A problem statement is a clear concise description of the issue that needs to be addressed by a problem solving team and should be presented to them (or created by them) before they try to solve the problem. When bringing together a team to achieve a particular purpose efficiently, provide them with a problem statement. Our aim as the Big Bip Company is to enhance everybody's well being. Most of the people have faced to a situation when they were hurry and looking for their keys, wallet or something else that they needed at the moment. In order to solve this problem we developed a product called (named same as the company) the Big Bip, the product is composed of a little speaker (which makes a sound) that you stick in your wallet or on your mobile or other things you may lose and you can locate the object by pressing the ringing button if you have a clue where the object could be or a by GPS signal which is transmitted into direction information on the screen of the case.
[...] Our company is going to focus on this product for the first 2 years to make sure that it reaches all of its potential market and this will make a good base on which either we can expand our business into other products or incorporate the manufacturing side of the product into our own capabilities. Our financial forecast shows that we will achieve a break, even in two years. By then, sales turnover will be about 40 million, gross profit about 350,000,000€ per year. [...]
[...] We decide to sell the Big Bip at a price of 49.90 which will be an affordable price to our target consumers. We use the psychological pricing strategy because we think it is the most efficient way to sell our gadget. Examples of competitors: USB rechargeable batteries: - Batteries NI-MH reloadable via USB port or Ni-MH basic battery charger. - Time of loading via USB: 5 hours. - Time of loading via battery charger: 7 hours. - Brilliant indicator of load. [...]
[...] And our unit price for each product is assumed as 39.99 Sales Revenue Forecast Year1 March to February Month Revenue to just opening to just opening because of cumulative effect of grand opening &seasonal peak to seasonal slow-down to summer slow- down to back To school to fall season season to Christmas everybody broke after February Christmas Fixed Costs Forecast Big Bip estimates its fixed costs on a monthly basis: Rent (including taxed and maintenance) 3653 Wages employees only 25000 Advertising 5667 Insurance 1500 Freight( 4.5 2250 Accounting 600 Total per month 38670€ Profit and Lost Forecast Sales to market 479380000€ - Cost of goods sold 4800000 Gross Margin 474580000€ Less selling, general, and Administrative Expenses - Payroll - Rent - Utilities - Advertising - Allocated Cost of Store Equipment 1750 - All other 2500 TOTAL Business (Mainly on the Internet) China (For bureau) France equipment supplies and other foul-ups Cash Flow Forecast (Year Competitive environment First of all, as our product is totally new on the market, we do not have direct competitors to face. [...]
[...] Public relations Moreover we will make contacts with TV animators in the most popular channels and ask them to promote the Big Bip during their show when they usually present new products to people early in the morning or at night before the news, it will be introduced as the newest technological product and ideally this will happen in the two months preceding Christmas, it will provide us publicity and our product will be considered as a trendy present for Christmas. [...]
[...] Like others gadgets, Big Bip can be useful for a lot of people who have difficulty to always find what they want like their car's keys or their wallet. Big Bip can help them to find things easily and avoid wasting time. We can define our target as people who like new technological products and who have difficulties in finding their stuff. Our principal target is men who are around 30 with a good way of life and an interest in the latest technology. [...]
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