John John CernigliaCernigliaChristina Christina DickDickAndrea Andrea GillisGillis

Chelsea Chelsea HobsonHobsonTom Tom SpadoraSpadora

BackgroundBackground

1920’s1920’sLouis and Louis and

Mary Mary Cohen Cohen open a open a grocery grocery store in store in

Church HillChurch Hill

1940’s1940’sGrocery Grocery

store store begins to begins to carry a carry a

few hard few hard to find to find itemsitems

19541954Grocery Grocery

store was store was sold and sold and Southern Southern

DistributorDistributors is s is

createdcreated

19601960Southern Southern

DistributorDistributors become s become

a a corporatiocorporatio

nn

19661966Frank Frank Cohen Cohen

began to began to work work

summers summers at at

Southern Southern DistributorDistributor

ss

19671967The state The state of Virginia of Virginia took the took the location location

using the using the power of power of eminent eminent domaindomain

1968 1968 Southern Southern

DistributorDistributors s

moves to moves to new new

location location across The across The ManchesteMancheste

r Bridger Bridge

1968 1968 The state The state of Virginia of Virginia takes this takes this location location

alsoalso

19701970Frank Frank Cohen Cohen

graduates graduates from Va. from Va. Tech and Tech and

begins begins working in working in the family the family businessbusiness

1970 1970 Southern Southern

DistributorDistributors hits the s hits the high point high point

of of businessbusiness

1973 1973 Mr. Cohen’s Mr. Cohen’s grandmothgrandmother began er began

transferring transferring shares of shares of stock to stock to him on a him on a

yearly basisyearly basis

19851985Mr. Cohen’s Mr. Cohen’s grandmothgrandmother passes er passes

away away leaving the leaving the remaining remaining stock and stock and building to building to his fatherhis father

20022002Mr. Cohen Mr. Cohen receives receives

his stocks his stocks from his from his father’s father’s

willwill

20072007Southern Southern

DistributorsDistributors, Inc. , Inc.

moves to moves to it’s present it’s present

locationlocation

20102010Mr. Cohen Mr. Cohen

seeks seeks advice from advice from

VCU’s VCU’s incredible incredible marketing marketing

groupgroup

Current Current SituationSituation

ProblemProblem

ProblemProblem

• Southern Distributors, Inc. is losing revenue due to the loss of current accounts because of corporate buyouts

• How does Southern Distributors, Inc increase their revenue on a limiteed budget with limited resources

• Southern Distributors, Inc. is losing revenue due to the loss of current accounts because of corporate buyouts

• How does Southern Distributors, Inc increase their revenue on a limiteed budget with limited resources

SWOT SWOT AnalysisAnalysis

SWOT SWOT AnalysisAnalysis

• Strengths

• Ability to meet customer’s needs

• No minimum order quantities

• Low markups

• Variety of shipping options

• Strengths

• Ability to meet customer’s needs

• No minimum order quantities

• Low markups

• Variety of shipping options

SWOT SWOT AnalysisAnalysis

• WeaknessesWeaknesses

• Inefficient turnover of merchandiseInefficient turnover of merchandise

• Classified as small businessClassified as small business

SWOT SWOT AnalysisAnalysis

• OpportunitiesOpportunities

• Expansion within the drugstore industryExpansion within the drugstore industry

• Expansion of online marketExpansion of online market

• Creation of promotional mediaCreation of promotional media

SWOT SWOT AnalysisAnalysis

• ThreatsThreats

• Larger distributors who have more bargaining and buying Larger distributors who have more bargaining and buying powerpower

• Loss of accounts due to the privately owned businesses Loss of accounts due to the privately owned businesses being bought by large corporations that supply being bought by large corporations that supply themselvesthemselves

Core Core CompetenceCompetence

Core Core CompetenceCompetence

• Personal customer service and their willingness to provide each customer with customized assistance

• Personal customer service and their willingness to provide each customer with customized assistance

Market Market StrategyStrategy

Marketing Marketing MixMix

Marketing Marketing MixMix

• ProductProduct

• Southern Southern DistributorsDistributors, Inc. carries a wide range of products , Inc. carries a wide range of products

• Low cost, everyday use itemsLow cost, everyday use items

• Little buyer remorseLittle buyer remorse

• Cosmetics Cosmetics

• Household appliances Household appliances

• Seasonal decorationsSeasonal decorations

Marketing Marketing MixMix

• PricePrice

• Wholesale and Retail pricingWholesale and Retail pricing

• Contracts with suppliers allows Southern Contracts with suppliers allows Southern DistributorsDistributors, Inc., Inc.

• Pricing makes them highly competitive in the online marketPricing makes them highly competitive in the online market

Marketing Marketing MixMix

• PromotionPromotion

• Southern Distributors, Inc. currently has no form of Southern Distributors, Inc. currently has no form of promotionpromotion

Marketing Marketing MixMix

• DistributionDistribution

• Southern Distributors, Inc’s distribution channels allows Southern Distributors, Inc’s distribution channels allows them to increase the potential of acquiring customersthem to increase the potential of acquiring customers

• UPSUPS

• Personal DeliveryPersonal Delivery

• Drop ShippingDrop Shipping

Target Target MarketMarket

Target Target MarketMarket• Southern Southern DistributorsDistributors, Inc’s target market is split up into 2 different catagories, Inc’s target market is split up into 2 different catagories

• 1. Wholesale Target Market1. Wholesale Target Market

• DrugstoresDrugstores

• PharmaciesPharmacies

• Convenience StoresConvenience Stores

• Variety StoresVariety Stores

• 2. Retail Target Market2. Retail Target Market

• Anyone looking for certain products at a discount priceAnyone looking for certain products at a discount price

New New MarketMarket Strategy Strategy

RecommendationsRecommendations

Ebay Ebay && Amazon.com Amazon.com

• Allows merchandise to be seen by millions of people around the Allows merchandise to be seen by millions of people around the worldworld

• Allows Southern Allows Southern DistributorsDistributors, Inc. to move merchandise out of , Inc. to move merchandise out of the warehouse that would otherwise be left to be sold to close-the warehouse that would otherwise be left to be sold to close-out companies or just sit in place and ageout companies or just sit in place and age

• Allows Southern Allows Southern DistributorsDistributors, Inc. to have a second “location” , Inc. to have a second “location” and promote their productsand promote their products

ConstantConstant Contact Contact.com.com

• Easy to use email database system where a company can email Easy to use email database system where a company can email mass messages, surveys, and events to clients both current mass messages, surveys, and events to clients both current and prospectiveand prospective

• Allows Southern Allows Southern DistributorsDistributors, Inc. to maintain contact with their , Inc. to maintain contact with their current clients and build better relationships that will in turn current clients and build better relationships that will in turn bring in more orders and revenuebring in more orders and revenue

CatalogCatalog

• Cheap and easy to create Cheap and easy to create

• Allows Southern Allows Southern DistributorsDistributors, Inc. to provide both prospective , Inc. to provide both prospective and current clients and hard copy of merchandise that is and current clients and hard copy of merchandise that is stocked and/or able to be obtianedstocked and/or able to be obtianed

• Gives prospective clients more information at the initial “meet Gives prospective clients more information at the initial “meet and greet”and greet”

Financial Financial PositionPosition

Financial Financial PositionPosition

• Last sale to Ukrop’s in MarchLast sale to Ukrop’s in March

• April sales $47,000 less than prior monthApril sales $47,000 less than prior month

Financial Financial PositionPosition

Southern Distributors, Inc. 2010 (Last 3

Months)Revenues $226,597

Cost of Goods Sold $155,616

Gross Profit $70,981

Income StatementUS-GAAP

UpdateUpdate

UpdateUpdate

• Re-creation of Ebay Store

• 1st item sold on March 18, 2010

• $2,100 netted after expenses

• Extremely profitable and able to figure exact profit margin

• Re-creation of Ebay Store

• 1st item sold on March 18, 2010

• $2,100 netted after expenses

• Extremely profitable and able to figure exact profit margin