Course Title: Marketing Management

Course Code: MKT601

21-Mar-2011

GLOBAL
ACCESS A MARKETING PLAN FOR AN ISP
LIMITED

Submitted To

Prof. Dr. Serajul Hoque

Course Instructor: MKT 601
Department of Business Administration
Stamford University Bangladesh
A Marketing Plan for ISP: A study on Global Access Limited

Submitted To

Prof. Dr. Serajul Hoque

Course Instructor: MKT 601
Department of Business Administration
Stamford University Bangladesh

Submitted By

Marzia Parvin
ID: 04312145

Date of Submission: 21st March, 2011

STAMFORD UNIVERSITY BANGLADESH
 Acknowledgement

A
ll praise is due to Almighty. I am the student of MBA program; express my deep
gratitude to our course teacher Prof. Dr. Serajul Hoque, Course Instructor (MKT601),
Department of Master of Business Administration (MBA), Stamford University
Bangladesh. I am very grateful to him, especially for choosing the assignment topic “A
Marketing Plan for IT Firm”. He delivered us all the necessary and important direction about
this assignment. His inspiration and friendly cooperation helped us to complete this assignment
in time. I do believe this study will be very much helpful for our near future.

Marzia Parvin

ID: 04312145
 Table of Content

Page No.
Executive Summary ………………………………………………………………..

1.0 Company Summary ……………………………………………………………

Organizational Hierarchy …………………………………………………

Mission ………………………………………………………………………

2.0 Situation Analysis ………………………………………………………………...

2.1 Market Segmentation …………………………………………………..

2.2 Service Business Analysis ………………………………………………

2.2.1 Competition and Buying Patterns …………………………..

2.2.2 Main Competitors ………………………………………….

Brac Net …………………………………………………..

Agni ………………………………………………………….

Baximco Online ……………………………………………….

Link3 ……………………………………………

2.2.3 Risks …………………………………………………………..

Regulations ………………………………………….

Monopolistic Pricing …………………………………..

Legal Matters ……………………………………………

Technology …………………………………………..

2.2.4 Business Participants ………………………………….

3.0 Services …………………….……………………………………………………

 Data Communication & Internet Services ………………………………..

BWLL Network Deployment at Dhaka, Chittagong, Sylhet and

Narayonganj ………………………………………………………..

Benefits of GAL’s Network ………………………………………..

Features of GAL Network ………………………………………....

GAL offers the following Communication Services ……………...

GAL’s technical and management strengths encompass ….…….

Experience of GAL in setup of Wide Area Network …………….
Support facility, which will be provided as part of
the contract ……………………………………….…………………
Level of Support …………………..

4.0 Products …………………………………………………………………………

Motorolla Canopy ………………………………………………………….

Linksys Router ……………………………………………………………..

DASAN DSL Modem ………………………………………………………

Network Cables …………………………………………………………….

BELDEN STP Cable ………………………………………………..

Shunsheng STP Cable ………………………………………………

Shunsheng UTP Cable ………………………………………………

DCODE Tele Cable …………………………………………………

5.0 Strategy and Implementation Summary ……………………………….

5.1 Competitive Edge ………………………………………………….

5.2 Marketing Strategy …………………………………………………

5.2.1 Marketing Program ……………………………………….

5.3 Sales Forecast ……………………………………………………..

5.4 Strategic Alliances ……………………………………………….

6.0 Financial Plan …………………………………………………………….

6.1 Important Assumption …………………………………………….

6.2 Break-even Analysis ………………………………………………….

Appendix
 Executive Summary

G lobal Access Ltd. is an Internet Service Provider (ISP) based in Grameen Bank Bhaban,
(14th Floor), Mirpur-2, Dhaka. The company offers the following services to its
customers:

 Shared and dedicated Internet access (up to 256 Kbps).

 High bandwidth Internet access (2 GB).
o Integrated Services Digital Network (ISDN).
o Digital Subscriber Line (DSL).
o Wireless.
 Website and virtual domain hosting.
 Server co-location.
 Network design, installation, and administration services.
 Web design (currently outsourced).

Global Access Ltd. is a company driven to provide customers with a complete solution to their
entire current and future Internet and private network needs. The company's customer base
includes all consumers and all small- to medium-sized businesses, including start-ups.
Web Solutions benefits from several strategic alliances by receiving very competitive pricing on
most services, allowing the company to offer competitive pricing on its services to customers.
ISPs offer a way for people to enter the Internet. According to ISP association, an information
technology research and consulting firm located in Dhaka, the consumer ISP market is
expanding day-by-day.
Competitive threats come from other ISPs located in or around Dhaka, including the following
companies: [Link], Agni, Baximco Online and Link3. Most competitors offer solutions for
Windows, and perhaps Macintosh, but ignore all other operating systems. With the rise of Linux
and other alternative operating systems, there is potential for Web Solutions to surpass its
competitors.
Global Access Ltd. has a world-class management team with direct knowledge of the industry,
extensive research experience, and unique administration skills. Its team includes Mr. Jillhurain
Jaigirdar, Khondaker Moin Uddin Ahmed, Shubhashish Hossain, Abu Syeed Chowdhury.
Projected revenues for 2000 through 2010 substantial steady growth. The company is seeking a
major investment to fund four areas of growth in the company:

1. Increase marketing to assure future customers are aware of our offerings and aggressive
pricing.
2. Expand our base of operations (using wholesale providers, partnerships, and other
mechanisms
 3. Perform research and development to bring new products to market.
4. Total Wimax solution for all through Bangladesh.

1.0 Company Summary

G lobal Access Ltd. is a A-class company, incorporated in the Bangladesh in July, 2000.
The company's principal offices are currently located in Mirpur-2, Dhaka. All
operations, from administration to product development, take place at this leased office
location. The company plans to move to a bigger facility as it expands.

Organizational Chart:

Managing
Director

Deputy Managing Director

GM GM
Technical Marketing

System Manager Manager

Manager Accounts & HR
Admin Communication Hardware

Senior Engineer Senior Engineer Executive Executive Executive

Senior EngineerSenior
Radio Engineer System Assistant Manager Executive Executive Executive Billing
Fiber Support Collection Accounts HR

Cable Junior Junior Junior Senior Driver Receptionis Pion

Bill Collector Bill Collector
Man Engineer Engineer Engineer Manager (3) t (2)

Internee Internee Executive Executive

Figure - 1: Hierarchy of Global Access Ltd.

Mission:
The mission of Global Access Ltd. is to provide customers with a complete solution to all their
current and future Internet and private network needs.
Global Access Ltd. has established a reputation for quality work and plans to continue to
enhance its image in the industry. The company seeks to become a well-known and respected
provider of advanced network solutions by:

 Increasing service offerings.

 Increasing availability and accessibility to current and future customers.
 Creating innovative, unique, and cost-effective solutions to problems currently faced by
customers.

Figure - 2: Office Space at Grameen Bank Bhaban.

 2.0 Situation Analysis

T he topics which follow discuss our customers, our competitors, and conditions within our
industry. The Market Analysis data found in the following table and chart is taken from
the 1997 U.S. Census.

2.1 Market Segmentation

The company's customer base includes all consumers and all small- to medium-sized businesses,
including start-ups. The company plans to concentrate on SOHO clients, as these are perfect
targets for our new high-speed offerings, and hold the greatest growth potential for the company.
GAL feels that these market segments have special pricing and service needs, and make more
dedicated, reliable customers.

Market Analysis

2000 2001 2002 2003 2004

Potential Customers Growth CAGR

Household Consumers 10% 101,041,000 111,044,059 122,037,421 134,119,126 147,396,919 9.90%

Small Office/Home Office 3% 16,963,070 17,404,110 17,856,617 18,320,889 18,797,232 2.60%

Total 8.94% 118,004,070 128,448,169 139,894,038 152,440,015 166,194,151 8.94%

2.2 Service Business Analysis
The following sub-topics look at the size and concentration of businesses in this group, the way
services are bought and sold, and specific competitors.
2.2.1 Competition and Buying Patterns
Global Access Limited believes that its customers choose its products and services based on the
following criteria:

 Price.
 Experience.
 Reputation.
 Service.
 Accessibility.

2.2.2 Main Competitors

Competitive threats come from other ISPs, including the following companies: BracNet, Agni,
Baximco Online, and Link3. Most of our competitors offer solutions for Windows, and perhaps
Mac, but ignore all other operating systems. With the rise of Linux and other alternative
operating systems, there is potential for Global Access Limited to surpass its competitors.
Key competitors are detailed as follows:
BracNet

BracNet offers a wide variety of services to match customer needs. They have split information
into two categories:

1. Basic service: for customers looking for

a simple, inexpensive way to connect their
home or business to the Internet.
2. Complete details: for customers who
need a custom solution for unique
requirements, BracNet offers the following
services:
o Connectivity:
 ADSL & SDSL.
 Modem service.
 ISDN.
 Nationwide access.
o Special Services:
 Functionalities.
 FTP services.
 Hardware sales.
 Leased lines.
  Telnet-only service.
 Web hosting.

Agni

Agni is a largest ISP. Agni specializes in modem dial-up, ISDN, dedicated local area network
(LAN) access and T1 (a high-speed network link that transmits data at 1.5 Mbps) to the Internet.
For dialup connections, Agni uses an all-digital modem pool consisting of equipment from US
Robotics, Ascend, and Livingston. All of their locations maintain a full 56k modem pool,
upgraded to the latest version of the v.90 standard. These digital modems allow for a more
reliable connection, and enable them to make ISDN connections on the same equipment, so they
can offer 64k ISDN service with all dialup accounts. To make sure that customers can get to their
services, Agni maintains a no-busy-signal policy.
If customers report a busy signal, Agni has the ability to connect as many telephone lines as
necessary to relieve the problem. Currently, none of their locations are having any problems with
busy signals. Agni maintains multiple separate T3 (a high-speed network link that transmits data
at 45 Mpbs) connections to the Internet backbone through multiple backbone providers. These
separate connections give Agni more than enough bandwidth to handle future growth as well as
provide the security of uninterrupted service.
Baximco Online

Baximco Online helps its members have an enjoyable and productive Internet experience by
providing reliable, unlimited Internet access and Web hosting services, outstanding technical
support, useful information, and innovative services. Prices are among the lowest in the industry.
Baximco Online offers the following services:

 Internet access.
 High-speed access.
 Web hosting.
 Baximco Online Sprint bundle.

Link3

Link3 delivers complete Business Internet Solutions for any small business backed with its
award winning service and support. Its business plans--whether Web Hosting, e-commerce, high
speed dedicated access, or Web Design--are packaged to fit customer needs today and are
tailored to grow along with business for tomorrow. Link3 offers the following business solutions:

 Web hosting.
 Business access.
 E-commerce.
 Domain reservation.
 Dedicated access.
 Link3 dialup access.
 SDSL Waiting Lis.
 Promotional solutions.
 Help desk.

2.2.3 Risks
The company recognizes that it is subject to both market and industry risks. The company's view
of its risks, as well as how each is being addressed, is as follows:

 Regulations. Possible problems caused by a sudden increase in regulation by local, State

authorities. One way the company can reduce this risk is to diversify into several different,
but related, business areas. If one area becomes too heavily regulated it may be sold and the
profit rolled back into the
company to bolster the
remaining business or start a
new venture.
 Monopolistic pricing.
Aggressive or monopolistic
pricing by large or heavily-
funded providers. By holding
prices down, it becomes
difficult for competitors to
"low-ball" the company. By
diversifying, we can protect
business in one area by
bundling it with offerings from
another area, meeting the needs
of the customers and
strengthening their ties to the
company.
 Legal matters. Lawsuits
stemming from user abuse or
accessibility of pornographic or
questionable materials. The
courts have historically
classified ISP's as "carriers"
unless the ISP made an
incomplete effort to actively
filter material posted by or made available to its users. The company's usage policy clearly
states that illegal behavior will result in termination of service, but we do not otherwise
attempt to control the access of its users or their content, thus maintaining the company's
stance as a "carrier" in the eyes of the law. If the legal environment should change, the
company will modify its policies and procedures to conform to the prevailing legal
environment.
 Technology. Sudden and unexpected shifts in technology or the popularity of the
Internet. The company will maintain an active research and development effort, as well as
ongoing review of forthcoming technologies from competitors and vendors, in order to stay
near the top of the technological curve. Also, the diversification of the company's business
allows it to respond to shifts in revenue by redistributing material and personnel into those
efforts most likely to generate the highest return on investment.

2.2.4 Business Participants

The company is competing in the low-cost Internet access and website hosting niche of the
industry. The industry is moving in the direction of a fusion of VVD services over a single
common media (ref. The AOL-Time/Warner merger). This is where all media players must
move in order to compete in the coming decade.
The alternative is to be a content provider. This is a less desirable position as it leaves the
company too much at the whim of the public and forces the company to renew its efforts
continuously to provide usable content.
The ISP industry has begun the process of
specialization. Many companies who began by
filling all needs (as we do today) have moved
into areas which utilize their strengths. These
specializations include:

1. Functionalities ("Server Hotel")

facilities.
2. Web hosting.
3. Content provision.

Additionally, there are a few new markets

emerging, such as Applications Service
Providers.

 A taxing issue One nettlesome issue

that could potentially slow the growth of
e-commerce is the taxation of goods and
services. Currently, fees paid to ISPs are
tax-free. Purchases, however, are subject
to the same taxes that apply to goods sold
in a store or catalog. When online purchases are made, purchasers are technically
responsible for remitting state and local taxes. The only exception occurs when a consumer
buys from a corporation with a physical presence in that consumer's home state.
 ISPs face challenges The rise in Internet users has proven to be a boon for Internet
service providers, which charge monthly subscription fees in return for providing access.
While business has been good for many of these ISPs, a number of challenges threaten the
long-term growth and profitability of these companies.
The following is a list of services which various websites provide:

1. Destinations. Destinations are places, or websites, located on the Internet where people
can go for information, entertainment, or commerce.
2. Content providers. This type of website offers mostly original content (like news
articles) to subscribers. Some of the major content providers include ESPN Sports Zone (a
joint venture between Infoseek Corp. and Walt Disney Co.), SportsLine USA Inc., privately
held The Motley Fool Inc., and MSNBC (a joint venture between Microsoft and NBC).
With new websites being established every day, it's difficult to come up with a reasonable
estimate for the size of this market.
3. Portals. These websites tend to gather content into one place rather than creating it
themselves. Some of the major portals include Yahoo! Inc. (1998 sales of $206 million),
Infoseek Corporation ($63 million in fiscal year 1998), and Lycos Inc. ($56 million in fiscal
year 1998). Although e-commerce has started to become a larger promotion of these
companies' business, portals typically rely on the sale of advertising space to generate
revenue.
According to Jupiter Communications, a market research firm based in New York City,
advertisers spent approximately $2 billion for online ads in 1998. Jupiter believes that this
number will hit $9 billion in 2002.
4. Communities. Communities are similar to portals, in that their primary revenue streams
come from advertisers. Some of the major community sites include Geocities (1998 sales of
$18.4 million), now a part of Yahoo! [Link] Inc. ($8.3 million), and [Link] Inc.
($5.5 million).
5. Business-to-consumer e-commerce. Estimates for the amount of online spending by
consumers in 1998 range from $7 billion to $13 billion, with at least 25% occurring during
the Christmas shopping season. Forrester Research, an information technology research firm
in Cambridge, Massachusetts, believes that online retail spending will hit $108 billion in
2003.
Some of the major publicly traded online retailers included [Link] Inc. (1998 sales of
$610 million), CDnow Inc. ($98 million), barnesandnoble. com Inc. ($62 million), and
[Link] corp. ($37 million). A variety of "real-world" companies including Gap Inc.,
Lands' End Inc., and Macy's have established retail operations on the Internet.
6. Business-to-business e-commerce. Although there are very few pure business-to-
business e-commerce firms, this segment dwarfs the business-to-consumer sector. Forrester
believes that this market, which totaled $43 billion in 1998, should rise to $1.3 trillion by
2003.
Most companies in this category, like Cisco Systems and Dell Computer Corporation, have
other sales channels, but are increasingly using the Internet to lower costs and reach a wider
customer base. Dell generates an estimated $30 million in sales every day via the Internet,
while Cisco estimates that it produces approximately $33 million a day in sales through the
Internet.
7. Auctions. The online market for auctions is headed by eBay Inc., (1998 revenues of
$86.1 million, with $745 million of gross merchandise sales).
 3.0 Services

lobal Access Ltd. is now giving following Services:

Data communication & Internet Based Services:

 BWLL Network Deployment at Dhaka, Chittagong, Sylhet and Narayagonj.
 Benefits of GAL's Network.
 Features of GAL Network.
 GAL offers the following communication services.
 GAL's technical and management strengths encompass.
 Experience of GAL in setup of
Wide Area Network.
 Support facility, which will be
provided as part of the contract.
 Level of Support.

BWLL Network Deployment at

Dhaka, Chittagong, Sylhet and
Narayagonj
Global Access Ltd. (GAL) has rolled out an
IP backbone based network to provide
high-speed Internet traffic and IP based
applications and data communication
infrastructure.

GAL has deployed three base stations located at Grameen Bank Bhaban (Mirpur), the Landmark
Building (Gulshan-2) and Sena Kalyan Bhaban (Motijheel C/A). These sites each have a base
station capable of handling aggregate bandwidth of 18 MBps. They are linked to each other
using Ethernet bridges with 10 MBps wireless pipes.
GAL has also using Fiber Optic Link facility of Bangladesh Railway for connecting Chittagong
and Sylhet Base Stations.

GAL plans to deploy additional base stations to enhance its network coverage. This will provide
customers with the option of enhancing their connectivity to encompass other locations within
the country.

GAL's Network Operations Center (NOC) is based at the Mirpur site. The site provides 24 x 7
network monitoring through its Network Management Service (NMS). GAL uses Remote
Authentication Dial In User Service (RADIUS) and Simple Network Management Protocols
(SNMP) to monitor and administer the network.

The NOC also has a satellite gateway, which provides connectivity to the Internet backbone.

Benefits of GAL's Network

The network provides high-speed Internet access and data communications infrastructure for its
subscribers. This includes services such as electronic mail, File Transfer Protocol (FTP) sites for
downloads of files and applications, etc.

The high quality service is monitored on 24 x 7 x 365 basis. Hardware redundancy ensures
reliable service.

Various security features are built into the system.

Features of GAL Network

 Authentication (by Access Units (AU) in the base stations)

 IP address filtering (by Subscriber Unit (SU), both directions)
 Ethernet broadcast filtering (by SU, except ARP (Address Resolution Protocol) frames,
Ethernet To air)
 Non-relaying
 IEEE 802.11 broadcasts (by AU, air to air)
 IEEE 802.11 unicasts (by AU, air to air)
 VLAN (Virtual Local Area Network) support (by SU)
 Proprietary hopping sequence support (by system)
 Management commands accepted only from predefined stations
 GAL will provide speed of 64kbps to 2mbps. This speed could be enhanced as per
client's requirement.

GAL offers the following communication services

 Point-to-Point and Point-to-Multi-point Connectivity

  Internet Gateway Services / High-speed Internet at 64 kbps and above
 Intranet / VPN Solutions
 Video Conferencing
 Remote Video Surveillance Solutions
 Setting up LAN and Integrating Various Systems
 Security product
 Network hardware solutions
 Corporate voice service
 VoIP consultancy

GAL's technical and management strengths encompass

 Modular Architecture and scalability - deployment on demand

 Affordable redundancy - movable
 Wireless systems - flexible and fast deployment
 Own VSAT gateway and private network
 Licensed frequency spectrum allocation
 Possession of Broadband Service Provider License
 Sound Financial Health with International Funding
 Superior Management and Human Resources

Experience of GAL in setup of Wide Area

Network
Global Access Ltd. poses a Nationwide Domestic
Data Communication Service Provider (DDCSP)
License issued by Bangladesh Telecom Regulatory
Board. GAL has more two years experience with
participation in communication infrastructure
development of the major cities in Bangladesh which
includes Dhaka, Chittagong and Sylhet.

Global Access Ltd. has experience in Radio

link/VSAT connectivity, physical link setup and
configuration, setting up security and firewall devices,
VPN etc. for Banks/Financial Institutions.

Global Access Ltd. has intercity connectivity in place

between Dhaka, Chittagong and Sylhet at present and
able to expand the connectivity with other cities in
Bangladesh.
Support facility, which will be provided as part of the contract

 24 hours, 7 days a week, 365 days in year service.

  24 hours monitoring at Network Operating Center (NOC)
 24 hours Hot Line Services.
 1 (One) hour response time in Dhaka City and 8 (Eight) hours in other cities.
 The problem will be attended within one hour in Dhaka City and eight hours in other
cities of reporting and will be solved as early as possible, but not later than 24 hours.
 Monthly Status Log report (on request).
 Immediate replacement of faulty equipment from our ready stock.

Level of Support

 24 hours, 7 days a week, 365 days in year service.

 24 hours monitoring at Network Operating Center (NOC)
 24 hours Hot Line Services.
 1 (One) hour response time in Dhaka City and 8 (Eight) hours in other cities.
 The problem will be attended within one hour in Dhaka City and eight hours in other
cities of reporting and will be solved as early as possible but not later than 24 hours.
 Monthly Status Log report (on request).
 Immediate replacement of faulty equipment from our ready stock.
 4.0 Products

Products that GAL provides to their customers are directly imported from abroad

Motorolla canopy:
Global Access Limited (GAL) is an Authorized Canopy Solution Provider (ACSP) in
Bangladesh. We carry full range of Motorola Canopy Products.

LinkSys Router:

 A world renowned CISCO Company Products.

 Ether Fast Cable/DSL Routers
 We have the following 2 in our stock:
 BEFSR41 Broadband Router:Non-VPN Router
  BEFVP41 Broadband Router:VPN Router

DASAN SDSL Modem:

 Model: IP-SDSL CPE Pro

 Designed for deployment in network terminal
 CPE Pro provides 1-Port 10 Base-TX Ethernet interface
 1-Channel SDSL interface for data and voice
transmission

Network Cables:
 BELDEN
Shielded Twisted Pair (STP) Cable

 Shunsheng
Shielded Twisted Pair (STP) Cable

 Shunsheng
Unshielded Twisted Pair (UTP) Cable
  DCODE
Tele Cable

5.0 Strategy and

Implementation Summary

he GAL strategy is to achieve name recognition and attract customers by aggressively pricing its
services. Once customers have been acquired, the company will seek to offer them additional
services which will increase margins and provide them with useful solutions they would not
otherwise find.
The company will also implement a low-cost strategy. This will be achieved by working to
establish and develop agreements with local media companies to exchange services for
discounted advertising and other exposures. GAL' market strategy is to build on its core portfolio
of products and services using the company's expertise in the ISP industry.
The company will leverage its discounted services to help provide secondary income streams.
For instance, the company plans to launch free email services, business directories, and other
similar services which will attract current and potential customers to our Web pages. These
"page views" will be used to generate advertising revenue, as well as increase exposure of our
own products and services.
GAL will be able to excel in the market because the company is small, highly focused, and
motivated. The company can respond quickly to changing opportunities and take advantage of
the latest technologies.
The company plans to expand its marketing efforts, service offerings, and production. It is
anticipated that additional services will be offered and more personnel hired within 30 days of
initial capital funding. GAL plans to capitalize on the following areas of growth:

 High-speed Internet connectivity via DSL, Wireless, and other technologies.

 Web hosting and design tailored to small, local businesses.
 E-commerce and associated online databases.
5.1 Competitive Edge
GAL is currently the lowest-priced provider in Dhaka for most commercial services, and its
reputation has been consistently high. Size gives the company a competitive advantage, in that it
can see where the industry is going and move in that direction more quickly than the
competition. This also allows the company to be more efficient at recruiting and hiring highly
creative and talented individuals who tend to shy away from large "corporate" environments. The
company has worked to overcome old mistakes made by existing ISPs by hiring technically-
savvy individuals.

5.2 Marketing Strategy

The concentrated marketing activities of GAL focus on the business mission and are
comprehensive in nature. The following activities are the marketing department's mission:

 Advertising design and placement.

 Public relations schedules and press releases throughout each year.
 Creation of annual advertorial (advertisement/tutorial) themes for trade journals and
industry conferences.
 Planning and execution of all industry conferences, including the reservation of space,
booths, personnel, messages, literature, etc.
 Collection, analysis, and internal dissemination of competitive information.
 Creation and maintenance of all corporate literature.
 Design, maintenance, and monitoring of websites.
 Design and creation of sales support material.
 Collection and dissemination of client
testimonials.

5.2.1 Marketing Programs

To generate sales, the company uses direct
marketing, computer reseller and repair
facilities, and high-traffic areas (e.g. store
checkout stands). Currently, several local
companies display the company's CD-ROMs at
their checkout stands in the Dhaka area in
exchange for free Web hosting.
Marketing initiatives will focus on four areas:
efficient ("Server Hotel") facilities, Web
hosting, dialup access, and content provision.
Marketing activities will be concentrated in the
following categories:

 Contact Campaigns. This initiative

will encompass various methods of
 reaching potential customers to generate interest, followed by direct mail to the potential
customer.
 Print Advertising. Ads will be developed and placed in several industry publications.
 Trade Shows. The company will participate in selected local and national shows that will
provide an opportunity to develop exposure. This is a very effective tool in creating
awareness and stimulating lead activity.
 Industry Organizations and Associates. The recommendation is to join a number of
organizations that are relevant to the company as a whole. This initiative will create
awareness of the company within the industry, and provide networking opportunities.
 Telemarketing Campaign. Telemarketing activities geared to identify qualified leads,
follow-up on sales progress to the qualified leads, and assurance that new potential contact
lists are current and accurate.
 Promotional GiveAways. This is a traditional way of advertising a company's name by
giving something away. This will be used in conjunction with community service
organization fund-raising efforts and traditional advertising.

5.3 Sales Forecast

The sales forecast chart and table are presented below. Final sales forecasts are based on
predictions mentioned in the Executive Summary.
Sales Forecast
2000 2001 2002

Sales

Dialup Internet Access $1,155,000 $3,015,000 $4,275,000

High-bandwidth Internet Access $105,000 $765,000 $2,025,000

Website and Virtual Domain

$45,000 $135,000 $225,000
Hosting

Network Services $75,000 $225,000 $375,000

Server Colocation $75,000 $225,000 $375,000

Other $45,000 $135,000 $225,000

Total Sales $1,500,000 $4,500,000 $7,500,000

Direct Cost of Sales 2000 2001 2002

Dialup Internet Access $39,996 $39,996 $39,996

High-bandwidth Internet Access $22,000 $22,000 $22,000

Website and Virtual Domain

$4,800 $4,800 $4,800
Hosting

Network Services $6,000 $10,000 $12,000

Server Colocation $2,400 $3,500 $4,000

Other $2,400 $4,000 $6,000

Subtotal Direct Cost of Sales $77,596 $84,296 $88,796
 6.0 Financial Plan

his section presents our financial projections for the term of the plan.
The company is raising a large investment for the purpose of growth and operations. This
funding will cover operating expenses and product development during this period. The
following is a breakdown of how the funds will be used.

Expenses Costs

Advertising $50,000

Legal Fees $10,000

Office $40,000

Working Capital $100,000

Miscellaneous $50,000

Sub-total $250,000

Product Development: $1,250,000

Total $1,500,000

6.1 Important Assumptions

1. Nature and Limitation of Projections. This financial projection is based on sales

volume at the levels described in the revenue section and presents, to the best of
management's knowledge and belief, the company's expected assets, liabilities, capital,
revenues, and expenses. The projections reflect management's judgment of the expected
conditions and its expected course of action, given the hypothetical assumptions.
2. Revenues. The company's revenue is derived primarily from subscriptions. Revenue
projections are based on the 1999 sales in the comparable market nationwide, based on
industry average. The exact numbers can be found in the Sales Forecast table and chart
section.
3. Expenses. The company's expenses are primarily those of salaries, sales commissions,
and administrative costs. Other expenses are based on management's estimates and industry
averages.
General Assumptions

2000 2001 2002

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 25.42% 25.00% 25.42%

Other 0 0 0

6.2 Break-even Analysis

The following table and chart reflect the company's break-even estimates. These are based on
fixed and variable cost estimates derived from past income statement data. Given that Web
Solutions has little in the way of marginal costs, the break even analysis reflects the industry's
high gross margins. Unless one of the potential future risks seriously impacts profitability, or the
company loses its ability to rapidly adjust to changing market conditions, the company does not
see this as a serious issue.
Break-even Analysis

Monthly Revenue Break-even $41,368

Assumptions:

Average Percent Variable Cost 5%

Estimated Monthly Fixed Cost $39,228

Appendix