Aqua-Tech Showerhead Business Plan - Macquarie University, ACCG 3008

This business plan outlines the strategy for Aqua-Tech, a company introducing innovative, Wi-Fi operated showerheads to both commercial and residential markets. The plan details the product's features, target market (high and middle-income individuals), and social impact, highlighting its eco-friendly design and water-saving technology. It includes a comprehensive sales and marketing strategy focusing on social media and free publicity, along with an operational strategy that includes distribution, outsourcing, and risk management. The financial plans provide P&L statements, capital requirements, and valuation justifications. The plan also addresses the competitive landscape, opportunity testing, and the company's vision for expansion and market leadership within the Australian market and beyond. The document also includes references to various research papers and studies that support the company's claims and strategies.

System04099
[COMPANY NAME] [Company address]
BUSINESS PLAN

Contents
1. Business Plan Pitch............................................................................................................................3
2. Business Opportunity........................................................................................................................4
3. Sales and Marketing strategy.............................................................................................................7
4. Operational strategy...........................................................................................................................8
5. Financial plans...................................................................................................................................9
References...........................................................................................................................................12

1. Business Plan Pitch
1.1 Written pitch
This brand offers a range of advanced showerheads to commercial and residential purpose.
The aim of product is to deliver great value with eco-friendly system. The report will come
up to introduce innovative item, which is Wi-Fi operated and it is named as Aqua Drizzle
(Jing, Zhang, Zhang, Wang, & Wang, 2017). The plan is based profitable business, which can
avail benefit to many stakeholders such as investors, customers, government, non-
governmental organisation, and community as completely because maximum profit will
contribute higher dividends to investors. The attributes of Aquatech will definitely converse
the environment by applying water saving techniques.
1.2 Visual pitch
Aqua-Tech come up with water flow control, water meter, and temperature. In this product,
the blue light will present cold water, green water will present lukewarm water, and red
represents hot water (Jackson, 2018).
The product shipping and dimensions size and diameter-
Showerhead Diameter: 5.1889 inches

Box Dimensions: 10½ inches x 4.2 inches x 6.8 inches
Ship Weight: 0¾lbs
This shower can experience knob for desired water flow after the advancement of technology.
Digital value has been installed on wall that can control thermostatic needs and temperature
gauge to run through 5 inch screen touch enabled, which allow us to maintain and adjust the
temperature according to our needs. The campaign is important to promote the product and
create awareness amongst the customers to use it.
1.3 Backer rewards
The four tier of rewards, which is being offered to the stakeholders include operations, sales,
campaigns and innovation enabled technology. People back to projects and foresee what
activities would support the product. The operational staff will include Auto cad specialist,
innovation in designing, providing the products, managing the sales process to drive the
maximum sales, assembling the spare parts of the product with an aim to deliver solution.
The value chain of the product will come up with efficient system of manufacturing, storing,
sending to wholesalers, distributing, and finally marketing the product.
2. Business Opportunity
2.1 Customer need and target market

Target market includes the potential customers to whom the business targets. The main target
market of Aqua drizzle is the high-income level people. This target market definitely likes to
keep them updated with technology and spend on luxury. Furthermore, target market also
includes middle class who often focus on money they are spending and they are attracted
towards the technology. Secondary target market have interest while adopting the trending
technology and hope for reasonable price (Akrom, & Firmansyah, 2018).
2.2 Social impact
Innovation in technology definitely come up with social, financial, and organisational impact.
Social impact can make positive change for society where high and middle level income
make successful implementation at large scale. While preparing prototype in association with
the stakeholder and cost of technology, which has indicated that customers are willing to pay.
The social impact would be fine as new product will be developed on the basis of sustainable
business model (Rezaee, & Tuo, 2017). The social impact of this product is quite moderate,
as it will help to conserve the environment, become socially responsible, and step in making
the users aware. The impact on stakeholders is quite significant as it conserves resources and
larger profits can contribute to shareholders. The advantage of using the product lies in its
features such as controlled use of water with digital water meter (Rezaee, & Tuo, 2017). This
reduces average water consumption such as average q21 head is 2.5gpm.
2.3 Relevant megatrends
After conducting trend analysis for 2019-2020 for technological equipment, bathroom
accessories will be valued at US$ 3500 million all over the world. AI has been efficiently
used where the product can predict the mood and act accordingly. 51 percent of survey
conducts states that there is a boost in AI investments, and stakeholders have noticed that
return on investment (Marketwatch, 2019). Technology has remained amongst the factor

trending while buying houses since 2017. Generation Y are tech Savvy creatures are addicted
to tech-enabled gadgets (Marketwatch, 2019). 77 percent of Y generation prefer homes with
smart phones. A high tech enabled technology can not be better tricked with few gadgets such
as Wi-Fi enabled shower that can water flow, chromo therapy, music, and steam (Rezaee, &
Tuo, 2017).
2.4 Similar successful campaign
This successful campaign will come up with product selling strategies such as managing the
distribution procedure to find the place to sell the products. There are a lot of places in which
Aqua-Tech can be placed and being offered in Rona, Ikea, and Rona to reach in the hand of
the customers and then bring goodwill to brand of product. Focus is to distribute the products
and promote it through friends, social media, promotional events, and trade shows. It can
deliver product to local wholesalers and also we can start with offering to Australian
population and ship to other parts of Australia with the help of online website. The company
can also use online platforms such as Ebay, Amazon, flipkart and shopclues to sell the
products and reduce the selling costs so that Aqua-Tech can achieve high level of profits.
2.5 Opportunity testing plan
The testing plan found that these attributes are not sufficient for Aqua-Tech from the
prototype. Therefore, in order to improve the product, the company can equip two functions
such as jet to accomplish showering preferences and rain (Sampogna et al., 2017). The
company will expand the product line such as different functions, which Bluetooth
connection, wireless connectivity, messaging, pause, and music player (Hübner, 2019). The
showerhead timer will manufacture audible alarm to indicate as predetermined volume of
water. This show can easy be placed on the place of regular shower. Shower head is installed,

measure water temperature, and then depict three types of lightning system (Akrom, &
Firmansyah, 2018).
3. Sales and Marketing strategy
3.1 Fundamentals
While creating the awareness amongst the target market, it is seen that management team can
assist to come up with solutions. The company will aim to create efficient system of
distributing and marketing the product (Sampogna et al., 2017).
3.2 Social media and free publicity
Promotion is quite significant in deciding the major part of profits and loss of product. With
an aim to conduct promotion effective, one can plan and introduce the product in market
(Seira, Elizondo, & Müggenburg, 2017). Various forms of promotion will include
advertisement operated through newspaper, internet, and social media. The core purpose is to
aware people regarding Aqua tech and tis features so that people can lead their lives easily
and this realisation can purchase the products (Seira, Elizondo, & Müggenburg, 2017).
Social media on internet especially Facebook, instagram and twitter and YouTube channels
are some of the effective means of advertisement. The posts can describe the features on
Facebook through DIY videos and Facebook pages (Jackson, 2018). It can aware greater
proportion of people in community. Some exhibitions that are placed in selective malls as
crowd campaigning, which an aim to send representatives to explain people and exploit the
benefit of product by informing how to use it. With a draw box can lead people to approach
and acquire regarding the product by creating awareness of product that have majority of
target audience. By analysing actual demo and trying it to feel to make them realise of how to
use it (Karczmarczyk, Jankowski, & Wątróbski, 2018).

3.3 Measurement and information
The measurement ensures that how marketing communication such as sales promotion, direct
marketing, advertising, and personal selling to act in such a way that they can act together as
an unified force and then create a sense of seamless experience for the customers to interact
with brand (Rog, 2020). It can ensure all the communication and other promotional tools can
connect and then equally balance it with each other with an aim to focus on consumer
(Sampogna et al., 2017).
4. Operational strategy
4.1 Operational structure
The company has divisions as far as the operational structure is concerned. The distribution
will include coordination of flow materials, purchasing, procurement of materials, sales,
order processing, inventory, transportation, information management, customer service
department, finance, and material management (Chae, Stephen, Bart, & Yao, 2017).
4.2 Outsourcing
The company will acquire whole market of Australia in terms of bathroom fixtures then it
will think of merge with other companies and extend its market in other countries too. The
company tries to become a price leader, which it is giving more advanced product while
comparing it to the competitors with convenient people (Luo et al., 2016).
4.3 Operational risks
The operational risks is quite limited as our product is eco-friendly, which control use of
water with the help of digital water measurement, which creates awareness among the
customers. The operation is quite easy as it can easily replace the normal shower and easily
can fit at that place or fixtures (Rezaee, & Tuo, 2017). It can be easily placed once you read

instruction manual, which will decrease the plumber costs. According to the research, it saves
water up to .5gpm during the shower of 8 minute while comparing it to standard showerheads
in market. Aqua tech let water flow at an average of 1.75gpm where users can differentiate it
from water temperature with the help of colour projection. It helps to provide optimal water
temperature for body shower. One does not have to wait for longer time for the hot water
through to save unused water flowing from drain (Chae, Stephen, Bart, & Yao, 2017).
5. Financial plans
5.1 P&L and Balance Sheet
The cost determinant come up with price for Aqua Drizzle, which is $AUD 50, which not
only compete on the basis of pricing but also avail value to the customers (Khanagha, &
Parvare, 2017). As per the demographics of the product that will appeal to upper and middle
level income class where the average price at retail of the shower head range within $10 to
$420.

2020 2021 2022
Sales 1,40,000.00 1,54,000.00 1,69,400.00
Miscellaneous income $28,000 $30,800 $33,880
A. Total $1,68,000 $1,84,800 $2,03,280
B. Cost of Sales $56,000 $61,600 $67,760
C. Gross Profit (A-B) $1,12,000 $1,23,200 $1,35,520
D. Operating Expenses
Building Rent $12,000 $12,000 $12,000
Vehicles on Lease (15*400) $6,000 $6,000 $6,000
Utilities $2,000 $2,000 $2,000
Insurance of operational assets $5,000 $5,000 $5,000
Depreciation $70,000 $63,000 $56,000
Marketing (crowdfunding) $5,000 $10,000 $20,000
Maintenance & Repairs $5,000 $5,000 $5,000
Payroll $500 $2,000 $2,500
Total $1,05,500 $1,05,000 $1,08,500
Operating profit $6,500 $18,200 $27,020
Less: Interest $5,000 $15,000 $15,000
Profit before tax $1,500 $3,200 $12,020
Less: Tax @ 30% $450 $960 $3,606
Net Profit AT $1,050 $2,240 $8,414
AquaTech Inc.
Profit & Loss Statement
Amount ($)
5.2 Capital requirements and funding plan
This symbolises to project costs, which includes launching and also setting the business with
few initial assets, installation cost, initial inventory, materials and equipment. One can project
to make higher profits after three years as business has to incur many start costs while
incurring sales and then to achieve (Woznowski, Burrows, Laskowski, Tonkin, & Craddock,
2017). The company has been achieving breakeven point and making higher profits by
coming up with supplier, wholesale-distribution, and engaging in other products too (Tan, &
Zhang, 2018). As an initial capital, the company will issues share capital and incur long-term
loans to start the operations. Operating revenue are revenue, which is found from consistent
operations of business incurring non-operating sources, which includes dividends and

interests are excluded The core source of operating revenues for vast majority of the
wholesale business is high sales and less cost of goods sold. More sources of the operating
revenue will include labour revenue, income from leasing, and income from renting (Tan, &
Zhang, 2018).
Assets 2020 2021 2022
Current $5,00,000 $5,00,000 $5,00,000
Fixed $7,00,000 $6,30,000 $5,60,000
Other assets $1,40,000 $1,40,000 $1,40,000
Total Assets $13,40,000 $12,70,000 $12,00,000
Liabilities
Current $3,00,000 $2,00,000 $1,00,000
Non-Current (Borrowings) $1,00,000 $3,00,000 $3,00,000
Total Liabilities $4,00,000 $5,00,000 $4,00,000
Equity $9,40,000 $7,70,000 $8,00,000
Total Liabilities & Equity $13,40,000 $12,70,000 $12,00,000
Balance Sheet
Amount ($)
AquaTech Inc.
5.3 Valuation and justification
The valuation carries asset and liabilities beared by the company to incur the production of
Aqua-Drizzle such as fixed asset of 700000 in 2020, other assets of 140000, and long-term
loans with 5 percent % of 100000, 300000, and 300000 in 2020, 2021, and 2022. These
valuation and projections are developed and created under few assumptions. As far as the
sales are considered, it is seen that it will increase by 10 percent every year, which includes
two types of items as its offerings. Overall sales will increase by 10 percent in 2021, and then
10 percent increase in 2022 based on 2021. The cost of sales is estimated at 40 percent of
total sales, which indicates the company has maintained economies of scale while
maintaining COGS. Interest on loans is estimated at 5% per annum. The deprecation is
estimated at 10% straight-line method on the fixed assets. The tax rate is estimated at 30
percent as constant for all the years (Woznowski et al., 2017).