In looking at the identified target markets that we will deal with in conducting business it’s important for us to have a good angle on how we will conduct business with them. There are various pros and cons that we will deal with in the distribution process as 2 of the 4 markets we will be dealing with on a much larger scale while the other two will be on a smaller scale and directed to a specific individual program. The most important factor that’s included in the chart is in identifying which of the 4 are the ones in which demand will be large and the 2 in which we will deliver smaller quantities. The larger 2 of the 4 are the U.S. Public School District Administrators and the Department of Defense Afterschool Program in looking at the two it’s important to realize that even though they are both huge target markets there are slight differences on how they run operations. The smallest 2 of the 4 would naturally be Private Afterschool Program Administrators and the Youth Weight Camp Administrators even as a smaller target it still can be complex when getting invoices and other variables in place as they may have stricter regulations being that it’s on a smaller scale. In looking at these important factors it’s equally important to keep in mind how payments are transacted for cash flow as some of the payments from the various markets may not come in a timely manner so this will need to be accounted for. In dealing with how this will work 2 of the companies will not submit payment upwards of 30 days in which we will have to be able to stay operational while the payments are waiting to be fulfilled. In the event of an error this could actually delay the process a lot longer than anticipated so we will also need to find down times as they will present themselves.
Segment Name / Descriptor
Bulk Breaking
Spatial Convenience
Delivery / Waiting Time
Assortment / Variety
Customer Service
Information Provision
U.S. Public School District Administrators
Purchasing made at District level
Purchases would be larger as purchases are made for all schools in the district
30 day waiting period from receipt of invoice
Will need a wide variety as it covers all schools in the district
The need would be great as it covers a large area of business
It’s vital to ensure any changes are communicated as the business is being conducted on a larger scale
Private Afterschool Program Administrators
Purchases made by individual program Admin they control buying for their program
Not as much space needs as the buyer will be purchasing for their own individual programs
Quick turnaround as ½ of the money owed is paid upfront and the rest upon receipt Small amount as it’s for a targeted areas program
Minimal need as it’s for a smaller coverage area
Changes can be made and accommodations met as this is on a smaller scale
Youth Weight Camp Administrators
Made by individual camp administrators for their program
Not as much space needs as the buyer will be purchasing for their own individual programs
Quick turnaround as ½ of the money owed is paid upfront and the rest upon receipt Small amount as it’s for a targeted areas program
Minimal need as it’s for a smaller coverage area
Changes can be made and accommodations met as this is on a smaller scale
Department of Defense Afterschool Program Administrators
Buying made at regional level so regional buyer purchases
Larger space needed as purchases are made on regional level for all military base programs
30 Day wait period from receipt of invoice
Wide variety as it covers all military programs
The need would be great as it covers a large area of business
It’s vital to ensure any changes are communicated as the business is being conducted on a larger scale
Service Output Demand (SOD) Template
Now that we have a general idea about our target markets and the various