BackdropDepot - UM College of Business · of muslin and printed photography backdrops, large stage equipment suppliers offering a wide array of equipment, and two high-end stage curtain

[Type text]

BackdropDepotcom

POINT CLICK BUY

A Business Plan

Authored by Robert L Reum

Contact Backdropdepotcom

Robert L Reum 701 Whitthorne Street A

Shelbyville TN 37160 salesbackdropdepotcom

3172011

Plan copy no ______ of 10 The components of this business plan have been submitted in confidence By accepting delivery of this business plan the recipient agrees to maintain confidentiality and return the plan upon request Reproduction or distribution of the business plan andor concept without permission is prohibited

BackdropDepotcom

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TABLE OF CONTENTS

1 Executive Summaryhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip vi

2 The Company Backdropdepotcomhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1

21 Business Description

22 Products and Services 23 Management Team

3 Industry Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 4

31 US Retail Industry 32 Specialty Retail Industry

33 Non-store Retail Industry 34 E-Commerce Industry 34 Textile Manufacturing Industry Curtains and Drapery Mills

4 Market Analysis helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 7

41 Competitors 42 ProductService Positioning and Differentiation 43 Target MarketCustomer Profile

5 Marketing Planhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 10

51 Target Market Strategy

52 Product and Service Strategy 53 Pricing Strategy 54 Distribution Strategy 55 Advertising and Promotion

56 Sales Strategy 57 Sales Forecasts

6 Operating Planhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 18

61 Retail Operations

62 Manufacturing Operations

7 Development Planhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 18

8 Financial Planhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 19

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Appendix A Financial Exhibitshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 21

Exhibit 1 Financial Assumptions

Exhibit 2 Pro Forma Income Statement Year 1 Exhibit 3 Pro Forma Cash Flow Statement Year 2 Exhibit 4 Pro Forma Income Statement Years 2 to 5 Exhibit 5 Pro Forma Cash Flow Statement Years 2 to 5 Exhibit 6 Pro Forma Balance Sheet Five Years Exhibit 7 Sensitivity Analysis

Appendix B Exhibitshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 30

Exhibit 11 Development Timeline

Exhibit 12 Backdrop Photos Exhibit 13 Backdrop Pricing Tiers Exhibit 14 Facility Photos Exhibit 15 Facility Development Stages One and Two

Exhibit 16 Team Resumes

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v

ldquoGreat curtainshellipwill be buying morerdquo

eBay user topperhrly

ldquoGreat Product Fast Shipping Smooth transactionrdquo

eBay user deanofsteam

ldquoGreat Company with wonderful customer servicerdquo

eBay user reabold

ldquoLove itrdquo

eBay user koolart

ldquoA great seller to work with on time deliveryrdquo eBay user jdlap813

ldquoGreat to work withrdquo eBay user jedwardmorris1950

ldquoVery good quality thank yourdquo eBay user barelatreasures

ldquoFast shipping was needed and she came through Thank you Good productrdquo

eBay user pintojr

ldquoGreat service and great products Thanksrdquo eBay user topperhrly

ldquoA+++++++ FAST SHIP THANKSrdquo eBay user hummerchik

ldquoGreat seller Easy to work withrdquo eBay user jdlap813

ldquoGreat item Great price Thanks so much A++++++++rdquo eBay user ktnjd

ldquoThank you Curtain and qasw567 are MAGNIFICENTrdquo eBay user moejam13

BackdropDepotcom

vi

1 EXECUTIVE SUMMARY

Financing Backdrop Depot will not seek outside financing at startup The company will be funded by ownersrsquo contributions and revenues generated from the sale of stage curtains backdrops and accessories

The Opportunity There are currently no companies in the stage equipment industry specializing in stage curtains backdrops and accessories Those large equipment suppliers that do sell these items typically cater their products to Hollywood and other large stage-based venues The smaller markets schools churches small entertainment venues and independent entertainers are a relatively large yet overlooked market as represented by the $121364 and 32 growth achieved in recent market tests

The Company Backdrop Depot will become the preeminent online retailer of backdrops stage curtains and accessories for value-minded small businesses and consumers Utilizing efficient private label manufacturing and a completely web-based retail operation we will simplify the decision making and purchasing processes for our customers offer low cost high quality fabric-based stage equipment and provide superior customer service

Backdrop Depot will be established as a Subchapter S corporation and do business as Backdropdepotcom The business will be a closely-held company registered in the State of Nevada The operation will be a family owned and operated business with physical facilities located in Shelbyville TN

The Team Backdrop Depot will be lead by a management team with over 40 years of combined experience training and education in entertainment business management and marketing

Products Our initial product offerings will be limited to our private label backdrops and stage curtains and miscellaneous attachment accessories Backdrop Depotrsquos private label backdrops and stage curtains represent simple yet proven designs that are made with close attention to quality We will offer eight tiered backdrop packages with options based upon the best selling sizes and features In addition Backdrop Depot will offer customer ordered backdrops and stage curtains based on our hand-cut and straight stitched platform with selections base upon fabric color size and optional features such as top attachment finishes hemmed side finishes and bottom attachment or hemmed finishes

Financial Performance Backdrop Depotrsquos private label manufacturing and web-based retail operations will allow the company to achieve a broad reach while keeping operating costs low With the ownersrsquo contributions and sales as the sole source of funding and growth Backdrop Depot will extend operations to include Backdropdepotcom the companyrsquos eBay store and selling products on Amazoncom These new retail channels will spur Backdrop Depot to increase sales from 947 units $307394 in the first year of the new operation to 3359 units for just over $1 million by the end of year five With fantastic gross profit and operating margins of 77 and 36 respectively Backdrop Depot represents a tremendous revenue generating growth opportunity for the companyrsquos investors

BackdropDepotcom

1

2 THE COMPANY BACKDROPDEPOTCOM

21 The Opportunity

In late 2006 lifetime stage professional Rhea Yancy identified a fantastic opportunity Preparing for an upcoming outdoor concert Rhea began looking for a source for stage curtains or backdrops to act as a background for the stage Her search turned up four sources local upholsterers and fabric-based equipment manufacturers that made everything from canvas awnings to leather seat covers numerous individual online retailers (primarily selling on eBay) of muslin and printed photography backdrops large stage equipment suppliers offering a wide array of equipment and two high-end stage curtain suppliers that focused on serving the needs of Hollywood and other large entertainment venues Nobody specialized in simple and affordable backdrops None of the product options met Rhearsquos needs and all were quite expensive so she decided to make her own She ended up with a low cost high quality backdrop that was perfect for what she needed This was the first time Rhea thought she might have uncovered an opportunity

A year later with bookings becoming increasingly irregular Rhea sought additional income and decided to test the opportunity she uncovered earlier Rhea decided to test the opportunity and listed her backdrop for sale on eBay To her amazement the backdrop received many bids finally selling for just under $500 by the end of the eBay auction This was nearly 900 more than the item cost to make Both shocked and excited by the sale Rhea decided to try for repeat success and created a listing for another backdrop Although she didnrsquot have another stage curtain to sell at the time Rhea extended the listingrsquos delivery schedule to allow enough time for her to produce another curtain if her listing was a success To her delight the first experience was repeated she quickly sold another backdrop for nearly $500 This was the start of what Rhea jokingly calls her ldquofull-time hobbyrdquo1

Despite no official organizational structure operational strategy and zero marketing this ldquofull-time hobbyrdquo has done quite well for the Rhea In their first year of making and selling backdrops Rhea netted $9171596 and since then her sales have grown 323 to $121364 in 2010 an average annual growth rate of 1062 In an equally impressive fashion she has maintained an average gross margin of nearly 71 and an average operating margin of 44 over the same period2 In addition Rhea has successfully maintained a remarkable 100 eBay seller rating3 still the only place she currently sell her backdrops1

Continued success and increasing demand prompted Rhea to ask if this might be a larger opportunity that she originally thought By mid-2010 increasing demand from churches schools small entertainment venues and individual entertainers pushed Rhea to the limits of what they could produce What had began as a simple hobby had quickly turned into something quite different something that had serious potential Unsure of which steps to take first she partnered with her son Robert Reum to explore the possibility of significantly expanding her little project and launching a new venture

1 Yancy Rhea Telephone Interview December 12 2010

2 Yancy Rhea Financial Records Compiled January 5 2011

3 Qasw567 User Profile eBay January 6 2011

BackdropDepotcom

2


ldquoStage Equipment Made Simplerdquo

Backdrop Depot will become the preeminent online retailer of backdrops stage curtains and accessories for value-minded small businesses and consumers Utilizing efficient private label manufacturing and a completely web-based retail operation we will simplify the decision making and purchasing processes for our customers offer low cost high quality fabric-based stage equipment and provide superior customer service


23 Products and Services

231 Products

Our initial product offerings will be limited to our private label backdrops and stage curtains and miscellaneous attachment accessories

Backdrops and Stage Curtains

Backdrop Depotrsquos private label backdrops and stage curtains represent simple yet proven designs that are made with close attention to quality We will offer eight tiered backdrop packages with options based upon the best selling sizes and features In addition Backdrop Depot will offer customer ordered backdrops and stage curtains based on our hand-cut and straight stitched platform with selections base upon fabric color size and optional features such as top attachment finishes hemmed side finishes and bottom attachment or hemmed finishes

TIERED PACKAGES PRODUCT DESCRIPTION

Value Black 9 oz Non-Fire Retardant Cotton Twill Standard Backdrop with Webbing and Grommets

Quality Black 12 oz Fire Retardant Commando Standard Backdrop with Webbing and Grommets

Select Black 16 oz Fire Retardant Commando Standard Backdrop with Webbing and Grommets

Premium Black 16 oz Fire Retardant Princess Velour Standard Backdrop with Webbing and Grommets

Make it a PLUS Upgrade Any Backdrop Package from Standard to Pleated

Additional fabrics colors sizes and features available with custom orders

Accessories

Backdrop Depot will offer customers a wide array of accessories including portable frames weighting systems and multiple attachment systems such as grommet and tie lines hidden tie lines snap hooks and hidden snap hooks

(Refer to Appendix B Exhibits 17 and 18 for Backdrop Photos and Pricing Tiers)

BackdropDepotcom

3

232 Services

Our initial service offerings will be centered on providing customer service and support eliciting customer feedback and simplifying the purchasing process

Customer Service and Support

Backdrop Depot will provide 247 customer service and support through a combination of internal and hosted customer service tools including website tools (ie product information FAQ and hosted chat) email-based customer service and a hosted customer service telephone hotline

Customer Feedback

Backdrop Depot will make a concerted effort to elicit useful feedback from our customers Customer feedback is an integral component of continuous improvement and excellent customer service and satisfaction Backdrop Depot will gather feedback via interacting with customers and utilizing a number of automated tools including a feedback tab on the company website website and purchasing analytics post-purchase questionnaires and regular newsletters

Purchase Assistance

Backdrop Depot will offer multiple purchase assistance tools to add value and simplify the decision making and purchasing processes In addition to developing an easy to use and intuitive website and shopping cart Backdrop Depot will further simplify purchasing by utilizing a host of tools such as product bundling tiered product categories with discounted pricing and product recommendations based upon the past purchasing histories Finally all orders will include shipment tracking Our goal is to provide our customers with enough tools to make their purchases as seamless efficient and rewarding as possible

24 Management Team

Backdrop Depot will be a family owned and operated business Our founding management team represents a diverse combination of talent education training and experience in our target market and related fields (Refer to Appendix B Exhibit 13 for Team Resumes)

President and CEO Rhea Yancy has spent over 30 years in the entertainment industry earning numerous awards as a performer and experiencing every aspect of the business In addition Rhea has spent the past three years working closely with Backdrop Depotrsquos target market establishing a dialogue and building intimate knowledge of the market and their needs Rhea will serve as President and CEO of Backdrop Depot

Vice-President and Director of Sales and Business Development Robert Reum has ten years of experience in management He has excelled in both sales and business development earning numerous awards in both fields Robert is completing two Bachelor of Science (BS) degrees Management and International Business from The University of Montana School of Business Administration Robert will serve as the Vice-President and Director of Sales and Business Development for Backdrop Depot

BackdropDepotcom

4

Director of Marketing and Office Manager Gretchen Reum has over eight years in management a majority of that time in sales and marketing positions In addition Gretchen has spent that past three years in property management heading the customer service office of a multi-million dollar residential property management company She is currently pursuing Bachelor of Science (BS) degrees in both Management and Marketing from The University of Phoenix Gretchen will serve as Director of Marketing and Office Manager for Backdrop Depot

3 INDUSTRY ANALYSIS

31 US Retail Industry

The US retail industry represents a $3 trillion market4 and is growing at a rate of 75 The retail industry is divided between two product types durable and non-durable goods accounting for $1 trillion and $22 trillion of sales respectively6 Wal-Mart leads all retailers with approximately $3049 billion in sales6 The industryrsquos largest companies primarily general merchandisers and discount stores represent a large proportion of sales however specialty retailers account for the majority of overall sales6

32 Specialty Retail Industry

Specialty retailers are responsible for the majority of the overall US retail industry accounting for 85 of $188 trillion US retail sales through the first six months of 2010 alone7 The industry is highly fragmented consisting of relatively few giant superstores and thousands of small and mid-sized businesses7 Motor vehicle and parts dealers make up the largest segment in specialty retail with $3726 billion in sales (20 of total retail sales) followed by supermarkets gas stations and non-store retailers7

33 Non-store Retail Industry

Non-store retailers account for approximately 45 of specialty retailing generating an estimated $1681 billion in sales7 In addition the non-store retailing industry has outperformed nearly all other retail sectors with a ten-year growth rate of 7777 Of the 59375 organizations operating in the industry4 many have turned to the online retailing as a key to remaining competitive Standard amp Poorrsquos Industry Survey suggests this trend is due to the internetrsquos ability to help ldquonew businesses to gain a broad reach without opening a single storerdquo7

34 E-Commerce Industry

E-Commerce represents the greatest share of non-store retailing and is the best performing sector in not only specialty retailing but the retail industry overall The e-commerce industry reported sales of $1412 billion and $1434 billion in 2008 and 2009 respectively7 The latest figures indicate 2010 sales at $1655 billion just over 4 of total retail sales5 Financial experts suggest e-commerce 14185 retailers4 will soon represent 10-15 of total retail sales7

4 US Census Bureau 2007 Census July 24 2009 httpfactfindercensusgov Retrieved January 3 2011

5 US Census Bureau E-Stats May 27 2010 httpwwwcensusgovestats Retrieved January 4 2011

6 Aseda Jason Standard amp Poorrsquos Industry Surveys Retailing General November 25 2010

httpwwwnetadvantagestandardandpoorscomwebliblibumtedu8080 Retrieved January 3 2011 7 Somers Michael Standard amp Poorrsquos Industry Surveys Retailing Specialty September 9 2010

httpwwwnetadvantagestandardandpoorscomwebliblibumtedu8080 Retrieved January 3 2011

BackdropDepotcom

5

E-Commerce is a relatively young segment within the retail industry only gaining significant prominence as late as 19978 but according to Standard amp Poorrsquos ldquoonline sales are increasing faster than traditional retail sales and we believe that significant growth still lies aheadrdquo7 A recent Forrester Research study indicates 11 growth in online retail in 2009 7 From 2009 to 2010 online retail sales increased 148 outperforming the overall retail industry by more than 505 Additionally recent projections indicate a compound annual growth rate of 10 will propel online retail sales to $2487 billion by 20147

The online retail industry is highly fragmented with relatively few large retailers but thousands of small and mid-sized retailers Amazoncom is the dominant player in the industry with $245 billion in sales in 2009 and 28 growth from 2008 to 20097 Standard amp Poorrsquos reports ldquoWe believe the pace of online sales growth is similar across the specialty retailing landscape with online continuing to capture market sharerdquo7

Trends affecting the retail industry are due largely in part to the economy and the maturity of the industry The retail industry is highly sensitive to the economy with success largely determined by consumer spending Although the recovery has proven to be relatively slow Consumer Confidence and Consumer Spending are both on the rise As of March 2011 Consumer Confidence has risen 56 points to 7049 Consumer expenditures grew to over $106 trillion in February 2011 Consumption on nondurable goods has grown steadily increasing by 75 to $23 trillion in 2009 and another 61 to $25 trillion in 2011 For retailers this 14 growth in two years is promising bringing personal consumption on goods back to pre-recession levels10 According to Standard amp Poorrsquos 2011 marks ldquoan increase in consumer spending and higher sales for specialty retailersrdquo 7

Although improvements are evident consumersrsquo recent economic challenges are changing the demographics of the industry and the mindset of retail consumers Value is quickly becoming the key determinant in consumersrsquo purchasing decisions Standard amp Poorrsquos reports ldquoConsumers have inexorably moved to favor shopping at retailers offering the best pricevalue propositionsrdquo6

In addition to these considerations the retail industry is facing a number of other trends that affect companiesrsquo competitiveness

8 Reference for Business Encyclopedia of Business 2

nd ed

httpwwwreferenceforbusinesscomindustriesRetail-Trade Retrieved January 7 2011 9 Conference Board Consumer Confidence httpwwwconference-boardorg Retrieved March 29 2011

10 Bureau of Economic Analysis Personal Consumption Expenditures by Major Type of Product Monthly March 28

2011 httpbeagov Retrieved March 29 2011

BackdropDepotcom

6

Industry Consolidation The fragmented specialty retail industry has been experiencing a high degree of consolidation in recent years increasing the need for differentiation Standard amp Poorrsquos reports ldquothe rapid expansion of specialty chains combined with heightened competition from mass merchandisers and department stores has led to price wars and homogenization in several sub-segments Specialty retailers must therefore constantly try to find ways to distinguish themselvesrdquo7

Price Competition The current consolidation and increased competition from mass merchandisers has led to increased price competition within the retail industry As a result companies are taking a second look at the way business is done and are adapting their strategies and goals accordingly According to Standard amp Poorrsquos the most successful strategies have been

Taking an ldquoeveryday low pricerdquo strategy versus utilizing price promotions etc to attract customers6

Improving customer service6

Increasing revenues via multi-channel shopping outlets additional services and new strategic partnerships6

Achieving wider margins by cutting costs streamlining operations and utilizing private labeling6

Creatively marketing to attract new segments build stronger brands and build customer loyalty6

International Expansion In addition to consolidation as a method of expansion many retailers are looking to international markets for growth While China and India are prime candidates for expansion offering very large and growing markets many retailers are finding success in other non-US Western and emerging markets such as Canada Western Europe Central Europe Eastern Europe Central America and South America6

Technology In addition to the promise of growth offered by online sales retailers are turning to other technologies to improve operations namely inventory management systems mobile technologies social marketing and even augmented reality611

35 Textile Manufacturing Industry Curtains and Drapery Mills

Although Backdropdepotcom conducts business primarily as a web-based specialty retailer initially a majority of products sold by the company will be private label items As such additional considerations must be given to the current landscape of the manufacturing industry with particular focus on the textiles segment and more specifically curtain and drapery mills

Textile manufacturing represented a combined value of shipments estimated at $448 billion as of February 2011 up 99 from 2010 New orders were reported at $446 billion while unfilled

11

Farfan Barbara Retail Industry Information Overview of Facts Research Data amp Trivia 2011 Aboutcom httpretailindustryaboutcomodstatisticsresearchpretailindustryhtm Retrieved March 14 2011

BackdropDepotcom

7

orders were pegged at $565 billion as of January 201112 There are approximately 5930 132 manufacturing firms employing nearly 121 million people12

The manufacture of non-durable goods represents the largest proportion of US manufacturing and offers the most promise The manufacture of non-durable goods constitutes approximately $245 billion 54 of all shipments In addition this section outperformed overall manufacturing by 3 with 129 YTD growth from 2010 to 2011 With approximately 148 growth in new orders from 2010 to 2011 this sub-section of overall manufacturing looks to be relatively promising12

Textile mills are a relatively well performing segment of non-durable goods manufacturing The industry reports shipment values of $25 billion and YTD growth from 2010 to 2011 of 9112 Curtain and drapery mills compose a significant proportion of textile mills operating in the US however the overall number of mills has declined by 1513 in recent years There are 1515 companies manufacturing curtains and draperies in the US employing 13 948 people At $11 billion these companies accounted for nearly 50 of the combined shipment value of all textile mills13

These figures represent most firms that are involved in the actual finishing of various fabrics and the manufacture of curtains and draperies however manufacturers involved in only the manufacturing of individual product categories have experienced significant increases in shipment values and growth This group of manufacturers is represented by the ldquoAll other miscellaneous textile product millsrdquo classification and these curtain and drapery mills have actually grown 18 in recent years12

Despite claims that US manufacturing is rapidly shrinking often overshadowed by the manufacturing growth of China and others the US is still the worldrsquos largest manufacturer According to International Monetary Fund (IMF) and Bureau of Economic Analysis (BEA) statistics the US produces 21 of the worldrsquos products worth an estimated $16 trillion per year14 Financial firm Deloitte suggests companies can compete in the current competitive environment with a ldquofocus on right-sizing managing costs and working capital and taking additional stepsrdquo15

4 MARKET ANALYSIS

41 Competitor Analysis

Backdrop Depot will operate within two industries the e-commerce industry and the curtain and drapery manufacturing industry The US e-commerce industry is highly fragmented with

12

Savage Chris amp Stoica Adraina Full Report on Manufacturersrsquo Shipments Inventories and Orders February 2011 US Census Bureau News March 31 2011 httpwwwcensusgovmanufacturingm3prelpdfs-i-opdf Retrieved March 31 2011 13

US Census Bureau 2007 Economic Census Sector 31 EC07311 Manufacturing October 31 2009 httpfactfindercensusgov Retrieved January 8 2011 14

National Association of Manufacturers Facts about Manufacturing httpnamorgResource-CenterFacts-About-ManufacturingLandingaspx Retrieved April 2 2011 15

Deloitte Manufacturing Issues httpwwwdeloittecomviewen_GXglobalindustriesmanufacturingmanufacturing-issues Retrieved April 2 2011

BackdropDepotcom

8

14185 online retailers16 represented by relatively few large companies but with thousands of small and mid-sized businesses accounting for the bulk of the market7 There are 1515 curtain and drapery mills in the US with no single firm representing a major share of the industry13

Competition in the e-commerce industry (general merchandisers are the exception) is focused on smaller segments and based largely upon the nature of the products that each company sells Despite a small degree of product specialization competition among curtain and drapery mills is based primarily on geographic location

Backdrop Depotrsquos competitive nature more closely resembles that of the e-commerce industry centered primarily on the products we offer and less around geography While Backdrop Depot can be classified as curtain and drapery mill the highly specialized nature of our stage curtains our internet based retail operations and the identity and brand of our company are more representative of other e-commerce specialty retailers than a textile manufacturer Backdrop Depotrsquos competition is best understood by examining four categories of competitors

1 Large General Stage Equipment Suppliers Large stage equipment suppliers typically operate in a similar fashion as general merchandisers insofar as they do not specialize in any one product or product category These retailers carry a broad range of stage trappings and equipment while offering a relatively shallow offering Most of these operations are distributors for multiple manufacturers operate on relatively narrow margins and utilize brick and mortar catalogue and online retail strategies Companies that do not utilize online strategies are more geographically limited while those using online retail strategies are not While there are many of these suppliers and they offer a small selection of competing products they are more representative of future distribution opportunities for Backdrop Depot rather than heavy competition Projection Lights and Staging News is a prime example of this type of supplier

2 Large Specialty Stage Equipment Suppliers Large specialty stores typically focus on a slightly narrower range of products with a slightly deeper selection within their respective product categories While most of these operations are also distributors for multiple manufacturers private label manufacturing within their respective product category is common These companies often focus on a more targeted audience and operate on slightly larger margins than general suppliers however they also typically utilize a combination of brick and mortar catalogue and online retail strategies Large suppliers of specialty equipment (non-competing products) represent future distribution channels for Backdrop Depot Despite the relatively small number of these suppliers within Backdrop Depotrsquos market this category currently represents the most competition Rose Brand Inc is a prime example of this type of operation

3 Upholstery ShopsIndividuals Upholstery shops typically offer a modest selection of products based around a particular material such as canvas leather and other fabrics and sometimes include backdrops While some of their offerings originate from other manufacturers most of their products are hand-crafted and produced in small shops These

16

US Census Bureau 2007 Economic Census Sector 44 Retail Trade July 24 2009 httpfactfindercensusgov Retrieved January 4 2011

BackdropDepotcom

9

shops are typically operated as small businesses with a relatively local geographic focus however selling items on a company website or e-commerce website such as eBay are not uncommon While most of these competitors do not have the capacity to compete on a large scale there are thousands of these operations within the US In addition with advances in the e-commerce and logistics capabilities of small businesses they will continue to grow as a competitive threat

Although stage products and equipment represent a straight re-buy decision for those involved in stage-based activities not representing a risky or complicated decision making process17 and the industry is relatively mature there are significant opportunities for a company with the right value proposition target market and positioning strategy

42 Value Proposition

Backdrop Depot will deliver the ldquoResonating Focusrdquo value proposition18 The following tenets are the basis for this approach

Learn from your customers

Address your customers most important needs

Document the value of your superiority

Backdrop Depot will deliver on our ldquoResonating Focusrdquo value proposition by following two strategy archetypes18

1 Customer Intimate Backdrop Depot will focus on a relatively narrow niche and highly targeted market using a keen understanding of customers and their needs quality products and top notch service to attract and retain customers build customer lifetime value and achieve high margins

2 Operationally Excellent Backdrop Depot will focus on serving a more price-sensitive target market delivering the perfect combination of quality price and ease of purchase to customers

43 Target MarketCustomer Profile

Backdrop Depotrsquos initial target market is represented by four customer groups representing both business (B2B) and consumers (B2C) Our B2B customers include churches schools and small entertainment venues totaling 570936 establishments4 19 20 21 Our B2C customers are entertainers and those that typically work in one of the industries represented by our B2B customers and total approximately 77890 people21 The total size of our initial target market is 648826

17

Solomon Marshall amp Stuart Marketing 2009 Pearson Custom Publishing Prentice Hall Upper Saddle River NJ 18

Mohr Sengupta amp Slater Marketing of High-Technology Products and Innovations 3rd

ed 2010 Pearson Publishing Prentice Hall Upper Saddle River NJ 19

Hartford Institute for Religion Research The Hartford Surveys httphirrhartsemeduresearchfastfactsfast_factshtml Retrieved February 7 2011 20

First Research Industry Profiles 2011 httpfirstresearchcomindustry-research Retrieved February 7 2011 21

US Census Bureau Detailed Occupation and Median Earnings reports 2008 httpwwwcensusgovhheswwwioindexwhatsnewhtml Retrieved February 9 2011

BackdropDepotcom

10

While there are many segments that are involved in stage-based activities and require similar products to those offered by Backdrop Depot our target market represents industries that have an even more pronounced sensitivity to economic sociological and other factors influencing business operations The key drivers to success for these organizations are low-costs efficiency and a focus on value making them an ideal target market for Backdrop Depot

In addition while many of these customers currently purchase stage products from either general or retail stage equipment suppliers they represent a tertiary market to these suppliers With the larger suppliers either selling a wide variety of products or focusing on more commercial markets such as movie theatres and large entertainment venues the needs of Backdrop Depotrsquos target market are overlooked Based upon these considerations this makes our target market an ideal fit for our products services and ldquoResonating Focusrdquo value proposition

43 ProductService Positioning and Differentiation

Backdrop Depotrsquos goal is to become the focused cost-leader within the stage equipment industry utilizing efficient private label manufacturing and a completely web-based retail operation to offer quality low-price products to a small market segment within the overall industry Backdrop Depot will achieve this goal by adopting a three part positioning strategy that includes

Variety-based positioning While typical competitors offer a broad range of stage products and equipment Backdrop Depot will focus on producing a narrower subset of equipment that fits well with the companyrsquos skills abilities and resources

Needs-based positioning Serving a broad market is not always the best approach to achieving customer satisfaction particularly when different groups of customers all have different needs Backdrop Depot will focus on a specific group of customers tailoring all activities to best serve their needs

Access-based positioning While access-based positioning typically involves segmenting customers based upon access to those customers usually geography and the activities required to reach them Backdrop Depot will utilize a completely internet based operation to achieve the same effect Backdrop Depotrsquos access to the local Nashville TN one of the worldrsquos largest entertainment centers also represents this strategy

5 MARKETING PLAN


Backdrop Depot will initially employ a concentrated target market strategy Backdrop Depotrsquos target market represents a relatively large horizontal market encompassing multiple customer groups that perform the same function throughout numerous industries and share similar needs and characteristics We will utilize coordinated marketing strategies to address this segment We will be successful in our efforts based upon the following considerations

Backdrop Depot can offer superior value to the customers within this segment

Serving this segment fits with Backdrop Depotrsquos resources capabilities and objectives

BackdropDepotcom

11

Backdrop Depotrsquos image and brand represent a good fit with this customer base

52 Product and Service Strategy

Backdrop Depotrsquos product and service strategy will be centered on offering a relatively narrow yet deep assortment of stage equipment to our value-minded customers and simplifying the decision making and purchasing processes through value-added services

NARROW BROAD

SHALLOW Airport Bookstore A few Lord of the Rings books

Samrsquos Club Lord of the Rings books t-shirts and toys

DEEP

wwwlegendaryheroescom Internet retailer selling only merchandise for Lord of the Rings The Highlander Zena Warrior Princess and Hercules

wwwAmazoncom Millions of listings from many product lines electronics apparel jewelry etc

Backdrop Depotrsquos product mix will be limited to fabric-based stage equipment We will focus on product line extensions adding new items such as table skirts (stretching) and adding additional backdrop styles (filling) to our existing product line to achieve our desired level of growth17

Our overall product strategy is built upon three tenets

1 Provide Quality Backdrop Depot will focus on providing quality products and services by focusing on these key factors quality inputs best methods reliability durability precision versatility ease of use product safety and most of all customer satisfaction

2 Provide Consistency Backdrop Depot will ensure that our customers receive the same quality products and services each time every time

3 Satisfy Customersrsquo Needs Backdrop Depot will meet and exceed our customersrsquo needs and expectations by focusing on customer feedback purchasing behaviors and top notch customer service and support

Backdrop Depot will combine our core products with value-added services to offer our customers the ldquowholerdquo product17 most efficiently meeting their needs and building customer loyalty

53 Pricing Strategy

Backdrop Depot will utilize a hybrid pricing strategy Our strategy is designed to achieve five primary objectives over the next five years

1 Increase sales and market share Utilize pricing strategies that help the company meet or exceed the industryrsquos 10 annual growth rate

2 Maximize profits Utilize pricing strategies and efficient private label manufacturing to maintain a 60 minimum gross profit margin

BREADTH

DEPTH

BackdropDepotcom

12

3 Create and defend our competitive position Maintain pricing strategies that enhance the companyrsquos competitive position and discourages new competitors from entering the market

4 Create and maintain customer satisfaction Utilize pricing strategies that help simplify the decision-making process and exceed customer expectations

5 Enhance our brand and image Utilize pricing strategies that maintain the companyrsquos focused efficient and value-oriented image and brand

Our pricing strategy will include elements of customer-oriented pricing value pricing and cost-plus pricing In addition Backdrop Depot will utilize multiple pricing tactics to support our objectives and pricing strategies

Customer-oriented Pricing

Backdrop Depot will always focus on satisfying our customersrsquo needs We will maintain a customer-centric focus by incorporating customer-oriented principles in our pricing strategies

Understanding how our customers use our products

Focusing on the benefits our customers receive from using our products

Considering the costs our customers incur to purchase and use our products

By understanding these key elements Backdrop Depot will be able to more effectively gauge the value our pricing will represent to our customers Our customersrsquo perception of value is the ldquotrue arbiter of pricerdquo22

Value Pricing

Backdrop Depot will utilize value pricing or ldquoeveryday low pricingrdquo to provide the ultimate value to our customers Maintaining value pricing eliminates our reliance on special sales promotions to generate interest and represents the most effective strategy to best serve our customers and meet all of our pricing and strategy objectives

Cost-plus Pricing

Backdrop Depot will utilize elements of cost-plus pricing to maintain the companyrsquos profit and strategy objectives Utilizing the minimum markup element of this pricing strategy in conjunction with price ceilings based upon our competitors pricing (typically 20 lower than Rose Brandrsquos products) and other industry benchmarks we will effectively maintain sufficient margins to support all of our objectives

Other Pricing Tactics

Backdrop Depot will utilize multiple pricing tactics to support the companyrsquos objectives and pricing strategies

Bundling Backdrop Depot will offer small discounts typically 10 on bundled products such as a backdrop with an attachment system

22

Harvard Business Essentials Marketerrsquos Toolkit 2006 Harvard Business School Press Boston MA

BackdropDepotcom

13

Tiered Pricing Backdrop Depot will utilize a combination of standardized product packages and tiered pricing to simplify the decision-making and purchasing processes and stimulate sales (Refer to Appendix B Exhibit 12 for Backdrop Pricing Tiers)

Upgrades Backdrop Depot will stimulate incremental revenues by offering individual product feature upgrades at an extra charge

Sales Promotions Backdrop Depot will use sales promotions sparingly typically offering seasonal discounts in a form that supports increased spending (ie 10 off when customers spend $300) rather than discounts on individual items

Special Offers Backdrop Depot will utilize special offers typically 20 or more discounts highlighted on the home page of the website to liquidate returns overstocks etc

Trade and Quantity Discounts Backdrop Depotrsquos future distributors (other than eBay and Amazon) will receive additional discounts based upon each partnerrsquos function and the quantity of products ordered

Delivery Pricing

Backdrop Depot will utilize FOB origin pricing making the exact cost of delivering products from the companyrsquos factory to the customer the purchaserrsquos responsibility To make the shopping experience as seamless and helpful as possible our websitersquos shopping cart will instantly calculate shipping charges based upon the product size weight and destination and include these charges in the purchase price There will be no additional markup added to shipping costs

54 Distribution Strategy

Backdrop Depot will employ a selective distribution strategy Our primary focus will be on distributing directly to customers however future strategies may include dual or multiple distribution systems with the company distributing products through additional wholesalers and retailers The key elements of our distribution strategy are cost control and efficiency Initially we will distribute our products via the following channels

Backdropdepotcom Our overall goal is to drive customers to our website to make purchases Sales through our website manufactured stored and shipped from our own facility represent the most cost effective and profitable distribution strategy In addition this strategy allows Backdrop Depot to maintain control of distribution and the effects of distribution on the companyrsquos image and brand Key elements to the company website will be a simple yet effective user experience useful content and seamless functionality

Amazoncom Backdrop Depot will list products for sale on Amazoncom Although customers may purchase certain products directly from Amazoncom product offerings will be relatively limited in an effort to drive customers to Backdropdepotcom Initially the company will not utilize Amazonrsquos logistics services

BackdropDepotcom

14

eBaycom Backdrop Depot will list products for sale on eBaycom and the companyrsquos initial distribution channel Although customers may purchase certain products directly from eBaycom product offerings will be designed to drive customers to Backdropdepotcom

Future Distribution Channels Backdrop Depot will seek additional low-cost and efficient distribution channels beginning in the third year of operation Likely candidates will be additional web-based distributors stage equipment distributors and hospitality product distributors A pull strategy would be the ideal in these situations in order to maintain control of marketing and branding activities

Logistics

Backdrop Depot will utilize a multifaceted approach to logistics We will utilize different strategies and service providers for each logistics activity

Purchasing Manufacturing and Storage Purchasing manufacturing and storage will be managed internally from Backdrop Depotrsquos facility

Order Processing Backdrop Depot will utilize an enterprise resource planning system to automate the ordering processes including the integration of ordering financing manufacturing and shipping

Shipping Backdrop Depot will utilize multiple service providers for all shipping activities based upon a number of considerations namely dependability cost speed accessibility capability and traceability The company will initially utilize UPS for domestic orders and USPS for international orders As additional distributors are added and volumes increase Backdrop Depot will investigate additional shipping options

55 Advertising and Promotion

Advertising and promotion (AampP) will play a significant role in helping Backdrop Depot meet sales growth and profit objectives and develop the company brand While many online and other non-store retailers are commonly viewed as ldquohellipessentially marketing companiesrdquo8 due to the typical role as middlemen and a myopic focus on sales Backdrop Depot will take a more strategic approach

Advertising Budget

Backdrop Depot will utilize a carefully managed advertising budget in determining annual spending on AampP To avoid sales and marketing myopia and haphazard spending careful financial management and consideration of the overall goals of the company will be utilized in developing an advertising budget for Backdrop Depot One of the more efficient approaches is to set the advertising budget as a percentage of net sales In the case of retail the percentage is typically 4 to 6 with companies entering new markets or introducing new products spending more23 Following these guidelines Backdrop Depot will initially set the annual

23

Business Ownerrsquos Toolkit Setting a Marketing Budget httptoolkitcomsmall_business_guidesbgaspxnid+p03_7006 Retrieved March 8 2011

BackdropDepotcom

15

advertising budget at 6 of the previous yearrsquos net sales and will closely monitor analyze and adjust this rate in accordance with the measured success of the companyrsquos marketing activities

BACKDROP DEPOTrsquoS FORECASTED MARKETING BUDGET

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

$728181 $1844372 $3784656 $4541589 $5449905

Integrated Marketing Communications

Backdrop Depot will utilize integrated marketing communications to reach the companyrsquos target audience Backdrop Depot will first focus on broad reaching and low cost AampP tools to initially introduce the companyrsquos products and build brand awareness only turning to more expensive and focused tools when the objective transforms to maintaining interest in the companyrsquos products and brand18

Taking this approach coincides with Backdrop Depotrsquos growth strategy and allows the company to use strict marketing metrics to measure the efficiency and effectiveness of the lower level tools before utilizing the more expensive tools that are available

1 Media Advertising Backdrop Depotrsquos primary media focus through the first two years of operation will be on online tools such as the companyrsquos website search engine optimization (SEO) and organic search advertising on Google Bing Yahoo and other search engines social media marketing on Facebook LinkedIn and other sites and limited bannerdisplay advertising on various market-related websites and directories Based upon the companyrsquos goal of driving traffic to Backdropdepotcom this form of advertising will encompass a significant proportion of the companyrsquos AampP budget Additional media advertising primarily in trade journals such as Projection Lights and Staging News and local advertising in the Nashville market will commence during years three four and five

2 PR and Publicity Backdrop Depot will utilize a professional service like PRNewswire to distribute company and product announcements to target audiences The company will also actively pursue product placements and co-sponsorship opportunities with related products and companies particularly in the local Nashville market (ie Pearl drums Gibson guitars and music groups) In addition Backdrop Depot will maintain strong ties to the community and constantly seek aligning events and causes to support

3 Direct Mail As a relatively low cost yet highly targetable form of advertising direct mail will represent a significant proportion of the companyrsquos AampP budget Backdrop Depot will first

C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH

Media Advertising and New Media

Personal Selling

Telemarketing

Catalogues Literature and Manuals

Trade Shows Seminars and Training

Direct Marketing

PR and Publicity

BackdropDepotcom

16

utilize e-mail and SMS text marketing due to their lower costs however beginning in year three the company will begin to utilize direct mail via postal delivery

4 Tradeshows Seminars and Training Backdrop Depot has already developed a trade show booth and other materials however the company will reserve trade show seminars and training activities to local events only during the first two years of operation Additional more distant activities will begin in year three with the Backdrop Depotrsquos entry into the hospitality products market

5 Catalogs Literature and Manuals Other than relatively standard printed items such as business cards and stationary very limited material will be printed for the company initially Maintaining a cost-conscious focus on efficiency Backdrop Depot will make most information and technical specifications of the companyrsquos products available online and will produce only enough material for internal and local trade show uses Additional materials will be produced when the company expands marketing activities beginning in year three

6 Telemarketing Backdrop Depotrsquos sales staff will utilize outbound sales calls when following up on customer inquiries that did not result in an immediate sales however outbound telemarketing on a large scale while offering significant potential for future operations would be too cost prohibitive to pursue during the first few years of operation Initially all inbound telemarketing will be managed internally by the companyrsquos staff Once Backdropdepotcom is launched most customer service inquiries will be managed by a hosted service

7 Personal Selling While every employee will be responsible for selling the company and brand and most other A amp P tools require a certain degree of personal selling personal selling will not be initially utilized as a primary advertising tool Once Backdrop Depot has fully utilized the lower level AampP tools to establish product and brand awareness and a more focused advertising strategy is needed at the distribution level the company will then consider higher cost-per-contact AampP tools such as personal selling

56 Sales Strategy

Backdrop Depot will utilize the companyrsquos sales strategy to achieve the companyrsquos sales objectives We will leverage our skills abilities and resources particularly information resources to conduct sales activities designed to support the Customer Intimate and Operationally Excellent strategy archetypes All sales activities will be aimed towards achieving the following three objectives

1 Build Customer Loyalty Backdrop Depot will build customer loyalty by leveraging the companyrsquos customer service and support activities multiple communication lines and customer feedback to understand customersrsquo needs and deliver on the companyrsquos promise

BackdropDepotcom

17

2 Improve Closing Ratios Backdrop Depot will improve closing ratios leading customers from brand awareness to a purchase decision by utilizing market research customer relationship management experience and other information gathering activities to better understand customersrsquo hot buttons and purchasing behaviors

3 Outsell Competitors Backdrop Depot will outsell competitors by providing our customers with the best purchasing experience best product solutions and focusing on their needs rather than the sale itself

While Backdrop Depotrsquos sales operations are relatively automated the company will instill a sense of individual responsibility for the companyrsquos sales and marketing in each and every employee Initially all employees led by both a sales and a marketing manager will be included in all sales and marketing activities Backdrop Depot will hire additional sales and marketing employees in the third year of operation with the introduction of additional products distribution channels and marketing activities

57 Sales Projections

First Year

Backdrop Depotrsquos first year sales will be derived by selling products via three distribution channels the companyrsquos eBay store Amazoncom and Backdropdepotcom

1 Sales on eBay Sales generated from eBay are forecasted based upon the Yancyrsquos 2010

sales levels a 106 average annual growth rate and an average unit price of $324502

2 Sales on Amazoncom Amazonrsquos first quarter sales volume was reported at $476 to $496 billion 142 to 150 of eBayrsquos sales and has an estimated 30 growth advantage over eBay24 25 Sales forecasts for this distribution channel are based on the assumption that Backdrop Depot can expect similar performance in comparison to our eBay sales

3 Sales on Backdropdepotcom Backdropdepotcom will receive approximately 90500 website visits each month or 1086000 per year based upon Backdrop Depotrsquos use of keywords and SEO26 Sales from these visits are estimated using the internet advertising industryrsquos average response rate of 3 18 an estimated closing ratio of 331 2

Years Two to Five

Backdrop Depotrsquos second year sales will be derived from the year-round operation of the first yearrsquos revenue generating activities and are projected to grow by the e-commerce industryrsquos forecasted annual growth rate of 106

24

Wingo Scot E-Commerce Battle Amazon and eBay on Deck Seeking Alpha April 22 2009 httpseekingalphacom Retrieved April 26 2011 25

Wingo Scot Amazon Q1 Analysis and Comparison to eBay Seeking Alpha April 25 2010 httpseekingalphacom Retrieved April 26 2011 26

Google Google Adwords Traffic Estimator Keywords Backdrops Stage Curtains httpwwwgooglecom Retrieved March 23 2011

TOTAL FIRST YEAR UNIT SALES 947 TOTAL FIRST YEAR DOLLAR SALES $307394

BackdropDepotcom

18

Backdrop Depot will begin additional initiatives to increase efficiency and expand the companyrsquos product offerings markets distribution outlets and marketing activities and expects to generate additional sales from these activities starting in the third year of operation Based upon these considerations Backdrop Depot estimates sales for year three through five will increase by an additional 10

YEAR 2 YEAR 3 YEAR 4 YEAR 5

TOTAL UNIT SALES 1944 Units 2333 Units 2799 Units 3359 Units

TOTAL $ SALES $63077608 $7569313 $90831756 $108998107

(Refer to Appendix A Financial Exhibits 1 and 7 for Sales Forecasts and Sensitivity Analysis)

6 OPERATING PLAN

61 Operating Strategy

Backdrop Depotrsquos will employ a focused-cost leader operating strategy To achieve this end all operating activities will be designed towards delivering on our ldquoResonating Focusrdquo value proposition maintaining our positioning strategy and consistently focusing on five fundamental characteristics

Price

Quality

Convenience of Buying

Service

Efficient Value Chain Management

62 Scope of Operations

Backdrop Depotrsquos will utilize efficient private label manufacturing and a completely web-based retail operation to execute the companyrsquos operating strategy We will manage all operational activities from Backdrop Depot headquarters including general management sales marketing ordering materials storage manufacturing quality assurance and shipping activities

7 DEVELOPMENT PLAN


Backdrop Depotrsquos manufacturing operations will follow a two-tiered development plan based on production capacity

1 Contract Manufacturing Backdrop Depot will initially employ contract manufacturing for all backdrop production We will utilize contract seamstresses for a number of reasons including allowing our management team to focus on sales and marketing to achieve sales-led growth the relative simplicity in product design and stitching requirements the over abundance of qualified craftspeople in our local market and significant labor cost savings for early production levels Seamstresses will undergo a brief training program and will be compensated on a piece basis ($5-10 per panel) depending upon experience quality and

BackdropDepotcom

19

proximity to Backdrop Depot headquarters Materials will be delivered each week orders called in daily and quality assurance will be performed by members of our management team Once production levels near 2400 units (five contractors producing an average of ten units per week) in the third year of operations Backdrop Depot will hire an additional five contractors to increase capacity to 4800 units We plan to begin internal manufacturing operations for our more standard products after our fifth year of operation Contract manufacturing will continue to be used for custom orders

2 Internal Manufacturing Backdrop Depot will begin internal manufacturing operations sometime after the fifth year of operation Utilizing our existing structure we will develop a manufacturing center that will facilitate the storage cutting stitching cleaning pressing packaging and distribution of all standard backdrop offerings The facility will feature multiple storage areas two efficiently designed full-process stations an open loading bay and will be conveniently attached to Backdrop Depotrsquos retailcorporate operations Based upon a 50 increase in efficiency using standardization the latest production equipment and employing eight to ten employees maximum production capacity for this facility is approximately 10000 units per year When combined with the custom order capacity produced by our contract manufacturers Backdrop Depotrsquos maximum production capacity utilizing current operating plans will be approximately 14800 units per year ($48 million in orders at our assumed average per unit price)

(Refer to Appendix B Exhibits 11 and 12 for Facility Photos and Development Stages 1 and 2)


Backdrop Depotrsquos retail operation will be a ldquopure playrdquo operation dealing directly with customers via Backdropdepotcom and other e-commerce channels to sell backdrops and accessories Additional products and distribution channels will be considered in year three Our website design hosting and other customer service features will be handled by a combination of outside service providers and hosted services We will initially use a content management system to control the information on Backdropdepotcom transitioning to a newly designed website and in-house web master when web operations are expanded in year three

(Refer to Appendix B Exhibit 18 for Development Timeline)

8 FINANCIAL PLAN

Backdrop Depotrsquos financial plan is based on a capacity of 2400 units in years one and two and 4800 units in years three through five All revenue generated will be from the sale of private label stage curtains backdrops and accessories via web-based retail channels namely Backdropdepotcom eBaycom and Amazoncom Backdrop Depot expects the break-even point of 402 units or $13036988 to be attained during the first year of expanded operations

Backdrop Depotrsquos primary goal during years one through three is to generate significant customer awareness in our target market schools churches small entertainment venues and entertainers We will transition to additional growth strategies beginning in year three Sales generated in years one and two are estimated at approximately $307395 and $63077608 with 10 annual growth

BackdropDepotcom

20

Backdrop Depotrsquos growth strategies beginning in year three include increased capacity increased marketing activities additional products and markets and an upgraded website Based on these activities we expect a 10 increase in annual growth rates bringing sales for years two through five to $75693130 $90831756 and $108998107 respectively

Backdrop Depotrsquos private label manufacturing and web-based retail operations will allow the maintenance of relatively low operating costs and high margins As part of our ldquolean and meanrdquo operations we will carry little to no inventory with products being made as they are ordered

Although Backdrop Depot is expected to generate sufficient revenue to maintain daily operations the owners of the company will invest a combined total of $96500 in property work vehicles and operating capital to fund website development and other growth related activities throughout the first year of operation While Backdrop Depotrsquos cash flow statement and balance sheet suggest an excess of cash reserves held by the company cash reserves in excess of the amount required for the companyrsquos growth initiatives and contingency reserves will be invested in a long-term investment vehicle No dividends are expected to be paid until after the facility development and growth initiatives expected to occur sometime after year five

(Refer to Appendix A Financial Exhibits 1 through 7 for all financial information)

BackdropDepotcom

21

APPENDIX A FINANCIAL EXHIBITS


EMPLOYEE AND OPERATING EXPENSES

OPERATING EXPENSES EXPENSES

$ PER YEAR

Insurance $ 250000 Maintenance amp Repairs $ 72000 Office Supplies amp Equip $ 114312 Web Hosting $ 240000 Misc Taxes Titles Etc $ 9600 Gas $ 150000 Electric $ 264000 Cell Phones $ 624000 Charter (internet amp phone) $ 240000 Tax Preparation $ 19500 TOTAL $ 1983412

CAPITAL ASSETS AND DEPRECIATION

BackdropDepotcom

22

Exhibit 1 Financial Assumptions (Contd)

MARGIN AND BREAKEVEN ANALYSIS

BackdropDepotcom

23


BackdropDepotcom

24

Exhibit 2 Pro Forma Income Statement (Year 1)

BackdropDepotcom

25

Exhibit 3 Pro Forma Cash Flow Statement (Year 1)

BackdropDepotcom

26

Exhibit 4 Pro Forma Income Statement (Years 2 to 5)

BackdropDepotcom

27

Exhibit 5 Pro Forma Cash Flow Statement (Years 2 to 5)

BackdropDepotcom

28

Exhibit 6 Pro Forma Balance Sheet (5 Years)

BackdropDepotcom

29

Exhibit 7 Sensitivity Analysis (5 Years)

BackdropDepotcom

30

APPENDIX B EXHIBITS

Exhibit 8 Development Timeline Year 1

Years 2 to 5

Tasks 2012 2013 2014 2015

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Additional Distribution Outlets

New Product Development

Facility Development Stage 2

ProductsMarkets Expanded

Website UpgradeWebmaster Hired

Increase Sales amp Marketing Activities

HireTrain Manufacturing Staff

Efficiency ImprovementManagement

Implementation ImplementationContinuous Milestone

BackdropDepotcom

31

Exhibit 9 Backdrop Photos

Exhibit 10 Backdrop Pricing Tiers

BackdropDepotcom

32

Exhibit 11 Facility Photos

Exhibit 12 Facility Development Stages One and Two

BackdropDepotcom

33


Rhea Leanne Yancy 701 Whitthorne Street B

Shelbyville TN (931) 619-0467

Performance Awards and Achievements

Recorded and released multiple full ndashlength country music albums

Produced and starred in country music video aired on Great American Country (GAC)

Produced and starred in multiple country music performance videos

Received Independent Country Music Artist of the Year award in 2000

Contributing artist on numerous recording projects

Professional Training and Licenses

AutoHomeLife Insurance Training 1997

Education

Kenai Community College Kenai Alaska 1996 Associate of Arts in Business Management GPA 3840

Professional Experience

ManufacturingSales Self-employed 2008-Present

Directly responsible for the operation of a home- based stage curtain and backdrop manufacturing and sales operation

Sole manager of all eBay sales service and customer satisfaction activities Direct all design manufacturing and delivery of stage curtains and backdrops

Independent Musician 1976- 2008

Vocalist pianist guitarist drummer and song writer Performed in small and large venues with local national and international exposure Directly involved in all stage processes design assembly performance and disassembly Independently and jointly produced and recorded in studio settings Sales Manager Quality Outdoor Products 2006-2008

Directly responsible for daily operation of outdoor building and products company Managed all operational functions staff supervision scheduling accounts payable accounts receivable

marketing and inventory control Solely managed the sales department setting goals training staff sales and goal tracking

Entertainer Caribbean Cruise Lines 2000-2006 Personally managed all bookings fees and benefits Performed multiple showcases each day on the cruise ship Directly responsible for all band routines and functions including managing equipment stage set-up rehearsal

scheduling and performances

BackdropDepotcom

34

Robert L Reum (406) 552-3809 robertreumumontanaedu wwwlinkedincominrobertlreum wwwfacebookcomRobertReum

EDUCATION

The University of Montana School of Business Administration Missoula MT BS in Management - May 2010 Graduated with High Honors (Summa Cum Laude) BS in International Business Minor Chinese ndash Expected May 2011 GPA 39240 Recognition for Academic Excellence 2011 Mortar Board Outstanding Senior in International Business Member of Phi Kappa Phi and Beta Gamma Sigma National Honor Societies Recipient of multiple highly competitive academic scholarships totaling $2340000 Scored in 95th percentile or top 5 in the nation on business major field test Earned UM School of Business Administration Students Taking an Active Role in Success (STARS) award for

academic and community leadership Additional Skills Intermediate Chinese Language Skills ndash Proficient 700+ Characters ndash Cross-cultural Management Business Plan amp Strategy Development ndash International Trade amp Development ndash Sales amp Marketing Social Media Marketing ndash Public Speaking ndash Public Relations ndash Primary amp Secondary Market Research WORK EXPERIENCE (While attending school)

Auditor Wingate by Wyndham of Missoula September 2008-Present Directly responsible for the evening operation of a popular 100 unit nationally branded high volume

hospitality franchise Collect record and process customer and financial data for use in development of sales and marketing

strategies for $2 million unit of regional hospitality operation

Project Manager (Volunteer) Montana World Affairs Council October 2008-February 2011 Lead student interns in the execution of state-wide community-based youth outreach and education programs

such as the Montana Academic WorldQuest competition Assist the MWAC Executive Director in the formulation and application of strategies to increase public

awareness and membership for non-profit international affairs organization

Market Research Assistant Montana World Trade Center August 2009-December 2010 Conduct market research in conjunction with industry experts and government agencies such as the Dept of

Commerce Dept of Transportation and other economic development agencies Work directly with clients such as a $5 million furniture manufacturing operation in identifying new global

markets and developing competitive market penetration strategies RELEVANT PROFESSIONAL EXPERIENCE

Sales Manager Nickel Auto Group May 2005-June 2006 Achieved 20 times increase in individual sales to earn 13 ldquoSalesman of the Monthrdquo awards Performed all training and operations functions for $1 million unit of regional operation

General Manager R Place Bar Grill amp Casino April 2002-March 2004 Reduced expenses 40 by modernizing inventory management and ordering systems Capitalized on State gaming regulations to expand casino operations by 875

BackdropDepotcom

35

Robert L Reum ndash Page 2

PRACTICAL EXPERIENCE

Social Media Marketing amp Strategy Development Research Fall 2010 Independently launched research project examining practical use of social networking in marketing campaigns

and strategies Various strategies will be applied and measured in four case studies serving both for-profit and non-profit organizations from different industries Montana Academy of Distinguished Entrepreneurs Montana World Affairs Council Wingate by Wyndham and Riverstone Residential The results of the study will be released in a written report and presentation and will be used in the development of social marketing strategies for each business

Strategic Management Consulting Project BE Aerospace Spring 2010 Conducted team-based competitive analysis of aerospace and defense industries and identified competitive

position of company Identified companyrsquos competitive strategies and formulated strategic recommendations supported by the data compiled during the analysis Delivered a written and public presentation of findings and recommendations

Non-ProfitPhilanthropy Project The Sunshine Lady Foundation Spring 2009 Collaborated in a team-based project on behalf of Doris Buffetrsquos Sunshine Lady Foundation by developing the

organizationrsquos Request For Proposals evaluating the applications submitted and serving on the Executive Committee awarding the $10000 grant in various amounts to the selected local non-profit organizations

RECOGNITION AND AWARDS

John Ruffato Business Plan Competition Best Undergraduate Business Plan 2010 Won First Place in undergraduate division and Fourth Place overall competing with 26 graduate and

undergraduate teams in a business plan competition judged by representatives from the top academic business technology and investment firms within the region

American Indian Business Leaders Business (AIBL) Plan Competition First Place 2008 Led a multi-cultural team of students to a First Place showing in Las Vegas NV at the national AIBL Business

Plan Competition evaluated by representatives from Harvard University Arizona State University and Gonzaga University

American Indian Higher Education Consortium (AIHEC) National Champion (4) 2008 Garnered National Championship for Salish Kootenai College competing in the national AIHEC Business Bowl

competition by leading winning Business Plan team and winning individual National Championship titles in the Economics and Business Management competitions

ADDITIONAL COMMUNITY AND ACADEMIC LEADERSHIP

The University of Montana Academic Advisor Professor Aide amp Tutor 2009-2010 Academic Year

American Indian Business Leaders (AIBL) Secretary President 2006-2008 Academic Years First non-Native executive officer for student group specializing in business education and business

development in tribal communities Salish Kootenai College Tutor amp Peer Mentor 2006-2008 Academic Years

BackdropDepotcom

36

Gretchen L Reum gretchenreumyahoocom (406) 552-3808

EDUCATION

The University of Phoenix School of Business 2010-Present BS in Management amp Marketing ndash Expected May 2012 GPA 3840

Salish Kootenai College School of Business Administration Pablo MT 2007

Major Business Management GPA 3540 Connole-Morton Real Estate School Missoula MT 2007

Certificate of Completion Additional Skills Fluent English ndashProficient in office productivity tools including Microsoft PowerPoint and Excel Proficient in AMSI Craigslist Tracker and POS Systems ndashDispute Resolution ndash Public Relations Sales - Marketing Strategy Development ndash Social Marketing ndash Interpersonal Communication

PROFESSIONAL TRAINING AND LICENSES

Property Management Training 2009-Present Riverstone Residential training programs Fair Housing Education Tax Credit Certified

Real Estate Professional Training 2007 Code of Ethics RESPA Create 21 NMAR Realtor Association

Montana State Licensed Realtor 2007

WORK EXPERIENCE

Assistant Property Manager Riverstone Residential June 2009-Present Directly responsible for the operation of a 96 unit tax credit property including leasing rent collection

resident services accounts payable certification compliance and vendor relationship management Manage to overall operation of the office leasing staff and maintenance staff Coordinate design and apply marketing strategies Craigslist newspaper ads flyers B2B cross-marketing

initiatives resident retention projects special events and resident referral incentives Sales Manager Aaronrsquos Sales amp Lease December 2008-June 2009 Successfully managed the sales office and sales associates Independently conducted all sales management functions for high volume furniture store including sales

strategy sales training created presentations tracking sales reports inventory management reporting and customer relationship management

Assisted in the development of multiple marketing strategies including flyers B2B cross-marketing initiatives special promotional events marketing metrics and reporting trained staff conducted monthly safety meetings

Customer Service Representative LC Staffing August 2008- December 2008 Temporary customer service specialist and office manager for nationally branded insurance company

specializing in home auto and life insurance Worked directly with customers to identify insurance needs formulate new policy solutions customer

relationship management and dispute resolution

BackdropDepotcom

37

Gretchen L Reum ndash PAGE 2

WORK EXPERIENCE

Realtor Sales Associate Century 21 Big Sky December 2007-August 2008 Licensed Realtor Sales Associate in the state of Montana for a nationally branded real estate company

specializing in bare land and residential property sales Developed an independent marketing campaign including power point presentations open house events

extensive network marketing and developing strong professional relationships Tracked market fluctuation and areas of growth and created report spreadsheets Ocean Blue Distributor Ocean Blue of Boise July 2006-August 2008 Award-winning independent distributor of home cleaning systems responsible for all direct sales initiatives

training of all new regional distributors and regional sales management Formulated all marketing strategies including development of a marketing plan newspaper ads Craigslist

classified ads network marketing demonstrations trade shows and direct sales Developed a training manual for new hires including power point presentations webinars capturing a large

audience while delivering an informative and exciting training course Collection Manager amp Assistant Finance Manager Montana Auto Finance (MAF) May 2001-June 2006 Managed the entire collection department and coordinated with the Finance Department on key functions

such as loan approval process account management and human resources Created multiple marketing solutions including newspaper ads radio spots magazine ads classifieds

commercial and special events and promotions Wrote training manual for new hires trained and overshadowed probation periods conducted training

sessions on all aspects of finance company Business Development Officer E-Z Rent-to-Own (A MAF Company) June 2005-June 2006 Responsible for overseeing the launch of new retail sales division including initial vendor relationships

inventory management recruiting and training staff and developing sales and marketing strategies Collaboratively developed and deployed initial sales and marketing strategies to effectively reach the unique

target market of a rent-to-own furniture and electronics retail company SPECIAL INTERESTS AND PROJECTS

New Media Marketing Project October 2010 - Present Cooperatively launched research project with local marketing firm examining the practical use of

social networking in marketing strategies at the local level Various strategies will be identified applied and measured to determine the practicability of this marketing medium in the local residential management market The results of the study will be released in a written report and will be used in the development of commercial marketing guides software applications and a social media marketing solution for Wildflower and Creekside Apartments both Riverstone Residential companies

BackdropDepotcom

iii

TABLE OF CONTENTS

1 Executive Summaryhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip vi

2 The Company Backdropdepotcomhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 1


22 Products and Services 23 Management Team

3 Industry Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 4

31 US Retail Industry 32 Specialty Retail Industry

33 Non-store Retail Industry 34 E-Commerce Industry 34 Textile Manufacturing Industry Curtains and Drapery Mills

4 Market Analysis helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 7

41 Competitors 42 ProductService Positioning and Differentiation 43 Target MarketCustomer Profile

5 Marketing Planhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 10


52 Product and Service Strategy 53 Pricing Strategy 54 Distribution Strategy 55 Advertising and Promotion

56 Sales Strategy 57 Sales Forecasts

6 Operating Planhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 18



7 Development Planhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 18

8 Financial Planhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 19

BackdropDepotcom

iv








BackdropDepotcom

v






eBay user reabold

ldquoLove itrdquo

eBay user koolart





eBay user pintojr






BackdropDepotcom

vi

1 EXECUTIVE SUMMARY








BackdropDepotcom

1


21 The Opportunity








BackdropDepotcom

2






231 Products











Accessories



BackdropDepotcom

3

232 Services




Customer Feedback


Purchase Assistance


24 Management Team




BackdropDepotcom

4


3 INDUSTRY ANALYSIS














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

iv








BackdropDepotcom

v






eBay user reabold

ldquoLove itrdquo

eBay user koolart





eBay user pintojr






BackdropDepotcom

vi

1 EXECUTIVE SUMMARY








BackdropDepotcom

1


21 The Opportunity








BackdropDepotcom

2






231 Products











Accessories



BackdropDepotcom

3

232 Services




Customer Feedback


Purchase Assistance


24 Management Team




BackdropDepotcom

4


3 INDUSTRY ANALYSIS














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

v






eBay user reabold

ldquoLove itrdquo

eBay user koolart





eBay user pintojr






BackdropDepotcom

vi

1 EXECUTIVE SUMMARY








BackdropDepotcom

1


21 The Opportunity








BackdropDepotcom

2






231 Products











Accessories



BackdropDepotcom

3

232 Services




Customer Feedback


Purchase Assistance


24 Management Team




BackdropDepotcom

4


3 INDUSTRY ANALYSIS














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

vi

1 EXECUTIVE SUMMARY








BackdropDepotcom

1


21 The Opportunity








BackdropDepotcom

2






231 Products











Accessories



BackdropDepotcom

3

232 Services




Customer Feedback


Purchase Assistance


24 Management Team




BackdropDepotcom

4


3 INDUSTRY ANALYSIS














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

1


21 The Opportunity








BackdropDepotcom

2






231 Products











Accessories



BackdropDepotcom

3

232 Services




Customer Feedback


Purchase Assistance


24 Management Team




BackdropDepotcom

4


3 INDUSTRY ANALYSIS














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

2






231 Products











Accessories



BackdropDepotcom

3

232 Services




Customer Feedback


Purchase Assistance


24 Management Team




BackdropDepotcom

4


3 INDUSTRY ANALYSIS














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

3

232 Services




Customer Feedback


Purchase Assistance


24 Management Team




BackdropDepotcom

4


3 INDUSTRY ANALYSIS














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

4


3 INDUSTRY ANALYSIS














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

5







nd ed




BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

6













11


BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

7






4 MARKET ANALYSIS



12





BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

8







16


BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

9













17







BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

10








5 MARKETING PLAN





BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

11




NARROW BROAD



DEEP









53 Pricing Strategy




BREADTH

DEPTH

BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

12











Value Pricing


Cost-plus Pricing





22


BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

13






Delivery Pricing






BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

14



Logistics







Advertising Budget


23


BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

15




$728181 $1844372 $3784656 $4541589 $5449905







C

OST P

ER C

ON

TAC

T

REACH BROAD

HIGH


Personal Selling

Telemarketing



Direct Marketing

PR and Publicity

BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

16






56 Sales Strategy



BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

17





First Year






Years Two to Five


24





BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

18




TOTAL $ SALES $63077608 $7569313 $90831756 $108998107


6 OPERATING PLAN



Price

Quality


Service




7 DEVELOPMENT PLAN




BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

19







8 FINANCIAL PLAN



BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

20





BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

21





$ PER YEAR



BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

22



BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

23


BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

24


BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

25


BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

26


BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

27


BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

28


BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

29


BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

30

APPENDIX B EXHIBITS


Years 2 to 5

Tasks 2012 2013 2014 2015











BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

31



BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

32



BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

33












Education












BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

34


EDUCATION














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

35




















BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

36


EDUCATION









WORK EXPERIENCE









BackdropDepotcom

37


WORK EXPERIENCE














BackdropDepotcom

37


WORK EXPERIENCE














Documents

BackdropDepot - UM College of Business · of muslin and printed photography backdrops, large stage equipment suppliers offering a wide array of equipment, and two high-end stage curtain