Initial And Market Entry P - 2389 Words

Implementation 7.1.1 Initial and Market Entry P ases -Technical Development and Market En try Having concluded the initial (trialing phase – the DA project), The three MEs are for ming a new CLIMAWIN company to field enquiries from potential customers around Europe (and later other) markets – as well as for other mutual purposes. All Climawin components are now available for production at batch scale and, with s cale increasing as orders multiply, their costs will become cheaper. Brand development was carried out during the DA project phase and the Climawin b rand is now more known than at the outset as is the concept of and term ventilation window. Further brand development will be pursued ion the next phases with the†¦show more content†¦These would be distributed across Europe and addr ess local markets and conditions so increasing penetration and accelerating sales. This second activity is la rgely a mass production and reselling of stock activity commanding a much higher profit margin than the first. It is envisaged that tightly controlled licencing agreements made with these LPPs ac ross Europe, will ensure continued growth in revenues (though increasingly from technology rath profit margins. r than wind ows and thus higher Further expansion after additional investment, whether by a large investor or by IPO, may be considered later. The option at this point of partnering with a larger manufacturer who has broader routes to larger markets will also be considered at this time. 7.1.3 Revenue and Profits Sales and margins (profits) are projected as follows: 2017 2018 Year 1 Year 2 Year 4 Year 6 Ye ar 8 Year 10 Revenue â‚ ¬400,000 â‚ ¬120,000 â‚ ¬2,500,000 â‚ ¬6,300,000 â‚ ¬1 0,050,000 â‚ ¬15,250,000 Costs â‚ ¬325,000 â‚ ¬86,7000 â‚ ¬1,750,000 â‚ ¬4,095,000 â‚ ¬ 6,231,000 â‚ ¬4,575,000 CW Sales â‚ ¬400,000 â‚ ¬120,000 â‚ ¬1,900,000 â‚ ¬4,500,000 â‚ ¬6 ,250,000 â‚ ¬7,000,000 Component Sales (LPPs) â‚ ¬ 600,000 â‚ ¬1,800,000 â‚ ¬ 3,800,000 â‚ ¬8,250,000 Gross Profits â‚ ¬75,000 â‚ ¬33,300 â‚ ¬ 750,000 â‚ ¬2,205,000 â‚ ¬3 ,819,000 â‚ ¬10,675,000 Jobs 2 8 10 20 30 44 The above table illustrates the sales, costs and gross profits in years 1 t 10. It illustrrates the gradual shift from an emphasis on sales of (lower profit) CWs in the early years to (higher