The company will focus on the Mexican tourism market. By using the company's services, our clients will either establish, or improve, their presence on the World Wide Web. By using this Web presence, they will be able to reach ten of millions of consumers who use the Web regularly.
Our marketing strategy is based on testimonial and reference advertising. We will use trade publications and direct advertising to establish our brand as the high quality source for Web design and infrastructure services in the Mexican tourism industry.
Our strategy involves creating a niche for Web services in our industry and then positioning ourselves as the leader in this new niche.
Our sales strategy will begin by supporting marketing's need for reference accounts.
Subsequently sales will focus in two areas. First, the sales force will work leads generated by advertising and word of mouth to establish new customer accounts. Second, the sales force will work with existing customers to renew and improve their website.
There are four principal things that will differentiate Spanish Resources from the competition.
First, the company will have a blend of both Mexican cultural understanding, and World Wide Web infrastructure.
Second, the company will build a strong brand through advertising and promotion.
Third, the company intends to define its business activities as a new niche blending website design with Mexican tourism.
Fourth, the company will use its position as an early entrant in this new niche to create opportunities for a word of mouth reputation based on quality and a high level of service.
Taken together, these four differentiators represent a proven World Wide Web competitive strategy.
As Web markets move from the early stages of experimentation into more mainstream usage, an opportunity is created to aggressively define a new service niche targeted specifically on the peculiar needs of a specialized market.
The company's research indicates that several resorts are experimenting with websites. As tourism booking move online, this market is a natural target for such a strategy.
The company's sales strategy has two distinct phases.
In the first phase the company will identify direct sales opportunities in Mexican regions that have a high concentration of resorts. The direct sales force will approach these sales opportunities in one-on-one meetings.
The primary goals in this first phase are locating accounts that appear to be good candidates for advertising references (for example a famous Acapulco resort), improving the quality of the sales presentation and refining sales technique. Meeting revenue targets are secondary consideration in the first phase.
In the second phase, the company expects to generate sales leads from advertising promotion and word of mouth. This should make the direct sales force more efficient, and therefore capable of making revenue targets the primary sales goal. Furthermore, the sales force will be operating on a steadily increasing client base from whom new orders can be taken.
The company expects the first phase to take approximately six months and the second phase to begin thereafter.
The company's compensation plan for salespeople is based on a combination of base salary and sales commissions.
The sales forecast is based on several assumptions.
First, that the potential market is very large, in particular there is significant pent-up demand for an Internet presence among travel destination operators.
Second, that initial sales will come from sales calls on potential clients.
Third, that establishing reference accounts are the most important early sales targets.
Fourth, that advertising and promotion, in the presence of referenceable accounts, will generate most of the sales leads starting in the third quarter of operation and extending into the steady state.
The principal limiter of sales volume is the company's capacity. We expect advertising to generate more sales leads then the company can fulfill.
Therefore, we have projected approximately 25% year-on-year sales growth based roughly on the growth and size of operation. Furthermore, we anticipate the ability to be selective about clientele due to the excess demand for the company's services.