SD Construction Marketing Plan

By Sauiya DossayevaAttention! This marketing plan is made for a non-existing firm, please note that

pictures and dates of firm foundation were either taken from external sources or invented.

Overview

DS Construction provides a unique and high-quality house remodeling, repairing and reconstruction services in the greater Boston area.

Our professional team will provide you with a complete service starting from selecting construction material up to cleaning services after the work is done.

Service Description

house reconstructions (old houses conversion to new constructions), including foundation and old walls fortification

house remodeling (changing the floor plans)

house repairing (starting from small issues up to major repairs like roof replacing and etc.)

History

DS Construction was founded in 2007.

We have started as a very small local company offering some plumbing and minor repair services .

We have been granted a patent for our uniquely designed technology of foundation fortification .

The technology allows a higher level of safety.

Environmental Analysis

Market Overview While still below the peak in 2007, the market is up

from the tough in 2011.

Homeowner maintenance and repair expenditures totaled $52 billion in 2013, its share on the whole remodeling market lifted from 14 percent in 2007 to about 18 percent by 2013.

Investment in the rental stock was also on an uptick, increasing from just over 16 percent of spending in 2007 to about 18 percent in 2013. .

The home improvement market appears to be returning to its long-term trend

Market Overview cont.

Witstrengthh the economy ening and house prices recovering, spending on home improvements rose by almost $6 billion between 2011 and 2013.

Even more significantly, the share of spending on discretionary projects increased for the first time since 2005.

Thus, from the information above we can conclude that expanding our service list further is a reasonable plan, since the market has shown a strong growth rates and no significant downfalls since 2007-08 world crisis.

Market overview(market spendings)

Market Segments

Competition

The competition in the house remodeling industry is very strong on a local and regional basis but somewhat weak nationally.

The 20-percent market share of foundation and wall strengthening is divided among a dozen of different firms.

In a corporate market segments “Suffolk Construction Group” and “Columbia” are the two main players, who share about 50 percent of the corporate markets.

In the repair and remodeling segment the entire market is divided among many small businesses.

Target Markets

Our effectively implemented niche differentiation allows us to identify two major client types and enter appropriate markets. Two major client groups are the following:

1. individuals/home owners

2. large building corporations and office buildings management teams

Demographics/Geographical specifications

of the market Greater Boston area remains to be our main

target market. Most of our clients are from Newton, Brookline, Natick, Roxbury, Peabody and Braintree.

Our corporate clients mostly concentrate in downtown Boston, Back Bay and Cambridge.

Among individuals, our target pool of customers consists of families with 1-2 children from ages 2-17 and 65 y.o. and older home owners.

Current market conditions

An approximate 70 percent of customers who we were recommended to by our previous clients average customer referral relationship of about 3 years.

The company is currently debt free except for the mortgage on its facility.

About 80 percent of our accounts receivable are billed during the summer. Seasonal account billings, along with the added travel (hardware stores/product pick-up) of our staff during the peak season, pose a special challenge to the company.

Market Objectives

Our marketing objectives include increases in both revenues and profits of approximately 10 percent over the previous year.

1. Revenues should exceed $4 million

2. Profits are expected to reach $1.3 million.

SWOT AnalysisStrength

DS Construction product differentiation strategy is the result of a strong marketing orientation, commitment to high quality and support services.

There is little turnover among employees who are well compensated and liked by customers. The relatively small size of the staff promotes camaraderie with coworkers and clients, and fosters communication and quick response to clients’ needs.

A long-term relationship with the primary suppliers has resulted in shared knowledge of the product’s requirements and quality standards, and a common vision throughout the development and production process.

The high percentage of referrals suggests a satisfied customer base, as well as positive word-of-mouth communication, which generates a large percentage of new businesses each year.

SWOT AnalysisWeaknesses

Despite the successful, long-term relationship with the supplier, single sourcing could make DS vulnerable in the event of a natural disaster, strike, or dissolution of the current supplier. Contingency plans for suppliers should be considered.

The seasonal nature of the sales creates bottlenecks in productivity and cash flow, places excessive stress on personnel, and strains the facilities.

While the small size of the staff fosters camaraderie, it also impedes growth and new-business development.

DS is reactive rather than assertive in its marketing efforts because of its heavy reliance on positive word-of-mouth communication for obtaining new business.

SWOT AnalysisOpportunities

House remodeling business is growing each year and is till to reach the 2007 peak. The potential for DS Construction’s growth is significant on the market.

Technologically advanced equipment is becoming more and more popular for civil engineering and construction businesses; thus, greater workforce efficiency can be expected with a new generation technology.

SWOT AnalysisThreats

Single sourcing can be detrimental or even fatal to a company if the buyer-supplier relationship is damaged or if the supplying company has financial difficulty.

Competition from older companies other small-scale construction businesses is strong.

Market entrance is relatively easy, which only increases the competition.

Marketing Strategies

We could use the knowledge of our successes with current clients to market to new customers.

To analyze the billing cycle DS now uses to determine if there are ways to bill accounts receivable in a more evenly distributed manner throughout the year. Alternatively, referred customers might be willing to place orders at off-peak cycles in return for discounts or added customer services.

Marketing Mix

Product

DS Construction provides high-quality house remodeling/repairing services by using most efficient new technologies. DS’s intangible attributes are our ability to meet or exceed customer expectations consistently, our speed in responding to customers’ demands, and our anticipation of new customer needs.

Price

The value of our service is reflected in a premium price. Our plan is to be more sensitive to the price elasticity of its product and overall consumer demand.

Marketing Mix cont.

Placement

Since our final product is immovable we do not refer to the placement attribute a lot.

Promotion

Since a large percentage of DS’s customers are being referred to us each year, the bulk of promotional expenditures should focus on new service offerings through direct-mail advertising in our target neighborhoods and local specialty publications.

Monitoring Procedure

To analyze the effectiveness of DS Construction marketing plan, it is necessary to compare its actual performance with plan objectives. To facilitate this analysis, monitoring procedures should be developed for the various activities required to bring the marketing plan to fruition. Namely, a project management concept will be used to evaluate the implementation of the marketing plan by establishing time requirements, human resource needs, and financial or budgetary expenditures.

Refrences Text 2: Writing and Implementing a Marketing Plan (you will have to log in to the CC Online

library to view this text. Follow log on instructions)

http://site.ebrary.com/lib/cambridge/viewFolder.action?sharedKey=KKGMBDCJGKZVPYNKWUWQJRYMYAQHXUMJ&userName=cambridge_william.zwemke

Emerging Trends in The Remodeling Market, Joint Center For Housing Studies, Harvard University

http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/jchs_improving_americas_housing_2015_final_0.pdf

Marketing Profs case studies

http://www.marketingprofs.com/marketing/library/casestudies/