D.A.P. Exports will offer a 15% discount on all purchases of $1,000 or more. We will also have two salespeople based in Latin America and the Caribbean. Our focus will be to establish our future on a strong relationship with the region's taxi services.
James has established export contacts in Latin America and the Caribbean, that will make the process of developing an export channel for car parts much easier. In these countries, much business in done by a handshake and word of mouth, rather than formal contracts. His experience and contacts will be invaluable in this environment.
The products that D.A.P is selling are made for older cars, and the trend in this country is towards newer cars, therefore domestic demand for these parts is falling. For this reason, James will be able to negotiate excellent prices on the products that he will sell. He will also order in bulk which will further increase his negotiating leverage.
The other competitive edge of D.A.P. Exports is that we can assemble a product package that is exactly what a specific customer wants. When the taxi service buys directly from D.A.P. Exports, they will receive the highest quality product at the lowest price. Previously, because of the lack of an organized, established channel, car owners had to spend time shopping around for parts. Therefore their cars would be off the road for longer periods of time--every day costing them more lost revenue.
The following is the sales forecast for three years.
The accompanying chart and table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
During the months of May and June the regional salespeople will deliver presentations to taxi firms and auto parts stores in the region. D.A.P. Export will offer a 15% discount on all purchases over $1,000.
The key to the marketing strategy is continuous follow-up with customers so we can anticipate the parts inventory that will be needed in the future.