Strategy and Implementation Summary
Anywhere Remodeling, Inc. will change its focus to differentiate their services from fly-by-night contractors, improve its sales and customer service functions and increase the amount of work received from past clients and referrals. The marketing challenge is to improve the company’s image, allowing estimators to price work more profitably, reduce or eliminate the amount of work competitively bid for, and to raise the perceived value the client gains by hiring Anywhere Remodeling.
5.1 Sales Strategy
1. Anywhere Remodeling needs to sell the company, not the price.
2. Anywhere has to sell its quality and service. The actual remodeling is like the razor, and the support, service, design and hand holding are the razor blades. We need to serve our customers with what they really need.
The Yearly Total Sales chart summarizes an ambitious sales forecast. Anywhere expects sales to increase significantly from $750,000 last year.
5.1.1 Sales Forecast
The important elements of the sales forecast are shown in the Total Sales by Month in Year 1 chart. Total sales will increase substantially over the next several years.
|FY 2009||FY 2010||FY 2011||FY 2012||FY 2013|
|Direct Cost of Sales||FY 2009||FY 2010||FY 2011||FY 2012||FY 2013|
|Sub Contractor Costs||$464,941||$523,916||$583,449||$637,734||$693,771|
|Permits & Licensing||$3,385||$3,554||$3,732||$3,919||$4,115|
|Sales Costs w/commision||$8,369||$9,730||$10,835||$11,844||$12,884|
|Subtotal Direct Cost of Sales||$715,885||$805,135||$895,541||$978,094||$1,063,327|
5.2 Marketing Strategy
The marketing strategy is the core of the main strategy:
- Emphasize quality and service.
- Build a relationship business–treat the customers like members of the family.
- Take care of the customers for the rest of their life.
5.3 Competitive Edge
Anywhere Remodeling, Inc.’s competitive edge is its reputation in the community. Over the past five years, Anywhere has won a number of awards for quality and design, both nationally and locally. Its satisfied customer base continues to expand and spread the word.
The following table lists important program milestones, with dates and persons in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The most important programs are the sales and marketing programs listed in detail in the previous topics.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Business Plan||10/1/2008||10/1/2008||$500||Bob Hammer||Owner|
|Community Involvement Program||2/15/2008||2/15/2008||$5,000||Bob Hammer||Owner|
|Sales Brochure||3/1/2008||3/1/2008||$1,800||David Designer||Sales|
|Refinance Short Term Debt||3/1/2008||3/1/2008||$0||Bob Hammer||Owner|
|New Computer System||7/15/2008||7/15/2008||$8,000||Bill Sales||Administration|
|Thank You Cards||1/15/2008||1/15/2008||$250||David Designer||Sales|
|Pardon the Dust (door hangers)||1/15/2008||1/15/2008||$200||David Designer||Sales|
|New Automatic Nail Guns (2)||1/1/2008||1/1/2008||$3,200||Steve Field||Production|
|How to Pick a Contractor Seminars||6/1/2008||6/1/2008||$1,000||Bob Hammer||Sales|