Seachange technology plan Essay Example

strategic direction. We strive to become the industry leader in providing electronic safety devices for marine adventures while prioritizing environmental protection. Our promotional strategy includes direct mail, magazine advertisements, website advertisements, sponsorship, and association.

Quality control is our primary concern; therefore we will implement quality control systems such as audits,certification,and meeting Australian regulatory standards.We aim to provide the highest level of protection without causing harm.Seachange Technologies places a strong emphasis on their wide range of products and dedication to preserving the marine environment. Their goal is to achieve customer satisfaction, maintain high manufacturing standards, protect customers, and preserve marine life. They also prioritize providing favorable job opportunities and working conditions for employees, fostering a positive organizational culture. Furthermore, the company is strongly committed to fulfilling its corporate social responsibility by protecting marine wildlife in Australia.

From a financial perspective, Seachange Technologies aims to attain maximum market share within the first 5 years and achieve market saturation within the subsequent 5 years (refer to section 6.5). As sales decline over time due to the product's 20-year lifespan, production and expenses will be reduced in Australia while expanding globally. The necessary capital for this expansion will come from profits generated in the Australian market.

Accordingly, according to the text they initially have $840,000 as capital with an expected annual net income of $5.4 million during the first 5 years. After that period, profitability is projected to decrease over the next 5 years. The loan taken out will be repaid within those initial 5 years.Seachange Technologies is a leading company in advanced technology and highly skilled engineers. They have created a product that offers complete shark protection while being safe for

marine life and user-friendly for swimmers and divers. This product improves safety in water sports, giving peace of mind to individuals, families, and employees.

In terms of situational analysis, Seachange Technologies is the sole manufacturer of electronic shark deterrents in the industry. This unique position provides opportunities as there are no direct substitutes to compete against. However, there is also a potential threat from new competitors entering the market. Further details on this topic can be found in Appendix 1.

The following section will discuss the strengths, weaknesses, opportunities, and threats within the marine sporting equipment industry. The exclusive nature of Seachange Technologies' product concept showcases their strategic development efforts. Nevertheless, additional research and communication are needed to strengthen relationships with retailers and direct customers (refer to Appendix 3).

Within the marine sporting equipment industry where Scuba Shark Shield operates as a wholesaler, it has been observed that the industry has a value exceeding $656.3m (ABS 2007). On average, scuba divers spend approximately $1253 annually on scuba diving activities.In terms of competition, our organization currently remains unparalleled as a licensee of Shark Shield technology. However, we do face competition in various methods of protection against shark attacks. These methods include the controversial shark gun, which is a device that releases a spear upon attack and results in the death of the animal. The US Navy has previously used gas injection projectiles to immobilize sharks (E.S. Organs, 2006, p27). In Australia, barrier strategies have gained popularity but are only suitable for coastal areas and not specifically designed for scuba divers. Meshing was invented in Australia in 1937 (Fisheries Scientific Committee, 2004, 2) and kills sharks by tangling them up

and cutting off their oxygen supply, ultimately causing their demise. While effective at preventing shark attacks, this method also leads to the deaths of many sharks.

To stay ahead in this competition landscape, our company has undergone significant development efforts to create electronic shark deterring products. This includes establishing a new factory for manufacturing the Scuba Shark Shield and investing in future research and development endeavors. To meet production requirements, additional workers will be recruited under existing management structures.A study was conducted on a diving customer base consisting of 300,000 clients in the United States to gain an understanding of their demographics and lifestyles. The results revealed that 76% of participants were males, with 80% holding white-collar positions in professional or technical management roles. These findings indicate similar trends within the Australian target market.

Our company also conducted an independent study that aligns with the macro research findings (see appendix 4) and provides initial insights into potential consumers. One of our key selling points is that our product does not harm sharks in any way. Research conducted during the development stages showed that while the Shark Shield may cause temporary discomfort to sharks, it effectively prevents long-term harm. Additionally, our product supports the efforts of the Australian government in protecting endangered shark species.

Seachange Technologies has identified scuba divers as its target market, with approximately 45% expressing some level of fear towards sharks (refer to Appendix 4). It has been determined that about 50% of this market would be interested in purchasing our product. As a result, our company aims to achieve a market share of 40% over ten years and a share of 30% after five years,

taking into consideration potential new competitors entering the market and recognizing our first-mover advantage.Once we have reached saturation point in the local market, our plan is to expand into international markets. Our target market primarily consists of active Australian scuba divers who belong to a specific segment (refer to Appendix 4). Initially, we will focus on Brisbane, Sydney, and Melbourne as these cities have over one million residents each and approximately 35,000 scuba divers according to the Australian Bureau of Statistics (2007). These divers are mainly located in urban areas. The target market for our new line includes approximately 70% males and 30% females aged between 25 and 60 with a minimum education level of twelfth grade or a university degree. Their household income exceeds $80,000 per year and they do not have children. Psychographically, they are generally middle or upper-class individuals who prioritize quality over price. They regularly participate in sports activities and value well-known brand names. One advantage for us is that there are no comparable products in the market for our new line, making it unique. Our innovative technology effectively prevents sharks from approaching users within a specific radius and has a zero shark death rate unlike indirect competitors, which sets us apart as an alternative option.The Shark Shield is a user-friendly and portable device that maintains high-quality standards. Its marketing strategy positions it as a reliable protection device for scuba divers, aligning with Australian government protection policies outlined in the Environmental Protection and Biodiversity Conservation Act of 1999. This act recognizes the critically endangered status of the Grey nurse shark and the vulnerable status of the great white shark. The positioning

strategy of the Shark Shield focuses on its high-quality technology, reliability, and safety features, providing immediate benefits to consumers. It is part of a unique product line created by Seachange Technologies that aims to evoke positive emotions in the market. These products stand out from competitors' offerings with their distinctive and captivating designs, attracting novice scuba divers. At the core of this product line is the Scuba Shark Shield, which incorporates special features prioritizing environmental preservation while enhancing the scuba diving experience and ensuring consumer satisfaction. Seachange Technologies also demonstrates its dedication to preserving the environment through packaging made from recycled materials for their products.Seachange Technologies relies on recommendations from retail merchants and direct communication with customers rather than extensive packaging. Effective labeling, highlighting key benefits such as battery life, and providing a brief overview of the technology are crucial elements in their packaging strategy.
The promotional plan of Seachange Technologies aims to achieve two main objectives: gaining acceptance for new products and increasing sales. Various advertising techniques will be employed to promote the Shark Shield brand, including specialized industry journal and magazine advertisements, online promotion, and television advertisements to a lesser extent. Magazine advertising is emphasized due to Australia's growing trend in this area. According to Magazine Publishers of Australia (2007), 8 out of 10 Australians read at least one magazine, with readership increasing by 6.4% in the past five years. A study conducted by MPA (2007) revealed that magazines and the internet have natural synergies in advertising.
For promoting their Scuba Shark Shield product, Seachange Technologies plans to use below-the-line publicity methods such as scuba diving exhibitions, trade show appearances, and direct contact with scuba

diving charter companies. The company's product development strategy focuses on targeting existing consumers of marine sports equipment.Seachange Technologies aims to create an enhanced version of the Shark Shield specifically designed for scuba diving. The company will act as a distribution channel for retail shops in three Australian capital cities, selected based on research showing a significant number of scuba divers reside in those areas. The goal is to expand the distribution network across every state within five years. Customers can also purchase the Scuba Shark Shield directly from Seachange Technologies' website. Distribution will be handled through the main warehouse at the Port of Brisbane, with transportation services provided by Toll Logistics and Vic Express for Queensland and NSW, and Victoria respectively. This is feasible due to the product's lightweight and small size.
To ensure fixed gross profits and better cost control, Seachange Technologies will implement a cost-plus pricing strategy, aiming to keep industry expenditure under $750 for the Shark Shield. Each unit's price is determined by a development cost of $600 plus a 25% markup based on standard figures provided by The University of Tennessee (K. Wolfe, 1999, 1). According to Appendix 4, approximately half of the study participants emphasized product quality over price or value, indicating relatively inelastic demand for the product.We are confident that our product price is aligned with consumer willingness to purchase in our target market. The financial data and projections for our business include expense distribution and initial expenses. We estimate that establishing the business will require a total capital investment of $840,000. This includes costs for construction ($500,000), land acquisition, equipment fees, brand development, and graphic design.

Our facility and warehouse

will be located near the Port of Brisbane, providing access to interstate transportation services and international export opportunities. We will also utilize the storage service offered by the Port of Brisbane. The cost of equipment and machinery needed to build the Scuba Shark Shield is $100,000. Additionally, there are various fees associated with copyright registration and other legal matters amounting to $20,000.

To establish a professional brand image for our range of Shark Shield products, we will hire a design team at a cost of $20,000. The annual operating expenses required for running the business initially total $900,000. This includes salaries for staff members, utility costs, marketing expenses,
loan repayments, and interest.

These expenses may vary each year but are anticipated to gradually decrease over time.
Each unit sale of the Shark Shield generates a gross profit of $150. This is determined by deducting
the development cost from its sale price (refer to section 5.5).In Australia, there are currently over 700,000 scuba divers who spend an average of $1253 per year on scuba diving activities (EIED, 1997; ABS, 2003). This makes it one of the most expensive sports. Our plan is to sell the Shark Shield for $750, which is expected to last for 20 years and only add 3% to the overall cost of scuba diving activities.

Our projected market penetration rates are as follows: 30% over the first 5 years and 40% over the first 10 years. Seachange Technologies aims to capture a 30% market share in the first year, resulting in 59,500 sales. With a profit margin of $150 per unit sold, we estimate an annual gross profit of $8.9 million in the first year.

It's important to note

that although the net profit will decrease each year until stabilizing after 10 years, it will always remain profitable. The expected net gross is shown below.

The success of Seachange Technologies' product heavily relies on executing our promotional agenda. Figure 7.3 displays a four-phase schedule aimed at developing an effective execution strategy (as seen in Figure 7.1). We will launch advertising, direct selling, and magazines from November 4th to November28th,2007 with a reintroduction planned after a four-month break.

Our promotion initiatives include sending direct mail to scuba diving schools to spread our brand name and paid magazine articles and advertisements to generate sales and brand awareness.(Section reference: section7.3)Scuba diving event sponsorship is used by Seachange Technologies to create brand awareness. The company also establishes partnerships with sales websites like Amazon.com to capture the online sales market. In addition, classified advertisements are placed in newspapers.

Seachange Technologies prides itself on its commitment to maintaining high levels of control and evaluation methods. The company places a strong emphasis on extensive quality control, risk analysis, and evaluation processes. Total Quality Management (TQM) is an ongoing process within the company, strictly adhering to Australian standards and regulations.

To ensure compliance, employees meticulously check 1 out of every 5 Shark Shields for accurate design, functionality, and technical features. Progress is continuously documented through audits conducted by team leaders and management to improve the quality of all production.

In terms of hazard analysis, Seachange Technologies has implemented a 24-hour security system at the Port of Brisbane warehouse for safeguarding purposes. Insurance policies are also in place to cover any potential loss or damage incurred by equipment, vehicles, or the warehouse itself. Furthermore, machinery used by employees

has an automatic shutdown feature prioritizing employee safety should malfunctions occur.

Employees in the warehouse must wear steel-capped boots and safety glasses as needed. Seachange Technologies keeps a record of receipts to ensure proper purchasing procedures are followed.Evaluation analysis primarily focuses on meeting sales and market share expectations outlined in section 6. Sales analysis is conducted every 6 months, with the promotion budget adjusted accordingly. Additionally, the organization ensures excellence by conducting key performance indicator assessments for all employees. To meet deadlines, the company regularly reviews its promotional agenda every three months.

The sources mentioned for information access include Fisheries Scientific Committee, Australian Government Department of the Environment and Water Resources, International Shark Attack File, Florida Museum of Natural History, Wolfe's article on getting a food product to retail, Magazine Publishers of Australia's Media Matchmaker, and Scuba Australia's Scuba Dive Centres. Access to information from these sources is available via the provided hyperlinks.

Catalogue 4156.0 - Sports and Physical Diversion: A Statistical Overview, Australia, 2007 Edition 1 (last accessed September 28, 2007) Natal Sharks Board, 2007 Electrical Shark Repellent (accessed August 30th , 2007) Variety meats (E.S., Shark Attack Awareness), Strategic Market Management (David A. Aaker), The Port of Brisbane (Port of Brisbane), Ocean Facts and Figures (EIED), Scuba and Outdoors (Amazon)