Read the following and make a marketing plan:

ACCTG 860 ? Final Project Executive Summary Data Sheet ? December 6 ^th , 2014

MARKETING PLAN

Industry Profile

Current Size

Growth Potential

Industry Trends

Other Characteristics

Distribution Channels

Competitive Analysis

Direct Competition

Indirect Competition

Future Competition

Competitive Analysis

Market Analysis

Target Market Profile

Customer Profile

Future Markets

Market Penetration

Company Image

Customer Service

Location

Direct-Sales Force

Sales Representatives

Licensing or Distributors

Advertising and Promotion

Publicity

Transcribed Image Text:

4 Door Housing LLC Management Team Will, General Manager, Estimator Amy, General Contractor, Scheduler Meng, Realtor Industry Residential Housing Construction, Townhouses, Multiplexes Projected Year 4 DOOR HOUSING LLC Business Description The steady influx of military, students, and young business professionals into the Manhattan, KS community has created a growing demand for quality, yet affordable, housing. Our company aims to resolve this problem by building stylish townhomes in Manhattan that appeal to the market at a low price point that will also fit into their budgets. http://www.coolhouseplans.com/details.html?pid=chp-46855#top Market Our target market is students, young professionals, and military. This 1 Revenue $1,040,000 Projected Break-even Quarter 4 Funding Sought $200,000 loan (repayment of $50,000 per year for 5 years) Use of Funds Funds will be used to construct townhomes population typically has a lower income level, making housing options limited within the town area. In addition, this target market typically demands a more modem living space with ample amenities. 1. The present size of our market is approximately 30% of Manhattan's current population. This will continue to grow as the University expands and NBAF is completed. 2. The housing market is extremely sensitive to seasonal fluctuations. Our leadership team will be able to construct 8 townhomes (-1500 square feet each) during the first year. Construction of the buildingswill begin in early spring and conclude by late summer. 3. Each townhouse will include a two car garage, an open concept kitchen. living, and dining rooms, 2 bedrooms complete with their own private full bathrooms and walk-in closets, laundry room, and a bonus loft area. 4. According to estimating tools found at www.building-costs.net, typical gross margins on townhouses are about -30% in the Manhattan and surrounding areas. Competition There are several housing companies and builders within the area. Our townhomes will be marketed at $130,000 each. A simple search of the internet reveals several townhome listing in that price range. However, the listings are outdated and lack appeal. We believe that we can differentiate ourselves from our competition by building unique townhomes and multiplexes. Our designs are not typical row homes or boring traditional housing, but rather modern and appealing to the younger market. Production / Manufacturing Construction ofeachtownhouse will be subcontracted out to pre-screened, well-qualified contractors. Our management team will be responsible for being the General Contractor, subcontractor scheduling, obtaining estimates, establishing timelines, marketing, and selling our homes. Subcontractingout the construction work and keeping the rest in-house, will keep our costs low and allow us to sell at the $130,000 price point and still retain enough profits to build and maintain a successful business. Management 1. Will, General Manager. Will has a strong background in economics, accounting, and residential construction. He will obtain estimates from subcontractors and keep the construction projects on schedule. 2. Amy General Contractor. She has a strong background in project management and residential construction. She will be in the field monitoring the construction first hand. 3. Meng Realtor. She is a licensed real estate agent and has extensive experience in marketing. She will effectively market and sell our properties. Financial Plan We plan to build and sell 8 townhouses per year in our first two years. Most of our capital (80%) will be financed with commercial construction loans. We essentially have zero start-up costs and our overhead costs are minimal. Given our costs and business structure, we expect to be profitable by the end of our first year of business. However, in order to get started, we will need an initial investment of $200,000. Based on forecasting 8 townhouses built and sold per year, we expect our net income to be $90,000 per year. Therefore, we can offer our investors a quick return of their investment, a 4 Door Housing LLC Management Team Will, General Manager, Estimator Amy, General Contractor, Scheduler Meng, Realtor Industry Residential Housing Construction, Townhouses, Multiplexes Projected Year 4 DOOR HOUSING LLC Business Description The steady influx of military, students, and young business professionals into the Manhattan, KS community has created a growing demand for quality, yet affordable, housing. Our company aims to resolve this problem by building stylish townhomes in Manhattan that appeal to the market at a low price point that will also fit into their budgets. http://www.coolhouseplans.com/details.html?pid=chp-46855#top Market Our target market is students, young professionals, and military. This 1 Revenue $1,040,000 Projected Break-even Quarter 4 Funding Sought $200,000 loan (repayment of $50,000 per year for 5 years) Use of Funds Funds will be used to construct townhomes population typically has a lower income level, making housing options limited within the town area. In addition, this target market typically demands a more modem living space with ample amenities. 1. The present size of our market is approximately 30% of Manhattan's current population. This will continue to grow as the University expands and NBAF is completed. 2. The housing market is extremely sensitive to seasonal fluctuations. Our leadership team will be able to construct 8 townhomes (-1500 square feet each) during the first year. Construction of the buildingswill begin in early spring and conclude by late summer. 3. Each townhouse will include a two car garage, an open concept kitchen. living, and dining rooms, 2 bedrooms complete with their own private full bathrooms and walk-in closets, laundry room, and a bonus loft area. 4. According to estimating tools found at www.building-costs.net, typical gross margins on townhouses are about -30% in the Manhattan and surrounding areas. Competition There are several housing companies and builders within the area. Our townhomes will be marketed at $130,000 each. A simple search of the internet reveals several townhome listing in that price range. However, the listings are outdated and lack appeal. We believe that we can differentiate ourselves from our competition by building unique townhomes and multiplexes. Our designs are not typical row homes or boring traditional housing, but rather modern and appealing to the younger market. Production / Manufacturing Construction ofeachtownhouse will be subcontracted out to pre-screened, well-qualified contractors. Our management team will be responsible for being the General Contractor, subcontractor scheduling, obtaining estimates, establishing timelines, marketing, and selling our homes. Subcontractingout the construction work and keeping the rest in-house, will keep our costs low and allow us to sell at the $130,000 price point and still retain enough profits to build and maintain a successful business. Management 1. Will, General Manager. Will has a strong background in economics, accounting, and residential construction. He will obtain estimates from subcontractors and keep the construction projects on schedule. 2. Amy General Contractor. She has a strong background in project management and residential construction. She will be in the field monitoring the construction first hand. 3. Meng Realtor. She is a licensed real estate agent and has extensive experience in marketing. She will effectively market and sell our properties. Financial Plan We plan to build and sell 8 townhouses per year in our first two years. Most of our capital (80%) will be financed with commercial construction loans. We essentially have zero start-up costs and our overhead costs are minimal. Given our costs and business structure, we expect to be profitable by the end of our first year of business. However, in order to get started, we will need an initial investment of $200,000. Based on forecasting 8 townhouses built and sold per year, we expect our net income to be $90,000 per year. Therefore, we can offer our investors a quick return of their investment, a

Answer rating: 100% (QA)

MARKETING PLAN 1 Industry Profile Current Size According to the data from the First American Real Estate Corporation there were 23060 housing units spread throughout Manhattan Glaeser Gyourko Saks 200... View the full answer