BUSINESS REPORT

Business Report

Business Report

Introduction

Technology advancement has increased the standard of life. Advancement in the marine leisure industry not only fulfills the need of consumers but also provide them satisfaction. Seeing the orientation of consumers towards highly specialized yachts, Far horizon is intending to introduce 4 to 6 berth sea-going sailing yacht that will be marketed under the brand name of “Horizon Deluxe Yacht” that is a powerful piece of hardware providing the cutting edge to more experienced yachtsmen. Innovation in technology requires greater investment to develop a new product (Ferris, 2010). Therefore, risk of new entrants is very low due to the development phase that has to be done to launch deep water sailing mid-size yachts.

The Product

“Horizon Deluxe Yacht” developed by Far Horizon is differentiated from other major yachts currently present in the market. Main features of this sailing yacht are as follows:

Cruising speed: 16 knots

Maximum speed: 28 knots

Length: 59.82 feet

Beam: 8.11 feet

Width: 12.65 feet

Fuel capacity: 2,000 liters

Maximum Range: 2,000 nm range

Engine Capacity: 2250 horsepower Caterpillar 3674B DITA SCAC diesel engines

Capacity: 12 persons

Berth: 4 to 6 depending upon product type

Upper deck and main deck contains numerous lounges and dining areas

Lower deck contains king size 4 to 6 berths, kitchen, and two bathroom

These features fully support the mission of giving convenience to one's life in marine leisure industry (Ferris, 2010). Therefore, Far Horizon has invented this medium sized yacht to provide multiple features in addition to serving sailing needs of experienced yachtsmen. This medium sized yacht will enable yachtsmen to have flexibility in their live while keeping everything they need in one product for deep sailing. Currently, many alternatives to Horizon Deluxe Yacht are present in the market enhancing the bargaining power of buyers. Presence of competitive products, although not similar to Horizon Deluxe Yacht, increases the potential bargaining power of consumers because if Horizon Deluxe Yacht is priced high, consequently potential customers will switch to other substitute brands (Slater, 2009). Bargaining power of suppliers is comparatively high for Horizon Deluxe Yacht, if they refuse to provide components, and then production of Horizon Deluxe Yacht can be affected greatly. It is necessary to adjust the prices and enter into long-term contract with new suppliers to ensure the legitimacy of channel and sustain suppliers for longer-term.

Consumer Product Classification

“Horizon Deluxe Yacht” will be classified as high involvement product in deep water sailing yacht industry. Horizon Deluxe Yacht is an automobile product for deep water sailing and people make considerable evaluation when purchasing such kinds of products (Slater, 2009). However, Horizon Deluxe Yacht will be classified as a heterogeneous product based on its product offering.

Target Market Analysis

Segmentation approach will be used to reach targeted customers. Main target market for Horizon Deluxe Yacht is experienced yachtsmen who are more oriented towards deep water sailing. Mid-age person and people between the ages of 30-60 years will be targeted. In addition to that, female age between 28-50 years will also be targeted who like to deep water sailing and are involved in marine ...