practices (Muslims & Hindus) or habitual
Thor Bidet will
routines associated with the cultures of
their home countries (India,
. Furthermore, Thor Bidet Inc.
team consist of five individuals: two from
India and one from Pakistan, Kosovo, and
the United States. Each brings with them a
diverse breadth of cultural and experiential
learnings being from unique backgrounds.
All members are business students, with
two of them specializing in
entrepreneurship and marketing, one in
entrepreneurship and sustainability, one in
supply chain analytics and one in finance &
analytics.
The concept was discovered when the team
had to come up with a potential viable
business idea for their capstone project.
The founding members explored their
personal pains they faced, and honed in to
the concept at hand when they realized
that four of them face the same pain, being
an international student in the United
States.
According to PewResearch, there are
approximately 2.5 billion people in the
world, for whom the norm is to use a bidet
or other water source to cleanse after a
visit to the restroom. The reason for using
water is both cultural and religious. These
individuals face tremendous discomfort
when they travel to parts of the world
where the norm is to use toilet paper, since
the majority of bathrooms in the US are not
equipped with bidet fixtures for cleaning
with water. There is a niche market of
approximately 1.5 million students that are
in the US from these regions that face this
issue with an additional influx of
approximately 350,000 new students each
year (IIE). These students live in rented
properties or college dorms where they
cannot legally customize the bathroom
faucets to their liking and thus find
themselves in a conundrum.
alleviate this pain for the individual, by
providing a semi-portable bidet which can
be filled using a standard tap in a
bathroom. By conducting primary market
research the company has identified
convenience of use, high pressure, water
quantity, and price as the critical factors.
Thor bidet exceeds its competition in each
of these aspects and has been engineered
to spray with enough pressure that will
enable the user to complete the cleansing
process satisfactorily and without unfitting
use of their hands. The Thor Bidet also
provides the customer feeling completely
hygienic and, therefore, more confident.
1.1 THE PRODUCT
The Thor Bidet is a semi-portable bidet
system with a handheld sprayer that
provides highly pressurized water through
a flat fan jet nozzle that will optimize the
use of water by creating a triangular spray
pattern mimicking the jet sprays used in a
carwash. This will make less water achieve
the same cleanliness results as other
nozzles that spray out streams. The
purpose of the bidet is to give the
consumer the feeling of being clean and
hygienic. Thus, they can go about their
days in complete comfort and with the
utmost confidence.
The primary user for the Thor Bidet are
individuals from the 55 countries listed in
Exhibit B, where it is customary to clean
with water due to religious practices
(Muslims & Hindus) or habitual routines
associated with the cultures of their home
countries (India, Europe, parts of Asia,
etc.). Using toilet paper as an alternative
does not give this market the same
satisfaction as they get when they use
water. When these individuals travel to
areas where the norm is to use toilet paper
they find themselves in a predicament and
Page | 1
experience discomfort. Our target market
is these individuals/students that have
recently arrived and are feeling the pain
of the change in cultural norms. Currently
Thor Bidet Inc. is focusing towards two
bidet systems; the Thor Bidet and the
Poseidon Bidet. The Thor Bidet is designed
to be used in home toilets as a semi-
portable bidet, with a handheld sprayer
system, while the Poseidon Bidet will be
compact and portable, which individuals
can conveniently carry in their school
bags, briefcases, or large handbags
whenever they leave home.
1.2 ENTRY & GROWTH STRATEGY
For the first two years, Thor Bidet Inc. has
chosen a market penetration strategy that
is based on targeting specific university
student bodies, due to the large
concentration of identified customers
(Exhibit B). This strategy is two pronged
where the company will market directly to
the consumer through online channels
and also initiate a B2B channel with the
international student centers of these
select universities.
Thor Bidet Inc. plans to first target the
niche market of students coming into the
US from these countries. As a new body of
international students come to the US
each year, demand increases each year
as well. As students tend to join their
national or religious student unions, these
organizations can be used to target
potential customers. As the Thor Bidet has
high emotional value, word of mouth
plays a crucial role in sales conversions,
as new students tend to ask the older
students for guidance.
For the B2B channel, Thor Bidet Inc. is
confident that the selected institutions will
be inclined to bulk purchase bidets to give
to their incoming batch of international
students, easing the students transition
into the US. The companys research
shows that the universities are actively
involved in trying to make the transition
of international students as comfortable
and as smooth as possible.
In the third year, the brand would have
established a reasonable presence
amongst its customers; Therefore, the
company plans to expand its marketing
efforts to all international students in the
US who fit Thor Bidets segment and
concurrently will be launching its second
product called the Poseidon Bidet.
Thor Bidet Inc.s plan is to focus towards a
steady growth, rather than an explosive,
exponential one. This will help Thor Bidet
Inc. create a strong brand presence and
thus become synonymous with the
solution for the target market. This brand
recognition should act as a barrier to
entry while Thor Bidet Inc. keeps on
innovating and optimizing its products in
correlation with customer needs.
2 INDUSTRY ANALYSIS
2.1 SUMMARY
NAICS Code for the portable bidet industry
is: 322291 Toilet paper manufacturing.
There is currently no industry for this
particular product, therefore Thor Bidet
will have to create market space by
competing with toilet paper. Despite being
a completely different product, Thor Bidet
serves the same purpose and will
therefore directly compete as an
alternative. This particular market within
the industry is premature with very few
options available in United States, but the
industry as a whole is large and mature.
2|Page
Despite an average of 350,000 students
coming in from target countries that use
bidet as part of their culture, there is a
lack of a bidets for them as most buildings
in United States do not include bidets in
their infrastructure. The industry is
therefore constructed mainly by paper
towels and other portable bidets that
include plastic air-pumped or battery-
functioned portable bidets, which are
essentially the only two alternatives
available. In addition, neither of these
options meet the demands of its target
market primarily due to a lack of water
pressure.
Culturally, most of the rest of the world
use bidets. However, Muslims and Hindus
are the main protagonists, as it is
religiously required and therefore a
necessity. In the US, the only alternative
they can find is toilet paper, hence the
industry, with portable bidets not even
having its own industry.
2.2 SIZE & GROWTH RATE
The toilet paper industry is large and
mature, with 317.77 million people
reported to use toilet paper in US, at an
average of $118.98 per consumer, making
it a $37.8 billion industry. However, 3.3%
of the population in United States is
considered to be Muslim or Hindu 3.
Therefore, the relevant share of the
industry would be worth about $1.25
billion. Furthermore, there was a 20.6%
growth of this industry between 2007 and
2015. (Statista)
In terms of Thor Bidet Inc.s strategy,
there is a spacious opportunity due to
most people using a product that is well
perceived to be less effective and
hygienic, especially for people of Muslim
or Hindu religion. That part of the industry
is therefore in its early stage.
2.3 STRUCTURE
The portable bidet part of the industry,
specifically, leaves a lot to be desired.
There are currently three main players:
Bio Bidet Palm Travel, Brondell GoSpa, and
Blue Bidet. According to a market
research survey conducted for this
product, none of the current alternatives
solve the needs of the current target
market due to lack of pressure and
convenience. As such, neither of the
current players have a strong position,
with most of the target market currently
using standard water bottles to fulfill their
needs.
Market research also showed that price is
not the main factor. Instead, convenience
and pressure of the water supply is
considered key. As such, it is important to
ensure that the product completely meets
the demands of the target market in order
to capture it.
However, the products purpose sets it as
a direct competitor with toilet paper
products. The two products will be fighting
for the same clients, making them
substitute products.
The toilet paper industry is substantially
concentrated, with Kimberly-Clark, Procter
& Gamble, Georgia-Pacific, Svenska
Cellulosa Aktiebolaget and other private
label manufactures all capturing a
significant share of the market
(IBISWorld).
2.4 KEY TRENDS
The portable bidet market is a new trend
in the US. The development of the perfect
product would position the company in a
strong position to maintain and grow,
especially as the bidet industry is also
3|Page
expected to grow within the US,
considering it is already mature in most of
the world. Additionally, the percentage of
Muslim and Hindu students coming to
study in United States is also increasing at
an average of 9% annually.
The U.S. Census Bureau shows that other
key trends in the portable bidet and toilet
paper markets would include the
increasing price of plastic and wood,
respectively, and the forecasted 1.6%
compound growth of per capita disposable
income between 2012 and 2017.
The key factors driving the growth of the
industry include changing lifestyles, rising
healthcare expenditures, increasing
population apart from steady rise in global
GNI and low penetration of substitutes for
toilet paper and portable bidets.
2.5 KEY SUCCESS FACTORS
Changing lifestyles, the growing
population, rising health expenses and a
low penetration of substitutes for toilet
paper and portable bidets are among the
key success factors affecting this industry.
Additionally, establishment of brand
names is also a key factor for the
products success in this industry.
Although there are largely reputed brands
already in the toilet paper industry, the
portable bidet market lacks a widely
considered go-to product. As such, it
would be crucial to establish a sustainable
brand that is associated with customer
service focus, hygiene, performance, and
reliability.
3 MARKET RESEARCH
& ANALYSIS
3.1 RELEVANT MARKET &
CUSTOMER OVERVIEW
Considering that the portable bidet is
majorly a cultural must-have for specific
regions and religions, the relevant target
market for the Thor Bidet will be narrow
and specific. It will be targeting early
adopters that are coming to study in
United States from countries that practice
the Hindu and Islam religions.
A typical 18-35-year-old Hindi or Muslim
student coming to study in United States
would be the perfect candidate, due to
the current culture in the US, making it
nearly impossible to find bidets in public
restrooms. In addition, these students
only come to United States to study
temporarily, therefore they cannot install
permanent bidets in their rented houses.
Thor Bidet Inc. will specifically target
upcoming international students, as
market research found that current
students in the US have already
established their means of hygiene or
adapted.
In terms of demographics, the only real
criteria will mostly be the cultural and
religious background of the students, as it
is practically a necessity for people
coming from certain religions and regions
to use water when it comes to restroom
hygiene.
3.2 MARKET SIZE & TRENDS
The market size is attractive, considering
that a total of 1,043,839 students have
entered United States from countries of
Hindi or Muslim religious background in
4|Page
2016, with 37% of them being from 3.3 BUYER BEHAVIOR
countries that befit Thor Bidet Inc.s target
market.

Considering that the market research in

Exhibit A shows 57% of the students
coming from target countries are not
satisfied with their current method of
cleaning, and 80% of them claim that they
are interested in a high pressure water
bidet that provides effective cleaning
without the use of hands, the market size
that is interested to buy a product like the
The majority of students researched, that
Thor Bidet goes as high as 293,527
fulfil the target segment criteria, claimed
students (see Exhibit B).
to have adapted to using toilet paper as
part of their stay in United States. As
The most important trend is the average such, Thor Bidet Inc. must approach
9% increase of the number of targeted students before they adapt,
international students coming to United more specifically as soon as they arrive in
States. If we look at the international United States.
students coming from Hindi and Muslim
backgrounds alone, there has been an
Considering the privacy effect of the Thor
increase of 53% during the last 5 years,
Bidet, buyer behavior will only be
with 2016 lately recording an 11%
dependent upon personal choices of each
increase from the previous year. In
person. Many of them will be hesitant to
accordance to the last 5 years average,
even discuss their choices or use of this
this market is expected to grow at an
product with their peers, therefore it is
annual rate of 9% for the upcoming years.
imperative that the company targets
them at personalized stores such as
Another positive trend can be found in the Indian Bazaar. Most new international
size of the Hindu and Muslim population students tend to be hesitant of the large,
currently residing in US already, which American markets at first, preferring to
corresponds to 3.3 million Muslims and stick to their cultural practices and
2.3 million Hindus according to products, visiting imported foods shops
PewResearch3, projected to grow at a rate that are small and convenient for many of
of 2.1% and 1.2%, respectively. them.
Additionally, the overall 5.6 million
population with such background is
In order to determine the buyer behavior
considered as a target segment for the
of this particular target market, shopping
Poseidon Bidet, Thor Bidet Inc.s second
habits must be observed, especially in
product planned to be launched in year 3.
terms of products and locations. To save
on large amounts of capital required to
build inventory needed to supply the large
markets, Thor Bidet Inc. will be targeting
small imported foods shops, major
airports, and online ads specified at

5|Page
upcoming international students from created by the hand squeeze force. The
targeted countries. positives is that its low cost and has high
portability. The disadvantage is that it
does not remove the need for the use of
3.4 MARKET SEGMENTATION & ones hand and thus does not ensure
TARGETING convenience nor complete hygiene.
Additionally, the water storage of this unit
Market segmentation will be strict and is quite small and thus its usually not
narrow, considering that this product is adequate for a wash and leaves the user
only viable for people with a specific dissatisfied.
background, that are to live in US.
Students with Hindi and Islamic
backgrounds will be the primary niche,
alongside other countries that use bidets
Bio Bidet Electric:
or at least water culturally and
traditionally. There are also other
segments that might be worth small Like the Blue Bidet, this product is quite
percentages of the total sales as this similar in its size and portability but the
product might fulfill a need that they major difference is the fact that it has an
didnt recognize before. electric motor that runs on battery and
the pump push water out. However, due
to the small size of the pump and battery,
Thor Bidets target market will be
the pressure is again lacking and the user
incoming international students that are
has to use their hands to complete the
not used to restrooms without a bidet.
process. Further, the water storage is
They will be 18-35 years old, will be
small and inadequate. Finally, this unit is
looking at trends and online social media,
not an affordable option for the typical
will be reluctant to adapt to the restroom
college student.
culture in United States, and will have the
initiative to change for a reasonable price.
Porta Bidet Pro:

3.5 COMPETITION & COMPETITIVE

Though this product is electric, it is large
EDGES and lacks portability. It has a large water
tank and can produce better water
There a few competitors in the market, pressure. However, due to its bulky size
but none can be considered as the and high cost, this product is not for the
dominating player in the market as they student target market that Thor Bidet Inc.
are all lacking at least one key attribute will be targeting.
that the target market has identified as a Blue
Thor Biobi Generi
must-have for them. Attribu Bidet
Bidet
det
PortaB
c
(Hand idet
tes (Our (Elect Mug(L
Pressuri Pro
Product) ric) ota)
sed)
Blue Bidet:
Qualtty High Med High High Low
Price $31 $15 $50 $75 $2
This product is the cheapest bidet on the Deliver
Online &
Speciality Grocery
market and the one with the least amount y Stores Online Online Online Stores
of pressure being created as well. This is Warran
ties 1 Year 1 Month 1 year 1 year None
due to the fact that the pressure is Water 2 Litre 500 Ml 500 1 Litre 1 Litre

6|Page
Capacit
y Ml
Portabi
lity Medium High High Low High
Pressu Very
re High Low Low Medium Low
3.6 ESTIMATED MARKET SHARE
Identified international students coming
from countries where water is the medium
of cleansing are the primary target
market. During the first year, Thor Bidet
Inc. will be only targeting the 25
universities with the largest share of
students from target countries, which
translates to 52,894 students during
2016. The company expects to penetrate
60% of this market, thus equaling a
market capture of 31,736 students during
the first year.
During years 2 and 3, Thor Bidet Inc. will
expand to all incoming students from
target countries and all students pursuing
studies in the US, respectively. The target
market by the third year is expected to be
approximately 2,016,184 students, 60% of
which are expected to come across the
Thor Bidet at least once during their stay.
3.7 ONGOING MARKET
EVALUATION
Due to modest initial capital investment
requirements, Thor Bidet will start with
only a home product. There are several
factors that, according to research, have
been found as important to the target
market: convenience, pressure strength,
water capacity, and size. Unfortunately,
due to the unfeasibility of providing each
of the demands, Thor Bidet Inc. must
sacrifice certain features in order to fulfil
the most important ones, which,
according to market research, are
convenience and pressure strength.
Therefore, the Thor Bidet will primarily be
used at home and will not be geared
toward portability. However, the
companys research and assessment will
be immediately shifted towards the
launching of the second product, the
Poseidon Bidet, after careful evaluation of
what features the target market values
the most. As part of an ongoing Research
& Development process, Thor Bidet Inc.
will be evaluating the exact features and
possibilities of a new, smaller and
portable product that customers will be
able to take with them to school, work,
etc. Another objective of the Research &
Development will be to determine where
the company can save in terms of cost
and size and which features are most
important to potential customers.
4 ECONOMICS OF
BUSINESS
4.1 REVENUE DRIVERS &
MARGINS
The Thor Bidet will be the primary
revenue driver for the first two years and
will generate 100% of the companys
revenue. In the third year, the Poseidon
bidet will be introduced and both products
will contribute towards the revenues of
Thor Bidet Inc.
Thor & Poseidon bidets will be retailed at
$36.99 and $17.99. However, the revenue
recognition will occur after taking out the
retailer's margins of 15% for Amazon and
30% for specialty retail stores and
institutional sales; As the Thor Bidets
revenue recognition price will be $31.44 &
$25.89, the Poseidon Bidets revenue
recognition price will be $15.29 & $12.59.
The cost of the Thor Bidet is $6.71, while
the Poseidon bidet will be manufactured
at a cost of $4.21. The Thor Bidet has a
contribution margin of 79% on online
7|Page
sales and a 74% margin on institutional 4.4 START-UP COSTS
sales/retail store sales; The Poseidon Bidet
has a contribution margin of 72% on
online sales and 67% on institutional
sales/retail store sales. The company
expects to achieve sales volume of 31,736
units of the Thor Bidet in the first year and
grow it to 65,457 units by the end of the
second year.

4.2 FIXED & VARIABLE COSTS

Thor Bidet Inc.s cost structure is primarily
made up of variable costs. These variable
costs include manufacturing, packaging
and shipping from China, product
warranty cost and Amazon storage and
fulfillment cost. The companys fixed costs 4.5 BREAKEVEN CALCULATION
consist of office rent, utilities, salaries and
administrative cost; employee, business
and renters insurance; marketing &
advertising; and research & development.
The breakdown of the fixed costs
calculations and percentages of total
costs can be found in Exhibit E.

4.3 OPERATING LEVERAGE &

IMPLICATIONS
Initially the business will be relatively
highly leveraged because of high initial
costs. As the business starts making
sales, the variable costs will start
increasing as per the product sales while
the fixed costs will be minimal/low. Thus,
the cost structure is variable because
Thor Bidet Inc.s core competency is in
identifying the opportunity, directing the
designing of the products, marketing, and
co-ordination with the vendors and
customers. The company has also
outsourced its manufacturing and
warehousing.
Breakeven (Units)= (Fixed Costs + Startup
Costs)/ Weighted Average Contribution
Margin
Breakeven (Dollars) = Breakeven (Units) *
Weighted Average Revenue Recognition
Cost
4.6 OVERALL ECONOMIC MODEL
Thor Bidet Inc.s economic model (Exhibit
E) will operate on high margins and high
volume. There are two revenue drivers,
namely the Thor Bidet and the Poseidon
Bidet. Since the company has outsourced
the manufacturing to China, the cost
structure of Thor Bidet Inc. is variable and
eventually the company will operate with
low operating leverage after sales pick up.
This type of model is less risky due to the
low fixed cost structure of the company.

8|Page
Overall, this economic model is strong and
attractive since high profits will be
generated through high margins and high
sales volumes.
4.7 PROFIT DURABILITY
The profit stream will be vulnerable during
the first two years since Thor Bidet Inc. is
selling only a single product. However,
having a complete solution to the
intensity of pain faced by the many
customers and the launch of the Poseidon
Bidet in the third year will make the profit
stream more solid. The market lead time
will be less since Thor Bidet Inc. is
collaborating with Amazon. This will also
increase the customer service levels.
So, the overall profit durability will be
strong. This is also supported by the fact
that there is less competitive risk as
bidets are not the primary product used
for the cleansing process in the US.
5 MARKETING PLAN
5.1 OVERALL MARKETING
STRATEGY
Thor Bidet Inc.s overall marketing goal is
to gain market share of international
college students and college institutions,
retaining customer loyalty to Thor Bidet
Inc. in future bidet purchases. Thor Bidet
Inc.s goal is to communicate the
message that its product offers superior
quality, at a competitive price and
provides customers with a strong sense of
relief, satisfaction, and confidence.
Thor Bidet Inc. proposes to promote the
product through the following means:
Thor Bidet Inc.s company website, which
advertises the product(s) and informs
customers how to use the product(s) and
where the product(s) can be purchased;
Facebook, Instagram, Snapchat, and
YouTube, which are the digital platforms
that Thor Bidet Inc. will use for advertising
purposes. Thor Bidet Inc. will be engaging
the services of Happa Studios (a design
studio based in Lahore, Pakistan) to
design the brands image and create the
required branding materials that will be
used to create a uniform brand presence.
Further, Thor Bidet Inc. will utilize the
online social media content management
platform, $99 Social, to ensure a
uniform social media presence; Sales
representatives who are responsible for
marketing and selling the product to
select college institutions; Select retail
stores that focus on selling international
products originating from the home
countries of the target market; and a PR
campaign in correlation with the Hindu
holiday, Holi.
Thor Bidet Inc. will be sold on Amazon and
in retail stores. However, Amazon will be
responsible for fulfilling the orders of
individual online customers and
institutional/wholesale sales. As the
online company website offers information
about the product and the most
convenient place to purchase the product
based on the customers location, orders
cannot be placed on the website.
Additionally, wholesale orders from stores
and college institutions will be placed
through sales representatives, who will
provide them with a promo code(s) that
will be used during checkout on Amazon
in order to fulfill the
institutional/wholesale order(s). The retail
price of the Thor Bidet is $36.99, while the
Poseidon
ertisement). According to market
research, the cost per click is $0.36. As
Thor Bidet Inc.s primary market research
shows, 75% of potential customers are
interested in a high pressure semi-
portable bidet, 58% are dissatisfied with
the current alternative, and 62% are
willing to pay $31 or more. With a
9|Page
discount factor of 20% in the first two
years and 70% in year three onwards (due
to increased brand awareness), Thor Bidet
Inc. calculated the conversion rate of
Facebook advertisements for the Thor
Bidet to be 5% in years one and two and
19% in year three onwards. With slight
changes to the formula, Thor Bidet Inc.
calculated the conversion rate for the
Poseidon Bidet to be 20% (Exhibit C).
Thor Bidet Inc. is also going to launch a
YouTube video in year 1 in the months of
March, April, and May 2017 after a PR
event at a university which is to be
decided. This event will take place in
March and will coincide with the Hindu
festival called Holi, also known as the
festival of colors. Though a religious
holiday typically celebrated in India and
Nepal, Holi is now celebrated all over the
world by countless peoples of different
religions. It just so happens that those
who traditionally celebrate the holiday are
in Thor Bidet Inc.s target market.
Nevertheless, during this festival, it is
tradition to smear one another with
colorful paint. Thor Bidet Inc. plans to
sponsor this event and provide Thor
Bidets to help clean the paint off of people
after the celebration. A video
advertisement will be made from the
event, not only showing off the product,
but also showing how different cultures
can be brought together in unity. This
advertisement will be displayed on the
online website, Facebook, Instagram,
Snapchat and YouTube. As this PR
campaign has the potential to go viral,
Thor Bidet Inc. can reach countless
people. Thor Bidet Inc. will expand this
campaign to more colleges in the coming
years.
5.2 PUBLICITY
Thor Bidet Inc.s Holi advertisement
campaign with the message of bringing
people together has the potential to offer
the company vast publicity, not only
through a viral video, but also on a
smaller scale, for example around
colleges, in school and city newspapers,
and brief segments on local news
channels. Thor Bidet Inc. will also place
advertisements in school newspapers in
another attempt to meet its target
market. Thor Bidet will expand its Holi
campaign to more universities each year.
5.3 WARRANTY & GUARANTEE
POLICY
Thor Bidet Inc. offers a 30-day guarantee
for both products, in which customers can
send the product back for a full refund
within 30 days if they are unsatisfied.
Thor Bidet also offers a 1-year warranty,
which covers defected products or
products that break within the proper line
of use.
5.4 DISTRIBUTION
Thor Bidet Inc. will be distributed through
Amazon as well as through a select group
of specialty stores. However, Amazon will
fulfill all orders; both from individual
customers, as well as
institutional/wholesale orders. In the case
of institutional sales, the sales
representative will create a promo code
for the specific university to pass out to
their students, in which they will use to
order the bidet on Amazon. In the case of
wholesale orders from retail stores, again,
the sales representative will provide the
specific store with a promo code in which
the store will use when it places the order
on Amazon. Amazon will allow Thor Bidet
Inc. to target a mass market of people all
over the US, while the retail locations will
allow for a street presence in areas that
are highly populated with the target
segments. Furthermore, distribution
through college institutions will not only
reach the target market, but will also
increase brand awareness in areas that
are densely populated with the target
10 | P a g e
market and can help Thor Bidet Inc. gain
new customers.
6 DESIGN &
DEVELOPMENT PLAN
6.1 DEVELOPMENT STATUS &
TASKS
Thor Bidet Inc. is currently in
possession of its first proof of concept
prototype for the semi-portable Thor
Bidet. The prototype will be shared
with the manufacturing partners in
China and the design will be slightly
modified with their input to make
mass production most efficient, cost
effective, and also include a switch
valve, where by the user will be able
to use pressurized air to dry
themselves and thus taking out the
need to use toilet paper to dry oneself.
The product will be ready to
manufacture in June 2017.
Products Thor
Final Manufacturing Bidet
1 month
Design Process
Testing Process for first 20 days
batch of mass
produced
Ready products
to Mass June 17
Produce by
6.2 DIFFICULTIES & RISKS
The final pre-mass production
development & testing process has
been given a time of two months as
the company is committed to deliver a
product in the market that is not
riddled with issues. Since the initial
product line has only one product, the
risk is high as the brands image is
completely based on this one product
and thus we have focused towards
making sure that the
storage and order fulfillment. Also,
Amazon is an extremely popular e-
commerce portal in the college student
market.
6.3 GEOGRAPHIC LOCATION
Thor Bidet Inc.s planned geographic
office location will be in Syracuse, NY. This
has been chosen based on the proximity
to 10 out of the 25 institutions that attract
the maximum number of international
students. Doing so will help Thor Bidet
Inc. reach out easily and build a brand in a
short span of time.
6.4 CAPACITY LEVELS &
INVENTORY MANAGEMENT
The inventory levels are based on the
sales estimates. Thor Bidet Inc. plans to
operate using Complete Order Point
Model:
Order point = Demand during lead time +
Safety Stock
The essence of this approach is when an
item falls to a certain stock level or
quantity, an order is released to replenish
inventory on the expected stock-out date.
This model has been adopted since
customer demand and replenishment lead
times are likely to show random variation.
Also, this is advantageous as this model
will save costs and help Thor Bidet to
benefit since the customer demand
follows a seasonal trend.
7 MANAGEMENT TEAM
7.1 KEY PERSONNEL &
RESPONSIBILITIES
The company will initially consist of the 5
founders sharing executive roles and
three advisory board members, each
contributing on a specific major
11 | P a g e
department in accordance with their
expertise (Exhibit G). The internal roles to
be filled include:
Chief Executive Officer: Muhammad
Khan
Mr. Khan is an MBA professional and
Fulbright scholar who has founded
Solenergi Pvt. Ltd. A solar street lighting
company, in Pakistan. Mr. Khan was part
of Solenergi as Founder & Business Lead
for five years, having already worked in
managerial and consulting positions for
the previous three years.
As CEO, Mr. Khan will be responsible for
the day-to-day management decisions
and for implementing the companys long
and short term plans, in accordance with
the executive management.
Chief Financial Officer: Mangirish
Rayadhyaksha
Mr. Rayadhyaksha is an MBA professional
with 4+ years of experience in Investment
Banking and Equity Research and an
exceptional record of delivering cost
effective, high performance financial
solutions to meet challenging business
demands.
As CFO, Mr. Rayadhyaksha will be
responsible for the Financial and
managerial accounting, as well as budget
sections of the company.
Chief Operational Officer: Egzon Halili
Mr. Halili is an MBA professional who has
founded Inovalty, a home textile
manufacturing company in Kosovo. Mr.
Halili has been part of Inovalty as
Managing Partner for over 4 years, as part
of a 6+ years professional career in
business development, consulting and
operations.
As COO, Mr. Halili will be responsible for
the administration, human resources,
operations and legal divisions of the
company.
Chief Innovation Officer: Kartik Kakria
Mr. Kakria is an MBA professional with
academic excellence in Technology
Electronics and Communication. He is also
a Research Consultant at EXPORTNY
program and does intensive market
research for finding attractive
international attractive markets, helping
to prioritize efforts to penetrate each
market and tackle the legal, cultural,
logistical and regulatory issues.
As CIO, Mr. Kakria will be responsible for
the research and product development
departments of the company.
Simultaneously, he is connected with
supply chain professionals, such as Burak
Kazaz and Patrick Penfield, who have
years of supply chain experience and
have done valuable research, including
writing popular supply chain papers.
Chief Marketing Officer: Nicholas Piroli
Mr. Piroli is an MBA professional with
expertise in business and marketing. Mr.
Pirolis experience includes managing
several projects and tournaments,
including Lacrosse camps, both in terms
of operations and marketing.
12 | P a g e
As CMO, Mr. Piroli will be responsible for
advertisement, marketing plan, and sales
of the product.
Sales Representatives: Two full-time
employees during Year 1 and Year 2, four
full-time employees in Year 3
Mr. Piroli will also be supervising the two
sales representatives that are responsible
for completing deals with target
institutions and helping market the brand
and its Thor Bidet product initially. Once
the second product, the Poseidon Bidet is
launched, Mr. Piroli will be supervising the
additional two sales representatives that
the company plans to hire.
7.2 MANAGEMENT SALARIES &
OWNERSHIP
Each of the five founders have agreed to
begin with a 20% ownership of the
company. However, as equity is given in
return for investments or other occasions
as agreed by the majority of the founders,
the ownership percentage will shrink
equally for each of the founders, in
accordance with the amount of equity
given.
Modest annual compensation of $40,000
will be established for all employees of
the company, including the key
executives and sales representatives, until
the point where the company has broken
even and is sustainably profitable, at
which point there will be a re-evaluation
of the salaries and bonuses toward an
increase as well as having the dividends
paid at the end of the year after breaking
even. There shall be a partnership
agreement that will establish the
compensation, percentage increase of
salaries, and dividends percentage
including stock options if it is decided for
the company to go public in the future.
7.3 BOARD OF ADVISORS
The founders have selected a diverse and
established group composing of experts in
what they have identifies as the major
fields to bring the concept and company
forward.
Business Advisor: Ken Walsleben
Mr. Walsleben boasts 30+ years in
managerial and executive positions,
mostly in the business world. Lately, Mr.
Walsleben has been working as a
professor of Entrepreneurial Practice,
making him a perfect addition that will
help guide the team on how to approach
the launch of the product as well as
developing the business side of the
company towards reaching long and short
term sales goals.
Operations Advisor: Raza Khan
Mr. Khan has been working in managerial
and executive operations positions for
over 16 years, most recently serving as
Chief Operating Officer of Taavun Ltd in
Pakistan. Mr. Khan will be using his
experience and expertise in the
operational side of the business to guide
the team towards reaching operational
and supply chain efficiency.
Product Development Advisor: Harini
Tatnis
Ms. Tatnis is a certified Scrum Master and
certified Scrum Product Owner with
substantial experience in leading offshore
and onshore development teams,
including quality assurance lead
expertise. Ms. Tatnis will be advising the
team on product development goals,
strategies, and helping with the planned
outsourcing of the product manufacturing
to China.
13 | P a g e
In addition to the three advisory board
members, the team will also be
establishing a professional relationship
with a legal advisor, who will be giving
guidance with regards to the legal issues,
trademark, copyright, and other Terms of
Service and contracts that the company
will be needing.
8 OVERALL SCHEDULE
8.1 SCHEDULE SUMMARY
Thor Bidet Inc.s Overall Schedule details
the first two years of design,
development, marketing, and operations,
while showing a brief growth schedule in
years 3-5. As seen in the Overall Schedule
table below, Thor Bidet Inc. will
incorporate in May 2017 as a C Corp and
will begin leasing office and warehouse
space. Furthermore, two sales
representatives will be hired in the month
of May. Thor Bidet Inc. will start the
design, development, and testing process
in May and finish this process by June
30th. At that point, the final version of the
Thor Bidet will be created and the first
order will be placed with the manufacturer
in July. By August, Thor Bidet Inc.s
website will be completed and Thor Bidet
will be available for sale on Amazon and
in select retail stores. As Thor Bidet Inc.
will receive the first order from the
manufacturer in the end of July, the
official operation of the business will
commence and the marketing initiative
will be launched August 1st. By
September, Thor Bidet Inc. will ramp up
marketing efforts, while the sales
representatives will contact and meet with
international student organizations at
universities all across the north east in
efforts to promote and sell the Thor Bidet.
From September through December, Thor
Bidet Inc. will continue its sales through
individual purchases on Amazon, select
university organizations, and select retail
stores. Additionally, Thor Bidet Inc. will
continue with the marketing strategy, and
send/receive/analyze customer feedback.
Thor Bidet Inc. will break even in January
2018. Further in 2018, Thor Bidet Inc. will
begin expanding to more retail locations
and more university organizations. Thor
Bidet Inc. will ramp up marketing in the
months of September and January, the
months in which its target market goes
back to college. Thor Bidet Inc. will begin
its Holi Campaign in March 2018, with
plans to increase the campaign each
March to follow.
From 2019-2012, Thor Bidet Inc. will
continue strong sales and marketing on
the east coast, while exploring growth
opportunities both through retail stores
and through expansion across the entire
US. In year three, Thor Bidet Inc. will
launch the Poseidon Bidet and hire two
more sales representatives in an effort to
expand retail and institutional sales. In
2020 and 2021, Thor Bidet Inc. will
continue researching and developing new,
related products and continue with the
sales and marketing strategy. Finally, in
year 2021, Thor Bidet Inc. will complete
the development plans for new products
and explore expansion opportunities into
Europe.
Year 1: 2017
May Incorporation of the
venture as C Corp in
Delaware
Begin office and
warehouse lease
Create first prototype of
the Thor Bidet
Initial plans sent to
manufacturer for design of
product
Hire website designer
Hire 2 sales
representatives
14 | P a g e
 Develop overall marketing
strategy
Develop distribution
strategy (Amazon)
Provide founders
investment of $100,000
Seek $200,000 investment
Hire corporate marketing
agency to provide uniform
advertising content across
platforms (Happa Studios)
Hire social media creative
agency to manage social
media platforms ($99
Social)
June Design, develop, and
testing of product is
completed
Website is finished
Sales representatives
meet with university
institutions and select
retail stores
July Place first Thor Bidet order
with manufacturer (orders
continue on a monthly
basis)
Start official operation of
business
Enter select retail stores
Begin POS marketing
strategy (retail stores)
August Begin Facebook
advertising
Begin individual-online,
retail, and university sales
Intense marketing geared
toward international
students going back to
school
Septemb Continue individual-online,
er retail, and university sales
Ramp up marketing efforts
(Facebook Ads)
Create feedback forms to
send customers
October Continue individual-online,
retail, and university sales
Continue marketing
strategy
Begin to analyze customer
feedback forms
Novemb Respond based on
er customer feedback forms
Continue individual-online,
retail, and university sales
Continue marketing
strategy
Decemb Continue individual-online,
er retail, and university
Continue marketing
strategy
Year 2: 2018
Q1 Breakeven in January 2018
Continue individual-online,
retail, and university sales
Ramp up Facebook advertising
in January
Launch Holi campaign in March
Extend marketing strategy to hit
all with target religious customs
Explore expansion into more
retail stores
Q2 Expand college/religious market
to entire east coast
Enhance online marketing
strategy through targeted
display advertisements
Prepare operations for peak
season
Q3 Ramp up Facebook advertising
in September
Continue sales and collect
customer feedback
Q4 Continue sales in university and
online channels
Continue marketing strategy
15 | P a g e

Years 3-5: 2019-2021
Year 3- Continue strong sales on
2019 east coast for Thor
Hire 2 more sales
representatives
Patent the Poseidon Bidet
Place first Poseidon Bidet
order with manufacturer
Launch the Poseidon Bidet
Begin expansion to entire
US for Thor and Poseidon
Enter more retail stores
Launch Holi campaign
(increase from previous
year)
Continue expansion into
retail stores
Continue R&D
Year 4- Continue sales throughout
2020 US
Enter more retail stores
Launch Holi Campaign in
March
Expand team as needed
Continue R&D
Year 5- Continue sales throughout
2021 US
Enter more retail stores
Launch Holi Campaign in
March
Complete development
plans for new products
Explore expansion
opportunity into Europe
9 CRITICAL RISKS &
ASSUMPTIONS
9.1 ASSUMPTIONS
To compute forecast revenues, the
company will be taking the total number
of international students expected to
come to US for studies next year - 37% of
which, according to market research, have
been identified as potential target market.
However, in order to have more effective
and cost-efficient initial marketing, the
company will be targeting only the top 25
universities during the first two years. Out
of the narrowed market, surveys showed
that only 62% of the target market are
willing to purchase the product at $37.
The company will also be assuming that
during the first year of operations, only
half of that market will be reachable. By
the third year, the company expects to
increase its revenues through the launch
of another product, the Poseidon Bidet,
which will cater to the needs of
international students and professionals.
It will bear aesthetic features and will be
geared toward portable usage.
Due to a limited budget and the fact that
the company will strictly be serving as a
connecting party between the outsourced
production and outsourced distribution,
Thor Bidet Inc. assumes that the team will
remain small for the first few years. In
addition to the three external advisors,
five of the founders will also be working
full time in respective departments, as
well as two sales representatives in years
one and two, with the addition of two
more in year three.
The cost of the unit has been projected by
taking into consideration the material
parts used to complete the product and
the costs of outsourced manufacturing in
India. In average, the cost is expected to
be at $8.56 for the Thor Bidet and $6.46
for the portable bidet that is planned to go
on sale in the companys third year of
operation. Inventory holding and
distribution will be outsourced to Amazon
and the costs have been projected to
$2.41 per unit. Product margins are
expected to be $28.43 (77.0%) and
$11.53 (64%) for the Thor Bidet and the
Poseidon Bidet, respectively.
16 | P a g e
No capital expenditures are expected, and
rent is expected to be at about $4,500 a
month, due to the projections that most
sales will be done online or through
institutions, thus having no need to have
a central location. Though Thor Bidet Inc.
will not patent the Thor Bidet, the
company will apply for a design and utility
patent for the Poseidon Bidet in year 2.
9.2 RISKS
Demand Risk:
Thor Bidet Inc. recognizes potential risks
in the market. Specifically, there is a risk
that demand will not be as high as
expected; therefore, sales will be lower
than projected. As the Thor Bidet Inc. is
targeting international students, if this
population decreases in the near future,
the company may miss its sales
projections. Furthermore, if Thor Bidet
Inc.s marketing strategy fails to reach the
target market, sales may be lower than
expected. Finally, the possibility of less
sales poses the inherent risk of running
out of cash.
Thor Bidet Inc. will mitigate these risks in
several ways. First, through market
research, Thor Bidet Inc. has ensured that
there is a need for this product among
international college students, specifically.
In fact, not only does this market currently
exist, it is also estimated to grow at 9% in
the coming years. In addition, Thor Bidet
Inc.s marketing strategy will reach the
majority of the target market, while its
pricing strategy offers the quality product
at an affordable price, particularly to the
target demographic, compared to the
price of similar products sold by industry
competitors. Finally, Thor Bidet Inc. will
keep costs low by bootstrapping and
using low-cost materials in manufacturing
to produce a quality product, raise more
capital if needed, and execute an
aggressive marketing strategy.
Operational Risk:
Thor Bidet Inc. projects its design and
manufacturing costs to be $8.56 for the
Thor Bidet and $6.46 for the Poseidon
Bidet. However, there is a risk that these
costs will be greater than expected. In
addition, since Thor Bidet Inc. is
outsourcing its manufacturing to China,
there is a risk that the product is not up to
standard quality, due to lack of oversight,
which could severely tarnish the brands
image. Further, since production will take
place in China, there is a risk of late
shipments of the product.
To mitigate these risks, Thor Bidet Inc.s
CIO will oversee production in China,
ensuring costs are kept low and product
quality is up to par. Thor Bidet Inc. will
also keep safety stock of inventory in case
a problem arises in manufacturing or
shipment, causing shipments to be
delayed. The first order placed with the
manufacturer will contain excess bidets to
diminish this risk.
Lack of Patent Risk:
As Thor Bidet Inc. does not currently have
a patent, competitors can easily imitate
the product itself. This is a critical risk that
Thor Bidet Inc. will mitigate in the
following ways: By offering a quality
product and an easy, convenient buying
experience that helps to retain customers;
By quickly building brand awareness
through an aggressive marketing
strategy; By pricing the product lower
than competitors; By producing new,
innovative products based on market
needs.
17 | P a g e
10 FINANCIAL PLAN
10.1 HIGHLIGHTS
Thor Bidet Inc.s financial plan offers a
great business value for investors. The
companys revenue will start in August
2017 through the sales of the Thor Bidet
(Exhibit H). During the first year of
operations, the company would have net
loss of $6,307.48 dollars. The companys
second product, the Poseidon Bidet will be
introduced in the first quarter of the third
year.
The company needs an investment of
$200,000 apart from the owners
investment of $100,000 in the first year.
The company has a negative cash from
operations ($17,598) in the first year. The
burn rate of the company is 136 months.
However, the cash flow of operations
starts getting positive from Q2 of year 1
(Exhibit I). The companys current ratio
and quick ratio stands above the industry
median suggesting that the company will
be able to manage the short-term
liabilities. The inventory ratio is on the
higher side, which suggests that the
company will be able to sell the inventory
in fewer number of days. The profit
margin of the company is between
18.88% and 30.94% from year 2 onwards.
The return on equity has an exponential
increase from 115.78% in year 2 to
749.67% in year 5.
10.2 BREAKEVEN
During the initial phase, the founders
money will be invested and used to
bootstrap and start the business. The
company will breakeven at 28,843 units in
9 months (Exhibit E). The total market
potential for the Thor Bidet is 1.3 million
buyers, while the total market potential
for the Poseidon Bidet is 4.6 million
buyers in their respective launch years.
The company has calculated a sales
potential target for the Thor Bidet of 2% in
the first year that builds to 9.6% by the
fifth year. Since the Poseidon Bidet has a
larger market potential, the company has
created a conservative estimate of first
year sales potential of 1.5% and plans to
achieve 2.73% by the end of the third
year of sales.
10.3 COST CONTROLS
Thor Bidet Inc.s CEO and CFO will be
responsible to run the cost controls and to
manage the expenses of the company. If
needed, the marketing team will help for
the sales projections and the expansion
plan. Initially monthly reports will be
generated to track the progress of the
company. It will be the responsibility of all
the founders to identify and mitigate risks
when needed.
10.4 KEY FINANCIAL ASSUMPTIONS
The company has accounted for sales
return and allowance which is assumed to
be 3% of the revenues. Also, the company
has kept a 15% operational expense
buffer that will help mitigate the risks of
extra expense if required. Thor Bidet Inc.s
major expenses will be purchases,
marketing, and research and
development. Apart from these, a major
expense would be startup costs which
would be incurred in the first year. The
company will breakeven in 9 months. The
net income after taxes will become
positive in the second quarter of year 2.
One benefit that investors will find
attractive is that the company is debt free
and most of the assets are liquid.
For now, to keep the financial statements
simple, the company has assumed that it
will pay the manufacturer and get paid by
retail stores and Amazon in the same
month. Thor Bidet Inc. has seasonal cash
flow sensitivity with respect to sales in the
first and fourth quarters of the financial
year. The company plans to keep the
18 | P a g e
salaries of the employees constant until
its financial goals are met.
10.5 COMPANY OFFERING
Thor Bidet Inc. is seeking an investment of
$200,000 from investors in return for 14%
equity. The investor will also get voting
rights and seat on the board. The NPV of
the company is $1,474,829.59 using DCF
valuation technique (Exhibit K). The
company also considered risk adjustment,
market risk premium and long term
growth rate resulting to a discount rate of
40.80%. After analyzing the financial
needs, the company plans to use the
money from angel investors for
marketing, initial purchase orders and
R&D over a term of five years. The
company has used cash safety cushion in
terms of 15% operating buffer. The
investment is expected to be made
available during the starting months of
the business to achieve optimal growth
and manage sales. The company will
buyout the investors for $1,000,000, or 5x
their initial investment, at the end of year
five. The preferred exit strategy would be
through acquisition from a major player of
sanitary toilet products. In the case of a
potential acquisition, Thor Bidet Inc. will
ensure a good fit, which benefits both
parties.
Works Cited:
1-
https://www.statista.com/statistics/268136
/top-15-countries-based-on-number-of-
facebook-users/
2-
https://www.salesforcemarketingcloud.co
m/wp-content/uploads/2013/06/The-
Facebook-Ads-Benchmark-Report.pdf
3 - http://www.pewresearch.org/fact-
tank/2016/01/06/a-new-estimate-of-
the-u-s-muslim-population/ft_16-01-
05_numbermuslims/
4 https://www.iie.org/Research-and-
Insights/Open-
Doors/Data/International-
Students/Leading-Institutions/2015-16
5
https://www.census.gov/econ/isp/samp
ler.php?
naicscode=322291&naicslevel=6
19 | P a g e
 Exhibit A: Market Research

Q. How satisfied do you feel with your current method of cleaning? Q. Would you be interested in a high pressure water bidet that
provides effective cleaning without the use of hands?

Q. How much are you willing to shell out for a pressure based water Q. What do you think will matter when using bidet? (Choose one or
bidet (inclusive of 1yr warranty)? more)

Exhibit B: Market Size

Macro Market size Market Size (Thor)
 Exhibit C: Conversion Rate

Thor Conversion Rates Poseidon Conversion Rates

 Based on SalesForceSocial.com: The Facebook Ads Benchmark Report 2

Exhibit D: Marketing Budget

Marketing Budgets:
Exhibit E: Economic Model
 Exhibit E (Continued)

Contribution Margin:
Breakeven:

Exhibit F: Operations Plan

Exhibit G: Management Team
Exhibit H: Income Statement

Income Statement Year 1

Income Statements Years 2 & 3
Income Statements Years 4 & 5
 Exhibit I: Cash Flow Statement

Cash Flow Year 1

Cash Flow Years 2 & 3
Cash Flow Years 4 & 5
 Exhibit J: Balance Sheets

Balance Sheet Year 1

Balance Sheet Years 2 & 3
Balance Sheet Years 4 & 5
Exhibit K: Valuation