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Elecwrit notebooks will be small in size, portable, simple, customized covering and exclusively for writing purpose. In the start we will only target the Melbourne market however, at later stages we aim to target customer segments from other geographical regions of Australia. We will target the customers based on their income level and profession. Our major target market segments include students and working professionals. We will adopt premium pricing strategy in the beginning however, at later stages we may switch to price penetration strategy. To promote the products we will create a strong marketing campaign in which we will participate in the trade fairs and we will also visit the universities, colleges and companies. We will offer special wholesale packages to the universities and companies in the beginning.
The financial information in the report shows that we will require an initial capital of $400,000 to start up the company and in the first year of operations our net profit is expected to be above $90,000. Therefore, we believe that Elecwrit will be a successful venture.
Elecwrit offers high quality electronic products to those who are seeking trendy, stylish and easily portable products. We offer our products to a broad spectrum of consumers by offering them at affordable prices.
To select the target market, the market segmentation strategy will be demographics market segmentation. The two variables including the income level and profession will be selected to segment the Australian market. Since the company will start its operations from the Melbourne market therefore, at the initial stage only the universities and companies in Melbourne will be targeted.
Following table shows the target market of Elecwrit. We aim to target students and professionals with the income level of $5000 and above. The income level represents the individual income and not the household income. Since students
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