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Z– READY
Z – READY: Business Plan for a New Corporation
Prepared by Lund Management Group Inc. Tom Lund, Lindsey Maughan, Kristi Simpkins, Natalie Skoien, Kamille Thompson, Beth Hennefer
October 5, 2011
EXECUTIVE SUMMARY Zombies have become a nationwide obsession starting in 1968 with George A. Romero’s thriller Night of the Living Dead, which brought zombies into mainstream American culture. Since then, and especially in recent years, zombies have been the popular subject of television, movies, video games, apps, books, and of course Halloween. And now there is serious talk—and fear—of a zombie apocalypse. Even the Centers for Disease Control and Prevention published an article May 18, 2011 entitled Preparedness 101: Zombie Apocalypse. Just such an event is what Z-‐‑Ready has come into the market for. Our mission is to prepare humanity for the wholly probable event of a zombie apocalypse.
Z-‐‑Ready has developed product labels that you as a business partner can purchase and apply to certain products that line the shelves in your place of business. The fast-‐‑growing customer base of die-‐‑hard zombie believers is sure to find these products a necessity for personal survival during a potential zombie apocalypse. Because Z-‐‑Ready is the first to develop such a line of labels, there is almost no competition and demand is sure to be high. Z-‐‑Ready will permit its labels to appear on products that we as business partners have established will protect an individual in case of a zombie attack.
While Z-‐‑Ready labels will come to you, the buyer, at relatively inexpensive cost, it will allow you to significantly increase product prices and boost your business revenue. Customers are sure to pay more for something they feel confident will protect them from potential zombie dangers. Z-‐‑Ready will work with individual businesses to develop a plan of action in regards to which products will be Z-‐‑Ready certified, how the label will be applied, and what marketing strategies will be most effective.
Z-‐‑Ready comes to you with a fully certified staff in business and zombie experience. We first worked together as students and formed the Lund Management Group. From there we have only increased our portfolio and experience in the business world. We recognize the personal risk we are each taking in starting this new business, but we are completely confident in our abilities to make it a success. We come to you with a wide range of backgrounds in such fields as marketing, finances, production, and logistics. With your products and our labels, we are sure to make a mark in the business and consumer world.
Z-‐‑Ready invites you to join us in our business endeavors and to recognize the great potential for success. Please turn to the more extensive business plan that follows for a detailed account of Z-‐‑Ready’s production and business plans. We look forward to working with you, securing a successful future, and protecting the world from the threat of zombies.
TABLE OF CONTENTS
CONTENTS Executive Summary ..................................................................................................................................... 2
Table of Contents ........................................................................................................................................ 3
Business Profile ............................................................................................................................................ 4
Company Objectives ................................................................................................................................ 4
Current Situation ..................................................................................................................................... 4
Marketing .................................................................................................................................................... 5
Target Market .......................................................................................................................................... 5
Product/Service Strategy ......................................................................................................................... 5
Service Strategy ....................................................................................................................................... 5
Anticipated Challenges ............................................................................................................................ 6
Operations ................................................................................................................................................... 6
Production ................................................................................................................................................... 7
Personnel ................................................................................................................................................. 7
Clientele ................................................................................................................................................... 7
Promotion .................................................................................................................................................... 7
BUSINESS PROFILE Zombie Ready© is a small production company of high-‐‑quality labels and stickers intended for commercial use through retailers mainly on the East Coast, specifically the New England area. Through market studies, the overall conclusion supports the opening of a marketing and distribution center to facilitate those production needs. We believe that by opening up a new marketing and distribution center on the East coast, we will be in a position to corner the market on pop culture that few have ventured into thus far. While the rage in pop culture has spanned the gambit from vampires to werewolves, little has been done to promote and commercialize the zombie end of the fantasy spectrum. The facilities from which we propose to center our business is ideally situated to allow us to produce, and ship our products in a short amount of time. The local economy will be supported through enthusiastic new employment, which will support a minimum of twenty new jobs at first. Relationships with our vendors and suppliers will allow us minimize production costs so that our start up fees will be able to be repaid in a year’s time. We also anticipate a wide range of enthusiastic financial investors to help us expand and build throughout the country.
COMPANY OBJECTIVES Our objectives for the first year is creating our base of “Zombie Ready” certified products and getting our name and image out there. Research and marketing will be involved heavily devising strategies, deciding audience, and developing image. For the second year, we hope to expand our base of products to reach a wider audience while maintaining our image and the hype for zombie apocalypse paraphernalia. In our third year we plan to expand beyond the boundaries of the United States. This may include other “ready” products to meet the demands of the superstitious in other parts of the world. Marketing will grow and improve while maintaining our strong and basic customer base.
CURRENT SITUATION We are coming to the end of year 2011: one year before the presupposed date of apocalypse. The theme everywhere right now, particularly with children, is zombies. It’s become almost an obsession, one that we are ready to jump on. Since everywhere is zombies, we will have everywhere “Z Ready.” A previous similar successful business venture is the certified Green products when the demand for everything eco-‐‑friendly began. Members of our team have worked with elementary school aged children and confirm that the hype right now is zombies. We are certain that products certified “zombie ready” will sell well immediately. We will begin with the children’s market, the gamers’/virtual reality market, and the weapons’ collectors market.
MARKETING
TARGET MARKET Z-‐‑Ready© will be targeting selected Fortune 500 retail stores as they have a large product base with which to use our labels and have a large consumer population. Each of these stores has a large product base of zombie ready items with which to use our tags. They also have a notable consumer population which will be in need of such items. These stores will be located within the New England area of the United States (Maine, New Hampshire, Vermont, Connecticut, Massachusetts, and Rhode Island). Within these stores, our target audience will be teenagers and young adults between the ages of 16 and 25.
There is talk going on all over the world: a zombie apocalypse is coming! Consumers are seeing this on the media. They are reading it in books. It is on the internet. People are scared. They want to feel prepared for whatever might come in the future. The purpose of Z-‐‑Ready© zombie certified tags is this: to help our consumers feel ready for any future zombie attacks. Knowing that they have certified zombie ready products will bring much ease to their minds and peace to their lives.
Z-‐‑Ready will being selling certified tags in the New England states, and as the population demands, will continue west and south in a fanning fashion. As zombie preparedness products increase in their retailers, Z-‐‑Ready© will follow suit to include such retailers into our business circle.
PRODUCT/SERVICE STRATEGY Z-‐‑Ready will produce zombie-‐‑themed labels for retailers to attach to a variety of their products. Because an impending zombie apocalypse is currently a common element of popular culture, we believe these labels will help retail sales for our customers. Consumers will buy products with our labels because they are concerned about a zombie apocalypse and will want to be prepared.
SERVICE STRATEGY Z-‐‑Ready’s labels will be easily recognizable and understood by lending organizations. We will have zombie certified tags the will label our products—the tags will be uniform and universal. This will promote our brand and create product recognition as all tags will be placed in similar places on our products.
The study indicates that shoppers are driven to 1Wal-‐‑Mart for the basic necessities; the chain’s product mix, prices and brands keep them coming back. Nearly 60 percent of Wal-‐‑Mart’s shoppers purchase food and groceries, 25 percent buy basic apparel items, and 24 percent buy beauty products at the store in a typical month.
Many people are concerned about the 2012 ending of the world. A rising concern is occurring with the idea of a zombie invasion. People need to feel prepared and secure. Such a tag on zombie-‐‑ready items would allow for the concerned population to gain a peace of mind in knowing that, no matter what, they are prepared for the future.
Zombie training internet sites and options, zombie preparedness books. An advantage we have is that not all items on internet sites are easily accessible—have to order. Books take a long time to read. Not everyone worried about the zombie attacks has access to computers and capacity to read books. People can zombie shop while they are shopping for groceries!
ANTICIPATED CHALLENGES Our most significant challenge anticipated is easy production of copycat companies. While there are currently no such zombie certified labels in store, our potential competitors include internet groups with the same idea of preparing others for a future zombie attack. These companies focus more on the making and selling of zombie preparedness products. Z-‐‑Ready does not create new products, but will instead show the consumer useful items they may pick up from their local retail store. Consumers will not have to take extra time out of their schedules to search for preparedness items; they may find them in any regular shopping trip. This level of convenience is not found in our internet competitors.
OPERATIONS Z-‐‑Ready©’s product will be inexpensive, small, and easy to assemble. Because our competitive advantage lies in being first-‐‑to-‐‑market and not in proprietary technologies, we will not build a production process, but will instead opt to buy one. Because this strategy ensures little to no overhead expense, no immediate depreciation, and little cost of production, the company’s revenue is sure to go up while its cost of revenue remains down.
We have surveyed the current market for labels and packaging, and found three companies to be of interest to our cause: Fuji Seal International, Avery Dennison, and MeadWestvaco. Though Avery Dennison is not nearly as large a company as Fuji Seal International, their ability to produce high-‐‑quality material and manufacture dynamic and custom designs domestically match our needs best. They have consequently been chosen as Z-‐‑Ready©’s manufacturer.
1 http://www.npdinsights.com/archives/april2005/cover_story.html
PRODUCTION
Production will take place at an Avery Dennison manufacturing facility in Mentor, Ohio. The process simple, involving only a quick-‐‑jet printer and rolls of one-‐‑piece single-‐‑sided transparent labels. For each label design, three size variations will be manufactured: 2’x1’, 3’x1.5’, and 4’x2’.
By offering a variety of sizes, we are widening our market to retailers of a myriad of goods. From chainsaws to first-‐‑aid kits to canned food, an appropriately visible label will be available. Initially there will be two designs offered to customers, though more will be offered in the future. As we introduce different styles and designs into our collection, we hope to widen our market base even further.
PERSONNEL This operation is small. We have no need for production facilities, and therefore have little need for a large number of personnel. We plan to hire five Customer Relations Specialists within the first six months. These specialists will work in separate areas to locate and procure new clientele. As need dictates, hiring will expand after the first year.
CLIENTELE Our clientele will vary widely. Z-‐‑Ready’s products are intended for virtually all goods, so potential clientele will range from supermarkets to hardware stores. Expecting sharp jumps during the Halloween season, Z-‐‑Ready labels could also be marketed to seasonal costume and prop retailers
PROMOTION Everywhere you go, it is there. Talk of zombies. The coming zombie apocalypse is mentioned with more and more frequency. The zombie apocalypse might be the end of humanity as we know it. What is being done about it? Who is taking measures to protect the general public? Who is providing supplies to prepare for the inevitable?
Z-‐‑Ready© is the first business who has supplies and weapons that have been tested and proven to kill the undead that threaten our very existence. Our main objective is to arm people and make them legitimate Zombie slayers. We are the first company to provide products specifically designed to wipe out the Zombies. Other businesses don’t think Zombies are a credible threat. Don’t let them lull you into a false sense of security. Be prepared for the battle for humanity by getting your Zombie Ready gear. Our customers will feel secure in the knowledge that they will be prepared for the Zombie war. Customers and zombie enthusiasts will be drawn to our innovative new line through posters and commercial advertising. During the Halloween season, Z-‐‑Ready would focus on marketing to seasonal costume and prop retailers. Our wide range of products will provide the best quality of protection for the lowest price. These products will be available on-‐‑line and in stores through participating retailers. Demonstrations will be scheduled to show how effective Z-‐‑Ready© products can be. Customers will feel safe knowing that their families and loved ones are protected against this specific threat. Arm yourself and become the Zombie slayer that you were meant to be. Be prepared.
COO
CEO
VP Sales/Finances
VP Marketing
VP Human Resources
VP Technical Design