Strategy and Implementation Summary
Simply put, Grassroots’ strategy is to offer a service, demanded by customers, at a price that undercuts the competition. This will be accomplished, not by accepting below-market margins, but by leveraging technology, to help drive Grassroots’ costs down. Awareness regarding Grassroots’ services will be generated effectively and inexpensively to the specific target segments that Grassroots has focused on.
5.1 Competitive Edge
Grassroots’ competitive edge is the effective and efficient use of Wi-fi technology. Wi-fi, while a fairly recent technology, has been adopted by several different service providers as well as used for home-based networks. What provides Grassroots with a competitive edge is its efficient use of the technology. Grassroots has developed a proprietary antenna that allows for signal transmission over great distances with less signal loss. Additionally, Grassroots has significantly reduced administrative costs by having most administrative activities like marketing, sales, and service details administered via the Internet.
5.2 Marketing Strategy
As the name implies, Grassroots will be using a grassroots approach to developing awareness of the offered services. Grassroots will adopt a multi-pronged marketing approach:
- Advertising/postings with local retailers and commercial businesses. This will provide Grassroots with great visibility in the exact community that it operates in.
- Mailings. Grassroots will adopt a targeted mailing campaign to local residents.
- Website. Grassroots will leverage its website as a comprehensive and efficient source of marketing/sales information.
5.3 Sales Strategy
The sales strategy that Grassroots will adopt is based on developing an awareness of Grassroots’ service as a viable alternative to Cable and DSL within the community. The message used will be that you can receive broadband speed connections to your computer, wherever it may be, even your laptop on your front lawn, at a price that is a fraction of the current competitors’. This will be done with targeted advertising with local retail/commercial establishments in the area. Additionally, Grassroots will rely on mailings to get the word out. Lastly, Grassroots will have a website for marketing, sales, and administrative purposes.
5.3.1 Sales Forecast
Grassroots has developed a conservative sales forecast. Adoption rates of customers are fairly steady from one month to the next. A conservative approach has been adopted to minimize any external variables that may effect future operations.
Grassroots believes that it will experience extensive growth for several years for several reasons. The first is the general adoption of broadband connections which has been encouraging for the last several years. Another reason Grassroots believes their forecast to be accurate is it offers a viable, less expensive alternative to current broadband connections.
|Year 1||Year 2||Year 3|
|Monthly Internet Service||$36,584||$132,665||$211,443|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||$1,829||$6,633||$10,572|
Milestones are a very important aspect of a business plan. They provide concrete, achievable, yet lofty goals that the business must concentrate on. By targeting lofty goals, Grassroots ensures that it is aiming high, therefore it is more likely to achieve more. The milestones that Grassroots has chosen are very specific to the company and will be embraced by all employees.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Business plan completion||1/1/2003||2/1/2003||$0||Steve||Management|
|First 10 customers||1/1/2003||3/30/2003||$0||Steve||Sales|
|Enlargement of the network||1/1/2003||2/1/2004||$0||Steve||Operations|