Market Analysis Summary
National market Description consists of 314,555 potential clients in the following categories:
- Aerospace Industry - High Tech Manufacturers, and supporting sub-industries
- Automotive - Automotive repair, and Auto body industry.
- Automotive - Auto Makers, and their support industries.
- Primary Metals - Machining Industry - Turbine, Valve, Specialty Manufacturers, and Machining industries.
- Sporting Industry - Sporting Goods manufacturers, and Services industries.
- Mining and Contractor Industry - Hole drilling and Utility service providers
The Louisiana Market consists of 4,553 potential clients in the same categories.
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 software applications will make it possible for these businesses to interact closely with JTB and its distributor partners.
4.1 Market Segmentation
- Our customers are seeking cost reduction in their daily operations. As JTB will function as a distributor and a service provider, we can deliver custom specialty products faster, with fair, competitive prices.
- All of the above markets are seeking longer product life, resulting in higher profitability. Our overall experience in machining, grinding, and production management can provide our clients with actual measurable results.
- All market segments purchase similar products and services, consolidating our internal purchasing and marketing costs, maximizing long range profitability, while reducing external costs as we gradually implement our order placement systems.
- All can be serviced via existing modes of transportation (UPS, Fedex, DHL).
4.2 Target Market Segment Strategy
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.
When order management and inventory systems are completed by the Integrated Technologies Division, they will make it faster and easier to place repeat orders. Special incentives will be given to the businesses using the system as well, further reducing our external costs.
4.3 Service Business Analysis
JTB products and services are focused on some rather unique markets. As such, these markets are supported by niche product and service providers all over the U.S.
Industry by count:
- Auto Body clients available: 62,361
- Commercial utilities and drilling services available: 3,200
- Sporting Good Service Centers: 6,164
- Metalworking and Manufacturing: 238,764
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.
4.3.1 Competition and Buying Patterns
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 Rachel 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.
4.3.2 Distributing a Service
JTB's primary goal is focused on developing one-on-one business relations during the first four years of the business plan; however, beyond that, we may consider working through distribution for additional business.
As our plan describes our primary goal of repayment to our initial investors by the fourth year, we will not make arrangements for distribution of our products or services unless it represents a major addition to the business, and maintains our projected profits as well.