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AMU Corporation <br /> Page 3 <br /> MARKETING: <br /> AMU Corporation's competitive advantage is in providing the only custom positioning <br /> systems which exceed Medicare/Medicaid guidelines for reimbursement. <br /> The Company's marketing options are: <br />• Traditional: Manufacturer (AMU) would sell to the Distributor, who in turn sells to the <br /> Dealer and then to Customer. The Company has had preliminary discussions with the key <br /> distributors in the industry. However, this method of sales would be a longer term goal <br /> of the Company, as sales of its products usually require more product education than this <br /> method provides. <br /> Factory Direct: Direct Sales Advertising/Retail Sales Outlets/Informational Sales (i.e.: <br /> Nordic Track - Select Comfort). This method will be used initially by the Company <br /> because it allows an educational and informed decision process for the purchaser. <br /> AMU intends to direct its initial marketing push towards the Minnesota market. There <br /> are approximately 450 nursing homes in Minnesota (135 in the Minneapolis/St. Paul <br /> Metropolitan Area) with approximately 50,000 residents. Once substantial sales are <br /> generated in this market, the Company will initiate a nationwide marketing effort. The <br /> Company's goal is to obtain sales of at least one-tenth of one percent of the nations <br /> 1,800,000 nursing home residents by the end of the second year. <br /> The Company will target people who are wheelchair bound and those who are suffering <br /> back pain. It's products primary benefit is the relief from pain and pressure while <br /> improving health functions related to posture. Quality of life returns with the dignity of <br /> proper restraint-free safe seating. <br /> "1 out of every 2 women over the age of 60 has osteoporosis (the depletion of bone mass, <br /> causing broken hips or spinal fractures). 1 out of every 4 women over the age of 60 will <br /> get spinal fractures." Minneapolis Star and Tribune, 1-5-97 <br /> "50% of working-age Americans suffer a back attack each year. A good chair with back <br /> support is essential." Modern Maturity, November-December, 1996 <br /> To reach this audience the Company will use: toll-free number, press kits, postcard <br /> mailings, a Web site, demos/in service, brochures, video information, a referral program, <br /> a newsletter, a schedule of classified advertisements in health/aging publications, <br /> • advertisements in regional/local editions of national magazines and newspapers (with <br />