marketing plan of a new company

7/30/2019 Marketing Plan of a New Company

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Marketing Plan-DbaTek


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Contents

Introduction ......................................................................................................................................... 3

Market Segmentation........................................................................................................................... 4Mission .................................................................................................................................................5

Operations............................................................................................................................................6

Delivery................................................................................................................................................ 7

Resource Utilization ............................................................................................................................. 8

Marketing Plan....................................................................................................................................9

Administrative Expenses................................................................................................................... 14

Staff and Salary Structure..................................................................................................................15

Fixed and Variable Costs .................................................................................................................. 16

DbaTek Offerings and Pricing Structure......................................................................................... 17

Expected Earnings Schedule.............................................................................................................19

Break Even Analysis...........................................................................................................................20

SWOT Analysis:.................................................................................................................................22

Strengths: .............................................................................................................................................. ....22

Weaknesses: ................................................................................................................................... ...........22

Opportunities: ...........................................................................................................................................23

Threats: ................................................................................................................................................ .....24

Competition Analysis.........................................................................................................................25

Price Elasticity and Demand..............................................................................................................25

Future Growth Plans .........................................................................................................................26

Global Market Strategy...................................................................................................................... 27

The 4Ps ...............................................................................................................................................28

Product ......................................................................................................................................................28

Price ...........................................................................................................................................................28

Place ...........................................................................................................................................................28

Promotion ..................................................................................................................................................28

List of Tables and Figures.................................................................................................................29

References...........................................................................................................................................29

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Introduction

We are purposing a start up called DbaTek. It will be a

computer consulting business company concentrating on providing

remote database administration to its clients with special focus on

managing Oracle databases which are at the companys client sites.

It is a B2B company to serve clients who have $500,000 to $5

million annual budget for Information Technology (IT) spending and

who have under- served IT staff of 5 to 10 persons. Such clients or

businesses are categorized as Small and Midsize Businesses or

SMBs.

Databases are one of the most critical IT components.

Companies small to big are capturing even more data as more of

business process are translated into computer software workflows.

These days, businesses are capturing more varieties of data not

possible years earlier. The prices of data storage disks have comedown drastically in last few years which makes more economically

feasible to store all sorts of measurable data. A big portion of the

business data gets stored into databases, because most of the

commercially available off the shelf business software, including

Enterprise Resource Planning (ERP) Software, use databases in big

way. Even most of the software programmers and developers using

popular software writing languages like Java, .net, C++, etc store

data required by the programs in these databases. Commercially

available databases are piece of software which manages data

efficiently, makes data available and secure, and allows data backup

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and recovery in quickest way possible. The major vendors of

database software are Oracle database with same name and MySQL,

Microsofts SQL Server and IBMs DB2.

The co-founder of the company, has 15 plus of experience in

field of business information technology. For last 10 years he has

installed, configured, administered and supported more than

hundreds of databases for companies with more than billion dollars

in revenues and database sizes in terabytes. He is expert in

mentoring other less experienced data administrators and always

taken lead in solving most difficult technical problems faced by the

companies where he worked. Right now he provides part-time

consultations to three small companies who are not able to afford

full time database administrators. And this existing customer base

can provide the nascent company the potential customers and the

roots to grow from.

Market Segmentation

The database software is a very technical piece of software

which needs certain special technical expertise in installing,

configuring, securing and running them. Such expertise does not

come cheap. These experts who are called database administrators

command annual salary anywhere from $50,000 to $120,000. And

for SMBs hiring such experts is a big expense. And it does not make

sense for SMBs to have a full time experts on their payrolls when the

amount of work needed to be done is not sufficient enough to

occupy the experts all the time. What happens normally in a small

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sized company is that one of the full time programmers in their IT

staff takes up responsibility of doing database administration.

Occasionally such endeavors fall short, databases end up being

misconfigured, not tuned, less secure and unrecoverable. Such

companies can hire remote database administrators or our company

DbaTek.

The plan is also to target larger companies who need

temporary and sudden staff augmentation when their work load

increases suddenly depending on their business cycle. Some of the

large companies often find their staff on longer leaves and need

temporary assistance to fill the work load.

Mission

DbaTek's mission is to provide top notch remote Oracle

database administration at reasonable rates to its clients. DbaTek's

team of experts will be available 24 X 7 to support its clients so that

the database based IT functions which support the clients business

continue without hitch. Our experts will make sure that the

databases are installed, tuned and configured correctly. The experts

will be shared resources among many clients so that costs when

shared will be less for each client. As time passes, the company's

mission is to acquire more customers and grow experts and

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expertise to cater to the ever expanding field of database

technology and its customers.

OperationsThe company plans to employee three people in the start

and finish the year with additional five DBAs. The company first

employees will be secretary and salesperson. Salesperson will be

responsible in acquiring clients for the company's remote DBA

offering.

The founder will be the CEO. It the CEO will be responsible for:

1. Doing technical presentations to clients to assist salesperson

complete the sale.

2. Do technical work, the main offering of the company and

mentor other DBA staff.

3. Co-host promotional events with salesperson as required.4. Developing relationships with the clients to gain trust and to

further the company business.

The third person the company secretary will:

1. Handle all phone calls.

2. Provide assistance to the CEO and salesperson wheneverrequired.

3. Print all documentation for sales and invoices for billing.

4. Process invoices and payments. Run Payroll, accounts payable

and accounts receivable.

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5. Interact with all suppliers, vendors and customers.

The sales person of the company will:

1. Make cold calls to clients and maintain potential clients list.

2. Work as Oracle Partner to get business from Oracles customer

whenever they approach Oracle for help.

3. Make sales presentation to the clients.

4. Prepare pricing for client based on the size of work client is

going to offer.

5. Complete sales by getting customer sign the contract whichdetails all the work to be done by DbaTek.

The growth plan purposes hiring of 5 more technical staff or

database administrators (DBAs) at the end of the first year. The

additional staff of DBAs will hired for providing services to clients.

Delivery

The company plans to deliver its services through internet.

Secured Internet channels will be used to connect in-house database

experts to computer servers at client sites. This will allow the DBAs

to perform all database administration work without being physically

present in client premises.

There will be times when clients need the expertise on site for

couple of weeks at stretch. For such needs our experts will travel to

the client sites. If the client is in Pittsburgh area where will no

additional expenses charged to the clients but when our experts

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travel more than 100 miles, client will be billed for all expenses

incurred.

The company will rent fiber internet line so that client sites can

connected at faster speed and will allow our database monitoring

software to pick database specific events at all the client sites in

reasonable time.

The company will encourage its staff to develop standard

operating procedures of each of the database administration tasks.

Such SOPs could be used when the similar tasks are to be servicedagain. Some of these SOPs will be converted into blogs to be

disseminated on internet. Some of these bigger solutions will be

presented at higher level to company email subscribers for free.

Company believes that doing these consistently will keep company

in focus within the industry circles and will help company to show its

expertise and acquire more customers.

Resource Utilization

As per our calculations, we will have 5,040 and 13,400

available hours in years 2011 and 2012 versus 3,600 and 12,000

contracted hours. There are additional 720 contracting hours to be

sold each year. We will have 85.71% and 94.64% utilization our

DBAs time, table 1. This is a very good utilization rate. There are

720 hours available to do research and development to study new

developments in database industry and to develop new Standard

Operating Procedures for later use (or reuse). We assumed that a

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resource will be available for 2000 hrs a year and will have vacation

of 80 hrs.

Table 1: Resource Utilization

Year

TotalMonthlyHoursAvailable

DatabasesunderContract

HoursContracted

ExtraHoursAvailable

Contracting Hours

Utilization Rate

HoursAvailablefor R&D

2011 5040 0-70 3600 1440 720 85.71 72

2012 13440 100 12000 1440 720 94.64 72

Marketing Plan

The company plans to announce its launch in the Oracle

Technology day which Oracle conducts late January every year in

Pittsburgh downtown for the region. Around five hundred technical

managers and programmers from companies using Oracle

Technology around the area attend the event. The main feature of

the event is that Oracle allows technology vendors to set up booths

and to distribute pamphlets among the attendees. One of the things

vendors do is to have raffle for some popular personal usage

technical item like Ipad, Ipod, Wii. The raffle winner is picked among

the attendees who deposit their the visiting cards in the booth. We

plan to have Ipad as our raffle item. Oracle charges $5,000 for being

sponsor of the event. The give way Ipad will cost additional $500

and is sure to create most buzz about our company. 1,000

professional pamphlets will be $500 for this event and other futureevents. We estimate that we will collect around 150 cards which will

lead us to 50 potential targets. We think we will be able to bring in

8-10 clients out of 50 potentials. We also plan to co-host four of the

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many technology events Pittsburgh Technology council organizes in

Pittsburgh. This will require us to spend $2,000.

We also plan to have presence on Ariba.com, Guru.com and

Elance.com where SMBs usually seek technical service providers.

We believe that these web sites will give us wide exposure and allow

us to reach out to many customers. Usually these web sites supports

bidding methods to acquire projects and charge around 1% in

transaction fees.

We want to use the internet to advertise our company chiefly.Most of the companies needing technical services search for

providers on the internet or B2B sites such as Ariba.com. It will cost

us $2,000 a year for us to appear in top 20 Google search results in

mid US region and $1,000 in bing.com for same search results. For

$1,000 per year we can reach to 500 professionals related to

database technology in the popular professional network sitelinkedin.com. We are planning to double our internet advertisement

expenses to $8,000 from $4,000 in the second year.

We also plan to put advertisement of company launch in Oracle

magazine, computer world and Pittsburgh Technology Council. This

will costs us $5,000 for a small quarter page advertisement. Since

remote services can be provided to client anywhere, the

advertisement in Oracle and Computer World magazines will allow

us to reach customers from all over the country. Oracle magazine is

read bimonthly by .5 million technology mangers, programmers and

database administrators.

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We will be approaching to Oracle to become its technical

partner. This will give us credibility and if we are Oracle partner,

many times Oracle will bring customers to us, when customers ask

Oracle to give names of the companies providing database

administration services. From initial talks with Oracle we found that

it will cost us initially $20,000 to become partner and annual fee of

$5,000 to maintain the relationship.

Table 2 and 3 layout our marketing budget for years 2011 and2012. Figure 1 shows the same graphically.

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Table 2: 2011 Marketing Expenses2011 Marketing Expenses

Marketing Channel Description Costs

Event Sponsorship $8,000Oracle Technology DaySponsorship $5,000Raffle Gift $500

Pamphlets $500

Pittsburgh Technology CouncilEvents $2,000

Internet $4,000 Google Search $2,000

Bing.com Search $1,000

Linkedin.Com Campaign $1,000

Magazine $5,000 Oracle $2,000

Computer World $2,000

Pittsburgh Technology Council $1,000

Vendor Partnership $20,000 Oracle $20,000

Total $37,000

Table 3: 2011 Marketing Expenses2012 Marketing Expenses

Marketing Channel Description Costs

Event Sponsorship $8,000Oracle Technology DaySponsorship $5,000

Raffle Gift $500

Pamphlets $500

Pittsburgh Technology CouncilEvents $2,000

Internet $8,000 Google Search $4,000

Bing.com Search $2,000Linkedin.Com Campaign $2,000

Magazines $5,000 Oracle $2,000

Computer World $2,000

Pittsburgh Technology Council $1,000

Vendor Partnership $5,000 Oracle $5,000

Total $26,000

Figure 1: Marketing Expenses Charts for 2011 and 2012

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We are purposing 54% of our promotion expenses on

the partnership with Oracle in the first year and 19% in the secondyear. Oracle is the major supplier of database in the world and has

40% of world database market. Typically when Oracle is selling

databases to its customers the customers ask Oracle to assist them

in running the database software. But Oracle usually quotes rates of

$200 per hour for providing such assistance. When customers do not

agree to these high rates Oracle asks its certified partners to help

the client. We believe that it will be easier to get signed with clients

when they are starting to use databases. This will also result in long

term relationship if we provide high quality of database

adminsitration.

When SMBs acquire databases it means that their business is

stable enough and is generating sufficient revenues to support such

major expense of acquiring database technologies. This is a positive

point for our company, since we will be hooking up with the client in

their major growth or maturation stage.

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Administrative Expenses

Table 4 shows the administrative expenses in running the

company:

Table 4: Administrative ExpensesExpense Head Costs Type

Website $5,000 Annual

Monitoring Software $5,000

Office Rent $12,000

Telephone $1,200

Utilities $2,400

Fiber Line $3,000

File Server Lease $600

Visiting Cards $200

Total Annual $29,400$2450 per

month

Monthly $2,450

Employee Laptops $3,600One TimeCharge

Office LAN Setup $1,000

VOIP-PBX Setup $1,000

Hiring Expenses $12,000

Total One Time $17,600

There will be onetime expense of $17,600 to do initial setup in

the office to have it working and to be able to provide service to the

clients. We will be dealing with $29,400 in yearly administrative

expense to keep office running. This includes rent, utilities,

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telephone, and internet access. The suburban office space we are

planning to book has furniture, lights and security included in the

rent.

Staff and Salary Structure

At the end of year company plans to have following staff of 8

persons with the salary structure shown in table 5.

Table 5: Salary ExpensesStaff FunctionalArea Staff Position

AnnualSalary Commission

Management CEO $120,000

Technical

2 Mid-levelExpert $160,000

Technical

4 JuniorExpert $200,000

Sales Sales $20,000 $70,000

Administrative Secretary $30,000

Line Totals $480,000 $76,800Grand Total $556,800

Our offices will be in suburbs and hence we will be able to hire

DBAs at reasonable costs. We are going to offer $80,000 per year to

midlevel DBA. Such DBA has 4 to 6 years of industry experience.

Junior DBAs will be offered $50,000 and would require 2 to 4 years

of experience. By having a mix of highly experienced and highly

motivated DBAs we will be able to keep costs down.

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Fixed and Variable Costs

In this business the Fixed Costs are very low and the

Variable costs are very high in normal mode of operation. Eachperson hired generates revenues as well as expenses. For fixed

costs we have CEO, Sales and Secretary along with office and

marketing expenses. For variable costs we have DBAs. The

Salesperson will be partially variable since there will be 8%

commissions on the contract amount signed. The details are listed

in table 6.

Table 6: Fixed and Variable CostsFixedandVariableCostsbyYear

Year Fixed Costs Variable Costs Total

2011 Office Setup $17,600Office Annual $29,400MarketingExpense 37000VisitingCards 200

CEO 120000 Midlevel 80000

Secretary 30000 Junior 37500

Sales 20000SalesCommission 23040

Total Fixed$254,20

0TotalVariable $140,540 $394,740

% 64.40 35.60

2012 Office Annual $29,400 29400MarketingExpense 26000

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VisitingCards 200

CEO 120000 Midlevel 160000

Secretary 30000 Junior 200000

Sales 20000

Sales

Commission 76800

Total$225,60

0TotalVariable $436,800 $662,400

% 34.06 65.94

For the first year we will have $254,200 in fixed expenses and

$140,540 in variable expenses, with percentages of 69.4% and

35.6% respectfully. And in the second year we have situationreversed. There will be $225,600 (34%) in fixed expenses but

variable expenses will be $436,800 (66%). This is the direction we

want to take low fixed cost and high variable costs.

DbaTek Offerings and Pricing Structure

The company plans offer simple rate plan initially. The customerwill be charged very competitive pricing of $800 per month per

database. The database size will be maximum 250 GigaBytes. The

company will also set aside 10 hours per month for six technical

people or 720 hours for the year for temporary DBA consulting work.

For monthly subscription of $800 per database, we will do

following:

A. Initial Database Setup:

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1. Understand client requirements and help client on

database licensing.

2. Install Oracle Database software.

3. Analyze hardware (or servers) at the client site.

4. Create Database and setup configuration for a properly

tuned as per the hardware available.

5. Set up proper backup schedule.

6. Apply industry standard security procedures to secure

data in the client database.

B. Regular Database Administration:

1. Company promises to provide 120 hours per year or 10

hours monthly of consulting and work for client databases.

2. Company will perform monthly health check and capacity

evaluation.

3.One of our experts will always be available on call to handleany breakdowns. Any database issues which are stopping

any business at client site will be resolved in 4 hours.

4. Our experts will help client tune the application code being

run on the databases.

5. Client databases will be connected to our in house database

monitoring systems to make sure client databases are

performing as expected if not our experts will resolve

problems proactively.

6. We will keep close eye on the daily data backup process to

make sure client never suffers any data loss.

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7. We will perform any data recovery from backup if there is

data loss at the client site.

8. We will upgrade the databases to the new versions as

vendors keep releasing the database versions.

Expected Earnings Schedule

We have drawn up plans for two years of expenses and

revenues. Our approach is very conservative and reasonable. We

estimate that it will take 3 months to acquire few customers who will

hire us to support at least 10 databases with potential earnings of

just $8,000 per month. By the end of 2nd quarter we plan to start

supporting 40 databases with an eye to the earnings of $32,000 per

month. Next quarter or at the beginning of October, we expect to

support additional 40 databases. We expect to end the year

supporting 70 databases with total revenues of $56,000 per month.

In our first year of operations, we are budgeting $394,740 inexpenses and $345,600 in revenues with a net loss of $49,140.

Our plan is to support 100 databases beginning next fiscal

year. If we were to maintain the customer base with 100 databases

and were not to get any additional databases, we are expecting to

end the 2nd year with revenues of $1,017,600 with $662,400 in

expenses, resulting in gross profit of $355,200.

In first two year of operations we are expecting total profits of

$306,060 as detailed in complete break even analysis in the table 7.

Table 7: Break Even Analysis

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Year Month Expenses

CumulativeExpenses

Revenues

ConsultingRevenues Cumulative

Revenues Gross Profit

2011

Pre-Start $17,600 $17,600 0 $0 -$17,600Jan $42,617 $60,217 0 4800 $4,800 -$55,417Feb $18,817 $79,033 0 4800 $9,600 -$69,433March $17,617 $96,650 0 4800 $14,400 -$82,250April $24,923 $121,573 8000 4800 $27,200 -$94,373May $25,923 $147,497 8000 4800 $40,000 -$107,497June $25,923 $173,420 8000 4800 $52,800 -$120,620July $31,010 $204,430 32000 4800 $89,600 -$114,830August $32,010 $236,440 32000 4800 $126,400 -$110,040Sep $30,010 $266,450 32000 4800 $163,200 -$103,250

Oct $42,763 $309,213 56000 4800 $224,000 -$85,213Nov $42,763 $351,977 56000 4800 $284,800 -$67,177Dec $42,763 $394,740 56000 4800 $345,600 -$49,140

2012 Jan $64,017 $458,757 80000 4800 $430,400 -$28,357

Feb $57,217 $515,974 80000 4800 $515,200 -$774March $55,017 $570,990 80000 4800 $600,000 $29,010April $55,017 $626,007 80000 4800 $684,800 $58,793May $55,017 $681,024 80000 4800 $769,600 $88,576June $55,017 $736,040 80000 4800 $854,400 $118,360July $54,017 $790,057 80000 4800 $939,200 $149,143Aug $55,017 $845,074 80000 4800 $1,024,000 $178,926

Sep $53,017 $898,090 80000 4800 $1,108,800 $210,710Oct $53,017 $951,107 80000 4800 $1,193,600 $242,493

Nov $53,017$1,004,12

4 80000 4800 $1,278,400 $274,276

Dec $53,017$1,057,14

0 80000 4800 $1,363,200 $306,060

Break Even Analysis

Figure 2: Break Even Chart

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We are expecting to break even by the end of March,

2012 when our cumulative earnings will be $600,000 againstexpense of $570,990. There will be net cumulative loss of $774 at

the end of Feb, 2012. So within one year and three months of

operation the business will be in black, see figure 2.

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SWOT Analysis:

Strengths:

1. The founder knows ins and out of databaseadministration.

2. The founder is expert in building and maintaining

relationships with clients.

3. The founder is good in hiring other exports, a function he

has performed at the companies he had worked for.

4. The company offering has been identified and the clients

whom company will target are segmented.

5. There is list of three potential companies who can be

converted to potential clients.

6. The founder is good in identifying and learning new

technical trends.

7. The CEO has created hundreds of reusable standard

operating procedures in his field, so that they need not be

rediscovered again, thus saving valuable time.

8. The plan is a reasonable with less risk.

9. The capital requirement is less.

Weaknesses:

1. Right now only three potential clients. There are no

promises that these companies will give contract to the

new company.

2. There is too much reliance on the founder and CEO.

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3. The list of offerings, at market competitive prices, need to

expanded and solidified.

4. The start up plan is less aggressive.

5. The new clients might not give business to the company

since it is new.

6. The marketing plans needs to be developed.

7. As company keeps acquiring more customers, the

company needs to keep hiring database administrators

else company will loose business.

Opportunities:

1. The amount of data stored in corporations is growing at

phenomenal rates. The data stored in databases is

growing at the rate of 21% and unstructured data (data

not stored in databases) is growing at 60%.

2. As per one of the tecnology surveys, Small and Mid sized

Businesses worldwide will spend $800 billion on IT in

2010. This is increase by 5.4 percent over 2009 spending

levels.

3. SMBs are looking for ways to reduce IT costs and reducing

costs is becoming more important in the declining

economy, as those who reduces costs most now will be

found riding the next economic boom.4. SMBs want to improve employee productivity. Outsourcing

database administration work to expert will improve

employee productivity as employees will be focus on IT

work improving business productivity and efficiencies.

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5. The CEO knows first hand how lacking other companies

are in terms of database expertise.

6. There is good chance of finding good experienced

salesperson in this economy ready to work for a start up.

7. Many large companies need to hire expertise temporarily

when their staff is on prolonged leave or there is sudden

burst of work due to business requirements and the new

work load can not be handled by existing staff.

8. The purposed billing rate is less compared to other

competitors.9. Small companies find difficult to outsource as the well

trenched outsourcing vendors are not interested in small

accounts.

10. Many of these companies do like to keep data with

themselves in their own computer servers in their own

servers due to various reasons instead of renting

computer server, databases and application software.

Threats:

1. There are well established companies providing remote

database administration.

2. It is difficult to acquire and retain good technical staff.

3. Outsourcing is always hanging like Damocles's sword.4. The new development in Software as Service could do

away with clients needing to keep data in the computer

servers in their premises. As SAS becomes more popular,

companies will not be managing databases in their sites.

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5. It will be challenge to keep staff working at the company.

6. Internet and B2B sites allow clients to reach out to other

providers in an instant.

Competition Analysis

There are hundreds of companies providing similar services.

Our strength comes from the expertise we have and the competitive

rates we are going to charge to our clients. Since data storage and

processing industry is growing at explosive rates, the environment

allows many companies to exist at same time.

In Pittsburgh area there are three companies providing same

service. They are Tier-1, Contemporaries Technologies and

DbaZone. From our interactions with these companies we have

found that they have 200, 55 and 20 DBAs respectfully. With around

300 people in staff, we think that these companies are spending

around $2.4 Millions in salary (300 experts with $80,000 per person

on average) with approximate revenues of $5-$10 Millions. These

are companies among whom we will also compete for good DBAs.

Price Elasticity and Demand

We have established that there is good demand for remotedatabase services. The industry has become very competitive so it is

market which determines the rate. If we charge too less then we will

pay our staff less, which then means that our staff will leave and we

will have no product to deliver. If we charge very high then no SMB

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clients will sign with us. These factors result in narrow range of price

we can charge for providing general database services. Our aim is to

enter into market making profit in reasonable time and later get into

more advanced lucrative offerings.

Future Growth Plans

This business is dependent on experts on payroll. More

customers on board, means having bigger staff. We have shown a

successful model where 30% in gross profits could be realized. The

company plans to initiate revenue sharing with its staff to lure them

and keep them satisfied. It will be absolute necessary to keep the

staff happy since losing any employee any time will leave few clients

under served and the existing staff have to pick up the slack.

If such revenue stream could be maintained then company can

sign up more customers and expand into other offerings. The other

offerings could be managing other database technologies such as

Microsoft SQL Server and maintaining software applications such

ERP.

For next five to six years providing database support will be

considered cash cow as it very lucrative. As vendors advance the

database technologies there are good chances that database will

need less human expertise but that will get offset by number of

features and technical complexities to be managed.

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We are also planning to offer augmented database support

where we will support advanced high availability solutions for $1500

per month per database. This needs to be worked out and we

believe that this will be even more lucrative.

Global Market Strategy

We will consider global expansion in year three of our

existence. Since our business is remote database administration we

dont need to have physical presence in the foreign country.

Primarily, we will keep advertising in search engines Google and

Bing.com, and professional networks such as linkedin.com

Once we acquire two or three clients in a particular country we

start participating in trade or technology shows in that country. For

this we will hire a local marketing firm to handle the advertizing for

us, because they would know the methods or approach that would

appeal to the local companies.

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The 4PsThe 4Ps listed below are the main summary of our marketing

plan:

Product

We are going to offer remote database support service as main

offering. This will be augmented by adhoc consulting and advance

support.

Price

We are going to charge very market competitive rates of $800per database per month. Typically client needs to hire one full time

person at $80,000 to support 5 databases. With our offering, client

have to spend $48,000 and will have access to a bigger expertise

pool.

Place

We are going to market ourselves using internet, trade shows,

person to person referrals and B2B platforms.

Promotion

We are going to support technology events in the area to have

our presence felt. And in small way our small raffle is sure to

generate buzz for our company. We will use search engines,

professional networks and trade shows to promote ourselves.

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List of Tables and Figures

Table 1: Resource Utilization...............................................................................................................9

............................................................................................................................................................11Table 2 and 3 layout our marketing budget for years 2011 and 2012. Figure 1 shows the same

graphically..........................................................................................................................................11

Table 2: 2011 Marketing Expenses....................................................................................................12

Table 3: 2011 Marketing Expenses....................................................................................................12

Figure 1: Marketing Expenses Charts for 2011 and 2012...............................................................12

Table 4: Administrative Expenses......................................................................................................14

Table 5: Salary Expenses...................................................................................................................15

Table 6: Fixed and Variable Costs.....................................................................................................16Table 7: Break Even Analysis............................................................................................................19

Figure 2: Break Even Chart..............................................................................................................20

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