King's Own Institute BUS302: Smart & Secure Business Plan Report

This report details a comprehensive business plan for Smart & Secure, an entrepreneurial venture proposing smart luggage bags with fingerprint sensor technology. The plan encompasses a thorough market analysis, including industry and competitive landscapes, targeting travelers aged 18-45. ...Read More

Entrepreneurship
5/20/2019
Smart & Secure

Entrepreneurship 1
Executive summary
In the present competitive scenario, there is increase in the businesses by the entrepreneurs as
they engage in competitive world by offering their products to the clients present in the market.
The report is prepared with the aim that a group of entrepreneurs are willing to open a business
with the name of Smart & Secure that shows the product and its features. The company is
offering the Smart luggage bags in the market with the new feature of the fingerprint sensor. The
findings of the report contain the facts linked to corporation, its mission, vision, strategies, and
the financial plan. The findings show the financial plan and marketing strategies of the corporate
in the marketplace of Australia.

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Contents
Introduction......................................................................................................................................4
Business idea...................................................................................................................................4
Logo.............................................................................................................................................5
Mission........................................................................................................................................6
Service Offering...............................................................................................................................6
Market analysis................................................................................................................................8
Industry analysis..........................................................................................................................8
Competition analysis...................................................................................................................8
Target market...................................................................................................................................9
Primary target market..................................................................................................................9
Marketing mix...............................................................................................................................10
Product strategy.........................................................................................................................10
Pricing strategy..........................................................................................................................11
Place strategy.............................................................................................................................11
Promotion strategy.....................................................................................................................12
Mock-up of Laundry Sphere..................................................................................................14
Financial Plan................................................................................................................................14
Profit & loss statement...............................................................................................................14
Balance sheet.............................................................................................................................16

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Cash flow statement...................................................................................................................16
Critical risks...................................................................................................................................18
Brand recognition......................................................................................................................18
Competition...............................................................................................................................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................20

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Introduction
The term entrepreneurship is the procedure of scheming, initiation and running a new corporate
which often initiating a small business. These businesses are created by the persons who are
known as entrepreneurs of the company that generates the new concept in the market to attain the
profit from the product by offering it to their customers.
This report throws light on the entrepreneurial venture group that are to grow an entrepreneurial
product or service that could be commercialised. This group is to take responsibility it is seeking
the funding of $100,000.00 to add on to the present funds of $100,000.00 that is saved by the
group. This report includes the deep analysis of the primary as well as the secondary market that
is explained with the help of the market industry analysis and discussion of the marketing
strategies. The financial plan is prepared which shows the practice of the funds for the first
financial year.
Business idea
In the competitive world, the ideas of the entrepreneurs need to be unique as well as innovative
so that they can survive in the market and can give the tough competition. The business idea is to
introduce the smart luggage bag with the feature of fingerprint sensor in it. This add-on feature
of the business will help them to attract the new clients in the market. The corporate logo with
the name of company that is Smart & Secure is designed which shows the nature, products, and
services of the company.

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Logo
The logo of the business is given below which demonstrate the tagline of the business “fly
smartly with security” that suits the product that is Smart Luggage bags provided by company to
their customers present in the market.

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(Source: By author)
Mission
The mission of the business is “to provide easy and secure facilities to the customers so that they
can travel safe”. The smart luggage bag include most of the features which are required by the
customers when they travel due to which the company easy and secure bags so that they can
travel safely.
Service Offering
Smart & Secure Company is new company that offer different services in their new product in
the local market of Australia. The bag that is provided by the company is the Smart bag that
includes different features and this bag are linked with the phone of the customers who make use
of this product. The services that are majorly offered include –

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 The charging facility for mobile phones as well as for the gadgets wirelessly
 It includes the reminder that makes me remind for the things that customer left behind.
 The light up facility inside the bag when customer is at the dark place
 It includes the anti-theft alarms that notify the customer if someone tries to open or take
the bag.
 Bag provides the internet connection facility across the world.
 The bag enhances the living standard to the high-class style.
 This bag helps with the GPS tracking facility to the customers (Ledford, 2019).
 The new feature of the bag is fingureprint sensor in the device that offer the secure travel
to the customers as it will not be opened by any third person. This feature is supportive
for the customers when they find there phone is off and they do not get to know about the
anti-theft alarm.

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 The bags will be available to the customers in different sizes as well as for different
purpose that include the use of bags for luggage and for carry.
Market analysis
The market analysis is defined as qualitative as well as the quantitative valuation of the market.
The examination of market includes market size, trends, volume, value, customers segment with
the buying patterns (Drucker, 2014).
Industry analysis
Considering to the research on the Smart Luggage marketplace is predicted to spread $2,353.2
million by 2022 that is increasing at the CAGR of approx. 26.4%. The rise in the airline travel
and tourism innovation in product design and quality, demand for the IOT based application. In
addition to this, it has been found that the consumer buying behaviour has been changing with
the rise in the lifestyle of the consumers they are shifting towards the purchase of those products
that add value to their life and their daily operations (Research and Markets, 2019). In addition to
this, the rise in the worldwide travel and internet penetration are some of the major factors that
lead to the introduction of the technology requests in luggage industry.
Competition analysis
The market analysis of company includes the analysis of the competitors present in the market
that can affect the new business venture (Research and Markets, 2019). The competition will be
intense in the industry as there is presence of the competitors like Zoomlite, Bagworld and many
others who are performing their business operations in Australia. Zoomlite can give the tough

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competition to the new venture, as this company is all types of luggage bags that include the
Smart bags that can grab the consideration of all types of clients present in market.
Target market
Target market is the group of people who are considered as the end-users of the products offered
by the company (Rothaermel, 2015). Thus, the company select the group of people to whom they
want to offer their products and services. The below given is the target market for Smart &
Secure company.
Primary target market
The primary target market includes that segment of marketplace that are primary market of the
company to whom they like to offer their products and services (Wilson and Gilligan, 2012).
Smart & Secure company primary target include the people who are within the age group of 18-
25 years, 25-45 years and above it with the high and medium income group.
The people who are majorly targeted include travellers, youth, adults, and people who want
products with high technology. In addition to this, many people make use of bags for their daily
operations as this depends on their purchasing behaviour towards the product. The people who
will target as the primary target include those people who believe in high social class segment.
These people maintain high lifestyle standard due to which they make the purchase of the
updated technology products.
Marketing mix
Marketing mix is the set of approaches that are used by the corporation in order to encounter
their marketing purposes (Keller and Kotler, 2016). The marketing mix strategies majorly

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comprise of the strategy connected to the product, price, place, and promotion. Smart & Secure
Company should try to meet the marketing objective by implementing these strategies. Below
give is the detailed description of these strategies: -
Product strategy
Product is considered as one of the important element of the marketing mix and this product is
used in order to meet the requirements of the clients that mean it can be tangible as well as
intangible (Kotler, 2015). The product strategy that is followed by the company is unique and
innovative technology product.
The core product of the company is the smart luggage bags that are provided by company to their
clients in the market in order to meet their emerging needs for the Smart bags. The feature that
will provided by the company in the smart bags will include device charging features, GPS
tracker, electronic locks, Bluetooth connectivity, electronic scales, Wi-F- connectivity, remote
app-enabled controls and many others. In addition to this, the company will provide the

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additional feature that will include the anti-theft alarm and the fingureprint sensor that will make
the product secure for the effective use of it.
Pricing strategy
The price of the product is considered as this the amount that is paid by the customers for
purchasing the product in market of Australia. The profit of firm is linked with one of the
marketing objective of the company and this is the reason due to which the companies perform
the business operations in the market. The company will follow competitive pricing strategy in
which company will compare prices of competitor’s product available in the same industry
(Baker, 2014). Once all the prices will be comparing then they will set the price for their own
product as it include the new feature. The price that will be keep by the company will be AUD
540-600 and above.
Place strategy
The place is considered as one of the essential element as this will help the company to make the
product available to the final customers. Place is refers to as the position where the company will
offer the products as well as services to their customers (Storey, 2016). It is essential for the
company to select the proper place from where they want to sell their product so that it will be
easily available to the final customers. For distributing the products, the company need to select
the distribution channel through which they can make the product available to the customers.

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(Source: Storey, 2016)
The above given are the three major distribution channels which are followed by the company in
the current environment to make their products easily available to the final customers. Smart &
Secure will follow the three level channels for distributing the product in the market so that they
can provide their products to the end customers. It has been found that in three level channels
there is manufacturer who takes the help of the agents, wholesalers, retailers to make it available
for the final customers present in the market. The smart luggage bag with the new feature will be
available at the supermarkets and online stores so that they can easily make the product available
to customers.
Promotion strategy
The promotion is generating the responsiveness about the product and service in the marketplace.
The promotion strategy is applied by the company in order to inform the target market about
their products and services (David, 2011). The promotion is considered as one of the essential
tool that is used by the companies in order to form the strong brand image in the market. The

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companies can make use of the different tools for promoting the products that include sales
promotion, advertisement, direct marketing, digital marketing, and many others.
Smart & Secure Company will promote the products in the market to generate the awareness
about their smart luggage bags. The promotion will be done through traditional that include -
 Hoarding: - Company can put the hoardings at different places that will include the
brand name and the products that they offer to their customers in the market.
 Posters: - The posters of the product and its features will work effectively in grasping the
attention of the consumers present in the market (Chernev, 2018).
 Television: - Smart & Secure Company will promote the products through television,
which is one of the mode through which the company can communicate about their brand
to the wide range of audience.
In addition to this, the company will promote the products through online mode that will include
social media advertisement, promotion through celebrity endorsers and many others. The tools of
social media advertisement majorly include facebook, twitter, Google ads and many others (Luca
and Suggs, 2010). These might include the videos and different images related to the Smart
luggage bags, which is the primary product of the company. This mmight attract the new
customers towards the company and they would like to purchase the product offer by company.

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Mock-up of Laundry Sphere
(Source: By author)
Financial Plan
Profit & loss statement
Profit and loss statement is a company’s financial statement that displays the amount of profit
earned by the company in the financial year. The major particulars it includes are cost, revenue,
and expenses incurred by the company. The projection for the company’s financial statement has
been done which is given below for the 3 years.

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Smart & Secure
Profit & Loss Statement
Amount ($)
2020 2021 2022
Sales $189,000 $265,000 $396,000
Miscellaneous
income $7,000 $5,000 $14,000
A. Total $196,000 $270,000 $410,000
B. Cost of Sales $103,950 $145,750 $257,400
C. Gross Profit (A-
B) $92,050 $124,250 $152,600
D. Operating
Expenses
Salary $65,000 $68,250 $71,663
Rent $12,000 $12,600 $13,230
Utilities $4,000 $4,200 $4,410
Insurance $550 $578 $606
Depreciation $4,000 $4,200 $4,410
Marketing $6,000 $6,300 $6,615
Maintenance &
Repairs $2,000 $2,100 $2,205
Other $500 $575 $695
Total $94,050 $98,803 $103,834
Operating profit -$2,000 $25,448 $48,766
Less: Interest $1,750 $2,500 $3,000
Profit before tax -$3,750 $22,948 $45,766
Less: Tax @ 25% -$938 $5,737 $11,442
Net Profit AT -$2,813 $17,211 $34,325

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Balance sheet
Once the profit of the company is calculated then the company prepare the balance sheet that
imitates the true representation of the amount of business. A well-known statement includes
assets, liabilities, capital, and other elements of the business for the business in that financial year
(Fraser, Ormiston, and Fraser, 2010). The balance sheet of the company is given below: -
Smart & Secure
Balance Sheet
Amount ($)
Assets 2018 2019 2020
Current $55,000 $77,000 $154,000
Fixed $175,000 $295,000 $315,000
Other assets $15,000 $45,000 $75,000
Total Assets $245,000 $417,000 $544,000
Liabilities
Non-Current (Borrowings) $25,000 $50,000 $75,000
Total Liabilities $25,000 $50,000 $75,000
Equity $220,000 $367,000 $469,000
Total Liabilities & Equity $245,000 $417,000 $544,000
Cash flow statement
The cash flow statement is also considered as one of the financial statement that imitates cash
inflow that means incomes of cash and cash outflow that means payment of the amount (Gibson,
2011). The inflow and outflow of the cash majorly include operating, investing and financing
activities. As the business venture is new that means the business need to devote huge sum at the
initial stage.

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Smart & Secure
Cash Flow Statement
Amount ($)
2018 2019 2020
Cash Flow
from
Operating
Activities
Cash sales 56,700.00 79,500.00 118,800.00
Realization
from
Debtors 66,150.00 92,750.00 138,600.00
Payment to
Creditors - - -
Expenses
paid (71,365.00) (119,838.25) (214,316.29)
Total 51,485.00 52,411.75 43,083.71
Cash Flow
from
Investing
Activities
Machinery
Purchased (150,000.00) (300,000.00) (325,000.00)
Equipment
Purchased (50,000.00) (125,000.00) (175,000.00)
Total (200,000.00) (425,000.00) (500,000.00)
Cash Flow
from
Financing
Activities
Equity
capital $220,000 $367,000 $469,000
Borrowings $25,000 $50,000 $75,000
Total 245,000.00 417,000.00 544,000.00
Cash
surplus/
deficit 96,485.00 44,411.75 87,083.71

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Opening
balance - 96,485.00 140,896.75
Closing
balance 96,485.00 140,896.75 227,980.46
Critical risks
In the Australian market, the business might need to deal with certain of risk factors that will
influences the operations of the business. Smart & Secure Company will also deal with some
risks that are discussed below –
Brand recognition
Brand recognition or identification among the customers is one of the essential factors that are
sought by every company present in Australian market. Smart & Secure company need to deal
with the issue in brand recognition because there are many companies who offer such bags in the
market due to which the customers won’t prefer to avail the products provided by the Smart &
Secure company. Brand recognition risk is essential to mitigate by company for their survival.
Competition
The competition is another risk factor for the companies because with the free trade there are
many companies who like to enter in the market of Australia due to which the competition level
among the customers will increase. This risk will influence the working of company, as they
have to make strategies in such a way that it does not create the impact business operations.

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Conclusion
In the end of the report, this can be concluded that businesspersons are carrying the fluctuations
in the business modest world. The new business idea is equipped with the invention, which
include the Smart Luggage bags that are equipped with the new feature of the figure print sensor.
The report comprises the detailed study of the market in which company will perform its
business operations. In addition, the markets to which they serve their services are discussed in
the assessment. The marketing strategies of the new venture are prepared in order to deal
business in dynamic environment. The financial statements of the company are projected and it
includes the critical risk that might affect the business operations.

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References
Baker, M. J., 2014, Marketing strategy and management. London: Palgrave Macmillan.
Chernev, A., 2018, Strategic marketing management. Chicago:Cerebellum Press.
David, F.R., 2011, Strategic management: Concepts and cases. India: Pearson/Prentice Hall.
Drucker, P., 2014, Innovation and entrepreneurship, New York, USA: Routledge.
Fraser, L.M., Ormiston, A. and Fraser, L.M., 2010, Understanding financial statements, Pearson.
Gibson, C.H., 2011, Financial reporting and analysis. South-Western Cengage Learning.
Keller, K.L. and Kotler, P., 2016, Marketing management. 15th Global Edition, Pearson.
Kotler, P., 2015, Framework for marketing management. Pearson Education India.
Ledford, J., 2019, What Is Smart Luggage? [Online] Available at:
<https://www.lifewire.com/smart-luggage-4156871 > [Accessed 18 January 2018]
Luca, N.R. and Suggs, L.S., 2010, Strategies for the social marketing mix: A systematic review.
Social Marketing Quarterly, 16(4), pp.122-149.
Research and Markets, 2019, Smart Luggage Market - Global Drivers, Opportunities, Trends,
and Forecasts to 2022 [Online] Available at:
<https://www.researchandmarkets.com/reports/4240130/smart-luggage-market-global-drivers >
[Accessed 18 January 2018]
Rothaermel, F.T., 2015, Strategic management. UK: McGraw-Hill Education.

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Storey, D.J. ed., 2016, Entrepreneurship and new firm, New York: Routledge.
Wilson, R.M. and Gilligan, C., 2012, Strategic marketing management. New York: Routledge.