Business Plan
It took the consultant three months to develop the business plan. Not only was he required to overcome the company’s shortfalls, but he had to create a merchandising strategy for the product line. There was considerable in the $6 billon North American market. Disposable diapers accounted for about 85percent of all diaper use while the $500 million cloth diaper market was split between diaper service firms and home sales. In B.C.two firms dominated the western market, Babykins and Indisposables, each of which had a 40 percent share. At the same time, Cushies, Nikky and Babe-eez (see Appendix B) accountes for 70 percent of the total Canadian cloth diaper market of an estimated 250000babies. Each baby goes through 2000 disosables per year for 2.5 years, for a total cost of $2500. On the other hand the expense for reusable diapers varies from $15.00 per week for diaper sevice to 100-150 diapers in small,medium,large sizes, liners and waterproof pants at $650 in total.