ILG designs, develops and sells a broad spectrum of unique patented products. The Company is engaged in the marketing and licensing of exclusive patented consumer products, such as household, office, hardware and automotive products. The company will start marketing in January of 98 two of its patented products throughout North America and is in the process of rolling out additional products. One of the company's products is called the UPRIGHTTM, an attachment for shovel handles, and is expected to do between two hundred thousand to three hundred thousand in sales this winter.
High Profit Margins: A major advantage that ILG has in the marketplace is in its proprietary patented products. All our products are one of a kind & patented, this means that they can not be reproduced, therefore we have no comparative product competition. This lack of competition allows us to maintain very high profit margins. Example: The UPRIGHT attachment for a shovel handle, retails for $ 19.95 and wholesales for $ 9.95 ILG's cost is approximately $ 2.95. The company still has to be price sensitive to retail value but does not have to worry about competition.
ILG is divided into two main operating units: Marketing & Licensing, and Design & Tooling. The corporate offices are located in Lake Forest, California, where the CEO and corporate marketing are located. Strategic planning and marketing coordination of manufacturer's reps throughout the world is done from this location. New product development, licensing, patent prosecution and marketing rollout campaigns are also managed from the Lake Forest offices. Tooling for manufacturing is done in Utah, and manufacturing is subcontracted out to various companies located in Utah, California, Taiwan and Mexico.
The Home Shopping Industry is booming: "It is estimated that television home shopping will exceed $100 billion by the year 2004"
Industry Forecasts: The home shopping venue or channel of distribution has exploded during a period from 1990 to 1994. The various home shopping venues, i.e., American Media, the Home Shopping Club, QVC, Value Vision and dynamic, new channels of distribution generated almost $11 BILLION annually in sales. It is estimated that over four out of five Americans have purchased a product either directly or indirectly because of seeing it on TV. It's safe to say that nearly everyone has seen at least one infomercial, but few people realize the incredible revenue being generated by this type of marketing. The direct-response television form of marketing medium has created several multi-million dollar products in just their first year of marketing.
Proven Strategic Marketing: The Company's ongoing marketing strategy is to introduce its products to the U.S. domestic markets through use of home shopping channels and infomercials. Below are the various stages of market development that ILG uses to introduce a product on the national level |
