Loan Request

Financial Planning

1. Current positioning of the company

We are company "A", at this moment we have two products called "SAMA" and "SALT".

In the beginning of the game we had some problems related with Markstrat deadlines so we couldn't start as soon as we would have liked. However, we have managed to reach a good market position for our products.

For the product "SAMA", we have focused on "Others" and for the product "SALT" we have focused on "Singles" since we have seen that the competitors were stronger in other market segments.

Due to the strategies we have done, our Purchase Intentions and our Brand intention have increased in both Markets. As we can see in the graphs, we are leading purchase intentions and we are strong in brand awareness for product "SAMA". This results show that customers know and like us and they will purchase our product.

2. Current budget/financial situation:

Our current budget is 9.350.000 €. We are spending it in advertising, product modifications, researches and sales forces.

In the next periods our budget will increase due to the increasing number of products sold and we will save in R&D in the sonite market because no changes will be necessary.

Thus, we estimate our future benefits in at least 2.500.000 € per period (without taking account vodite market)

3. Requested money - motivate your application:

We are requesting a loan because we would like to introduce a new vodite product. We are willing to introduce it because it is a new market with few competitors. Moreover, brands in the vodite market are new so they do not have much power yet. That is why we consider is a good moment to introduce the new product.

The characteristics for the new product are:

Autonomy: 65

Max. Frequency: 16

Diameter: 55

Design: 6

Weight: 55

The money needed to develop this new product will be about 11.000.000 €.

For this reason, we consider we need a loan of 9.000.000 €. We expect our sonite sales and the introduction in a youth market as vodite will be enough to give back the loan in 5 periods.

4. Does this fit in the strategy of the company + what is the company's strategy?

The company strategy for the new product is:

- First, we