In this section of the business plan you will discuss the target market, the product and/or services your business will provide, and your marketing strategy using the 4Ps.
Keep in mind there are SEVERAL different ways to complete this section. Depending on your business you may need a product comparison section showing how your product stacks up against existing products or you may need an intellectual property section to address trademarks or copyrights.
Things to keep in mind for this section:
Target Market- Who are you marketing the product/service to? Why? How many people make up this market?
Product/Service: What is the product/service to be sold? What is your research on this item? What sort of development will have to go into this item? Are there any patent, trademark, or copyright issues or will you need to obtain them?
Marketing Strategy: The marketing mix, at least the 4Ps must be addressed in this section. Product, Price, Place, Promotion.
How will you sell your product or service?
What about market penetration strategies? How will you penetrate the market and how successful do you think it will be?
How will address the competition?
Advertising and Sales promotions
How will you measure the success of your marketing and sales strategies?
How will you price your product?
What are your sales goals?
What are your timelines for sales/growth?
Keep in mind that highly detailed or technical descriptions are not necessary and definitely not recommended. Use simple terms and avoid industry buzzwords so your readers can easily understand.
Describing how the company’s products and services will differ from the competition is critical. So is describing why your products and services are needed if no market currently exists.
If you’re creating a new product (or service), make sure you thoroughly explain the nature of the product, its uses, and its value, otherwise your readers will not have enough information to evaluate your business.
Key questions to answer:
Are products or services in development or existing (and on the market)?
What is the timeline for bringing new products and services to market?
What makes your products or services different? Are there competitive advantages compared with offerings from other competitors? Are there competitive disadvantages you will need to overcome? (And if so, how?)
Is price an issue? Will your operating costs be low enough to allow a reasonable profit margin?
How will you acquire your products? Are you the manufacturer? Do you assemble products using components provided by others? Do you purchase products from suppliers or wholesalers? If your business takes off, is a steady supply of products available?
Type of assignment: Essay