practices (Muslims & Hindus) or habitual However, the cash flow of operations

routines associated with the cultures of
their home countries (India, Europe, parts
of Asia, etc.). Thor Bidet Inc. has identified
approximately \
Bidet in the first year and grow it to 65,457
units by the end of the second year. The
cost structure is variable because the
companys core competency is in
identifying the opportunity, directing the
designing of the products, marketing, and
co-ordination with the vendors and
customers. Thor Bidet Inc. has outsourced
the manufacturing and warehousing.
Furthermore, Thor Bidet Inc.s economic
model operates on high margins and high
volume with two revenue drivers and low
operating leverage.
become and remain positive in Q2 of year
1.
1.2 FINANCIAL NEED
The company is asking for $200,000 from
investors in return for 14% equity. The
investor will also get voting rights and seat
on the board. Thor Bidet Inc. will buy out
the investor for $1,000,000 or 5x their
initial investment at the end of year five.
After analyzing the financial needs, the
company plans to use the money from an
investor for marketing, initial purchase
orders, and R&D (product design) over a
term of five years.

1.1 FINANCIAL HIGHLIGHTS

Thor Bidet Inc. will break-even at 28,843

units bringing in a revenue of $810,844.94
in 9 months. In their respective launch
years, the total market potential for the
Thor Bidet is 1.3 million buyers, while the
market potential for the Poseidon Bidet is
4.6 million buyers. The company has
calculated a sales potential target for the
Thor Bidet of 2% in the first year that builds
to 9.6% by the fifth year. Since the
Poseidon Bidet has a larger market
potential the company has created a
conservative estimate of first year sales
potential of 1.5% and plans to achieve
2.73% by the end of the third year of sales.

The profit margin of the company is

between 18.88% and 30.94% from year 2
onwards. The return on equity has an
exponential increase from 115.78% in year
2 to 749.67% in year 5.

The company has a negative cash from

operations ($17,598) in the first year. The
burn rate of the company is 136 months.

Page | 1
2 COMPANY,
CONCEPT, &
PRODUCTS

2.1 THE COMPANY AND CONCEPT

Thor Bidet Inc. will be formed as a C-

Corp., based in the state of Delaware
and will commence operations in May
2017. The founding team consist of five
individuals: two from India and one from
Pakistan, Kosovo, and the United States.
Each brings with them a diverse breadth
of cultural and experiential learnings
being from unique backgrounds. All
members are business students, with
two of them specializing in
entrepreneurship and marketing, one in
entrepreneurship and sustainability, one
in supply chain analytics and one in
finance & analytics.

The concept was discovered when the

team had to come up with a potential
viable business idea for their capstone
project. The founding members explored
their personal pains they faced, and
honed in to the concept at hand when
they realized that four of them face the
same pain, being an international
student in the United States.

According to PewResearch, there are

approximately 2.5 billion people in the
world, for whom the norm is to use a
bidet or other water source to cleanse
after a visit to the restroom. The reason
for using water is both cultural and
religious. These individuals face
tremendous discomfort when they travel
to parts of the world where the norm is
to use toilet paper, since the majority of
bathrooms in the US are not equipped
with bidet fixtures for cleaning with
water. There is a niche market of
approximately 1.5 million students that
are in the US from these regions that
face this issue with an additional influx
of approximately 350,000 new students

2|Page
each year (IIE). These students live in
rented properties or college dorms
where they cannot legally customize the
bathroom faucets to their liking and thus
find themselves in a conundrum. Thor
Bidet will alleviate this pain for the
individual, by providing a semi-portable
bidet which can be filled using a
standard tap in a bathroom. By
conducting primary market research the
company has identified convenience of
use, high pressure, water quantity, and
price as the critical factors. Thor bidet
exceeds its competition in each of these
aspects and has been engineered to
spray with enough pressure that will
enable the user to complete the
cleansing process satisfactorily and
without unfitting use of their hands. The
Thor Bidet also provides the customer
feeling completely hygienic and,
therefore, more confident.
2.2 THE PRODUCT
The Thor Bidet is a semi-portable bidet
system with a handheld sprayer that
provides highly pressurized water
through a flat fan jet nozzle that will
optimize the use of water by creating a
triangular spray pattern mimicking the
jet sprays used in a carwash. This will
make less water achieve the same
cleanliness results as other nozzles that
spray out streams. The purpose of the
bidet is to give the consumer the feeling
of being clean and hygienic. Thus, they
can go about their days in complete
comfort and with the utmost confidence.
The primary user for the Thor Bidet are
individuals from the 55 countries listed
in Exhibit B, where it is customary to
clean with water due to religious
practices (Muslims & Hindus) or habitual
routines associated with the cultures of
their home countries (India, Europe,
parts of Asia, etc.). Using toilet paper as
an alternative does not give this market
the same satisfaction as they get when
they use water. When these individuals
travel to areas where the norm is to use
toilet paper they find themselves in a
predicament and experience discomfort.
Our target market is these
individuals/students that have recently
arrived and are feeling the pain of the
change in cultural norms. Currently Thor
Bidet Inc. is focusing towards two bidet
systems; the Thor Bidet and the
Poseidon Bidet. The Thor Bidet is
designed to be used in home toilets as a
semi-portable bidet, with a handheld
sprayer system, while the Poseidon Bidet
will be compact and portable, which
individuals can conveniently carry in
their school bags, briefcases, or large
handbags whenever they leave home.
2.3 ENTRY & GROWTH STRATEGY
For the first two years, Thor Bidet Inc.
has chosen a market penetration
strategy that is based on targeting
specific university student bodies, due to
the large concentration of identified
customers (Exhibit B). This strategy is
two pronged where the company will
market directly to the consumer through
online channels and also initiate a B2B
channel with the international student
centers of these select universities.
Thor Bidet Inc. plans to first target the
niche market of students coming into
the US from these countries. As a new
body of international students come to
the US each year, demand increases
each year as well. As students tend to
join their national or religious student
unions, these organizations can be used
to target potential customers. As the
Thor Bidet has high emotional value,
word of mouth plays a crucial role in
sales conversions, as new students tend
to ask the older students for guidance.
For the B2B channel, Thor Bidet Inc. is
confident that the selected institutions
will be inclined to bulk purchase bidets
to give to their incoming batch of
international students, easing the
students transition into the US. The
3|Page
companys research shows that the
universities are actively involved in
trying to make the transition of
international students as comfortable
and as smooth as possible.
In the third year, the brand would have
established a reasonable presence
amongst its customers; Therefore, the
company plans to expand its marketing
efforts to all international students in the
US who fit Thor Bidets segment and
concurrently will be launching its second
product called the Poseidon Bidet.
Thor Bidet Inc.s plan is to focus towards
a steady growth, rather than an
explosive, exponential one. This will help
Thor Bidet Inc. create a strong brand
presence and thus become synonymous
with the solution for the target market.
This brand recognition should act as a
barrier to entry while Thor Bidet Inc.
keeps on innovating and optimizing its
products in correlation with customer
needs.
3 INDUSTRY
ANALYSIS
3.1 SUMMARY
NAICS Code for the portable bidet
industry is: 322291 Toilet paper
manufacturing.
There is currently no industry for this
particular product, therefore Thor Bidet
will have to create market space by
competing with toilet paper. Despite
being a completely different product,
Thor Bidet serves the same purpose and
will therefore directly compete as an
alternative. This particular market within
the industry is premature with very few
options available in United States, but
the industry as a whole is large and
mature.
Despite an average of 350,000 students
coming in from target countries that use
bidet as part of their culture, there is a
lack of a bidets for them as most
buildings in United States do not include
bidets in their infrastructure. The
industry is therefore constructed mainly
by paper towels and other portable
bidets that include plastic air-pumped or
battery-functioned portable bidets,
which are essentially the only two
alternatives available. In addition,
neither of these options meet the
demands of its target market primarily
due to a lack of water pressure.
Culturally, most of the rest of the world
use bidets. However, Muslims and
Hindus are the main protagonists, as it is
religiously required and therefore a
necessity. In the US, the only alternative
they can find is toilet paper, hence the
industry, with portable bidets not even
having its own industry.
3.2 SIZE & GROWTH RATE
The toilet paper industry is large and
mature, with 317.77 million people
reported to use toilet paper in US, at an
average of $118.98 per consumer,
making it a $37.8 billion industry.
However, 3.3% of the population in
United States is considered to be Muslim
or Hindu3. Therefore, the relevant share
of the industry would be worth about
$1.25 billion. Furthermore, there was a
20.6% growth of this industry between
2007 and 2015. (Statista)
In terms of Thor Bidet Inc.s strategy,
there is a spacious opportunity due to
most people using a product that is well
perceived to be less effective and
hygienic, especially for people of Muslim
or Hindu religion. That part of the
industry is therefore in its early stage.
4|Page
3.3 STRUCTURE
The portable bidet part of the industry,
specifically, leaves a lot to be desired.
There are currently three main players:
Bio Bidet Palm Travel, Brondell GoSpa,
and Blue Bidet. According to a market
research survey conducted for this
product, none of the current alternatives
solve the needs of the current target
market due to lack of pressure and
convenience. As such, neither of the
current players have a strong position,
with most of the target market currently
using standard water bottles to fulfill
their needs.
Market research also showed that price
is not the main factor. Instead,
convenience and pressure of the water
supply is considered key. As such, it is
important to ensure that the product
completely meets the demands of the
target market in order to capture it.
However, the products purpose sets it
as a direct competitor with toilet paper
products. The two products will be
fighting for the same clients, making
them substitute products.
The toilet paper industry is substantially
concentrated, with Kimberly-Clark,
Procter & Gamble, Georgia-Pacific,
Svenska Cellulosa Aktiebolaget and
other private label manufactures all
capturing a significant share of the
market (IBISWorld).
3.4 KEY TRENDS
The portable bidet market is a new trend
in the US. The development of the
perfect product would position the
company in a strong position to maintain
and grow, especially as the bidet
industry is also expected to grow within
the US, considering it is already mature
in most of the world. Additionally, the
percentage of Muslim and Hindu
students coming to study in United
States is also increasing at an average
of 9% annually.
The U.S. Census Bureau shows that
other key trends in the portable bidet
and toilet paper markets would include
the increasing price of plastic and wood,
respectively, and the forecasted 1.6%
compound growth of per capita
disposable income between 2012 and
2017.
The key factors driving the growth of the
industry include changing lifestyles,
rising healthcare expenditures,
increasing population apart from steady
rise in global GNI and low penetration of
substitutes for toilet paper and portable
bidets.
3.5 KEY SUCCESS FACTORS
Changing lifestyles, the growing
population, rising health expenses and a
low penetration of substitutes for toilet
paper and portable bidets are among
the key success factors affecting this
industry.
Additionally, establishment of brand
names is also a key factor for the
products success in this industry.
Although there are largely reputed
brands already in the toilet paper
industry, the portable bidet market lacks
a widely considered go-to product. As
such, it would be crucial to establish a
sustainable brand that is associated with
customer service focus, hygiene,
performance, and reliability.
5|Page
4 MARKET RESEARCH
& ANALYSIS
4.1 RELEVANT MARKET &
CUSTOMER OVERVIEW
Considering that the portable bidet is
majorly a cultural must-have for
specific regions and religions, the
relevant target market for the Thor Bidet
will be narrow and specific. It will be
targeting early adopters that are coming
to study in United States from countries
that practice the Hindu and Islam
religions.
A typical 18-35-year-old Hindi or Muslim
student coming to study in United States
would be the perfect candidate, due to
the current culture in the US, making it
nearly impossible to find bidets in public
restrooms. In addition, these students
only come to United States to study
temporarily, therefore they cannot
install permanent bidets in their rented
houses. Thor Bidet Inc. will specifically
target upcoming international students,
as market research found that current
students in the US have already
established their means of hygiene or
adapted.
In terms of demographics, the only real
criteria will mostly be the cultural and
religious background of the students, as
it is practically a necessity for people
coming from certain religions and
regions to use water when it comes to
restroom hygiene.
4.2 MARKET SIZE & TRENDS
The market size is attractive,
considering that a total of 1,043,839
students have entered United States
from countries of Hindi or Muslim
religious background in 2016, with 37%
of them being from countries that befit
Thor Bidet Inc.s target market.
Considering that the market research in
Exhibit A shows 57% of the students
coming from target countries are not
satisfied with their current method of
cleaning, and 80% of them claim that
they are interested in a high pressure
water bidet that provides effective
cleaning without the use of hands, the
market size that is interested to buy a
product like the Thor Bidet goes as high
as 293,527 students (see Exhibit B).
The most important trend is the average
9% increase of the number of
international students coming to United
States. If we look at the international
students coming from Hindi and Muslim
backgrounds alone, there has been an
increase of 53% during the last 5 years,
with 2016 lately recording an 11%
increase from the previous year. In
accordance to the last 5 years average,
this market is expected to grow at an
annual rate of 9% for the upcoming
years.
Another positive trend can be found in
the size of the Hindu and Muslim
population currently residing in US
already, which corresponds to 3.3 million
Muslims and 2.3 million Hindus
3
according to PewResearch , projected to
grow at a rate of 2.1% and 1.2%,
respectively. Additionally, the overall 5.6
million population with such background
is considered as a target segment for
the Poseidon Bidet, Thor Bidet Inc.s
second product planned to be launched
in year 3.
4.3 BUYER BEHAVIOR
6|Page
The majority of students researched,
that fulfil the target segment criteria,
claimed to have adapted to using toilet
paper as part of their stay in United
States. As such, Thor Bidet Inc. must
approach targeted students before they
adapt, more specifically as soon as they
arrive in United States.
Considering the privacy effect of the
Thor Bidet, buyer behavior will only be
dependent upon personal choices of
each person. Many of them will be
hesitant to even discuss their choices or
use of this product with their peers,
therefore it is imperative that the
company targets them at personalized
stores such as Indian Bazaar. Most new
international students tend to be
hesitant of the large, American markets
at first, preferring to stick to their
cultural practices and products, visiting
imported foods shops that are small and
convenient for many of them.
In order to determine the buyer behavior
of this particular target market,
shopping habits must be observed,
especially in terms of products and
locations. To save on large amounts of
capital required to build inventory
needed to supply the large markets,
Thor Bidet Inc. will be targeting small
imported foods shops, major airports,
and online ads specified at upcoming
international students from targeted
countries.
4.4 MARKET SEGMENTATION &
TARGETING
Market segmentation will be strict and
narrow, considering that this product is
only viable for people with a specific
background, that are to live in US.
Students with Hindi and Islamic
backgrounds will be the primary niche,
alongside other countries that use bidets
or at least water culturally and
traditionally. There are also other
segments that might be worth small
percentages of the total sales as this
product might fulfill a need that they
didnt recognize before.
Thor Bidets target market will be
incoming international students that are
not used to restrooms without a bidet.
They will be 18-35 years old, will be
looking at trends and online social
media, will be reluctant to adapt to the
restroom culture in United States, and
will have the initiative to change for a
reasonable price.
4.5 COMPETITION & COMPETITIVE
EDGES
There a few competitors in the market,
but none can be considered as the
dominating player in the market as they
are all lacking at least one key attribute
that the target market has identified as
a must-have for them.
Blue Bidet:
This product is the cheapest bidet on the
market and the one with the least
amount of pressure being created as
well. This is due to the fact that the
pressure is created by the hand squeeze
force. The positives is that its low cost
and has high portability. The
disadvantage is that it does not remove
the need for the use of ones hand and
thus does not ensure convenience nor
complete hygiene. Additionally, the
water storage of this unit is quite small
and thus its usually not adequate for a
wash and leaves the user dissatisfied.
Bio Bidet Electric:
Like the Blue Bidet, this product is quite
similar in its size and portability but the
major difference is the fact that it has an
electric motor that runs on battery and
7|Page
the pump push water out. However, due
to the small size of the pump and
battery, the pressure is again lacking
and the user has to use their hands to
complete the process. Further, the water
storage is small and inadequate. Finally,
this unit is not an affordable option for
the typical college student.
Porta Bidet Pro:
pursuing studies in the US, respectively.
The target market by the third year is
expected to be approximately 2,016,184
students, 60% of which are expected to
come across the Thor Bidet at least once
during their stay.
4.7 ONGOING MARKET
EVALUATION

Due to modest initial capital investment

Though this product is electric, it is large
requirements, Thor Bidet will start with
and lacks portability. It has a large water
only a home product. There are
tank and can produce better water
several factors that, according to
pressure. However, due to its bulky size
research, have been found as important
and high cost, this product is not for the
to the target market: convenience,
student target market that Thor Bidet
pressure strength, water capacity, and
Inc. will be targeting.
size. Unfortunately, due to the
Thor
Blue
Bidet
Biobi
PortaB
Generi unfeasibility of providing each of the
Attribu Bidet det c
tes (Our
(Hand
(Elect
idet
Mug(L
demands, Thor Bidet Inc. must sacrifice
Pressuri Pro
Product)
sed)
ric) ota) certain features in order to fulfil the
most important ones, which, according
Qualtty High Med High High Low
Price $31 $15 $50 $75 $2
to market research, are convenience and
Online & pressure strength.
Deliver Speciality Grocery
y Stores Online Online Online Stores
Warran
ties 1 Year 1 Month 1 year 1 year None
Therefore, the Thor Bidet will primarily
Water be used at home and will not be geared
Capacit 500
y 2 Litre 500 Ml Ml 1 Litre 1 Litre
toward portability. However, the
Portabi companys research and assessment will
lity Medium High High Low High
Pressu Very
be immediately shifted towards the
re High Low Low Medium Low launching of the second product, the
Poseidon Bidet, after careful evaluation
of what features the target market
4.6 ESTIMATED MARKET SHARE values the most. As part of an ongoing
Research & Development process, Thor
Identified international students coming Bidet Inc. will be evaluating the exact
from countries where water is the features and possibilities of a new,
medium of cleansing are the primary smaller and portable product that
target market. During the first year, Thor customers will be able to take with them
Bidet Inc. will be only targeting the 25 to school, work, etc. Another objective of
universities with the largest share of the Research & Development will be to
students from target countries, which determine where the company can save
translates to 52,894 students during in terms of cost and size and which
2016. The company expects to features are most important to potential
penetrate 60% of this market, thus customers.
equaling a market capture of 31,736
students during the first year.

During years 2 and 3, Thor Bidet Inc. will

expand to all incoming students from
target countries and all students
8|Page
5 ECONOMICS OF calculations and percentages of total
costs can be found in Exhibit E.
BUSINESS
5.3 OPERATING LEVERAGE &
5.1 REVENUE DRIVERS & IMPLICATIONS
MARGINS Initially the business will be relatively
The Thor Bidet will be the primary highly leveraged because of high initial
revenue driver for the first two years costs. As the business starts making
and will generate 100% of the sales, the variable costs will start
companys revenue. In the third year, increasing as per the product sales while
the Poseidon bidet will be introduced the fixed costs will be minimal/low. Thus,
and both products will contribute the cost structure is variable because
towards the revenues of Thor Bidet Inc. Thor Bidet Inc.s core competency is in
identifying the opportunity, directing the
designing of the products, marketing,
Thor & Poseidon bidets will be retailed at
and co-ordination with the vendors and
$36.99 and $17.99. However, the
customers. The company has also
revenue recognition will occur after
outsourced its manufacturing and
taking out the retailer's margins of 15%
warehousing.
for Amazon and 30% for specialty retail
stores and institutional sales; As the
Thor Bidets revenue recognition price 5.4 START-UP COSTS
will be $31.44 & $25.89, the Poseidon
Bidets revenue recognition price will be
$15.29 & $12.59. The cost of the Thor
Bidet is $6.71, while the Poseidon bidet
will be manufactured at a cost of $4.21.
The Thor Bidet has a contribution margin
of 79% on online sales and a 74%
margin on institutional sales/retail store
sales; The Poseidon Bidet has a
contribution margin of 72% on online
sales and 67% on institutional
sales/retail store sales. The company
expects to achieve sales volume of
31,736 units of the Thor Bidet in the first
year and grow it to 65,457 units by the
end of the second year. 5.5 BREAKEVEN CALCULATION

5.2 FIXED & VARIABLE COSTS

Thor Bidet Inc.s cost structure is
primarily made up of variable costs.
These variable costs include
manufacturing, packaging and shipping
from China, product warranty cost and
Amazon storage and fulfillment cost. The
companys fixed costs consist of office
rent, utilities, salaries and administrative
cost; employee, business and renters Breakeven (Units)= (Fixed Costs +
insurance; marketing & advertising; and Startup Costs)/ Weighted Average
research & development. The Contribution Margin
breakdown of the fixed costs
9|Page
Breakeven (Dollars) = Breakeven (Units)
* Weighted Average Revenue
Recognition Cost
5.6 OVERALL ECONOMIC MODEL
Thor Bidet Inc.s economic model
(Exhibit E) will operate on high margins
and high volume. There are two revenue
drivers, namely the Thor Bidet and the
Poseidon Bidet. Since the company has
outsourced the manufacturing to China,
the cost structure of Thor Bidet Inc. is
variable and eventually the company will
operate with low operating leverage
after sales pick up. This type of model is
less risky due to the low fixed cost
structure of the company.
Overall, this economic model is strong
and attractive since high profits will be
generated through high margins and
high sales volumes.
5.7 PROFIT DURABILITY
The profit stream will be vulnerable
during the first two years since Thor
Bidet Inc. is selling only a single product.
However, having a complete solution to
the intensity of pain faced by the many
customers and the launch of the
Poseidon Bidet in the third year will
make the profit stream more solid. The
market lead time will be less since Thor
Bidet Inc. is collaborating with Amazon.
This will also increase the customer
service levels.
So, the overall profit durability will be
strong. This is also supported by the fact
that there is less competitive risk as
bidets are not the primary product used
for the cleansing process in the US.
6 MARKETING PLAN
6.1 OVERALL MARKETING
STRATEGY
Thor Bidet Inc.s overall marketing goal
is to gain market share of international
college students and college institutions,
retaining customer loyalty to Thor Bidet
Inc. in future bidet purchases. Thor Bidet
Inc.s goal is to communicate the
message that its product offers superior
quality, at a competitive price and
provides customers with a strong sense
of relief, satisfaction, and confidence.
Thor Bidet Inc. proposes to promote the
product through the following means:
Thor Bidet Inc.s company website,
which advertises the product(s) and
informs customers how to use the
product(s) and where the product(s) can
be purchased; Facebook, Instagram,
Snapchat, and YouTube, which are the
digital platforms that Thor Bidet Inc. will
use for advertising purposes. Thor Bidet
Inc. will be engaging the services of
Happa Studios (a design studio based
in Lahore, Pakistan) to design the brands
image and create the required branding
materials that will be used to create a
uniform brand presence. Further, Thor
Bidet Inc. will utilize the online social
media content management platform,
$99 Social, to ensure a uniform social
media presence; Sales representatives
who are responsible for marketing and
selling the product to select college
institutions; Select retail stores that
focus on selling international products
originating from the home countries of
the target market; and a PR campaign in
correlation with the Hindu holiday, Holi.
Thor Bidet Inc. will be sold on Amazon
and in retail stores. However, Amazon
will be responsible for fulfilling the
orders of individual online customers
and institutional/wholesale sales. As the
online company website offers
information about the product and the
most convenient place to purchase the
product based on the customers
location, orders cannot be placed on the
website. Additionally, wholesale orders
from stores and college institutions will
be placed through sales representatives,
who will provide them with a promo
code(s) that will be used during
checkout on Amazon in order to fulfill
10 | P a g e
the institutional/wholesale order(s). The
retail price of the Thor Bidet is $36.99,
while the Poseidon
ertisement). According to market
research, the cost per click is $0.36. As
Thor Bidet Inc.s primary market
research shows, 75% of potential
customers are interested in a high
pressure semi-portable bidet, 58% are
dissatisfied with the current alternative,
and 62% are willing to pay $31 or more.
With a discount factor of 20% in the first
two years and 70% in year three
onwards (due to increased brand
awareness), Thor Bidet Inc. calculated
the conversion rate of Facebook
advertisements for the Thor Bidet to be
5% in years one and two and 19% in
year three onwards. With slight changes
to the formula, Thor Bidet Inc. calculated
the conversion rate for the Poseidon
Bidet to be 20% (Exhibit C).
Thor Bidet Inc. is also going to launch a
YouTube video in year 1 in the months of
March, April, and May 2017 after a PR
event at a university which is to be
decided. This event will take place in
March and will coincide with the Hindu
festival called Holi, also known as the
festival of colors. Though a religious
holiday typically celebrated in India and
Nepal, Holi is now celebrated all over the
world by countless peoples of different
religions. It just so happens that those
who traditionally celebrate the holiday
are in Thor Bidet Inc.s target market.
Nevertheless, during this festival, it is
tradition to smear one another with
colorful paint. Thor Bidet Inc. plans to
sponsor this event and provide Thor
Bidets to help clean the paint off of
people after the celebration. A video
advertisement will be made from the
event, not only showing off the product,
but also showing how different cultures
can be brought together in unity. This
advertisement will be displayed on the
online website, Facebook, Instagram,
Snapchat and YouTube. As this PR
campaign has the potential to go viral,
Thor Bidet Inc. can reach countless
people. Thor Bidet Inc. will expand this
campaign to more colleges in the
coming years.
6.2 PUBLICITY
Thor Bidet Inc.s Holi advertisement
campaign with the message of bringing
people together has the potential to
offer the company vast publicity, not
only through a viral video, but also on a
smaller scale, for example around
colleges, in school and city newspapers,
and brief segments on local news
channels. Thor Bidet Inc. will also place
advertisements in school newspapers in
another attempt to meet its target
market. Thor Bidet will expand its Holi
campaign to more universities each
year.
6.3 WARRANTY & GUARANTEE
POLICY
Thor Bidet Inc. offers a 30-day
guarantee for both products, in which
customers can send the product back for
a full refund within 30 days if they are
unsatisfied. Thor Bidet also offers a 1-
year warranty, which covers defected
products or products that break within
the proper line of use.
6.4 DISTRIBUTION
Thor Bidet Inc. will be distributed
through Amazon as well as through a
select group of specialty stores.
However, Amazon will fulfill all orders;
both from individual customers, as well
as institutional/wholesale orders. In the
case of institutional sales, the sales
representative will create a promo code
for the specific university to pass out to
their students, in which they will use to
order the bidet on Amazon. In the case
of wholesale orders from retail stores,
again, the sales representative will
provide the specific store with a promo
code in which the store will use when it
places the order on Amazon. Amazon
will allow Thor Bidet Inc. to target a
mass market of people all over the US,
while the retail locations will allow for a
11 | P a g e
street presence in areas that are highly
populated with the target segments.
Furthermore, distribution through
college institutions will not only reach
the target market, but will also increase
brand awareness in areas that are
densely populated with the target
market and can help Thor Bidet Inc. gain
new customers.
7 DESIGN &
DEVELOPMENT
PLAN
7.1 DEVELOPMENT STATUS &
TASKS
Thor Bidet Inc. is currently in
possession of its first proof of
concept prototype for the semi-
portable Thor Bidet. The prototype
will be shared with the
manufacturing partners in China and
the design will be slightly modified
with their input to make mass
production most efficient, cost
effective, and also include a switch
valve, where by the user will be able
to use pressurized air to dry
themselves and thus taking out the
need to use toilet paper to dry
oneself. The product will be ready to
manufacture in June 2017.
Products Thor
Final Manufacturing 1 Bidet
month
Design Process
Testing Process for first 20 days
batch of mass
produced
Ready products
to Mass June 17
Produce by
7.2 DIFFICULTIES & RISKS
The final pre-mass production
development & testing process has
been given a time of two months as
the company is committed to deliver
a product in the market that is not
riddled with issues. Since the initial
product line has only one product,
the risk is high as the brands image
is completely based on this one
product and thus we have focused
towards making sure that the
storage and order fulfillment. Also,
Amazon is an extremely popular e-
commerce portal in the college student
market.
7.3 GEOGRAPHIC LOCATION
Thor Bidet Inc.s planned geographic
office location will be in Syracuse, NY.
This has been chosen based on the
proximity to 10 out of the 25 institutions
that attract the maximum number of
international students. Doing so will help
Thor Bidet Inc. reach out easily and build
a brand in a short span of time.
7.4 CAPACITY LEVELS &
INVENTORY MANAGEMENT
The inventory levels are based on the
sales estimates. Thor Bidet Inc. plans to
operate using Complete Order Point
Model:
Order point = Demand during lead time
+ Safety Stock
The essence of this approach is when an
item falls to a certain stock level or
quantity, an order is released to
replenish inventory on the expected
stock-out date. This model has been
adopted since customer demand and
replenishment lead times are likely to
show random variation. Also, this is
advantageous as this model will save
costs and help Thor Bidet to benefit
since the customer demand follows a
seasonal trend.
12 | P a g e
8 MANAGEMENT
TEAM
8.1 KEY PERSONNEL &
RESPONSIBILITIES
The company will initially consist of the
5 founders sharing executive roles and
three advisory board members, each
contributing on a specific major
department in accordance with their
expertise (Exhibit G). The internal roles
to be filled include:
Chief Executive Officer: Muhammad
Khan
Mr. Khan is an MBA professional and
Fulbright scholar who has founded
Solenergi Pvt. Ltd. A solar street lighting
company, in Pakistan. Mr. Khan was part
of Solenergi as Founder & Business Lead
for five years, having already worked in
managerial and consulting positions for
the previous three years.
As CEO, Mr. Khan will be responsible for
the day-to-day management decisions
and for implementing the companys
long and short term plans, in accordance
with the executive management.
Chief Financial Officer: Mangirish
Rayadhyaksha
Mr. Rayadhyaksha is an MBA
professional with 4+ years of experience
in Investment Banking and Equity
Research and an exceptional record of
delivering cost effective, high
performance financial solutions to meet
challenging business demands.
As CFO, Mr. Rayadhyaksha will be
responsible for the Financial and
managerial accounting, as well as
budget sections of the company.
Chief Operational Officer: Egzon Halili
Mr. Halili is an MBA professional who has
founded Inovalty, a home textile
manufacturing company in Kosovo. Mr.
Halili has been part of Inovalty as
Managing Partner for over 4 years, as
part of a 6+ years professional career in
business development, consulting and
operations.
As COO, Mr. Halili will be responsible for
the administration, human resources,
operations and legal divisions of the
company.
Chief Innovation Officer: Kartik Kakria
Mr. Kakria is an MBA professional with
academic excellence in Technology
Electronics and Communication. He is
also a Research Consultant at EXPORTNY
program and does intensive market
research for finding attractive
international attractive markets, helping
to prioritize efforts to penetrate each
market and tackle the legal, cultural,
logistical and regulatory issues.
As CIO, Mr. Kakria will be responsible for
the research and product development
departments of the company.
Simultaneously, he is connected with
supply chain professionals, such as
Burak Kazaz and Patrick Penfield, who
have years of supply chain experience
and have done valuable research,
including writing popular supply chain
papers.
Chief Marketing Officer: Nicholas
Piroli
Mr. Piroli is an MBA professional with
expertise in business and marketing. Mr.
Pirolis experience includes managing
several projects and tournaments,
13 | P a g e
including Lacrosse camps, both in terms
of operations and marketing.
As CMO, Mr. Piroli will be responsible for
advertisement, marketing plan, and
sales of the product.
Sales Representatives: Two full-time
employees during Year 1 and Year 2, four
full-time employees in Year 3
Mr. Piroli will also be supervising the two
sales representatives that are
responsible for completing deals with
target institutions and helping market
the brand and its Thor Bidet product
initially. Once the second product, the
Poseidon Bidet is launched, Mr. Piroli will
be supervising the additional two sales
representatives that the company plans
to hire.
8.2 MANAGEMENT SALARIES &
OWNERSHIP
Each of the five founders have agreed to
begin with a 20% ownership of the
company. However, as equity is given in
return for investments or other
occasions as agreed by the majority of
the founders, the ownership percentage
will shrink equally for each of the
founders, in accordance with the amount
of equity given.
Modest annual compensation of $40,000
will be established for all employees of
the company, including the key
executives and sales representatives,
until the point where the company has
broken even and is sustainably
profitable, at which point there will be a
re-evaluation of the salaries and
bonuses toward an increase as well as
having the dividends paid at the end of
the year after breaking even. There shall
be a partnership agreement that will
establish the compensation, percentage
increase of salaries, and dividends
percentage including stock options if it is
decided for the company to go public in
the future.
8.3 BOARD OF ADVISORS
The founders have selected a diverse
and established group composing of
experts in what they have identifies as
the major fields to bring the concept and
company forward.
Business Advisor: Ken Walsleben
Mr. Walsleben boasts 30+ years in
managerial and executive positions,
mostly in the business world. Lately, Mr.
Walsleben has been working as a
professor of Entrepreneurial Practice,
making him a perfect addition that will
help guide the team on how to approach
the launch of the product as well as
developing the business side of the
company towards reaching long and
short term sales goals.
Operations Advisor: Raza Khan
Mr. Khan has been working in
managerial and executive operations
positions for over 16 years, most
recently serving as Chief Operating
Officer of Taavun Ltd in Pakistan. Mr.
Khan will be using his experience and
expertise in the operational side of the
business to guide the team towards
reaching operational and supply chain
efficiency.
Product Development Advisor: Harini
Tatnis
Ms. Tatnis is a certified Scrum Master
and certified Scrum Product Owner with
substantial experience in leading
offshore and onshore development
teams, including quality assurance lead
expertise. Ms. Tatnis will be advising the
team on product development goals,
strategies, and helping with the planned
outsourcing of the product
manufacturing to China.
In addition to the three advisory board
members, the team will also be
establishing a professional relationship
with a legal advisor, who will be giving
14 | P a g e
guidance with regards to the legal
issues, trademark, copyright, and other
Terms of Service and contracts that the
company will be needing.
9 OVERALL SCHEDULE
9.1 SCHEDULE SUMMARY
Thor Bidet Inc.s Overall Schedule details
the first two years of design,
development, marketing, and
operations, while showing a brief growth
schedule in years 3-5. As seen in the
Overall Schedule table below, Thor Bidet
Inc. will incorporate in May 2017 as a C
Corp and will begin leasing office and
warehouse space. Furthermore, two
sales representatives will be hired in the
month of May. Thor Bidet Inc. will start
the design, development, and testing
process in May and finish this process by
June 30th. At that point, the final version
of the Thor Bidet will be created and the
first order will be placed with the
manufacturer in July. By August, Thor
Bidet Inc.s website will be completed
and Thor Bidet will be available for sale
on Amazon and in select retail stores. As
Thor Bidet Inc. will receive the first order
from the manufacturer in the end of July,
the official operation of the business will
commence and the marketing initiative
will be launched August 1st. By
September, Thor Bidet Inc. will ramp up
marketing efforts, while the sales
representatives will contact and meet
with international student organizations
at universities all across the north east
in efforts to promote and sell the Thor
Bidet. From September through
December, Thor Bidet Inc. will continue
its sales through individual purchases on
Amazon, select university organizations,
and select retail stores. Additionally,
Thor Bidet Inc. will continue with the
marketing strategy, and
send/receive/analyze customer
feedback.
Thor Bidet Inc. will break even in January
2018. Further in 2018, Thor Bidet Inc.
will begin expanding to more retail
locations and more university
organizations. Thor Bidet Inc. will ramp
up marketing in the months of
September and January, the months in
which its target market goes back to
college. Thor Bidet Inc. will begin its Holi
Campaign in March 2018, with plans to
increase the campaign each March to
follow.
From 2019-2012, Thor Bidet Inc. will
continue strong sales and marketing on
the east coast, while exploring growth
opportunities both through retail stores
and through expansion across the entire
US. In year three, Thor Bidet Inc. will
launch the Poseidon Bidet and hire two
more sales representatives in an effort
to expand retail and institutional sales.
In 2020 and 2021, Thor Bidet Inc. will
continue researching and developing
new, related products and continue with
the sales and marketing strategy. Finally,
in year 2021, Thor Bidet Inc. will
complete the development plans for new
products and explore expansion
opportunities into Europe.
Year 1: 2017
May Incorporation of the
venture as C Corp in
Delaware
Begin office and
warehouse lease
Create first prototype of
the Thor Bidet
Initial plans sent to
manufacturer for design of
product
Hire website designer
Hire 2 sales
representatives
Develop overall marketing
strategy
Develop distribution
strategy (Amazon)
Provide founders
investment of $100,000
Seek $200,000 investment
Hire corporate marketing
15 | P a g e
 agency to provide uniform
advertising content across
platforms (Happa Studios)
Hire social media creative
agency to manage social
media platforms ($99
Social)
June Design, develop, and
testing of product is
completed
Website is finished
Sales representatives
meet with university
institutions and select
retail stores
16 | P a g e
July Place first Thor Bidet order
with manufacturer (orders
continue on a monthly
basis)
Start official operation of
business
Enter select retail stores
Begin POS marketing
strategy (retail stores)
August Begin Facebook
advertising
Begin individual-online,
retail, and university sales
Intense marketing geared
toward international
students going back to
school
17 | P a g e
Septemb Continue individual-online,
er retail, and university sales
Ramp up marketing efforts
(Facebook Ads)
Create feedback forms to
send customers
October Continue individual-online,
retail, and university sales
Continue marketing
strategy
Begin to analyze customer
feedback forms
Novemb Respond based on
er customer feedback forms
Continue individual-online,
retail, and university sales
Continue marketing
strategy
Decemb Continue individual-online,
er retail, and university
Continue marketing
strategy
Year 2: 2018
Q1 Breakeven in January 2018
Continue individual-online,
retail, and university sales
Ramp up Facebook advertising
in January
Launch Holi campaign in March
Extend marketing strategy to hit
all with target religious customs
Explore expansion into more
retail stores
Q2 Expand college/religious market
to entire east coast
Enhance online marketing
strategy through targeted
display advertisements
Prepare operations for peak
season
Q3 Ramp up Facebook advertising
in September
Continue sales and collect
customer feedback
Q4 Continue sales in university and
online channels
Continue marketing strategy
Years 3-5: 2019-2021
Year 3- Continue strong sales on
2019 east coast for Thor
Hire 2 more sales
representatives
Patent the Poseidon Bidet
Place first Poseidon Bidet
order with manufacturer
Launch the Poseidon Bidet
Begin expansion to entire
US for Thor and Poseidon
Enter more retail stores
Launch Holi campaign
(increase from previous
year)
Continue expansion into
retail stores
Continue R&D
Year 4- Continue sales throughout
2020 US
Enter more retail stores
Launch Holi Campaign in
March
Expand team as needed
Continue R&D
Year 5- Continue sales throughout
2021 US
Enter more retail stores
Launch Holi Campaign in
March
Complete development
plans for new products
Explore expansion
opportunity into Europe
10 CRITICAL RISKS &
ASSUMPTIONS
10.1 ASSUMPTIONS
To compute forecast revenues, the
company will be taking the total number
of international students expected to
18 | P a g e
come to US for studies next year - 37%
of which, according to market research,
have been identified as potential target
market. However, in order to have more
effective and cost-efficient initial
marketing, the company will be
targeting only the top 25 universities
during the first two years. Out of the
narrowed market, surveys showed that
only 62% of the target market are willing
to purchase the product at $37. The
company will also be assuming that
during the first year of operations, only
half of that market will be reachable. By
the third year, the company expects to
increase its revenues through the launch
of another product, the Poseidon Bidet,
which will cater to the needs of
international students and professionals.
It will bear aesthetic features and will be
geared toward portable usage.
Due to a limited budget and the fact that
the company will strictly be serving as a
connecting party between the
outsourced production and outsourced
distribution, Thor Bidet Inc. assumes
that the team will remain small for the
first few years. In addition to the three
external advisors, five of the founders
will also be working full time in
respective departments, as well as two
sales representatives in years one and
two, with the addition of two more in
year three.
The cost of the unit has been projected
by taking into consideration the material
parts used to complete the product and
the costs of outsourced manufacturing in
India. In average, the cost is expected to
be at $8.56 for the Thor Bidet and $6.46
for the portable bidet that is planned to
go on sale in the companys third year of
operation. Inventory holding and
distribution will be outsourced to
Amazon and the costs have been
projected to $2.41 per unit. Product
margins are expected to be $28.43
(77.0%) and $11.53 (64%) for the Thor
Bidet and the Poseidon Bidet,
respectively.
No capital expenditures are expected,
and rent is expected to be at about
$4,500 a month, due to the projections
that most sales will be done online or
through institutions, thus having no
need to have a central location. Though
Thor Bidet Inc. will not patent the Thor
Bidet, the company will apply for a
design and utility patent for the
Poseidon Bidet in year 2.
10.2 RISKS
Demand Risk:
Thor Bidet Inc. recognizes potential risks
in the market. Specifically, there is a risk
that demand will not be as high as
expected; therefore, sales will be lower
than projected. As the Thor Bidet Inc. is
targeting international students, if this
population decreases in the near future,
the company may miss its sales
projections. Furthermore, if Thor Bidet
Inc.s marketing strategy fails to reach
the target market, sales may be lower
than expected. Finally, the possibility of
less sales poses the inherent risk of
running out of cash.
Thor Bidet Inc. will mitigate these risks
in several ways. First, through market
research, Thor Bidet Inc. has ensured
that there is a need for this product
among international college students,
specifically. In fact, not only does this
market currently exist, it is also
estimated to grow at 9% in the coming
years. In addition, Thor Bidet Inc.s
marketing strategy will reach the
majority of the target market, while its
pricing strategy offers the quality
product at an affordable price,
particularly to the target demographic,
compared to the price of similar
products sold by industry competitors.
Finally, Thor Bidet Inc. will keep costs
low by bootstrapping and using low-cost
materials in manufacturing to produce a
quality product, raise more capital if
needed, and execute an aggressive
marketing strategy.
19 | P a g e
Operational Risk:
Thor Bidet Inc. projects its design and
manufacturing costs to be $8.56 for the
Thor Bidet and $6.46 for the Poseidon
Bidet. However, there is a risk that these
costs will be greater than expected. In
addition, since Thor Bidet Inc. is
outsourcing its manufacturing to China,
there is a risk that the product is not up
to standard quality, due to lack of
oversight, which could severely tarnish
the brands image. Further, since
production will take place in China, there
is a risk of late shipments of the product.
To mitigate these risks, Thor Bidet Inc.s
CIO will oversee production in China,
ensuring costs are kept low and product
quality is up to par. Thor Bidet Inc. will
also keep safety stock of inventory in
case a problem arises in manufacturing
or shipment, causing shipments to be
delayed. The first order placed with the
manufacturer will contain excess bidets
to diminish this risk.
Lack of Patent Risk:
As Thor Bidet Inc. does not currently
have a patent, competitors can easily
imitate the product itself. This is a
critical risk that Thor Bidet Inc. will
mitigate in the following ways: By
offering a quality product and an easy,
convenient buying experience that helps
to retain customers; By quickly building
brand awareness through an aggressive
marketing strategy; By pricing the
product lower than competitors; By
producing new, innovative products
based on market needs.
11 FINANCIAL PLAN
11.1 HIGHLIGHTS
Thor Bidet Inc.s financial plan offers a
great business value for investors. The
companys revenue will start in August
2017 through the sales of the Thor Bidet
(Exhibit H). During the first year of
operations, the company would have net
loss of $6,307.48 dollars. The companys
second product, the Poseidon Bidet will
be introduced in the first quarter of the
third year.
The company needs an investment of
$200,000 apart from the owners
investment of $100,000 in the first year.
The company has a negative cash from
operations ($17,598) in the first year.
The burn rate of the company is 136
months. However, the cash flow of
operations starts getting positive from
Q2 of year 1 (Exhibit I). The companys
current ratio and quick ratio stands
above the industry median suggesting
that the company will be able to manage
the short-term liabilities. The inventory
ratio is on the higher side, which
suggests that the company will be able
to sell the inventory in fewer number of
days. The profit margin of the company
is between 18.88% and 30.94% from
year 2 onwards. The return on equity
has an exponential increase from
115.78% in year 2 to 749.67% in year 5.
11.2 BREAKEVEN
During the initial phase, the founders
money will be invested and used to
bootstrap and start the business. The
company will breakeven at 28,843 units
in 9 months (Exhibit E). The total market
potential for the Thor Bidet is 1.3 million
buyers, while the total market potential
for the Poseidon Bidet is 4.6 million
buyers in their respective launch years.
The company has calculated a sales
potential target for the Thor Bidet of 2%
in the first year that builds to 9.6% by
the fifth year. Since the Poseidon Bidet
has a larger market potential, the
company has created a conservative
estimate of first year sales potential of
1.5% and plans to achieve 2.73% by the
end of the third year of sales.
20 | P a g e
11.3 COST CONTROLS
Thor Bidet Inc.s CEO and CFO will be
responsible to run the cost controls and
to manage the expenses of the
company. If needed, the marketing team
will help for the sales projections and the
expansion plan. Initially monthly reports
will be generated to track the progress
of the company. It will be the
responsibility of all the founders to
identify and mitigate risks when needed.
11.4 KEY FINANCIAL
ASSUMPTIONS
The company has accounted for sales
return and allowance which is assumed
to be 3% of the revenues. Also, the
company has kept a 15% operational
expense buffer that will help mitigate
the risks of extra expense if required.
Thor Bidet Inc.s major expenses will be
purchases, marketing, and research and
development. Apart from these, a major
expense would be startup costs which
would be incurred in the first year. The
company will breakeven in 9 months.
The net income after taxes will become
positive in the second quarter of year 2.
One benefit that investors will find
attractive is that the company is debt
free and most of the assets are liquid.
For now, to keep the financial
statements simple, the company has
assumed that it will pay the
manufacturer and get paid by retail
stores and Amazon in the same month.
Thor Bidet Inc. has seasonal cash flow
sensitivity with respect to sales in the
first and fourth quarters of the financial
year. The company plans to keep the
salaries of the employees constant until
its financial goals are met.
11.5 COMPANY OFFERING
Thor Bidet Inc. is seeking an investment
of $200,000 from investors in return for
14% equity. The investor will also get
voting rights and seat on the board. The
NPV of the company is $1,474,829.59
using DCF valuation technique (Exhibit
K). The company also considered risk
adjustment, market risk premium and
long term growth rate resulting to a
discount rate of 40.80%. After analyzing
the financial needs, the company plans
to use the money from angel investors
for marketing, initial purchase orders
and R&D over a term of five years. The
company has used cash safety cushion
in terms of 15% operating buffer. The
investment is expected to be made
available during the starting months of
the business to achieve optimal growth
and manage sales. The company will
buyout the investors for $1,000,000, or
5x their initial investment, at the end of
year five. The preferred exit strategy
would be through acquisition from a
major player of sanitary toilet products.
In the case of a potential acquisition,
Thor Bidet Inc. will ensure a good fit,
which benefits both parties.
Works Cited:
1-
https://www.statista.com/statistics/2681
36/top-15-countries-based-on-number-
of-facebook-users/
2-
https://www.salesforcemarketingcloud.co
m/wp-content/uploads/2013/06/The-
Facebook-Ads-Benchmark-Report.pdf
3 - http://www.pewresearch.org/fact-
tank/2016/01/06/a-new-estimate-of-
the-u-s-muslim-population/ft_16-01-
05_numbermuslims/
4 https://www.iie.org/Research-
and-Insights/Open-
Doors/Data/International-
Students/Leading-Institutions/2015-
16
21 | P a g e
5
https://www.census.gov/econ/isp/sam
pler.php?
naicscode=322291&naicslevel=6

22 | P a g e
 Exhibit A: Market Research

Q. How satisfied do you feel with your current method of cleaning? Q. Would you be interested in a high pressure water bidet that
provides effective cleaning without the use of hands?

Q. How much are you willing to shell out for a pressure based water Q. What do you think will matter when using bidet? (Choose one or
bidet (inclusive of 1yr warranty)? more)

Exhibit B: Market Size

Macro Market size Market Size (Thor)
 Exhibit C: Conversion Rate

Thor Conversion Rates Poseidon Conversion Rates

 Based on SalesForceSocial.com: The Facebook Ads Benchmark Report 2

Exhibit D: Marketing Budget

Marketing Budgets:
Exhibit E: Economic Model
 Exhibit E (Continued)

Contribution Margin:
Breakeven:

Exhibit F: Operations Plan

Exhibit G: Management Team
Exhibit H: Income Statement

Income Statement Year 1

Income Statements Years 2 & 3
Income Statements Years 4 & 5
 Exhibit I: Cash Flow Statement

Cash Flow Year 1

Cash Flow Years 2 & 3
Cash Flow Years 4 & 5
 Exhibit J: Balance Sheets

Balance Sheet Year 1

Balance Sheet Years 2 & 3
Balance Sheet Years 4 & 5
Exhibit K: Valuation