Strategy and Implementation Summary
Wooderful Floors will steadily gain market share by leveraging its competitive edge of an environmental focus and being the most experienced refinisher with the new water-based finishing product.
Wooderful Floors’ marketing strategy will develop awareness regarding the non-toxic wood floor refinishing. Several different communication methods will be used. Recognizing influence of word-of-mouth recommendations in this industry, Wooderful Floors will use customer referral coupons to create economic incentives for referrals.
The sales effort for the wood floor refinishing will focus on Wooderful Floors’ competitive edge regarding specialization on environmentally-sound refinishes and offering the community the most experience with this new technology.
5.1 Competitive Edge
Wooderful Floors has a significant competitive advantage of being the only service provider that specializes on water-based products:
- Environmental focus: By only offering a water-based solution, Wooderful Floors is signalling to the market that they have environmental considerations.
- Experience: Wooderful Floors will be the service provider with the most experience with the water-based product since that is the only style of finishes that they work at.
5.2 Marketing Strategy
The marketing strategy will communicate that Wooderful Floors offers a new type of wood floor refinishing that is safe for home owners and the environment. This message will be distributed by:
- The Pittsburgh Herald: The main daily paper. Once a week there is a home improvement section in which Wooderful Floors will advertise.
- The Pittsburgh Weekly: A popular weekly entertainment guide. This publication is pro-environment so the readership demographic are similar to Wooderful Floors’ targeted customers.
- Yellow Pages.
Customer referral coupons: These coupons will be distributed as an economic incentive for customers. The customer receives cash back if the coupon is used by the person they give it to.
5.3 Sales Strategy
The sales strategy focuses on emphasizing Wooderful Floors’ competitive edge of being environmentally conscious and having the greatest amount of experience in the industry. Wooderful Floors will stand out from its competitors as a company that cares about the environment and the safety of its clients.
5.3.1 Sales Forecast
Wooderful Floors has adopted a conservative sales forecast as a method for predicting future sales as well as benchmarking progress.
Because the business is being funded by debt, a conservative forecast was chosen to better ensure that future obligations will be met. Please review the following table and charts which offer graphical presentations of the future sales.
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||$10,182||$15,360||$18,743|
Wooderful Floors has chosen several milestones which will act as achievable goals for the company to reach within the first two years of operation. The milestones will be quantifiable goals so that it will be easy to discern when they are reached.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Business plan completion||6/1/2003||6/30/2003||$0||Logan||Business Formation|
|Final equipment purchased||1/1/2004||2/20/2004||$0||Logan||Operations|
|First large job||3/15/2004||3/15/2004||$0||Logan||Sales|