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Tricky Widgets Manufacturing
Strategy and Implementation Summary
TWM will succeed by manufacturing high quality, durable heavy equipment machinery with a significant number of product features and options which are extremely precise in control of movement. It will focus on a very narrow segment of the market and attempt to achieve the best reputation in that segment.
5.1 Competitive Edge
TWM’s competitive edge is its level of quality, product features and options, and the company’s relationships with several major commercial construction companies nationwide.
5.2 Sales Strategy
As the table shows, TWM plans to deliver sales of approximately $54 million in the current year, $62 million in the second year, and $75 million in the third year following this plan.
5.2.1 Sales Forecast
The company will begin by utilizing its extensive contacts with several major construction companies to leverage contracts through direct sales methods and onsite demonstrations. A number of these companies have expressed an interest in purchasing the proposed products of TWM. The company’s extensive advertising campaign will be used to create product awareness through the use of trade journals, direct mail advertising, and other means. At some future date, the company will seek to entice major equipment distributors to carry TWM’s products once the company has established a firm reputation. The establishment of a post sales servicing and parts division will provide additional sales and opportunities for marketing new products.
|Year 1||Year 2||Year 3|
|Total Unit Sales||992||1,042||1,146|
|Unit Prices||Year 1||Year 2||Year 3|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales||$43,401,522||$49,217,326||$58,470,184|