Application Technologies Inc.
Marketing Strategy
The key element in successfully bringing our technology to market lies in the selection and appointment of the right business partners who are licensing or distributing our technology. These relationships will ensure the successful commercialization of the technology. Application Technologies will focus on selecting a major player or brand in each category. These business partners should be well positioned to establish the technology in their specific category, be entrepreneurial enough to bring the technology to the market quickly and strong enough to support us in the enforcement of our intellectual property. Our responsibility in all three tiers remains the development of the packaging technology and supplying manufacturing support as needed. Product The products supplied to each partner will be customized to meet their specific needs: We will accomplish this by supplying a menu of manufacturing support options (further discussed under our operations strategy). We will customize the pouch size, design, printing and packaging for each different application. We will ensure that the product is differentiated clearly by granting exclusive licenses and distribution in each specific category.
Promotion Promotion will be done mostly through personal selling by our executive team. We have developed a detailed sales presentation and have clearly selected companies we will target for personal presentations. As the partners are responsible for advertising and promotion to the end user, we will monitor their promotional materials to ensure consistent claims. Price The consumer research clearly indicated that the end user is willing to pay a substantial premium price for the product. We believe that products using our technology should be positioned as a premium quality product to the consumer, and would therefore encourage our partners to promote the products as such, charging a premium price. Through high speed mass manufacturing Application Technologies is capable of supplying packaging at prices very comparable to existing unit dose technologies. Given the fact that our partners have the opportunity to obtain a premium price from the consumer, we will price our technology to them at a similar premium. However, because of substantial margin, we will be able to lower our price in proportion to the premium they are able to obtain.
Distribution Our only distribution function is the delivery of empty or filled pouches to our partners' facilities.