H20 Industries, Inc. (H20 Industries) provides the service of ion exchange portable tanks. This is the process of purifying water for industrial purposes. H20 Industries will take advantage of an unsatisfied market need for segregated resin regeneration on a portable basis. The company will primarily focus its marketing strategies on offering segregated regeneration services to the untapped market of customers who require high-quality regeneration for their deionized (DI) water treatment facilities. The facility that H20 Industries will utilize is located in Newark, California and is already in limited production. Full production will begin at the end of September, with sales growing gradually to near capacity by the end of the first year, with very healthy gross sales in the first year, and increasing in the second and third years.
The primary objectives are:
- To segment the market for portable regeneration service by stressing H20 Industries's capability at providing segregated regeneration. The goal is to reach monthly sales of 1,710 cu ft of segregated resin by the end of the first year.
- To build up a dealership network of 15 knowledgeable and efficient water service companies who will represent H20 Industries in areas outside direct sales from the factory.
- To set up a bulk regeneration facility with a capacity of 40 cu ft daily, and sell its full capacity in the large general portable exchange service market through its own sales force, and through a dealership network.
H20 Industries's mission is to segment the market for pure water by providing niche products to specialized industry sectors who are otherwise not properly serviced by large pure water suppliers. Segregating a customer's H20 Industries resin and regenerating it on a portable tank basis to hospital dialysis units is an excellent example of such a niche product that stresses quality and service to users who are prepared to pay a premium price.
1.3 Keys to Success
H20 Industries's primary keys to success are:
- Good quality control in the factory. Customers for high purity water business have a very low tolerance threshold for flaws.
- Fast response. In the case of most of H20 Industries's customers, the cost of the water is not a major element in their over-all costs, but a very expensive shut-down could result due to poor or slow servicing.
- High-profile allegiances. Key to over-all company success is connected closely with success in achieving the goal of developing a dealership network of service-oriented water companies.