Renovation Nation Final Presentation

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Marketing Management Final MBA Program - August 2009

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Renovation Nation Final Presentation

  1. 1. MARKETING PLAN Denise Cook | Allison MacDonald| Tara McKay | Brian Ramos | Betty Seed Marketing Management – Final Presentation
  2. 2. Our Company  Mission Statement Renovation Nation is a complete tool rental company providing products and services to meet the needs of homeowners and construction professionals. Our goal is to provide the highest level of service and expertise in the home improvement business. Through our Renovation Nation Foundation, we fund many local activities that support social and economic growth.  Value Proposition  Convenience  Value  Expertise  Objective  Serve as a resource to new homeowners, do-it-yourselfers, and contractors in the community
  3. 3. Market Trends & Growth U.S. general tool rental market generated $8.4b in 2008.  Growing Do-it-Yourself Market  Due to popularity of home improvement shows.  South-Atlantic Region  Rapid relocation to area.  North Carolina Real Estate Market  Today: Homeowners aren’t moving, they’re improving.  Tomorrow: Projected growth in 2012.
  4. 4. Target Market Homeowners Target Market Contractors
  5. 5. Primary Market Research  230 responses to 18 question survey  91% have completed at least one home improvement project  Problems homeowners experienced:
  6. 6. Competition  Home Depot  Lowe’s  True Value  Other (small independent retailers) Renovation Nation target: 2.5% of market share in area
  7. 7. SWOT Analysis Strengths Weaknesses  Well formulated strategy  Lack of name recognition in area  Proven management team  Start-up costs  Expertise  Fitting Northeast approach/model into new  Established delivery system demographic  Value compared to alternative  Lack of familiarity with Southeast market/culture Opportunities Threats  Serve additional customer groups (banks,  Competition from well known brands realtors, foreclosures)  Slower market growth  Enter new market or segments  Vulnerability to recession and business cycle  Expand product line to meet broader range  Price wars with competitors of customer needs  Competitors have superior access to channels  Complacency among rival firms of distribution.  Mergers, joint ventures or strategic alliances
  8. 8. Critical Issues  Hiring knowledgeable and enthusiastic staff.  Offering top of the line tools that are meticulously maintained.  Offering innovative communication technology to customers.  Provide competitive rates relative to big-box retailers.  Sub-contract only with Handymen who are licensed, reliable and reputable.  Create an aggressive marketing and advertising campaign to gain visibility.
  9. 9. What makes us different?  Interactive Website & iPhone App  In-home Consultants  Vetted Handymen  Delivery to Worksite  Partnership with Realty Company  “DIY” DVD’s & In Store Workshops  New Homeowner Packet  Community Involvement (Renovation Nation Foundation)
  10. 10. Five Year Financial Projection 2010 2011 2012 2013 2014 Revenue Gross Sales $ 885,000 $ 1,017,750 $ 1,170,413 $ 1,345,974 $ 1,547,871 Cost of Goods Sold $ 265,500 $ 305,325 $ 351,124 $ 403,792 $ 464,361 Total Net Revenue $ 619,500 $ 712,425 $ 819,289 $ 942,182 $ 1,083,509 Expenses Salary Manager (3) $ 123,000 $ 126,690 $ 130,491 $ 134,405 $ 138,438 Rental Clerks (6) $ 132,000 $ 135,960 $ 139,920 $ 143,880 $ 147,840 Mechanic (1) $ 37,000 $ 38,110 $ 39,253 $ 40,431 $ 41,644 Fringe (18%) $ 52,560 $ 54,137 $ 55,740 $ 57,369 $ 59,026 Total Salary Expense $ 344,560 $ 354,897 $ 365,404 $ 376,085 $ 386,947 Occupancy Cost $ 45,000 $ 46,350 $ 47,741 $ 49,173 $ 50,648 Promotion/Advertising $ 10,000 $ 12,000 $ 14,000 $ 16,000 $ 18,000 Inventory Replacement $ 2,655 $ 6,107 $ 10,534 $ 16,152 $ 23,218 General & Administrative $ 53,100 $ 61,065 $ 70,225 $ 80,758 $ 92,872 Operating $ 132,750 $ 152,663 $ 175,562 $ 201,896 $ 232,181 Total Net Expenses $ 588,065 $ 633,081 $ 683,464 $ 740,064 $ 803,866 Net Income/Loss $ 31,435 $ 79,344 $ 135,824 $ 202,118 $ 279,643
  11. 11. Break-even Analysis $1,200,000 $1,000,000 Break Even Point $771,964 $800,000 $600,000 $400,000 $200,000 $- 2010 2011 2012 2013 2014 Revenue Fixed Costs Total Costs
  12. 12. Questions & Answers

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