Business Plan for “Have Fun Reading”
“Have Fun Reading” is a mobile application developed by the Mobile Solutions Company, targeted to support English learning as a second language. The app is particularly created to help those who have challenges understanding English vocabulary. The main purpose is to make English learning enjoyable and easy to understand the vocabulary used. The product will be marketed to a global market given that the language is universal in nature. Mobile Solutions Company sets out to develop the app that will be highly engaging and effective in promoting learning of English as a second language. The target consumers for the product are the parents and teachers of the students learning the language. It will also promote learning for the adults seeking to acquire English as their second language. The app is created in such a way that it will be operated through various mobile platforms, including Android, Apple OS, and Windows OS. Since the product will be marketed internationally, it is expected to generate high revenues for the company.
- To promote learning for children acquiring English as the second language.
- To generate revenue through sales of the app for Mobile Solutions Company.
- To enhance market penetration for the company as it targets a global consumer base.
Product and Service Offering
Mobile Solutions Company has been in the market developing and marketing mobile apps for the last ten years. It has set out the base to provide quality in this area, especially in the development of apps aimed at promoting learning. English is an important language, explaining its global status. People across the world are struggling to learn the language, beginning with children at school. However, learning the language is not always an easy affair. Under those premises, it forms the basis for the design of “Have Fun Reading” by Mobile Solutions Company. The application is primarily created to support the learning of English vocabulary, which is the area that the learners struggle the most. The product is designed following the identification of the gap in the learning needs of the students across the world. Mastering the vocabulary has never been easy, creating the need to make the learning process more enjoyable. The app will be easy to download, install, and use. Therefore, designers of the product have expectations that it will appeal to all those studying the second language for a greater level of mastery.
Market Opportunity and Analysis
Defining the target market is critical because there must be somewhere that the product will be sold. There is a huge opportunity for the sale of the app because of the growth in the proportion of the people learning English as a second language. Major transactions and communications in the world are made in English. Thus, there will be no shortage of those seeking to acquire the language. Both local and international buyers are expected to be interested in the product. The target market for the app is the parents and teachers of students learning English as a second language. The app will also be used by adults interested in developing competence in the language. The teachers and the adult users have the purchasing power, explaining why they are the main targets. Teachers, who are in contact with the learners, will have an influence in the decision to buy. Indeed, the market has millions of real and potential buyers.
“Have Fun Reading” is not the only mobile app in the market teaching vocabulary for those who are learning English as the second language. The mobile applications industry has been growing in the recent years. Individuals and companies are developing apps all targeted to appeal to the same clientele. The increasing variety of operating systems and the growth in demand for applications is the reason for the rise in the developers of these products. However, while these players are releasing to the market various apps, not all of them are appealing to the consumers. Some of the apps will remain in the play store and the apple store without considerable downloads for use. The process through which the applications come to the market is a multifaceted one, indicating the importance of developing a unique product that will gain success in the market. That is the kind of service that “Have Fun Reading” app will be offering. Nonetheless, the product will be competing with many other designs in the market.
Mobile Solutions Company will be competing with some of the leading names in the mobile app industry. Some of the business rivals will be WillowTree, Inc., Dom & Tom, ArcTouch, Intellectsoft, and Appster. Without a doubt, the developers are big names in mobile app industry. The companies have the experience of more than five years in the market. They have also generated apps that are well known to the customers, which give them an advantage over Mobile Solutions Company. In developing “Have Fun Reading,” the designers know the nature of the competition and have come up with a product that will sell regardless of the reality. There are some competitors who will be displaced by Mobile Solutions Company once the new app is in the market. Among these are TechAhead and Experion Technologies. Although the companies might not be out of business, the presence of “Have Fun Reading” is anticipated to outsell their educational apps.
Competitiveness of the App
Regardless of the competition, “Have Fun Reading” is expected to be appealing to the target customers. There are unique features that the app will offer. The product is developed with the needs of the customers into consideration. It is what the customers would want to enhance their chances of learning English vocabulary. The app is not created for fun, but to bridge an identified gap in knowledge. The customers will buy the product based on its effectiveness in promoting the learning process. It is not created for fun only, but to be interesting as it promotes the process of knowledge acquisition. The product will also be constantly upgraded to ensure that it continues to address the identified need. The customers will always find the app useful as long as they are working to develop their competence in English.
While other companies focus on developing general apps, Mobile Solutions Company has realized the need to focus on the educational app to gain an edge in the competition. In the last five years, the company has come up with products that have performed well in the market. Among the products manufactured include those targeted to making learning interesting for students with various forms of disabilities. In the last three years, two apps have outperformed many others in the market. The two are “Power Learning” for children with autism and “Fun Learning” for children with general learning disabilities. The new app is expected to perform at the same level or even better than these two apps.
Detailed Persona of Potential Customers
Market segmentation will provide the actual characteristics of the customers who will be targeted by the product. The process will present a number of manageable parts of the market to which the message will be sent. Demographics of the potential customers will form the basis for the segmentation. Adults across the world are the targets for the app. The customers are between the ages of 23 and 45 as they are the ones with the highest probability of having children who are learning English as a second language. In addition, the middle to high-income earners are the targets for the app because they are the most likely to have the purchasing power. They are also most likely to have the mobile devices on which the application will operate. Given that the app will attract some charged when downloading; therefore, it is critical that the target population has the capability to pay. The market will also be made up of those who have a high school diploma and above because they will understand the app and use it in teaching their children.
Mobile Solutions Company has a strong team of talented human resources. The development and marketing process of the product will be a responsibility of the employees of the company. It has invested in developing individuals who have adequate knowledge of their work. To deliver the product, the information technology department will be responsible for creating the app. After the product is complete, the marketing team will ensure that it is successfully promoted to the real and potential customers. Besides the people, the media will play a huge role in sending the message of the product to the customers. A communication strategy will be devised, which will make use of the different media channels that will appeal to the global clientele. Different mobile platforms will be used to sell the product, which will be downloaded by the customers. The app will be available in the Android, Apple, and Windows Operating Systems.
Corporate Priorities and the Processes
Communication is one of the corporate priorities to ensure success in the marketing of the new app. Therefore, creating the app without a strategy on how it will be communicated to the market is pointless. The company will commit the resources necessary to ensure that the message about the app reaches as much of the target market as possible. Besides, the company will ensure that the product is priced, positioned, and promoted adequately to the customers. The management will invest in these processes to make the product a success. The marketing mix activity is the process that will sell the app. The methods will be adopted bearing in mind the level of competition the product is facing. The focus is to make the app more competitive than others in the market.
The product is not created for fun, but to bring profits to sustain the company. It should be able to provide adequate returns on the investment. Hence, the revenue generated by the app should be able to cater for the production and operations costs and allow a margin of profitability. It is estimated that the app will be developed at a cost of $100,000. The amount encompasses the cost of the resources, materials, and time spent in the development of the app. The cost of marketing for the product is also catered for within that cost. It will be necessary that the sales revenue from the app cover the cost and provide the company with the projected profits.
On the other hand, the app is set to cost the consumer 10 dollars to buy it from the mobile platforms. This is the price that will be paid by the customer when downloading the app to run it on the tablet, iPad, or on a mobile phone. Therefore, to break even, it means that the app must be sold to approximately 10,000 buyers. At this point, the company will have gained the cost spent in developing and marketing the app. The product is targeted to millions of a global customer base. The target should be met by the end of the first year of marketing. However, the number targeted is not expected to buy the app, but approximately 500,000 buyers are expected to purchase it. Thus, the app will have gained $5,000,000 in sales. After deducting the cost of production and marketing of the app, the company is expected to make a profit of $4,900,000 during the initial year.
|Monthly Revenue Break-even||$8,333|
|Average Percent Variable Cost||1%|
|Estimated Monthly Fixed Cost||$8,333|
The table below shows the projected profit and loss for the “Have Fun Reading.”
|Mobile Solutions Company
Income for the 1st quarter of (year)
|Mobile Solutions Company
Income for the 2nd quarter of (year)
|Mobile Solutions Company
Income for the 3rd quarter of (year)
Keys to Success
“Have Fun Reading” is the business proposition that is clear, which is the main success factor. The app promises to add value to the learning process of the customers. The marketing team will emotionally appeal to the parents of the children learning English as a second language and to the adult learners. Promising value to the customers is the most important element in their decision to buy the product. The buyers will be prepared to purchase the app because of the idea of promoting their acquisition of English, which is an imperative global language. There will be an influence on the decision of the teachers who are willing to get a resource to support their teaching. The product adds value to the customers, which will play a role in its performance in the market.
Marketing Plan Summary
“Have Fun Reading” has a promise of changing the world of studying English as a second language. There is a growth in the number of individuals seeking to develop competence in the language. From the plan, it is evident that the app will be competitive and generate adequate returns for the company. The app is a profitable product for Mobile Solutions Company.