Strategy and Implementation Summary
StructureAll Ltd. will focus on the Western Arctic area initially. We believe the creation of Nunavut will still provide opportunities for structural engineering services; however a separate Association of Professional Engineers for Nunavut is anticipated.
We are also licensed to practice in the Yukon Territories, although we have not planned for any aggressive marketing in this area.
The target client is usually an Architect Manager.
5.1 Competitive Edge
StructureAll Ltd. offers the following competitive edge:
- State-of-the-art modeling, design, analysis, and drafting capabilities.
- Quality control and assurance program.
- An Internet website (http:\\www.structureall.com, and e-mail, email@example.com).
5.2 Marketing Strategy
The sections which follow describe in more detail our positioning statement, pricing, and promotion strategy.
5.2.1 Promotion Strategy
We will be using the Internet extensively in our sales promotion. Together with a well targeted direct mail and e-mail campaign, we will make all the major players in the marketplace aware of our presence.
We will focus our limited advertising budgets to promote community sponsored events. We will also offer technical services at discount rates to non-profit organizations.
When travelling to remote communities, we will contact the local principals in elementary and high schools offering them a speaker on structural engineering as a career choice.
StructureAll Ltd. will apply for the Northwest Territories Business Incentive Policy. This policy is directed at those firms resident in the Northwest Territories and provides incentives with respect to evaluation of services.
5.2.2 Positioning Statement
For established engineering and architectural firms in Yellowknife who require structural engineering sub-consultant services, StructureAll Ltd. offers a competitive and economical option. Projects may be delegated to StructureAll Ltd. directly or arrangements can be made to supplement and assist their own in-house staff.
5.2.3 Pricing Strategy
Most consulting work is billed on an hourly basis to pre-determined levels dictated by project schedule milestones. We have assigned a rate of $80/hour for basic consulting services and $40/hour for drafting services. These are conservative values for the consulting market. We have used conservative unit rates to remain more competitive.
5.3 Sales Strategy
Success in a consulting market is focused on client service and typically translates into repeat business. We will avoid the pitfall of buying a project, only to find the scope of work far exceeds renumeration.
When a potential client questions the cost of a project, we explain the benefits and refer to our proposal which clearly outlines the tasks to be performed. If the budget is for less money, then we must offer less service.
Billing rates are not negotiated. One exception to this rule would be for not-for-profit organizations where marketing can be traded for services in kind.
5.3.1 Sales Forecast
The following table and chart summarizes forecasted sales. We expect sales to remain at a constant level after three months of operation. We predict the first two months of operations will be slow. Revenues will be limited while a generic quality management plan is formulated and basic office administration tasks are completed.
Direct unit costs for the first year have been set at less than one-third of unit revenues, which yields a high gross margin. In the third year of operations, we plan to increase gross margin as a result of providing a more efficient service to our clients.
Our unit rate for basic consulting services has been set at $80/hour. This is a conservative assumption based on published salary guideline levels for engineering professionals. Our unit rate for CADD services is $40/hr.
The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
What the table doesn't show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, which will be updated monthly to compare the variance and plan for course corrections.