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 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by

_________________________ in this marketing plan is confidential; therefore, reader agrees
not to disclose it without the express written permission of _________________________.

It is acknowledged by reader that information to be furnished in this marketing plan is in all

respects confidential in nature, other than information which is in the public domain through other
means and that any disclosure or use of same by reader, may cause serious harm or damage to
________________________.

Upon request, this document is to be immediately returned to _________________________.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a marketing plan. It does not imply an offering of securities.

 Table Of Contents

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

2.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . .2
2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . .3
2.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . .3
2.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . .4
2.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . .4
2.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
2.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . .5
2.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . .5
2.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . .6
2.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . .6
2.3 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
2.4 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
2.5 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
2.6 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
3.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . .7
3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . .8
3.4 Target Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
3.5 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
3.6 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . .8
3.7 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
3.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . .9

4.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

5.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . 14
5.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 14
 Creative Concepts Computer Design

1.0 Executive Summary

Creative Concepts Computer Design (CCCD) is a computer consulting firm whose target
customers consist of home users and small businesses. The Eugene, OR community will be served
by a comprehensive service provider that offers computer education/empowerment as well as
problem resolution.

CCCD is owned and operated by a seven-year industry veteran Don Digit. Don will leverage his
extensive experience to provide the community with high quality consulting services. CCCD's
competitive edge consists of their unusual ability to explain or teach complex technical issues to
clients of all computing abilities. The ability to translate complex "computerease" into basic
English is an unusual and desired skill. This competitive edge allows CCCD to empower clients
with new knowledge, making them feel significantly more comfortable in the computing
environment where they now interact in so many activities.

Creative Concepts will offer computer support to clients of two major categories, home PC users
and small office users. These categories will comprise 95% of our operations. Both Windows OS
as well as Macintosh OS can be supported. CCCD offers computer consulting for software such as
the Office Suite, MS Access and other database applications, Quicken, QuickBooks Pro, Internet
technology software, and CD-RW software.

Hardware issues that are addressed are the setup of LAN networks, wireless (WI-FI) networks,
CD-RW installations, hardware repair/replacement, and all issues relating to broadband
connections.

CCCD will rapidly gain market share by offering needed services, outstanding customer service,
and reasonable prices. CCCD projects earnings of $42,845 by year three.

Annual Sales Forecast

$45,000

$40,000

$35,000

$30,000

$25,000 Home PC
$20,000 Small Businesses
$15,000

$10,000

$5,000

$0
2003 2004 2005

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 Creative Concepts Computer Design

2.0 Situation Analysis

CCCD is close to entering their second year of service. The company has been well received , and
marketing is now critical to its continued success. The company offers a wide range of computer
consulting for both home users as well as small businesses. The basic market need is a
reasonably priced computer consulting firm that can translate technical computer information into
everyday English, allowing the lay-person to easily understand technical concepts.

2.1 Market Summary

CCCD possess good information about the market and knows a great deal of information about
the prized customers. This information will be leveraged to better understand who is served, their
specific needs, and how CCCD can better communicate with them.

Target Markets

Home PC Users
Small Business Contracts

Table 2.1: Target Market Forecast

Target Market Forecast

Potential Customers Growth 2003 2004 2005 2006 2007 CAGR
Home PC Users 2% 25,000 25,500 26,010 26,530 27,061 2.00%
Small Business Contracts 3% 10,000 10,300 10,609 10,927 11,255 3.00%
Total 2.29% 35,000 35,800 36,619 37,457 38,316 2.29%

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 Creative Concepts Computer Design

2.1.1 Market Demographics

The profile for CCCD's customer consists of the following geographic, demographic, and behavior
factors:

Geographics

• The immediate geographic target is the city of Eugene with a population of 130,000.
• A 30-mile geographic area is in need of our services.
• The total targeted population is estimated at 4,787.

Demographics

• Male: female ratio. 48%:52%

• Ages 26-54 with the median age of 33.
• Individual income ranges from $34,000-$65,000.
• 78% of the customers have had some undergraduate coursework and 14.8% have had
some graduate coursework.

Behavior Factors

• Have increased their reliance on personal computers in all aspects in their lives from
shopping, personal finance management, to information gathering.
• Strive to become more impendent in their use of the PC.
• Have increased the time spent on a PC from 12 hours a month in 1998 to 27.5 hours a
month in 2002 for personal use.

2.1.2 Market Needs

CCCD is providing customers with a comprehensive computer consulting service for home users
as well as small businesses. CCCD seeks to fulfill the following benefits that are important to their
customers.

• Comprehensiveness- CCCD seeks to offer a wide range of consulting services, allowing the
customer to be served with any type of computer issue that they may encounter.
• Teaching ability- While the customer is interested in having their computer problems
solved, most customers appreciate being empowered with new abilities and skills, giving
them more control within their computing environment.
• Customer service- The customer must leave the session believing that all of their needs
were met in a manner that exceeded their expectations.

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 Creative Concepts Computer Design

2.1.3 Market Trends

The market trend for the use of the PC within the home and the small business environment has
been a skyrocketing increase in usage, to a large degree fueled by the proliferation of the
Internet, and more recently by broadband connections. The relatively new uses of PCs are for the
following tasks:

• Personal financial management (including tax preparation and filing).

• Online bill paying.
• Internet purchases.
• Research.

Market Forecast

40,000

35,000

30,000

25,000

20,000 Home PC Users

Small Business Contracts
15,000

10,000

5,000

0
2003 2004 2005 2006 2007

2.1.4 Market Growth

In 1999, 27.8% of the Eugene community used a PC at home. In 2003, that number has soared
to 71%. Additionally, the percent of households that had a home Internet connection was 14% in
1999 and has increased to 64% in 2002.

The use of PC's within small businesses has not significantly grown in terms of the percent of
businesses that have PC's, but the usage of the PC within the business has increased by 39%
over a four year period in terms of activities that are now completed with the use of the
computer.

The increased usage of computers in both the home and business environment can be explained
by a number of factors including price decreases, technological improvements, as well as
decreases in complexity.

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 Creative Concepts Computer Design

Target Market Growth

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
Home PC Users Small Business Contracts

2.2 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and
describes the opportunities and threats facing CCCD.

2.2.1 Strengths

• In-depth, comprehensive industry experience and knowledge.

• The unusual ability to teach technical knowledge to a non-technical clientele.
• Flexibility- The ability to meet the customer's needs with a customized, flexible solution.

2.2.2 Weaknesses

• As a one person venture (at least initially), the number of clients served is dependant on
the time available for the one employee.
• The difficulty of building brand equity.
• The inability to scale rapidly to meet demand.

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 Creative Concepts Computer Design

2.2.3 Opportunities

• Participation within a growing market.

• Increased sales opportunities as the limit of technology is continually pushed upward.
• A decrease in market share for Apple (MacOS) should increase the reliance of consultants
to solve computer issues with the Windows operating system.

2.2.4 Threats

• Future/potential competition from franchised computer consulting firms.

• Significant leaps in computer technology making computers far easier to use, decreasing
the reliance on professionals for assistance with computer issues.
• A significant increase in consumer's knowledge/proficiency of computer technology.

2.3 Competition

There are two main competitors in this area.

1. VOS. They are a well-established provider of computer upgrades and services.

2. Suntech Computers. Smaller and less known than VOS, Suntech provides many services
for residents living in East and South Eugene.

Both of these companies charge rates in excess of Creative Concepts, we will be able to attract
the price-sensitive market without much work. Our second main advantage is the accessibility of
our services. The time conscious customer will appreciate our swift work.

Additionally, there are several phone based computer help services that offer help via the phone.

2.4 Services

Creative Concepts will offer computer support to clients of two major categories, home PC users
and small office users. These categories will comprise 95% of our operations. Both Windows OS
as well as Macintosh OS are supported. CCCD offers computer consulting for software such as the
Office Suite, MS Access and other databases, Quicken, QuickBooks Pro, Internet technology
software, and CD-RW software.

Hardware issues that are addressed are the setup of LAN networks, wireless (WI-FI) networks,
CD-RW installations, hardware repair/replacement, and all issues relating to broadband
connections.

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 Creative Concepts Computer Design

2.5 Keys to Success

The keys to success are simply:

• Exceed customer's expectations.

• Offer comprehensive, flexible services.
• Address market needs.

2.6 Critical Issues

CCCD is still in the speculative stages as a computer consultancy as a result of their young age. It
is critical that they continue to take a modest fiscal approach to serving the needs of the clients,
expanding only when the demand of the clients warrants expansion, not for the sake of expansion
in itself.

3.0 Marketing Strategy

CCCD will employ several programs within their marketing strategy. All of the programs will have
the goal of getting the largest bang for the buck as the marketing budget is fairly limited, but a
necessary expenditure. CCCD will employ advertisements in two local newspapers, the Register-
Guard and the Eugene Weekly, as well as provide free community workshops as a method of
networking. The last element of the marketing strategy will be the use of a robust website that
will catalog all of the different services offered by Creative Concepts.

3.1 Mission

Creative Concepts Computer Design's mission is to provide the client with the finest computer
consulting services available. CCCD exists to attract and maintain customers. With a strict
adherence to this maxim, success will be ensured. Our services will exceed the expectations of
our clients.

3.2 Marketing Objectives

The marketing objectives are as follows:

1. Increase sales every month for the first two years.

2. Increase repeat customers by 3% per quarter.
3. Develop a brand image that is synonymous with quality within the Eugene community.

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 Creative Concepts Computer Design

3.3 Financial Objectives

The financial objectives include the following goals:

1. Increase the profit margin by 1% per quarter.

2. Hold spending at a steady level as a percentage of sales.
3. Generate sufficient sales to eventually require the need to hire an additional employee.

3.4 Target Markets

Creative Concepts Computer Design will provide computer support in both a consulting and
technical capacity to home PC users as well as small business owners. Since Creative Concepts is
currently a one-man operation it will be limited in growth to the capacity of work able to be
completed. Personal market research indicates an available market niche able to be occupied by
additional businesses of this nature. The very nature of the computing industry, with its
extraordinary rate of technological development, creates a constant need for businesses skilled in
updating and advising customers on computer-related issues.

The existing computer service market is so extensive that categorizing it is a rather difficult task.
For our revenue-oriented purposes we will define the market as home PC users and small
business clients. Home PC users will provide the majority of our business revenue. These jobs will
typically consist of minor upgrades, services and advising. The small business market will be
defined as customers with five or more computers or a network requiring service or repair.

3.5 Positioning

Creative Concepts will position themselves as the premier computer consulting firm in the Eugene
community. The small business community as well as home users will be serviced with
professional and effective computer consulting that will solve users problems as well as empower
them with new-found control over their technological environment. CCCD will leverage their
competitive edge to achieve the desired positioning.

CCCD's competitive edge consists of their unusual ability to explain or teach complex technical
issues to clients of all computing abilities. The ability to translate complex "computerease" into
basic English is an unusual and desired skill. This competitive edge allows CCCD to empower
clients with new knowledge, making them feel significantly more comfortable in the computing
environment where they now interact in so many activities.

3.6 Strategy Pyramids

The single objective is to position CCCD as the premier computer consultancy, serving both home
users as well as small businesses, consistently increasing market penetration. The marketing
strategy will seek to generate customer awareness of CCCD's offered services and grow the
customer base, building referrals and customer loyalty.

The message that CCCD will seek to communicate is that they can offer assistance for any type of
computer issue that the customer can think of or encounter. CCCD will employ several different
methods of communication. The first method will be the use of advertisements. Ads will be placed
in the Register-Guard, Eugene's daily newspaper as well as the Eugene Weekly, the arts and
entertainment weekly.

CCCD will also use free, community computer presentations/seminars as a communication

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 Creative Concepts Computer Design

method. These presentations will be fairly broad based, general presentations/lectures

introducing newbies to computer technology. The goal of the presentations will be to introduce
the community to CCCD and their unique teaching style. The presentations should develop
significant new customer leads.

The last method CCCD will utilize is a comprehensive website that will display CCCD's
technological proficiency, describe their unique competitive edge of an efficient and effective
teaching style, as well as catalog all of the different services offered.

3.7 Marketing Mix

CCCD's marketing mix is comprised of the following approaches to pricing, distribution,

advertising and promotion, and customer service.

• Pricing- The pricing schedule is generally based on a per hour rate. However, CCCD is
flexible in order to meet all of the customer's possible needs including a monthly retainer
rate for any problems that arise.
• Distribution- Generally the services will be offered at the client's home/place of business.
• Advertising and Promotion- A multi-pronged strategy will be used for the
advertising/promotion campaign.
• Customer Service- CCCD is keenly aware of the need to have exemplary customer support
in order to increase their market penetration and achieve sustainable profitability.

3.8 Marketing Research

CCCD used primary marketing research to mine data about the market, customers, and their
preferences. An electronic survey was administered to collect the market research. The survey
took the form of either an email document or a form that could be completed online at CCCD's
website. The survey was issued to people within the target market segment. CCCD received a
total of 107 returned surveys that provided Creative Concepts with significant amounts of
valuable market research.

To ensure accuracy and validity of the surveys, the survey design was outsourced to a statistics
professional. The added expense of the survey creation was more than rewarded by accurate,
valid market research.

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 Creative Concepts Computer Design

4.0 Financials

This section will offer a financial overview of CCCD as it relates to the marketing activities.
Creative Concepts will address break-even analysis, sales forecasts, expense forecasts, and how
these reports link to the marketing strategy.

4.1 Break-even Analysis

The Break-even Analysis indicates that $463 will be needed in monthly sales to reach the break-
even point.

Break-even Analysis

$600

$400

$200

$0

($200)

($400)
$0 $180 $360 $540 $720 $899

Monthly break-even point

Break-even point = where line intersects with 0

Table 4.1: Break-even Analysis

Break-even Analysis:
Monthly Units Break-even 15
Monthly Sales Break-even $463

Assumptions:
Average Per-Unit Revenue $29.98
Average Per-Unit Variable Cost $5.70
Estimated Monthly Fixed Cost $375

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 Creative Concepts Computer Design

4.2 Sales Forecast

The sales strategy is a prediction of slow, controllable growth. Since there is one employee
(initially at least), the focus will be on quality and attention to detail especially in the beginning to
avoid some potential pitfalls encountered by many new businesses. This should allow for careful
examination of variations in demand with regards to season or holidays and still allow enough
flexibility to sufficiently compensate.

Monthly Sales Forecast

$3,500

$3,000

$2,500

$2,000
Home PC
$1,500 Small Businesses

$1,000

$500

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Table 4.2: Sales Forecast

Sales Forecast
Sales 2003 2004 2005
Home PC $11,874 $20,776 $31,667
Small Businesses $6,414 $12,338 $11,178
Total Sales $18,288 $33,114 $42,845

Direct Cost of Sales 2003 2004 2005

Home PC $1,781 $3,116 $4,750
Small Businesses $962 $1,851 $1,677
Subtotal Cost of Sales $2,743 $4,967 $6,427

Page 11
 Creative Concepts Computer Design

4.3 Expense Forecast

The expense forecast will be used as a tool to keep the business on target and to provide
indicators when a modification or correction must be made to ensure proper implementation of
the marketing plan.

Monthly Expense Budget

$400

$350

$300

$250

$200 Advertisements
Seminars
$150

$100

$50

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Table 4.3: Marketing Expense Budget

Marketing Expense Budget 2003 2004 2005

Advertisements $2,020 $2,500 $3,000
Seminars $1,650 $2,000 $2,400
------------ ------------ ------------
Total Sales and Marketing Expenses $3,670 $4,500 $5,400
Percent of Sales 20.07% 13.59% 12.60%
Contribution Margin $11,875 $23,647 $31,018
Contribution Margin / Sales 64.93% 71.41% 72.40%

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 Creative Concepts Computer Design

5.0 Controls

The purpose of CCCD's marketing plan is to serve as a guide for the organization. The following
areas will be monitored to gauge performance:

• Revenue- monthly and annual.

• Sales- monthly and annual.
• New customer acquisition costs.
• Customer satisfaction.

5.1 Implementation

The following milestones identify the key marketing programs. It is important to accomplish each
one on time and on budget.

Milestones

Marketing Plan Completion

Webiste Completion

Seminar #1

Seminar #2

Seminar #3

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Table 5.1: Milestones

Milestones Plan
Milestone Start Date End Date Budget Manager Department
Marketing Plan Completion 1/1/03 2/1/03 $0 Don
Webiste Completion 1/1/03 2/1/03 $0 Don
Seminar #1 2/1/03 4/30/03 $450 Don
Seminar #2 5/1/03 7/30/03 $550 Don
Seminar #3 8/1/03 10/30/03 $650 Don
Totals $1,650

Page 13
 Creative Concepts Computer Design

5.2 Marketing Organization

Don Digit will be responsible for CCCD's marketing activities.

5.3 Contingency Planning

Difficulties and risks:

• Problems generating visibility.

• Overly aggressive or debilitating actions from a franchised competitor.

Worst case risks include:

• Determining that the business cannot support itself on an ongoing basis.

• Having to liquidate equipment to cover liabilities.

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 Appendix: Creative Concepts Computer Design
Table 4.2 Sales Forecast

Sales Forecast Plan

Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Home PC $300 $360 $432 $518 $622 $746 $896 $1,075 $1,290 $1,548 $1,858 $2,229
Small Businesses $300 $330 $363 $399 $439 $483 $531 $585 $643 $707 $778 $856
Total Sales $600 $690 $795 $917 $1,061 $1,229 $1,427 $1,660 $1,933 $2,255 $2,636 $3,085

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Home PC $45 $54 $65 $78 $93 $112 $134 $161 $194 $232 $279 $334
Small Businesses $45 $50 $54 $60 $66 $72 $80 $88 $96 $106 $117 $128
Subtotal Cost of Sales $90 $104 $119 $138 $159 $184 $214 $249 $290 $338 $395 $463

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 Appendix: Creative Concepts Computer Design
Table 4.3 Marketing Expense Budget

Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Advertisements $150 $200 $250 $300 $100 $125 $140 $150 $125 $130 $150 $200
Seminars $0 $100 $100 $100 $100 $150 $150 $150 $200 $200 $200 $200
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Sales and Marketing Expenses $150 $300 $350 $400 $200 $275 $290 $300 $325 $330 $350 $400
Percent of Sales 25.00% 43.48% 44.03% 43.62% 18.85% 22.38% 20.32% 18.07% 16.81% 14.63% 13.28% 12.97%
Contribution Margin $360 $287 $326 $379 $702 $770 $923 $1,111 $1,318 $1,587 $1,891 $2,222
Contribution Margin / Sales 60.00% 41.52% 40.97% 41.38% 66.15% 62.62% 64.68% 66.93% 68.19% 70.37% 71.72% 72.03%

Page 2