Real Eyestate: Business Plan for New Venture Development

This business plan outlines the development of a new venture called Real Eyestate, which aims to revolutionize the real estate industry in London by incorporating VR technologies. The plan includes a management team, company details, business idea, products and services, competitive analysis, market analysis, and marketing strategy.

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Business Plan/ New Venture
Development

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Executive Summary
Real estate business in London has been one of the most successful industries in the region.
“Real Eyestate” is a name of the company on which this business plan is going to be made.
This company has a unique idea to bring the use of technologies in construction business.
They are taking the help of VR technologies for improving the hunting experience of the
customers. Consumers can sit in their homes and utilise VR glasses for improving the
customer’s experience. This report shows that competition in the industry is high and hence
taking the help of such technologies can give them advantage over the others. Creating value
can only be possible when the training is given to the employees appropriately. Company has
opportunities in the Luxury property market. The action plan and financial plan has been
provided in this report.

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Content
s
Management Team.....................................................................................................................2
Company details.........................................................................................................................2
Business details..........................................................................................................................3
Outline of the business Idea...................................................................................................3
Description of products and services......................................................................................3
Key features & Benefits.........................................................................................................3
Value preposition....................................................................................................................3
Competitive edge....................................................................................................................3
Economic Overview...................................................................................................................3
Competitor Analysis...................................................................................................................3
Industry analysis.........................................................................................................................4
Characteristics of UK’s Real Estate industry.........................................................................4
Consolidated or fragmented...................................................................................................4
Growing or decline.................................................................................................................4
Porter’s five forces.................................................................................................................4
Market analysis..........................................................................................................................5
Marketing Strategy.....................................................................................................................6
Pricing........................................................................................................................................7
SWOT analysis & Contingency Plan.........................................................................................8
Operations plan..........................................................................................................................8
REFERENCES...........................................................................................................................9

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Management Team
The management team consists of:
Name Job responsibility Previous industry
experience
Educational
background
Jason Marketing and Sales
manager
2 years PhD In marketing
and sales
Roy Technical head 3 years PhD in Advanced
Virtual
technologies
David Business head 5 years Master’s in
business
administration
Mike HR 2 years Masters in HR
management
Company details
Values
They aim to change the quality of living standards of the people while ensuring that
sustainability is achieved by incorporating the best technologies in their business solution.
Vision
Their vision is to change the customer’s experience in the real estate industry by using
advanced technologies and to provide comfort to people while they look for homes.
Mission
 They aspire to change the world of real estate by providing new kinds of experience
to the customers by taking use of technologies such as VR glasses.
 Company also has a mission to reduce the time of the people in seeing properties and
making purchase decisions.

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Aims & Objectives
 Specific: They aim to enhance the use of technology by 100% in the process of
searching properties for their customers.
 Measurable: They aim to increase the sale of the products by 20% till the end of 2020.
 Achievable: Company aims to increase the profits by 30% by the end of 2020.
 Realistic: They aim to provide training to their employees in the next 6 months about
the way VR can be used.
 Time-bound: Company aims to add 30% increase in the market share by the end of
2020.
Business details
Outline of the business Idea
“Real eyestate” is an emerging company in the London real estate market. They aim to
enhance the use of technologies such as VR to improve the ways in which customers check
out different properties. It aims to make home hunting easier, attractive and make the
experience efficient.
Description of products and services
 Position in the market: They have positioned themselves as a real estate company that
is using advanced technologies in their processes.
 Feasibility analysis: London is a technologically advanced market hence utilisation of
technologies will be easier. Since the advancements in the technologies such as VR
glasses are increasing hence it is feasible to implement it in the real estate business
also.
Key features & Benefits
It gives benefit to the people that they do not have to go each and every place for property
hunt. They can sit back in home or selling points like Supermarkets and watch all the
properties in a 3D view with the help of technologies such as VR glasses.
Value preposition
A higher amount of time of people gets wasted because they had to hunt the properties by
going there (Vanags and Butane, 2013). Their major target segment is Elderly people,
students, disabled individual and workers. Customers will attract towards their business

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because they use VR glasses for showing properties to the customers rather than going to that
place which a person has to do when they purchase from their competitors.
Competitive edge
“Real Eyestate” has a competitive edge because they are making the hunting process of the
customers easier without many problems.
Economic Overview
The macro-economic environment of UK is not so well. In the past decade or so, there is
downfall in the growth of the economy of UK. However, it has recovered from the financial
crisis of the 2008-09 but still the challenges for the economic health of the country seem to be
increasing. The growth had been sluggish. This is also because companies are investing in the
new developing nations that are having lesser cost of operations. UK’s government is also
making cost cuts in many governmental programs. The decision such as Brexit is a result of
it. Due to this decision there are bigger challenges confronting UK’s economy such as finding
new investors especially the ones coming from other nations (Falkenbach, Lindholm and
Schleich, 2010). This will have negative impact on the business as Real estate market
requires huge amount of money for its operations. Investors are not willing to invest in the
out of the box ideas and they are waiting for finalisation of Brexit decisions. Government’s
plan for investments in the IT technologies does not seem to support the virtual reality
technologies. Most part of the research is done by the private investors.
It is assumed that current economic conditions of UK is not so good for investment but being
a developed nation, in future the growth of the economy is expected to be high especially
with the sustainability practices adopted by UK government (Warren-Myers, 2012).
Government is taking all the measure to bring the economic growth on track. Government is
trying to bring investment from the companies that are from the emerging companies. This is
because many of the Chinese and Indian firms are in search of new markets. Due to presence
of many reputed companies in UK, the chance of more investment in the VR technology
increases in the coming years. The construction industry is very much likely to receive a huge
amount of investment from the external sources.

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Competitor Analysis
There are large numbers of competitors present in the market (Lyne, 2013). Some of the
indirect competitors which are probable to use this technology in the future are:
 Deloitte Real estate: This is a company that offers a breadth of capability and uses
innovative approach to deal in the market. They utilise their financial and business
advisory expertise for delivering integrated solutions (Deloitte, 2019). They are also
known for using technology as their base for business. Their strength is the amount
and quality of resources they have while their weakness is that their growth has been
slow.
 Chestertons: They are another big competitor of “Real Eyestate” who has focused on
providing different types of products for their clients at different price range at
different locations in London (Chestertons, 2019). Their strength is the quality and
variety of properties they have while their weakness is that they have not done
advertising as much as their competitor’s did.
 Knight Frank: It is another big real estate firm in London that is a threat to “Real
Eyestate” as they offer properties at each and every location of the London according
to demand for distance for the people (Knight Frank, 2019). Their strength lies in their
branding but they lack in terms of selling luxury properties and making houses that
are environment sustainable.
 Pastor Real Estate: They are giving indirect competition to the “Real Eyestate” as
they are one of the biggest agency that sells both new properties and ones that are old.
Their strength is selling of luxury properties while they lack in terms of using
advanced technologies in their business (Pastor Real Estate, 2019).
They all are not using this kind of service right now but all these indirect competitors may get
converted into direct competitors by using VR technologies in future. It is also possible that
the companies that are in the business of the VR technologies also come in this industry and
can give direct competition to the “Real Eyestate” as they have a better understanding of this
technology.
Industry analysis
Characteristics of UK’s Real Estate industry
UK’s real estate market is moving towards higher use of technology.

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 This industry has become very much competitive and the amount of growth in the
market is a major reason for attracting the new companies (Ferm and Jones, 2017).
 This industry is highly supported by the luxury properties as such properties are
enhancing the profit margins of the company (Gu and London, 2010).
Consolidated or fragmented
This market right now is fragmented as there are many big and small companies existing in
the industry. It is estimated that it the future the industry is going to get consolidated (Chegut,
Eichholtz and Rodrigues, 2013).
Growing or decline
In spite of the uncertainty about the decisions such as “Brexit”, there is a huge investment
seen in the real estate business of London. But on the overall sadness can be seen in the sale
of properties where a downfall of 19% can be noticed (Zhang, et al. 2010). At the same time,
home hunting rate has increased by 5% (Baker, 2019).
Porter’s five forces
 Bargaining power of suppliers: The bargaining power of suppliers is on the lower side
as the numbers of suppliers are quite huge in the region. At the same time, there are
lesser umbers of suppliers of VR glasses hence their bargaining power is on the higher
side.
 Bargaining power of customers: There are no such companies that are offering VR
solution for hunting properties hence the bargaining power of consumers is on the
lower side.
 Threat of competition: There are large numbers of small and big real estate companies
that are lying in the London market (D’alpaos and Canesi, 2014). This is making the
competition to much higher levels. But the good part is that nobody has thought of
using VR glasses for their business.
 Threat of new entrants: Since lots of innovations are going in the VR technologies
hence any company with innovation capability can come into the industry (Veuger,
2018). This is pulling the threat of new entrants to be on the higher side.
 Threat of substitution: With huge innovation in technologies and availability of the
several technology platforms, the threat of substitution is on the higher side.

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Market analysis
Market segmentation will help the Real Eyestate business to serve the needs of customers in a
more cost effective way. It is become more sophisticated as firms developed greater
capabilities to serve their clients (Kindstrom, Kowalkowski and Sandberg, 2013).
In this plans, the segmentation will be done on three basis i.e. – Geographic, demographic
and psychographic.
Sort of Segmentation Real Eyestate Standards
Demographic Urban – whole live in major cities Density
Both males and females Gender
Working partners, students, home
makers, elderly and disables
person
Occupation
20-70 Age
Geographic London – Super markets and
shopping centres
Region
Urban and suburban Market Density
Great Earners Income
Psychographic Middle and Upper class Societal Class
Workers – seeking for home near
work
Students – looking to start their
independent life and want to
move out from parents home
Motives
Target Segments and market
All sorts of targeted customers will be having a different need, behaviour and aspiration
towards the idea. The targeted segments include workers, homemakers, students, elderly and
disabled people. The needs of each targeted segment will be different as workers prefer to be
purchasing a home near work. On the other hand, homemakers want to explore new place to
live by their working partners, students seek for independent life by searching for economic
flats and last, elderly and disabled people look for a peaceful life in the future with greater
comfort. Purchase decisions in hunting these efficient experiences will be based on five-step

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process that includes needs recognition, information searching, identification and evaluation
of alternatives, purchase decision and then post-purchase behaviour (Tang, Chen and Xiao,
2010).
The real estate is an established market, however, the idea of VR glasses to buy or experience
a new home can disrupt the market as using this technology, both time and money of the
customer can be saved and they can gain stress-free experience by getting availability of large
extent of properties at a one place while busy with their daily routine.
Marketing Strategy
For any organisation, adopting effective and efficient marketing strategy projects a major
focus area to ensure business sustainability in the future (Singh et al, 2012).
In this case, Real Eyestate can adopt digital marketing strategy to develop awareness of its
services to all the public across London. It was found that at the beginning of 2017, the total
number of social media users in the UK had touched to 39 million users and projected to be
rose further to 42 million users (Statista, 2019). This can bring various opportunities for the
business to sell its services.
The position of the business in market can be evaluated in relation with the clients and
customers perception towards the services offered by Real Eyestate. Real Eyestate is creating
a point of difference with functional attributes by embedding VR technology to take
advantage in the real estate market. It offers an attractive and easy experience for both the
seller and buyer.
The business will reach to its target market in the following four ways –
 Product – In real estate market, the business will be done through using VR
technology and all clients and individuals can effectively exploit this technology at
one place. These people can effectively found various sorts of properties such as land,
home, flats, etc. through the help of VR glasses.
 Price – The Company can use penetration pricing strategy which is set artificially to
gain market share quickly (Zhu and Zhang, 2010). The estimated hiring price of VR
glasses is £6 for watching the properties for 10 min. However, the main focus area is
to get the consumer his/her desired property with the help of these VR glasses.

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 Place – At present, this technology can be assembled in supermarket and shopping
centre as these are visited by various kinds of people who are looking for
entertainment or shopping. It will help the firm to explore various potential and
prospective customers who can buy any real estate proper in the future. For the people
that older or are disabled, for them company is going to give home delivery services.
 Promotion - The promotion of this new technology can be made on various social
media sites and property websites like Rightmove, where large numbers of customers
visit daily to explore different kind’s properties and thus it will help them to reach the
target market. The use of platforms such as social media and the website of the
company can also be beneficial.
Pricing and financial plan
Projected Income statement
(for the months ending at 31st Dec 21X9)
2019 2020 2021 2022
Particulars
estimated customers 120 125 120 135
Service hours 6 7 6 6
estimated total service hours 720 875 720 810
Service charge per hour 120 110 115 122
Total Revenue 86400 96250 82800 98820
Less: Fixed Expenses
SALARIES 5000 7000 8000 9000
CONTRACT WITH SUPER MARKETS 15000 20000 20000 23000
MARKETING EXPENSES 5000 5000 3000 3000
STAND EXPENSES 5000 4000 6000 8000
Telephone bill 2104 2032 2154
Depreciation 12902 10712 8921
Total 30000 51006 49743.8 54074.62
Net Profit 56400 45244 33056 44745

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SWOT analysis & Contingency Plan
It is essential for any organisation to understand its internal capabilities to now that what sort of
strategies they are capable of investing in. Along with this internal analysis helps the company to
understand challenges they might face and the opportunities they have in the market to succeed.
SWOT analysis helps in understanding the internal environment of the venture.
Strengths
 Use of technology such as VR glasses. This company will be first one to invest in the
VR technologies in this industry. They also have strong business plan to properly
invest this technology.
 Innovative ideas are used in the business process. This will help them in giving
competitive advantage over the rivals.
 They have a skilled workers that is having the knowledge about the how to use VR
technologies effectively. This also includes providing assistance to the customers so
that properties can be showed to the customers as per their demands.
 Strong relationship with the suppliers will help them in providing VR technologies
and giving them technical support whenever required.
Weaknesses
 They are fresher in the market and in UK it is hard to sustain and make your name
when you are new into the business. This is also because there are large numbers of
big firms having strong customer base.
 They do not have their own VR technologies. This will not let them to work according
to their future strategies. They will have to be dependent on the suppliers for making
changes in their technology. This will also cost them high whenever they will
purchase new equipment.
 “Real Eyestate” do not have higher amount of financial base. This might affect them
in providing stability to business. This can be dangerous if the project fails. It is also
not good in the unstable economic environment within UK.
Opportunity

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 They have opportunities in the luxury market segment. This is because in London
luxury tourism is going to get at new heights. London is already having a huge luxury
market which is expected to increase in the coming years.
 They also have opportunities in the renting property business. This is because London
is a temporary home for the large numbers of people from different parts of the world
especially the students. Being an education hub property business is expected to
increase. These students loves innovative way of service hence they will be attracted
towards such services.
Threats
 VR technology still in developmental phase hence incorporating it in the business can
be a challenge. This threat becomes bigger from the fact that even the bigger firms
have not yet trusted this technology in the industry due to its less effectiveness to
deliver what it promises.
 Decreasing socio-economic condition is not attracting large numbers of people to buy
properties. This might have negative impact on the business that is totally running on
sale and purchase of properties (Economics Online, 2019.).
 Threat also lies in the fact that more companies are going to come in this industry
with the similar idea but greater resource once they see this idea to be successful
hence generating a long term business value can be a challenge for the company.
Overall strength of the company lies in its innovative approach to use VR technologies. Its
weakness is that it will have to create its brand name. At the same time they have
opportunities in the luxury property segment while threats lie in the fact that VR technology
are still in the developmental phase.
Contingency plan
They need to put important people at the important position so as to look at each and every
aspect of the business. A proper training needs to be provided to the employees so as to check
that they have proper knowledge about the utilisation of VR technologies. They need to add
new suppliers of VR glasses so that there is no chance of risk in terms of availability of
resources.

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Operations plan
It includes action plan:
Milestone Start Date End Date Budget Department
Concerned
Follow up with
business plan
designers
1/8/2019 9/10/2019 $300 Business
Development
Presentation
Material
1/8/2019 9/10/2019 - Business
Development
Suppliers
follow up
27/8/2019 11/10/2019 $200 Business
Development
Communicatio
n
22/9/2019 27/8/2019 - Marketing
Printing
materials
15/9/2019 10/11/2019 $900 Marketing
department
Construction 12/10/2019 11/14/2019 - Business
development
department
Recruitment 18/10/2019 21/12/2019 $700 Human
Resource
Department
Grand opening
party
1/1/2020 2/1/2020 - Marketing
department
Staff Training 9/10/2019 15/11/2019 $2000 Human
Resource
Department

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Chegut, A.M., Eichholtz, P.M. and Rodrigues, P., 2013. The London commercial property
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Chestertons, 2019. About us. [Online] Available at: http://www.chestertons.com/about-us/.
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Economics Online, 2019. UK house price growth cools to weakest level since May 2013. [Online]
Available at: https://www.economicsonline.co.uk/Competitive_markets/House_prices.html.
[Accessed on 3rd May 2019]

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