Kitchen Creations Completed Business Plan[1]

Running Head: Kitchen Creations Business Plan i
Kitchen Creation’s Business Plan
By Michelle Walker & Christina Miller
Walsh University S.P.S.
BJ Seif
October 19th
, 2011

Kitchen Creations 2
Table of Contents Page
1.0 Executive Summary 4
1.1 Introduction 4
1.2 Objective 4
1.3 Mission Statement 5
2.0 Company Summary 6
2.1 Company History 6
2.2 Locations & Facilities 6
2.3 Management Team 7
3.0 Products and/or Services 8
3.1 Current Products 8
3.2 Future Products 8
3.3 Sourcing& Fulfillment 9
4.1 Organization 10
5.0 Marketing Strategy 11
5.1 Markets & Analysis 11
5.2 GDP & PPP Evaluation 15
5.3 Competitor’s Analysis 16
5.4 SWOT 16
6.0 Implementation Strategy 18
6.1 PhaseI Expansion Regions 19
6.2 PhaseII Expansion Regions 19
6.3 PhaseIII Expansion Regions 21
7.0 Execution Strategy 22
7.1 Prior Implementation 22
7.2 Manufacturing& Transportation 22
7.3 PhaseI Execution 23
7.4 PhaseII Execution 23
7.5 PhaseIII Execution 23
7.6 Assumptions 24
8.0 Product Change Strategy 25
8.1 Modifications 25
8.2 Packaging& Instructions 26
9.0 Ordering 27
9.1 Web Considerations & Changes 27
9.1.1 Language Considerations 27
9.1.2 OnlinePayments 27
9.2 Phone & OnlineOrders 28
10.1 Changes to Current Organization 29
10.2 Additional Personnel 29

Kitchen Creations 3
Table of Contents Page
10.3 Cultural Training 30
10.4 SellingStrategy Considerations 31
10.4.1 Sales 32
10.4.2 International Distributors 32
10.4.2.1 Distributor Fees 32
10.5 Future Considerations 33
10.6 StaffingNeeds 33
11.0 Unit Forecast 34
11.1 PhaseI Units 34
11.2 PhaseII Units 34
11.3 PhaseIII Units 35
11.4 Forecastof Year Units 36
12.0 Implementation Costs 39
12.1 PhaseI ShippingCosts 39
12.2 PhaseII ShippingCosts 42
12.3 PhaseIII Shipping Costs 42
12.4 Cost Breakdown 43
13.0 Financial Analysis 45
13.1 Sales Revenue 45
13.1.1 PhaseI Revenue 45
13.1.2 PhaseII Revenue 46
13.1.3 PhaseIII Revenue 46
13.2 PhaseAnalysis 49
13.3 Cash FlowProjection 50
13.4 Year Analysis & Break Even 51
13.5 ROI 53
14.0 Risks Analysis 55
14.1 Competition 55
14.2 Market Acceptance 55
14.3 Investment 55
15.0 Support Analysis 56
15.1 Inventory on Hand & HandlingTerms 56
15.2 Turnaround Time 56
15.3 Support Location 56
15.4 Personnel Needed 57
15.5 Warranty 57
16.0 Exit Strategy 58
16.1 Exit Conditions 58
16.2 ProactivePlanning 58
Appendix A-Regional Cost Chart 59
Appendix B- PricingComparison Chart 60

Kitchen Creations 4
1.1 Introduction
Kitchen Creations has proven itself as a successful and dynamic company. For more
than 30 years, we have been providing consumers across the United States with quality
kitchen products at great prices. We have managed to thrive even in these tough economic
times, making over $100 million last year. With a highly experienced management team,
Kitchen Creations has risen above the competition. Today we are looking to share our
wonderful products with the rest of the world. In the following pages, you will find a plan for
that expansion, a 12-month project.
EXECUTIVE SUMMARY
1.2 Objective
Kitchen Creations strives to provide high quality products at affordable prices for
restaurant owners, cooking enthusiasts, and specialty shops. Opened in 1980 by CEO Michelle
Walker and President Christina Miller, Kitchen Creations is expanding from a strictly domestic
business to a global business. Through innovation, creative marketing, and top quality
products, Kitchen Creations plans to expand into Western Europe, Canada, Mexico, and Asia
within the next twelve months. We will provide consumers and business owners all over the
world with our “It's For Life” Blend-All Blender and Max Mixer. An opportunity for success
exists in developing markets for exceptional quality commercial appliances that carry a
limited lifetime guarantee. Kitchen Creations lifetime guarantee creates competitive
advantage over our major competitors, who offer one-year manufacturer warranties and
extended protection plans. Our success in International expansion will rely on this advantage
as well as utilizing our highly experienced staff, and effective marketing approach.

Kitchen Creations 5
1.3 Mission Statement
Kitchen Creations maintains a tradition of conducting its operations in accordance with
both the law and the highest standards of business ethics and integrity. We value the
reputation of our good name within the communities that we serve. We are committed to
providing top of the line products in a global environment.
Kitchen Creations offers a continual focus on the personal development and growth of
our employees. We offer a wealth of opportunities with significant advancement potential to
anyone who enjoys working with and serving others, embraces diversity and innovation, and
has a strong commitment to being the best.
We care about our communities and take social responsibility and environmental
protection seriously. We work with several charitable organizations, providing funding and
assistance through corporate support and employee engagement programs.

Kitchen Creations 6
COMPANY SUMMARY
2.1 Company History
Kitchen Creations, founded by Michelle Walker (currently CEO) and Christina Miller
(currently President), began as a partnership in 1980 selling their “It’s for Life” line of high
quality commercial appliances, and soon grew to a privately held C corporation. The
company’s shares are held by Michelle Walker, Christina Miller, two family members, and
three private investors. Kitchen Creations has become a well-known name among restaurant
owners, culinary institutions, cooking aficionados, such as Rachel Ray and Emeril, and
specialty shops such as Starbucks and Pulp. Our blenders have become an industry staple
across the United States. Previous year’s sales topped $100 million, and with global growth,
the opportunities are endless.
Through constant process improvement and many phases of product improvement as
well as warranty extension, Kitchen Creations has ensured that our products exceed current
standards and are dedicated to continuous improvement. We are ISO 9001 registered,
ensuring our customers the benefit of consistent service and products.
2.2 Locations & Facilities
Kitchen Creations corporate office and parent plant is located in Akron, Ohio. We also
have manufacturing and fulfillment facilities located in Michigan, Louisiana, Arizona, Oregon,
Colorado, and New York. We also maintain a strong web presence, with 80% of orders
coming through our website, www.kitchencreations.com.

Kitchen Creations 7
2.3 Management Team
**Bio of Management Team Attached in Management Organization Section**

Kitchen Creations 8
PRODUCTS & SERVICES
3.1 Current Products
Kitchen Creations currently sells a variety of commercial and noncommercial kitchen
appliances, from can-openers, to pasta makers in our “It’s for Life” line of products. Previous
year’s sales for this line was in excess of $100 million.
3.2 Future Products
Kitchen Creations will offer commercial quality blenders for use by professional chefs,
restaurants, specialty shops and culinary institutions. Two options are offered, a lower-end
model, called the Max Mixer and a high-end model, called the “It’s For Life” Blender. Each
product uses a universal plug, with adaptors available where applicable. We provide
manufacturing, customer service, and order fulfillment.
“It’s For Life” Blend-All Blender – (Illustration 3.1)
 Commercial Quality
 2 peak horsepower motor that propels blades up to 240 MPH
 1380 watt motor
 Chop, cream, blend, cook, grind, knead, churn, and more with one machine
 Cleans itself with a drop of dish soap and warm water, just run for 30 seconds
 Preprogrammed settings allow for restaurant quality creations
 64 oz. container & 8 quart mixing bowl
 Lifetime warranty

Kitchen Creations 9
Illustration 3.1
Max Mixer-(Illustration 3.2)
 Chop, cream, blend, cook, grind, knead, churn, and more with one machine
 5 year limited warranty
 Stainless steel blades that go up to 150 MPH
 800 watt motor
 32 oz. Container
 Dishwasher Safe
Illustration 3.2
3.3 Sourcing & Fulfillment
We will take orders at our Akron, OH office, which will be automatically sent to our
distribution company, Worldwide Distributions. Product will primarily be shipped from our
Ohio and New York manufacturing facilities to the port in Newark, NY.

Kitchen Creations 10
MANAGEMENT TEAM
4.1 Management Organization & Qualifications
Aaron McCauley, Sales Manager
Aaron has 20+ years experience as a sales manager. He has consistently achieved a strong
record of outperforming sales quotas, developing new business, and strengthening customer
relations. He also brings advanced knowledge in ecommerce solutions. In the five years Aaron
has been with Kitchen Creations, he has generated on average 200 new accounts annually,
becoming a major driver in our business growth.
Previously, Aaron was a Sales Manager for Dell Corporations where he was awarded sales
manager of the year for three consecutive years. Dell Corporations has been one of the
leading industries for desktop computers and laptops.
Aaron’s responsibilities as Kitchen Creations Sales manager is to capitalize on new revenue
potential, assign sales territories, set goals, establish training programs for their sales
representatives, and advise on ways to improve sales performance and achieve goals in order
to obtain expected quotas.
Keith Miller, Production Manager
Keith Miller holds a Master’s Degree in Management obtained from Akron University. He has
ten years experience in operations and previously worked for Little Tikes in Hudson Ohio
where he oversaw production of their high-quality, innovative children’s products.
Keith Miller’s responsibilities for Kitchen Creations include overseeing the production process,
drawing up production schedules, and cost effectiveness analysis. He is responsible for on-

time production, as well quality control in order to meet the standards set by the ISO 9001.
He is responsible for maintenance of equipment, liaising among different departments (the
suppliers, department heads, etc.), ensuring health and safety guidelines are followed along
with company policies and goals, reviewing performances, and identifying training needs.
John Howard, Marketing Manager
John Howard is a highly qualified Marketing Manager with 10 years of distinguished service in
the manufacturing industry. Previously John was employed by Curtis, a software
development company, based in Akron, Ohio, that created and developed software
applications, like OEM imaging. John Howard’s strategic planning skills and excellent
presentation skills helped make Curtis products a leader in their respective industry
segments.
John Howard’s responsibilities for Kitchen Creations are to develop marking plans, coordinate
with web teams to develop web sites and e-commerce logistics, develop financial models
including forecasting, marginalanalysis, and pricing policy, collaborate with research
professionals to conduct primary research, successfully execute business plans, and
communicate on various levels.
Rita Nelson, Customer Service Manager
Rita Nelson recently left HH Gregg as a department supervisor and joined our team as the
Service Manager. She has brought with her a high-energetic and results-oriented professional
personality. She has a lifetime of sales and customer service experience from working in
retail for over 30 years.

Rita will be the key contact and company representative for the company partnership with
Worldwide Distribution. She will oversee the transition from company fulfillment centers to
distribution through Worldwide Distribution. She will work with Worldwide Distribution to
establish high call center standards and implement automated call center customer survey
and tracking systems in order to measure customer service performance. She will monitor all
customer relations, whether through Worldwide Distribution or through Kitchen Creation’s
website.
Claven Tesla, Research & Development
Claven Tesla, great, great, great, grandson of Nikola Tesla, inventor and mechanical engineer
credited for his contribution in commercial electricity, holds degrees in the fields of
computer, electrical, mechanical and civil engineering and has worked for Kitchen Creations
for 7 years.
Claven’s responsibilities for Kitchen Creations are to oversee all scientific aspects on research
projects. He will be responsible for recruitment of qualified scientists, the allocation funds
for company projects, and developing research projects to measure Kitchen Creation’s
success. Additionally, he will provide advice and suggestions to senior managers on R & D
options available in the organization, build and manage experimentalprograms for testing
equipment, and assuring excellence of products. He will also manage the inspection and/or
modification of electrical components, mechanical and quality assurance for all markets, and
be responsible for giving demonstrations and presentations of new products.

Benoit Dervishi, Foreign Relations
Benoit is a recent hire with 15 years of broad-based international experience from companies
such as Coca-Cola bottling Company, IBM, Hoover, and Ford Motor Company. He is highly
articulate and an effective communicator, who is fluent in several languages, and works well
with individuals on all levels. He possesses expertise in developing business plans for
expansion, interpersonal skills and cross-functional team interactions, as well as in utilizing
intelligence and facilities, allowing several companies to successfully expand internationally
under his direction.
Benoit’s responsibilities with Kitchen Creations will be to oversee the company’s foreign
business by having the knowledge and awareness of various cultures, political and operational
challenges of foreign markets, finance and foreign currency, as well as available opportunities
in foreign markets. He will also serve as the primary contact for global distributors, take
responsibility for project deadlines, and in accord with company and U.S. policy, regarding
exporting products to foreign destinations, establish and monitor procedures and service
standards for export clearance standards and conduct training and seminars for staff and
clients in shipping and export administration.

MARKETING STRATEGY
5.1 Marketing Analysis
Kitchen Creation’s target market for the lower-end blenders is adults with families,
ages 30-50, are middle to upper class and love to cook and bake. Primarily women, the
target market is looking for reasonable priced kitchen appliances that will help them whether
making dinner or a birthday cake for their child. They spend a lot of their free time cooking,
and are very enthusiastic about the products they use.
We intend to reach this market through targeted marketing in cooking magazines, such
as Taste of Home, as well as Parents Magazine and Real Simple Magazine. Commercials will
air in primetime slots for shows such as Desperate Housewives, Dancing with the Stars, and
other top-rated female favorites as well as daytime commercials during soap operas, Ellen,
The View, etc. We have an agreement with Rachel Ray, who uses our product on her show,
and will air commercials with special pricing for viewers during that time-frame. We will also
market the product on home-shopping channels such as QVC and the Home Shopping Network.
Finally, we will also provide advertising in online format through news sites, social networking
sites, and entertainment sites.
Kitchen Creation’s target market for the upper-end blenders is middle to upper class
owners of restaurants, coffee shops, bakeries, smoothie shops and other specialty shops that
frequently use blenders. The target market will already be established in their respective
industries with disposable income to spend on product improvements. Quality is of the
utmost importance to these businesses, which is why Kitchen Creation’s lifetime guarantee is
so important.

We intend to reach this market through trade journal advertising for industries such as
coffee and snack shops, chain restaurants, and individual single site restaurants. We will
participate in trade shows and conferences related to the food industry, with special
discounts if our products are purchased during the show. We will list our products in food
service catalogs as well as online advertising for food service retailer sites.
The coffee and snack shop industry as well as chain restaurant industry comprised an
estimated $9.57 trillion in consumer spending in 2011, with an expected $10.9 trillion in
consumer spending by 2016. These figures show that Kitchen Creations has an opportunity to
capitalize on the success of these industries by providing innovative, high quality, reasonably
priced products that will help to streamline their operations.
5.2 GDP & PPP Evaluation
In evaluating markets for expansion, we looked at several factors. We chose regions
with high or rapidly growing GDP (purchasing power parity). We also looked at each
country/region’s real growth rate from 2010, to ensure that there was positive growth. We
evaluated each area’s consumer pricing and local purchasing power in comparison to the
United States. Finally, we researched the current economic conditions of each region and
selected those that were already established free markets, or those in the process of
becoming a free market. We ruled out Italy, Russia, and Guatamala.
*Please see attached chart for comparison of regions*
Expansion Plan
Phase 1 France Germany United Kingdom
Phase 2 Costa Rica Mexico Canada
Phase 3 India China Hong Kong

5.3 Competitor’s Analysis
Primary competitors for the lower-end model include Vitamix, Oster, Blendtech, and
Hamilton Beach. However, each of these companies sells much cheaper, and lower quality,
products. Their products are available at stores like Target, Macy’s. Walmart, and Bed Bath
& Beyond. Though technically competition, they aim for a different target market than
Kitchen Creations, and do not pose much of a threat. Their target market is lower income,
with casual and occasional users.
Competitors for the professional chef include the Power Pro Blender, Kitchen Aid, and
Vitamix Professional Series. Neither, however are currently selling anywhere other than the
U.S. The longest warranty is for 7 years and provided by Vitamix.
Primary Competition
It’s For Life Competition Max Mixer Competition
Power Pro Blender Braun Power Blend
Kitchen Aid Vitamix
Vitamix Professional Oster
Kenwood Blendtech
Hamilton Beach
5.4 SWOT
Strengths
Kitchen Creations has a solid foundation and reputation in the Unites States, as well as
several U.S. customers that also operate globally, such as Starbucks. We create our products
with the finest parts and put finished product through multiple tests to ensure peak
performance. We offer a lifetime guarantee. Only one of our competitors currently ships to
Europe, all others are strictly U.S. based. We are ISO 9001 certified. We employ an
excellent, and highly experienced, management team. Prior year sales in the U.S. were $100
million.

Weaknesses
We have no prior experience in global sales. Our manufacturing plants are spread
throughout the U.S., which could pose a problem in terms of getting product to the various
overseas markets in a timely fashion if in a crisis. The majority of our management team is
primarily used to dealing in the United States. We have little knowledge of international
laws, political systems, and trade barriers. We currently do not have a brick and mortar
retail support system, but rely entirely on phone and internet sales.
Opportunities
We have a great opportunity to reach entirely new markets with our products. Many
of the regions we are expanding into are favorite tourist locations, meaning an added number
of specialty shops and restaurants as potential customers. We have the opportunity to build
relationships with retail partners and manufacturers’ in the global areas we will be operating,
allowing us to further expand our product and potentially, to lower costs. We have an
opportunity to gain a great deal of market share, considering our competition does not ship
internationally.
Threats
There is a threat that Kitchen Creations could fail in one, several, or all of the market
expansions. There may be existing stores selling blenders in the various markets that we are
unaware of, which would pose additional competition. We may face skepticism or even
hostility upon entering a new market. There may be political factors, or challenges, that we
will be forced to deal with in any one of the markets. Additionally, we could miscalculate the
projected sales and end up sitting on a lot of inventory that we cannot sell, tying up capital.

IMPLEMENTATION & STRATEGY
In every area we analyzed, GDP indicated a healthy economy, and each area showed a
positive real growth rate in 2010. Though none was as high as the United States, each region
appears to be a good choice for expansion, with the exception of Italy, Guatemala, and
Russia. Each of the regions, while varying in terms of economic practices, either has already
established a free-market economy, or is transitioning in that direction, (with the exception
of Italy).This indicates a trend toward globalization and a positive market environment in
which to market our products.
0
50
100
150
200
250
300
350
Fra
nce
Ge
rm
any
Uni
ted
Kin
gd
om
Ital
y
Cos
ta
Ric
o
Me
xic
o
Ca
na
da
Ind
ia
Rus
sia
Chi
na
Ho
ng
Ko
ng
Uni
ted
Sta
tes
GDP 74.52.942.171.7751.21.571.334.062.2210.1 326 14.7
Real Growth Rate 1.5 3.5 1.3 1.3 4.2 5.2 3.1 10.4 4 10.3 6.8 2.8
GDP
Real Growth Rate

6.1 Phase I Expansion Regions
Our first expansion will be into Western Europe. We compared France,
Germany, United Kingdom, and Italy. Consumer prices in Europe are higher than
those in the U.S.; however, local purchasing power is lower. This indicates that
consumers are able to buy less with their disposable income, which was comparable
to the average monthly disposable income in the Unites States.
6.2 Phase II Expansion Regions
Our second phase of expansion will be into Mexico and Canada. We analyzed Costa
Rica, Mexico, Guatemala, and Canada. Guatemala was determined not to be a productive
market for expansion. With the lowest GDP of all regions compared, and a lack of information
on consumer pricing and local purchasing power it seemed a risky move. Mexico, overall, is
characterized by lower consumer prices, local purchasing power, and disposable income.
0
5
10
15
20
25
30
35
40
45
France Germany United
Kingdom
Italy
22.97
1.06
21.36
40.72
Local Purchasing Power

However, since signing the NAFTA trade agreement, expanded seaports, railroads,
telecommunication, and airports makes it an accessible market for expansion. Furthermore,
the fact that Mexico is a free market economy that enacted the North American Free Trade
Agreement (NAFTA) in 1994 means expansion should be less problematic than in other areas.
Canada’s economy is very similar to that of the U.S. and Canada also enacted NAFTA in 1994,
as well as the U.S. Canada Free Trade Agreement in 1989, which implies that expansion is a
good option for Canada.
0
500
1000
1500
2000
2500
3000
3500
Cost
a
Rico
Mexi
co
Guat
amal
a
Cana
da
GDP 51.17 1.567 70.15 1.33
Local Purchasing Power 56.93 52.31 0 6.69
Median Monthly Disposable
Salary
975 845.51 510 3018.76
GDP
Median Monthly Disposable
Salary

6.3 Phase III Expansion Regions
Finally, our third phase of expansion is Asia. We analyzed India, Russia, China, and
Hong Kong, finding all but Russia to be a viable expansion point. Of all the regions, Asia
shows the highest levels of real growth rate in 2010. India is currently developing into an
open-market economy. China, though slowly, is transitioning into a more market- oriented
system and Hong Kong is already operating under a free market economy. While still
developing, Asia is a good opportunity for business growth.
0
2
4
6
8
10
12
India Russia China Italy
2.8
4
10.3
6.8
Real Growth Rate
Real Growth Rate

EXECUTION STRATEGY
7.1 Prior to Implementation
Three to six months prior to execution, several individuals need to be hired and trained.
Personnel Needs
Personnel Quantity Needed
Information Technology Professionals
(Experienced in International Business)
2
Call Center Representatives (bilingual) 10
International Consultant 1
Loading Warehouse Personnel 2
The IT professionals will work with our current IT team to create a duplicate website
in French, German, Spanish, and Chinese. Customers will have the option of choosing which
website they want through a highly visible drop down box in the top and center of our current
webpage. The call-center representatives will be trained by our service manager, Rita
Nelson, in order to be able to troubleshoot, take and process orders, handle returns, etc.
prior to expansion. The International Consultant will help Kitchen Creations to ensure a
smooth transition into the various markets. He will consult on packaging and instructions,
website creations, as well as be a hands-on participant in the actual phases of
implementation.
7.2 Manufacturing/Transportation
Of the five manufacturing plants, Ohio and New York will produce product strictly for
our international orders. Road Runner Transportation will truck the product from Ohio to
New York. All product will ship out of the port in Newark, New York. Production needs to be
at full capacity. 50,000 units of each product need to be ready to ship by the execution date.
Though we only ship 12,000 units in phase 1 we want to ensure that we have a cushion
throughout the implementation process in case we need to quickly move product.

7.3 Phase I Timeframe
o Phase 1: France, Germany, and the United Kingdom.
o Timeframe: 6 months
Sales Manager, Foreign Relations Manager, and Consultant are on-site throughout
implementation. Product ships from port in Newark, New York to Worldwide Distribution’s
Belgium distribution center. Website and call-center reps route orders to DC for fulfillment.
7.4 Phase II Timeframe
o Phase 2: Mexico, Costa Rica & Canada
Sales Manager, Foreign Relations Manager, and Consultant stationed in Mexico. Local
executives will be in charge of Canada implementation. Orders will be fulfilled through World
Distribution’s New York distribution center. 75,000 units will be shipped during phase 2.
7.5 Phase III Timeframe
o Phase 3: India, China, and Hong Kong
Sales Manager, Foreign Relations Manager, and Consultant are on-site throughout
implementation. Product ships from New York Mfg. facility to Belgium Distribution Center.
Website and call-center reps route orders to DC for fulfillment. 135,000 units will be shipped
during phase 3.

7.6 Assumptions
 1 out of 500 units will may be defective
 200 units will be on hand for every 100,000 for replacement
 The New York Manufacturing Plant will focus on providing product for Europe.
 Estimated time between deliveries: 1 month, initially
 Future plans include building a manufacturing plant near Belgium and hiring an
executive staff.
0% 20% 40% 60% 80% 100%
Implementation
Implementation Plan By Month
January-June
July-September
October-December
France,
Germany,
United
Kingdom
Mexico
Costa
Rica,
Canada
India
China
Hong
Kong

PRODUCT CHANGE STRATEGIES
8.1 Product Modifications
The logo on each design will need to be modified/translated for the appropriate
market. After researching the various plugs used in each region, we determined that it would
be easier to include a universal adaptor, rather than modify the products for each region.
Country/Region Design
Modifications
Certification
Considerations
New Labels and
Marketing
MISC.
France Logo in
French
Fitted with
Europlug
230 Volt
Instructions &
Packaging in English &
French
Germany Logo in
German
Europlug Instructions &
German
EuroPlug (France,
Germany & United
Kingdom)
United Kingdom No Change
Necessary
Europlug Instructions &
Packaging in English
Canada None 240 Volt
Modifications
Instructions &
Packaging in English
Mexico/Costa
Rica
Logo in
Spanish
Same as U.S.,
Canada
Instructions &
Spansih
Japan Logo in
Japanese
100 Volt-Step
Down
Converter
Needed
Instructions &
Japanese

China Logo in
Chinese
220 Volt Flat
blade or V-
blade plug
Instructions &
Chinese
Flat blade
plug
V-shaped
flat prongs
Hong Kong Logo in
Mandarin
220 Volt,
Rounded
Triangle Plugs
Instructions in English,
& Mandarin.
Three round pins arranged
in a triangle
Three round
pins arranged in a triangle
Two parallel
flat pins with ground pin
8.2 Packaging & Instructions
Instructions will be printed in English and the primary language for each region. Packaging
will reflect a region’s culture, in a manner that will be appropriate and eye-catching for
sales/marketing purposes.

ORDERING
9.1 Web Considerations
The IT professionals will work with our current IT team to internationalize our website
in order to improve communications with our wide international audience, which includes the
United States, Canada, Mexico, France, Germany, Costa Rica, India, United Kingdom, China,
and Hong Kong.
9.1.1 Language Considerations
Customers will have the option of choosing which language they want through a highly
visible menu to the left of the page, as well as easy national flag navigation buttons across
the top of the page (See Figure 3.1).
9.1.2 Online Payments
We will use Paypal, Visa, Mastercard, and American Express. Customers also have the
options of entering their routing number and account number to authorize an automatic
transfer from their bank account.
Our customer service page will include email addresses as well as phone numbers for
customers to contact us with any web issues, problems related to ordering, or general
questions and feedback. This will be beneficial in building loyalty and also a good tool to gain
valuable feedback to use for future improvements.
9.1.3 Future Enhancements
Further enhancements include a Frequently Asked Questions page, an instant
messaging option during normal business hours, and a delivery calculator that tells the

customer when they can expect to receive their product. There will also be a link allowing
customers to post feedback on our website.
9.2 Phone & Online Orders
The call-center representatives will be trained by our service manager, Rita Nelson, in
order to be able to troubleshoot as well as take and process online & phone orders. They will
also handle the returns, customer service complaints, confirmation emails, email alerts, new
product information, and registration information.
The International Consultant, working with our Director of Foreign Relations, will help
Kitchen Creations to ensure a smooth transition into the various markets. He will assist in
developing a training program for the company, as well as in implementation. He will consult
on packaging and instructions, website creations, as well as be a hands-on participant in the
actual phases of implementation.

MANGEMENT TEAM
10.1 Change to Current Organization
New Hires Cost/Salary Responsibility Current Mgr.
Responsible for
Training
4 Loading Personnel $37,500 Each
Annually
(2 at NY, 2 at AZ)
Load product from
NY & AZ Fulfillment
centers to be sent to
international
markets.
Keith Miller-
Production Manager
10 Bilingual
Customer Service
Representatives
$30,000 Each
Annually
3 Each to Manage
each phase of
Implementation
Rita Nelson-
Customer Service
Manager
2 IT Professionals $45,000 Each
Annually
Work with existing
team to format
website for all
regions/languages
John Howard-
Marketing Manager
International
Consultant
$150,000 (18 mos.) Assist with
coordination of each
implementation,
Educate current
staff on different
cultures/Ensure
proper licensing,
packaging, and
certifications are
followed in each
region
N/A
10.2 Additional Personnel
Bilingual Customer Service Representatives
Kitchen Creations will hire 2 bilingual representatives for each of the languages we will be
dealing with (Spanish, French, German, Chinese, and Japanese), in addition to English. Rita
Nelson and the current customer service team will train them in the company procedures.
Hire date will be 3 months prior to Phase 1.

Information Technology Professionals
Kitchen Creations will hire two additional IT professionals whose primary responsibility will be
to convert the current website to the new website tailored for each region. The team will
work with Benoit Dervishi, our Director of Foreign Relations to ensure that adaptations are
made for each region to ensure that the proper grammar, culture, and graphics are utilized.
Hire date will be 6 months prior to Phase 1.
International Consultant
Kitchen Creations will hire an International Consultant to work will the entire management
team to prepare for all phases of implementation, including but not limited to cultural
differences, packaging, licensing, and certification requirements, shipping regulations, and
import/export regulations. The consultant will also accompany our Sales Manager to the site
of each implementation phase to assist in coordination of the process and ensure a smooth
transition into the international markets we have targeted. Hire date will be 6 months prior
to Phase 1.
10.3 Culture Training Considerations
Cultural Training: Kitchen Creation’s Director of Foreign Relations, along with the
International consultant will create and implement a training program for all current Kitchen
Creations employees educating them on the various cultural differences relevant for each
region.

Foreign Language Courses: Kitchen Creations will cover the cost of foreign language classes at
Akron University for interested employees. All top management is required to enroll. Cost
per class is $1,155.57
*Assuming 15 Enrollments
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
Staffing & Training Costs
Staffing & Training Costs

10.4 Selling Strategy Considerations
10.4.1 Sales
Method of Sales: Online, Phone
Percentage of Sales per avenue: 80% Online
20% Phone
Cost of Website Upgrade: $10,000
Website Maintenance: $150/Month
Telecommunications: $2000/Month
10.4.2 International Distributors
Method of Fulfillment: New York & Ohio Kitchen creations Fulfillment Centers
Distribution Centers:
Phase 1: Worldwide Distribution, located in Brussels, Belgium - European Distribution
Phase 2: Worldwide Distribution, located in Albany, NY – Mexico, Costa Rico, & Canadian
Distribution
Phase 3: Worldwide Distribution, located in Beihal, China – Asian Distribution, & Brussels,
Belgium –European Distribution
10.4.2.1. Monthly Distribution Center Fees:
Fixed “Rental” Cost: $1,500 each
Cost Per Case: $ .10

10.5 Future Considerations
 Once established in all markets, hire a regional sales manager for each.
 Further staffing needs as required
 Potential for International Fulfillment Centers in future
10.6 Staffing Needs
Met through Akron, Ohio Corporate Office and Fulfillment Center
$4,500 $4,500 $4,500
$3,000
$6,000
$9,000
$7,500
$10,500
$13,500
$31,500
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Phase 1 Phase 2 Phase 3 Total Distribuion
Costs
Distribution Costs through Implementation
Fixed Cost
Cost Per Case
Total DC Costs

UNIT & COST FORECAST
11.1 Phase I Units
Units Shipped Per Regions in Phase I
France 4,000
Germany 4,000
United Kingdom 4,000
Total Units 12,000
11.2 Phase II Unit Forecast
We will increase the units to 6,000 units each for regions of phase I (50-50 mix of low and high end)
and begin to ship to regions Mexico, Costa Rico, and Canada, 4,000 units each. Total units shipped
will be 30,000 units for phase II.
0
2,000
4,000
6,000
8,000
10,000
12,000
France Germany United
Kingdom
Total Units

Units Shipped Per Regions in Phase II
France 6,000
Germany 6,000
Mexico 4,000
Costa Rico 4,000
Canada 4,000
Total Units 30,000
11.3 Phase III Unit Forecast
We will continue to ship to regions I & II but will also continue to increase units shipped to our
other regions as market acceptance increases. We will also begin to ship 4,000 units each to
regions India, China and Hong Kong, for a total of 60,000 total units shipped in Phase III.
0
5,000
10,000
15,000
20,000
25,000
30,000
Units Shipped Per Regions in Phase II
Units Shipped Per Regions
in Phase II

Units Shipped per Region in Phase III
France 10,000
Germany 10,000
Mexico 6,000
Costa Rico 6,000
Canada 6,000
India 4,000
China 4,000
Hong Kong 4,000
Total Units 60,000
11.4 Forecast of Total Units for First Year
France, Germany, and the United Kingdom will see 20,000 units each shipped during the first year.
0
10,000
20,000
30,000
40,000
50,000
60,000
France
Germany
UnitedKingdom
Mexico
CostaRico
Canada
India
China
HongKong
TotalUnits
Units Shipped per Region in Phase III
Units Shipped per Region
in Phase III

Mexico, Costa Rico, and Canada, will see 10,000 units each shipped during the first year. India,
China, and Hong Kong, will see 4,000 units each shipped the first year. Total number of units to be
shipped is 102,000 with 12,000 units shipped in phase I, 30,000 units shipped in phase II, and then
60,000 units shipped in phase III.
Yr 1 - Units Shipped Per Region
France 20,000
Germany 20,000
Mexico 10,000
Costa Rico 10,000
Canada 10,000
India 4,000
China 4,000
Hong Kong 4,000
Total Units 102,000
0
20,000
40,000
60,000
80,000
100,000
120,000
Yr 1 - Units Shipped
Per Region

Units Shipped Trend
0
20,000
40,000
60,000
80,000
100,000
120,000
Yr 1 - Units Shipped Per
Region
0
20,000
40,000
60,000
80,000
100,000
120,000
Phase I Phase II Phase III Total

IMPLEMENTATION COSTS
12.1 Phase I Shipping Costs
After considering two reputable freight service providers, we decided to use Road Runner
Transportation Services (found at www.freightrater.com) to move our merchandise from our
warehouse in Akron, Ohio to the port or distributor in New York. They outbid typical semi-
truck transportation by ¾ of the cost because they use different carriers such as freight rail.
(See Table 12.1)
Phase I costs will include costs of $20,907.98 freight cost to ship to the port Newark in NY, a
cost of $109,943.90 for shipping charges from the port Newark to the Port of Brussels in
Belgium (Found using shipping calculator.com see figure 12.2), and approximately $10,000
forecasted for customs, duties, and misc. fees.
Phase I will also incur 50% of the cost of training and staffing the expansion, or $391,167 and
distribution costs of $7500, and Advertising costs of $200,000 (See Table 12.3).
Phase I shipping will be CIF (destination – Brussels, Belgium)
CFR (Cost and Freight)
Seller paid costs necessary to bring the goods to the named port of destination.
CIF (Cost, Insurance and Freight)
Same as CFR but seller also has to include marine insurance loss or damage to goods during the
shipment.

Table 12.1
Carrier Name
Est.
Days
Dir./Indir. Est. Price
Roadrunner Transportation
Services
Insurance Included.
3 Direct $20,907.78
YRC 2 Direct $1,084,233.45
Shipping Details:
From OH 44312 to NY 12214
Ready for pickup 11/01/11
400 Boxes of New commercialgoods
Freight class: 50 Dimensions: 12 x 24 x 18 in.
Total weight: 10000 lbs. Stackable: Yes Hazardous: No
Quoted on: 10/03/2011
Carrier: Dugan Truck Line
Estimated Transit: 3 Business days
Total: $1,408.25 USD
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Figure 12.2
DESCRIPTION VALUE RATE QTY. AMOUNT
Freight 40' Container $1,532.00 20 $30,640.00
Bunker Adjustment Factor [BAF Charges] 40' Container $80.00 20 $1,600.00
Warfage 0.01 MT $2.90 $2.90
Bill Of Lading $50.00
GRI Charges $75.00 20 $1,500.00
Residential Pickup Charges $35.00
Charges for High Security Seal (What is
this?)
$15.00
Surcharge for Personal Effects (with or
without Cars)
$120.00
Drayage to Loading Area
(11 - 50 Miles)
$485.00 20 $9,700.00
Fuel Surcharge $2,231.00
Customs Brokerage Fee $0.00
Delivery Charges (11 - 50 Miles) $0.00 20 $0.00
Insurance Charges ($500 Deductible)
(Type Of Goods: Household Goods –
International Move (with or without Cars))
$3,300,000.00 2 % $66,000.00
Shipper's Declaration (Over $2,499.00) $3,300,000.00 $50.00
Less: Online Allowance $2,000.00
Total US $109,943.90

12.2 Phase II Shipping Costs
Phase II costs will be $41,815.86freight service charges using Road Runner Services (See table
4.12) to move 12,000 units to our distributor in Albany, NY, and 18,000 units to the port of
Newark, NY.
From the port of Newark, NY, the charges will be CIF (destination – Brussels, Belgium) of
$109,943.90 to move 30,000 units, plus the additional costs of approximately $10,000 for
customs, duties, and misc. fees.
Phase II will also have costs of $195,583 for staffing & training (1/4 of a yr), distribution costs
of $10,500, and $400,000 advertising expenses.
12.3 Phase III Shipping Costs
Phase III will have costs of $62,723.34, to move 42,000 units using Road Runner Services to
move from our facilities in Akron, Ohio to the port of Newark, NY, and 18,000 units to our
distributor in Albany, NY.
From the port of Newark NY, shipping charges will be $219,887.80 to move 42,000 units CIF
(destination- BeihaI, China) and 18,000 units CIF (destination-Brussels), plus the additional
costs of approx. $10,000 for customs, duties, and misc. fees.
Phase III will also have costs of $195.583 for training & staffing (1/4 of a yr), distribution costs
of $13,500, and $600,000 advertising expenses.

Figure 12.3
Cost Forecast Phase I Phase II Phase III
Shipping cost
FCA Road Runner Service 20,907.78 41,815.56 62,723.34
FOB Seaport 109,943.90 109,943.90 219,887.80
Customs, duties, & Misc Fees 10,000.00 10,000.00 30,000.00
Hiring Personnel 391,167.00 195,583.00 195,583.00
Distribution Costs 7500.00 10,500.00 13,500.00
Advertising 200,000.00 400,000.00 600,000.00
Total Costs of
Implementation 739,518.68 767,842.46 1,121,694.14
12.4 Cost Breakdown
In breaking down the cost per unit, we see that in phase I costs per unit will average the most
because of phase I’s time frame being that of 6 months. On average though, between the
cost of product changes and the cost of shipping, the cost per unit is around $111.27 for the
“It’s For Life” high-end model and $81.27 for the “Max Mixer” low-end model.
It’s For Life Blender Cost
Per Unit
Max Mixer
Cost of Product 90.00 60.00
Cost of Product Changes
Packaging and Instruction 5.00 5.00
Labels & Certification 5.00 5.00
Cord/Adapter 6.50 6.50
Unit Cost 106.50 76.50

Units Costs
Shipping $243,351.68 $130,443.90 $363,611.14
Units $12,000 $30,000 $60,000
Average Cost of Unit
w/shipping $8.11 $2.17 $4.04
Plus Cost of Product Changes $106.50/76.50 $106.50/76.50 $106.50/76.50
High End Total Unit Costs $114.61 $108.67 $110.54
Low End Total Unit Costs $84.61 $78.67 $80.54
*Shipping costs include FCA Road Runner Service, FOB Seaport, Customs/Duties/Misc. Fees,
Distribution Costs, and Hiring/Training Costs for additional Loaders only.*

FINANCIAL ANALYSIS
13.1 Sales Revenue
Unit costs were determined using the pricing comparison table (Table 13.1 Appendix B). Our
marketing team, together with the international consultant, compared pricing in each of the
regions using similar blender brands and determining the mark-up used in each region. As a
secondary comparison, they compared the price of the same model of new car in each region
to help ensure our pricing was in-line with regional pricing.
13.1.1 Phase I Revenue
The 6,000 high-end & 6,000 low-end units that will be shipped during phase I will generate
$3,897,008 in revenue.
Phase I High End Sales
Regions Units Unit Cost COGS Sales Revenue Gross Profit
UnitedKingdom 2,000 114.61 $229,220.00 $815,168.00 $585,948.00
Germany 2,000 114.61 $229,220.00 $730,432.00 $501,212.00
France 2,000 114.61 $229,220.00 $852,544.00 $623,324.00
Phase I High End Totals $687,660.00 $2,398,144.00 $1,710,484.00
Phase I Low End Sales
Regions Units Unit Cost COGS Sales Revenue Gross Profit
UnitedKingdom 2,000 84.61 $169,220.00 $509,488.00 $340,268.00
Germany 2,000 84.61 $169,220.00 $456,528.00 $287,308.00
France 2,000 84.61 $169,220.00 $532,848.00 $363,628.00
Phase I Low End Totals $507,660.00 $1,498,864.00 $991,204.00
Total High & Low End Totals 12,000 $1,195,320.00 $3,897,008.00 $2,701,688.00
UnitBreakdown $99.61 $324.75 $225.14

13.1.2 Phase II Revenue
Phase II will increase the number of units shipped to phase I regions, and begin shipping a 50-
50 mix of low end and high end units for regions of phase II bringing the total to 30,000 units
generating $8,681,548.00 in sales revenue.
Phase II High End
Units Unit Cost COGS Sales Revenue Gross Profit
United Kingdom 3,000 108.67 $326,010.00 $1,222,752.00 $896,742.00
Germany 3,000 108.67 $326,010.00 $1,095,648.00 $769,638.00
France 3,000 108.67 $326,010.00 $1,278,816.00 $952,806.00
Canada 2,000 108.67 $217,340.00 $783,104.00 $565,764.00
Mexico 2,000 108.67 $217,340.00 $607,616.00 $390,276.00
Costa Rico 2,000 108.67 $217,340.00 $599,980.00 $382,640.00
Phase II High End Totals $1,630,050.00 $5,587,916.00 $3,957,866.00
Phase II Low End
United Kingdom 3,000 78.67 $236,010.00 764,232.00 $528,222.00
Germany 3,000 78.67 $236,010.00 684,792.00 $448,782.00
France 3,000 78.67 $236,010.00 799,272.00 $563,262.00
Canada 2,000 78.67 $157,340.00 359,740.00 $202,400.00
Mexico 2,000 78.67 $157,340.00 287,792.00 $130,452.00
Costa Rico 2,000 78.67 $157,340.00 197,840.00 $40,500.00
Phase II Low End Totals $1,180,050.00 $3,093,668.00 $1,913,618.00
Total High & Low End Totals 30,000 $2,810,100.00 $8,681,584.00 $5,871,484.00
Unit Breakdown $93.67 $289.39 $195.72

13.1.3 Phase III Revenue
Phase III will ship a total of 60,000 units, a 50-50 mix of low-end & high-end models for
regions of phase III, and an increase in units shipped to regions I & II. Sales revenue
generated totals $18,345,700.00.
Phase III High End
United Kingdom 5,000 110.54 $552,700.00 $1,957,760.00 $1,405,060.00
Germany 5,000 110.54 $552,700.00 $1,826,080.00 $1,273,380.00
France 5,000 110.54 $552,700.00 $2,131,360.00 $1,578,660.00
Canada 3,000 110.54 $331,620.00 $1,174,656.00 $843,036.00
Mexico 3,000 110.54 $331,620.00 $899,970.00 $568,350.00
Costa Rico 3,000 110.54 $331,620.00 $911,424.00 $579,804.00
China 2,000 110.54 $221,080.00 $2,664,200.00 $2,443,120.00
India 2,000 110.54 $221,080.00 $356,320.00 $135,240.00
Hong Kong 2,000 110.54 $221,080.00 $607,616.00 $386,536.00
Phase III High End Totals $3,316,200.00 $12,529,386.00 $9,213,186.00
Phase III Low End
United Kingdom 5,000 80.54 $805,400.00 1,273,720.00 $182,900.00
Germany 5,000 80.54 $805,400.00 1,141,320.00 $976,200.00
France 5,000 80.54 $805,400.00 1,332,120.00 $67,900.00
Canada 3,000 80.54 $604,050.00 539,610.00 $137,850.00
Mexico 3,000 80.54 $604,050.00 431,688.00 $475,170.00
Costa Rico 3,000 80.54 $604,050.00 296,760.00 $137,850.00
China 2,000 80.54 $402,700.00 238,624.00 $301,350.00
India 2,000 80.54 $402,700.00 164,192.00 $190,350.00
Hong Kong 2,000 80.54 $402,700.00 298,280.00 $488,100.00
Phase III Low End Totals $5,436,450.00 $5,716,314.00 $2,957,670.00
Phase III Total High + Low 60,000 $8,752,650.00 $18,245,700.00 $12,170,856.00
Unit Breakdown 102,000 $145.88 $304.10 $202.85

$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
$14,000,000.00
$16,000,000.00
$18,000,000.00
$20,000,000.00
High End Product
Sales Revenue
Low End Product
Sales Revenue
Total Sales Revenue
Sales Revenue Projections
Phase 1
Phase 2
Phase 3

13.2 Phase Analysis
The product costs and sales revenue per unit have been carried over from the Sales Revenue
tables in order to show monthly operating breakeven point.
Monthly Fixed Costs
Fixed Costs
Insurance 2,200.00
Rent 6,800.00
Utilities & Telecommunication 3,340.00
Telecommunication Payments 2,000.00
Machine & Equipment 5,500.00
Land & Building 4,400.00
Total Fixed Costs $24,240.00
Variable Costs
Phase I Variable
Costs
Phase II Variable
Costs
Phase III
Variable Costs
Shipping Costs
FCA Road Runner 20,907.78 41,815.56 62,723.34
CFI Seaport 109,943.90 109,943.9 219,887.80
Customs, Duties & Misc. Fees 10,000.00 10,000 30,000
Hiring Personnel 391,167.00
Distribution Costs 7,500.00 10,500 13,500
Advertising 200,000.00 400,000 600,000
Wages & Salaries 700,000.00 466,666.67 466,666.67
Product Costs (Table 5.1) 1,195,320.00 2,810,100.00 8,752,650.00
Total Variable Costs 2,634,838.68 3,849,026.13 10,145,427.81
Fixed Costs (6 Months/3 Months/3
Months) 133,440.00 72,720.00 72,720.00
Revenue per unit 324.75 299.49 $328.47
Variable Costs per Unit $219.57 $128.30 $169.09
Operating Breakeven Point (UNITS) 1268.68 424.79 456.27

13.3 Cash Flow Projection
Sales revenue has been carried over from the Sales Revenue tables, as well as all other
expenses.
Quarter 1 will not generate any revenue because our invoicing terms are 20% 30 net 60 and
we will make the assumption that our distributor will take advantage of the 20% discount and
pay within 30 days.
Q1 Q2 Q3 Q4
CASH REVENUES
Revenue from Product Sales $0.00 $3,897,008.00 $8,681,584.00 $18,245,700.00
TOTAL CASH REVENUES $3,897,008.00 $8,681,584.00 $18,245,700.00
CASH DISBURSEMENTS
Salaries and Wages 350,000.00 350,000.00 350,000.00 350,000
Onetime expenses 195,583.50 195,583.50
Promotion Expense Paid 100,000.00 100,000.00 400,000 600,000
Rent/Mortgage Payments 6,800 6,800 6,800 6,800
Insurance Paid 2,200 2,200 2,200 2,200
Telecommunications Payments 1,340 1,340 1,340 1,340
Utilities Payments 2,000 2,000 2,000 2,000
Machine & Equipment 5,500 5,500 5,500 5,500
Land & Building 4,400 4,400 4,400 4,400
Operating Expenses 597,660.00 597,660.00 2,810,100.00 8,752,650.00
TOTAL CASH DISBURSEMENTS 1,265,483.50 1,265,483.50 3,582,340.00 9,724,890.00
RECONCILIATION OF CASH FLOW

Q1 will end with a negative cash balance that will be carried over to Q2
Q2 generates enough revenue to cover the prior quarter’s negative cash balance and to pay
for the current phase’s expenses but it does not generate enough revenue to cover Q3.
Positive cash balance is carried over to the next quarter. Q3 makes enough revenue to cover
current phase expenses and the excess cash is carried over to Q4. By the end of Q4 we are
making enough profit, to cover the following quarter’s expenses.
($1,265,483.50)
$1,366,041.00
$6,465,285.00
$14,986,095.00
1 2 3 4
CLOSING CASH BALANCE
CLOSING CASH BALANCE
AddBeginningCashBalance 0 -1,265,483.50 1,366,041.00 $6,465,285.00
Add: Total Cash Revenue $0.00 $3,897,008.00 $8,681,584.00 $18,245,700.00
Deduct: Total Cash
Disbursements 1,265,483.50 1,265,483.50 3,582,340.00 9,724,890.00
CLOSING CASH BALANCE ($1,265,483.50) $1,366,041.00 $6,465,285.00 $14,986,095.00

13.4 Year Analysis & Break Even
Sales revenue has been carried over and calculated into yearly sales revenue. Variable costs
have also been carried over and calculated into yearly variable costs and then broken down to
variable costs per unit of $168.98
The firm’s break-even operating point is the point at which its total operating costs (the sum
of its fixed & variable costs) equals sales revenue
Break Even Units Unit Cost Total
Total Fixed Costs $278,880.00
Total Variable Costs 2093.46 168.98 $353,752.87
Total Operating Costs $632,632.87
Average Sales Revenue per unit 2093.46 302.2 $632,643.61
Break Even Point is at approximately 2093.46 units
Q1 Q2 Q3 Q4 12 months
Units 0 12,000 30,000 60,000 102,000
Operating Costs 597,660.00 597,660.00 $2,810,100.00 $8,752,650.00 12,758,070.00
Sales Revenue $0.00 $3,897,008.00 $8,681,584.00 $18,245,700.00 $30,824,292.00 $302.20
Fixed Costs $66,720.00 $66,720.00 $72,720.00 $72,720.00 $278,880.00
Variable costs $1,317,419.34 $1,924,513.07 $3,849,026.13 $10,145,427.81 $17,236,386.35 $168.98
Breakeven Point 2,093.46

At this point, Earnings before taxes & interest are $0
Above this point, we will make profit
Below this point, we will have a loss
(See Table below)
13.5 Return on Investment
Return on Invest is: Gain from Investment - Cost of Investment
Cost of Investment
Q1 will be the only quarter in which we have a negative return. From Q2 and forward, the
return continues to increase over time.
Q1 Q2 Q3 Q4
Gross Profit -1,265,483.50 $1,366,041.00 $6,465,285.00 $14,986,095.00
Cost of Investment 1,265,483.50 1,265,483.50 3,582,340.00 9,724,890

ROI -200.00% 7.95% 80.48% 54.10%
-200.00%
-150.00%
-100.00%
-50.00%
0.00%
50.00%
100.00%
1 2 3 4
ROI
ROI

RISK ANALYSIS
14.1 Competition Market Positions
Currently there is very little competition in the regions that we chose. The biggest
competitors are Kitchen Aid for our high-end model and Braun Power Blend for our low-end
model. Kitchen Creation’s products are priced cheaper than the competition, giving us a
competitive advantage. We also offer longer warranties than that of any of our competitor’s.
14.2 Market Acceptance of Our Product
As with any new product introduced into a market, there is a chance that customers
will reject it. Initially, we may face skepticism or even hostility. However, since similar
products are already being used and we offer the competitive advantage of lower prices and
longer warranties, we are confident that consumers will accept and purchase our products.
14.3 Investment
The first quarter is incredibly risky, since we will be investing heavily and receiving no
return on that investment. Starting in the second quarter though, we will begin to see a
profit that steadily increases from quarter to quarter. There is the risk that sales will not go
as planned, and we will have to go for a longer period without seeing a return on our
investment. Such a situation could cause serious financial concerns for Kitchen Creations. On
the other hand, we will still have our U.S. operations to sustain us through any difficult times,
with over $1 million in sales annually.
SUPPORT ANALYSIS

15.1 Inventory on Hand & Handling Returns
We will maintain a cushion of 25,000 cases of each of our products at each of our
three distribution centers. In case of emergency we could also ship from one of our five
manufacturing sites directly to the customer.
All returns will be processed through the Customer Service Department in Akron. If
the product is damaged, we will ship replacement product on the same day we receive the
damaged package (if during business hours). Customer service places the order with the DC
and sends the confirmation email. Customer should receive product within 2-3 days and will
receive a confirmation email letting him/her know that his/her replacement product is on the
way.
15.2 Turn Around Time
Each order that is received at the corporate office is instantly transmitted via the
ordering system to whichever DC the product will ship from (based on location). Typically, a
customer will receive their product in 3-5 days, barring any disasters. Shipments between
Kitchen Creations and Worldwide Distributions will occur once a month initially, and increase
as needed.
15.3 Support Location
Our support location is Kitchen Creations Corporate office in Akron, Ohio. Our manufacturing
plants in Akron and New York will provide the product for the expansion project. We also
have manufacturing plants in Michigan, Louisiana, Arizona, Oregon, and Colorado that can be
utilized if necessary.

15.4 Support Team
15.5 Warranty
“It’s For Life” Blender: Lifetime warranty for manufacturer defects. Provides for full
replacement of product.
Max Mixer: 5 year limited warranty on parts and electrical. Provides for replacement of
specific parts, or in the case of electrical issues, full product replacement.
*Customers must register their product through our website to be eligible for warranty.*
Christina Miller
President Michelle Walker CEO
Aaron McCauley Sales
Manager
5 Assistant Sales
Managers
Keith Miller Production
Manager
Warehouse & Loading
Personnel
John Howard Marketing
Manager
3 IT Personnel
Rita Nelson
Customer Service
Manager
25 Customer Service
Representatives
Claven Tesla
Research/Development
Victor Adler
Human Resources
Benoit Dervishi Foreign
Relations

EXIT STRATEGY
16.1 Exit Conditions
Under the following situations, Kitchen Creations will exit the region.
Reason For Exit Timeframe of Exit
Failure of Phase 1 1 month
Political Upheaval, War, Dangerous Situation Immediately
Natural Disaster (Rebuild Possible) As soon as possible
Financial Crisis for Kitchen Creations, or
affecting Kitchen Creations to the point of no
profit.
1 month
16.2 Proactive Planning
Management teams will visit the various regions one every 3-6 months to monitor processes,
environment, to ensure that standards are being upheld. These visits will also help us to
build relationships with our partners, which will give us a local contact for information
sharing. For the first 5 years, monthly sales and budget analyses will be conducted to ensure
that we are on plan. Our Director of Foreign Relations will be directly responsible for
monitoring current events, market conditions, and political situations so that we can be
prepared and plan ahead in the face of a crisis.
Summary
We sincerely hope you enjoyed our presentation. We hope you share in our
excitement over the global success Kitchen Creations can achieve. With your help, we can
accomplish great things in virtually untapped markets. With the further development of
countries worldwide, there is a tremendous opportunity for growth. Kitchen Creations hopes

to capitalize on that opportunity. We hope that you will share in and support our vision,
creating an extremely successful partnership. We are confident that we have considered all
aspects of this expansion and are fully prepared to make it an extremely profitable endeavor.

Kitchen Creations Completed Business Plan[1]

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