Strategy and Implementation Summary
The following sections will outline the Strategy and Implementation plan for University Mopeds.
5.1 Marketing Strategy
The main marketing strategy that we will pursue will be to make potential customers aware of us via campus publications. We will advertise in such things as the Daily Emerald, Register-Guard, UO Student phonebook and the Greek directory.
5.1.1 Distribution Strategy
The method of distribution for this business would be to rent mopeds directly out of the shop. As far as getting the mopeds to Eugene, the main method would be to use a freight shipper such as UPS.
5.1.2 Marketing Programs
In order for University Mopeds to reach both the three and five year goals, one of the things that must happen is to get the idea of a moped as an acceptable means of transportation accepted. People must see others on mopeds around campus as well as the presence of advertising.
5.1.3 Pricing Strategy
We will price our products at a level that is affordable for the student and that provides financial substinence for the company and its owners. The mopeds will be priced at a rate of $50.00 per month. A discount will be offered to those who sign up for a school year lease (10 months). The accessories will be offered above cost, but at a reasonable level.
5.1.4 Promotion Strategy
This business will be successful only if the target market knows about University Mopeds and how affordable a moped rental can be. University Mopeds will advertise in the Daily Emerald. Another good source of advertising, which is also relatively inexpensive, would be in the Greek Directory. We would also try, at some point, some promotions such as free moped rental contests and free safety courses.
5.2 Sales Strategy
Since the main part of the business will come from customers ready to rent, there will not have to be much direct selling. We will use knowledgeable sales people to assist any customers who have doubts regarding renting a moped. The sales staff will know the benefits of the moped and explain this to the potential customer. Some customers will worry about the safety and whether or not they can ride a moped with no experience. We will service this customer with safety and instructional classes.
5.2.1 Sales Forecast
We predict that there will be variation in monthly sales forecasts, but we expect to reach 450 units in the first school year of operation. The variation will be due to lower sales when school is out of session.
|Year 1||Year 2||Year 3|
|Total Unit Sales||21,198||27,000||30,000|
|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||$116,589||$297,000||$335,000|
In order for University Mopeds to be successful, we must have attainable goals for the business. When looking to the future and for growing the business, we can look at these goals and milestones as an indicator of where the company has been, is going, and the path that it is taking. They can guide the future of the business. These are detailed in the Milestones section.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Open Shop For Business||7/1/2001||7/1/2000||$1,500||M. Cavanaugh||Management|
|Rent first moped||8/1/2001||8/1/2001||$50||Owner||Management|
|Average 150 units per month||6/15/2002||6/15/2002||$0||Sales Staff||Sales|
|Be debt free||7/1/2004||7/1/2004||$87,500||M. Cavanaugh||Management|