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years, 50 personnel will be required to meet the demands of the proMs. Jonstone comes from a diverse background in finance and jected market. These staff requirements will include personnel in the management. She served as a Department Manager for 12 years at following areas:

VALUE Department Stores and House and Yard, Inc.

management, Ms. Jonstone has been overseeing the Finance Department for marketing, Home Improvements, Inc., since the company's inception.

sales, Roger Armstrong, Director of Marketing.

engineering, Mr. Armstrong's background in sales and marketing has been a customer relations, big asset to the company. After earning a degree in marketing, Mr. Arm administration, strong went to work as a sales representative for Steel Boxes, Inc. He manufacturing, enjoyed a successful career there.

skilled assembly labor, Mr. Armstrong then moved on to a management position with the field service technicians.

multinational corporation Better Products, Inc. As a manager, he was involved with day-to-day operations of inventory control, hiring and Product Description training personnel, and developing departmental policies and proceHII products are manufactured in Japan, Korea, Florida, and dures.

South Carolina, then assembled in Anywhere, Arizona. State-of-the-art Mr. Armstrong also worked for Top Aluminum for three years, tooling and strict quality control procedures produce dependable, cuswhere he earned the Top Sales Representative Award for the entire tom-hardened aluminum alloy siding.

United States.

To fight against weather conditions, each panel is technologically Sample Business Plan.

slotted and overlaid on fiberglass insulation of high density. This proMr. Armstrong has enjoyed a high degree of success at HII. He vides extra insulation value inside the HII siding panel during the entire has helped develop the present sales and marketing structure of the year.

company. As a sales professional, he trains and assists new sales repreTrim pieces and eave underpanels are made from extruded alusentatives. As a Marketing Manager, he is involved with development minum that give the final touches to an attractive product along with of marketing strategies and market research.

securing additional energy efficiency.

John Herbert, Manager of Production.

The colors available are White Cream Dark Brown Dark Wood Mr. Herbert has a solid ten years of qualified experience specifiGrain Beige Sky Blue Aqua Green Sunflower Yellow.

cally in the siding industry. His knowledge of the requirements for proper installation is an important asset to the company.

101 Custom colors can be chosen from HII's Custom chart, which in- Requirements set forth by U.S. regulations. The test resulted in a percludes an additional forty colors to choose from. Delivery times for cus- formance that is highly superior to that which the regulations require.

tom colors are usually three weeks longer than for our standard colors.

Product / Service Life Cycle The life cycle of HII aluminum siding is estimated to be 60 years.

Pay Back The manufacturer's warranty covers all exterior parts for 5 years.

For most customers, HII siding and double-pane windows will pay for themselves in terms of energy savings within 12 years. Research Market Analysis has proved that between 10 percent and 15 percent savings of annual energy costs may be realized by each homeowner. During the hotter Market Definition months, HII siding and windows intercept solar radiation, thus providCurrently, the Arizona market distribution is shared by nine paring insulation value that allows air conditioners to work about 30 perticipants. Home Improvement, Inc., enjoys approximately 30 percent of cent less.

this market share. There are four other major competitors that share an In the winter, HII aluminum siding and double-pane windows approximate 60 percent, and the remaining competitors share a comprovide a pleasant insulating blanket. This insulated exterior shield bined total of 10 percent.

keeps the cold air from entering, and keeps the heat inside the home.

The stability of this market segment is expected to increase.

Here are a few of the other outstanding features of HII aluminum However, some volatility has been introduced to the market with the siding:

announcement of a national recession.

premium quality and efficiency, The exterior aluminum siding market is growing at a rapid rate.

lower warranty costs, The market for siding in the United States is virtually untapped. The improved energy-efficiency, United States is a very immature market with tremendous growth poten improved home value.

tial.

Even a moment's reflection will prove that personal satisfaction Over the past 3 years, companies have developed and shown the in one's home is worth a fortune. There really isn't a price one could additional features that can be provided for this type of industry. These place on the peace of mind that our products give to the home owners.

companies have focused on the use of technological advances to steadThese are some of the nonmonetary benefits of owning HII aluminum ily improve the quality of aluminum in exterior siding.

siding.

The report, New Consumer Product Reports, also states that firms selling home value added products will prosper greatly in the coming Useful Purpose and Key Benefits decade.

These combined capabilities provide added value, energy savings, noise abatement, and protection from storms.

Strengths This, in turn, can be used to create a sense of greater need in the In marketing, our most powerful assets are the uses of television minds of customers. These are benefits that are worth the extra money and radio for advertising and promotion. The public awareness of the and, during our history, have convinced customers to buy from HII.

HII products and services has been greatly enhanced due to our intense advertising policies.

Tests With a 30 percent market share, HII has the largest share of the Completed tests have shown that HII aluminum siding has been market spread among six other competitors. This is not only due to our subjected to many tests of impact by hard and soft objects. These tests are marketing strategies but includes our superior customer service.

in accordance with the common rules of the Product Durability Testing 103 Weaknesses Housewife There are some handicaps inherent in our market. The only nota- Age:.................................................................... 35ble marketplace disadvantages are the prices that customers believe they Income:............................................................... Fixed will have to pay for their home beauty and energy efficiency. Typically, Sex:..................................................................... Female an average job will cost around $13,000, if the entire home is covered Family:................................................................ Full nest with siding and double-pane windows. Geographic:........................................................ Suburban Corporate weaknesses, at this time, consist only of not enough Occupation:........................................................ Housewife sales personnel. However, we are taking steps to interview competent Attitude:.............................................................. Security-minded sales professionals, which we feel should alleviate this problem.

There are no environmental threats with our product. Married Couples Age:.................................................................... 35Customers Income:............................................................... Medium to high The person who influences the decision to buy is the housewife.

Sex:.................................................................... Male or female She will also permit the purchase to be made. Generally speaking, the Family:................................................................ Married or no children housewife is the person who will also choose the color and the areas Geographic:........................................................ Suburban where the siding will be added to the home.

Occupation:........................................................ Varies The most typical customers for our product / service are houseAttitude:.............................................................. Security-minded, holds earning between $30,000 and $50,000 per year, and retired perenergy-conscious sons living in middle- to upper-class housing developments.

Older Couple It is likely that potential customers are going to be familiar with Age:.................................................................... 55aluminum siding and double-pane windows, and that they will readily Income:.............................................................. High or fixed accept our advertising approach, provided that we educate them in the Sex:.................................................................... Male or female proper manner. It is also important to point out that our marketing and Family:................................................................ Empty nest advertising efforts have been targeted to people concerned about home Geographic:........................................................ Suburban added value and energy efficiency, and to retired individuals.

Occupation:........................................................ White-collar or retired It is easy to understand why the principal buying motives are Attitude:.............................................................. Security-minded geared toward our products, because retired persons and housewives are looking for added comfort in and around their homes.

Elderly Research indicates that these groups of customers are not as senAge:.................................................................... 70+ sitive to pricing differences among competitors. In fact, research also Income:............................................................... Fixed indicates that these people are willing to spend their money on ways Sex:..................................................................... Male or Female that will improve their way of life. It is our task to educate the customer Family:................................................................ Empty nest on the superior quality of our products and service.

Geographic:........................................................ Suburban Occupation:........................................................ Retired Attitude:.............................................................. Security-minded 105 Competition Quality 4 Competitive threats today come primarily from three major comTechnology 4 petitors, and three other dealers in Arizona.

Advertising effectiveness 2 HII's products perform in virtually all situations where there is a Sales force excellence 3 home or office where the siding and windows can be added.

Distribution 3 The ability to offer superior beauty, with full capability to proSeriousness of competition 3 vide an insulating blanket for the home or office, is unique to such an Price 4 attractive addition to any building or structure.

Our research indicates that its performance is superior to any- Installation 4 thing else on the market today. In all comparisons, the products that HII Ease of use 4 provides have more features and have superior performance than comAppearance 3 petitive products. In most cases, the number of differences is substanQuality 3 tial. A complete technical comparison is available.

Design 4 Useful life 4 Competitive Products and Services Companies that compete in the U.S. market are Home Siding Responsiveness 3 You (HSY), U.S. Aluminum (USA), North East Siding (NES), and 24-Hour availability/support 1 Quality Home Products (QHP). All companies mentioned charge comTechnical expertise 4 petitive prices.

Repair service 3 Most of these products do not provide the same capabilities when Efficiency 3 the construction of the siding is compared to HII's product.

Guarantee/warranty 5 For example, our aluminum siding has been subjected to many On-time capability 4 trials of impact with hard and soft objects, in accordance with the common rules of the Product Durability Testing Requirements set forth by Upgrades 4 U.S. regulations. It turned out to be highly superior to what the regulaStanding in industry 3 tions require.

Observations and Conclusions Sample Business Plan It appears from the above information that some of our competition is faring well in this tough market. However, its clearly apparent that HII is Competitive Roundup offering a superior product and service at a competitive price.

The following chart compares illustrates how HII with the competition in several different key areas.

Competition HII Estimated Share of Market (HSY, USA, NES, QHP) 60 % 30 % Rank:l=Weak to 5=Strong Product line 4 107 Cross Cultural Observations Promptness, meeting deadlines In The Business Environment Competitiveness on all levels Non-competitive approach to work General: This document identifies some of the cross-cultural difAmbition is a positive value Ambition is not such a positive ferences that occur when' Russian employees work in Western compavalue nies. There is no right and wrong on the list. The list merely points out how the expectations of Western managers may differ from typical Practicality, efficiency: use of Russian behaviour. It must be also stressed that not all Western managpert charts, timeliness, mile- ers are this way and not all Russian employees are this way. We must stones, etc.

always attempt to avoid stereotype thinking.

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