Marketing and Managment Analysis of Constantine Trucking Construction and Farm Inc - Case Study Example

July 19, Constantine Trucking OWNERS: Constantine Trucking Construction and Farm Inc. Street Address: 564 Albany Shaker Road Address 2: City, St Zip Code: Loudonville, NY 12211 United States of America. Telephone: 518-458-8294 Fax: 518-438-7257 E-Mail: lszesnat@constantineenterprises.com SECTION: 1 Table of Contents I. Table of Contents………………………………………………………………….1 II. Executive Summary………………………………………………………………2 III. General Company Description…………………………………………………..3 IV. Products and Services…………………………………………………………...4 V. Market Analysis………………………………………………………………….4 VI. Marketing Strategy……………………………………………………………...4 VII. Management and Organization…………………………………………………5 VIII. Financial Plan………………………………………………………………….6 IX. Appendices/ Reference………………………………………………………..7 SECTION2: Executive Summery Constantine trucking, farming and Construction Company are a force to reckon with in the category of construction, trucking and farming. Our company deals with providing services for hauling equipment and various types of soil, mulch and stone; and we have been providing quick transporting solutions (“Trucking Services”). We have the expertise and experience to complete the job regardless of its size, which means, that we provide services for both small and large-scale projects. Constantine trucking has made a name for providing quality hauling services for municipalities and major construction firms throughout the state of New York. We are easy to access as our trucks are made available on an hourly basis, and delivery can be arranged by the ton/yard, and we provide complete solutions for trucking needs on the go. 2a. Plan Highlights: Our main objective is to ensure client satisfaction through timely and fast delivery, and providing best-quality mulch, excavation services and related products. As the construction industry is booming currently, we have decided to expand our horizons in order to improve profit margins and increase local market share. We have also created organizational diversity into our product line by launching into farming industry and provide our freshly baked home-made bakery items and locally harvested organic produce. 2b. Key to success: The local transportation and trucking industry is booming at the moment, so in order to stay not just defendable but in a combative position, in an ever growing competition we have to focus upon quality as well as cost reduction strategies such as:  a) We can deliver daily, from a minimal 3 yards up to 1,000,000 yards with a fleet of trucks from one ton dump to dump trailers. b) We aim to achieve at least four large-scale contracts for the coming three years. c) Expand our customer base by venturing into other geographical areas to achieve a sustainable level of productivity d) increase marketing expenditures by 15% (“Trucking Services”). Section Three: Company Summary 3a. Vision: Constantine Construction Inc in Loudonville, New York is a licensed, insured and privately owned construction and Trucking Company which falls in the category of Trucking-Contract Hauling, excavating contractors’ mulch. It is in the business since 50 years (“Constantine Truck and Repair Service”). The prior vision of this company is to deliver top quality products and services. We are a dedicated team striving to expand our community, helping to maintain existing companies and assist our clients in fulfilling their transportation needs. We vow to cause a change in the quality of the local built and natural environments through our people, services, and expertise. This is our prime goal; our greatest asset is our people. We treat every client with personal interest, and prompt response. You can trust Constantine to deliver a cost-efficient, quality service on every project, whether it is a simple task involving transportation or a complex multi-disciplinary excavation project. We believe in cutting our costs and achieve environmental friendliness by using recyclable materials and sand. 3b. Mission: Constantine Construction Company, Inc. is committed to building trust and professional long-term relationships based on integrity, reliability and customer satisfaction. We will continue to meet the changing needs of our clients with our quality services delivered by the most qualified people, by using only the best techniques on the market and 4-hour service. 3c. Legal Structure: The Constantine Group is a private limited company, which places limited liability on its limited number of shareholders and certain restriction on its owners. These restrictions are described in the company’s Articles of association. Our company’s aim is to create more investment opportunities through the acquisition of investment capital. 3d. Management and Personnel Plan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ms. Laura Szesnat 0% $3500$3500$3500$3500 $3500 $3500$3500$3500$3500 $3500$3500 President/ CEO Mr. Richard Szesnat 0%$3500$3500$3500$3500 $3500 $3500$3500$3500$3500 $3500$3500 Vice-President Mr. Robert Zemmick 0%2000 $2000 $2000$2000$2000$2000$2000$2000$2000$2000$2000 General Manager Ms. Marie Shuman 0%$1500 $1500 $1500 $1500$1500$1500$1500$1500$1500$1500$1500 Assistant Manager Job Supervisor 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Temporary Employees 0% $6000 $6000 $6000 $6000 $6000$6000$6000$6000$6000$6000$6000 Total People 10 10 10 10 10 10 10 10 10 10 10 Total Payroll $16500$16500 $16500$16500$16500$16500$16500$16500$16500$16500 3e. Proposed Location: Single Location. No branches yet. 3f. Facilities Requirements: Direct supervision on site, scheduling delivering products on time, quality control, we also make sure that all work is done fulfilling all legal and timeline requirements and OSHA guidelines (Occupational Safety & Health Administration US). 3g. Operational Hours Section: 50 years in business. Call 24 hours for delivery. 4a. Product and or Service description  Trucking-Contract Hauling, Arrow Trucking, Jb Hunt Trucking, Car Transport Services, Hot Shot Trucking, Arrow and Schneider Trucking. Nursery farming, coal & mulch Products, etc. Our products include a variety of ground mulch and soil. 1) Number 1 and two washed Stone2) Pea Stone. 3) Crusher Run 4) Gray Stone Dust used in 5) Black Diamond Mulch. 6) Red Mulch 7) Top soil screened at ¾ inch rich soil on site. Used in garden, lawns, volley ball courts, etc. In addition to that our Farming supplys range includes, homemade freshly baked pies and organic vegetables and home-grown produce and much more (“Trucking Services”). 4b. Vendors: The Constantine inc. has signed supply agreement with Exude technologies for battery line; Tampa-Fay is the vendor for insurance, Douglas and co as Exhaust preferred vendor. c. Technology: Our Company uses Mobile Communication Systems (MCS), which is a communication tool that links trucks to dispatch centers. MCS can be installed by Specialized Mobile Radio Systems (SMRS) and Satellite Communication Systems (SATCOMM).  SMRS uses radio signals for positioning and to communicate with trucks to provide timely delivery. 4d. Expansion Opportunities: Our top soil and mulch are of highest standards. Our Company will strive to outdo our competitors by providing quality products with competitive pricing. Section Five: Market Analysis: New York transportation and excavation industry is booming at this point. There are a lot of construction and repair projects coming along. Our future marketing strategy constitutes that, we will be concentrating upon our viable and loyal large-scale customers and enhance growth opportunities by attracting more commercially appealing potential customers, we are famous for our Pick-Up or Same-Day Delivery. 5a. Target market definition: Our base target market constitutes New York and its suburbs at the moment; we plan to extend our target market by venturing into new geographical areas. 5b. Market needs: Strict cost accounting and supply management and intensive comprehensive project management capitalizing on our vast 50 years experience. 5c. Market trends: Low cost with better quality products and delivery schedules with reasonable pricing strategy. 5d. Market growth: Overall business growth over the past 10 years has increased by 22% and still estimated to grow soon. We plan to get new additions to our trucks and products. 5e. Competitive comparison Section: In a highly competitive transportation industry, the only ways to survive and excel is to provide low costs, technology with superior quality products. Section Six: Marketing Strategy Constantine Company does plan to market itself in a variety of different ways with an enhanced expenditure, in the beginning, referral system, will be used for localized businesses, and then, we will also air radio spots and publish ads in a number of regional commercial trade magazines. We plan to leverage our pre-existing contacts with topical real estate companies and finally, being a member of local Construction and excavation association we will receive timely updates about bids and projects. 6a. Value Proposition: Provide Value with growth opportunities, good products, and speedy trucks. 6b. Competitive Edge: Maximizing share holders worth, beat competition and win more projects by making use of detailed project planning, efficiency through accurate cost-benefit ratio, designing suppliers and labor agreements and stake holders needs, etc.  6c. Pricing Strategy: Bulk materials and mulch are provided in increments of cubic yards with very competitive prices and value packages for our most loyal customers. Section Seven: Financial Plan 7a. Sales forecast and assumptions: Sales forecast is always conservatively and modestly estimated. We expect sales to go down a little in 2012-13 as we are venturing into a new area and client base, as we have also started farming business. After the change eventually the sales are estimated to go up from the end of 2013 as we gain a higher market share with productivity. 7b. Sales Strategy: The most crucial element of profit is not just the sales but the bidding process in which competitor companies lay out their budget and cost estimates and tenders. Our company will offer a balanced package of quality of materials and services and time lines to win prestigious and anticipated projects. We as a Company will strive to outdo our competitors by providing superior quality products with competitive pricing and cost and in a short time span. 7c.Pro-Forma Profit and Loss Statement: - 2008 2009 2010 SALES $743,736 $880,434 $996,495 Direct Cost of Sales $535,525 $648,586 $734,085 Other Cost of Sales 0 0 0 Total Sales of Sales $535,525 $648,586 $734,085 Gross Margin $208,211 $231,848 $262,410 Gross Margin % 28% 26.33% 26.33% Expenses Payroll $180,000 $180,000 $212,400 Sales and Marketing and other expenses $2400 $2400 $2400 Depreciation $0 $500 $500 Rent 0 $500 $500 Utilities $1320 $1320 $1600 Insurance $3600 $3800 $4200 Payroll Taxes $27,000 $27,000 $ 27,000 Miscellaneous $2200 $2500 $3000 Total Operating Expenses $216,520 $218,020 $251,600 Profit before Interest and Taxes ($8,309) $13,828 $10,810 EBITDA $8,309 $14,828 $11,810 Interest Expense $3,498 $2,964 $2,564 Taxes Incurred $0 $3,259 $2,474 Net-Profit ($11,807) ($7,605) $5,773 Net Profit/ Sales -1.59% 0.86% 0.58% 7d. Source of financing: Truck-Lender-pride is our direct financer for our commercial heavy duty truck financing needs and trailer leasing (“Freight Shipping and Trucking in Constantine, MI”). Works Cited “Freight Shipping and Trucking in Constantine, MI”. Budget Freight Shipping. 2011. Web. 20 Jul. 2012. “Trucking Services”. Constantine Construction and Farm. n.d. Web. 20 Jul. 2012. “Constantine Truck and Repair Service”. superpages.com. 2009. Web. 20 Jul. 2012. Read More