vans for bands
DESCRIPTION
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) - PowerPoint PPT PresentationTRANSCRIPT
A Promotional PlanA Promotional Plan
BA 4700BA 4700MARKETINGMARKETING
MANAGEMENTMANAGEMENT
The Need is ThereThe Need is There
Musicians have several needs:Musicians have several needs:Musical equipment (music stores)Musical equipment (music stores)A place to practice (storage facilities or home)A place to practice (storage facilities or home)A place to record (recording studios)A place to record (recording studios)A CD or record (pressing plants)A CD or record (pressing plants)……AND A VEHICLE FOR TRANSPORTATION!!!AND A VEHICLE FOR TRANSPORTATION!!!
1.1. Expensive dealersExpensive dealers2.2. Trader publications.. a real Trader publications.. a real
nightmarenightmare3.3. Very expensive rental Very expensive rental
companiescompanies4.4. Neighbor down the street.Neighbor down the street.
The Need Is MetThe 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.
Problems:Problems:
Vans for Bands is new to market- small amount Vans for Bands is new to market- small amount of resources available, need large amount of of resources available, need large amount of funds. funds. Company located hour away from downtown. Company located hour away from downtown. Entire physical inventory made up automobiles Entire physical inventory made up automobiles that suffer from rapid depreciation, need on-that suffer from rapid depreciation, need on-the-lot repairs, and maintenance. the-lot repairs, and maintenance. Majority of target market under 21- difficult to Majority of target market under 21- difficult to finance and unable to afford.finance and unable to afford.Inefficiency of traditional print ads to reach the Inefficiency of traditional print ads to reach the target audience. target audience. Potential customers may live out of Potential customers may live out of
state. state.
Our Current SituationOur Current Situation
In 2004:In 2004:Sales reached nearly $65,000 (56% in Q2)Sales reached nearly $65,000 (56% in Q2)
$10,200 in cash and liquid assets.$10,200 in cash and liquid assets.
Average VehicleAverage VehicleMid 90’s makeMid 90’s make
Sold for $2,817Sold for $2,817
VC at $2,107VC at $2,107
CM of $714CM of $714
Where Do We Want To BeWhere Do We Want To Be
Quantifiable ObjectivesQuantifiable ObjectivesSTL Market : 6,000 bandsSTL Market : 6,000 bands
Regional non-major: 5,000Regional non-major: 5,000
Chicago: 10,000Chicago: 10,000
– 25% travel out of state / 75% play 25% travel out of state / 75% play locallylocally
In Need:In Need:1,500-4,500 locally1,500-4,500 locally
Over 10,000 in the MidwestOver 10,000 in the Midwest
Where We Want To BeWhere We Want To Be
Sales ObjectivesSales ObjectivesCurrently earning a 31% ROICurrently earning a 31% ROI
Seeking a 5% Midwest market shareSeeking a 5% Midwest market share
5% X 10,000 = 500 buyers X $2,8175% X 10,000 = 500 buyers X $2,817
=$1.5 Million in Gross Revenues=$1.5 Million in Gross Revenues
(Contribution of $357,000)(Contribution of $357,000)
10% will purchase aftermarket warranty10% will purchase aftermarket warranty50 X $200 = $10,00050 X $200 = $10,000
Where We Want To BeWhere We Want To Be
Communication Objective RouteCommunication Objective RouteNOT traditional print ads. EXPENSIVE!!!!NOT traditional print ads. EXPENSIVE!!!!
Music community related websitesMusic community related websitesMajority of bands use these as communicationMajority of bands use these as communication
MESSAGEMESSAGEWe are musicians just like you. We understand We are musicians just like you. We understand
your needs and we will provide quality your needs and we will provide quality vehicles at the lowest prices available. Treat vehicles at the lowest prices available. Treat everyone not as a customer, but as a fellow everyone not as a customer, but as a fellow musician.musician.
Outflow of CashOutflow of CashRenting of Land/Lot/Office Space:Renting of Land/Lot/Office Space:
Rent/MonthRent/Month= $600 x 12months= $7,200 annually= $600 x 12months= $7,200 annually
Insurance- Vehicle & Medical: Insurance- Vehicle & Medical: Vehicle InsuranceVehicle Insurance= $12,000annually + $4,320 in = $12,000annually + $4,320 in
medical= $16,320medical= $16,320
Dealer’s License Fees & Planning: Dealer’s License Fees & Planning: Cost of LicenseCost of License= $280+$150 Bond= $330 annually = $280+$150 Bond= $330 annually
Purchase with Average Repairs:Purchase with Average Repairs:Vehicle PurchasesVehicle Purchases= 500 Cars x $2,100= $1,050,000.00 = 500 Cars x $2,100= $1,050,000.00
Wages & Taxes:Wages & Taxes:Gross Wages AnnuallyGross Wages Annually== $62,400+ $6,864 in taxes= $62,400+ $6,864 in taxes=
$69,264$69,264 Advertising:Advertising:
AdvertisingAdvertising= $1,000 + $500 + $2,000= $3,500 = $1,000 + $500 + $2,000= $3,500
Inflow of CashInflow of Cash
Gross Sales of Vehicles:Gross Sales of Vehicles:
500vehicles x $2,817 per vehicle=$1,408,500 500vehicles x $2,817 per vehicle=$1,408,500 Gross Sales of VehiclesGross Sales of Vehicles
Aftermarket Warranty Sales:Aftermarket Warranty Sales:
500 cars x 10% = 50 cars with warranty x 500 cars x 10% = 50 cars with warranty x $200= $10,000$200= $10,000
Profit ProjectionsProfit Projections
Total Sales:Total Sales: $1,418,500 $1,418,500
Total Costs:Total Costs: $1,146,614 $1,146,614
= = Profit:Profit: $271,886 $271,886
5 Year Implementation:5 Year Implementation:
Serving the local Saint Louis Market. Serving the local Saint Louis Market.
This will be accomplished by:This will be accomplished by:- - ad space on: stlpunk, stlscene, myspace. ad space on: stlpunk, stlscene, myspace.
- word of mouth - word of mouth
- developing personal relationships with influential - developing personal relationships with influential local bands local bands
- creating company merchandise (stickers, t-shirts, - creating company merchandise (stickers, t-shirts, pins) pins)
- flyering at venues- flyering at venues
10 Year Implementation10 Year Implementation
Serving Quad Cities, Louisville, Memphis, Serving Quad Cities, Louisville, Memphis, KC, Indianapolis, Columbia, Chicago.KC, Indianapolis, Columbia, Chicago.
Reach 5% total Midwest marketReach 5% total Midwest market (10,000 grouped musicians)(10,000 grouped musicians)
Accomplished by: Accomplished by:
- - ad space on: myspace, friendster, (other national ad space on: myspace, friendster, (other national sites) sites)
marketing database technology: to target specific marketing database technology: to target specific areasareas
- delivery service used- regional cities - delivery service used- regional cities
The End.