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Green Stove by Coleman Company, Incorporated

Marketing 3100: Foundations of Marketing


Instructor: Dr. Thomas Burns
Elizabeth
Monica
Jacob
John

Green Stove Marketing Plan 1


Table of Contents
Executive Summary.2
Product Description.4
Mission & Goals..5
Core Competencies..5
Situation Analysis..
Competitors....
Target Market.
Marketing Mix...
Product Strategy.
Distribution Strategy
Promotion Strategy....
Pricing Strategy..
Financials...
Controls & Evaluations..
Appendix A..
Appendix B...

Green Stove Marketing Plan 2


Executive Summary
This three year marketing plan is for Coleman Companys latest product, Green Stove. The
founders have created this plan to secure funding by the Coleman executive team to produce a
product with 1% first year profit, grow to 15% in year two, and 16% in year three. Coleman has
been an industry leader in camping and outdoor equipment since 1900. Over the last 115 years,
Coleman has established an impressive consumer base of outdoor enthusiasts and sports fans
alike. Coleman Company is introducing Green Stove, a cooker powered by an external solar
panel with a rechargeable battery option. This revolutionary hybrid cooker will have a cylindrical
cooking space measuring 36 inches in length and 8 inches in diameter. This product boasts
additional features including, but not limited to, the following: 12 hour battery life, 550 degree
fahrenheit adjustable temperature setting, and cooking power of 22,000 BTUs.
To ensure that Green Stove lives up to Coleman standards, the marketing team has compiled
financial and nonfinancial objectives. These include to sell 30,000 units in the first year, and
increase sales by 10% each year. As an eco-friendly product, Green Stove commits itself to
sustainable technology and aims to reduce carbon emissions and be the leading hybridized solar
power product; these emulate the nonfinancial goals. Green Stove aligns these goals with this
mission statement: cook your food while saving our Earth. This mission reflects Coleman
Companys, as well as Green Stoves, core competencies. The development of high quality,
innovative products such as Green Stove is a testament to Colemans ability to promote
customers enjoyment of the outdoors and allow them to create long lasting, meaningful
memories. Coleman aims to aid in this process by continuing the delivery of revolutionary
products such as Green Stove.
Threats of Green Stove are: the existence of similar products, cannibalization possibilities, and
reliance on a stable economy due to its inelastic nature. On the contrary, strengths of Green
Stove include: first mover advantage, access to Colemans customer base, and a positive
environmental impact. These strengths are important to reinforce Colemans market power and
offset competition posed by rival companies. Existing weaknesses of Green Stove are
comprised of: little market share control, secretion of battery chemicals, and a higher price than
competing products. These weaknesses give away to opportunities such as: Colemans expansion
and implementation of an eco-friendly camping line, as well as governmental opportunities
which could include renting these hybridized cookers in national parks.
We will offer a competitive price which will force potential customers to consider factors beyond
the cost and look at Green Stoves innovative qualities. We have determined this price by
using the price skimming strategy. Consumers are willing to pay $300.00 for a Green Stove.
Using the keystone halving model, retailers will buy this product from Coleman for $150.00
which determines that we need to produce this product for $75. By implementing psychological
pricing we have decided to price this item at $299.95. This price will allow Coleman to stay

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competitive within the market while still being able to realize the desired profit margins of
greater than 5% after year one.
Within the marketing mix, we have determined a distribution strategy to allow for maximum
profit potential. This dual distribution marketing channel will focus efforts on both
intermediaries and direct selling through the Coleman website. These intermediaries include the
following retail stores: REI, Cabelas, Dicks Sporting Goods, Gander Mountain, Lowes, Mills
Fleet Farm, Home Depot, and Menards. In order to process prospective order requests our
distribution intensity is selective and Green Stove will follow Colemans current strategy
including outsourced trucking, distribution warehousing, and order processing in-house.
In order to meet our goal of 10% profit by year three, we will focus our marketing strategies on
five segments of the market: the campers, generation x, brand loyal Coleman customers, the
upper middle class, and the environmentally conscious. To reach these markets we will pursue
promotional strategies for which we have allotted $1.2 million dollars: online advertising using
Google keywords which will cost $219,000, television commercial time on outdoor channels and
during sporting events totaling $500,000, email blasts to past Coleman customers equaling
$19,000, outdoor magazine full page spreads costing $142,000, and interactive, retail
demonstrations which pan out to $300,000.
We plan to execute this plan by implementing controls and evaluations to gauge our success the
first year. Our controls reiterate our earlier goals: sell 30,000 units of Green Stove the first
year, receive at least stars online after the first year, and increase sales by 10% each following
year. We have forecasted potential scenarios that could deter Green Stove from reaching its
goals and have posed solutions. These solutions include allocating more money towards
marketing and promotion. We have also prepared for the instance in which Green Stove
creates a cannibalization effect. One control we have set in place is to offer customers a $15
Coleman manufacturer coupon to use on any Coleman good. This discount promotes Coleman
loyalty and will force customers to peruse other outdoor equipment which provides Coleman
profit.
An environmentally conscious product line is the logical next step for Coleman Company. An
investment in Green Stove will turn profits of over 15% within three years by capturing less
than 1% of the target market share. This means that there is enormous room for Green Stove
sales growth as well as Coleman product line expansion.

Green Stove Marketing Plan 4

Product Description
Green Stove is an environmentally friendly cookstove designed to harness both the thermal
energy and solar energy of the one of our most abundant resources: the sun. The cooking
chamber uses our patented cylindrical tube that is comprised of two concentric high density
plastic tubes that are vacuum sealed together. To harness the thermal energy from the sun, Green
Stove uses concavely bent metal that functions as a mirror that redirects the light into the
cooking chamber and also as the container. To contain the solar energy Green Stove has
electrical heating elements inside the cooking chamber that are powered via a high capacitylightweight battery that is chargeable by a detachable solar panel. In addition, Green Stove has
the following capabilities:
Cylindrical cooking area
Push-button start
Consistent performance, even in extreme conditions
Detachable solar panel energy source
Lasts up to 12 hours with battery use
230 watts in full sunlight
550 degrees fahrenheit capabilities for solar panel option
22,000 BTUs of cooking power for battery option
Cylinder: 36 inches long, 8 inches wide (Storage size)
Precise control for 1 temperature zone
Built-in handle and latching lid for easy carrying
Available in red, black and gray
Non-skid feet
Perfect for camping, tailgating, picnicking and other outdoor occasions
Met & exceeds safety standards
3-year limited warranty (Extended warranty available for purchase)
Part of our recycling program

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Colemans Mission and Goals for Green Stove
Mission Statement
Cook your food while saving our Earth
Financial Goals
Sell 30,000 units in the first year
Increase sales by 10% each year
Realize 5% profits in year two
Realize 10% profits in year three

Nonfinancial Goals
Be the leading hybridized solar power product
Develop a high quality, innovative product
Enhance the enjoyment of the outdoors
Reduce carbon emissions
Receive at least 4 out of 5 stars online rating
Core Competencies
At Coleman we develop high-quality, innovative products. These products promote our
customers enjoyment of the outdoors and creation of lasting memories. Coleman intends to
build on these competencies by continuing to add high quality products to our lines, such as
Green Stove, and ensuring our consumers innovative products.
Colemans newest product, Green Stove, shows off the companys innovative strive to
promote environmentally-friendly products. Green Stove enables campers to travel without
cords and wires, while allowing them to nourish themselves in any weather conditions.

Green Stove Marketing Plan 6

Situation Analysis
Strengths
Established, leading company in the camping
industry

First cooker with sustainable technology


First cooker with multiple energy source

options

Access to Colemans retailers, website, and


current professional relationships
Sun is a free energy source
No exposure to radio waves
No risk of carbon monoxide
Opportunities
Expand eco-friendly camping line
Governmental use

Weaknesses
Similar existing cookers
Electric grills control 2% grill shipments
(charcoal & propane)
Battery can secrete harmful chemical
Solar power reliant on sun exposure
Priced higher than competitors

Threats
Similar already-existing products
Elastic good depends on stable economy
Cannibalization

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Competitors
Of the outdoor cooking market, Green Stove will be able to obtain 10% of the total market
share. To keep numbers consistent we have comprised a list of nine additional competitors which
will each hold 10% of the market share like Green Stove. Included in this section is a brief
description of the competing products as well as a blurb summarizing their downfalls in
comparison to Green Stove.

Products
Char-broil Kettleman Premium Charcoal grill
Singular temperature setting
Varied heat across skittle
Temperature gauge
Removable ash bowl
Damper to release smoke
10 year manufacturer warranty
Charcoal smoke emits soot into the Earths atmosphere which pollutes the air and can aggravate
heart and lung problems. In addition, grilling the meat on charcoal can form two kinds of
potentially carcinogenic compounds: polycyclic aromatic hydrocarbons and heterocyclic amines.

Weber Spirit propane grill


2 stainless steel burners
26,500 BTU
Natural gas or liquid propane
450 in2 cooking area
Limited warranty
Propane tanks are inconvenient and tedious to refill. The portable version of these grills are
bulky and do not offer the environmental consciousness that Green Stove does.

All American Sun Oven


Solar-power
Portable
Built-in thermometer
This oven does not have heat control nor does this run off of anything other than the sun. This is
unrealistic in places with adverse weather conditions which Green Stove accounts for with the
detachable, rechargeable battery option.

Broil King Porta-Chef


Propane fuel
Portable
14,000 BTU
220 in2 cooking area
10-year warranty

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Similar to other fuel-powered cookers, Broil King Porta-Chef secretes harmful toxins into the
air and is harmful to the Earths atmosphere and our health.

Biolite Wood-burning Camp Stove


Fueled by wood
4 minute 30 second boil time
40 in2 cooking area
Extra electricity used to charge small devices (smartphones)
This camp stove falls short because it has roughly 1/7 the cooking area capacity of Green
Stove and is reliant on ones ability to collect kindling and start a fire. This is inconvenient and
unrealistic.

MSR WindBurner Stove


Isobutane-propane fuel
Integrated pot
95 minute burn time
34 oz capacity
This stove does not have the space to cook a large quantity of food because the food is put into
an enclosed space and heated like a microwave. The pot runs off of propane fuel which as
previously stated, has negative effect on consumers and the Earth.

GoSun Sport Solar-Camp Stove


Solar fuel
Tube cooking chamber
550 degree Fahrenheit temperature
40 oz capacity
288 in2 cooking area
Most similar to Green Stove, this stove falls short in its inability to adjust to undesired
weather conditions. This stove is only able to be used in direct sunlight and holds no charge
unless directly heated by the sun. This features geographically limits the stoves target market
which Green Stove has the ability to capture.

Jetboil Zip Cooking System


Boil water to pour over freeze-dried food
Single serving
2 minute 30 seconds boil time
27 oz capacity
This does not cook food, it simply heats water to pour over freeze-dried food. This system
requires that all of your food be freeze-dried and this is an inconvenience and in certain cases,
impossibility.

Camp Chef Everest 2-Burner Camp Stove


Propane fuel

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2 burners with 2 separate temperature capabilities
20,000 BTU (per burner)
288 in2 cooking area
Less portable than the others, this camp stove has fancier features than the Green Stove but is
lower quality and less environmentally friendly due to the use of propane fuel.
Cannibalization
In addition to being threatened by external competitors, Green Stove also faces threat of the
cannibalization effect. This would occur if sales of Green Stove retract the sales of other
Coleman products. In an attempt to discourage this scenario, Green Stove is offering a
Coleman manufacturer coupon to all customers that purchase a Green Stove. With each
purchase, the customer will receive a $10 coupon which is redeemable on an Coleman product.
This includes all camping and outdoor equipment. This coupon will promote Green Stove
customers to return to the Coleman website and look through other products, a promotion that
will likely result in a purchase greater than $10 and turn profits for our company.

Green Stove Marketing Plan 10


Target Market

Segmentation by Usage: Campers


Need device to cook food
No access to electricity
Want ease of use
Do not want to carry additional add-ons (propane tank)

Segmentation by Age: Generation X


Have families for which to cook
Family gatherings
Sporting events
Camping excursions
Concerned about social issues
Protecting the environment

Segmentation by Brand Loyalty: Existing Coleman Customers


Trust Coleman to manufacture quality products
Coleman offers loyalty incentives
Frequent purchase coupons
Email code redemptions

Segmentation by Income: Upper Middle Class


Less affected by economic fluctuations
More able to purchase elastic gods
Segmentation by Benefits Sought: Environmentally Conscious
Desire to reduce carbon footprint
Value solar-power technology

Green Stove Marketing Plan 11

Marketing Mix
*explained further in Appendix A*

Product Strategy
Package Design
Coleman logo featured
Made of recycled materials
All packaging able to be recycled
Colors Offered
Gray
Black
Red
Customer Service
24/7 Coleman customer service department
Free shipping on return
Programs for existing grill recycling & refurbishing
Warranties
3 year limited warranty (does not cover damage inflicted by customer)
Option to purchase an extended warranty
Free shipping for repairs at Coleman
Testing
Exceeded all of the necessary safety standards
Signed off on by Consumer Product Safety Commission
Product Lifecycle
Currently in introductory
Patents
14 year on product design
Trademark
Green Stove

Distribution Strategy
Marketing Channels
Dual Distribution
Intermediaries
Direct Selling
Distribution Intensity
Selective Distribution
Physical Distribution
Outsourced Trucking
Distribution warehousing
Order processing in house
Intermediaries
REI
Cabelas
Dicks Sporting Goods
Gander Mountain

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Lowes
Mills Fleet Farm
Home Depot
Menards
Promotion Strategy
Online
Google
Key words: Green Stove, solar cooker, clean energy, camping equipment, hybridized cooker,
coleman, clean camp stove, camp stove
2% of clicks result in purchase considered effective
Television Ads
Evening play time (5-11:00p.m.)
Outdoor Channel features
Email blasts to past Coleman customers
2% of emails sent result in purchase considered effective
Outdoor magazines
Camping Life
Backpacker
Type of Advertising
Institutional: Environmentally friendly
Advertising Strategies
Retail
Interactive
In-store demonstrations at select stores
Periodically through month one of release
Touch screen displays
Durability test
Ease of use
Quality

Pricing Strategy
The objective of our pricing strategy is profitability. This objective pushes us to
maximize profit. Coleman will be using the skimming price strategy initially for this product.
Although other solar cookers exist, there are no hybridized options that allow the capabilities of
Green Stove. Coleman intends to capitalize on being the first mover of this product for as long
as possible. Similar products sell in the market to consumers for $250-$300. We estimate that
customers are willing to pay $300 per Green Stove unit. Using psychological pricing, retailers
will price this product at $299.95 to give customers the perception that they are paying less than

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$300. According to the keystone halving model, if customers pay $300 from the retailers,
retailers will pay $150 from Coleman and we need to manufacture this product for $75. We will
sell Green Stove on the Coleman webpage for the average retail price. Demand is currently
inelastic with respect to price in the early stages of Green Stove .

Green Stove Marketing Plan 14

Financials
*explained further in Appendix B*
Year 1- 2016

Green Stove Marketing Plan 15

Year 2- 2017

Year 3- 2018

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Controls & Evaluations

Controls
Sell 30,000 units of Green Stove in the first year
Receive at least stars after first year
Increase sales by 10% each year
Realize 5% profits in year two
Realize 10% profits in year three

Evaluations
What if another company develops a better version of Green Stove?
If another company develops a similar product with enhanced features, Coleman
has first mover advantage and will invest more money into the research &
development to continue to improve the current design. We have trademarked our
brand name and have established a design patent to thwart off competitors.
What if Green Stove sells less than 30,000 units in the first year?
If Green Stove does not meet expected sales in the first year, Coleman will
designate more funds to marketing for advertising and promotion.

Green Stove Marketing Plan 17

Appendix A
Marketing Mix

Distribution Strategy
Our distribution approach will use dual distribution. This strategy will be a two pronged
approach using store sales through intermediaries as well as direct selling through the Coleman
webpage. This selling method will allow Coleman to maximize coverage in the marketplace as
well as increase their cost-effectiveness.
Coleman selected selective distribution as their distribution strategy. By choosing limited
intermediaries Coleman can continue to build relationships with their current sales force. Select
stores will be chosen to use cooperative advertisement. In our cooperative advertisements we
will use interactive touchscreen displays that will be discussed further in the promotional
section.
The Intermediaries chosen to carry Green Stove are as follows:
REI
Cabelas
Dicks Sporting Goods
Gander Mountain
Lowe's
Mills Fleet Farm
Home Depot
Menards
The physical distribution decisions made by Coleman for Green Stove are as follows:
outsources trucking, distribution warehousing, in house order processing. Outsourced trucking
will be provided via UPS, USPS, as well as through our intermediaries if they have their own
truck fleets. Distribution warehousing was chosen to limit finished goods inventory and keep a

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fluid movement of goods from manufacturer to retailer. Order processing will be completed by
Colemans in house department.

1.
2.

Promotion Strategy
Online.
Coleman webpage
Google
Google AdWords will use 167+ clicks per day and will stop at $600 per day. This will
total to $219,000 per year.
Key words: Green Stove, solar cooker, clean energy, camping equipment, hybridized cooker,
Coleman, clean camp stove, camp stove
2% of clicks result in purchase considered effective

Television
1. Outdoor Channel
The Outdoor Channel has an average viewer age of 51, income of $56,000, and 75% of
them are male. The show we will advertise during is Fight to Survive. The Outdoor Channel
advertises this as their hottest show. This program is shown in the evening when our target
market is home from work. An average national TV commercial on well-known channels cost
$100,000 for a 30-second allotment. We will advertise 1 commercial per week for the first 5
weeks of year 1. These commercials will cost $500,000. During years 2 and 3, we will air 4
commercials for a total of $400,00 each year.
Email blasts. We will purchase 2 Premier packages through Campaign Monitor. This entails
unlimited email blasts for up to 100,000 past Coleman customers through s for $1,598 per
month for $19,176.00 per year. A purchase from 2% of emails sent result in purchase considered
effective.
Outdoor magazines.
1. Camping Life
Camping Life reports that the average age of their readers is 47, their average income is
$78,900, and 68% of them are male. In the next 12 months 37% of their readers plan to purchase
cooking equipment. In 2016, we will take out 8 ads in Camping Life. Each ad will be a full page
costing $7,230. The Camping Life ads in 2016 will total $57,840. In 2017 we will take out
another 8 ads in Camping Life throughout the year. Each ad will be page at $5,420. These ads
will total $43,360. In 2018 we will take out 8 ads in Camping Life throughout the year. Each ad
will be page at $4,620. These ads will total $36,960.
2. Backpacker

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Backpacker has an audience of 1.24 million. Of this audience, their median age is
41, median income is $88,267, and 67% of them are male. In 2016 we will do a full run of full
page ads costing a total of $38,394. In 2017 we will do a full run of page ads totaling $26,453.
In 2018 we will do a full run of page ads totaling $21,548. Each year we will also have one
cover page at $46,070 per year. This results in 2016 totaling $84,464, 2017 will be $72,523, and
2018 totals $67,618.
Type of Advertising. Most of our advertising will take on an institutional feel. These ads will
highlight the environmentally friendly aspect of Green Stove.

1.
2.

Advertising Strategies.
Retail
Interactive
In-store demonstrations
Demonstrations will be considered a mutually beneficial cooperative advertising
to generate foot traffic. All demonstrations will be in REI stores, a company
which has 143 stores in 36 states. These demonstrations will be held in the most
highly trafficked store in each state for a total of 36 demonstration sites.
Demonstrations will take place 6 times weekly during the first three months of
release. They will take place on two week nights--Wednesday and Friday-- as well
as twice per day on the weekend for a total of 6 time slots weekly. Demonstrators
will be Coleman employees trained to use Green Stove. The cost incurred
would be the cost of employing 36 Coleman employees 6 time slots a week for 12
weeks. Assuming each demonstration is 3 hours in length including hour setup
and cleanup and the employee is making $15 an hour the cost will be
approximately $ 298,080.
$15 x 4 hours x 6 demonstrations x 12 weeks = $298,080
Touch screen displays
After six months of demonstrations are completed, we will phase into
interactive touch screen televisions in REI stores to exhibit durability, ease
of use, and trusted Coleman quality. Using a 15 inch touch screen LCD
monitor will cost $289.46 per screen. These monitors will be supplied to
all 143 REI locations nationwide. The total cost incurred will be $41,393.
This demonstration deal will also benefit REI. In return for allowing us to set up
demonstrations, we will provide al 143 REI stores with 5 units of Green Stove at no
charge to them. This is incentive for REI to put the product on their shelves because the
sale would result in pure profit.

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Green Stove Marketing Plan 21

Appendix B
Financial Statements
Forecasting
Forecast for year 2016 (year 1). In 2011, there were sales of $776,000,000 barbeque and
outdoor cooking devices (http://www.ibisworld.com/industry/barbecue-grillmanufacturing.html). Of this, we have estimated that Coleman captures 10% of the market share
with their products offered. This results in annual sales of $77,600,000 in cooking devices sold.
Coleman currently offers 15 different types of grills. Assuming that each type of grill results in
equal profit, revenue per each current grill type equals $5,173,333. Green Stove , if able to
generate $5,173,333 in sales, priced at $150.00 per unit to retailer, would be equivalent to selling
34,489 units in a year. Achieving this price maintains Colemans ability to capture 10% market
share.
As a seasonal summer product, we estimate that 60% of our sales will occur in quarters two and
three at 30% each to account for warmer weather. 25% of our sales will occur in quarter four.
This number is lower than the summer because demand is typically less in the winter, but
remains higher than quarter one because Christmas sales will generate revenue. This leaves 15%
of sales occurring in quarter one.
Further, we broke quarter one sales into three even distributions of 5% total sales. Quarter two
and three has been divided into six distributions of 10% total sales. During quarter four, we have
allocated 75% of quarter four sales will occur in December as people buy Christmas gifts. This
works out to 19% of total year sales. October and November have been equally distributed as 3%
each of total year sales.
Forecast for year 2017 (year 2). One financial goal of Green Stove is to increase sales
by 10% each year. Therefore, year 2 sales will equal 37,938 units sold. We have kept seasonal
forecasting the same: 15% in quarter one, 30% in quarter two, 30% in quarter three and 25% in
quarter four.
Forecast for year 2018 (year 3). Keeping with our financial goal to increase sales by 10%
each year, Green Stove is anticipating 41,732 units sold. Seasonal forecasting is consistent at:
15% in quarter one, 30% in quarter two, 30% in quarter three and 25% in quarter four.
Income Statement
Year 1. Our revenues for year one result in 1/15 of 10% of the outdoor cooking market
share. This equals $5,173,333. Our cost to produce one unit of Green Stove is $75, 50% of our
selling price. In accordance with our REI in-store promotion deal, we are giving each of the 143
REI stores 5 free Green Stove units to sell in the first year. This means that we will have

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additional cost of goods sold for 715 units resulting in an additional $53,625 for cost of goods
sold. For the first year, as a discount to customers, we are providing each Green Stove unit
sold with a $10 Coleman manufacturer coupon which is redeemable on any Coleman product.
We have estimated overhead at 15%. Our promotion is categorized by the six types of
promotions we will be doing. Promotion accounts for 25% of sales. By capturing less than 1% of
the total outdoor cooking appliance market share, we have earned positive net profit of over 1%
in the first year.
Year 2. We plan to increase sales by 10% and have estimated year 2 revenue of
$5,690,667. We keep cost of goods sold consistent at 50%. We will continue to offer customers a
$10 manufacturer coupon and have kept discounts and allowances at 7%. Our overhead is
consistent at 15%. As noted in the promotion section, we have decreased our television
commercials from 10% to 7%. We have also reduced magazine adage by 1%. This is a 13%
allotment for promotion. We have eliminated all in-store demonstrations. These cuts result in a
15% net gain for year two.
Year 3. We will continue our trend of a 10% sales increase and have alloted year 3
revenue at $6,259,733. Cost of goods sold is consistent at 50%, or $75 per unit. Our discount is
the same as years one and two, we will offer customers a $10 Coleman manufacturer coupon.
This remains the same percentage as years one and two as does our overhead. We have reduced
promotion and promotions now account for 12% of our revenues. Year 3 we experience a 16%
net profit.