Individual advice to a investor

Individual advice to a investor

Identification of an opportunity is the first step towards making an investment in any field present in the market. But identifying an opportunity is not the last step but just the beginning. To venture into the opportunity, there are several requirements that one is supposed to put into consideration, such as capital availability, availability of the raw material required in the production process, availability of the other factors of production like labor and land. Skills are also essential to ensure that the Product produced can withstand products from other competitor companies. For the business to operate in a particular location, the investor is also supposed to comply with the government regulations.

To produce the hot cup in the current market, it will be important to consider what the customer preference is and what they would like to be improved. Before producing the hot cup, the inventor should make the following considerations.

What value innovations does the ‘Hot Cup’ offer?

The hot cup production is intended to allow the consumers to enjoy some warm coffee despite the time of the day they wish to take it. The coffee cup is designed through the latest technology, where it is capable of maintaining the coffee temperature for the whole day without reheating it before consumption.

Before starting the production process of the hot cup, the inventor is supposed to identify clearly the purpose the cup is going to serve better than what the currents products in the market have done. Starting the production process without a clear purpose will minimize the chances of the consumers preferring the Product. The purpose of producing the hot cup should add some value to what is already available in the market.

In the purpose, the hot cup should identify the group of people they are targeting and the situations that it is likely to be used. Having a target market for the hot cup will help in evaluating the number of people using the current Product, which seems not to satisfy the needs of the customers fully. Identification of the target market will also help in establishing their class in society, which will help in setting the prices of the Product.

After the purpose is clearly identified, the investor should think about the source of funds immediately. The funds to start the production can be from the inventors saving, from a loan, a contribution from friends/partners, and also might be from the donors. Source of funds is one of the factors that the business cannot do without.

What do you advise the inventor to do regarding production and operations, including what key partners she should be seeking?

Being an innovation that has not been applied in the production of the current products in the market, it is likely to attract quite a number of partners to work together both in the production process as well as the marketing. The inventor of the hot cup should ensure that the method used in production is not very costly. This will enable the final Product to be sold at a moderate price that the customers can afford comfortably. A friendly price will also enable the Product to compete effectively in the market with the products from other competitors.

The operations involved during and after the production process should also consider all the aspects such as the welfare of the employees and environmental conservation rules present in the area of operation. The operations of the company that will be involved in production should engage in a fair competition practice where they have to adhere to the rules and regulations set aside. The rule of law from the local and national authorities should be put into consideration to ensure that their license remains in operation for the whole process.

Most of the time, the investors usually look at a company that is producing its products through the right procedures, is producing products that impact the daily operations of the consumers. The partners also intend to boost the company financially by providing some funds. The partners also in most of the time, they usually seek to work with a company that is involving innovation of a high level to ensure that they keep their reputation in place by being associated with quality products.

An intellectual property protection plan for the new venture, with special attention to brand names, trademarks, and design registration

Every company has an outlined plan of how to protect their business secrets from being in position to the hands of their competitor. As a new venture, the company will require a protection plan to enclose its business secrets from the outside world. Even before the company starts its operations, it should have a brand name that is different from any other company. The name of the company should only be disclosed after the production process starts. To maintain this secret, the company is supposed only to disclose the name to the top management. To do these, there are two main ways that it can be achieved, which are; seeking some legal protection liking suing those who try to use a similar brand name as yours and keeping the business secrets within the business premises.

The new business venture is also supposed to protect their trademark by registering their companies according to the requirements by the law. This is to ensure that your company is registered somewhere else within the borders of the company or in the global market. The secrets of the business do mean not only the brand name but also the technical details used in the production process. Keeping the business secrets will ensure the company to produce a unique product without any duplicate in the market and also to make productions at a low cost. It also ensures that the competitor companies do not get any detail about your production process to match it.

The following are some policies that can be put in place to prevent the business secrets of the company; making the employee to sign confidential agreements, maintaining tight security through passwords to entry of the company sites, minimizing the entry of visitors into the production room, dividing the production process into every stage where you reveal the secrets to individuals in charge of this stages based on the ‘need to know’ basis.

Recommendation for the marketing mix variables

The marketing mix is defined as a set of tactics or actions that are used by a company in promoting its product brand in the market. The marketing mix is made up of the 4ps, which stand for Product, promotion, place, and price. It will be important for the new company to be keen on the marketing mix to ensure an increase in sales. Below is a description of how the 4ps should be effectively applied in the hot cup production.

Price; this is the value that is usually attached to a product. The company should reduce the production cost of the hot cups and also cut the operation cost such as the transport and branding cost to ensure that the prices quoted for their products are affordable by the targeted customers.

Product; this is the item being presented to customers for sale. The critical requirement that the Product should meet is maximum satisfaction to the consumers buy performing according to the consumers’ expectations. The hot-cups should be produced using high innovation to ensure that it meets all the demands of the customers.

Place; this refers to a point where the Product is presented for sale. This is one of the factors that are capable of determining the success of a product in the market. After the production of the hot cup, they should be presented in a place that is eye-catching to the consumer to ensure that they have a good view before purchasing.

Promotion; this refers to any initiative taken by the producer of a product to make it known to the consumers. It includes activities such as advertising, free samples, and giving commissions. The hot cups should be promoted in different methods according to the customers being targeted. The company might make adverts in social media to reach a large scope because it is currently the easiest way to communicate in the recent world.

What steps should the inventor take to obtain a sustainable competitive advantage for this business?

Sustainable competitive advantage is the force that gives a business an upper hand in the market as compared to the other similar businesses. Being a new business in the market that is producing an improved product from the one that is available in the market, there must be steps to be followed to achieve this objective.  Below some of the steps;

1. Understand the target market of your Product- this will enable the company to avoid wastage producing products that do not match their target customers.
2. Understand what the customers really want about the Product, such as size, shape, and color.
3. Provide products at an affordable price to the customers because most of the films in the market compete in terms of prices.
4. Produce goods based on your strengths to improve the quality of products and deal with the weaknesses of the company effectively.

New products that can apply the hot cup technology for heating or reheating purposes

The hot cup technology seems to be a new innovation in the market that intends to keep coffee hot all through the day. The same technology can be used to produce a food dish that keeps food hot throughout the day. It would be one of the best Products, especially the school children, for carrying some food to school instead of reheating.

The hot cup technology can also be used to produce flasks to be used in the offices to serve the employees with some hot tea at any time of the day. The flask would reduce the time; energy are resources such as power that are used in the reheating process.

Conclusion

The hot cup technology is an innovation that will lead to an outstanding product in the market if the right procedures are followed. The use of the marketing mix effectively will also play a major part in the success of the idea. But before the production process, the company will require to follow some procedures to ensure that they have some relevant information regarding the market of their target customers, such as their income and the jobs they hold. The hot cup production is an idea that is worth trying; it holds the weight to compete in the market effectively.