Gravel Rock Products Business Plan

Durango Gravel, Inc.’s strategy is as follows:

1. Add an asphalt plant as quickly as possible to penetrate the asphalt market.
2. Continue to expand gravel sales.
3. Continue our uniquely designed service for those customers with their own delivery trucks.
4. Continue the establishment of long-term, mutually-beneficial relationships with commercial accounts.
5. Continue our revolutionary program to cut delivery costs for municipalities and industry end-users.
6. Aggressively market our “Consumer-Oriented” focus.

We intend to maximize product sales through aggressive marketing, penetrate the asphalt market, and increase our targeted marketing efforts.

5.1 Strategy Pyramid

Our main strategy at Durango Gravel, Inc. is to position ourselves at the top of the quality scale, featuring our combination of fine quality products and the best customer service in the region. 

We are committed to communicating our “Quality” position to the market.  Programs are mainly those listed in the Milestones Table, including the continued acquisition of public-sector accounts.

5.2 Value Proposition

We offer our target customer, who cares about personal service, as well as product quality, a vendor who acts as a strategic ally, with the highest quality asphalt and gravel products at a premium price that reflects the value of reassurance that systems will work.

5.3 Marketing Strategy

The marketing strategy is the core of the main strategy, and is multi-faceted:

1. Penetrate the asphalt market.
2. Emphasize personal service and support.
3. Foster a long-term relationship business.
4. Focus on the public-sector, major contractor and high-end homeowner as key target markets.
5. Induce more companies to utilize our revolutionary delivery and loading strategies.

5.3.1 Pricing Strategy

With regard to products carried by our competitors, our pricing strategy will be to either match their prices, or to be marginally lower. We expect that our superior service will be a major factor.

5.4 Competitive Edge

Our competitive edge is our quality product, location, emphasis on customer service, and our long-term availability of products.

5.5 Sales Strategy

We need to sell our company, not just the products. We have to sell our service and support.

The Yearly Total Sales chart summarizes our ambitious sales forecast. We expect sales to increase from $250,000 last year to approximately $2.7 million next year. The marketing strategy is the core of the main strategy, and is multi-faceted.

5.5.1 Sales Forecast

Sales forecasts are based on the following information:

1. The acquisition of an asphalt plant, in place by April, 2001.
2. A minimum 45.5K ton asphalt sales in year one.
3. Our gravel sales total reflects 45.5K tons “sold” to our asphalt plant.

5.6 Milestones

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.