2. Table of Contents
Executive Summary..................................................................................................................1
Company Overview ................................................................................................................. 2
Product Plan.............................................................................................................................3
Market and Industry Analysis....................................................................................................5
Marketing Plan.......................................................................................................................10
Operations Plan......................................................................................................................16
Key Milestones.......................................................................................................................19
Management Plan ..................................................................................................................20
Risks.......................................................................................................................................21
Financial Plan .........................................................................................................................23
Funding Plan ..........................................................................................................................25
References ............................................................................................................................ 26
Appendix ………………………………………………………………………………………………………29

3. 1
Executive Summary
Concept
SudStream products offer innovative, convenient, and creative ways to wash dishes
and take a shower. SudSink is an efficient sink faucet attachment that dispenses precision
soap measurements into a running stream of water, while SudShower has the same
capabilities in a shower setting. Both products help save soap and other resources, utilize a
sleek design, and streamline the cleaning process.
Opportunity
SudStream has a strong opportunity to successfully penetrate the market with a
unique, innovative product. Currently, there are no solutions to the specific consumer pain
points that SudStream looks to address. SudStream products bring value to the lives of
consumers. Using a comprehensive marketing strategy, SudStream will make potential
users aware of the benefits of owning SudStream products. SudStream uses high-quality
designs that ensure durability, functionality, and aesthetic appeal. Sudstream aims to
produce an attractive solution to common frustrations, and seeks to bring value to the
consumer’s life.
Marketing Strategy
SudStream will implement brand strategy through marketing efforts geared toward
Generation X. This will be done through different strategies, including: SEO, pay-per-click
ads, website creation, live brand experience, and integrated marketing. Sales will be
launched through the Target pilot program. After establishing a loyal and positive customer
base, we will expand into other home improvement stores such as Williams-Sonoma and
The Home Depot.
Management
SudStream’s core management team will be comprised of four intelligent,
knowledgeable, and hard-working team members. The team’s experience and background
includes marketing, social media, law, finance, and business management. Michael Cates
will serve as SudStream’s CEO, Max Wehr will be VP of Sales, Paola Fernandez will be
SudStream’s COO, and Mariel McCown will serve as the CMO.
Funding
SudStream will require $916,479 in funding to cover start-up costs as well as first
and second year losses. A sum of $668,616 will come from angel investors, and this
investment can be expected to grow 80 percent to $3,899,368 by the end of year three.

4. 2
Company Overview
Introduction
SudStream offers innovative kitchen and showerhead attachments that dispense
measured amounts of soap into a stream of water (Figure 1). Our attachments will have
two outlets: One for soapy water, the other for tap water. A small plastic switch will let the
user alternate between the 'on' and 'off' settings. Once the unit is set to 'on,' the products'
mechanism will dispense a consistent amount of soap into the flowing water. This will
create the perfect combination of soapy water needed to do dishes, wash hands, or lather up
in the shower.
Vision
We aim to ease consumers' burdens by producing products that make their washing
habits efficient, effective, and sustainable. SudStream wants users to feel at ease when
using the products. By simplifying their life, helping to reduce plastic bottle waste, and
making it easy to cut back on water use, SudStream will add value to lives of users.
Mission Statement
SudStream is dedicated to providing innovative products of the highest quality that
help the consumer achieve an easier, more ecofriendly way of life.
Business Model
SudStream follows a business-to-business model as it will initially be sold
exclusively through the Target pilot program, with expansion to other home appliance
stores in the future. Our company will become profitable through initial sales of $39.99 for
SudSink products and $59.99 for SudShower products, reaching the break-even point in the
second quarter of the second year. SudStream's primary goals will be to maximize sales
volume and create product awareness in order to penetrate the market.
Figure 1 – SudStream Concept Model

5. 3
Product Plan
Key Attributes
SudStream products have a sleek, compact design that attaches directly to the
faucet spout, producing two new outlets: One for soapy water to run through, and the other
for tap water. Product advantages include cost-savings, resource conservation, and ease of
use. Making the decision to buy SudStream products will enable the user to reduce their
use of both soap and water, and will help simplify their life.
Providing a positive user experience is a central component in products offered by
SudStream. The products are designed to generate an experience that leaves the user
feeling good about their purchase. Once SudStream is installed, the user can feel at ease
knowing they are cutting back on packaging and product waste, as well as their use of soap
and water. They can feel confident in their purchase, because the product is made with the
highest-quality materials in order to ensure its durability (Table 1).
Table 1 - Features and Benefits
Features Benefits
Attaches to kitchen
faucet or bathroom
shower head
• Convenient, eliminates the step of putting the soap on
the dishes
• Reduces the mess left on countertops
Refillable
cartridges/container
• Reduces the amount of waste compared to buying normal
dish soap
• One-time purchase
• Eco-friendly, reduces environmental impact and carbon
footprint
Available in different
scents and soap varieties
• Provides the customer with customizability and choice
• Eliminates the need for buying countless soap bottles
Aesthetically superior • Nice to look at
• Clean and simple design
• Adds aesthetic value to your kitchen or bathroom
Two separate spouts • Gives an option to switch between regular and soapy
water
A switch to control
spouts
• Allows for ease of use when switching between water
options
• Eliminates having to disassemble and assemble unit
Produces a stream of
soapy water
• Eliminates the soapy residue mess left by traditional
soap bottles
• Makes for a more efficient cleaning experience
• A direct line of soapy water only where you need it

6. 4
SudStream products will improve the way users do their dishes and wash their
hands. Eventually, SudStream products will change the process of taking a shower, and
will eliminate the frustrations of keeping shampoo and conditioner bottles in a crowded
shower space. SudStream products are efficient, effective, cheap, and convenient. They are
also refillable, which will eliminate the clutter and inconvenience of soap bottles.
Use/Technology
SudSink will attach to the kitchen sink faucet, providing two new spouts for water
and soap to pass through. The customer will flip the switch on the side of the compartment
to dispense either soapy or normal water (Figure 2). SudShower will allow a similar
function as an attachment to a showerhead faucet. Customers will use the soap option to
wash their dishes, and use the normal water option to rinse them. SudStream products will
be able to attach to any existing sink or faucet. Units will be able to dispense different
kinds of soap, so the user is able to utilize whatever soap they like.
Patents
SudSink and SudShower are both new products that offer completely unique
functions. For this reason, securing patent protection is necessary to safeguard the design
and function of the product. There are several patents filed for similar products, but none of
the designs incorporate essential features of the SudStream system, and do not fall within
the scope of invention of SudStream designs.
While utility patents are relatively difficult and costly to secure compared to design
patents, this type of protection offers more security for products that offer a unique
function. Although a design patent would be faster and cheaper to obtain, the relevant
benefits of a design patent are limited, as this type of patent does not offer protections
related to the functional features of a product. Since SudStream products offer a unique set
of functions, a utility patent is a preferable means to protect the invention.
Comprehensive intellectual property protections for SudStream have not yet been
achieved, but initial research indicates that the invention is eligible for protection under a
utility patent. The next steps towards securing a patent require consultation with an
intellectual property attorney, and a subsequent filing for patent protection. While this
process is taking place, initial development can occur, including the creation and testing of
several designs and prototypes. Development will require the discovery of the optimal
design of the product, but testing of multiple designs will not affect the process of securing a
patent as long as our final product falls within the scope of invention of our initial design.
Figure 2 – Prototype Demonstration

7. 5
Stage of Development
SudStream is currently in the prototyping phase of development. Because the
product is small and uses existing technology, the design and prototyping process
will be relatively cheap and expedient. Challenges with structural integrity and
durability are likely to arise, but will be dependent on what materials are chosen for
the product. Finding a balance between production price and durability will be
essential when moving forward with design and prototyping, as the production of an
affordable, well-made product will be key in reaching our target market.
Market and Industry Analysis
Overall Market
The total number of housing units in the U.S. is 133.9 million in 2015, which is up
from 115.6 million units in 2009. That is an increase of 18.3 million or 15.87 percent.1 This
growth in the housing market has impacted the kitchen appliance industry as well, with a
growth of 6 percent in major appliance sales volumes in 2013 and a 3 percent growth in
2014 sales volumes. The sales volume is expected to continue its upward trend through
2019, but it will be fueled by smaller home appliances instead of large appliances.2
Addressable Market
Not all households can be realistically be assessed as viable targets for SudStream
marketing efforts. The ideal niche for SudStream products within the household goods
market includes working adults, families, college students, elderly citizens and
renters. These households present the best market for SudStream because they will hold
the most interest in purchasing a device that provides a convenient, affordable solution
compatible with most sink faucets.
Segmentation
SudStream products will be appealing to a wide range of households, but initial
marketing efforts will focus on segments of the population most likely to try the products,
in an effort to leverage a strong potential entry point for the offerings. The average
individual in the workforce earns an annual salary of $28,155, and 15.4 percent of the
population lives below the poverty line.1 A product made and priced for the average
individual that provides a quick and simple upgrade could do very well if the benefits were
clearly perceived. On average, working adults spend $42 on household cleaning supplies
and $14 on appliances, per month.3 Annually, that comes out to $504 on cleaning supplies
and $168 on appliances.
According to 2015 US Census Bureau estimates, there are 81.7 million families in
the U.S., and 22.9 million of these families are renters. Families are looking for everyday
conveniences to make life easier, especially when life gets hectic. Busy families with at least
one child at home constitute a significant market for home appliances and cleaning tools.
Persons of 65 years or older make up 14.5 percent of the population.1 The average savings
for individuals approaching retirement at age 65 is $103,000.4 With this amount saved,
most people over the age of 65 will need to continue working past the retirement age, and
as they age they will be looking to for household appliances that create convenience.

8. 6
Another segment SudStream sees as an area of opportunity for the future is the
hospitality industry. According to the United States Environmental Protection Agency,
water used in hotels and other lodging business accounts for approximately 15 percent of
the total water use in commercial and institutional facilities in the U.S. 5 A steady
movement of “green consumerism” from hotel guests, businesses and tourist-related
industries has also been influencing the way the hospitality sector chooses products and
appliances and implements practices. If SudStream teamed up with water-efficient
technology such as kitchen faucets and bathroom sinks/showers, it could be a great way for
the hotel management industry in the U.S. to achieve higher water-saving practices.
Entry Point
In order to successfully penetrate the market, SudStream is considering Generation
X and new families near the average annual income as the primary target of initial
marketing efforts. SudStream will create a high-quality product offered at an appealing
price that is well within the limits of our target market’s budget. To consumers with less
discretionary income, prices may seem high at first, but conveying the long-term savings
promoted by the product will help them realize that their decision to purchase is an
investment. Gen X makes up the majority of the growing market across most industries, as
well as a large portion of the eco-friendly movement. Because SudStream focuses on being
innovative and eco-friendly, products will be very appealing to this generational segment.
Industry Analysis
Direct distribution to retailers is the
most effective supply chain strategy for both
consumer cleaning products and kitchen
gadgets. Direct distribution to retailers
eliminates trade intermediary margins for
the risks of providing financing,
warehousing and distribution, and
subsequently incurs lower prices for
consumers. Large-chain retailers, such as
Target, Safeway, and Home Depot, operate
large distribution centers that function to
warehouse and ship products to local stores (Figure 3). This is why shipping directly to a
retailer’s distribution center is the most streamlined way to distribute products to large-
chain retailers.6 SudStream seeks to leverage the existing supply chain strategy of a
popular retail chain in order to minimize spending on distribution while still being able to
deliver products to the consumer in a manner that is quick and convenient.
Direct distribution to consumers is also a viable option, but isn’t advisable as the
sole method of distribution. Products in the industry that are exclusively sold online are
primarily boutique soaps and specialty detergents. Selling directly from a website is a
potential addition to a successful mix of distribution channels, but is not advisable as the
sole option for a product like SudStream.
Figure 3

9. 7
P&G, one of the most successful manufacturers in the industry, has developed a
unique supply chain focused on responsiveness. By building six large distribution centers
strategically placed around the US, P&G aims to be within one day’s transit of 80 percent of
retailers in the country.6 This is a unique strategy made possible by the vast resources of
the company, but suggests an important aspect of P&G’s strategy: a major reliance on local
retailers. P&G depends on getting large shipments of products into stores quickly. Constant
product availability is key in this industry, and firms must establish supply chains that are
efficient and effective in getting their products on the shelves of local retailers if they wish
to remain competitive.
Competitive Environment
The soap and cleaning compound industry is diverse, but includes several well-
known main competitors that control nearly 40 percent of the market. These primary
players in the $60 billion soap and cleaning compound market, include P&G (19.6 percent),
SC Johnson (9.8 percent), and Ecolab (6.4 percent).7 While these large firms control a
considerable share of the market, the majority of the industry is controlled by a variety of
smaller companies, such as Clorox, Unilever and Henkel, among many others. This
suggests that while there are major players present in the industry, a large group of
smaller firms control the majority of the market.
The soap and cleaning compound industry is highly competitive. Firms produce
similar products, so distinct advantages are created by implementing attractive pricing
strategies and building brands that are accessible to consumers. In 2012, P&G spent 9.4
billion on advertising, but still saw less organic sales growth than Unilever, L’Oréal and
Colgate-Palmolive, meaning that smaller companies are capable of competing with large
firms, despite having fewer resources.
Another relevant are of competition, the U.S. kitchen tool market, is $8.9 billion in
retail dollar sales on volume of 537 million units.8 According to Investopedia, OXO, a
leader in the kitchen tool industry reports sales of $224 million with an operating profit of
$42.6 million. OXO is focused on innovations that make consumers’ lives easier, a
philosophy they constantly reinforce with ergonomic products designed with both style and
function in mind. This intersection of critical design characteristics is a major key to
success in the kitchen tool market.
Barriers to Entry
Like any other new product, SudStream will face a variety of barriers when entering
the market. SudStream will face the challenge of competing with well-known brands, such
as Brita and Pur, who have developed products that also attach to faucets. These two
companies have well-known products, however, their technologies are used for water
purification, while SudStream products function to dispense soap into running water.
SudStream products will be able to use a similar design for the attachment mechanism
without infringing on existing patents. Products like the Brita and Pur sink units do not
have a soap attachment, and are thus not competition due to the market they occupy, but
because of the physical space their products live in. These well-known products have
become commonplace in many homes, meaning that competing to replace them will be a
significant challenge for SudStream.

10. 8
SudStream will be able to keep competitors from creating a similar product by
securing comprehensive patent protections of unique designs. The innovative soap-
dispensing technology of SudStream products is sure to differentiate the company and its
products from competitors. Perfecting and patenting designs for dispensers that attach to
faucets and showerheads to dispense a consistent amount of liquid soap mixed into the
stream of water will be key for the success of the company. This technology has not been
explored by other companies, giving SudStream a strong advantage in a newfound market.
Competition
Direct competition for the SudStream sink attachment, the SudSink, includes
bottles of soap, soap-filled sponges, dishwashers and sink-mounted soap
dispensers. Brands for soap pumps, bars of soap, and soap bottles range from everyday
Dial soap pumps, bars and bottles and OXO sponges to Georgia-Pacific automated soap
dispensers.10 Dial has a strategy of being an effective dish and hand-soap brand while still
being gentle on skin.9 OXO has created a scrubbing sponge that dispenses soap into the
sponge itself. The OXO sponge is convenient and helps reduce mess.10 Georgia-Pacific, on
the other hand, is aiming to make hygiene more convenient for the public (Table 2).11
Direct competition for the SudStream showerhead attachment, the SudShower, will
include soap bottles and bars of soap which are highly available at a low price, typically
around seven dollars. When compared to SudShower, the soap bars and bottles are much
more affordable as a single purchase. However, the longevity of SudShower makes the price
a justifiable long-term investment for the consumer. SudShower is also a great option for
environmentally conscious consumers, as it helps conserve soap and water (Table 3).
Another competitor for SudShower is the washcloth or loofah. These types of
products have a high longevity and tend to save soap, meaning that they are relatively
ecofriendly. While SudShower is more expensive than the average washcloth or loofah, it is
much more convenient for the user, due to the fact that it eliminates the need to have a
soap scrubbing tool (Table 3).
Table 2 – SudSink Competition
Product Price Longevity Convenient Eco-
Friendly
Sleek
Design
Efficiency
Soap Bars $4-$8 Low No No No Medium
Soap Bottles $4 Low No No No Low
Sponges/Fillable
Dish Wands
$6 Medium Yes Yes No Medium-
Low
SudSink $40 High Yes Yes Yes High

11. 9
A major aspect of SudStream’s indirect competition consists of products that connect
directly to the faucet. These products include Brita Faucet Filtration Systems, PUR Water
Faucet Mounts, DuPont Faucet Mounts, and Culligan Faucet Mount Filters. All of these
products are used to filter water, but compete with SudStream products due to the space
they occupy within the home. Other common soap-dispensing units that mount within a
sink create indirect competition. This is because a consumer might not see the need to buy
SudStream products if their kitchen already has a built-in soap dispenser. These products
do not mix soap with water, but might discourage consumers from purchasing SudStream
products.
A company that could be considered a major source of competition in the future is
Procter and Gamble. This multinational consumer goods company has major products that
dominate the consumer goods industry. This includes many types of dish-washing soaps.
P&G also has Braun, a brand that offers a variety of appliances, from coffee makers to
steam irons. In the future, Procter and Gamble could potentially expand to create gadgets
similar to SudStream units, depending on the status of patent protections. Other large
companies that play a major role in the industry include Johnson & Johnson, Unilever, and
Kimberly-Clark Corporation.
Table 3 – SudShower Competition
Product Price Longevity Convenient Eco-
Friendly
Efficiency
Soap Bars/ Bottles $7 Low No No Medium
Washcloth/Loofah $3 High No Yes Medium
Showerhead
Attachments
$40 High Yes Yes Low
SudShower $60 High Yes Yes High

12. 10
40%
26.70%
20%
13.30%
0%
Target Market Interest in SudStream
Products
Definitely WouldBuy
Probably WouldBuy
Might or Might Not Buy
Probably WouldNot
Buy
Definitely WouldNot
Buy
Marketing Plan
Customer Research
Primary customer research within the SudStream target market was gathered
through online surveys. A total of 15 people participated and their ages ranged from 18 to
65. Research found that 40 percent of customers who were surveyed stated that they would
definitely buy SudStream products. This illustrates that the market is extremely interested
in SudStream products, which makes them viable for success. Over 60 percent of
participants showed definite interest in buying the products.
The target market was also questioned on what prices they would be willing to pay
for SudStream products. As seen in Figure 3, 26 percent of potential customers would be
willing to pay between $20 and $29, which demonstrates that around one-quarter of the
target market is looking for an affordable product. However, as shown in Figure 4,
approximately 80 percent of potential customers would be willing to pay $30 and up for
SudStream products. Additionally, the surveys found that customers expected to find
SudStream products sold at a variety of retail, home improvement and large department
stores, as well as from online retailers.
Target Customer Strategy
Customer Profile
Since SudStream is so versatile, the target is broad, but initial efforts will use a
strategy focused on reaching consumers who are willing to try new products, are eco-
conscious, and have some level of discretionary income. The eventual scope of the market
for SudStream will include Baby Boomers, Generation X, and Generation Y. The essential
characteristics of SudStream lend well to a marketing effort initially geared toward
Generation X.
Figure 4

13. 11
Generation X includes individuals born in the early 1960s to the early 1980s. This
generation represents a key intersection of environmental consciousness, willingness to try
new products, and discretionary income. According to the Pew Research Center, this
generation represents 31 percent of national income dollars, which means they have a
major influence in the market, and their impact will continue to grow in the future. Gen
Xers are also more likely to try new brands, and they buy more home improvement
products than any other generation.
Buying Decisions
While individuals in Generation X tend to consider purchase decisions thoroughly,
they are also the least price-sensitive generation, meaning that their perception of price
depends on product quality and brand identity12. As individuals, they want products that
will deliver unique functions at improving their own lives. They are less concerned with the
cost of a product, and are more concerned with the individual benefits of the product.
Though these individuals prefer to shop online, they make frequent trips to bricks-
and-mortar stores and tend to spend more as well. Gen Xers make an average of 3.9 trips to
the store each month13. They also spend more on home improvement and grocery shopping
than any other generational group14 . Their mean for spending are conducive to both
physical and online retailers, as 79 percent own a credit card15.
Customer Behavior
Generation X has an affinity for researching products online, but don’t always buy
through this channel. 46 percent of Gen Xers look products up before going to a physical
store to purchase them16. Because of this, an online presence is essential in becoming part
of the Gen X shopping process, but offering the product at physical retailers is an effective
way to promote the eventual process of purchasing the product.
Channel Strategy
In order to get the word out about SudStream products and create a loyal following,
SudStream will build an informational website from the start. This will be a great way for
the company to deliver product information and drive consumer engagement toward
potential purchases at retail locations. Informational websites are valuable learning labs
and highly effective hubs for disseminating product knowledge and building brands.
SudStream will initially plan on maximizing sales and expansion through Target,
our specific retailer of choice. Target was among the top national retailers in 2014 and had
worldwide sales of $71.3 billion in 201317. We chose Target because we feel its consumers
capture our brand identity and lifestyle, as well as the fact that Target offers pilot project
opportunities for new products. We believe they will be interested in offering us this
opportunity due to the fact that SudStream offers very innovative and eco-conscious
products. Because Gen Xers like to shop online as well as in-store, SudStream expects to
see sales in the thousands in each of the first two years of being sold through Target and its
online presence.
Once SudStream products have gained recognition from this, expansions into other
national retailers such as Williams-Sonoma and The Home Depot will take place. Of course,
because of the modernization of traditional retailers having multi-channel strategies,
SudStream hopes to see online retail sales for its products grow through the retailers’
websites.

14. 12
Positioning
SudStream is an innovative kitchen and bathroom appliance that delivers precise
soap measurements into a stream of water to create a soapy mix for kitchen and bathroom
use. We serve a wide range of consumers including: young home-owners, renters and older
demographics, but we are focusing on entering the market by appealing to existing
homeowners who have established incomes. Our products meet the needs of our consumers
by creating efficient and eco-friendly products that save packaging, water, time and mess.
SudStream will appeal to consumers with its sleek, durable design that offers precision
soap-dispensing technology at an attractive price point.
Branding Strategy
Brand Identity
Our brand aims to create an eco-friendly image paired with innovation, convenience,
and efficiency. Not only do the products help organize and consolidate kitchen and
bathroom items, but they help reduce waste by significantly reducing the amount of
packaging used and excess soap wasted. Consumers will associate SudStream products
with a forward-thinking brand, which in turn will create a brand identity directly
associated with our most important values: eco-consciousness, innovation and efficiency.
We have designed our main logo with this in mind. It has two colors, green and blue
(Figure 5). By incorporating green into our trademark, the brand promotes the eco-friendly
movement. The blue will create a fresh and clean feeling consumers tend to associate with
washing and cleaning.
Brand Personality
Our values as a company include efficiency, sustainability, and simplicity in
innovation. We want our consumers to associate our brand with forward-thinking home
improvement strategies that enhance their lives. SudStream will achieve this by offering a
line of durable and compact designs that cleanse with maximum efficiency and ease. We
would like to be known as a sustainable company; our website, logos and product designs
all cater to this aspect.
Figure 5

15. 13
Digital and Communications Strategy
SudStream plans on reaching our target market through a variety of different
channels. We will spread our brand identity and personality and create product awareness
through digital, live brand experience, and integrated marketing communications.
Search Engine Optimization (SEO)
For an SEO strategy, SudStream plans on focusing in on a few key aspects that will
best enhance our internet presence. According to Google’s SEO Starter Guide, one of the
key ways to maximize website traffic is to create unique, accurate page titles. To achieve
this, we plan on creating a website with multiple subpages describing our products.
Another extremely important part of SEO is ensuring that the website is easy to navigate.
For our website, we will have a root homepage to serve as the introductory background
information about who we are as a company. From there, we will have subpages for our
products with their descriptions, a product support page, an ‘about us’ page, and a contact
page. SudStream will also be extremely aware of our website analytics within the first two
years of our website launch. Web analytics programs such as Google Analytics can help
SudStream gain insight into how users research and behave on the site, discover the most
popular content, and measure the impact of optimizations made to the site.18
Display Ads and Website Creation
Digital strategies will include online advertising and website creation. SudStream
will place online advertisements through social media advertisement platforms like
Facebook Connect, but will focus on websites that specifically relate to our product category
and industry. SudStream would like to display pay-per-click ads that are targeted toward
specific Facebook users based on preferences, demographics, and location. Average cost-per-
click (CPC) of pay-per-click advertising was around $1.58 in 2015, with a click-through rate
of 80 percent.19
The SudStream website will function to spread product knowledge and raise brand
awareness. This website will convey information ranging from what the products are, their
features and how they function to benefit the consumer. The costs of building the website,
including expenses related to programming, content support and user experience, will cost
$5000. SudStream will invest a minimum of $500 per month for ongoing, proactive
marketing efforts and SEO related to the website. 20
Live Brand Experience and Integrated Marketing
Live brand experience marketing will include product exhibitions and
demonstrations. SudStream will install SudSink products in public locations like Sur La
Table in the 29th Street Mall in Boulder. Sur La Table is a kitchenware retail company that
features cooking classes in their in-store kitchen. SudSink will be distributed free of charge
to a number of these stores throughout the country in an effort to be featured as part of the
cooking experience. From this, we hope to establish a retail sales relationship in order for
Sur La Table to have our product in stock.
SudStream will implement integrated marketing communications through two 30-
second TV commercials on local stations, such as FOX31 Denver and Channel 6 Rocky
Mountain PBS. These will be effective tools in generating brand awareness and product
trial. A total cost estimate for local ad buys played during multiple opportune time slots will
be less than $500021.

16. 14
Pricing and Sales Strategy
SudSink and SudShower, the two products offered by SudStream, will be priced at
$39.99 and $59.99, respectively. This pricing model is based on a mix of factors, including
estimated unit cost, price points of similar products on the market, and a high perceived
product value. Based on production costs of similar products, the estimated unit cost for
SudSink (Table 4) is $24 and $36 for SudShower (Table 5).22 This is based on data
concerning the production costs and corresponding markups and construction for products
that use similar parts. Due to the varying size and complexity of SudStream’s separate
offerings, it is necessary to assess two individual estimates for unit cost and product price.
Table 4 – SudSink Retailer Fulfillment Breakdown
Price to Retailer $24
Price to Produce $10.10
Retailer Revenue $16
Price to Customer $40
Table 5 – SudShower Retailer Fulfillment Breakdown
Price to Retailer $36
Price to Produce $10.10
Retailer Revenue $24
Price to Customer $60
SudStream is able to enter the market at a price point justified by product value,
since the products offered are innovative and designed to create a level of utility that the
current target market is willing to pay for. Higher initial sales for SudStream products will
function to cover startup costs, but as sales growth pushes production to become more
efficient, unit costs will fall, potentially enabling SudStream to offer a lower price point in
an effort to gradually broaden the target market. The pricing strategy of SudStream
products will assist in optimizing market penetration, maximizing revenue growth during
the first years of production, and ensuring long-term sales success.
Revenue Model
The SudStream revenue model utilizes the “top down” approach to illustrate
projected sales for the first three years of operation based on current market trends. The
bath and shower industry alone is a $7.5 billion market23 made up of 3,902.6 million units
annually,24 and the U.S. kitchen tool and gadget market is worth $8.9 billion annually.25
These two markets sum up to $16.6 billion dollars in sales every year, and both industries
have a compound annual growth rate (CAGR) of 2 to 3 percent through 2020.26 When the
SudStream products are ready to launch in January of 2017, the addressable market will be
approximately $17 billion.

17. 15
Since SudStream products will initially be sold through Target, sales figures for the
SudSink and SudShower in the first three years were projected using product pilot program
figures from Bed Bath & Beyond. The figures provide a slightly more conservative model
due to the fact that Bed Bath & Beyond has about one-third fewer store locations in the
U.S. than Target.27 For the first six months, SudStream products will be placed in 30
Target locations. After six months, the pilot program will expand to 100 store locations
across the U.S. for two years. At year three, the pilot program will finish and SudStream
products will be offered in at least half of all U.S. Target locations.28 The number of
SudSink units sold in the first year of business will amount to 11,367. Year two will see
sales increase to 46,098 units total and SudStream will have sold 84,514 SudSink units at
the end of year three (Figure 6). For our SudShower product, total sales during year one
will reach 5,670, rise to 22,974 at the end of year two, and climb to 42,126 at the end of year
three (Figure 7).
Figure 6
Figure 7
-
2,000
4,000
6,000
8,000
10,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
UnitsSold
Month
SudSink Sales Forecast
Year One Forecast Year Two Forecast Year Three Forecast
-
1,000
2,000
3,000
4,000
5,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
UnitsSold
Month
SudShower Sales Forecast
Year One Forecast Year Two Forecast Year Three Forecast

18. 16
Operations Plan
SudStream aims to optimize operations by being closely involved in each stage of the
process. This will enable SudStream to secure production processes that build durable,
high-quality units at a more flexible pace. During initial years of business this process will
be continuously improved and expanded, potentially presenting the cost-saving opportunity
to work with contract manufacturers outside of the U.S., while still maintaining a high
standard of production quality. Keeping operations within the U.S. during initial years of
production ensures maximum oversight of development processes, and allows for a higher
standard of build quality and unit functionality.
SudStream products will be manufactured and distributed exclusively in the U.S. for
at least the first three years of operation. The main products, SudSink and SudShower, and
their components will be manufactured using injection molding of high-quality plastics at
Pikes Peak Plastics Corporation in Colorado Springs. Pikes Peak Plastics also offers
procedures using 3D printing, which SudStream will incorporate into the prototyping
process. During the first three years of operation, SudStream will have a small staff
working at a warehouse in Pueblo, Colorado. The warehouse location was selected because
of its close proximity to Pikes Peak Plastics and a major Target distribution center, which
are located in Colorado Springs and Pueblo, respectively.
Research, Development, and Engineering
SudStream has developed a SudSink prototype, which will primarily be used for
demonstrative purposes to communicate functionality before production begins. The
ultimate design of the product will be similar to the prototype, but will need to undergo
changes in design to avoid intellectual property infringement. This is why the product will
be conceptualized in-house, but will need a development engineer for the more technical
aspects of the process. Since operations will be based near Colorado Springs and Pueblo, it
is prudent to contact an engineer located within this region of the state to minimize
complications associated with distance. Hiring an engineering consultant in our area of
operation on a short-term contract during development will cost approximately $8000 per
month, based on average salary data for an experienced mechanical engineer.29
The testing process of SudStream products will be continuous throughout
development, with alpha testing occurring at every stage of the process, using rigorous in-
house processes that ensure functionality and durability. Beta testing will be conducted
when final prototypes are developed, in an effort to ensure the convenience and usability of
the products. The primary sample group for beta testing will include individuals willing to
try the product free of charge. This could include family and friends of founders, as well as
innovators who are willing to try the product after hearing a brief description. The beta
testing process will be informal, will likely take place in the tester’s home, and will involve
the actual use of the product, enabling SudStream to complete an ethnographic analysis of
what users tend to like and dislike about the units. The testing process will be filmed for an
internal product review process, but the footage will also be useful in product
demonstrations and advertisements. A rigorous, realistic testing process is essential in
achieving SudStream’s goal of producing high-quality products that are functional and
easy-to-use.

19. 17
Warehouse
After the parts have been manufactured by the contracted firm, they will be shipped
to the warehouse in Pueblo, Colorado. The SudStream warehouse is only 44 miles from
Pikes Peak Plastics Co., and just minutes away from a Target distribution center located at
34800 United Ave, Pueblo, CO. This will allow SudStream to ship the assembled and
packaged products to the distribution center in a timely manner. Warehouse costs will be
$0.97 per square foot or $5,000 in rent per month for a 5,130 square foot warehouse which
will provide a surplus of room to store SudStream inventory and allow for product
packaging and assembly.30 In order to deliver inventory to the Target distribution center in
Pueblo, a moving truck will be necessary, and will cost approximately $8,250.31
Order Fulfillment
Business operations will use the NetSuite Enterprise Resource Planning (ERP)
solution. This system will help with essential operations such as financial management,
supply chain and inventory organization, ordering and billing, and revenue recognition.
NetSuite’s sophisticated Warehouse Management System (WMS) will optimally manage all
resources within the distribution operations while minimizing the total cost of operation or
ownership (TCO). The NetSuite WMS solution enables SudStream to optimally manage
distribution operations using RF device-directed putaway and picking tasks driven by
customized user-defined strategies and advanced capabilities like wave management,
cartonization, cycle count planning, real-time inventory updates, and integration with
shipping systems. This will help SudStream control inventory, minimize fulfillment and
shipping costs, and optimize operations and production strategies, all of which are essential
to the success of the venture.
Inventory
At the SudStream warehouse, inventory will be based on the monthly unit
production average for each year. For example, in year one there are approximately 17,000
total units or 1,400 units per month, meaning that, in year one, there will always be a
buffer inventory of 1,420 units stored at the warehouse. Likewise, in years two and three,
inventories will increase to 5,75 and 10,500 units per month respectively (Table 6). This
will allow SudStream products to be ready for unpredicted jumps in demand or potential
batch defects. The SudStream warehouse will have an inventory manager who will be in
charge of making sure the warehouse is always stocked with at least a month’s worth of
product parts, preventing any shortage issues in production.
Table 6 - Employee Production Analysis
Year Part-time Employees Products/Month Products/Employee/Hour
One 2 1,420 4.4
Two 4 5,756 5
Three 6 10,500 4

20. 18
Staffing Plan and Employee Costs
SudStream will have a staff of 16 employees by year three of operation. Four of the
employees will be the owners who will earn an average of $3,500 (Table 7) a month or
$42,000 annually. This $42,000 salary will allow the owners to live comfortably in Pueblo
where they can have immediate access to the warehouse and assembly line. Another
salaried employee will be the mechanical engineer who will help develop the SudStream
products for the first four months of business. The other salaried employees will be the
operations manager and inventory manager.
Full-time hourly employees will include an inventory specialist and delivery
specialist who will each make $12.00 per hour. Additionally, there will be two to eight part-
time employees. Two to six assemblers will be necessary for years one to three, and they
will be paid $9.00 per hour based on the Colorado minimum wage of $8.31.32
In year one, there will be two part-time assemblers to assemble and package 1,420
SudStream units per month, which will require the assembly of 4.4 products per hour per
assembler. In year two, SudStream products will increase to 5,756 units per month. 36
SudStream products will need to be assembled and packaged every hour, so the assembly
team will be expanded to four part-time employees, which will require each assembler to
finish 5 SudStream products every hour. In year three, 10,500 SudStream products will be
produced per month. Once again the assembly staff will be increased, this time to six part-
time employees, meaning that each employee will need to finish 4 SudStream products
every hour.
The other two part-time employees will be customer relations specialists who will be
paid $12.00 an hour. Annual benefits will also be provided to all full and part-time
employees in the amount of $500 for health insurance, and there will be a 4.00 percent
contribution towards employee savings each year.
Distribution
SudStream will hire a truck driver to drive the pieces from Pikes Peak Plastics to
our warehouse, as well as from our warehouse to the Target distribution center. Once our
truck driver arrives to our receiving garage door, the receiving staff will unload the product
parts, scan and document each item in the shipment, and stock parts inventory before they
move to the product assembly line.
The Assembly Manager will oversee the employees on the assembly line. Here, two
to six assemblers will be needed during years one to three. They will be in charge of putting
together the final product, setting-up the boxes used for packaging, placing the products
inside with packaging foam for product protection and securement, and sealing the finished
unit.
Table 7 - Staffing Costs
Employees Year One Year Two Year Three
Owners $168,000 $173,040 $178,231
Salaried $105,600 $108,768 $112,031
Full-time Hourly $124,800 $192,816 $264,801
Part-time Hourly $49,920 $77,126 $105,920

21. 19
After the assembly line, packaged products will exit the shipping door, where our
truck driver and shipping staff will scan and document the outgoing units, and load them
onto the truck. Once finished, the truck driver will make the short trip to the Target
distribution center where their staff will be ready at the receiving bay.
Key Milestones
2016
• October 1st -
Prototype finished
•December 31st -
Patent filed
2017
•January 1st - Product
Launch
• October 31st - Sell
10,000th product
•December 31st -
Expand from 30 to 100
Target locations
2018
•June 30th - Break-
even
•December 31st -
Expand from 100 to
500 Target Locations
2019
•Sell 100,000 products
in one year
•Company valued at
$15,359,200
Business
Launch

22. 20
Management Plan
Figure 8 – Management Diagram
Michael Cates will be graduating from the University of
Colorado Boulder as a biochemistry major with minors in chemistry
and business. His previous experiences of working in the financial
sector, in sales, in IT solutions, as well as in quality control and
assurance make him an excellent fit for the roles of CEO and CFO at
SudStream where he will be responsible for working with the other
executive members to ensure SudStream is run smoothly. He will
also be responsible for overseeing all financial activities.
Paola Fernandez is pursuing a double-degree in journalism and
Italian with a minor in business from the University of Colorado
Boulder. Her previous experiences in managing, administrating, and
organizing work and university-related events, as well as her
knowledge in implementing brand culture and brand strategy through
her public relations experience makes her a strong candidate to be
SudStream’s COO. Paola will oversee internal operations, design and
development, and ensure that SudStream’s business operations are
efficient and effective.
Board of
Directors
CFO
Michael
Cates
Assistant
Accountant
CMO
Mariel
McCown
VP Sales
Max Wehr
Human
Resources
COO
Paola
Fernandez
Inventory
Manager
Shipping &
Receiving
Warehouse
Manager
Assembly
CEO
Michael
Cates

23. 21
Mariel McCown is finishing up her BFA degree in film
production and minor in business at the University of Colorado
Boulder. Her areas of expertise include creating high quality short
films, producing effective creative advertisements, and generating
strong, persuasive pieces of writing which make her an ideal
candidate for the role of CMO at SudStream. As CMO, she will
oversee advertising, pricing strategy, market research, and product
development.
Max Wehr will graduate magna cum laude from the
University of Colorado Boulder in May 2016 with a degree in
philosophy of law and a minor in business innovation. Max will serve
as SudStream’s VP of Sales, due to previous experience as a sales
representative, client relations manager, and brand spokesperson. As
VP of Sales, Max will manage relations with manufacturers and
distributors, will direct a team of sales representatives, will oversee
essential functions of the human resources department, and will
consult directly with SudStream’s legal counsel.
With all four owners staying on to help grow the business, it was decided that each
should have an equal share of 20 percent of SudStream’s equity. With the owners’ equities
totaling 80 percent, a great majority of control over SudStream will remain in the hands of
the original founders. Additionally, SudStream will have an outside board of directors to
increase the amount of business expertise while growing the company in the first three
years.
Risks
Strategic
The SudStream business model depends on a single source of revenue. Target, our
preferred distributor and retail outlet, is selective about the products that make it on their
shelves. It is possible that = SudStream will not initially be accepted into Target stores
across the country, which is why developing a second retail option is essential. SudStream
has researched alternative strategies, ultimately deciding that using Bed Bath & Beyond as
a retail outlet would be a prudent option for the company.
Target was chosen for its distribution network and shopper volume. Bed Bath &
Beyond has comparable distribution channels, and attracts great numbers of innovative
shoppers searching specifically for items related to our product class. This means that while
initial sales may be lower due to the fact that Target has more locations than Bed Bath &
Beyond, prospective customers will ultimately be more likely to buy our product when
shopping at Bed Bath & Beyond. This change in sales is likely to require slight
modifications of predictions related to initial scaling of operations and first year revenue,
but is unlikely to change long-term figures, as SudStream is expected to gain significant
traction in the market as a highly desirable and innovative product.

24. 22
Operational
The SudStream operations plan depends on a single parts manufacturer. Pikes Peak
Plastic, our first choice for parts manufacturing, could produce a product that does not meet
our standards of quality. This is why SudStream has consulted alternative options for the
fabrication of essential components of our units. There are a number of plastic injection
molding companies located near our warehouse facility, that also offer comprehensive
prototyping assistance. If Pikes Peak Plastic fails to offer services that meet our standards
of quality, we have decided to work with Fast Plastic Parts, a plastic manufacturing
company also located in Colorado Springs. Fast Plastic Parts specializes in high-quality
plastic injection molding, prototyping, and even offers short-run molding and fast molding,
which will help us perfect our product in a small amount of time. The SudStream brand is
focused on producing high-quality products that are both durable and functional. The
manufacturing process of our operations strategy is essential in building a respectable
brand image, as well as offering a product that will provide real value to our customers.
SudStream maintains high standards in all aspects of operations, and will not settle until
the manufacturing process consistently produces products of exceptional quality.
Maintaining such high standards of quality will require extensive testing of the
product. Both alpha and beta tests will be conducted continuously through the process to
ensure that prototypes meet our standards of design and function. The development of the
products will likely require several rounds of testing, but will ultimately incur huge
benefits for SudStream by enabling the company to consistently produce high-quality units.
Rigorous testing of prototypes prevents problems that may occur down the line when
production increases. By thoroughly testing and evaluating prototype models, SudStream
can make sure that only the best design makes it to production, and that only the best
product makes it into the hands of the consumer.
Financial
The largest financial risks for SudStream in the first three years of production will
be driving sales figures as steadily as predicted and securing the necessary funding for the
first three years at a reasonable interest rate. The approaches that SudStream has taken
to reduce the risk of lower sales include leasing minimalist warehousing and assembly
facilities and asking for emergency working capital that will be available for unexpected
costs or negative cash flows. By using a “bootstrapping” method to keep costs low,
SudStream will be able to operate for a longer period of time should revenues be less than
expected within the first few years. Additionally, SudStream plans to help drive sales with
large ad campaigns that will help to create product awareness. The extra working capital
will be helpful in funding these campaigns if sales numbers are too low at the start.
SudStream has planned to minimize its funding risks by diversifying the sources of
funding. We expect to raise $70,000 from our personal funds as well as investments from
family and friends. An angel investor will also be sought after for an investment of almost
$668,616. By receiving the majority of the necessary funding through selling small
amounts of equity, SudStream will be able to avoid the risk of holding onto large amounts
of debt in the first three years of production. The only debt SudStream will need to incur
will be through an SBA loan which will have a low interest rate of 2.25 percent. This type
of loan is expected to be simple to obtain, and should be considered a relatively reliable
source of funding, according to our consultation with a VP relationship manager at Bridge
Bank.

25. 23
Financial Plan
Startup costs for SudStream will include purchases of inventory management,
assembly, and packaging equipment totaling $7,877. As SudStream continues to grow,
additional inventory and assembly supplies will be purchased from Uline33 to efficiently
scale production. SudStream is also looking to purchase a delivery truck which is expected
to cost $8,250 (Figure 1.0). Salaries for a prototyping engineer and the four owners will
also need to be paid for the months prior to January 2017. In all, opening salaries will cost
SudStream $130,000.
Since SudStream products are sold in-store, it can be assumed that 8 percent of the
units sold will be returned.34 The average monthly cost for customer refunds in year one
will be $6,800 which is expected to grow by roughly 10 per year. One of the key drivers for
SudStream will be sales volume which will be established through our presence in Target
retail locations and the emphasis we place on advertising. In an average month, we
estimate advertising efforts to cost us $15,000. This includes expenses related to pay-per-
click banner advertising, Google AdWords, search engine optimization and keyword
analytics, multiple television commercial spots, print advertisements, website creation and
maintenance, and product donations. Our monthly advertising expenditures will ensure
broad awareness of SudStream and its offerings, and will be a key driver in market
penetration and revenue growth.
Financial Projections
SudStream’s net incomes are projected to be negative $650,677 for year one, positive
$124,648 for year two, and positive $767,960 for year three. The ratio of net income to total
income by year three is 21.66 percent. Additionally, cash flows are expected to become
positive by quarter two of year two (Figure 9) which aligns with the projected break-even
point (Figure 10). With the strong but conservative growth for SudStream over the first
three years, investors can expect to see a return on equity of 78.3 percent in year three.
($300,000)
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Quarter
Cash Flow
Figure 9

26. 24
It is assumed that SudStream products will be introduced to Target stores through a
pilot program starting first with 30 stores and expanding then to 100 stores after six
months to one year. By year three, it is expected that SudStream products will be present
in half of all U.S. Target locations. Additionally, it is being assumed that the SudSink and
SudShower will have a relatively stable unit cost of $10.10.
Figure 10
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
QUARTER
Break-even Analysis
Total Income Total Expenses

27. 25
Funding Plan
SudStream will require $177,863 to cover startup costs and $738,616 to cover first
and second year losses (Table 7). In exchange for equity (Figure 11), SudStream plans to
secure $738,616 from the owners, friends and family, and angel investors (Table 8). The
four owners will contribute $5,000 each, totaling $20,000 of initial funds. SudStream also
plans on acquiring $50,000 from friends and family. To raise additional capital, SudStream
will contact angel investors through AngelList, a popular angel investor matchmaking
website that one of our founders previously worked for.
After consulting with Charlie Wehr, Vice President Relationship Manager at Bridge
Bank, to discuss debt financing, SudStream was advised to pursue a Small Business
Administration (SBA) loan. By utilizing an SBA loan, SudStream will be able to cover
start-up costs ($177,863) at a low interest rate of 2.25 percent. An SBA loan provides a low-
risk opportunity for SudStream to secure the remaining necessary funds to begin
operations.
Table 7 - Uses Amount
Pre-operating Salaries and Wages $130,000
Operating Expenses $2,736
Working Capital $29,000
Fixed Assets $16,127
1st and 2nd Year Losses $738,616
Total: $916,479
Table 8 - Sources Amount
Owners $20,000
Friends and Family $50,000
Angel Investors $668,616
SBA Loan $177,863
Total: $916,479
Figure 11
2.0%
26.9%
71.1%
Equity Distribution
Family and Friends
Investors
Owners

28. 26
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31. 29
Appendix - Income Statements
Year 1
Q1 Q2 Q3 Q4 Total
Total Income 40,392 74,412 130,680 231,444 476,928
Total Cost of Sales 14,574 26,846 47,147 83,507 172,074
Gross Margin 25,818 47,566 83,533 147,937 304,854
Total Salaries and Wages 141,583 141,583 141,583 141,583 566,331
Total Fixed Expenses 84,684 84,684 12,599 12,565 338,737
Total Other Expenses 12,665 12,632 12,599 12,565 50,462
Net Income (213,115) (191,333) (155,333) (90,895) (650,677)
Year 2
Q1 Q2 Q3 Q4 Total
Total Income 332,208 432,972 533,736 634,500 1,933,416
Total Cost of Sales 119,867 156,227 533,736 228,947 697,627
Gross Margin 212,341 276,745 341,149 405,553 1,235,789
Total Salaries and Wages 165,124 160,484 160,484 160,484 646,575
Total Fixed Expenses 93,153 93,153 93,153 93,153 372,611
Total Other Expenses 12,532 12,498 24,424 42,501 91,955
Net Income (58,468) 10,611 63,089 109,416 124,648
Year 3
Q1 Q2 Q3 Q4 Total
Total Income 735,264 836,028 936,792 1,037,556 3,545,640
Total Cost of Sales 265,307 301,667 338,027 374,387 1,279,387
Gross Margin 469,957 534,361 338,027 663,169 2,266,253
Total Salaries and Wages 209,047 209,047 209,047 209,047 836,189
Total Fixed Expenses 102,468 102,468 102,468 102,468 409,872
Total Other Expenses 12,532 12,498 24,424 42,501 252,231
Net Income 114,664 166,214 217,766 269,317 767,960

32. 30
Appendix – Cash Flow Statements
Year 1
Q1 Q2 Q3 Q4
Cash Flow (212,832) (189,197) (157,970) (95,935)
Year 2
Q1 Q2 Q3 Q4
Cash Flow (63,541) 5,503 57,947 104,240
Year 3
Q1 Q2 Q3 Q4
Cash Flow 109,453 160,969 212,485 264,002

33. 31
Appendix – Balance Sheet
End of Year
One
End of Year
Two
End of Year
Three
Assets
Current Assets
Cash 111,681 215,830 962,740
Accounts Receivable 44,172 111,348 178,524
Inventory 2,300 2,300 2,300
Prepaid Expenses 86,957 43,479 0
Total Current Assets 245,111 372,957 1,143,564
Fixed Assets
Furniture and Fixtures 7,877 7,877 7,877
Vehicles 8,250 8,250 8,250
Total Fixed Assets 16,127 16,127 16,127
Less: Accumulated
Depreciation 3,225 6,451 9,676
Total Assets 258,012 382,633 1,150,014
Liabilities and Owner's Equity
Liabilities
Accounts Payable 15,938 40,178 64,418
Loan Payable 154,135 129,868 105,049
Total Liabilities 170,073 170,046 169,466
Owner's Equity
Common Stock 738,616 738,616 738,616
Retained Earnings (650,677) (526,028) 241,932
Total Owner's Equity 87,939 212,588 980,548
Total Liabilities and Owner's Equity 258,012 382,633 1,150,014

34. 32

35. 33

36. 34

37. 35