The is a business venture that has shown significantgrowth over the years. Born out of a simple idea, the venture hasshown step by step improvements throughout the years. Though faced bychallenges such as seasonal markets, lack of capital among others thecompany has been progressing well. The company’s objectives such asdesign and manufacture of standard fishing rods as well asmaximization of profits have been the driving force. In that respect,this paper will give an analysis of the market i.e. size of marketand trends within the market among others. As evidenced form theventure, the range of market is quite broad since fishing is viewedin several aspects like a recreational activity. The revenuesattained through fishing are also quite sizeable owing to the widescope of the market.
Forany business to sustain itself in the competitive world, determiningand sharpening of weaknesses and improving on existing strengths arevital aspects. CAR had to determine where its strength lay and how totake advantage of certain weaknesses in the markets. CAR boasts ofsome unique features that make them different from any othermanufacturers. The ability to catch all types of fish of up to 27kgsis one unique aspect. Finally, entailed in this paper arerequirements, expected outcomes among other business model aspects.
Themain issue that needs to be tackled is the capital required to kickoff this business venture. CAR requires sufficient funds to be ableto pay personnel and also the import customs as well as buy rawmaterials for manufacturing and the acquisition and transportation ofthe fishing rods.
Thefact that small scale fishermen are distributed throughout the regionindicates that reaching the maximum possible buyers is not an easytask. It would require a lot of patience and marketing to be able toachieve bigger sales
Fishingrods limited to specific localities
Itwas identified that in other parts of the country, there arecompanies which supply fishing rods and they are already establishedwithin certain regions. Competing with these companies andoverthrowing them may not be an easy task to perform.
Duringthe winter season, fishing in general is not practiced in arelatively large scale. Therefore sales during this period areexpected to decline considerably until the
TheCAR Company specializes on manufacture and distribution of fishingrods that are both locally manufactured and also imported from othercountries. The main objectives of CAR include the design of fishingrods that are standard and can be able to serve fishermen all overthe country.
Bydesigning fishing rods that are of desirable quality, CAR will focuson ensuring that fishermen are able to catch fish of different typesand sizes and weights without any major setbacks whatsoever. Theefficiency had already been proven by local fishermen who tried therods.
Basedon the data provided by American sport fishing association, there isa total of 30 million fishermen. CAR seeks to reach and providefishing rods for the maximum possible number of these fishermen at agood price.
Inaddition, the company also aims to supply the market with otherfishing accessories other than the fishing rods as a means ofexpanding the scope of sales, maximize profits and increase theprofit margins to the highest attainable figures possible
Asper the 2006 reports, the rods market was worth around$2,239,190,427. This accounted for 50% of the market share. Smallscale rod manufacturers were situated all over the country though insmaller capacities. In most cases, they operated seasonally dependingon weather patterns among other factors. Medium and large scalemanufacturers covered most of the supplies with most of themdistributing imported rods from Japan, China and Europe. Though smallscale manufacturers were making substantial sales, they were still ata disadvantage with respect to the large scale manufacturers [ CITATION USA11 l 1033 ].
Statisticsfrom the American Sport Fishing Association, affirmed that fishinggenerated roughly $45 billion in sales. Additionally, over onemillion individuals were employed from the same. Research also rankedfishing at number 47 out of 500 among the largest companies withinthe U.S if considered as a corporation. Fishing expenditures werequite lucrative i.e. roughly $5.3 billion utilized on fishing toolsand another $2.2 billion on fishing reels, rods and other components.Fishing can also be viewed from a recreational perspective. In thatmanner it ranks at position 7 out of 45 leisure activities behindbowling, camping, exercising, swimming, walking and cycling. Ittherefore presents a wide scope of market, with high chances ofmaking profits [ CITATION Ibi12 l 1033 ].
Inaccordance to market research, the number of large scalemanufacturers was quite limited. In fact, most of the large scalemanufacturers available sold imported goods. In that aspect, localmade fish rods and other equipments was still underutilized. Localmanufacturers restricted their products to meet local conditions.Technological advancements also presented a major avenue to boost thesales as well as improve on quality. With most manufacturers fromaround the globe marketing their products, the quality would alsoimprove. All in all, the size of fishing market is considerableenough to venture in.
CAR’sstrengths and weaknesses
Thekind of fishing rods made by Conner seemed to be unique. This isbecause he managed to catch more fish than any fisherman under anycircumstance while using it. In that respect, uniqueness of thefishing rod ought to be an exploitable strength. Across the States,most of the large scale manufacturers sold imported rods among otherfishing equipment in the sense that it fetched much profit. Localmade rods were limited to the local community. CAR could exploit thisaspect by manufacturing flexible fishing equipment utilized acrossthe States.
Themajor challenge facing CAR include, advertisements. Advertising thegoods to large scale manufacturers as well as fishermen from otherSates proves to be quite challenging. Fishing across the States isalso seasonal. This implies that the business ought to be mobiledepending on the seasons. For instance, during winter seasons, thesales were quite low.
Thefact that fishing can be viewed in many aspects such as arecreational activity among others makes the market quite broad.Fishing as portrayed by researchers has great potential, owing to thefact that it fetches quite considerable amounts of revenue. CAR oughtto exploit on this by targeting a wider range of market.Additionally, CAR should ensure it ventures in all aspects concerningfishing. Apart from making fishing rods owning fishing boats,fishing reels among other fishing equipment could yield substantialgains. By centralizing their products and services, the markets couldimprove accordingly.
Thegrowth of his business over the years must give Conner hope ofsucceeding in the same. From single handedly managing all aspects ofthe business to employing workers in various departments, thebusiness was enjoying substantial growth. That is a major strengththat could act as a psychological motivator.
STATEMENTOF CATCH-ALL RODS
CARCompany has specialized in the manufacturing of fishing rods withproven effectiveness by fishermen who have tried it. This is becauseof the unique features of the rods which allow for fishing in anylocation and condition. In addition, the CAR rod has been designed tocatch all kinds of fish up to 27 kilograms either in fresh water andsalt water conditions. This is an effective strategy that is alsocost effective to fisherman who would have to carry more than onefishing rod on different conditions [ CITATION Ric l 1033 ].
TheCAR rods have also been patented by Patent and trademark office for aperiod of twenty years thus preventing others from making using orselling the rods without authorization from CAR. Contrary to othercompanies which import rods and sell to wholesalers, CAR companiesboth imports fishing rods but also provides locally manufactured rodshence providing a diversified product range which is a recipe ofincreased number of sales. In addition, while most companies sellfishing rods in combination packs of light, medium and heavy dutyrods, this company sells individual rods to people who want singlerods and later on provide combos to those customers who would wantthem. Other fishing accessories will also be included to furtherwiden the product range. The key strategy here is to meet the clientspecific needs in a manner that does not require them to spend morethan they would want to.
Byfocussing on wholesalers, the price that CAR will sell the fishingrods is quite cheaper and therefore, the wholesalers will put a pricetag on the rods which will also be competitive to encourage moresales from retailers and individuals.
Firstand foremost, the business requires good personnel who would beworking to ensure quality production, financial management andadministration as well as marketing the fishing rods. A companywebsite that has all the details concerning the efficiency andavailability of the rods and also ability to order the rods onlinecan be incorporated.
Toclear the imported fishing rods from customs, CAR would also need acustoms broker from customs
Fundingrequirements – 125,000 USD
Costof 1 fishing rod to CAR – 100 USD
Wholesaleprice – 200 USD
Estimatedprofit per fishing rod – 100 USD
Expectedsales – 550,000 rods over a period of 3 years
Percentage of Sales
Number of fishing rods
Theprogressive increase in the number of sales will be as a result ofbrand recognition and adaptation of the brand to the market. More andmore wholesalers would receive increased demands from both retailersand clients which translated to increased demand and sales of morefishing rods gradually.
Asindicated, profit increase will be progressive over the years from25% to 45%. Profit that has been generated will be used to improvethe company image as well as improve the company’s attraction whichis a market strategy on its own and also a platform for efficiency insales.
Itis important however to note that other expenses including payment ofpersonnel, procurement of other accessories and any othermiscellaneous activities have not been included in the profitprediction. However materials that constitute the fishing rods areincluded in the cost of the rods (100 USD)
Ibid. (2012, January 11). Sports Fishing America. Retrieved October 26, 2015, from Sports Fishing America: http://www.asafishing.org
ivey, R. (2012, January 15). The benefits to business from hunting and fishing excise taxes. Retrieved October 26, 2015, from The benefits to business from hunting and fishing excise taxes: http://www.asafishing.org
Ivey, R. (2012). The Fish Whisperer. The Fish Whisperer , 1-12.
Types of patents. (2012, January 17). Retrieved October 26, 2015, from Types of patents: http://www.uspto.gov/patdesc.htm
US Anglers. (2011, January 15). Top 5 fish species. Retrieved October 26, 2015, from Top 5 fish species: http://www.asafishing.org