BUSINESS PLAN ASSESSMENT
CHILDREN`S TRACKING DEVICES
FALL 2014
CONTENTS
Executive Summary:
This business plan was developed on a topic of using the tracking devices that can be attached to the school goers and young children for the purposes of tracking them. The business plan was developed as the part of our studies at the PMU. And all the information provided included the realistic data and facts with a purpose of making this business plan to be accurate, complete and informative in its nature.
Keeping the track of children is the parent’s most important concern because of the rapid life of their kids and rising crime rates. These facts urged many people to find the systems for securing children and knowing their exact position 24/7. Such “child tracking” gadgets are an ideal way to keep track of children for the purpose of their safety no matter where they are since children`s safety and security are prime responsibilities of their parents and teachers.
The children tracking system and devices are an ideal tool for multi-child families since such gadgets could greatly reduce parents` stress and ease lives of parents as well as secure their children.
The Proposed Company
Our vision is to offer the electronic tracking devices connected to GPS (the Global Positioning System) services that can help the parents to track movements of their children with ability of easy finding of locations of the their children for the safety of the latter and for security purposes. There are many incidents happening to children, such as accidents, their loss or even kidnapping that makes parents` life very miserable.
Tagline: Keep your child always on your radar
This is a concept for developing a small wearable waterproof electronic tracking device that can be worn as a watch, kept in school bags or secretly stitched anywhere into the clothes. This electronic device is linked with GPS system for tracking of a kid, so that parents can hear their kid`s voice and even watch streaming videos from their cellphone.
Vision: To be a Universal front-runner in the advanced technologies
Mission: We thrive for precision, brilliance and reliability
We run this company for making this world the better place with the help of GPS gadgets for security needs. We run this business to ensure a safe and reliable linkage between parents and their kids. Such devices place confidence and sense of peace into the mind of parents, their children and even authorities that is possible due to an ability of keeping children`s location under close surveillance for safety and security purposes. We certify that we offer high value electronic tracking gadgets capable of sharing accurate and reliable information for the most crucial thing – for a child safety and security. Moreover, favorable and innovative solutions were offered to families, corporate institutions and other agencies to foster affordability and unique characteristics of our devices aimed at improvement of well-being of common people.
Products and Services
Usage of tracking devices.
Electronic Tracking Devices Industry
GPS (Global Positioning System) network devices have been growing on the Saudi Arabian market, where large automobile, courier companies, logistic companies have already installed these technologies on their vehicles for tracking purpose. And the industry of GPS devices is determined to expand its scope to other potential beneficial areas that will allow to get updated information of movements of corporate vehicles, parcels and other means of transportation on which tracking system is installed. The satellite alerting and messaging systems have been used for long time for military purposes, and nowadays these technologies are already available for commercial purposes as well.
GPS components worn by children for safety purposes are presently available on many European and US markets. All these products well-known for their minor weight and higher performances systems are very easy to wear. The tracking devices and POS (Point of sale) devices are installed all over Saudi Arabia for instant getting of updated information; and this market is expected to grow by 7.7% between the year 2011 and 2016 and reach $270.3 billion. Saudi Arabia was ranked in 2012 Global Retail Development Index 14 with a score of GRDI of 53.3. Saudi Arabia – is that huge retail market with 4.4 million sq. meters of market covered with various electronic devices and CCTV cameras which are directly interconnected through the satellite navigation system.
Shoppers in Saudi Arabia spend more than one billion dollars every year on various grocery products. Hence, Saudi Arabians can easily afford to spend on their child safety tracking devices any sum that is needed. According to the Census Bureau, the online sales are setting the constantly developing trend in sales of goods through Internet online shopping, C2B (customer to business) and other ways. The methods of sales previously mentioned contribute to growth of the tracking devices market too. The Satellite-based data products manufacturers have developed small-sized transceivers and antennas that can be easily applied on any device such as watches, wrist bands, they can be nested within school bags or in trouser packets and other man-portable devices.
The industry experts believed the sales were expected to grow because of constant expansion into many other devices that help buyers to track those devices all across the world in the coming years. And market of personal tracking devices was estimated to increase by more than one million new devices in the year 2014 and is expected to grow further by 25 per cent. These indexes tend to put this industry among fastest-growing industries that have greatest prospects for growth.
Market Analysis
The satellite tracking device market is considered to expand further in its size in the upcoming years with the emergence of non-military diversification that is likely to be applied to commercial products like courier vehicle tracking system, POS (point of sales) machines and other tracking devices that accept and transmit positioning data. Such devices have many one-way communication sensors that are rather useful for remote monitoring of pipelines and other infrastructure. It needs to be noticed, such devices previously had been used by government agencies and big corporate businesses to keep track of their employees working remotely in places like deserts, jungle or under water. Such a tracking electronic device can transmit signals and trigger action automatically in situations of extreme urgency or in any other panic situations. And many companies continue tracking their employees and their car fleet through such tracking devices and control their employees by sending and receiving test messages and voice messages.
Many IT companies offer services of transmitting the updated information from their various logistics centers operating all around the world to customers and management for better customer relationships and better business results. Currently, a large number of cell phones has such technologies which can help any person to get track of his location rather conveniently. The IT companies charge around 1,200 USD for such services: tracking, network maintenance and monitoring of client`s personal movement.
The tracking devices market has grown at a rapid clip, that an industry alliance formed last year to help the two-way emergency communications and tracking technologies develop in a standardized fashion. Today, many corporate businesses increasingly focus on satellites based tracking instruments that are able to provide a customer with a needed information when such a customer is far from inhabited places.
Marketing Plan:
The electronic tracking gadgets for children need to have affordable price, so that there will be mass acceptance of such devices that will lead to good revenues for a selling company.
Pricing: The electronic tracking device for children will be placed at a very competitive price and the company will earn more profit for running its services over the years. Our company will adopt the competitive pricing strategy.
Product distribution (place):
Hello Kids Company will open exclusive outlets across Saudi Arabia, especially in large cities, such as Riyadh Dammam, Khobar, Jubail, and Jeddah. The Company will consider the establishment of the exclusive dealers/distributors/authorized agents for local and international markets for greater adaptability and marketability of the products.
. The success of the electronic devices for children will be achieved by establishing mutually beneficial cooperation with the Ministry of Education that will allow to promote such tracking devices in schools. The success will be achieved additionally by concluding also private business agreements with schools directly. Additionally, for better customer support, more stores and services centers will be opened up. And the direct marketing team will be getting in touch with customers for serving their needs.
So the management will adopt direct and indirect marketing techniques for winning support of the customers by serving the needs of the latter.
Promotion:
The promotion is a part of marketing programs that includes visiting schools, organizing of family parks and road shows with a purpose of prompting the products` features and functions for generating good sales and, consequently – revenues for the company. The primary aim is to spread marketing message to all the target families and corporate businesses. Main task when showing good features and functions of Company`s various tracking devices is to show that these goods are really useful.
The Hello Kids Company team has set up to promote this idea to local and international clients by concluding special business agreements with hotels, big corporate companies, logistics services companies, by promoting the Company and answering all incoming business enquiries. Moreover, with the current market trends of using the social networking systems, such as Facebook, Twitter, WhatsApp and others, the communication process with the target customers will be facilitated.
Target Customers
The target customers for this products are families who have small kids and big corporate businesses that are interested in tracking their sales and service teams.
TARGET MARKET:
Hello Kids Company has a goal to allow families with kids and corporates to experience safety from Company`s tracking devices. The basic purposes of this project is to ensure the child safety, however the Company shall be able to face any kind of eventualities which might occur. The Company`s products are targeted at kids and sales personnel and service men who work in deserted areas.
We are planning to open our show room in Dhahran Mall, Al Khobar (Saudi Arabia) for showing products` features and functions and for attracting immediate attention to middle and up market customers.
EXPECTED SALES PROJECTION: in Saudi Riyals
The above sales projection shows the company is expected to grow both in sales and providing services. Services are those which offer technical support to products sold and customer support services. This will allow to get continuous flows of revenues for the Company. As the Company is willing to offer services to other private companies and other competitors products with the aim of strengthening its position on the competitive markets. The company has already invested around one million Saudi Riyals, and it is expected to get back the cost of investment on the fifth year of business completion purposes.
Expected Break Even Point:
This project can achieve the breakeven point in five years of successful running and managing the business in the eastern province of the Kingdom. The Company will likely diversify into more lucrative IT industries of mobile apps, multipurpose tracking devices and IT networking and customer support services.
Management Plan
Hello Kids Company has professional facilities that offer production of electronic devices equipped with GPS systems for families and corporates. We have in possession a satellite that is linked up to track all sales both on local and international markets. The dedicated 24/7 customer support services team and marketing campaign team are well equipped to serve the customers for their satisfaction purposes. The finance team has responsibilities to control all the sales revenues and keep tracking of all revenue projection and forecast costing and developing trends in future. All the staff are highly qualified in their respective fields.
Electronic Departments: All staff are electronic engineers with relevant experience.
Finance and Marketing Departments: All staff are successful graduates with experience.
Children Tracking Gadgets business OPERATIONAL TEAM
In order to start this business, the management team has assigned various tasks to the departments’ heads for running the business, which is shown as:
- A showroom for demonstrating products will be rented at Dhahran Mall.
- Showroom will be equipped with POS (point of sales) terminals, and various gadgets will be displayed at the shelves; customer services executives will also be present to serve the customer needs.
- In the same showroom, IT customer help disk will serve any customers queries.
- The sales executive will be also responsible for cash collection from sales and other related services.
Personnel
Available Facilities
The showroom and first floor office is capable to house the startup business with ambitious and dedicated team determined to deliver high quality safe products and assistance of any kind. We have a GEOSTATIONERY satellite server that will trace any object even with low tracking emitting capacities.
Children Tracking Device and Development Plan:
The main way of manufacturing of such devices is importing the key components such as electronics, and other materials can be either procured or produced at the local production units. Since we are a startup company with limited budget, we will not be able to produce the related parts. So either we import the main items from a local supplier and assemble them or completely import the complete product by franchising our products with big corporates.
The design and development plans for either assembling the device locally or total import will be analyzed after careful consideration of business operations within a term of one year or more.
Overall Schedule: The children tracking devices are one of the unique projects carried out in Saudi Arabia. We will attend all the local schools to persuade parents, teachers and administration to perceive this gadget as an obligatory part of their annual package for better child safety purposes.
Risks, Potential Obstacles and Assumptions:
The major risk associated with this project is an unauthorized use of this gadgets, as this gadgets can be used for spying or tracking purpose for unauthorized purposes. The electronic signals sent and received by this device can be intercept by other agencies. Sometimes, these devices can send very weak signals that will not solve the very purposes of buying this product. Therefore, the better performance is always the cause of concern to the consumers and corporates.
Financial Risk:
The financial risk associated with this business is low profit margins and availability of low cost smart phones that also have this feature. This may cannibalize the product itself. As we see, investment into this project has the hidden risks involved The ROI (Return on investment) on this project is a term of about five years and a mean time for the rapid advancement in technological sector might be extended for a period of seven years. The management shall adjust this.
The Financial Plan:
The financial plan for electronic tracking gadgets for children involves setting up of a few showroom accommodations with a small office on first floor. The showroom and the office shall be very well furnished with high quality furniture, shall have of shelves highly sophisticated GPS tracking devices, shall have good connection with sales and services centers supported by a highly qualified professional team.
Sources and Use of Funds:
The initial investment for starting this business is one million Saudi Riyals, which will be arranged from my parents.
These are the Hello Kids Company estimations of financial figures for setting up the geostationary server facilities, electronic equipment and fees. The major investment is needed in the office and showrooms` furniture and for buying cars for staff for their transportation purposes.
Expected Income Statement from Hello Kids Company business operations
Expected Balance Sheet of Hello Kids Company
APPENDICES:
REFERENCES:
INFLUENCE OF ELECTRONIC POINT OF SALE SYSTEM ON SAUDI ARABIA’S SUPER MARKET CHAIN PERFORMANCE. By: http://king-saud-academia.edu/tgkvasista
