How to Write a Business Plan

238 | HOW TO WRITE A BUSINESS PLAN

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Market Research

Wave

Kinet-O-

Scope

Rain

Lamp

Light

Organ

Lava

Light

infny

Light

Preferred product 9% 56% 9% 1% 10% 13%

Already own it 2% 0% 2% 3% 4% 0%

Would buy it for self 32% 49% 18% 9% 16% 24%

Would buy it as gift 43% 52% 18% 11% 5% 31%

Estimated retail price ** $104.52 ** ** ** **

Age: Under 16: 3% 16–20: 11% 21–34: 41% 35+: 45%

**Average Total Estimate: $168.69; Actual: $160.00

F. Marketing Plan

The channels of distribution for the Kinet-O-Scroll and Kinet-O-Scope will include direct

sales by corporate personnel to selected major accounts, and the use of manufacturer’s

representatives (sales reps), distributor’s dealers (wholesalers), and international trading

companies to reach the rest of the market. We do not anticipate establishing our own

factory sales force. With regard to international sales, except for “opportunity sales,”

we will not launch our formal effort until we have adequately penetrated the domestic

market. However, we will explore licensing our technology abroad.

In the beginning, DAY will team with a limited number of sales reps and wholesalers

who have proven abilities in successfully introducing new electronic products. At

first, the emphasis will be on developing market penetration in a few carefully chosen

regions near our manufacturing facility. The reason for this approach is to properly

identify effective pricing techniques and marketing strategies. Information gathered will

be used to fine-tune stocking requirements, manufacturing rate requirements, etc., for

general North American distribution. In short, we want to be sure we are walking with a

firm and steady tread before we begin to run.