Roc Beatz Headphones Plan


The global headphones market is set to balloon as the demand for these products keeps growing each year. Dealers in this market segment thus brace themselves for the increased market. The availability of the market for these products provided a market niche, which can be exploited through the provision of affordable but competitive quality headphone brand. To ensure that a new entity enters the market and establishes significant competition against the established brands, it is imperative that market research and planning be conducted. This plan outlines the various aspects of operations and product strategies that the new entrant will use to not only concur the market but also realize stability in revenue growth.

Name of Product

Research conducted by Grand View Research (2017) revealed that the headphones and earphones market is set to reach USD 15.8 billion by 2025. The rising use of headphones when engaging in other activities such as driving, walking, workouts, and when working is set to drive the demand for the headphones industry. Wireless headphones are mostly preferred, as they offer unlimited use of portable devices for up to ten meters radius. This presented an opportunity to venture into the Bluetooth wireless headphones industry.
Given that young and lower middle-aged individuals primarily use wireless Bluetooth headphones, it is expected that the introduction of a new brand into the market would gain significant interest, primarily if the new brand identifies with the new age (Grand View Research 2017). To design a brand that easily identifies with the young, and promises the quality they aspire to have, an appropriate brand name is critical. The new headphone brand will thus be called Roc Beatz. Young individuals are fascinated with beats, and hence the reason for the drastic popularly in rival and well-known brands such as Beats by Dre. Roc Beatz merges two words “Rock’ and ‘Beats.’ New Age consumers like rocking bass headphones, which has clarity and quality of sound system. Roc Beatz will, therefore, promise to deliver these qualities to the target market.

Type of Business Organization

Various types of legal structures are available for a start-up business. However, Roc Beatz will be incorporated as a limited liability company. Limited Liability Companies (LLCs) are created to offer liability protection to individuals wishing to start a company without enduring the double taxation imposed on corporations. The earnings realized by an LLC is passed on to the owner and taxed based on their income. An LLC will be a good business legal structure for Roc Beatz because it will offer liability protection to the owner with fewer formalities required for a corporation. It is also less costly to set up the business. Unlike sole proprietorship and partnership, an LLC allows for the unlimited number for shareholders, which makes it easier to raise the required initial capital as well as additional operating capital when needed. Additionally, the headphones business is capital intensive and requires strong supply chains to realize sustainable operations. AN LLC will provide a separate business entity, which can enter contracts and even sue and be sued.

Organizational Structure

A successful startup should have an efficient organizational structure that allows for ease of communication and resource movement down the hierarchy. This business will need expert employees who know how to deal with electronics, and especially consumer electronics. As such, it is suggested that the business adopts a functional organizational structure. A functional organizational chart is based on various functional divisions that make up the organization (Baines et al., 2017). The divisions consist of various groups with people having specialized skills to discharge their respective responsibilities effectively and efficiently. Our organizational structure will be divided into three key departments: marketing, production, and sales.

Each department will be headed by a director or manager, who answers to the chief executive. For example, the company will have a chief executive officer, and marketing director, production director, and sales director. According to Baines, et al. (2017), functional organizational structures are advantageous because employees are grouped based on their functions and skill sets. With such functional teams, it becomes easier to focus collective energies on their respective roles.

Nevertheless, it is critical to highlight that the executive officer will need to realize the challenges in communication often associated with functional structures. Lack of interdepartmental communication often bedevils functional organizational structures. The manager will thus have to develop and implement an effective communication strategy.


In a bid to provide the best quality products that not only appeal to the customers but also creates a strong brand name and loyalty, the business will select one of the best Original Equipment Manufacturers (OEM). Bearing that in mind, Guangzhou Firo Electronics Technology Company is selected as our main manufacturer and provider of  Roc Beatz headphones. Firo is a renowned manufacturer of specialized Bluetooth products, including Bluetooth earpieces and headphones. The company boast of having been in operation for over ten years and specialized Bluetooth manufacturing of more than ten decades. Firo focuses on high-quality products for its customers. The company invests heavily on research and development and incorporates market trends in their product variants. Firo is a verified Original Equipment Manufacturer, and thus promises the best quality possible.

Our company wishes to establish a strong headphones brand in the industry. To achieve this, the company must have its brand under the Roc Beatz brand name. Guangzhou Firo Electronics Technology has its brand name and thus manufactures products under the company’s brand, Fire. However, the company also has a division where it manufactures for specific brands. Roc Beatz targets the US market and thus needs to market as a US brand. Manufacturing in China is not only cost effective but also allows for customization of various brands as required by the target customers.

Product Pricing

Pricing is a critical aspect of product introduction into the market. The price level at which a product is introduced determines brand acceptance and consumer perception of the quality if the product (Baines et al., 2017). There are many premium-priced headphone brands in the market, led by Beats and Bose. For a start, Roc Beatz will be moderately priced to attract the mass market.

Roc Beatz will be sources for a manufacturing price ranging between $15 to $30 a piece from the supplier. The products will already have been branded to Roc Beatz, and will thus be ready for market. Having incorporated all the expenses and costs associated with bringing the product within reach of the final consumer, the company will impose a markup margin of 50%. The table below shows various headphone brands with their respective final retail prices.

Variant Order Price ($) Markup (%) Retail Price ($) Min Order Quantity
Roc TWS Stereo 28 50 56 200
Roc Waterproof 12 50 25 500
Noise Cancelling 9 65 24 400

The minimum order quantity ranges from 200 pieces to 500 pieces, as outlined by the manufacturer. However, the company seeks to order high amounts to ensure stability in the supply of the headphones and prevent stockouts.

Target Market

As a start-up, the market for Roc Beatz is expected to be limited to the US domestic market, and specifically within Pennsylvania state. Philadelphia has the most dynamic young individuals who form the target market for the headphones. The state also has many local stores that can be used as distribution centers, including a vibrant network of electronics stores that offer similar products.

Research has revealed that miniaturization will be the driving force for the growth of the headphones market in the US (Grand View Research 2017). Focusing on Philadelphia will allow the company to study the market trends, learn about the changing consumer behavior, and establish the strong selling point for the brand. Successful establishment of the market in Philadelphia will allow the company to expand rapidly to the other states.


The management will use a focused approach to reach the target market. Even though the products will not be placed under the premium segment, intensive product awareness and promotional campaign will be engaged to make the product known to the target audience. The company aims to create the market and drive sales for sustained operations. Therefore, the company will use both retail and wholesale strategies to increase product reach to its target market.

Retail sales are crucial for the company because it allows for personal interaction with the market as well as real-time control. With retail sales in the company’s outlets, the marketers will be able to interact with the market directly. As stated by Baines et al. (2017), personal interaction is meaningful because it allows for the establishment of a long-term relationship with customers. The company will also create a long-lasting impression of the brand when its sales directly to the customers. Real-time control arises from the ability to customize and adjust product attributes according to the needs and preferences of the customers. Retail sales will be made through the company’s local stores as well as its online platform. The wholesale strategy is also critical to the success f the company because of the volumes of sales involved. Wholesale will be done through affiliated stores, including convenience stores and other electronics outlets.

Production Budget

The production budget is an estimate of the number of units of products a company must manufacture. As outlined by Baines et al. (2017), a production budget is derived from the planned amount of the sales forecast and inventory to be held by the company.

Roc Beatz Production Budget

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Forecasted Sales 6,500 7,000 8,000 9,000
Planned ending inventory 500 500 500 500
Total Required Order 7,000 7,500 8,500 9,500
Beginning Inventory 0 500 500 500
Units to be Ordered 7,000 7,000 8,000 9,000

According to the production budget in the preceding table, it can be observed that the required quantity of units to be ordered by the company from Firo is 7,000 units. This quantity consists of 6,500 units that are expected to be sold during the first quarter of the year. The company intends to retain an inventory level at 500 units, which means that the total amount to be ordered is 7000 units. The planned ending inventory is set at 500, which is, in my opinion, quite low because it takes some time for new headphones to be manufactured and shipped to the US from its assembly plants in Guangzhou.

It is also critical to note that the production budget only highlights the unit volumes. The budget does not translate into production dollars, because the company will not be in the active manufacture of the products, but rather order already manufactured and assembled headphone units.

Revenue Projections

Unit Sales Q1 Q2 Q3 Q4
Roc TWS Stereo 1500 2000 2000 2500
Roc Waterproof 2000 2000 2500 3000
Noise Cancelling 3000 3000 3500 3500
Total Unit Sales 6500 7000 8000 9000
Unit Prices
Roc TWS Stereo 56 56 56 56
Roc Waterproof 25 25 25 25
Noise Cancelling 24 24 24 24
Roc TWS Stereo 84000 112000 112000 140000
Roc Waterproof 50000 50000 62500 75000
Noise Cancelling 72000 72000 84000 84000
Total Sales 206000 234000 258500 299000

Sales projections are derived from the sales forecast units as depicted in the production budget in the preceding section. Accordingly, it is projected that the company will order 6500, 7000, 8000, and 9000 headphone units for the first four quarters respectively. The total units ordered are broken into respective headphone types, and then apportioned their respective unit prices as outlined in table 1. It is thus possible to establish the sales revenues obtained from each type of headphones. According to table 3, it is established that Roc TWs headphones are expected to the best revenue earner for the company. Despite the low sales quantity, the brand has a high per unit retail price.


This plan has highlighted the various aspects of Roc Beatz headphones. The choice of this product was informed by the increased use of headphones, as smartphones continue being the central productive gadget for consumers. Sourcing the products directly from a Chinese manufacturer will be beneficial to the company because of the eliminated costs of production. A careful selection of a manufacturer will also ensure that the company not only sales quality products, but it also creates a powerful headphone brand that can compete effectively in the growing market. It is expected that should the projected sales be realized, the company will have successfully introduced its brand name in the market.