NEW VENTURE IDEA The Product At home or on the road, for sports and leisure activities, or as a functional tool for everyday life. With its modern design and well thought-out-details, the versatile, handy LED pocket lamp LightBeam is a perfect fit with our modern times. The LightBeam is not only a simple pocket lamp, thanks to the special strap fixing system there are various application possibilities. For instance mounted on a bike the lamp provides you with bright vision on your journey or fix it on your kids school satchel for their safety.It also perfectly functions as a outdoor and camping lamp. Wherever light is needed, the LightBeam is the solution! Product benefits: •high-quality •modern design •compact size (perfect for keyrings) •multifunctional use •easy mounting •bright illumination •long battery life (up to 100 hours) •water and shock resistant Market Analysis Our main customer group are young, energetic people between 12 and 25, who follow the newest fashion movements. The important buying motives are to use the product as a lifestyle or sport accessory and to imitate their friends.
Another strong customer group are casual buyers, who see a good value in the multifunctional use for a fair price, like middle age parents. Competitor and Industry Analysis The direct competetion is formed by noname Asian LED lamp manufacturers, who offer a wide range of low budget lamps. These lights in the compact category are mostly keyring-lamps or flashlights. They are characterized by a short life cycle (because of the lack of marketing), low quality and the do not offer a universal fixing system.The indirect competetion is formed by established brands offering lamp products. Their product range is very broad, but there are no equivalent lamps in the compact category. Both direct and indirect competitors could copy the idea of a multifunctional, compact design lamp. Therefore it is vital to win over a big part of the compact lamp niche market share at the product lunch and focus on the brand standards: quality and design! Marketing The goal is to establish a strong brand name reputation within the first year of market entrance and strengthen this position for the long term.
Therefore it is crucial to run a pre and after sale commercial program to advise the customers of the product. Main advertisement channels are reports in magazines and radio shows. Also an active presence on lifestyle exhibitions and sponsored sports events is important for good company to customer communication. Distribution There are three main distribution channels: •Product homepage: Details about the lamp and online ordering system (fast delivery has high priority) •Retail: Selected shops with high target group frequency •Exhibitions and eventsFinancial Feasability It takes one year to develop the product and strategy.
The initial costs are $300,000 based on two employees with a salary of $80,000 and general costs of $140,000 for travel, computer, rent, et cetera. The production of the components is outsourced to an Asian contract manufacturer. The assumed production and importing cost is $5 per unit and the intended sales price is $15. Based on the forecast sales of 800,000 units for the next five years and a unit margin of $10 a revenue of $8,000,000 can be achieved within this time period.Total expenses (main cost is adverisement) are estimated to $5,000,000 resulting in a net profit of $3,000,000 over the next five years of business. Future For the longterm, after establishing a good brand reputation, we plan two main strategies to grow.
To reach new customers we will offer more customizeable products, like different lamp materials and LED colours. But also establishing new product lines like home lighting solutions is part of our future strategy. The other goal is grow by opening new markets and distributing the products globally.