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Vans for Bands: Affordable Transportation for Musicians

Vans for Bands is a company that offers low-cost used conversion vans to musicians, bands, and record labels. We understand the unique needs of musicians and provide quality vehicles at the lowest prices available. Our goal is to serve the niche market of musicians who require affordable transportation for their equipment and gigs.

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Vans for Bands: Affordable Transportation for Musicians

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  1. Vans for Bands

  2. A Promotional Plan BA 4700 MARKETING MANAGEMENT

  3. 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.

  4. 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.

  5. 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.

  6. 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

  7. 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

  8. 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

  9. 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.

  10. 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

  11. 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

  12. Profit Projections • Total Sales: $1,418,500 • Total Costs: $1,146,614 = Profit: $271,886

  13. 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

  14. 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

  15. The End.

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