Water Purification Marketing Plan

H2O Industries

Executive Summary

H₂0 Industries, Inc. provides the service of ion exchange portable tanks. This is the process of purifying water for industrial reasons. H₂0 Industries will take advantage of an unsatisfied market need for segregated resin regeneration on a portable basis.

The company will primarily focus its marketing strategies on offering segregated regeneration services to the untapped market of customers who require high-quality regeneration for their deionized (DI) water treatment facilities. The facility that H₂0 Industries will utilize is located in Newark, California and is already in limited production. H₂0 Industries will generate gross sales of $788,000 in the first year, reaching $1.9 million in the second, and $2.2 million in the third years.

H₂0 Industries' keys to success are:

1. Good quality control in the factory. Customers for high purity water have a very low tolerance threshold for flaws.
   
2. Fast response. In the case of most of H₂0 Industries' customers, the cost of the water is not a major element in their overall costs, but a very expensive shutdown could result due to poor or slow servicing.
   
3. High-profile allegiances. Key to overall company success is connected closely with success in achieving the goal of developing a dealership network of service-oriented water companies.

H₂0 Industries has a strong management team with years of industry experience. By leveraging their experience, as well as their rich market insight, the team will be able to execute on this solid business opportunity.

Sales Forecast
2003 2004 2005
Sales
Small companies < $1 million $381,765 $600,878 $630,922
Large companies $406,591 $1,299,867 $1,655,430
Total Sales $788,356 $1,900,745 $2,286,352

Direct Cost of Sales 2003 2004 2005
Small companies < $1 million $114,530 $180,263 $189,277
Large companies $121,977 $389,960 $496,629
Subtotal Direct Cost of Sales $236,507 $570,224 $685,906