TARGET MARKET INDUSTRY OUTLOOK
INDUSTRY TRENDS
According to The Saas trade publication survey “the greatest growth over time is in the direct for manufacturer via the internet” in this channel by 2010. The conventional channel, defined as contractors buying via distributors and/or from catalogs is still the “800 lb gorilla” although it will not be growing nearly as fast as the online channel.
Software sales through online direct channels were 10% in 2004, 18% in 2006 and projected to increase to 30% by 2009. Entill is well positioned to capitalize on this trend by providing software-as-a-service to customers based on the following model: Business Model Comparison of Current Models with Entill Model.
ACCORDING TO THE SOFTWARE DISTRIBUTION TRADE PUBLICATION SURVEY “THE GREATEST GROWTH OVER TIME IS IN THE DEMAND FOR MANUFACTURER VIA THE INTERNET” IN THIS CHANNEL BY 2010.
MARKET MIX
MARKET SCOPE
As a Percentage of Software-as-a-Service Sales
The market scope for Entill’s software and services is domestic and shipping is available to 48 states.
Customer Relationship Managment
TOTAL TARGET MARKET
Entill’s total market is valued at $42.35 billion. Entill’s primary market of Electrical Contractors is valued at $17.8 billion in annual sales. Entill’s secondary market is valued at $28.85 billion in annual sales. Of this total market Entill’s target is .0002 percent of the total market share or $5 million in annual sales in 2009. Total market share is projected to increase .00005 percent each year for the next five years.
12.8
Project Management
5.8
Task / Time Management
3.3
Invoicing & Accounting Software
12.2
Communication / Phone Services
4
Industry Solutions
4.1
Other
1.0
Total Market $40,758,510
TARGET CUSTOMERS
Entill’s customers are small to mid size small businesses, entrepreneurs and professional service firms. There are thousands of B2B firms, facility and property mangers, each varying in size. In the small business and entrepreneurial realm our target market is grouped by number of employees.
BUSINESS MODEL COMPARISON OF CURRENT MODELS WITH ENTILL MODEL Package Model 1 Manufacturing in U.S.
1-4
5-9
10 - 19
20 - 49
42288
5920
3085
1939
489
13891
4776
3283
2369
767
Contractor
344
92
55
37
15
Total
56523
10788
6423
4345
1271
1-4
5-9
10 - 19
20 - 49
50 - 99
190
22
11
0
751
366
75
13
3
231
Contractor
1
1
0
0
756523
Total
557
98
24
3
989
No. of Employees
Package Model 2
Small Business Owner
Importing
50 - 99
Entill
Entill Model $30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
$150
$160
Contractor Technology
UNIT PRICE IN DOLLARS
CONTRACTOR
INDEPENDENT SALES REP.
OVERSEAS WHOLESALER
DISTRIBUTOR
U.S. MANUFACTURER
ENTILL WITH ITS CHINESE PARTNER
No. of Employees
INDUSTRY LIFE CYCLE
The software distribution industry, as a whole, is in a growth stage. A number of software products are considered commodities with an increasing demand. The software distribution industry is an ongoing one that will not enter the aging cycle.
Entrepreneur Entill Contractor Technology
5
Privileged & Confidential
6