Treasure Valley Construction Company Case Study
Overview of TVCC Treasure Valley Construction Company (TVCC) was originally a partnership which was a well-established contractor in the Boise area. A Storm Window Division was created in 1997.
Demand Analysis
At the end of the first quarter of 1998, sales levels for TVCC within the storm window market (private home owners) were estimated at approximately 60% in Boise, Idaho. With first years sales expected to exceed 1.2 million dollars.
Target market consists of private home owners who require storm window installation. The private home owner segment is further delineated into an older home segment, since the storm window product is traditionally installed in older homes for weatherization and energy conservation purposes.
Competitive
Analysis Main competitors are other weatherization improvement companies who are servicing the other 40% of the storm window (private home owner) market in Boise, Idaho.
External Environment Analysis
Economic Analysis A trend has developed for energy conservation initiatives within the country due to energy shortage.
Political/Legal Analysis Wages were set according to local union scale even though there were no union members. Some employees were reluctant to pay dues and entry fees to join a union. Union leaders were satisfied with non-compliance and promised no effort to organize as long as wages and seniority rights conformed to union rates.
Climate Analysis Boise’s climate consists of its four seasons, in that experiences a spring, summer, fall and winter season with traditional climate conditions experienced as traditional (snow and ice in the winter and heat in the summer).
Technological Analysis Used Storm Window manufacturing equipment was purchased from a Seattle firm which had gone out of business.
SWOT
Strengths: -60% of Boise’s Storm Window market -no highly skilled labor force required -TVCC is a well-established company
Weakness:
-high turnover rate among labor force -seasonal slowdown during the summer months -weak sales initiative
Opportunity:
-the Parma School District bid -employee incentives
-energy conservation programs from the government for weatherization programs
Threat:
-not having the lowest bid among other bidders
-Old homes being torn down rather than remodeled
Marketing Program
Overall Strategy TVCC expects the Storm Window Division to maintain some continuity of production through its first year in the market.
Product Strategy Promote sales in the Storm Window Division for private home owners in the Boise, Idaho area. Also, maintain brand dealership and contractor orders for storm windows.
Marketing Communication Strategy An initial advertising effort was made promoting the new TVCC storm windows and relationships were sought after with building supply houses and home improvement contractors for base cost prices plus shipping.
Pricing Strategy Pricing strategy heavily depended on the “flinch method” for private home owner sales. Base cost prices plus shipping was used for building supply houses and contractors.
Demand Analysis
At the end of the first quarter of 1998, sales levels for TVCC within the storm window market (private home owners) were estimated at approximately 60% in Boise, Idaho. With first years sales expected to exceed 1.2 million dollars.
Target market consists of private home owners who require storm window installation. The private home owner segment is further delineated into an older home segment, since the storm window product is traditionally installed in older homes for weatherization and energy conservation purposes.
Competitive
Analysis Main competitors are other weatherization improvement companies who are servicing the other 40% of the storm window (private home owner) market in Boise, Idaho.
External Environment Analysis
Economic Analysis A trend has developed for energy conservation initiatives within the country due to energy shortage.
Political/Legal Analysis Wages were set according to local union scale even though there were no union members. Some employees were reluctant to pay dues and entry fees to join a union. Union leaders were satisfied with non-compliance and promised no effort to organize as long as wages and seniority rights conformed to union rates.
Climate Analysis Boise’s climate consists of its four seasons, in that experiences a spring, summer, fall and winter season with traditional climate conditions experienced as traditional (snow and ice in the winter and heat in the summer).
Technological Analysis Used Storm Window manufacturing equipment was purchased from a Seattle firm which had gone out of business.
SWOT
Strengths: -60% of Boise’s Storm Window market -no highly skilled labor force required -TVCC is a well-established company
Weakness:
-high turnover rate among labor force -seasonal slowdown during the summer months -weak sales initiative
Opportunity:
-the Parma School District bid -employee incentives
-energy conservation programs from the government for weatherization programs
Threat:
-not having the lowest bid among other bidders
-Old homes being torn down rather than remodeled
Marketing Program
Overall Strategy TVCC expects the Storm Window Division to maintain some continuity of production through its first year in the market.
Product Strategy Promote sales in the Storm Window Division for private home owners in the Boise, Idaho area. Also, maintain brand dealership and contractor orders for storm windows.
Marketing Communication Strategy An initial advertising effort was made promoting the new TVCC storm windows and relationships were sought after with building supply houses and home improvement contractors for base cost prices plus shipping.
Pricing Strategy Pricing strategy heavily depended on the “flinch method” for private home owner sales. Base cost prices plus shipping was used for building supply houses and contractors.