Marketing Senior Study
"At Your Service"
Description of the Business
Lebanon is a country of services and creating a new business in Lebanon that provide a new service for people living in Lebanon would be a great idea. This business acts as a middleman between the companies or shop or people who provide a specific service and consumers.
The name of the Business is "AT YOUR SERICE" Company.
This business is divided into 5 kind of services:
1. Home Service:
3- Delivery Services:
What do we do exactly?
1st of all, PRs go and search for the companies or people that do provide these services with high quality. Make one-year- contracts with them that we will be marketing their services or selling their products to consumers on condition that they will pay us a specific percentage as commission and that they should make home delivery.
Secondly, we print an index that list the names of these companies according to the type of services that they provide. When a consumer calls, we provide him/her with all the information about the company that will be selling him its products and the cost. Then, we take the name, address, and telephone number of this consumer. After that we call the nearest company to this consumer and they will deliver their high quality product to him in less time and at a specific discount rate.
Finally, we call back the consumer to get a feedback on the service. If it was O.K, then we make another year contract with the company. If the service was not up to the standard, then we avoid to deal with the company next year.
The Marketing Mix of this business
Our target market is the people living in Lebanon who seek somebody to do the job in a high quality, less time consuming and at a lower price. This people are busy people, businessmen, housewives, and sick elder people.
The office will be opened in Beirut. This service could be provided anywhere in Lebanon. Later on, a web page on the Internet for this business would increase the probability of reaching more the target market.
Our service for consumers is free of charge. We only get paid a commission from the companies.
a) Pre introduction stage of the business:
An advertisement could appear on T.V on in this way:
1st week: " A Businessman is making a phone call from his office, he asks only " At your service?" Then a lady replies by saying only " At your service." in a very nice way.
2nd week: "The door of a house in a silent town is being knocked." A very old funny woman and man, open the door. A doctor appears in front of the door saying friendly "At your service."
3rd week: " A housewife is living in a great mass, very busy in cleaning her house, always anxious and nervous. She looked into window to find her neighbor sitting relaxed, calm, and enjoying her time. The neighbor then look to this housewife, smile and says "At your service".
At this stage, the target market would be aware completely of the word "At your service", but still don’t know what is it all about.
b)Introducing the business:
Here, An advertisement on T.V which provide the consumers with the theme of the service which is simply " We deliver to you a high quality service, in less time, at a lower price, just call 01/778899 (for example).
Then, a nice looking pamphlet that contains all the detailed information oF our service would be necessary distributed to people.
Estimating the Demand
I believe the idea is a new one in Lebanon. There are no direct competitor to this business around. But, indirect competitors like "Khadamat" ,which provide somehow a different service than ours (home delivery), still has some negative effect on our market share.
However, I randomly chose 150 person to answer this question:
"If there is a company that deliver to you the product you need in less time and at a lower price, Do you think that you personally would benefit from this service?
79% of people said yes.
17% of people said uncertain.
4% said No.
So , I believe it is a good idea specially because Lebanese people like to be served. This idea is done also in many other countries.
Estimating the cost:
1-Opening this Business:
apply for a bank loan 80000 $
lease an apartment 1000$ Per month
furnished it, and buy all the equipment needed 7000$
Get the license from the government (unknown)
Recruitment, training the employees 2000$
Printing the index (unknown)
promotions and advertising costs 20000$
A telephone line that could be easily remembered by people 1000$.
The business contains these departments:
-Marketing department which responsible of make deals with the companies or people who provide services.
-Customers department , a number of trained ladies who reply the consumer calls and register their information.
-Research and development department which is responsible on getting the feedback and develop the business
-General manager who supervises the whole business.
Forecasted balance sheet for the 1st year
Cash 74500 Note Payable 80000
Office Furniture 3000
less: Depreciation 300 2700 Owners equity
Equipment: 4000 Iman Itani’s capital 1800
less: Depreciation 400 3600 _______
Income Statement for the 1st year
Less: General expenses 3000$
telephone and electricity 3000
Lease apartment 12000
Advertising 20000 138000
Income before taxes 2000
Less: tax (10%) 200 _____
Net Profit 1800$
Forecasted balance sheet for the 2nd year
Cash 95480 Note payable 80000
Office Furniture 2700
less: Depreciation 270 2430 Owners equity
Equipment: 3600 Iman Itani’s capital 21150
less: Depreciation 360 3240 _______
Income Statement for the 2nd year
Less: General expenses 1000$
telephone and electricity 3500
Lease apartment 12000
Advertising 10000 126500
Income before taxes 23500
Less: tax (10%) 2350 ______
Net Profit 21150$
Source: Essay UK - http://www.essay.uk.com/coursework/marketing-senior-study.php