Denise Cook | Allison MacDonald| Tara McKay | Brian Ramos | Betty SeedMarketing Management – Final Presentation

MARKETING PLAN

Our Company

Mission StatementRenovation 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.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

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 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.

Target Market

Homeowners

Contractors

Target Market

Primary Market Research

230 responses to 18 question survey 91% have completed at least one home improvement

project

Problems homeowners experienced: Problems homeowners experienced:

Competition

Home Depot Lowe’s Lowe’s True Value Other

(small independent retailers)

Renovation Nation target: 2.5% of market share in area

SWOT Analysis

Strengths Weaknesses Well formulated strategy

Proven management team

Expertise

Established delivery system

Value compared to alternative

Lack of name recognition in area

Start-up costs

Fitting Northeast approach/model into new

demographic

Lack of familiarity with Southeast Value compared to alternative Lack of familiarity with Southeast

market/culture

Opportunities Threats Serve additional customer groups (banks,

realtors, foreclosures)

Enter new market or segments

Expand product line to meet broader range

of customer needs

Complacency among rival firms

Mergers, joint ventures or strategic alliances

Competition from well known brands

Slower market growth

Vulnerability to recession and business cycle

Price wars with competitors

Competitors have superior access to channels

of distribution.

Critical Issues

Hiring knowledgeable and enthusiastic staff.

Offering top of the line tools that are meticulously maintained.

Offering innovative communication technology to 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.

What makes us different?

Interactive Website & iPhone App

In-home Consultants

Vetted Handymen

Delivery to Worksite Delivery to Worksite

Partnership with Realty Company

“DIY” DVD’s & In Store Workshops

New Homeowner Packet

Community Involvement (Renovation Nation Foundation)

Five Year Financial Projection

2010 2011 2012 2013 2014

RevenueGross 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

ExpensesSalarySalary

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

Break-even Analysis

$800,000

$1,000,000

$1,200,000

Break Even Point$771,964

$-

$200,000

$400,000

$600,000

2010 2011 2012 2013 2014

Revenue Fixed Costs Total Costs

Questions & Answers