Kitty's Computers is a new small business started by Kitty Taylor building custom computers out of her home. Market research found families are interested in customized, brand new laptops costing £200-£600 that can be delivered within 3 weeks. The business plans to focus on building computers to customer specifications, continue using their current supplier, produce products as orders come in while holding limited stock, deliver within a week of order, and test each laptop before delivery. Financing options include a bank loan. The business will not hire a pregnant friend due to maternity leave laws but will fill an open receptionist position instead.
2. Background
• We are a new company, however I have plenty
of experience with building computers.
• Currently we are a small business but we are
aiming to expand and grow the number of
employees we have
• We have 2 close competitors
• The company is set up in my spare room in my
house so we don’t have a shop as of yet.
3. Scenario 1
• Market research has been done and the
findings are on the next slides.
• Kitty’s Computers are going to specialize in
building new computers specially to how the
customers wants them.
• Research will need to be done to find out
what the majority of families in Grantham are
looking for.
4. Which of the Below options apply to
you when buying a new computer?
Views on New Computers
Brand New
Second hand
Restored
Happy with current one
Only buy from big chain
5. How Much are you willing to Spend on
a brand New laptop designed to suit
you?
Spenditure on computers
£200-£300
£301-£400
£401-£500
£501-£600
£601+
6. How long would you be prepared to
wait for your computer?
Time for Computer to arrive
Under 1 week
1-2 weeks
2-3 weeks
3+ weeks
7. What is the most important part of a
computer for you?
Important in a laptop for you
Big memory
Big screen
High definition screen
Technical software
Lots of software
8. Scenario 2
• The target market that I have chosen is
families.
• We need to now Market our company this
involves getting people talking about us.
• People will be able to place orders by post or
by Telephone.
• We will set the price of the computers
depending on the results of the market
research.
9. Scenario 3
• We are going to be building computers to the
preference of the customer.
• We are going to stick with our current
supplier.
10. Scenario 4
• We will produce the products as the orders
come in, this is because the orders will all be
different.
• We will hold little stock to begin with probable
3 of all the components that we are offering.
• When we expand we will employee someone
to build the computers as I wont have time.
• Delivery will be done in a week and will be
done by hand to begin with.
• Each laptop will be tested before it goes to the
customer.
11. Scenario 5
• It is possible to get a part time job
• Asking family and friends
• Selling some personal assets
• Theses are all possible ways to raise
finance, but in my eyes the best option is to
ask the bank for a loan.
12. Scenario 6
• There are very complicated laws to do with maternity
leave.
• One bonus with using my pregnant friend would be
that I wouldn't’t have to pay her during her maternity
leave because she has not worked for me for over 26
weeks.
• However this isn’t a reason to employ somebody and it
would mean not having an employee for 26 weeks.
• I have decided to take one of the other candidates.
• There is also a need to fill the position of
receptionist/administrator.
Notas do Editor
New Computers – we are doing this because both of the current competitors ( PC Nerd and Technophobe) both specialize in other areas. This makes us different from them and enables us to set our prices to suit us and hopefully little comparison will be made. Although we can expect some as Pc nerds and Technophobes' computers are likely to be cheaper because they are restored parts, but to avoid this we will have to emphasize that we are building from new parts.
Target Market – Had the choose of Businessmen families and local small company's. The reason families were chosen is because in Grantham (where we are based) there are a lot of familes and less businessmen, even though there are a lot of small firms this would still be a challenging business to enter as it would involve multiple orders at once. This is an area that we could target at a later day once growth has been made.Marketing – WE will print 200 leaflets that we will put out in taxis, shops and possible put a few through some doors of areas where families may live. We are also going to make a radio advert to put on the local station also an advert in the local paper. We are going to make a Facebook account, this will mean children will hear about us and tell their parents. We have considered other choices such as TV adverts and Loads of leaflets through the doors, but these options seemed to expensive to begin with, when the company starts to grow we can increase growth by more marketing. Orders – orders can be made by post or on the phone, this way all orders can be discussed and noted down properly. When growth happens we can start to think about having a website. But to begin with we have decided this is to expensive and may not be what the company needs. We want to build up a loyal customer base.Price – from our Market research you can see that People are willing to spend over £600 for the right computer. Its obvious that each computer will be a different price depending on the components needed.
1 – this means that we wont have a brand marking product but we will have all the components that can build a computer to the design of the customer. The customer will get a list of components that they can choose from and what grades they can have.Supplier – we are going to stick to our current supplier because we have built a good relationship with them, and from our market research you can see that delivery date is key to our customers as they want their computer within a week. And as we are expanding we have a some cash capital so the credit length wont effect us that much.
Produce – this way we are keeping cost low, and we should still be able to get the products out to the customer within a week. This will reduce the number of waste product. Once we are getting regular orders and there starts to be a pattern then we may produce computers before the orders to fit to the pattern. Stock – Holding little stock means that there isn't loads of capital tied up that the business cant use. This capital can be used to buy stock when its needed, pay staff etc. Employee – this is better than sub-contracting work out as it means that we can still maintain a high level of quality and products can be checked easily. It also means that everything is still done in one business. Delivery – this will be done in a week because from the market research that is what they said that they wanted. Also it will be done by my self to begin with, if to many orders come in then I may ask a friend to help me out. This way I know that the order will be delivered on time and with high levels of customer service. Customer service – To keep customer service to the maximum all computers will be tested before they leave the house. There will also be a free call out service for 3 weeks after you have brough the computer, this will enable us to help the customer with the computer instead of them complaining. There will also be a 1 year warranty plan at a small extra price.
Loan – The loan means that the money is officially yours until you can pay it back, there is no chance of falling out with any friends or family about it which can be quite common when dealing with money. Getting a part time job would be difficult because it would mean that less time could be spent concentrating on the business.
Candidate – I am taking one of the other candidates on because I feel that it would be difficult to work with a friend. It would put a lot of pressure on the friendship and I would rather keep her as a friend. Plus this candidate had great people skills, he was very confident with new people and treated them with great respect.I would love to be able to help my friend out by giving her the job but I don’t think she has the people skills that the other candidate had. receptionist/administrator – this will need to be advertised separately and interviews can be conducted.
