Marketing Management Final MBA Program - August 2009

1. MARKETING PLAN
Denise Cook | Allison MacDonald| Tara McKay | Brian Ramos | Betty Seed
Marketing Management – Final Presentation

2. Our Company
 Mission Statement
Renovation Nation is a complete tool rental company providing products and services
to meet the needs of homeowners and construction professionals. Our goal is to
provide the highest level of service and expertise in the home improvement business.
Through our Renovation Nation Foundation, we fund many local activities that support
social and economic growth.
 Value Proposition
 Convenience
 Value
 Expertise
 Objective
 Serve as a resource to new homeowners, do-it-yourselfers, and contractors in the
community

3. Market Trends & Growth
U.S. general tool rental market generated $8.4b in 2008.
 Growing Do-it-Yourself Market
 Due to popularity of home improvement shows.
 South-Atlantic Region
 Rapid relocation to area.
 North Carolina Real Estate Market
 Today: Homeowners aren’t moving, they’re improving.
 Tomorrow: Projected growth in 2012.

4. Target Market
Homeowners
Target
Market
Contractors

5. Primary Market Research
 230 responses to 18 question survey
 91% have completed at least one home improvement
project
 Problems homeowners experienced:

6. Competition
 Home Depot
 Lowe’s
 True Value
 Other
(small independent retailers)
Renovation Nation target: 2.5% of market share in area

7. SWOT Analysis
Strengths Weaknesses
 Well formulated strategy  Lack of name recognition in area
 Proven management team  Start-up costs
 Expertise  Fitting Northeast approach/model into new
 Established delivery system demographic
 Value compared to alternative  Lack of familiarity with Southeast
market/culture
Opportunities Threats
 Serve additional customer groups (banks,  Competition from well known brands
realtors, foreclosures)  Slower market growth
 Enter new market or segments  Vulnerability to recession and business cycle
 Expand product line to meet broader range  Price wars with competitors
of customer needs  Competitors have superior access to channels
 Complacency among rival firms of distribution.
 Mergers, joint ventures or strategic alliances

8. Critical Issues
 Hiring knowledgeable and enthusiastic staff.
 Offering top of the line tools that are meticulously
maintained.
 Offering innovative communication technology to
customers.
 Provide competitive rates relative to big-box retailers.
 Sub-contract only with Handymen who are licensed,
reliable and reputable.
 Create an aggressive marketing and advertising
campaign to gain visibility.

9. What makes us different?
 Interactive Website & iPhone App
 In-home Consultants
 Vetted Handymen
 Delivery to Worksite
 Partnership with Realty Company
 “DIY” DVD’s & In Store Workshops
 New Homeowner Packet
 Community Involvement (Renovation Nation Foundation)

10. Five Year Financial Projection
2010 2011 2012 2013 2014
Revenue
Gross Sales $ 885,000 $ 1,017,750 $ 1,170,413 $ 1,345,974 $ 1,547,871
Cost of Goods Sold $ 265,500 $ 305,325 $ 351,124 $ 403,792 $ 464,361
Total Net Revenue $ 619,500 $ 712,425 $ 819,289 $ 942,182 $ 1,083,509
Expenses
Salary
Manager (3) $ 123,000 $ 126,690 $ 130,491 $ 134,405 $ 138,438
Rental Clerks (6) $ 132,000 $ 135,960 $ 139,920 $ 143,880 $ 147,840
Mechanic (1) $ 37,000 $ 38,110 $ 39,253 $ 40,431 $ 41,644
Fringe (18%) $ 52,560 $ 54,137 $ 55,740 $ 57,369 $ 59,026
Total Salary Expense $ 344,560 $ 354,897 $ 365,404 $ 376,085 $ 386,947
Occupancy Cost $ 45,000 $ 46,350 $ 47,741 $ 49,173 $ 50,648
Promotion/Advertising $ 10,000 $ 12,000 $ 14,000 $ 16,000 $ 18,000
Inventory Replacement $ 2,655 $ 6,107 $ 10,534 $ 16,152 $ 23,218
General & Administrative $ 53,100 $ 61,065 $ 70,225 $ 80,758 $ 92,872
Operating $ 132,750 $ 152,663 $ 175,562 $ 201,896 $ 232,181
Total Net Expenses $ 588,065 $ 633,081 $ 683,464 $ 740,064 $ 803,866
Net Income/Loss $ 31,435 $ 79,344 $ 135,824 $ 202,118 $ 279,643

11. Break-even Analysis
$1,200,000
$1,000,000
Break Even Point
$771,964
$800,000
$600,000
$400,000
$200,000
$-
2010 2011 2012 2013 2014
Revenue Fixed Costs Total Costs

12. Questions & Answers