We address the market through three business segments: speciality products, textile chemicals, and consumer products. We are a highly technical niche player who has developed strong alliances with distributors who have powerful channel relationships but lack manufacturing or product development capabilities.
Our marketing strategy assumes that we will serve these distributors in three ways:
Our competitive edge is in the formulations and manufacturing processes we have developed for the production of the seven products in which we specialize. As detailed above, we are in an excellent position to capture a significant part of the $300 million Creatine Monohydrate market. We simply need to establish a marketing program and begin to promote our capability.
Our sales strategy is outlined below in three phases.
Both phase one and two will primarily be toll and custom manufacturing.
Our sales forecast assumes no significant change in costs or prices, which is a reasonable assumption for the past two years.
Our sales increased from 1997 to 1999. We anticipate a slight drop in 2000 due to financial constraints. All of these sales were without the benefit of a marketing program. We feel that with a good marketing program and adequate manufacturing facilities we can achieve substantially increased sales goals in 2001 and 2002. While this seems ambitious, we rely on our distributors' projections and based on that, we know we will be able to literally sell to the production capacity of our manufacturing facilities.
The following table shows specific milestones, with responsibilities assigned, dates, and budgets. We are focusing, in this plan, on a few key milestones that can be accomplished. In addition, shortly following funding we will hire a vice president of marketing and two office personnel. Plant personnel will be added as equipment and facilities are operational.