Virgin Energy is a service company that permits customers to purchase buy ?fuel' (unleaded & diesel) at an optional and revolutionary price ("Virgin Price") in advance. However, this facility is available only within the UK. We will begin by offering a wide variety of price indexes for term contracts. The term contracts range from 2 months, 4 months, 6 months and 12 months through a Virgin Oil card system. Our objectives for the long and short term perspectives include: -
? To provide an opportunity for the end- users to fix their fuel price. This is the first time that such an opportunity has been granted.
? Increase brand recognition and acknowledge the fact that the customer is the king and hence, involve the customer in the revolutionary price fixing of its own fuel consumption.
? To attain a reputation for reliable services across the UK border.
? To attain the designation and role of being the first non oil related company (upstream and downstream) which is active in the oil industry. Thus continuing to acknowledge that the company is the market leader in this service.
? To be in a position to develop a reputation for proposing a different offer with a large selection of alternatives in the purchase of fuel via our service. However, it should be noted that the best partners and their expertise that is available in the industry will be utilized.
? By bridging the breach of the price monopoly system by Majors (old "Seven sisters") in order to prepare the launch of Virgin Fuels (biofuel oriented company).
? To enhance the reputation and enrich the goodwill of Virgin which is well known for its high quality and service (marketing & sales focus).
? To realize the dream of exporting our services in a confident manner across the global. The realization of this dream should first be able to target the European terrain through the modem of the Virgin brand.
[...] Virgin Energy : Virgin Oil Card Business Plan 9. Operational Plan A cluster entity could be implemented at lower cost to test the rewards and opportunities of Virgin Oil Card and Virgin Energy, by using it primarily as a service company for its employees' fuel consumption. Summary of the requirements for the following resources: Personnel: we will require an adequate level of staff from Oil trading business to perform our business functions. A strong legal department has to be set or this service should be outsourced to top law firms. [...]
[...] Virgin Energy : Virgin Oil Card Business Plan 11. Financial Plan Costs Virgin Energy desires to finance growth through a combination of low equity/debt investment and internally high generated cash flow. Because of the cost of credit lines and marketing costs of establishing a market presence, our business will be financed primarily by a financial loan in the early stages and is expected to burn less cash than common industrial projects. It is not expected that additional investment will be required within the second or third year, (we break even during first year). [...]
[...] Virgin Energy : Virgin Oil Card Business Plan 5. Characteristics of the Target Market How price sensitive is our target market? Our target market is highly price sensitive. Therefore Virgin Energy will focus on best pricing strategies. How do our prospective customers currently buy fuel? Our customers have a very good knowledge of buying goods and services through the internet and already have experience at purchasing fuel in filling stations. What are the usual payment methods? Our market research has shown that the most popular payment method is through credit card; followed by cheque and money order. [...]
[...] Virgin Energy : Virgin Oil Card Business Plan 7. Marketing and Sales Plan Problems and opportunities: Consumer problem: Buying fuel at an acceptable price. Opportunities created by the consumer problem: allows our business to try to solve this problem by researching the market place and offering a solution- providing our customers with what they want: alternatives, choices, options. Why customers would better buy their fuel through Virgin Oil Card? We are the first company delivering this service. What are our assumptions about the skill levels of our targeted customers? [...]
[...] Virgin Energy : Virgin Oil Card Business Plan Expected Annual Sales and Profit for the next 3 Years in Mio GBP: Year 2007: Sales Expenses Profits Year 2008: Sales Expenses Profits Year 2009: Sales Expenses Profits 13'000'000 9'000'000 4'000'000 32'000'000 13'000'000 19'000'000 160'000'000 50' 110'000'000 Virgin Energy desires to finance growth through a combination of low equity/debt investment and internally high generated cash flow. Because of the high cost of credit lines our business will be financed primarily by a financial loan in the early stages and is expected to burn less cash than common starting industrial projects taking profit of the Virgin Brand's established market presence. [...]
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