JTB Integrated Technologies is targeting the following markets:
Our business-development goals are to integrate our marketing and business development services into the above markets. Our P.C.-based applications will make it possible for these businesses to partner with our distributor partners and service providers. These distributor partnerships with smaller businesses can then take on larger clientele they previously did not have the capacity to handle.
The approximate number of clients for JTB in the Louisiana region, in target markets 1-5, above, is 4,553. The totals for the U.S market are 314,555. Categories 7 and 8 represent approximately 1,500 - 6,000 distributor partners who could participate in servicing categories 1-6. JTB anticipates additional marketing revenues from providing the channel partners access to the customer databases.
Key market segmentation highlights:
Our conclusion is that all markets represent what we would call approachable potential customers, and sales could occur directly, or indirectly through a channel partner. JTB anticipates the low entry costs involved with accessing our server-based systems will stimulate a strong market response. We expect that these users will continue to subscribe to our services annually.
The following table and chart show the relative size and growth rates of the different national markets. Primary Metals and Machinery is by far the largest group.
Our marketing strategy will vary slightly for each target market segment. We will directly market to the Aerospace, Automotive, Primary Metals and Machining, and Sporting Industries, introducing these clients to JTB's Industrial Purchasing, Marketing, and Vendor management solutions.
Additionally, the Integrated Technologies Division will draw its clients from the other divisions' business contacts. Our interactive order management and inventory systems will further allow our integration into the market as it is developed, to form a closer, one-on-one relationship with the client, making for a more approachable environment to market our technology. Special incentives will be given to the businesses using the system.
We will target the Mining and Contractor Industry, Industrial distributors, and Service providers for our Internet-based products for Web management, and to develop their own individual marketplaces.
The media market has changed over the last five years. Business sites are gradually becoming more informational, where originally customers were impressed with a more graphic presentation. This change has been driven by the search engines, and how they analyze a site's content for ranking. Additionally, trends in trade magazine ads are much more likely to contain a business' Web address. As buyers visit the larger manufacturers' sites, they also become spoiled with the functionality of the site. Upon returning to the smaller business' site, they may be turned off by its lack of high-end features. Our niche market is small- to mid-sized corporations, those overlooked by larger firms like Peoplesoftware, Profit2100, Dimasystems, and Net2soft, which have targeted larger clientele by developing very expensive software and netware packages starting at $10,000.
Over the last five years, we have been working with a limited budget to acquire as much knowledge as possible to test processes to drive user/owner-developed site content management systems that incorporate many of the features found in higher-end programs. JTB will bring these products to market for 1/10th of the cost, while earning additional revenues with paid support services.
JTB's market is serviced by many types of media, marketing, and business applications development companies. Traditionally these developers dictate to the clients what it is exactly they can offer, or a potential client has seen a product they have produced that offers some features they like. In JTB's case, all of our applications will utilize Web technologies to allow full customization and personalization of our products to exactly match the business' marketing strategy.
Our view is simple: the market is made up of businesses looking for work, businesses wanting to sell or distribute products, and a large offering of Web-based sites backed by large trade magazines. Ad rates for the industry are also very high, with most companies except the very large relying on other avenues to develop new clients. Caught in the mix is a large group of small- to mid-sized manufacturers using all types of low-end marketing to avoid these high-cost forms of marketing.
JTB's management has been exploring this industry for the last 5 years, collecting information, and talking to businesses. As I was, most businesses are unhappy with the Web-development aspects of marketing, and many of the businesses in this group have not had great success with attracting additional business via their sites. Sites tend to stagnate and are not utilized effectively by the businesses, as they are at the mercy of the site developers demanding fees for continual changes. In most cases, the developers do nothing in the way of marketing the sites, and in some cases I have seen, websites are net even registered with the search engines.
JTB's Integrated Technologies Division will develop interactive, Web-based products to replace older technology sites, or work with their existing site. We will develop our sales and marketing products to work interactively with the business' website, providing real-time inventory and other customer-demanded interactivity.
JTB's Integrated Technologies Division is part of the Business-Oriented Computer Software industry. This industry ranges from giants like Microsoft Corporation to small, 1-2 people enterprises in smaller niche markets. We are generally competing with non-integrated, multiple software products, each of which can handle one part of the overall task management of buying, making, and selling products and support in our targeted markets. We will be the first in the industry to offer an integrated software package, from design to hosting, for small- to mid-sized companies in the industries.
JTB's business development division will distribute its services in several forms: first, as a business development firm providing badly needed alternatives to customer support and marketing; second, as a business partner integrated with our other JTB divisions and marketing sites, providing work opportunities for businesses utilizing our software technologies. As mentioned in the fulfillment section 3.4, all of our services will eventually be accessible online. In plan year 5, there are also plans for 3 other satellite offices to further the businesses growth.
Things to consider about our competitors:
Client buying patterns vary greatly, and are normally driven by management's needs to promote better customer support, and to further develop new sales territory. As with all businesses including our target markets, software and applications upgrades change as newer computer equipment is developed. It is our opinion that most small to mid-sized corporations do not have a well balanced interactive sales and marketing environment that is capable of growing with their business. This has been seen many times while interacting with these businesses in both a prospective client situation, and as a vendor.