Introduction
Based in Boise, Arm Cannons will be an online retail shop. The company will specialize in selling sports supplements, bodybuilding supplements, as well as dietary supplements. The company has a market advantage due to the high traffic.
The company besides the commercial purposes also purposes to offer other daily editorials on health contents, live streaming broadcasts community services as well as body building competitions. Further, it will operate an in-house themed bodybuilding network that will creates an awareness to the society on various ways to cut off weight or keep healthy to prevent diseases. In addition, the website will led to a creation of exclusive nutrition products for sports purposes. These proprietaries will be sold under the company's name.
Delegate your assignment to our experts and they will do the rest.
Executive Summary
Arm Cannon is an international corporation that is looking forward to venture into the healthcare industry. The corporation will specialize in offering healthcare and fitness services across the globe and is predicted to enjoy a marque reputation stemming from the quality services it hopes to offers. An exhaustive and comprehensive research in the market has been conducted to evaluate how the establishment will toll about prevailing levels of competition, the socio-cultural, dogmatic, permissible and financial dynamics in this setting. Technological and market Viability have been shepherded to ascertain the options available for the compulsory processes of production, distribution and sales of the supplements. The capitals obligatory required to set up the unit have been branded and deliberated. Liu and Kanna (2014) suggests that the fiscal necessities, as well as the business chances for the new businesses, have too been scrutinized as a determiner to the financial requirements for the business set up. In conclusion, human resource factors have been evaluated to deliberate on the essential members of staff, the criteria to choose the personnel, the payment methods for the same, how to motivate the latter, and how the company will be structured. Finally, the approaches to be instigated to accomplish the required progression to reach the target market have been articulated.
. The American and the world market at large are currently undergoing a demand increase for the supplement organizations . It has been stimulated by the momentous intensification in health diseases such as obesity over the past three years. Therefore, there is a need to provide a complete research in market, a breakdown of the business achievability as a way of planning for the establishment of the enterprise (Liu and Kanna, 2014).
Organizational Structure
Arm Cannon Inc. will be under the overall leadership and supervision of the founder as the President. The company will also require a Chief Executive Officer to oversee operations in all the four supply business operation areas that are intended to be set up. Further, an executive board that will purposely focus on policymaking will be established. The managerial board will also administer permitting, conglomeration and future achievements of the company. The company’s President will be responsible for management monitoring, scheduling meetings, and communicating essential information to the executives. The company's CEO will be accountable for company’s guidance on precarious procedures. Other operational officers will be web designers, financial and supply officers and other staff and non-staff members.
Financial Projections
Arm Cannon Holdings expects a steady start up for its new entity in New York, and it is targeting to attract 1,000,000 visitors as website traffic into the website in the first operational year. This target is not only realistic but also achievable. The company is also strategizing the venture and strategy for supplement pricing. The key enterprises in this business charges range from $8 and $200 depending on the type of supplement and the purpose it is intended to achieve.
This will interest major clients. Further, the business is looking forward to a return of $144 million in profits in the first five years of operations. This principle of financial risk form that can be obtained to the company’s commercial enterprise includes bankruptcy and liquidation. However, Arm Cannon will not only be a favorite and fruitful health brand but will also cover up for these threats using its monetary capitals. The business will also fund all the requisite assets and cover all the operational costs. This means that there will not be any business aspect that will have to be predetermined. Arm Cannon will be capable of lidding all the costs of operations.
| Financial Dynamic |
Cost($) |
| Hiring Operation Rooms | 144,172 |
| Purchasing a Website Domain | 88,000 |
| Website Optimization costs |
2,888 |
| Other Office Operational Costs |
4,677 |
| Office Operational Cost Totals | 201,897 |
| Supplements and Shipping Cost, |
15*130, bulk |
| Alpha |
3*130. bulk |
| Alpha Tests |
11*130, bulk |
| Culture Nutrients | 4*130, bulk |
| T-up Black |
4*130, bulk |
| Testonogen |
7*130 bulk |
| Transportation Cost | 5678 |
| Electricity Cost |
456 |
| Laboratory Cost | 9597 |
| Total Operational Costs for the First month |
312,904 |
Direct Competitions
Other than Arm Cannon, other online businesses deal in the same line of trade; the below description states the business opportunities available in the market even with the competition margins, competitors strategies to win consumers, and their marketing methods. The table (a) below further illustrates this. However, Arm Cannon will use forthright and effectual approaches to sell its supplements online (Li and Hankison, 2015). As such, an online supplement sale is not only a profitable but also a lucrative business idea. Arm Cannon is an ideal corporate prospect, especially for the fitness fanatics. The company will target those who hope of gaining strength, power as well as muscles, such includes as teenagers, women, and men, bodybuilders, fitness enthusiast as well as athletes.
Marketing Strategies
The company will make use of personal branding. Successful personal branding will give Arm Canon a momentous start to its operation. The other marketing strategy is the use of content marketing that includes the use of e books or white papers. The use of eBooks or white papers will attract downloads. In addition, the company will employ search engine and conversation optimization. Search engine optimization will make the website more visible in search engines. The people who visit the site will then be engaged in a conversation. This conversation will ensure that the website gets more value from each and every visit.
Competitors Intactness
There are many online shops dealing in the sales of bodybuilding supplements, therefore the company must consider the particular factors that will make Arm Cannon unique. Further, the company must provide the customers with other after sale services, this will amplify the business income.
Market Sales
Tuzovic, Kuppel and Wieser (2014) outlines that most of the online shops frequently run out of stock; this eventually end up in customer loss and ultimately losses to the business. However, keeping the products in stock requires enormous amounts of capital, which a beginner might not easily access, however with time the company’s stock keeping should overriding the sales. Further, to prevent the business running out of stock, track inventory is necessary. As such, Arm Cannon will be capable of determining the hot selling products and the least selling products. Stock keeping will also assist in winning new customers, as the client's perception is that you are reliable. This increases the sales of the supplements. Below is with projected sales for products the company will sell. The table contain the projected sales, target market, resources needed and marketing strategies for each product
| Company Name | The Vitamin Shop | Nordic Naturals | Resevergaes | Natural Plus |
| Sales $(Financial year 2016/2017) | 23,056,789 | 45,689,035 | 256,504,093 | 3.838.685 |
| Employees | 875. 6working Stations | 890, 6 working stations | 1200, 5 working stations | 456, one major working Stations |
| Market share | USA, Australia, Africa and some Middle East Countries. | USA | USA and Australia | USA |
| Marketing Strategies | Advertising, sales persons, Billboards and flyers | Billboards and Advertising | Online Marketing, advertising | Advertising, online Marketing, sales persons, Billboards and flyers |
Industrial Environment
As stated earlier, Arm Cannon will entail accomplished employees for management and services. The most crucial part of the managerial area is represented by the business operations. It dictates the responsibilities, operations, and motivation strategies for motivating the employee. However, the organization will plea for a skilled and experienced administrator considering that it is an online business without personal contact. The administrator too must have been employed an analogous business position with few business reviews from the former. The entity also stresses attention to the ethical and quality business standards. This necessitates the pressure for hiring experienced and skilled employees (Tuzovic, Kuppel and Wieser, 2014).
The company will also pursue to cultivate on its reputation and success. This can only be achieved by presenting quality website services. The expectations and needs of the sports personality, students, teenagers and all other people who use the supplements will form the fundamental operations of the organizations. Motivation of workers will guarantee quality work from the employees.
Quality will also underscored on employee’s diligence, respect, and politeness when serving the clients. Mentoring the employees by offering those scholarships to improve their work quality is also prevalent. They will gain work experience to their relative work position.
Marketing Arm, Cannon Supplements
Arm Cannon should not keep the cost of the supplements products too high, as the customers might not be able to purchase the products thereby severely affecting the sales, as they will be forced to check to other online shops. However, the company should neither offer low prices the products as this may affect the profit margins of the business nor high prices for their products as it will put off customers. The company can merely survive on few profits for every sale done due to the cost factor (Tuzovic, Kuppel and Wieser, 2014).
The company intends to price the supplements effectively to guarantee the growth of the business. Arm Cannon must also conduct a proper market research for their products. This will help in the balancing structure of the supplements in the larger market. The business also looks forward to draft an efficient marketing strategy; this will guarantee an opportunity for the firm to be known to the broader public. Creativity is paramount during the marketing and advertising, for example, offering discounts to the customers, requesting for the feedback of the client and the preferences that they may like added to the business for their sake.
The size of the world market for supplements mostly depends on the people's needs to keep fit, health assurance or for sports purposes. The world's supplement sector recorded 1,630,000 people in need of keeping healthy last year. This percentage denotes an 8.2% upsurge in website traffic paralleled against the recorded numbers in April 2015 (Quing, Wei, and Huilan, 2014).
The supplement business is largely nailed on the sports industries, as the last two years experienced numerous sporting activities all over the world. Civil education and website awareness regarding the need to keep healthy has also influenced this increased numbers. However, this numbers shows not only an unbending competition in the market but also lack of competitors superiority necessary to gain the satisfaction and confidence of the supplement users (Quing, Wei, and Huilan, 2014). As such, Arm Cannon strategizes on effective methods to carry out civic education to promote the brand.
The company also looks forward to implement several enactment methods on the product pricing. This strategy purposes on significantly charging low rates to customers and ultimately offering greater quality of its services amongst other eatables. However, the market is not flexible and am expectant that as an organization, we will face various challenges, these among others includes, acquiring business permits which is a requirement by the American business laws. Further American’s GDP is on the rise, this means a rise in both interest rates and uprising of the inflation levels. The capital outlay of the business is also a barrier to the market entry (Quing, Wei, and Huilan, 2014).
References
Li, H. A., & Kannan, P. K. (2014, February). Attributing conversions in a multichannel online marketing environment: An empirical model and a field experiment. American Marketing Association.
Tuzovic, S., & Kuppelwieser, V. (2014). The marketing blog competition: Integrating educational blogging and analytics in the classroom. Journal of Innovative Education Strategies , 3 (1), 43-59.
Qing, F., Wei, S., & Huilan, C. (2014). Micro-blog Marketing of University Library Based on 4C Marketing Mix. In Frontier and Future Development of Information Technology in Medicine and Education (pp. 205-212). Springer, Dordrecht.
