Undergrad School Project - Southern Distributors Final 1


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This is a marketing plan for Southern Distributors, that I did with a group for a senior level marketing class.

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Undergrad School Project - Southern Distributors Final 1

  1. 1. <ul><li>John Cerniglia </li></ul><ul><li>Christina Dick </li></ul><ul><li>Andrea Gillis </li></ul><ul><li>Chelsea Hobson </li></ul><ul><li>Tom Spadora </li></ul>
  2. 2. Background
  3. 3. 1920’s Louis and Mary Cohen open a grocery store in Church Hill 1940’s Grocery store begins to carry a few hard to find items 1954 Grocery store was sold and Southern Distributors is created 1960 Southern Distributors become a corporation 1966 Frank Cohen began to work summers at Southern Distributors 1967 The state of Virginia took the location using the power of eminent domain 1968 Southern Distributors moves to new location across The Manchester Bridge 1968 The state of Virginia takes this location also 1970 Frank Cohen graduates from Va. Tech and begins working in the family business 1970 Southern Distributors hits the high point of business 1973 Mr. Cohen’s grandmother began transferring shares of stock to him on a yearly basis 1985 Mr. Cohen’s grandmother passes away leaving the remaining stock and building to his father 2002 Mr. Cohen receives his stocks from his father’s will 2007 Southern Distributors, Inc. moves to it’s present location 2010 Mr. Cohen seeks advice from VCU’s incredible marketing group
  4. 4. Current Situation
  5. 5. Problem
  6. 6. Problem <ul><li>Southern Distributors , Inc. is losing revenue due to the loss of current accounts because of corporate buyouts </li></ul><ul><ul><ul><li>How does Southern Distributors , Inc increase their revenue on a limiteed budget with limited resources </li></ul></ul></ul>
  7. 7. SWOT Analysis
  8. 8. SWOT Analysis <ul><li>Strengths </li></ul><ul><ul><ul><li>Ability to meet customer’s needs </li></ul></ul></ul><ul><ul><ul><ul><ul><li>No minimum order quantities </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Low markups </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Variety of shipping options </li></ul></ul></ul></ul></ul>
  9. 9. SWOT Analysis <ul><li>Weaknesses </li></ul><ul><ul><ul><ul><ul><li>Inefficient turnover of merchandise </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Classified as small business </li></ul></ul></ul></ul></ul>
  10. 10. SWOT Analysis <ul><li>Opportunities </li></ul><ul><ul><ul><ul><ul><li>Expansion within the drugstore industry </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Expansion of online market </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Creation of promotional media </li></ul></ul></ul></ul></ul>
  11. 11. SWOT Analysis <ul><li>Threats </li></ul><ul><ul><ul><ul><ul><li>Larger distributors who have more bargaining and buying power </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Loss of accounts due to the privately owned businesses being bought by large corporations that supply themselves </li></ul></ul></ul></ul></ul>
  12. 12. Core Competence
  13. 13. Core Competence <ul><li>Personal customer service and their willingness to provide each customer with customized assistance </li></ul>
  14. 14. Market Strategy
  15. 15. Marketing Mix
  16. 16. Marketing Mix <ul><li>Product </li></ul><ul><ul><ul><ul><ul><li>Southern Distributors , Inc. carries a wide range of products </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Low cost, everyday use items </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Little buyer remorse </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cosmetics </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Household appliances </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Seasonal decorations </li></ul></ul></ul></ul></ul>
  17. 17. Marketing Mix <ul><li>Price </li></ul><ul><ul><ul><li>Wholesale and Retail pricing </li></ul></ul></ul><ul><ul><ul><li>Contracts with suppliers allows Southern Distributors , Inc. </li></ul></ul></ul><ul><ul><ul><li>Pricing makes them highly competitive in the online market </li></ul></ul></ul>
  18. 18. Marketing Mix <ul><li>Promotion </li></ul><ul><ul><ul><li>Southern Distributors, Inc. currently has no form of promotion </li></ul></ul></ul>
  19. 19. Marketing Mix <ul><li>Distribution </li></ul><ul><ul><ul><li>Southern Distributors, Inc’s distribution channels allows them to increase the potential of acquiring customers </li></ul></ul></ul><ul><ul><ul><ul><ul><li>UPS </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Personal Delivery </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Drop Shipping </li></ul></ul></ul></ul></ul>
  20. 20. Target Market
  21. 21. Target Market <ul><li>Southern Distributors , Inc’s target market is split up into 2 different catagories </li></ul><ul><ul><ul><li>1. Wholesale Target Market </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Drugstores </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Pharmacies </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Convenience Stores </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Variety Stores </li></ul></ul></ul></ul></ul><ul><ul><ul><li>2. Retail Target Market </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Anyone looking for certain products at a discount price </li></ul></ul></ul></ul></ul>
  22. 22. New Market Strategy
  23. 23. Recommendations
  24. 24. Ebay & Amazon.com <ul><li>Allows merchandise to be seen by millions of people around the world </li></ul><ul><li>Allows Southern Distributors , Inc. to move merchandise out of the warehouse that would otherwise be left to be sold to close-out companies or just sit in place and age </li></ul><ul><li>Allows Southern Distributors , Inc. to have a second “location” and promote their products </li></ul>
  25. 25. Constant Contact .com <ul><li>Easy to use email database system where a company can email mass messages, surveys, and events to clients both current and prospective </li></ul><ul><li>Allows Southern Distributors , Inc. to maintain contact with their current clients and build better relationships that will in turn bring in more orders and revenue </li></ul>
  26. 26. Catalog <ul><li>Cheap and easy to create </li></ul><ul><li>Allows Southern Distributors , Inc. to provide both prospective and current clients and hard copy of merchandise that is stocked and/or able to be obtianed </li></ul><ul><li>Gives prospective clients more information at the initial “meet and greet” </li></ul>
  27. 27. Financial Position
  28. 28. Financial Position <ul><li>Last sale to Ukrop’s in March </li></ul><ul><ul><ul><li>April sales $47,000 less than prior month </li></ul></ul></ul>
  29. 29. Financial Position Income Statement US-GAAP Southern Distributors , Inc. 2010 (Last 3 Months) Revenues $226,597 Cost of Goods Sold $155,616 Gross Profit $70,981
  30. 30. Update
  31. 31. Update <ul><li>Re-creation of Ebay Store </li></ul><ul><ul><ul><li>1st item sold on March 18, 2010 </li></ul></ul></ul><ul><ul><ul><li>$2,100 netted after expenses </li></ul></ul></ul><ul><ul><ul><li>Extremely profitable and able to figure exact profit margin </li></ul></ul></ul>