Business plan
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Business Plan Sample 4
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XXX LTD 48 Value Proposition Figure 18. Value Proposition Advanced Technological Product Value Added Tested Innovative Approach Competitive Cost Niche Specialised XXX LTD 49 Advanced Technological Product The company is going to deploy a high advanced software selected within the list of four suppliers mentioned before. They will be very careful to select the best company to provide the best product in terms of quality and price. Value Added Tested Most of the suppliers have been tested in the market and some of them, such as Celonis counts with very prestigious clients around the world, including Siemens, L’Oréal, Uber, Citi, Airbus, and Vodafone, which rely on Celonis technology to guide action and drive change. Innovative Approach The Intelligent Business Cloud delivers an innovative approach dealing with the combination of three main factors: Process System People XXX LTD 50 Competitive Cost XX LTD will be in a unique position to compete in the market due to the possibility to hire consultants from India for a lower cost than in UK making the overall cost of the project more competitive to its clients, while maintaining the quality of the services because of their knowledge and experience working with those consultants. This, combined with the more effective and affordable cost of Celoris, will place the company an unbeatable position to offer better rates in the market. Niche Specialised Small companies, entering in a market where there are strong brands such Accenture and others, must be focused on a niche to concentrate all their effort in order to obtain a notable penetration and gain references within the same segment of clients. That is why, XX LTD is about to specialise in these two areas: • BPM, business process management • Financial Services, Pubic Sector, Telecommunications and Pharma. Even, they are authorised as Crown Commercial Supplier by the public sector and G-Cloud to provide It services within any institution in the public sector. XXX LTD 51 Regarding the pricing strategy is going to be used a combination of competition based strategy, setting a price based on what the competition charges with penetration pricing, setting a low price to enter a competitive market and raising it later. Competition Based Penetration Pricing Pricing Strategy 4P’s STRATEGY - PRICE XXX LTD 52 Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market. With competition pricing, a firm will base what they charge on what other firms are charging. This means that prices will be set depending on the results from their research or previous knowledge of the market. One advantage of competitive-based pricing is that it avoids price competition that can damage the company. Disadvantages include that businesses have to attract customers in other ways, since the price will not grab the customer’s interest. That is why this strategy will be combined with penetration price strategy. In Penetration pricing, the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth. Their main advantages are: • It can result in fast diffusion and adoption, which can achieve high market penetration rates quickly and take the competitors by surprise, not giving them time to react. • It can create more trade through word of mouth. • It discourages the counteroffers of competitors. Low prices act as a barrier. • It can create high stock turnover throughout the distribution channel, which can create critically important enthusiasm and support in the channel. XXX LTD 53 Regarding the current rates for contractors and small companies, figure 20 and 21 show the main figures. The average rate in UK is £438, being £550 in London. If the company want to be competitive in price, they should offer a 20-25% discount over that rate at £412-£440 consultant / day. Regarding project managers, the average daily rate is £470 in the country and £565 in London. The company will offer an average discount between 20-25%. 0 100 200 300 400 500 600 700 UK Median Rate UK Median Excluding London Median Rate in London Daily Rate Man - Consultants 2020 2019 2018 0 100 200 300 400 500 600 700 2018 2019 2020 Daily Rate Man - Project Mannagers UK Median Rate UK Median Excluding London Median Rate in London Figure 20. Daily Rate Man for Consultants Source: ITJobsWatch, 2020 Figure 21. Daily Rate Man for Project Managers Source: ITJobsWatch, 2020 XXX LTD 54 Figure 22. Methods Used by Clients when Looking to find a consulting firm in UK. Source; Statista It is important to consider figure 22 when planning the main sources to promote and commercialise the services of the business. As reflected references, online website and events and conferences are the main sources. 0% 10% 20% 30% 40% 50% 60% 70% 80% Contacting Other Outside My Firm Contacting Colleagues In My Firm Reading Content Website Viewing Public Presentations in Event, Conferences Reading Online Publications Seeing Consultant Quoted in Online Publications Reading Print Publications Using Search Machines Attending Seminar of Consulting Firms Listening to webminar of Consulting Firms Methods Used by Clients when looking to find a consulting firm in UK 4P’s STRATEGY - PROMOTION XXX LTD 55 Figure 23. Promotion of the Business References Events Online Website Social Media Sales Executive / Lead Generation / Sales Agents XXX LTD 56 References According to figure xx, the main source when looking for consulting services is internal and external references. The company will look for references or introduction to the decision makers in the company. This can be made by doing the following: • Checking whatever contact any employee in the company that could know anyone in the client’s company. • Reviewing platforms such as LinkedIn where it would be possible to find any reference. • Contacting past clients, which could have any connection with potential clients. By doing this, it is important to get contact with the DECISION MAKER in the company. At the same time, XX LTD is going to a Customer Reference Marketing plan by including valuable references in its social media profile and website. T he use of customer references to facilitate marketing and sales in business markets has received growing interest. The importance of references has been highlighted in a wide range of contexts, such as customer relationship management, customer value management, sales, and marketing communications. Events & Conferences Events and Conferences is a good source to business development for the following reasons: |
