Chemical laboratory marketing plan

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Chemical Laboratory Marketing PlanGranite Industries

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

2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.3 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.4 Products Offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.5 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.6 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.1 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.3 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.4 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.5 Target Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.6 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.7 Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.8 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

4.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

5.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Table of Contents

1.0 Executive Summary

Granite Industries, Inc. (Granite) is a specialty chemical formulator, lab analysis agency, and toll manufacturer, selling products to companies from cosmetics manufacturers to food supplement marketers. Granite manufactures and distributes Creatine Monohydrate, an approved food supplement used to improve strength, endurance, and muscle mass. Granite also produces five other specialty chemicals that will be detailed later in this document. A strong knowledge-based management team, with a combined thirty-years of experience in this industry, incorporated Granite in 1999.

Granite is a niche player in the specialty and industrial-chemicals business, focusing on value-added products that are not widely or readily available in the United States. Granite Industries perfected unique manufacturing processes resulting in lower manufacturing costs and high profitability. Granite has established a network of strategic alliances with distribution companies who lack the capability to ascend from laboratory to commercial scale and manufacture products in accordance with quality specifications.

The distributors and customers have given Granite an opportunity to provide products beyond our present capability. Equipment will need to be added, inventory increased, and marketing and support activities established.

Sales and ProjectionsGranite had sales of $187,521 in 1999, $241,782 in 2000, and $269,507 in 2001. These numbers give Granite Industries a strong reference point on which to have based the sales projection for the upcoming three fiscal years. The projected sales for 2003 are $210,000; Granite projects this to increase to sales of over $2.9 million in 2004, and to over $4 million in 2005 (see table in the Sales Forecast section).

Funding RequirementsGranite is seeking adequate capital to enable Granite Industries to expand operations and become a major factor in the production of chemicals in the industrial, consumer, and textile markets. The signature product is Creatine Monohydrate; manufactured in both the powdered and liquid forms. Granite is the only company in the world capable of manufacturing this product in liquid form. The market research shows that the demand for this product alone justifies the expansion of the facilities.

Note: Other company names and financial information has been removed from this sample plan to protect confidential and proprietary information.

Granite Industries Inc.

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$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2005 2006 2007

Commercial

Consumer

Textile

Annual Sales Forecast

Table: Sales Forecast

Sales ForecastSales 2005 2006 2007Commercial $1,040,416 $1,322,734 $1,566,545Consumer $673,107 $787,765 $1,188,765Textile $558,851 $844,323 $1,344,323Total Sales $2,272,374 $2,954,822 $4,099,633

Direct Cost of Sales 2005 2006 2007Commercial $416,166 $529,094 $626,618Consumer $269,243 $315,106 $475,506Textile $223,540 $337,729 $537,729Subtotal Direct Cost of Sales $908,950 $1,181,929 $1,639,853

2.0 Situation Analysis

Granite is in their fourth year of operation. The business has been well received and marketing is critical to their continued success. Granite offers a wide range of chemicals to three different customer groups. The basic market need is for innovative, quality chemicals and formulas that are reliably delivered at reasonable rates.


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2.1 Market Summary

Granite possess good information about the market and knows a great deal about the common attributes of the different customers. Granite will leverage this information to better understand who is served, their specific needs, and how Granite can better communicate with them.

Industrial

Consumer

Textile

Target Markets

Table: Market Analysis

Market AnalysisPotential Customers Growth 2004 2005 2006 2007 2008 CAGRIndustrial 10% 75,000 82,500 90,750 99,825 109,808 10.00%Consumer 22% 125,000 152,500 186,050 226,981 276,917 22.00%Textile 40% 36,400 50,960 71,344 99,882 139,835 40.00%Total 22.17% 236,400 285,960 348,144 426,688 526,560 22.17%

2.1.1 Market Demographics

The profile for Granite's customers consists of the following geographic, demographic, and behavior factors.

Geographics

• The area served is not geographically limited. While most business will be transacted within the United States, shipments will be made to Europe and other parts of the world.

• The total targeted population is 235,000.

Demographics

• The average age of the customer companies is generally not less than five years old, however, some start-up companies will be served.

• Most of the client companies have multi-million dollar revenue streams with 64% of


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the companies realizing $17-$41 million in sales per year.

Behavior Factors

• Require consistent products. • Need high quality chemicals for the manufacture of their products.

2.1.2 Market Needs

Granite Industries is serving their customers with specialty industrial chemicals. The chemicals provided will consistently be of high quality and are not widely available. Granite Industries seeks to fulfill the following benefits that are important to their customers:

• High quality- Granites chemicals are typically one of many chemicals in a customer's end product. The need for high quality is therefore intuitive and necessary.

• Consistency- Because Granite's product is just one ingredient in the customer's product, there must be consistency in the ingredients in order to achieve the same final product, regardless of the batch produced.

• Customer Service- Exceeding the customer's expectations is an imperative. Another element of customer satisfaction is consistent deliveries. Many of the customers employ just-in-time (JIT) manufacturing, so shipments must arrive when they are promised, otherwise production schedules are significantly effected.

2.1.3 Market Trends

The chemical industry is characterized by a wide variety of companies ranging in size from the large companies such as DuPont and Monsanto to smaller specialty firms such as ours. The companies are generally organized by either end-use markets or product technology. In the past decade there has been a general trend in the industry to change emphasis from chemicals to biotechnology and pharmaceuticals. The cost of product development and the need to operate factories at high levels of capacity have caused chemical companies of every size to outsource parts of the chemical and manufacturing processes. This has created opportunities for smaller companies to create and occupy niches in development and contract manufacturing. The outsource industry providers occupy a market segment commonly identified as custom and toll manufacturers.

The trend of outsourcing components or ingredients of the final product has occurred for the last seven to nine years. Granite has seen no indicators to indicate that this trend will change anytime soon.


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0

50,000

100,000

150,000

200,000

250,000

300,000

2004 2005 2006 2007 2008

Industrial

Consumer

Textile

Market Forecast

2.1.4 Market Growth

With the proliferation of smaller companies producing chemicals for larger companies, or more complex products, there has been a 8% industry growth rate for subcontracting. As the capital market has been dealing with the recent Internet and capital fallout, capital has become more scarce, particularly venture capital. The industry growth rate is forecasted to continue to grow at the current rate.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Industrial Consumer Textile

Target Market Growth


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2.2 SWOT Analysis

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

2.2.1 Strengths

• Strong relationships with vendors. • Unique, cost effective manufacturing processes. • Strategic alliances with many distributors.

2.2.2 Weaknesses

• A lack of brand equity, a result of being a relatively new company. • The struggle to maintain the unique manufacturing process as a trade secret. • Significant research and development costs.

2.2.3 Opportunities

• Participation within a growing industry. • Increased sales opportunities with the perfection of new chemicals or more cost

effective manufacturing techniques. • The ability to increase the capture of human capital developed within the organization.

2.2.4 Threats

• Future/ potential competition from large, multi-national chemical manufactures. • A slump in the national/world economy. • Unforeseen governmental regulatory actions.

2.3 Competition

In the mainstream business, channels are critical to volume. Manufacturers and distributors with impact in the international chemical market desperately need specialty and toll manufacturers like Granite to meet the demand. There are many specialty manufacturers, all of whom seem to have carved out a specific niche of expertise, and upon whom these major manufacturers depend for products. In competition, it seems that the line is drawn at the level of quality performance. Granite has achieved that level and is recognized for a high standard of quality performance. Companies who would seem to be competitors have subcontracted production to Granite because they do not have the ability to supply that level of quality.

Granite has achieved another milestone in the industry by developing certain formulations that they estimate would cost another firm $450,000 to duplicate. The Creatine Monohydrate


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formulation and process is one of them. Granite Industries has the only process in the world that can produce this supplement in liquid form. It is extremely important that the opportunity is seized and exclusive marketing for this product begins.

2.4 Products Offered

Creatine Monohydrate. This is a dietary supplement commonly used by athletes to improve strength, endurance, and muscle mass. Creatine has become the most popular body building supplement in use today. It is sold in many forms through health food stores, drug stores, and discount chains. The leading producers of Creatine are in Europe, and only a few recently in the United States. The distribution system is complex, with manufacturers selling through a layered system. Granite has developed a Creatine-based drink that is one-of-a-kind. Granite hopes to begin marketing the product in 2004. Sales potential is well over $1 million per year.

Kelate Cu. This is a specialty product used in cosmetics. It is distributed through Distributor A by special arrangement. Their largest customers are Estee Lauder and Revlon. Sales of this product are forecasted to be between $140,000 and $175,000 per year.

Melasyn 100. This is a synthetic form of natural melanin. It is used as a pigment for vitiligo preparation and as a self tanning agent. It is water soluble, which makes it easy to formulate in cosmetic preparations. Granite is working with Customer A to supply this product to Distributor A. Sales are projected to be at $250,000 in 2003.

G-REZ DB. This is a specialty coating material used on industrial buffing pads. Granite has developed this product at the request of the Customer C and sales could reach $300,000 in 2003.

Becrosan 2128A. This is a corrosion inhibitor with a bright future. Similar chemistry has been very successful in Europe for several years. Granite has manufactured this product on a toll arrangement for Customer B at a level of $65,000 per year. With marketing, the potential is estimated to be $260,000.

Ion Exchange Resins. Granite provides a toll drying service for Customer D at a level of $35,000 per year.

Recrystallized Flavoring Product A. This is a crude Flavor A extract. Granite purifies the extract into an edible grade flavoring using our proprietary recrystallization process. It is then used in both food and tobacco industries. Granite Industries has teamed up with Distributor B, the world's largest distributor of Flavor A, to develop the process. Broker A is the broker. Estimated sales based on current demand levels are $75,000.



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2.5 Keys to Success

The following variables are the keys to success:

• Meeting market demands. • Consistent and high quality products. • Superior customer service.

2.6 Critical Issues

The critical issues that Granite faces are:

• Pursue controlled growth that dictates that payroll expenses will never exceed sales revenue.

• Constantly monitor customer satisfaction, ensuring that the growth strategy will never compromise service and satisfaction levels.

3.0 Marketing Strategy

Granite addresses the market through three business segments: industrial products, consumer products, and textile chemicals. Granite is a highly technical niche player who has developed strong alliances with distributors who have powerful channel relationships but lack manufacturing or product development capabilities.

The marketing strategy assumes that Granite will serve these distributors in three ways:

• Toll Manufacturers, customer provides the raw materials and the formulation and we mix to their specifications.

• Custom Manufacturers, customers may provide materials but Granite provides the formulation and the processes.

• Trade Supplier, Granite develops and sells their own lines of products based on industry and customer needs.

3.1 Marketing Research

Throughout Granite Industries existence, there has been an ongoing campaign to collect market research. Granite has dedicated one full time employee and three graduate student interns to collect valuable market research.


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3.2 Mission

Granite Industries' mission is to provide the highest quality, lowest cost specialty chemicals for the chemical industry. We exist to attract and maintain customers. With the strict adherence to this maxim and scrutinized financial controls, success will be ensured. Our products will exceed the expectations of our customers.

3.3 Marketing Objectives

1. Maintain, steady, sustainable growth each quarter. 2. Continue to increase market penetration by 1.5% per quarter. 3. Increase brand awareness of Granite and its superior products and service.

3.4 Financial Objectives

1. Never decrease research and development relative to sales levels. 2. Continue to generate manufacturing efficiencies, helping expand the profit margin. 3. Attempt to decrease overhead costs as a percentage of revenue.

3.5 Target Markets

Our market is divided into three segments:

• Industrial Products: In this segment our customers include Customer B, Customer D and Distributor A.

• Consumer Products: Handled primarily through distributors. • Textile Products: Customers are: Customer E, Customer C, Customer F and Customer

G.

Customer Profiles:

• Customer E. This family of companies are manufacturers and distributors of textile specialty chemicals. Sales to them are estimated to grow to $250,000.

• Customer A. A marketing and chemical broker company. Granite provides product and process development and manufacturing services. They are the agent for Creatine Monohydrate, Kelate CU, and Melasyn 100. The potential here is over $2 million in sales.

• Broker A. A marketing company and chemical broker. We process ion exchange resins and purified Flavoring Product A for them. Granite can anticipate $200 to $300,000 in sales to them per year.

• Distributor A. A marketing company. They specialize in cosmetic and personal care products. They are the distributors of Kelate Cu, Melasyn 100, and Provitamin B-5, all of which Granite produces for them.

• Customer B. Granite produces corrosion inhibitors for this manufacturer. • Customer C. The world's largest supplier of industrial buffing pads. Granite has

developed special coatings for them which have been approved and recommended to their worldwide subsidiaries.

• Customer D. Manufacturers and distributors of ion exchange resins. Granite provides both custom and toll manufacturing processes for them. Custom and toll


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manufacturers are two types of distributors that Granite serves. A custom manufacturer may provide the materials for Granite to use the formula and processes on. A toll manufacturer provides their own materials and formulation for Granite to mix the product.


3.6 Positioning

Granite Industries will position themselves as a premier niche chemical manufacturer for the chemical industry. This positioning will be achieved by leveraging Granite's competitive edge is in the formulations and manufacturing processes that has been developed for the production of the seven specialized products. This has created a sustainable competitive advantage relative to the other industry participants.

3.7 Strategies

The single objective that Granite faces is to position themselves as the premier niche chemical supplier, continually increasing market share. The market strategy will seek to generate brand awareness and build the customer base.

The message that Granite Industries will seek to communicate is that they are the highest quality, most customer service orientated specialty chemical supplier in the industry. This message will be communicated through several methods:

1. Advertisements- They will be placed in trade journals. 2. Networking/ Lobbying- It takes significant effort and contacts to generate large, long

term contracts. 3. Trade show participation- These activities could be grouped under the

networking/lobbying, however they will be separated in order to more accurately highlight the expenses.

3.8 Marketing Mix

Granite Industries' marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.

• Pricing- The pricing structures are totally flexible, ranging from per unit costs, to developmental costs, to futures.

• Distribution- Granite's products can be distributed anywhere. • Advertising and Promotion- Several different strategies will be undertaken to

accomplish the advertising and promotion goals. • Customer Service- Superior customer service is imperative. Several non-industry

companies, such as L.L. Bean, Northstroms, and Siemens will be benchmarked to achieve this lofty but necessary goal.


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4.0 Financials

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

4.1 Break-even Analysis

The break-even analysis is based on running costs, the "burn rate" costs incurred to keep the business running, not on theoretical fixed costs that would be relevant only if Granite closes.

The assumptions in average unit sales and average cost per kilogram depend on averaging. Granite does not really need to calculate an exact average because this is sufficiently close to help Granite to understand what the real break-even point will be.

($60,000)

($40,000)

($20,000)

$0

$20,000

$40,000

$60,000

$80,000

$0 $40,000 $80,000 $120,000 $160,000 $200,000

Monthly break-even point

Break-even point = where line intersects with 0

Break-even Analysis

Table: Break-even Analysis

Break-even Analysis:Monthly Units Break-even 9Monthly Revenue Break-even $92,833

Assumptions:Average Per-Unit Revenue $10,000.

00Average Per-Unit Variable Cost $4,000.0

0Estimated Monthly Fixed Cost $55,700


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4.2 Sales Forecast

The sales strategy is outlined below in three phases.

• Phase One is to accommodate existing customers and to make sure that current orders and subsequent orders are maintained.

• Phase Two will commence when the facilities are expanded. Granite will then be able to accept new clients and contact companies who have shown interest in the products and be able to accommodate their orders. Granite plans to hire a high-quality sales person to assist in defining our marketing program.

Both phase one and two will primarily be toll and custom manufacturing.

• Phase Three will begin with the hiring of two additional sales representatives who will develop the end-user program.

The sales forecast assumes no significant change in costs or prices, which is a reasonable assumption for the past two years.

The sales in 1999 were $187,521, $241,782 in 2000, and were $269,507 in 2001. All of these sales were without the benefit of a marketing program. Granite feels that with a good marketing program and adequate manufacturing facilities they can achieve a sales goal of $2.9 million in 2004 and over $4 million in 2005.

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

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

Commercial

Consumer

Textile

Monthly Sales Forecast


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4.3 Expense Forecast

The expense forecast will be used as a tool to keep the department on target and provide indicators when modifications or corrections must be made to insure the proper implementation of the marketing strategy.

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

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

Advertisements

Networking

Other

Monthly Expense Budget

Table: Marketing Expense Budget

Marketing Expense Budget 2005 2006 2007Advertisements $61,500 $75,000 $90,000Networking $7,400 $10,000 $13,000Other $3,400 $6,000 $9,000

------------ ------------ ------------Total Sales and Marketing Expenses $72,300 $91,000 $112,000Percent of Sales 3.18% 3.08% 2.73%Contribution Margin $1,291,124 $1,681,893 $2,347,780Contribution Margin / Sales 56.82% 56.92% 57.27%

5.0 Controls

The purpose of Granite Industries marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance.

• Revenue- monthly and annual. • Expenses- monthly and revenue. • Research and development as a percentage of sales. • Customer satisfaction.


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5.1 Implementation

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

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

Marketing plan completion

Advertising campaign #1

Advertising campaign #2

Trade show #1

Trade show #2

Trade show #3

Milestones

Table: Milestones

MilestonesMilestone Start Date End Date Budget Manager DepartmentMarketing plan completion 1/1/2003 2/1/2003 $0 Steve MarketingAdvertising campaign #1 1/1/2003 6/30/2003 $16,500 Steve MarketingAdvertising campaign #2 7/1/2003 12/30/2003 $45,000 Steve MarketingTrade show #1 1/1/2003 4/30/2003 $1,000 Steve MarketingTrade show #2 5/1/2003 8/30/2003 $1,100 Steve MarketingTrade show #3 9/1/2003 12/30/2003 $1,300 Steve MarketingTotals $64,900

5.2 Marketing Organization

The vice president of marketing is responsible for the marketing activities.


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5.3 Contingency Planning

Difficulties and Risks

• Generating sufficiently large contracts. • Overly aggressive and debilitating actions by a larger competitor.

Worst Case Risks Included

• Determining that the business cannot support itself. • Having liquidate equipment or intellectual property to cover liabilities.


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Appendix Table: Sales Forecast

Sales ForecastSales Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovCommercial $45,192 $51,223 $65,449 $72,234 $79,773 $84,454 $91,221 $98,773 $105,334 $109,887 $114,887 $121,989Consumer $12,009 $24,448 $34,443 $41,223 $48,774 $56,443 $61,221 $68,443 $74,443 $79,664 $84,332 $87,664Textile $10,038 $23,303 $22,344 $29,889 $35,009 $43,333 $50,083 $57,665 $63,223 $69,887 $74,333 $79,744Total Sales $67,239 $98,974 $122,236 $143,346 $163,556 $184,230 $202,525 $224,881 $243,000 $259,438 $273,552 $289,397

Direct Cost of Sales Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovCommercial $18,077 $20,489 $26,180 $28,894 $31,909 $33,782 $36,488 $39,509 $42,134 $43,955 $45,955 $48,796Consumer $4,804 $9,779 $13,777 $16,489 $19,510 $22,577 $24,488 $27,377 $29,777 $31,866 $33,733 $35,066Textile $4,015 $9,321 $8,938 $11,956 $14,004 $17,333 $20,033 $23,066 $25,289 $27,955 $29,733 $31,898Subtotal Direct Cost of Sales $26,896 $39,590 $48,894 $57,338 $65,422 $73,692 $81,010 $89,952 $97,200 $103,775 $109,421 $115,759

Appendix

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Appendix Table: Marketing Expense Budget

Marketing Expense Budget Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovAdvertisements $1,000 $1,500 $2,000 $3,000 $4,000 $5,000 $3,000 $4,000 $8,000 $9,000 $10,000 $11,000Networking $500 $600 $700 $800 $400 $500 $600 $700 $500 $600 $700 $800Other $0 $0 $300 $700 $0 $0 $300 $800 $0 $0 $300 $1,000

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Total Sales and Marketing Expenses $1,500 $2,100 $3,000 $4,500 $4,400 $5,500 $3,900 $5,500 $8,500 $9,600 $11,000 $12,800Percent of Sales 2.23% 2.12% 2.45% 3.14% 2.69% 2.99% 1.93% 2.45% 3.50% 3.70% 4.02% 4.42%Contribution Margin $38,843 $57,284 $70,342 $81,508 $93,734 $105,038 $117,615 $129,429 $137,300 $146,063 $153,131 $160,838Contribution Margin / Sales 57.77% 57.88% 57.55% 56.86% 57.31% 57.01% 58.07% 57.55% 56.50% 56.30% 55.98% 55.58%

Appendix

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Chemical laboratory marketing plan

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