MANUFACTURING RUBBER SOLED SHOES BUSINESS PLAN
Rubber will be our main raw material for the soles, it provides the much needed comfort and it is durable. The company will use innovative methods of designing, selling and attracting customers to buy Rubwear shoes. Rubwear will adopt interactive promotional strategies as a method to gain customer and sustain their loyalty. Quality, Location, and Facility Our company values quality and the method the company plans to use in ensuring quality of its products is Benchmarking and Total Quality Management (TQM). These methods are the most appropriate for the company since benchmarking will give us the opportunity to compare our environmental friendly products with those of our competitors and total quality management will enable us to maintain our competitiveness and we will be able to carry out research and improve the quality of our products.
Being the pioneers in manufacturing rubber soles, our competitive strategy will be to reach our target marketing by offering durable solutions for the demand of comfortable shoes. Rubwear has set its price slightly above those of average competitors because we want to create a perspective of our shoes being those of an upper class and of unique designs thus making our products prices win the market for us. We have set our prices above those of other competitors because of the special attention and work that goes into each pair of shoes and their ultimate designs. The company aims at creating a worldwide market with the customers being at the center of each design that the company comes up with. With the large pool of technicians and experts Rubwear will deliver quality, comfort, value and happiness to the entire world.
Rubber soles give the shoes a longer lifespan since they reduce the wear effect that the shoes experiences every single day. Rubber also protects shoes from elements such as salt, water, snow and ice which can destroy the common soles in no time thus rubber protects the sole from coming into contact with such elements. Rubber is relatively cheaper and hence it will reduce our cost of production and since the designs vary; the cost of production will vary according to the requirements of the clients. Quality Control To maintain and assure the customers of quality and durable products, customers will be given the Right the First Time Policy. This policy requires that the process of designing and producing each pair of shoe meets the best standards.
However, there is some deviation between the forecast and actual sales. Therefore, our forecast will be based on the actual sales figures. Table 1. 2 and graph 1. 3 shows what the forecast looks like. Of the three variables we hope that the demand will be close to the actual sales forecast since the forecast is not that accurate though it depends on itself to fix the minimal variations. Since our prices are higher, we do not expect the demand to be high in the opening year. However, the demand of shoes depends on fashion and we look forward to our products breaking into the market and receive positive responses from customers, this will assure us of increased demand. Operations Planning Being a start-up company we will be considering costs of operations and customer satisfaction.
To start the company we will need an inventory of about one tone of rubber and other materials. However, as our business will expand we will open up stores in other states to cater for more demands. We chose Detroit since this is US’s motor industry hub and thus giving us the direct clientele will need for our start-up business. Rubber which is the main raw material is also easily available in this state and thus it can be easily acquired. We are having our factory and stores close together since we do not want to spend a lot on transportation at the beginning our business. Further there are skilled shoe designers in Detroit hence making our labour requirements easy to meet.
Production will be done at our warehouse building which is also the manufacturing center. We begin by drawing the layout of each new shoe to be created. Once the shoes is drawn, specific material will be assembled and those that have to go into the manufacturing plant like sportswear will start the process before adding the finer details as required by clients. The designers will put together the ready shoes and their drawing and send them to the storage room awaiting delivery or for clients to come and fit them for confirmation. There will be an online store where customers can make their orders, inspect the final products and plan for delivery. The footwear industry is taking steps towards sustainability, The Guardian.
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