The name of the company is fictitious- Noremak Inc. and the goal/plan is to implement financial literacy across USA. The documents attached are supporting docs to give more insight
Running head: FINANCIAL LITERACY Financial Literacy1 9-1 Final Project Submission: Comprehensive Business Plan Table of Contents Brand description 3 Fit4 Target market7 Basic demographics 7 Psychographics 8 Want or need and why 8 Costs of this concept and pay 9 Preference by customers and strategy 9 SWOT Analysis of the Financial Literacy Program10 Consumer trends14 Impacts of perceived ethics violation15 Impact of the SWOT and ethics16 Core competencies17 Evaluating Success19 Five-Step Feedback Loop22 Evaluation of the Data26 Corrective Actions27 Other Factors28 Conclusion 29 References30 Executive Summary According to Ramsey Solutions, 2021 “As a country, we’ve seen where a lack of personal finance education can lead. Millions of Americans struggle every day with their money, living paycheck to paycheck and relying on credit cards for necessities, only to wind up deep in debt and short on hope.” This report is an attempt to highlight the brand management and marketing approach towards Noremak Inc., a start-up company seeking to bring financial literacy in a digital and book platform to middle and high school students in the USA outside the norm of regular financial literacy. What separates this product from its competitors is that it is highly interactive, simulative, and deviates from the regular approach of teaching financial literacy. The project showcases the strategic approach that will be taken to guarantee success, this will ensure that the needs are adequately defined and the pricing structure is affordable so that the school administrators and the Department of Education fund this initiative, which will then be adopted throughout all schools. The strengths highlighted such as customer service will put the company in a competitive position. The company also has a few weaknesses which consequently puts the company at a disadvantage such as not having enough investments. To ensure that there are no ethical implications, this paper covers the possibilities so that the values are engrained from an internal and external perspective. From the projection of sales, it is estimated that the company will make approximately $153,000 (See Table 2 in the Appendix) per month in profit keeping the other variables as slated. This was at a minimum number of 3 schools per month. With the expectancy to increase as the company solidifies its presence, this profit is expected to increase as well. The channel of obtaining information, analyzing, and implementing what was gathered is one of the ways to find out how we will be able to better serve our customers. To this extent, the research paper will identify the roadmap tool, the feedback loop. Financial Literacy Program in Schools The US financial literacy and Education Commission study have shown that only one-third of the whole adult population only have proper financial literacy and the rest of the population could not answer any of the finance-related questions properly, this shows the importance of financial literacy here. Noremak Inc. is a company that has initiated the concept of introducing financial literacy in high schools to teach students with this term properly. Brand description It is seen that in the United States there are already different branches in the education system. Noremak Inc. is a new brand in the market that has brought the concept of bringing financial literacy to high school students. At high school, the students are from 9th to 12th grade whose age range is from 14 to 18 years old. These students are generally taught regarding the subjects of history, sociology, geography, social problems, and government. It is seen that a lot of the students take college-level courses for increasing their skills (Bay, Catasús & Johed, 2014). Noremak Inc. has introduced some strategies through which the students from different schools are able to enhance their knowledge and skills in financial education where they will be able to learn regarding the key components of financial literacy. People are generally keen to understand how different funds work and how they can save some money for a better life. This understanding takes a lot of time especially when there is the responsibility to earn money and save money. If the education on how to make better choices with their money is provided at an early stage of schooling then this will create an opportunity for the students to understand the importance of it and utilize this knowledge in their life for the better. Fit Different factors are generally important for introducing this concept in the market which is that financial literacy is more than just reading and writing. Here the students will be able to adopt the understanding of how financial markets work and how they can be able to take the relevant decision regarding the informed and conscious decisions. As per the US Financial Literacy and the Education Commission, only one-third of the adult population are capable of answering four to five financial literacy questions on fundamental concepts like mortgages, interest rates, financial risks, and inflation. Almost 40% of Americans turn to family, friends, or co-workers when there is a question regarding finances. Hence, it is quite an important topic to include financial literacy in the education system for high school students. Some of the factors which impact the successful delivery of the program are provided in the following in detail: Role of parents The guardians play a very important role in the key components while executing financially literate which is by coping with demands of life and also by displaying the funds, expenses, savings, and other monetary issues which can impact the living. When the children see the situation, they learn how to react in a specific situation from their guardians. Hence, the parents must act responsibly regarding their finances. Many of the children who are from low-income households turn out not to be financially literate because they have never been taught to. School It is seen that the school has also never introduced any workshop or any activity regarding teaching their students the importance of saving money and also to expose the financial terms in their high school so that they know how and why to save money for their future. Schools generally do not consider that this is an important part of the teaching and hence it can also be seen that there will be a demand for the ones who are not providing the same kind of importance to this course. The students who are coming from low-income households face a lot of issues when they start earning to save money. When there is more excitement When organized in a school for the students, proper workshops and activities are more successful when educators make it their point of duty to ensure that the training material is more intriguing and relatable to the students. There are many findings related to these which states that the financial courses which were offered must be more stimulated to reflect a closer picture of adulthood. Hence, the school-going students who have a piece of knowledge regarding the finances are less prone to be thriftier and less likely to become wasteful and enhance the interest. Experience This is related to the student who has already established the understanding regarding the checking or savings account for using the ATM debit card and are conscientious. There is proper equipment of the individuals which influences positively in making the healthy financial decisions (Taft et al., 2013). The students are also taught how to utilize some of the activities which have been suggested for the improvement of their current state. There can be some opportunities at school – as per the FINRA study, it is seen that only 53% of the adults have proper knowledge regarding financials and how to save money. It is important to introduce financial literacy in schools for a better future for the economy. There will be the inclusion of financial literacy for K-12 students. This is due to the lack of understanding of concepts in finances which will ensure there is enough awareness of financial literacy in the school. Involving the community The employees of every organization will also be provided with a proper workshop and campaign regarding this knowledge in partnership with the schools for a better result. Technology This includes proper technology knowledge for the students like technology for a new self-service channel introduced by different financial institutions for their customers for the ease of their service. It can utilize the knowledge of students who save money and can be more productive with their finances. Effective cannot-for-profitableness of the brand From different telephone surveys, information was garnered as to whether the individuals and businesses have undertaken some of the courses at high school or not. After attending different employer-sponsored retirement seminars it was found that there has been an increase by almost 27% of the population who are in the lowest income bracket and have never received a high school diploma. The researchers also stated that there will be a positive relationship between individual participation rate in the market and average stock market participation in the individual community (Klapper, Lusardi & Van Oudheusden, 2015). This will ensure that the communities will be stronger. However, currently, almost 54% of the millennials have expressed their concern regarding the fact that they might not be able to pay back their student loans on time. The brand Noremak Inc., will help to solve this concern of the millennials. When a student gets a student bank loan then they have to worry more about getting a proper job so that they can pay off their debts. This can only be possible if they manage their finances properly (Lusardi & Mitchell, 2014). Understanding the importance of financial management and different terms related to it is very important. The students will be provided with individual material as per the requirement and recommendation by Financial Literacy & Education Commission (FLEC). This material will also be available for the persons who do not have the opportunity for taking the proper financial actions due to their socioeconomic backgrounds. This facility will be provided by the high schools as a campaign service so that the economy can grow as a whole and a positive environment regarding financial literacy can be spread as much as possible. These kinds of campaigns will be initiated by Noremak Inc. so that schools do not have to take the extra burden of organizing one. They just have to provide information to their students. Target market Basic demographics The target market of this brand is the high schools in the United States. Noremak Inc. has incurred strong connections in the market for knowledgeable staff who will deliver financial literacy to students of high school. There are some of the experiences as well which will act as one of the advantages for Noremak Inc. regarding how they can be able to provide the service (Bhushan & Medury, 2013). The company has also analyzed the strengths and weaknesses of the students in different areas and they have accordingly set their standard in such a manner that each of the students can be able to understand the whole concept. Psychographics Different students have a different level of understanding and the students in high school tend to get interested when the concept has more facts in it. Financial literacy provided by Noremak Inc. will include more practical