Business Idea of Manufacturing Smart Blankets

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The Future

Vision statement

To be the most established, producing the highest quality smart blankets with a manufacturing site in every country globally while upholding honesty, integrity, transparency, and good customer relations in our services.

Mission statement

We aim to impact and improve the quality of life by manufacturing high-standard blankets which enhance the quality of sleep for our clients, especially infants, the terminally ill, and the elderly population.

Goals/objectives

Short-term Goals

  1. To increase overall production by 30% in the next three months.
  2. Hire 50 new marketers who will be posted in various parts of the country.
  3. To establish a new market in three states, namely Arizona, New York, and California.
  4. Improved and increased traffic in our blog and all social media platforms.
  5. Conduct market surveys in two neighboring countries.
  6. Launch customer giveaways and discounts to loyal customers and clients who purchase more than four goods from our stores.
  7. Improve customer care services by 16% in the next few weeks.

Long-term Goals

  1. We aim to open at least one branch in every country globally in the next seven years.
  2. To reduce the production cost, especially the cost of energy, by adopting the use of solar energy in the next two years.
  3. To increase overall brand awareness to over 70% by conducting numerous campaigns, market research, brand promotion, and advertising in the next two years.
  4. Working closely with medical institutions who will be a significant part of our clientele to design customized products for various medical conditions.
  5. To increase the companys total income by 20% in the next three years.
  6. We focus on increasing the companys market share by 10% in the next two years.

The Business

Business Details

Products/services

Changes in atmospheric temperatures affect the quality of sleep as it is hard to sleep when it is too hot or too cold. Mega-spin blantex recognized the trend where most people put away their heavy blankets during summer and get them back on during the winter. However, this trend wastes resources such as time, energy, space, and money as people shift from one season to the next. From this problem, Mega-spin blantex decided to apply the most recent technology in manufacturing to develop a product that will satisfy our clients needs in all seasons. Mega-spin blantex blankets are designed to regulate the normal body temperature, whereby it heats the body when cold to 40 degrees Celsius and absorbs and cools it when hot.

Human bodies are designed to perform various duties optimally when the temperature is regulated. Extremely hot or cold temperatures may damage the body cells, which may lead to other health complications. To avoid this scenario, Mega-spin blantex designed a smart blanket that helps out clients regulate their body temperature. Despite different seasons that affect body temperature, health conditions such as fever and numbness of various parts of the body may lead to body temperature imbalance. Our blankets automatically, without the use of any buttons or electronic interference, detect the changes in the body or various parts of the body temperature of a client when sleeping. To resolve the issue, the blanket slowly heats, if cold, or absorbs the excess heat, if cold, to restore the temple to normal. The company understands the importance of sleep in the proper functioning of the human body.

Our blankets are designed for all types of clients. It does not have any specialization in age, gender, ethnicity, or any other factors. However, the blanket could be advocated more for infants, the terminally ill, and the elderly population. This target group may have difficulties in regulating their body temperatures due to their low-immunity state. Our blankets are manufactured in different sizes, and customers can choose according to the size of the beds or the purpose of the blanket.

Every size has a unique price that is determined by the cost of production and design. Since we are a growing company and we offer the product at an affordable price, we anticipate having an average sales amount of 600,000 blankets in the next six months. This demand will cause a significant rise in the opening of more branches in new states and neighboring countries.

Registration details

Business name

Mega-spin Blantex is a private manufacturing company registered under the Colorado state government. The company was established and registered under the registrar of companies in March 2019. By November 2021, the company has managed to employ 30 employees who conduct various operational duties in the company. Mega-spin Blantex was founded by a group of six investors who discovered the need and gap in the market. Currently, the company has two branches in Colorado and Alabama.

Business structure/ownership

Mega-spin Blantex was established as a partnership between six entrepreneurs who identified the gap in the market. However, the organization changed its registration details to a private company, where it opened room for the purchase of shares from the public. The change of status was to accommodate ownership to our loyal customers and the public as well as enable the company to expand its size and operations.

Business premises

Business Location

Mega-spin Blantex has two locations that it uses to conduct business, Colorado, and Alabama. The company was initially started in Colorado, where the founders had bought a piece of land. The manufacturing site in Colorado occupies a 200 by 100 square feet area. The area has been used to set up a warehouse for the raw materials, the manufacturing area, a warehouse for the finished products, a car parking space, and an office. Some space has not yet been utilized, but the company aims to set up more manufacturing areas in the future. However, most of the sales are not conducted on this premises as it is in a remote area with minimal traffic. Hence, the company has a retail store in the Park Meadows mall, the first shop on the third floor when using the second entrance. There is heavy traffic in this location which enables the company to make significant sales.

Moreover, the company has a branch in Alabama that occupies a leased space. There is an average among of manufacturing that takes place on the site. The company has hired space on the seventh floor of Regions-Harbert Plaza in Birmingham. Mega-spin conducts its operation and sales act from the location. The traffic at the locations is average, while most sales are made through referrals or online systems.

Buy/lease

Mega-spin Blantex aims to expand its operations in Alabama. It requires buying a piece of land to construct the manufacturer site. The company is still fetching for a suitable piece of land in a convenient location in the state. We would like to set up a manufacturing site almost the same size or bigger than the one in Colorado. From the conducted research, the piece of land will go for approximately $1000 while the cost of construction will be $5000

Organisation chart

Example Organisation Chart.
Figure 1: Example Organisation Chart.

Management & ownership

Names of owners

Mega-spin Blantex was initially registered as a partnership business between six investors.

However, without affecting the operations of the company, the owners changed the enterprises status to a private company. The owners are not actively involved in the operations of the business but rather form the board of directors in addition to a few elected shareholders. The board of directors is responsible for overseeing the operations of the company and reviewing its operations on a quarterly basis. Profit is shared among the shareholders according to their proportional amount of shares held in the company. They have employed a management team who participate in the running of the company.

Details of management & ownership

Our management team is comprised of five executives who are experts in their area of administration. Mega-spin Blankets is headed by a chief executive officer who has four other managerial teams below them, as stated below. The team has been vetted and interviewed carefully before hiring to ensure they possess the best qualities required for the positions.

Products/services

Product Size Description Price
Infant blanket This is the smallest type of blanket manufactured in Mega-spin that is designed to fit in a babys cot. The blanket is also portable and can be used to wrap a baby in an outdoor environment. [Price including GST]
Us $400
4 by 6 meters blanket A medium-sized blanket, suitable for a small to medium-size bed. It can be used in hospital or college beds as well. [Price including GST]
US $650
6 by 6 meters blanket This is a big blanket that can be used in a huge or medium size bed Mostly used at home by couples or on childrens beds. [Price including GST]
US $ 800
Free size blanket This is our largest blanket which is slightly bigger than the 6 by 6 blanket. Normally, it is used by a group of people, especially during camping. It can also be used in a big bed at home. [Price including GST]
US $ 950

Market position

Our products and services fit the high-end market. Our prices fall within the expected range of our competitors.

Unique selling position

Our unique selling position is the high and intensive technical that has been implemented in the development of the product. Unlike other competitive brands, our products do not require electric intervention or buttons to operate as they are automatic. We also develop products in different colors and designs that are appealing to the customers. The strategic positioning of our stores is also a contributing factor to the success of the product.

Anticipated demand

Mega-spin Blantex anticipates achieving a sales volume of 600,000 blankets in various designs over the next six months. When visiting our stores, either physical or online, an individual customer is likely to purchase three to five products. It is uncommon that an individual customer will purchase the product more than three times in one year. However, we have a huge clientele from hospitality and medical institutions, which order a large number of products which may range from 10 to 100.

Value to customer

Depending on the need of a customer, some view it as a luxury while it is a necessity to others. For example, a client with good health and normal body temperature may view the product as a luxury. On the other hand, an ill patient suffering from fever or numbness due to underlying conditions may perceive it as a necessity. For parents with young toddlers, the product could be view to be in between a luxury and a necessity.

Growth potential

Depending on past records and future anticipation, our company is likely to have a 10% growth rate in terms of sales, operations, and geographical coverage.

The Market

Market research

Before introducing the product in the market, we conducted market research to understand who our customers are and what they need. Our market team visited various malls in Colorado and Alabama, where they interviewed different potential customers. They performed unstructured interviews with random buyers and recorded the conversation for analysis. However, this method was only able to reach a limited number of customers due to the limited geographic coverage. As a result, it raised the need to conduct online surveys through the companys blog and social media platforms. I will attach a copy of the survey instrument used at the bottom of this template for your reference.

Market targets

We target making a sales volume of 600,000 in different products over the next six months. This will be achieved through sales on our two physical stores, online store, and social media networks. We target high-income earners, the hospitality industry, and medical institutions as our largest clientele base.

Environmental/industry analysis

We conducted various market research both physically and virtually, where we addressed at reached a variety of consumers in terms of age, income, gender, and health conditions, among others. In the two states, Colorado and Alabama, the majority of our respondents were middle-aged and young population. This could be attributed to the geographic region where we conducted the research; in malls. Most of our respondents were high and middle-income earners who were both employed or in business. A higher percentage of the participants recorded the need for the blankets as it is an all-season product.

Colorado and Alabama have a highly growing population which is an opportunity to expand and grow our market. The two states have high human traffic, which is increasing significantly. According to the latest environmental analysis, the smart blanket industry has a lead in South America, Europe, Middle East Asia, and specific Asian regions. This trend portrays evidence of the growth potential of the industry and the acceptability of the product in the regions Mega-spin Blantex is focused take advantage of this trend by expanding its operations to various regions and offering specialized products. We aim to change the face of the product by offering customization, quality, and size differences to accommodate different users.

Your customers

Customer demographics

Mega-spin Blantex targets high-income customers since our products are considered a luxury. The clients could be of any age, gender, and education status. Most of our clients have a habit of trying new products and spending on a luxurious lifestyle. More so, we target parents of young children, the terminally ill, and the elderly population. These three targets group may perceive our products as a necy as they may experience temperature irregularities due to health conditions or weak bodies.

Key customers

Besides individual customers, we target to address and improve the hospitality industry by providing high-quality products. The purchase of our products will create differentiation for the owners of the hotels as they will attract more visitors. Moreover, we target to partner with medical institutions that deal with infants, terminally ill, and elderly patients. Our products may be used to ease extreme temperature irregularities experienced by their patients.

Customer management

We promise our customers to provide them with quality services while observing honesty, integrity, transparency, and accountability. We value them as our most expensive asset and thus focus on satisfying their needs. We do so by practicing good customer service and communication skills in our physical and online stores. After the purchase of our products, we ensure that we get feedback from the clients for any comments or complaints and act on them. Mega-spin Blantex follows the customer service standards that are established and recognized globally. We also offer giveaways and discounts to loyal customers and reward referrals.

SWOT analysis

Strengths Weaknesses
At Mega-spin Blantex, we pride ourselves on having ownership of the best smart, temperature-regulating blankets globally. Through our well-establish information technology (IT) department, we have managed to come up with a technology that enables us to produce quality products at a low price. More so, we have highly skilled and experienced manufacturing managers and personnel. We have established our stores in positions with high human traffic, which enables us to make optimal sales. Our greatest weakness lies in the inability to physically meet more customers through expansion to other states. Our operations are limited to two regions due to the high amount of cash needed to establish branches in surrounding states. We also face huge rental challenges in our current industry in Alabama. The cost of or is also high due to the high cost of energy.
Opportunities Threats
According to the emerging trends, the smart blanket market is making a huge impact in most parts of the world. Some of the regions where the product is appreciated include Europe, South America, the Middle East, and Asia. This is an opportunity for our company to grow and thrive in the trend. Nonetheless, the emergency, appreciation, and prevalence of the online market have provided ample opportunity for us to grow. We are able to sell our products to different geographical regions globally with much ease. The smart blanket industry is very competitive. Hence, we face a threat from the highly established and financially stable industries. We are also faced with financial difficulties in running our operations as we are mainly financed by debt.

Competitors

Being a young and emerging business in a highly competitive, Mega-spin strive to be outstanding by providing different products. We have managed to establish our brand, especially among parents with young infants, as we are the only company that offers this kind of product. We have a 10% market share in Colorado and Alabama.

Competitor details

Competitor Established date Size Market share (%) Value to customers Strengths Weaknesses
Brooklyn Bedding 2009 25 10% Quality and service Financial ability It does not major in one product, hence, divided attention.
Amerisleeps 2010 300 12.3% Price discounts Active blog and social media marketing team Limited production resources
Sleep Number 2018 4,220 25% Convenience and service. Well-established brand image Poor managerial team
Budget 2013 1,330 15% Low prices and discounts Recognized social responsibility and charitable operations. Poor company political culture
Smartduvet 2017 120 5% Quality and convenience Availability of raw materials Low production capacity.

Sustainability plan

Environmental/resource impacts

Our company aims to impact the environment positively through promoting actions that protect its resources. We recycle fabrics to avoid littering the environment. We also encourage people with old fabrics to bring them to our stores for clearing and recycling. Our company aims to eliminate the use of fossil fuels as the primary source of energy and adopt the use of solar energy, which is environmentally friendly and cheap.

Community impact & engagement

Our initiatives to curb environmental pollution ensure that the surrounding community lives in a clean and safe area. In addition, we provide job opportunities to the youths who collect old fabrics from the neighborhood and bring them to our stores for recycling. Through the adoption of solar energy, we contribute towards creating a green economy and safe breathing air.

Risks/constraints

We are faced with the constraint of having a limited amount of water for manufacturing in Colorado, which forces us to outsource water services from neighboring towns. The water and sewerage services in the area are also very expensive.

Strategies

To mitigate the risk of underproduction due to water shortages, we outsource water services from neighboring towns. However, this is an added cost and a short-term solution. To address the problem in the long-term, we aim to partner with the states water providers to enhance the production and distribution of more water. We also aim at drilling a borehole in the premises to supply the company with more water.

Action plan

Sustainability milestone Target Target date
Outsource water services from neighboring towns 30% water increase November 2021
Partner with the water-providing company in Colorado 50% increase June 2021
Drill a borehole in the manufacturing site More than 70% increase October 2021

Supporting documentation

Attached is my supporting documentation in relation to this business idea. The attached documents include:

Questionnaire Used

General Questions

  1. Which is your favorite shopping center?
  2. How frequently do you shop there?
  3. Why do you prefer the shopping center to others?
  4. What goods and services do you frequently purchase in the shopping center?
  5. How much time do you spend when shopping on average?
  6. Which is your preferred spot in the shopping center?
  7. Are you satisfied with the benefits you get for the value of the money you give for the goods?
  8. Would you recommend a change in the pricing of the commodities?
  9. Is there any improvement you would recommend to the mall owners?
  10. Do you have any compliments for the retailers in the shopping center?

Questions about the category and products

  1. What comes to mind when you think about smart blankets?
  2. Do you have any attitudes, perceptions, and beliefs about the choice of blankets?
  3. What are some of the factors that motivate you to buy and consume smart blankets?
  4. What needs (or wants) are you looking to satisfy by using these products?
  5. What likes and dislikes do you have about different smart blankets?
  6. Where do you buy/shop your bedding?

Questions about the brand and competitive brands

  1. What image do you have about Mega-spin Blantex? What comes to mind?
  2. What image do you have about your brand Smartduvet? What comes to mind?
  3. What image do you have about Amerisleep? What comes to mind?
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