You have recently been hired as the Transportation Manager for ProVideo Technology (PVT) in Canada that acts as a reseller of mobile video camera equipment specifically for the film and television industry in Canada. In Canada, there are three major firms that compete with PVT, that resell this equipment directly to the film and television industry. PVT today enjoys a 25% market share however is seeking new opportunities to grow. The PVT administrative office is in Vancouver BC in the same facility that acts as their retail and small distribution centre for Vancouver.

PVT has signed a multiyear agreement to have the exclusive rights to distribute a new camera designed specifically for mobile filming applications. The new camera is being produced in San Diego California and will be ready for the market in four months. The manufacturer of the camera is branding it as the Tough Cam. The cameras advantage is in its ability to be mounted but also that it is waterproof, explosion proof, heat resistant up to 600 degrees Celsius, shock proof, and virtually uncrushable when mounted correctly in the appropriate outer shell. The Tough Cam is unique in that the camera and all accessories are available only in a bright red colour.

The Tough Cam is sold as a complete solution including seven different mounting brackets, and four outer shells that enclose the camera for different filming situations. The camera also contains a significantly larger lithium ion battery rated at 125 watt hours allowing for up to twenty continuous hours of video recording. The battery is packaged with the equipment as a separate item and can be charged using the provided external charger (it is not built into the camera). The manufacturer has stated that the camera, batteries, carrying case and all accessories will be packaged in a single corrugate carton weighing 24 kilograms, measuring 78 cm wide, 45 cm high, and 85 cm long.

PVTs primary markets are film and television companies located in all major Canadian cities. PVT anticipates the retail price for the camera to be $3,500 CAD. The initial roll out plan will have these items purchased directly from the manufacturer in San Diego. The purchase price from the manufacturer includes delivery of the camera to PVTs head office located in Vancouver BC. The manufacturer has agreed to ship once monthly to Vancouver the anticipated number of units required for each Canadian location for that month. PVT will be responsible for distribution of these units to the Canadian retail locations.

PVT has local retail stores in the cities mentioned above. These retail locations anticipate very strong demand in each market as there is no direct competitor for this product. Additionally, the US manufacturer has acquired several patents that will make duplication of the product difficult for potential new entrants that may attempt to copy portions of the camera.