Assignment
Rx Travel Company
123 Main Street
Cityplace, ST 55555
555.555.5555
email@email.com
rxdeliveryhypothetical.com
EXECUTIVE SUMMARY
The mission of Rx Travel Company is to provide cost-effective, timely delivery services of medication for local community members without transportation to prevent avoidable health events. The company’s sole proprietor, John Doe, has over 25 years of experience in management. He has chosen to retain sole control to ensure the company remains true to its purpose.
To resolve some preventable medical events, we offer local cost delivery with quality customer service unparalleled by our customers for as little as $10 for some street addresses. This allows our customers to receive their medication even if they have a hard time driving or don’t have access to a car. This helps to improve their medical outcomes and increases their feelings of independence since they no longer need to ask neighbors or family members to perform this task for them.
Our continued growth will be enhanced as we are able to partner with additional pharmacies around the county to reduce drive times and delivery fees. We also plan to improve the ordering process with an app that will allow for customers to order refills and delivery and immediately reach out for assistance if they have a reaction to a medication. We also want to address the impact we have on our environment by investigating the use of clean fuel or electric vehicles as we are able.
We service Orion County residents, 65 years of age or older that are low income. Our data shows that this target market lacks the needed transportation to go to local pharmacies to pick up their needed prescriptions.
There are challenges facing RX Travel Company, but the opportunities for continue growth and our strengths in the local market put us in an ideal position to overcome these and create a stronger company over the coming year. We will continue to accept orders by phone and through an app as it is developed. The convenience we provide to our customers as we take the medications from the pharmacy to them is life changing and we continually try to reach as many new customers as we can. We have found that our older customers still read traditional newspapers while their children often use social media, so we will advertise our services through both of these channels.
All of this has allowed us to earn a revenue of $10,000 during December of last year alone. Over the coming twelve months we predict almost tripling that revenue – to around $30,000 this coming December – as we are able to roll out our new services and as we become better known.
Company Overview
Mission Statement
The mission of Rx Travel Company is to provide cost-effective, timely delivery services of medication for local community members without transportation to prevent avoidable health events.
Principal Associates
John Doe, Owner
· Master of Business Administration
· 25 years of Management Experience
· Certified Public Accountant
The owner of Rx Travel Company is to ensure the overall success of the company. Responsibilities include a focus on developing overall organizational strategy, meeting company goals and deadlines, setting financial budgets, and ensuring organizational quality. Acting as owner, daily oversight of the risks and assessments of the corporation occurs to ensure the future growth of the business. Overall business decisions are held at the discretion of the owner. Suitable growth forecasts are created by the owner monthly.
Legal (Structure/Permits/Licenses)
Rx Travel Company is structured as a sole proprietorship. The structure of sole proprietorship allows the owner to retain complete control over the growth decisions of the business. No partners are involved in the business to retain financial or management obligation over the business. To operate the Rx Travel Company under legal federal, state, and local requirements, the company possesses the following:
· Federal Tax ID Number
· State Tax ID Number
· Limited Liability Insurance
Product & Service Offerings
Products/Services
Rx Travel Company offers the safe delivery of necessary medications to residents in the county of Orion along with a call button device that connects the customer to the service 24/7 days a week. Delivery of medications occur between the hours of 5 AM to 7 PM. Services also include friendly agent verification with your local pharmacy to ensure medication is correct and delivered on-time.
· Safe Delivery of Medication
· Servicing Orion County
· Call Button Customer Connection
· 24/7 Customer Service
· Medication Delivery 5 AM to 7 PM
· Agent Verification
Pricing Structure
The Rx Travel Company reflects the pricing structure of penetration pricing. While there are several competitors in the market, penetration pricing allows Rx Travel Company the opportunity to provide an excellent service to residents in a market that is currently oversaturated to grow the company relatively quickly under the competition.
Research & Development
The goals of research and development at Rx Travel Company are taken very seriously. The owner believes that the company should be continually seeking new opportunities to develop the company’s growth and expand beyond our local community in the years to come. A budget of $50,000 annual is set for reinvestment into the development of new research and development products. Three current projects include:
· Medication Reaction Alert - Alerts emergency service responders of a reaction
· Medication Refill Response - App that allows customers to connect with us for refills
· Medical Supply Delivery System Navigation - Noting closer pharmacies in the area
· Electric vehicle use – Determining the viability of this environmentally friendly option
Marketing & Sales Strategies
Target Market
Through extensive research of the market, the Rx Travel Company has determined the following demographic characteristics comprise the company’s target market because many of the local community members in the area are 65 years of age or older that have been found to be without local transportation. This consists of both men and women. Generally, this target market is also without an elevated level of income ($15,000 or less) and cannot afford a vehicle. They live a very inactive lifestyle and health issues have made it difficult for them to be mobile in the county of Orion.
· Age range: 65 years of age and older
· Genders: Both female and male
· Income level: Less than $25,000
· Lifestyle: Sedentary, difficulty moving, interested in health
· Geographic Location: Orion County
Distribution Strategy
The Rx Travel Company will distribute its product and service offerings via vehicle delivery. Orders will be accepted via App, telephone, and online website. An office headquarters will be available to provide customer service as well at 123 Main Street, Cityplace, State.
Promotional Opportunities
Products and services will be promoted through a mix of traditional and new media, which include newspaper advertisements, radio spots, dedicated Facebook page, and the Rx Travel Company Delivery App. A customer loyalty program will include the 10th delivery free, a friend referral program of 20% of the customer’s next delivery request for the customer and the referred friend, and a contest giveaway monthly for those who choose to enter.
Competitive Analysis
The business environment and pharmacy delivery industry is becoming increasingly competitive. The Rx Travel Company sets itself apart from the competition using its unique value proposition. The unique value proposition for this company is our 24/7 customer service line and agent customer connection. Our agent customer connection allows for one agent to be assigned to one customer on a consistent basis. This helps to establish long-term customer relationships by bringing customer relationships to the viewpoint.
SWOT Analysis
There are several strengths, weaknesses, opportunities, and threats that are related to the Rx Travel Company. Our key strengths within our company include a strong focus on higher customer agents that place the customer first, use our years of experience to deliver quality, provide customer agents that are creative and are familiar with our local community, and have established a presence at an excellent location for the headquarters in the county. Our opportunities are also very evident. We have a fantastic opportunity to build a second location as we expand our product lines, network with pharmacy electronic systems to increase accuracy of orders, connect with pharmaceutical representatives to increase our prescription knowledge, as well as attend the Pharmacy Delivery Conference to understand the latest trends.
However, the Rx Travel Company is not without potential challenging external and internal influences. We are working toward mitigating weaknesses within the company relating to lack of brand recognition and company awareness, overcoming the limited clientele in a limited service area, and ensuring customers understand that our low prices does not mean low value. There are also a few extensive external threats that the Rx Travel Company organizational leaders face in regard to government regulations, natural disasters, poor economy, competition, and political influences that we intend to overcome using our opportunities and strengths.
Financials
Sales Forecast Analysis
The Rx Travel Company is estimated to have $10,000 is sales for 2017 ending in December. The company calculations predict a steady 5% increase in sales from January through June of 2018 as Rx Travel Company maintains the present customer base. In July through September, the customer loyalty program begins, which is expected to double sales to 10%. In October 2018, the refer a friend program launches with an expected 4 time increase in maintenance sales. Using the customer loyalty program alongside the refer a friend program in November in December will likely return a 25% sales percent growth each month resulting a sales forecast of $31,851 by December.
Sales Forecast Data and Visual
|
The Rx Travel Company Sales Forecast 2018 |
|
|
||
|
|
|
|
|
|
|
December of Previous Year: $10,000 |
|
|
||
|
|
|
|
|
|
|
Month |
Sales Forecast (US Dollars) |
Percent Growth |
|
|
|
January |
$ 10,000 |
5% |
|
|
|
February |
$ 10,500 |
5% |
|
|
|
March |
$ 11,025 |
5% |
|
|
|
April |
$ 11,576 |
5% |
|
|
|
May |
$ 12,155 |
5% |
|
|
|
June |
$ 12,763 |
5% |
|
|
|
July |
$ 14,039 |
10% |
|
|
|
August |
$ 15,443 |
10% |
|
|
|
September |
$ 16,987 |
10% |
|
|
|
October |
$ 20,385 |
20% |
|
|
|
November |
$ 25,481 |
25% |
|
|
|
December |
$ 31,851 |
25% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sample Price Sheet
|
RX Travel Company |
|
|
|
|
|
|
|
Street Delivery Address |
Cost |
|
|
Andromeda Street |
$20 |
|
|
$30 |
|
|
|
Ann Parkway |
$40 |
|
|
Persephone Circle |
$10 |
|
|
Helena Circuit |
$20 |
|
|
Clark Drive |
$30 |
|
|
South Soy Street |
$20 |
|
|
|
|
|
Rx Travel Company
SWOT Matrix
Strengths
Customer Focused
Years of Experience
Local Community Familiarity
Creativity
Excellent Headquarter Location
Weaknesses
Lack of Brand Recognition
Lack of Company Awarenesses
Low Prices
Limited Service Area
Limited Clientelle
Opportunities
Building a Second Location
Offering Different Product Lines
Networking with Pharmacy Electronic Systems
Attend Pharmacy Delivery Conference
Connecting with Pharamcutical Representatives
Threats
Government Regulations
Natural Disasters
Poor Economy
Competition
Political Influence
Sales Forecast (US Dollars) January February March April May June July August September October November December 1100 1210 1331 1331 1331 1331 1331 1331 1331 1331 1331 1331