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Business Plan for a New Natural Ingredient Surf Wax Joaquim

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Business Plan for a New Natural Ingredient Surf Wax Joaquim Business Plan for a new natural ingredient surf wax Joaquim Manuel Souto Soares Henriques Projeto submetido como requisito parcial para obtenção do grau de Mestre em Gestão Orientador: Professor Gonçalo José Torres Pernas, ISCTE Business School, Departamento de Marketing, Operações e Gestão Geral Setembro 2016 Contents 1. General Company Description .......................................................................................... 3 2. Literature Review .................................................................................................................... 5 3. Objectives .................................................................................................................................... 17 4. Methodology ............................................................................................................................ 19 5. Product ....................................................................................................................................... 23 6. Operational Plan ...................................................................................................................... 25 6.1 Production Process Techniques, Equipment and Tools .................................... 25 6.2 Production Costs ............................................................................................................... 29 7. Marketing Plan ......................................................................................................................... 31 7.1. Background ........................................................................................................................ 32 7.2 Barriers to entry ................................................................................................................ 34 8. Customers ................................................................................................................................... 37 9. Competition ................................................................................................................................ 37 9.1 Niche ...................................................................................................................................... 41 9.2 Strategy ................................................................................................................................. 41 10. Pricing ........................................................................................................................................ 42 11. Promotion ................................................................................................................................. 43 11.1. Image ............................................................................................................................. 44 11.2 Repeat Customers ..................................................................................................... 45 11.3 Promotional Budget ................................................................................................. 45 12. Proposed Location ................................................................................................................ 47 12.1 Short-term .................................................................................................................... 47 12.2 Mid-Long Term ............................................................................................................ 47 13. Distribution Channels .......................................................................................................... 47 13.1 Partners ......................................................................................................................... 47 13.2 Distribution Process ................................................................................................. 48 13.3 Progress ........................................................................................................................ 50 14. Sales Forecast – Assumption ............................................................................................. 51 14.1. Seasonality ....................................................................................................................... 53 14.2 Competitions .................................................................................................................... 53 15. Suppliers and Strategic Partnerships ............................................................................ 54 15.1 Beeswax ............................................................................................................................. 54 1 15.2 Other Suppliers ............................................................................................................... 57 16. Quality control ........................................................................................................................ 60 17. Inventory control ................................................................................................................... 64 18. Location ..................................................................................................................................... 64 19. Legal Environment ............................................................................................................... 65 20. Personnel ................................................................................................................................... 65 21. SWOT Analisys ...................................................................................................................... 68 22. Financial Analisys ................................................................................................................. 70 23. Results and Discussion ........................................................................................................ 71 24. Conclusions .............................................................................................................................. 74 Books: ............................................................................................................................................... 76 Journal Articles: .......................................................................................................................... 78 Magazine Articles: ...................................................................................................................... 79 Web Sites: ....................................................................................................................................... 80 Attachments .................................................................................................................................. 83 Attachment 1 – Semi-Structured Interview with a lawyer ...................................... 83 Attachment 2 - Ideal Random Sample Size .................................................................... 84 Attachment 3- Closed Question Questionnaire ............................................................ 85 Attachment 4 – Product Design and metrics ................................................................. 91 Attachment 5 – Tariff and Trade Barrier Information .............................................. 92 Attachment 6 - Competitor Analisys 1 (Identifying competitors) ............................ 93 Attachment 7- Competitor Analisys 2 .............................................................................. 94 Attachment 8 - The Customer Buying Cycle .................................................................. 95 Attachment 9- Average Design salaries in Portugal ................................................... 98 Attachment 10- Average Web Developer Salary in Portugal .................................. 98 Attachment 11- Publicity prices in Surf Portugal Magazine ................................... 99 Attachment 12- Proposed Location Additional Information ................................ 100 Attachment 13- Assumption of the number of Surfers in each region .............. 106 2 1. General Company Description This business plan is going to be set upon the study and development of a new surf wax to be used in the practice of surf and related sports (with main emphasis on traditional surfing). This wax will be entirely produced using natural ingredients with the majority of the ingredients being of Portuguese origin (its formula is based on ingredients such as: bees wax; pine resin in conjunction with coconut oil). This 100% bio-degradable environment friendly wax- notice the environmentally aware business tendency (Afonso, 2010)- will also try to occupy an important place in the surf wax market on two different fronts – satisfy the consumers search for strong attributes such as weight and a shape. To better determine the best legal form of ownership the company should follow (Sole proprietor, Partnership, Corporation, Limited Liability Corporation) a semi-structured interview with a lawyer was used. Details comprising the methodology can be found in the methodology segment and the format for the interview can be found in attachment 1. The results indicated that the form to follow should be a limited liability company a specific form of a private limited company which consists of a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. In order to best study the
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