Chemical Laboratory Marketing Plan

Granite Industries, Inc.

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 Projections

Granite 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 Requirements

Granite 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.

Sales Forecast
2003 2004 2005
Sales
Commercial $1,040,416 $1,322,734 $1,566,545
Consumer $673,107 $787,765 $1,188,765
Total Sales $1,713,523 $2,110,499 $2,755,310

Direct Cost of Sales 2003 2004 2005
Commercial $416,166 $529,094 $626,618
Consumer $269,243 $315,106 $475,506
Subtotal Direct Cost of Sales $685,409 $844,200 $1,102,124