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)
…AND A VEHICLE FOR TRANSPORTATION!!!
1.
2.
3.
4.
Expensive dealers
Trader publications.. a real nightmare
Very expensive rental companies
Neighbor down the street.
The 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:
Vans for Bands is new to market- small amount of
resources available, need large amount of funds.
Company located hour away from downtown.
Entire physical inventory made up automobiles that
suffer from rapid depreciation, need on-the-lot repairs,
and maintenance.
Majority of target market under 21- difficult to finance
and unable to afford.
Inefficiency of traditional print ads to reach the target
audience.
Potential customers may live out of
state.
Our Current Situation
In 2004:
Sales reached nearly $65,000 (56% in Q2)
$10,200 in cash and liquid assets.
Average Vehicle
Mid 90’s make
Sold for $2,817
VC at $2,107
CM of $714
Where Do We Want To Be
Quantifiable Objectives
STL Market : 6,000 bands
Regional non-major: 5,000
Chicago: 10,000
– 25% travel out of state / 75% play locally
In Need:
1,500-4,500 locally
Over 10,000 in the Midwest
Where We Want To Be
Sales Objectives
Currently earning a 31% ROI
Seeking a 5% Midwest market share
5% X 10,000 = 500 buyers X $2,817
=$1.5 Million in Gross Revenues
(Contribution of $357,000)
10% will purchase aftermarket warranty
50 X $200 = $10,000
Where We Want To Be
Communication Objective Route
NOT traditional print ads. EXPENSIVE!!!!
Music community related websites
Majority of bands use these as communication
MESSAGE
We are musicians just like you. We understand your
needs and we will provide quality vehicles at the
lowest prices available. Treat everyone not as a
customer, but as a fellow musician.
Outflow of Cash
Renting of Land/Lot/Office Space:
Rent/Month= $600 x 12months= $7,200 annually
Insurance- Vehicle & Medical:
Vehicle Insurance= $12,000annually + $4,320 in medical= $16,320
Dealer’s License Fees & Planning:
Cost of License= $280+$150 Bond= $330 annually
Purchase with Average Repairs:
Vehicle Purchases= 500 Cars x $2,100= $1,050,000.00
Wages & Taxes:
Gross Wages Annually= $62,400+ $6,864 in taxes= $69,264
Advertising:
Advertising= $1,000 + $500 + $2,000= $3,500
Inflow of Cash
Gross Sales of Vehicles:
500vehicles x $2,817 per vehicle=$1,408,500 Gross
Sales of Vehicles
Aftermarket Warranty Sales:
500 cars x 10% = 50 cars with warranty x $200=
$10,000
Profit Projections
Total Sales: $1,418,500
Total Costs: $1,146,614
= Profit:
$271,886
5 Year Implementation:
Serving the local Saint Louis Market.
This will be accomplished by:
- ad space on: stlpunk, stlscene, myspace.
- word of mouth
- developing personal relationships with influential local bands
- creating company merchandise (stickers, t-shirts, pins)
- flyering at venues
10 Year Implementation
Serving Quad Cities, Louisville, Memphis, KC,
Indianapolis, Columbia, Chicago.
Reach 5% total Midwest market
(10,000 grouped musicians)
Accomplished by:
- ad space on: myspace, friendster, (other national sites)
marketing database technology: to target specific areas
- delivery service used- regional cities
The End.