assignment

WarmZone Company, located in Hayward, California, provides lightweight, safe and affordable outerwear with built-in internal heating outerwear with the potential to adopt new technologies. WarmZone jackets enhance an individual’s, enjoyment of the beauty of winter comfortably without the need for redundant outwear, such as a jacket.

The WarmZone jacket is a great solution for people who with low tolerance to cold weather but wish to enjoy winter outdoor activities. , we offer you innovative techniques that help you get warm. More generally, our products also allow users to customize the temperature that they feel comfortable the most.

The co-founders of WarmZone, Prabhjot Singh, Ghsoon Affan, and Van Tran, have a combined 34 years of sales and marketing and business management experience. are co-owners of WarmZone. Our passions include outdoor activities and passionate in fashion design. Our background in business management will embrace to manage and grow this company. As we grow the company, we will develop a culture that emphasizes teamwork and rewards for individuals for their contributions.

Our initial target market is based upon geographic and demographic factors. Geographically, we will target market customers who live, work, vacation or do business in cold climates. Our market research has shown that the highest demand for WarmZone jackets are adults with the age range from consumers between 25 to 54 years old who are active and like enjoying outdoor or athletic activities. They have an average income of $ 73,778 per year.

Our marketing strategy will be developed based on market positioning in terms of 4P’s in marketing mix. They are  Product, Price, Place, and Promotion. The gross margin per product is approximately 60 percent. Heated jackets are seasonal products, therefore, with this pricing strategy, we expect to sell more products and penetrate our market share in winter clothing industry. Our competition includes well-known brands for traditional active apparels such as The North Face, Nike, Adidas, Under Armour. They all offer winter active wears, but none of them carry a heated jacket option. This is one of our competitive advantage to compete with those strong competitors. To continue to add to our value proposition to the consumer we will intensively focus on improvements to product design and product quality. For our distribution channel, we offer direct sales through our website to keep our overhead low. Also, we offer wholesale to retailers. Our plan is to promote our brand and reach potential customers through TV shopping channels in order to demonstrate on product design and function. Social media is also key part of our marketing plan to raise consumer awareness of our products.

We outsource heated jacket parts internationally to save cost of production and assemble parts in our warehouse to ensure quality control. The cost of each jacket is around $99. [DW: Whose cost? Company or consumer? Need to show unit profit] We optimize that our products that can reach 10 percent of our target customers based on demographic. Through distribution channel and marketing, sales growth expects to gain 15 percent annually and 75 percent gain on sales revenues for 5-year period.

In manufacturing industry, our investment capitals place heavily on production process. The projected cost of units produced in year one is $637,381; and other costs such as management, administration and marketing bring our 1 year total costs to $ 900,000. Each co-owner contributes $200,000 equally to this company. We are seeking $300,000 to finance our first-year growth together with co-owners’ capital investment total of $600,000 to meet first year operating and acquiring inventory in hand to avoid stock out.