Increasing Sales Revenue by Updating the Bangbi Baby Bottle.doc

increasing sales revenue by updating the bangbi baby bottlesubmitted by (please write your own name here)student id number (please write your student id here)supervised by (please write your supervisors name here)a paper submitted in partial fulfillment of the requirements of the degree of bachelor of artsthe institute of online educationbeijing foreign studies university摘要 邦比有限责任公司于1993年在深圳筹建并于1994年将总部设在北京。该公司是专业的生产和经营婴儿奶瓶的公司，其产品专供美国市场，并在北美市场中占有5-10%的婴儿奶瓶的销售市场份额，个大超市都有出售邦比奶瓶。近期，公司的销售额呈直线下降趋势，市场分额不断缩小。本文通过行业分析和客户需求分析，发现美国奶瓶消费者对婴儿奶瓶的要求也越来越高，尤其是年轻母亲们对更便捷产品情有独衷。公司目前的产品不能适应在微波炉及其他新型加热电器中使用，2009年第一季度的销售额下降了3%。要提升销售额，公司需要在充分的调查研究的基础上对产品进行改进。本文的项目假设通过市场调查和可行性分析将目前公司的奶瓶改造成带有温度感应器的“邦比儿安”奶瓶，并在材料选折上采用硅胶材料替代原有的塑料材料。从而使邦比婴儿奶瓶在项目实施阶段从2009年6月到2010年5月销售额上升23%，市场占有率提高到8%。整个项目始于2009年6月，为期一年将于2010年5月结束。项目分为三个阶段：1. 通过对公司及产品现状的分析，以及swot，客户需求分析，进行问卷调查和前期的实验室研发，确定该项目实施的可能性及项目的目标。2. 拟定具体步骤和内容。项目执行期间进行全程跟踪和监控,使项目得以顺利地按计划执行。3、对程序进行使用和改进，并对项目进行评估。检查其是否达到了预期的设想和目标。从产品改进项目的实施前后效果看，客户量的增加及销售数据显示该项目达到了预想的效果，实现了利润和市场份额的双丰收。此项目的实施不仅给公司带来了利润，同时对全行业来说是一种提升，产品年得到了更新换代，在全行业中是一不小的变革。关键词：婴儿奶瓶; 收益; 市场份额; 产品改进abstract this paper gives a detailed picture to increase bangbis revenue through product updating.bangbi, inc. was conceived in shenzhen in the year of 1993 and its headquarter was established in beijing in 1994. the companys primary line of business is the design and manufacture of bangbi feeder-bottle for exporting in american market. nowadays, as the microwave oven and other modern cookers widely used in family, the traditional bangbi feeder-bottle was less popular with oversea customers, especially less attractive for young mothers who are very busy and request for more convenient feeder bottles. in order to increase the sales revenue, based on industry analysis and customers needs and wants analysis, it is necessary to update the exist baby bottle to a new type one equipped with a temperature indicating device-bangbi safe bottle and take place the health material-silica gel to pc material. also a well designed promotion plan is help for bangbi safe bottle to be more acceptable in baby bottle consumers. it is hypothesized that the projected revenues will reach approximately $1.7 million with a gross margin of 58 percent and net income of approximately $196,000.this project starts from june of year 2009 and lasts until may of year 2010, which is divided into three parts: first, with careful swot analysis and customers needs & wants analysis including questionnaires, this paper offers a practice plan with the purpose to make the bangbi safe bottle accepted in american family. it is expected that the unique attribute of bangbi safte bottle will appeal to the majority of baby bottle consumers and by the end of five year, the company to reach 8 percent of the american baby bottle market. second, a well designed plan will help to reach the object and real-time monitoring system is applied during the whole project in order to secure the successful implementation. finally, we have to value the project after the implementation and do necessary adjustment. according to the result of the project, it is clear see the revenue and market share increase by updating the product. therefore, t we can say the objective of this project is fulfilled successfully and the plan is effective. this success of this project is not only rise the market share and revenue of bangbi company but also adjust the whole industry by product updating. it is a new creation as baby bottle equipped with temperature sensitive spring and made of silica gel material, which will enhance more creation in baby bottle field. key words: baby bottle; revenue; market share; product updating table of contentspages1. project introduction 8-92. project problem identification and analysis9-12 2.1 problem identification9 2.2 problem analysis9-123. project objective and hypothesis12 3.1 project objective12 3.2 project hypothesis124. project rationale12-14 4.1 product updating 12-13 4.2 how can we update the product?144.3 how can we design this project?14-155. project design 15-17 5.1 planning15 5.2 cost ( see appendix 2)16 5.3 risk analysis and control16-176. project implementation17-22 6.1 period 17 6.2 each stage of the implementation 17-19 6.2.1 research and design 19-206.2.2 manufacturing and operation206.2.3 pricing 206.2.4 sales20-216.3 feedback analysis 21-227. results and discussion22-24 7.1 results22-23 7.2 discussion 23-248. conclusion25-26bibliography27appendix 1. activity flow chart28appendix 2. the cost for the whole project29appendix 3. questionnaires29-30increasing sales revenue by updating bangbi baby bottle1. introduction bangbi, inc. ( the company)was conceived in shenzhen in the year of 1993 and its headquarter was established in beijing in 1994. the companys primary line of business is the design and manufacture of bangbi feeder-bottle for exporting in american market. with over 10 years development in american market, bangbi baby bottle has been sold in various big super markets and owns nearly 5-10% market share. the highest record of sales revenue reached approximately 2,800,000usd with ranking top 10 among 56 baby bottle companies in america. nowadays, as the microwave oven and other modern cookers widely used in family, the traditional bangbi feeder-bottle was less popular with oversea customers, especially less attractive for young mothers who are very busy and request for more convenient and easy use feeder bottles. the sales revenue dramatically reduce from the first quarter of 2009 and the lowest monthly sales only 20,000 suites of baby bottle compared with highest monthly sales amount 100,000,000 suites. as the manager responsible for the whole american market, i have the obligation to monitor the market carefully including check the sales and revenue situation, get the first sight information from market and get ready to do any necessary adjustment through collaboration with all members of the whole team. based on industry analysis, customer needs and wants analysis and swot analysis, it is believed that an excellent opportunity exists for the sale of the bangbi safe bottle with its unique design and high quality if only the entry and growth strategy is fixed. at the same time, overall marketing strategy, pricing, sales tactics and warranty policies are also help for bangbi safe bottle stand in market. all the activities are for revenue increase and more market share. whats more, product improvement also helps to upgrade the whole baby bottle industry since baby bottle equipped with temperature sensitive spring is an advanced technique and the application of silicon gel material is fashion and popular with customers because of its health and poison-free characteristics. this paper will detailed the plan and implementation2. problem identification and analysis2.1 problem identificationthe problem is that the tradition feeder-bottle is less popular in consumer because it cannot heat in microwave and other electrical cooker and the material is plastic that is considered harm for health. this situation directly effects that the sales revenue dramatically reduces from the first quarter of 2009 and the lowest monthly sales only 20,000 suites of baby bottle compared with highest monthly sales amount 100,000,000 suites, which is badly hurt companys benefit. 2.2 problem analysis2.2.1 the companys current situationfinance situationfixed cost for the company is low as the existed product is manufactured by plastics manufacturers and shipped directly to the retailers. currently the cash flow of this company is not in good circle because the sales is hold human resourceinitially, except for the owner of the company mr. luo cheng, there were only two employee at bangbi copmany as management team. as business developing, the company was enlarged with over 500 workers, a management team of 20 persons and a r&d team of 5 persons.in order to fulfill this project, the r&d team and management team has devoted their efforts into this project and will continue make their great efforts to it. furthermore, we will offer 10 internship positions to do the customer questionnaire and project feedback work. during the back by the unattractive product. the company is in the process of raising seed capital to finance further operation. it is evaluated that 2 million dollars are necessary for new round project, financial department will supply necessary capital and make real-time statements. product the existed baby bottle produce by bangbi is common plastics and reusable one but could not used in microwave oven. during the past two years, bangbi has tried to refined its original design in an attempt to produce a baby bottle that would allow the temperature of an internal liquid to be read visually on the outside of the bottle. due to the nature of the product, many design requirements and constraints existed which had to be addressed:1) all components must be non-toxic2) the assembled product must be suitable for use in a microwave oven3) the temperature indicator must be reliable, accurate and easy to read4) the temperature indicator must have consistent repeatability5) the assembled product must be suitable for use in boiling water6) the entire product must be dishwasher safe and 7) the addition of the temperature indicator must not prohibitively increase the bottle cost.except for the first requirement, current product has been found not to meet the rest of the design requirements and constraints. 2.2.3 customersthe average customers buying a baby bottle product is a female in her late twenties who is, or will be again, employed outside the home. the median family income of the typical baby bottle customer is 36,120. because the majority of customers of baby bottles work outside the home, time and convenience is heating bottle accurately are of the essence.2.2.4 swot analysisa swot analysis is an analytical tool that can help you work through all the information you have about your business. overall consideration, we use this analysis to highlight the information based on the results of situation analysis and needs analysis.strengthweaknessl bangbi company has good reputation with supply well design and good quality product in american market. l bangbi company has many years experience in baby bottle production and sales. over more than decade development, company is sensitive in any marketing changel bangbi has professional researchers and well trained workers.l the work group of bangbi has great motivation to increase the company revenue as they will get desirable payment.l financial problem without enough money to support the research and produciton l copyright application is not easyopportunitythreatsl no other baby bottle manufacturer is producing a bottle that indicates the temperature of the liquid inside.l based on market research, there is a demand for a baby bottle that can indicate the temperature of its contentsl more baby bottles today are heated in microwave ovens rather than in a pot of boiling water. heating in a microwave oven leads to an uneven distribution of temperature of the contents in the bottle. the bangbi s safe bottle design measures the temperature throughout the contents, providing an accurate reading.l the use microwaves in heating baby bottles has increased because of the convenience and time savings to the consumer. the bangbis safe bottle allows the consumer to heat the bottle quickly with the “ peace of mind” that the temperature of the contents is correct. l technical risk the only critical point remaining fro the manufacture of the bangbi safe bottle involves the change from a cold rolled spring to an injection-molded spring. the dynamics of all solids are such that upon heating they expand, therefore the prince that leads to the spings growth should not falter. plastics have been used years in dishwashers, microwaves and for food storage as they are safe and dependable. the property of thermal expansion simply has not been tested on a tested on an injection-molded spring. at least there is no published data, which can be found. plastics containers are used for heating in microwaves and time and time again return to the original size without distortion. the repeated heating and cooling has not shown to have a degradable effect on food storage containers through thousands of cycles. therefore, this principle of repeatability should transfer to the spring. since testing of a spring heated and cooling in various liquids has not been performed.l market risk other companies may copy bangbis design and sale the same product before bangbi put the updated product into market. thus it will deeply hurt bangbis efforts. after the above analysis, we believed that the product upgraded with temperature sensitive equipment and use silicon gel material will greatly attract more customers and increase the revenue and market share. 3. project objective and hypothesis3.1 project objective it is expected to increase the sales of bangbi baby feeder bottle with the sale revenue increase by 23% and the market share reaches 8% in year 2010, which is 2% up compared with year 2009. 3.2 hypothesis it is hypothesized if the product updating based on temperature sensitive equipment and using free-polycarbonate material can be successful, the customers will increase and the market share will expand to 8%. the projected revenues will reach approximately $1.7 million with a gross margin of 58 percent and net income of approximately $196,000.4. project rationalethis paper has consulted a number of relevant literature and works in order to support the planning and implementation of my project. 4.1 product updating 4.1.1. competition and competitive advantagealthough there are several major competitors in the baby bottle industry, only one other company has attempted to market a temperature sensitive baby bottle. bangbi bottling manufactured such a product under the trade name heat sensitive and later comfort temp. this product was being produced and marketed when the current owners, according to mr. luo chen, presidnet of bangbi bottling, purchased the company. the bottle bangbi designed neglected one major fact of baby bottle usage; sometimes bottles are heated from the outside in ( boiling water) and sometimes from the inside out ( microwave). their design simply used the bottles surface plastic to indicate the temperature. an opaque blue or pink plastic would turn white when the contents were too hot. this neglected the fact that microwaves heat from the center so only after the bottle was shaken would it provide an accurate indication. due to its inaccurate operation, it was withdrawn from the market. despite their disappointing results, bangbis efforts confirmed that based on market surveys, there is market for a bottle with a temperature sensor ( business trend, 2010, bibliography 3). in addition, other companies felt their lack of success was the result of a design flaw and not a lack of market. this is the competitive advantage for bangbi bottle if it can overcome this shortcoming in its design of the temperature indicator device. roughly 95% of all baby bottles currently on the market are made from polycarbonate plastic (marked pc with the number 7 in a recycling symbol). trainer cups with spouts or straws and tableware may also be made from it. this plastic contains the chemical bisphenol a which is known to mimic the oestrogen hormone.(1) it is feared that bisphenol a may be partly responsible for the decline in sperm counts and increased rates of hormone-related cancers such as cancers of the breast, testes and prostate. (2) studies have shown that bisphenol a leaches into the contents of containers, particularly when they are scratched or heated. the levels leached are very low compared with the eus tolerable daily intake, but many parents may feel that it is best to adopt the precautionary principle and avoid the risk, however small.(bisphenol a - a known endocrine disruptor, wwf, april 2000 ).4.1.2 estimated market share and salesaccording to market information provided by richard henry, vice president of sales for munchkin bottling company, a leading manufacturer of specialty baby bottles, a manufacturer introducing “just another decorated bottle” without any key features or benefits over current bottles could be expected to capture one to two percent of the total market in the first year of operation. this market share would probably remain tat two percent during subsequent years. munchkinss market data also indicates that if a company produced a product with significant features or graphics as compared to existing decorated bottles, the company could expect to attain six percent of the market in the first year. that share could grow at 30 percent per ear over subsequent years. to achieve these results, however, the product would have to be unique and special. to present conservative projected pro financial statements, bangbi safe bottle has assumed that the company will earn two percent and four percent the total reusable market in the first and second year of operations. a growth rate of 30 percent per year was assumed for year s there through five. 4.2 how can we update the product?except consulting with experts in product design, i have worked with our r&d team to find the best way to adjust the existed baby bottle. as the very simply design utilizes only three components: the spring, the stem and the cap. the bangbi baby bottle is designed to provide and indication of the temperature of bottle co