The national market for JTB consists of 314,555 potential clients in the following categories:
The Louisiana market consists of 4,553 potential clients in the same categories.
These industries represent our intended target market. Our sales goal is to integrate our Industrial Products and Services into the above markets. Our sales approach is simple, utilizing a well-trained, inside sales staff to approach new clients, and to respond to well-placed ads in industrial publications. Our P.C.-based server applications will make it possible for these businesses to interact closely with JTB and its distributor partners.
We have divided our potential customers into industry groupings. However, their needs are quite similar:
Our marketing strategy for each target market segment will vary slightly. We will focus our direct marketing efforts on the Aerospace, Automotive, and Primary Metals and Machining industries, introducing these clients to our products and services. In particular, our combination of over 300,000 catalog items, and our industrial services, providing re-manufacturing and secondary services, will allow us to sell ourselves in many different ways. Also, our base of sub-contract service providers will allow us to offer many different programs via our distributorship.
Online use in our market has changed over the last five years. Business sites are gradually becoming more informational, where originally, businesses were impressed with a more graphical presentation. What has driven this is the search engines, and how they analyze a site's content for ranking. Additionally, trade magazine ads are now much more likely to contain a business' Web address, further fortifying JTB's argument for better marketing solutions. As buyers visit the larger manufacturers' sites, they become spoiled by the advanced features of the site; upon returning to the smaller business' site, they may be turned off by its less advanced features. Our niche market is small- to mid-sized corporations. Larger firms like Peoplesoftware, Profit2100, Dimasystems, and Net2soft have targeted larger clientele developing very expensive software and netware packages starting at $10,000 and up.
Over the last five years, we have been working with a limited budget to acquire as much knowledge as possible about script processing to drive user/owned, user/developed site content management systems that incorporate many of the features found in higher-end programs. JTB will bring these products to market for 1/10th of the cost, while earning additional revenues with paid support services.
JTB's market is serviced by many types of media, marketing, and business applications development companies. Traditionally these developers dictate to the clients what it is exactly they can offer, or a potential client has seen a product they have produced that offers some features they like. In JTB's case, all of our applications will utilize Web technologies to allow full customization and personalization of our products to exactly match the businesses marketing theme. Our view is simple: the market is made up of businesses looking for work, businesses wanting to sell or distribute products, and a large offering of Web-based sites backed by large trade magazines. Ad rates for the industry are also very high, with most companies except the very large relying on other avenues to develop new clients. Caught in the mix is a large group of small- to mid-sized manufacturers using all types of low-end marketing.
JTB's management has been working in this marketplace for the last 5 years, collecting information, and talking to businesses about their needs. As I was, most businesses are unhappy with the Web development aspects of marketing, and many of the businesses in this group have not had great success with attracting additional business via their sites. Sites tend to stagnate and are not utilized effectively by the businesses as they are at the mercy of the site developers demanding fees for continual changes. In most cases the developers do nothing in the way of marketing the sites, and I have seen in some cases, sites are not even registered with the search engines.
JTB will develop interactive, Web-based products to replace older technology sites, or work with their existing site. As intended, we will develop our P.C.-based sales and marketing products, to work interactively with the businesses' sites, providing real-time inventory and other customer-demanded interactivity.
JTB products and services are focused on some rather unique markets. As such, these markets are supported by niche products and services providers all over the U.S.
Industry by count:
The above client numbers are based on data available from Hugo Dunhill Mailing Lists, Inc., our preferred database provider. Larger firms like Peoplesoftware, Profit2100, Dimasystems, and Net2soft have developed very expensive software and netware packages starting at $10,000 - $50,000 and up. Our cost analysis has shown that there are many cost competitive options available for businesses to choose from, in many cases they are simply unaware they are available. As a service business that will utilize our own products, we can market and demo our products simultaneously, further reducing our costs per solicitation.
JTB's integrated technologies services business consists of developing customized business growth and customer services solutions. As our clients will be throughout the U.S, most if not all of our work will be done online, via the Internet. JTB will offer distributed software products from well known names in the Accounting, CAD, Engineering, and Shop management software fields, along with our own software titles as well. Our support services will help our clients implement their installations.
As our niche market is small to mid-sized corporations, these potential clients can benefit from our industrial sales division's distributed products. Once the potential client becomes an established client of any JTB division, each can be reviewed by the internal staff for further potential. JTB's product and services division will compete for market share with a high-quality offering of products and services that focus on providing the customer with longer operation life, and select product lines tailored to each customers specific needs.
JTB's integrated technologies division will distribute our services online. As mentioned in the fulfillment section 3.3, there are also plans for 3 additional satellite offices to further the growth of our business.
Automotive clients: These clients are made up of individual auto repair businesses. They purchase supplies via local suppliers and catalogs. Our products for this market are specialized time savers, and will be marketed as such. Also, our industrial sales division can sell to these clients via catalogs and through our online sales process. Competition in this marketplace is well developed as local suppliers providing standard products, our unique lines will be directly marketed to the shops, along with information about our industrial supply services.
Commercial Utilities and Drilling clients: These clients are made up of individual commercial service providers and contractors providing hole drilling services. Our process for re-manufacturing / re-building their drilling units will better the OEM's efforts to make and sell a quality tool. The base cost index for these tools is very high, typically in excess of $2675 per unit. These clients generally pay a minimum of 50% for a rebuild. Competition in this marketplace is developed as commercial plumbing supply houses; typically, the client is on their own in terms of technical help. Our unique cost saving rebuild process will be directly marketed to them, also our industrial sales division can service these clients as well.
Sporting Good Service Centers: These clients are made up of bowling suppliers. Our patented products will out-perform any available products, and create a large re-conditioning market for JTB, as our patented products can only be reproduced by us. Competition in this marketplace is not very strong, as no one has developed a product for this process, nor has there been any standardization for this process. Our Max-Drill product line re-defines the process giving the shops a place for technical help, good service, and a product that provides ease of use, and a very cost-effective process.
Metalworking and Manufacturing: These clients are made up of Machine shops, Aerospace Manufacturers, and other specialty manufacturers requiring industrial products and services. Our services department will add value and services to JTB's industrial sales division, as it can utilize the services division's equipment to provide its clients with custom solutions. Competition is strong, as these clients work with both local suppliers, and catalog companies. As JTB has a very marketable mix of industrial sales, and industrial services, this will provide the added edge to acquire clients.
JTB Technologies, Inc., as a whole, is a holding corporation, rather than a single competing entity in one marketplace. Foreseeing the need for a variety of goals to fulfill a more rounded offering of services, our sub-divisions do have competition both locally, and nationally.
Locally, we will be up against well-established industrial distributorships providing many products and services to the local customer base. These competitors are forced to outsource most of their services. Our business concept will be much more beneficial, cost effective, and expeditious for our clients.
The local distributorships in size compare to our Third, Fourth and Fifth year projections in terms of their size. There are also mega catalog distributorships with sales up to 50 Million annually.