THOR BIDET, INC.

BUSINESS PLAN

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Table of Contents
1 EXECUTIVE SUMMARY 1
1.1 Opportunity 1
1.2 Business Concept & Competitive Advantage 1
1.3 Target Market 1
1.4 Essence of Marketing Plan 2
1.5 Technological & Operational Issues 2
1.6 The Team 3
1.7 Economics 3
1.8 Financial Highlights 3
1.9 Financial Need 3
2 COMPANY, CONCEPT, & PRODUCTS 4
2.1 The Company and Concept 4
2.2 The Product 4
2.3 Entry & Growth Strategy 5
3 INDUSTRY ANALYSIS 5
3.1 Summary 5
3.2 Size & Growth Rate 5
3.3 Structure 6
3.4 Key Trends 6
3.5 Key Success Factors 6
4 MARKET RESEARCH & ANALYSIS 6
4.1 Relevant Market & Customer Overview 6
4.2 Market Size & Trends 7
4.3 Buyer Behavior 7
4.4 Market Segmentation & Targeting 8
4.5 Competition & Competitive Edges 8
4.6 Estimated Market Share 8
4.7 Ongoing Market Evaluation 9
5 ECONOMICS OF BUSINESS 9
5.1 Revenue Drivers & Margins 9
5.2 Fixed & Variable Costs 9
5.3 Operating Leverage & Implications 9

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 5.4 Start-up Costs 10
5.5 Breakeven Calculation 10
5.6 Overall Economic Model 10
5.7 Profit Durability 10
6 MARKETING PLAN 10
6.1 Overall Marketing Strategy 10
6.2 Pricing 11
6.3 The Selling Cycle 11
6.4 Sales Tactics 12
6.5 Advertising & Promotions 12
6.6 Publicity 13
6.7 Warranty & Guarantee Policy 13
6.8 Distribution 13
7 DESIGN & DEVELOPMENT PLAN 13
7.1 Development Status & Tasks 13
7.2 Difficulties & Risks 13
7.3 Product Improvements & New Products 14
7.4 Development Costs 14
8 OPERATIONS PLAN 14
8.1 Operating Model & Cycle 14
8.2 Operations Strategy 15
8.3 Geographic Location 15
8.4 Capacity Levels & Inventory Management 16
9 MANAGEMENT TEAM 16
9.1 Key Personnel & Responsibilities 16
9.2 Management Salaries & Ownership 17
9.3 Board of Advisors 17
10 OVERALL SCHEDULE 18
10.1 Schedule Summary 18
11 CRITICAL RISKS & ASSUMPTIONS 20
11.1 Assumptions 20
11.2 Risks 20
12 FINANCIAL PLAN 21
12.1 Highlights 21

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12.2 Breakeven 21
12.3 Cost controls 21
12.4 Key Financial Assumptions 21
12.5 COMPANY OFFERING 22

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1 EXECUTIVE SUMMARY

1.1 OPPORTUNITY leave the individual feeling completely

hygienic and more confident.

In addition to more powerful water

There are approximately 2.5 billion people pressure, the Thor Bidet will be
in the world, for whom the norm is to use a differentiated through a series of features
bidet or another source of water to cleanse that this niche market values. To mitigate
after a visit to the restroom. The reason for hygienic issues between housemates, the
using water is both cultural and religious. Thor Bidet will come with replaceable
These individuals face tremendous handles available in several colors to easily
discomfort when they travel to parts of the distinguish ownership. The Thor Bidet will
world where the norm is to use toilet paper, have a designed capacity of 1 gallon and
since the bathrooms are not equipped with will be shaped to be stable and easy to
faucets for cleaning with water. There is a store.
niche market of approximately 1.5 million
students that are in the US from these By year three, Thor Bidet Inc. will introduce
regions that face this issue with an a second product, the Poseidon Bidet,
additional influx of approximately 350,000 which will be smaller and discreet. The
new students each year. These students Poseidon Bidet will be designed and geared
live in rented properties or college dorms toward portable use, when leaving the
where they cannot legally customize the house. As such, this product will also target
bathroom faucets to solve this problem and people with the same background that
thus find themselves in a conundrum. The have already adapted their means at their
solution is the Thor Bidet. home in the US, but still lack a portable
option to take care of their needs; an
estimated population of 4.6 million people.
1.2 BUSINESS CONCEPT &
COMPETITIVE ADVANTAGE
1.3 TARGET MARKET
Thor Bidet Inc. will alleviate this pain for
the individual, by providing a semi-portable Thor Bidet Inc.s target market includes
bidet which can be filled using a standard international college students from the
tap in a bathroom. By conducting primary specified 55 countries in Exhibit B, where it
market research, the company has is customary to clean with water due to
identified convenience of use, high religious practices (Muslims & Hindus) or
pressure, water quantity, and price as the habitual routines associated with the
critical factors. The Thor Bidet exceeds its cultures of their home countries (India,
competition in each of these aspects and Europe, parts of Asia, etc.). Thor Bidet Inc.
has been engineered to spray with enough has identified approximately 1.5 Million
pressure that will enable the user to potential customers based on their religion
complete the cleansing process or the customs of their home country
satisfactorily and without unfitting use of (Exhibit B). Based on the data published by
their hands. Consequently, this product will the Institute of International Education4, the
number of students in the target market is

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expected to grow by 9% each year. After are the digital platforms that Thor Bidet Inc.
conducting a survey of approximately 150 will use for advertising purposes. Thor Bidet
people on the need and value of the Inc. will be engaging the services of Happa
product with the select target customer, it Studios (a design studio based in Lahore,
was confirmed that 57% were dissatisfied Pakistan) to design the brands image and
with the current method they were using. create the required branding materials that
Furthermore, 62% were willing to purchase will be used to create a uniform brand
a high pressure bidet for $31 or more. presence. For the online social media
content management, the company will
For the first two years Thor Bidet Inc. has utilize $99 Social, to ensure a uniform
chosen a market penetration strategy that social media presence; Sales
is based on targeting specific university representatives who are responsible for
student bodies, due to the large marketing and selling the product to the
concentration of identified customers. This selected college institutions; Select retail
strategy is two pronged where the stores that focus on selling international
company will market directly to the products originating from the home
consumer through online channels and also countries of the target market; and a PR
initiate a B2B channel with the campaign by associating with websites like
international student centers of these Buzzfeed India, in correlation with the
select universities. Through communication Hindu holiday, Holi.
with international student organizations,
Thor Bidet Inc. is confident that the Thor Bidet Inc. will be sold on Amazon and
selected institutions will be inclined to bulk in retail stores, however Amazon will be
purchase bidets to give to their incoming responsible for fulfilling the orders of
batch of international students, easing the individual online customers and
students transition into the US. In year institutional/wholesale sales. As the online
three, once the brand has been established company website offers information about
and achieves a market presence, the the product and the most convenient place
company will expand its marketing efforts to purchase the product based on the
to all international students in the US who customers location, orders cannot be
fit Thor Bidet Inc.s segment. placed on the website. Additionally,
wholesale orders from stores and college
institutions will be placed through sales
1.4 ESSENCE OF MARKETING PLAN representatives, who will provide them with
a promo code(s) that will be used on
Thor Bidet Inc.s goal is to provide the go-to Amazon to fulfil the institutional/wholesale
semi-portable bidet within the college order(s). The retail price of the Thor Bidet is
student market, by communicating the $36.99, while the retail price of the
message that its product offers superior Poseidon Bidet is $17.99. As competitors
quality, at a competitive price, while price similar products between $50-$75
providing customers with a strong sense of and $15 respectively, Thor Bidet Inc.s
relief, satisfaction, and confidence. pricing structure is competitive.

Thor Bidet Inc. proposes to promote the 1.5 TECHNOLOGICAL &

product through the following means: The OPERATIONAL ISSUES
company website, which advertises the
product(s), informs customers how to use
the product(s) and explains where the
product(s) can be purchased; Facebook,
Instagram, SnapChat, and YouTube, which

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Thor Bidet Inc. has identified Taizhou Mangirish Rajadhyaksha (CFO), Egzon Halili
Luqiao Lvxin Sprayer Co. Ltd. as its (COO), Kartik Kakria (CIO), and Nicholas
potential offshore manufacturer. The Piroli (CMO). There will also be a
manufacturer located in Zhejiang, China professional board of advisors, consisting of
(Mainland) is a professional manufacturing Kenneth Walsleben (Business), Raza Khan
company that has ample capacity and (Operations), and Harini Tatnis (Product
stringent quality measures that perfectly Development).
suit the supplier needs of the company. The
company already is in possession of a
prototype for the Thor Bidet; For the 1.7 ECONOMICS
Poseidon Bidet, the company will be
collaborating with Nectar Product The Thor and Poseidon Bidets will be
Development (http://nectarpd.com) based retailed at $36.99 and $17.99 respectively.
in Long Beach, CA, a firm with 25 years of However, the revenue recognition will
experience, 20+ design awards, and 70+ occur after taking out the retailer's margins
patents, to come up with creative designs of 15% for Amazon and 30% for specialty
for a convenient and portable bidet, that retail stores and institutional sales; The
fulfill the requirements of our target market Thor Bidets revenue recognition price will
customers. The company will use Amazon be $31.44 & $25.89, while the Poseidon
storage as well as its fulfillment centers for Bidets revenue recognition price will be
its distribution operations, since Amazon is $15.29 & $12.59. The cost of the Thor Bidet
an extremely popular e-commerce portal in is $6.71, while the Poseidon Bidet will be
the college student market. In addition, manufactured at a cost of $4.21. The Thor
Amazon is known as the industry leader in Bidet has a contribution margin of 79% on
its ability to easily synchronize between online sales and a 74% margin on
inventory management, order institutional sales/retail store sales; The
management and customer relationship Poseidon Bidet has a contribution margin of
management. Thor Bidet Inc. recognizes 72% on online sales and 67% on
that as a startup, it must build a strong institutional sales/retail store sales. Thor
relationship with its supplier to assure that Bidet Inc. expects to achieve a sales
the quality variations are at a minimum volume of 31,736 units of the Thor Bidet in
and the production delivery schedule is the first year and grow it to 65,457 units by
followed properly. Therefore, regular trips the end of the second year. The cost
will be conducted by the CIO to the structure is variable because the
manufacturer to mitigate the risks companys core competency is in
associated with having a single supplier. identifying the opportunity, directing the
designing of the products, marketing, and
co-ordination with the vendors and
customers. Thor Bidet Inc. has outsourced
the manufacturing and warehousing.
Furthermore, Thor Bidet Inc.s economic
model operates on high margins and high
1.6 THE TEAM volume with two revenue drivers and low
operating leverage.
The company will be registered as a C-Corp
and initially consist of the five founders, 1.8 FINANCIAL HIGHLIGHTS
each a Syracuse University MBA graduate
and specializing in executive roles
throughout important departments of the Thor Bidet Inc. will break-even at 28,843
company: Muhammad Khan (CEO), units bringing in a revenue of $810,844.94

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in 9 months. In their respective launch
years, the total market potential for the
2 COMPANY, CONCEPT,
Thor Bidet is 1.3 million buyers, while the & PRODUCTS
market potential for the Poseidon Bidet is
4.6 million buyers. The company has
calculated a sales potential target for the 2.1 THE COMPANY AND CONCEPT
Thor Bidet of 2% in the first year that builds
to 9.6% by the fifth year. Since the
Thor Bidet Inc. will be formed as a C-Corp.,
Poseidon Bidet has a larger market
based in the state of Delaware and will
potential the company has created a
commence operations in May 2017. The
conservative estimate of first year sales
founding team consist of five individuals:
potential of 1.5% and plans to achieve
two from India and one from Pakistan,
2.73% by the end of the third year of sales.
Kosovo, and the United States. Each brings
with them a diverse breadth of cultural and
The profit margin of the company is experiential learnings being from unique
between 18.88% and 30.94% from year 2 backgrounds. All members are business
onwards. The return on equity has an students, with two of them specializing in
exponential increase from 115.78% in year entrepreneurship and marketing, one in
2 to 749.67% in year 5. entrepreneurship and sustainability, one in
supply chain analytics and one in finance &
The company has a negative cash from analytics.
operations ($17,598) in the first year. The
burn rate of the company is 136 months. The concept was discovered when the team
However, the cash flow of operations had to come up with a potential viable
become and remain positive in Q2 of year business idea for their capstone project.
1. The founding members explored their
personal pains they faced, and honed in to
1.9 FINANCIAL NEED the concept at hand when they realized
that four of them face the same pain, being
an international student in the United
States.
The company is asking for $200,000 from
investors in return for 14% equity. The According to PewResearch, there are
investor will also get voting rights and seat approximately 2.5 billion people in the
on the board. Thor Bidet Inc. will buy out world, for whom the norm is to use a bidet
the investor for $1,000,000 or 5x their or other water source to cleanse after a
initial investment at the end of year five. visit to the restroom. The reason for using
After analyzing the financial needs, the water is both cultural and religious. These
company plans to use the money from an individuals face tremendous discomfort
investor for marketing, initial purchase when they travel to parts of the world
orders, and R&D (product design) over a where the norm is to use toilet paper, since
term of five years. the majority of bathrooms in the US are not
equipped with bidet fixtures for cleaning
with water. There is a niche market of
approximately 1.5 million students that are
in the US from these regions that face this
issue with an additional influx of
approximately 350,000 new students each
year (IIE). These students live in rented

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properties or college dorms where they they find themselves in a predicament and
cannot legally customize the bathroom experience discomfort. Our target market is
faucets to their liking and thus find these individuals/students that have
themselves in a conundrum. Thor Bidet will recently arrived and are feeling the pain of
alleviate this pain for the individual, by the change in cultural norms. Currently
providing a semi-portable bidet which can Thor Bidet Inc. is focusing towards two
be filled using a standard tap in a bidet systems; the Thor Bidet and the
bathroom. By conducting primary market Poseidon Bidet. The Thor Bidet is designed
research the company has identified to be used in home toilets as a semi-
convenience of use, high pressure, water portable bidet, with a handheld sprayer
quantity, and price as the critical factors. system, while the Poseidon Bidet will be
Thor bidet exceeds its competition in each compact and portable, which individuals
of these aspects and has been engineered can conveniently carry in their school bags,
to spray with enough pressure that will briefcases, or large handbags whenever
enable the user to complete the cleansing they leave home.
process satisfactorily and without unfitting
use of their hands. The Thor Bidet also
provides the customer feeling completely 2.3 ENTRY & GROWTH STRATEGY
hygienic and, therefore, more confident.
For the first two years, Thor Bidet Inc. has
chosen a market penetration strategy that
2.2 THE PRODUCT is based on targeting specific university
student bodies, due to the large
The Thor Bidet is a semi-portable bidet concentration of identified customers
system with a handheld sprayer that (Exhibit B). This strategy is two pronged
provides highly pressurized water through where the company will market directly to
a flat fan jet nozzle that will optimize the the consumer through online channels and
use of water by creating a triangular spray also initiate a B2B channel with the
pattern mimicking the jet sprays used in a international student centers of these
carwash. This will make less water achieve select universities.
the same cleanliness results as other
nozzles that spray out streams. The Thor Bidet Inc. plans to first target the
purpose of the bidet is to give the niche market of students coming into the
consumer the feeling of being clean and US from these countries. As a new body of
hygienic. Thus, they can go about their international students come to the US each
days in complete comfort and with the year, demand increases each year as well.
utmost confidence. As students tend to join their national or
religious student unions, these
The primary user for the Thor Bidet are organizations can be used to target
individuals from the 55 countries listed in potential customers. As the Thor Bidet has
Exhibit B, where it is customary to clean high emotional value, word of mouth plays
with water due to religious practices a crucial role in sales conversions, as new
(Muslims & Hindus) or habitual routines students tend to ask the older students for
associated with the cultures of their home guidance.
countries (India, Europe, parts of Asia,
etc.). Using toilet paper as an alternative For the B2B channel, Thor Bidet Inc. is
does not give this market the same confident that the selected institutions will
satisfaction as they get when they use be inclined to bulk purchase bidets to give
water. When these individuals travel to to their incoming batch of international
areas where the norm is to use toilet paper

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students, easing the students transition Despite an average of 350,000 students
into the US. The companys research shows coming in from target countries that use
that the universities are actively involved in bidet as part of their culture, there is a lack
trying to make the transition of of a bidets for them as most buildings in
international students as comfortable and United States do not include bidets in their
as smooth as possible. infrastructure. The industry is therefore
constructed mainly by paper towels and
In the third year, the brand would have other portable bidets that include plastic
established a reasonable presence air-pumped or battery-functioned portable
amongst its customers; Therefore, the bidets, which are essentially the only two
company plans to expand its marketing alternatives available. In addition, neither
efforts to all international students in the of these options meet the demands of its
US who fit Thor Bidets segment and target market primarily due to a lack of
concurrently will be launching its second water pressure.
product called the Poseidon Bidet.
Culturally, most of the rest of the world use
Thor Bidet Inc.s plan is to focus towards a bidets. However, Muslims and Hindus are
steady growth, rather than an explosive, the main protagonists, as it is religiously
exponential one. This will help Thor Bidet required and therefore a necessity. In the
Inc. create a strong brand presence and US, the only alternative they can find is
thus become synonymous with the solution toilet paper, hence the industry, with
for the target market. This brand portable bidets not even having its own
recognition should act as a barrier to entry industry.
while Thor Bidet Inc. keeps on innovating
and optimizing its products in correlation 3.2 SIZE & GROWTH RATE
with customer needs.
The toilet paper industry is large and
3 INDUSTRY ANALYSIS mature, with 317.77 million people
reported to use toilet paper in US, at an
average of $118.98 per consumer, making
3.1 SUMMARY it a $37.8 billion industry. However, 3.3% of
the population in United States is
considered to be Muslim or Hindu3.
NAICS Code for the portable bidet industry Therefore, the relevant share of the
is: 322291 Toilet paper manufacturing. industry would be worth about $1.25
billion. Furthermore, there was a 20.6%
There is currently no industry for this growth of this industry between 2007 and
particular product, therefore Thor Bidet will 2015. (Statista)
have to create market space by competing
with toilet paper. Despite being a In terms of Thor Bidet Inc.s strategy, there
completely different product, Thor Bidet is a spacious opportunity due to most
serves the same purpose and will therefore people using a product that is well
directly compete as an alternative. This perceived to be less effective and hygienic,
particular market within the industry is especially for people of Muslim or Hindu
premature with very few options available religion. That part of the industry is
in United States, but the industry as a therefore in its early stage.
whole is large and mature.

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3.3 STRUCTURE Muslim and Hindu students coming to study
in United States is also increasing at an
average of 9% annually.
The portable bidet part of the industry,
specifically, leaves a lot to be desired.
There are currently three main players: Bio The U.S. Census Bureau shows that other
Bidet Palm Travel, Brondell GoSpa, and Blue key trends in the portable bidet and toilet
Bidet. According to a market research paper markets would include the increasing
survey conducted for this product, none of price of plastic and wood, respectively, and
the current alternatives solve the needs of the forecasted 1.6% compound growth of
the current target market due to lack of per capita disposable income between
pressure and convenience. As such, neither 2012 and 2017.
of the current players have a strong
position, with most of the target market The key factors driving the growth of the
currently using standard water bottles to industry include changing lifestyles, rising
fulfill their needs. healthcare expenditures, increasing
population apart from steady rise in global
Market research also showed that price is GNI and low penetration of substitutes for
not the main factor. Instead, convenience toilet paper and portable bidets.
and pressure of the water supply is
considered key. As such, it is important to 3.5 KEY SUCCESS FACTORS
ensure that the product completely meets
the demands of the target market in order
to capture it. Changing lifestyles, the growing population,
rising health expenses and a low
penetration of substitutes for toilet paper
However, the products purpose sets it as a and portable bidets are among the key
direct competitor with toilet paper success factors affecting this industry.
products. The two products will be fighting
for the same clients, making them
substitute products. Additionally, establishment of brand names
is also a key factor for the products
success in this industry. Although there are
The toilet paper industry is substantially largely reputed brands already in the toilet
concentrated, with Kimberly-Clark, Procter paper industry, the portable bidet market
& Gamble, Georgia-Pacific, Svenska lacks a widely considered go-to product. As
Cellulosa Aktiebolaget and other private such, it would be crucial to establish a
label manufactures all capturing a sustainable brand that is associated with
significant share of the market (IBISWorld). customer service focus, hygiene,
performance, and reliability.
3.4 KEY TRENDS

The portable bidet market is a new trend in

the US. The development of the perfect
product would position the company in a
strong position to maintain and grow,
especially as the bidet industry is also
expected to grow within the US,
considering it is already mature in most of
the world. Additionally, the percentage of

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4 MARKET RESEARCH & Considering that the market research in
Exhibit A shows 57% of the students
ANALYSIS coming from target countries are not
satisfied with their current method of
cleaning, and 80% of them claim that they
4.1 RELEVANT MARKET & are interested in a high pressure water
CUSTOMER OVERVIEW bidet that provides effective cleaning
without the use of hands, the market size
that is interested to buy a product like the
Considering that the portable bidet is Thor Bidet goes as high as 293,527
majorly a cultural must-have for specific students (see Exhibit B).
regions and religions, the relevant target
market for the Thor Bidet will be narrow
and specific. It will be targeting early The most important trend is the average
adopters that are coming to study in United 9% increase of the number of international
States from countries that practice the students coming to United States. If we
Hindu and Islam religions. look at the international students coming
from Hindi and Muslim backgrounds alone,
there has been an increase of 53% during
A typical 18-35-year-old Hindi or Muslim the last 5 years, with 2016 lately recording
student coming to study in United States an 11% increase from the previous year. In
would be the perfect candidate, due to the accordance to the last 5 years average,
current culture in the US, making it nearly this market is expected to grow at an
impossible to find bidets in public annual rate of 9% for the upcoming years.
restrooms. In addition, these students only
come to United States to study temporarily,
therefore they cannot install permanent Another positive trend can be found in the
bidets in their rented houses. Thor Bidet size of the Hindu and Muslim population
Inc. will specifically target upcoming currently residing in US already, which
international students, as market research corresponds to 3.3 million Muslims and 2.3
found that current students in the US have million Hindus according to PewResearch 3,
already established their means of hygiene projected to grow at a rate of 2.1% and
or adapted. 1.2%, respectively. Additionally, the overall
5.6 million population with such
In terms of demographics, the only real background is considered as a target
criteria will mostly be the cultural and segment for the Poseidon Bidet, Thor Bidet
religious background of the students, as it Inc.s second product planned to be
is practically a necessity for people coming launched in year 3.
from certain religions and regions to use
water when it comes to restroom hygiene.
4.3 BUYER BEHAVIOR
4.2 MARKET SIZE & TRENDS

The market size is attractive, considering

that a total of 1,043,839 students have
entered United States from countries of
Hindi or Muslim religious background in
2016, with 37% of them being from
countries that befit Thor Bidet Inc.s target
market.

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The majority of students researched, that product might fulfill a need that they didnt
fulfil the target segment criteria, claimed to recognize before.
have adapted to using toilet paper as part
of their stay in United States. As such, Thor Thor Bidets target market will be incoming
Bidet Inc. must approach targeted students international students that are not used to
before they adapt, more specifically as restrooms without a bidet. They will be 18-
soon as they arrive in United States. 35 years old, will be looking at trends and
online social media, will be reluctant to
Considering the privacy effect of the Thor adapt to the restroom culture in United
Bidet, buyer behavior will only be States, and will have the initiative to
dependent upon personal choices of each change for a reasonable price.
person. Many of them will be hesitant to
even discuss their choices or use of this
product with their peers, therefore it is 4.5 COMPETITION & COMPETITIVE
imperative that the company targets them EDGES
at personalized stores such as Indian
Bazaar. Most new international students There a few competitors in the market, but
tend to be hesitant of the large, American none can be considered as the dominating
markets at first, preferring to stick to their player in the market as they are all lacking
cultural practices and products, visiting at least one key attribute that the target
imported foods shops that are small and market has identified as a must-have for
convenient for many of them. them.

In order to determine the buyer behavior of Blue Bidet:

this particular target market, shopping
habits must be observed, especially in
terms of products and locations. To save on This product is the cheapest bidet on the
large amounts of capital required to build market and the one with the least amount
inventory needed to supply the large of pressure being created as well. This is
markets, Thor Bidet Inc. will be targeting due to the fact that the pressure is created
small imported foods shops, major airports, by the hand squeeze force. The positives is
and online ads specified at upcoming that its low cost and has high portability.
international students from targeted The disadvantage is that it does not
countries. remove the need for the use of ones hand
and thus does not ensure convenience nor
complete hygiene. Additionally, the water
4.4 MARKET SEGMENTATION & storage of this unit is quite small and thus
TARGETING its usually not adequate for a wash and
leaves the user dissatisfied.
Market segmentation will be strict and
narrow, considering that this product is
only viable for people with a specific
background, that are to live in US. Students Bio Bidet Electric:
with Hindi and Islamic backgrounds will be
the primary niche, alongside other
countries that use bidets or at least water Like the Blue Bidet, this product is quite
culturally and traditionally. There are also similar in its size and portability but the
other segments that might be worth small major difference is the fact that it has an
percentages of the total sales as this electric motor that runs on battery and the

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pump push water out. However, due to the During years 2 and 3, Thor Bidet Inc. will
small size of the pump and battery, the expand to all incoming students from
pressure is again lacking and the user has target countries and all students pursuing
to use their hands to complete the process. studies in the US, respectively. The target
Further, the water storage is small and market by the third year is expected to be
inadequate. Finally, this unit is not an approximately 2,016,184 students, 60% of
affordable option for the typical college which are expected to come across the
student. Thor Bidet at least once during their stay.

Porta Bidet Pro: 4.7 ONGOING MARKET EVALUATION

Though this product is electric, it is large Due to modest initial capital investment
and lacks portability. It has a large water requirements, Thor Bidet will start with only
tank and can produce better water a home product. There are several
pressure. However, due to its bulky size factors that, according to research, have
and high cost, this product is not for the been found as important to the target
student target market that Thor Bidet Inc. market: convenience, pressure strength,
will be targeting. water capacity, and size. Unfortunately,
Thor
Blue
Biobi Generi
due to the unfeasibility of providing each of
Bidet PortaB
Attribu Bidet
(Hand
det
idet
c the demands, Thor Bidet Inc. must sacrifice
tes (Our (Elect Mug(L
Product)
Pressuri
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Pro
ota) certain features in order to fulfil the most
sed)
important ones, which, according to market
Qualtty High Med High High Low research, are convenience and pressure
Price $31 $15 $50 $75 $2
Online &
strength.
Deliver Speciality Grocery
y Stores Online Online Online Stores
Warran Therefore, the Thor Bidet will primarily be
ties 1 Year 1 Month 1 year 1 year None
Water
used at home and will not be geared
Capacit 500 toward portability. However, the companys
y 2 Litre 500 Ml Ml 1 Litre 1 Litre
Portabi
research and assessment will be
lity Medium High High Low High immediately shifted towards the launching
Pressu Very
re High Low Low Medium Low
of the second product, the Poseidon Bidet,
after careful evaluation of what features
the target market values the most. As part
4.6 ESTIMATED MARKET SHARE of an ongoing Research & Development
process, Thor Bidet Inc. will be evaluating
Identified international students coming the exact features and possibilities of a
from countries where water is the medium new, smaller and portable product that
of cleansing are the primary target market. customers will be able to take with them to
During the first year, Thor Bidet Inc. will be school, work, etc. Another objective of the
only targeting the 25 universities with the Research & Development will be to
largest share of students from target determine where the company can save in
countries, which translates to 52,894 terms of cost and size and which features
students during 2016. The company are most important to potential customers.
expects to penetrate 60% of this market,
thus equaling a market capture of 31,736
students during the first year.

25 | P a g e
5 ECONOMICS OF calculations and percentages of total costs
can be found in Exhibit E.
BUSINESS
5.3 OPERATING LEVERAGE &
5.1 REVENUE DRIVERS & MARGINS IMPLICATIONS
The Thor Bidet will be the primary revenue Initially the business will be relatively
driver for the first two years and will highly leveraged because of high initial
generate 100% of the companys revenue. costs. As the business starts making sales,
In the third year, the Poseidon bidet will be the variable costs will start increasing as
introduced and both products will per the product sales while the fixed costs
contribute towards the revenues of Thor will be minimal/low. Thus, the cost structure
Bidet Inc. is variable because Thor Bidet Inc.s core
competency is in identifying the
Thor & Poseidon bidets will be retailed at opportunity, directing the designing of the
$36.99 and $17.99. However, the revenue products, marketing, and co-ordination with
recognition will occur after taking out the the vendors and customers. The company
retailer's margins of 15% for Amazon and has also outsourced its manufacturing and
30% for specialty retail stores and warehousing.
institutional sales; As the Thor Bidets
revenue recognition price will be $31.44 & 5.4 START-UP COSTS
$25.89, the Poseidon Bidets revenue
recognition price will be $15.29 & $12.59.
The cost of the Thor Bidet is $6.71, while
the Poseidon bidet will be manufactured at
a cost of $4.21. The Thor Bidet has a
contribution margin of 79% on online sales
and a 74% margin on institutional
sales/retail store sales; The Poseidon Bidet
has a contribution margin of 72% on online
sales and 67% on institutional sales/retail
store sales. The company expects to
achieve sales volume of 31,736 units of the
Thor Bidet in the first year and grow it to
65,457 units by the end of the second year.
5.5 BREAKEVEN CALCULATION
5.2 FIXED & VARIABLE COSTS
Thor Bidet Inc.s cost structure is primarily
made up of variable costs. These variable
costs include manufacturing, packaging
and shipping from China, product warranty
cost and Amazon storage and fulfillment
cost. The companys fixed costs consist of
office rent, utilities, salaries and
administrative cost; employee, business
and renters insurance; marketing &
advertising; and research & development. Breakeven (Units)= (Fixed Costs + Startup
The breakdown of the fixed costs Costs)/ Weighted Average Contribution
Margin

27 | P a g e
Breakeven (Dollars) = Breakeven (Units) * retaining customer loyalty to Thor Bidet
Weighted Average Revenue Recognition Inc. in future bidet purchases. Thor Bidet
Cost Inc.s goal is to communicate the message
that its product offers superior quality, at a
competitive price and provides customers
5.6 OVERALL ECONOMIC MODEL with a strong sense of relief, satisfaction,
Thor Bidet Inc.s economic model (Exhibit and confidence.
E) will operate on high margins and high
volume. There are two revenue drivers, Thor Bidet Inc. proposes to promote the
namely the Thor Bidet and the Poseidon product through the following means: Thor
Bidet. Since the company has outsourced Bidet Inc.s company website, which
the manufacturing to China, the cost advertises the product(s) and informs
structure of Thor Bidet Inc. is variable and customers how to use the product(s) and
eventually the company will operate with where the product(s) can be purchased;
low operating leverage after sales pick up. Facebook, Instagram, Snapchat, and
This type of model is less risky due to the YouTube, which are the digital platforms
low fixed cost structure of the company. that Thor Bidet Inc. will use for advertising
purposes. Thor Bidet Inc. will be engaging
Overall, this economic model is strong and the services of Happa Studios (a design
attractive since high profits will be studio based in Lahore, Pakistan) to design
generated through high margins and high the brands image and create the required
sales volumes. branding materials that will be used to
create a uniform brand presence. Further,
5.7 PROFIT DURABILITY Thor Bidet Inc. will utilize the online social
The profit stream will be vulnerable during media content management platform, $99
the first two years since Thor Bidet Inc. is Social, to ensure a uniform social media
selling only a single product. However, presence; Sales representatives who are
having a complete solution to the intensity responsible for marketing and selling the
of pain faced by the many customers and product to select college institutions; Select
the launch of the Poseidon Bidet in the retail stores that focus on selling
third year will make the profit stream more international products originating from the
solid. The market lead time will be less home countries of the target market; and a
since Thor Bidet Inc. is collaborating with PR campaign in correlation with the Hindu
Amazon. This will also increase the holiday, Holi.
customer service levels.
Thor Bidet Inc. will be sold on Amazon and
So, the overall profit durability will be in retail stores. However, Amazon will be
strong. This is also supported by the fact responsible for fulfilling the orders of
that there is less competitive risk as bidets individual online customers and
are not the primary product used for the institutional/wholesale sales. As the online
cleansing process in the US. company website offers information about
the product and the most convenient place
to purchase the product based on the
6 MARKETING PLAN customers location, orders cannot be
placed on the website. Additionally,
wholesale orders from stores and college
6.1 OVERALL MARKETING STRATEGY institutions will be placed through sales
Thor Bidet Inc.s overall marketing goal is representatives, who will provide them with
to gain market share of international a promo code(s) that will be used during
college students and college institutions, checkout on Amazon in order to fulfill the

29 | P a g e
institutional/wholesale order(s). The retail bidet market, called the Poseidon Bidet,
price of the Thor Bidet is $36.99, while the which will have a retail price of $17.99 and
Poseidon Bidet is $17.99. Competitors offer a wholesale price of $12.59; competitively
similar products at roughly $50-$75 and priced with competing products.
$15 respectively. The wholesale price to
retail stores and college institutions is The price point of the Thor Bidet was
$25.89. strategically decided through market
research and comparing the product to
Thor Bidet Inc. will enter and focus on the those of competitors. According to market
following college markets listed in Exhibit research, over 50% of respondents said
B. Through word of mouth, digital they would be willing to pay between $31-
advertising and the use of retail stores, $40, while 40% said they would be willing
individual sales are expected to increase to pay between $20-$30. As Thor Bidet Inc.
substantially after year three once Thor is targeting international college students
Bidet Inc. has been established in the with specific customs or religious norms,
marketplace and the Poseidon Bidet in strategically differentiated itself as the low-
launched into the market, attracting nearly price player in the market, making the
4.2 million potential customers. product affordable for college students with
low incomes.
Thor Bidet Inc. will assess marketing
effectiveness through sales, website visits,
and Facebook insights. As these factors are
6.3 THE SELLING CYCLE
crucial in building marketing and sales The Thor Bidet will be accessible to the
strategies, Thor Bidet Inc. will track them target market in several ways. As digital
carefully to see how to market and sell its marketing efforts will ramp up in
products most efficiently and effectively. September and January, the start of college
semesters, international college students
will become aware of the product and
6.2 PRICING recognize a need for it. As 350,000
Thor Bidet Poseidon Blue Biobidet PortaBidet international students, from countries in
Bidet Bidet Pro
$36.99 $17.99 $14.95 $14.95- $75
which the use of a bidet is customary,
(Amazon) (Amazon) - $49.99 come to the US each year for college, Thor
$25.89 $12.59 $58.87 Bidet Inc. will ramp up marketing in the
(Wholesale (Wholesale
) )
months leading up to the start of the first
Thor Bidet Inc. offers a convenient, quality and second semesters and will expect sales
product, at a competitive price compared to increase during these months, as well as
to competitors. The price strategy offers the following months due to increased
the Thor Bidet to individuals on Amazon for awareness of the product. The Thor Bidet
$36.99 and to college institutions and retail will be sold online on Amazon, as well as in
stores, wholesale, for $25.89, which is select stores that sell international goods
significantly lower than the prices of similar around campuses with large populations of
products by competitors. Though two direct the target market. In addition, Thor Bidet
competitors, Blue Bidet and Biobidet both Inc. will sell the product wholesale to
offer travel bidets for $14.95, the Thor universities, who will then pass out to
Bidet can hold more water, has a more international students who customarily use
powerful stream, and is geared toward in- a bidet in the effort to make their transition
home usage. Therefore, it does not directly to the US easier. Through communication
compete with the travel bidets. In year with several university international
three, Thor Bidet Inc. plans to sell a student organizations, Thor Bidet Inc. is
portable bidet to compete in the travel confident select universities will buy Thor

31 | P a g e
Bidet Inc. products for incoming plans to advertise heavily on Facebook
international students. Once the company during the months of September and
gains market share and liquidity, Thor Bidet January, as students are thinking about
Inc. will grow its product line and expand what they need for school and/or going
sales and marketing efforts to more back to school during these months. All
universities and more retail stores. Thor social media will be managed by
Bidet Inc. believes that if it can capture $99Social, an online platform that creates
market share in the college segment, these digital advertising content and manages
students will go on to become loyal digital advertising, ensuring a uniform ad
customers the rest of their lives. strategy across several social media
platforms.
6.4 SALES TACTICS In regard to Facebook advertising, Exhibit C
Thor Bidet Inc. will hire two sales shows how Thor Bidet Inc. calculated the
representatives who will be responsible for conversion rate (the percentage of people
selling the product wholesale to select who buy the product after clicking on the
college institutions and retail stores. Thor advertisement). According to market
Bidet feels that if it can get college research, the cost per click is $0.36. As
institutions to buy the product for incoming Thor Bidet Inc.s primary market research
international students, then product shows, 75% of potential customers are
awareness will spread through word of interested in a high pressure semi-portable
mouth and individual online sales will bidet, 58% are dissatisfied with the current
consequently increase. The hired sales alternative, and 62% are willing to pay $31
representatives will also sell the product or more. With a discount factor of 20% in
wholesale to retail stores in proximity to the first two years and 70% in year three
the target college institutions. Thor Bidet onwards (due to increased brand
believes it is important to have a street awareness), Thor Bidet Inc. calculated the
presence in areas that are densely conversion rate of Facebook
populated with its target market. The sales advertisements for the Thor Bidet to be 5%
budget will include the salaries of the two in years one and two and 19% in year three
sales representatives, traveling costs, onwards. With slight changes to the
incentives, and overhead. formula, Thor Bidet Inc. calculated the
conversion rate for the Poseidon Bidet to be
6.5 ADVERTISING & PROMOTIONS 20% (Exhibit C).
Thor Bidet Inc. will use the online website,
Facebook, Instagram, Snapchat, YouTube, Thor Bidet Inc. is also going to launch a
retail stores, and guerilla marketing tactics YouTube video in year 1 in the months of
to build product awareness and March, April, and May 2017 after a PR
communicate the value proposition to its event at a university which is to be
target market. In regard to reach and cost, decided. This event will take place in March
Thor Bidet Inc. can post advertisements on and will coincide with the Hindu festival
Facebook, Instagram, and Snapchat directly called Holi, also known as the festival of
to its target market. According to Facebook colors. Though a religious holiday typically
Insights, Thor Bidet can reach 20,000 celebrated in India and Nepal, Holi is now
people in its northeast target market alone. celebrated all over the world by countless
For each person to see the post one time, peoples of different religions. It just so
the cost is $120. There are more than 213 happens that those who traditionally
million Facebook users1 in India alone, celebrate the holiday are in Thor Bidet
therefore justifying the use of Facebook Inc.s target market. Nevertheless, during
advertising (Statistica). Thor Bidet Inc. this festival, it is tradition to smear one

33 | P a g e
another with colorful paint. Thor Bidet Inc. of institutional sales, the sales
plans to sponsor this event and provide representative will create a promo code for
Thor Bidets to help clean the paint off of the specific university to pass out to their
people after the celebration. A video students, in which they will use to order the
advertisement will be made from the event, bidet on Amazon. In the case of wholesale
not only showing off the product, but also orders from retail stores, again, the sales
showing how different cultures can be representative will provide the specific
brought together in unity. This store with a promo code in which the store
advertisement will be displayed on the will use when it places the order on
online website, Facebook, Instagram, Amazon. Amazon will allow Thor Bidet Inc.
Snapchat and YouTube. As this PR to target a mass market of people all over
campaign has the potential to go viral, Thor the US, while the retail locations will allow
Bidet Inc. can reach countless people. Thor for a street presence in areas that are
Bidet Inc. will expand this campaign to highly populated with the target segments.
more colleges in the coming years. Furthermore, distribution through college
institutions will not only reach the target
market, but will also increase brand
6.6 PUBLICITY awareness in areas that are densely
Thor Bidet Inc.s Holi advertisement populated with the target market and can
campaign with the message of bringing help Thor Bidet Inc. gain new customers.
people together has the potential to offer
the company vast publicity, not only
through a viral video, but also on a smaller 7 DESIGN &
scale, for example around colleges, in
school and city newspapers, and brief DEVELOPMENT PLAN
segments on local news channels. Thor
Bidet Inc. will also place advertisements in
school newspapers in another attempt to 7.1 DEVELOPMENT STATUS &
meet its target market. Thor Bidet will TASKS
expand its Holi campaign to more Thor Bidet Inc. is currently in possession
universities each year. of its first proof of concept prototype for
the semi-portable Thor Bidet. The
6.7 WARRANTY & GUARANTEE prototype will be shared with the
POLICY manufacturing partners in China and
Thor Bidet Inc. offers a 30-day guarantee the design will be slightly modified with
for both products, in which customers can their input to make mass production
send the product back for a full refund most efficient, cost effective, and also
within 30 days if they are unsatisfied. Thor include a switch valve, where by the
Bidet also offers a 1-year warranty, which user will be able to use pressurized air
covers defected products or products that to dry themselves and thus taking out
break within the proper line of use. the need to use toilet paper to dry
oneself. The product will be ready to
6.8 DISTRIBUTION manufacture in June 2017.
Thor Bidet Inc. will be distributed through Products Thor
Amazon as well as through a select group Final Manufacturing Bidet
1 month
of specialty stores. However, Amazon will Design Process
fulfill all orders; both from individual
Testing Process for first 20 days
customers, as well as
institutional/wholesale orders. In the case batch of mass
produced products
35 | P a g e
 Ready to Mass June 17 benefit since the customer demand follows
Produce by a seasonal trend.

7.2 DIFFICULTIES & RISKS

The final pre-mass production 8 MANAGEMENT TEAM
development & testing process has
been given a time of two months as the 8.1 KEY PERSONNEL &
company is committed to deliver a
product in the market that is not riddled
RESPONSIBILITIES
The company will initially consist of the 5
with issues. Since the initial product line
founders sharing executive roles and three
has only one product, the risk is high as advisory board members, each contributing
the brands image is completely based on a specific major department in
on this one product and thus we have accordance with their expertise (Exhibit G).
focused towards making sure that the The internal roles to be filled include:
storage and order fulfillment. Also, Amazon
is an extremely popular e-commerce portal Chief Executive Officer: Muhammad
in the college student market. Khan

7.3 GEOGRAPHIC LOCATION Mr. Khan is an MBA professional and

Thor Bidet Inc.s planned geographic office Fulbright scholar who has founded
location will be in Syracuse, NY. This has Solenergi Pvt. Ltd. A solar street lighting
been chosen based on the proximity to 10 company, in Pakistan. Mr. Khan was part of
out of the 25 institutions that attract the Solenergi as Founder & Business Lead for
maximum number of international five years, having already worked in
students. Doing so will help Thor Bidet Inc. managerial and consulting positions for the
reach out easily and build a brand in a previous three years.
short span of time.
As CEO, Mr. Khan will be responsible for the
day-to-day management decisions and for
7.4 CAPACITY LEVELS & INVENTORY implementing the companys long and
MANAGEMENT short term plans, in accordance with the
The inventory levels are based on the sales executive management.
estimates. Thor Bidet Inc. plans to operate
using Complete Order Point Model:

Order point = Demand during lead time +

Safety Stock
Chief Financial Officer: Mangirish
The essence of this approach is when an Rayadhyaksha
item falls to a certain stock level or
quantity, an order is released to replenish Mr. Rayadhyaksha is an MBA professional
inventory on the expected stock-out date. with 4+ years of experience in Investment
This model has been adopted since Banking and Equity Research and an
customer demand and replenishment lead exceptional record of delivering cost
times are likely to show random variation. effective, high performance financial
Also, this is advantageous as this model solutions to meet challenging business
will save costs and help Thor Bidet to demands.

37 | P a g e
As CFO, Mr. Rayadhyaksha will be Mr. Piroli is an MBA professional with
responsible for the Financial and expertise in business and marketing. Mr.
managerial accounting, as well as budget Pirolis experience includes managing
sections of the company. several projects and tournaments, including
Lacrosse camps, both in terms of
Chief Operational Officer: Egzon Halili operations and marketing.

Mr. Halili is an MBA professional who has As CMO, Mr. Piroli will be responsible for
founded Inovalty, a home textile advertisement, marketing plan, and sales
manufacturing company in Kosovo. Mr. of the product.
Halili has been part of Inovalty as Managing
Partner for over 4 years, as part of a 6+ Sales Representatives: Two full-time
years professional career in business employees during Year 1 and Year 2, four
development, consulting and operations. full-time employees in Year 3

As COO, Mr. Halili will be responsible for the Mr. Piroli will also be supervising the two
administration, human resources, sales representatives that are responsible
operations and legal divisions of the for completing deals with target institutions
company. and helping market the brand and its Thor
Bidet product initially. Once the second
Chief Innovation Officer: Kartik Kakria product, the Poseidon Bidet is launched, Mr.
Piroli will be supervising the additional two
Mr. Kakria is an MBA professional with sales representatives that the company
academic excellence in Technology plans to hire.
Electronics and Communication. He is also
a Research Consultant at EXPORTNY
8.2 MANAGEMENT SALARIES &
program and does intensive market
research for finding attractive international OWNERSHIP
attractive markets, helping to prioritize Each of the five founders have agreed to
efforts to penetrate each market and tackle begin with a 20% ownership of the
the legal, cultural, logistical and regulatory company. However, as equity is given in
issues. return for investments or other occasions
as agreed by the majority of the founders,
As CIO, Mr. Kakria will be responsible for the ownership percentage will shrink
the research and product development equally for each of the founders, in
departments of the company. accordance with the amount of equity
Simultaneously, he is connected with given.
supply chain professionals, such as Burak
Kazaz and Patrick Penfield, who have years Modest annual compensation of $40,000
of supply chain experience and have done will be established for all employees of the
valuable research, including writing popular company, including the key executives and
supply chain papers. sales representatives, until the point where
the company has broken even and is
sustainably profitable, at which point there
will be a re-evaluation of the salaries and
bonuses toward an increase as well as
having the dividends paid at the end of the
year after breaking even. There shall be a
Chief Marketing Officer: Nicholas Piroli
partnership agreement that will establish
the compensation, percentage increase of

39 | P a g e
salaries, and dividends percentage In addition to the three advisory board
including stock options if it is decided for members, the team will also be
the company to go public in the future. establishing a professional relationship with
a legal advisor, who will be giving guidance
with regards to the legal issues, trademark,
8.3 BOARD OF ADVISORS copyright, and other Terms of Service and
The founders have selected a diverse and contracts that the company will be
established group composing of experts in needing.
what they have identifies as the major
fields to bring the concept and company
forward. 9 OVERALL SCHEDULE
Business Advisor: Ken Walsleben
9.1 SCHEDULE SUMMARY
Mr. Walsleben boasts 30+ years in Thor Bidet Inc.s Overall Schedule details
managerial and executive positions, mostly the first two years of design, development,
in the business world. Lately, Mr. Walsleben marketing, and operations, while showing a
has been working as a professor of brief growth schedule in years 3-5. As seen
Entrepreneurial Practice, making him a in the Overall Schedule table below, Thor
perfect addition that will help guide the Bidet Inc. will incorporate in May 2017 as a
team on how to approach the launch of the C Corp and will begin leasing office and
product as well as developing the business warehouse space. Furthermore, two sales
side of the company towards reaching long representatives will be hired in the month
and short term sales goals. of May. Thor Bidet Inc. will start the design,
development, and testing process in May
Operations Advisor: Raza Khan and finish this process by June 30th. At that
point, the final version of the Thor Bidet will
Mr. Khan has been working in managerial be created and the first order will be placed
and executive operations positions for over with the manufacturer in July. By August,
16 years, most recently serving as Chief Thor Bidet Inc.s website will be completed
Operating Officer of Taavun Ltd in Pakistan. and Thor Bidet will be available for sale on
Mr. Khan will be using his experience and Amazon and in select retail stores. As Thor
expertise in the operational side of the Bidet Inc. will receive the first order from
business to guide the team towards the manufacturer in the end of July, the
reaching operational and supply chain official operation of the business will
efficiency. commence and the marketing initiative will
be launched August 1st. By September,
Product Development Advisor: Harini Thor Bidet Inc. will ramp up marketing
Tatnis efforts, while the sales representatives will
contact and meet with international
Ms. Tatnis is a certified Scrum Master and student organizations at universities all
certified Scrum Product Owner with across the north east in efforts to promote
substantial experience in leading offshore and sell the Thor Bidet. From September
and onshore development teams, including through December, Thor Bidet Inc. will
quality assurance lead expertise. Ms. Tatnis continue its sales through individual
will be advising the team on product purchases on Amazon, select university
development goals, strategies, and helping organizations, and select retail stores.
with the planned outsourcing of the product Additionally, Thor Bidet Inc. will continue
manufacturing to China. with the marketing strategy, and
send/receive/analyze customer feedback.

41 | P a g e
Thor Bidet Inc. will break even in January Seek $200,000 investment
2018. Further in 2018, Thor Bidet Inc. will Hire corporate marketing
begin expanding to more retail locations agency to provide uniform
and more university organizations. Thor advertising content across
Bidet Inc. will ramp up marketing in the platforms (Happa Studios)
months of September and January, the Hire social media creative
months in which its target market goes agency to manage social
back to college. Thor Bidet Inc. will begin media platforms ($99
its Holi Campaign in March 2018, with plans Social)
to increase the campaign each March to
June Design, develop, and
follow.
testing of product is
completed
From 2019-2012, Thor Bidet Inc. will
Website is finished
continue strong sales and marketing on the
east coast, while exploring growth Sales representatives
opportunities both through retail stores and meet with university
through expansion across the entire US. In institutions and select
year three, Thor Bidet Inc. will launch the retail stores
Poseidon Bidet and hire two more sales July Place first Thor Bidet order
representatives in an effort to expand retail with manufacturer (orders
and institutional sales. In 2020 and 2021, continue on a monthly
Thor Bidet Inc. will continue researching basis)
and developing new, related products and Start official operation of
continue with the sales and marketing business
strategy. Finally, in year 2021, Thor Bidet Enter select retail stores
Inc. will complete the development plans Begin POS marketing
for new products and explore expansion strategy (retail stores)
opportunities into Europe. August Begin Facebook
advertising
Year 1: 2017 Begin individual-online,
May Incorporation of the retail, and university sales
venture as C Corp in Intense marketing geared
Delaware toward international
Begin office and students going back to
warehouse lease school
Create first prototype of Septemb Continue individual-online,
the Thor Bidet er retail, and university sales
Initial plans sent to Ramp up marketing efforts
manufacturer for design of (Facebook Ads)
product Create feedback forms to
Hire website designer send customers
Hire 2 sales October Continue individual-online,
representatives retail, and university sales
Develop overall marketing Continue marketing
strategy strategy
Develop distribution Begin to analyze customer
strategy (Amazon) feedback forms
Provide founders Novemb Respond based on
investment of $100,000 er

43 | P a g e
 customer feedback forms order with manufacturer
Continue individual-online, Launch the Poseidon Bidet
retail, and university sales Begin expansion to entire US
Continue marketing for Thor and Poseidon
strategy Enter more retail stores
Decemb Continue individual-online, Launch Holi campaign
er retail, and university (increase from previous
Continue marketing year)
strategy Continue expansion into
retail stores
Continue R&D
Year 4- Continue sales throughout
Year 2: 2018 2020 US
Q1 Breakeven in January 2018 Enter more retail stores
Continue individual-online, Launch Holi Campaign in
retail, and university sales March
Ramp up Facebook advertising Expand team as needed
in January Continue R&D
Launch Holi campaign in March Year 5- Continue sales throughout
Extend marketing strategy to hit 2021 US
all with target religious customs Enter more retail stores
Explore expansion into more Launch Holi Campaign in
retail stores March
Complete development
Q2 Expand college/religious market
plans for new products
to entire east coast
Explore expansion
Enhance online marketing
opportunity into Europe
strategy through targeted
display advertisements
Prepare operations for peak
season
Q3 Ramp up Facebook advertising 10 CRITICAL RISKS &
in September ASSUMPTIONS
Continue sales and collect
customer feedback
10.1 ASSUMPTIONS
Q4 Continue sales in university and To compute forecast revenues, the
online channels company will be taking the total number of
Continue marketing strategy international students expected to come to
US for studies next year - 37% of which,
Years 3-5: 2019-2021 according to market research, have been
Year 3- identified as potential target market.
Continue strong sales on
2019 However, in order to have more effective
east coast for Thor
and cost-efficient initial marketing, the
Hire 2 more sales company will be targeting only the top 25
representatives universities during the first two years. Out
Patent the Poseidon Bidet of the narrowed market, surveys showed
Place first Poseidon Bidet that only 62% of the target market are

45 | P a g e
willing to purchase the product at $37. The 10.2 RISKS
company will also be assuming that during Demand Risk:
the first year of operations, only half of that
market will be reachable. By the third year, Thor Bidet Inc. recognizes potential risks in
the company expects to increase its the market. Specifically, there is a risk that
revenues through the launch of another demand will not be as high as expected;
product, the Poseidon Bidet, which will therefore, sales will be lower than
cater to the needs of international students projected. As the Thor Bidet Inc. is
and professionals. It will bear aesthetic targeting international students, if this
features and will be geared toward portable population decreases in the near future,
usage. the company may miss its sales
projections. Furthermore, if Thor Bidet Inc.s
Due to a limited budget and the fact that marketing strategy fails to reach the target
the company will strictly be serving as a market, sales may be lower than expected.
connecting party between the outsourced Finally, the possibility of less sales poses
production and outsourced distribution, the inherent risk of running out of cash.
Thor Bidet Inc. assumes that the team will
remain small for the first few years. In Thor Bidet Inc. will mitigate these risks in
addition to the three external advisors, five several ways. First, through market
of the founders will also be working full research, Thor Bidet Inc. has ensured that
time in respective departments, as well as there is a need for this product among
two sales representatives in years one and international college students, specifically.
two, with the addition of two more in year In fact, not only does this market currently
three. exist, it is also estimated to grow at 9% in
the coming years. In addition, Thor Bidet
The cost of the unit has been projected by Inc.s marketing strategy will reach the
taking into consideration the material parts majority of the target market, while its
used to complete the product and the costs pricing strategy offers the quality product
of outsourced manufacturing in India. In at an affordable price, particularly to the
average, the cost is expected to be at target demographic, compared to the price
$8.56 for the Thor Bidet and $6.46 for the of similar products sold by industry
portable bidet that is planned to go on sale competitors. Finally, Thor Bidet Inc. will
in the companys third year of operation. keep costs low by bootstrapping and using
Inventory holding and distribution will be low-cost materials in manufacturing to
outsourced to Amazon and the costs have produce a quality product, raise more
been projected to $2.41 per unit. Product capital if needed, and execute an
margins are expected to be $28.43 (77.0%) aggressive marketing strategy.
and $11.53 (64%) for the Thor Bidet and
the Poseidon Bidet, respectively. Operational Risk:

No capital expenditures are expected, and Thor Bidet Inc. projects its design and
rent is expected to be at about $4,500 a manufacturing costs to be $8.56 for the
month, due to the projections that most Thor Bidet and $6.46 for the Poseidon
sales will be done online or through Bidet. However, there is a risk that these
institutions, thus having no need to have a costs will be greater than expected. In
central location. Though Thor Bidet Inc. addition, since Thor Bidet Inc. is
will not patent the Thor Bidet, the company outsourcing its manufacturing to China,
will apply for a design and utility patent for there is a risk that the product is not up to
the Poseidon Bidet in year 2. standard quality, due to lack of oversight,

47 | P a g e
which could severely tarnish the brands The company needs an investment of
image. Further, since production will take $200,000 apart from the owners
place in China, there is a risk of late investment of $100,000 in the first year.
shipments of the product. The company has a negative cash from
operations ($17,598) in the first year. The
To mitigate these risks, Thor Bidet Inc.s burn rate of the company is 136 months.
CIO will oversee production in China, However, the cash flow of operations starts
ensuring costs are kept low and product getting positive from Q2 of year 1 (Exhibit
quality is up to par. Thor Bidet Inc. will also I). The companys current ratio and quick
keep safety stock of inventory in case a ratio stands above the industry median
problem arises in manufacturing or suggesting that the company will be able to
shipment, causing shipments to be manage the short-term liabilities. The
delayed. The first order placed with the inventory ratio is on the higher side, which
manufacturer will contain excess bidets to suggests that the company will be able to
diminish this risk. sell the inventory in fewer number of days.
The profit margin of the company is
Lack of Patent Risk: between 18.88% and 30.94% from year 2
onwards. The return on equity has an
As Thor Bidet Inc. does not currently have a exponential increase from 115.78% in year
patent, competitors can easily imitate the 2 to 749.67% in year 5.
product itself. This is a critical risk that Thor
Bidet Inc. will mitigate in the following 11.2 BREAKEVEN
ways: By offering a quality product and an During the initial phase, the founders
easy, convenient buying experience that money will be invested and used to
helps to retain customers; By quickly bootstrap and start the business. The
building brand awareness through an company will breakeven at 28,843 units in
aggressive marketing strategy; By pricing 9 months (Exhibit E). The total market
the product lower than competitors; By potential for the Thor Bidet is 1.3 million
producing new, innovative products based buyers, while the total market potential for
on market needs. the Poseidon Bidet is 4.6 million buyers in
their respective launch years. The company
has calculated a sales potential target for
the Thor Bidet of 2% in the first year that
builds to 9.6% by the fifth year. Since the
11 FINANCIAL PLAN Poseidon Bidet has a larger market
potential, the company has created a
conservative estimate of first year sales
11.1 HIGHLIGHTS potential of 1.5% and plans to achieve
Thor Bidet Inc.s financial plan offers a 2.73% by the end of the third year of sales.
great business value for investors. The
companys revenue will start in August
2017 through the sales of the Thor Bidet 11.3 COST CONTROLS
(Exhibit H). During the first year of Thor Bidet Inc.s CEO and CFO will be
operations, the company would have net responsible to run the cost controls and to
loss of $6,307.48 dollars. The companys manage the expenses of the company. If
second product, the Poseidon Bidet will be needed, the marketing team will help for
introduced in the first quarter of the third the sales projections and the expansion
year. plan. Initially monthly reports will be
generated to track the progress of the
company. It will be the responsibility of all

49 | P a g e
the founders to identify and mitigate risks made available during the starting months
when needed. of the business to achieve optimal growth
and manage sales. The company will
buyout the investors for $1,000,000, or 5x
11.4 KEY FINANCIAL ASSUMPTIONS their initial investment, at the end of year
The company has accounted for sales five. The preferred exit strategy would be
return and allowance which is assumed to through acquisition from a major player of
be 3% of the revenues. Also, the company sanitary toilet products. In the case of a
has kept a 15% operational expense buffer potential acquisition, Thor Bidet Inc. will
that will help mitigate the risks of extra ensure a good fit, which benefits both
expense if required. Thor Bidet Inc.s major parties.
expenses will be purchases, marketing, and
research and development. Apart from
these, a major expense would be startup
costs which would be incurred in the first
year. The company will breakeven in 9
months. The net income after taxes will
become positive in the second quarter of
year 2. One benefit that investors will find
attractive is that the company is debt free
and most of the assets are liquid. Works Cited:
1-
For now, to keep the financial statements https://www.statista.com/statistics/268136/
simple, the company has assumed that it top-15-countries-based-on-number-of-
will pay the manufacturer and get paid by facebook-users/
retail stores and Amazon in the same
month. Thor Bidet Inc. has seasonal cash
flow sensitivity with respect to sales in the 2-
first and fourth quarters of the financial https://www.salesforcemarketingcloud.com/
year. The company plans to keep the wp-content/uploads/2013/06/The-Facebook-
salaries of the employees constant until its Ads-Benchmark-Report.pdf
financial goals are met. 3 - http://www.pewresearch.org/fact-
tank/2016/01/06/a-new-estimate-of-the-
11.5 COMPANY OFFERING u-s-muslim-population/ft_16-01-
Thor Bidet Inc. is seeking an investment of 05_numbermuslims/
$200,000 from investors in return for 14%
equity. The investor will also get voting 4 https://www.iie.org/Research-and-
rights and seat on the board. The NPV of Insights/Open-Doors/Data/International-
the company is $1,474,829.59 using DCF Students/Leading-Institutions/2015-16
valuation technique (Exhibit K). The
company also considered risk adjustment,
5
market risk premium and long term growth
rate resulting to a discount rate of 40.80%. https://www.census.gov/econ/isp/sampl
After analyzing the financial needs, the er.php?
company plans to use the money from naicscode=322291&naicslevel=6
angel investors for marketing, initial
purchase orders and R&D over a term of
five years. The company has used cash
safety cushion in terms of 15% operating
buffer. The investment is expected to be

51 | P a g e
53 | P a g e
 Exhibit A: Market Research

Q. How satisfied do you feel with your current method of cleaning? Q. Would you be interested in a high pressure water bidet that
provides effective cleaning without the use of hands?

Q. How much are you willing to shell out for a pressure based water Q. What do you think will matter when using bidet? (Choose one or
bidet (inclusive of 1yr warranty)? more)

Exhibit B: Market Size

Macro Market size Market Size (Thor)
 Exhibit C: Conversion Rate

Thor Conversion Rates Poseidon Conversion Rates

 Based on SalesForceSocial.com: The Facebook Ads Benchmark Report 2

Exhibit D: Marketing Budget

Marketing Budgets:
Exhibit E: Economic Model
 Exhibit E (Continued)

Contribution Margin:
Breakeven:

Exhibit F: Operations Plan

Exhibit G: Management Team
Exhibit H: Income Statement

Income Statement Year 1

Income Statements Years 2 & 3
Income Statements Years 4 & 5
 Exhibit I: Cash Flow Statement

Cash Flow Year 1

Cash Flow Years 2 & 3
Cash Flow Years 4 & 5
 Exhibit J: Balance Sheets

Balance Sheet Year 1

Balance Sheet Years 2 & 3
Balance Sheet Years 4 & 5
Exhibit K: Valuation