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Strategy and Implementation Summary
The company plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to residential and commercial builders. The market strategy is to capitalize on Concrete Installation’s alliances by securing city, county, and state and federal government contracts.
Concrete Installation will be committed to ensuring that the products used on its’ customers job sites, everything from access scaffolding to concrete shoring frames and forming equipment, is safe and OSHA approved. Along with clients, the company believes in a health and safety initiative that is all pervasive, managing any potential loss in the work environment.
Concrete Installation will develop sophisticated formwork solutions for some of the most complex construction projects being done today. The company’s standard form systems will be versatile and completely adaptable to a variety of configurations such as Y-walls, shafts, and circular walls.
With that in mind, Concrete Installation will adopt a corporate strategy that is dedicated to improving the performance of activities on the critical path of its customers’ projects. The company will do this by building on its core strengths: innovative equipment, design engineering expertise, and project and site management, within an environment of safety excellence.
At Concrete Installation, customer service is a pro-active partnership, a relationship that ensures a professional, efficiently run, safe workplace. The company’s customer service philosophy starts at the top, is ingrained into the fabric of the company, and is closely aligned to Concrete Installation’s goal of contributing to its’ customers critical success factors.
Customer service can be divided into two interrelated areas: equipment and people. On the job site, with the help of a newly integrated technology system and a well-trained staff, Concrete Installation will be able to maintain excellent control over such key areas as inventory, shipments/deliveries, damage loss, and invoicing. Troubleshooting, which customer service representatives often do right on the job site, will be handled quickly and efficiently. On the people side, Concrete Installation will provide a highly qualified and well-prepared labor force, ensuring that schedules and deadlines are met and worker safety remains a top consideration.
5.1 Sales Forecast
The following table and charts show our projected Sales Forecast.
|Year 1||Year 2||Year 3|
|All construction work||$700,000||$1,050,000||$1,575,000|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|All construction work||$448,000||$558,750||$698,437|
|Subtotal Direct Cost of Sales||$448,000||$558,750||$698,437|
5.2 Marketing Strategy
Concrete Installation plans to use a direct sales force, relationship selling, and subcontractors to reach its markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels. The overall marketing plan for Concrete Installation’s service is based on the following fundamentals:
- The segment of the market(s) planned to reach.
- Distribution channels planned to be used to reach market segments: television, radio, sales associates, and mail order.
- Share of the market expected to capture over a fixed period of time.
In addition, Concrete Installation plans to advertise in magazines, newspapers, and radio.
The table and chart below outline the company’s sales forecast for FY2000-2002. In our sales forecasts, the cost of sales includes only direct labor costs (administrative labor costs are discussed below).
Concrete Installation is committed to an extensive promotional campaign. This will be done aggressively and on a broad scale. To accomplish initial sales goals, the company will require an effective promotional campaign to accomplish two primary objectives:
- Attract customers who will constantly look to Concrete Installation for their construction projects.
- Attract quality sales personnel who have a desire to be successful.
In addition to standard advertisement practices, Concrete Installation will gain considerable recognition through these additional promotional mediums:
- Press releases sent to major radio stations, newspapers, and magazines.
- Radio advertising on secondary stations.
For the first six months of operation, advertising and promotion is budgeted at approximately $11,000. A fixed amount of sales revenues will go toward the state Concrete Installation advertisement campaign. On an ongoing basis, Concrete Installation feels that it can budget advertising expenses at less than 10% of revenues.
Incentives. As an extra incentive for customers to remember Concrete Installation’s name, the company plans to distribute coffee mugs, T-shirts, pens, and other advertising specialties with its logo.
Brochures. The objective of brochures is to portray Concrete Installations’ goals and products as an attractive functionality. It is also to show customers how to use the latest in technology as it relates to construction and building services. Concrete Installation will develop three brochures: one to be used to promote sales, one to use to announce the product in a new market, and the other to recruit sales associates.