Appendix B | BUSINESS PLAN FOR A MANUFACTURING BUSINESS | 235E. Product Description
The corporation plans to manufacture two products, both based on the Smith Patent.
One of these is the Kinet-O-Scroll, which is designed for commercial applications. The
other is the Kinet-O-Scope, which is designed for home recreational use. They are more
fully described as follows:
The Kinet-O-Scroll: This consists of a scrolling “Times Square”-type message sign.
Using its patented technology, DAY INTERNATIONAL, INC., can produce a moving sign
that is more versatile, attractive, and economical than existing units. Basically, the Kinet-
O-Scroll displays alphanumeric, graphic, and animated characters in full color. While
the sign can be manufactured in numerous sizes, we plan to start with a unit with a
screen measuring three feet vertically and four feet horizontally. All sorts of businesses,
including restaurants, bars, banks, stores, real estate offices, airline terminals, bus stations,
etc., can use the Kinet-O-Scroll sign to inform customers of special events or offers at
a comparatively low cost. The cost of the unit may further be reduced by users who
make arrangements (tie-ins) for reimbursement by advertisers. This could be the case
where companies that manufacture products or services that a retailer sells (e.g., clothing,
insurance, soft drinks) pay for advertising or provide their product at a better discount in
exchange for advertising. There are hundreds of thousands of potential locations for such
a low-cost merchandising tool.
The Kinet-O-Scroll is completely developed and tested. The first 100 production
units have been completed and a production capacity of over 200 units per month is
established. It is projected that the sales rate will rapidly build to a minimum of 100
units per month. This sales estimate, as well as long-term sales projections for the
Kinet-O-Scroll, is based on extensive research into the need for this type of product, as
well as into the sales history of existing (but inferior) products. This research has also
involved consumer studies in which potential customers were asked to rate a variety of
existing products against our new product.
In outline form, here is what we believe to be an objective summary of the “strip
sign” market and the sales potential of the Kinet-O-Scroll:
• The Kinet-O-Scroll is unique in its mode of operation and its technical capacities.
For example, it provides at least twice the visual resolution of other scrolling signs.
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