B2B Final Project - NCR ATM's


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York University - B2B Final project presentaion

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B2B Final Project - NCR ATM's

  1. 1. Product Competition > INDIRECT (convenience) Plastics – Visa, MasterCard, Amex, Discover, debit card , gift cards, etc Estimated 37 million debit cards and 72 million credit cards in circulation in Canada (2010) > DIRECT Cash Back – Wal-Mart, Loblaws, No Frills, etc
  2. 2. Price• Nautilus Hyosung Monimax 7600T• Made in Korea• Designed & manufactured in-house• Multifunctional machine that is designed tosupport features such as dispensing cash orenvelope depository• Product weighs in at 265lbs• 3 separate security dimensions that can beintegrated with the financial institutions ownsecurity or a third party security monitoring andprotection company.
  3. 3. Price & Pricing Strategy $2400 CAD - Hardware only $2700 CAD - Hardware and software package (software developed by in-house software programmers and engineers) Price quoted is CIF Low price factors – Economies of Scale, co-location with raw material suppliers & all manufacturing done in-house 20-22% mark up Retail price ($3215 CAD) = Cost ($2700 CAD) + Markup (20%) ETP Limited ATM Network including Interac and Star in Canada
  4. 4. Distribution•D I R E C T S E L L I N G•D I S T R I B U T O R S•V A L U E A D D E D R E S E L L E R S ( V A R S )
  5. 5. Promotion Advertising Trade shows Product catalogues of Direct Mail Industry Journals Personal Selling
  6. 6. Sales Promotion Service Bundling Hardware And software linkage Maintenance and repair contracts Exclusive features
  7. 7. Distribution Market exposure Channel type Transportation Warehousing
  8. 8. Sale PromotionObjectives : > Increase awareness > Stimulate derive demand > Create a favorable image > Create a favorable environment for our sales force
  9. 9. Strategies Increase attendance at trade shows Increase distribution catalogues Utilize social media Comparison advertising
  10. 10. Sales Promotion Objectives Establish long term relationships with our clients Stand out as primary supplier of ATMS Emphasize superiority of products Attract new clients
  11. 11. Sales Promotion Strategies Secure long term contracts Provide value added services Create synergy Use of demonstrations and trade shows Focus on up-selling and cross selling
  12. 12. Price Issue & Strategy Market Penetration Strategy Low price – High sales volume , marginal profit To increase market share and/or sales volume, rather than making a profit in the short term. Creates barriers of market entry for new competitors $2800 CAD
  13. 13. Price REVENUE YEAR 1 YEAR 2 YEAR 3Gross Revenue $60,000,000 $66,000,000 $72,600,000Cost of goods sold $48,000,000 $52,000,000 $58,080,000Total operating $2,150,000 $2,670,000 $3,280,000expensesEarnings Before $11,000,000 $13,090,000 $13,405,000TaxesTaxes on $3,300,000 $3,927,000 $4,021,000income 30%Net $7,700,000 $9,163,000 $9,384,000Income #21459
  14. 14. Break Even Analysis The formula for break-even analysis is FIXED COST/UNIT SELLING PRICE-VARIABLE COST.The fixed cost for year one is 2,150,000The unit selling price for an ATM is $2,800The variable cost is $80.27For year one the break-even is2,150,000/2,800-80.27 = 2,150,000/2,719.73 = 790.52For year two the break-even isThe break-even is 2,670,000/2,800-90.63= 985.47For year three the break-even isThe break-even is 3,280,000/2,800-101.20= 1,215.35