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Vans for Bands

Vans for Bands. A Promotional Plan. BA 4700 MARKETING MANAGEMENT. The Need is There. Musicians have several needs: Musical equipment (music stores) A place to practice (storage facilities or home) A place to record (recording studios) A CD or record (pressing plants)

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Vans for Bands

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  1. Vans for Bands

  2. A Promotional Plan BA 4700 MARKETING MANAGEMENT

  3. The Need is There • Musicians have several needs: Musical equipment (music stores) A place to practice (storage facilities or home) A place to record (recording studios) A CD or record (pressing plants) …AND A VEHICLE FOR TRANSPORTATION!!! • Expensive dealers • Trader publications.. a real nightmare • Very expensive rental companies • Neighbor down the street.

  4. The Need Is Met • Vans for Bands is a company targeting musicians, bands, and record labels. • Company purchases bulk amounts of used conversion and passenger vans at less than wholesale prices. • Using popular music sites that are independently owned, effective ads can be bought for reasonable prices. • Unique in its fundamental purpose whereas no other company is in business to serve this niche market.

  5. Problems: • Vans for Bands is new to market- small amount of resources available, need large amount of funds. • Company located hour away from downtown. • Entire physical inventory made up automobiles that suffer from rapid depreciation, need on-the-lot repairs, and maintenance. • Majority of target market under 21- difficult to finance and unable to afford. • Inefficiency of traditional print ads to reach the target audience. • Potential customers may live out of state.

  6. Our Current Situation • In 2004: Sales reached nearly $65,000 (56% in Q2) $10,200 in cash and liquid assets. • Average Vehicle Mid 90’s make Sold for $2,817 VC at $2,107 CM of $714

  7. Where Do We Want To Be • Quantifiable Objectives STL Market : 6,000 bands Regional non-major: 5,000 Chicago: 10,000 • 25% travel out of state / 75% play locally In Need: 1,500-4,500 locally Over 10,000 in the Midwest

  8. Where We Want To Be • Sales Objectives Currently earning a 31% ROI Seeking a 5% Midwest market share 5% X 10,000 = 500 buyers X $2,817 =$1.5 Million in Gross Revenues (Contribution of $357,000) 10% will purchase aftermarket warranty 50 X $200 = $10,000

  9. Where We Want To Be • Communication Objective Route NOT traditional print ads. EXPENSIVE!!!! Music community related websites Majority of bands use these as communication • MESSAGE We are musicians just like you. We understand your needs and we will provide quality vehicles at the lowest prices available. Treat everyone not as a customer, but as a fellow musician.

  10. Outflow of Cash • Renting of Land/Lot/Office Space: Rent/Month= $600 x 12months= $7,200 annually • Insurance- Vehicle & Medical: Vehicle Insurance= $12,000annually + $4,320 in medical= $16,320 • Dealer’s License Fees & Planning: Cost of License= $280+$150 Bond= $330 annually • Purchase with Average Repairs: Vehicle Purchases= 500 Cars x $2,100= $1,050,000.00 • Wages & Taxes: Gross Wages Annually=$62,400+ $6,864 in taxes= $69,264 • Advertising: Advertising= $1,000 + $500 + $2,000= $3,500

  11. Inflow of Cash • Gross Sales of Vehicles: 500vehicles x $2,817 per vehicle=$1,408,500 Gross Sales of Vehicles • Aftermarket Warranty Sales: 500 cars x 10% = 50 cars with warranty x $200= $10,000

  12. Profit Projections • Total Sales: $1,418,500 • Total Costs: $1,146,614 = Profit: $271,886

  13. 5 Year Implementation: • Serving the local Saint Louis Market. • This will be accomplished by: - ad space on: stlpunk, stlscene, myspace. - word of mouth - developing personal relationships with influential local bands - creating company merchandise (stickers, t-shirts, pins) - flyering at venues

  14. 10 Year Implementation • Serving Quad Cities, Louisville, Memphis, KC, Indianapolis, Columbia, Chicago. • Reach 5% total Midwest market(10,000 grouped musicians) • Accomplished by: - ad space on: myspace, friendster, (other national sites) marketing database technology: to target specific areas - delivery service used- regional cities

  15. The End.

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