Executive Summary

Running head: EXECUTIVE SUMMARY

Executive Summary
Kevin Cavanaugh
Embry-Riddle Aeronautical University

I.

Executive Summary

Our mission is to provide the customer advanced computer products tailored to their
needs at a very low cost backed with excellent service and support. Galaxy Inc. recently
launched four new computer products into three different markets. Our plan started with
testing how much penetration can be achieved in the largest potential market segment. Then
later expand to other market segments over seven quarters. With 7,751 potential customers,
we opened the first market in Paris to the workhorse segment. This was done with Galaxy
Incs first brand, the Titan 1. This computer offers many features tailored for the workhorse
segment at a very low cost. The next biggest market for the workhorse segment, New York,
was opened in the third quarter. A new product was introduced as well with more features
and still at a very low cost to the customer. This was the Titan 2 and it has shown more
popularity than its predecessor, the Titan 1. The Titan 2 was later upgraded to the Titan 2Plus
which was an even greater success due to its upgrades. In order to penetrate the other markets
and turn more potential customers into real customers, two new brands were created targeting
the Mercedes and traveler markets. The Florin came first in the fifth quarter. This is Galaxy
Incs biggest success. We have profited over 1.8 million dollars with this brand alone over the
course of three quarters. This was marketed toward the Mercedes segment and heavy
advertising was put in place with this product. In the sixth quarter came our second best
brand Galaxy owns. Its the Litebook. Marketed toward the traveler segment, it seems to be
profitable in the Mercedes segment as well. This brand was introduced along with our new
market, Toronto. We currently plan on opening up the last market in Tokyo as well as
introducing four completely new brands. If we penetrate the markets successfully with four
new products as well as our existing ones, we have the potential to at least triple our

profitable income. We can take this income to spruce up advertising. We will hire more sales
workforce. Once our best products turn into cash cows, we then introduce more products
and try and force competitors out.
II. Description of Business and Industry
Galaxy Inc. is a new competitor in the crowded computer manufacturing business
founded three months ago. We are focused to provide quality products designed for the
consumers at a better price than our competitors. We currently have four products designed to
penetrate the workhorse, Mercedes and traveler markets. Our current operations are in Toronto,
New York and Paris.
Titus 1 was our first product to hit the market with plans to target the workhorse
segment. With the workhorse segments potential demand at the highest, it was only logical to
start the first product off in a market with more potential customers. The Titus 1 computer offers
the workhorse segment office productivity with high performance computing power at cost of
$2,400 with a rebate incentive of $100. This product was marketed to Paris because of a high
potential demand of 7,751 possible customers. Paris was opened with four sales personnel to test
the market. Two were dedicated to service and support with the other two focused on our primary
market, the workhorse.
A new version of our first product, the Titus 2, was manufactured to better suit the
needs of the customer. Changing features slightly, the Titus 2 remained the same cost as Titus 1
and the market segment was still focused on the workhorse. A Titus 2Plus re-design was later
implemented to improve target market effectiveness. A New York branch was opened with the
new product to try and penetrate another high demand market segment.

Another new design came with the Florin. This new product was a complete redesign to target more of the traveler market segment. Its slim, rugged and ultra fast computing
style was more appealing to Mercedes customers and also a small portion of traveler customers.
This product was designed to broaden focus on more of the markets and gain more customers.
Our latest design is the new Litebook. This product is design to target the last
segment of the market, the traveler segment. It has shown success with 90% brand judgment
with the traveler segment. Its low cost portability with ultra fast computing power has shown
much success among customers. Alongside our latest product we have opened up a third branch
in Toronto. This market has the third highest potential demand out of the four possible markets.
Galaxy Inc. has a one hundred percent customer driven marketing strategy. We
have studied all surveys from the customer and tried to fit what that specific segment wants into
our computer products. After putting the product out into the target market we then analyze what
the customers respond with. If the majority of our customers are not satisfied, we then try and
change the product to better suit them. If that doesnt work we try a completely new design. This
can be seen with our first three product designs.
A SWOT analysis of Galaxy Inc. has been created to evaluate the company as a
whole and expose our strengths, weaknesses, threats and opportunities. We will start off with
some of our strengths. Galaxy Inc. has already established itself in three out of four markets. We
currently have four products available to consumers targeting all market segments. We offer
lower cost products than our competitors. Our products also have most of the same features if not
more than our competitors. Our weakness though is we are in need of a larger workforce. We
currently only have twelve total workforce personnel spread evenly across three world markets.
Our competitors have much more than us. Galaxy is also in need of more brand advertising. We

are currently allotting twenty percent of our gross income to advertising. Although this is high,
our competitors are advertising more and gaining a bigger market share. Next we will discuss
Galaxy Incs threats. One of our only main threats is customers are showing better feedback on
some of our competitors products. We do have some opportunities at Galaxy Inc. One of our best
things is we have a steadily increasing profit. In quarter two we were at $-280,319. By the third
quarter we rose to $363,617 and by the end of the sixth quarter our cumulative net profit was
$8,208,325. This is a result of our growing positive feedback on most of our products in the
world market. This is summarized in the figure below.
SWOT Analysis
Strengths
Already established in 3 of 4
markets.
Low Cost Products
Competitive Products
Opportunities
Great feedback on most products in
the world market
Growing Profitability

Weaknesses
Need larger workforce
Need to push more advertising
Threats
Competition showing better feedback
in some markets

III. Market Opportunity Analysis

Overall demand for all of Galaxy Incs products ended in the seventh quarter with
4,803. Competitors total demand went from 7,259 at the highest to 4,209 at the lowest demand.
All products had a rise in demand from the inception. The Titus 1, the first computer product
created, saw a steady decline in demand after the fifth quarter thus showing the end of its sales
life cycle.
The markets tested were Toronto, New York and Paris. Paris was opened in the
second quarter for its high potential demand. This market had the highest potential demand for

the workhorse segment and our Titus 1 computer product was marketed with this segment in
mind. Still trying to market to the workhorse segment with Titus 1 and Titus 2, New York was
opened because of its second highest potential demand. Paris and New York remained our sole
markets until the sixth quarter. Toronto was then opened in order to take advantage of the
Mercedes market with the new Florin computer.
Galaxy Inc. strides to provide the customer with products that create solutions for
their problems. Our products are built to give the customer what they want. Customers seek a
good product to fit their individual needs as well as good product support. We put an emphasis
on support by allotting more personnel to customer service and support.
Growth rate and profits have shown a steady increase. With that said, the future is
looking profitable. With the inception of our revisions of computer products, growth can be
increased at a faster rate.
According to the world market brand judgment the Florin fits the customers
profiles the best. Out of all competing products in the Mercedes segment, The Florin is second
best. Galaxy Incs Litebook comes number one for brand judgment in the traveler segment. The
Titus 2Plus has an average judgment from consumers and the Titus 1 has the lowest judgment
out of all Galaxys products. Titus 1 and Titus 2Plus were among the first products created so its
only expected that its popularity slips as it gets older. Our products do fit the target markets
profile. Our most recent additions fit the profile better, but our older products are still being sold
and profitable.

The first chosen segment to market the Titus 1 was Paris. With Paris having a potential
demand of 13,858 total and 7,751 in the workhorse segment, the Titus 1 was a good match for
the big market. New York being the biggest total market and second biggest for the workhorse
segment, it was a good market for the Titus 1 and the new Titus 2. This market had 15,749 total
potential customers and 7,194 potential customers in the targeted workhorse segment. New York
also has the highest potential demand in the Mercedes and traveler segments which was needed
for the upcoming Florin and Litebook. Toronto was the latest market to be opened. Although
there are only 1,936 potential customers in the traveler segment and 2,356 potential customers in
the Mercedes segment, Galaxys has more products targeting the workhorse segment.
Price sensitivity for the world market has been favorable with all products. The Mercedes
segment was always one hundred percent positive with all pricing on all products. The traveler
segment was insensitive as well. The Litebook, being Galaxys most expensive product, saw
slight sensitivity to the traveler segment. Still a good return, the traveler segment dropped to 98%

judgment with the Litebook. The most sensitive to price fluctuation was the workhorse segment.
This segment is looking for a product in the price range of $2,700 or cheaper. As Galaxys
products became more elaborate and expensive, popularity in the workhorse segment declined.
Although price was Galaxys primary focus, there may be a shift to performance
emphasis in the near future. The workhorse segment was Galaxys initial test market and focus,
but after the seven quarters profit shows the performance side of the house needs to be exploited
more. Titus 1 was our cheapest product while the Litebook was the most expensive at $3,300 and
$2,700 respectively. The Titus 1 had a total profit of $286,458 in quarter seven while the
Litebooks profit was $1,622,474. The Florin, priced at $3,200, showed a profit of $1,865,351.
Performance and price go hand in hand but profit shows performance should be more important.
In the seventh quarter Galaxy Inc. has shown a total of 4,803 total units sold. The
majority of those were from the Florin at 2,315 total units sold. Galaxy Inc. has done best in the
Mercedes market. It has shown a twenty five percent market share. Twenty percent in the
workhorse market segment and eighteen percent in the traveler segment.
We have three main competitors, Ideal Solutions, GBC and BN Technologies. According
to market share and market demand Ideal Solutions is targeting the workhorse segment, GBC is
targeting the Mercedes segment as well as BN Technologies. Our competitors have numerous
strengths and some weaknesses that can be explored. Ideal Solutions has a very large grasp on
the workhorse market segment. At 49.2% of the market share, Ideal Solutions has good
momentum with the workhorse market. GBC has the largest market share with the Mercedes
segment and the largest market share overall. GBC also has the largest sales workforce and the
most products available. BN Technologies also has a large workforce to promote sales and

services. The biggest weakness for all competing companies is none seem to be focused on the
traveler segment. Ideal Solutions also has a small number of brands for sale.
Ideal Solutions will likely push the workhorse segment. They are currently at 49.2%
market share, this would be the most likely path. GBC will most likely stick with an average
approach by trying to penetrate all market segments evenly. BN Technologies will most likely
stay away from the workhorse segment and stick with the higher end products. If we at Galaxy
Inc. try penetrating the Mercedes and traveler markets more, we may see competitors follow if
we are successful.

IV. Marketing Plan and Sales Tactics

The initial market segment Galaxy Inc. was targeting was the workhorse segment. This
was due to the high potential sales in that segment. Currently Galaxy Inc. is looking into
targeting the traveler and Mercedes segments more. This is due to a high profit margin and high
potential profit. The workhorse segment needs to be redefined. We need to re-invent our products

targeting this market to better suit the needs of the customer. Galaxy Inc. needs to get a better
footing in this market segment. We need to market our Florin product to the Mercedes segment
more aggressively. This is our biggest market share and we should create more products to
penetrate the market deeper. The traveler market segment is the un-touched territory. Although
our Litebook is doing well in this market, another product should be created to take a hold of this
segment.
The workhorse segment was the number one goal due to its sheer numbers. The goal is to
still penetrate the segment deeper and have more emphasis placed on the Mercedes and traveler
market segments. This will give us a bigger bottom line profit and help get a better footing in the
overall world market. We plan to have our initial focus on the Mercedes market segment. This is
because it is our biggest money maker. Second will be the traveler market. This market segment
has the highest potential, in respect to competitors targeting the segment, and it is also our
second biggest profit maker. The workhorse market is still in there even though this seems to be
the least profitable with Galaxy Inc. and competitors alike.
Computer products are Galaxy Incs business. The Florin is at its core. This is the biggest
profit maker of all products Galaxy sells. The Florin has currently profited 1.865 million dollars.
Our second most popular product is the Litebook. This has gained Galaxy Inc. 1.622 million
dollars. The Florin is designed to be a performance king designed for the Mercedes segment
while the Litebook name says it all. It is a portable, rugged and fast, computer designed
especially for our traveler market segment.
We are trying to create a quality brand that suits our customers lifestyle. With better
support and better products we are different from our competitors. We are a brand that wants to
be loyal to the customers to turn initial customers into repeat customers. Our brand is backed by

hard work, service and support to keep us in the front of the line. We want to be the best in the
market so our customers can see the quality in not only the products but the company as well.
New products are in the near future for Galaxy Inc. In order to penetrate the targeted
segments more, we will need new technology. We plan to research and create three new
computer brands. There will be one new brand for each segment. Based on what we have learned
with past products, we will build on what we have learned and what worked in each segment. Its
estimated that research will take roughly a complete quarter. A second quarter will be required
for development and testing before the product is introduced into the market.
Pricing is very important for our company. Being a computer company we create
products that others can produce as well. We have many competitors and the possibility of more
competitors entering the market is likely. Having said that, market-skimming is an inadequate
approach to pricing strategy. For us, market-penetration pricing is our best approach. We set the
price low to penetrate the market deep and fast. This gives us a high potential of many customers
in a short amount of time. Galaxy Inc. plans to keep this strategy to help us get ahead of the
competition. Our profit margins range from $286,458 up to $1,865,351. Our Titus 1 is the least
profitable while the Florin is doing the best. The Titus 2Plus is doing significantly better than its
predecessor at $1,206,452. The Litebook is second best at $1,622,474. Galaxy Inc. has the lowest
prices and highest price judgment of all competitors overall. We are trying to keep cost down and
prices even lower. All markets have been price sensitive to an extent, mainly with the higher cost
competition. All market segments have shown what price range they are looking for. As prices
rose in the workhorse segment from about $2,700 upward, we saw a significant change in price
judgment. The same was experienced with the other two segments but at a higher price. With
Galaxys brand being priced very low, we did not see much fluctuation in judgment.

Advertising will see some changes in the future. Our company needs to re-adjust our
funds to better suit the biggest potential profit makers. We are currently spending $57,712 on our
most profitable product. Thats thirty three percent of the gross margin for that specific brand.
We should lower that number slightly and allocate more funds to different segments. Galaxys
overall gross margin is at $5,249,064 and $268,329 is being spent on advertising. That shows us
spending twenty percent of our gross margin on marketing all products. Although this is slightly
higher than the recommended amount, the competition is spending much more on advertising so
we need to keep up. Galaxy Inc. brands message is great products at very low prices. We use
rebates as part of the promotion plan and will continue to implement them. Our most profitable
product also has the largest rebate. More people are attracted to a large rebate on an already low
priced product, which in turn gives us more customers. We will continue to send out an honest
message to customers and strive to be on top.