to the human voice, music and other sounds. The display is in full color and the patterns created in response to sound are stunning. It is particularly attractive to young children experimenting with the sound of their own voice, although this is by no means the only market. People who love music, for example, are commonly fascinated by the Kinet-O-Scope. To accurately estimate the sales potential of the Kinet-O-Scope in the consumer market is difficult, as no directly comparable products exist.     In an effort to arrive at as accurate an estimate as possible, extensive consumer interviews were conducted. The Kinet-O-Scope Market Research Chart which follows summarizes the results of these interviews. When compared directly with the most similar products available (these are not nearly as good, but there is nothing else), 56% of the people asked preferred the Kinet-O-Scope. Even more persuasive, 49% of those tested would buy it for themselves, while 62% of those tested would buy it for a gift.     While there are no specific competitive products to the Kinet-O-Scope, it is clear that there is a distinct market for products of this type. This conclusion is arrived at by looking at good sales figures for Light Organs, Infinity Lights, Wave Devices, Volcano Lights, Rain Lamps and other products which use light in innovative and creative ways.     Perhaps the best example of the size of the market is the Lava Light, a less technically advanced, but lower cost product. According to its manufacturer, Volcano Simplex International, over 6,000,000 units have been sold in four years, with 3,000,000 sold last year. If we consider a wholesale average selling price of $90, this represents over $270,000,000. DAY INTERNATIONAL, INC. conservatively estimates that it will sell about 2,800 units of the Kinet-O-Scope in the second year of operations, for a wholesale dollar sales volume of $420,000 ($150 per unit). Further sales growth is expected in later years. Note that this unit volume is a tiny fraction of the Volcano Lights sales volume for last year.     Market Research Age:Under 16: 3%16-20: 11%21-34: 41%35+: 45%   ** Average Total Estimate: $168.69; Actual: $160.00 F. Marketing Plan     The channels of distribution for the Kinet-O-Scroll and Kinet-O-Scope will include direct sales by corporate personnel to selected major accounts, and the use of manufacturers representatives (sales reps), distributors dealers (wholesalers) and international trading companies to reach the rest of the market. We do not anticipate establishing our own factory sales force. With regard to international sales, except for "opportunity sales," we will not launch our formal effort until we have