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Summary for Nostro

            Based on last quarter's results Nostro Inc. is improving in the work horse segment and falling behind in the traveler segment. However we revised both brands to meet the exact needs of the target market and also revised our advertising strategy. While conducting analysis of our competition it was apparent that although we offered similar products at similar prices our advertisingstrategy was different. Therefore we reanalyzed how to accurately convey our product to our target audience and revised the advertising strategy.

In regards to our pricing strategy we started offering rebates in each of our regions last quarter which paid off as our overall financial performance is slowly starting to come out of the red. Moving forward we will be offering a point of purchase display for our New Millennium in hopes to further boost revenue. In regards to our fixed costs we have decided to invest in research and development regarding our work horse segment which will increase our annual fixed cost, however we hope increase revenue.

The marketing strategy for Nostro Inc. continues to target large competitive segments in large geographic markets which include our North America segment in New York and our Asian segment in Tokyo. Both cities have a multitude of competition providing similar products regarding the work horse segment. However we plan to corner the market in both regions by providing our consumers state of the art computers with the latest technology paired with portability and convenience through our next generation of innovative designs.

Since wecreated a new strategy to modify our product targeting for the workhorse segment to meet the demand of the consumers. With our new office in Los Angeles we anticipate an increase in sales within the next two quarters. We've been able to purchase added features that will attract more consumers in our target market areas. With the changes we have implemented Nostros Inc. is expected to stay in the top 3 companies for product. The first year financial anticipation for our company is below.


Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Revenues

0

0

410,008

1,496,915

2,461,050

4,090,550

7,866,400

10,788,300

Rebates

0

0

0

42,800

71,250

118,125

227,500

311,250

Cost of goods sold

0

0

248,114

866,040

1,274,798

1,850,903

3,163,501

4,189,084

Gross margin

0

0

161,894

588,075

1,115,002

2,121,522

4,475,399

6,287,966










Sales office leases

0

0

200,000

200,000

200,000

330,000

330,000

330,000

Sales force expense

0

0

323,478

251,000

251,000

323,478

323,478

323,478

Brand promotions

0

0

0

0

0

0

0

0

Special programs

0

0

0

0

0

0

0

0

Ad creation/revision

0

0

60,000

30,000

60,000

60,000

60,000

60,000

Point of Purchase Display expenses

0

0

0

400

200

200

400

400

Advertising expenses

0

0

91,078

69,644

501,658

501,658

501,658

501,658

Engineering cost for new brands

0

120,000

120,000

60,000

120,000

120,000

120,000

120,000

Market research

87,999

0

40,000

40,000

40,000

40,000

40,000

40,000

Operating expenses

87,999

120,000

834,556

651,044

1,172,858

1,375,336

1,375,536

1,375,536










Operating profit

-87,999

-120,000

-672,662

-62,969

-57,856

746,186

3,099,863

4,912,430

Research and development costs

0

0

0

0

2,501,461

1,705,542

1,591,839

0

Set up costs for new sales offices

0

300,000

130,000

130,000

130,000

130,000

130,000

130,000

Net profit for division

-87,999

-420,000

-802,662

-192,969

-2,689,317

-1,089,356

1,378,024

4,782,430

Cumulative net profit for division

-87,999

-507,999

-1,310,661

-1,503,630

-4,192,947

-5,282,303

-3,904,279

878,151

 

 

 

 

 

Marketing Management, Management Studies

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