Commercial and Financial Implications of the Project
Marketing of the project will definitely entail disbursements on the part of the business entity as different materials and media will be used in order to promote the service. Hence, for purposes of determining the feasibility of the project, it will be important to take note of the financial implications of adding the program to the services being offered by the tyre shop to its customers. If the costs are too expensive and cannot be afforded by tyre shop, then regardless of the noble aim of the project, the same cannot easily be implemented.
On the contrary, if costs can be minimized, then the project can be fully implemented and put into use by the tyre shop or garage. In promoting the suggested service through the different modes of media and materials mentioned in chapter two, relevant factors would have to be considered such as: finding a printer and designer for posters and pamphlets, the number of materials to be produced, procuring the equipment to be used for purposes of the audio-visual presentation, who will be in charge of producing and editing the video presentation, and if there exists ample space in the garage where the video will be presented to customers.
The tyre shop can opt to put-up a viewing lounge or a waiting room for customers where they can also view the audio-visual presentation prepared by the tyre shop concerning the periodic tyre maintenance program. This is a good idea especially if the tyre shop would want to avoid a crowded-looking shop. In this manner, the customers viewing the video presentation will be contained in one room, causing them to focus on what is being presented to them.
For this purpose, customers waiting lounge should be made available or existing rooms within the shop could be renovated in order for the same to be transformed as the customer waiting lounge. It will also be wise to consider if additional manpower will have to be utilized for purposes of effectively promoting the service to be offered or if the employees of the tyre shop can perform these tasks. For the implementation of the program, people will be needed to distribute the pamphlets, situate the posters in different places, create the video presentation, and operate the equipment necessary for the showing of the video presentation.
It is suggested that costs will be minimized if the production of the promotion materials will be outsourced from other companies. For instance, in the design and production of the pamphlets and posters, it will be better for the tyre shop to engage the services of an enterprise that primarily engages in the design and production of said materials. In this way, the tyre shop will not only be cutting on costs but as well as time.
The tyre shop will be providing the capital for the production and as stated earlier and will also look into the possibility of obtaining sponsorship from its suppliers or others organizations. For purposes of spending for the setting up, marketing and implementation of the program, sponsorship deals may also be made with tyre manufacturers in order for the tyre shop to save on expenses. Sponsorship does not necessarily mean disbursement of funds on the part of the tyre shop especially if the shop has a good business relationship with the manufacturers or its suppliers.
They may simply offer to advertise the tyre brand in exchange of sponsorship that may be provided by the tyre manufacturers or suppliers. The services of a company engaged in designing posters and pamphlets would have to be engaged in order to make sure that said materials will efficiently market the program. In order to cut on costs, the same design will be used for both the pamphlet and the poster. The poster will just be a larger version of the pamphlet given away to the customer.
The tyre shop would also have to outsource when it comes to the production of the video presentation to ensure that the video would be something that the customers would find not only educational, but entertaining as well. As mentioned earlier, it is viewed that the best way to market the program is through the video presentation, and hence, it is imperative for the tyre shop to present a video that the customers will like. For this purpose, the production of the video will also be outsourced to a company which specializes in the production of audio-visual presentation.
As the tyre shop will incur a substantial amount of expenses for the production of the video, for the presentation of the same, the tyre shop would have to look for a reasonably-priced DVD Player in order to cut down on the costs. It is important to note that if the distribution of the pamphlets and the operation of the equipment to be used in the audio-visual presentation can be performed by employees of the tyre shop, then the same would also be more cost-efficient on the part of the tyre shop as it would no longer have to hire additional employees.
For purposes of determining the estimated costs for the marketing and implementation of the project, prevailing and average rates in the market have been looked into through inquiries to business enterprises engaged in the sale of the materials and services that will be needed by the tyre shop in the marketing and implementation of the program. In view of the foregoing, the following were estimated in terms of costing of the proposed project: The tyre shop will spend Fifty Dollars ($50) for the design of the pamphlets and posters.
Seventy Five Dollars ($75) will have to be spent for the production of One Hundred (100) pieces of pamphlets made out of durable paper material that will not easily tear or rupture. The production of the ten (10) posters, on the other hand, will cost the tyre shop Ten Dollars ($10). As regards the production of the 10 minutes audio-visual presentation, the tyre shop will spend Ten Thousand Dollars ($10,000). The minor renovation, if needed to the existing shop for purposes of having a viewing lounge cost the tyre shop One Thousand Eight Hundred Dollars ($1,800).
In presenting the video, DVD player will need to be purchased. In order to cut on costs, however, the tyre shop will have to settle with a good but reasonably-priced player, or one costing Two Hundred Dollars ($200). Anent the advertising through the Internet, the tyre shop will have to spend approximately Three Hundred Dollars ($300) for web design. This will have to be outsourced to an entity engaged in the business of designing web pages. The tyre shop will have to include all the relevant information that should be uploaded in the web site in order to properly inform its customers upon viewing the web page.
Additionally, the tyre shop may also opt to spend for web hosting in order for it to acquire a web page, and to register for a domain name in order for it to obtain a domain name that it may prefer. Web hosting normally costs around Ten Dollars ($10) while registration for domain name normally costs Forty Dollars ($40). It must be noted though that the tyre shop can dispense with web hosting and domain name registration as there are available sites on the internet that provide free web hosting. In this manner, the tyre shop will be able to save costs.