Business Plan on Breath Alcohol System
Proposal of business idea
The business idea is based on the introduction of safety system named Breath Alcohol System, which will be integrated with ignition system of vehicle, with an aim of detecting the level of alcohol consumption of driver. The reason for embarking upon this business idea is based on the notion that alcohol can adversely affect driving in many ways (Arria et al., 2016). For instance, it can lower the ability of driver to judge distance and to control speed. The development of over confidence and enhanced propensity to take risk is also witnessed in driver when alcohol concentration is increased in blood. In similar manner, attention and coordination is reduced, ability to take any immediate action is affected and vision might also be impaired (Fell et al., 2017). Given these adverse consequences of drunk driving, Australia has set 0.05 % level of alcohol concentration in blood of full license holder drivers. Regardless of these regulatory measures, still the rate of alcohol consumption is high and large number of accidents are caused due to drink driving in Australia, each year.
Based on these reasons, there is greater need of a system which could auto control the vehicles to completely restrict the ability of person to start engine, when alcohol concentration is beyond set limit (McGinty et al., 2017). Breath Alcohol System will be linked with ignition system of the vehicles and it will use breath sensors to detect the alcohol status of driver. When the level of alcohol will be detected above 0.05% when auto command will be given to ignition system and driver will not be able to start the vehicle. This system is likely to help the enforcement of drink driving legislations and thus the product is expected to revolutionize the transport sector. The product will have following benefits;
- It will address the issue of drunk driving by acting as an interlock device attached with ignition system of autos.
- It will help in prevention of accidents caused by drunk driving and will subsequently reduce the rate of injuries and fatalities.
- Breathing Alcohol System will aid in law enforcement by restricting driving above 0.05% level of alcohol concentration in blood of driver.
- The product will act as problem solver, which could eventually lead to creation of need.
Minimum Viable Product
The product will be manufactured by using breathing sensor technology, such as breath analyzer. The ignition will be controlled by a logic circuit, which will hinder the action of driver to start the vehicle. The level of blood alcohol level is pre-defined at 0.05% and even a slight increase from this value will control the engine from ignition. The use of infrared beams will allow to sense and then analyze the breath of driver, within 10 seconds of detecting the breath of driver. The ignition will cut for 5 minutes, such that another person (any companion of the person whose breath is being detected with alcohol concentration of 0.05%) might drive followed by another test of breath. The product specifications can be seen below;
- Size of device will be 160mm × 50 mm
- Automatic detection of breath, while a person sits on driving seat
- Only detects alcohol, with no response to hydrocarbons
- Time of analysis is 10 seconds
- It cuts ignition for 5 minutes
- Light and portable device
- Breath Alcohol System has graphic LCD display
- Display of alcohol quantity with three decimal places
- Certified by AS3547 Australian standard
- Product has memory of around 100,000 logs and its memory can be erased for re-usage
- Warranty of 18 months
Market Analysis
Analysis of Australian market has highlighted that rate of annual fatalities due to drink driving are 30% (Market Watch, 2019). This percentage is alarming and much higher than UK, where only 12% road accident fatalities are caused by driving under influence of alcohol (Market Watch, 2019). In recent report of Australian Bureau of Statistics (2019) it was found that around 25000 NSW and 15000 Victorian vehicle drivers were found to engage in drunk driving, which indicates alarming situation within Australia. Regardless of strict drink driving regulations within Australia, the high accident rate due to drink driving demands consideration of vehicle industry to develop a system through which alcohol level of driver can be detected and driving can be restricted (Budget Direct, 2018). The analysis of market indicates that there is substantial need of Breath Alcohol System, with an aim of assuring safety of drivers and of pedestrians.
In Australia, almost 16,368,383 people own personal vehicles, which shows that there are 0.72 vehicles per person (Australian Bureau of Statistics, 2019). In Australia, around 78.8% people consume alcohol, either on regular or occasional basis (Australian Bureau of Statistics, 2019). The occasional consumption is mainly linked with consumption of alcohol on weekends or specific events. This percentage clearly indicates that there is high consumption of alcohol in Australia and there is substantial demand for the system which can regulate the driving of people who are under the influence of alcohol and can assure safety of people at large.
Additionally, the industry wide analysis has also highlighted that motor vehicles companies are highly inclined towards automation. The installation and integration of automated control mechanisms is attracting the attention of vehicle companies, which shows that there will be huge demand for Breath Alcohol System. Moreover, it is noted that currently 8% vehicle companies are using some kind of sensors in their newly developed models to regulate the drink driving (Budget Direct, 2018). This percentage is likely to increase by 20% by the end of 2025, which shows that there is high demand for Breath Alcohol System in vehicle industry and product has huge growth prospects.
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The analysis of market shows that demand for ignition interlock devices for alcohol detection is increasing rapidly in Australia and people are willing to spend on devices which could assure their safety while driving under the influence of alcohol. The market concentration is considered as low, and market has not matured yet, which provides substantial prospects of success for new products in this category. The decline has been witnessed in the average price of product, based on development of technology as well as based on lowering cost of raw material with progression in technology. In a recent report of AustRoads it has been highlighted that there is likelihood to make alcohol ignition interlocks compulsory in all vehicles within Australia, with an aim of cutting the rate of accidents caused under the influence of alcohol (Rae, 2019). It indicates that market is expected to grow significantly over the coming years, which provides substantial success prospects for Breath Alcohol System. Currently 8861 vehicles have fitted alcohol interlocks and this number is expected to grow at the rate of 3.5% each year (Rae, 2019). These facts show that demand for Breath Alcohol System will increase substantially over the years.
Unique Value Proposition
The unique value proposition of Breath Alcohol System lies in the notion that it will offer an automated solution to customers for regulating their driving under the influence of alcohol, by detecting the exact level of alcohol based on breath sensors. This system will not allow the driving when alcohol concentration will increase 0.05% level, which will assure compliance with Australian regulations of drunk driving. The product serves the purpose of continuous monitoring of blood alcohol level and it is easily installable into cars. The product needs not to be installed by manufacturers, but customers can install it based on their own preferences. Finally, it analyzes breathing, which does not require any specific action on behalf of driver and start operating once a person sits on driving seat and breaths near gearing wheel. Breathing Alcohol System will only take 10 seconds to detect the level of alcohol and thus takes immediate action to stop ignition of engine.
Marketing Strategy
The marketing strategy is core road map through which a business can approach and foster the transformation of its prospects into customers (Menon et al., 2015). The core objectives of marketing strategy of Breath Alcohol System are as below;
- To enhance awareness among prospects and customers about Breath Alcohol System, such that around 50% target audience in major cities of Australia know about the name of product and are aware of its main features, within the six months of product launch.
- To approach the target audience by explaining the benefits of Breath Alcohol System, such that their attention can be obtained and they can be encouraged to make positive purchasing decision, such that around 20% prospects can be converted into customers of product within six months of launch.
- To maintain excellent after sale services and support for customers through control measures, such that 10% of customers are encouraged to recommend the product to their friends, families and people in social group.
Market Segmentation and target market
There are different available options for segmenting the market for Breath Alcohol System, including; geographic segmentation, demographic segmentation and psychographic segmentation (Samiee and Chirapanda, 2019). All of these options are highly relevant and will be implied for segmenting market of Breath Alcohol System. In terms of geographic segmentation Australian vehicle owners and vehicle producers will be targeted. The vehicle owners will be able to purchase the Breath Alcohol System for installation in their ignition system, while vehicle producers can source Breath Alcohol System to install in the vehicles being produced. Initially focus will only be maintained on major cities, such as Sydney, Melbourne and Brisbane.
The demographic segmentation will be used to target medium income group of people, who are in position to make purchase Breath Alcohol System for vehicles. In terms of gender both male and female car owners will be targeted. Additionally, the innovative and high earning brands of vehicles companies will be targeted, such that they can assure commitment of resources to make purchase of this system. The product is only suitable for personal vehicles and it will not target public transporters.
Finally, the psychographic segmentation will focus on behavioral aspects of target customers. The responsible and informed target customers will mainly be considered in terms of psychographic segmentation. Additionally, the benefit sought behavioral aspects of customers are of importance for Breath Alcohol System, as customers want the solution of their alcohol consumption problem and resulting risks of driving. These customers will prefer functionality of product and thus by delivery maximum safety to customers, business can attract this segment of customers.
Marketing Mix for Breath Alcohol System
Product: The product is Breathing Alcohol System which is an ignition interlock Breathalyzer for measuring the amount of alcohol in blood by sensing the breath of person. The device is linked with ignition system, which locks the ignition once alcohol level is detected above 0.05%.
Price: The price of product is set by making reliance on cost based pricing strategy, whereby price will be kept at lowest possible level, such that fair amount of revenue can be assured after deducting cost of product. Per unit price of Breath Alcohol system will be $235 Australian dollar, which is comparatively less than the competitors prices that are $249 and higher.
Place: The product will be launched in Australia and it will be distributed to customers through major electronic stores and supermarkets, which operate in Sydney, Melbourne and Brisbane. Additionally, Breath Alcohol System will also maintain online presence with an aim of selling its product to customers. The online orders will be dispatched and delivered to the given address within two working days. The complaint center will be responsible for offering after sale services to customers, such that if customers find any issue in installation and usage of device, then they can be offered support from staff of Breath Alcohol System.
Promotion: Breath Alcohol System will make reliance on both traditional as well as online channels for marketing and promotion purposes. The traditional channels of communication will encompass flyers containing information about specification and features of product, such that introduction of product is provided in comprehensive manner to customers, along with price and purchasing options for customers. Moreover, advertisement in magazines and local newspapers will also make up an important aspect of traditional marketing of Breath Alcohol System.
On the other hand, the online communication will be carried out through website of Breath Alcohol System, mobile application developed followed by launch of product, direct mails in inbox of prospects and social media marketing channels. The social media platforms will include Facebook, Instagram and YouTube, as these are most widely social networking platforms in Australia.
Both offline and online channels of marketing will be integrated, such that content of these platforms is well aligned with initiate and maintain communication with customers. It will not only enhance reach of communication message but will most likely enhance awareness about Breath Alcohol System among prospects and customers.
