Coastal Pipe Company

Résumé du document

Coastal Pipe Company is a division of the Arnol Corporation. The firm is facing hard times, and Alan Buford, manager of the corporation has had to come up with a specific marketing strategy plan to stop the losses. At present, the company is experiencing several losses. Our task is to help Sir Buford to make the right decisions and to provide support for constant growth in the future. We will focus our study on the needs and demands of the Plastic Pipes Market Segment and study the eventual growths of each market and the potential of the firm to elaborate profits. In the same time, we will elaborate a plan of action concerning the promotion, distribution, transportation, pricing and competition of the company.

Extraits

[...] Reduce the number of salespeople, and train distributors to apply for the whole after-sale process, including instalment and repairs To increase commission based on the result of sales by each distributor, but keep control on the price to a point where sales could well correspond with production. Stimulate distributors by changing pricing policy, offering more reimbursement when sales capacity is high. So distributors can stabilize prices by themselves according to the commercial environment Promotion and sales 1. Increase advertising investment. Especially on local and regional market, this will save cost and since plastic pipes transportation cost a lot, local and regional markets are more important! 2. [...]

[...] Coastal Pipe Company Plan I. Introduction 1 A. Problem Description 1 B. Problem Specification 1 II. What sort of challenges Alan Buford has to deal with? 1 A. Executive summary Summary of the diagnostic Main objectives Proposal of actions 2 B. Issue Analysis Internal and external Diagnostic: the SWOT model Competitive environment: Porter's 5 Forces Key success factors 4 III. [...]

[...] It makes recommendations and proposes changes that should be done. For example, the company should select and operate on specific markets, be more dynamic by investing in new machines and settle close to manufacturers to reduce transportation costs. All these are considered as key success factors permitting the company to provide a support for a constant growth in the future Issue Analysis 1 Internal and external Diagnostic: the SWOT model 2 Competitive environment: Porter's 5 Forces Force of the suppliers: (not very important) Coastal Pipe buys its raw materials from the large national petrochemical suppliers. [...]

[...] Force of the clients: (relatively high) Coastal Pipe sells the majority of its plastic pipe trough distributors. The number of pipe manufacturers in the market is higher than the distributor's one which means that they are free to choose the company which propose the lower price. Competitive rivalry within industry: (high level of competition) Many companies are present on the national market. However, on the national market, only three firms are dominating 60% of the Northwest Market (concentrated market). Small companies of the market have found ways to differentiate their product (PJ&J is specialised in the ABS production is able to resell it for less than it would cost to Coastal Pipe) Key success factors to select and operate on specific markets. [...]

[...] PVC is the most productive and the most versatile, so Coastal Pipe should stabilize its production and make effective differentiation on its brand, thus grade up the image of the company. Sales and promotion should mainly concentrate on civil-use market, because in industrial market, several strong competitors are occupying External 1 Place (focused markets) Concerning the transportation, the idea is to avoid long transport from the production's place to the “customer” ( producing for the region. Concerning the products, which are meant to leave for other regions, trying to fix a compromise with other distributors (competitors) to share the transportation' costs Merger and acquisition National manufacturers are dominating the market and are able to impose their prices. [...]