623 W8A
presentation on: promise Inc.
Presented by: {Your Name}
Presentation date: 22TH JUly,2020
*
Sales traction
According to the analysis that I have conducted on the products market alongside the current sales of Promise Inc. there is a positive gradient in the company’s product as well as sales.
- Promise Inc. is coming up with new strategies in the market which is making its products to attract many customers. This is to say that it has gained momentum over the other competitors in the market. This is illustrated from the continuous increase in sales of the company’s products.
*
Promise Inc. market opportunity
According to market opportunity analysis, Promise Inc. has got a greater opportunity in the market because the branding of their products is much different from the market competitors, making it have a unique competitive advantage in the market.
As per the market analysis, Promise Inc. will control over 40% of the product’s market in the region. This is specifically a large share and opportunity in the market.
*
Promise Inc. Market gap analysis
From the graph, there are two variables which are number of production and the duration in weeks. The number of production is observed to be increasing with time. For example, by 14th May 2020, the sales rate was 7000 per week, but with the increasing trend, after some weeks, the sales rate rose to 10000 per week. With the increasing trend in the model 3 production, it’s evident that the company is doing well in this stock production and sales (Lehman, & Zaitsev, 2017).
*
The Concern Problem Being Solved
The main problem to be solved is the poor quality products and services in the market. This has been the main issue with the customer complaints regarding the market product quality and services
The poor quality of goods and services offered in the market greatly tend to determine the low competitive advantage of the industry companies in the market. Therefore this is a market opportunity which Promise Inc. observed and utilized in the market, hence the reason as to why it’s prospering in the industry at a faster rate.
*
Solution to the problem
The main solution problem to the problem is the introduction of high and good quality products and services into the market. This has been the main issue with the customer complaints regarding the market product quality and services
The quality of goods and services offered in the market greatly tend to determine the competitive advantage of the company in the market. Therefore this is a market opportunity which Promise Inc. observed and utilized in the market, hence the reason as to why it’s prospering in the industry at a faster rate.
*
Five year Revenue trend
From the graphical representation, it’s clear that the revenue for the first year is the highest due to the fact that there will be no dividends to be given to the investors. For the second year, the revenue happens to slightly drop due to the fact that the business will be adopting to the market forces before attaining a higher competitive advantage due to its quality products and services in the market.
*
Marketing and growth strategy
Promise Inc. embraced the use of three main marketing strategies which include;
Product development
Price market leading
Product promotion
Product
To begin with, develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right business at this time.
Prices
The second P in the formula is price. Develop the habit of continually examining and reexamining the prices of the products and services you sell to make sure they're still appropriate to the realities of the current market. Sometimes you need to lower your prices.
Promotion
The third habit in marketing and sales is to think in terms of promotion all the time. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them.
*
Promise Inc. team and competition
I personally have an experience of seven years in the industry. The product promotion manager will be hired together with the general operations manager.
The main competitor of Promise Inc. is Wal-Mart that is directly competing with Amazon being my indirect competitor.
The experts to be hired are meant to foster the company’s big agenda of providing quality products to the market.
*
Profit and Loss Statements(Revenue)
| 2020 | 2021 | 2022 | |
| Sales | $279,160.00 | $558,330.00 | $1,116,700.00 |
| Direct cost of sales | $62,000.00 | $123,900.00 | $247,800.00 |
| Total sales cost | $62,000.00 | $123,900.00 | $247,800.00 |
| Gross Margin | $217,160.00 | $434,430.00 | $868,900.00 |
| Gross Margin percentage | 77.79% | 77.79% | 77.79% |
*
Profit and Loss Statements(Expenses)
| Expenses | 2020 | 2021 | 2022 |
| Payroll | $120,560 | $563,800 | $704,000 |
| Marketing and Advertisement | $15,000 | $$15,000 | $15,000 |
| Rent | $$202,800 | $230,000 | $247,800.00 |
| Utilities | $3,500 | $6,400 | $7,430 |
| Location Setup Total Operating Expenses | $30,000 $169,060 | $35,000 $835,200 | $35,000 $1,009,230 |
*
Profit and Loss Statements(Expenses)
| Expenses | 2020 | 2021 | 2022 |
| Before Interest and Tax Profit | $48,100 | $(400,770) | $(140,330) |
| EBITDA | $48,100 | $(400,770) | $(140,330) |
| Net Profit | $48,100 | $(400,770) | $(140,330) |
| Net profit/Sales | 17.23% | -71.78% | -12.57% |
*
Investment ask
Taking into account that investors’ money is interest free and is up to $200,000, this will be the most suitable funding option. The investors will own one share for every $300 given to the business and their total percentage of shares is 30%.
The company will require $200,000 of investment, of which 50% will be used for development and another 50% for business sustainability.
*
References:
Chaudhry, N., Au Yong, H. H., & Veld, C. (2017). How does the funding status of defined benefit pension plans affect investment decisions of firms in the United States?. Journal of Business Finance & Accounting, 44(1-2), 196-235. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/jbfa.12219
Chen, X. P., Yao, X., & Kotha, S. (2019). Entrepreneur passion and preparedness in business plan presentations: a persuasion analysis of venture capitalists' funding decisions. Academy of Management journal, 52(1), 199-214. Retrieved from https://journals.aom.org/doi/abs/10.5465/amj.2009.36462018
Rauh, J. D. (2016). Investment and financing constraints: Evidence from the funding of corporate pension plans. The Journal of Finance, 61(1), 33-71. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540- 6261.2006.00829.x