Business Plan for Dave Electronics: Production and Sale of Unique and Qualitative Electronic Products

This business plan outlines the production and sale of unique and qualitative electronic products by Dave Electronics, including core products, target market, marketing strategies, and financial projections.

DAVE ELECTRONICS
Dave Electronics
Insert ID number

Table of Contents:
Table of Contents
Section One A..........................................................................................................................................................4
1.1 Business summary: ......................................................................................................................................4
1.2 Describe your core product or service:.........................................................................................................4
1.3 Outline your immediate and future business aims:.......................................................................................4
Section One B.........................................................................................................................................................5
1.4 Job roles. Outline the core job roles required to run your business successfully (up to a maximum of 5) :
............................................................................................................................................................................5
1.5 Job advertisement. Create a job advertisement for one of the above roles. .................................................5
Section Two A.........................................................................................................................................................6
2.1 Describe your anticipated target market(s):..................................................................................................6
2.2 Explain the market research you will conduct in order to better understand your target market: ...............6
Section TWO B.......................................................................................................................................................7
2.3 Competitor analysis. Use market mapping to plot your competitors against two variables, then identify
your two closest competitors and analyse their strengths and weaknesses: ......................................................7
2.4 Describe what is unique about your product or service and state your USP:...............................................7
Section TWO C.......................................................................................................................................................8
2.5 Marketing strategy. Describe your marketing strategy: ...............................................................................8
Section Three A.......................................................................................................................................................9
3.1 Premises and location. State your business’s location and explain why you have decided to operate here:
............................................................................................................................................................................9
3.2 Set up costs. List the products/services you will need to acquire before commencing operations:.............9
3.3 Transport needs:............................................................................................................................................9
3.4 Legal requirements:......................................................................................................................................9
3.5 Insurance requirements:................................................................................................................................9
3.6 Other required certifications:......................................................................................................................10
3.7 Summary of fixed monthly costs (as per cash flow): ................................................................................10
Section Three B.....................................................................................................................................................11
Pricing strategy.................................................................................................................................................11
3.7. Pricing Strategy. Explain and justify your chosen pricing strategy(ies):...................................................11
Section Three C.....................................................................................................................................................13
3.8 Cash Flow Forecast. Provide a realistic 12-month cash flow forecast (use the Excel spreadsheet located
on the VLE): ....................................................................................................................................................13
3.9 Profit projections. Provide a three-year projection of total sales and net profits: .....................................14
3.10 Justification of cash flow forecast and profit projections:........................................................................15

Section One A
Business Overview.
1.1 Business summary:
The business idea adopted for the report is of production and sale of unique and
qualitative electronic products manufactured by the DAVE ELECTRONICS which will
situated in Liverpool, UK. UK government has a policy to support the newly set up
businesses in the electronic sector to enhance the business opportunities and simplify
the setting up process by providing them financial support amounting £50 million. This
financial support in the form of interest free loan for a long term period of 5 years will
provide assistance to the start-ups in the electronic sector to carrying out their
operational activities. Therefore DAVE ELECTRONICS can avail the financial assistance
provided by the UK government in the form of interest free loan amounting £50 million
for a period of 5 years. This report incorporates a comprehensive business plan of the
electronic products manufactured and delivered by the DAVE ELECTRONICS including the
core products and related services provided by the business, target market ,targeted
customers, marketing strategies and various projections regarding cash, cost and profits.
The products which will produced by the business be the unique and lavish products
targeted to the dignified class of customers(Aziz, N.M.A.A. and Jambari, D.I., 2019).
1.2 Describe your core product or service:
The core products of the business are mentioned as follows:
 Mobile devices.
 Printers and other office electronic equipment.
 Music systems.
 Wearables such as head-sets, neck-bands, earphones etc.
 Monitors and TV sets.
The services of the business are mainly in relation to the above products which are as
follows:
 Assembly and set-up services.
 Repair and maintenance services.
1.3 Outline your immediate and future business aims:
The present commercial aim of the business is to serve the qualitative electronic
products with the unique and new emerging technologies to the customers who prefer to
be digital-savvy at a premium price range. Business seeks to advertise their products on
a greater point so that people opt to buy their products. Business aims to increase their
products range with maintaining the use of emerging technologies to cater the
requirements of the customers. In the future, business seeks to enhance its customer
base and marketplace and to achieve the greater hight of the success. The main
objective of the business is to keep their customers ahead with the premium emanating
technologies in the world(Chebsi, H.B., 2020).

Section One B
Management structure
1.4 Job roles. Outline the core job roles required to run your
business successfully (up to a maximum of 5) :
Several job roles will be required to run the above business with greater
operational efficiency to achieve its mission. Job roles which will be necessary to conduct
the business can be summarised as follows:
• Market analyst.
• Technology analyst.
• Supply chain manager.
• Finance Executive
• Customer service Executive.
1.5 Job advertisement. Create a job advertisement for one of the
above roles.
Job advertisements can be considered as an important tool which will help the
business to hunt the competent and eligible human resources who will help businesses
in achieving their objectives and goals.
Dave Electronics is looking for experienced and qualified personnel for finance
executive role. Several requirements for the role are given which are as follows:
• Qualification: MBA from a designated and recognised university, CFA.
• Experience: Must have 5+ years experience in the MNC as a Finance manager.
• Must be a person with adequate analytical and professional skills(Ermida,
F.D.M.P.D.A., 2022).

Section Two A
The market/customer profile.
2.1 Describe your anticipated target market(s):
Identification of the target market will provide assistance to the business entity in
recognition of the customer base extent which will help business to maintain its stability
and profitability in order to operate in the long term period. It provides assistance in
qualitative and informed decision making for the business. It is a crucial activity for the
business to measure its customer base and the market place in which business's
products will sell and the services will be provided for development of the various
important business strategies. will target the UK market and global market for the
electronic products as well. Business seeks to achieve great recognition and success in
the target market by providing the advanced technology electronic products to the
global customer base. Business wants to capture the national market for the electronic
products firstly to get a strong recognition and then global market to cater the
requirements of the geek customers worldwide to accomplish its long term objectives
and goals. For this business is looking for beneficial and emerging opportunities which
will help to satisfy its ultimate goals to keep itself sustainable and profitable in the long
run(Council, B.B., 2021).
2.2 Explain the market research you will conduct in order to better
understand your target market:
To serve the advanced technology products and services to the world-wide
customers business is required to conduct a comprehensive market research which will
help the business in obtaining the substantial information regarding customer needs,
their preferences, economic and geographical requirements, technology requirements
etc. It will assist the business to adhere with their ultimate business objectives and
management strategies. A deep market research is indeed for a electronics business to
gather information and data about their potential customer base world-wide. It will act
as an crucial measure to counter the different economic and geographical conditions in
order to achieve higher efficiency and effectiveness in conducting business operations
which might affect the business policies and procedures. It is required to be conducted
by the competent personnel of the business which have enough knowledge about the
market and the industry in which business is operating. It is an integral process for the
newly set up businesses.

Section TWO B
Competitor analysis
2.3 Competitor analysis. Use market mapping to plot your
competitors against two variables, then identify your two closest
competitors and analyse their strengths and weaknesses:
Competitor analysis will provide substantial information to the business regarding
the business competitors which will assist it to analyse their market strategies, strengths
and weaknesses in the national and global electronic industry. Market mapping is a
strategic technique to research about market and competition in it. Dave Electronics is
required to strengthen its quality of the products and maximise the use of emerging
technologies in the market to strongly and strategically compete against the strong and
competitive market participants. Apple and Samsung two are the most closet
competitors of the business which are operating in the same industry as of the Dave
Electronics and catering the same customer base worldwide. Strengths of these strong
competitors are expertise in manufacturing electronic products and the overall goodwill
earned by running the business over a long period. It will be hard to gain customers faith
in a short period of time for the business products. Similarly, weaknesses of these two
strong market participants are controlled and limited advertisement in the market and
lack of the competitive comprehensive hardware and software platforms(Prasetyo,
2018).
2.4 Describe what is unique about your product or service and
state your USP:
Electronic products manufactured and specialised services rendered by the Dave
Electronics are the products which will keep ahead their techno-savvy customers with
new emerging technology in the whole world. Products and services of the business will
be provided in the national and global market at a premium price range set by the
business management to cater specially those regal customers range who prefers
technology advancement rather than price comfortability. The USP of the business
products is the extreme quality and technology-advancement for the techie customers
world-wide at a premium price range(E.,Pusiran, and et.al., 2021).

Section TWO C
Marketing
2.5 Marketing strategy. Describe your marketing strategy:
Marketing strategy can be defined as a game-changer for a newly set up business
as it plays an essential role in reaching out to the potential customers for the business
products and services. The marketing strategy that fits for the business plan of Dave
Electronics will be its promotion strategy. As the industry in which the business will
operate is a highly competitive industry therefore for this type of industry it will be
beneficial for the business to have an extra-ordinary promotion strategy which will make
the customer informed about the unique product and service range of the business.
Along-with this it will also help in gaining the customer's trust for the products and
services of the business(Springer, A. and Hironaka, C., 2020).

Section Three A
Operations and logistics
3.1 Premises and location. State your business’s location and
explain why you have decided to operate here:
Dave Electronic will situated in Liverpool, UK. Its head office and the largest main
manufacturing unit will be situated in Liverpool as the geographical and economic
conditions are best here to operate the business. It will also plan to acquired various
showrooms through which company's products and services will make available to the
customers in the London, Bristol, Manchester, Glasgow, Austin, New york, Singapore,
Boston, Mumbai, Delhi, Dubai, Berlin, Munich, Madrid, Barcelona and Geneva.
3.2 Set up costs. List the products/services you will need to acquire
before commencing operations:
Product/
Services
Supplier Est.
Cost (£)
Plastic Superior Ltd. 30000
Silicon Silicon Steels International 15000
Magnetic
Materials
Geneva Industry 25000
Other
Semiconductors
Bitts Hops 45000
Repairing
Services
Munich Plants 25000
Bulk Gases Original Simulators Ltd 3000
Testing Services Special Electronics Private Limited 74000
3.3 Transport needs:
Dave Electronics required to transport its products through the road transportation
from the manufacturing unit to it showrooms. Along-with that it required to use sea
transportation to export its products in the different countries.
3.4 Legal requirements:
Dave Electronic will be established in the form of public company located in the
UK. It is requirements to maintain several documents to comply with the legal and
regulatory requirements of the UK as well as different countries in which business will
operate.
3.5 Insurance requirements:
There will be some insurance requirements for the Dave Electronics to ensure the
safety of its human resources, its products , premises from where the operations of the
business will operate.

3.6 Other required certifications:
Radio Equipment Directive (RED): Conformité Européenne “CE RED” it is an
certification requirements regarding electronic devices in the European market. Similarly
Electromagnetic Compatibility (EMC) is an another certification requirements for the
electronic products in the European Market. Dave Electronics is required to obtain these
certificate for their product in order to comply with regulatory requirements. There can
be other certification requirements of other countries as well which will be required to
follow by the business.
3.7 Summary of fixed monthly costs (as per cash flow):
Items Costs
Salaries of Employees 55000
Labour wages 25000
Financial Accounting 15000
Rent of Showrooms, Outlays 65000
Telecommunication services 20000
Advertisement Cost 84000
Plant and Machinery 12000

Section Three B
Pricing strategy
Product/service name ( Select a single unit) Dave Music System
Cost to your business per unit 3000
Price you charge per unit 4800
Profit margin (£) 1800
Profit margin (%)
(Profit / Price x 100 = Profit margin)
37.50%
Mark up (%)
(Profit / Cost x 100 = Mark Up) 60.00%
3.7. Pricing Strategy. Explain and justify your chosen pricing strategy(ies):
Price strategies are the processes and procedures used for determining the optimum prices for the products and services
offered by the business concern. Business required an efficient and effective pricing strategy which align its objectives and
goals. The pricing strategy should follow by the Dave Electronics is skimming pricing policy which helps to align the business
objectives of Dave Electronics. Skim pricing strategy is used for the products to skim the cream of the marketplace having high
prices in the introduction and growth period of the product. Management of the Dave Electronics undertake the demand factor

for its products and it founds that the demands for the products and services of the company will be inelastic in the
introduction and growth period of the products and services. It will based on the considerations taken into account regarding
the needs of the lavish customers. The profit earn by the company in its initial period will cover its high research and
development cost of the products and services of the business.

Section Three C
Cash Flow Forecast and Profit Projections
3.8 Cash Flow Forecast. Provide a realistic 12-month cash flow forecast (use the Excel
spreadsheet located on the VLE):

3.9 Profit projections. Provide a three-year projection of total sales and net profits:

3.10 Justification of cash flow forecast and profit projections:
Dave Electronics prepared its cash flow statement by taken into account the high cost incurred in the initial years of its
start-up in the form of research and development cost, manufacturing cost, advertisement cost, business promotion cost, legal
and regulatory cost, plant and machinery cost etc. Similarly the profit projection are prepared with taken into account high
profits earned by the company in the initial period.

References
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Appendix