THOR

THOR BIDET, INC. [Course title]

1
EXECUTIVE SUMMARY
Opportunity
There are approximately 2.5 billion
people in the world, for whom the norm is
to use water 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 wipes/tissue,
since the bathrooms are not equipped
with faucets 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 each year. These
student 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. The solution is Thor Bidet.
Business Concept and
Competitive Advantage
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. Leaving the individual feeling
completely hygienic.
In addition to the powerful water
pressure, Thor Bidet will be differentiated
through a series of features that this
niche market values. To mitigate hygienic
issues between housemates, Thor Bidet
will come with replaceable handles
available in several colors to easily
distinguish ownership. Thor Bidet will
have a designed capacity of 1 gallon and
will be shaped to be stable and easy to
store.
By year three, Thor Bidet will introduce a
second product, the Poseidon Bidet, which
will be smaller and discreet. Poseidon
Bidet will be designed and geared toward
portable use, when leaving the house,
such as for work or school. As such, this
product will also target people with the
same background that have already
adapted their means at their home in
United States, but still lack a portable
option to take care of their needs; an
estimated population of 4.6 million
people.
Target Market
Thor Bidets target market includes
international college students from the 55
countries (exhibit A), 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.). Thor Bidet
has identified approximately 1.5 Million
potential customers based on their
religion or the customs of their home
country (according to exhibit A). Based on
the data published by the Institute of
International Education (IIE), the number
of students in the target market is
expected to grow by 9% on a year on year
basis. After conducting a survey of
approximately 150 people on the need
and value of the product with the select
target customer, it was confirmed that
57% were dissatisfied with the current
method they were using, but 62% were
willing to purchase a high pressure bidet
for $31+ price bracket.
For the first two years Thor Bidet has
chosen a market penetration strategy
2
that is based on targeting specific
university student bodies, due to the
large concentration of identified
customers. 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 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. In the third year, the brand
would have established a reasonable
presence amongst its customers; The
Company plans to expand its marketing
efforts to all international students in the
US who fit Thor Bidets segment.
Essence of Marketing Plan
Thor Bidets goal is to become the
go-to semi-portable bidet within the
college student market, by
communicating the message that its
product offers superior quality, at a
competitive price, while providing
customers with a strong sense of relief,
satisfaction, and confidence.
Thor Bidet proposes to promote the
product through the following means: The
company website, which advertises the
product(s), informs customers how to use
the product(s) and explains where the
product(s) can be purchased; Facebook,
Instagram, SnapChat, and YouTube, which
are the digital platforms that Thor Bidet
will use for advertising purposes. Thor
Bidet 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. For the online
social media content management the
company will utilize $99 Social platform,
to ensure a uniform social media
presence; Sales representatives who are
responsible for marketing and selling the
product to the selected college
institutions; Select retail stores that focus
on selling international products
originating from the home countries of
the target market; and a PR campaign by
associating with websites like Buzzfeed
India in correlation with the Hindu
holiday, Holi.
Thor Bidet 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 on Amazon to fulfil the
wholesale/Institutional order(s). The retail
price of the Thor Bidet is $36.99 and
Poseidon Bidet is $17.99, compared to the
competition that are priced between the
ranges of $85 - $15.
Technological and
Operational Issues
Thor Bidets have identified Taizhou
Luqiao Lvxin Sprayer Co. Ltd. as its
potential offshore manufacturer. The
manufacturer located in Zhejiang, China
(Mainland) is a professional
manufacturing company, has ample
capacity and stringent quality measures
that perfectly suit the supplier needs of
the company. The company already is in
possession of a prototype for Thor Bidet;
For Poseidon Bidet, the company will be
collaborating with Nectar Product
Development (http://nectarpd.com) based
in Long Beach, CA, a firm with 25 years of
3
experience, 20+ design awards and 70+
patents, to come up with creative designs
for a convenient and portable bidet, that
fulfill the requirements of our target
market customers. The company plans to
use Amazon storage as well as its
fulfillment centers for its distribution
operations, since Amazon is an
extremely popular e-commerce portal in
the college student market. In addition,
Amazon is known as the industry leader
in its ability to easily synchronize between
inventory management, order
management and customer relationship
management. Thor Bidet recognizes that
as a startup it will require to build strong
relationship with its supplier to assure
that the quality variations are at a
minimum and the production delivery
schedule is followed properly; Regular
trips will be conducted by the CIO to the
manufacturer to mitigate the risks
associated with having a single supplier.
The Team
The company will be registered as
a C-Corp and initially consist of the five
founders, each a Syracuse University MBA
graduate and specializing in executive
roles throughout important departments
of the company: Muhammad Khan (CEO),
Mangirish Rajadhyaksha (CFO), Egzon
Halili (COO), Kartik Kakria (CIO), and
Nicholas Piroli (CMO). There will also be a
professional board of advisors, consisting
of Kenneth Walsleben (Business), Raza
Khan (Operations), and Harini Tatnis
(Product Development).
Economics
Thor and Poseidon bidets will be
retailed at $36.99 and $17.99. However,
the revenue recognition will occur after
taking out the retailer's margins of 15%
for Amazon and 30% for specialty retail
stores and institutional sales; Thor Bidets
revenue recognition price will be $31.44 &
$25.89, while Poseidon Bidets revenue
recognition price will be $15.29 & $12.59.
The cost of Thor Bidet is $6.71 and
Poseidon bidet will be manufactured at a
cost of $4.21. Thor Bidet has a
contribution margin of 79% on online
sales and a 74% margin on institutional
sales/retail store sales; Poseidon Bidet has
a contribution margin of 72% on online
sales and 67% on institutional sales/retail
store. Thor Bidet expects to achieve sales
volume of 31,736 units of Thor 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 has outsourced the
manufacturing and warehousing.
Furthermore, Thor Bidets economic
model operates on high margins and high
volume with two revenue drivers and low
operating leverage.
Financial Highlights
Thor Bidet will break-even at
28,843 units bringing in a revenue of
$810,844.94 in 9 months. The total
market potential for Thor Bidet is 1.3
million buyers and for Poseidon Bidet is
4.6 million buyers in their respective
launch years. The company has
calculated a sales potential target for
Thor Bidet of 2% in the first year that
builds to 9.6% by the fifth year. Since
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 24.56% from year 2
onwards. The return on equity has an
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exponential increase from 115.78% in
year 2 to 459.69% 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.
However, the cash flow of operations start
getting positive from Q2 of year 1.

Financial Need

The company is asking for

$200,000 from investors in return for 22%
equity. The investor will also get voting
rights and seat on the board. The
Company will buyout the investors 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 angel investors for
marketing, initial purchase orders, and
R&D (product design) over a term of five
years.

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
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viable business idea for their capstone
project. The founding members explored
their personal pains they faced, and
honed on to the concept at hand when
they realized that four of them face the
same pain being an international student
in the United States.
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 each year. These
student 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.
The Product(s) or Service(s) Mix
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 with the utmost
confidence.
The primary user for Thor Bidets are
individuals from the 55 countries (exhibit
A), 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 of 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
we are focusing towards two bidet
systems the Thor Bidet and the Poseidon
Bidet. The Thor Bidet has be designed to
be used in the 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.
Entry and 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
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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. The reason is
that every year a new body of students
arrives, increasing demand each year. 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
companys research shows that the
universities are actively involved in trying
to make the transition of international
students as comfortable and smooth as
possible.
In the third year, the brand would have
established a reasonable presence
amongst its customers; 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.
THE INDUSTRY ANALYSIS
SUMMARY
NAICS Code for the portable bidet
industry is: 322291 Toilet paper made
from purchased paper
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 dont 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
basically 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 United States, the only
alternative they can find is the toilet
paper, hence the industry, with portable
bidets not even having its own industry
yet.
B. Discuss briefly industry size (in dollars)
and annual growth rate (%):
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The toilet paper industry is large and
mature, with 317.77 million people
reported to use toilet paper in United
States, 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 Hindu (PewResearch), therefore
the relevant share of the industry would
be worth about $1.25 billion. There was a
20.6% growth of this industry between
2007 and 2015. (Statista)
In terms of our 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.
THE STRUCTURE OF THE INDUSTRY
AT PRESENT
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 substitutional 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).
KEY TRENDS
The portable bidet market is a new trend
in United States. 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 United
States, 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.
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 paper tissues and portable
bidets.
KEY SUCCESS FACTORS
Changing lifestyles, the growing
population, rising health expenses and a
low penetration of substitutes for paper
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tissues 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.
RELEVANT MARKET AND CUSTOMER
OVERVIEW
Considering that the portable bidet is
majorly a cultural thing for specific
regions and especially religions, the
relevant target market for Thor Bidet will
be very 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 years old Hindi or Muslim
student coming to study in United States
would be the perfect candidate, due to
the current culture in United States
making impossible to find bidets in public
restrooms. Whats more, these students
only come to United States to study
temporarily, therefore they cannot install
permanent bidets in their rented houses.
Thor Bidet will specifically target
upcoming international students because
market research found current students in
United States to 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.
MARKET SIZE AND 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 Bidets target
market.
Considering that market research shows
57% of the students coming from target
countries are not satisfied with their
current method of cleaning, and 76% of
them claiming interested in a high
pressure water bidet that provides
effective cleaning without the use of
hands, the market size that are
interested to buy a product like Thor Bidet
goes as high as 293,527 students.
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 United States
already, which corresponds to 3.3 million
Muslims and 2.3 million Hindus 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
Poseidon Bidet, Thor Bidets second
product planned to be launched during
Year 3.
9
BUYER BEHAVIOR
The majority of students researched, that
fulfil the target segment criteria, claimed
to have adapted to using tissue as part of
their stay in United States. As such, Thor
Bidet must approach targeted students
before they adapt, more specifically as
soon as they arrive in United States.
Considering the privacy effect of 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 the
Indian Bazaar. Most of new coming
students tend to be hesitant of the
American large 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 will be targeting small
imported foods shops, major airports, and
online ads specified at upcoming
international students from targeted
countries.
MARKET SEGMENTATION AND
TARGETING
Market segmentation will be very strict
and narrow, considering that this product
is only viable for people with a very
specific background, that are to live in
United States. Students with Hindi and
Islam 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 be
initative enough to change for a
reasonable price.
COMPETITION AND COMPETITIVE
EDGES
There a few competitors in the market,
but none can be considered as the
dominating player in the market as they
all our lacking one or the other attributes
that the target market has identified as a
must have for them.
Blue Bidet (Hand Pressurized)
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 high
portability. The disadvantage is that it
does not remove the need for use of ones
hand and thus does not ensure 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
10
Like the Blue Bidet, this product is quite market capture of 31,736 students during
similar in its size and portability but the the first year.
major difference is the fact that it has an
During Year 2 and 3, Thor Bidet will
electric motor that runs on battery and
expand to all incoming students from
the pump push water out. But due to the
target countries and all students pursuing
small size of the pump and battery the
studies in United States, respectively. The
pressure is again lacking and the user has
target market by the third year is
to use his hands to feel wiped and clean.
expected to be approximately 2,016,184
The water storage is small and
students, 60% of which are expected to
inadequate. In addition, this unit is quite
come across the Thor Bidet at least once
expensive and out of the reach of a
during their stay.
students budget.

ONGOING MARKET EVALUATION

Porta Bidet Pro
Due to modest initial capital investment
This product is also electric, but it is larger
requirements, Thor Bidet will start with
and not portable. It has a large water tank
only a home product. There are several
and can produce better water pressure.
factors that, according to research, have
But due to its bulky size and high cost,
been found as important to the target
this product is not for the student target
market: convenience, pressure strength,
market that Thor Bidet will be targeting.
water capacity and size. Unfortunately,
Attribute
Thor Bidet
Blue Bidet
(Hand
Biobide
t PortaBid
Generic due to the unfeasibility of providing each
s
(Our
Product)
Pressurise (Electri et Pro
Mug(Lot
a)
of the demands, Thor Bidet will to
d) c)
sacrifice certain features in order to fulfil
Qualtty High Med High High Low the most important ones, which are
Price $31 $15 $50 $75 $2 convenience and pressure strength.
Online &
Speciality Grocery
Delivery Stores Online Online Online Stores
Therefore, Thor Bidet will primarily be
Warranti used at home and will not be very
es 1 Year 1 Month 1 year 1 year None
Water
convenient for take-away. However, the
Capacity 2 Litre 500 Ml 500 Ml 1 Litre 1 Litre companys research and assessment will
Portabilit
y Medium High High Low High
be immediately shifted towards the
Pressure High Low Low Medium Very Low launching of the second product, planned
as Poseidon Bidet, after careful evaluation
of what features the target market values
the most. As part of an ongoing Research
& Development process, Thor Bidet will
ESTIMATED MARKET SHARE be evaluating the exact features and
possibilities of coming with a new, smaller
Identified international students coming and portable product that clients will be
from countries where water is the able to take with them to school, work
medium of cleansing are the primary etc. Another objective of the Research &
target market. During the first year, Thor Development will be to determine where
Bidet will be only targeting the 25 the company can save on in terms of cost
universities with the largest share of and size, and what the main factors that
students from target countries, which clients are looking for are.
translates to 52,894 students during
2016. The company expects to penetrate
60% of this market, thus equaling a
11
ECONOMICS OF BUSINESS percentages of total costs can be found in
Exhibit C.
REVENUE DRIVERS AND PROFIT
MARGINS (Contribution Margins)

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

FIXED AND VARIABLE COSTS

Thor Bidet INCs 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
insurance, marketing & advertising and
research & development. The breakdown
of the fixed costs calculations and
OVEREALL ECONOMIC MODEL
Thor Bidet INCs economic model
operates on High margins and high
volume with two revenue drivers and low
operating leverage. The low fixed cost
structure of the company allows it to
operate with low risk. To be profitable
company plans to operate on high
12
margins and high sales volumes
contributing towards high profits. All
these factors present an opportunity for
the company to capitalize on their strong
economic model.
BREAKEVEN CALCULATION
Breakeven (Units)= (Fixed Costs + Startup
Costs)/ Weighted Average Contribution
Margin
Breakeven (Dollars) = Breakeven (Units) *
Weighted Average Revenue Recognition
Cost
PROFIT DURABILITY
There is little risk of competition in the US
market as Bidets are not the primary
product used for cleansing process. The
revenue stream is strong owing to the low
risk of reduction in student intake,
forecasting issues and management
experience.
OVERALL MARKETING PLAN
Thor Bidets overall marketing goal is to
gain market share of international college
students and college institutions,
retaining customer loyalty to the Thor
Bidet in future bidet purchases. Thor
Bidets 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 proposes to promote the
product through the following means:
Thor Bidets 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 will use for advertising
purposes. Thor Bidet 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 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 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
13
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 the
institutional/wholesale order(s). The retail
price of the Thor Bidet is $36.99, while
the Poseidon Bidet is $17.99.
Competitors offer similar products at
roughly $50-$75 and $15 respectively.
The wholesale price to retail stores and
college institutions is $25.89.
Thor Bidet will enter and focus on the
following college markets listed in Exhibit
B. Through word of mouth, digital
advertising and the use of retail stores,
individual sales are expected to increase
substantially after year three once Thor
Bidet has been established in the
marketplace and the Poseidon Bidet in
launched into the market, attracting
nearly 4.2 million potential customers.
Thor Bidet will assess marketing
effectiveness through sales, website
visits, and Facebook insights. As these
factors are crucial in building marketing
and sales strategies, Thor Bidet will track
them carefully to see how to market and
sell its products most efficiently and
effectively.
PRICING
Thor Bidet Poseidon Blue Biobidet
Bidet Bidet
$36.99 $17.99 $14.95- $14.95-
(Amazon) (Amazon) $58.87 $49.99
$25.89 $12.59
(Wholesale) (Wholesale)
Thor Bidet offers a convenient, quality
product, at a competitive price compared
to competitors. The price strategy offers
the Thor Bidet to individuals on Amazon
for $36.99 and to college institutions and
retail stores, wholesale, for $25.89, which
is significantly lower than the prices of
similar products by competitors. Though
two direct competitors, Blue Bidet and
Biobidet both offer travel bidets for
$14.95, the Thor Bidet can hold more
water, has a more powerful stream and is
geared toward in-home usage. Therefore,
it does not directly compete with the
travel bidets. In year three, Thor Bidet
plans to sell a portable bidet to compete
in the travel bidet market, called the
Poseidon Bidet, which will have a retail
price of $17.99 and a wholesale price of
$12.59; competitively priced with
competing products.
The price point of the Thor Bidet was
strategically decided through market
research and comparing our product to
those of competitors. According to
market research, over 50% of
respondents said they would be willing to
pay between $31-$40, while 40% said
they would be willing to pay between $20-
$30. As Thor Bidet is targeting
international college students with
specific customs or religious norms,
strategically differentiated itself as the
low-price player in the market, making
the product affordable for college
students with low incomes.
THE SELLING CYCLE
The Thor Bidet will be accessible to the
target market in a number of ways. As
PortaBidet
digital marketing efforts will ramp up in
Pro September and January, the start of
$75 college semesters, international college
students will become aware of the
product and recognize a need for it. As
350,000 international students, from
countries in which the use of a bidet is
customary, come to the US each year for
college, Thor Bidet will ramp up marketing
in the months leading up to the start of
the first and second semesters and will
expect sales to increase during these
14
months, as well as the following months
due to increased awareness of the
product. The Thor Bidet will be sold
online on Amazon, as well as in select
stores that sell international goods around
campuses with large populations of the
target market. In addition, Thor Bidet will
sell the product wholesale to universities,
who will then pass out to international
students who customarily use a bidet in
the effort to make their transition to the
US easier. Through communication with
several university international student
organizations, Thor Bidet is confident
select universities will buy Thor Bidet
products for incoming international
students. Once the company gains
market share and liquidity, Thor Bidet will
grow its product line and expand sales
and marketing efforts to more universities
and more retail stores. Thor Bidet
believes that if it can capture market
share in the college segment, these
students will go on to become loyal
customers the rest of their lives.
SALES TACTICS
Thor Bidet will hire two sales
representatives who will be responsible
for selling the product wholesale to select
college institutions and retail stores. Thor
Bidet feels that if it can get college
institutions to buy the product for
incoming international students, then
product awareness will spread through
word of mouth and individual online sales
will consequently increase. The hired
sales representatives will also sell the
product wholesale to retail stores in
proximity to the target college
institutions. Thor Bidet believes it is
important to have a street presence in
areas that are densely populated with its
target market. The sales budget will
include the salaries of the two sales
representatives, traveling costs,
incentives, and overhead.
ADVERTISING AND PROMOTIONS
Thor Bidet will use the online website,
Facebook, Instagram, Snapchat, YouTube,
retail stores, and guerilla marketing
tactics to build product awareness and
communicate the value proposition to its
target market. In regards to reach and
cost, Thor Bidet can post advertisements
on Facebook, Instagram, and Snapchat
directly to its target market. Through
Facebook, Thor Bidet can reach 20,000
people in its northeast target market
alone. For each person to see the post
one time, the cost is $120. There are
more than 213 million Facebook users in
India alone, therefore justifying the use of
Facebook advertising. Thor Bidet plans to
advertise heavily on Facebook during the
months of September and January, as
students are thinking about what they
need for school and/or going back to
school during these months. All social
media will be managed by $99Social, an
online platform that creates digital
advertising content and manages digital
advertising, ensuring a uniform ad
strategy across several social media
platforms.
In regards to Facebook advertising,
Exhibit A shows how Thor Bidet calculated
the conversion rate (the percentage of
people who buy the product after clicking
on the advertisement). According to
market research, the cost per click is
$0.36. As Thor Bidets 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.
15
With discount factor of 20% in the first
two years and 70% in year three onwards
(due to increased brand awareness), Thor
Bidet 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
calculated the conversion rate for the
Poseidon Bidet to be 20% (Exhibit A).
Thor Bidet 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 Bidets target market.
Nevertheless, during this festival, it is
tradition to smear one another with
colorful paint. Thor Bidet 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 can reach
countless people. Thor Bidet will expand
this campaign to more colleges in the
coming years.
PUBLICITY
Thor Bidets 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 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.
WARRANTY/GUARANTEE POLICY
Thor Bidet 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.
DISTRIBUTION
Thor Bidet 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
to target a mass market of people all over
the United States, while the retail
16
locations will allow for a street presence product line has only one product the
in areas that are highly populated with risk is high as the brands image is
the target segments. Furthermore, completely based on this one product
distribution through college institutions and thus we have focused towards
will not only reach the target market, but
making sure that the product is tested
will also increase brand awareness in
areas that are densely populated with the
extensively. The testing for both
target market and can help Thor Bidet products will be done in
gain new customers. harsh/extreme and normal conditions
to make sure the pressurized
DESIGN AND DEVELOPMENT container does not pose any kind of
hazard. The seals, nozzles and
PLAN pumping mechanism all will be pushed
to the extremes to make sure that
DEVELOPMENT STATUS AND TASKS
they can withstand above normal
usage for at least the warranty period.
Thor Bidet Inc. is currently in
possession of their first proof of
PRODUCT IMPROVEMENTS AND NEW
concept prototype for the semi PRODUCTS
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 a tissue 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 Thor Bidet Inc. will engage Nectar
batch of mass Product Development
produced
Ready products
to Mass June 17 (http://nectarpd.com) based in Long
Produce by Beach, CA (a firm with 25 years of
DIFFICULTIES AND RISKS experience, 20+ design awards and
70+ patents), to come up with
The final pre mass production creative designs for a convenient and
development & testing process has portable bidet, that fulfill the
been given a time of two months as requirements of our target market
The Company is committed to deliver customers. The table defines the
a product in the market that is not process for Poseidon Bidet (Exhibit A)
riddled with issues. Since the initial R&D plan, and gives a tentative
17
timeline for the process. It also makes
clear at which part of the process
Nectar and Thor Bidet Inc. will jointly
be working and where the onus will be
clearly on Nectar to deliver for Thor
Bidet Inc. The reasons why The
Company believes in pursuing a
secondary product are; One the
original product does not have a
design or utility patent and thus
cannot be defended in the long term;
Second the company feels that there
is a larger target market for a more
portable bidet system in the US where
a larger demographic can be targeted
while creating a design patent that will
protect the companies potential
revenue streams.
COSTS
Thor Bidet Inc. initial design and
development budget will be a total of
$100,000 for two years. The above
table clarifies what assumptive cost
have been taken by Thor Bidet Inc. to
come up with this R&D budget. If the
budget is underestimated, it will
undermine the development of the
product. Also, underestimation of the
budget will restrain our ability to have
cash on hand for future investments.
OPERATIONS PLAN
Operating Model and Cycle
Thor Bidet Inc. plans to sell to customers
(B2C) and stores such as India Bazaar and
institutions(B2B). On recognizing the
need, a customer goes online to buy the
product. Once he/she decides to buy the
bidet, he/she can place the order on
Amazon. The customers also have an
option to buy product from nearby stores,
the locations of which can be found on
the website by simply entering the zip
code and the website will give a list of
participating stores nearby.
Once the payment is made by the
customer, the order details will be shared
with the Amazon fulfillment center.
Amazon will responsible for storage and
delivery of products to customers. For
brick and mortar transaction or an
institution sale consisting of blanket
orders, Thor Bidet will be giving a coupon
code to stores and institutions so that
they can avail discounts on large
quantities. These orders upon payment
will also be handled and fulfilled by
Amazon. Amazon fulfillment will be
constantly monitoring the stock levels and
will be coordinating with Thor Bidets
COO.
The bottleneck could arise in the delivery
of the outsourced products from the
manufacturer. The company has
considered this since it will have major
impact on all stages of the supply chain
and in the absence of proper bottleneck
management major disadvantages such
as lost sales and lower levels of customer
service could occur. However, to increase
the throughput and not be stalled, the
company will have deep supplier
relationships and would be keeping
18
contingencies/safety stock to buffer
against any shipping irregularities.
In the operating model (Exhibit D), front
end comprises of stages wherever the
customer interacts with the company or
goes online to make a purchase. The
stages namely - customer feels the need
after coming across a marketing
campaign, goes online or to a retailer and
gives a feedback on social media or
Amazon website are front-end whereas
the stages transaction logging,
information sent to fulfillment center and
order delivery and completion are back-
end.
The lead time for our operating cycle is 3
weeks (as shown in Exhibit D) and is the
time from the point when customer places
an order request to the delivery of the
product to the customer.
The company will have a single supplier
which will ensure that there is minimal
product variation. The quality issues can
arise with the pump leading to clogs and
leaks. To keep a check on this and ensure
the customer satisfaction, the company
will provide a one-year warranty and the
Amazon will ensure that products
return is hassle-free and a new bidet is
provided to the customer.
OPERATIONS STRATEGY
Thor Bidet Inc. has a ready prototype for
Thor Bidet and for Poseidon Bidet, the
company will be collaborating with Nectar
Product Development
(http://nectarpd.com) based in Long
Beach, CA, a firm with 25 years of
experience, 20+ design awards and 70+
patents, to come up with creative designs
for a convenient and portable bidet, that
fulfill the requirements of our target
market customers.
Thor Bidet Inc. has identified Taizhou
Luqiao Lvxin Sprayer Co. Ltd. as its
potential offshore manufacturer. The
manufacturer located in Zhejiang, China
(Mainland) is a professional
manufacturing company, has ample
capacity and stringent quality measures
that perfectly suit the supplier needs of
the company. In addition, Thor Bidet Inc.
recognizes that as a startup it will require
building strong relationship with its
supplier to assure that the quality
variations are at a minimum and the
production delivery schedule is followed
properly. Regular trips will be conducted
by the CIO to the manufacturer to
facilitate information sharing and
conducting joint improvement activities to
mitigate the risks associated with having
a single supplier.
The company lacks the logistics and
storage expertise and to deliver high
customer satisfaction levels and handle
deliveries on a large scale, Thor Bidet has
decided to partner with Amazon, an
industry leader in inventory, order and
customer relationship management for
storage and fulfillment to. Also, Amazon
is an extremely popular e-commerce
portal in the college student market.
GEOGRAPHIC LOCATION
Thor Bidets planned geographic office
location will be in Syracuse. 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
reach out easily and build a brand in a
short span of time.
CAPACITY LEVELS AND INVENTORY
MANAGEMENT
19
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.
MANAGEMENT TEAM
(Organizational structure found in Exhibit
E)
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. 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 wil 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.
20
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,
including Lacrosse camps, both in terms
of operations and marketing.
As CMO, Mr. Piroli will be responsible the
advertisement, marketing plan, and sales
of the product.
Sales Agents: Two full-time employees
during Year 1 and Year 2, four full-time
employees on Year 3
Mr. Piroli will also be supervising the two
sales agents that are responsible for
completing deals with target institutions
and helping market the brand and its Thor
Bidet product initially. Once the second
product, Poseidon Portable Bidet is
launched, Mr. Piroli will be supervising the
additional two sales agents that the
company plans to hire.
MANAGEMENT COMPENSATION AND
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 agents, 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.
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
21
Mr. Walsleben boasts 30+ years in Service and contracts that the company
managerial and executive positions, will be needing.
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 OVERALL SCHEDULE

and executive operations positions for
over 16 years, most recently serving as
Chief Operating Officer of Taavun Ltd in 2017
Pakistan. Mr. Khan will be using his May Incorporation of the
experience and expertise in the venture as C Corp in
operational side of the business to guide Delaware
the team towards reaching operational Begin office and
and supply chain efficiency.
warehouse lease
Create first
prototype of the
Product Development Advisor: Harini
Thor Bidet
Tatnis Initial plans sent to
manufacturer for
Ms. Tatnis is a certified Scrum Master and design of product
certified Scrum Product Owner with Hire website
substantial experience in leading offshore designer
and onshore development teams, Hire 2 sales
including quality assurance lead representatives
expertise. Ms. Tatnis will be advising the Develop overall
team on product development goals, marketing strategy
strategies, and helping with the planned Develop distribution
outsourcing of the product manufacturing
strategy (Amazon)
to China.
Provide founders
In addition to the three advisory board investment of
members, the team will also be $100,000
establishing a professional relationship Seek $200,000
with a legal advisor, who will be giving investment
guidance with regards to the legal issues, Hire corporate
trademark, copyright, and other Terms of marketing agency

22
 to provide uniform Ramp up marketing
advertising content efforts (Facebook
across platforms Ads)
(Happa Studios) Create feedback
Hire social media forms to send
creative agency to customers
manage social October Continue individual-
media platforms online, retail, and
($99 Social) university sales
June Design, develop, Continue marketing
and testing of strategy
product is Begin to analyze
completed customer feedback
Website is finished forms
Sales Novemb Respond based on
representatives er customer feedback
meet with university forms
institutions and Continue individual-
select retail stores online, retail, and
July Place first Thor university sales
Bidet order with Continue marketing
manufacturer strategy
(orders continue on Decemb Continue individual-
a monthly basis) er online, retail, and
Start official university
operation of Continue marketing
business strategy
Enter select retail
stores
Begin POS
marketing strategy
(retail stores) 2018
August Begin Facebook Quart Breakeven in January
advertising er 1 2018
Begin individual- Continue individual-
online, retail, and online, retail, and
university sales university sales
Intense marketing Ramp up Facebook
geared toward advertising in January
international Launch Holi campaign
students going back in March
to school Extend marketing
Septem Continue individual- strategy to hit all with
ber online, retail, and target religious
university sales customs
23
 Explore expansion into
more retail stores

2019-2021
Year Continue strong sales
3- on east coast for Thor
2019 Hire 2 more sales
representatives
Patent the Poseidon
Quart Expand Bidet
er 2 college/religious Place first order from
market to entire east manufacturer
coast (Poseidon)
Enhance online Launch the Poseidon
marketing strategy Bidet
through targeted Begin expansion to
display entire US for Thor and
advertisements Poseidon
Prepare operations for Enter more retail
peak season stores
Quart Ramp up Facebook Launch Holi campaign
er 3 advertising in (increase from
September previous year)
Continue sales and Continue expansion
collect customer into retail stores
feedback Continue R&D
Quart Continue sales in Year Continue sales
er 4 university and online 4- throughout US
channels 2020 Enter more retail
Continue marketing stores
strategy Launch Holi Campaign
in March
Expand team as
needed
Continue R&D
Year Continue sales
5- throughout US
2021 Enter more retail
stores
Launch Holi Campaign
in March
Complete
development plans for
new products
24
 Explore expansion
opportunity into
Europe
Thor Bidets 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 above,
Thor Bidet 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 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 Bidets website will
be completed and Thor Bidet will be
available for sale on Amazon and in select
retail stores. As Thor Bidet 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 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 will continue its sales through
individual purchases on Amazon, select
university organizations, and select retail
stores. Additionally, Thor Bidet will
continue with the marketing strategy, and
send/receive/analyze customer feedback.
Thor Bidet will break even in January
2018. Further in 2018, Thor Bidet will
begin expanding to more retail locations
and more university organizations. Thor
Bidet will ramp up marketing in the
months of September and January, the
months in which its target market goes
back to college. Thor Bidet will begin its
Holi Campaign in March 2018, with plans
to increase the campaign each March to
follow.
From 2019-2012, Thor Bidet will continue
strong sales and marketing on the east
coast, while exploring growth
opportunities both through retail stores
and through expansion across the entire
United States. In year three, Thor Bidet
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 will
continue researching and developing new,
related products and continue with the
sales and marketing strategy. Finally, in
year 2021, Thor Bidet will complete the
development plans for new products and
explore expansion opportunities into
Europe.
ASSUMPTIONS
To compute forecast revenues, the
company will be taking the total number
of international students expected to
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 a 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 third year, the company
expects to rocket its revenues through the
25
launch of another product portable bidet
that will cater to the needs of
international students and also bear
aesthetic features so that it can be carried
around.
Due to limited budget and the fact that
the company will strictly be serving as a
connecting party between the outsourced
production and outsourced distribution,
we assume 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 a
modest sales team that are expected to
be paid $80000 per year.
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 Thor Bidet and the
Portable bidet, respectively.
No capital expenditures or patent licenses
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.
RISKS
Demand Risk: Thor Bidet 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 is
targeting international students, if this
population decreases in the near future,
Thor Bidet may miss its sales projections.
Furthermore, if Thor Bidets 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 will mitigate these risks in
several ways. First, through market
research, Thor Bidet 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, Thors 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
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.
Operational Risk: Thor Bidet projects its
design and manufacturing costs to be
$8.56 for the Thor Bidet and $6.46 for the
portable bidet. However, there is a risk
that these costs will be greater than
expected. In addition, since Thor Bidet is
outsourcing its manufacturing to India,
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 India, there is a risk of late
shipments of the product.
To mitigate these risks, Thor Bidets COO
will oversee production in India, ensuring
costs are kept low and product quality is
up to par. Thor Bidet will also keep safety
stock of inventory in case a problem
arises in manufacturing or shipment,
26
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 does
not have a patent, competitors can easily
imitate the product itself. This is a critical
risk that Thor Bidet 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.
FINANCIAL PLAN
Thor Bidet INCs financial plan offers a
great business value for investors. The
companys revenue will start in August
2017 through the sales of our first product
Thor Bidet. During the first year of
operations, the company would have net
loss of $6,307.48 dollars. The companys
second product Poseidon bidet will be
introduced in the first quarter of the third
year.
During the initial phase, founders money
will be invested and used to bootstrap
and start the business. The company will
break-even at 28,843 units in 9 months.
The total market potential for Thor Bidet
is 1.3 million buyers and for Poseidon
Bidet is 4.6 million buyers in their
respective launch years. The company
has calculated a sales potential target for
Thor Bidet of 2% in the first year that
builds to 9.6% by the fifth year. Since
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 third year of sales.
The companies CEO and CFO would 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.
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 start
getting positive from Q2 of year 1. 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 24.56% from year 2
onwards. The return on equity has an
exponential increase from 115.78% in
year 2 to 459.69% in year 5.
The company has accounted for sales
return and allowance which is assumed to
be 3% of the revenues. Also, the company
has kept 15% operational expense buffer
that will help to mitigate the risks of extra
expense if required. Our major expenses
would be purchases, marketing and
research and development. Apart from
27
these, a major expense would be startup sanitary toilet products. The company will
costs which would be incurred in the first make sure that there is a good fit
year. The company will breakeven in between both the sides.
about 8 months. The net income after
taxes will start becoming positive from
the Quarter 2 of the second year. 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 or online delivery channel in
the same month. We have seasonal cash
flow sensitivity with respect to sales in the
first and fourth quarter of the financial
year. The company plans to keep the
salaries of the employees constant till
our financials goals are met.

COMPANY OFFERING

Thor Bidet INC is seeking an investment

of $200,000 from investors in return for
22% equity. The investor will also get
voting rights and seat on the board. The
NPV of the company is $917,612.76 using
DCF valuation technique. The company
also considered risk adjustment, market
risk premium and long term growth rate Works Cited:
resulting to a discount rate of 40.80%. https://www.statista.com/search/?q=toilet
After analyzing the financial needs, the %20paper
company plans to use the money from
angel investors for marketing, initial http://www.pewresearch.org/fact-
purchase orders and R&D (product tank/2016/01/06/a-new-estimate-of-the-u-
design) over a term of five years. The s-muslim-population/
company has used cash safety cushion in http://clients1.ibisworld.com/reports/us/in
terms of 15% operating buffer. The dustry/default.aspx?entid=425
investment is expected to be made
available during the starting months of PewResearch: http://www.pewresearch.org/fact-
the business to achieve optimal growth tank/2016/01/06/a-new-estimate-of-the-u-s-
and manage sales. The Company will muslim-population/ft_16-01-
buyout the investors for $1,000,000 or 5x 05_numbermuslims/
their initial investment at the end of year
five. The preferred exit strategy would be
through acquisition from a major player of
28
29
 Exhibit A

Thor Conversion Rates Poseidon Conversion Rates

30
 Exhibit B
Marketing Budget Year 1

31
 Exhibit C
Macro Market size Market Size (Thor)

32
 Exhibit C
Economic Model:
Fixed Cost:
Startup Cost:

Variable Cost:
Contribution Margin:

Breakeven: Overall Economic Model:

33
 Exhibit D
Operations:

34
 Exhibit E
Management Team:

Exhibit F
Income statement Assumptions:

35
Income Statements:

36
37
38
39
Statement of Cash Flows:

40
41
Balance Sheets:

42
43
 Exhibit F
Valuation:

44
 Exhibit C
Economic Model

45
Contribution Margin:

Breakeven:

46
47