Business Plan for AIRO X20: Flying Car for Door-to-Door Transportation

This business plan outlines the launch of AIRO X20, a personalized air vehicle for door-to-door transportation in Australia. It includes market analysis, target market, marketing strategy, financial plan, and promotional budget.

Running head: BUSINESS PLAN
Business Plan
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. The Business................................................................................................................................3
1.1 Business Type............................................................................................................................3
1.2 Business Problem.......................................................................................................................5
1.3 Business Solution and Business Name......................................................................................5
1.4 Service.......................................................................................................................................6
2.0 The Market.................................................................................................................................6
2.1 Target Market............................................................................................................................6
2.2 Marketing Strategy....................................................................................................................7
3.0 The Future..................................................................................................................................8
3.1 Vision Statement........................................................................................................................8
3.2 Goals and Objectives.................................................................................................................8
4.0 The Finances..............................................................................................................................9
Conclusion:....................................................................................................................................11
References:....................................................................................................................................13

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New Business venture: Flying Car, AIRO X20
1. The Business
Before launching a new business in market, an effective and planned business plan plays
a significant role. A proper business plan is the core map, which directs the executives towards
reaching peak of success. This very specific study has provided detailed overview about business
problem, business industry, product types and its necessary target market. The target market
strategy will also be implemented in this very specific study. In addition, three years of revenue
plan will be made in order to make the business plan successful.
1.1 Business Type
As per business overview of last five years in automobile industry, Australia is
experiencing enormous growth. In quest of maintaining door-to-door transpiration system
numerous business brands are using air vehicles to make the entire shipping method quick and
systematic (Kotler, Harker & Brennan, 2015). In order to render a new revolution of automobile
industry in the market of Australia the business experts plan to launch AIRO X20. AIRO X20 is
a type of personalised air vehicle, which can provide necessary goods and services to the
doorstep of consumers. This air vehicle can fly up to 500 miles at the highest speed of 200 mph.

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The vehicle is constituted with hybrid-electronic motors, sufficient luggage storage with
upgraded seats and seat belts (Bagautdinova et al., 2012). The vehicle is also constituted with
rear-view camera with a brief burst of extra power while flying. The aircraft is surrounded with
fold-out wings along with fix landing gear. The motors allow in moving from vertical to
horizontal position.
After the emergence of air vehicles, the business experts belonging to the market of
Australia would not have to face challenges in delivering their products and services to the
proper destinations.

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1.2 Business Problem
After evaluating the current market scenario, it has been observed that Australia is facing
challenges in terms of shipping and delivering the products and services to the customers’
destination within stipulated time due to overpopulation in road transportation (Cronin-Gilmore,
2012). The customers tend to show their reluctance in receiving the product through transpiration
system due to delayed delivery. In search of mitigate the issue AIRO X20 aims to launch a new
air vehicle by 2020 in the market of Australia.
The primary aim of business experts will be delivering the shipping materials within
stipulated time to the doorstep of customers. In addition, flying car is capable of providing safe
and environmental friendly operations to the service users. In order to control and run that
aircraft the business experts do not need to recruit a trained and qualified pilot. The cost of
manufacturing of this product is high which may become a challenging factor for the business
experts in the realm of new venture (de Luca, 2014). At the same time, the operation cost,
maintenance cost of the organization is not very high which can become a major hurdle for the
service users after purchasing the product.
1.3 Business Solution and Business Name
The proposed business solution will provide smooth and systematic transportation
services, which can easily fulfil the needs and demands of the customers. This air vehicle can fly
up to 500 miles at the highest speed of 200 mph. The vehicle is also constituted with rear-view
camera with a brief burst of extra power while flying. The aircraft is surrounded with fold-out
wings along with fix landing gear. The motors allow in moving from vertical to horizontal
position (Hogg, 2012). The air vehicle with the help of their fold up wings can reach one

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destinations to another in air. Therefore, the business experts have decided to introduce their
brand in the name of AIRO. The car is going to be launched in the year 2020 in extra large size.
As a result, the business experts have tagged the brand in the name of AIRO X20. Large number
of aviation firms has already rendered the concept of Drone, which has already launched in
market for maintaining transportation system smoother (Jones et al. 2014). However, in order to
compete the aviation firms, AIRO X20 has launched folded wing air vehicles for making their
shipping method eco-friendly along with quick delivery of services.
1.4 Service
As already mentioned the entire service method of AIRO X20 is planned to be very fast
so that customers do not have to wait for a long time in receiving services. The service providers
associated with AIRO X20 will be very much professional along with having proper
management skill and advanced technological competency. The service providers are
comfortable in maintaining both verbal and non-verbal communication (McDonald, & Wilson
2016). Consequently, the service users do not have to face challenges in receiving the products
from the concerned delivery executive.
2.0 The Market
In this very specific part, the business experts will aim to segregate the target market as
per geographic, demographic and psychographic segmentation.
2.1 Target Market
The business experts would have to focus on supply chain providers of various
geographic boundaries of providers. Instead of using road transportation, the supply chain

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providers can choose air vehicles for delivering the products to appropriate destination. In this
kind of situation, the business experts do not have to get delayed for reaching the products to the
door step of customers (Chari et al., 2014). As per demographic market segmentation, the
business experts of AIRO X20 would like to target those customers who belong to high-income
status. At the initial time, the purchasers have to invest high amount in order to manufacture air
vehicles. After manufacturing the product, the entire operation cost is moderate that can easily be
bearable for the purchasers (Mihai, 2013). People from 20 to 45 age group can be targeted for
selling this particular product. The products will be designed in such a way that customers of
different culture and psychologies do not get hesitated in using the products and services. On the
other hand, it has also been observed that the service providers of AIRO X20 would be
comfortable in dealing with the people of multi-cultural and language backgrounds and attitudes.
2.2 Marketing Strategy
Social media marketing strategy will be used in order to promote the business in different
geographic backgrounds. Social media is already existed in wide range of spheres that can easily
grab the attention of people beyond going the regional market (Solomon et al., 2014). People of
various geographical backgrounds and attitudes can get detailed overview about the brands and
its components through social media market strategy (Mohammed & Rashid, 2012). As a result,
the business experts of AIRO X20 would be able to place the brand in international market. The
air vehicles and its services would not be restricted within specific geographic backgrounds.
By uploading pictures through various social media channels such as Facebook,
Instagram, Twitter, Youtube business experts can introduce their brand in global market and gain
brand identity and image. By collecting market reviews and comments from the target customers

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the business experts can form marketing strategies and policies (West, Ford & Ibrahim , 2015).
Apart from social media marketing the business exerts would like to make direct marketing plan
as well for collecting immediate response of the target people (Mohapatra, 2013). Effective
response from the target people will help the business experts in making innovation within
products as well as services. As a result, both the service providers and service users will be
equally benefited and facilitated.
3.0 The Future
In quest of expanding the business in multi-national countries the business experts of
AIRO X20 would like to make attractive vision statement along with setting its goals and
objectives.
3.1 Vision Statement
“To gain international image by providing quality products along with services and to increase
the number of target customers along with achieving brand awareness and identity”
3.2 Goals and Objectives
The primary goal of this specific organization is to expand the brand in multinational
country and gain international image and reputation. The service providers aim to make effective
consumer rapport in order to draw their attention. The service providers are comfortable in
maintaining both verbal and non-verbal communication (Mulhern, 2013). Consequently, the
service users do not have to face challenges in receiving the products from the concerned
delivery executive. The business experts of AIRO X20 would be able to place the brand in
international market. The air vehicles and its services would not be restricted within specific

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geographic backgrounds (Mullins, Walker & Boyd, 2012). By collecting market reviews and
comments from the target customers, the business experts can form marketing strategies and
policies.
The ultimate objectives of AIRO X20 would be as follows:
 To provide superior quality of products along with services
 To generate 5 million of revenue in three years of business plan
 To increase the number of target customers by providing extra-ordinary services to the
customers
 To gain international image and reputation by expanding the business in multinational
countries
4.0 The Finances
Balance between profit and loss:
YEAR 1 YEAR 2 YEAR 3
Sales AUD$ 50,0000 AUD$ 5,00000 AUD$ 60,00000
Expenses/Investment
Equipments AUD$ 2,0000 AUD$ 25,000 AUD$ 35,000
Necessary Utilities AUD$ 9000 AUD$ 25000 AUD$ 20000
Insurance AUD$ 1,0000 AUD$ 35000 AUD$ 15000
Rent AUD$ 1,0000 AUD$ 12000 AUD$ 22,000
Payroll Taxes AUD$ 5,0000 AUD$ 19000 AUD$ 40,000
Total Operating Expenses AUD$ 10,0000 AUD$ 100000 AUD$ 100000
Interest Expense AUD1,0000 AUD20000 AUD$ 20000

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Taxes Incurred AUD1,0000 AUD$ 10000 AUD$ 15000
Total investments (AUD$ 21,9000) AUD$ 237000 AUD$ 267000
Total Revenue AUD$ 28,1000 AUD$ 263000 AUD$ 5733000
Analysis:
From the above financial plan, it has been observed that the business experts have made
three years of financial plan in order to calculate their revenue generation progress. In first year,
the investment from the end of business expert is low which includes AUD$ 50, 0000. At the
same time the total investment cost was very much average which implies AUD$ 21, 9000. As a
result, the expected revenue generated from 1st year of investment includes AUD$ 28, 1000. In
second year, the sales volume is expected to be higher which includes AUD$ 5, 00000 and the
investment cost implies AUD$ 237000. Therefore, the total revenue in two years is expected to be
AUD$ 263000. In third year, the sales volume is expected to be high which includes A AUD$ 60,
00000 and the investment cost implies AUD$ 267000. Ultimately, the organization is expected to
gain AUD$ 5733000 profit in third year of business.
Financial plan for promotional budget:
Promotion Tools Amount
Digital Media Marketing Tools
Facebook $ 5,000
Twitter $ 4,000
Youtube $ 7,500
Total Social Media Marketing expenses $16,500

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Other Online Marketing Media
E-mail Marketing $20,000
Online Display advertisements $16,000
Other Online promotional Campaigns $28,000
Total Budget for Online Media $64,000
Traditional Marketing Media
Newspapers $15,000
Magazines $25,000
Total Print Media $40,000
TV Channels $85,000
Billboards $20,000
Total $105,000
Total Required Budget for Promotion $225,500
Analysis:
Along with rendering product and service innovation, AIRO X20 would like to make
effective promotional activities with products and service components will be introduced in
various media channels for drawing the attention of target customers. For that purpose, AIRO
X20 has estimated a promotional budget, which would enable the business experts in bearing
expenses for those fields. AUD$ 225,500 would be estimated for the promotional activities so
that the company can draw the attention of international customers.
Conclusion:
After making an in-depth market review the business experts of AIRO X20 is going to
launch their product at the mid of 2020. In quest of maintaining door-to-door transpiration

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system numerous business brands are using air vehicles to make the entire shipping method
quick and systematic. The service providers are comfortable in maintaining both verbal and non-
verbal communication. However, in order to compete the aviation firms, AIRO X20 has
launched folded wing air vehicles for making their shipping method eco-friendly along with
quick delivery of services. Therefore, the outcome of the business plan is expected to be positive.

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