Vans for Bands
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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)

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Vans for Bands

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Vans for bands

Vans for Bands


A promotional plan

A Promotional Plan

BA 4700

MARKETING

MANAGEMENT


The need is there

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!!!

    • Expensive dealers

    • Trader publications.. a real nightmare

    • Very expensive rental companies

    • Neighbor down the street.


The need is met

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

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

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

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

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 be1

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

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

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

Profit Projections

  • Total Sales: $1,418,500

  • Total Costs: $1,146,614

    = Profit: $271,886


5 year implementation

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

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


Vans for bands

The End.


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