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Unformatted text preview: OUTLINE MARKET PLAN Company Purpose: Encore Video Industries, Inc. was incorporated in March of 1987 to capitalize on the technology Encore Video has developed to increase the quality and efficiency of its mainline business of providing post production services to the film and television industries. The Need: The steady improvement in television technology along with tighter advertising and TV Show production budgets has put considerable pressure on post production facilities to become more and more efficient and quality conscious. Mission: To help solve this problem, EVI has developed its EPR system for post production firms to improve the efficiency of registered film-to-video transfers from 400 to 3,000 per cent and increase the quality of film registration to the highest possible levels. Market Potential: The ultimate market for the EPR system is the current and future inventory of Rank Cintel Mark IIIC telecine installations in the United States and overseas. This market is estimated to be roughly 500 units. Competition: There are mechanical registration systems on the market, such as Steadi-Film, but, they are prohibitively slow and have many of the reliability and other problems associated mechanical devices. Currently, the only other option is to avoid registering the film. The resultant compromise in quality, however, makes this option less and less appealing especially as more and more EPR systems are installed in competitive post-production facilities. Expected Penetration: Based on the competition, the market potential, and a conservative penetration of the available market, EVI expects to sell 100 units over the next three to five years. This represents a volume of over $10 million from the EPR line alone -- not including options and service fees. Marketing Strategies: In order to achieve the expected penetration, EVI will employ the following strategies: Corporate Image : EVI will create and maintain a state-of-the-art technology image (1) creating cutting-edge technology for post-production TV applications, (2) focusing on high-end post production houses and facilities, and (3) creating proprietary products protected by patents. Position : Market targets (lock): Only top post production houses in the world will be initially targeted. Product image (key): EVI products will be positioned as unique, of the highest of quality, and at the forefront of television technology. Product line : EPR system, FVS 100 Sequencer Option, Annual Software Upgrade Contract, Time and Materials Service, and Spare Parts. Price : To fortify EVI's high-end positioning, EVI products will follow a what the market will bea r pricing strategy. Based on the costs to make and warranty the EPR system, the prices of alternatives, a survey of the market, and the need to make a reasonable return, the price of the basic EPR system has been established at $100,000. It includes: the EPR system, installation, training, software upgrades for up to a year. The FVS 100 option will be $10,000, and the training, software upgrades for up to a year....
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