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the next big thing

business, mood boots

eduardo machado

on 20 April 2010

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Transcript of the next big thing

The Next Big Thing Topic 1:
Business Organization and Environment Topic 2:
Human Resources Topic 3:
Accounts and Finance Topic 4:
Marketing Topic 5:
Operations Management Name of the Company Product MOOD the business will begin as a partnership and as it gets bigger we will convert it into a company. This is because when the company gets bigger, the responsibility for our products also increases, and in order to avoid our own wealth to be at stake we will become a private limited company. Business Structure: The company’s objective is to establish a brand name, that can be recognized worldwide, and create a community of mood boot users. Furthermore, the company will set up retail stores available for different large markets in different continents. Mission Statement: Our purpose is to produce and sell high quality rain boots that will reflect our customers feeling, in a clear explicit way for others to notice. Vision Statement: BOOTS The employees in charge of the production will be paid in a combination of wage-times-rates with commissions of 5% of what they produce.
This will be done in order to motivate employees to work longer shifts and increase production. Employees: Start:
The company will have three employees working in the management and administration of the business, and will have ten workers taking care of the manufacturing and production, to start out with.

2 years after:
Later on, with the expansion of the company, the employment needs will depend on the market demand of the product. Furthermore, if the company decides to go offshore, a new factory and office will be established for the new location. Motivation in Practice:
The office personal will receive a steady salary
These employees will receive this payment system since they will receive the specific tasks they must do everyday. Salary: Wages Times Rates and Comission: CashFlow Statement The marketing mix: Product:
our product consists of rain boots that change colors vividly according to the feelings of its user, furthermore, each color will have a distinct meaning that will represent clearly the state of feeling of the person. This product will take advantage of the fashion trend of using very colorful, hot and flashy colors to attract the attention. USP:
of the product will be that these are the first footwear that will actually change colors depending on people’s mood. This is a criteria that only moodboots has developed in the market. There are many other rain boot companies of also very attractive colors and models but not however changeable colors. Place: Where:
this product will be sold in the northeast coast of the U.S. mainly targeting the cities of D.C., New York, Chicago, Boston, and the towns surrounding this big cities Distribution Channels:
the company will attend to sell their product via large stores such as walmart, Walgreens, Winn Dixie and shoe stores located in malls such as footlocker, Payless and others. The idea is to massively target the audience. Price: The product will be sold for $69,99 a pair and promotions from this point on will depend of the direct selling company.

Pricing Strategies:
the company will use cost based pricing with a relatively high profit margin. However, the pricing will vary on the success of the product and our continuous production costs. Promotion: Above the Line Radio Advertisement Mass Flow Line, since mood boots are not unique pairs but are repetitive and use the same structure all over and over again, a mass flow line will be the most productive way of making abundant number of boots.

Production Method: Costs, Revenue &
Break Even Analysis: Costs: Fixed Costs:
Finance Charges
Phone Variable Costs:
Wages and salaries
Production costs Break Even Analysis: Considering that the production costs will be $20,000 plus the total costs of $14,500 per month, it would mean that the break even point of sale monthly would have to equal $34,500
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