4 1 Market Segmentation Dreamnet S Customers example essay topic

1.0 Executive Summary DreamNet, unlike a typical caf"|, will provide a unique forum for communication and entertainment through the medium of the internet. DreamNet is the answer to an increasing demand. The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) access at a cost they can afford and in such a way that they aren! t socially, economically, or politically isolated. DreamNet!'s goal is to provide the community with a social, educational, entertaining, atmosphere for worldwide communication. This business plan is prepared to obtain financing in the amount of $24,000.

The supplemental financing is required to begin work on site preparation and modifications, equipment purchase, and to cover expenses in the first year of operations. Additional financing has already been secured in the form of: (1) $24,000 from the Oregon economic development fund (2) $40,000 of personal saving from owner Jiamin Liu (3) and $9,000 in the form of short-term loans. 1.1 Objectives DreamNet!'s objectives for the first three years of operation include: The creation of a unique, upscale, innovative environment that will differentiate DreamNet from local coffe house. Educating the community on what the Internet has to offer. The formation of an environment that will bring people with diverse interests and backgrounds together in a common forum. Good coffee and bakery items at a reasonable price.

Affordable access to the resources of the Internet and other online service. 1.2 Mission As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. DreamNet provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that DreamNet provides. 1.3 Keys to success The creation of a unique, innovative, upscale atmosphere that will differentiate DreamNet from other local coffee shops and future Internet cafes.

The establishment of DreamNet as a community hub for socialization and entertainment. The creation of an environment that won! t intimidate the novice user. DreamNet will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer. Great coffee and bakery items.

1.4 Risks Will there be a demand for the services offered by DreamNet in Sydney? Will the popularity of the internet continue to grow, or is the internet a fad? Will individuals be willing to pay for the service DreamNet offers? Will the cost of accessing the internet from home drop so significantly that there will not be a market for internet caf"| such as DreamNet?

2.0 Company Summary DreamNet will be located in Sydney!'s Chinatown, will offer the community easy and affordable access to the internet. DreamNet will provide full access to email, , FTP, usenet and other internet applications. DreamNet will also provide customers with a unique and innovative environment for enjoying great coffee, specialty beverages, and bakery items. DreamNet will appeal to individuals of all ages and backgrounds. The instructional internet classes, and the helpful staff that DreamNet provides, will appeal to the audience that does not associate themselves with the company age.

This educational aspect will attract younger and elderly members of the community who are rapidly gaining interest in the unique resources that online communications have to offer. The location will provide students and business people with convenient access to the online needs. 3.0 Service DreamNet will provide full access to email, , FTP, usenet and other internet applications. Printing, scanning and introductory courses to the internet will also be available to the customer. 3.1 Competitive Comparison DreamNet will face some competitions in Sydney, but DreamNet will differentiate itself from the other internet cafes by providing its customers.

3.2 Technology DreamNet will invest in high-speed computers to provide its customers with a fast and efficient connection to the internet. The computers will be reliable and fun to work with. DreamNet will continue to upgrade and modify the systems to stay current with communications technology. One of the main attractions associated with internet cafes, is the state of the art equipment available for use. 4.0 Market Analysis Summary DreamNet is faced with the stronger competitions in the Sydney cyber-caf"| market.

Therefore, the consistent popularity of coffee, comfortable atmosphere, combined with the growing interest in the internet, is confident to be a winner among the competitors. 4.1 Market Segmentation DreamNet!'s customers can be divided into two groups. The first group is familiar with the internet and desires a progressive and inviting atmosphere where can get out of their offices or bedrooms and enjoy a great cup of coffee. The second group is not familiar with the internet, yet, and is just waiting for the right opportunity to enter the online community. In addition to these two broad categories, DreamNet!'s target market can be divided into more specific market segments which are students and business people.

4.2 Target Market Segment Strategy DreamNet intends to cater to people who want a guided tour on their first spin around the internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, DreamNet will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. DreamNet!'s target market covers a wide range of ages: from members of generation x who grew up surrounded by computers, to baby boomers who have come to the realization that people today cannot afford to ignore computers. 5.0 Strategy and Implementation Attract novice internet users Attract power internet users Social hub 5.1 Pricing strategy DreamNet bases its prices for coffee and specialty drinks on the! ^0 retail profit analysis! +/- provided by our supplier. Determining a fair market, hourly price, for online use is more difficult because there are stronger competitions, maybe the price for internet is cheaper than others in order to attract more customers.

5.2 Promotion Strategy DreamNet will implement a pull strategy in order to build consumer awareness and demand. Initially, DreamNet has budgeted $5,000 for promotional efforts which will include advertising with coupons for a free hour of internet time in local publications and in-house promotions such as offering customers free internet time if they pay for an introduction to the internet workshop taught by DreamNet!'s computer technician. 5.3 Sales Strategy As a retail establishment, DreamNet employs people to handle sales transactions. Computer literacy is a requirement for DreamNet employees.

Our full-time technician is also available for customers in need of assistance. DreamNet!'s commitment to friendly, helpful service is one of the key factors that distinguishes DreamNet from other internet cafes. 6.0 Management Summary DreamNet is owned and operated by Jiamin Liu. The company, being small in nature, requires a simple organizational structure. Implementation of this organizational form calls for the owned, Miss Liu, to make all of the major management decisions in addition to monitoring all other business actives. 6.1 Personnel Plan The staff will consist of six part-time employees working thirty hours a week at $8.00 per hour.

In addition, one full-time technician will be employed to work forty hours a week at $10.00 per hour. This simple structure provides a great deal of flexibility and allows communication to disperse quickly and directly. Because of these characteristics, there are few coordination problems seen at DreamNet that are common within larger organizational chains. This strategy will enable DreamNet to react quickly to changes in the market.

7.0 Break-even analysis Break-even Analysis: Monthly Units Break-even 4,923 Monthly Revenue Break-even $12,461 Assumptions: Average Per-Unit Revenue $2.53 Average Per-Unit Variable Cost $0.50 Estimated Monthly Fixed Cost $10,000.