marketing objectives
Like any new company, we will have to pay initial sunk costs that we predict to be substantial due to our need for multiple delivery cars. Consequently, we understand that generating a profit in our first few years of operation may be unrealistic. With this in mind, we will focus on developing our market share in the initial years of operation to increase our ability to generate profits later. To build market share, we will focus on the following areas:· Increasing awareness within our target market· Encouraging our target market to use our service· Covering enough expenses to remain in businessWe believe that these objectives will develop our market share and, at the same time, provide our company with enough revenue to control our debt.Increasing Awareness Within Our Target MarketWe at Time Savers are fortunate to have the ability to analyze a service similar to ours already in operation. Time Finders has been in operation in the Ithaca market for several years and offers a similar service. We asked Time Finders what forms of advertising they found most effective for their particular service. They responded by saying that they had tried many forms of advertising and found most did not provide enough benef
According to our surveys, Time Finders was essentially unknown to our respondents. However, we still speculate that we will have to fill our delivery cars multiple times in one day. If we are able to reach our objective, we will have almost a ten fold awareness level over Time Finders and a significant competitive advantage. Our first years are going to be focused on developing market share while controlling our debt levels. Variable Cost Estimation:Employee Wages: We at Time Savers do not want to limit our potential customer base by including the need to tip our drivers. The vast majority of our potential customers has never used a similar service and, thus, may be hesitant to pay for it for the first time. At the same time, we want to pay a competitive rate, so that they will feel motivated to provide quality service. When we spoke with Time Finders, they revealed that they had earned their first profit after three years of operation. Currently, gas is selling for approximately $1. Please refer to Appendix C to review the particular responses. Administrative: This cost includes office supplies, phone bills, and internet fees. These cars utilize both combustion and electric power to increase fuel economy. Based on this information, we will pay our drivers $9. 00Maintenance and Insurance: We estimate that our delivery cars will get worn from the harsh weather and road conditions of Ithaca, so, we anticipate routine auto service to be around $500.
Common topics in this essay:
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,
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Acceptance Essays
