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Using what you did for your proposal, use the template provided to do a feasibility report on your proposal or another topic you choose.
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FEASIBILITY STUDY TEMPLATE
This Feasibility Study Template is free for you to copy and use on
your project and within your organization. We hope that you find
this template useful and welcome your comments. Public
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FEASIBILITY STUDY
COMPANY NAME
STREET ADDRESS
CITY, STATE ZIP CODE
DATE
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TABLE OF CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
EXECUTIVE SUMMARY …………………………………………………………………………………………….. 2
DESCRIPTION OF PRODUCTS AND SERVICES ………………………………………………………………….. 2
TECHNOLOGY CONSIDERATIONS ………………………………………………………………………………… 2
PRODUCT/SERVICE MARKETPLACE …………………………………………………………………………….. 3
MARKETING STRATEGY ……………………………………………………………………………………………. 4
ORGANIZATION AND STAFFING ………………………………………………………………………………….. 4
SCHEDULE……………………………………………………………………………………………………………… 5
FINANCIAL PROJECTIONS ………………………………………………………………………………………….. 5
FINDINGS AND RECOMMENDATIONS ……………………………………………………………………………. 6
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1. EXECUTIVE SUMMARY
The executive summary provides an overview of the content contained in the feasibility
study document. Many people write this section after the rest of the document is completed.
This section is important in that it provides a higher level summary of the detail contained
within the rest of the document.
Alan’s Best Chocolates (ABC) is a leader in the sales of chocolates and confections
throughout the United States. ABC’s products are sold from 50 stores throughout the
country and maintain a reputation for superior taste and quality. While ABC’s sales have
grown over the past 10 years, the rate of growth has slowed significantly. One key factor for
this slowing growth rate is the shift in the marketplace to purchasing chocolates and
confections online. While ABC maintains a web site, it is not capable of hosting an ecommerce platform for online sales. ABC’s sales occur only in its brick and mortar facilities
and the company is losing potential customers to competitors who provide online sales. The
chocolate and confections marketplace is healthy and shows a continued growth trajectory
over the next five to ten years. ABC is in a position to capitalize on this online marketplace
by leveraging existing technologies, industry best practices, and an aggressive marketing and
sales campaign to ramp up the company’s growth projections for the foreseeable future.
2. DESCRIPTION OF PRODUCTS AND SERVICES
This section provides a high level description of the products and/or services which are being
considered as past of the feasibility study. The purpose of this section is to provide detailed
descriptions of exactly what the organization is considering so this information can be
applied to the following sections of the document. It is important that this description
captures the most important aspects of the products and/or services that the organization is
considering as well as how it may benefit customers and the organization.
ABC is considering a move to create and provide an online platform from which to sell its
existing product line. Until now ABC has only sold its products from its chain of brick and
mortar facilities and has been limited to sales within the geographical regions where its
stores reside. By doing so, ABC has not been able to capitalize on the growing trend of
online sales within the chocolate and confections marketplace. By offering its products
through an online platform, ABC can market its products to an entirely new market, increase
revenue and growth projections, and allow customers to purchase our products from the
convenience of their own homes.
There are no proposed changes to ABC’s current product offerings as a result of this study.
Online sales will include only current products and any changes to this product line must be
considered outside of the purpose of this document.
3. TECHNOLOGY CONSIDERATIONS
This section should explain any considerations the organization must make with regards to
technology. Many new initiatives rely on technology to manage or monitor various business
functions. New technology may be developed internally or contracted through a service
provider and always result in costs which must be weighed in determining the path forward.
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Upgraded technological capability will be required for ABC to move toward offering an
online marketplace from which customers may purchase our products. Customers demand a
simple and easy way by which to conduct online transactions and it is imperative that all
transactions are conducted in a secure manner. While ABC maintains a web site with
product lists and descriptions, it does not currently allow for purchasing to be done online.
This functionality must be integrated with our current web site to allow for secure purchases
to be made. Additionally, new online marketing functionality must be considered in order to
target existing and potential customers through methods such as e-mailing lists, promotional
advertisements, and loyalty discounts.
While ABC maintains a small information technology (IT) group, the expertise does not
currently exist internally to design, build, and implement the sort of extensive online
platform required for this effort. Therefore, the recommendation is to contract this work out
to an internet marketplace provider who can work with ABC to meet its needs within the
determined timeframe and budget. It should be noted that while ABC does not have this
expertise internally, the technology exists and is in use throughout the marketplace which
lowers the risk of this concept considerably.
ABC currently maintains a high speed internet connection, web server, and the latest
software. With the addition of an e-commerce portal it is expected that there will be an
overall cost increase of 5-10% for web server operations and maintenance costs.
4. PRODUCT/SERVICE MARKETPLACE
This section describes the existing marketplace for the products and/or services the
organization is considering. It may describe who the target market consists of for these
products or services, who the competitors are, how products will be distributed, and why
customers might choose to buy our products/services. Most marketplaces are dynamic
environments in which things change constantly. To enter a new marketplace blindly will
usually result in an organization not fully understanding its role and not maximizing its
resulting benefits.
The online marketplace for chocolates and confections has been thriving for many years. In
FY20xx online chocolate sales accounted for approximately $20 million or 20% of total
chocolate sales worldwide. While chocolates and confections are available in almost every
store, our primary marketplace consists of specialty chocolates and confections. All of
ABC’s current major competitors already have an established online presence of at least 3-5
years. The top 3 competitors are currently: Smith’s Chocolates, Worldwide Candy, and
Chocolate International. A large majority of ABC’s customer base are returning customers
and referrals from existing customers. By providing a more convenient means of purchasing
our products online it is expected that we will retain these customers while conducting an
online marketing campaign for new customers as well.
ABC will distribute online purchases via direct shipping from the nearest store location. This
will allow ABC to provide timely shipping and eliminate the need for a central warehouse or
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facility from which to store and ship its products. Such a facility would require a significant
capital investment as well as increased operation and maintenance costs. However, based on
anticipated growth projections, ABC must ensure that all store locations maintain adequate
inventories on hand to satisfy customer demand.
5. MARKETING STRATEGY
This section provides a high level description of how the organization will market its product
or service. Some topics which should be included are: how does an organization differentiate
itself from its competitors; types of marketing the organization will utilize; and who the
organization will target. Marketing efforts must be focused on the right target groups in order
to yield the greatest return on investment.
In order to be successful, ABC must differentiate itself from competitors in order to appeal to
customers in the online marketplace. To do this, ABC will utilize its practice of
personalizing its product packaging which it currently offers in-store customers. Current
competitors do not currently provide any personalization of packaging. Customers will have
the ability to personalize messages on or inside of product packaging, request specific colorbased themes, or tailor packaging for special occasions or events.
ABC will implement a customer e mailing list in order to send product promotions, sales
advertisements, and other special offerings to customers who register. Additionally, ABC
will offer referral incentives to customers who refer our products to friends and family in
order to provide additional incentives. ABC will also maintain a customer database in order
to determine its target customer groups and geographical regions. ABC will research
marketing intelligence providers to determine the benefits and costs of purchasing customer
information for bulk email campaigns as well. Another important consideration of ABC’s
online marketing strategy is cost. Electronic marketing communication costs are very small
in comparison to direct mail marketing which ABC currently utilizes. However, we expect
the additional revenue from online sales to greatly outweigh these additional electronic
marketing costs.
It is important to note that ABC’s current marketing and sales staff will require training in
online marketing and sales practices. This training will need to be contracted to a training
provider as part of our startup costs and schedule.
6. ORGANIZATION AND STAFFING
With many new products or services there may be a need for additional staffing or for an
organization to restructure in order to accommodate the change. These are important
considerations as they may result in increased costs or require an organization to change its
practices and processes.
The ABC online sales campaign is not anticipated to significantly affect the
organizational structure of the company. There are, however, several staffing additions
required to successfully implement the online sales campaign. All of these positions will
work within existing departments and report to department managers.
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Staffing Position #1: Online Sales Manager – this full time position will lead sales staff in
identifying sales opportunities and converting these opportunities to actual sales. This person
will report to ABC’s Director of Sales and will work in ABC headquarters.
Staffing Position #2: Online Marketing Manager – this full time position will lead marketing
staff in identifying target customer groups/markets and conducting online
advertising/marketing efforts to maximize traffic to ABCs online marketplace. This person
will report to ABC’s Director of Marketing and will work in ABC headquarters.
7. SCHEDULE
This section is intended to provide a high level framework for implementation of the product
or service being considered. This section is not intended to include a detailed schedule as
this would be developed during project planning should this initiative be approved. This
section may include some targeted milestones and timeframes for completion as a guideline
only.
The ABC online sales campaign is expected to take six months from project approval to
launch of the e-commerce platform. Many of the foundations for this platform, such as highspeed internet and web server capability, are already available. The following is a high level
schedule of some significant milestones for this initiative:
Jan 1, 20xx: Initiate Project
February 1, 20 xx: Project kickoff meeting
March 1, 20 xx: Complete online sales site design
April 1, 20 xx: Complete testing of online sales site
June 1, 20 xx: Complete beta testing trials of online sales site
July 2, 20 xx: Go live with site launch
Upon approval of this project a detailed schedule will be created by the assigned project team
to include all tasks and deliverables.
8. FINANCIAL PROJECTIONS
This section provides a description of the financial projections the new initiative is expected
to yield versus additional costs. Financial projections are one key aspect of new project
selection criteria. There are many ways to present these projections. Net present value
(NPV), cost-benefit calculations, and balance sheets are just some examples of how financial
projections may be illustrated. This section should also provide the assumptions on which
the illustrated financial projections are based.
The financial projections for the addition of an online sales platform for ABC are highlighted
in the table below. These figures account for projected online sales, additional staffing
requirements, shipping, material, and insurance costs, contract support for IT and training
needs, and web server and hosting costs.
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The assumptions for these projections are as follows:
• In store sales projections remain unchanged
• All milestones are performed in accordance with the schedule
• All transactions are closed yearly with no carry-over to subsequent years
Year 1
Year 2
Year 3
Year 4
Year 5
5 year total
Online Sales Projections
Measure
$350,000
$425,000
$500,000
$650,000
$800,000
$2,725,000
Additional Staffing Costs
$160,000
$170,000
$200,000
$235,000
$255,000
$1,020,000
Projected Material, Shipping, Insurance Costs
$42,000
$58,000
$70,000
$78,000
$84,000
$332,000
Additional Web Server and IT Hosting/Maintenance
$22,000
$25,000
$30,000
$35,000
$40,000
$152,000
Training for Sales and Marketing Staff
$75,000
$0
$0
$0
$0
$75,000
$100,000
$0
$0
$0
$0
$100,000
Total Additional Costs for Online Sales
$399,000
$253,000
$300,000
$348,000
$379,000
$1,679,000
Cash Inflow
-$49,000.00
$172,000.00
$200,000.00
$302,000.00
$421,000.00
$1,046,000.00
Contract for Design, Build, and Implementation of Online
Store
9. FINDINGS AND RECOMMENDATIONS
This section should summarize the findings of the feasibility study and explain why this
course of action is or is not recommended. This section may include a description of pros
and cons for the initiative being considered. This section should be brief since most of the
detail is included elsewhere in the document. Additionally, it should capture the likelihood
of success for the business idea being studied.
Based on the information presented in this feasibility study, it is recommended that ABC
approves the online sales initiative and begins project initiation. The findings of this
feasibility study show that this initiative will be highly beneficial to the organization and
has a high probability of success. Key findings are as follows:
Technology:
• Will utilize existing technology which lowers project risk
• Ecommerce infrastructure will be contracted out to vendor which allows ABC
to share risk
• Once in place this technology is simple to operate and maintain for a relatively
low cost
Marketing:
• This initiative will allow ABC to reach large number of target groups electronically at
a low cost
• ABC can expand customer base beyond geographic areas where stores are currently
located
• The marketplace for online chocolate and confection sales is in a steady state of
growth
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•
ABC is able to differentiate itself from its competitors and will utilize incentive
programs to target new consumers
Organizational:
• Minimal increases to staffing are required with no changes to organizational structure
• No new facilities or capital investments are required
Financial:
• Break even point occurs early in the second year of operation
• Five year projections show online sales accounting for 25% of total sales
• ABC will be in position to capture greater market share by maintaining both an instore and online presence
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Running head: FEASIBILITY REPORT
FEASIBILITY STUDY
Building more shelters in the neighborhood
ABC Associated Builders and Contractors, Inc.
440 1st St., N.W., Ste., 200
Washington, D.C. 20001
FEASIBILITY REPORT
Table of contents:
1. Executive Summary…………………………………………………..3
2. Description of Products and Services…………………………………3
3. Technology Consideration……………………………………………4
4. Product/Service Marketplace…………………………………………4
5. Marketing Strategy……………………………………………………5
6. Organization and Staffing…………………………………………….5
7. schedule……………………………………………………………….6
8. Financial Projections………………………………………………….7
9. Findings and Recommendations………………………………………7
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FEASIBILITY REPORT
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1. Executive Summary
The Associated Builders and Contractor’s (ABC) company is well known for the service it
offers. ABC is well established, and it specializes in constructions. As a company, we are happy
to have remained in the frontline in providing support for those constructing shelters and many
more types of structure. We are well known for providing the best construction professionals in
the industry. With the help of our partner Maxwell system which provides a construction of
software, we have been in a position to offer services that are appealing to all. ABC has also
remained on the frontline due to its marketing strategy. It has retained its brand from online
marketing whereby it has used the twitter, television and Facebook platform to showcase its
products. Technology has also been a priority for the company.
2. Description of the products and services
ABC Company offers services in construction.it is well known for having the best contractors’
and subcontractors. As a company we are hence expected to give the best services when it comes
to building the shelters in the neighborhood. The services offered by the company are well
known in the state due to its success over the years. The companies’ website is also easy to
access, and thus people who need the company’s services can get them at their convenience.
There are no proposed changes to the services the company offered. Similarly, I have not heard
the mention of any new service to be provided by the company in the future.
FEASIBILITY REPORT
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3. Technology considerations
The aim of ABC company has always been to reach out more people. There has to be an
advancement in technology so that it could reach out more people. On the other hand, since it has
been working towards marketing the services on an online platform then the information
technology employees in the company need to be more active. Marketing has always helped the
company maintain its brand name. On the other hand, online marketing has also helped the
people living in the remote areas learn about the company. The company also needs to advanced
technology since it needs to know how the modern structures are being constructed.
4. Service marketplace
The company has a target market for the houses they will build. The target market for the houses
are all those people in the neighborhood who do not have their own houses. Such residents are
the primary cause of congestion in the region. The other target is anyone else without shelter.
The shelters are set to be affordable to all. The houses will be accessible to people of all classes,
with this I mean that even the low class will afford to pay for them. There are many more people
constructing houses, but they have not made them affordable to all. It hence will make these
shelters unique. The others are only affordable to the middle and the high class. It is also likely
that the teachers who teach in the nearby school will opt living here hence they could also serve
as another target for the shelters. It is expected that the shelters will be built in such a way that
they satisfy the demands of the residents.
FEASIBILITY REPORT
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5. Marketing strategy
The ABC company will use various marketing strategies. However, the residents in the
neighborhood will have the priority. Those who feel that they need to move to bigger houses will
have the preference. After the residents in the area are fully settled then different ways will be
used to market the remaining dwellings. One of them will be the use of billboards indicating the
location and the pricing of the homes. In the advertisement, it will be essential to include the
picture overview of the house as it may pull more people. Online marketing is another good
marketing strategy. The best way marketing platform is the television so that the general
overview of the place and the houses can be captured. Bearing in mind that other people
construct homes, then there needs to be something unique to sell the homes. The single thing
about the houses is that the prices of the shelters are affordable to all and thus they are likely to
get occupied faster. The prices cater for even those with little pay. The use of referrals could also
act as a good marketing strategy whereby the residents will be urged to refer their friends to the
remaining houses. Maybe they could be awarded by cutting off their first monthly rent by 20%
once they refer someone to the shelters.
6. Organization and staffing.
The addition of more houses in the neighborhood is likely to change the management structure of
the ABC Company. The organization needs to add a manager to man the new shelters. It will
also be necessary to higher two marketers to market on the remaining houses. After the
billboards are made it will be their role to set them in strategic places. One of the marketers will
act as the senior marketer, and he or she will be answerable to the manager for anything issues
regarding marketing. The roles of the two will, however, be the same. The numbers of the two
FEASIBILITY REPORT
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marketers will be indicated on the two billboards for any consultations. The new staffs are
however required to work closely with the old ones so that they can quickly adapt to the working
environment. The organizational structure or hierarchy of the company will not change since the
changes will only occur at the grass root level.
7. Schedule
The building of the new shelters is supposed to take one year from the time of approval of the
proposal. It will be inclusive of the installation of the internet connectivity which will be the last
step. Below is the set schedule for the initiative.
1st February: Initiate the project.
3rd February: Study of the neighborhood and population
4rth March: Survey of the area and soil studying research to identify the area suitable for
construction
1st May: Analysis of the data of the above by the surveyor and the architecture in charge.
6th May: Submission and approval request form by the relevant bodies starting from the agency
in charge of construction.
1st June: Building commences with the supervision of the architecture.
31st January 2019: installation of WIFI
3rd February: the occupation of the houses
10th February: marketing of the remaining shelters
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8. Financial projections
•
The project is likely to consume a lot of money. The estimated amount of money that is
likely to be used is as follows
•
Payment to the architecture $10,000
•
Equipment’s and building materials $200,000
•
Manpower $100,000
•
WIFI installation $50000
Upon approval, the project should commence immediately, and those assigned to delivering
the materials should ensure that they are delivered within the given schedule. The project has
various assumptions.
1. The cost of the building materials will not change.
2. The people constructing the shelters (workforce) will not ask for more money.
3. The schedule will cover all milestones.
9. Findings and recommendations
Based on the information of the feasibility study, it is recommended that the project should be
initiated immediately.
Technology
1. The wires which had been used to install internet in the other houses will be used in the
new shelters.
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2. The same people who had installed internet should be recalled to make the connection.
Marketing
1. Marketing will allow people to learn about the houses.
2. The use of television marketing will reach out more people
3. The organization in charge of the houses has differentiated itself from others by bringing
down the prices to an affordable rate.
Organization
1. No new facilities are required even with the addition of staff.
2. Only minimal changes are expected in the organizational structure.
Financial
1. The one year plan is expected to consume only the money projected.
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FEASIBILITY REPORT
References
American Demographics, I., & Co., D. J. (2013). American demographics. Overland Park, KS:
PRIMEDIA Business Magazines & Media.
Statistics, M. (2010). Demographics USA. New York, NY: Market Statistics
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