PACT Magazine

More documents

Recommendations

Info

BUSINESS MODEL EXPANDED Customer Segments The customer segments we have outlined are users who need an unobtrusive, self managed system. We have identified these people as 25+ years of age, families and homeowners of a medium to low income as well as people within the rental market. Value Proposition The benefit of the Pact system is its flexibility and modern take on the traditional security system. Allowing the users to wirelessly connect to and control the system remotely. As far as security systems go, the Pact system will sit outside the market of general security systems, as it is an affordable simple system, bypassing the complications that come with conventional security systems. Along with satisfying user needs through product quality, Pact also gives great customer support, with our customer relations providing ongoing support through maintenance, firmware upgrades and tech support. The depth of Pact’s customer relations is divided into two stages. Pact’s website is the first place for customers to find support for the Pact system, the website has FAQ’s which will solve the most common problems of the Pact system if they are to arise. If the website contingency plans are not able to solve these issues, the tech support service can. This service is able to serve more complex issues and is able to issue a new system should the current problems remain unsolved. Due to the WiFi compatibility of the Pact system, incremental firmware updates can also be rolled out to Pact devices should the user choose. This will appear as a popup notification on the user’s phone and keeps the company in touch as customer relations. Revenue Streams To monetise the Pact system, online sales providing direct consumer access will be implemented. Retail options of the system will also be provided through tech retailers such as JB Hi-Fi for a brick and mortar option. Channels To address the outlined customer segments, Pact aims to incorporate a multitude of both direct and indirect channels. Having telephone and the internet as direct distribution channels provides low cost distribution to a broad customer base. Pact will also provide or retail option if customers prefer the physical shopping experience instead. 31 <strong>PACT</strong>
Direct Distribution Direct product distribution will occur through a multitude of avenues with aims of both product awareness and giving convenience to the user. A Kickstarter campaign will be implemented to work as an advertising platform and a pre-ordering service for the Pact system. Following this Pact will be offered through stalls at trade shows and appropriate events, this will allow the product to gain traction among the target users and will be a great opportunity to seek out feedback for the initial product offering. Once the Pact system is established and fine-tuned, purchasing options through telephone and internet will become a more prominent means of distribution. Indirect Distribution Indirect distribution will occur through retailers such as a JB Hi-Fi and Harvey Norman. Although this option will carry less profit, it is a convenient option for customers who prefer an honest opinion and have the ability to purchase a tangible product. On top of this, these retailers hold a large market share within the consumer electronics market, and these partnerships will help steadily increase brand awareness and Pact’s own market share. The Pact system is designed well, carries an appealing aesthetic and due to the quality and price point, the product would position itself well amongst competitors on the same shelf. Cost Structure To define the cost structure of the Pact business, service cost structure, product line cost structure and customer cost structure are to be analysed to ensure sound accounting and a viable business posture. Service Cost Structure + Business Operations The service cost structure for Pact implements a variable cost structure due to staff wages. Due to the expertise and experience of the company founders, most responsibilities including marketing, graphic design, business management and product development will all be done in-house with no outsourcing. As the majority of channels for product distribution are from an online presence, fixed costs for product distribution will be from an outsourced partner who specializes in this area. Product Line Cost Structure The product cost structure will have fixed costs that incur direct labour costs with a manufacturing overhead. These costs will be subject to the quoted price by a chosen manufacturer. <strong>PACT</strong> 32
Page 1: PACT BUSINESS CASE DAVID CHAPMAN, T
Page 5 and 6: CONTENTS The Team..................
Page 7 and 8: David Chapman Technical Production
Page 9 and 10: PACT 04
Page 11 and 12: Pact is a standalone home security
Page 15 and 16: SECURITY MARKET IS WORTH $1.7B GROW
Page 17 and 18: Once these three areas had been ana
Page 19 and 20: To fulfill and deliver the company
Page 21 and 22: The protection strategy involves ac
Page 23 and 24: Outreach Our MVP will be our initia
Page 25 and 26: Value Proposition • flexibile •
Page 29 and 30: Administrative/Operational expendit
Page 31 and 32: PCB Components: Microphone WiFi SD
Page 33 and 34: RETURNS As of April 2016, the three
Page 35: Deliverable Risks Pact is a product
Page 39: Partners As the current expertise o

PACT Magazine

Create successful ePaper yourself

Delete template?

Save as template?