5. At the end of every calendar year, surveys in various parts of Xiamen will be taken to find out the average number of people who know about our water purification system.
6. To have a manufacturing plant in Xiamen by end of Year 5, so as to cut cost in transporting these products to Xiamen.
7.
8. Since water that are being dispense out from the taps in China are mostly not fit for drinking, the families might not treat the issue of having a clean drinking water at homes seriously, as According to the 2007 OECD Environmental Protection Report: China, which is a survey done nation-wide on drinking water and water borne diseases, in 2006 the water standard in most of China’s major cities did not meet state drinking water standards (Wilson Center). The number of people who die of water borne diseases in china has been increasing over the years (Wilson Center). Hence with the installation of water purification, these problems will not be a problem to the families, as the purpose of a water purification system is to have a clean drinking water.
10. A water purifier is convenient as one can immediately obtain clean and cool water once the tap is turned on. Time need not be spent on boiling the tap water and one need not worry about not having enough bottled water or space to keep the bottled water in the house.
11. If families were to have a better financial planning, a water purification system would be advisable, as it will be must cheaper in comparison with buying of bottled water frequently. It will be much more environmentally friendly as it exclude the usage of LPG gas, which in the case of obtaining clean drinking water through boiling water daily, will involves heavy usage of LPG gas, which in turn will be costly.
13. After the purification process from the diamond filtering system, it not only provide clean drinking water for the family members, but it also gives the water additional benefits that is essential for the human body. Examples would be; it will be absorbed easily by our body to enhance metabolism, Effective in cleansing impurities and toxins from our body, etc.
16. We will attract customers by having an opening promotion for the first 10 customers to purchase the purification system, they will enjoy 30 percent discount, free installation. By limiting to 10 customers, we will not incur that much addition expense.
18. Our seasonal promotions would be according to the seasonal changes in Xiamen. During summer period, which is between April to mid June, the weather would be very hot and dry, hence we would want to encourage more people to drink clean water. They will get to enjoy a 20 percent discount on the purchase on any Diamond products during this period.
20. There could also be road-show showing the benefits of purified water as compared to other methods of obtaining water. The public would be allowed to try the water that is purified as well as witness the purification process. During the road-show, special water purifier packages can be promoted and sold to encourage the Chinese to buy the water purifier at a cheaper rate.
22. These would be given out at hotspots such as SM Mall, Zhong Shan Lu (中山路) and Fu Wang Bang (福王邦). Famous streets and shopping mall in Xiamen to the tourist and also to the locals. This would allow our name to spread among the locals as well as the foreigners.
24. In order to increase the usage of water purifiers, there should be more advertisements promoting the benefits of water purifiers. For example, there could be television advertisement promoting the use and benefits of water purification. Another example can be having huge billboards on the roads that could help to advertise water purifying products and its benefits. This would help raise the awareness about the strengths of water purifiers and in turn it could increase the number of people who would buy water purifiers.
26. To be able to keep in touch with our customers, we will request for our customers leaving behind their business cards, emails or contacting number so that we can inform them about our upcoming promotions or special discounts that we will have.
29. Our prices will be affordable. This will make us competitive yet profitable at the same time. Our selling price will be about 130% of the cost price (refer to REF _Ref258674731 MERGEFORMAT Error! Reference source not found.). Compared to the other purification system in Xiamen, it is steeper but, comparing to the health benefits, it is definitely worth paying for. The price would be at RMB4153.24
31. In order to make our product attractive to the customers, we offered them a instalment package without interest so that, families that could not afford the product by paying the price at one go could still buy the product through a 12 month or 18 month instalment programme.
32. PlaceThe first step would be the setting up of a retailer shop in Xiamen for sales of Diamond water purifier. This is to ensure minimal transportation cost is incurred. Furthermore, the fact that Xiamen is located near the sea port would make transportation of good via seaway easier and less costly. In addition, this would make it more convenient for the people living in Xiamen to have access to Diamond water purifiers as the retailer shop would be centrally located in Xiamen. In the long run, a manufacturing plant would be set up in Xiamen itself. This is to ensure smooth production and fully utilized of resources. Also, production cost would be reduced and profit would increase. Our recommended place would be a store in SM mall which is one of the biggest and popular shopping mall in Xiamen; hence this would be a great opportunity to gain recognition by the people of Xiamen<br /> Budget<br />Start up costs<br />(Refer to REF _Ref258753052 Error! Reference source not found.)<br />Running costs<br />(Refer to REF _Ref258753081 <br />Appendix )<br />Appendix<br />Appendix 1<br />High benefitsLow benefitsLow priceHigh priceDiamond WaterXiamen Hawkeyed RO Water Purifier Amway.OuWeishi HRO-N50F<br />Appendix 2<br />Appendix 4<br />Breakeven analysis<br />Our selling price would be a mark-up totalling to a 30% increase on the cost price of the diamond water purification system of RMB 3775.6731. This is RMB 4719.59 <br />Start-up and Monthly expense cost up to a year would be: RMB 119200<br />Hence we must sell 127 units of purifiers to breakeven<br />Appendix 5<br />Selection of location<br />AccessibilityRentalSpaceTotal20%40%40%100%Fu Wang Bang (福王邦)6475.6Zhong Shan Lu (中山路)8566SM Mall7777<br />(1 being least favourable, 10 being most favourable)<br />Highest Score: 7Selected Location: SM mall<br />Appendix 6<br />Start-up cost (RMB)<br />ItemCost (¥)Salaries5,900Total Rental Cost10,000Shipment2,500Total:18,400<br />Appendix 1<br />Running cost per month (RMB)<br />ItemCost (¥)Salaries5,900Utilities2,500Total:8,400<br />Bibliography BIBLIOGRAPHY China Market Entry, China Business Consulting. (2009). Retrieved April 9, 2010, from JyS China Business Service: http://jyschinabusiness.com/news/china-business-strategy-consulting-market-entry.htmlChina's Food & Beverage Industry Study in 2006. (2005, December 6). Retrieved April 9, 2010, from Market Research: http://www.marketresearch.com/product/display.asp?productid=1271223Xiamen Company Registration, Xiamen Investment Guide, Tannet Xiamen Business Setup. (1999). Retrieved April 10, 2010, from Tannet Consulting Limited (Xiamen): http://www.xiamen-company.net/Wilson Center. (n.d.). Retrieved July 01, 2010, from Wilson Center:http://www.wilsoncenter.org/index.cfm?topic_id=1421&fuseaction=topics.item&news_id=272856Wilson Center. (n.d.). Retrieved July 01, 2010, from Wilson Center:http://www.wilsoncenter.org/index.cfm?topic_id=1421&fuseaction=topics.item&news_id=272856Diamond Water. (n.d). Retrieved July 01, 2010, from Diamond Water:http://www.diamondwaterweb.com/products_dew_features.html#compareAmway purifiers. (n.d). Retrieved July 02, 2010, from Amazon.com:http://www.amazon.com/eSpring®-Purifier-Countertop-treatment-Filtration/dp/B0039AY52W/ref=sr_1_2?ie=UTF8&s=home-garden&qid=1278604663&sr=1-2Diamond Product Price. (n.d) Retrieved July 02, 2010, from Lelong.com.my:http://www.lelong.com.my/Auc/Archive/DetailStd.asp?When=2009-06&ProductID=36255414<br />