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1.

1 OPPORTUNITY In addition to more powerful water


pressure, the Thor Bidet will be
differentiated through a series of features
that this niche market values. To mitigate
hygienic issues between housemates, the
There are approximately 2.5 billion people
Thor Bidet will come with replaceable
in the world, for whom the norm is to use a
handles available in several colors to easily
bidet or another source of water to cleanse
distinguish ownership. The Thor Bidet will
after a visit to the restroom. The reason for
have a designed capacity of 1 gallon and
using water is both cultural and religious.
will be shaped to be stable and easy to
These individuals face tremendous
store.
discomfort when they travel to parts of the
world where the norm is to use toilet paper,
By year three, Thor Bidet Inc. will introduce
since the bathrooms are not equipped with
a second product, the Poseidon Bidet,
faucets for cleaning with water. There is a
which will be smaller and discreet. The
niche market of approximately 1.5 million
Poseidon Bidet will be designed and geared
students that are in the US from these
toward portable use, when leaving the
regions that face this issue with an
house. As such, this product will also target
additional influx of approximately 350,000
people with the same background that
new students each year. These students
have already adapted their means at their
live in rented properties or college dorms
home in the US, but still lack a portable
where they cannot legally customize the
option to take care of their needs; an
bathroom faucets to solve this problem and
estimated population of 4.6 million people.
thus find themselves in a conundrum. The
solution is the Thor Bidet.
1.3 TARGET MARKET
1.2 BUSINESS CONCEPT &
COMPETITIVE ADVANTAGE Thor Bidet Inc.s target market includes
international college students from the
specified 55 countries in Exhibit B, where it
Thor Bidet Inc. will alleviate this pain for is customary to clean with water due to
the individual, by providing a semi-portable religious practices (Muslims & Hindus) or
bidet which can be filled using a standard habitual routines associated with the
tap in a bathroom. By conducting primary cultures of their home countries (India,
market research, the company has Europe, parts of Asia, etc.). Thor Bidet Inc.
identified convenience of use, high has identified approximately 1.5 Million
pressure, water quantity, and price as the potential customers based on their religion
critical factors. The Thor Bidet exceeds its or the customs of their home country
competition in each of these aspects and (Exhibit B). Based on the data published by
has been engineered to spray with enough the Institute of International Education4, the
pressure that will enable the user to number of students in the target market is
complete the cleansing process expected to grow by 9% each year. After
satisfactorily and without unfitting use of conducting a survey of approximately 150
their hands. Consequently, this product will people on the need and value of the
leave the individual feeling completely product with the select target customer, it
hygienic and more confident. was confirmed that 57% were dissatisfied
with the current method they were using.

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Furthermore, 62% were willing to Happa Studios (a design studio based in
purchase a high pressure bidet for $31 or Lahore, Pakistan) to design the brands
more. image and create the required branding
materials that will be used to create a
For the first two years Thor Bidet Inc. has uniform brand presence. For the online
chosen a market penetration strategy that social media content management, the
is based on targeting specific university company will utilize $99 Social, to ensure
student bodies, due to the large a uniform social media presence; Sales
concentration of identified customers. representatives who are responsible for
This strategy is two pronged where the marketing and selling the product to the
company will market directly to the selected college institutions; Select retail
consumer through online channels and stores that focus on selling international
also initiate a B2B channel with the products originating from the home
international student centers of these countries of the target market; and a PR
select universities. Through campaign by associating with websites
communication with international student like Buzzfeed India, in correlation with
organizations, Thor Bidet Inc. is confident the Hindu holiday, Holi.
that the selected institutions will be
inclined to bulk purchase bidets to give to Thor Bidet Inc. will be sold on Amazon and
their incoming batch of international in retail stores, however Amazon will be
students, easing the students transition responsible for fulfilling the orders of
into the US. In year three, once the brand individual online customers and
has been established and achieves a institutional/wholesale sales. As the
market presence, the company will online company website offers information
expand its marketing efforts to all about the product and the most
international students in the US who fit convenient place to purchase the product
Thor Bidet Inc.s segment. based on the customers location, orders
cannot be placed on the website.
Additionally, wholesale orders from stores
1.4 ESSENCE OF MARKETING PLAN and college institutions will be placed
through sales representatives, who will
Thor Bidet Inc.s goal is to provide the go- provide them with a promo code(s) that
to semi-portable bidet within the college will be used on Amazon to fulfil the
student market, by communicating the institutional/wholesale order(s). The retail
message that its product offers superior price of the Thor Bidet is $36.99, while the
quality, at a competitive price, while retail price of the Poseidon Bidet is
providing customers with a strong sense $17.99. As competitors price similar
of relief, satisfaction, and confidence. products between $50-$75 and $15
respectively, Thor Bidet Inc.s pricing
structure is competitive.
Thor Bidet Inc. proposes to promote the
product through the following means: The
company website, which advertises the 1.5 TECHNOLOGICAL &
product(s), informs customers how to use OPERATIONAL ISSUES
the product(s) and explains where the
product(s) can be purchased; Facebook,
Instagram, SnapChat, and YouTube, which
are the digital platforms that Thor Bidet
Inc. will use for advertising purposes. Thor Thor Bidet Inc. has identified Taizhou
Bidet Inc. will be engaging the services of Luqiao Lvxin Sprayer Co. Ltd. as its
2|Page
potential offshore manufacturer. The Mangirish Rajadhyaksha (CFO), Egzon
manufacturer located in Zhejiang, China Halili (COO), Kartik Kakria (CIO), and
(Mainland) is a professional manufacturing Nicholas Piroli (CMO). There will also be a
company that has ample capacity and professional board of advisors, consisting
stringent quality measures that perfectly of Kenneth Walsleben (Business), Raza
suit the supplier needs of the company. Khan (Operations), and Harini Tatnis
The company already is in possession of a (Product Development).
prototype for the Thor Bidet; For the
Poseidon Bidet, the company will be
collaborating with Nectar Product 1.7 ECONOMICS
Development (http://nectarpd.com) based
in Long Beach, CA, a firm with 25 years of The Thor and Poseidon Bidets will be
experience, 20+ design awards, and 70+ retailed at $36.99 and $17.99
patents, to come up with creative designs respectively. However, the revenue
for a convenient and portable bidet, that recognition will occur after taking out the
fulfill the requirements of our target retailer's margins of 15% for Amazon and
market customers. The company will use 30% for specialty retail stores and
Amazon storage as well as its fulfillment institutional sales; The Thor Bidets
centers for its distribution operations, revenue recognition price will be $31.44 &
since Amazon is an extremely popular e- $25.89, while the Poseidon Bidets
commerce portal in the college student revenue recognition price will be $15.29 &
market. In addition, Amazon is known as $12.59. The cost of the Thor Bidet is
the industry leader in its ability to easily $6.71, while the Poseidon Bidet will be
synchronize between inventory manufactured at a cost of $4.21. The Thor
management, order management and Bidet has a contribution margin of 79% on
customer relationship management. Thor online sales and a 74% margin on
Bidet Inc. recognizes that as a startup, it institutional sales/retail store sales; The
must build a strong relationship with its Poseidon Bidet has a contribution margin
supplier to assure that the quality of 72% on online sales and 67% on
variations are at a minimum and the institutional sales/retail store sales. Thor
production delivery schedule is followed Bidet Inc. expects to achieve a sales
properly. Therefore, regular trips will be volume of 31,736 units of the Thor Bidet
conducted by the CIO to the manufacturer in the first year and grow it to 65,457
to mitigate the risks associated with units by the end of the second year. The
having a single supplier. cost structure is variable because the
companys core competency is in
identifying the opportunity, directing the
designing of the products, marketing, and
co-ordination with the vendors and
customers. Thor Bidet Inc. has outsourced
the manufacturing and warehousing.
1.6 THE TEAM Furthermore, Thor Bidet Inc.s economic
model operates on high margins and high
The company will be registered as a C- volume with two revenue drivers and low
Corp and initially consist of the five operating leverage.
founders, each a Syracuse University MBA
graduate and specializing in executive
roles throughout important departments
of the company: Muhammad Khan (CEO),
3|Page
1.8 FINANCIAL HIGHLIGHTS

Thor Bidet Inc. will break-even at 28,843


units bringing in a revenue of
$810,844.94 in 9 months. In their
respective launch years, the total market
potential for the Thor Bidet is 1.3 million
buyers, while the market potential for the
Poseidon Bidet is 4.6 million buyers. The
company has calculated a sales potential
target for the Thor Bidet of 2% in the first
year that builds to 9.6% by the fifth year.
Since the Poseidon Bidet has a larger
market potential the company has created
a conservative estimate of first year sales
potential of 1.5% and plans to achieve
2.73% by the end of the third year of
sales.

The profit margin of the company is


between 18.88% and 30.94% from year 2
onwards. The return on equity has an
exponential increase from 115.78% in
year 2 to 749.67% in year 5.

The company has a negative cash from


operations ($17,598) in the first year. The
burn rate of the company is 136 months.
However, the cash flow of operations
become and remain positive in Q2 of year
1.

1.9 FINANCIAL NEED

The company is asking for $200,000 from


investors in return for 14% equity. The
investor will also get voting rights and
seat on the board. Thor Bidet Inc. will buy
out the investor for $1,000,000 or 5x their
initial investment at the end of year five.
After analyzing the financial needs, the
company plans to use the money from an
investor for marketing, initial purchase
orders, and R&D (product design) over a
term of five years.

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2 COMPANY, CONCEPT, regions that face this issue with an
additional influx of approximately 350,000
& PRODUCTS new students each year (IIE). These
students live in rented properties or
college dorms where they cannot legally
2.1 THE COMPANY AND CONCEPT customize the bathroom faucets to their
liking and thus find themselves in a
conundrum. Thor Bidet will alleviate this
Thor Bidet Inc. will be formed as a C-
pain for the individual, by providing a
Corp., based in the state of Delaware and
semi-portable bidet which can be filled
will commence operations in May 2017.
using a standard tap in a bathroom. By
The founding team consist of five
conducting primary market research the
individuals: two from India and one from
company has identified convenience of
Pakistan, Kosovo, and the United States.
use, high pressure, water quantity, and
Each brings with them a diverse breadth
price as the critical factors. Thor bidet
of cultural and experiential learnings
exceeds its competition in each of these
being from unique backgrounds. All
aspects and has been engineered to spray
members are business students, with two
with enough pressure that will enable the
of them specializing in entrepreneurship
user to complete the cleansing process
and marketing, one in entrepreneurship
satisfactorily and without unfitting use of
and sustainability, one in supply chain
their hands. The Thor Bidet also provides
analytics and one in finance & analytics.
the customer feeling completely hygienic
and, therefore, more confident.
The concept was discovered when the
team had to come up with a potential
viable business idea for their capstone 2.2 THE PRODUCT
project. The founding members explored
their personal pains they faced, and The Thor Bidet is a semi-portable bidet
honed in to the concept at hand when system with a handheld sprayer that
they realized that four of them face the provides highly pressurized water through
same pain, being an international student a flat fan jet nozzle that will optimize the
in the United States. use of water by creating a triangular spray
pattern mimicking the jet sprays used in a
According to PewResearch, there are carwash. This will make less water
approximately 2.5 billion people in the achieve the same cleanliness results as
world, for whom the norm is to use a bidet other nozzles that spray out streams. The
or other water source to cleanse after a purpose of the bidet is to give the
visit to the restroom. The reason for using consumer the feeling of being clean and
water is both cultural and religious. These hygienic. Thus, they can go about their
individuals face tremendous discomfort days in complete comfort and with the
when they travel to parts of the world utmost confidence.
where the norm is to use toilet paper,
since the majority of bathrooms in the US The primary user for the Thor Bidet are
are not equipped with bidet fixtures for individuals from the 55 countries listed in
cleaning with water. There is a niche Exhibit B, where it is customary to clean
market of approximately 1.5 million with water due to religious practices
students that are in the US from these (Muslims & Hindus) or habitual routines

5|Page
associated with the cultures of their home plays a crucial role in sales conversions,
countries (India, Europe, parts of Asia, as new students tend to ask the older
etc.). Using toilet paper as an alternative students for guidance.
does not give this market the same
satisfaction as they get when they use For the B2B channel, Thor Bidet Inc. is
water. When these individuals travel to confident that the selected institutions will
areas where the norm is to use toilet be inclined to bulk purchase bidets to give
paper they find themselves in a to their incoming batch of international
predicament and experience discomfort. students, easing the students transition
Our target market is these into the US. The companys research
individuals/students that have recently shows that the universities are actively
arrived and are feeling the pain of the involved in trying to make the transition
change in cultural norms. Currently Thor of international students as comfortable
Bidet Inc. is focusing towards two bidet and as smooth as possible.
systems; the Thor Bidet and the Poseidon
Bidet. The Thor Bidet is designed to be
used in home toilets as a semi-portable In the third year, the brand would have
bidet, with a handheld sprayer system, established a reasonable presence
while the Poseidon Bidet will be compact amongst its customers; Therefore, the
and portable, which individuals can company plans to expand its marketing
conveniently carry in their school bags, efforts to all international students in the
briefcases, or large handbags whenever US who fit Thor Bidets segment and
they leave home. concurrently will be launching its second
product called the Poseidon Bidet.

2.3 ENTRY & GROWTH STRATEGY


Thor Bidet Inc.s plan is to focus towards a
steady growth, rather than an explosive,
For the first two years, Thor Bidet Inc. has exponential one. This will help Thor Bidet
chosen a market penetration strategy that Inc. create a strong brand presence and
is based on targeting specific university thus become synonymous with the
student bodies, due to the large solution for the target market. This brand
concentration of identified customers recognition should act as a barrier to
(Exhibit B). This strategy is two pronged entry while Thor Bidet Inc. keeps on
where the company will market directly to innovating and optimizing its products in
the consumer through online channels correlation with customer needs.
and also initiate a B2B channel with the
international student centers of these
select universities. 3 INDUSTRY ANALYSIS
Thor Bidet Inc. plans to first target the
niche market of students coming into the
3.1 SUMMARY
US from these countries. As a new body of
international students come to the US NAICS Code for the portable bidet industry
each year, demand increases each year is: 322291 Toilet paper manufacturing.
as well. As students tend to join their
national or religious student unions, these There is currently no industry for this
organizations can be used to target particular product, therefore Thor Bidet
potential customers. As the Thor Bidet has will have to create market space by
high emotional value, word of mouth
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competing with toilet paper. Despite being growth of this industry between 2007 and
a completely different product, Thor Bidet 2015. (Statista)
serves the same purpose and will
therefore directly compete as an In terms of Thor Bidet Inc.s strategy,
alternative. This particular market within there is a spacious opportunity due to
the industry is premature with very few most people using a product that is well
options available in United States, but the perceived to be less effective and
industry as a whole is large and mature. hygienic, especially for people of Muslim
or Hindu religion. That part of the industry
Despite an average of 350,000 students is therefore in its early stage.
coming in from target countries that use
bidet as part of their culture, there is a
lack of a bidets for them as most buildings 3.3 STRUCTURE
in United States do not include bidets in
their infrastructure. The industry is The portable bidet part of the industry,
therefore constructed mainly by paper specifically, leaves a lot to be desired.
towels and other portable bidets that There are currently three main players:
include plastic air-pumped or battery- Bio Bidet Palm Travel, Brondell GoSpa, and
functioned portable bidets, which are Blue Bidet. According to a market
essentially the only two alternatives research survey conducted for this
available. In addition, neither of these product, none of the current alternatives
options meet the demands of its target solve the needs of the current target
market primarily due to a lack of water market due to lack of pressure and
pressure. convenience. As such, neither of the
current players have a strong position,
Culturally, most of the rest of the world with most of the target market currently
use bidets. However, Muslims and Hindus using standard water bottles to fulfill their
are the main protagonists, as it is needs.
religiously required and therefore a
necessity. In the US, the only alternative Market research also showed that price is
they can find is toilet paper, hence the not the main factor. Instead, convenience
industry, with portable bidets not even and pressure of the water supply is
having its own industry. considered key. As such, it is important to
ensure that the product completely meets
the demands of the target market in order
3.2 SIZE & GROWTH RATE to capture it.

The toilet paper industry is large and However, the products purpose sets it as
mature, with 317.77 million people a direct competitor with toilet paper
reported to use toilet paper in US, at an products. The two products will be fighting
average of $118.98 per consumer, making for the same clients, making them
it a $37.8 billion industry. However, 3.3% substitute products.
of the population in United States is
considered to be Muslim or Hindu 3.
Therefore, the relevant share of the The toilet paper industry is substantially
industry would be worth about $1.25 concentrated, with Kimberly-Clark, Procter
billion. Furthermore, there was a 20.6% & Gamble, Georgia-Pacific, Svenska
Cellulosa Aktiebolaget and other private

7|Page
label manufactures all capturing a portable bidet market lacks a widely
significant share of the market considered go-to product. As such, it
(IBISWorld). would be crucial to establish a sustainable
brand that is associated with customer
service focus, hygiene, performance, and
3.4 KEY TRENDS reliability.

The portable bidet market is a new trend


in the US. The development of the perfect 4 MARKET RESEARCH
product would position the company in a
strong position to maintain and grow,
& ANALYSIS
especially as the bidet industry is also
expected to grow within the US, 4.1 RELEVANT MARKET &
considering it is already mature in most of
the world. Additionally, the percentage of CUSTOMER OVERVIEW
Muslim and Hindu students coming to
study in United States is also increasing at Considering that the portable bidet is
an average of 9% annually. majorly a cultural must-have for specific
regions and religions, the relevant target
The U.S. Census Bureau shows that other market for the Thor Bidet will be narrow
key trends in the portable bidet and toilet and specific. It will be targeting early
paper markets would include the adopters that are coming to study in
increasing price of plastic and wood, United States from countries that practice
respectively, and the forecasted 1.6% the Hindu and Islam religions.
compound growth of per capita disposable
income between 2012 and 2017. A typical 18-35-year-old Hindi or Muslim
student coming to study in United States
The key factors driving the growth of the would be the perfect candidate, due to
industry include changing lifestyles, rising the current culture in the US, making it
healthcare expenditures, increasing nearly impossible to find bidets in public
population apart from steady rise in global restrooms. In addition, these students
GNI and low penetration of substitutes for only come to United States to study
toilet paper and portable bidets. temporarily, therefore they cannot install
permanent bidets in their rented houses.
Thor Bidet Inc. will specifically target
3.5 KEY SUCCESS FACTORS upcoming international students, as
market research found that current
Changing lifestyles, the growing students in the US have already
population, rising health expenses and a established their means of hygiene or
low penetration of substitutes for toilet adapted.
paper and portable bidets are among the In terms of demographics, the only real
key success factors affecting this industry. criteria will mostly be the cultural and
religious background of the students, as it
Additionally, establishment of brand is practically a necessity for people
names is also a key factor for the coming from certain religions and regions
products success in this industry. to use water when it comes to restroom
Although there are largely reputed brands hygiene.
already in the toilet paper industry, the
8|Page
4.2 MARKET SIZE & TRENDS 4.3 BUYER BEHAVIOR

The market size is attractive, considering


that a total of 1,043,839 students have
entered United States from countries of
Hindi or Muslim religious background in
2016, with 37% of them being from
countries that befit Thor Bidet Inc.s target
market.

Considering that the market research in


Exhibit A shows 57% of the students
coming from target countries are not The majority of students researched, that
satisfied with their current method of fulfil the target segment criteria, claimed
cleaning, and 80% of them claim that they to have adapted to using toilet paper as
are interested in a high pressure water part of their stay in United States. As
bidet that provides effective cleaning such, Thor Bidet Inc. must approach
without the use of hands, the market size targeted students before they adapt,
that is interested to buy a product like the more specifically as soon as they arrive in
Thor Bidet goes as high as 293,527 United States.
students (see Exhibit B).
Considering the privacy effect of the Thor
The most important trend is the average Bidet, buyer behavior will only be
9% increase of the number of dependent upon personal choices of each
international students coming to United person. Many of them will be hesitant to
States. If we look at the international even discuss their choices or use of this
students coming from Hindi and Muslim product with their peers, therefore it is
backgrounds alone, there has been an imperative that the company targets
increase of 53% during the last 5 years, them at personalized stores such as
with 2016 lately recording an 11% Indian Bazaar. Most new international
increase from the previous year. In students tend to be hesitant of the large,
accordance to the last 5 years average, American markets at first, preferring to
this market is expected to grow at an stick to their cultural practices and
annual rate of 9% for the upcoming years. products, visiting imported foods shops
that are small and convenient for many of
them.
Another positive trend can be found in the
size of the Hindu and Muslim population
currently residing in US already, which In order to determine the buyer behavior
corresponds to 3.3 million Muslims and of this particular target market, shopping
2.3 million Hindus according to habits must be observed, especially in
PewResearch3, projected to grow at a rate terms of products and locations. To save
of 2.1% and 1.2%, respectively. on large amounts of capital required to
Additionally, the overall 5.6 million build inventory needed to supply the large
population with such background is markets, Thor Bidet Inc. will be targeting
considered as a target segment for the small imported foods shops, major
Poseidon Bidet, Thor Bidet Inc.s second airports, and online ads specified at
product planned to be launched in year 3.

9|Page
upcoming international students from created by the hand squeeze force. The
targeted countries. positives is that its low cost and has high
portability. The disadvantage is that it
does not remove the need for the use of
4.4 MARKET SEGMENTATION & ones hand and thus does not ensure
TARGETING convenience nor complete hygiene.
Additionally, the water storage of this unit
Market segmentation will be strict and is quite small and thus its usually not
narrow, considering that this product is adequate for a wash and leaves the user
only viable for people with a specific dissatisfied.
background, that are to live in US.
Students with Hindi and Islamic
backgrounds will be the primary niche,
alongside other countries that use bidets
Bio Bidet Electric:
or at least water culturally and
traditionally. There are also other
segments that might be worth small Like the Blue Bidet, this product is quite
percentages of the total sales as this similar in its size and portability but the
product might fulfill a need that they major difference is the fact that it has an
didnt recognize before. electric motor that runs on battery and
the pump push water out. However, due
to the small size of the pump and battery,
Thor Bidets target market will be
the pressure is again lacking and the user
incoming international students that are
has to use their hands to complete the
not used to restrooms without a bidet.
process. Further, the water storage is
They will be 18-35 years old, will be
small and inadequate. Finally, this unit is
looking at trends and online social media,
not an affordable option for the typical
will be reluctant to adapt to the restroom
college student.
culture in United States, and will have the
initiative to change for a reasonable price.
Porta Bidet Pro:

4.5 COMPETITION & COMPETITIVE


Though this product is electric, it is large
EDGES and lacks portability. It has a large water
tank and can produce better water
There a few competitors in the market, pressure. However, due to its bulky size
but none can be considered as the and high cost, this product is not for the
dominating player in the market as they student target market that Thor Bidet Inc.
are all lacking at least one key attribute will be targeting.
that the target market has identified as a Blue
Thor Biobi Generi
must-have for them. Attribu Bidet
Bidet
det
PortaB
c
(Hand idet
tes (Our (Elect Mug(L
Pressuri Pro
Product) ric) ota)
sed)
Blue Bidet:
Qualtty High Med High High Low
Price $31 $15 $50 $75 $2
This product is the cheapest bidet on the Deliver
Online &
Speciality Grocery
market and the one with the least amount y Stores Online Online Online Stores
of pressure being created as well. This is Warran
ties 1 Year 1 Month 1 year 1 year None
due to the fact that the pressure is Water 2 Litre 500 Ml 500 1 Litre 1 Litre

10 | P a g e
Capacit
y Ml
Therefore, the Thor Bidet will primarily be
Portabi used at home and will not be geared
lity Medium High High Low High toward portability. However, the
Pressu Very
re High Low Low Medium Low companys research and assessment will
be immediately shifted towards the
launching of the second product, the
4.6 ESTIMATED MARKET SHARE Poseidon Bidet, after careful evaluation of
what features the target market values
Identified international students coming the most. As part of an ongoing Research
from countries where water is the medium & Development process, Thor Bidet Inc.
of cleansing are the primary target will be evaluating the exact features and
market. During the first year, Thor Bidet possibilities of a new, smaller and
Inc. will be only targeting the 25 portable product that customers will be
universities with the largest share of able to take with them to school, work,
students from target countries, which etc. Another objective of the Research &
translates to 52,894 students during Development will be to determine where
2016. The company expects to penetrate the company can save in terms of cost
60% of this market, thus equaling a and size and which features are most
market capture of 31,736 students during important to potential customers.
the first year.
5 ECONOMICS OF
During years 2 and 3, Thor Bidet Inc. will
expand to all incoming students from BUSINESS
target countries and all students pursuing
studies in the US, respectively. The target
market by the third year is expected to be 5.1 REVENUE DRIVERS &
approximately 2,016,184 students, 60% of MARGINS
which are expected to come across the The Thor Bidet will be the primary
Thor Bidet at least once during their stay. revenue driver for the first two years and
will generate 100% of the companys
revenue. In the third year, the Poseidon
4.7 ONGOING MARKET bidet will be introduced and both products
EVALUATION will contribute towards the revenues of
Thor Bidet Inc.
Due to modest initial capital investment
requirements, Thor Bidet will start with Thor & Poseidon bidets will be retailed at
only a home product. There are several $36.99 and $17.99. However, the revenue
factors that, according to research, have recognition will occur after taking out the
been found as important to the target retailer's margins of 15% for Amazon and
market: convenience, pressure strength, 30% for specialty retail stores and
water capacity, and size. Unfortunately, institutional sales; As the Thor Bidets
due to the unfeasibility of providing each revenue recognition price will be $31.44 &
of the demands, Thor Bidet Inc. must $25.89, the Poseidon Bidets revenue
sacrifice certain features in order to fulfil recognition price will be $15.29 & $12.59.
the most important ones, which, The cost of the Thor Bidet is $6.71, while
according to market research, are the Poseidon bidet will be manufactured
convenience and pressure strength. at a cost of $4.21. The Thor Bidet has a
contribution margin of 79% on online

11 | P a g e
sales and a 74% margin on institutional 5.4 START-UP COSTS
sales/retail store sales; The Poseidon Bidet
has a contribution margin of 72% on
online sales and 67% on institutional
sales/retail store sales. The company
expects to achieve sales volume of 31,736
units of the Thor Bidet in the first year and
grow it to 65,457 units by the end of the
second year.

5.2 FIXED & VARIABLE COSTS


Thor Bidet Inc.s cost structure is primarily
made up of variable costs. These variable
costs include manufacturing, packaging
and shipping from China, product
warranty cost and Amazon storage and
fulfillment cost. The companys fixed costs 5.5 BREAKEVEN CALCULATION
consist of office rent, utilities, salaries and
administrative cost; employee, business
and renters insurance; marketing &
advertising; and research & development.
The breakdown of the fixed costs
calculations and percentages of total
costs can be found in Exhibit E.

5.3 OPERATING LEVERAGE &


IMPLICATIONS Breakeven (Units)= (Fixed Costs + Startup
Initially the business will be relatively Costs)/ Weighted Average Contribution
highly leveraged because of high initial Margin
costs. As the business starts making
sales, the variable costs will start Breakeven (Dollars) = Breakeven (Units) *
increasing as per the product sales while Weighted Average Revenue Recognition
the fixed costs will be minimal/low. Thus, Cost
the cost structure is variable because
Thor Bidet Inc.s core competency is in
identifying the opportunity, directing the 5.6 OVERALL ECONOMIC MODEL
designing of the products, marketing, and Thor Bidet Inc.s economic model (Exhibit
co-ordination with the vendors and E) will operate on high margins and high
customers. The company has also volume. There are two revenue drivers,
outsourced its manufacturing and namely the Thor Bidet and the Poseidon
warehousing. Bidet. Since the company has outsourced
the manufacturing to China, the cost
structure of Thor Bidet Inc. is variable and
eventually the company will operate with
low operating leverage after sales pick up.
This type of model is less risky due to the
low fixed cost structure of the company.

12 | P a g e
Overall, this economic model is strong and YouTube, which are the digital platforms
attractive since high profits will be that Thor Bidet Inc. will use for advertising
generated through high margins and high purposes. Thor Bidet Inc. will be engaging
sales volumes. the services of Happa Studios (a design
studio based in Lahore, Pakistan) to
design the brands image and create the
5.7 PROFIT DURABILITY required branding materials that will be
The profit stream will be vulnerable during used to create a uniform brand presence.
the first two years since Thor Bidet Inc. is Further, Thor Bidet Inc. will utilize the
selling only a single product. However, online social media content management
having a complete solution to the platform, $99 Social, to ensure a
intensity of pain faced by the many uniform social media presence; Sales
customers and the launch of the Poseidon representatives who are responsible for
Bidet in the third year will make the profit marketing and selling the product to
stream more solid. The market lead time select college institutions; Select retail
will be less since Thor Bidet Inc. is stores that focus on selling international
collaborating with Amazon. This will also products originating from the home
increase the customer service levels. countries of the target market; and a PR
campaign in correlation with the Hindu
So, the overall profit durability will be holiday, Holi.
strong. This is also supported by the fact
that there is less competitive risk as Thor Bidet Inc. will be sold on Amazon and
bidets are not the primary product used in retail stores. However, Amazon will be
for the cleansing process in the US. responsible for fulfilling the orders of
individual online customers and
institutional/wholesale sales. As the
6 MARKETING PLAN online company website offers information
about the product and the most
convenient place to purchase the product
6.1 OVERALL MARKETING based on the customers location, orders
STRATEGY cannot be placed on the website.
Thor Bidet Inc.s overall marketing goal is Additionally, wholesale orders from stores
to gain market share of international and college institutions will be placed
college students and college institutions, through sales representatives, who will
retaining customer loyalty to Thor Bidet provide them with a promo code(s) that
Inc. in future bidet purchases. Thor Bidet will be used during checkout on Amazon
Inc.s goal is to communicate the in order to fulfill the
message that its product offers superior institutional/wholesale order(s). The retail
quality, at a competitive price and price of the Thor Bidet is $36.99, while the
provides customers with a strong sense of Poseidon
relief, satisfaction, and confidence.
ertisement). According to market
Thor Bidet Inc. proposes to promote the research, the cost per click is $0.36. As
product through the following means: Thor Bidet Inc.s primary market research
Thor Bidet Inc.s company website, which shows, 75% of potential customers are
advertises the product(s) and informs interested in a high pressure semi-
customers how to use the product(s) and portable bidet, 58% are dissatisfied with
where the product(s) can be purchased; the current alternative, and 62% are
Facebook, Instagram, Snapchat, and willing to pay $31 or more. With a
13 | P a g e
discount factor of 20% in the first two the company vast publicity, not only
years and 70% in year three onwards (due through a viral video, but also on a
to increased brand awareness), Thor Bidet smaller scale, for example around
Inc. calculated the conversion rate of colleges, in school and city newspapers,
Facebook advertisements for the Thor and brief segments on local news
Bidet to be 5% in years one and two and channels. Thor Bidet Inc. will also place
19% in year three onwards. With slight advertisements in school newspapers in
changes to the formula, Thor Bidet Inc. another attempt to meet its target
calculated the conversion rate for the market. Thor Bidet will expand its Holi
Poseidon Bidet to be 20% (Exhibit C). campaign to more universities each year.

Thor Bidet Inc. is also going to launch a


YouTube video in year 1 in the months of
6.3 WARRANTY & GUARANTEE
March, April, and May 2017 after a PR POLICY
event at a university which is to be Thor Bidet Inc. offers a 30-day guarantee
decided. This event will take place in for both products, in which customers can
March and will coincide with the Hindu send the product back for a full refund
festival called Holi, also known as the within 30 days if they are unsatisfied.
festival of colors. Though a religious Thor Bidet also offers a 1-year warranty,
holiday typically celebrated in India and which covers defected products or
Nepal, Holi is now celebrated all over the products that break within the proper line
world by countless peoples of different of use.
religions. It just so happens that those
who traditionally celebrate the holiday are
in Thor Bidet Inc.s target market.
6.4 DISTRIBUTION
Thor Bidet Inc. will be distributed through
Nevertheless, during this festival, it is
Amazon as well as through a select group
tradition to smear one another with
of specialty stores. However, Amazon will
colorful paint. Thor Bidet Inc. plans to
fulfill all orders; both from individual
sponsor this event and provide Thor
customers, as well as
Bidets to help clean the paint off of people
institutional/wholesale orders. In the case
after the celebration. A video
of institutional sales, the sales
advertisement will be made from the
representative will create a promo code
event, not only showing off the product,
for the specific university to pass out to
but also showing how different cultures
their students, in which they will use to
can be brought together in unity. This
order the bidet on Amazon. In the case of
advertisement will be displayed on the
wholesale orders from retail stores, again,
online website, Facebook, Instagram,
the sales representative will provide the
Snapchat and YouTube. As this PR
specific store with a promo code in which
campaign has the potential to go viral,
the store will use when it places the order
Thor Bidet Inc. can reach countless
on Amazon. Amazon will allow Thor Bidet
people. Thor Bidet Inc. will expand this
Inc. to target a mass market of people all
campaign to more colleges in the coming
over the US, while the retail locations will
years.
allow for a street presence in areas that
are highly populated with the target
6.2 PUBLICITY segments. Furthermore, distribution
Thor Bidet Inc.s Holi advertisement through college institutions will not only
campaign with the message of bringing reach the target market, but will also
people together has the potential to offer increase brand awareness in areas that
are densely populated with the target
14 | P a g e
market and can help Thor Bidet Inc. gain storage and order fulfillment. Also,
new customers. Amazon is an extremely popular e-
commerce portal in the college student
market.
7 DESIGN &
DEVELOPMENT PLAN 7.3 GEOGRAPHIC LOCATION
Thor Bidet Inc.s planned geographic
office location will be in Syracuse, NY. This
7.1 DEVELOPMENT STATUS & has been chosen based on the proximity
TASKS to 10 out of the 25 institutions that attract
Thor Bidet Inc. is currently in the maximum number of international
possession of its first proof of concept students. Doing so will help Thor Bidet
prototype for the semi-portable Thor Inc. reach out easily and build a brand in a
Bidet. The prototype will be shared short span of time.
with the manufacturing partners in
China and the design will be slightly 7.4 CAPACITY LEVELS &
modified with their input to make INVENTORY MANAGEMENT
mass production most efficient, cost The inventory levels are based on the
effective, and also include a switch sales estimates. Thor Bidet Inc. plans to
valve, where by the user will be able operate using Complete Order Point
to use pressurized air to dry Model:
themselves and thus taking out the
need to use toilet paper to dry oneself. Order point = Demand during lead time +
The product will be ready to Safety Stock
manufacture in June 2017.
Products Thor The essence of this approach is when an
item falls to a certain stock level or
Final Manufacturing Bidet
1 month quantity, an order is released to replenish
Design Process inventory on the expected stock-out date.
Testing Process for first 20 days This model has been adopted since
batch of mass customer demand and replenishment lead
produced times are likely to show random variation.
Ready products
to Mass June 17 Also, this is advantageous as this model
Produce by will save costs and help Thor Bidet to
benefit since the customer demand
7.2 DIFFICULTIES & RISKS follows a seasonal trend.
The final pre-mass production
development & testing process has
been given a time of two months as 8 MANAGEMENT TEAM
the company is committed to deliver a
product in the market that is not
riddled with issues. Since the initial 8.1 KEY PERSONNEL &
product line has only one product, the RESPONSIBILITIES
risk is high as the brands image is The company will initially consist of the 5
completely based on this one product founders sharing executive roles and
and thus we have focused towards three advisory board members, each
contributing on a specific major
making sure that the
15 | P a g e
department in accordance with their Managing Partner for over 4 years, as part
expertise (Exhibit G). The internal roles to of a 6+ years professional career in
be filled include: business development, consulting and
operations.
Chief Executive Officer: Muhammad
Khan As COO, Mr. Halili will be responsible for
the administration, human resources,
Mr. Khan is an MBA professional and operations and legal divisions of the
Fulbright scholar who has founded company.
Solenergi Pvt. Ltd. A solar street lighting
company, in Pakistan. Mr. Khan was part Chief Innovation Officer: Kartik Kakria
of Solenergi as Founder & Business Lead
for five years, having already worked in Mr. Kakria is an MBA professional with
managerial and consulting positions for academic excellence in Technology
the previous three years. Electronics and Communication. He is also
a Research Consultant at EXPORTNY
As CEO, Mr. Khan will be responsible for program and does intensive market
the day-to-day management decisions research for finding attractive
and for implementing the companys long international attractive markets, helping
and short term plans, in accordance with to prioritize efforts to penetrate each
the executive management. market and tackle the legal, cultural,
logistical and regulatory issues.

As CIO, Mr. Kakria will be responsible for


the research and product development
departments of the company.
Chief Financial Officer: Mangirish Simultaneously, he is connected with
Rayadhyaksha supply chain professionals, such as Burak
Kazaz and Patrick Penfield, who have
Mr. Rayadhyaksha is an MBA professional years of supply chain experience and
with 4+ years of experience in Investment have done valuable research, including
Banking and Equity Research and an writing popular supply chain papers.
exceptional record of delivering cost
effective, high performance financial
solutions to meet challenging business
demands.

As CFO, Mr. Rayadhyaksha will be Chief Marketing Officer: Nicholas Piroli


responsible for the Financial and
managerial accounting, as well as budget Mr. Piroli is an MBA professional with
sections of the company. expertise in business and marketing. Mr.
Pirolis experience includes managing
Chief Operational Officer: Egzon Halili several projects and tournaments,
including Lacrosse camps, both in terms
Mr. Halili is an MBA professional who has of operations and marketing.
founded Inovalty, a home textile
manufacturing company in Kosovo. Mr.
Halili has been part of Inovalty as

16 | P a g e
As CMO, Mr. Piroli will be responsible for 8.3 BOARD OF ADVISORS
advertisement, marketing plan, and sales The founders have selected a diverse and
of the product. established group composing of experts in
what they have identifies as the major
Sales Representatives: Two full-time fields to bring the concept and company
employees during Year 1 and Year 2, four forward.
full-time employees in Year 3
Business Advisor: Ken Walsleben
Mr. Piroli will also be supervising the two
sales representatives that are responsible Mr. Walsleben boasts 30+ years in
for completing deals with target managerial and executive positions,
institutions and helping market the brand mostly in the business world. Lately, Mr.
and its Thor Bidet product initially. Once Walsleben has been working as a
the second product, the Poseidon Bidet is professor of Entrepreneurial Practice,
launched, Mr. Piroli will be supervising the making him a perfect addition that will
additional two sales representatives that help guide the team on how to approach
the company plans to hire. the launch of the product as well as
developing the business side of the
8.2 MANAGEMENT SALARIES & company towards reaching long and short
term sales goals.
OWNERSHIP
Each of the five founders have agreed to Operations Advisor: Raza Khan
begin with a 20% ownership of the
company. However, as equity is given in
Mr. Khan has been working in managerial
return for investments or other occasions
and executive operations positions for
as agreed by the majority of the founders,
over 16 years, most recently serving as
the ownership percentage will shrink
Chief Operating Officer of Taavun Ltd in
equally for each of the founders, in
Pakistan. Mr. Khan will be using his
accordance with the amount of equity
experience and expertise in the
given.
operational side of the business to guide
the team towards reaching operational
Modest annual compensation of $40,000 and supply chain efficiency.
will be established for all employees of
the company, including the key
Product Development Advisor: Harini
executives and sales representatives, until
Tatnis
the point where the company has broken
even and is sustainably profitable, at
which point there will be a re-evaluation Ms. Tatnis is a certified Scrum Master and
of the salaries and bonuses toward an certified Scrum Product Owner with
increase as well as having the dividends substantial experience in leading offshore
paid at the end of the year after breaking and onshore development teams,
even. There shall be a partnership including quality assurance lead
agreement that will establish the expertise. Ms. Tatnis will be advising the
compensation, percentage increase of team on product development goals,
salaries, and dividends percentage strategies, and helping with the planned
including stock options if it is decided for outsourcing of the product manufacturing
the company to go public in the future. to China.

17 | P a g e
In addition to the three advisory board stores. Additionally, Thor Bidet Inc. will
members, the team will also be continue with the marketing strategy, and
establishing a professional relationship send/receive/analyze customer feedback.
with a legal advisor, who will be giving
guidance with regards to the legal issues, Thor Bidet Inc. will break even in January
trademark, copyright, and other Terms of 2018. Further in 2018, Thor Bidet Inc. will
Service and contracts that the company begin expanding to more retail locations
will be needing. and more university organizations. Thor
Bidet Inc. will ramp up marketing in the
months of September and January, the
9 OVERALL SCHEDULE months in which its target market goes
back to college. Thor Bidet Inc. will begin
its Holi Campaign in March 2018, with
9.1 SCHEDULE SUMMARY plans to increase the campaign each
Thor Bidet Inc.s Overall Schedule details March to follow.
the first two years of design,
development, marketing, and operations, From 2019-2012, Thor Bidet Inc. will
while showing a brief growth schedule in continue strong sales and marketing on
years 3-5. As seen in the Overall Schedule the east coast, while exploring growth
table below, Thor Bidet Inc. will opportunities both through retail stores
incorporate in May 2017 as a C Corp and and through expansion across the entire
will begin leasing office and warehouse US. In year three, Thor Bidet Inc. will
space. Furthermore, two sales launch the Poseidon Bidet and hire two
representatives will be hired in the month more sales representatives in an effort to
of May. Thor Bidet Inc. will start the expand retail and institutional sales. In
design, development, and testing process 2020 and 2021, Thor Bidet Inc. will
in May and finish this process by June continue researching and developing new,
30th. At that point, the final version of the related products and continue with the
Thor Bidet will be created and the first sales and marketing strategy. Finally, in
order will be placed with the manufacturer year 2021, Thor Bidet Inc. will complete
in July. By August, Thor Bidet Inc.s the development plans for new products
website will be completed and Thor Bidet and explore expansion opportunities into
will be available for sale on Amazon and Europe.
in select retail stores. As Thor Bidet Inc.
will receive the first order from the
Year 1: 2017
manufacturer in the end of July, the
May Incorporation of the
official operation of the business will
commence and the marketing initiative venture as C Corp in
will be launched August 1st. By Delaware
September, Thor Bidet Inc. will ramp up Begin office and
marketing efforts, while the sales warehouse lease
representatives will contact and meet with Create first prototype of
international student organizations at the Thor Bidet
universities all across the north east in Initial plans sent to
efforts to promote and sell the Thor Bidet. manufacturer for design of
From September through December, Thor product
Bidet Inc. will continue its sales through Hire website designer
individual purchases on Amazon, select Hire 2 sales
university organizations, and select retail representatives

18 | P a g e
Develop overall marketing October Continue individual-online,
strategy retail, and university sales
Develop distribution Continue marketing
strategy (Amazon) strategy
Provide founders Begin to analyze customer
investment of $100,000 feedback forms
Seek $200,000 investment Novemb Respond based on
Hire corporate marketing er customer feedback forms
agency to provide uniform Continue individual-online,
advertising content across retail, and university sales
platforms (Happa Studios) Continue marketing
Hire social media creative strategy
agency to manage social Decemb Continue individual-online,
media platforms ($99 er retail, and university
Social) Continue marketing
June Design, develop, and strategy
testing of product is
completed
Website is finished
Sales representatives Year 2: 2018
meet with university
Q1 Breakeven in January 2018
institutions and select
retail stores Continue individual-online,
July Place first Thor Bidet order retail, and university sales
with manufacturer (orders Ramp up Facebook advertising
continue on a monthly in January
basis) Launch Holi campaign in March
Start official operation of Extend marketing strategy to hit
business all with target religious customs
Enter select retail stores Explore expansion into more
Begin POS marketing retail stores
strategy (retail stores) Q2 Expand college/religious market
August Begin Facebook to entire east coast
advertising Enhance online marketing
Begin individual-online, strategy through targeted
retail, and university sales display advertisements
Intense marketing geared Prepare operations for peak
toward international season
students going back to Q3 Ramp up Facebook advertising
school in September
Septemb Continue individual-online, Continue sales and collect
er retail, and university sales customer feedback
Ramp up marketing efforts
(Facebook Ads) Q4 Continue sales in university and
Create feedback forms to online channels
send customers Continue marketing strategy

19 | P a g e
come to US for studies next year - 37% of
Years 3-5: 2019-2021 which, according to market research, have
Year 3- Continue strong sales on been identified as potential target market.
2019 east coast for Thor However, in order to have more effective
Hire 2 more sales and cost-efficient initial marketing, the
representatives company will be targeting only the top 25
Patent the Poseidon Bidet universities during the first two years. Out
of the narrowed market, surveys showed
Place first Poseidon Bidet
that only 62% of the target market are
order with manufacturer
willing to purchase the product at $37.
Launch the Poseidon Bidet The company will also be assuming that
Begin expansion to entire during the first year of operations, only
US for Thor and Poseidon half of that market will be reachable. By
Enter more retail stores the third year, the company expects to
Launch Holi campaign increase its revenues through the launch
(increase from previous of another product, the Poseidon Bidet,
year) which will cater to the needs of
Continue expansion into international students and professionals.
retail stores It will bear aesthetic features and will be
Continue R&D geared toward portable usage.
Year 4- Continue sales throughout
2020 US Due to a limited budget and the fact that
Enter more retail stores the company will strictly be serving as a
connecting party between the outsourced
Launch Holi Campaign in
production and outsourced distribution,
March Thor Bidet Inc. assumes that the team will
Expand team as needed remain small for the first few years. In
Continue R&D addition to the three external advisors,
Year 5- Continue sales throughout five of the founders will also be working
2021 US full time in respective departments, as
Enter more retail stores well as two sales representatives in years
Launch Holi Campaign in one and two, with the addition of two
March more in year three.
Complete development
plans for new products The cost of the unit has been projected by
Explore expansion taking into consideration the material
opportunity into Europe parts used to complete the product and
the costs of outsourced manufacturing in
India. In average, the cost is expected to
be at $8.56 for the Thor Bidet and $6.46
for the portable bidet that is planned to go
10 CRITICAL RISKS & on sale in the companys third year of
ASSUMPTIONS operation. Inventory holding and
distribution will be outsourced to Amazon
and the costs have been projected to
10.1 ASSUMPTIONS $2.41 per unit. Product margins are
To compute forecast revenues, the expected to be $28.43 (77.0%) and
company will be taking the total number $11.53 (64%) for the Thor Bidet and the
of international students expected to Poseidon Bidet, respectively.
20 | P a g e
No capital expenditures are expected, and Operational Risk:
rent is expected to be at about $4,500 a
month, due to the projections that most Thor Bidet Inc. projects its design and
sales will be done online or through manufacturing costs to be $8.56 for the
institutions, thus having no need to have Thor Bidet and $6.46 for the Poseidon
a central location. Though Thor Bidet Inc. Bidet. However, there is a risk that these
will not patent the Thor Bidet, the costs will be greater than expected. In
company will apply for a design and utility addition, since Thor Bidet Inc. is
patent for the Poseidon Bidet in year 2. outsourcing its manufacturing to China,
there is a risk that the product is not up to
standard quality, due to lack of oversight,
10.2 RISKS which could severely tarnish the brands
Demand Risk: image. Further, since production will take
place in China, there is a risk of late
Thor Bidet Inc. recognizes potential risks shipments of the product.
in the market. Specifically, there is a risk
that demand will not be as high as To mitigate these risks, Thor Bidet Inc.s
expected; therefore, sales will be lower CIO will oversee production in China,
than projected. As the Thor Bidet Inc. is ensuring costs are kept low and product
targeting international students, if this quality is up to par. Thor Bidet Inc. will
population decreases in the near future, also keep safety stock of inventory in case
the company may miss its sales a problem arises in manufacturing or
projections. Furthermore, if Thor Bidet shipment, causing shipments to be
Inc.s marketing strategy fails to reach the delayed. The first order placed with the
target market, sales may be lower than manufacturer will contain excess bidets to
expected. Finally, the possibility of less diminish this risk.
sales poses the inherent risk of running
out of cash.
Lack of Patent Risk:
Thor Bidet Inc. will mitigate these risks in
As Thor Bidet Inc. does not currently have
several ways. First, through market
a patent, competitors can easily imitate
research, Thor Bidet Inc. has ensured that
the product itself. This is a critical risk that
there is a need for this product among
Thor Bidet Inc. will mitigate in the
international college students, specifically.
following ways: By offering a quality
In fact, not only does this market currently
product and an easy, convenient buying
exist, it is also estimated to grow at 9% in
experience that helps to retain customers;
the coming years. In addition, Thor Bidet
By quickly building brand awareness
Inc.s marketing strategy will reach the
through an aggressive marketing
majority of the target market, while its
strategy; By pricing the product lower
pricing strategy offers the quality product
than competitors; By producing new,
at an affordable price, particularly to the
innovative products based on market
target demographic, compared to the
needs.
price of similar products sold by industry
competitors. Finally, Thor Bidet Inc. will
keep costs low by bootstrapping and
using low-cost materials in manufacturing
to produce a quality product, raise more
capital if needed, and execute an
aggressive marketing strategy.

21 | P a g e
11 FINANCIAL PLAN potential target for the Thor Bidet of 2% in
the first year that builds to 9.6% by the
fifth year. Since the Poseidon Bidet has a
11.1 HIGHLIGHTS larger market potential, the company has
created a conservative estimate of first
Thor Bidet Inc.s financial plan offers a
year sales potential of 1.5% and plans to
great business value for investors. The
achieve 2.73% by the end of the third
companys revenue will start in August
year of sales.
2017 through the sales of the Thor Bidet
(Exhibit H). During the first year of
operations, the company would have net 11.3 COST CONTROLS
loss of $6,307.48 dollars. The companys Thor Bidet Inc.s CEO and CFO will be
second product, the Poseidon Bidet will be responsible to run the cost controls and to
introduced in the first quarter of the third manage the expenses of the company. If
year. needed, the marketing team will help for
the sales projections and the expansion
The company needs an investment of plan. Initially monthly reports will be
$200,000 apart from the owners generated to track the progress of the
investment of $100,000 in the first year. company. It will be the responsibility of all
The company has a negative cash from the founders to identify and mitigate risks
operations ($17,598) in the first year. The when needed.
burn rate of the company is 136 months.
However, the cash flow of operations
starts getting positive from Q2 of year 1 11.4 KEY FINANCIAL ASSUMPTIONS
(Exhibit I). The companys current ratio The company has accounted for sales
and quick ratio stands above the industry return and allowance which is assumed to
median suggesting that the company will be 3% of the revenues. Also, the company
be able to manage the short-term has kept a 15% operational expense
liabilities. The inventory ratio is on the buffer that will help mitigate the risks of
higher side, which suggests that the extra expense if required. Thor Bidet Inc.s
company will be able to sell the inventory major expenses will be purchases,
in fewer number of days. The profit marketing, and research and
margin of the company is between development. Apart from these, a major
18.88% and 30.94% from year 2 onwards. expense would be startup costs which
The return on equity has an exponential would be incurred in the first year. The
increase from 115.78% in year 2 to company will breakeven in 9 months. The
749.67% in year 5. net income after taxes will become
positive in the second quarter of year 2.
One benefit that investors will find
11.2 BREAKEVEN attractive is that the company is debt free
During the initial phase, the founders and most of the assets are liquid.
money will be invested and used to
bootstrap and start the business. The For now, to keep the financial statements
company will breakeven at 28,843 units in simple, the company has assumed that it
9 months (Exhibit E). The total market will pay the manufacturer and get paid by
potential for the Thor Bidet is 1.3 million retail stores and Amazon in the same
buyers, while the total market potential month. Thor Bidet Inc. has seasonal cash
for the Poseidon Bidet is 4.6 million flow sensitivity with respect to sales in the
buyers in their respective launch years. first and fourth quarters of the financial
The company has calculated a sales year. The company plans to keep the
22 | P a g e
salaries of the employees constant until Works Cited:
its financial goals are met.
1-
https://www.statista.com/statistics/268136
11.5 COMPANY OFFERING /top-15-countries-based-on-number-of-
Thor Bidet Inc. is seeking an investment of facebook-users/
$200,000 from investors in return for 14%
equity. The investor will also get voting 2-
rights and seat on the board. The NPV of https://www.salesforcemarketingcloud.co
the company is $1,474,829.59 using DCF m/wp-content/uploads/2013/06/The-
valuation technique (Exhibit K). The Facebook-Ads-Benchmark-Report.pdf
company also considered risk adjustment,
market risk premium and long term 3 - http://www.pewresearch.org/fact-
growth rate resulting to a discount rate of tank/2016/01/06/a-new-estimate-of-
40.80%. After analyzing the financial the-u-s-muslim-population/ft_16-01-
needs, the company plans to use the 05_numbermuslims/
money from angel investors for
marketing, initial purchase orders and 4 https://www.iie.org/Research-and-
R&D over a term of five years. The Insights/Open-
company has used cash safety cushion in
Doors/Data/International-
terms of 15% operating buffer. The
investment is expected to be made
Students/Leading-Institutions/2015-16
available during the starting months of
the business to achieve optimal growth 5
and manage sales. The company will https://www.census.gov/econ/isp/samp
buyout the investors for $1,000,000, or 5x ler.php?
their initial investment, at the end of year naicscode=322291&naicslevel=6
five. The preferred exit strategy would be
through acquisition from a major player of
sanitary toilet products. In the case of a
potential acquisition, Thor Bidet Inc. will
ensure a good fit, which benefits both
parties.

23 | P a g e
Exhibit A: Market Research

Q. How satisfied do you feel with your current method of cleaning? Q. Would you be interested in a high pressure water bidet that
provides effective cleaning without the use of hands?

Q. How much are you willing to shell out for a pressure based water Q. What do you think will matter when using bidet? (Choose one or
bidet (inclusive of 1yr warranty)? more)

Exhibit B: Market Size


Macro Market size Market Size (Thor)
Exhibit C: Conversion Rate

Thor Conversion Rates Poseidon Conversion Rates


Based on SalesForceSocial.com: The Facebook Ads Benchmark Report 2

Exhibit D: Marketing Budget


Marketing Budgets:
Exhibit E: Economic Model
Exhibit E (Continued)

Contribution Margin:
Breakeven:

Exhibit F: Operations Plan


Exhibit G: Management Team
Exhibit H: Income Statement

Income Statement Year 1


Income Statements Years 2 & 3
Income Statements Years 4 & 5
Exhibit I: Cash Flow Statement

Cash Flow Year 1


Cash Flow Years 2 & 3
Cash Flow Years 4 & 5
Exhibit J: Balance Sheets

Balance Sheet Year 1


Balance Sheet Years 2 & 3
Balance Sheet Years 4 & 5
Exhibit K: Valuation