozy and the products that will follow.
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To ensure the success of the company, management will:
• Become the industry leader in the branded lap desk industry.
• Build a brand as "American" as Coke or Levis.
• Offer options of various photo images as well as custom photo images on our website for an additional fee.
• Establish and commit to "best practices" in all significant business processes, including ethical production practices, through extensive training programs, tools, measurement, and sophisticated self-assessment reporting systems.
• Create, nurture, and enhance customer relationships through problem and opportunity awareness, assessment of desired goals and results, and through routines and communications that constantly reinforce target relationships.
2.0 Company Summary
Cozy Inc, established in January 2013 as a Limited Liability Corporation, is a start-up CPG designer and manufacturer with principal offices located in Orlando, FL.
Cozy Inc's roots can be traced back to 2006, when Mr. Kuypers volunteered at homeless shelters and food banks in the Northern California/San Francisco area. Upon reading the book "Uncharitable: How Restraints on Nonprofits Undermine Their Potential (Civil Society: Historical and Contemporary Perspectives)" by Dan Pallota, Mr. Kuypers realized that a paradigm to traditional methods of aiding the disadvantaged and homeless was needed. The concept that charitable organizations should embrace the free enterprise system and participate on a "For Profit" basis as outlined in Mr. Pallotta's book became the basis for Cozy Inc, with the emphasis being on returning most of the profits to promote the employees well being and development into main steam society as contributing citizens. In addition, the creation of manufacturing jobs back into the American work place was also an objective.
With over 60% of America's homeless being Veterans, Mr. Kuypers went about creating and designing a product that would provide manufacturing jobs to the disadvantaged in America while requiring an applicable skill level for this populace. The product also had tobe desirable creating a high demand, be of high quality and be competitively priced to both the Big Box distribution channels as well as the end customers. Mr.Kuypers developed this first product in 2006 which has under gone two years of quality testing. The company slogan is "A Hand Up For Hope. "This slogan exemplifies the proverb of "teaching a person to fish and they can feed themselves forever". By providing decent pay for a respectable job which instills pride, as well as providing health care, personal counseling and a program for future job training, Cozy Inc's aim of promoting a pathway to greater personal well being for the homeless can be achieved.
By purchasing "Computer Cozy," consumers make a conscientious decision to become an integral member of a community dedicated to the greater good of humanity within their actual community. For each Computer Cozy sold, Cozy Inc reinvests in its employees and company all but $2. The majority portion of the company's profits are reinvested into programs that transform the lives of the less fortunate, by providing clothing, medical care, mental health care, educational training and new job training to our employees.
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Applicable employees shall be provided by Cozy Inc's partnerships with local care providers to the homeless in each community where Cozy Inc establishes manufacturing operations. By working closely with local governments and service providers to the homeless, Cozy Inc will create a supply channel for homeless Veterans, young adults and women escaping abuse at home, street addicts searching for a way out and employees who due to circumstances have found themselves beyond society's safety net. Cozy Inc recognizes that many of these referred employees may participate on an infrequent and irregular basis, with only a certain percentage being emotionally able to take advantage of the various programs for additional educational/career job training. Through Cozy Inc's relationship with both independent and government assistance providers, it is hoped that the most applicable individuals will be funneled through to Cozy Inc for employment, and that a reasonable percentage of these employees will become dependable and stable employees that can then move on to further educational and/or job training trade skills. However, Cozy Inc shall also provide jobs to those which, due to various factors, are only infrequent undependable employees. These jobs shall involve non-skilled positions which shall provide income and services support to this populace, if just for a short period. It is hoped that through this interaction, a certain percentage of this group will eventually be able to transition to dependable employees who can take advantage of Cozy Inc's employee betterment programs.
Cozy Inc's programs shall consist of the following:
1. Local acquisition-All of Cozy Inc's materials shall be acquired whenever possible from local suppliers in the community where manufacturing services are located.
2. Employee Acquisition Point-All Cozy Inc manufacturing plants shall be located in the USA cities and neighborhoods where the homeless are most prevalent, whenever possible. The manufacturing facilities shall be acquired at reduced costs through partnerships with local governments and/or private care providers in these cities neighborhoods.
3. Scale To Size-Each Cozy Inc manufacturing facility shall be sized to be no larger than 200 manufacturing employees. This policy will allow for Cozy Inc's management and programs to provide maximum focus on the employees and their progress in Cozy Inc's programs, as well as provide Cozy Inc manufacturing locations in as many cities and neighborhoods through out the USA where the homeless exist in large numbers.
4. Employee Support Programs-Each Cozy Inc manufacturing location will work with local government and private care providers to supply the following support services to all employees who wish to take advantage of these services: Clothing Assistance, Medical Care, Mental Health Care, Exercise Programs, Breakfast Program, Lunch Program, Housing Assistance.
5. Employee Enrichment Programs-Cozy Inc's "8 for 6" program will be available to all employees who maintain one full month of reliable attendance and job performance. The "8 for 6" program provides eligible employees with eight hours of pay for working only six hours per day. The other two hours must be used by the employee to attend a certified educational or trade skills program in the local community. It is the intention of this important program to move applicable employees out of Cozy Inc and into a career position and independent life style as a contributing member of their local community.
2.1 Company Ownership
Cozy Inc, is a privately held corporation that is solely owned by its founder, Mr. Bill Kuypers. The company was incorporated as a Limited Liability Corporation in February, 2013.
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2.2 Start-up Summary
Total start-up expenses for Cozy Inc are estimated in the tables below. To date, the majority of these expenses have been financed by direct owner investment; however, Cozy Inc is seeking to secure additional first round funding through a Financial Partner which will cover the majority of the company's start-up expenses.
The Start-up period for Cozy Inc will last for two months upon receiving full funding.
Most expenses are typical start-up expenses and include, but are not limited to, the following items:
• Legal (Business Incorporation Filing and Taxes)• Business Planning/Development• Consulting Fees• Advertising/Marketing• Research and Development• Business Cards, Letterhead• Telephone/Internet Expense• Postage/Shipping• Business Insurance (Initial Policy)• Initial Rent• Decorating/Remodeling/Repairing• Office Equipment• Manufacturing/Distribution• Prototypes• Web Design• Reference Materials• Business Travel to Big Box Channel Partners• Expensed Equipment
Assets to be purchased during start-up include:
Start-Up Expenses 40 Prototypes: $2,000
• Prototypes for providing to Sales Reps, Channel Partners, Retail stores: $2,000
Start-Up Expenses Website: $5,000
• Will use online coders and website hosting provider: $5,000
Start-Up Expenses Three Months Salaries: $21,000
• For manufacturing & ops manager, see Personnel Table: $21,000
Start-Up Inventory: $4,000
• Raw Material for completing roughly 400 Computer Cozy's, including scrap: $4,000
Start-Up Product Packaging: $8,000
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• $6,000 one time charge for package design/set up and 1,400 boxes: $8,000
Start-Up Assets Other Current Assets: $2,000
• Office Furniture tables, chairs, etc: $2,000
Start-Up Assets Long Term Assets: $8,000
• Printers, Laminators, Laminator Cutters, Work Benches, Assembly Fixtures, Computers, Fax, Copiers: $8,000
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal-Business Filing, Incorporation, Patents, Trademarks $6,500Three Months Salaries $21,000Business Cards, Stationary, Logo $2,000Two Months Rent $3,000Telephone, Internet, Power, Gas $500Business Insurance $300Office Supplies $450Web site design and 3 months hosting $5,000Business Travel $3,00040 Prototypes $2,000Product Packaging-One time print/box set up & 1000 boxes $8,000Petty Cash $300Other $200Total Start-up Expenses $52,250
Start-up Assets
Cash Required $5,000Start-up Inventory $4,000Other Current Assets $2,000Long-term Assets $8,000Total Assets $19,000
Total Requirements $71,250
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Chart: Start-up
3.0 Products
Cozy Inc offers a collection of consumer goods beginning with the Computer Cozy. This product is a lap desk using a special memory foam product for the bladder and patented assembly process using no screws or metal creating a fully green product. Computer Cozy provides a high resolution PVC top work area for endurance which allows photo images to be insert underneath for viewing, an incredibly comfortable lap desk using memory foam in a 10 ounce pre-washed ultra suede material with a large 16" x 12" stable surface for using computers, reading books or eating a meal in a seated position in bed, on a couch or in a vehicle or meeting room.
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(Computer Cozy Ad Product Insert)
Cozy Inc will start out by utilizing a branding arrangement of a major cloth sewing and foam manufacturer in the USA since the foam filled bladder is made of soft ultra suede material. The sales channel will be primarily online and B2B retailers in the USA. Additional Computer Cozy's will be sold on the Computer Cozy website where customers can send personal digital photos which for a fee, Computer Cozy will use as the photo top of the lap desk for a customized Computer Cozy.
4.0 Market Analysis Summary
The recent national and international economic slowdown has reduced consumer confidence, which has led to a renewed search for value in consumer products. At the same time, the recent concern over energy and the environment have created a consumer demand for "Green" products". Coupled with the recent selfish greed exhibited by some companies in certain segments, consumers are attracted to companies and products with a "Social" conscience. In addition, the recent trend of wireless connectivity has escalated and migrated from the office to the home and school, with the use of notebook and portable computers, DVD's and other devices overshadowing directly connected products.
In regards to wireless applicable Green products which are of great value provided by a company with a Social conscience, Cozy Inc is clearly in the lead.
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4.1 Market Segmentation
Cozy Inc intends to target adult men and women as well as High School and College Students in the USA who desire a high quality competitively priced, branded lap desk. Within all groups, there are no color barriers and customers have diverse backgrounds. Briefly stated, these consumers range between 16 years and 60 years of age.
According to DisplaySearch, 2008 is the first year where worldwide sales of portable computers were greater than desktop computers. This development is contributed to greater user mobility, larger sales to home and small office users as well as the increased use of wireless networks, along with a reduction in the overall cost of portable computers.
In the market analysis table, based on the US Census Bureau ACS survey dated 08/2008, there are currently over 20.5 million undergraduate and graduate students enrolled in USA colleges and universities. There are 17.5 million students enrolled in grades 9 through 12 in public and private High Schools. Cozy Inc subjectively estimates a very conservative capture rate of .008 for College students buying Computer Cozy and .004 for High School students, due to their lower levels of discretionary funds.
For the market segment of USA Adults based on the CIA World Factbook of 06/2007, their are roughly 89,881,041 males between the ages of 20 to 64 and 90,813,578 females in the same age range. Cozy Inc believes a conservative percentage of .004 of each group will purchase Computer Cozy.
The last market segment that Cozy Inc identifies as a realistic target segment is portable Notebook computer users. Although all of the above groups contain mobile computer users, Computer Cozy's usage as a lap desk for eating, reading, portable DVD players as well as other uses provides the logic behind the additional consideration of mobile computer users as a separate identifiable buying group. Based on Display Search's report by Ben Chen of 08/2008, the USA will have purchased 42,138,000 notebook computers in 2008. Cozy Inc feels confident that at a minimum one percent of this population will purchase a Computer Cozy for use with their notebook computer.
Per the accompanying market analysis table, sales at the estimated percentages would provide an estimated first year sales volume in 2009 of 1,378,158 units.
Target MarketUSA Total Number
Acquisition % Units Sold
USA Men 2007 (20-64 Years) 89,881,041 .004 359,524
USA Women 2007 (20-64 Years)
90,813,578 .004 363,254
College Students in USA 20,500,000 .008 164,000
High School Students in USA 17,500,000 .004 70,000
Notebooks Sold in USA (2008)
42,138,000 .010 421,380
Sum Total 2008
1,378,158
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Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
USA Men 2007 (20 to 64 Years) -CIA World Factbook, 06/07 (@ .004 capture %)
10% 89,881,041 98,869,145 108,756,060 119,631,666 131,594,833 10.00%
USA Women 2007 (20 to 64 Years) -CIA World Factbook, 06/07 (@ .004 capture %)
10% 90,813,578 99,894,936 109,884,430 120,872,873 132,960,160 10.00%
Total 2007 College Students in USA, Under&Grad -US Census Bureau, ACS, 08/08 (@ .008 capture %)
10% 20,500,000 22,550,000 24,805,000 27,285,500 30,014,050 10.00%
Total 2007 High School Students in USA, 9-12 -US Census Bureau, ACS, 08/08 (@ .004 capture %)
10% 17,500,000 19,250,000 21,175,000 23,292,500 25,621,750 10.00%
USA 2008 Notebook Computers Sold -Display Search, B.Chen, 08/08 (@ .01 capture %)
10% 42,138,000 46,351,800 50,986,980 56,085,678 61,694,246 10.00%
Total 10.00% 260,832,619 286,915,881 315,607,470 347,168,217 381,885,039 10.00%
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
With the increased usage of mobile computing migrating from the office to the home, as well as the associated implementation of wireless connectivity, Cozy Inc is confident that the usage of Computer Cozy by a conservative percentage of this large group is assured.
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Due to the Computer Cozy deflecting the heat discharged by notebook computers onto the users lap as well as providing a stable and very comfortable work surface that can be used anywhere, the sales of Computer Cozy to the defined market segments is reliable based on acquiring the channels of retail distribution.
It should be noted that both Apple Computer and Medical reports recommend NOT using notebook computers directly on your lap due to excessive heat which can burn you and reduce male fertility as well as the danger of exploding batteries.
4.3 Industry Analysis
The computer accessories industry is separated into electronics peripherals and non-electronic products. Examples of electronic peripherals include printers, external disk drives, LCD displays, external mics and keyboards as well as docking stations. The non-electronic products include items such as lap desks, LDC display cleaners, LCD display and computer covers and wraps, computer carry bags other notebook computer maintenance and accessories. Although intense competition characterizes this industry and drives its ever-changing structure and operations, the market is highly fragmented for non-electronic products.
Since Computer Cozy will only be competing with other lap desk products, due to its usage not be relevant to the fit, form or fashion of the other non-electronic products for computer products, only the lap desk industry will be considered.
Overall, the U.S. market for lap desk products is dominated by many small, cottage industry type companies which are highly fragmented. Most of the lap desk products sold in the United States are produced domestically, with a small percentage coming from foreign locations. Due to the small firm nature of the lap desk industry, there are no SIC/NAICS designations available to track total sales in either units or dollars. The retail channels for these companies ranges from on line web sites to small gift stores and retail outlets.
4.3.1 Competition and Buying Patterns
Competition in this industry currently turns on prices, sales channel and availability. Although no other lap desk, portable notebook computer platform, provides the features, benefits and value as well as work surface area that Computer Cozy provides, the following are the competitors Cozy Inc has identified along with their current price structure.
Competitor Channel Price Comment Photo
Wal-Mart Retail $13.00
Plastic top w/o image, small 18"x13", Bead filled bladder Only pink & purple
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Organizeit Online $16.00
Plastic top w/o image, small 19"x15", Bead filled bladder
LapWorks Online $25.00
Plastic top w/o image, small 19"x15", No Bead filled bladder, Hard to use on lap
Roomitup Online $28.00
Plastic top w/o photo image small 18"x11", Bead filled bladder
Wellhaven Online $30.00medium size surface 17"x13", Bead filled bladder
Target Retail $40.00
Plastic top w/o photo, medium size surface 17 X 13", Bead filled bladder, has light
Lavenger Online $48.00
Wood top w/o photo, medium size surface 17"x13", Bead filled bladder
In a broad view, the retail non-electronic notebook accessory industry competes with all other sectors in the retail industry. These different sectors include electronic retailers, wholesalers, other discount stores, as well as on line retail sites, and others. Many of these different sectors
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have combined together, and often, a company may operate in various divisions to increase profitability such as Wal-Mart.
2006 total aggregate CE sales were $114.5 billion and 2007 sales were $125.3 billion. That's a big upward trend and even with a weaker economy I see no reason not to expect continued growth as HDDVD is phased out, Blu-Ray becomes more popular and the cut-off of analog-only TV approaches.
The following list created by TWICE, the industry publication of record for the consumer electronics industry, details the largest retailers in the notebook computer/electronics industry in 2007:
#1: Best Buy, with 917 stores, sales increased 11.1% 2006 to 2007.
#2: Wal-Mart, with 3414 stores and 22.7% increase in sales.
#3: Circuit City, with 684 stores and a 5.9% decrease in sales.
#4: Dell, with 1 store and approximately even sales 2006 to 2007.
#5: Target, with 1591 stores and a 23.8% increase in sales.
#6: Costco Wholesale, with 389 stores and a 28.6% increase in sales.
#7: Gamestop, with 4008 stores and an increase of 32.3% in sales.
#8: Apple Retail Stores, with 177 stores and a 40.5% increase in sales.
#9: RadioShack, with 4447 stores and a decrease of 10.8% in sales.
#10: Sears, with 1765 stores and a sales increase of 1.9%.
Number's 11-20 shows how few online retailers are in the top ten, but how most of the next group are almost all online retailers: Sam's Club, Amazon.com, CompUSA (now defunct), Fry's Electronics, Newegg.com, Office Depot, Staples, Army-Air Force Exchange, Toys R Us and Micro Center.
What I find most interesting about this list is how few online retailers are in the top ten, but how most of the next grouping, #11-20, are almost all online retailers. It's a testament to the kinesthetic importance of retail outlets in the world of consumer electronics. Customers may buy their non-electronic and electronic accessories from an online outlet, but when it come to notebook computers and many of their accessories, most consumers still want to touch and see it first, to reassure themselves that it's worth the investment.
5.0 Web Plan Summary
Clearly defining the goals and plans for Cozy Inc’s website are important steps toward the company's success. Implementing a web presence as part of the company's active marketing plan is critical to the visibility of the company in its local, regional, national, and global markets, and allows the company to inexpensively advertise its products and promote sales to a variety of "virtual" customers.
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The company's corporate objectives for its website are:
• To provide current and potential customers, public relations, and media entities with an efficient, secure, interactive means by which to realize, understand and communicate with Cozy Inc and obtain relevant information about the Company, its mission, and its products.
• To provide customers with efficient, user-friendly, automated processes that allow them to easily browse the company's products and to place, pay for and provide custom photos for custom orders for products through the website, thereby effectively reducing administrative costs associated with customers securing custom Computer Cozy's.
Cozy Inc foresees its internet presence as a tool that will allow the company to effectively manage its voice to the world as well as generate high margin sales for custom products to online customers. Through the company's website, Cozy Inc will be able to swiftly respond to PR and advertising/sales demands, introduce and test new products, and get feedback from customers regarding needs and demands.
5.1 Website Marketing Strategy
It is not enough for Cozy Inc to build a website and then expect customers to flood to the company's new online presence. Since the Internet is a competitive market place that is growing exponentially, Cozy Inc’s direct competitors are also vying for product positioning and visibility to their respective customers and doing their utmost to advertise and promote their sites to the Internet's global audience.
Cozy Inc business strategy will lead the way in determining the company's online objectives for promotion and development of the website. The Internet and the technology behind it will provide business opportunities to create customer services and develop promotional opportunities that would be impossible in the "physical world."
The company will rely upon a combination of offline and online methods to promote its website. Offline methods include:
• Business Cards• Printed company Materials• Local Newspaper PR stories• Presentations to social service groups, church groups and local governments• Conferences/Events/Seminars for helping the homeless• Radio/Television/Press for PR stories• Internet/Web Journals/Blogs regarding "For Profit" charity organizations
Online marketing methods include:
• Usenet Groups• Reciprocal Links• Search term management• Search Engine positioning• Web Directories• Company Specific Domain Name• Banner/Product splash Advertising with online channel distribution partners
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Cozy Inc will ensure that the company's website carries useful product and company information that is not only interesting, but informative. This will contribute to the customer's overall positive experience on the website, as well as internally promote other sections of the site through relevant links and key search terms that are strategically placed on the page to improve Cozy Inc’s positioning in web searches and allow customers to easily find pertinent and related information. For example, if Cozy Inc provides a series of web pages that describe the company's mission, philosophy or products in detail, at the bottom of each page will be included a standard set of useful, follow-through hyperlinks, such as:
• Links on organizations to help those in need • Links to information about homelessness in America • Place an order with us now! • Read customer reviews on our products!
By investing time, effort, and money to maximize Cozy Inc’s business presence on the Internet, management can ensure that the company's website effectively promotes its products and positively contributes towards the success of the company.
5.2 Development Requirements
Realizing that every business is different, with different e-commerce needs, Cozy Inc will contract out its web development services to on line coders to ensure that the company's final website meets specific e-commerce needs. Once completed, the website will include:
• A Web hosting account.• A registered domain name• Terminal software that allows Cozy Inc to process credit cards.• A secure SSL Certificate that allows the browser to create an encrypted connection to Cozy
Inc’s website and the order entry system.• The shopping cart system which allows customers to also upload their photos for customized
Computer Cozys.• A merchant account that is tied to Cozy Inc’s checking account and allows the company to
accept credit card payments.• A payment gateway account that allows Cozy Inc to accept credit cards using automated
processing and approval with the shopping cart.• An automated order recognition and order shipment system to notify all online customers of
successful receipt and shipment of their customized Computer Cozy.
Final development costs for the entire e-commerce website will range between $5,000 and $8,000 for a fully enabled, e-commerce website.
6.0 Strategy and Implementation Summary
The company has developed a strategy that will ensure the long-term growth and success of Cozy Inc as a CPG "For Profit" charity. This strategy will continue to evolve and initially includes:
• Focusing on target markets and aggressively marketing new CPG products to establish manufacturing facilities in major cities across the USA to provide a pathway for self reliance for the homeless and disadvantage.
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• Differentiating the company's products through exclusiveness and brand awareness in cooperation with our branding partners, thereby fulfilling the promise of "A Hand Up For Hope".
• Developing partnerships with both industry leaders, local, state and national government and service provider agencies.
• Building a relationship-oriented business that fosters long-term seller/customer relationships, not "single-transaction" deals.
6.1 SWOT Analysis
Although SWOT analysis is somewhat dated, for the purposes of this business plan, the process will be helpful in crystallizing some major aspects and issues that all should be aware of.
6.1.1 Strengths
The strength of Cozy Inc is both sociological and economical.
In sociological aspects, Cozy Inc provides a new paradigm where both the employees and the channel partners as well as the end customer and branding partner become an integral part of the success of our fellow citizens. This partnership of helping others help themselves also extends to Cozy Inc's local material suppliers and the cities where Cozy Inc resides, the obvious positive benefits of removing citizens from the homeless class into the productive working class providing a tangible bond. The benefit of the positive PR that all can share in as Cozy Inc adds more products and moves more homeless citizens into self sustaining contributing members of society while acquiring a product of true worth and quality as well as creating much needed manufacturing jobs to the US economy provides a true "Win-Win" for all. The "Green" feature of Cozy Inc's Computer Cozy adds an additional incentive as it pertains to the current trend of zero carbon footprint and recyclability.
The economical aspects of Cozy Inc's Computer Cozy are based on the thoughtful design and materials selection which provide the ultimate in comfort and usability in a notebook computer lap desk. Due to this design which keeps labor time/costs at a minimum as well as material costs, while requiring a minimum skill level from the target employee group of homeless/in need employees, Computer Cozy offers the best lap desk product in features/benefits at the most competitive cost to both the distribution channels as well as the end customer.
6.1.2 Weaknesses
The primary weaknesses of Cozy Inc's Computer Cozy can be classified into two categories, partners and investment.
Partners-Due to the nature of Cozy Inc's paradigm of being a "For Profit" charitable company, the need for a reputable raw material and social service partners to allow Cozy Inc's Computer Cozy to effectively penetrate the CPG market is a necessity. Due to the requirements for stable and reliable partners, the partnership with the appropriate raw material and social services partners is important, if not essential.
Investment-Due to the paradigm of returning most of the Cozy Inc profits for Computer Cozy back into the company to benefit the employees in providing services and opportunities that are
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essential to move the employees out of the cycle of homelessness, it will be necessary for Cozy Inc to identify and secure social services partners with a strong sense of charity, civic responsibility and concern for their fellow citizens and their country.
6.1.3 Opportunities
The external opportunities that Cozy Inc's Computer Cozy can take advantage of are the result of the technology shift of computer users from fixed, wired office networking to mobile, wireless networking in the home. With the desire of wireless home users to use their wireless notebook computers in their bedrooms, home offices or in their living rooms while watching their big screen tvs, Computer Cozy provides the perfect accessory that will become a necessity for the notebook computer user.
In addition, the migration of notebook computer electronics and related non-electronic accessory sales by Big Box retailers as wireless notebook computers become a "must have" commodity, their interest in supplementing the slim margins from notebook computer sales with the healthy margins that Computer Cozy offers shall insure good product promotion, placement and support.
6.1.4 Threats
The primary threats to Cozy Inc's Computer Cozy are from off shore competitors.
It is certain that any success that Cozy Inc has will result in an on slot of off shore manufacturer/suppliers from China and other low labor, low quality producers that have no interest in the welfare of America's homeless.
Since price is king in a capitalistic free enterprise economy, even at the expense of our fellow citizens, it is keenly understood that Cozy Inc must continue to drive down costs in materials, labor and overhead while increasing our quality of output. Therefore, continuous efforts in all areas of cost reduction and control must be of prime concern to Cozy Inc management.
6.2 Competitive Edge
The primary competitive advantages of Cozy Inc's Computer Cozy revolve around tangible and intangible aspects including patents, trademark, social/ecological position and cost/benefit/features of the Computer Cozy, as well as channel market penetration and branding.
Tangible Aspects: The trademark of the name Computer Cozy as well as the PPA/Patent of using memory foam and the "all Green" manufacturing process that requires no metal screws/nails/staples provide a competitive edge against primarily cheap off shore competition. In addition, the acquisition of a strong supply partners will assure product placement and position into the Big Box retail stores will also deter market share/customer erosion by inferior off shore imitators. Finally, a competitively priced quality product with good margins at both the manufacturing and retail channel partner levels is tantamount.
Intangible Aspects: The features/benefits of the Computer Cozy product itself, as well as Cozy Inc's commitment to helping with the social concern of homelessness in America are important additions to influencing the customers purchase decision, as well as gaining distribution/promotion/product positioning. Cozy Inc is well aware that these intangible assets
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must be carefully managed, both with POS on box/in box advertising, PR, and consistent quality as well as reliable delivery.
6.3 Marketing Strategy
People typically want to think of themselves as belonging to a group that they admire or respect, and will act in the best interest of themselves and others when given the choice. Although they may believe their object is to reflect their individuality, the differences they stress in choosing a purchase are really between their own chosen group, and all others.
The "message" of Computer Cozy is therefore directed primarily to its user, USA notebook computer users. They are expressing their membership in a class of other people with whom they feel a connection, expressing it to themselves and to whomever may be looking.
Cozy Inc’s marketing strategy is based on the following:
• Product differentiation based upon "A Hand Up For Hope."• Building a relationship-oriented business where the customer feels like they are making a
positive contribution to the lives of those less fortunate.• Fostering corporate social responsibility amongst its suppliers, branding partner and channel
partners.• Focusing on the home users of wireless notebook computers as the company's target
markets.
Cozy Inc’s brand and marketing message are not directly attached to any particular group of customers, but rather to a diversified community of consumers who believe in humanitarianism and equal opportunities and choices for everyone. The company does not simply offer products that support your notebook computer, but rather products that support your community and fellow citizens.
The company's primary marketing strategy is to establish itself as the "Computer Cozy King" of lap desks. With management's deep roots in humanitarianism coupled with a firm belief in harmony and honesty in business and advertising, Cozy Inc will greatly increase the marketability of its products.
6.4 Sales Strategy
Cozy Inc’s sales team will leverage the brand partnership with B2B sales reps and Online retailers to promote and position Computer Cozy in non-electronic mobile accessories. By working hand in hand with Cozy Inc's supply and social services partners as well as recruiting applicable sales reps which have ideal relationships with the target channel retailers, Cozy Inc should be able to place Computer Cozy in a visible position in the target retail and online outlets.
A key factor in the success of Cozy Inc's Computer Cozy will be its distribution. The company plans to use the following retail distribution channels, utilizing either our sales rep relationships:
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6.5 Milestones
The following table lists important program milestones, with projected start and finish dates, the names of the individuals in charge of completing each milestone, and budgets for each milestone. The milestone schedule indicates the company's emphasis on planning and implementation of the business.
What the table doesn't show is the commitment behind each milestone. Cozy Inc’s business plan includes complete provisions for plan-versus-actual analysis, and the company will hold daily SCRUM project management follow-up meetings with key management to discuss any variances and to plan a course of action to resolve those variances.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager DepartmentDevelop Corporate Logo Week 1 Week 2 $100 B. Kuypers MarketingSubscribe to Relevant Industry Publications
Ongoing Ongoing $150 B. Kuypers Marketing
Research and Join Industry Associations
Ongoing Ongoing $200 B. Kuypers Marketing
Research Target Market and Identify Potential Customers
Ongoing Ongoing $0 B. Kuypers R&D
Develop Corporate Website Week 1 Week 10 $3,000 F. Mayo OperationsDevelop Business Plan Ongoing Ongoing $0 B. Kuypers R&DHire Support Staff Week 3 Ongoing $0 F. Mayo OperationsSecure Start-Up Investment Ongoing Ongoing $0 B. Kuypers FinanceEstablish Bookkeeping and Finance System
Week 1 Week 4 $0 B. Kuypers Advertising
Hire Production/Factory Staff Week 1 Week 4 $0 Kuypers/Mayo FinanceAcquire Production Assets Week 1 Week 4 $8,000 Kuypers/Mayo PersonnelAcquire Production Materials Week 3 Ongoing $4,000 Kuypers/Mayo PersonnelAcquire Packaging Materials Week 1 Week 4 $8,000 B. Kuypers PersonnelSecure applicable Sales Reps Week 1 Ongoing $1,000 B. Kuypers PersonnelSecure Channel Retail Partners Week 1 Ongoing $1,000 B. Kuypers Advertising
Totals $25,450
7.0 Management Summary
Cozy Inc’s management philosophy is based upon responsibility, mutual respect, and profitability, and the founder believes that the company's present and future growth is based upon:
• Exceptional People• Social Responsibility• Uncompromising Commitment to Customer Service• Excellence• Commitment to Core Values
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7.1 Personnel Plan
The following table summarizes the company's personnel expenditures for the first five years. The company believes this plan is a compromise between fairness and expedience, and meets the commitment of the company's mission statement.
Each manufacturing person can create ten (10) Computer Cozy's per hour, on average. All personnel expenses for both manufacturing and shipping are related to the unit shipment forecast found in the preceding Sales Forecast Table. All positions other than the CEO, CFO, VP Operations and VP of Purchasing shall be filled by our target employee group, the homeless.
Due to seasonality of the product, sales in December through June will be lower, with sales ramping for back to school and Christmas gift giving from July through November. Although sales will fall and rise, we are being fiscally conservative and using a maximum production employee count and expense. We realize that the goal of Cozy Inc is to move applicable personnel that are capable out of Computer Cozy and into higher paying careers through outside career/skills training, which this employee count/cost does not take into consideration.
8.0 Financial Plan
Cozy Inc’s Financial Plan has the potential of providing expansion of the business, paving the way for new investments or loans, or changing the way in which the company conducts business.
Cozy Inc’s financial objectives are:
• To secure initial start up financing from an investment partner.• Based upon market growth projections, to generate very healthy sales revenues in each and
every year.
Financial projections are based upon sales volume at the levels detailed in the sales forecast and represent, to the best of management's knowledge and belief, the company's expected assets, liabilities, capital, revenues, and expenses. Furthermore, these projections reflect management's judgment of the expected conditions and the company's expected course of action, given the financial assumptions.
8.2 Important Assumptions
Cozy Inc’s main assumptions and projected forecasts are based upon similar products and on the operational history of its competitors. Interest rates, tax rates, and personnel burden are based on conservative assumptions.
The more important underlying assumptions are:
• A weak economy, without major recession.• That there are no unforeseen changes in the wireless notebook computer industry or in the
raw materials which we use that would make the company's products immediately obsolete or uneconomical to produce.
• Access to equity capital and financing options sufficient to maintain the company's financial plan as outlined in this Business Plan.
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• That first round funding will be obtained through a combination of equity, debt, and investment strategies.
All assumptions made about the company's market are supported by industry standards, relevant market research, market trends, surveys, and personal interviews.
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