Green Power Products: Business Plan for Customized Lamps and Shades

This business plan outlines the strategy for Green Power Products, an e-commerce business focused on selling customized bedside lamps and shades that operate on both electric and solar energy. The plan details the company's competitive advantage, emphasizing its eco-friendly approach in a market that often overlooks sustainable practices. It includes an e-commerce introduction highlighting the benefits of online presence for customer interaction, marketing, and payment processing. The SWOT analysis identifies strengths, weaknesses, opportunities, and threats, emphasizing the importance of a robust marketing strategy and the challenges posed by established competitors. The target market is defined as homeowners aged 35-64 with disposable income, with detailed customer segmentation. A competitive analysis examines rivals like Tom Dixon and Anglepoise, highlighting Green Power Products' unique selling points. The advertising strategy will use search engine optimization (SEO) to create brand awareness. The plan also includes an analysis of customer spending cycles, warranty and customer service details, and various payment and delivery methods.

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Business Plan
Author
Affiliation
Course
Instructor
Due Date

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Business Plan
Line of Business
For the purpose of this assessment I have selected customized bedside lamps and
shades as the preferred product for sale. A website will be created based on the guidelines of
this assessment to effectively market and sell the commodities. A total of six lamps and
shades will be portrayed on the website which will be divided into different segments to
accommodate the images. Each of these sections will have a segment for a brief description
of the products. Separate text boxes will be incorporated with detailed descriptions of the
products as well as the mechanisms by which potential customers can submit their payments.
This will be supplemented with details on how the purchased commodities will be delivered
to the customers. In recognition of the fact that there are presently in the market numerous
companies offering this product, my competitive edge will constitute the sale of customized
lamps which can operate on both electric and solar energy. Most enterprises selling these
products have failed to capitalize on natural and renewable energy to align their business
operations with recent developments and guidelines in environmental protection.
Incorporating this provision into my business idea will allow me to gain a competitive edge
and ultimately command an appreciable market share. The products will be ordered from the
supplier immediately a customer makes a demand. The chosen name for the company
constitutes Green Power Products. Its website domain name will be
www.greenpowerproducts.com
Purpose of Introducing E-commerce
The dynamics of contemporary business require the use of the internet to gain access
to a wide scale of current and potential client base. The internet provides tremendous
opportunities for networking and marketing and can therefore, be capitalized upon to increase
the efficiency of the concerned business operations. By being online I will be able to interact

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one on one with my customers. This interaction will enable me to gain insights into what
their demands and needs are with regards to the quality of the lamps and shades. This
information will be pivotal towards assisting me to make improvements on my product
quality (Kovalenko & Kuzmenko, 2010). Furthermore, interacting with customers online will
allow me to gain real time data on their level of satisfaction. Based on this information I can
find ways to improve the feasibility of the website in order to increase ease of access. Data on
the customers’ level of satisfaction can also be capitalized upon to make improvements on the
quality of the product offering. Secondly, by using the internet I will be able to market and
promote my products on various platforms thereby, attracting an appreciable base of current
and potential customers. This will be achieved through utilizing such platforms as Facebook
and Instagram to post images of my product offering alongside a description of why the
lamps and shades will provide users with a unique experience which is different from the
ones sold by my competitors (Gurau, 2008). Integrating my website with social platforms
will increase the viability of my online business. Furthermore, the internet makes it possible
for users to employ diverse methods of payment and delivery for the commodities they are
interested in. By using the internet I will be able to link various payment methods such as
PayPal and MasterCard with my website thereby, increasing the effectiveness and efficiency
of my online business.
Marketing Plan
SWOT Analysis
Strengths Weaknesses Opportunities Threats
Product has an
effective marketing
plan
Inadequate
experience in the
market.
Low cost products Low profit margins
at the beginning of
the business.
The product offers Lack of brand Customers are Extreme competition

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green lighting
solutions, thereby
giving it a
competitive
advantage in the
market.
awareness. willing to embrace
green and
sustainable
solutions.
from well-developed
companies.
Relatively simple
construction.
Obtaining customer
feedback may be
difficult for a new
business.
The technology used
to make Green
Power products is
highly advanced and
relatively new.
If sold in Europe in
the United States
there would be need
to meet significant
regulations.
As a relatively new business, there is need to develop a robust and effective marketing
plan which will enable me to advertise and sell the lamps and shades to potential customers.
The marketing message will be embedded within the need to ensure full customer satisfaction
and a unique client experience. The main strength for the lamps and shades constitutes long-
term cost effectiveness based on the fact that the commodities will eliminate the need for
electricity. The money saved on electricity cost will be recouped by the slightly high price of
the Green Power Products. Customers in the contemporary business world have continued to
accentuate their focus on green solutions and the pursuit for sustainable business solutions
(Agrawal et al, 2004). Green Power Products delivers this provision in a convenient,
efficient, and affordable manner. By generating zero harmful emissions, Green Power
Products will give our clients a healthier life. Customers are also provided with the guarantee
of product iteration given the fact that a personalized touch has been employed in designing
and customizing the products. The most significant threat that Green Power Products faces

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constitutes extreme competition from well-established companies offering the same products.
The fact that Green Power Products is a relatively new company means that it presently lacks
a dedicated customer base and the experience needed to thrive in the competitive lamp and
shades market. Furthermore, the products feature the use of higher technology in their design
and are therefore, unconventional as far as the traditional lamp and shade market is
concerned. This feature will most likely shrink the enterprise’s profits during the first few
months of operation. With time however, following aggressive internet marketing and
promotion, the market will slowly acknowledge the unique product offering of Green Power
products and begin embracing it (Hale, 2016). This reflects on the need for high sales
volumes in order for the online business to be successful.
Target Market
The client base I am seeking to target are mostly homeowners who have the
willingness and resources to renovate their households. O'Leary (2008), contends that there is
a delicate correlation between emerging trends in the housing market and lighting sales. I
have capitalized on data from Gov.uk to offer me with insights on the age of the homeowners
who would most likely be interested in Green Power products. Based on this data, I have
come to the conclusion that the most feasible target market would constitute homeowners
who are 35 years going forward. This target market is suggested as being more affluent given
the fact that they are highly likely to be free from mortgage payment. This is the case
especially considering that entities below the age of 35 typically reside in rented
accommodations which reflects on their high unlikelihood to redecorate. Based on extensive
research and existing data on homeowners across Europe and the United States I have come
to the understanding that the majority of homeowners are over the age of 65. I nevertheless,
decided to capitalize on the contentions of John Lewis, (2013), who postulates that only 30%
of its clients are 55 years and above. The company proceeds to assert that the bulk of its

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customers are under the age of 65. Based on these findings I find it feasible and appropriate
to accentuate my focus on potential customers who fall between the ages of 35-64.
There is also need to consider the ability of the target population to pay for the lamps
and shades. Given that the prices of the products will be relatively higher than the existing
commodities in the market there is need to target individuals who have an appreciable
disposable income (Morten, 2008). In this regard, the following groups of individuals will be
given preference: entities in higher professional, administrative, and managerial positions;
individuals in intermediate professional, administrative positions; and customers in junior,
clerical, and supervisory professional, administrative, and managerial positions. The first
bracket of target consumers earn above $35, 000 annually. The second and third tires earn
approximately $29, 000 and $20, 000 respectively.
Having analyzed the customers’ spending cycle in figure 1 below I have been able to
gain an understanding of the journey that potential customers make in concluding their
purchase decision. I feel the need to deliver information in diverse forms before reaching out
to these individuals so as to enable them understand the characteristics of the products from a
health and economic perspective. This will be conveyed in the form of technical
specifications outlined on my website, in-store brochures, and image demonstrations (Cobb,
Brookover & Cobb, 2015). After purchasing the products via my website customers will be
given the opportunity to register online for a 6 months warranty in a bid to ensure continued
satisfaction, while at the same time allowing me to market and promote my products or
sending discounts to encourage existing customers to make return purchases. I also
acknowledge the need to maintain close contact with my customers. In response to this, I will
establish a section on my website for customer care services which will be linked with
various social media accounts, most notably Facebook and Instagram. The same provision
will be made for phone and email connection. The website will have a section where my

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business email and phone number will be provided to give customers direct access to me
during business hours.
Figure 1
Competition
In reviewing the competitors who will pose a threat to the productivity of my
business, enterprises which conduct their operations online will be given precedence. The
companies which I will accentuate my focus on are Tom Dixon and Anglepoise. Tom Dixon
is a furniture company which also sells lamps and shades on its website. The company is
committed towards innovation and reviving the British furniture industry. Its products are
inspired by the UK’s unique heritage and produces high quality objects. Angelpoise on the
other hand, is characterized by a perfect operational framework established in the 1930s and
engages iconic, quintessentially and kinetic form British brand. Anglepoise specializes in the
production and sale of practical and energy efficient lamps. These companies have

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capitalized on the provision of energy efficient lamps as their primary competitive advantage.
Irrespective of their well-established business models and large profit margins they have
failed to embrace the goals of sustainable business development. Tom Dixon for instance,
utilizes wood products to manufacture its electric lamps and shades. They particularly focus
on the manufacture of electric lamps with high end wood which cannot be easily accessed.
Only an exclusive group of customers with large disposable incomes are able to afford their
high end products. Their clientele is as such, limited, nevertheless, wealthy. Angelpoise
employs a relatively conventional business model which shares several similar aspects with
Green Power Products.
Green Power Products utilizes solar energy in their lamps. The shades are made from
cardboard. By providing green solutions to my clients I will be able to gain an appreciable
degree of competitive advantage in the market. Given that I intend to focus on customers
between the age of 35 and 64 I find that my approach will resonate well with the needs of
these clients. This is the case considering that the majority of these individuals are interested
in businesses which employ a sustainable approach in their operational model. Furthermore,
my products are relatively affordable in contrast to the ones sold by Angelpoise and Tom
Dixon. My enterprise is additionally, offering the promise of top-notch quality customer
service and six months warranty for every lamp bought. This will be supplemented by the
provision of discounts and incentives to return customers (Baltes, 2017). Clients will also be
allowed to make direct purchases via my website using virtual means of payment such as
MasterCard, Visa, and PayPal.
Advertising Strategies
One of the strategies that will be employed for advertising Green Power Products
constitutes search engine optimization (SEO). In this regard, I will essentially be capitalizing
on my website to create brand awareness for my products. Investing in SEO will enable me to

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increase the efficiency and effectiveness of my website in a manner that will assist it to rank
well in search engines such as Google for searches relevant to my products. In implementing
this strategy I will be incorporating keywords which are related to my products on my site
(Baltes, 2017). Whenever clients search for these words in such search engines as Google
they will be directed to my website. In order to identify the most suitable keywords to
incorporate in my SEO I will conduct extensive keyword research to determine the most
frequently utilized words in searching for products related to lamps and shades. An additional
strategy in this regard will entail the identification of the keywords which are being targeted
by my competitors. One of the ways in which I will improve my SEO is by creating and
publishing original content which will be based around the chosen keywords.
The second strategy which will be employed to advertise my products online will
involve social media marketing. In this case, I will create an Instagram, Twitter, and
Facebook platforms where images of my products alongside their specifications will be
posted. This will give me an opportunity to reach an extensive target audience. By advertising
on these sites I will be allowed to select my audience based on such factors as location,
gender, and age coupled with such advanced alternatives as behaviors and interests (Orzan et
al, 2020). This will enable me to reach individuals who are most likely to be members of my
target audience.
Revenue Model
Setup and Maintenance Costs
The two website hosts which will be given precedence in this business plan are
Bluehost Web and iPage Web hosting. Bluehost offers a tremendous value at a low premium.
Its lowest premium is stated at $2.95. It employs a shared hosting service to provide clients
with the most value for an affordable premium. It allows users to update, transfer or track
domains based on an operational model of simple domain management. All these actions can

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be executed within a centralized location. Complementary resources offered by this host
include the possibility for the integration of unlimited email accounts which incorporate
third-party compatibility, secure POP3, and filters. iPage is recognized as one of the most
affordable hosting options currently available in the market. It possess a lengthy list of ad-ons
which qualify to place it at the peak of top search engines’ reviews. This website host
provides clients with numerous responsive templates and a free web developer. Some of its
key features include a free domain identity for a period of 12 months, scalable bandwidth,
and unlimited disk space. It starting price is stated at $1.99. Based on this comparison
Bluehost will be chosen as the preferred website host.
Two individuals will be employed to assist in running and maintaining the website.
Given that the enterprise is a start-up there will not be need to employ several individuals to
run and maintain the website. It is anticipated that the first year of operation will feature low
traffic. Two employees will therefore, be adequate to run its operation. These individuals will
be paid $10, 000 and $8, 000 annually. The first employee will be responsible for running the
day to day operations of the website including monitoring traffic, ensuring that the website is
updated regularly with recent products and site improvements, as well as handing all
customer complaints. This individual will also be responsible for dispatching goods and
negotiating with suppliers. The second employee who will be paid an annual salary of $8,
000 will be responsible for providing accounting services for the purposes of tax and
inventory. The cost of utilities for the first year of operation will be estimated at $1320. The
cost of insurance will be stated at $27 per month which translates to $324 for the first year.
Advertising will cost the hefty sum of $100, 000 for the first year. The emails sent to the
account which will be provided on the website will be directly accessed via my personal
computer. There will therefore, be no need of purchasing equipment to serve this purpose.
The employee responsible for running the daily operations of the website will however, be

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provided with a company cell phone and personal computer which will cost not more than
$1300. The total cost of running this website for the first year will translate to approximately
$120, 944. These details are presented in the table below:
Item Cost
Employee A $10000
Employee B $8000
Utilities $1320
Insurance $324
Advertising $100000
Cell Phone and Personal Computer $1300
Total $120944
Income
Given that this is a new venture the sales for the lamps and shades will most likely be
low during the first year of operation. Given the amount of detail and resources which would
have been employed in developing the website and marketing the products it is safe to
contend that we will be able to sell approximately 7 lamps on each working day. If the price
of one lamp costs $60 and orders from clients are obtained throughout the seven days of the
week I will be making an estimated $2940 in sales every week. This translates to $153300 in
annual sales. Subtracting this figure from the cost of delivering the products to the clients
which is estimated at $10 per lamp, this value goes down to $127, 750. Subtracting this from
the total annual cost of doing business, my profit for the first year will be estimated at $6806.
This is demonstrated in the table below:
Annual Sales Annual Expenses Annual Profit/Loss
$153300 $146494 +6806

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Website Design
The following image represents the site map which will be utilized in developing the
website:
The website’s homepage will be made using a combination of accent and bold dominant
colors. The background will feature a light appearance. The accent and bold dominant colors
will give the website focal points and a unique personality. The images and texts that will be
used to present the products will feature a combination of high definition pictures of the
proposed products embedded within a green landscape to reflect on the sustainability of the
company’s business practices. Clients will be made to understand that our competitive
advantage is embedded within the provision of green lighting solutions at an affordable price
coupled with a six months warranty for every product purchased. The images of the products
will be placed at the center of the homepage with the accompanying text just below each
image. The message for the competitive advantage and unique product offering will be
situated at the top center of the homepage. The value preposition being presented to the
website visitors will constitute the guarantee of discounts and incentives for first time sales
and sales exceeding 10 lamps.

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References

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Agrawal, A., Basak, J., Jain, V., Kothari, R., & al, e. (2004). Online marketing research. IBM
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Gurau, C. (2008). Integrated online marketing communication: Implementation and
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