Marketing plan (extremely long)

skittles15 · July 26, 2005

Hello again and how is the board :lol6 I found a moment of free time once again after getting this here marketing plan mostly done. Now what I need is some honest feedback (do not feel obligated to read it). for those who want to and have gone through this process before any feedback would be great. I know some of you may not agree with my methods or pricing (this was just to please teacher, if I were to go through with everything everything would be accounted for quite differently (prices and whatnot)). soooo anyways thanks again and I hope the board is doing swell n such. I should be able to get on a little more after this week (classes are over).

Executive Summary

Traeger Industries Window Tinting provides a product and a service to the consumer. The product is window tint. The service is applying it to the glass itself. The process is quite complicated and only few have it mastered. The primary target market is 16-45 year olds looking for a better look for their car, home or business. The secondary market is 25-60 year olds looking to reduce heating costs and save the interior of their vehicle, home or business by blocking out ultraviolet rays.

The trend of automobile aftermarket accessories has show significant increase. In 2001 retail sales were $14 billion. The projected sales for 2006 are $18 billion. The market is flourishing and there has never been a better time to jump in. The home/commercial window shade market although is not nearly as promising as the automobile market. There is only an average of 4% growth per year, yet there are no competitors the area Traeger Industries Window Tinting will be involved in. The business will pride itself in its meticulous work. A vehicle will not leave the bay until both the tinter and the owner of the vehicle are satisfied. The crew will not leave a business/house until both the owner and crew are satisfied. This will set us apart from the competition.

The business will keep customers in the highest regard with a no-pressure sales technique. We want the customer to be happy; this in turn creates good word of mouth advertising. There will be a 15 day money back guarantee if the customer is not happy with the tint. There will also be lifetime warranties on all window tint carried. The business will promote the key benefits of window tint to inform the customer about the features, this will make them seem as if they are getting more than just a look for their car. Traeger Industries Window Tinting will position itself as a product and service that cuts down heating and cooling prices, saves furniture and interiors from the sun?s UV rays and adds a unique look to your vehicle, home or business.

Price is dependant upon what type of tint the customer chooses. Price for the low line will be $190.00 for the back three windows of a two-door car, $240.00 for all windows (excluding the windshield), $230.00 for a four-door car?s back 5 windows, $280.00 for all (excluding the windshield). Price for the middle line will be $50 more, price for the High line will be $125.00 more, and price for specialty tint will depend upon techniques needed to apply and wholesale cost. Price for home and business depends on the type chosen once again. For the low line price will be $6.50 a square foot, the middle line will be $1.50 more and the high line will be $3.25 more. Safety film also depends upon application method and wholesale cost. These prices are slightly above the competition?s but in the first three months the business will run ads with local newspapers giving the customers 15% off their purchase bringing the business? price below the competition?s. This will then get word of mouth advertising out to where the business can discontinue the ads.

Situation Analysis

Internal Environment

? Current Marketing Goals: Promoting will be done simply. Traeger Industries Window Tinting will have ads in ?The Add Sheet? ?The Daily Iowan? and ?The Cedar Rapids Gazette?. During the first three months of operation these ads will have a 15% discount coupon that can be redeemed on most purchases. After the three months the business will not offer many more discounts except during times of slow business, such as winter. Traeger Industries Window Tinting will expect a net profit of $15,000 in the first year. The business also expects to get at least 30% market share in the first year.

? Marketing goals after the first year are a net profit of $60,000 due to more households and businesses hearing of Traeger Industries Window Tinting?s work, getting 50% of market share and becoming known as the elite window tinting center for the Iowa City/Coralville/Cedar Rapids area. Three to five years later the business would open another location near the Sioux City area.

? The business will strive to make itself stand apart from the competition via care used in each and every installation. The customer will receive a call within three business days to be sure they are satisfied with their installation. Customers will be treated with dignity and respect regardless if they drive a Ford or a Ferrari. This mentality will make customers want to come to Traeger Industries Window Tinting rather than the competition.

? Mission Statement: To provide the best service of window tinting/shading solutions in the Iowa City/Coralville/Cedar Rapids area while keeping customer relations high.

Customer Environment

? Within the first few months Traeger Industries Window Tinting will attempt to gain market share in the Iowa City/Coralville/Cedar Rapids area. After gaining market awareness and a decent market share the business will attempt to pull in customers from nearly 100 miles away. In three to five years the business hopes to open another location near Sioux City, Iowa.

? The customers of Traeger Industries Window Tinting tend to be, but are not limited to, the type who are worried about the rising cost of heating and cooling and want a new look. They tend to want to spend money to save money in the long run while gaining privacy and a sleeker look.

? Customers who are worried about the rising costs in heating and cooling are willing to pay more for a better application. They understand the long term benefits a good application can have. They also are the type who prides themselves in the way their house looks. They tend to want to ?show off? what they just had installed.

? Customers who purchase the installation and tint itself get many things besides the benefits. They get a friendly crew who will make the customer feel comfortable and reassure them that all is well. They will get a lifetime warranty on the tint, they get a 15 day ?Love it or Loathe it? guarantee, and they get a phone call within three days to see how everything went and how they like the look and feel.

? Traeger Industries Window Tinting will only operate by phone or walk-in service. Customers must set up an appointment and give the business ample time to finish the application. Customers must also put 10% down at the time of appointment to ensure the customer will be present at the time noted.

? Customer demand is extremely high during the spring and summer seasons and tends to slow down during the fall and winter months. Traeger Industries Window Tinting will place ads in newspapers of the area during these months to educate the customer on the benefits of tint in the winter. This method will draw in more customers during these months generating more ?out of season? revenue.

? Customers may not choose Traeger Industries Window Tinting if they do not see the need for such benefits. They also may not choose the business because the competition will be less expensive. The business will bank on word of mouth advertising to get over these hurdles. Customers will educate their friends and colleagues on the benefits of tint which will turn some ?non-believers?

Demographics

? Johnson County

o Population ages 18-44 60,165

o Population ages 25-64 54,393

o Median Age 28

o Number of Households 44,080

o Number of Families 23,582

o Median Income

 Males $36,279

 Females $29,793

 Households $40,060

 Families $60,112

 Per Capita $22,220

? Linn County

o Population ages 18-44 77,447

o Population ages 25-64 100,451

o Median Age 35

o Number of Households 76,753

o Number of Families 50,349

o Median Income

 Males $38,525

 Females $26,403

 Households $46,206

 Familes $56,494

 Per Capita $22,977

External Environment

? As of now there are many competitors in the area. These companies though focus more on quantity rather than quality. None of them have follow up phone calls or appointments and are rather reluctant to offer a 15 day ?Love it or Loathe it? guarantee. They are also reluctant to honor the manufacturer?s warranties because they see it as a waste of time for their business. Traeger Industries Window Tinting will set itself apart from these competitors by extremely high customer value. Nothing is too big or too small for the customer.

? The aftermarket automotive accessory market has been in a steady upward climb the past four years. On average the market has gained one billion dollars per year. Projected for 2006 is an 18 billion dollar market. The window shade and blind market for home or business on the other hand is not too bright, experiencing only an average of 4% growth per year. The estimated 2006 market is 3.2 billion dollars, just a bit better than the 3.1 from 2005. This market can easily be overcome by educating the consumer and getting good word of mouth reputation.

? Although the market is slow growing, households will be able to see the benefits of home and business tint. With the realization of these benefits Traeger Industries Window Tinting will be able to get almost all market share in the area because other businesses do not see it worth their time to pursue home and business tinting.

? Customers will purchase tint with disposable income. They still see it as something they do not need but would be nice to have. Once the benefits are noticed these customers will tell others about their lower heating and cooling costs and other benefits associated. Tint will then become a must have product.

Competition Analysis

? There are currently four tint shops operating in the Iowa City/Coralville/Cedar Rapids area. Many companies were called and all but one was reached. When reached each company was asked for a quote on all windows except the windshield on a 1995 Mitsubishi Eclipse 2 door coupe and for residential 14 two foot by two foot windows. Only one is operating in Coralville and currently none are in Iowa City. The other three tint shops in Iowa City have gone out of business due to undercutting the competition and taking a loss on every tint application.

o *******?This company has been unreachable, although they do say on their voicemail to leave a message and they will return the call. A message was left on 7/22 and the company has yet to return the call. This type of customer service will k!ll a business. Traeger Industries Window Tinting will always be sure to answer the phone during business hours.

o ********?This company took three phone calls to reach. Once contact was made they gave quotes for the car. The price was $185 with their least expensive tint and they charged $5 per square foot for the 14 windows. Their customer service seemed as if they were hurrying the customer along. They did not seem to want to talk to the customer but rather just do the work and be done with it. Traeger Industries Window Tinting will always be sure to treat the customer as number one.

o ********?This company was reached on the first call. Their price is $180 for the car and $225 for the 14 residential windows. They also offered a deal if the car and the home were done at the same time, their price was $375 for both. This type of customer service is good but can hurt a business at the same time. All customers then will be expecting a discount. Traeger Industries Window Tinting will hardly ever offer discounts; only in extreme cases such as a 20,000 square foot business will cost less per square foot than 14 windows in a house.

o ********?Out of business. This business offered extremely low prices to hope to gain market share but it backfired on them. All the tint companies that went out of business adopted this market strategy and competed with all the other lower prices.

o ********-Iowa City?Out of business due to low price market strategy.

o ********?The tinter recently retired causing them to lose their tinting capabilities. When asked if they were going to get another tinter they said it was doubtful.

o ********?Out of business due to low price market strategy.

o ********?This business will be the one who will compete the most with Traeger Industries Window Tinting. They offered $200 to tint the car and $10 per square foot to do the 14 residential windows. This company uses Llumar tint which is what Traeger Industries Window Tinting will also be using. Although they only tint on Thursdays. With only Thursdays being their tinting days Traeger Industries Window Tinting can take most business away from them. Their customer service is great. The man on the phone was quite courteous and informed me on different types of tint and did not seem interested in upselling. Although they do not offer a ?Love it or Loathe it? type warranty of any kind nor do they give a three day call back. Traeger Industries Window Tinting can easily drive them out of business by being open seven days a week, offering the other warranties and call backs.

SWOT Analysis

Strengths

1. The business will carry all types of tint, from lower end products up to extremely high end products catering to all types of customers.

2. The business will keep customer relations high with three day call backs, the ?Love it or Loathe it? 15 day warranty and a three day call to the customer to be sure they are happy with their installation.

3. Each customer will be treated the same whether they are getting one window retinted or having a 15,000 square foot building tinted.

4. The business will make sure the customer gets what is best for his/her application. No pressure will be put on the customer to choose a more expensive tint but all options will be brought up to the customer. If the customer gets more expensive tint it is because they chose it.

Weaknesses

1. The business has a lot of competition in the area.

2. Finding worthy employees will be a difficult task due to this service being demanding, needing an extreme eye for detail and having the ability to handle tint without ruining it.

3. Most customers may choose not to go with Traeger Industries Window Tinting because we are a new company. They may decide to go with the competition because they know what their work looks like.

4. If the business cannot find worthy employees it may become overwhelming for the owner.

Opportunities

1. The competition currently does not have very high customer relations. They tint the car or home and collect the check and leave never to speak again. Customers will come to Traeger Industries Window Tinting just for its customer service.

2. There are many glass companies in the Iowa City/Coralville/Cedar Rapids area. Traeger Industries Window Tinting could become their foremost tinting reference increasing business.

3. There are many automobile dealerships in the same area. Traeger Industries Window Tinting could become their foremost tinting company. They would sell it to the customer for nearly $200 more than what the business would charge then the business would pick up the car, tint it and bring it back. Traeger Industries Window Tinting would get a lot of business this way without ever having to deal with a customer.

4. The competition does not do the greatest work in the area. There is contamination and wrinkles in most cars (these are things that should not be in the tint according to the industries standards). Traeger Industries Window Tinting will be the source in the area that has the ?perfect? tint application.

Threats

1. With the low start-up costs window tinting shops are opening everywhere. Most of them die out quickly and send more business to other businesses due to poorly done tint applications. These shops tend to steal a lot of business from others though due to their $99 dollar tint applications.

2. More and more vehicles are coming with privacy glass standard. This glass does not have any of the properties tint has except for darkening the glass. It does not block out heat or UV rays. The customer does not know this though. The business will run ads describing what they think they know about the ?factory tint? on their vehicles. This may bring in more business.

3. Rising costs in the tint industry may cause a rise in the business? prices. This will reduce demand and cause less and less customers to choose Traeger Industries Window Tinting. The business will counter this by taking less of a profit on each job done. Raising the prices insignificantly.

4. The economy is still in a slump. This may cause less people to see the need for tint. The business will counter this by pressing the lower heating and cooling costs. More people will then use their own logic to see if tint is an applicable solution for them.

Consumer Behavior

Consumers tend to be a lot busier these days. Most people are working forty hours per week and still trying find time for their children. Traeger Industries Window Tinting will be able to work around this by having the customer drive to the shop then giving them a ride wherever they need to be, the business will have the vehicle done before they get out of work. If it is not done by then we will offer a discount. For homes the business will work around their schedule if they wanted to be in the house while we are working. Otherwise the business will go in while the customer is not home, with consent of the owner, this way the customer does not feel as if they are being bothered by not having a car or home for a few hours.

Marketing Strategy

? Segmentation/Target Market

o The primary target market is 16-45 year olds looking for a better look for their car, home or business. Traeger Industries Window Tinting will focus on the younger segment though due to them being more apt to purchasing tint for the look. They also seem to have more disposable income than a man with two children.

o The secondary market is 25-60 year olds looking to reduce heating costs and save the interior of their vehicle, home or business by blocking out ultraviolet rays. This segment contains those who know what they want from tint. They do not have much disposable income but know what the benefits of tint are and know they will save money in the long run.

o The business will also target those who received a poor tint application by the competition. The business will charge a removal fee on top of the application fee. This market has no age range and is rather random.

? Positioning

o The business will establish relationships with glass companies, automobile dealerships and property owners. This will bring a lot of business without having to deal with many customers. The business will also develop relationships with their customers. Customer satisfaction is the number one priority.

o The business will position itself as a money saver, a solution to rising heat and cooling costs. The business will also position itself as a look enhancer. The younger demographic mostly will want just the look and not care about the benefits. The business will try to keep a gentle balance between a money saver and look enhancer by offering lightly shaded tint to those who do not want dark windows but want to save money. On the other hand the customers who want just the look and do not care about the benefits will be offered the lowest line of tint. This tint is not the best for blocking out UV rays or heat but does enhance the image.

o The business will also position itself as the elite tint shop in the area. It will position itself against competitors by its high customer service and its meticulous work. It will also position itself away from the competition by offering to retint a vehicle that has received a poor tint application from the competition.

Marketing Mix

Product

? The product is window tint and window tint application. It is a fine balance between a product and a service. The service is no good without a good product and the product is no good without good service.

? The window tint will be of the highest quality but with separate lines. This high quality tint also comes with a low line, middle line, high line and specialty lines. These will cater to all customers. The low line has little benefits besides a look enhancement, the middle lines have some features and a look enhancement, the high lines have many benefits and still a look enhancement and the specialty lines have almost all benefits including: look enhancement UV ray blocking, energy blocking (heat and coldness), and in some cases safety tint (can withstand a shot from an artillery cannon).

? The product itself will be Llumar and Huper Optik. These two types of tint are the top of the line but have smaller lines to compensate for the look enhancement only customer. Llumar has been in the tint business since 1982 and specialized in metallized tint. Metallized tint does a great job of blocking out heat and holds up very well over the years. Huper Optik is a specialty tint. They specialize in ceramic tint which blocks out almost all heat without disrupting visual clarity. They also make safety tint that is anywhere from eight millimeters to thirty millimeters thick. This tint has all the properties that the ceramic line does but will withstand a catastrophic explosion or natural disaster. This tint is rather difficult to install and is rather expensive itself.

Price

? Price for the low line will be $190.00 for the back three windows of a two-door car, $240.00 for all windows (excluding the windshield), $230.00 for a four-door car?s back 5 windows, $280.00 for all (excluding the windshield). Price for the middle line will be $50 more, price for the High line will be $125.00 more, and price for specialty tint will depend upon techniques needed to apply and wholesale cost. Price for home and business depends on the type chosen once again. For the low line price will be $6.50 a square foot, the middle line will be $1.50 more and the high line will be $3.25 more. Safety film also depends upon application method and wholesale cost.

Place

? Traeger Industries Window Tinting will be located on the corner of Dubuque and Market street in Iowa City. There is an old auto shop at this location that has since gone out of business. This location will be great for business due to its closeness to downtown. This location also has a two car bay so it is possible to be working on two cars at once; also it has a decent size parking lot where the business can put customer?s vehicles until it is time to tint them.

Promotion

? In the first three months of operation Traeger Industries Window Tinting will offer a 15% discount on all applications through local newspapers and ?The Add Sheet?. After these three months the business will offer random promotions such as:

o Bring us cookies and get 5% off your total

o Answer this riddle and get 5% off your total

o Refer your friend and get $10 back

o Bring us a paper you received an A on and get 10% off (only applicable to students)

These promotions will not be offered very often, mostly when business is slow. For the most part Traeger Industries Window Tinting will not offer discounts after the first three months but these promotions keep the customer thinking that we are fun and fun to deal with.

? After the first three months of the discounted promotions the business will move to radio and even television. The business will not be promoting a discount of any kind but this median will be used for market awareness.

Key product features include:

o Blocking out 99.9% of UV rays saving furniture and interiors of vehicles from sun damage

o Blocking out nearly 60% of heat on average therefore reducing cooling costs

o Keeping in nearly 55% of heat on average therefore reducing your heating costs

o Enhancing the image of your vehicle, home or business by darkening the glass. This also adds privacy so the customer is free to do what they choose without being seen.

? The product will also depend immensely upon word of mouth advertising. This method of advertising is the least expensive yet also the most effective. This method can also break a business. The business will operate upon the theory of ?Do a good job the customer tells one person, do a bad job the customer tells 100 people?. This is why Traeger Industries Window Tinting will strive to be the best in the business not only in application but also in customer service.

Marketing Implementation

? Specific Activities?The business will begin small and gradually work its way up into the mainstream. The business will form alliances with local glass companies, automobile dealerships and property managers to increase sales. The business will also do a great deal of informing the customer on what tint actually does for the vehicle, home or business. Many customers do not know about the benefits of tint, it will be the business? duty to inform them.

? Calendar?The business will not hire anyone within the first three months. After those three months the business will begin to look for another tinter for part time help when it gets too overwhelming for the owner. Once the business becomes the elite tinting company in the area the business hopes to branch out to the Sioux City area.

? Staffing?Chris Traeger will be the owner and tinter of Traeger Industries Window Tinting. He will also be in charge of all marketing activities but will be open to employee?s suggestions. Chris will also be the person who is dealing with the customers to ensure a high quality customer service. After one year the staff will be Chris and three employees who can change their shifts throughout the week as long as somebody else has it covered for them. This flexibility will make people want to work with Traeger Industries Window Tinting.

? Cost?The business? marketing budget is relatively low. A few ads in each local newspaper and perhaps a radio ad. After the first year a television commercial may be feasible but the business will not focus too heavily on its own promotion. The business will also pay employees 25% of each vehicle they tint and $10 an hour for all commercial or home installation they do. This will keep the employees happy and in good spirits but will also bring in enough capital for the owner. Employees will not be brought on until market awareness has been created.

? Break Even Analysis?$4,095 (supplies) + $1500 (custom tint) + (rent) + (insurance) + $500 (miscellaneous) + $500 (advertising) + $30,000 (wages?2 employees ($15,000 per year each))

Evaluation and Control

? The business will make phone calls to every customer it has three days later to see if they are pleased with their installation. This will do two things: Tell the business what it is doing wrong and keep customer relations high.

? The business will also ask customers how they found out about Traeger Industries Window Tinting. This will provide valuable feedback about what marketing techniques are working and what are not.

? The business will be sure the customer is pleased with the end result before the vehicle leaves the shop or the crew leaves the home or business. The employees will be trained on how to handle these situations and keep the customer happy at the same time.

? The business will mail out thank you cards to all customers, even if they chose to go with the ?Love it or Loathe it? warranty. On the ?Love it or Loathe it? cards it will be a sorry we could not satisfy your needs comment and on the back will be a short survey to gather valuable information to keep from these warranties being collected.

Thanks for your input

Chris

Devil with bad attitude · July 26, 2005

I wasn't going to read this but I'm glad I did now.

Did you pay for that to be done?

Anyway my 2c.

I think that if you believe your competition will just lay down and die and let you come in without a fight because you are now going to offer customer service where they perhaps don't, then I think you are sadly mistaken.

Especially when your local competitor you say is going to sell the same LLumar brand of run of the mill film products.

Your lack of employees with the commitment to stay with you when you do get them has not been taken into account. As employees expect some amount of theft beit physical stock loss, stolen leads or lost work behind your back.

It takes a very, very special tinter to put out the work you are hoping to cater for and at that wage you propose, you aren't going to get anything more than a monkey without his organ grinder.

Your lifetime warranty direction indicates to me your business plan lacks some credibility. So you are going to BS like the rest of the industry hey?

Your "love it or loathe it" guarantee is ridiculous because no matter how good you think your installs are going to be , consumers will nit pick everything little thing speck especially if they know a followup call is coming in 3 days.

Quote..... "and in some cases safety tint (can withstand a shot from an artillery cannon). " You are friggin joking mate aren't you? :lol6

With crap like that you aren't going to make it at all in the future. :lol6

I should have kept a note with me as I read through it all but that's about all I can remember for now that really stood out.

Devil

LEO'n'DARTZ · July 26, 2005

Kemble · July 26, 2005

Very nice indeed !

Few things that caught my attention.

1.) Lifetime guarantee on all films? As far as I know no film is lifetime guaranteed, and it can only bite you in the arse later. Or maybe im not that well educated being in the business for 2 months.

2.) $190 for back 3 windows? I think I'm gonna move to your area. I'd be lucky to get $150 for the back three in my area.

3.) Your breakdown of your costs for your 1st year of business. $15,000 salary for 2 people? Thats like $7.50/hr. Hell, you can make more money working at McDonalds. Better up that to at least $22,000. And your employee making $10/hr doing your commercial work, he'll only work for $10/hr if he was $16 yrs old. Try more like $15/hr if you want someone that will be happy to work for you and that you want to represent your company.

4.) Am I correct that by your "Love it or Loathe it" warranty is if they Loathe it you will refiund thier money? Thats gonna put you like all the other business that went out of business. People will take advantage of that and run you under :lol6

5.)

3. There are many automobile dealerships in the same area. Traeger Industries Window Tinting could become their foremost tinting company. They would sell it to the customer for nearly $200 more than what the business would charge then the business would pick up the car, tint it and bring it back. Traeger Industries Window Tinting would get a lot of business this way without ever having to deal with a customer.

Whats this all about? You saying that the dealership will get $200 more on top of your already high prices allowing your dealership to make money? Good luck with that !

6.) What kind of cookies do you like?

LEO'n'DARTZ · July 26, 2005

$15,000 per year :lol6 :barf :lol6 :nope :nope

July 26, 2005

I think the content is good...if a little mis-guided in areas. Chris has put a lot of effort into this so credit where credit is due. :trustme

Maybe some business owners like ourselves would do better with a proper plan of action, set ourselves some true goals, understand our markets more ?

I'm sure a lot on here plod along with their business without ever really knowing where they want to be - and I'm as guilty of that as the next man.

Naughty

skittles15 · July 26, 2005

I've noticed the 15,000 per year has caused some confusion. these people will not be full time but on call. because I know there will be days where there is absolutely nothing to do at all.

and as I clarified before the market plan even started that a few things such as the Love it or Loathe it warranty is to please teacher. She is constantly talking about customer relationships. this was just an idea on the table and I decided to include it. The lifetime warranties, aren't pretty much all film companies going this route now?? I don't know what I was thinkin with the artillery cannon thing. but I did see a vid that metint posted a while back of a 2x4 being shot out of a co2 cannon and it getting lodged in the window. BTW I thought that is how car dealerships approached these situations??

thanks for all your input btw

Chris

skittles15 · July 26, 2005

Did you pay for that to be done?

what do you mean by this???

TINT · July 26, 2005

great write up, what is this for again?

indeed it needs a few tickering here and there,

every person that I see when they do a write like that, you can always tell the experience theyhave, surely of all the "technical" stuff that exisits like 5% business owner abide.....

now I want to see something hands on, where you are in an actual business or getting experience running business...im sure you're write up would be completely different from what you just wrote...

:trustme

Devil with bad attitude · July 26, 2005

Did you pay for that to be done?

what do you mean by this???

[*]301366

It looked to me like one of those guru evaluation marketing people who come from outside the industry that charge hundreds of dollars to tell you the bleeding obvious. :nope That's all.

:beer