H20 Industries, Inc. (H20 Industries), provides portable ion exchange tanks. This is the process used to purify water for industrial use. H20 Industries will exploit the market need for segregated, portable resin regeneration. The company will concentrate its marketing strategies to offer segregated renewal services to untapped customers who need high quality regeneration for their deionized, (DI), water treatment facilities. H20 Industries will use the Newark, California facility. This facility is already in limited production. Full production will begin in September. Sales are expected to grow gradually to capacity by the third year. The first year saw very healthy gross revenues and then increase in the second year.
1.1 Objectives
The primary objectives are:
- H20 Industries’s capabilities in providing segregated regenerate is being used to segment the market. The goal of the project is to have monthly sales of 1,710 lb of segregated resin before the end of the initial year.
- To establish a network of 15 water service companies that are knowledgeable and efficient to represent H20 Industries outside of direct sales.
- To set up a bulk regenerative facility capable of storing 40 cubic feet daily. Then, to sell its full capacity in large portable exchange services market by its own sales force and through a dealer system.
1.2 Mission
H20 Industries’ mission is to provide niche products to specific industry sectors that are not served by large pur water suppliers. It is possible to segregate a customer’s H20 Industries resin and then re-generate it on a portable basis to hospital dialysis unit. This is an excellent example for a niche product that emphasizes quality and service and which can be purchased at a premium.
1.3 Keys To Success
H20 Industries’ #1 keys to success include:
- Excellent quality control at the factory. Customers for high purity water business have a very low tolerance threshold for flaws.
- Rapid response. H20 Industries customers don’t consider water cost a significant factor in their overall costs. However, poor or slow servicing can lead to costly shut downs.
- High-profile allegiances. The success of a dealer network of service-oriented companies is key to overall company success.