Circuit Fitness Importing will leverage their competitive edge of intelectual property (IP) (actually a license to use the IP) that takes the form of a patent in the innovative Esercitazione Diritta approach to strength training. The marketing strategy will have an emphasis on the development of the customer network and relationships. Lastly, the sales strategy will be the work on moving the fitness units into a variety of different facilities through the emphasis of an efficient, innovative workout.
The first step that Circuit Fitness Importing must accomplish to prepare itself for the implementation of the marketing and sales strategy will be the development of a support infrastructure. The costs of importing which include shipping, duties and tariffs, warehousing, and distribution will be captured and detailed as a direct costs of goods founding the sales forecast. The following areas will need to be addressed:
Circuit Fitness Importing's competitive edge is their ability to license and use Wega's intelectual property which takes the form of numerous international patents for Esercitazione Diritta. Esercitazione Diritta is innovative in the sense that it is the only equipment that allows the user to stand while performing strength exercises. This is of significant advantage for several reasons:
This ground breaking technology will provide significant differentiation for Esercitazione Diritta and assist them in their U.S.A. market penetration.
The marketing strategy will consist of the following activities designed to develop a network of customer relationships:
The sales strategy will initially be based on the goal of trying to get large clubs to adopt Esercitazione Diritta equipment. This is quite attractive to Circuit Fitness Importing for a couple of reasons:
Circuit Fitness Importing will also work on sales to distributors. Distributors are useful because Circuit Fitness Importing is able to leverage the distributor's sales efforts for increased sales. This comes at a slightly smaller margin for the distributor customers. In all of the sales efforts, Circuit Fitness Importing will emphasize the innovative patented technology that is a part of the Esercitazione Diritta equipment that no other manufacturer can claim to offer.
The sales forecast has been developed as a means for predicting and tracking sales. The direct costs of goods reflects the following components that have been converted into a percentage of sales:
Circuit Fitness Importing has adopted a series of milestone as goals for the organization. Different sections within the company are responsible for different milestones. The following table provides detailed information about the milestones.