PM FPX 4010 Assessment 1 Project Charter

PM FPX 4010 Assessment 1 Project Charter

Student Name

Capella University

PM-FPX4010 Process Groups and Knowledge Areas in Project Management

Prof. Name:

Date

Project Charter

Project Title: New Marketing Strategy for Cosmo Inc.

Project Start Date: July 8, 2021
Projected Finish Date: January 7, 2022
Budget Information: $150,000
Project Manager: Daniel Blandford

Business Need

Cosmo Inc. is a leading company in the development and distribution of wearable technology. In addition to its core products, Cosmo also offers fitness coaching, nutritional coaching, and lifestyle advising products. A recent marketing analysis by senior leadership highlighted that increasing competition could negatively impact future earnings. To address this, CEO and President Harold Living has emphasized the need for a new marketing strategy to preserve the current 33 percent market share and boost future sales. The proposed project for the new marketing strategy must be completed within a 10-week timeframe and adhere to a budget of $150,000.

Project Objective

The project’s scope involves developing an enhanced brain-sensing headband that will create significant consumer demand. This headband will be marketed over a 6-month period and aims to achieve the following deliverables:

• A brain-sensing headband capable of controlling other consumer devices.
• An affordable brain-sensing headband for customers with an annual income exceeding $75,000.
• A wearable device that is both comfortable and visually appealing.
• A brain-sensing headband that boosts production by 25 percent.
• A brain-sensing headband that expands the customer base by 20 percent.
• A brain-sensing headband that outperforms all competitors in sales.

An additional goal of the project is to introduce a new wearable device that integrates with and enhances existing Cosmo products, such as those for fitness coaching, nutritional coaching, and lifestyle advising.

Project Milestones

• Develop marketing campaign: Estimated cost = $35,000
• Design brain-sensing headband: Estimated cost = $30,000
• Set up and staff assembly location: Estimated cost = $25,000
• Purchase required materials: Estimated cost = $25,000
• Set up and staff quality control department: Estimated cost = $15,000
• Set up and staff shipping department: Estimated cost = $20,000
• Total Cost: $150,000

Approach

The project approach will adhere to the Project Management Body of Knowledge (PMBOK) standards. It will be divided into the standard PMBOK phases: initiation, planning, execution, monitoring and control, and closing. In the initiation phase, a project charter will be created, authorizing, funding, and defining the project as a business need. The planning phase will involve developing a project management plan detailing execution methods, team roles, and the project schedule. This plan must be approved by the project sponsor before becoming official. During execution, the project deliverables will be produced. The monitoring and control phase will ensure adherence to the project management plan, tracking schedule, cost, and scope. Upon completion, the project will be officially closed, and lessons learned will be documented (Project Management Institute, 2017).

Assumptions

Key assumptions for the Cosmo project include:

• Availability of key members throughout the six-month timeframe.
• The required skills and performance levels of key members.
• Adequate allocated funds to complete the project on time and within scope.
• Accuracy of the marketing strategy and proper identification of customer demographics (PM Tips, 2019).

Constraints

The primary constraints of the Cosmo project include:

• The 10-week timeframe for developing, testing, and marketing the brain-sensing headband.
• Quality control challenges, given the novelty of the technology. Producing a reliable and high-quality headband that surpasses competitors is crucial.
• Budget constraints, requiring precise estimates and adherence to budget to ensure product quality.
• Scope constraints, which will affect the project if time or budget become insufficient.

Dependencies

Several dependencies are involved in the development of the brain-sensing headband:

• Comprehensive market research to identify desirable features.
• Availability of technology and skilled workforce to incorporate features into the headband.
• Testing to maintain quality, scope, and cost, with recorded and communicated results affecting all these aspects.
• Successful marketing and customer demographic identification, relying on a skilled marketing team knowledgeable in social media and data analytics to achieve a 20 percent increase in the customer base.

Initial Risk Factors

Introducing new technology brings inherent risks, including:

• User-friendliness of the device.
• Reliability and consistent performance.
• Compatibility with a wide range of devices from various manufacturers.
• Cost-effectiveness, ensuring the device is affordable for customers with incomes over $75,000 without excluding potential buyers due to high costs.

Roles and Responsibilities

Project Scope Overview

Cosmo Inc. is a leader in wearable technology development, sales, and distribution, including fitness coaching, nutritional coaching, and lifestyle advising products. A recent market analysis revealed increased competition. To maintain its 33 percent market share and increase it in the future, CEO and President Harold Living has determined that a new marketing strategy is necessary. This new strategy will incorporate technology trends into the existing marketing program.

Project Scope Description

Following the marketing analysis, a new marketing campaign must be developed and implemented. The scope of the campaign includes increasing the production of wearable technology by 25 percent and expanding the customer base by 20 percent. Achieving the 20 percent increase requires identifying customer segments based on age, demographics, income, education, and technology. The campaign will utilize current technologies, such as social media and data analytics, to reach new customers. The ultimate goal is to establish Cosmo Inc. as a leading company in wearable technologies.

The project scope encompasses deliverables, the project lifecycle, data collection methods, and data sources:

• Project deliverables: New Marketing Strategy
• Project lifecycle: 10 weeks
• Data collected: Sales levels and customer base levels
• Sources of data: Performance Reports
• Data collection organizations: Marketing, Finance, Information Technology, Customer Service

Acceptance Criteria

The acceptance criteria for the new product marketing plan include effectively presenting the new product to a broad demographic range. The marketing plan rollout must be well-coordinated and closely monitored for effectiveness. Tracking customer reviews and sales levels will ensure metrics are achieved. Sales levels should rise steadily in alignment with marketing efforts.

Deliverables

The initial deliverable is the new product. After producing and testing the new product, the marketing campaign will launch. The next deliverable is a 25 percent increase in sales within 12 months. This will be followed by a 20 percent increase in the customer base. The final deliverable is establishing Cosmo Inc. as a leading competitor in the wearable technology market. The marketing strategy project deliverables work together to ensure a successful outcome.

The marketing team is responsible for developing and implementing a plan to increase sales by 25 percent and the customer base by 20 percent. The plan should address age, demographics, income, education, and technology, incorporating current trends in internet, digital services, data analytics, and mobile technology.

The customer service team must establish support services for the new product, understanding its unique features to design an effective support program. Given the advanced technology of the brain-sensing headband, customer support must be well-trained in its specifics.

References

Project Management Institute. (2017). Part 1: Chapter 4, “Project Integration Management.” In A Guide to the Project Management Body of Knowledge (PMBOK® Guide–Sixth Edition / Agile Practice Guide Bundle: Vol. Sixth edition. Project Management Institute.

PM FPX 4010 Assessment 1 Project Charter

PM Tips. (2019). Defining Project Assumptions. Retrieved from https://pmtips.net/article/defining-project-assumptions