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Redhawks Consulting

Redhawks Consulting. D-Bamboo Home & Garden Shop. Key Concern. To ensure the long-term surviva l of D-Bamboo Home and Garden Shop. PESTEL Analysis. Porter’s 5 Forces. New Entrants Rumor of new company entering market. Suppliers Customers turn into suppliers

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Redhawks Consulting

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  1. Redhawks Consulting D-Bamboo Home & Garden Shop

  2. Key Concern • To ensure the long-term survival of D-Bamboo Home and Garden Shop

  3. PESTEL Analysis

  4. Porter’s 5 Forces • New Entrants • Rumor of new company entering market • Suppliers • Customers turn into suppliers • Several local suppliers are used • Large network of suppliers • Equipment from larger hardware retailers • Buyers • Willingness to travel significant distances • 60% Working women • 15% Retirees • 10% Expatriate workers • 10% Teenagers • 5% Farmers • Industry Competitors • New shop 1 km away • New shop entering shopping mall • Larger competitors offer similar products • Substitutes • Self-grown • Home gardens

  5. SWOT Analysis

  6. Marketing Mix

  7. Monthly Sales & Expenses

  8. Estimated Financials

  9. Identification of Alternatives • Relocation • Major IMC • Limited IMC • Providing additional services • Price increase • Retreat • Stay the same • Customer Incentive

  10. Alternative 1:Relocation • $80,000 Initial Cost • Depreciated over 10 years = $8,000 • $5,000annually • 20% increase • $81,000 per year

  11. Alternative 2:Major IMC • $40,000 Expense • 40% (Conservative) • $189,600 per year

  12. Alternative 3:Limited IMC • Three times current expense • $2,250 Expense • 7.5% (Average) • $33,338 per year

  13. Alternative 4:Additional Services • $100,000 Total Expenses • 35% Markup on high prices • $135,000 Revenue • $35,000 per year

  14. Alternative 5:Price Increase • 7.5% Decrease sales volume • 5% Sales increase • ($12,582)

  15. Alternative 6:Retreat • Decreasing equity • Potential for growth • Not feasible

  16. Alternative 7:Stay the Same • Decreasing profits • Not feasible

  17. Alternative 8:Customer Incentive • $47,000 Discounts paid • $51,700 Additional revenue • $4,700 per year

  18. Feasibility • Relocation • Major IMC • Limited IMC • Providing additional services • Price increase • Retreat • Stay the same • Customer Incentive

  19. Weighted Average Competitive Strength Analysis

  20. Budget • $55,000 Cash Reserve • $110,000 Credit Available • $30,000 Cash • $70,000 Credit

  21. Recommendations

  22. Phases of Implementation • Customer Incentive Program • Relocation • Integrated Marketing and Communications Campaign • Milestone Review • Long-term Planning

  23. Phase I:Customer Incentive Program • Time Frame: Upon approval of plan • For every $100 spent • 10% discount on next purchase • Encourages return of customer

  24. Phase II:Relocation • Time frame: 0-12 months • Ideal location: • Close to the current location • Availability of a green house • Easily seen from street • New sign installation

  25. Phase III:Limited Integrated Marketing & Communications • Time frame: The move - Ongoing • Use of Flyers and posters • Internet exposure • Increase in technology • Use social media

  26. Phase IV:Milestone Review • Time Frame: 12 months - Ongoing • Periodic Reviews • 3-6 month intervals • Criteria • Customer Satisfaction • Owner Perception • Profitability

  27. Phase V:Long-Term Planning • Time Frame: 5 years + • Expansions as Budget allows • More extensive Marketing • Additional Services: • Commercial Landscaping • Science/Biology Education

  28. Timeline Months 0 3 6 9 12 +

  29. Spending Summary

  30. Revenue Summary

  31. Redhawks Consulting D-Bamboo Home & Garden Shop

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