Strategy and Implementation Summary
Ereidi Farm will focus its expansion on the following markets: Thoroughbred owners and breeders in state racing programs that are in decline, Pennsylvania thoroughbred owners and breeders that realize they must upgrade their current stock in order to remain competitive and new potential first time owners, usually in the form of partnerships.
Attracting these clients will be done using modern technology (i.e., Internet and website resources) as well as specifically defined print advertising. We will make ourselves more present at public venues where our potential clients gather. Locations such as public thoroughbred sales, seminars, racetracks and trade shows have been targeted.
Our farm has been built on its reputation for exceeding clients expectations on the care of their horses and providing outstanding customer service. These are and will remain the hallmarks of our farm.
5.1 Competitive Edge
Ereidi Farm’s competitive advantage is multi-faceted. We are different from our competitors for the following reasons:
- Our people: We invest in quality, client-focused people and provide them with opportunities for continued learning and skill utilization. Our people are well-informed, engaging and embrace the Ereidi Farm “Full Circle” service philosophy.
- Our programs: Our programs are comprehensive and individualized. No detail is overlooked and no horse gets lost in a “production line” type of program. Our intensive management practices have made us a number one choice for difficult youngsters and “high risk” pregnant mares.
The results are tangible: Untrainable horses have gone on to the races and our farm has a 100% live foal percentage for every year. Our programs consistently exceed our client’s expectations, it is the number one reason our current facility is full to capacity.
- Our “Full Circle” service: We genuinely love what we do and enjoy sharing with others! We build long-lasting relationships with our clients through constant communication and our abilities to procure the information and resources clients need to make knowledgeable decisions regarding their thoroughbred investments. We adhere to a high level of integrity and make sure we deliver as promised.
- Our facilities and location: Our expanded facility will offer world class amenities in a conveniently accessible location for local and East Coast regional commutes.
5.2 Sales Strategy
Our marketing programs are designed to create a desire for new potential clients to contact us and schedule a visit to our farm as most sales within our industry are closed upon visual inspection of the facilities, personnel and current horses in training.
Our sales strategy therefore is to provide our clients with an immaculate, safe facility, staffed by knowledgeable, service-oriented people that allows them the opportunity to thoroughly inspect the quality of our programs and the health and condition of the horses in our care. We permit inspections during training hours and our clients are always welcome. These details, coupled with outstanding references and recorded results make closing the sale at a profitable margin possible and pleasant for all parties.
5.2.1 Sales Forecast
Sales forecasting is based on the yearly cycle of the demand for each particular service. Training requests will increase as the Fall months arrive and grow steadily into the Winter when they will stabilize. Broodmare services will begin to climb as Winter approaches and the foaling season begins (late Winter through Spring). The boarding of weanlings, yearlings and rehabilitative horses (classified together as Other in the sales charts) will begin to grow as the Fall months commence.
Our home-grown sales always occur during the fall months, it is the time of year when the market is actively looking to buy. The dramatic rise is sales reflects the expansion of our facility. Horses require lots of space and our current facility cannot handle a large number of horses. This expansion will enable us to make our services available to a larger group of clients and we will gain more market share.
|FY 2004||FY 2005||FY 2006|
|Direct Cost of Sales||FY 2004||FY 2005||FY 2006|
|Subtotal Direct Cost of Sales||$35,000||$41,485||$50,247|
5.3 Marketing Strategy
Our top marketing strategy is an ecstatic client!
Ereidi Farm’s owner has extensive experience in developing marketing campaigns, direct mail campaigns, editing communications and utilizing technology. Our target market consists primarily of: Thoroughbred owners and breeders based outside of Pennsylvania, currently in deteriorating state racing/breeding programs; Pennsylvania thoroughbred owners and breeders who realize they must upgrade their programs to remain competitive in our state’s changing market; new investors in the thoroughbred industry, usually working within a partnership to minimize cost and risk while realizing a set quality level.
We will rely heavily on technology to generate awareness of our expansion, utilizing the Internet to reach those potential clients who are known Internet users. Our farm utilizes digital imaging, it was the number one reason for our increased sales in the past twelve months. Specific Internet sites in which to advertise our expansion have been identified and our farm maintains its own website.
We are building an e-mail mailing list to mass market at high speed. Selected print publications have been targeted to reach those in deteriorating racing states as well as potential new investors. We will increase our presence at industry sales, seminars and trade shows, continue to build our-business-to-business network and provide open houses (open farm days) for interested individuals to visit our farm.
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, and we will hold monthly follow-up meetings to discuss the variance and course corrections.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Locate suitable expansion property||1/1/2002||5/15/2003||$1,500,000||ABC||Marketing|
|Secure financing||5/15/2003||6/30/2003||$22,000||Eric & Heidi||Accounting|
|Expand current website||7/5/2003||8/31/2003||$0||Heidi Trimbur||Marketing|
|Complete expansion marketing roll out||7/5/2003||8/31/2003||$1,000||Heidi Trimbur||Marketing|
|Contract 20 training horses||7/10/2003||12/1/2003||$0||Heidi Trimbur||Marketing|
|Contracting 12 broodmares||7/10/2003||12/1/2003||$0||Heidi Trimbur||Marketing|
|Set up accounting system||8/1/2003||9/15/2003||$0||Eric Trimbur||Accounting|
|Contracting head trainer||7/4/2003||10/1/2003||$0||Heidi Trimbur||Admin|
|Hiring farm hand(s)||9/15/2003||10/15/2003||$150||Eric Trimbur||Admin|
|Build public awareness of PA||9/5/2003||12/31/2003||$1,000||Eric & Heidi||Marketing|