Walker Industries Marketing Plan Proposal for the Residential Market

Transcription

1 Walker Industries Marketing Plan Proposal for the Residential Market INTRODUCTION Walker Industries was established in 1882, over a hundred years ago. It is a family owned business that went from producing lime stone to currently recycling biodegradable products and turning them into compost, soil and, mulch. The purpose of this marketing plan is to extend the business of Walker Industries to the residential market within the Niagara Region. In this plan we will exemplify various advertising techniques that will help expose Walker Industries to more consumers while working within a reasonable budget. INDUSTRY ANALYSIS In the residential department Walker is concentrating on consumers that have an interest in the gardening lifestyle or anyone who is interested in making improvements on their home. This consumer is on the high end income demographic and ages 45 + taking up new hobbies and interested in the outdoor lifestyle. The Niagara Region has over 30 businesses that carry soil and other products for home improvement and gardening. Due to the long growing season and mild climate most of the population take on gardening as a hobby. There is plenty of room in the residential market for Walker, properly exposing the product and making the public aware of the point of difference is the key to success in such a saturated market. 1

2 COMPETITOR AND COMPANY ANALYSIS There is a large market for landscaping in the Niagara Region over 30 businesses that offer similar products and services. Plenty of competition means there is an abundance of consumers in the area and opportunity in the market. An example of a competitor is Trail s End landscaping services a business that has a large clientele in the Niagara Region and is a perfect example for a competitor analysis in the residential market. Figure 1below identifies examples of pricing from competition PRODUCT PRICE PLACE PROMOTION COMPETING AND SUCCESS Include: Soil Blends (such as premium top soil, triple mix, and double screened Smartsoil blend), Soil Amendments (compost, black peat loan, and composted pine mulch fines), various mulches, stone (many kinds such as: red crushed granite, white marble, etc.), sand, and even sod SOIL BLENDS- Various types of soil (price range $40-45/yd) MULCHES- 7 Types of Mulches (Price range $42- $50/yd) STONE- Various Types (Price range $30-$45/yd) COMPOST- $32/yd Located at 480 Welland Ave, St. Catharines, ON. A central location easily reached by its consumers a map on the webpage helps with locating the business. Trail s End has an eye catching webpage that is user friendly and is very informative for any consumers visiting the site. Radio and print advertisements have also been used by the company to gain exposure to the public. Trail s End offers fair prices and great service to gain and keep customers. They offer a delivery service ranging from a minimum of 1 yard all the way to 30 yards and able to deliver different products at the same time. Trail s End logo states The Tastiest Soil in Town, think of it as Gourmet for your garden gives the impression of great quality and service. Focusing on customer satisfaction and product quality is their key for success. Areas of Opportunity Trail s End appears to most to be a flawless landscaping business in this area; 2

3 however Walker Industry can take advantage of a few areas of opportunity. Walker can highlight that they produce their own product and provide these products to nearby competitors therefore quality is second to none at Walker. Another opportunity is to make price a point of difference, since the product is made at that location Walker does not have to ship in any products or deal with any special packaging costs. Delivery is a big area to focus on for Walker since the location is not ideal, if a reliable delivery service is available the product can make it to more locations away from the source allowing more exposure and business. MARKET ATTRACTIVENESS The market for Walker is full of potential; the Niagara Region carries all the different factors that contribute to an attractive market. The market is saturated with over 30 businesses within a 50 mile radius this shows that there is plenty of business to be able to sustain that number of competition. Consumers tend to have the purchasing power, with so many businesses they can be selective in where they buy so competition is very strong. Raw materials are Walkers strength since they are their own producers of the product there is no shortage and they supply other competition (B2B) for other income. Lastly environmental factors are in favour for this product; Walker is recycling waste and producing a useful material for consumers to use in an environmentally friendly manner making it socially acceptable for today and the future. ENVIRONMENTAL FACTORS One of the most appealing factors to consumers is that Walker business is recycling public waste and producing a sustainable product for growth and recreational 3

4 use. Walker Industries is committed to the Earth 1 st Program that puts the community and environment along with their business processes. Walker promoting a healthy environment builds strong respect by not only their consumers but competitors as well. CONSUMER ANALYSIS Consumers Walker is targeting are home owners who care of their property and themselves. These homeowners should be in the middle class or higher most of this class would care and have the income to support home improvement such as gardening. The purpose on buying Walker s products is to place soils and special mixes into their gardens for upkeep in aesthetic home beauty and to satisfy a popular North American hobby. There are heavy consumers and light consumers, those who have smaller gardens and need less of the product will purchase at a location and price that is convenient for them. Whereas the heavy consumers with larger gardens or who have a larger project (such as landscaping) will need a bigger amount and are looking for a fair price and delivery services. Consumers can purchase soil and compost products year round; however April is when the majority of the target market purchases their products. When spring arrives it means the growing season is here and gardening season has begun. Experienced consumers will know what products to choose based on what their wants and needs are. Consumers will generally respond to marketing programs especially at the beginning of the spring when it is time to make their purchases for their gardens. Getting started at the appropriate time is essential, due to the limited time period of the hobby itself. Consumers are constantly looking for reasonable prices, good service and great deals. 4

5 If the products and prices are good quality, consumers practice repeat business. Gardening is a popular hobby and it is a symbol of growth and maintenance for people who have this hobby will continue to purchase supplies. If they purchase their product from Walker and come away with a good experience it is expected they will continue business with Walker. Repeat business consumers are content with the product and service provided by the company. These consumers will also provide the company with word of mouth advertising to family, friends and random individuals. Maintaining these consumers is imperative because it will allow the business to grow and build a reliable quality brand name in the market. MARKETING OBJECTIVES AND GOALS Overall Marketing Objectives Overall goal is to increase sales volume by 15% over the previous year and gain consumer exposure. In 2007 sales began in June where in 2008 we will be able to open sales at the beginning of the growing season around late April and May with those months available Walker can increase sales from Gross profit in 2007 for compost and mulches were $26,878 if an increase of 15% is the goal for 2008 profits of at least $30, must be attained. Branding: Land Cover: Get your Soil at the Source needs to be the focus and address that getting your soil at the source is the best quality in the Region. The other option is to rethink the logo to have a more appealing look and a more memorable message. 5

6 Customer Acquisition: Focus should be concentrated on local areas such as south end St. Catharines, Thorold any surrounding area (15kms) within Walker as they are the most reachable. The quarry will be the closest retail outlet for customers in those areas and will save the customers driving time to go to other retailers. We would like to create more attention by advertising; direct mail (to local area near the Quarry), local newspaper ads, radio advertisements, and an onsite garden to show public what the product can do. MARKETING PROGRAM OBJECTIVES Continue to produce all products offered by Walker in the previous year: mulch, top soil, compost, etc. Service The bag your own concept will remain at the retail store. Other focus is on delivery services and overall customer service (be helpful on site friendliness and offering to help bag products if needed.) Brand Keep brand name of Land Cover re-think logo to be more dynamic and appealing to the public. Ad more colour maybe an image they can symbolize growth so it appeal to potential consumers. Pricing Pricing can be a form of Walker s point of difference, as Walker is the source the product is made on site and does not need to be packaged or shipped therefore all those production costs are none existent and Walker should be able to offer a cheaper 6

7 price for their product to the general public. Compare Walker s prices to competition in the area such as Trails End and other nurseries. Sales/Distribution Sales of the product can still be upheld at the location and self bagging service is a great way for the consumer to feel more involved and they know how much they are getting of the product in each bag (however assistance can be provided if needed). Another idea is to adopt a website service so the consumer can order their product online so they do not have the hassle of going to the actual site and have it delivered to them. Online services are provided by many companies and it could be a way to expose and distribute Walker s product to the public that may not be in Walker s area. INTEGRATED COMMUNICATIONS Figure 2 below shows the different advertising mediums that are available to Walkers. TYPE Description Print - Local Newspaper advertisement (The Standard), one ad 1/8 page costs $472.50(on Wednesdays most read newspaper day). - Direct Mail print ad poster can be printed by Vista Print (recommended by AE Design as most cost effective printing in the region) cost for 5000 copies is $ Canada Post mail service (reliable service) $.40/delivery sums up to $2,000 Radio - Astro Media for station 610AM CKTB talk radio targets listeners ages 45+ male and female. (Listeners have a high income, home owners) priced at $45/ad, 4 times a day over a week to start AM has a show called The Garden Show airing every 7

8 Saturday and Walker could arrange a representative to do an interview on the show to talk about the services of Walker and its products. Signs Television -Improve signage at actual site, place a garden with the sign, setting an example of the result of using the soil. Public billboard can also be purchased for more exposure - Early spring ask local channel to do a brief story on how important it is to recycle and use the green bin, show the effects and talk about compost and selling that happen on the site. SWOT ANALYSIS Analyzing Walkers strengths, weaknesses, opportunities and threats to better understand the business and become successful. Figure 3 below identifies the strengths, weaknesses, opportunities and threats for Walker Industries. Strength - Good Quality product: Product is made onsite and is made by professionals, it is the highest quality the product can be - No Shortage on product: Walker is a recycling business and as long as there is biodegradable being used by the public there will always be more products being produced. - Financial backing: Walker has many industries and is a wealthy company, there many ways they make income and financial backing is available if needed in a certain area. Weaknesses - Low Sales last year: Sales last year were low due to lack of exposure and late start in selling in the season - Saturated Market: There is approx. 30 other landscaping 8

9 businesses in the region, therefore competition is tough. Opportunities - Large Market to break into: Niagara Region has plenty of consumers and high interest in landscaping - Room for competition in the market: Walker has a point of difference and there is room in the market for more competition with something to offer consumers - Location: Located at the edge of four cities in the Niagara region so it is reachable by many different consumers. - Port Colborne Quarry: will be closing in 2009 opening up more market for Walker Threats - Small nurseries: there are many small nurseries that Walker sometimes provides with product. These nurseries have good location within the city and a noble clientele. - Big Box Stores: Many consumers now rely on big box stores and their garden centres to purchase soil and other landscaping products. MARKETING STRATEGY Figure 4 below identifies our primary target market for the residential market CHART: Primary Target market Price: Natural Mulch Red Pine Mulch Coloured Black or Red Mulch Compost Screened Topsoil Horticultural Topsoil Blends You bag any material $25/yd $40/yd $40/yd $30/yd $35/yd $35/yd $2/bag Geographics Region Niagara Region Niagara Region with focus on specific Regions 9

10 Density Urban and Suburban Hit bulk of market, portrayal usage in flyers, internet and radio. Demographics Age 45 ~ 65 Most people at the age of 45 to 65 do a lot landscaping Gender Not Important People who do landscaping can be both man and woman Family Size Not important Income $40000 ~ $ The people who have desire and ability to buy this kind of product and do landscaping are commonly well-paid. Occupation Not important Education Race Home College / University grad To get a well-paid job, it will require a formal education background. Not important for this product. Own their own house Psychographics Lifestyle Structured, organized, high quality life within a good environment Behaviorals Benefits Usage rate User status Loyalty Good quality and helping the environment Two times a year well-paid people focus on good lifestyle. High Loyalty The Walkers provides good quality product before and good service after sale. Motivation of Purchase Coming up from well-paid peoples esteem needs, cognitive needs and aesthetic needs of their internal motivation Our primary target for competition is Trailsend. They are located on Welland Avenue in St. Catharines which a good location for business. They sell the same products 10

11 as Walker Industries does however it is prepackaged. They target the same customers as our primary target market. Our prices will be lower and it will be more interactive then Trailsend. Our secondary competition includes all big box stores. This includes Canadian Tire, Home Depot and Wal-mart. They provide the basic such as soil and triple mix and it is prepackaged. It is convenient because customer can purchase their garden supplies while they do their other shopping and there are at six different ones throughout the city which makes for a convenient location. Walkers can succeed against these big box stores back on superior service. All of our staff will be educated in the products (benefits of the products and results). It is a small and friendly place that will provide a better experience for the customer. As well, customers who purchase products from Walkers know exactly where the product is coming from because it is being produced on the same site. With big box stores, all of the franchises purchase their product from the same place which could be anywhere. Walker Industries is good quality and produced locally. MARKETING PROGRAM We have compiled all of our research and data to create a marketing program. Our marketing plan is a detailed description of how we intend on reaching our marketing objectives and goals for Walker s. Word of mouth still plays a part in advertising this product, however we cannot rely on this advertising to make the sales. We know that the products are great quality therefore we feel that it is a matter of marketing the product to the right target market. 11

12 Product/service/brand tactics The primary benefit for customers at Walkers is the convenience of being able to get rid of waste and pick up products for their gardens in the same place. As well, the cost is lower then competitors prices. This gives the customers more incentive to purchase these products while at Walker s or to take a special trip to the site to purchase products for their garden. The product itself is of fantastic quality, which is beneficial to building a rapport with customers and creating repeat buyers. We would like to continue with the same brand name as last year because we would like to continue to build the rapport with current customers. This is the second year now for sales and for those who purchased from Walker s last year, we would like them to know our brand name and build trust in it. We would like to keep the bag it yourself concept because we feel that it provides a different experience then the competition has to offer. It also allows us to keep costs at a minimum. We would like to have staff on hand to inform and assist customers with bagging the product. As well, given that the site itself is large, we would like to have staff around the site to direct and answer questions. We feel that this will help provide and overall good experience for customers. Pricing Tactics Our main pricing tactic is to price the products below that of the competitions to create the want for new customers. We believe that this will work because the customers are willing to save a few dollars on a great quality product if it means bagging their own products. The sales will still work because the bag your own concept allows us to save 12

13 on packaging costs. The low cost is also an incentive to get new customers out to the site for their first purchase. This is what is needed in order to create repeat purchases and generate a customer data base. Customers would be getting the best product for their money. We feel that because it is a bag your own concept, having a lower price is the incentive to get customers out to Walker s, otherwise, they may decide to purchase pre packaged products at the competition closer to home. We plan on offering a 15% discount on a bag of compost or soil for anyone who drops off waste. Those who come will usually purchase more then one bag on average. This is a good investment in the future because these customers who have an overall good experience at the quarry will become repeat customers. 15% off of one bag per car is not a large cost to build relationship with customers. Sales Distribution Tactics Currently, we would like to keep the product on site. We feel that a push strategy is necessary. Although there is an initial demand for the product, the market is saturated that the demand is covered by the competition. Therefore there is no longer a demand for the product in the Niagara Region. This is why we need to push the product through and create more demand and specifically demand for the product from the quarry. Once the customers have used the product and are happy with the results that are produced by the product, they will purchase the product again. This creates repeat purchase that leads to customer loyalty. We would like to introduce online purchasing. This would involve changing the website to create a section that allows customer to purchase their product online for delivery. This will allow us to reach clients who cannot or do not want to drive out to 13

14 Walker s. This also makes it more convenient for customers by saving them the drive of driving out to the quarry. Integrated Marketing Communications Tactics Many people are aware of Walker s Quarry; however, they are unaware of the service provided on site. This is directed to towards the Niagara Region however we are focusing on Thorold and the south end of St. Catharines. We would like implement these advertising methods at the beginning of the growing seasons being the end of March and the beginning of April. We would like to Place an ad in the St. Catharines standard that is 1/8 of a page on Saturday April 12th. Saturdays is the one day of the week in which the paper is viewed the most. It is costly to place an ad in the newspaper therefore we would like to do so it the day of the week where we will reach the most potential customers. The cost of this ad is $ This ad will be placed in the garden and home section of the newspaper that will reach our main target audience with potential for a secondary target market given that there is such a board range of people who read this newspaper. Direct Mail is another advertising medium we would like to use for this plan. For this specific tool, we would like to focus on Thorold and the south end of St. Catharines to start. Appendix 1 illustrates the design of the flyer that we would like to deliver. This reaches our target market that lives the closest to Walker s Quarry. The cost of printing 2000 flyer would be $ if done though vistaprint.ca. This company was recommended by AE media Design who designs advertisements for many known companies around the region. Vistaprint can print this flyer for a low cost and in a short period of time. Canada Port will distribute these flyers to make sure that they are in fact 14

15 distributed. The cost of this is 0.40 cents per flyer. This reason for going with Canada Port oppose to hiring people to distribute them is because the tendency for individuals who deliver the flyer is to dump the flyers instead of delivering them to make the money. The next advertising medium is Radio. We would like to update the radio advertisement from last year. This year, we would like to run four advertisements a day for seven days on AM CKTB at the beginning of the season. The listeners for this radio station are 45+ and are split in the middle between females and males. They are home owners and make enough income or pension for frequent restaurants and entertainment. CKTB has a show on Saturday mornings from called the garden show which would be our prime target for air time. We feel that running an intense week of radio ads is better then playing them spread out over time. We would like to show the results of the products. For this, we would like to make gardens around the retail part of the site where our products are used and people can see how well they work. This would be a minimal cost because most of the products needed are on site. The only products that would be purchased are flowers and plants. It would cost in terms of product however the cost would be relatively low. Coupons would also be useful in advertising to the residential market. These coupons will be given to customers who have come to get rid of their waste. When customers come to get rid of their waste, the staff asks where they are coming from in the region. This will give us an idea oh where the majority of our current customers are coming from and who to target further. As well as finding out where the customer is coming from, they are to give them at 15% off a bag of compost or soil at for Walker s Retail store. 15

16 These coupons will also be given out by a representative who promotes the quarry at functions around the Niagara Region. They will attend functions such as the home and garden show in the Niagara Region. This will provide incentive for new customers to come to the site who do not currently dispose of their waste there. We would like to implement a contest at the beginning of the growing season by partnering up with the camber of commerce in St. Catharines. Residential customers are to take a photo of their garden and lawn. The one that needs to most work will win their products for free. This will create a buzz around the city and provide awareness. BUDGET Figure 5 below identifies the cost of this marketing plan. If is based on the 2007 year end. WALKER INDUSTRIES BUDGET 2008 INCOME FOR 2007 Operating Revenue Compost/Top Soil $ 12, Mulch revenue $ 14, Total Operating Revenue $ 26, Advertising Expenses Direct Mail Plan (1) Direct Mail copies $ $.40/delivery $ 2, Total Direct Mail Cost $ 2, Radio Adv Plan(2) 4 Times a Day Over 7 Astro Media $45/ad Days Total Radio Adv Cost $ 1, Newspaper Plan(3) 1/8 page Ad (Wednesday) $ Total N/P Cost $ Total Income 2008* $ 22,

17 1) Direct Mail information gathered from #here (Vista Print inc.) and www. Canadapost.ca (Canada Post for deliver services required for direct mail) 2) Radio Information gathered from call inquiry to Astro Media a special thanks to CHTZ program director Bruce Gilbert for giving price information on radio advertisements and suggestions. 3) Newspaper information gathered from and a call inquiry to the Standard office for prices. IMPLEMENTATION AND CONTROL Figure 6 below explains which department should implement each part of the marketing plan and when it should be done. Advertising Medium Department Time Period Newspaper Marketing Department Call the last week of March to put place advertisement Direct Mail Marketing Department Beginning of April Radio Marketing department Implement for April 12th Garden Retail staff (those who also help customers bagging) Beginning of April end of summer Coupons Staff at dump site April for dump site. First trade show for Niagara Rep Continue throughout the summer. Contest Marketing Department Beginning of April for two weeks Website Tech/sales departments Start in April and continue throughout the entire season Contingency Plan If this plan is not taking the company in its desired direction, we suggest emphasizing creating awareness. Many residential customers are not aware of the quarry or of their services. We feel that our marketing plan will create the needed awareness, however if it is not taking the business in the desired direction, more customer awareness would be an asset. As well, bring the products to the customer. For example, use the compost and soil in potted plants that can be displayed in trade shows and other functions. The current marketing plan will be successful but if there are any discrepancies our contingency plan will take the business in the wanted direction. 17

18 Conclusion This new marketing plan that has been created for Walker Industries will be effective in gaining residential customers for their retail outlet on site. This will let us meet our objectives of creating awareness, providing great service, raising sales by 15% and creating an above par overall experience for customers. The plan should be implemented immediately because the growing season is fast approaching and consumers are starting to think about purchases for their gardens. 18