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Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
Digital Pen Coursework Project Spring 2009
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Digital Pen Coursework Project Spring 2009

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  • 1. Digital Pen Table of Contents:- No. Content Page 1 1.0 Introduction 2 2 1.1 Aim 2 3 2.0 Digital Pen Specifications 3 4 3.0 Marketing Strategy 7 5 3.1 What market will you sell to? 7 6 3.2 Where is that market located? 8 7 3.3 What size is the market? 8 8 3.4 How do you plan to enter the market? 8 9 3.5 What will be the strengths and weaknesses of your business? 8 10 3.6 What competitors are already in the market place? 9 11 3.7 What is the perceived life of your product? 9 12 3.8 What opportunities will there be for the business to grow beyond 9 the boundaries and life span of the current product? 13 4.0 Organization Chart 10 14 5.0 Financial Planning 11 15 5.1 Product Cost for Each Unit 11 16 5.2 Expenditure 11 17 5.3 Financial Considerations 14 18 5.4 Breakeven analysis 14 19 5.5 Financial Summary for Year 2009-2012 15 20 6.0 Project Plan 23 21 7.0 Appendices 24 22 7.1 Appendix (a) 25 23 7.2 Appendix (b) 26 The Marketing Side 27 24 7.3 Appendix (c) 32 Page 1
  • 2. Digital Pen 1. Introduction The world today is evolving from using the manual method to the new-world where everything is digitized. The efficiency and the management of time are the key factors of success. Due to the current need, we, Digital Expert’s team has designed a pen that can fulfill the need to satisfy these two key factors mentioned above. Yes, we strive for efficiency and offer a better solution to save up your time! Digital Pen is invented by the Digital Experts for the experts! It is an innovative idea that leads the nowadays technology and in the same time it is a solution for those who seek for a latest gadget. Today's increased demand of a reliable input device has inspired our team to produce this product. What makes it different than the readily available gadget in the market? The Digital Pen is an efficient gadget for us to store the information that we wrote directly into a memory card without too much fuss and hassle. And it is even more than that! It converts the handwriting simultaneously into a format-able text in computers or laptops. The wireless technology used allows the gadget to send the information directly to the computer without having to use cable to connect to the computer. This product also has the ability to record sound. This feature has lifted this product above the other currently available products in the market. Our first step is to penetrate into the market in the United Kingdom. We focus on stabilizing the market in the United Kingdom. Simultaneously we will also spread about the Digital Pen into the global market through the Internet. Even though we may not give 100% commitment on the worldwide market for our first year, but we would like to familiarize the world with this new and amazing product! As we successfully establish the business in the United Kingdom, we plan on penetrating into the European Union. Eventually, we plan to enter the global market especially to the Far East countries such as Japan and China. 1.1 Aims Our financial team has proposed a budget planning where we can optimize the income before we will be able to steadily grow into a bigger company. However our team has very clear aims to be achieved for this enterprise project. Page 2
  • 3. Digital Pen Profit – the enterprise itself is closely associated with profits. Therefore we aim to make a well- returned profit from this product. In our three years planning, we aim to clear up the loan and make profit from the products. Stand on par with the current competitors – this product is not new to the market. However, we believe that we can penetrate into the market and make a different in the current market. Because through this product we will bring a new, well-innovated product for the user! Customers always right – yes, we believe in this ideal. Customers’ satisfaction is our highly- treated priority! Our marketing teams will always conduct surveys from time to time to understand our customers’ needs and hopefully to improve our product. Quality – our teams want to produce a high quality product. This is closely associated to our initial inspiration. We are inspired by the fast-evolving technology and we want to be a part of this. Our teams believe that the quality is the key factor in order to be a part of the evolving technology. Spread our wings – Our teams want to spread out wing into the European Union, and eventually into the global market. For the first year, the marketing team will be focusing on marketing the product within the United Kingdom. However, in three years time, we aim to be able to penetrate and spread the marketing plan into the countries outside the United Kingdom. 2. Digital Pen Specifications Digital Pen: The main feature of the pen its ability to write in ink as well as write to its internal storage or to a Bluetooth capable device simultaneously. It can copy exactly what was written on the paper by converting the handwriting into digital text. The size of this cordless digital pen is that of a normal pen. Using Bluetooth the pen can transmit the input signal(what is being written) to a Bluetooth capable device such as PCs, laptops or PDAs in real time. It also has internal flash memory where all notes that have been written can be saved. These can be uploaded to devices via Bluetooth or a micro USB cable. This pen is user friendly and brings a safe, portable and exclusive design. To charge the pen, it has to be connected to a computer via the micro USB cable. The pen is compatible with all Windows and Mac versions Page 3
  • 4. Digital Pen and does not need any additional software to convert the handwriting to ASCII code. The ink can be refilled without removing the pen tip, avoiding any contact with the sensitive LASERs emitter and detectors. The pen has a micro-SD memory slot to increase the total flash memory beyond the 2GB internal flash memory. The pen also has an integrated microphone and loudspeaker to record and play back any auditory notes. Point-by-point technical details of product:-  Bluetooth capabilities  LASER emitters and detectors and dual cameras to record pen movement.  2 GB of internal memory storage  Micro SD memory slot for memory extension  LED power/connectivity display  Rechargeable battery in pen is charged via micro USB cable  Microphone and Speaker to record and play back voice notes. 1 3 2 4 5 Page 4
  • 5. Digital Pen 3 6 5 3 1b 1a 6 Page 5
  • 6. Digital Pen Functionality 1a. On/Off button 1b. Twist switch 2. Microphone (speaker on opposite side) 3. Micro USB connection slot 4. Connectivity & power LEDs 5. Pen tip & 2 LASER emitters and detectors. 6. Micro SD card slot All of the pens functions are turned on and off with only the turning switch 1b and the button 1a. A combination of using these two toggles all functions can be turned on or off: Function Action: Turn on/ Turn off Press and hold button 1a, see power LEDs turn on/off Record sound Twist 1b clockwise and press 1a Stop recording Press 1a Playback recording Twist 1b counter-clockwise until file is found and press 1a Wind forward/backward while playing Twist 1b as desired Stop playback Press 1a Bluetooth on/off Double click 1a, see blue LED turn on/off Page 6
  • 7. Digital Pen Basic functionality: Pen tip: LASER LASER detector (other side) Low resolution Low resolution high contrast high contrast Camera1 Camera2 Ball-point pen Camera1 and Camera2 constantly take pictures of the surface and compare taken images to calculate at what speed and in which direction the pen is moving. When the pen is lifted, the LASER and the LASER detector track the movement until the pen touches on paper again. If the LASER loses track of movement, writing is continued on a new line in the document when the pen is put down again. 3. MARKETING STRATEGY 3.1 What market will you sell to? The product that we produce is especially interesting for higher academics that work a lot with texts and really need to have a helping product like the Digital Pen. We also target to sell the product to younger people as this product will help them do their work and will save them time and effort. Based on the survey that we did, we conclude that higher academics will be our main customers rather than younger people. The reason is that they found the product very useful and younger people liked the product, especially students and teenagers. The students liked the pen, the senior students liking them more, but teenagers found it quite expensive. Page 7
  • 8. Digital Pen 3.2 Where is the market located? The basic market for the product is basically the United Kingdom and since technology is developed in lots of areas around the world, the product will be advertised and sold through the internet and delivered worldwide. We do not want to be too optimistic about our company because it is still new in the market. So we want to see how things evolve in the first period that the business starts working. After meetings between the company’s staff it will be decided when the business is ready for further development in other countries making sure that the profit of the business grows gradually every year. 3.3 What size is the market? The size of the market depends on a lot of factors. Our customers who are interested in our product need for one of its special function. The product will be bought because of its practicality and functions instead of its looks. So as a marketing part we have to detect in which profession, people that were mentioned above (higher academics, etc), are going to use this product. So we are looking for particular areas where the majority of the universities, factories and companies are located and advertise the product. Of course to find these areas we have to make a small research which shows where the above instances are. With this strategy we find direct areas with lot of presumed clients and make our goal a reality. 3.4 How do you plan to enter the market? There will be different ways of promoting the product. First of all, since our first interests are higher academics, the product will be advertised through different academic magazines and newspapers so that they will be aware of such kind of product. Secondly, advertisement through TV and radio would be an option, but in this case the cost will be quite big and lots of people who are not interested in the product will just ignore the advertisement. So the second choice should be avoided as long as the other ways of promoting the product still prove to be efficient. Of course because the product is promoted on the internet, advertisement on the internet will attract the most buyers. Finally there will be an advertisement through newspapers and other attractive ways in the universities and schools. These advertisements will start to take place before the official opening day of the company. Hence we can pique peoples interest and increase the popularity of the product before the product is launched. Page 8
  • 9. Digital Pen 3.5 What will be the strengths and weaknesses of your business? In any business there are a couple of Strengths and weaknesses so at the beginning the strengths of our business will be mentioned followed by the weaknesses: Generally the functionality of the product will provide strength and confidence to the company. As a company we tried to look at other company’s trying to learn from their successes and mistakes. Since new features have been introduced in our product and it is cheaper than the similar products, the product is more attractive to people who are interested in a digital pent. Some of the weaknesses are that the company may not be able to get over at this period of time the large competition between us and other companies that already exist. The price that the company decided is quite high especially for younger ages. Since the product is not very popular and well known, it is going to be a bit hard to advertise and sell. 3.6 What competitors are already in the market place? There are a couple of competitors in the market but their products are not exactly the same as ours. Since our company included new features that haven’t been before in any of the existing similar products such as voice recording, not needing special paper to write on and also being completely wireless. Finally the price that our company has decided is the lowest in the market. 3.7 What is the perceived life of your product? The Digital Pen’s life is estimated about 5 years for daily use and more than that if used less. After at least 5 years newer versions of the Digital Pen will be available. The Digital Pen also has a free one year warrantee. 3.8 What opportunities will there be for the business to grow beyond the boundaries and life span of the current product? The company has good a opportunity to grow especially if the people working in the company work very hard and sufficient and implement their thoughts in an attractive way. Also the company may grow beyond the boundary if a good marketing plan in the next few years was obtained to attract different buyers in from different age groups and make new improved versions of the existing product. Page 9
  • 10. Digital Pen 4. ORGANISATION CHART Managing Director Norliza Jabar Assistant Manager Nurul Ain Izzati Ahmad Marketing Department Research & Development Financial Department Panayiotis, Deemah Ryan Siti Ruhma, Humaizi Managing Director: Task included the documentation and finalizes any task and project report and make sure everything follows schedule. Assistant Manager: Documentation, record minutes of meeting. Marketing Department: Documentation, marketing and publicity Research & Development: Design of prototype and technical drawings, technical design Financial Department: Handle the financial matter in the company, account statement and etc. There are some additional employer needed and has filled up the vacancies:- IT & Software Development, Administrative Officer, Technician and Receptionist. Page 10
  • 11. Digital Pen 5. FINANCIAL PLANNING Financial plan contains the sets of financial statements that predict the resource implications of decision making in business For instance, short term and long term financial planning. Our company financial plans have been made out for 3 years plans forecast to suit the marketing strategy. In the first year, we will manufacture the product through the vendor and distributing the product starting in the week 6 of manufacturing and forecasting sales in the week 6 of sales. Our company focus is England as a target market for all 3 years plus having the product advertised and sells through the internet world wide at the same time. Company target for the first year sales is expected to gain 3000-5000 units will be sold. Upon successful sales in the first year, we will then expand the quantity of the products to increase the sales significantly. The sales will continuously growing in the next year of 2011 and during this year we are expecting the total products will be achieved around 5000-8000 units. By the year 2012, it is forecasted that we will distributing the product much higher than the previous year and is expected to gain about 8000-10,000 units. 5.1 Product Cost for Each Unit Production Cost per Unit £35 (Including raw material, taxes, shipping & vendor cost) Retail Price £90 Company Profit £55 5.2 Expenditure: 1) Premise / Building: The rental cost of the premises will be £600 per month. We will occupy 1 office at Bristol for our head quarters office. We choose this location due to port’s area where it is a very strategic location so that the shipping activity will be easier to handle. Total rent: 12months x £600 = £7,200 per annum Page 11
  • 12. Digital Pen 2) Office facilities: In the first month basis, we estimated to spend £15,000 for office renovation and facilities. For the facilities, we will buy all stuff need for the office such as furniture and renovation is (£8,500), and equipments (£6,500). Total Estimation Cost is £15,000. (This cost will be spent during the startup year in the first year of company establishment only) 3) Power Electricity/Gas & Telephone Bills For billing facilities, we’ve decided to subscribe under (BT’s) Business Package, includes calls and internet access (Broadband). Total cost including lighting, heating, air-conditioning and other’s electrical consuming bills is estimated will be not more than £2000 per month. Estimated power & telephone bills consumption is £24,000 per annum. 4) Insurance: Insurance costing for covering the premise is very important. Usually there must often have plate glass insurance for office in addition to general business insurance. Total of insurance is £2,500 per annum. 5) Miscellaneous: Includes office supplies, stationary, paper, rates, cleaning, etc. is estimated of £2,000 per annum 6) Marketing In order to bring our products to the eyes of the world, we've chosen to promote our products through the internet via our company website. At the same time we will also make an advertisement through television, radio and trip tour. Hence, we've decided to put a budget around £9,000 for each year Total marketing budget will be of £9,000 per annum. 7) Raw Material The raw material for a unit product has cost of £32.80. This includes the components to be installed into the product itself. The cost of raw material is quite low because we order the parts from China which is cheaper and with a good quality as well. Page 12
  • 13. Digital Pen 8) Shipping We are sourcing, producing & assembling the products through vendors in China, there will be highly necessary for the shipping to be well considered. Moreover, we’re also selling the products worldwide through the internet and it acquired shipment for each unit sold. After well consideration, we chose to subscribe shipment from Gigabiz.com. It does provide the cheapest shipment for importing and exporting between UK & China so far. Importing: From China to UK – £0.65 per unit Delivery Service to: Within Europe - £0.50 per unit Worldwide - £0.80 per unit 9) Sum Payable for Vendor Services & Taxes Vendor in China Vendor cost per unit : £1.25 (12.04 Chinese Yuan) Taxes per Unit (0.86%) : £0.30 Total vendor service & taxes per unit = £ 1.55 10) Staff Wages: Position Person(s) Salary per month (£) Salary per annum (£) Manager 1 £3,200 £38,400 Assistant Manager 1 £2,800 £33,600 Senior Engineer 1 £2,500 £30,000 Accountant 1 £2,200 £26,400 Technician 1 £1,600 £19,200 Administrative Officer 1 £1,200 £14,400 Receptionist 1 £900 £10,800 (£2,000 per person) Marketing 2 £48,000 £4,000 Assistant Accountant 1 £2,000 £24,000 IT & Software Development 1 £ 1,800 £21,600 £ 266,400 TOTAL Total staff is 12 persons. Total staff wages is £266,400 Page 13
  • 14. Digital Pen 5.3 Financial Considerations The Company’s start up costs will be £350,000. Owners equity will be provide £150,000 and another £200,000 will consist of long-term loans. The majority of the start-up costs will consist of rent, research and development, initial stock, and a strong cash account. 5.4 Production Cost Analysis Production Cost Analysis (Year 2009) Total Requirements (Units) 5,000 Number of Vendors 1 PRICES AND DELIVERY COSTS IN UNITS Vendor Total Vendor Bid Price Delivery Cost/Unit Tax/Unit Price/Unit 1. Vendor £ 32.80 £ 0.65 £ 1.25 £ 0.30 £ 35.00 Average Delivered Price Per Unit £ 35.00 ALLOCATION OF ORDERS AND COSTS Actual Delivered Amount Vendor Order Price/Unit of Order Vendor 5,000 £ 35.00 £175,000.00 Total Amount of Order £175,000.00 SUMMARY Total Vendor Costs £ 6,250.00 Total Bid Price £164,000.00 Total Cost of Order £175,000.00 Page 14
  • 15. Digital Pen 5.5 Breakeven analysis Fixed Costs are business expenses that are not dependent on the activities of the business. They tend to be time-related, such as salaries or rents being paid per month. In another hand, variable costs are expenses that change in proportion to the activity of a business. In other words, variable cost is the sum of marginal costs. It can also be considered normal costs. Along with fixed costs, variable costs make up the two components of total cost. Our company fixed costs and variable costs are:- Fixed Cost Amount Premise / Building £ 7,200.00 Office facilities £ 15,000.00 Power & Telephone Bills £ 24,000.00 Insurance £ 2,500.00 Miscellaneous £ 2,000.00 Marketing £ 3,000.00 Staff Wages £ 266,400.00 Depreciation* £ 6,750.00 Total £ 326,850.00 Depreciation 45% (Office Facilities) £ 6,750.00 Variable Cost Amount Shipping £ 0.65 Vendor Services & Taxes £ 1.55 Raw Material £ 32.80 Total £ 35.00 Breakeven Analysis Fixed Cost £ 326,850.00 Variable Cost/unit £ 35.00 Selling Price/unit £ 90.00 Contribution £ 55.00 *Selling Price - Variable Cost Contribution to Sales Ratio £ 0.61 *Contribution/Sales Ratio Breakeven Quantity 5,943 *Total fixed cost / (Selling Price/unit - Variable Cost/unit) Breakeven Revenue £ 534,845.45 *Total fixed cost / Contribution to sales ratio Breakeven Analysis shows Digital Experts ltd. will be able to make a steady profit by the 3 rd Quarter of 2011. The break-even point is only 5943 units per month, while projected sales are one to three times from that figure. Page 15
  • 16. Digital Pen 5.6 Financial Summary for Year 2009-2012 March 2009 - April 2012 (3 YEARS) BALANCE SHEET Pound (£) Pound (£) CAPITAL FIXED ASSETS Equity Shares 150,000.00 Term Loan 200,000.00 Furniture 10,000.00 Patent & Trade Mark 20,000.00 RESERVED 104,975.00 Internet Domain Name 10,000.00 CURRENT ASSETS Cash(bank) 414,975.00 CURRENT LIABILITIES Creditor 0 CAPITAL EMPLOYED 454,975.00 NET ASSETS 454,975.00 PROFIT AND LOSS ACCOUNT FOR APR- JULY 2009 April May Jun July Revenue : Income 0.00 18,000.00 27,000.00 45,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 Electricity/Gas Telephone/Fax/Internet Insurance 2,500.00 0.00 0.00 0.00 Rent 600.00 600.00 600.00 600.00 Marketing 3,000.00 0.00 0.00 0.00 Miscellaneous 1,000.00 0.00 0.00 0.00 Office Facilities Internet Domain Name Office Renovate 15,000.00 0.00 0.00 0.00 Furniture Manufacturing 0.00 35,000.00 0.00 0.00 Shipping Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 PROFIT / (LOSS) -51,931.25 -47,431.25 -3,431.25 14,568.75 Page 16
  • 17. Digital Pen PROFIT AND LOSS ACCOUNT FOR AUG - NOV 2009 April May Jun July Revenue : Income 45,000.00 45,000.00 45,000.00 45,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 Electricity/Gas Telephone/Fax/Internet Insurance 0.00 0.00 0.00 0.00 Rent 600.00 600.00 600.00 600.00 Marketing 3,000.00 0.00 0.00 0.00 Miscellaneous 500.00 0.00 0.00 0.00 Office Facilities Internet Domain Name Office Renovate 0.00 0.00 0.00 0.00 Furniture Manufacturing 70,000.00 0.00 0.00 0.00 Shipping Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 PROFIT / (LOSS) -58,931.25 14,568.75 14,568.75 14,568.75 PROFIT AND LOSS ACCOUNT FOR DEC 2009- MAC 2010 April May Jun July Revenue : Income 45,000.00 45,000.00 45,000.00 45,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 Electricity/Gas Telephone/Fax/Internet Insurance 0.00 0.00 0.00 0.00 Rent 600.00 600.00 600.00 600.00 Marketing 3,000.00 0.00 0.00 0.00 Miscellaneous 500.00 0.00 0.00 0.00 Office Facilities Page 17
  • 18. Digital Pen Internet Domain Name Office Renovate 0.00 0.00 0.00 0.00 Furniture Manufacturing 70,000.00 0.00 0.00 0.00 Shipping Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 PROFIT / (LOSS) -58,931.25 14,568.75 14,568.75 14,568.75 PROFIT AND LOSS ACCOUNT FOR APR- JULY 2010 April May Jun July Revenue : Income 54,000.00 54,000.00 54,000.00 54,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 Electricity/Gas Telephone/Fax/Internet Insurance 2,500.00 0.00 0.00 0.00 Rent 600.00 600.00 600.00 600.00 Marketing 2,000.00 0.00 0.00 0.00 Miscellaneous 800.00 0.00 0.00 0.00 Office Facilities Internet Domain Name Office Renovate 0.00 0.00 0.00 0.00 Furniture Manufacturing 84,000.00 0.00 0.00 0.00 Shipping Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 PROFIT / (LOSS) -65,731.25 23,568.75 23,568.75 23,568.75 PROFIT AND LOSS ACCOUNT FOR AUG - NOV 2010 Aug Sept Oct Nov Revenue : Income 54,000.00 54,000.00 54,000.00 54,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 Page 18
  • 19. Digital Pen Electricity/Gas Telephone/Fax/Internet Insurance 0.00 0.00 0.00 0.00 Rent 600.00 600.00 600.00 600.00 Marketing 2,000.00 0.00 0.00 0.00 Miscellaneous 600.00 0.00 0.00 0.00 Office Facilities Internet Domain Name Office Renovate 0.00 0.00 0.00 0.00 Furniture Manufacturing 84,000.00 0.00 0.00 0.00 Shipping Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 PROFIT / (LOSS) -63,031.25 23,568.75 23,568.75 23,568.75 PROFIT AND LOSS ACCOUNT FOR DEC 2010- MAC 2011 Dec Jan Feb Mac Revenue : Income 54,000.00 63,000.00 63,000.00 63,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 Electricity/Gas Telephone/Fax/Internet Insurance 0.00 0.00 0.00 0.00 Rent 600.00 600.00 600.00 600.00 Marketing 2,000.00 0.00 0.00 0.00 Miscellaneous 600.00 0.00 0.00 0.00 Office Facilities Internet Domain Name Office Renovate 0.00 0.00 0.00 0.00 Furniture Manufacturing 94,500.00 0.00 0.00 0.00 Shipping Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 PROFIT / (LOSS) -73,531.25 32,568.75 32,568.75 32,568.75 Page 19
  • 20. Digital Pen PROFIT AND LOSS ACCOUNT FOR APR 2011- JULY 2011 Apr May Jun July Revenue : Income 63,000.00 63,000.00 63,000.00 63,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 Electricity/Gas Telephone/Fax/Internet Insurance 2,500.00 0.00 0.00 0.00 Rent 600.00 600.00 600.00 600.00 Marketing 2,000.00 0.00 0.00 0.00 Miscellaneous 800.00 0.00 0.00 0.00 Office Facilities Internet Domain Name Office Renovate 0.00 0.00 0.00 0.00 Furniture Manufacturing 98,000.00 0.00 0.00 0.00 Shipping Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 -70,731.25 32,568.75 32,568.75 32,568.75 PROFIT / (LOSS) PROFIT AND LOSS ACCOUNT FOR AUG 2011- NOV 2011 Aug Sept Oct Nov Revenue : Income 72,000.00 72,000.00 72,000.00 72,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 Electricity/Gas Telephone/Fax/Internet Insurance 0.00 0.00 0.00 0.00 Rent 600.00 600.00 600.00 600.00 Marketing 2,000.00 0.00 0.00 0.00 Miscellaneous 600.00 0.00 0.00 0.00 Office Facilities Internet Domain Name Office Renovate 0.00 0.00 0.00 0.00 Furniture Manufacturing 112,000.00 0.00 0.00 0.00 Shipping Page 20
  • 21. Digital Pen Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 -73,031.25 41,568.75 41,568.75 41,568.75 PROFIT / (LOSS) PROFIT AND LOSS ACCOUNT FOR DEC 2011- MAC 2012 Dec Jan Feb Mac TOTAL Revenue : Income 72,000.00 81,000.00 81,000.00 81,000.00 1,980,000.00 Expenditure: Wages 22,200.00 22,200.00 22,200.00 22,200.00 799,200.00 Bills 2,000.00 2,000.00 2,000.00 2,000.00 72,000.00 Electricity/Gas Telephone/Fax/Internet Insurance 0.00 0.00 0.00 0.00 7,500.00 Rent 600.00 600.00 600.00 600.00 21,600.00 Marketing 2,000.00 0.00 0.00 0.00 21,000.00 Miscellaneous 600.00 0.00 0.00 0.00 6,000.00 Office Facilities Internet Domain Name Office Renovate 0.00 0.00 0.00 0.00 15,000.00 Furniture Manufacturing 122,500.00 0.00 0.00 0.00 770,000.00 Shipping Vendor Payment & Interest 5,631.25 5,631.25 5,631.25 5,631.25 202,725.00 -83,531.25 50,568.75 50,568.75 50,568.75 64,975.00 PROFIT / (LOSS) Page 21
  • 22. Digital Pen Cash flow from Forecast from April 2009 to March 2010 April-July 2009 Aug-Nov 2009 Dec 2009-Mac 2010 Balance BF 350,000.00 261,775.00 246,550.00 Income 90,000.00 180,000.00 180,000.00 Expenditure 178,225.00 195,225.00 195,225.00 Balance CF 261,775.00 246,550.00 231,325.00 Cash flow from Forecast from April 2010 to March 2011 April-July 2010 Aug-Nov 2010 Dec 2010-Mac 2011 Balance BF 231,325.00 236,300.00 243,975.00 Income 216,000.00 216,000.00 243,000.00 Expenditure 211,025.00 208,325.00 218,825.00 Balance CF 236,300.00 243,975.00 268,150.00 Cash flow from Forecast from April 2011 to March 2012 April-July 2011 Aug-Nov 2011 Dec 2011-Mac 2012 Balance BF 268,150.00 295,125.00 346,800.00 Income 252,000.00 288,000.00 315,000.00 Expenditure 225,025.00 236,325.00 246,825.00 Balance CF 295,125.00 346,800.00 414,975.00 From the Balanced Sheet, Profit and Loss and Cash Flow Forecasting, our company will increase our profit every month. According to Profit and Loss account our company will get profit after December 2011-March 2012 term. Page 22
  • 23. Digital Pen Cash Flow Forecast 2009-2012 400,000.00 300,000.00 200,000.00 100,000.00 0.00 Income Expenditure Balance CF Page 23
  • 24. Digital Pen 6. PROJECT PLAN Year: 2009 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Business planning (Start the business) Search for an office + electrical, lighting, water Renovation + office facilities Research & development the product design Research for marketing strategy Promotion and advertising Future planning (to increase the production) Expected net profit Year: 2010 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Business planning (Start the business) Search for an office + electrical, lighting, water Renovation + office facilities Research & development of the product design Research for marketing strategy Promotion and advertising Future planning (to increase the production) Expected net profit Year: 2011 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Business planning (Start the business) Search for an office + electrical, lighting, water Renovation + office facilities Research & development of the product design Research for marketing strategy Promotion and advertising Future planning (to increase the production) Expected net profit Page 24
  • 25. Digital Pen APPENDIXES (A):- Timescale planned for work package : A flow of a plan according to the time allocation Page 25
  • 26. Digital Pen APPENDIX (B):- A survey question on our product The Pen That Can Change your way of writing Description: The Digital pen is a normal pen, in additional to some features where it can copy simultaneously whatever is written digitally. It can copy exactly what’s written on the paper by converting the handwriting into digital text. The size of this cordless digital pen is that of a normal pen. Using the Bluetooth signal technology the pen can transmit the input signal to a Bluetooth capable device such as PCs or laptops. It also has internal flash memory where all notes that has been written can be saved which are uploaded to devices via Bluetooth or USB cable. It is wireless with unique and well patterned technology. Some of its additional features: This pen is user friendly and brings a safe, portable and exclusive design. It uses Bluetooth to transmit and receive data, a micro USB cable is used for charging the pen and can also be used for uploading data. The pen is compatible with all Windows versions (as well as Mac) and does not need any additional software to convert the handwriting to ASCII code. The ink can be refilled easily. The pen has a micro-SD memory slot to increase the total flash memory beyond the 2GB already in the pen. The pen also has an integrated microphone and loudspeaker to record and play back any auditory notes. This Pen will cost about 90 £. Thank you for participating in this quick survey, we really value your answers. Age : 15-18 18-25 25-35 >35 Occupation: Page 26
  • 27. Digital Pen Student Employed Self employed Other_____________ 1- ) How can you describe your first thinking about the Digital Pen Idea : Excellent Very Good Good Fair Poor 2- ) Have you ever heard about this kind of Pen before: No Yes Where : ________________________________________ 3- ) What are your primary usage of this Digital Pen : At home At the office Other :_______________________________________________________ 4- ) How often do you think you will be using this Digital Pen : Daily Once a week 2-3 times a month I will never use it 5- ) Please select the feature you consider to be the most important one about the Digital Pen: It can Copy everything you write It can be used as a normal pen It is wireless when transferring data to your computer It is compatible with all Windows versions as well as Mac It has an integrated microphone and loudspeaker to record and play back any auditory notes. Other: ___________________________________________________ Page 27
  • 28. Digital Pen 6- ) Please rate the value of the price of this Digital Pen: Excellent Very Good Good Fair Poor 7- ) what are the major facts that may influence your buying decision: The Cost Not needing it Not having the opportunity to test it first. Other: __________________________________________________ 8-) Would you recommend this product to others: Absolutely Very likely Unlikely Absolutely not Not sure 9- ) Please rate your overall satisfaction about the digital Pen including (Price, Features): 5 Very Satisfied 4 3 2 1 Very Dissatisfied. 10-)Please enter any additional comments or Ideas you would like us to Know: _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ __________ Page 28
  • 29. Digital Pen Thank you again for participating in this survey 2nd year Electronic Engineering EDPS project. The Marketing side: As a Part of the marketing Strategy it was meant to see what real people thought about the product so a Questioner (see Appendix A) that involved 60 people in different categories where 10 questioners was given to each of these groups (Teenagers, first second and third year university students, as will as Postgraduate and Prophs and finally business men) The results we got were as the following: For the first question we asked: How can you describe your first thinking about the Digital Pen Idea : 9 8 Excellent No of choices 7 6 Very good 5 Good 4 3 Fair 2 Poor 1 0 r ar z ar s r. ea en ne D ye ye t+ ty Te ss d d os 1s ui 3r 2n P B Catagories We noticed that first year students where the most that liked the Idea followed by Postgraduate and Drs and Business men. Page 29
  • 30. Digital Pen Have you ever heard about this kind of Pen before: 10 Number of choises 8 6 yes No 4 2 0 Teenz 1st year 2nd year 3rd year Post+Dr. Buissnes Categories From the second question we asked: We noticed that the product we are planning to sell was not that much popular Known by others so it can be a good chance for us to market for it. For the following question we asked: What are your primary usage of this Digital Pen : 8 7 Number of choises 6 Home 5 4 Office 3 Other 2 1 0 Teenz 1st year 2nd year 3rd year Post+Dr. Buissnes Categories We have notice that the primary usage of the Digital pen was going to be at different places which were mentioned in the questioner where schools universities and libraries where included. Page 30
  • 31. Digital Pen How often do you think you will be using this Digital Pen : Number of choices 8 Daily 6 once a week 4 2-3 times a month 2 Never use it 0 z ar ar ar s r. en ne D ye ye ye t+ Te ss d d t os 1s ui 2n 3r P B Categories For the next question which was: The highest answer was daily followed by the 2-3 times a week that was a really good result regarding our market since the Digital pen is a really helpful in the real life. For the fifth question that has been asked: Page 31
  • 32. Digital Pen The feature you consider to be the most important one about the Digital Pen Coping w hats w ritten Number of choises 7 6 5 Acting as a normal pen 4 3 2 Wireless Function 1 0 Working w ith Window s z ar ar ar s r. en ne D ye ye ye t+ Te and Mac ss d d t os 1s ui 2n 3r P B Having a microphone Categories and speakers From this question it has been noticed that the two main features about our Digital pen (Coping everything written and being wireless when data is transferred) were the highest two marked by all categories. For the sixth question being asked: Please rate the value of the price of this Digital Pen Number of choices 8 6 Excellent 4 Very Good 2 Good 0 Fair z ar ar ar s r. en ne D ye ye Poor ye t+ Te ss d d t os 1s ui 2n 3r P B Categories It has been noticed that the value of the product was very high for teenagers and it started to decrease as the age and categories increased as the third year university students felt that the price was quite Page 32
  • 33. Digital Pen good and the postgraduates and Dr. felt that it was very good for this type of pen but the business men were between very good and good. what are the major facts that may influence your buying decision Number of choices 10 The Cost 8 6 Not needing it 4 2 Not having the 0 opportunity to test z ar ar ar s r. it first. en ne D ye ye ye t+ Te ss d d t os 1s ui 2n 3r P B Categories For the seventh question asked: For this question the categories were divided as the teenagers were between the cost and not needing the product, but third year students and postgraduates influence was mostly about not having the opportunity to test the product first. Would you recommend this product to others 8 Number of choices 7 Absolutely 6 5 Very likely 4 3 2 Unlikely 1 0 Absolutely not z ar ar ar s r. en ne D ye ye ye t+ Te ss d d t os Not sure 1s ui 2n 3r P B Categories Page 33
  • 34. Digital Pen For the eighth question asked: From this very important question the results that have been made don’t just depend on the answer of this question but depends on about all of the questions being answered before as the categories that liked the product and felt that it was a good product to have want to recommend it for others while the others that felt it wasn’t a good product to have didn’t want to recommend it to others. rate your overall satisfaction about the digital Pen including (Price,Features): Number of choices 6 5 4 5 Very Satisfied 3 2 4l 1 3l 0 2l z ar ar ar s r. en ne D ye ye 1 Very Dissatisfied. ye t+ Te ss d d t os 1s ui 2n 3r P B Categories For the Final question that has been asked: From this last question it has been noticed that the overall satisfaction about the product was really good as almost all the categories have voted for that. Conclusions: At the end of finalizing this questionnaire there were a couple of conclusions that the marketing - group came up with the first and most important was that in almost all of the questions that were asked in the questioner it has been noticed that once the categories get more professional the answers become more likely as the marketing expectations . As all the higher academic categories showed that this product is very useful for them the marketing group has chosen them to be there key market that they will make and sell the product to and the final conclusion is as the product has new features introduced to it, it made the product more attractive to people who are really interested about that. Page 34
  • 35. Digital Pen APPENDIX (c):- Minute of Meeting 24 February 2009 [1] Marketing Target market : Who, Location, Size. Attendance: No absentee - Statistic, survey, the other company, problems and reviews. [2] Logo - Suggestion : 1) Change the font of the D’Experts 2) Background gray and letters white/red (something contrasts to the background) 3) produce more logo so that we can pick up which one is the best. Send through email. [3] Feedback - good that we come up with the name and product. - Structure : Production  Marketing? Production  more for the factory line Marketing  when promoting the product R&D : Indicate that one of the members have the capabilities to produce the product. Are we going to produce the product OR we are going to leave that to the investor?? - survey – Deema - introducing the extra audience, marketing strategy, cost/price of the product. - research for the key factor of success from the previous seller. - why it’s not as successful as other gadget. Think if it’s the correct targeted buyers? [4] slogan - D’ Expert for the expert. - Just Write It Down! - Exclusive Yet Practical - Nurul Ain Izzati- - Buy the time! Page 35
  • 36. Digital Pen Venue : SPLASH, Floor 3, Library Date : 18th March 2009 Time : 12.20pm – 2.30pm Attendance: No absentee Agenda: - Change the name of the company to Digital Expert Ltd. - Change the name of the product to Digital Pen [1] Booth a) leaflet b) brochures – the printing c) posters d) sweets e) Promotion slides f) Lucky draw – need to be put into the posters [2] Presentation - Mention about the advantages - Explain the idea and how the market plan is. [3] Next week - everyone need to submit their photo to Liza tonite - CD and the logo to Liza and Ain - Presentation – Deema - Lucky draw paper – Ain - Bowls for lucky draw – Deema - Big poster – Deema - Small posters x 4 – Ryan - Leaflets – Ruhma an Liza - Laptop – Deema - A4 papers to promote the lucky draw –ain - coupon 50% discount to buy pen – Ain - sweets –Ain [4] About money- please use your own money first to buy the items in your task (such as printing leaflet, posters, sweets etc). then make sure you have the receipt, and please give the receipt to me. I’ll calculate the total expenses and get the money from each members to cover for the expenditure. - Nurul Ain Izzati & Norliza- Page 36

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