Recuperat
e Presents
Jacob Bagwell
Tyler Eldridge
Katie Gill
Jorge Leyva
Joseph Loya
Custo
Chair
s
Marketing II
Period 6
1
Custo Chairs
Table of Contents
Title Page……………………………………………………….1
Table of Contents…………………………………………..2
Executive Summary……………………………………… 3
Situation Analysis……………………………..……..…4-5
Marketing Strategy…………………………………….6-8
Financials………………………….………………………… 9
Controls…………………………..………………………..…10
Promotion Example: Social Media …….………….a
Promotion Example: Newspaper Ad……...……..b
2
Executive Summary
Recuperate has expanded the market for recliners by creating it into
something much more than sitting in it. The product, “Custo Chairs”, is the
ultimate multi-media chair with multiple possibilities including TV, computers,
and your favorite game system. Custo Chairs will be marketed to an adult target
market that is electronic savvy that is in Las Vegas but will soon reach out beyond.
Custo Chairs will also be establishing social networking capabilities and other
means of advertisement including local newspapers.
Custo Chairs reasons for a local market is so Custo Chairs can establish a
foundation for our company and try to build up before entering a very large and
expensive operation. Custo Chairs is in a very competitive market because of
large established corporations but the economic environment of today is a great
time to reach out with our niche of a full-feature, multimedia chair to compete
against the establishment. Custo Chairs will be using our retail partners, Best Buy
and GameStop, to effectively reach our technology savvy target market but also
to have strong, established partners for our goal of expanding to other regions.
This industry can be a pricy industry but our efforts to keep cost low and
our operations efficient are effective. Custo Chairs has a low cost lease
agreement with a local warehouse to open up production as soon as possible
while keeping a low lease payment for the year. Custo Chairs is also going to
employ as few employees as possible while maintaining a strong and effective
workforce.
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Situation Analysis
 Marketing Summary
o Target Market
 Demographics
 Men and Women
 Ages 18-40
 Psychographics
 Electronic Savvy
 Working in a comfortable space
 People that are interesting in modern technology
 Geographic’s
 Las Vegas, Nevada and surrounding area
o Market Needs
 People in the market for a recliner are looking for high quality
designs that will last a long time. We offer quality parts.
 Consumers want to have a fashionably design that is reliable
and comfortable to sit for long periods
 Consumers will expect efficient customer service when they’re
looking to invest a fairly high sum of money in to a piece of
furniture
o Market Trends
 Recliner chairs are not considered crucial to the home setting.
 Marketing must convince the consumer that this product
brings one’s convenience.
 Attract the consumer with the whole presentation of the
product.
 SWOT Analysis
o Strengths:
 A simple chair with multimedia capabilities (Full blown
computer ability) that is not around.
 Focusing on select stores for retail (Target Market)
 Best Buy
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 Game-Stop
 Custo Chairs uses money saving methods
 Using retailers instead of our own retail
o Weaknesses
 Competition with large, established companies
 Pricy industry because of materials and labor
 Limited production capabilities
o Opportunities
 Main stream companies weakened by economic recession
 Our chance to sell our niche to consumer through selected
retailers
 Can hit the market strong with a new product
o Threats
 Large established companies often have back up finances
 The idea of a multimedia chair can also be easily taken by
other companies
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Marketing Strategy
 Mission
o “A CUSTO Chair makes life awesome! We want to provide an
unforgettable experience while you sit back and relax without the
inconvenience of getting up.”
 Marketing Objectives
o Establish a fruitful relationship with retail partners
o Establish a fruitful relationship with suppliers
o Sell our niche through stores that our target market will routinely
shop at
o Expand production capabilities by the end of our first year
o Expand our market into Southern California in 2 years
 Financial Objectives
o Revenue projections are $1,040,000 per year
o Profit projections are $260,000 per year
o All numbers based on selling our chair at $400 to retailers
 Plan for selling at $600 retail price
o Plan to keep material and labor cost at $250/chair or lower
 Target Markets
o Ages: 18-40
o Male and female
o All ethnicities
o Electronic savvy people
 Positioning
o A new company with a $459,000
 Strategies
o Promotional activities
 Social Media
 Facebook
o Creating an account
 Allowing to be interactive with customers
(establishing customer loyalty)
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 Have information and post it through
updates and invites
 Twitter
o Creating an account
 Allow customers to follow us
 Posting updates and information about our
chair
 Newspaper Ads
 In technology section
 Best Buy Ads
 Game Stop Ads
o Coordinating with retail partners and using their resources to our
advantage
 Marketing Mix
o Product
 Custo Chairs
 Multi-media recliner chair
 1 Model of the Chair
o Black synthetic leather
o Foam and cotton interior
 Attachable items
 Mounts
 Speakers
 Computer screens
 Keyboard
 Game systems
 TV
 Computer
 Power plug-ins
 Small tray
o Price
 Retail: $600.00
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 Wholesale: $400.00
 To the retailers only
o Best Buy
o Game Stop
o Place
 Through Retailers
 Best Buy
 Game Stop
o Promotion
 Social Media
 Facebook
o Creating an account
 Allowing to be interactive with customers
(establishing customer loyalty)
 Have information and post it through
updates and invites
 Twitter
o Creating an account
 Allow customers to follow us
 Posting updates and information about our
chair
 Online Ads
 Banner
 Strategic alliances with retailers
 Best Buy
 Game Stop
 Newspaper Ads
 In technology section
 Best Buy Ads
 Game Stop Ads
 Market Research
o Our chair is sold in the U.S.
8
Financials
 Property
◦ $58,028
 12-month lease
 Labor
◦ $65,000 (6 months)
 6 Floor Workers: $15.00
 2 Office Manager: $20.00
 Office Furniture/ equipment
◦ $4,000
 Computers
 Furniture
 Materials
◦ $324,000
 Based on 1,300 chairs over 6 months
 $250 material cost/chair
 Equipment (Chairs assembled by hand)
◦ $7,000
◦ Work Stations
◦ Small Tools/Equipment
 Promotion Costs: $1,000
 TOTAL: $459,000
 Revenue: $1,040,000/year
◦ (Selling to retailer at 400$/chair)
◦ Profits: $260,000/year
◦ About $100/chair
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Controls
 Implementation
o How are we going to make sure this happens
o Secure the property by setting money aside for paying the lease
o Trademark our invention, the Custo Chair
o Secure deals with retailers for sales by establishing a positive
relationship
o Work with suppliers to receive low cost, yet high quality parts and
supplies
 Marketing Organization
o President
 Tyler Eldridge
 Tyler has the overall authority and is responsible for the
direction of the company.
o Vice President
 Katie Gill
 Aids the President in decision making and oversees
other positions.
o Marketing Director
 Jorge Leyva
 Is responsible for advertising and maintaining a positive
image on or company/product.
o Production Manager
 Jacob Bagwell
 He oversees the chairs products; parts, labor, and
presentation.
o Art Director
 Joseph Loya
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 He is responsible for all the product styles and aids the
marketing director with the layouts of the
advertisements.
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