We are a highly technical niche player with a specialized product line that is in great demand. Our target markets are the distributors who have established relationships with speciality products firms, textile chemical companies, and consumer products outlets. We are essentially the manufacturing arm for these distributors and can provide development services, as well as products for them.
Our market is divided into three segments:
Note: Customer and Distributor company names and financial information have been removed from this sample plan to protect proprietary and confidential information.
Consumer Market: This is potentially our biggest market for Creatine Monohydrate; it is limited only by our ability to produce. We have distributors who are begging for the product and we have back orders now, so it is only logical that we will devote most of our time meeting this demand. We look at the potential in this market as the basis for our growth.
Industrial Products: Here, we are selling both through distributors as well as direct to manufacturers. This is an untapped market and has been sustained by our reputation and ability to meet formulation criteria. We know that a marketing effort in this segment will produce sales that could quite possibly bring this segment to an equal level with the consumer market.
Textile Products: We have enough experience within this segment to know that once our manufacturing capability is up and running we could actually devote an entire marketing effort to this segment alone. Both our toll and custom manufacturing capability is strategically attractive to all textile manufacturers, including growing markets outside the U.S.
The chemical industry is characterized by a wide variety of companies ranging in size from the large companies such as DuPont and Monsanto to smaller specialty firms such as ours. The companies are generally organized by either end-use markets or product technology. In the past decade there has been a general trend in the industry to change emphasis from chemicals to biotechnology and pharmaceuticals. The cost of product development and the need to operate factories at high levels of capacity have caused chemical companies of every size to outsource parts of the chemical and manufacturing processes. This has created opportunities for smaller companies to create and occupy niches in development and contract manufacturing. The outsource industry providers occupy a market segment commonly identified as custom and toll manufacturers.
In the mainstream business, channels are critical to volume. Manufacturers and distributors with impact in the international chemical market desperately need speciality and toll manufacturers like us to meet the demand. There are many specialty manufacturers, all of whom seem to have carved out a specific niche of expertise, and upon whom these major manufacturers depend for products. In competition, it seems that the line is drawn at the level of quality performance. We have achieved that level and are recognized for a high standard of quality performance. Companies who would seem to be our competition have subcontracted production to us because they do not have the ability to supply that level of quality.
We have achieved another milestone in the industry by developing certain formulations which we estimate would cost another firm $450,000 to duplicate. The Creatine Monohydrate formulation and process is one of them. We have the only process in the world that can produce this supplement in liquid form. It is extremely important that we seize this opportunity and begin to exclusively market this product.