Business Idea For Australian Market

hi am gonna submitt the file everything is mention in that pls go carefully through that and make as per the instructions in the file

RUNNING HEAD: BUSINESS PLAN
0
usiness lanB P

usiness lanB P
1
Executive Summary
This report is based on development of a business idea for Australian market. The business
idea that is discussed in this report is smart suitcase by targeting the elite groups or business
travellers and leisure travellers of Australia. The value proposition that the product give to
customers includes digital lock, digital weight scale, tracker, virtual assistant, and security
and protection. The aim is to make travelling a hassle free experience for customers. Further,
the report cover all the expenses related to production, marketing, inventory management,
and supply chain and customer relationship. At last, the brief idea about projected sales and
profit and loss for six months is included in order to know the breakeven point and the time
when the product prove to be profitable for the company.

usiness lanB P
2
Table of Contents
Introduction................................................................................................................................3
Business model canvas...............................................................................................................3
Planning......................................................................................................................................6
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................11

usiness lanB P
3
Introduction
The business plan is considered as the document in which description of business is given
that includes nature of business, marketing and sales strategy, value proposition, target
customer, and resources required (Burns and Dewhurst, 2016). The business plan that is
described here is for Australian market. This report consists of a business idea or an
innovative product that is going to be launch in Australia in near future. The business idea is
based on technological advancement; here a genius suitcase will be launched targeting the
elite and business class group in Australia. This idea is developed by identifying problems of
frequent travellers. The product is a suitcase that has features like trackers, connection with
mobile devices, virtual assistant, digital weight scale, and digital lock to protect stuff of
traveller further the option of removable batteries are also considered in order to give
convenience experience to customers.
This business idea helps in to solve the issues related to excessive weight of luggage as
digital weight scale give indication of overweight luggage, issue of lost luggage as tracker
helps to identify location of luggage and its connection with devices help to lock luggage
when it is in hand of others or here digital lock plays an important role (Li,2017). Hence, it is
estimated that with help of this business ides issues of most of the travellers can be solved. In
the below sections, the complete business plan is described including target market, cost to
be incurred, profit margins and marketing strategies to be followed.
Business model canvas
In Australia there are few smart luggage business operators, the specifications that the
company will offer to customers are attractive and can help the company to attract business
and elite group. The smart luggage market expected to grow at the global level in near future
that benefit the company if this opportunity can be utilized and business idea can be launched
in Australia (Van Merle, 2018).
Customer segments: The customer segment for smart luggage will be leisure traveller and
business traveller age from 20-45 years, both females and males of elite and business class
group can be married or college graduates or full time employed and can be frequent

usiness lanB P
4
traveller. The customer segment for smart luggage covered people of different class, income
group and behaviour (Glaesser et.al,2017).
Value proposition: The value proposition is the value that the company try to deliver to its
customers in order to solve their problems and to satisfy their needs. The business idea that is
developed is based on providing safe and stress free travel by ensuring that luggage of
travellers can be handled and accessed by them securely and properly. The features that the
company is going to provide solve major issues of travellers related to luggage problem. The
efficient use of technology in luggage market is done as key locks or digital dial become
outdated (Wang et.al,2018).
Customer relationship: The customer relationship that can be built with the target customer
by using different ways such as through interaction with customers in order to identify their
needs and problems, by giving proper after sales services, and taking feedback from
customers. The company can use customer relationship software that helps to solve the
issues of customers through automation that further help in to build strong and trustable
relation with customers (Santouridis and Veraki,2017).
Channels: The channels that the company can use in order to communicate with customer
segments include advertising on television and print media such as business magazines in
order to aware customers about the add on features of digital suitcase or smart suitcase. The
focus of the company should be on advertising initially as this will help in to influence
customers to step in to digital era and can get truly hassle free travel experience. The second
channel that can be used by the company is surveys and reviews as this help to know whether
new idea or product is able to solve the issues of customers or need any updation. The
customers can have access to different channels for purchasing products that includes various
online channels such as Amazon and company’s website (Brown and Crosno,2019).
Key activities: The key activities in order to implement this business idea include
manufacturing, maintaining quality and technology updation. Other activities include supply
chain management, inventory management and customer relationship management (Aruna
et.al, 2019). These key activities are framed in order to deliver value to the customers. The
main focus of the company will be on production activities and supply chain management as
in order to deliver quality product to its customer the company need to deal with supplier and

usiness lanB P
5
set standard of raw material that the company require for production further all the production
operation need to manage efficiently
Key Resources: The resources required for new product development are human resources,
intellectual resources, and physical resources. The company require physical resources such
as manufacturing facilities that includes machines and layout according to quantity to be
produced annually. Further, intellectual resources include copyright for digital technology
that the company is going to use in smart luggage that cannot be imitate by others in a short
time span. Financial and human resources depend on the scale of operations and demand of
the product in near future. The company will majorly depend on human resources for its
production and technical skills requirement.
Revenue structure: The revenue for first month can be low because of less awareness
about product in the market as the company will be establishing its operations (Aboody
et.al,2018). The estimation is that the sales will grow in upcoming months as the travellers in
Australia are increasing and the target audience cover 67% of the market. Hence, targeting
67% of people of different groups lead to more revenues and sales.
The company will focus on customer centric approach and the prices for the product are set
according to the value that product will deliver to customers. Here the revenue structure is
transaction based structure; that is one-time payment by customer for product. Further, asset
sales are a way that will be used to generate revenues that means selling of finished goods to
customers or “selling the rights for a physical product to a buyer”.
ont1 m h ont2 m h ont3 m h ont4 m h ont5 m h ont6 m h
0
10000
20000
30000
40000
50000
60000
70000
ales nitsS (U )
ales nitsS (U )
Smart luggage sales forecast in Australia for 6 months

usiness lanB P
6
Cost structure: This is the last and important stage in business model as this helps in
identifying operational cost and outgoing costs that the business will incur in order to deliver
the values to its customers. The business model that is described above is value driven, here
reducing the cost is not the priority rather cost structure focus on maximizing worth for the
customer. The different types of cost that will be incurred include fixed costs, variable costs,
economies of scale and economies of scope. Fixed costs include rent, salary to managers and
supervisors and maintenance of production machine.
Variable costs that are going to incurred will increases as the production increases that are
based on the estimated sales (figure 1). The variable costs include labour, raw material, and
packaging expenses, shipping and logistic costs. The economies of scale can be attained
when level of output increases that resultant in reduction of per unit costs. At last, the
process of smart suitcases will be $329 at the initial stage at this include profit margin of 10
% on cost.
Planning
Market: The smart suitcase market will grow in near future that provides opportunity to
capture the untapped market by launching advance feature in suitcases and making the
experience of travellers hassle free. The marketing mix that the company is going to use in
order to launch smart suitcases in the market is;
Product: The new product that the company is going to launch include smart suitcase that
have following features such as digital scale weight measure, digital lock, live trackers,
connection with mobile devices, virtual assistant, and option of removable batteries are also
added on in order to give convenience experience to customers.
Price: The price of smart suitcase will be higher as the business model is value driven based.
The main mission of the company is to deliver value to its customers and for that the price
will be $329 at the initial stage in order to get the benefit from innovation. The pricing
strategy used here is value based pricing which will be increased if more technological
updation and customization is done.
Place: The place or where product is accessible by target customer easily in Australia
includes online shopping platforms, stores and malls. The company will display products on

usiness lanB P
7
ecommerce sites like Amazon and through its own sites. Further, the availability of product
on physical stores will be higher.
Promotion: The promotion is considered as important element here as this helps in bringing
more awareness to the target customer about the product features and availability in the
market. Promotion mix includes both online and offline channel of communication such as
social media, websites, and advertisement on television and print media. Television ads help
in to target leisure travellers or casual travellers of different age group. Further sites like
Amazon can be used with social media marketing strategies that include content marketing,
pay per click and email marketing through that business class group can be targeted. This
promotion mix requires huge investment by the company (Schaffmeister and Haller, 2018).
Operation and Technology: The operations and technology focus on improving the
customer experience, brining efficiency in operations, reducing security and technical risks,
and engaging and developing employees. The technology that is used in manufacturing or in
product includes digital locks and digital weight scale that can be import from Singapore,
after that for trackers and GPS settings the company need to partnership with some software
companies (Drossel et.al,2018).
Operations for production of suitcase includes managing inventory and raw material so that
excess inventory cannot be stored this will reduce the storage and maintenance cost. The
production process starts with arranging of raw material and end when assembly of products
are done to deliver the final product. The operation management activities include handling
of machines, ideal work time, and physical resources (Stephens, 2019). Here for
manufacturing of suitcase the main factor is quality, the main focus will be on delivering
quality goods to customers. At last, management of supply chain includes supplying finished
goods to the final destination that are directly to retailers or to distribution centres from
manufacturing unit. In a nutshell, all the processes of production will be technology driven
or based on capital intensive technique. Further, different software will be used to control
cost, manage inventory and tracking the efficiency in production process.
Human Resources: The human resource plays an important role in manufacturing units for
supervision and management of operation (Kehoe and Collins, 2017). From production to
selling human resources are required, the company need to hire employees that are tech savvy
and can work on various software. Such as customer relationship management, inventory

usiness lanB P
8
management and assembly of devices such as digital lock, digital weight scale, and GPS
trackers because assembly of these products require a trained personnel who have experience.
Further, managers, supervisors, and workers will increase in number as per the scale of
operation. As per the estimation of sales and production capacity one production manager
and 2 supervisors with 50 workers are required. Further, the employment rate is low in
Australia this helps the company to hire workers at low wages, that directly reduce the
operating cost of smart suitcase and increase profit margins.
Human resources requirement for smart suitcases are as follows:
Marketing or Sales Manager
Production Manager
Supervisors
Production staff/Workers
Office administrator
Financial Resources: The financial plan for sales and production of Smart suitcases is as
follows:
Fixed costs incurred on monthly basis: $20,755, average variable cost 23% and monthly
break even $26,291. Further, the estimated profit and loss for 6 months on the basis of
estimation sales is showed in table 1. The company during 1 month will be facing losses
because of huge expenses on advertisement and establishing product in the market, after than
the sales of smart suitcase will grow because people get aware about the products and
features that the company is offering. It is estimated that from s the second month sales of
suitcase will increase. Initially there will be loss of $25,000 but later on it will be recovered.
From the starting the company need to raise capital through loans from bank in order to meet
working capital requirements. At last, the company needs to focus on long term profits and in
order to survive in the market. It is estimated that breakeven point will be achieved within 3
months and after that the company is able to earn higher return or profits from sales of smart
suitcases.

usiness lanB P
9
Conclusion
The business idea that is presented above is formed by targeting the Australia traveller. The
aim or objective of business idea is to solve the problems that travellers face regarding to
luggage. The idea of launching smart suitcase with features such as tracker, digital lock,
weight scale, virtual assistant, removable batteries, protect device feature and many more.
The value proposition that the company is going to deliver with the new idea that is smart
suitcase is quality and technology advancement in order to make travelling hassle free. The
target audience for smart suitcases are mainly business class travellers and leisure travellers.
The product will be launched at the price of $329 and available in different size and colour.
The smart suitcases will be available on ecommerce sites like Amazon, and on the company’s
website. Further, the promotion techniques that will be used to promote products include
advertisement on television and print media and through social media sites. It is concluded
that business plan that is made will be successful in targeting the Australian market and
mainly travellers in the country as the growth of smart suitcases will be more in the upcoming
years due to digitalization in each and every field.

usiness lanB P
10
References
Aboody, D., Levi, S. and Weiss, D., 2018. Managerial incentives, options, and cost-structure
choices. Review of Accounting Studies, 23(2), pp.422-451.
Aruna, S., Bhavyashree, C., Suraboyana, K., Meghana, S. and Radhika, K.R., 2019. The
Intelligent Suitcase. Perspectives in Communication, Embedded-systems and Signal-
processing-PiCES, 2(10), pp.255-258.
Brown, J.R. and Crosno, J.L., 2019. Organizational control in marketing channels: a meta-
analytic review. In Handbook of Research on Distribution Channels. Edward Elgar
Publishing.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Drossel, W.G., Meinel, F., Bucht, A. and Kunze, H., 2018. Smart materials for smart
production–a cross-disciplinary innovation network in the field of smart materials. Procedia
Manufacturing, 21, pp.197-204.
Kehoe, R.R. and Collins, C.J., 2017. Human resource management and unit performance in
knowledge-intensive work. Journal of Applied Psychology, 102(8), p.1222.
Li, Y., 2017. The Design Research of Intelligent Suitcase. Journal of Digital Information
Management, 15(6).
Santouridis, I. and Veraki, A., 2017. Customer relationship management and customer
satisfaction: the mediating role of relationship quality. Total Quality Management & Business
Excellence, 28(9-10), pp.1122-1133.
Schaffmeister, N. and Haller, F., 2018. Brand building and marketing in key emerging
markets. Gabler.
Stephens, M.P., 2019. Manufacturing facilities design and material handling. Purdue
University Press.
Van Merle, S., 2018. Smart Travel, towards luggage free travelling in the future. Springer

usiness lanB P
11
Wang, P., Zhang, T. and Wang, S., 2018, November. Remote Control and Tracking Dual
Mode Smart Suitcas. In 2018 3rd International Conference on Robotics and Automation
Engineering (ICRAE) (pp. 117-121). IEEE.

usiness lanB P
12
Appendix
Product Design
Features or Specifications

usiness lanB P
13