MOD006894 Strategic Marketing and New Venture Development Assignment Sample
Module code and Title: MOD006894 Strategic Marketing and New Venture Development Assignment Sample
Introduction
New business initiatives assist the customer base to develop new and innovative products while decreasing inefficiencies in market products. This study has focused on development of advanced GPS systems for parents to track down their children outdoors and in schools named “Parento”. This will be assisting in decreasing children safety related issues as well as decrease challenges related to children safety among working parents especially.
New Venture Opportunity
Children are vulnerable to both physical and emotional harm, especially from outside personnel. Children’s safety concerns include “shelter, food, clothing, medical care and protection from harm” (CHILDREN’S COLORADO, 2022). Especially after COVID-19 restriction, working parents going back to work were concerned with their children’s safety.
This has introduced opportunities to introduce new devices such as “Parento” in management of better safety needs for children while tracking their GPS location in real time. A “Parento” app connected to wearable fashion accessories for children in form of bracelets, pendants or other forms will be also assisting in carrying it effortlessly for children between 1 to 10 years.
New Venture Opportunity Assessment
Increasing childcare industry in UK has effectively increased challenges for this organisation in increasing market demand for businesses operation management. It was estimated that UK have a total number of 3.78 million children between the ages of 0 to 4 (STATISTA, 2022). This has effectively increased total market opportunities for Parento in an increasing childcare industry. In addition, no competition in similar products and services such as Parento has extensively assisted this organisation in improving market share and attract customers in need.
SWOT Analysis
| Strengths | Weaknesses |
| ● Innovative technology
● New product offerings ● Fashionable products range ● Customisable |
● Lack of market development
● Ineffective supply chain management ● Limited customer targeting |
| Opportunities | Threats |
| ● Maintaining low pricing strategy
● High quality management |
● High production cost
● High imitation challenges |
SWOT analysis has developed an effective product and servicing strategy in organisational performance improvement for developing better operational practices. This has effectively identified that Parento lacking in providing high quality products in an affordable price range will face issues of low sales and profitability opportunities. Attending demographic needs with data management by compliance with UK regulatory opportunities will be necessary for decreasing challenges associated with imitation and production practices.
Business Model and Strategy
Business Model Canvas
| Key Partners
● Software organisation ● Electronic device organisations |
Key Activities
● Creating sophisticated technologies in the form of wearable accessories |
Value Proposition
● Better knowledge on children’s location ● Improved child safety |
Customer Relationships
● 24*7 feedback and assistance ● High quality services |
Customer Segments
● Parents with children between 1 to 10 |
| Key Resources
● Effective customer management unit ● Highly trained software engineers and technical assistants |
Channels
● Online website ● Brick and mortar store in limited places |
|||
| Cost Structure
● Product development ● Technological improvement ● Staff recruitment ● Marketing |
Revenue Streams
● Online platforms ● Social media platforms ● Offline stores |
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Development of detailed business model canvas for Parento have efficiently increased challenges in management of better approaches of operational planning, financial and customer management planning objectively.
Business Strategy
Parento will be focused on management of high levels of quality in organisational performance improvement. Zheng et al. (2019) asserted that quality management in business operational stagy effectively increased challenges for demand and cost maintenance simultaneously. This organisation focusing on incorporation of advanced technologies such as Artificial Intelligence and Machine Learning would be beneficial for developing a credible customer base and improve product developments and placements. Further, it will be beneficial for improvement of organisational opportunities while analysing a wide range of data available of parents and children.
Strategic Marketing Approach
Marketing Mix
“Marketing Mix” model is essential for businesses to understand their requirements for “product, price, place and promotion”. In the opinion of Maro’ah et al. (2018), adaptation of “marketing mix” in organisation development assists in evaluation of better budget and trends in better resource return on investment. Parento will be focused on development of products of advanced GPS devices in the form of different jewellery options for children. Price will be varying between £199 and £999 depending on options selected by customers. Place will be a hybrid that are both online channels and offline stores in sales improvement. Promotion strategies will be regulated mainly on social media platforms for attracting a wide range of customers worldwide.
Value Proposition
“Value Proposition” is essential for business development for managing interest of internal and external stakeholders to be attracted to product offerings. As reported by Minatogawa et al. (2019), development of effective organisational performance management opportunities assists businesses to propose benefits provided to customers. Parento providing wearable devices to customers with Parento app and wearable devices will be beneficial for working parents to improve overall product and service management opportunities to value proposition to customers. Effective price point and high level of quality will also add value in improvement of organisational opportunities for business performance improvement.
Financial Resources
Partnering with official and governmental financial funding and banks will be beneficial for this organisation before taking external venture capitalists funding in organisational performance improvement. Partnering with funding banks such as HSBC Holdings, Bank of England and Financial Funding from government of UK will be beneficial.
This will require investment of £100,000 in first three months. Then, it will be beneficial for investment of over £50,000 in technological advancement and product development opportunities every month for at least one year. This will be effective for maintaining a constant cash flow to company in product and surviving opportunities before break even.
In terms of sales management, Parento will be aiming generate over £100,000-£30,000 revenue from existing childcare and safety market in UK. There will be fixed expenses of £50,000 annually to maintain functionality in the application. Profit of this application was estimated at £5,000 on monthly basis. Breakeven cost of £100,000 between 1 and 1.5 years of operations. A constant cash flow management of £50,000 each month along with adding a valuation of £120,000 after a year would be beneficial for Parento in improvement of overall business growth opportunities.
Conclusion
From this study, it can be concluded that products and service offerings from Parento have effectively assisted businesses in increasing convenience for parents in children’s safety. A particular app development along with wearable devices to customers would be necessary for managing real time operational practices for Parento.
Maintaining exclusivity, proposing better quality and low-priced devices would be necessary for improvement of better customer acquisition activities. Further, maintaining efficient marketing challenges through social media, positive cash flow management charts and funding management have effectively assisted this business to improve operational opportunities in childcare industry in UK.
References
Childrenscolorado.org (2022). What Every Child Needs | Children’s Hospital Colorado. Available at: https://www.childrenscolorado.org/conditions-and-advice/parenting/parenting-articles/what-children-need/. [Accessed on: 22 October 2022]
Maro’ah, S., Firmansyah, M.A. and Roosmawarni, A., (2018). Marketing Framework of Small and Medium Enterprises (Smes) Based on Marketing Mix of Syariah. International Journal of Management and Economics Invention, 4(09), pp.1924-1928.
Minatogawa, V.L.F., Franco, M.M.V., Rampasso, I.S., Anholon, R., Quadros, R., Durán, O. and Batocchio, A., (2019). Operationalizing business model innovation through big data analytics for sustainable organizations. Sustainability, 12(1), p.277.
Statista.com (2022). Population of young children in the UK 1971-2020. Available at: https://www.statista.com/statistics/621435/young-children-population-uk/. [Accessed on: 22 October 2022]
Zheng, P., Wang, Z., Chen, C.H. and Khoo, L.P., (2019). A survey of smart product-service systems: Key aspects, challenges and future perspectives. Advanced engineering informatics, 42, p.100973.
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