Eagle Computers

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Computer Software Retailer Business Plan

Strategy and Implementation Summary

Our target market consists of consumers, small businesses and home offices (less than 10 employees), and tourists. Our sales and marketing strategy will consist of offering a wide selection of quality products and services, a friendly pleasant atmosphere, and a convenient location in the center of Kailua-Kona with accessibility to locals and tourists alike. We will establish ourselves in the community through word-of-mouth referrals from our satisfied clients, and various forms of advertising.

5.1 Competitive Edge

Our competitive edge is a combination of our wide range of products and services, outstanding location, and our interaction with our clients. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they should both stay with Eagle Computers, and refer us to others in the community. In close-knit communities like the Big Island of Hawaii, reputation is extremely important, and word-of-mouth advertising is invaluable.

5.2 Marketing Strategy

Our marketing strategy is a simple one: satisfied customers are our best marketing tool. The first time a customer comes to Eagle Computers, they will know that they have found a one-stop shop for all of their computer needs, including a friendly personal atmosphere with exceptional customer service. We have talked with many friends and associates who are excited about our plans and are anxious to shop with us and use our services. Word of mouth and a good reputation are the best marketing tools in a close-knit community such as ours.

In addition, we will have a website, do radio and newspaper advertising, distribute flyers to local businesses, and advertise in the Yellow Pages. These venues will help us become known as we establish our business. 

5.3 Sales Strategy

Our umbrella sales strategy is to sell Eagle Computers to the West Hawaii community as the best resource for their computer needs, enhancing their lives with our quality, latest-technology products, the convenience of our one-stop shop, affordable pricing and the reliable professional service we offer.

We will sell Eagle Computers through each employee's expertise, courtesy, and warmth, creating a trusting impression on all customers, and establishing loyalty and return visits. We will ensure each visit to Eagle Computers is a professional and pleasant experience, so that customers can always depend on our brand of service when they arrive.

We expect to have a customer return rate of 90% at the end of the first year and for sales to increase to over a quarter-million dollars by end of second year.

5.3.1 Sales Forecast

The important elements of the Sales Forecasts are shown in the chart and table below. Initial sales forecast indicate a healthy first year revenue increasing modestly but steadily in the second and third year. These figures are based on revenue from three main areas:

  1. Computer Sales - this includes sales of all hardware components. We estimate a 5% annual increase in this revenue area from new customer acquisition. The sales costs for computer hardware averages 70% of the final sales prices when the hardware is sold. Costs for wholesale computer hardware is expected to have a 2% annual increase.
  2. Computer Service - revenue generated strictly from labor fees, so except for payroll, there is no sales cost. We estimate a 10% annual increase in this revenue area from repeat business as a result of customer loyalty.
  3. Computer Rental Stations - revenue generated from customers renting the computer stations by the hour. We estimate a 3% annual increase to reflect the projected increase in tourism to Kona. This revenue is all profit since it requires no cost for inventory and it is basically self-service, so requires no labor hours.
Sales Forecast
Year 1 Year 2 Year 3
Computer Sales $156,500 $164,325 $172,541
Computer Repairs $53,000 $58,300 $64,130
Computer Rental Stations $10,050 $10,352 $10,662
Total Sales $219,550 $232,977 $247,333
Direct Cost of Sales Year 1 Year 2 Year 3
Computer Parts $109,550 $111,741 $113,976
Row 3 $0 $0 $0
Subtotal Direct Cost of Sales $109,550 $111,741 $113,976

5.4 Milestones

The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

Milestone Start Date End Date Budget Manager Department
Business Plan 9/25/2003 10/23/2003 $100 Judy Management
Negotiate/Sign Store Front Lease 10/22/2003 11/1/2003 $0 Jim Management
Build Displays & Set Up Store Interior 11/1/2003 12/1/2003 $6,050 Jim Management
Secure Business Name and Legal 11/1/2003 11/15/2003 $1,200 Judy Management
Obtain Financial Backing 11/1/2003 12/1/2003 $0 Judy Management
Print Business Stationary & Flyers 11/15/2003 12/1/2003 $125 Judy Management
Grand Opening for Store 12/1/2003 12/7/2003 $50 Jim Management
Distribute Flyers 12/1/2003 12/7/2003 $20 Judy Management
Research Media Advertising 1/1/2004 1/15/2004 $0 Judy Management
Print & Distribute 2nd Group of Flyers 2/1/2004 2/15/2004 $50 Judy Management
Totals $7,595