Business Plan Strategy
Company Presentation
The company is an importer and distributor of ceramic and porcelain flooring products, building supply, tools, and installation products. The company has expanded its product line in order to include kitchen and bath products, like kitchen cabinets, bathroom vanities, plumbing, sinks, countertops, accessories, and others.
Market Segmentation
The most important customer segments that the company targets are represented by contractors, homeowners, architects, designers, and builders. The most important customer segment is represented by contractors. This is because they are attributed the largest proportion of purchases on the construction industry. Residential and commercial construction projects require significant supplies of installation, kitchen, and bath products.
Competitive Analysis
There are several advantages that the company benefits from. Its strong relationship with business partners represents an important advantage. The company has strong reputation on the market, and customers prefer to purchase from them. The high quality of the company’s products is another issue of great importance to customers. In addition to this, the company provides smaller prices in comparison with its competitors.
The company also intends to develop a kitchen and bath center. This center is intended to to customers that want to purchase such products. The company’s competitors do not provide such assistance. Therefore, it is important to develop his strategy.
Marketing Strategy
Product Strategy
The company has expanded its products line. This allows to address several customer segments, with different needs and preferences. The company’s suppliers provide high quality products in accordance with its customers’ needs. In addition to this, it is important to identify market trends. This is because these trends reflect the interests the homeowners and have regarding construction materials. The company is also interested in developing its product line in order to increase its number of customers.
Pricing Strategy
In the construction industry, the price of the products used in this activity is very important. This is because contractors require large supplies of such products. Therefore, they are trying to find the smallest price for the highest quality. The company provides cost effective products. This means that these products of high quality can be purchased at smaller prices in comparison with the prices of competitors.
Promotional Strategy
The company’s promotional strategy refers to advertising on construction magazines, local newspapers, and direct mailing to companies in the construction business. In the case of products directed towards homeowners, the company intends to develop TV and radio ads. Several bonuses can be provided to customers that purchase several products from the company in order to increase demand for such products.
Distribution Strategy
In order to develop a successful strategy it is important that the company focuses on increasing the efficiency of its . This refers to identifying the purchasing trends, and the markets affected by these trends. Based on such aspects, the company can develop a supply chain management strategy that focuses on increased efficiency.
Financial Strategy
The company has introduced 12-month special financing on all its products. They have also started this year servicing commercial accounts with tile and stone restoration. The company projects a 30% increase in sales with the new kitchen and bath center and our .
Projected Income
Cash sales – $2,095,678
Liabilities – $38,078,456
Cash spending – $520,783
Other spending – $20,679
