Business Plan: Modi & Co for Underwater Contact Lens Market in UK

The business plan outlines Modi & Co's strategy to enter the underwater contact lens market. The company, adopting a corporation form, aims to provide salt-proof, zoom-in feature lenses to underwater swimmers, addressing the limitations of traditional goggles. The plan details the product description, strategic management using the Ansoff Matrix and product concept, and emphasizes the importance of quality and innovation. The mission is to enhance the quality of life for water sports enthusiasts. The plan includes an organizational chart, human resource management strategies with recruitment plans for key positions like opticians and manufacturing engineers, and a compensation structure. The business environment analysis includes PEST, SWOT, and Porter's Five Forces, highlighting the competitive landscape. The marketing strategy focuses on market segmentation, pricing, and promotion. The company aims to become a market leader, focusing on customer satisfaction and innovative products.

BUSINESS PLAN

Table of Contents
1.0 INTRODUCTION.....................................................................................................................1
1.1 Introducing company background, product and form of ownership.....................................1
1.1.1 What is the name of organisation.......................................................................................1
1.1.2 What form of ownership has company adopted.................................................................1
1.1.3 Product Description............................................................................................................1
1.1.4 Strategic Management........................................................................................................2
1.2 Mission Statement.................................................................................................................3
1.3 Objectives of business...........................................................................................................3
1.4 Organisational chart..............................................................................................................4
1.4.1 Introducing management team...........................................................................................5
2.0 Human Resource Management..................................................................................................5
3.0 Business Environment...............................................................................................................8
3.1 Describing and introducing the industry...............................................................................8
3.2 PEST Analysis......................................................................................................................9
3.3 SWOT Analysis..................................................................................................................10
3.4 Porter’s 5 Forces Analysis..................................................................................................11
4.0 Marketing Management...........................................................................................................13
4.1 Market Segmentation & Target Marketing Strategy...........................................................13
4.2 Pricing Strategy...................................................................................................................13
4.3 Promotional Strategy...........................................................................................................13
4.4 Place....................................................................................................................................14
5.0 Operations management...........................................................................................................15
6.0 Exit strategy.............................................................................................................................19
REFERENCES..............................................................................................................................20

PART A
1.0 INTRODUCTION
1.1 Introducing company background, product and form of ownership
Contact lenses should be wore while swimming underwater in order to protect eyes in
effective manner. It is required that business should provide better quality lenses so that they
may be satisfied.
1.1.1 What is the name of organisation
The name of company is Modi & Co. which is a new start-up company being focused on
providing contact lenses to underwater swimmers. The co-founders wanted to start this firm as
swimmers felt goggles are not quite handy and irritation persist time passes in the sea. This led to
motivation to offer contact lenses as it is light weight and clear vision can be seen underwater
while swimming (Steele, 2018). Motivation was attained for giving correct vision in the best way
possible. Modi & Co will provide quality lenses in order to capture UK market.
1.1.2 What form of ownership has company adopted
Modi & Co has adopted corporation form of ownership limited by shares so that it may
upscale manufacturing business in Brighton. This form has been adopted because liability of
shareholders is limited to shares held by them. Shareholders which are family members can be
effectively employed by Modi & Co with ease. One of the main advantage of choosing this
business is that professional managers are employed by investors and as such, day-to-day
operational activities can be handled in a better way. Hence, it can be justified that corporation
form has been selected.
1.1.3 Product Description
The product will effectively meet the needs of divers and water sport enthusiasts in the
sea so that they may clearly visualised. Zoom-in feature will be offered with ambitious contact
lenses requiring a power of 43 dioptres of accommodation. Thus, needs of water sport people
will be entertained with superior quality lenses will be provided (THE BENEFITS OF
CONTACT LENSES. 2012). The current customers are not satisfied as they wear low quality
lenses in the sea which involves irritation after sometime as bacteria comes in contact with it.
The unique selling point that unique selling point Modi & Co is that salt-proof technology,
precise underwater vision. This has competitive advantage of company over its rivals as larger
1

vision span and salt-proof technology will be offered which are not provided by competitors in
industry.
Illustration 1: Wearing contact lenses Source: diverdaily.com
1.1.4 Strategic Management
The aim of Modi & Co is to be market leader by manufacturing superior quality lenses in
order to enhance clear vision in the sea. In accordance to Ansoff Matrix, business will attain
higher growth in near future and thus, market penetration strategy is best suitable for it. It can be
justified that by focusing on selling existing products in similar markets, organisation can
improve upon its production of lenses and efficiency can be improved (Poor and et.al., 2018).
This will help to provide with quality products and customers will get satisfied. Dominance in
UK market will be accomplished.
The current position of Modi & Co in Product Life Cycle is at introductory stage. This is
because company is less than a year in the market. To move on to growth stage, awareness of
new contact lenses will be provided having larger vision span and zoom-in feature which is also
unique selling point of company. Distribution channels will be increased to meet ever-increasing
2

demand of people. Support services will also be incorporated that would help to push company
to market. Marketing management orientation concepts are needed and product concept will be
adopted by Modi & Co in order to focus on product being nicer, cheaper and better quality. It can
be justified that customers will favour contact lenses offering quality, enhanced features and
performance in effective manner (Rodríguez-Martín and et.al., 2018). Thus, aim of product
concept is to improve item which effectively attracts people.
1.2 Mission Statement
Modi & Co mission statement is follows- “To offer innovative lenses that enhances
quality of life for maintaining the highest spectrum of contact lenses for water sport customers”.
1.3 Objectives of business
 To reduce refractive errors persisting from contact lenses
 To offer superior quality lenses to underwater sport customers for enhancing their vision
 To become trusted market leader in eye care by producing customer-centred products
 To become hallmark of quality and innovation in next five years
 To attain gross profit of 10 % in 12 months period
3

1.4 Organisational chart
Illustration 2: Matrix organisational structure Source: pinterest
The organisational chart which is prepared providing the duties and tasks which will be
performed by Modi & Co to effectively attain production. The organisational chart presented is
matrix because there are various tasks needed to be performed by personnel in order to
accomplish desired production. It emphasis on efficiency, innovation and creativity directly
attaining customer satisfaction. Multiple level of hierarchical communication with
responsibilities in organisation is provided. It is chosen so as to enhance communication between
personnels.
The organisation chart is flat and wide because it has various pros. It improves
communication as without involvement of intermediaries, employees and executives can easily
talk speeding up transparent communication. It also reduces operational costs as expenses in
hiring mid-level and lower-level managers can be saved. This will provide with better
communication and transparency among staff members and executives.
4

The decentralised approach will be used in order to encourage employees to make active
participation in responding towards duties in the best way possible. Decentralisation help
business to develop higher-level skills as activities with regards to planning, decision-making are
delegated to a group eliminating the role of central group (Tang, Zhi and Flaherty, 2017). Main
benefit of decentralised approach is that central group can focus on important things and
delegating certain unimportant matters to lower group.
1.4.1 Introducing management team
The management team will have CEO, followed by Business Analyst Manager,
Development Manager, Quality Assurance Manager. Product Manager will be followed by
Business Analyst, Tester and Developer. Hence, management will effectively allocate work in
accordance to job roles of employees for attaining efficiency in operational activities.
2.0 Human Resource Management
The skills are required to be possessed by employees so that business may be able to
provide competitive contact lenses. The water sport enthusiasts' are main target customers of
Modi & Co which will be provided with quality product. Creativity skills are needed in
workforce with the help of which majority of people can be provided with enhanced quality of
lenses. Currently we have employed 50 workers for attaining production meeting specific
demand of customers in the best way possible. It is required that more people can be recruited so
that efficiency and productivity can be increased in a better way.
Human resource management is a key to attain desired stated objectives and provide
customers with superior goods and services for accomplishing satisfaction level (Gómez,
Aguirre-Villaseñor and Morales-Serna, 2018). There is an urgent need for recruitment of
employees for filling the job positions. For this, optician, final assemblers, manufacturing
engineer, production technician are required so that contact lenses can be produced in effective
manner. It is need that optician must be recruited so that he designs and dispenses right lenses to
final customers. He has the role of providing specific ophthalmic appliances which will give
necessary correction to the eyesight of people. This is an important job position addressing eye
wear needs of people and seeking out vision in a better way so that desired contact lenses can be
produced. This position is vacant and optician will be recruited in getting needs of customers in
effective manner.
5

Manufacturing engineer is missing in company and this skill is required for developing
manufacturing process by studying product requirement, designing, modifying and testing
methods of manufacturing. Final assembler has a role to assemble part of lenses in company in
order to finally complete product and make it ready to be delivered to customers. Production
technician is also missing for analysing that products are being manufactured as per quality
standards.
Illustration 3: Recruitment Flowchart Source: creately.com
The above recruitment flow chart will be followed by Modi & Co in recruiting employees
for getting desired level of production. This shows that firm will have structured process of
recruiting and then job offer will be provided to them upon selection. First step will be to analyse
job need and recruitment requisition would be given. After that selection criteria will be then
processed in a better way. Advertisement is then provided for the job. Then receiving
6

applications for job. Categories of job is prepared and as such, suitable job is then identified.
Candidates will be then interviewed in accordance to job category and according to criteria as
well. Then 2nd interview will be done according to criteria. Lastly mail will be provided
regarding thanking for interview and thus, job offer will finally be provided to selected
candidates.
Modi & Co will recruit work force externally as more positions are required for attaining
demand of customers by meeting production. It is an appropriate source as creativity and
innovative workers are needed which can work according to unique selling point and good
quantum of sales can be accomplished (Pesudovs, 2018). New employees will be recruited
possessing necessary skills, but to sharpen their knowledge and skills, training and development
is essentially required. Training and development will be provided to employees. Technical skills
trainiong will be provided because even if employees possess required skills, there is always
room for improvement. Technical skills such as for handling production level, assembling final
products, development process of contact lenses so that job can be done with much efficiency.
Refresher training is another crucial training which is offered when any important
changes are occurred in particular field. Eye care sector is ever-changing field and this training is
required for upgrading skills of workers, hence, Modi & Co will incorporate necessary training
to new employees. On-the job training will also be provided to employees by learning work
under a supervisor for learning job roles in the best way possible (Rucinski, 2018). Hence,
company will focus on continuous development and training by which desired objectives will be
accomplished.
The compensation structure is prepared below for co-founders, senior managers, mid-
level managers and low level employee-
Compensation structure of Modi & Co
Grade Min (In £) Mid (In £) Max (In £)
Co-founders 67000 69000 72000
Senior Managers 62000 64000 67000
7

Mid-level Managers 57000 60000 62000
Low level employees 52000 55000 57000
It can be analysed from the above table that co-founders that minimum salaries will be
67000 and maximum to 72000. On the other hand, senior managers will get salaries within range
of 62000 to 67000. Mid-level managers will be paid within 57000 to 62000. While low level
employees will be paid within 52000 to 57000 range.
3.0 Business Environment
3.1 Describing and introducing the industry
The contact lenses industry is one of the major competitive industry which has more
number of companies competing with another. Global contact lenses market size was valued
$9.91 billion in 2016 which is sets competitive position of companies. It can be analysed that UK
contact lenses in 2016 was £290 million in accordance to ACLM (Association of Contact Lens
Manufacturers) which is increased by 8% from 2015 (ACLM 2016 contact lens statistics. 2017).
There were 4.2 million contact lens wearers in UK aged between 15-64 years. ACLM has
forecasted that market will continue to grow in coming years.
8

Illustration 4: Contact lens habits of customers UK Source: Share of habits of contact lens users
in the United Kingdom (UK) in 2016. 2016
The chart represents that 47 % are people in UK falling under showering with lenses in.
while, 19 % uses tap water on lenses and 37 % swim with contact lens without wearing goggles.
Thus, market of contact lenses will be fruitful for company in UK for attaining profitability.
Concentrated industry is contact lens industry having large companies with higher market share.
Opportunities will be to provide unique feature of lenses such as larger and clear vision, salt-
proof technology lenses. While, challenges in the industry are to provide superior quality lenses,
bacteria and contamination resistant lens.
3.2 PEST Analysis
Political (P)-
The political environment in UK will get ruined as UK has decided to leave EU. Brexit
will have major influence on Modi & Co as it is a start-up company and operational activities
would be affected up to a high extent. On the other hand, tax structure levied on contact lenses
will also obstacle company in achieving group goals.
9

Economical (E)-
UK economy has mainly influenced by Brexit and economic slowdown has been
registered which will have negative impact on organisation. This is because purchasing power of
people have gone down and they will not buy new lenses leading to lower profits to firm. It can
be analysed that economic downturn will become stable in near future but it is not appropriate
presently for company.
Social (S)-
Consumer preferences are ever-changing and never remains same. This is the reason that
contact lens are made with unique advantages to business which will lure customers who are
water sport enthusiasts (Nanavaty and et.al., 2017). Moreover, investment in trending technology
is required to be made in order to attract customers.
Technological (T)-
Technology has revolutionised the way of production in today's scenario. Contact lenses
are made from wearable technology and manufacturing is done. Product design is to be made in
a manner so that people may purchase the same.
It can be concluded from PEST analysis of industry that new ways of production has to
be deployed by Modi & Co for effectively attaining customer attention. Technological
advancement will be implemented and desired production will be accomplished.
3.3 SWOT Analysis
Strengths (S)-
The main strength of Modi & Co is that it will introduce contact lenses being wearable
underwater in the sea. This will entertain and attract divers which have to wear goggles while
diving which has many disadvantages. Moreover, to capture the market, prices will be kept low
in order to provide commodities at competitive and affordable price. Advanced technology will
be implemented in order to enhance efficiency in production and thus, desired production will be
done for attracting customers (Park and et.al., 2018).
Weaknesses (W)-
Main weakness is that firm is new in contact lens manufacturing industry. Brand name is
not present which will have disadvantage to company in attaining goals. Lower end product of
lenses are also present. Moreover, perceived weakness is cost of producing services as per the
superior quality. It will have to recognized its name in the market by providing quality services.
10