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Summary for nostro

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Reference no: EM13793674

Summary for Nostro

Based on last quarter's results Nostro Inc. is improving in the work horse segment and falling behind in the traveler segment. However we revised both brands to meet the exact needs of the target market and also revised our advertising strategy. While conducting analysis of our competition it was apparent that although we offered similar products at similar prices our advertisingstrategy was different. Therefore we reanalyzed how to accurately convey our product to our target audience and revised the advertising strategy.

In regards to our pricing strategy we started offering rebates in each of our regions last quarter which paid off as our overall financial performance is slowly starting to come out of the red. Moving forward we will be offering a point of purchase display for our New Millennium in hopes to further boost revenue. In regards to our fixed costs we have decided to invest in research and development regarding our work horse segment which will increase our annual fixed cost, however we hope increase revenue.

The marketing strategy for Nostro Inc. continues to target large competitive segments in large geographic markets which include our North America segment in New York and our Asian segment in Tokyo. Both cities have a multitude of competition providing similar products regarding the work horse segment. However we plan to corner the market in both regions by providing our consumers state of the art computers with the latest technology paired with portability and convenience through our next generation of innovative designs.

Since wecreated a new strategy to modify our product targeting for the workhorse segment to meet the demand of the consumers. With our new office in Los Angeles we anticipate an increase in sales within the next two quarters. We've been able to purchase added features that will attract more consumers in our target market areas. With the changes we have implemented Nostros Inc. is expected to stay in the top 3 companies for product. The first year financial anticipation for our company is below.

	Q1	Q2	Q3	Q4	Q5	Q6	Q7	Q8
Revenues	0	0	410,008	1,496,915	2,461,050	4,090,550	7,866,400	10,788,300
Rebates	0	0	0	42,800	71,250	118,125	227,500	311,250
Cost of goods sold	0	0	248,114	866,040	1,274,798	1,850,903	3,163,501	4,189,084
Gross margin	0	0	161,894	588,075	1,115,002	2,121,522	4,475,399	6,287,966

Sales office leases	0	0	200,000	200,000	200,000	330,000	330,000	330,000
Sales force expense	0	0	323,478	251,000	251,000	323,478	323,478	323,478
Brand promotions	0	0	0	0	0	0	0	0
Special programs	0	0	0	0	0	0	0	0
Ad creation/revision	0	0	60,000	30,000	60,000	60,000	60,000	60,000
Point of Purchase Display expenses	0	0	0	400	200	200	400	400
Advertising expenses	0	0	91,078	69,644	501,658	501,658	501,658	501,658
Engineering cost for new brands	0	120,000	120,000	60,000	120,000	120,000	120,000	120,000
Market research	87,999	0	40,000	40,000	40,000	40,000	40,000	40,000
Operating expenses	87,999	120,000	834,556	651,044	1,172,858	1,375,336	1,375,536	1,375,536

Operating profit	-87,999	-120,000	-672,662	-62,969	-57,856	746,186	3,099,863	4,912,430
Research and development costs	0	0	0	0	2,501,461	1,705,542	1,591,839	0
Set up costs for new sales offices	0	300,000	130,000	130,000	130,000	130,000	130,000	130,000
Net profit for division	-87,999	-420,000	-802,662	-192,969	-2,689,317	-1,089,356	1,378,024	4,782,430
Cumulative net profit for division	-87,999	-507,999	-1,310,661	-1,503,630	-4,192,947	-5,282,303	-3,904,279	878,151

Reference no: EM13793674

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