Implementation
Given the positive trends in the market for mobile phones and in the market for wireless messaging, we plan to increase our revenue by 38% for a total of 78,855,803 in the current year, growing to $150,000,000 by 2008, by increasing our marketing expenses of $10,000,000, which is about 13 % of sales. 50% of the marketing expenses are represented by operating expenses, which correspond to about 6% of the projected revenue in 2006.
The plan assumes a relatively high initial investment in product development, which involves the addition of new features and the enhancements in terms of compatibility with different platforms and in terms of security and reliability. The expenses in advertising and partnerships even thought the 6.4% figure we project for the first year is quite low compare to projected revenue, are going to decrease further as the reputation of the company builds up.
We think that the key to succeed in the market for wireless messaging is not to create another platform. Therefore, Good is focusing on wireless data synchronization and communications, working with the platforms in the market without forcing companies to adopt a new platform to use Good's applications. Partnerships with US and international carriers are the key to beat the rivals. Under that perspective, an initial higher investment in long-term partnerships, sponsorships, travels and employees' training is perfectly justifiable. The acquisition of technology and engineers from JP Mobile to tap into the more than 118 million Lotus users worldwide (The GoodLink Lotus Domino Edition that will be available in the first half of 2006) and the stipulation of long-term partnerships are fixed costs for the company and represent a major portion of the total cost. We anticip ...