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. Company Background 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 Marketing Strategy 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 public. Taking XYZ from a private holding company to a public holding company and expanding its market share will be the focus of the flyer, limiting the amount of statistical information as it relates to the residential market. Analyzing the market will be beneficial in creating a target market for expansion.
The focus will be residential homeowners looking to upgrade and improve existing sites, owners of investment properties and private business owners looking to upgrade, improve existing site or building new structures. The flyer will use the reputation of XYZ, the stability and quality of work to edge out the competition. The flyer should specifically outlines the specialty trends noted in Services that will drive business towards XYZ. The company’s focus will be the residential construction and privately owned business construction but will target a specific market to streamline the qualified business to a more defined market.
This will not only help in market entry, but expanding the company’s already great reputation in this area of work. Financial Strategy This portion of the flyer will be most relevant to the transition from private to public company holdings. The financial forecast will include an analysis of the company’s financial records for the previous year. We will use the public exposure as a tool for public relations. Maria Kielmas a noted media strategist states, “The public exposure provided by an IPO can be an excellent public relations exercise”.
This will allow visibility at all levels of the construction industry. To increase the exposure of the flyer being both internal and external we would incorporate the financial strategies that will relate to compensation for the employees. As a company moves from private to IPO employees who are questioning the stability of the company and how this change will affect them present the biggest concerns. The flyer will address responses to these concerns. The flyer will focus on compensation Packages, incentive plans, benefit plans, and retirement plans for the internal use of the business.
The stability of the business and the longevity of its employees will also be a factor in the expansion and the external markets, the flyer must address these issues early to decrease employee turnover prior to the IPO. Design The flyer will need to be informative yet easy to read and understand. The corporate logo and brand will be easily identifiable on the front and backside of the flyer. The use of color will be limited as the focus should be on the information provided and less of the design itself. As the design will be for existing employees as well as potential shareholders, the verbiage will be common to both readers.
In an effort to retrieve first responders’ outlook on the changes, the flyer will include a returnable portion to the marketing department with a short survey of what will be happening at XYZ and the parties’ interest for additional information. Delivery The topic of expansion to a public offering is a very sensitive subject as it affects not only the clients, but also the employees. The care and sensitivity of delivery will be important to all parties, therefore, we recommend a gathering of small business units to discuss the potential changes and review as much information as possible from the flyer in these meetings.
Conclusion The result of this project should be informational yet simple. The transition for the company on a grand scale is a lot to undertake in one year’s time; however, the simplicity of the delivery of information will help ease the transition for owners, employees and clients. This is an exciting time in the business history of the company and the flyer should reflect that. The growth of the XYZ Construction will headline the flyer and create a reassurance that the company is and will remain at the top of the industry.