Though their customers have inventory controls needs, these Bars eave not had a product they could offer until now. Critical to the product’s success is the ability to sell the customer an Inventory management solution that costs less than $5,000. Bradley Reprocessed Technology has signed a strategic alliance agreement with Wavered Engineering to sell its software products through these BARS. The first product is Wavered Inventory Basic and will be released in May. Bradley Reprocessed Technology projects sales of 20,000 units in 36 months. The product will sell for $850.
Even though the company is focused on the vertical arrests, Bars who sell warehouse are also interested in a low-end data collection solution. Crest Systems will assemble 1,000 plus warehouse management Bars to sell Wavered Inventory Basic. Bradley Reprocessed Technology will also develop specialty software modules that can be Integrated within Wavered Inventory Basic software. These units will sell for $800 to $1 ,OHO. Barley’s Reprocessed Technology plans to create a strong business relationship with its Bars customers that will lead to providing additional software and hardware products.
Company Background Bradley Reprocessed Technology Is a Value Added Reseller (VARY) that Is focused on selling low-end Inventory software and hardware products. The company
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It is expected that this arm of incorporation will allow room for growth and be an effective vehicle for acquiring a capital in five to seven yea The start-up cost of Bradley Reprocessed Technology will consist primarily establishing an account receivable system and communication system for salespeople. Leroy Bradley will invest $50,000. He will also secure a $100,000 loan. Marketing Plan There are thousands of small businesses that are dissatisfied with the choice of Inventory control products that are available to them. Most of these businesses exist below the water line for software companies.
Selling to a market that can only spend $5,000 on an inventory control solution is considered too small a return for the sales activity. It is Bradley Reprocessed Technology plan to sell to the Bars that serve the vertical markets as well as the Bars that sell warehouse products and services. Bradley Reprocessed Technology will also sell the hardware directly to customers when the software is purchased by the vertical Bars’ customer. The company will use 1 OFF inventories. Bradley Reprocessed Technology will focus on two target market groups: Warehouse Products and Services Bars: These Bars offer warehouse management hardware and software.
Though their primary focus is on larger contracts, an inexpensive product focused on the low end of the market will be attractive if the payoff is large enough. The Bars retain $500 on each product sold. There is no other software product that is focused on our target customers that rewards better for the sale. Vertical Market Bars: These Bars traditional don’t sell inventory management products to their customers. Inventory control products are not their focus; rather it is whatever item or product particular to that industry that is seed in manufacturing or assembly of their final product.
Yet they have thousands of customers. If the payoff is large enough, their access to the market would lead to enormous sales. Like the warehouse product Bars, the vertical market Bars would retain $500 on each product sold. Bradley Reprocessed Technology has the ability to create specialized software modules for customers that will customize the software. The company believes that one fourth of all software customers will request a customized module to be added to the software after purchase. This competitive teeth will be very effective and far reaching.
It has the potential to go forth in many foreign markets such as China and Japan. Both of these markets produce much of the technology that we have today, so having the option of refurbishing outdated software and hardware will be in high demand at a lower cost to the consumer in foreign markets. Recent changes in the computer reseller market have adversely affected MAT. These include margin squeezes, longer collection periods, and lower inventory turnovers. All of these concerns are part of the general trend affecting computer resellers. The margin squeeze is happening throughout the computer industry worldwide.
SOOT Analysis The only way we can hope to differentiate well is to define the vision of the company to be an information technology ally to our clients. We will not be able to compete in any effective way with the larger chain retailer. We need to offer a real alliance that includes such intangibles as confidence, reliability, and knowing that somebody will be there to answer questions and help at the important times. Our support services will be a major strength, which we hope to capture market share will include such arrives as; training, upgrade offers, installation services, network configuration services, etc.
The company will seek to aggressively pursue new opportunities. There are several different kinds of computer retailers within the industry including: 1 . Computer dealers: often focused on a few main brands of hardware, usually offering only a minimum of software, and variable amounts of service and support. Their service and support is not usually very good and their prices are usually higher than the larger stores. 2. Chain stores and computer superstores: usually offer scent walk-in service, with very aggressive pricing, and little support. . Mail order: offer aggressive pricing of boxed product. For the purely price-driven buyer, who buys boxes and expects no service, these are very good options. None of these direct competitors provides the customization and service that small businesses such as our clients truly need. We need to effectively compete against the idea that and training. Our focus group sessions indicated that our target home office markets think about price but would buy based on quality service if the offering were properly resented.
They think about price because that’s all they ever see. We have very good indications that many would rather pay more for a relationship with a long-term merchant providing back-up and quality service and support; they end up in the box- pusher channels because they aren’t aware of the alternatives. Arizona Learning System uses a technology strategy similar to Bradley Reprocessed Technology. The Arizona Learning System plan envisions developing two “markets: A telecommunications network and instructional content.
The plan includes faculty placement and assessment of instructional material effectiveness (Arizona State Board of Directors for Community Colleges, 1999) We currently depend on online advertising as our main way to reach new buyers. As we change strategies, however, we need to change the way we promote ourselves. We will be refocusing on our core message of service through radio, cable TV, sales brochures, direct mailers and newspapers. We need to sell the company, not the product. The most obvious and important trend in the market is decreasing prices. This has been true for years, but the trend seems to be quickening.