The Company has established relationships and contracts with distribution and sales of its' products and services through various experienced distribution and marketing channels, including primarily medical device marketing, government marketing and supplier outlets. The Company has recently introduced the BAFI™ product through the medium of direct internet marketing and advertising, which is gaining wide recognition as an effective method of introducing products and driving customers to retail distribution channels. The web site can be located at WWW.INGEN-TECH.COM.
An integral part of the Company's marketing strategy, and a common theme to the marketing plan, is its complete proprietary product offering. By offering a proprietary line of products and services, and promoting cost-effective and leading-edge identity, the Company can establish permanent residency in major national and international medical supply outlets. This will afford the Company less resistance to new products which it seeks to introduce on an ongoing basis in the future.
BAFI™ MARKETING PROGRAM
The Company has currently implemented the initial distribution plan with H.N.W. Marketing, Inc., Tecn-NI-Comm, Inc., and National Health & Safety, Inc. The plan entails the expansion of development and distribution of its products and services, and the development of wholesale and retail distribution through an experienced marketing network, medical supply outlets, government agencies and managed care organizations. The plan also entails garnering the support of the medical community through the sponsorship of ongoing research of oxygen delivery programs and devices. The Company continues to negotiate distribution programs with large and experienced distributors.
Institutional Health Care Distribution
The Company's management has developed active relationships with physicians, hospitals and various suppliers in the United States and has established a direct sales channel designed to build a network of health care institutional distribution to actively purchase the BAFI™ products and services.
The Company is preparing to significantly expand its direct sales program to government agencies, institutions, health care providers, hospitals, managed care organizations, urgent care centers, skilled nursing facilities and private industry. In doing so, management intends to appoint regional sales managers in target regions throughout the United States. These regional sales managers will be charged with executing the Company's direct sales efforts in their respective territories, specifically establishing new, active accounts. The Company has focused the early thrust of its expanded marketing program in the United States, where management perceives the largest current opportunity for a practical direct sales program.
Retail Distribution
The Company plans to initially distribute leading-edge and cost effective BAFI™ systems through mass medical marketing channels, including distributor retail chains, medical suppliers and institutional departments.
The Company has appointed independent representatives to represent its products on a regional basis throughout the United States. Management will continue to appoint other firms which have extensive physician/medical penetration and experience with medical products and continue to gain distribution through the vast and growing network of independent medical device chain outlets.
International Marketing Program
The Company intends to expand its product line into certain international markets. Management expects that the product will be issued foreign patents and that the regulatory approval process in certain countries will be more expedient. The Company will appoint The Wharton School at the University of Pennsylvania to continue updating its international market research report on the potential of the product lines and related products. The report will provide ongoing recommendations for achieving overseas market penetration.
In the opinion of management, the Wharton report will confirm the Company's basic premise regarding the need and market potential for its product line, and will validate many of the product development and preliminary international market development activities which the Company will pursue.
The international markets would include Canada, Mexico, South America, Europe, the Middle East, and Asia.
BAFI™ Advisory Board
It is management's opinion that the support of the medical community is important to the long-term success of the Company's products in the marketplace. In order to garner this support, the Company is taking steps to align itself with noted medical experts and other recognized authorities in the fields which its proposed products are involved. The Company believes that the credibility provided by the acceptance of the medical community will pave the way for consumer acceptance.
The Company has a Medical Advisory Board, whose mission statement encompasses the following areas:
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The Advisory Board will provide advice and recommendations to the Company's management regarding product development and independent testing.
DIRECT RESPONSE MARKETING PROGRAM
An integral part of the Company's sales and marketing strategy is the use of direct response advertising ("infomercial's") and internet web site exposure, to introduce its products to the marketplace, achieve significant sales, and develop brand name recognition. An infomercial can be described simply as a televised commercial or web site of up to 6 minutes in length, which demonstrates a product or services and attempts to motivate the viewer to call a toll free telephone number and order the product or service. Five Star Advantage, Inc. is our contractor for web mall virtual shopping and ordering processes through the internet and is rated as one of the Top-50 most popular internet malls on the West Coast and has 20 years experience with a history as one of the few pioneers of internet fulfillment services.
The infomercial has proven itself to be capable of literally revitalizing entire product categories. Because of its unique ability to provide for live demonstration of a product to (up to) millions of people simultaneously, the infomercial has transformed several previously small, sleepy product categories into industry leading growth segments.
Unique to the infomercial marketing technique, products can generally be sold at relatively high prices (compared to traditional retail) because the product's usefulness and value can be established through demonstration. The higher price of an infomercial product actually pays for the higher selling costs associated with the purchase of media time.
The Company has appointed an outside direct response marketing consulting firm, Tech-Ni-Comm, Inc., to assist in developing and executing this portion of its marketing program. Through its sales & marketing division, the Company has established a relationship with several web site developers to establish a joint infomercial marketing venture for the BAFI™ product line and services. The Company intends to explore the advisability of establishing such an arrangement regarding future products, as well as the prospects of developing its own infomercial marketing program.
Independent Representative Network
A principal component of the BAFI™ marketing strategy involves distribution of its' product line through major national and regional medical marketing networks. Company management, together with key senior consultants, have extensive contacts and relationships with independent representative firms throughout the United States. Ultimately, management has secured distribution contracts with 450 brokers, marketing consultants and special instrument dealers (SID's) to spearhead the Company's sales campaign in acceptable market areas in the United States. At such time as BAFI™ has achieved adequate market penetration in the initial markets, and as production, logistics, financing, and operational capabilities increase, the Company intends to expand its market representation and continue to expand in new markets.
The Company has allocated a substantial portion of its distribution network, advertising and promotion, including the production of 10 minute (and longer) "infomercials", and web sites designed to promote viewership of the infomercial and product lines.
The Company has approached major medical supplies direct mail catalog houses , and other magazine supply catalog operators for representation and sales through such publications. The Company may choose to market through catalogs under a special brand name.
ADVERTISING & PROMOTION
The primary objective of the Company's planned advertising and promotional endeavors have been to establish the BAFI™ name and image as the top manufacturer of leading-edge & cost effective gas warning alert system products and services within the industry.
The Company's initial architecture for its' advertising campaign is being built around the cost advantages of the BAFI™ systems, including its applications and importance. The message will also seek to project the preparedness and peace of mind that comes from owning the product dedicated to their clinical and corporate liabilities.
Concurrently, these same efforts will reinforce the Company's wholesale program by increasing brand name awareness among chain and independent buyers. To accomplish these objectives, the Company will employ a variety of proven marketing communications techniques , to include but not be limited to, on-site demonstrations of the product, national & regional exhibits, regional and local institutional advertising, and co-op advertising and promotions.
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