D-Book Ireland LTD.

Ava Kavanagh, Mark Devaney Wynne, Marvin Ifeagwu, Caylum Kelly and Lauryn Okeke

IndexExecutive summary Page 2

Product introduction Page 3

Company and product details Page 4

Target market and financial targets Page 6

Marketing Page 8

SWOT Analysis Page 10

Organisational structure Page 11

Production details Page 11

Appendix Page 13

Executive summary1

We have decided to use the opportunity to write a business plan in order to get a more realistic vision of our product as well as to map out the steps we will take in order to secure our business.

Our product is D-Book, an e-reader designed specifically for people with learning difficulties in order to make reading both an easier and more enjoyable experience.

There is a huge market of 160,000 people that fit our target market in Ireland alone.

To begin to manufacture our product we need an investment of €150,000

We aim to manufacture our product outside of Ireland in China due to the lower cost of manufacturing.

We estimate that sales will increase from 500 units initially in Year 1, to over 10,000 units by the end of Year 3.

Sales will be achieved through selling to retailers and international distributors.

Product IntroductionD-Book is an e-reader designed specifically for people with learning difficulties. It is the first of its kind with a unique design.

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We came across this idea when Ava Kavanagh (the CEO) heard her mother complain that there was no electronic device suitable for her brother (who like Ava is dyslexic). When the opportunity arose to develop a product that could possibly change the way people with learning difficulties read and the attitude they have towards it we jumped at the opportunity.

With Ireland and the rest of the world in a technological boom, we feel that this should be exploited to the advantage of people with learning difficulties, no matter how old or young they are.

Company and Product Details

Company name: D-Book Ireland LTD.

Product name: D-Book

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Description: D-Book is an e-reader designed specifically for people with learning difficulties.

Purpose: To make reading easier and more enjoyable for people with learning difficulties

Long term goals: To expand within two years into the United Kingdom and then after a further two years globally. To ensure that our product is used in schools and colleges nationally.

We will also investigate the possibility of developing an app for mobile phone and tablet computers, as they may lead to a new revenue stream.

Local objectives: We hope to employ up to 7 people by the end of 2014.

What is our product?

D-book is an e-reader developed specifically for people with learning difficulties to make reading both an easier and more enjoyable experience.

What are its main features?

It is robust and durable It has long battery life

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You can alter the background colour between pale yellow, pale blue, pale green, pale pink and pale red.

It has an audio dictionary(for when you stuck on a word if you tap on it the e-reader will read the word out to you)

It has a matt screen It has a built in light You will be able to download school and study books as well as

regular reading books It will be touchscreen but have 4 buttons. It will have 3 settings:

1. Ultimate

This allows you to access all settings.

2. Medium

This allows you to alter the background colour, font and of course change the book, but does not allow you to buy books or alter major passwords

3. Junior

This allows the child to change the book but nothing else.

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Target Market and Sales TargetsOur initial target market is for dyslexic people between the ages of 7 and 35, of whom there are 1.9 million in the Republic of Ireland.

Our future target market will also include people with other learning disabilities e.g. Down syndrome, who may benefit from such a service.

Based on international studies, 8% of the population is thought to be dyslexic. This constitutes 153,000 people. Our target market is 5% of this number.

Our first year sales targets will be 500 units as we concentrate on one medium sized city.

Our plan for year two is to gain 5% Irish market share which we estimate as approximately 5,000 units.

We then hope to expand our business to Great Britain after 2 years. The population of Great Britain is 62 million. Due to the similarities with the Irish market we estimate that there are approximately 2.1 million people in our target market in the UK

Third year sales in the UK will be concentrated in one of the major cities which have a population similar to Ireland. Sales in this year will be 10,000 units.

Year 1 Year 2 Year 3Unit Sales 500 5,000 10,000Gross Profit 1,000 240,000 650,000Expenses 110,494 88,600 391,534Net Profit/Loss -109,494 151,400 258,466(see appendix for accounts)

Gross Profit Net Profit-200,000-100,000

0100,000200,000300,000400,000500,000600,000700,000

Year 1Year 2Year 3

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Why do we feel our product would succeed?We feel our product would succeed because there is nothing that caters to the needs of people with learning difficulties. We understand that other e-readers allow you alter the backing colour between white, black and cream but as our product shows not these colours are suitable for everyone. Our target market would be able to use the e-reader both in school, collage or work as well as at home because unlike other e-readers you would be able to download school books, textbooks, newspapers and study guides on to it.

Is there room to expand?Yes. As we are the first e-reader tailored to a specific clientele we feel as if there is a great opportunity to expand globally. In conjunction with this there are certain setting and books available to allow our product to be used in school, collage or work and we feel that this gives us an advantage above other e-readers.

Why is our product unique?

D-Book is a unique product because it is the first e-reader designed for people with learning difficulties. This gives us a great advantage in our line of work. As well as this our product also has many unique features as previously shown. This once again proves that our product is one of kind.

Marketing7

To market and promote our business we have decided on 4 main methods:

Schools and Colleges Television and radio Newspapers and magazines Social networking, posters and notice boards

Marketing StrategyWe plan to target schools and colleges first as they will be our biggest buyer in bulk allowing us to build a good relationship with the school or college. As well as this our device is extremely usable and adaptable in school like situations. This will then allow us to break into the world of electronic readers and build a solid base. This will also allow us to target the rest of our market buy spreading the word that our device is out there. We will highlight key benefits such as our audio dictionary and changeable back round colour.

Television and radio

We have decided to use television and radio as one of our methods of advertising because it enables us to reach our target market easily.

TelevisionWe plan to advertise on the television between the times of 1:30 and 3:30 as this is when children are arriving home from school, and then again between the time of 5:30 and 7:30 when the majority of the population are arriving home from work.We hope to advertise on RTE 1 and RTE 2/Junior. We realise that we would have to use different sets of advertising to target both our younger and older clientele.RadioThis method allows us to reach all levels of our target market wherever they are, easily. We plan to advertise on Newstalk and Galway Bay FM.

Newspapers and magazines

First off these methods of marketing are considerably cheaper than marketing on the TV or radio and almost as effective. Newspapers and

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magazines also allow us to inform our target market both nationwide and locally therefore optimising our chances of a profit.

Social networking, posters and notice boards

These are free yet effective. Social networking sites such as Facebook allow us to build a group of followers which by following allow us to inform others while other social networking sites such as LinkedIn allow us to build a more business style following and build our reputation and portfolio.

If we look at posters and notice boards (e.g. in schools or supermarkets) this allows us one again to inform people locally about our product and its progress.

Market TrendsIn recent years e-readers have become a large part of the world of technology with sales of these product up by almost 150% from this time last year, because of this and because Ireland and the rest of the world are in such a technological boom we feel that there is a huge gap in the market for D-Book.

Sales StrategyWe plan to sell our product through retailers and distributors such as Currys Ltd and also through our website.

S.W.O.T AnalysisStrengths Weaknesses

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It is a unique product that has never been made before.

It’s tailored to a specific clientele.

It has many features which are exclusive to our product and easy to use.

It is a robust and durable touch screen product.

There are other e-readers that have the same basic fiction. (To read)

We as a group do not have as many qualifications or as much experience as the executives of other brands.

We do not have much finance back-up.

Opportunities We will have an opportunity

to expand because our product is the first of its kind.

We (the developers) would have an opportunity to learn more about the business world as we go on.

ThreatsThe threats to our brand would include:

E-reader giants such as kindle.

E-reader apps. Books themselves.

Organisational Structure

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Ava Kavanagh

Ava Kavanagh was chosen as CEO because she is good at making sure that everyone plays their part and she also possesses good leadership skills and has a good background in business.

Mark Devaney Wynne

Mark was chosen as Marketing Manager because he has good social skills and has a good grasp on what’s going on in the world of technology.

Marvin Ifeagwu

Marvin was chosen to head production because he is good at researching on the computer and is excellent at economics.

Caylum Kelly

Caylum was chosen as Finance Manager because he is excellent at both maths and accounting.

Lauryn Okeke

Lauryn was chosen as Design manager as she is extremely creative and excellent at art.

Production Details

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Ava Kavanagh CEO

Sales Manager

Mark Devaney Wynne

Marketing Manager

Caylum KellyFinancial Manager

Marvin IfeagwuProduction Manager

Lauryn OkekeProduct Design

We plan to have D-Book produced in Shenzhen E-Tech Digital Technology Ltd. 

See below for the production costs for The D-Book® for Year 1. After the initial run of 500 units, we have negotiated an improved production price with our supplier, of €100 in year 2, and €75 in year 3 due to economies of scale.

Materials

Memory €24

Touchscreen + Display €46

Processor €15

Wireless Section (3G) €18

User Interference +Sensors+Combo Module €6

Power Management €5

Mechanical /Electro-Mechanical/Other €17

Box Content €3

Total Cost €134

Manufacturing Cost €4

All €138

Retail Price €140

Profit €2

Appendix

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Contains:- Financials- Advertisement- Product Drawings

Trading, Profit & Loss Account for D-Book Ireland Ltd Y/E 31/12/13

€ €

Sales € 70,000

Less Cost of Sales

Purchases € 69,000Gross Profit € 1,000

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Expenses

Equipment €6,000Advertising €4,000Van Purchase €30,000Network set-up €5,994Wages €50,000Rent €10,000ESB €500Depreciation: Equipment + Van €4,000Total expenses €110,494

Net Loss -€ 109,494

Balance Sheet for D-Book Ireland Ltd Y/E 31/12/13

€ € € Cost Depr. NBV

Fixed Assets

Van €30,000 €3,000€27,00

0Equipment €10,000 €1,000 €9,000

€40,000 €4,000€36,00

0Current Assets

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Bank €4,506

Working Capital €4,506

Total Net Assets€40,50

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Financed byAuthorise

d Issued

400,000 €1 ordinary shares €400,000 €50,000

Long Term Loan€100,00

0ReservesLess Closing P&L Balance -109,495

Capital Employed€40,50

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Trading, Profit & Loss Account for D-Book Ireland Ltd Y/E 31/12/14

€ €

Sales €700,000

Cost of Expenses

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Purchases €460,000Gross Profit €240,000

Expenses

Office Furniture €1,000Advertising €20,000Network maintenance €2,000Wages €50,000Rent €10,000ESB €2,000Depreciation: Van and Equipment €3,600Total Expenses €88,600

Net Profit €151,400Less Reserves 31/12/13 -€113,494Reserves 31/12/14 €37,906

Balance Sheet for D-Book Ireland Ltd Y/E 31/12/14

€ € € Cost Depr. NBV

Fixed AssetsVan €27,000 €2,700 €24,300Equipment €9,000 €900 €8,100

€36,000 €3,600 €32,400Current Assets

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Cash €20,000Bank €135,506

Working Capital €155,506Total Net Assets €187,906

Financed byAuthorise

d Issued

400,000 €1 ordinary shares €400,000 €50,000

Long Term Loan€100,00

0ReservesLess Closing P&L Balance €37,906Capital Employed €187,906

Trading, Profit & Loss Account for D-Book Ireland Ltd Y/E 31/12/15

€ €

Sales €1,400,000

Cost of Expenses

Purchases €750,000

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Gross Profit €650,000

Less Expenses

Loan Repayment €110,000Advertising €100,000Van Purchase €20,000Equipment €8,000Network Set-Up €5,994Wages €120,000Rent €20,000ESB €1,500Depreciation: €6,040Cost of Expenses €391,534Net Profit €258,466

Reserves 31/12/14 €187,906Reserves 31/12/15 €446,372

Balance Sheet for D-Book Ireland Ltd Y/E 31/12/15 € € €

Cost Depr. NBVFixed AssetsVan €44,300 €4,430 €39,870Equipment €16,100 €1,610 €14,490

€60,400 €6,040 €54,360Current Assets

Cash €50,000

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Bank €392,012

Working Capital €442,012Total Net Assets €496,372

Financed by Authorised Issued

400,000 €1 ordinary shares €400,000 €50,000

ReservesLess Closing P&L Balance €446,372Capital Employed €496,372

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D-Book, an e-reader designed specifically for people with

learning difficulties.Prices from €140 Bulk Discounts

For more information:Tel: 0831343220Email: dbookireland@gmail.com

D-Book Ireland

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