Proposal Writing
Part 1
Cover Letter
The proposal in this document to invite your organization to invest in our baby cologne manufacturing company, where we are currently seeking for £1, 500,000.
We at Perfect Joy Babycare (PJB) Company manufacture the best of baby cologne. Our market covers the whole of United Kingdom and we are looking to spreading our business to other Europeancountries within the next few years.
Our products are made from the highest quality, with good human resource personnel, quality materials. We have motivated employees that observe our ethical standard of manufacturing our products.
We will efficiently and effectively put our machinery and resources in delivery the best and the profit maximization for us and our partners will be accrued within the two years of our operations.
Thank you as we anticipate your investment in our business. We look forward to doing more business with your team in the nearest future.
De May Brown.
CEO, Perfect Joy Babycare (PJB) Company
Executive Summary 4
Investment Strategy ..5
Purported Objectives ...5
Targeted market .7
Products 8
Marketing plans..s..8
Marketing strategic plan..9
Structure and capitalization ....10
Financial plan .11
Ratio Analysis 12
Payback Analysis ....12
Profit share and investors benefits ....12
Five Implementation Plan ..13
Financial Control ...14
References ..15
Executive Summary
The market for baby perfume in United Kingdom is virtually new, hence, less competition and the ample room to grow is available in this manufacturing industry. The profit maximization ratio for companies in this market is very encouraging and promising. Therefore, Perfect Joy Babycarewill use the best of strategic marketing (product differentiation, TQM in gaining greater market share and bringing the desired dividends to our partners, shareholders and financiers. The organization will operate effective marketing strategies, which will include cost effective strategy, total quality management and supplementary project as accompany strategies to allow our organization to compete favourably.
Our qualitative objectives include to have a sound financial reports, good communication across top and low bottom of employee cadres, have a strong corporate culture that follow ethical standard in every of our operations. In Perfect Joy Babycare quantitative objectives include we look to capture 40 per cent of the market share in our 4 years strategic plan; plan to have 20 channels of distribution within our first year of operations; to spread our operational base to five European countries within 5 years and to increase our market capitalization to £1,000,000 by five years.
Part 2
Investment Strategy
Perfect Joy Babycare, UK, will operate to large extent niche marketing where its baby fragrances products will be manufactured having in mind the product differentiation strategy. This will be practice accompanied with total quality management, in order to bring values to our customers/buyers and gain large market share. Niche marketing concept applies where a producer tries to differentiate their products from those of rivals in the industry. Niche marketing cuts across every industry and it is operational when an organization implements a product differentiation strategy, to curve a niche through unique product quality, branding, taste, size and shapes.
Purported Objectives
In order to operate effectively as a major dealer in baby perfume in the UK market, the following considerations would be adhered to in other to attain our corporate objectives and long term goals:
Qualitative Objectives
The framework for the proposed Perfect Joy Babycare would have a far-reaching shared vision that allows and facilitates prudent financial implementations of projects that will ensure effective maximization of opportunities for the benefits of our shareholders and investors. In this regard, our cherished investors and financiers would be adequately carried along in every aspect of our deals and there will be accountability, clarity and articulation of purposes.
Through effective communication, all stakeholders would be made to key into this business and support it to succeed. To achieve this, constant communication of the company’s auctioning deals and business transactions would be communicated at general meetings that would take place once quarterly. This will enrich our medium for disseminating information and maintaining cooperation required to keep on the vision to operate and become one of the top baby fragrance producers in UK.
Our inclusive model of management for Perfect Joy Babycare will promote and sustain an organizational culture and structure that help every of our partners and financiers to realize their aspirations and actualize their dreams of owning and partnering with top leading investors and businesspersons. We shall set standards that other rivals will find too high to emulate. Every staff and partners of Perfect Joy Babycare will have a sense of belonging and their aspiration to advance their careers will exist within a very supportive business environment.
Our choice of operating inclusive organization setup won’t be a basis to compromise high productivity and discipline. Hence, unnecessary risk and attitudes that hinder successful operation of our art business will not be tolerated.
Quantitative objectives
- The organization will operate to gain 40 % of market share in 4 years’ time. This will be achieved through effective strategy implementation.
- In addition, the organization will have over 20 channels of distributing our products within the 1 year that we begin operations.
- We will work to spread our business to five neighboring European countries within 5 years of our operation.
- We shall also strive to grow our company’s market capitalization to 1,000,000 £ by 5 years we start operations.
Targeted Market
The UK market for baby perfume is still virtually young and there is a wide grown to grow due to less competition. The only known player in this market, in the country is Johnson’s Baby. This company has one product in this segment of its chains of products for babies.
The Johnson’s baby cologne comes in a blue-labeled lotion bottle container and is formulated, alcohol-free for delicate skins of babies. According to Daniels (2009, p. 7), there is a rapid growth in baby product industry as new entrants are coming into it monthly.
Outside the UK, France is known to have a more competitive market for baby colognes with several organizations as rivals in the industry. As in another segment of baby product industry aggressive marketing has been witness, for instance, in infants’ formula (Chetley, 1986), but the Cologne market is virtually still new such is not present.
Products
Baby cologne, with quality and comes in different fragrance that will make babies; 0 to 5 years to be attracted and appealing to their parents and any visitor that comes nearby. Our products are listed below as:
Blue ray perfume; comes in blue packaging and are for boys
Perfect flow; comes in yellow packaging and it is produced for mixed sexes
Pink flower: This product has Rose color and scent for girls.
Marketing Plan
An experienced marketing manager will take charge of all the tasks of introducing and advertising all of Perfect Joy Babycare’s products. Part of his/her function is to continuously increase the competitive advantage of our company in the UK’s market for baby perfume and to conduct researches for product innovation that will make us gain high market share in our immediate market and look forward to gaining more prominence at the international scene.
Action plan in Gaining competitive Advantage in the Market
- Stocking top quality baby perfume products.
- Organizing shows to demonstrate our products to potential customers, hence, places like post natal clinic and crèches were little babies and their parents are known to congregate will be our target points.
- Exhibitions in major international and local trade fairs
- A forceful and effective advertisement will be carried out regularly; using the print, broadcast and electronic media to create awareness for our products.
Perfect Joy Babycare will use multifaceted marketing tools in achieving our dreams of gaining large market share as spelt out previously.
Marketing strategic Plan
Perfect Joy Babycare will want to dominant the market and gain large market share. The strategic plan of using well planned product advertisements, exhibitions and shows to make our presence known will enable us to gain some share of the market in few year of our debut for marketing and operations. We anticipate a 5-10 per cent market share. Our target for the 2 years will be gaining 20 per cent of the United Kingdom’s baby perfume market and 40 per cent in four years.
Structure and Capitalization
While Perfect Joy Babycare is still in the process of organizing its structure, the operational expenses will be financed by the fund investment from influential individuals, partners and corporate organizations. In setting up a business, the initial capital outlay will be put up by the owner.
Part 3
Financial Plan
The estimated initial capital outlay for Perfect Joy Babycare will be 30000£.
Below is the summarized breakdown of the estimated cost.
Marketing 10000£.
Manufacturing of our product 2000£.
Others Utilities 5000£.
Other expenses 10000£.
Before Perfect Joy Babycare can fully operate at its targets in the market, it will take a month to prepare the business and train competent staff to lead and manage the operations. It is expected that the first month of operations will only result to net cash outflows since there in no expected income to be realized. That month expenses will be financed by the fund generated from partners and owners start-up investment.
The total Initial capital outlay for Perfect Joy Babycare will be 30000£. On the succeeding months of operations, the company expects to earn high returns.
Ratio Analysis
- Payback Period
Payback Period measures the span of time to which the initial capital outlay in setting up the business operations can be fully recovered.
The capital outlay of 30000£is expected to be earned within the 2 years of operations.
- Profitability
There is a very high profitability for Perfect Joy Babycare’s baby perfumes because the demand is expected to increase from time to time and it covers a wide market with innovative marketing strategy.
On The First Year, the expected Return on Investment is only 5.43% of the initial capital outlay, this is because many market experimentations are expected to occur and the achievement of the overall target is set at a low level.
On the second year- the estimated Return of Investment is 10.41 times the initial investment. While on the third year is 16.78 times than the initial capital outlay.
Return on Sales measures the percentage of net income earned over the Total Sales. This ratio will illustrate the relationship of the income earned, and the cost in providing the products or services.
Profit share and investors benefits
Our investors will get a percentage of profit according to the volume of fund invested into the business. Dividend would be shared based on according to the volume of profit maximized. For core investor, apart from the profit shared annually, owners authorized shares will be given in a ratio of £1,000 invested for 10 ordinary bonus shares.
Expected return on investment for the sale of this product is very high.
Since Perfect Joy Babycare will be dealing with retailers, it is estimated that 20 to 50% rebate would be given to them for them to have their margin profit. For instance if our baby perfume goes for 4£ per bottle, it is estimated that our retailers will receive the products for 2£ and sell to the end users for 4£.
Having a turnover of 50,000 products in our 1st year of operation, it means we will have sales amount of 100,000£. Lessing about 30,000 £ from this sale, we will be making nothing less than 70,000£ in our first year and there is ample of room to double or triple this amount in subsequent years.
Five Implementation Plan
Administrative & Operational cost £30,000 £70,000 £90,000 £120,000 £150,000
Marketing cost £15000 £25,000 £35,000 £45,000 £55,000 Technology operational cost £10,000 £12,000 £10,000 £8,000 £5,000
Business expansion cost £0 £50,000 £100,000 £150,000 £200,000 Personnel recruitment cost £200,000 £250,000 £300,000 £380,000 £460,000 Expected salaries/ wages bill £400,000 £650,000 £850,000 £1,000,000 £1,050,000 maintenance bill £12,000 £24,000 £32,000 £48,000 £56,000 Consultancy fees $0 £5,000 £8,000 £12, 000 £15,000
Financial Control
In Perfect Joy Babycare, we shall maintain a prudent financial control system and accountability will be outmost and a priority to safeguard our future and operational plans. We shall employ the best of employees who are honest, experts in their field and able to manage our finances.
We shall also streamline out financial portfolio in such a way that we don’t run into huge debts and we shall work within our limited resources.
Ways of ensuring an effective management of properties by organizations, Elcock (1994), argued that ``on a more positive note, many new means to improve the efficiency of resource use have become available to local authorities. These have included operational research, work-study, organization and methods techniques, revolutionary improvements in information and communications technologies and new methods of budgeting and financial control. Thus, both the pressures imposed on managements of organizations and the opportunities available to them have combined to produce major changes in their approaches to managing their resources''. Vital decision making regarding property management by local authorities can be derived through encouraging public participation and setting machinery for effective information dissemination. This is done through harnessing the views of the local people and giving them a reason why they should cooperate with the authorities in order to ensure effective management of common property.
References
Chetley, A. (1986). The Politics of Baby Foods. Successful Challenges to an International marketing Strategy. London: Frances Pinter Publishers.
Cooper, L.G. (2000). “Strategic Marketing Planning for Radically New Products, Journal of Marketing, Vol. 64, No 1.
Daniels, Jane. (2009). “Marketing Strategies Within the Baby Product Industry”, Eastern Michigan University, http://commons.emich.edu/cgi/viewcontent.cgi?article=1137&context=honors (Accessed 31-1-14).
Elcock, Howard. (1994). Local Government: policy and management in local authorities A London: Routlegde.
Ferrazzi, Keith. &Gatti, Lisa. (2007). “The Human Element of Successful Training”,JuneABI/ INFORM Global, 61(6c): 68
