XYZ Construction Marketing, Inc. Marketing Plan
This marketing plan will develop the expansion of the XYZ Construction, Inc. from the state and federal supported construction industry to the private and residential construction industry. The growth of the company as well as the future goals are to be developed through a marketing plan that will a strategy to enter a market that has not been explored previously. The next twelve months the company will seek development in all areas of the business that will transform the ownership from private to public. Bryant Consultant brought in as a contractor will help develop a marketing plan as the first step in the transition. Through this relationship, the development of a marketing flyer and other marketing materials they will distribute to current and future customers outlining key offering. The plan will consist of four phases outlining the following, services, marketing strategy, financial strategy, design and delivery.
XYZ Construction, Inc. is a family owned business, which has existed since 1950. A privately owned company, their success has been in state and federally funded projects tailored to roads, airfields and bridges. XYZ Construction currently has 16 field offices located in 11 states with a headquarters in Denver, Colorado. With the majority of their experience being in projects that relate to road and airfields the staff currently, consist of equipment operators, civil engineers and project managers. The company’s staff will expand to meet the needs of the changes XYZ will face during the transition from private to a public offering company. The company currently has 2,300 year round employees (Kroeten, 2013) Services
Currently XYZ Construction, Inc. services the commercial area. The local units create highways, roads and other avenues of transportation expansion. In the area of commercial construction, XYZ services the design/build, excavation and paving of new and existing roads in the 11 states. They currently lead the market in the Western Region with the highest number of awarded state and federal bids. With over 60 years of experience in the commercial area and the support of many vendors and agencies, XYZ has determined to be successful in the IPO the expansion of business is necessary. The move to residential and private sector business will open the door for additional services, however the marketing will be vigorous as this is a very competitive market. The flyer will outline the services offered, but more importantly, it will outline the reputation of the company, which is important to 90% of most homeowners (Jefferies, 2011). The standards of reputation are extremely high in the residential market and homeowners look for the following; stability, experience and customer service (Jefferies, 2011). We would recommend that XYZ not attempt to tackle the market as a whole, but create an area of specialization to enter the residential market. The areas in which we recommend that XYZ attempt to enter the market are the following: * Concrete – foundation, driveways, porches
* Excavation – clearing property to start residential project
Prior to creating a flyer, that will distinguish XYZ from other construction companies in the residential market area; we must first analyze the market to determine who will be included in distribution. According to the U.S. Census Bureau 2012 report released in December, privately owned business construction permits were up 1.1% from 2011 (U.S. Department of Commerce, 2012). As this number is low in comparison to previous years, the expectation is for growth in 2014 and 2015 based on economic outlooks (U.S. Department of Commerce, 2012). The effect this will have on the expansion into the residential market will be heavy in comparison to the effect of taking the company...