CONTACTJEWEL: A Business Plan for a Digital Payment Band Company

The assignment is a comprehensive business plan for CONTACTJEWEL, a UK-based company developing an online payment band. It includes an introduction to the product, emphasizing its unique features like easy mobile connectivity, spending limits, and a long-lasting battery. The plan outlines the company's mission, vision, and key success factors, followed by a detailed business feasibility analysis using Porter's Five Forces. It also covers value proposition, opportunity formation, including management team structure and start-up summary. The plan further describes the business and operating processes, supply chain management, market segmentation targeting business firms and individuals, and the application of entrepreneurship and innovation concepts. The marketing mix, including product, price, place, and promotion strategies (social media, YouTube, and email), is also detailed. The plan aims to provide a safe, secure, and affordable payment solution, addressing the needs of modern consumers and businesses in the UK.

CONTACTJEWEL

Table of Contents
INTRODUCTION....................................................................................................................3
Section 1. Introduction:..........................................................................................................3
Section 2. Opportunity formation:..........................................................................................4
Section 3: Opportunity development:.....................................................................................6
Section 4. Conclusion..........................................................................................................10
REFERENCES.....................................................................................................................12
..........................................................................................................12

INTRODUCTION
The online payment system is need of today's era because people want to make
payment in a quick way (Kirzner, 2015). This is so because due to it, people do not need to
carry cash as well as it is time and cost effectively. Though there are a lot of ways to make
online payment, but general public cannot make trust blindly because it can be risky.
Currently, there are many companies who are providing gadgets to make online payments.
Thus, it is resulting in tough competition among companies. While on the other hand,
customers need a type of payment system which should be secure and safe. For this
purpose, we decided to provide wireless payment band by starting a new venture
“CONTACTJEWEL” with an objective to grow in future in the aspect of online payment
industry.
Section 1. Introduction:
(a) About product:
Our key product is the online payment band which is needed by people because of
its safe and secure features.
(b) Uniqueness of product:
Uniqueness of our product has below mentioned features:
 Easy connectivity via mobile.
 It consists three led lights including amber, red and green.
 Under this, users can fix the spending limits.
 Long durable battery.
 Reduce dependency on cash or tickets.
Mission
Our mission is to offer best quality online payment band to people of UK so that
they can trust on our gadgets. As well as to another mission is to enhance the skills and
capabilities of our employees so that they can engage more effectively.
Vision
Apart from the mission, our vision is to take our company at a level of higher growth
and success. As well as to work as a team to achieve our common vision.
Key to success
The ‘ CONTATCJEWEL” digital payment band manufacturer company is providing
an online payment band which is advanced and different from previous products. As well

as this band is cost effective as compare to competitors. The company is doing promotion
in an effective manner that can be a main reason of their success. Our employees of
company will take training for enhancing own skills and capabilities to bring more
innovation.
Business feasibility
This is very crucial for companies to do proper research of external environment to
assess whether business is able to sustain or not. For this purpose, we conducted a
research to evaluate the customers demand. The research is done for some companies
such as B pay wristband, amazon, guess, tag hauer etc. As well as this research will also
help to our company in finding the future requirement of their customers that can help in
the growth and development.
Company feasibility
The feasibility of company can be analysed with help of Porter's five force model
that is mentioned below:
 Bargaining power of buyers- The customers are king of market. In the aspect of
online payment band, the other companies are selling these bands on various
prices due to this customer have more option to buy (Parker, 2018). Hence, the
bargaining power of customers of UK is high.
 Bargaining power of suppliers- The suppliers power depends on number of
suppliers available in market. For producing the advanced technology-based
payment, a lot material is required. Due to this the power of suppliers is high
because there are a smaller number of suppliers.
 Threat of substitute products- The substitute products are those which are almost
similar in feature but different in prices. These products are offered by competitors.
In the context of online payment bands, there are lot of other companies who are
providing similar product at various price. So due to this substitute products are
higher which resulting in threat from substitute.
 Competition among the existing companies- The competition among existing
companies is tough in online payment gadget industry because of easy entrance
and exit. Due to this our company can face tough challenges in future so we should
have to create effective plans and strategies.
 Threats of new entrants- There are many industries in UK in which there is no any
entry and exit barrier. Same as in the online payment gadgets manufacturing

industry, there is free entry of new firms that can be a reason of tough competition.
Basically, this is typical for new companies because they have to face a wide range
of issues.
Value proposition
Deliverable values to the customers:
The value proposition of our product is that this is an easy way to make payment as well
as our product will be provided to customers in quick time. Along with our product is safe
and customers do not need to worry about overspending. In compare to contactless
payments our product is better because contactless payments do not give idea to
customers about how much to spent during any day. Apart from it, by using our product
customers will be less stressed because of security. Additionally, the price of our product
will be affordable to customers. Below features of our product are mentioned:
 Easy way of payment
 Save of time
 Secure
 Affordable price
 Less stress to customers.
Section 2. Opportunity formation:
This is very essential for success of organisations to have a management team
(Kelley, Singer and Herrington, 2012). In our management team, there will be a head
manager who will keep an extra sight of eye on organisational activities. Along with
different supervisors for various activities so that product can be made in more effective
manner. Additionally, we will follow a unique approach in the process for manufacturing the
electronic payment. This is so because it can help us in launching a different payment
gadget which may attract to more customers.
Start-up summary:
To start a new venture, we have decided to take a place on rent at a location
wherein availability of needed resources should be enough. As well as the capital will be
used in purchasing the new and advanced equipments for manufacturing of online
payment band system.

Business process:
The business process of “CONTACTJEWEL” digital payment band manufacturer is
mentioned below:
 Assessing the need of customers.
 Analysis of gathered information.
 Creation of plan.
 Analysis of competitors plans.
 Taking suitable decisions.
 Product manufacturing.
 Product bringing to warehouses.
 Sending to customers via various distribution channels
Supply chain
The term supply chain is the sequence of process which is involved in process of
production and distribution of products (Storey, 2016). The “CONTACTJEWEL” digital
payment band company will use an effective supply chain system so that production and
delivery of their product can be managed in a better way. For this purpose, the company
should use electronic data interchange system because it is useful for keeping the cost
lower as much as possible. This system includes four types of components which must be
followed by company.
Operating process
The operating process is very important in context of evaluating the complete
activities of organisations. The “CONTACTJEWEL” digital band manufacturer company's
operating process is easy to understand. Basically, the operational process of company is
based in a systematic manner in which first company assess the requirement of online
payment bands by customers. On the basis of requirement, they design pattern of
advanced band and production department manufacture accordingly. After the production,
these gadgets are being sent to stores and as per the demand of customers provided via
shops.
Section 3: Opportunity development:
Market segmentation
The market segmentation can be defined as a process of categorising the market
into small groups, segments as per their need and demand (Zhou, 2015). The market
segment for ‘CONTACTJEWEL” digital payment band are as follows:

 Business firms- The business entities make transactions on a daily basis as well as
they make huge amount of financial transactions. To make transactions more
effectively and speedily they need a online payment system. Our product can fulfil
their requirement because the online payment band can be useful for them in
making transactions with parties in just a moment which will safe and secure.
 Individuals- Apart from the business firms, our product is targeted to individuals too.
This is so because an individual also need a quick system to make financial
transactions quickly and easily. Additionally, our product can help individuals in
removing the headache of keeping cash which can be risky.
So, these will be our two important market segments for launching the product.
Entrepreneurship and innovation:
The entrepreneurs are needed to develop more creative ideas so that opportunities
can be find out. There are various kind of opportunities such as opportunity creation,
discovery and recognition. Our new product can be effective if it is followed by below
mentioned steps:
 Solve clearly defined issues- In the context of our product, this can be fulfilled
because our product is able to solve the issues of customers regarding to privacy
and safety.
 Clear marketing features- Our product has all the features as per demanded by
customers in the market.
 Great management fit- Along with the product should be fitted in management team
which means product is needed to be accepted by all team members.
So our product is fulfilling all these three steps which shows that our product has great
opportunity.
Marketing mix
The marketing mix includes below mentioned elements such as:
 Product- We produce the products as per the need and demand of our customers.
Our product is safe and secure to make online transactions. This is so because our
product has all the features which are needed by public. Among all the features,
secure transaction is one of the most desirable need which will be fulfilled by our
online payment band. As well as our product is targeted to the business firms and
individuals in which demand of product is high. Along with the product is reusable
because it is made up by those material which can easily prepared reusable without
harming to environment.

 Price- There are a lot of competitors who are providing similar product on various
prices. By considering the price of other products, our product's price is of £15. In
this price of £15, the profit is of £7.
 Place- We are going to sell our online payment band in those area wherein,
demand is high. Below our customers segment is mentioned such as:
-Business to business: Our product will be sold via business to business because we are
linked with various companies such as amazon, e bay and other distribution channels.
With the help of it our product will be delivered directly between companies to companies.
- Business to customers- Apart from the above distribution channel, our product will be
sold directly to the customers with help of different distribution channels.
-UK areas- Along in various areas of UK, our product will be sold because there are lot of
areas wherein our product is demanded.
 Promotion- The promotion of our product will be done with help of online sources
such as:
- Social media- The social media is a kind of platform in which companies can promote
their products in cost and time effective manner. There are various kind of social media
applications such as Instagram, Facebook etc. Our product will be promoted via all these
applications because it will not only cost effectively for us but also will save time. As well
as by this we will be in touch with our customers because they can provide their valuable
feedback that can help in making strong customer relation.
- YouTube- Promotion via YouTube is also an effective way. This is so because in it we can
promote our product by uploading small videos of features (Yang, 2015). As well as it can
be an attractive manner to promote because YouTube provides a worldwide platform.
Under this, customers, can comment to us for any modification in our gadget.
-Email- We will promote to our online payment band with the help of email because this
can benefit to us. In this we can send receipt or any other information about our product.
Along with, it can help to us in making a positive strong relationship.
COMPETITOR ANALYSIS:
We have some competitors who provide similar products to customers. Below some
customers are named such as:
 Tovi Sorga- It is involved in providing contactless payment bracelets.
 Amazon- They also provide some online payment gadgets.
 Guess- This company is involved in providing wrist bands.
 Tag Heuer- They are also our competitors because of their advanced technological

watches.
 B pay wristband- Same as us they offer online wrist bands for making online
payments.
These are the main competitors of us which can compete to our plans and policies.
As well as these competitors are analysed by us so that we can make advanced steps.
Swot analysis
This analysis help to companies to evaluate the micro environmental factors. Our
company’s swot analysis is mentioned below such as:
Strengths: Our product has below
mentioned strengths such as-
 It records and stores daily
transaction information.
 This can be accessible at any
location.
 It is suitable to use with the Visa and
Master cards.
 Along with our product makes secure
and safe transactions in quick time.
Weakness: Below weakness of our product
are mentioned:
 Our online payment band is not
accepted by all stores.
 Sometimes weak internet connection
can become a major issue because
in the absence of internet
connectivity it can't work.
 The pattern of design is not so
effective. This is common.
 It takes too much time in the process
of registration.
Opportunities:
 It is forecasted that wearable
technology market will grow by £30
billion in all around the world.
 As well as according to reports,
about 105 million wearables shipped
in year 2018 which increased year by
year with 10%.
So, these are the opportunities for us in
future.
Threats:
 One of the big threats is that hackers,
can steal important information which
can lead to fraud.
 Charges which are taken by
companies is of 1% and customers
do not want to pay this.
 The Brexit can be a big threat
because they can strike for this
business.

Financial plan:
Investment (£200000)
In our online payment band manufacturing company, we are ten partners and each
of them is investing £20000. The net profit will be distributed in an equal manner. Basically,
the equal contribution is necessary in any kind of business because due to this everyone
has common right.
Cost analysis
Production cost:
 The production cost is for manufacturing a band is about £ 8.
 As well as we have wide contact to purchase the raw materials which can minimise
the cost of production.
Below budget for preparation of one piece of online payment band is mentioned:
Material required Amount(in £)
Software installation charges 3
Equipment’s 1
Silicone 3
Labour charge 2
Total 8
Fixed cost:
The product of a company can be beneficial only if fixed cost is under control (El
Madhoun, Guenane and Pujolle, 2016). We tried well to keep the fixed cost minimum as
much as possible. The average fixed cost for production of one online payment band is
about £2 which is the labour charge.
Revenue- variable cost= contribution- fixed cost= profit
Revenue projection
The key source of our revenue is sale and advertisement fees. The price of our
product is of £15. The company will focus on making relation with UK entertainment
industry in which our product will be sold £10 on special events such as festivals, events
etc. Hence, main source of finance are as follows:

 Direct sale
 Advertisement fees on our application
 Coordination with UK entertainment companies
As well as company' s budget is based mainly on funds from family, friends and banks.
Total contribution from us is of £200000. This is derived from 60000 by family and 60000
from bank. Rest of it will be contributed by us of £20000 each.
In our business the contribution from us is of £20000 so it can be considered as owner's
capital. Hence, it is important to recover this amount by selling our product on festival
season. So overall, the financial position of our company is in better condition because of
availability of enough capital.
Breakeven point
The breakeven point analysis helps to companies in providing an estimation of data
on which company cannot suffer from loss as well as cannot get profit (Lian and Yen,
2013). Our company will be able to get profit after selling of £45000 and this will be done
after three months.
Growth strategy
Our main mission is to increase the business all around the world specially in entire
UK. For this mission we are planning to export our product outside of UK. Specially, in the
Asian countries our product can be useful because there is strong need. Along with there
are no any competitors for our industry. As well as we are planning to buy raw materials
from those countries in which prices are low. The key growth strategy for our product is
mentioned below:
 Growth through diversification- This is a type of growth strategy in which companies
enter into new market with new product. It can be quite risky but more risk leads to
higher profit. In the aspect of our product we are going to expand the new product
into new market of Asian countries.
Risk:
This is important for management team of companies to evaluate the all internal
and external factors to assess the level of risk. Our company, we researched about factors
that can be cause as a risk for day to day operations. Basically, we have analysed below
mentioned factors which are risks for us such as:

 The first common risk is the arrival of new competitors.
 Risk regarding to change in techniques and technologies. Due to this we have to
expand more fund.
 Risk of change in political conditions and rules. This can be a major risk because it
is not under control for companies. If government circulate any law regarding to
online payment system, then this may impact to our entire industry positively or
negatively.
These are the main risk factors for our company which are not under control.
Section 4. Conclusion
From above project report it has been concluded that this is important for
entrepreneurs to make effective plans before launching of any product. In report, a
business of manufacturing of online payment band is concluded. The report covers about
various tasks such as business feasibility, operational plan, cost analysis etc. In the end
part of report, financial plan and risk factors are concluded. As well as this is concluded
that our product will be successful just because if we will follow all the plans and policies
as per the above description.