Basis For Interest Paper – Week Six Your Name Here Keller

Basis For Interest Paper – Week Six Your Name Here Keller University

Use the following outline on all course project papers. · Recommendation Overview - 15 points · This section summarizes who, what, where, when, why, and maybe how; it explains the purpose of the project. · The product concept should be spelled out very clearly. · Basis for the Recommendation - 45 points · This provides your rationale as to why the company should pursue this product. · You will need at least 3-5 solid reasons to support your idea, including the following: · What is the customer need? · What is the customer benefit(s)? · What is the customer value? · What is the size of the opportunity? · Why will the customer buy? · Strategic Fit - 25 points · Does this concept fit the corporate strategy, business unit product line? Why? · Forecast - 20 points · Consider the revenue and unit estimates (5 years). · Consider the cost estimate, effects of learning curve. · Consider the capital requirement (ROI based on 10-year life). · Project Plan - 25 points · What is required to get this concept developed and tested? · Consider timing issues and potential roadblocks. · Writing Quality - 10 points · Citations and References - 10 points · For all sources, please cite in text and include a reference page. · Category Points % Description Documentation and Formatting % A quality paper will include a title page, an abstract, proper citations, and a reference page. Organization and Cohesiveness % A quality paper will include an introduction that is based upon a well-formed thesis statement. The logical order of the content will be derived from the thesis statement. The content will be properly subdivided into sections derived from the outline. In a quality paper, the conclusion will summarize the previously presented content, and it will complement the thesis statement from the introduction. Editing % A quality paper will be free of any spelling, punctuation, or grammatical errors. Sentences and paragraphs will be clear, concise, and factually correct. Content % A quality paper will have significant scope and depth of research to support any statements. Relevant illustrations or examples are encouraged. A quality paper will employ sound use of reasoning and logic to reinforce conclusions. Total % A quality paper will meet or exceed all of the above requirements. Grading Rubrics the following are best practices in preparing this paper. · The paper should be a maximum of five pages, not including the cover page or appendix. (Yes, only five pages!) Due to the short length of the paper, you must be pointed and precise in your comments. Pictures, charts, and graphs may be helpful, but should be included in an appendix supporting your document. You must tightly focus your thinking in this limited space. Get to your point and recommendations quickly. Any writing past the fifth page will not count for grading. The paper must contain one and one-half space, 1.5 inch margins, and 12-point type using Times New Roman. · You must put your name, class, instructor, date, and a subject title on the cover page of your paper. Use the topics in the requirements outline as subheadings for clarity. · Cover page: Include who you prepared the paper for, who prepared it, and the date. · Table of contents: List the headings. (The table of contents is basically the Course Project outline.)

Paper For Above instruction

The assignment entails preparing a comprehensive Basis for Interest (BFI) document for a new product concept. This document is a strategic tool used to secure management approval for further development stages of a proposed product. The process involves delineating the product idea clearly, analyzing the market opportunity, aligning the concept with corporate strategy, and projecting financial viability. The BFI must convincingly demonstrate the potential success of the product by providing detailed reasoning and data analysis, ultimately persuading senior management to allocate necessary resources for development.

Introduction

The foundation of this report begins with a clear articulation of the product concept. In this section, I introduce the product idea—detailing what it is, its features, variations, and the consumer choices involved. Additionally, the purpose of this project is to obtain management approval by presenting a well-grounded analysis of market potential, financial forecasts, and strategic alignment. Crucially, the introduction sets the tone, guiding the reader through the subsequent detailed sections.

Recommendation Overview

The recommendation overview succinctly encapsulates the essence of the product concept, the targeted consumer segment, and the strategic objective behind pursuing this product. For example, the proposed product is a sustainable, eco-friendly water bottle designed for active urban consumers aged 18-35 with mid to high income levels. The purpose of the project is to tap into the growing demand for environmentally conscious products, thereby expanding the company’s market share in the hydration category. The product will be available through major retail channels and online platforms, emphasizing convenience and brand visibility.

Product Concept Description

This section briefly describes the product physically—detailing materials, design features, available colors, sizes, and any optional modifications. The water bottle is made from BPA-free, biodegradable materials, featuring a leak-proof lid, ergonomic design, and available in three color options: blue, green, and black. It comes in two sizes—500 ml and 750 ml—to cater to different user preferences. Variants may include additional features such as a built-in filter or insulation for hot beverages.

Pricing, Promotion, & Placement Concept Description

The pricing strategy positions the product at a competitive premium level with an estimated retail price of $15 for the 500 ml and $20 for the 750 ml bottles. Promotion efforts will leverage social media campaigns, influencer partnerships, and in-store displays to target environmentally conscious urban consumers. Distribution channels will include major retail outlets such as sporting goods stores and department stores, as well as e-commerce platforms for direct sales.

Target Market

The targeted consumer segment comprises environmentally conscious, active individuals aged 18-35, predominantly residing in urban areas with incomes ranging from $40,000 to $80,000 annually. Psychographics include a focus on health, sustainability, and convenience. The targeted market size in this segment is estimated at approximately 10 million potential buyers within the United States, representing a significant growth opportunity given current trends in eco-friendly consumer products.

Basis for the Recommendation

The rationale for pursuing this product rests on multiple factors:

• The rising consumer demand for sustainable and eco-friendly products aligns with current societal trends and regulatory pressures.
• The product offers clear benefits such as reducing plastic waste and promoting healthier lifestyles, creating strong customer value propositions.
• The opportunity size is substantial, with potential sales volumes in the millions annually, backed by market growth statistics in the eco-conscious segment.
• Customers are motivated to buy due to environmental concerns, convenience, and brand alignment with sustainability principles.
• Strategically, this product complements the company's existing portfolio of health and wellness products, strengthening brand positioning and market share.

Company Background & Strategic Fit

The company behind this product is a well-established manufacturer of consumer health goods, with a reputation for innovation and quality. This is an existing company expanding its product portfolio into sustainable hydration solutions. The product aligns with the corporate strategy of promoting environmental sustainability and catering to health-conscious consumers. Its development supports the company's mission to lead in eco-friendly consumer products and enhances its competitive positioning in the marketplace.

Forecast - Revenue & Unit Estimates

Projected sales over a five-year horizon forecast consistent growth in unit sales, with 1 million units in the first year, increasing by 25% annually due to effective marketing and distribution expansion. Revenue estimates are based on unit price multipliers, with detailed tables illustrating sales volume, unit costs, gross revenue, and profit margins. Capital requirements include manufacturing setup, marketing campaigns, and distribution logistics, with an expected ROI based on a 10-year product lifecycle. Initial capital investment is projected at $5 million, with a break-even point anticipated within the first two years of operation.

Development Plan

Development efforts involve product design refinement, supplier qualification, prototype testing, and certification processes. Estimated timeline from concept approval to market launch is approximately 12-18 months, considering design iterations, testing, and clearance. Potential roadblocks include supply chain disruptions, regulatory hurdles, and consumer acceptance risks. A contingency plan involves establishing multiple supplier relationships, phased testing, and flexible production capabilities to mitigate these risks.

Conclusion

This paper demonstrates the strategic, financial, and operational viability of the eco-friendly water bottle. With strong market demand, aligned corporate strategy, and promising financial forecasts, pursuing this product offers a significant opportunity for the company to innovate sustainably and expand market share. Management is encouraged to approve further development based on the rationale and data provided, which collectively support a compelling case for investment in this concept.

References

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