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Business Plan for Food Enhancing Microwave Product Jack Smalley, President/CEO. Ultimate Pet Pleasures Products that Pamper your Pets. Ultimate Pet Pleasures LLC 2200 Kraft Drive, Suite 1000 Blacksburg, VA 24060 www.ultpet.com January 2012. Company Proprietary.
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Business Plan forFood Enhancing Microwave ProductJack Smalley, President/CEO Ultimate Pet Pleasures Products that Pamper your Pets Ultimate Pet Pleasures LLC 2200 Kraft Drive, Suite 1000 Blacksburg, VA 24060 www.ultpet.com January 2012 Company Proprietary
Ultimate Pet Pleasures,founded in 2011, works with technology developers to create proprietary products that maintain and/or increase the quality of life of dogs & cats who are considered family members by their owners. Products will be sold through specialty pet supply retailers in the U S and Canada. Ultimate Pet Pleasures Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 2
US Pet Market There are 60 million household in the U S with dogs and/or cats Ultimate Pet Pleasures Products that Pamper your Pets Source: AVMA US Pet Ownership & Demographics Sourcebook; US Census Bureau Company Proprietary 3
The human-animal bond continues to grow in the U S, with most dogs and cats now considered family members by their owners: Ultimate Pet Pleasures Ultimate Pet Pleasures Products that Pamper your Pets Source: AVMA US Pet Ownership & Demographics Sourcebook Company Proprietary 4
The increase in the human-animal bond, along with recent pet food recalls, has resulted in Gourmet Animal Food having a significant market share: This means there are currently 7.6 million U S households serving gourmet animal food to their pets An additional 80,000 – 100,000 households enter this market annually 1st Product Market Segment Ultimate Pet Pleasures Products that Pamper your Pets Source: The New Gourmand by J Boncy, Pet Business, December 2011 Company Proprietary 5
1st Product: UPP Warming Oven • Dogs & cats like their (wet) food warm, not cold • Shown in dog & cat consumer tests • but: • most people – including pet owners - will not • put animal food in their microwave oven • Ultimate Pet Pleasures’ first product • will be the UPP Warming Oven: • a 600 watt, <0.5 cu ft cavity countertop • microwave oven specifically • designed for warming gourmet dog & cat food Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 6
The UPP Warming Oven is designed to: • Automatically heat the food to 75 C • Evenly heat the food • Maintain the moisture content of the food • The oven uses proprietary - patented technology developedby Gerte Applied Engineering (GAE). GAE has extensive expertise in microwave engineering, PLC controls, software development and computer-aided design. It also has in-house fabrication capabilities and laboratory testing services. The technology used in the UPP Warming Oven is exclusively assigned to Ultimate Pet Pleasures for the pet market. • The product will meet FDA HHS Standard 1030: Performance Standard for Microwave and Radio Frequency Emitting Products Competitive Advantage Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 7
Most available microwave ovens have a larger cavity than is needed for heating dog & cat food; none have the features of the UPP Warming Oven • The closest competitive ovens are available from Whirlpool, Sharp and Haier; Sharp’s product is consisted the most competitive: • *Currently sold out • The selling price of the UPP Warming Oven will be $95 Competitive Products Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 8
2nd Product: UPP OrthoMassage Bed for Dogs • A dog bed that provides a warmed, dry sleeping area and (sonic) vibration massage to combat hip dysplasia and arthritic discomfort • Common in breeds that weigh over 60 lbs • Worst thing for a dog with hip dysplasia • is sleeping on a cold, hard floor • (Sonic)vibration treatment is • a form of massage therapy that • combats muscle atrophy and • relieves pain and discomfort • Will partner with companies who have developed proprietary orthopedic bed and sonic vibration technology Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 9
Ultimate Pet Pleasures identifies product opportunities through market research; and subcontracts its technology and product development as well as product manufacturing. • Products are built using the company’s proprietary technology. Business Model Marketing/Sales Customer Service Technology Development Product Development Product Testing Ultimate Pet Pleasures Subcontractors - Partners Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 10
Sales Channels Products will be sold through specialty pet supply retailers in the U S and Canada, including: 1,200 stores in the U S & Canada > 1,000 stores in the U S > 350 stores in the U S & Canada > 110 stores in the U S They may also be sold through infomercial sales channels The UPP Warming Oven will be sold to retailers for $65; they would sell it for $95, giving them a 45% markup Ultimate Pet Pleasures Products that Pamper your Pets Source: Hoovers Advanced Company Search Company Proprietary 11
Management Team • Jack Smalley, President/CEO • Previously President of Anotec, a developer of ceramic membrane materials & filtration devices; acquired by Whatman • Market research and product design expertise • Don Brush, Product Development Manager • Previously product development engineer at consumer products company Whirlpool • To be hired in 2012: • April: Marketing Manager - candidate identified with consumer product marketing & sales experience • July: Operations Manager Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 12
UPP Warming Oven is to be ready for Christmas 2012 sales: Timeline Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 13
UPP Warming Oven 1st Product Introduction Timeline Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 14
Business Development Budget: 2012 Estimated Expenses Development of UPP Warming Oven Thousands of Dollars Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 15
Financial Projections: UPP Warming Oven Ultimate Pet Pleasures Products that Pamper your Pets *over 2,500 identified retail outlets Company Proprietary 16
Exit Strategy Options • Continue to develop new products and create company division for each: sell to investors • Sell product lines as each matures to existing pet products companies • Sell to pet food company: Mars, Purina/Nestle • Sell to specialty pet supply retailer chain: Petsmart Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 17
Opportunity Summary • Ultimate Pet Pleasures will work with technology developers to create proprietary products that maintain and/or increase the quality of life of dogs & cats who are considered family members by their owners, subcontract product manufacture, and sell its products through specialty pet supply retailer chains • 60 million pet owners in this market • First product revenues are projected to exceed $15 million within five years • Expect to launch a new product line every 2 years • Total initial investment for first product is less than $500,000; projected 5-year NPV is about $9 million Ultimate Pet Pleasures Products that Pamper your Pets Company Proprietary 18