Rainy, Steady, Go's aim is to install vending machines selling cheap emergency umbrellas in tube stations in London. Our market is for people of all sexes and ages who have forgotten their umbrellas. We have two streams of income:
1. Sales of umbrellas
2. Advertisements on umbrellas
Since our product launch six months ago (installation of umbrella vending machines in 20 London tube stations) we have worked to ensure that the umbrella vending concept was one where there was a niche in the market and that allowed us to make profits. In the medium term, we plan to expand to other English cities (Birmingham, Liverpool, Manchester, Bristol, Leeds) where we will encounter a similar environment as in London. Furthermore we will diversify our product line by introducing emergency raincoats and colourful umbrellas for kids...
[...] We plan to employ 6 additional employees within the next three years. When expanding to other cities we will rent warehouses for storing our stock close to our vending machines. This will enable us to expand geographically within the United Kingdom. The prior calculations are based on the fact that easy jet as our partner contributes 40 pence per umbrella sold. As we have received a special business start-up loan, we don't have to pay it back before the forth year of business. [...]
[...] Rainy, Steady, Go will target all segments of the population: children, teenagers and adults. Frequent users of the tube will be of special interest as tube stations will be the main locations of our units. Our aim is to provide a convenient service for people in a hurry without them having to get wet Target segmentation strategy Ready, Steady, Go will target the low to medium to high income consumers who require a convenient and emergency service in times of need and in a hurry. [...]
[...] On the basis of the following assumptions Rainy Steady Go will experience a sustainable growth and will become a profitable business within the next year. Rainy Steady Go's “emergency” umbrellas are produced by the company Xinda in China and cost 60 pence per unit. Xinda takes care of the transportation and will charge an extra 40 pence per unit. Thus, our current purchase price is 1 pound. From next year Xinda will also take charge of printing advertisements on the umbrella at a charge of 1,20 per unit. [...]
[...] Our umbrellas will be ordered in China where our supplier, Xinda Umbrella Co Ltd will manufacture and deliver our goods for per umbrella, which still leaves us a 50% gross margin profit Promotion Strategy Rainy, Steady, Go will inform the public of its existence by advertising in the Underground stations where its machines will be located, visibly with posters in the stairways, lifts and the escalators only during the first 3 months of exploitation of a station. Then we will use the services of Viacom Outdoor which is the company in charge of selling advertising spaces in the Underground Distribution Strategy Our unique distribution channel will be vending machines. [...]
[...] Rainy, Steady, Go provides a perfect product for the aggravated consumer from England's persistent rainfall and temperamental weather There will be no need for the consumer to get wet due to our strategic positioning of the units in tube stations. What makes Ready, Steady, Go different to other umbrella vendors is that we have focused on providing a product at the right place, right price and at the right time. Our future intentions are to expand and diversify our innovative product to greater England and furthermore franchise it throughout Europe to countries with high rainfall Industry participants For an umbrella vending machine in London no other businesses of this type currently exist Competition and buying patterns The Rainy, Steady, Go business will be new to London. [...]
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