Barnum Painters
Strategy and Implementation Summary
As stated before, the company will focus on greater service through better scheduling, project management, and greater alignment of personnel by providing profit sharing. The company is seeking to use the most up-to-date communications and scheduling technology between the project manager, foreman, suppliers, and operations personnel to insure that deadlines are met. Furthermore, the company will seek to create a reliable pool of individual painters to draw upon and eventually hire all the painters full time with salary and other compensation.
The company also plans to carry out an agressive marketing plan starting in year three. This includes literature, TV, radio, billboards and strategic alliances with other large contractors that do not have their own painting services. These companies include Marble Construction, Talbot Construction and Burns & Associates.
Marketing Strategy
The following sections detail the marketing strategy for Barnum Painters.
Promotion Strategy
The company will be engaging in an agressive marketing program that will include mailers, phone solicitation, TV, radio, billboards and other platforms to generate service awareness, and value proposition. However, as stated elsewhere, the company’s immediate goal will be to generate enough profit to pay for such expenses. The marketing plan will go into effect starting in year three. Prior to this the company will use more modest marketing tools such as mailer, promotion of word-of-mouth marketing, and ads such as in the Yellow Pages.
Pricing Strategy
The company will price each project based on time, material, and a flat 5-10% profit margin, depending on the segment. In the first year or two, depending on sales, the company will focus more on getting the contracts than on maintaining its pricing structure. Therefore, profit margin may be a little low for the first year or two.
Sales Strategy
Sales forecast is based on the existing client base of the three principal officers of the company and their ability to generate new sales based on their contacts. By bringing together Mr. Kruger’s commercial painting experience and Mr. Barnum’s residential experience, the company will be able to generate sales in both areas. Furthermore, the company’s growing marketing program will generate the growth the company needs to survive.
Sales Forecast
See Sales Strategy.


Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Commercial Buildings | $179,000 | $315,130 | $455,404 |
Residential Buildings | $157,500 | $165,375 | $173,644 |
Total Sales | $336,500 | $480,505 | $629,048 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Commercial Buildings | $40,480 | $78,783 | $100,189 |
Residential Buildings | $47,250 | $52,920 | $55,566 |
Subtotal Direct Cost of Sales | $87,730 | $131,703 | $155,755 |
Strategic Alliances
The company is currently in negotiations to form a strategic alliance with an undisclosed large contractor company. The agreement will be that Barnum Painters will provide all the painting needs that the contractor’s clients require and vice versa. The company will seek further alliances as situations develop. The company will seek only those contractors that have high standards of customer service and retention.