Table

of Contents
EXECUTIVE SUMMARY ................................................................................................................................ 4
INTRODUCTION .......................................................................................................................................... 6
STRATEGIC FRAMEWORK ........................................................................................................................... 6
PROBLEM STATEMENT ...................................................................................................................................... 6
OBJECTIVES ................................................................................................................................................... 6
RESEARCH QUESTION AND SUB-QUESTIONS .......................................................................................................... 7
TRADING NAME AND WORKING CAPITAL .............................................................................................................. 7
INTERNAL ANALYSIS ................................................................................................................................... 7
MISSION & VISION STATEMENTS ........................................................................................................................ 7
ORGANOGRAMS ............................................................................................................................................. 7
7S MODEL .................................................................................................................................................... 7
EXTERNAL ANALYSIS ................................................................................................................................... 8
DESTEP ANALYSIS .......................................................................................................................................... 8
CONSUMER ANALYSIS (6WS) ............................................................................................................................ 9
INDUSTRY ANALYSIS: PORTERS 5 FORCES ........................................................................................................... 10
INDUSTRY ANALYSIS: TRENDS ........................................................................................................................... 11
COMPETITOR ANALYSIS .................................................................................................................................. 11
SUPPLIERS ANALYSIS ..................................................................................................................................... 12
DISTRIBUTION ANALYSIS ................................................................................................................................. 13
SWOT ANALYSIS ....................................................................................................................................... 14
CONFRONTATION MATRIX ....................................................................................................................... 14
OPTION MATRIX ....................................................................................................................................... 15
MARKET RESEARCH AND PRODUCT .......................................................................................................... 15
STRATEGY OF CORE 9 ............................................................................................................................... 16
MARKET SEGMENTATION, TARGETING AND POSITIONING ....................................................................... 16
MARKETING MIX ...................................................................................................................................... 17
PURCHASE PLAN ....................................................................................................................................... 19
COMMUNICATION PLAN .......................................................................................................................... 21
SALES PLAN .............................................................................................................................................. 23
Page 2 of 41

FINANCIAL PLAN ................................................................................................................................... 26

LEGAL ASPECTS ......................................................................................................................................... 26
CONCLUSION ............................................................................................................................................ 28
BIBLIOGRAPHY ......................................................................................................................................... 30
APPENDICES ............................................................................................................................................. 32
APPENDIX I ORGANOGRAMS ............................................................................................................................ 32
APPENDIX II CORE 9S 7S MODEL ..................................................................................................................... 32
APPENDIX III SWOT ANALYSIS ........................................................................................................................ 33
APPENDIX IV CORE 9S CONFRONTATION MATRIX ................................................................................................ 35
APPENDIX V CORE 9S PRICE LIST ..................................................................................................................... 35
APPENDIX VI CORE 9S COMMUNICATION PLANNING ............................................................................................ 35
APPENDIX VII TREND ANALYSIS ........................................................................................................................ 36
APPENDIX VIII IN-DEPTH OPTION MATRIX ANALYSIS ............................................................................................. 37
APPENDIX IX CORE 9S MASTER BUDGET ........................................................................................................... 39

Table of Figures
TABLE 1: SWOT ANALYSIS OF CORE 9 ...................................................................................................................... 14
TABLE 5: CORE 9'S OPTION MATRIX ......................................................................................................................... 15
TABLE 7: THE LINK BETWEEN CORE 9'S TARGET AUDIENCE, THE MESSAGES AND COMMUNICATIONS MEANS ............................ 22
TABLE 8: CORE 9'S PRODUCT ORDERS ....................................................................................................................... 24
TABLE 9: SALES TIME PLANNING OF CORE 9 ............................................................................................................... 25
TABLE 6: FEASIBILITY OF OPTION 1 ........................................................................................................................... 37
TABLE 7: FEASIBILITY OF OPTION 2 ........................................................................................................................... 38
TABLE 8: FEASIBILITY OF OPTION 3 ........................................................................................................................... 39

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Executive Summary
Introduction
This business plan provides background information about the import enterprise Core9 as well as a
formal overview of the companys goals. Furthermore, it lays out a written plan from an internal as
well as external viewpoint and formulates a strategy on how to enter the Dutch market successfully.
In addition, the business plan provides marketing, financial and operational insight.
Core9 is an import enterprise which was founded by nine enthusiastic entrepreneurs. The company
imports and sells customized USB Power Card Drives (8GB) on the Dutch market. Due to the
customization of the product, two different target groups were identified; primarily medium sized
companies that are willing to invest in promotion and employee satisfaction but also life-style aware
individuals who want to make their everyday life more practical.
The organization established the following mission statement in order to assure that the encountered
problem which is to find the best possible way of fulfilling the customers needs: Core 9 encourages
sustainability and enhances the practicality of businesses and individuals in a way that is acceptable
to our stakeholders and in line with our core values. The emphasis will be on establishing excellent
customer relationships.

Internal Analysis and External Analysis

Internal as well as external analyses have been conducted to analyze the organizations internal
strengths/ weaknesses and identify external opportunities/ threats. Most importantly, Core9s shared
values are described; sustainability, practicality, attractiveness and reliability. In addition, legal
boundaries are pointed out and the strategic differentiation has been established - namely customer
intimacy. Furthermore, the industry analysis reveales that the organization faces a big threat of new
market entrants as there are barely any barriers. The competitor analysis confirmed the above
mentioned by identifying that Core9s main competitors within the Dutch market offer similar services
and prices. The supplier analysis focuses on the description of the competency, culture and costs of
the chosen supplier and explained the established ways of quality control and communication with
them. Lastly, it is explained that for the import from China, Delivery Duty Paid (DDP) incoterm will be
used and the shipping service chosen by Core9 is DHL.

Core Strategy
The main strategy of the organization focuses on the combination of the companys main asset
(customer intimacy) with the consumer trend for sustainability. Through the promotion of this strategy
th
Core9 aims to sell at least 500 USB Power Card Drives Cards, before May 27 2016.

STP
The STP analysis explains that geographically Core9 limits itself to the Dutch market with a focus on
greater Rotterdam Randstad. Demographically, not many limitations are made as the USB Power
Drive Card is a versatile product. Psychographically, the focus will lie upon sustainable clients that
identify themselves with Core9s mission.
Additionally, the analysis states that the import enterprise will promote itself as a student company,
wishing to bring practicality and environmental awareness to their customers. As a unique selling
point, besides the customer intimacy the very competitive price level is highlighted.

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Promotion
In order to reach out to individual, life-style aware consumers the organization will focus on Facebook
as the main promotional tool. Polls, business updates and interactive games will be published on
Core9s social media page regularly. Additionally, the trade fair organized at RBS will be used to raise
awareness.
For the B2B target group the company will mainly try to make use of personal contacts. An email
pitch will be prepared, a promotional video as well as a pitch will be prepared to send by email, in
order to introduce the company together with the product. Furthermore, the website will be used as a
communication channel with businesses.

Purchase Plan
The Purchase Plan explains the exact procedure of ordering from the chosen supplier (Shenzhen
Xinhuihe Digtial Technology Co., Ltd) in detail. It furthermore, explains the fixed costs that Core9 will
face for every USB Power Drive Card (1.89) and mentions once more, that the companys purchase
th
objective is 500 units with a potential raise to 1000 units, before May 27 2016.

Communication Plan
The Communication Plan states the organizations objective; to increase awareness of Core9s launch
of the USB Power Drive Card in the Netherlands by at least 300% within 3 months. It furthermore
explains the means of communication which align with the promotional activities. Additionally, a total
communication budget of 161 is established and explained.

Sales Plan
The Sales Plan analyzes the overall sales approach that Core9 will use. It focuses on the steps that
have to be taken before placing an order, establishes a planning regarding the dates when orders will
be placed and deliveries will be made, and points out the responsible sales managers.

Financial Plan
Most importantly, the financial plan provides the selling prices. Those vary from 2.99 per unit in case
an order of 500 USB Power Drive Cards is placed up to 4.95 in case a single unit is bought. A
detailed explanation of the establishment of these selling prices is given and the fact that a breakeven
point is hard to estimate due to the various different prices for different order sizes is explained.

Conclusion
Lastly, the conclusion summarizes all of the above mentioned. It does so by answering the main
research questions as well as the sub questions that were given and comes to the conclusion that as
long as the results of the extensive research are kept in mind when doing business, Core9 will be
able to successfully enter the Dutch market.

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Introduction
Background Information
Core 9 is a young company, founded by nine enthusiastic entrepreneurs with a goal: to satisfy our
future customers needs. Market needs and trends are continuously changing and shifting. In todays
society, consumers are becoming increasingly aware of their health, well-being, impact on the
environment, and the value of their time. As a group of young entrepreneurs, Core 9 strives to deliver
a quality product that meets the needs of lifestyle aware customers and is aligned with the values of
the enterprise.
After having finalized the market research stage, during which three potential products were analyzed,
the chosen product to import and sell on the Dutch market is the USB Power Card Drive. The product
offers an easy way to always have important documents safely stored, and is practical thanks to its
slim design which allows it to fit in a wallet card slot, making it easy to carry around and hard to loose.
The product is customizable, and therefore has potential as a promotional product for companies, as
well as a product for individual customers.
Given the product and the use it has potential for, the chosen target groups are:

SMEs located in the Netherlands that would like to invest in a attractive, practical and
sustainable promotional tool to enhance their clients purchasing experience.
Individual life-style aware customers who want to make their everyday life more practical by
having a multipurpose gadget or use the USB card as a digital business card.

Strategic Framework
Problem statement
The problem encountered is finding out which is the best possible way to fulfill customer needs by
importing USB Card Drives and selling them on the Dutch market. The problem arises from the variety
of strategies available to import and sell the product. The chosen strategy must meet the customers
wishes, and it must be within the companys limits and values, as well as generate a profitable result.

Objectives

Establish the companys position in the Dutch market by gaining insight about the industry,
consumer and market trends, and competitors.
Use the companys strengths and opportunities to optimize efficiency, profit and customer
intimacy, while reducing weaknesses and threats.
Use the information of a strong purchase and sales plan to reduce risks when importing and
selling the product.
Knowing and prioritizing our stakeholders demands by excelling in customer intimacy, which
will allow us to develop tailored information and promotion.

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Research Question and Sub-Questions

Derived from the problem statement, the research question reads as follows: Which import and sales
strategies will allow the company to fulfill customer needs and generate profit while being aligned with
the set values and still be within the limits?
This overarching research question can be divided in the following sub-questions:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)

What customer need does Core 9 satisfy?

How will the business satisfy the need?
How does Core 9 differentiate itself?
Who will be the key players (competitors) in the business?
How big is the market Core 9 entering?
What internal and external factors influence the company?
Who will the company be targeting as customers?
What will be the most effective marketing and sales strategies?
What are the economics of the business?
What legal aspects are to be taken into account?

Trading Name and Working Capital

Core 9 will continue to use the company name "Core 9" as a trading name.

Internal Analysis
Mission & Vision Statements
Mission:
Core 9 encourages sustainability and enhances the practicality of businesses and individuals in a
way that is acceptable to our stakeholders and in line with our core values. The emphasis will be on
establishing excellent customer relationships.
Vision:
Core 9 strives to reduce global deforestation by replacing paper with a reusable digital storage unit
and encourages businesses and individuals to share this view on sustainability.

Organograms
The main responsibilities are held by the CEOs, however all employees are treated equally and have
the same decision-making power. The positions were divided by preference for individual growth and
by means of voting agreed upon by all nine employees. The in-depth organogram models for each
term can be found in Appendix I.

7S Model
The 7S Model can be applied to measure the results of a company by means of seven factors. These
factors can be divided into soft (+) and hard (-) factors. Both are very important, however hard factors
are easier to define and can be directly influenced by the management. Soft factors, on the other
hand, are less tangible and more influenced by culture. (Waterman & Peters, 1982) The in-depth 7S
framework of Core 9 can be found in Appendix II.

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External Analysis
DESTEP Analysis
Demographic
The Dutch society consists of a total of 16.8 million potential customers. Most of those consumers
have a life expectancy of 81.10 years. The growth within the Netherlands is concentrated in Dutch
Randstad which refers to the contiguous urban centers situated in the western part of the country.
(The World Fact Book)
A challenge the Netherlands currently face is the same as most other developed countries do too
the challenge of an aging population. The current idea to face the challenge of demographic change
is a managed migration system announced by the government that will allow high skilled foreign
workers to enter the country and fill in the gaps. (CBS)
Given that Core9 will focus on the B2B market, the demographics of the country arent as relevant as
they would be if the goods would be sold to individual consumers.

Economic
The Dutch economy is the sixth- largest economy in the euro-zone. The nations industrial relations,
its moderate unemployment and inflation and a sizable trade surplus make the Netherlands a stable
country to start a business in.
The per capita income equaled 41,400 in 2013, with an unemployment rate of less than 7.0%. Like
all the other European countries, the Netherlands suffered and are still suffering from the financial
and economic crisis. However, in comparison to other EU countries there is still a relative low
unemployment. In 2012-2013 the GDP contracted at 800.5 billion with a real growth rate of -1.3%.
The countrys inflation rate was estimated at 2.8% in 2013, this is due to the fact that since the 1980s
the national government has consistently pursued policies to keep inflation low. When importing USB
Power Drive Cards from Asia, one does not have to pay import duty taxes. (The World Fact Book)

Social
Ever since the financial crisis the uncertainty avoidance within the Dutch society has increased.
Especially people with low income feel the effects of globalization. However, overall the standard of
living that Dutch residents enjoy is comparable to those in other developed countries; the education
systems as well as the health care services are both ranked among the best in the world and the
government puts great efforts into reducing child poverty. Furthermore, the government has taken
measure to reduce income inequality; by cutting income taxes for families in the low and middleincome categories. (Bijl, 2012)

Technological
Within the Netherlands the focus has shifted away from soft skills and values to technology and
innovations, as those are seen as the way to beat the crisis. Therefore, the country can be seen as
one of the most technologically developed nations within the EU. Core9 is taking a risk by importing
a product that is not the most innovative technology, however as a promotional gift within the B2B
sector, the USB Power Drive Card could be successful when promoted correctly. (The World Fact
Book)

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Environmental/Educational
The Netherlands have a strong global influence and therefore play a big role in determining future
global politics. Furthermore, the country is known for its good track record when it comes to
implementing their environmental objectives and policies. Nevertheless, the Netherlands face a very
high air pollution and the nation has had difficulties balancing environmental protection with economic
development.

Political
The Dutch system of governance is very stable, which ensures a high level of consistency and
efficiency in its policies. According to the World Banks governance indicators the Netherlands is
among the most successful nations in terms of control of corruption, the government effectiveness
and the application of rule of law which has a positive influence on its economy. The political
landscape provides a strong democratic setup which is settled in the ethos of democracy and when
it comes to global politics, the Netherlands have a strong position.
When trying to set up a business in the Netherlands, one has to meet numerous regulations and
restrictions on economic activity, including: the need to obtain permits for certain types of businesses
and controls on product safety and advertising.
Furthermore, the government has allowed the value of the currency to decline in an effort to make
Dutch products less expensive and therefore more competitive in global markets. (Nations
Encyclopedia)

Consumer Analysis (6Ws)

Who are the potential clients?
The target groups of Core 9 are segmented into two groups: small-medium sized businesses and
individuals. As promotion is being used in any industry, Core 9 will allow to sell USB cards to any
industry. However, two of the most important factors are that the business is not hi-tech and it is a
small-medium enterprise as they usually prefer an intermediary over handling promotion themselves.
Since our product is considered rather cheap within the market, those SMEs might consider placing
an order with Core 9. On the other hand, for the individuals, the main segmentation is done through
age and occupation since this affects the use of the USB cad. Younger adults would use it as a
multipurpose gadget with an attractive design, whereas business individuals would use the USB card
as a business card customized to their own wishes and use it as a promotional tool for themselves.
An additional factor, that needs to be communicated is that another purpose of the USB cards is to
reduce paper waste and therefore encourage sustainability among Core 9s stakeholders.

What would potential clients do with the product?

The USB cards main purpose is to store digital data as it can hold up to 8 GB. The card itself is slim
and practical to carry around. The uses for SMEs would be as a promotional tool in the form of
business cards, catalogue storage or to enhance the buying experience of their clients. For
individuals, the younger adults would use it as a multipurpose gadget to store their data and business
individuals would primarily use it as a business card to promote themselves or establish business
relations.

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Where can potential customers buy the product?

Core 9s USB cards can be ordered by sending an order to their email or a message through their
th
Facebook page. From March 16 , 2016 it will also be possible to place an order through Core 9s
official website. When it comes to personal selling, client may also place an order by contacting one
of the Core 9s employees.

When do potential customers buy the product?

rd

Potential clients may purchase the USB card in the sales period between March 23 ,2016 and May
th
27 , 2016.

Why would potential customers buy from the company?

Core 9 tries to encourage potential clients to purchase their USB card, because of their three main
core values: (1) attractiveness, (2) practicality and (3) sustainability. Additionally, it is essential to
assure high quality and excellent customer relationships before, during and after purchase. The USB
cards slim design that can be tailor-made serves to reduce paper usage by businesses and
individuals. Core 9 assures the client with high quality and reliability to establish long-term
relationships.

What would be the reason for potential customers to not buy the product?
A reason not to buy the USB card would be when a business already has another innovative
promotional tool that has proved to be effective for them. For individuals, the USB card might be
outdated as there are online clouds available to store digital data. However, for business individuals,
clouds are not an effective promotional tool as they do not serve the purpose of a business card, flyer
or catalogue.

Industry Analysis: Porters 5 Forces

Threat of New Entry
The threat of new entry is high. If a company of students can enter the market, that means basically
everyone can. You do have to put in the time to correctly start up a company, however you dont have
to put in a lot of money. A new entrant would only need the capital to buy a first batch of the product
you have chosen to import. From that point on you would be dependent on profit in order to gain new
capital. You dont have to be a specialist to start a company in this market either, basic business
knowledge will suffice. Importing products and trying to sell them is a pretty straight forward principle.
There are little to no barriers to prevent new entrants, depending on the product youre importing. In
the case of the import of USB cards you will face no barriers.

Bargaining Power of Suppliers

There are a lot of suppliers for USB cards. The variety of suppliers is also immense, from large
suppliers abroad to smaller suppliers closer to home. The service of suppliers might differ greatly,
with some suppliers you get the opportunity to negotiate about prices and with others there is no room
for negotiations, the other differences might occur in treatment of clients. Larger companies dont pay
as much attention to their buyers as others. The fact that there are so many suppliers actually gives
more power to the buyer. If the supplier is not performing according to the expectations of the buyer,
they can threaten to or simply switch suppliers. The cost of changing would also be low, unless
samples have already been ordered. The samples themselves dont cost anything but you are
responsible for transport costs, and for one single item those still add up to a significant amount.
Page 10 of 41

The main conclusion is that there is a large choice of suppliers for this particular product and also
room for negotiations regarding price.

Threat of Substitute Products

The threat of substitution is high in this market. Since Core 9 will serve solely as an intermediary,
clients dont actually need to make use of this option. They could just go to a supplier directly. Not to
mention the fact that Core 9 is not the only intermediary out there. It would cost the client nothing to
switch from/between intermediaries or suppliers. Service is an essential factor in distinguishing the
company from other intermediaries. The product wont make a difference.

Bargaining Power of Buyers

Core 9 will certainly not be the cheapest supplier out there nor will the company have the best product,
the challenge is to stand out on the basis of client relationships and service. However, in the Dutch
market Core 9 does have competitive prices for the USB power card drive. The number of customers
are relatively high; it is however not easy to come into contact with the customers. These customers
are also very likely to already have a supplier, which might very well be a cheaper supplier than Core9
is. Price sensitivity is thus a large obstacle to overcome in this particular market.

Competitive Rivalry
The number of competitors is extremely high. This is also caused by globalization; customers have
the opportunity to look for suppliers all over the world. If customers would only look for local suppliers
this would already be a significant advantage, also due to the price the company is asking. Quality
differences will regularly occur between suppliers. Core 9 will be importing the cards from China, this
might be a disadvantage when known among customers. China doesnt have the best reputation
regarding quality. Core 9 needs to primarily focus on customer intimacy to encourage loyalty. That
will be the only way to retain customers and create goodwill among customers and thus profit from
word of mouth marketing.

Industry analysis: Trends

Our company is targeting businesses as potential customers, as well as consumers on the side.
Though in fact businesses are consumers as well. General consumer trends are therefore relevant
to our company. Trends are established over time and have significant effect on business. Playing
into a trend can be a major advantage as well as create an opportunity. On the other side of this is
the threat trends may have to your business. A trend may cause a product to become obsolete. It is
therefore of great importance to consider trends when doing business. The top 10 trends that are
expected to shape global consumer climate across all industries this year can be found in appendix
VII. (Rabourn, 2016)

Competitor Analysis
In order to identify Core 9 competitors strengths and weaknesses, an analysis was conducted to
determine what Core 9s strengthens and weaknesses are in comparison to the competitors. This will
help increase strengths, discover opportunities, improve weaknesses and foresee threats. This
analysis will help making Core 9s product and service unique and eventually guide Core 9 towards
growth.

Page 11 of 41

Flashbay is Dutch company which provides custom made technology products for the past 12
years. They are specialized in personalized IT-hardware and consumer electronics with their main
focus on bulk USB cards orders. They provide 15 different shapes, 2 different kinds and 8
multifunctional USB sticks including designs ideas. Flashbay also provides service as big
presentations including pre-uploaded USB information for the visitors. They provide USBs with auto
run which is a feature, that when you plug in your USB the information automatically pops open which
is mainly used for promotional give away USBs. The organization states that they are the best
supplier in the market and have worked with international organizations such a Shell, KLM and
Unilever. Flashbay also values the environment by using recycled material and influencing their
employees, suppliers and customers to do better for the environment in many different ways.
Since 2001, 123USB provides a variety of different shapes and material for USBs. Mostly noticeable
is that they provide USB sticks in 3D products. Meaning that customers can send pictures of for
example a car and they can create a 3D print of the car with an USB stick in it. Furthermore, they also
provide customized USB business and credit cards. They also provide free features, for example
free uploads on the USBs and free advice for company marketing promotion activities which is a
huge strength of 123USB.
Promo Fit claims to have the best solution for you when searching for promotional products. They sell
personalized USB cards and sticks but most noticeable is that their assortment includes personalized
water bottles, key cords, presentation materials and other products. All of these products are provided
in different shapes and forms and can be designed by the client or the organization for their own
promotional activities. Promo Fit has collaborated with large businesses such as the Nationale
Nederlanden and Sony.
3DUSB focuses mostly on personalized USB products customized by the clients own taste. 3DUSB
states that their creativity is what makes them stand out from the other similar organization. They will
also create a suitable design according to your needs. Eager to create and develop suiting products
in combination with creativity is what 3DUSB stands for.
Core 9 will focus mostly on customer intimacy and creativity in helping customers with the best service
and solutions. The main objective is to make customers think more sustainable by for example
reducing paper uploading their catalogue on the USB power card drive and handing them out the
customers. It's also possible to upload employee rules, guidelines, tips or other company related
subjects on the cards to educate the organizations employees in a way that is more sustainable than
usual.

Suppliers Analysis
The chosen potential supplier Shenzhen Xinhuihe Digtial Technology Co., Ltd was established in
1996. The company researches, develops, produces and sells USB flash drives, card readers, SD
cards and other IT products. To analyze the supplier further, Carter 10 Cs model will be used.
Competency The company has been a Gold Supplier for 4 years at Alibaba.com website.
Moreover, it has received a Trade Assurance evaluation that guarantees product quality, on-time
shipment and payment protection. In addition, the manufacturer has been assessed by third party Bureau Veritas - a world leader in testing, inspection and certification services.

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Capacity At the moment, the company has a factory that occupies 1,000 square meters and
employs more than 200 staff members. The manufacturer is able to produce up to 300,000 USB flash
drive related products and 35,000 Bluetooth related products a month. The delivery of any order
below 3,000 pieces takes up to 5 days. On the other hand, any order that exceeds 3,000 pieces takes
up to 10 working days.
Commitment to Quality As already mentioned above, the company has already been tested and
approved by Bureau Veritas to assure the quality. Furthermore, the company itself possesses quality
controlling test equipment and facilities such as 40 USB Flash Drive Testing Computers, Bluetooth
testing terminal, Battery Testing Instrument and Power Supply insurance.
Control The company is a manufacturer itself, therefore, it offers a high flexibility according to
customer needs. All production processes and procedures are fully controlled within the company.
Any customer demands such as customized logo, different flash drive capacities or various types of
delivery are directly discussed with a sales person of the manufacturer.
Cash The total stated annual revenue of the company is $3,850,000. The accepted currency are
US Dollars, Euros and Hong Kong Dollars. However, there is no information on how healthy the
company is.
Cost The company has offered the most competitive prices in comparison to other competitors.
Moreover, it allows to bargain the price dependent on the amount of products ordered and the type
of customization demanded.
Consistency The company offers a free sample to evaluate the quality. Furthermore, the
manufacturer assures to replace any faulty products at companys costs. According to reviews and
feedback, the previous customers of the company did not have any problems related to quality and
services.
Culture The company claims to be adjusting to different cultures as it exports to different markets.
The company exports 92% of its products and the biggest market is Central and North America,
followed by Eastern and Western Europe.
Clean This aspect analyzes whether the company ethical, funded legitimately, obeys the
environmental laws, does not use child labor and etc. Unfortunately, the company does not provide
such information, however, the reviews did not provide any claims of previous customers against the
manufacturer.
Communication The company assign the sales agent to communicate with the customer. The
sales agent uses various types of communication methods such as Alibaba message center, email,
Skype and WhatsApp and is available 16 hours a day. In case the sale agent is not able to answer
certain question, the customer is then forwarded to senior manager.

Distribution Analysis
Core 9 will order products from Shenzhen Xinhuihe Digtial Technology Co., Ltd multiple times a month
dependent on client orders. The produced USB Power Drive Cards will be stored at suppliers storage
and shipped all at once on the determined date once a month. Moreover, the imported good will be
stored at the personal storage of Core9s personnel manager.

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The customers of Core9 will receive their products by mail or, given the fact that the customer is
situated in the area of Rotterdam, logistics manager will deliver the products in person.
Furthermore, the costs of transport will amount to 40 a month, due to the fact that the products, as
mentioned above, will be delivered once a month to save shipment costs. Core9 will charge
customers for any distribution costs that occur within Dutch borders.
Core9 has chosen to use the Delivery Duty Paid (DDP) incoterm to avoid the liability and prevent any
possible risks and damages that could possibly happen during the time of delivery. Additionally, mini
enterprise and supplier agreed to use DHL shipping services.

SWOT Analysis
The in-depth SWOT Analysis can be found in Appendix III.
Strengths
Attitude/Motivation personnel
Company culture
Language knowledge
Good relationship with supplier
Service-(Customer-) oriented
Opportunities
Growing public concern about climate
change/ environment
Competitors vulnerabilities
Swiss army life

Weaknesses
Market knowledge
Economies of scale
Flexibility
Technical product superiority
Capital
Threats
Competitors new products and innovation
Increasing labor costs in Asia
Strong local competition
Change in technology

Fit for misfit

Table 1: SWOT Analysis of Core 9

Confrontation Matrix
A confrontation matrix is a tool used to analyze the output of a SWOT analysis. However, in Core9s
case, the focus on threats and weaknesses is not relevant. Therefore, the main focus is on exploiting
the strengths by combining with the most important opportunities. The combinations were factored
from lowest importance (1) to highest importance (5).
As one can see from the confrontation matrix in Appendix IV, 3 focus areas have been selected:
O1 S3: Given that Core9 focuses on satisfying its customer needs, the emphasis of promotion will
be adjusted to the overall global desire of being sustainable. When advertising the USB Power Drive
Card, Core9 will be focusing on the aspect that storing documents on the device will be more
environmentally friendly than printing.
O2 S3: To fulfil the customer wishes, Core9 will make sure to put emphasis on the versatile
functions of the USB Power Drive Card. The fact that it can be used as a promotional gift for
employees as well as clients and partners that serves as a business card and also as a way of storing
company relevant information, makes the USB Power Drive Card a multipurpose gadget.

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O3 S3: Knowing that it becomes more and more important to clients to be able to customize their
purchases, Core9 will assure to make enough time to establish the individual expectations, wishes
and needs of each customer before placing an order with the supplier. Furthermore, the import
enterprise will constantly communicate with the manufacturer to ensure that the initially discussed
designs will be delivered as agreed upon.

Option Matrix
Combination 1:
Combination 2:
Combination 3:

Suitability
+++

Feasibility
+++

Results and Risks

++

++

++

++

+
Table 2: Core 9's Option Matrix

For the chosen option (Combination 1), the following strategic objective was formulated:
Core9 will focus on combining the organizations asset (customer intimacy) with the consumer trend
for sustainability. By promoting this strategy through the social media accounts as well as the
organizations website, the import enterprise will assure the sale of at least 500 USB Power Drive
th
Cards, before May 27 2016.
The objective to fulfill the customers needs for everyday-sustainable practicality while gaining reallife business experience will be met after having sold 500 units, however a deal with the supplier has
been arranged that guarantees a price drop if Core9 exceeds those expectations.

Market Research and Product

The stage previous to the elaboration of this business plan was the Market Research stage, during
which three products the USB Mug Warmer, USB Power Card Drive and Bluetooth Tracker Tile
and their market potential were investigated.
Based on the results and analysis of the three potential products, the USB card was chosen to be
final product to be imported to the Netherlands. This decision was based on a number of reasons: (1)
the practicality of the product, (2) the promotional potential it has, and (3) it had the best supplier
reliability when compared with the other products.
To address further details for the specific reasons, the practicality of the product was proven to be
perceived by the clients already as the concept of a USB drive is common among the population.
However, this card can be easily stored like for example in a wallet, making clients prefer the card
over a regular USB drive. Another added value to this particular USB Drive is that it can be customized
to the needs and wishes of the customer. This leads to the second reason of the product choice,
which addresses the potential the product has to serve as a promotional product for companies and
individuals. Due to the customization factor, the USB Power Card Drive can be used to promote a
certain company by printing the logo onto it, storing company catalogues on it for clients, or given to
employees as a reward for their hard work. Additionally, it could even be used as a business card for
individuals to hand out with specific files that they would like the recipient to see.

Page 15 of 41

The customer and employee surveys and the potential client interviews alongside the groups
extensive research verified that the USB Power Card Drive is the most indicated product out of the
three initial for Core 9 to import and sell.

Strategy of Core 9
Based upon the SMART objective, the strategy that Core 9 will use to fulfill it is based on customer
intimacy and therefore satisfaction. The product can be approached in many ways, with Core 9
choosing to undertake a strategy in which the customer is the companys main priority. The need for
sustainable, practical and effective advertising is met with the USB Power Card Drive, and will be
delivered through a strong and informative communication plan.
The already mentioned option combination: Given that Core9 focuses on satisfying its customer
needs, the emphasis of promotion will be adjusted to the overall global desire of being sustainable.
When advertising the USB Power Drive Card, Core9 will be focusing on the aspect that storing
documents on the device will be more environmentally friendly than printing gives Core 9 a whole
new strategy that is new to the File Storage industry. By advertising the product as sustainable, Core
9 defines its strategy and consolidates a set of values that act as one of the companys (and products)
Unique Selling Points (USPs).
The strategy is naturally supported by the purchase, sales and communication plans, which are
explained further on.

Market Segmentation, Targeting and Positioning

According to Kotler, it is most important to use the formula of the segmenting, targeting and
positioning when you look at the marketing for a specific company (Kotler, 2005). When using the
STP model, one is able to define the already existing customers, the target groups and lastly to make
a wise decision to communicate towards these groups.

Segmenting
In order to successfully identify a profitable segment of the market, there are a set of factors that must
be taken to account when looking at who the product will be aimed towards and how it will be
communicated to them.
1. Geographic: Due to requirements, the product must be imported to the Dutch market.
However, Core 9 is open to foreign clients as well, mostly in neighbor countries such as
Germany or Belgium because of proximity. Within The Netherlands, companies in Rotterdam
are the first focus, once again based on proximity, but any other areas will not be discarded.
2. Demographic: the consumer profile found to be most adequate is students or young
professionals, male or female, who handle digital documents on a daily basis. Other factors
such as marital status or ethnicity are less relevant. The product is however very versatile
and can be used virtually by anyone with a computer. Customer-wise, the targeted company
profile is also very versatile, as the product can serve as a promotional tool for any type of
company.

Page 16 of 41

3. Psychographic: since one of the values Core 9 promotes is sustainability, the desired
customer and consumer profile includes sustainable, life-style aware clients and individuals.
This must however not discard other potential customers, as the product is suitable for a very
varied target group.

Targeting
With this segmentation in mind, the target groups are defined as:

Primarily, medium companies that are located in the Netherlands (who do not have regular
merchandise suppliers) and that want to invest in promotion and employee satisfaction.
Individual lifestyle-aware customers who want to make their everyday (office/work) life more
practical and easy.

Positioning
Regarding the positioning of the company and the product in the market, Core 9 will promote itself as
a student company who wish to bring practicality and environmental awareness to their customers.
The price range is overall lower than Dutch competitors, for which it will be used as a unique selling
point.

Marketing Mix
Product
The chosen product is the USB power card drive; it is a file storage card with a USB port. The storage
capacity of the card is 8GB. The cards can be customized to the liking of the customer. The companys
focus is to sell the cards to businesses as promotional material. The cards can then carry the logo of
said company, or any other image that they would like to have depicted. They can be resold by the
company or serve as promotional giveaways or even business cards. Another idea is to use the card
to contain a catalogue for retail companies. Instead of printing the catalogue and handing them out,
paper can be saved by uploading the catalogue to the cards to hand out. Consumers will not be
excluded from sales. Extra designs will be made to fit the wishes of consumer groups, which are
mainly students.

Price
The chosen product carries the name of USB power card drive with a price of 4.95 per unit.
Research has shown that the product is competitively priced compared to the prices that direct- and
indirect competitors offer in the Dutch market.
The USB power card drives price is based on findings derived from the conducted market research.
The research results indicate that respondents of our qualitative research, which are businesspeople,
are willing to pay a maximum price of 10. However, the maximum price respondents of the
quantitative research are willing to pay is surprisingly lower. The average price that resulted from the
studies amounts to 5.09 for the USB power card drive, which, combined with the cost of importing
a product, leads to charging 4.95 for Core 9s USB card. Discounts will be given according to the
size of the order. The pricelist (Appendix V) states the price per unit depending on the amount of units
that are ordered. During negotiations, we will offer these discounts to encourage companies to order
a larger amount. The plan is to start with a higher price; the prices below are the lowest the company
is willing to go.
Page 17 of 41

The payment period is 30 days. The goods will be ordered as soon as 10% of the original bill is
received and the client will have 30 days after delivery is made to pay the residual amount. If,
however, the order exceeds the estimated maximum amount of 500 units the company will be open
to negotiations regarding the height of the down payment.

Place
The company will operate in the Rotterdam area. First and foremost, all members of Core 9 will try to
make use of their personal contacts to generate orders. Furthermore, local businesses will be
approached. Products will be sold directly to clients without involving any kind of retailer. Core 9 is
either going to take care of the distribution of the products itself or a third party will be contacted to
do so for us. The choice of distribution method will depend on a variety of circumstances. It would be
more convenient for Core 9 to use intermediaries, third parties for distribution if the clients are spread
and located far away from one another. However, if the clients arent located that far away from each
other or Rotterdam, Core 9 itself will take care of the distribution and make sure to provide our clients
excellent service and treatment.
As for the future inventory, the size of our inventory (quantity of products) will be of a determining
factor. If the inventory is no more than 500 units at a time, Core 9 will take care of the storage of
goods internally, which means storing the goods at the home of the personnel manager. In case of
inventory being quite large and thus not reasonable to place at home, Core 9 will contact a third party
for storage and reach an agreement with them. In case it is decided to hire a third party, transportation
and logistics will be taken care of by this third party. On the other hand, supposing that Core 9 takes
care of the distribution of goods, if necessary cars will be used to transport orders that are easily
accessible to the members. However, a more likely scenario is that the company will post the order,
using any of the Dutch postal services that are available, depending on the costs.

Promotion
Promotion wise, Facebook is the key to reaching our consumer target group. Students spend a lot of
their free time on Facebook. It will therefore be used to communicate with the stakeholders (B2C),
but also promote the company as a whole. All members will share the page with their own Facebook
friends to generate likes. Furthermore, a Like, Share & Win campaign will be organized close to the
date of the fair at Rotterdam Business School (RBS). A random participant of the contest will be
selected as the winner and receive one of the USB power card drives meant for B2C sales.
The followers on Facebook will select the designs for the fair. The designs will be made by a third
party, who will also design the company website. The plan is to post three options on the Core 9
Facebook page and have the followers vote on their favorite design. That way the stakeholders are
also involved in the companys decisions. To add a fun element to the fair, the first 25 buyers will
receive a free cupcake.
For the B2B target group the company will mainly try to make use of personal contacts. Furthermore,
local businesses will be approached by email or phone to introduce the company and its product. An
email pitch will be made. A promotional video will be made to to add to the email pitch introducing
the company together with the product and its price, with a reference to the company website. The
website is mainly meant for the companys B2B clients, as Facebook is not an appropriate channel
to communicate with businesses. Mentioning the fact that the company is run by students might help

Page 18 of 41

with sales. Companies might relate more to young people trying to start a company, rather than
acting like professionals.
Retail companies can be approached with the idea to hand out catalogues in the form of the USB
card, and therefore saving paper. The company wants to be known as a company that sells
sustainable product. It could also work as promotional flyers for festivals. The design of the flyer can
be printed on the card and the card itself can contain a mixtape or after video, promoting the next
edition of said festival.
Throughout the further development of the sales period the company is open to other promotional
ideas.
Budget wise the company will try to keep the costs to a minimum since the start-up does not have
high capital available to allocate to the promotional budget. The company will make use of free
promotional opportunities as much as possible.

Purchase plan
The purchase plan of Core 9 covers the process of purchasing and selling, the end result of the
supplier analysis and further costs concerning the process. It gives a quick overview of the actions
that need to be taken into account when ordering and distributing the USB Cards. The purchase plan
is going to be used as a guideline to which the managing partners of the company should stick to in
order to successfully implement the right purchasing strategy.

What is Core9 Going to Import?

The product that will be imported by the company will be the USB Power Drive Card. The USB Power
Drive Card can be used as a business card that can be customized according to the needs of a client.
The available storage of the USB Power Drive Card amounts to 8GB; which makes it possible for
companies to store the desired information or catalogues on the device to distribute them amongst
their customers. The small and thin frame allows the device to fit perfectly in a persons wallet. Core9
will be able to order the USB Power Drive Cards in bulk and choose what print/logo/details are going
to be displayed on the product. The minimum amount for an order amounts to 50 pieces. Moreover,
Core9 chooses themselves when to order the products and how many pieces will be ordered per
time. The customization of the USB Power Drive Cards is included in the purchase price; there will
not be additional costs for the customization.

Where is Core9 Going to Buy the Products?

The chosen supplier Shenzhen Xinhuihe Digtial Technology Co., Ltd is situated in Guangdong,
China. The supplier has been found and contacted through the Alibaba website.

Why this Supplier?

The company has received the Trade Assurance evaluation and has been assessed by third party Bureau Veritas. These evaluations assure that that the supplier guarantees high quality, payment
protection and on-time shipment. After ordering the samples, Shenzhen Xinhuihe Digtial Technology
Co. proved to have high quality products as well as fast and reliable delivery. Moreover, the supplier
has assigned a sales agent that continuously communicates with Core9.

Page 19 of 41

Pricing
The purchase price will amount to 1.89 (incl. VAT) per piece. The customization for the USB Power
Drive Cards are included in the purchase price and no further additional costs will incur for this
process. The USB Power Drive Card is duty free and has a VAT of 21%. (Zhang, 2013). Furthermore,
the transportation costs will amount to 40 a month, since Core9 has agreed with the supplier to
send an order once a month on a determined day.

Planning and Re-ordering

The company agreed upon monthly ordering of the USB Power Drive Card only if there is demand
for the products. If, for instance, there is demand for a total number of 300 USB Power Drive Cards
in one month, the Core9 will place orders through that month, but shipment will only take place once
on the last day of the month. This will be less costly since the transport costs are only paid once
instead of several times a month. The logistics and financial manager of Core9 are in close contact
and will advise each other in the companys best interest. When working with other businesses the
ultimate purchase decision lies with the B2B client. This means that Core9 awaits the demand for the
USB Power Drive Card and then acts upon that by ordering the products from the supplier.
Core9 will also import certain general and/or unisex designed USB Power Drive Cards to sell them to
individual consumers. Core9 will store the general designed USB Power Drive Cards at their personal
storage addresses. These products can be ordered at Core9 at any time. If the mini enterprise runs
out of stock for the general and/or unisex USB Power Drive Cards, Core9 can re-order the same
products with a minimum order of 50 pieces per time.

Purchase Objectives
Core9 has set an objective and negotiated with the supplier to buy a total amount of 500 USB Power
Drive Cards at the set purchasing price. However, if the mini enterprise exceeds the objective, the
supplier agreed to reduce the purchase price for every following unit.

Purchase Control
The purchase and work process will be explained as an example for a clear overview. Assuming the
RBS would order the product from Core9 the following agreement has been made with the supplier:
1.
2.
3.
4.
5.
6.
7.

Core 9 discusses the design with RBS and charges the deposit
Core 9 gives an order, design and requirements of RBS to the supplier
Core 9 pays the deposit to the supplier
The supplier confirms the design availability and creates the artwork
The supplier arranges a picture of the sample and forwards it to Core 9
Core 9 shows the sample to the contact person of RBS and asks for a confirmation of the design
Once RBS confirms the sample and transfers the remaining money, Core 9 informs the supplier
that the order can continue the production
8. The supplier finalizes the production and stores until the determined date of delivery
9. Core 9 pays the supplier
10. The supplier delivers the order on the determined date

Page 20 of 41

Communication Plan
Situation Analysis
Technology grows exponentially known as Moores Law has had effects of the everyday lives of
many individuals. Everything seems to be made simpler and quicker (Big Think Editors, 2011) .
However, there are some risks that technological businesses could run into, when they would not
keep up with the technology advancements leading them to be seen as outdated pretty quickly after.
In reaction to this fast-growing industry, Core 9 has chosen to import USB cards which are a current
technological trend in order to provide businesses and individuals with primarily a promotional tool
such as producing a USB Business Card or store entire catalogues of retail stores on a USB Power
Card Drive. In addition to this, the purpose then is to reduce the paper usage among businesses and
individuals.

Problem Statement
The problem that Core 9 encountered is finding out the best possible way to communicate the
attractiveness, practicality and sustainable factor of the product in addition to fulfill the customers
needs. The market research had shown that 49% of the respondents already perceived the product
as attractive, so the main question would be on how to communicate the practicality and sustainability
of the product to the audience. Due to the slim design allowing it to fit into a wallet and with an
emphasis on the fact that a USB card is an effective replacement for paper shows a sustainable
factor, even though it is made out of plastic. Many businesses and individuals still use paper business
cards and printed catalogues, which would primarily be targeted to be aware of Core 9s product.
The communication plan introduces a way of gaining a wider audience in the Netherlands.

(SMART) Communication Objectives

In order for the communication to be successful, the main objective would be to increase the
awareness of Core 9s launch of the USB Power Card Drive in the Netherlands by at least 300%
within 3 months. After the release of diverse messages to the audience, stakeholders would need to
know about the existence of the USB Power Card Drive and be encouraged to change their attitude
towards the alternative of paper promotion. Preferably, they should then decide to buy the USB Power
Card Drive.

Message
The overall message would be: Core 9 has launched their first tailor-made USB Power Card Drive
in the Netherlands. However, there are different target audiences to focus on that would all have a
differentiated message about the launch. Some would focus on the price, others would be interested
in environmental benefits and lastly there would be some considering the effectiveness of the product.
The target audience of Core 9 would be businesses excluding hi-tech and middle to upper class
business individuals who wish to promote themselves by a digital business card rather than a paper
one. The message to them should include those factors to make the USB Power Card Drive attractive.

Page 21 of 41

Target Audience
We can distinguish multiple target groups since this campaign is mainly about creating awareness.
The main focus will be on (1) nonhi-tech businesses, (2) middle to upper class business individuals,
(3) environmentalists, and (4) promotion agencies. Those groups are chosen as they would prefer an
intermediary to import and customize the product to their needs, whereas other groups could,
ultimately, choose to do such an import themselves to save costs. Business individuals will consider
buying the product due to its attractiveness as a promotional tool. Environmentalists will support the
product as it strongly reduces the use of paper and has a long lifetime. Promotion agencies would
consider to buy the product after measuring their effectiveness and efficiency as a promotional tool,
in addition to the cost benefits.
To segment the audience, there are several important characteristics that need to be taken into
account such as occupation, age, and promotional budget.

Communication Means/Media
The main advertising means of communication would be through Core 9s official website, Facebook,
IBL trade fair, personal selling and and lastly through direct mail.
Target Audience

Message

Communication Means/Media

Nonhi-tech
SMEs

Core 9 has launched its most attractive,

practical and sustainable promotional tool
in the Netherlands.

Direct mail, Core 9s official

website, and personal selling

Middle to upper
class
business
individuals

Core 9 has launched its most attractive,

practical and sustainable business
card in the Netherlands.

Facebook, Core 9s official

website, IBL Trade Fair, personal
selling and direct mail

Environmentalists

Core 9 has launched its most

sustainable promotional tool in the
Netherlands reusable and paper waste
reducing.

Facebook and Core 9s official

website

Promotion
agencies

Core 9 has launched its most attractive,

practical and sustainable promotional tool
in the Netherlands.

Direct mail, personal selling and

Core 9s official website

Table 3: The link between Core 9's target audience, the messages and communications means

Budget
CORE 9S COMMUNICATION BUDGET
Website domain
Facebook post boosts to increase awareness
(4800-13000 people, 14 days)
Creating and printing a banner for the IBL Trade fair
Cupcakes for the IBL Trade Fair
Flyers printed at Xerox (50 100 flyers)
Total
Page 22 of 41

16 per domain
70 per boost
40 per banner
10 for 25 cupcakes
25 for 100
161

Planning
The planning of the communication plan can be found in appendix VI.

Research
After we the campaign is implemented, the company will have to do research on the effectiveness of
the campaign itself, do more people really know about the launch of the USB Power Card Drive?
Quantitative research will be best in this case, because it has a higher ease of collection and analysis.
By conducting surveys, people will be asked if they know about the launch. If they do, follow-up
questions would be asked, such as how they found out about the launch and what their opinion is
about the product. This form of research will also be the most cost effective option for Core 9. During
the campaign, the goal is to reach as many stakeholders as possible. During the evaluation research,
the goal will remain by interviewing as many respondents as possible to assure results that represent
a high percentage of the population. The results of the survey will give Core 9 a tangible indication of
whether the campaign had been effective or not.

Follow-Up
The results of the evaluation will show weather the objectives have been reached. Do people in fact
now know of the launch of the USB Power Card Drive? The research might show that Core 9 has not
managed to reach a wider audience for their new product, in this case, they would have to go back
and investigate at which point there was a gap in communication. Why has Core 9 not widened their
audience? Once this is answered, Core 9 would be able to adjust the campaign in a way that would
solve the problem. The campaign would have to be restarted, so that the mistake(s) can be corrected
and successfully create awareness in the Netherlands.

Sales plan
The sales plan covers the sales planning process of Core 9. The objective is what drives the actions
of the sales plan meant to be a guide for Core 9s managers. In the sales plan activities are set to
realize goals, activities are organized, implementations realized and results are measures and
compared resulting into adjustments and progress. The sales plan is created for a certain period in
which the goals need to be met.
The main goal is to sell a minimum of 500 units potentially 1000 by the end of June, 2016.
Objectives:

Before the end of April, each employee of Core 9 will recruit potential client companies who
show interest in their product.
Core 9 is aims to sell an estimated amount of 100 units to students at the trade fair at the
th
Rotterdam Business School on April 20 , 2016.
Core 9 aims to raise awareness for paper waste to their clients by providing them with
alternative methods to use the USB card as f.e. a promotional tool in the upcoming 3 months.

Target groups:
(1) Small-medium enterprises (B2B) of any industry that seek for a sustainable, practical and
attractive promotional tool, as well as, enhancing the purchasing process of their clients and to reduce
their paper usage.
Page 23 of 41

(2) Individuals (B2C) primarily students and business individuals, who either seek for an attractive
multipurpose gadget or specifically would like to use the USB card as a digital business card.
Core 9 is focusing on the B2B market since in this market there is the capital to place orders of large
quantities. Therefore, it is important not to focus on a specific industry, but to raise awareness among
a variety of industries. For B2C, there will be a trade fair organized at the RBS primarily for students
where Core 9 aims to sell at least 50 units.
Amount of sales aimed for:
Core 9 aims to sell a total of 500 units by the end of June. In case it turns out there is a significant
level of interest and the 500 goods have been sold, Core 9 will adjust its objective and aim to sell
1000 products by the end of June.
For B2B, Core 9 aims to sell 450 units by contacting potential businesses who show interest in the
product and recommend us when having placed an order. As for the B2C, Core 9 aims to sell an
expected amount of 50 units at the trade fair. It is not only important to sell during the trade fair, but
also raise awareness for Core 9s product and the corporate values to raise interest.
Ordering goods:
The first order will consist of 500 goods at first hand in order to have leverage for negotiating lower
prices per unit and to see whether the goods are being sold. When the demand is higher than
expected, an additional order will be placed to meet the demand meaning the amount is not fixed.
Order number
0001
0002

Product
USB Power Card Drive
USB Power Card Drive

Date
25-03-2016
20-04-2016

Units
People
100
Vaidas & Marwn
400 (potentially
Vaidas & Marwn
another 500)
Table 4: Core 9's Product Orders

Methods for realizing stated goals:

Core 9 will apply personal selling while selling the products to create excellent customer intimacy.
Following the recruitment of clients, Core 9 will assign two employees to communicate with and sell
to this client. These two people will be the one that has recruited this client and an additional member
of the company as back-up and to delegate with. The advantage of this are that the recruited client
will know one of the two employees, establishing a relationship. Secondly, the second employee
might be more objective in certain aspects, such as negotiating and delegating.
E-commerce:
th

Core 9 will create awareness by launching their official website on March 16 , 2016. Among other
things, the website will feature product descriptions, prices and background information. However,
the USB cards will not be sold via a web shop. Core 9 will make use of an order form, but all sales
methods will not involve e-commerce.

Page 24 of 41

Summary sales methods/generators:

Core 9 website
Trade fair
Personal selling
Business cards

Pricing:
The USB power card drive will be sold for 4, 95 per piece to individual consumers. However, when
businesses would like to place a large order (>50 units) then a discounted price per unit is available,
which can be found in Appendix V.
Administration for the stock and sales:
Core 9s inventory will be stored at the sales managers home address, Spanjaardstraat 54A 3025
TS in Rotterdam, The Netherlands. Who will also be responsible for the administration of the sales.
Sales and Visits Reports:
The sales manager will conduct a sales report after each sales process. The reports will be collected
and saved. This report can show is the increasing or decreasing amount of sales during a period of
time. The Sales report can be used to identify sales opportunities and eventually increase sales. An
excel template will be created for the sales reports.
Sales report will consist of:

Location of products
Who has what amount of products
Amount sold in total and per person
Prices per product
Who received discounts

Content of visit report:

Company name
Date of visitation
Name of participant
Profession
Location
Degree Interest
Potential order (yes/no)
Follow up visit

Time planning:
Date:
7/3/2016 31/5/2016
16/03/2016
20/4/2016

Designated people:
Entire group
Third party
Entire group

Task(s):
Search for clients
Create website
Trade fair

Table 5: Sales Time Planning of Core 9

Page 25 of 41

Financial Plan
The overview of the master budget of Core 9 can be found in Appendix XX.

Legal Aspects
When starting up a business there are many different legal rules and regulations that we as a
company need to be aware of before taking decisions to avoid obstacles or other problems for our
business. Following up are aspects that we need to keep in mind when doing business as an import
company. (Brooklyn Public Library, 2016)
Every business requires to have some sort of license or regulations. You will need a license
depending on what kind of field and sometimes multiple. All Core 9 members have agreed on our
personally made code of conduct form which stated the rules we as individuals and group need to
follow. (Brooklyn Public Library, 2016)
Core 9 needs to record many different transactions or contracts for doing business. Its important to
draw up contract as proof to others and avoid problems. Furthermore, for example shareholder
contracts, purchase contracts and transport contract will be made to ensure us to do business
properly under legal circumstances. (Brooklyn Public Library, 2016)
Normally as a business Core 9 should apply for trademarks, patents and copyrights. Core 9s logo is
a symbol that people can identify the products with our company. In the Netherlands this is can be
done at the Benelux-Bureau voor de Intellectuele Eigendom(BBIE). At the BBIE its also possible to
ensure us of the rights of our ideas, concepts, designs and prototypes which is also important for our
USB power card drive to ensure the company of the designs, prototypes etcetera. (Benelux-Bureau
voor de Intellectuele Eigendom, 2016)
Import restrictions in this case are not applicable for core 9s products. When doing import from china
only agricultural products need special licenses which also applies to textiles. On steel and iron
products the government only applies a double checking process and quotas, these restrictions can
differ depending on the type product. However, Core 9s products will not encounter restrictions for
the USB power card drives. (European Commission, 2016)
The EU is committed to open trading relations with China. However, the EU wants to ensure that
China trades fairly, respects intellectual property rights. China has the European union as second
biggest trade partner however for our category Import licensing is not required for our products
entering an EU country (European Commission, 2016). This would only apply for products such as
tobacco and weapons meaning that this is not off concern the import of our USB cards. The EU import
licensing system is based on the premise that no import licenses are required unless specific products
are subject to import surveillance, quantitative restrictions or safeguard measures. As regards import
surveillance, specific products may be monitored by the EU in order to increase transparency in trade,
but without the purpose of imposing limits on access to the EU market. As a result of this surveillance,
statistical controls and further controls on the origin of the products are established. Applications for
import licenses must be submitted to the relevant department of the Member States, on a prescribed
application form and, in most cases, be accompanied by an original export document provided by the
supplier and a copy of an invoice.

Page 26 of 41

The EU also has restrictions and prohibitions in place as regards the importation of some products.
In particular, Hong Kong traders should be aware of the following restrictions: Counterfeit and pirated
goods cannot be imported into the EU. The customs authorities of the EU Member States may
intervene where goods are suspected of infringing intellectual property rights. The intervention may
lead to the destruction of the imported goods as well as the imposition of fines on the importer. (Hong
Kong Trade Development Council, 2016)
VAT and Duty
Importing from china mostly involves 3 type of taxes, value-added tax; Consumption tax and Customs
duties. Items subject to consumption tax (CT) include luxury products such as high-end watches
Import CT is collected either on an ad valorem basis or quantity basis, with tax rates and amounts
varying greatly. CT should be paid within 15 days from the day that Customs issues the Import CT
Bill of Payment. Customs duties include import duties and export duties, with a total of 8,238 items
taxed, according to Chinas 2013 Customs Tariff Implementation Plan (Zhang, 2013). Customs duties
are computed either on an ad valorem basis or quantity basis.

Page 27 of 41

Conclusion
In conclusion, the business plan of Core 9 aims to answer their research question which is as follows:
which import and sales strategies will allow us to fulfill our customers needs and generate profit while
being aligned with our values and within our limits? In order to formulate a in-depth answer for this,
the research question has been divided into sub-questions and been concluded below.
Core 9 determined to focus on three of the ten main trends expected this year expected to shape
global consumer climate across all industries: (1) waste not, want not sustainability, (2) retail
evolution and (3) Swiss army life. Core 9 tries to inspire its clients to be more sustainable by reducing
its paper usage when promoting. As an example for this would be that Core 9 can customize the USB
cards so that they look like business cards for individuals to use to promote themselves or their
business. Another example is to be able to digitally transfer catalogues of retail businesses through
Core 9s USB cards, which are reusable and can be easily given to the clients of the retail businesses.
This leads to the second trend retail evolution as it will be important for those businesses to sell
their products through the selling experience rather than simply through their products. For this, Core
9 would be a suitable import company, because they would enhance the experience of clients by
enabling them to open music, videos, applications or entire programs stored on the USB card. Lastly,
Swiss army life speculates that youngsters are willing to pay more for a product if it proves to be
versatile, which in Core 9s case would be essential since the USB card can be used as a business
card, flyer, digital storage for i.e. a catalogue, etc.
The need that Core 9 will therefore satisfy is practicality, sustainability and attractiveness of a
promotional tool in the form of an USB card. It will differentiate itself from competitors by its emphasis
on establishing excellent client relationships customer intimacy.
The competitors analysis had shown that the key competitors in the Dutch market are
(1) Flashbay, (2) 123USB, and (3) Promo Fit. They all three have more resources available than Core
9, both capital and human resources. However, since they have been in the market for a longer
timespan, it is an advantage for Core 9 since it has the chance to look at the competition and seek
for better solutions. Through its customer intimacy, Core 9 believes to differentiate itself from the
others in a way that will persuade consumers to choose them over the competition.
The USB industry in the Netherlands is immense, making it difficult for suppliers to determine their
own price as their bargaining power is relatively low. The threat of new entrants and substitute
products are very high, because it is relatively easy to enter the market and technological
advancements are fast, making it easier for substitute products to be invented. Most importantly, Core
9 has to stand out from its competitive rivalry by its client relationship and service.
To continue with, the internal factor that could influence Core 9 is the limited level of experience the
employees have, because the market entered is new and the expertise is therefore limited. Externally,
there are more factors that could influence Core 9. The economies of scale are very limited due to its
short timespan when comparing to the competition. Core 9s success is fully dependent on the
supplier at the moment. If a delivery arrives late, there is no possibility for Core 9 to make up for this
and its image to its clients will be damaged. The technical product superiority is another factor,
because of the fast-growing technological developments. The USB card is not the most innovative
product anymore, as online clouds are becoming more popular. There is a threat that the product
might be outdated soon after a more innovative product is introduced. Additionally, the increase in
Page 28 of 41

labor costs in Asia could lead to an increase in purchasing price from the supplier, which would
influence the financials of Core 9.
The target groups of Core 9 are segmented into two main segments: businesses and individuals. The
businesses are targeted based on their size and industry. As promotion is being used in any industry,
it would not be advisable for Core 9 to minimize their focus on specific industries. Therefore, currently,
any industry will be approached. However, two of the most important factors are that the business is
not hi-tech and it is a small-medium enterprise as they usually prefer an intermediary over handling
promotion themselves. Since our product is considered rather cheap within the market, those SMEs
might consider placing an order with Core 9. On the other hand, individuals are targeted between the
age of 18 and 55 with the focus that they would like to promote themselves with a personalized USB
business card or would simply like to have a practical, multipurpose gadget with an attractive design.
This leads to Core 9s sales methods that they consider using, which are (1) their official website, (2)
the trade fair, (3) through personal selling and (4) through business cards. The marketing would be
primarily done through media channels such as the official website, Facebook, the trade fair and
through direct mail especially to businesses. Due to the segmentation, the messages among
segments will be slightly different communicated through a variety of channels to assure the
effectiveness of the communication. It will be important to update and reevaluate the effectiveness
regularly to be able to change accordingly in time before losing clients and damaging Core 9s image.
The marketing and communication techniques will follow a low-cost operation.
Following this, the finances of Core 9 are crucial to the success of the business. The selling prices
can be found in Core 9s price list (table X) which range from 2.99 to 4.95. It is hard to foresee the
exact break even point due to the range. However, when using the minimum price, the break-even
point would be at 289 units and Core 9 would expect a profit of 470. For the maximum price, the
break-even point would be at 94 units with Core 9 expecting a profit of 1450. On average then, the
break-even point is at 192 units with an expected profit of 960.
Lastly, the legal aspects that need to be taken into account for Core 9 are the trading relations
European Union (EU) has with China. The EU wants to ensure fair trade and respectfulness towards
intellectual property rights. As the USB card does not interfere with any illegal trade actions, there
should not be a legal consequence for Core 9. However, there is a risk of the supplier taking
advantage of using Core 9s logo without their approval as it is not patented, or trademarked. If the
logo becomes a vital part of the business, then it would be crucial to apply for a trademark, patent
and/or copyright in order to avoid legal consequences and a damage to Core 9s image.

Page 29 of 41

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Page 31 of 41

Appendices
Appendix I Organograms
Management Term 1

Management Term 2

Appendix II Core 9s 7S Model

Strategy (-)
The mission of Core 9 is to encourage sustainability and enhance the practicality of businesses and individuals
in a way that is acceptable to our stakeholders and in line with the core values. The emphasis is on establishing
excellent customer relationships. This incorporates the core values of Core 9 like sustainability, practicality,
attractiveness and reliability.

Structure (-)
Core 9 is a flat organization, where the nine employees are directly involved in the decision-making process.
There is a short communication channel between the employees and the CEO. There are five departments: (1)
Management team, (2) Financial, (3) Sales and Marketing, (4) Logistics and Purchase, and (5) Communications.
The focus of the marketing and sales department lies on the Dutch market and the branding towards clients,
whereas the logistics and purchase department focuses on the suppliers. In the communications department,
the focus is put on the shareholders and the supervisory team.

System (-)
The communication within the organization is mainly done informally through Facebook and WhatsApp.
However, the more formal way of communication is done through the Microsoft Outlook email accounts and al
documents are available on Dropbox. An online Excel logbook is available there, in which an overview of tasks
and workload can be found, for all employees to view. There is an informal company meeting every week to
discuss current issues, task divisions, and to set deadlines. The information systems are dependent on the
website and Facebook page, where communication with clients takes place.

Skills (+)
Core 9 distinguishes itself by their creativity and precision. Communication skills are key to Core 9s success
and makes the team work efficient. Other important skills required by the employees are flexibility, motivation,
persuasiveness and teamwork.

Page 32 of 41

Shared values (+)

The most important values for Core 9 are reliability and environmental-friendliness. This is achieved through
their extensive supplier research to select the most reliable and time-efficient supplier to avoid delivery delays,
damages done to the packages or even loss of products. The environmental-friendliness focuses on the fact that
businesses reduce their paper waste by switching to a more digital approach in sharing information, such as
catalogues, flyers and business cards.

Style (+)
The style of leadership that is adapted by the team is known to be laissez-faire. Employees have a fixed position
per management term, meaning that per year an employee experiences two positions. The work, however, is
done in teams where some employees have to step out of their positions to develop other skills and be involved
in other decisions.

Staff (+)
The employees of Core 9 are divided into 4 categories: the board of Core 9 (CEO, Timekeeper and Financial
Manager), the sales team (marketing and sales managers), the trade team (logistics and purchase managers),
and the communications team (communication and personnel manager).
The board is responsible for delegating, leading and organizing the company in a way that leads to unity and
success. The sales team is responsible for the sale and promotion of the product, in order to increase brand
awareness and sales. The trade team is responsible for ordering and purchasing from suitable suppliers and
assuring reliability and precision. The communication managers focus is on providing the right information to
the appropriate stakeholders. This involves the companys transparency and reputation among those
stakeholders. Most importantly, it also involves brand loyalty in order to retain clients. The personnel manager is
responsible for all internal communication and resolving any occurring issues within the team.

Appendix III SWOT Analysis

Strengths:
1. Language knowledge: Core9 consists of a very international team, representing a total of 7 different
nationalities. This allows the import enterprise to make use of various languages, moreover all students are
currently enrolled in either a Spanish, French or German language course.
2. Attitude/ Motivation personnel: The enterprise consists of 9 highly motivated and driven students that are
eager to make use of this opportunity to gain insight into the real business world. Efforts are made to collect the
most possible exposure, experience and knowledge while working in different management functions.
3. Company culture: In total 9 different roles have been assigned which allow each student to develop his/her
personal skills further. The different management functions are equally important and decisions are only made
after having had extensive discussions with the entire team. In the beginning a Code of Conduct was set up
which every member of the management team signed and agreed with.
4. Good relationship with supplier: Ongoing communication between the import enterprise and Shenzhen
Xinhuihe Digital Technology Co., Ltd. through different media channels. Flexibility to negotiate prices as well as
delivery terms meaning that it will be possible for Core9 to bargain.
5. Service- (Customer-) oriented: Core 9 excels in customer intimacy, being a small startup that decided to
focus on satisfying its customers rather than supplying the cheapest or most innovative products.

Weaknesses:
1. Market knowledge: Given that the import enterprise is managed by a group of students, the level of
experience as well as expertise is limited. The market that is being entered is completely new to everyone.

Page 33 of 41

2. Economies of scale: In comparison to some of the competitors, Core9 has very limited resources and only
a short time span to achieve the set objectives.
3. Flexibility: Due to the fact that the import enterprise only imports and sells one product the financial success
of Core9 is fully dependent on the cooperation with the supplier. In case of late delivery, Core9 will for example
be unable to perform its obligations towards the end customer. In order to avoid such rigid situations, agreements
regarding prices and delivery terms have been made, however only time can tell if those will be met.
4. Technical product superiority: The fast growing technological developments can be a threat to the import
enterprise as the USB Power Drive Card is not the most innovative product on the market. Online clouds are
becoming more and more popular.
5. Capital: A startup company such as Core9 has a rather limited budget in comparison to competitors within
the market. The import enterprise was set up in order to gain experience rather than make big profits in the first
place, which distinguishes it from its competitors. The equity that the company is built upon amounts to 360
and even when including the investments made by the silent partners, the total capital does not exceed 2000.

Opportunities:
1. Growing public concern about climate change/ environment: The fact that societies become more aware
of the effects that cutting down trees has on the overall climate as well as the environment, can be seen as an
opportunity for Core9. Due to the fact that using a USB Power Drive Card to store documents is a lot more
sustainable than printing.
2. Competitors vulnerabilities: Like mentioned before, the main objective of Core9 is not to generate profit but
to gain experience. Furthermore, the import enterprise does not have any assets to pay off; the management
team works for free and no buildings/ offices are rented. Therefore, the import enterprise will be able to sell the
USB Power Drive Card with a lower profit margin that its competitors.
3. Swiss army life: Globally a trend towards more self-reliance has been noticed. Studies have shown that
especially young people are willing to pay more for products that are versatile. Given that the USB Power Drive
Card can be used as a business card, flyer, storage for i.e a catalogue it can be considered to be a multipurpose
gadget.
4. Fit for misfit: Trend analyses show that mainstream brands take a back seat to more unique and personalized
brands. The USB Power Drive Card plays into this trend by allowing the clients to customize the cards according
to their needs.

Threats:
1. Competitors new products and innovation: Any new innovation regarding the storage of information that
is more advanced than a USB Power Drive Card can be seen as a threat to Core9.
2. Increasing labour costs in Asia: Due to the fact that Asian economies have been evolving quickly over the
past decade which lead to an increasing influence in the global market, they can nowadays determine the
production conditions themselves rather than having to accept offers at any price/cost. Therefore, the labour
costs in Asia have been increasing lately which could have a negative effect on the price of the final product.
3. Strong local competition: Due to the fact that many direct competitors have more than 10 years experience
within the custom made technology market, Core9 faces strong local competitors. Three of the strongest
competitors that operate within the same market are Flashbay, 123USB and Promo Fit. All of them have
considerably more resources financially but also personnel wise.
4. Change in technology: Given the many, fast changes within the technology market a threat that Core9 has
to face is the fact that the USB Power Drive Card might potentially be considered to be outdated as soon as
newer technologies enter the market.

Page 34 of 41

Appendix IV Core 9s Confrontation Matrix

Weaknesses

Strengths

Opportunities

Threats

O1
Environment
Concern

O2
Swiss
Army Life

O3
Fit for
Misfit

T1
Increasing
labor costs

T2
Strong local
competition

T3
Change in
Technolog
y

S1 Attitude/
Motivation
personnel

S2 Language
knowledge

S3 Service

W1 Market
Knowledge

W2 Flexibility

W3 Capital

Appendix V Core 9s Price List

CORE 9S PRICE LIST
Amount of units ordered

Price per card

Profit margin per card

1 - 49

4.95

2.90

50 - 99

4.09

2.04

100 - 249

3.69

1.64

250 - 499

3.39

1.34

500 or more

2.99

0.94

Appendix VI Core 9s Communication Planning

Page 35 of 41

Appendix VII Trend Analysis

The top 10 trends that are expected to shape global consumer climate across all industries this year
(Rabourn, 2016).
1. Embracing heroes: more and more people are taking it upon themselves to think about what it
means to be a good person, and to try to become everyday heroes. People share good news on
social media, 73% of adults globally say they are more inclined to share good news. Companies
can play into this by being the bearer of good news, post positive messages on social media and
be socially responsible in the publics eye.
2. Swiss army life: self-reliance has become a theme in our society. Its all about living smarter and
consumers are focused on products from which they can get greater use. 75% of US adults
younger than 35 say theyre willing to pay more for products that are more versatile. This can
translate to companies as well, especially when it comes to promotion, the product fits well with
this trend. The card can be used as a business card, flyer, storage for i.e. a catalogue etc.
3. Time poverty: so much to do, so little time. This is also part of the digital age; we want do so
much at once. The average American spends almost 5 hours on their mobile phones and almost
50% says to stay on top of social media feels like a full time job. Companies need to yet again
follow this trend by being highly active on social media.
4. The EZ life: growing technological developments. The future is now, and developments seem to
go at warp speed. This can be a threat to the company, the USB card is not the most innovative
product on the market. Online clouds are becoming more and more part of the everyday life
instead of hanging on to USBs, however they dont seem to be disappearing just yet.
5. Mindful goes mainstream: Two-thirds of consumers across the globe say mindfulness is not a fad
and over half say they make a conscious effort to disconnect from their devices. Even though
social media and phones sometimes seem to be taking over our life, people make an effort to be
les mind-full and more mindful. Companies too need to make an effort to reflect and be mindful
towards society.
6. In awe of aging: by 2050 more than 2 billion people in the world will be over the age of 60, which
is more than double than today. Companies have to take this into account as well, it changes the
dynamic and demographic of target groups.
7. Fit for misfits: today, one size fits nobody. Mainstream brands take a back seat to more unique
and personalized brands. The USB power card drive plays into this very well. Clients can choose
to customize the cards with their brand, a slogan or a logo.
8. Waste not, want not: sustainability has been a trend for more years, but it seems to be evolving
more and more. Two-thirds of US adults under the age of 35 say to favor products that are made
from recyclable content versus those that are not. The USB power card drive doesnt fit this trend
as well, it is sustainable in a way that it can be used over and over, however the materials are
not as environmentally friendly.
9. Buying into the flexible economy: freelancing is becoming increasingly normalized. Instead of
having a steady job, often creative minds opt for freelancing. Roughly half of the global
freelancers are between the ages of 26 and 35. Flexibility is thus an important factor.
10. Retail evolution: retail is no longer about the product, its about the experience. If you look for a
product there are dozens of suppliers out there. The thing that will make them stand out and will
keep the customers coming back is their service. The company will have to personalize the
shopping experience as much as it possibly can.
Page 36 of 41

Appendix VIII In-depth Option Matrix Analysis

First combination: O1 S3
Criterion 1: Suitability. Does it solve the core problem?
By combining the strength customer orientation with the trend for sustainability, the core problem
which is finding the best possible way to fulfill our customers needs by importing USB Power Drive
Cards and selling them on the Dutch market. By focusing on this strength and proving it to the
customers, Core9 could gain popularity and trust and thus enter the Dutch market successfully.

Criterion 2: Feasible (FOETSLE)

1

Generally speaking, Core9 has limited resources. However, good customer service does not require
a lot of funding. Additionally, the customer satisfaction will be in the hands of the management team
which will not be financially rewarded.

Given that the mission statement of Core9 indicates that sustainability is one of our main focus
points, the strategy of combining sustainability with the companys good customer service, is in line
with the organization.

The objectives of the organization will be met given that the message is received and understood,
and Core9 will be able to successfully act on its mission and vision

From a technical point of view, no changes have to be made in order to combine the mentioned
strength with the opportunity.

Given that sustainability is one of the most trending issue worldwide, the strategy is socially
acceptable.

There are no legal problems concerning this combination.

Given that Core9 will be promoting the importance of environmental friendliness in the process of
implementing the mentioned strategy, the strategy itself can be considered ecologically sensible.

Table 6: Feasibility of Option 1

Criterion 3: Results and Risks

By focusing on the customer intimacy and responding to the trend of sustainability, Core9 is likely to
sell more USB Power Drive Cards as the message behind the company becomes clear to a wider
audience. There are no big risks attached to this strategy.

Second combination: O2 S3
Criterion 1: Suitability. Does it solve the core problem?
Emphasizing the trend towards versatility and multipurpose devices, when working on establishing a
leadership position regarding the customer intimacy could be very beneficial for Core9. However, it
will not necessarily make it easier to enter the Dutch market successfully due to the fact that
competitors might offer even more versatile products.

Page 37 of 41

Criterion 2: Feasible (FOETSLE)

F

Given that Core9 puts emphasis on the multipurpose functions of the USB Power Drive Card, the
strategy of combining versatility with the companys good customer service, is in line with the
organization.

The economic objectives of Core9 could be met if the customers see the versatile purposes of the
USB Power Drive Card and therefore makes a purchase.

From a technical point of view, no changes have to be made in order to combine the mentioned
strength with the opportunity.

The opportunity (Swiss Army Life) is described as one of the most popular trends of the upcoming
year which makes the strategy socially acceptable.

Due to the fact that there are no financial obligations involved, the customer satisfaction will be in
the hands of the management team which will not be financially rewarded.

There are no legal concerns in this combination.

L

By implementing the strategy Core9 will not harm or affect the environment.
E

Table 7: Feasibility of Option 2

Criterion 3: Results and Risks

By focusing on the customer intimacy and responding to the trend of versatility, Core9 is likely to sell
more USB Power Drive Cards as the message behind the company becomes clear to a wider
audience. There are no big risks attached to this strategy, however chances are that some consumers
might not see the product as a versatile gadget.

Third combination: O3 S3
Criterion 1: Suitability. Does it solve the core problem?
Core9s strength of excelling within the field of customer intimacy in combination with the 2016 trend
which indicates that the public will strive towards customized products, will fit with the value strategy.

Criterion 2: Feasible (FOETSLE)

F

This strategy does not involve high costs, however it requires a high involvement of Core9
throughout the production process to ensure the customized designs will be carried out in
accordance with the customer expectations.

Organizationally the strategy requires lots of communication and high control by Core9 throughout
the entire production process. The implementation is organizationally possible in case of good
communication with the supplier.

Core9s economic objective to break even before June 1 can be met by implementing the strategy,
because trends have indicated that there is a high demand for customized products among the
public.

This plan does not require additional technologies.

If one looks at the trends of 2016, they indicate that the strategy is socially acceptable.

st

Page 38 of 41

There are no legal problems concerning this combination.

By implementing the strategy Core9 will neither harm nor affect the environment.

Table 8: Feasibility of Option 3

Criterion 3: Results and Risks

By focusing on the customer intimacy and responding to the trend of customization, Core9 is likely to
sell more USB Power Drive Cards as the message behind the company becomes clear to a wider
audience. The enterprises idea to sell a customized product arose when first establishing the
business, therefore the strategy has been indirectly implemented already.

Appendix IX Core 9s Master Budget

CORE 9

Financial manager: Jill van der Knaap

Introduction
Core9 is a just established business of 9 young, innovative and excited
students from the Rotterdam Business School. We strive for success by selling
an innovative gadget to the public. We chose the USB business card as our
product to sell, since it had the preference from most respondents in our
market research report. Core9 wants to focus both on business-to-business as
well as individual customers. We want to be the intermediary for small- and
larger businesses to provide them with the benefits of promotional materials.

Basic information
Selling price (s)
Estimate units (q)
Purchasing price (p)

Masterbudget

4,09 In this financial report we will discuss 5 main elements. 1. The Beginning
1000 balance sheet 2. The Budgeted income statement 3.The Cash flow statement
1,61 4. The Ending balance sheet and 5. Questions. *These figures are estimates
Excl. VAT

Beginning balance sheet

Beginning balance sheet
January-June 2016
VAT
Cash/Bank
Total

1,39 Equity
1.426,55 Result/loss
1.427,94 Total

Information
Units (q)
1000
Selling price (incl. VAT)
4,95
Selling price (excl. VAT)
4,09
VAT
0,86
Loss (incl. VAT) 173,45
Loss (excl. VAT)
172,06
VAT
1,39

1.600,00
-172,06
1.427,94
Fig. 1

Fig. 2

Ex. Notes: The beginning balance sheet states the contribution on equity for Core9.
These include contributions from third parties and exclude our own investments(9x40).
The loss is a result of the transport costs(170,25) of the products and costs for the bank account(3,20).
These are the early costs of Core9.(Fig. 1)
Ex. Notes: The average selling price is 4,95 incl VAT 21%. Units= 1000. Excl. VAT: Expl. Notes: The high transport costs are due to the import of USB
100/121x4,95= 4,09. VAT: 4,95-4,09= 0,86. (Fig. 2) Loss incl. VAT amounts to cards from China based on the Chinese transport service website.
(Fig.1)
173,45. VAT amounts to 1,39 due to printing costs. (Budgeted income
statement Fig. 4) (Fig.2)

Budgeted income statement

Page 39 of 41

Budgeted income statement

January-June 2016
Sales revenu
Cost of sales
Gross profit
Other costs:
Printing costs
Import duties
Transport
Other costs
Total costs
Total (GP-TC)

4.090,91
1.611,57
2.479,34
6,61
456,17
162,25
3,20
628,23
1.851,11
Fig. 3

Information
Description

VAT

Printing costs
VAT
Transport NO VAT
Other costsV AT
Import duties
VAT

Excl. VAT
21% 6,61
21% 456,17
Fig. 4

These include contributions from third parties and exclude our own investments(9x40).
The loss is a result of the transport costs(170,25) of the products and costs for the bank account(3,20).
These are the early costs of Core9.(Fig. 1)
Ex. Notes: The average selling price is 4,95 incl VAT 21%. Units= 1000. Excl. VAT: Expl. Notes: The high transport costs are due to the import of USB
100/121x4,95= 4,09. VAT: 4,95-4,09= 0,86. (Fig. 2) Loss incl. VAT amounts to cards from China based on the Chinese transport service website.
(Fig.1)
173,45. VAT amounts to 1,39 due to printing costs. (Budgeted income
statement Fig. 4) (Fig.2)

Budgeted income statement

Budgeted income statement
January-June 2016
Sales revenu
Cost of sales
Gross profit
Other costs:
Printing costs
Import duties
Transport
Other costs
Total costs
Total (GP-TC)

4.090,91
1.611,57
2.479,34
6,61
456,17
162,25
3,20
628,23
1.851,11
Fig. 3

Ex. Notes: The budgeted income statement is excl. VAT .

The VAT on import duties can be claimed back by tax authorities.
Ex. Notes: The buying price of 1,95 is incl. VAT. Payments amount to
1,95x1000=1950. COS 100/121x1950=1611,57. (Fig.3)
Ex. Notes: Costs for bank account (other costs) are excl. VAT. Printing
money is 8,- incl. VAT. 100/121x8=6,61 excl. VAT. VAT amounts to 86,61=1,39 (Fig. 4)

Cash flow statement

Cash flow statement
January-June 2016
Receipts from:
Equity
Sales
Total receipts (a)
Payments due to:
Purchases
Import duties
Printing costs
Transport
Other costs
Total payments (b)
Net receipts (a-b)
Ex. Notes: The cash flow statment is incl. VAT
Ex. Notes: Sales: 4,95x1000=4950. Purchases
1,95x1000=1950. Net receipts= Cash/bank Ending
balance sheet.

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1.600,00
4.950,00
6.550,00
1.950,00
551,97
8,00
162,25
3,20
2.675,42
3.874,58

Information
Description

VAT

Printing costs
VAT
Transport NO VAT
Other costsV AT
Import duties
VAT

Excl. VAT
21% 6,61
21% 456,17
Fig. 4

Ending balance sheet

Ending balance sheet
30-6-2016
Inventory
Cash/Bank
Total

Equity Jan 1st

VAT payable
3.874,58 Profit/Loss
3.874,58 Total

1.600,00
423,47
1.851,11
3.874,58
Fig. 5

Ex. Notes: At the ending balance sheet inventory should be 0.

If at enddate inventory isn't 0, the unsold products must be written
off.
Ex. Notes: VAT to pay 21/121x4950= 859,09. (Fig. 6) Profit according to
balance sheet: 3874,58-(1600,00+859,09)=1851,11. Balancing VAT: 859,09435,62=423,47.(Fig.5) The profit/loss is the difference in total. 3874,58(1600,00+423,47)=1851,11. Added up makes: 3874,58.

Information
VAT to claim
VAT to be paid
Balanced VAT

435,62
859,09
423,47
Fig. 6

Questions
How much are we paying our silent partners?
We are paying 8% of our profit to our silent partners per share. This amounts to 1851,11x0,08/81=1,83 per share.
How much are we paying per managing partner?
1851,11x0,08=148,09. 1851,11-148,09=1703,02 left to divide amongst managing partners. 1703,02/9= 189,22 per managing partner.
Return on Investment as a %?
1,83/20x100%=9,15% shareholders return on investment
What will we do with the unsold products?
We will set up contracts with our customers before the actual order will take place to ensure our financial status and to protect ourselves
against last minute order cancels. If at the end date we still have products left, we will divide them amongst the managing partners and sell
them individually.
Break-even point?
172,06 are the total costs. Profit per product amounts to 1851,11/1000= 1,85. 172,06/1,85= 93,01--> 94 products.

Page 41 of 41