Market : Launching the Professor of Plumbing Application - Business Plan Example

Market Plan: Launching the of Plumbing Application By College: Presented Table of Contents Table of Contents 2 0 Executive Summary 3 2.0 Product Feasibility 4 2.1Problem identification 4 2.2. Product description 4 2.3 Industry overview and competitive advantage 5 2.4. Target market 6 3.0 Business Model 7 3.1 Commercialization strategy 7 3.2 Revenue modeling 7 3.3 Types of revenues 7 3.4 Place in the value chain 8 3.5 Financial assumptions 8 4.0 Expected loss and profit account 8 5.0 Conclusion 9 6.0 Work cited 9 1.0 Executive Summary The current technologically advanced market requires that professionals perform their duties effectively, efficiently and with utmost accuracy and precision. The new Professor of Plumbing application is aimed to achieve these functions through the use of Android market, Smartphone and the iPhone to achieve these objectives. The application integrates books, tables, calculators that are necessary in plumbing work and piping design to present an enhanced user interactive application that presents faster and more accurate calculations on right angles, offset pipe lengths, plumbing fixture spacing, water pipe size, DWV pipe size, flow rates and volumes among other calculations. These are used daily by plumbing professionals and other professionals where piping system design is required. The application aims at making their experiences to be of a higher level, when using this application. There is a rich market that the application targets as described above. This will ensure the application captures the market, and meets the objectives in both revenues and offering interactive value to customers far and above the price paid for the application. The design and offering the application for sale have a high profit potential in that, as the application will be downloaded directly from application stores or bough from other professional databases, it will reduce the cost of buying other handsets, as is currently in the market. This will make most plumbers and those involved in design of pipes systems to prefer this application to buying of more specialized calculators. This will increase sales; the monthly and annually subscriptions are intended to increase the revenue base from the sales of this application greatly. The improved features that will be enhanced during development and advancement of this application will ensure that the application delivers maximum value to customers, and this will increase the revenue greatly as more customers download the application to experience these benefits. 2.0 Product Feasibility 2.1Problem identification The current advancing technologies require that operations by all professions and technicians be made fast reliable, efficient and effective. This means that a plumber has to have all the details they require during the daily operations at their hands. There is too much time wasted where the plumber is required to carry different equipment in a tool box, and this considerably reduces their effectiveness. A plumber will require calculators, manuals for checking angles and pipe diameters and how they correspond during fitting operations, the flow rates calculations and materials that contain many standards that have to be used during calculations in plumbing work. The time required to go though the above materials is too much and is wastage of productive time that reduces hourly productivity of such a plumber. It is necessary to equip the plumber with a new approach that they have to use when plumbing and solving all the above problems effectively. This is the reason behind the new Professor of Plumbing application a versatile application that will ensure speed, reliability, accuracy, precision that make the overall plumbing work much easier as compared to the current situation. 2.2. Product description The Professor of Plumbing Software comes along with the following features that will ensure a sustainable and wide market coverage and usage. Can perform right angles, offset pipe lengths Feet-inch –Fractions Flow rates and volumes Fitting angles, bends, slopes percent grades, drops Plumbing fixture spacing DWV pipe size Water pipe size The Professor of Plumbing will perform the above functions efficiently, effectively and comes with versatile features. The application integrates books, tables, calculators that exist in the market separately to make an interactive user interface that presents all these features rapidly and at the click of a button. Since the application is available like any other application for iPhones and Android market, the new product does not require added costs and will just use the owner’s phone to offer the above interactive features. 2.3 Industry overview and competitive advantage With the development of iPhones and other Android based phones, there is an increasing development of applications that are applicable to hand devices that have revolutionilized the way professionals perform their duties. The growing number of Smartphone, iPads and other Android based phones makes the launching of the Professor of Plumbing application to be one of the most interactive applications that have ever been launched in the market. The rapid development in Smartphone and iPad market is a fertile ground that will ensure that this application finds market among plumbers and other professionals who require the same data calculations. Most engineering students studying civil, water and plumbing engineering require to use this interactive application during their studies to calculate different requirements and design in plumbing and piping not only for water, but for other fluids such as in chemical engineering where petroleum products are transported in pipes, the transmission of steam in industries where extensive piping has to be used, and in many other applications that require design and layout of piping systems. The Professor of Plumbing application has a wide range of applications and as the above fields develop, the market considerably expands each day and becomes more promising each day. This was the motivation behind the design and launching of this new product. There are several other competing products in the market such as the machinist Calc. Pro (International Model). The Machinist Calc. Pro is a versatile tool that provides rapid, precise solutions for each day machining calculations (Diamond, 2011). The new Dedicated Piping calculator is a versatile tool that offers high precision and accurate calculations in piping to enhance a fast and accurate piping network in industries. The dedicated calculator or performs mathematics during installations and contains elements to configure non standard angles, offsets and fittings that are done faster and more reliably. This new product can also be applied in sprinkler design and calculating flows and volumes ahead of time as well as configuring the weights of pipes in determining the weight of hangers. This product is therefore very applicable to semiconductor, bio-pharmaceuticals and other industrial applications (Diamond, 2011). This calculator is expected to compete with the new Professional of Plumbing application. However, the new Professor of Plumbing has added advantages that will ensure a competitive edge in the market compared to this product. While this product comes as a complete and fixed handset that is already made, the new Professor of Plumbing is an interactive application that is applicable to any android based device, iPhones and iPads. This means that the Professor of Plumbing would have larger market coverage as compared to the above calculator that is more suited to those working in industries only. This is the advantage of the new interactive application. 2.4. Target market The Professor of Plumbing application will target all those operating in the industries where piping systems are required and students who are in times required to perform various calculations regarding the piping systems during their studies. The application will be available for any other users who feel that it might be of use to their profession. Since the application will be directly downloaded from the android market, iPhones and iPands market, it would be readily available for use irrespective of the profession of the user due to the easy user interface features that comes along with the application. 3.0 Business Model 3.1 Commercialization strategy The application will be sold through application stores that have more personalizing interactions between the customers and the associates. Customers are mostly loyal to particular stores due to these interactions, and these stores in the application markets will ensure a successful introduction and increased sales in the market (Deneen, 2005).The application will also be available in specialized stores that deal with engineering software, and in libraries to expand the market to professionals and students. 3.2 Revenue modeling Each application will have revenue of $19.95 on introduction to the market. The cost of goods sold in the process of developing the application is expected to be $10.20 This leaves a gross margin of about (19.95-10.20) =$9.75. This will be the Gross margin before taxation and will be an impressive income, part of which will be used in developing the application. 3.3 Types of revenues There will be two types of revenues. The first will be the initial purchase at $19.95. The second revenue will be monthly or annual subscriptions that will be $2.5 per month per application or $12.5 per year. This subscription will be bought directly after the first month of purchase. This is because; the application will be revised and upgraded from time to time to offer value to customers. 3.4 Place in the value chain A shaky labor market an uncertain economic climate has resulted to falling customer spending (IBISworld, 2011). The application to ensure success in the market has to offer value to customers to encourage them through the falling purchasing power. This will involve ensuring more captivating features that will be perceived by the customer to be above the purchase price. The application will be developed and linked with other specialized engineering databases to enhance the effectiveness during operations. These will include materials databases and other design databases necessary during the fitting work. 3.5 Financial assumptions Due to the rapid growing Smartphone and iPhone market, it is expected that more than 1000 applications will be sold during the first month of launch with sales increasing drastically as more customers become aware of interactive features offered by the Professor of Plumbing applications. Efforts will be made to promote the application through several professional databases to increase these sales. With increased market penetration and the scales of mass production, the initial pricing of $19.95 is expected to be lowered to about $14.65, with both the annual and monthly subscriptions expected to be lower. With increased sales and modifications of the application, the initial and old version will be availed for free to users. This is expected to be within the next 3 years from the launching date. 4.0 Expected loss and profit account Category Amount ($) Sales 30,000 Opening stock 5,000 Purchases 7,000 Closing stock (Less) 2000 Cost of goods sold 10,000 Other costs 5,000 Gross profit expected. 15,000 5.0 Conclusion The Professor of Plumbing application is a versatile application that is expected to offer new approach to piping systems to professionals and students at advanced levels. The project is very feasible in that while other similar projects use separate handsets to offer similar benefits, the application will allow the user to use their own iPhones, iPads or any android based Smartphone to achieve the same objective and with added features. This will reduce cost to users. The product has to be launched through successful and interactive application markets to ensure customer satisfaction and loyalty when using and buying the application. To make it more interactive, regular advancement and modifications will be carried out as well as interlinking it with other databases that are used when planning and designing plumbing works. 6.0 Work cited Daneen, Kurt. Driving organic growth in retail. Gallup Management Journal. 2005, 11 Aug. http://gmj.gallup.com/content/17704/Driving-Organic-Growth-Retail.aspx#216, Nov. 2011 Diamond, Mike. New Pocket Tool - Dedicated Piping Calculator: Crunches Construction Math and Delivers Instant Accurate Results. Calculated Industries. 2011. http://www.calculated.com/newsletter/contractormagazine.asp 16, Nov. 2011 IBISWorld. Market research in the US: U.S. industry report. IBIS World. 2011, 22 July. http://www.ibisworld.com/industry/default.aspx?indid=1442 16, Nov. 2011 Read More