Rosafarbenes Nilpferd & Sons Engineering, Inc., established a strong foothold for a niche technology marketplace for Product Category One* products. The potential market demand is 180 million units and it grows at a rate of 22% each year. Recent growth in sales and profitability at RNSE are evidence of its success in this market boom. Sales are expected to increase by $280,000 from the first quarter of Year 1 and $1,600,000.00 by the end. They will also reach $14,000,000 by the end third year. Similar growth patterns will see before tax profits rise substantially by Year 1 and continue to increase through Year 3. These results can be achieved without the need to increase fixed assets. To support the growth of current assets, a small bank facility is required in the form a $150,000-$200,000 line of credit. Half of these will be prime corporate receivables.
*Note, Propriety and confidential data have been removed or disguised from this sample plan.
1.1 Objectives
Rosafarbenes Nilpferd & Sons Engineering is striving to be the best manufacturer of Product Category One products with the most advanced technology. The measurable objectives are:
- Complete work to ensure that RNSE’s products are compatible with at most five of the most popular operating systems in the first-tier (by month 5, Year 1) and at minimum three more within a year.
- Do a complete website redesign. Send a quality mailer out to 300 Value Added Resellers.
- A professional media analysis is used to create an advertising campaign in trade magazines that targets the telecommunications, instrumentation, and industrial automation sectors.
- Networking and partnership with technology manufacturers and operating system developers will allow you to arrange at least five banners/links with market-related websites on a reciprocal basis.
1.2 Mission
Rosafarbenes Nilpferd & Sons Engineering’s mission is develop cutting-edge Product Category 1 Solutions for Appliance and Equipment Makers who, due the fast pace technology, are under pressure get their products to customers quickly. RNSE does this by having a small “:think tank-style technical team and outsourcing manufacturing. It also keeps a marketing offering that caters to the most demanding Product Category One needs, while leaving the simple, high-volume, price-sensitive market requirements to the competition.
Notice: Some proprietary and confidential information have been disguised or omitted in this sample plan.
1.3 Keys to Success
There is such high demand and huge growth potential that it is almost impossible to sell Product Category 1 devices. Here are some key elements to keep in mind.
- Contract manufacturing devices is possible provided there is a sufficient stock. Ordering sensitive components requires careful planning. To support long inventory periods, sufficient financing is required.
- Avoid excessively time-consuming questions originating outside of the targeted market. Technology is something everyone is interested. It is important that you sort through all the inquiries and only respond to those that fit within your sales and marketing parameters. This includes requests for between 100-1000 units and high-end sophisticated equipment.
- Build a reputation for high-quality reliability by moving quickly. The market need for Product Category 1 devices is potentially so large that more competitors can be expected. It will be difficult to establish an image in the future.