Case Study Of Home Computers

PART-3
BUSINESS NAME: The Home computers is a very good name for the business as the business is met to serve the need of the local customers in the area. The name specifies the objective of the business. So, the name of the business carries some value in it according to the purpose of the business.
SERVICE/PRODUCT MIX:
COMPUTERS:
Ready to sell computers: $ 250-1000
Custom Built Computers: 350-1500
Laptops: 300-2000
SERVICE AND REPAIRS
Fixing of Computers: $50-300
Exchanges: Only within guarantee period
RENTAL STATIONS: $10/per hour
PRICING
We must charge appropriately for the products and high-end, high-quality service and support we offer. Our revenue structure has to match our cost structure, so the salaries we pay to assure good service and support must be balanced by the revenue we charge.
We cannot build the service and support revenue into the price of products. The market can't bear the higher prices and the buyer feels ill-used when they see the same product priced lower at the chains. Despite the logic behind this, the market doesn't support this concept.
Therefore, we must make sure that we deliver and charge for service and support. Products, service, installation, networking support-- all of this must be readily available and priced to sell and deliver revenue.
DISTRIBUTION
The products and the services offered by the home computers would be served directly to the end customers. The Home Computers would act as intermediate between the whole sellers and the customers. Some of the products would be from the direct distributors of the some brands like Acer, Sony, and Dell that will constitute the ready to sell computers.
The customers coming in to the store would be offered with the best suitable computer or the service required. The computers would be organised efficiently so that it attracts the customers more and it is easier for the customers to choose the right one for them. The store design would be perfect for the direct distribution to the customers.
Channel Analysis: Channel | Location | Maintenance | Value | Growth | Readiness | Sales Rep | Westwood (Malton) | High | High | Positive | Open to Customers |

PROMOTION
We would use different promotion strategies for the development of the business. This is new business, so it is very critical to choose the right promotion methods for the business. One of the best methods to reach to the customers is the local newspaper. The message that we need to convey to our customers would be excellently stated.
Radio is potentially a good opportunity. Our target buyers listen to local news, talk shows, and sports. Sponsoring a technology show at local radio would be a great opportunity. There would be some other methods too which would be used to promote the business. The details could be found under the following table: Promotional Mix | Promotional Tactic | Month | Cost per Month ($) | Total Cost | Estimated Response | Advertising | Local Newspaper | JanuaryApril | 120 | 200 | Medium-High | Discounts | Cumulative Discounts | February-March | 200 | 400 | High | Public Relations | Word of Mouth | January- December | N/A | N/A | High | Advertising | Radio | May-July | 150 | 500 | High |

Promotion Evaluation: Promotion will be evaluated by getting feedback from the customers. Customers would be asked from where they got to know about our business. The record would be kept by the register for more dept. analysis. The sales would be calculated accordingly being affected by a specific promotional tactic or tactics.

PART-4
OPERATIONS PLAN
Space and Equipment: The store has space of 7000 square foot in the mall. The space would be used efficiently to organise all the equipment. The home computers would need about 10 computers for quick use, 10-15 computer models for the customers who want to buy new computers, Shelf

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