Development and evaluation of strategies for increasing the sales of an electronic product business plan

The purpose for the development of this business plan is the lack of an analysis and certain marketing strategy for selling of the product GSM-SMS-ETH-RS232 Controller produced by a small sized Bulgarian telecommunication company. Initially an external analysis of the business area by Porter’s 5P model has been executed in order to evaluate the significance of forces affecting the competition and PEST analysis have been carried out considering the main macro environment factors and trends concerning the EU electronic industry. Second requirement was to measure company internal performance through an internal analysis by utilizing value chain model which was based on company internal information and practices.Evaluating outcomes from both analyses is combined in a SWOT table followed by the development of coherent business strategies.The consumer behaviour has been researched and market segmented. Market size has been estimated by both historical data of the company and assumptions about the future demand utilizing new selling sources. Detailed benchmarking analysis is made by reviewing the products of direct competitors. Marketing mix strategy was established as an output of the insights obtained through the extensive strategic and marketing research, they include not only the traditional 4P levers but as well as people and process levers. Internal company competences have been assessed in order to describe the key processes, key resources and partner network of the company in relation to the product examined. Human resources plan examines the roles of the current employees and identifying needs for new employees, in order to fulfil these requirements a staffing plan is created addressing the issues of hiring new personnel. Finally, a financial projection of the strategies established has been presented by the estimation of initial investment, operating expenditures, income statement, cash flow statement, payback period and sensitivity analysis. The results expected are encouraging the implementation of the business plan considering the medium level of attractiveness of the business area, strong internal capabilities of the company although lacking sales competences, competitiveness and usability of the value proposition, big size of potential market. The product has been positioned successfully by marketing mix levers with specific promotional strategy and affordable price which turns out to obtain high revenues considering low number of sales. The key partnerships with suppliers bring out security for product production. New partnerships proposed with external sale agents entities and GS1 product certification prove to drive the increasing of sales. Hiring new employee with marketing and sale competences would establish appropriate marketing strategy for higher sales. The income and cash flow statements show that with a very low initial investment the company will achieve remarkable net profits and cash flows by the end of the same year. In addition to that, the sensitivity analysis gave insights that considering negative scenarios the company will still gain positive cash flows by the end of the investment year. Final evaluation of the whole project is driving the facilitation of its proposed strategies benefiting successfully the product sales.