BUSINESS

Business Report Complementary Products

Business Report Complementary Products

Section A

Introduction

My business policy is to let my customers for trying different and stylish Fountain Pens which nib's sizes according their needs, in order to just provide them the right pen. A complementary product should be Fountain Pen Liquid Ink that flow with less pressure when you are writing and reduces the overall discomfort. A fountain pen is the considered as the most personal thing that being increases the extension the personality of a person. The courses has no longer one and with their expectation the few specialist shops existence in the London. The situation is quite difficult to sell the pens and ink that are being sold over internet or through the mail order because people do not have a chance towards the experience of usage these two complementary products. When the consumer is looking for the usage of fountain pen and ink, either occasionally or regular basis then the purpose for making this product is to making the point out to consider to making the more informed choice. My product will increase the quality and variety of the Fountain pen and looks very attractive in consumer eyes.

The main different that occurs in the fountain pen was reflecting towards the quality of nib and the quality of ink use in that pen. There are number of fountain pens brand available in market of London that includes Parker, Cross Edge, Ferrari Rosso Corsa, ST. Duopont Liberte Nude, Montegrappa Nero, Faber Castell, Cross Apogee, Pelikan ranging from pens worth from min £10 to £1000 (www.penfountain.co.uk).

While there are number of bottle ink also available in vast variety that involves Sheaffer Bottled Ink, Waterman Bottle Ink, Cross Cartridge, Cross Ink, Lamy Cartidge worth from £2.25 to £5.00 (www.jmpennifeather.co.uk).

Section B

Pricing Strategy

The products which is available in London market has nibs made with steel that is quite harder and less flexible which is not durable (www.londongraphics.co.uk). The £1000 pen might not write better than a £300 pen. There are different variety of branded fountain pens and ink available in London market worth from min £10 to £100 and £2.25 to £5.00. Our objective is to make our product best usage for high school students because usage of fountain pen is mostly over there. Pricing strategy for Fountain pen and Ink should be low as much possible, ranging £10.00 and £3.00 so our consumer will not hesitated to buy this product.

Sales Forecast

At initial level, the first will be used for setting up the manufacturing plant. There will be no sales at that duration and the revenue will be start to occur from the second period however the it will take around 6month time period to run business operation smoothly. There are the five year plan for both the complementary products are given that describe where we would stand after spent five year in this business.

Per Unit Cost

The budget has assumed for the 60,000 Units of the Fountain Pens will be produced annually.

There are the following standard costs per unit ...