Strategy and Implementation Summary
The important strategy focuses on pulling in power Internet users. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers include students and business professionals.
The second strategy focuses on building a large loyal customer base. A large loyal customer base will serve to attract large, medium and small companies as clients for our interactive advertising service. All of the advertisements can connect the user to the advertiser’s web site. Due to the high traffic locations in which our public Internet terminals will be placed, this advertising space will be in high demand.
The Stroll Net management team has established some basic milestones to keep the business plan priorities in place. Responsibility for implementation falls on the shoulders of Cam Piotr. This Milestones Table below will be updated as the year progresses using the actual tables. New milestones will be added as the first year of operations commences.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Business Plan||10/1/2004||11/15/2004||$1,000||Cam Piotr||Admin|
|Secure Start-up Funding||11/29/2004||1/1/2005||$1,000||Cam Piotr||Admin|
|Site Selection||1/15/2005||2/20/2005||$1,000||Cam Piotr||Admin|
|Architect Designs||3/1/2005||3/30/2005||$1,000||Cam Piotr||Admin|
|Designer Proposal||4/1/2005||4/15/2005||$1,000||Cam Piotr||Admin|
|Technology Design||4/1/2005||4/15/2005||$1,000||Cam Piotr||Admin|
|Year 1 Plan||6/1/2005||6/9/2005||$1,000||Cam Piotr||Admin|
|Personnel Plan||7/1/2005||7/5/2005||$1,000||Cam Piotr||Admin|
|Accounting Plan||7/1/2005||7/5/2005||$1,000||Cam Piotr||Admin|
5.2 Value Proposition
WiFi hotspots offering public Internet access are everywhere you look today, from cafes to hotels, from airports to marinas. Connectivity is what travelers want, and more importantly, are coming to expect. Travelers are making decisions on where to eat, sleep and work based on the availability of wireless service.
Clients offering public internet access will be able to tap into new revenue streams and new customers, and create loyalty.
Stroll Net’s public Internet terminals make it easy to provide convenient and easy access to wireless high-speed Internet connectivity. With Stroll Net’s public Internet terminals customers will be able to connect to their corporate networks and the Internet via a high-speed wireless connection in common areas.
5.3 Competitive Edge
Stroll Net will differentiate itself by providing the community with an innovative product that offers a convenient and affordable way to access the Internet away from home and the office. Stroll Net will enjoy the traditional benefits of being first to the market. As a small company looking to establish itself, we will be attentive and flexible in meeting our customers’ demands.
5.4 Marketing Strategy
Stroll Net will position itself as an aggressive, innovative company that supplies the market with an affordable way to access the Internet away from home and the office. Stroll Net will use advertising as its main source of promotion. We will acquire the services of Empire Communications Group and CyberMark International, Inc. to launch a diverse advertising campaign placed on television, radio, the Internet and in the local newspaper.
Stroll Net’s brochures, letterhead and business correspondence will further reinforce these concepts. We also recognize that it costs six times more to attract a customer than to retain one. With this in mind, we will operate under the principle that our best marketing is an exceedingly satisfied customer.
5.4.1 Pricing Strategy
Stroll Net bases its prices for Internet and wireless WiFi usage on the “retail profit analysis” provided by our supplier, Supplier One, Inc. They have been in the kiosk industry for 5 years and has developed a solid pricing strategy.
Determining a fair-market, per-transaction fee for Internet and wireless WiFi usage is more difficult because there is no direct competition from another public internet terminal business in Tech City. Therefore, Stroll Net considered two sources to determine the hourly charge rate. First, we considered the cost to use other Internet servers, whether it is a local networking firm or a provider such as America Online. Internet access providers use different pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy with a combination of both pricing schemes. Thus, it can quickly become a high monthly cost for the individual. Second, Stroll Net looked at how public Internet terminals in other markets, such as Miami and New York, went about pricing Internet access. Evaluating these two factors resulted in the following:
Walk-up Internet Access – Customers utilizing the terminals for internet access will be charged a .25 per minute transaction fee.
Wireless Internet Access – Customers utilizing the wireless WiFi connection will incur a fee of $3.95 per hour with a one hour minimum.
5.4.2 Promotion Strategy
Stroll Net will implement a pull strategy in order to build consumer awareness and demand. Initially, Stroll Net has budgeted $5,000 for promotional efforts which will include advertising with coupons for fifteen minutes of free Internet time.
Stroll Net realizes that in the future, when competition enters the market, additional revenues must be allocated for promotion in order to maintain market share.
5.5 Sales Strategy
Stroll Net employs route operators to collect all sales transactions and to perform routine maintenance on its terminals. Each route operator is responsible for keeping the terminals on his route stocked, clean and operational. Computer literacy is a requirement for Stroll Net employees. If an employee does not possess basic computer skills when they are hired, they are trained by our full-time technician. Our full-time technician is also available for terminals in need of minor repairs. Stroll Net’s commitment to prompt, dependable service is one of the key factors that distinguishes Stroll Net from all other competitors.
5.5.1 Sales Forecast
Our Sales Forecast is based upon real revenue reports from other customers of Supplier One, operating in similar urban settings in nearby states. Prepaid products and advertising will yield the greatest revenue per unit, but we expect the greatest number of transactions will be in walk-up internet access and Wifi access.
|Year 1||Year 2||Year 3|
|Walk-Up Internet Access||48,787||60,984||76,230|
|Wireless WiFi Access||23,092||28,865||36,081|
|Total Unit Sales||97,411||121,763||152,203|
|Unit Prices||Year 1||Year 2||Year 3|
|Walk-Up Internet Access||$3.00||$3.00||$3.00|
|Wireless WiFi Access||$3.95||$3.95||$3.95|
|Walk-Up Internet Access||$146,361||$182,951||$228,689|
|Wireless WiFi Access||$91,215||$114,017||$142,521|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Walk-Up Internet Access||$0.60||$0.60||$0.60|
|Wireless WiFi Access||$0.40||$0.40||$0.40|
|Direct Cost of Sales|
|Walk-Up Internet Access||$29,272||$36,590||$45,738|
|Wireless WiFi Access||$9,122||$11,402||$14,252|
|Subtotal Direct Cost of Sales||$87,343||$109,176||$136,470|