ChemSafe
Strategy and Implementation Summary
ChemSafe products will focus on becoming the leading provider of biodegradable, environmentally safe, citrus cleaners.
5.1 Competitive Edge
Charles Marshall is the competitive edge of ChemSafe. Charles has worked for both Acme Janitorial Products and Wilson Cleaning Services over the past fourteen years. In his last position with Acme Janitorial Products, Charles sold cleaning products to numerous markets on the West Coast. He generated sales in excess of $4 million annually. His strength is his customer relation skills and he has been successful in expanding the range of products purchased by wholesale distributors in his sales region.
Before joining Acme Janitorial Products, Charles was a supervisor for Wilson Cleaning Services for six years. Wilson Cleaning Services is the largest janitorial firm in the greater Lane County area with sales in excess of $4 million dollars annually.
During his years with both Acme Janitorial Products and Wilson Cleaning Services, Charles has made invaluable contacts with wholesale distributors, janitorial professionals, and commercial retail outlets. This gives ChemSafe products the competitive edge in introducing its new products to its target customers.
5.2 Sales Strategy
ChemSafe products are safe but strong cleaning products. Our target customers know that consumers want to use products that do not damage the environment. More importantly, there are no health risk in using ChemSafe products.
ChemSafe products will have three distinct sales approaches:
- For Wholesale Distributors: We will offer the distributors a 20% discount on wholesale purchases for the first three months of operation. Charles Marshall will market ChemSafe products to the distributors. Charles believes that distributors will see the advantage of ChemSafe products for institutions like schools and hospitals.
- For Janitorial Professionals: We will offer janitorial professionals the wholesale price for ChemSafe products for the first six months of operation. Charles Marshall will market ChemSafe products to the janitorial firms. Charles believes that these firms will see the advantage of ChemSafe products as a cheaper and safer alternative to their current cleaning materials.
- For Consumers: We will offer the consumers prices that are only 5% over wholesale for ChemSafe products. ChemSafe will be marketed to consumers through ads in natural living magazines, like Natural Life magazine and Conscious Living magazine.
5.2.1 Sales Forecast
For the first month there will be no sales, as the company will be establishing its operations. We anticipate that sales will grow quickly during the second and third month of operation.
The following is the sales forecast for three years.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Wholesale Distributors | $188,500 | $210,000 | $234,000 |
| Consumers | $25,000 | $32,000 | $40,000 |
| Janitorial Professionals | $149,000 | $180,000 | $230,000 |
| Total Sales | $362,500 | $422,000 | $504,000 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Wholesale Distributors | $46,800 | $55,000 | $60,000 |
| Consumers | $5,000 | $6,000 | $7,000 |
| Janitorial Professionals | $32,800 | $43,000 | $52,000 |
| Subtotal Direct Cost of Sales | $84,600 | $104,000 | $119,000 |
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