Infotext Strategy Letter
Strategy and Implementation Summary
The Infotext Strategy Letter will focus on three geographical markets – the United States, Europe, and Latin America; and in limited product segments – personal computers, software, networks, telecommunications, personal organizers, and technology integration products.
The target subscriber is usually a manager in a larger corporation, and occasionally an owner or president of a medium-sized corporation in a high-growth period.
5.1 Sales Strategy
The sales forecast monthly summary is included in the appendix. The annual sales projections are included here. Subscribers, renewals, and cancellations, as well as sales units, are detailed in the General Assumptions table in the Financial Chapter.
For purposes of planning, we assume that a cancellation costs $300 on average. Cancellations will come at various times during the year, but on average a cancellation in the third month is a good guess.
| Sales Forecast | |||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Sales | |||||
| Newsletter subscriptions | $151,206 | $211,720 | $296,250 | $414,750 | $580,650 |
| Cancellations | ($1,800) | ($2,700) | ($4,800) | ($8,100) | ($12,300) |
| Total Sales | $149,406 | $209,020 | $291,450 | $406,650 | $568,350 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Outside editing | $7,959 | $0 | $0 | $0 | $0 |
| Outside Production | $7,959 | $0 | $0 | $0 | $0 |
| Physical Production | $11,938 | $13,000 | $14,000 | $15,000 | $17,000 |
| Other | $9,700 | $10,000 | $10,000 | $10,000 | $10,000 |
| Subtotal Direct Cost of Sales | $37,555 | $23,000 | $24,000 | $25,000 | $27,000 |
5.2 Milestones
Our detailed milestones are shown in the following table and chart. The related budgets are included with the expenses shown in the projected Profit and Loss statement, which is in the financial analysis that comes in Chapter 7 of this plan; or in the direct cost of sales portion of the sales forecast, for outside vendors.
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Business plan | 6/1/2002 | 7/19/2002 | $0 | Hattusa M | Devpt |
| Hiring main manager | 7/19/2002 | 8/31/2002 | $1,000 | Hattusa M | Devpt |
| Initial layout design | 9/1/2002 | 9/30/2002 | $3,000 | TBD | Newsletter |
| Website prototype | 9/1/2002 | 11/15/2002 | $10,000 | TBD | Newsletter |
| Coverage plan, first year | 10/1/2002 | 12/15/2002 | $0 | TBD | Newsletter |
| Initial mailing | 11/15/2002 | 12/15/2002 | $5,000 | Arcadia F | Marketing |
| Website launch | 11/15/2002 | 12/15/2002 | $7,500 | TBD | Newsletter |
| Newsletter launch | 12/31/2002 | 1/10/2003 | $7,500 | Arcadia F | Marketing |
| Initial marketing | 1/10/2003 | 3/31/2003 | $10,000 | Arcadia F | Marketing |
| Initial content, first issue | 10/1/2002 | 11/31/2002 | $0 | TBD | Newsletter |
| Totals | $44,000 | ||||
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