Business Proposal

Topics: Marginal cost, Costs, Marketing Pages: 5 (1587 words) Published: July 15, 2013
Business Proposal

July 1, 2013

Business Proposal
More senior citizens are using computers today. Source? This business proposal will target a market for user-friendly computers for senior citizens. Although most major computer manufacturers make computers more senior friendly, none make a full commitment to features for seniors only. No company offers an exclusively designed computer for the Baby Boomer (“Boomer”). The oldest boomers are the senior citizens, and there is an open field with little competition in the market for computers that are designed to meet the senior citizens unique needs. There are 75 million Boomers in the U.S, about 29% of the population with the first of this generation turning 64 this year (Baby Boomer Headquarters, 2011). The purpose of this business proposal is to outline a way to profit from this market. Interesting idea. What is your publicly traded company?

Personal computers are an elastic product and are in the free competition market structure. Personal computers also display inelastic properties because of the large number in use and the role they play in so many lives. In 2010, there were 950 PCs in use for every 1,000 people in the U.S. (Computer Industry Almanac). This count does not include individual who own multiple personal computers or usages by businesses. The potential sales and profit is significant in this market because four million boomers turn 64 every year for the next 18 years (Baby Boomer Headquarters, 2011). Product Differentiation

A design that is designed to target the customer is the key to success in this proposal. This is unclear This product differentiation will be straightforward, and the development will take applying and marketing news ways of existing technologies. Products that not only support a senior’s lifestyle, but also are easy to use are in demand by seniors. The senior user-friendly computers are differentiated by the following features: * 25-inch high definition touch screen contained unit designed with handles for easy carrying. * Voice interaction system to allow other tasks to be accomplished by speaking into the computer speaker. Access to the keyboard may be accomplished through the voice interaction system if desired. * Advanced detailed scheduling and alert features to help the consumer keep track of medications, appointments, and other important tasks. * 24-hour technical support with direct connection between the technician and the computer. * Five year warranty

This product is also differentiated by reliability, service, and warranty. Through providing excellent service and a dependable product, the company can gain the loyalty and trust of its customers. In the senior community and in every segment of the market there is a demand for a worry-free purchase. The risks to this strategy are that the computer will have little utility outside the target market segment. Some Generation X and Y loyalists may be alienated if they perceive the company as being “for old people.” Ok but how does this fit into the assignment requirements of market structure, elasticity and revenue increase? You need to stick to the requirements and include supporting research and data. Profit-maximizing Quantity and Revenues

The senior user-friendly computers are built to order. However, the company will reduce cost by pre-assembling quantities at levels that will lower the total cost of production. Using the plant resources and existing parts will permit the availability of the reliable average total cost data. The goal for start-up production is to manufacture cheaply and avoid surplus. At this time the production quantity is not known. However, when it is determined it will be the initial working number to begin production, and to estimate labor, and variable costs. The company can increase revenue by cross-selling to other personal computer manufacturers and by offering its customers purchasing and...

References: Bureau of Labor Statistics. (2009, December 17). Retrieved June 30, 2013, from
Baby Boomer Headquarters. (2011, September 11). Retrieved June 30, 2013, from
Bharwada, C. (2010, May 21). Retrieved June 30, 2013, from Marketing to Senior citizens: senior-citizens/
Computer Industry Almanac. (n.d.). Retrieved June 30, 2013, from Worldwide PC Market:
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