Topic: New Product Idea (Water Management System Project)
Business idea
Water Management System Project – Context
- Executive Summary
- Segmentation, Targeting, and positioning (STP)
- Marketing Mix (4p’s)
- Objective and issue sale forecasting
- Budget plan
- Promotional Budget for six month
Executive Summary
Water irrigation and management system I use in this system new technology with import of sensors and use of mobile apps. Our goal is to provide services and to help farmers and growers with our low cost smart irrigation system that come with the expense of saving water and increasing the maximum crops. The total geographical area of Pakistan is 79.6 million hectares. About 27 percent of the area is under cultivation. From this area, 80 percent is irrigated. In this context, Pakistan has one of the highest rates of irrigated cropland in the world. The irrigation system used in Pakistan is old nature and need technological improvement in this system, which saves on water and electricity and the growth of the crops will grow.
In Pakistan, farmers using old irrigation system which is more provide benefits. And agriculture play a large role in our economy, but there is no improvement in irrigation system which uses many years and lead to waste water and also impact on crop growth. I am sure that this system was readily adopted by our customers and can easily purchase our services, because the system is cost effective. Instead of our old system of smart irrigation should be favorable by our customers and can easily afford. Our suppliers will be those from whom they buy sensors and sprinkle system and wireless zig bee network. There old irrigation system can be a substitute but smart irrigation system gives customers benefit. Through the use of our system in 40 % of water can be saved. The company operates through the use of our technology, in which wireless devices and sensors. We will charge a monthly basis compared with square feet. Use their own distribution channel and not using outsourcing. At the end will generate enough revenue to beat the cost.
Plan on water management system
Segmentation, Targeting and positioning (STP):
Segmentation:
Geographic
We segmented by geographically. This system has great opportunity in Pakistan because Pakistan is agriculture country. Agriculture system provide main role of economic growth. Most of the Pakistan area is arid or semi-arid because of this rainfall is not only sufficient for crops. About 68 percent of the geographical area has annual rainfall of 250 mm, whereas about 24 percent has annual rainfall of 251 to 500 mm. Only 8 percent of the geographical area has annual rainfall exceeding 500 mm. Thus supplemental water is required for profitable agricultural production, either from irrigation or through water harvesting.
Targeting:
We target allover Pakistan but basically target rural areas because cultivation mostly in rural areas. Our customers include farmers, golf club and homeowners. I am sure that this system easily adopt because irrigation system easily and affordable.
Positioning:
Water irrigation system creates value in customers mind with a unique irrigation management system which is an automatic, easy to use and accurate irrigation scheduling system at an affordable cost that takes advantage of recent technological advances with wireless networking, environmental sensors and improvements in crop Modeling.
Marketing Mix
Product:
We provide water management system with sensors which automatically controlled water. This system provides services to maintain the water and avoids water wastage and less electricity consume.
Price:
The major cost is purchase sensors which is imports other country. And we installed other equipment for networking. So, we will charge a monthly basis compared with square feet OR we sale all water irrigation sensors.
Place:
We sale personally and we use own distribution channel and do not use outsourcing.
Promotion:
We use three kinds of promotion tools which is include TV, radio and newspaper because these promotional mode are very useful for us lots of people use these three mode some watching TV some listening radio and some people reading newspaper in regular basis that’s why we select these three tool of promotion tool.
Objective and issues sales forecasting
Objectives:
We launch new in country so we can easily gain market share because the target market want to new technology. This system is use full for our members can save labor cost and takes advantage of our timely schedule of irrigation system which command sprinkle system install in the clubs and fields according to water need.
Issues sales forecasting:
We launch new product in country so peoples are less aware about this product. So, in starting sell our product is less. Therefore we promote our product with different ads and get aware about product so, sales are increase with the passage of time.
Second most important issue that our product is new So, they can’t use properly because the illiterate peoples exist in rural areas.
Water Management System Project – Budget Plan:
Project Cost:
Capital Investment for the Project:
Capital Investment:
Import of sensors 200,000
Import of wireless devices 500,000
Solar Panel 300,000
Total 1000,000
Building rent50,000/month
Staff salary 300,000
Total Cost 1350,000
Waterbee Smart Irrigation System
Income Statement for the month ended 31 Dec 2013
Revenue 700,000
Less Expenses:
Salaries Expense 300,000
Supplies Expense 20,000
Rent Expense 50,000
Miscellaneous Exp 5,000
Electricity Expense 30,000
Telephone Expense 2,000
Earning before tax 293,000
Tax 3,000
Net Income 290,000
Waterbee Smart Irrigation System
Income Statement for the month ended 31 Dec 2014
Revenue 800,000
Less Expenses:
Salaries Expense 300,000
Supplies Expense 20,000
Rent Expense 50,000
Miscellaneous Exp 4,000
Electricity Expense 30,000
Telephone Expense 2,000
Earning before tax 394,000
Tax 3200
Net Income 390,800
Promotional Budgets for first six months
We use three kinds of promotion tools which is include tv, radio and newspaper because these promotional mode are very useful for us lots of people use these three mode some watching tv some listening radio and some people reading newspaper in regular basis that’s why we select these three tool of promotion tool. The calculation of promotional budget are given below.
Ads on Television
We use two channels for advertising and the name of those channel are abc NEWS and xyz NEWS.
Allocation of budget for ABC NEWS
| Time | Duration | Days | Weekly charges | 1st month | 2nd month | 3to 6/ 34400/month | Total Amount |
| 07:45 to 9:00 pm | 07 Seconds | 2/week | 17200 | 68800 | 68800 | 137600 | 275200 |
Allocation of budget for XYZ NEWS.
| Time | Duration | Days | Weekly charges | 1to 6/ 20000/month | Total Amount |
| 01:00 to 7:00pm | 1mintue | 7 | 5000 | 120000 | 120000 |
Allocation of budget for Newspaper
| Location | Dimension | Days | Weekly charges | 1 to 2/3000/month | 4 to 6/750/month | Total Amount |
| Content Banner | 620(W) * 90(h) pixel | 7 | 750 | 6000 | 6000 | 12000 |