Bondo Wool Company Marketing Plan Presented by: Katie Dodge Jenna Jacobs Zoe Urrizaga

Market Analysis Business Proposition Strategies and Action Plan Financial Projection Evaluation

Market Analysis

Industry Trends 56% Increase of installation of hardwood floors Remodeling and Construction is creating a demand on the rug industry Customers are looking for rugs that are both functional and decorative

Industry Trends

Buyer Profile and Behavior Home owners much Business owners of (business offices) New home buyers Remodeling Women Buyer Behaviors Customers are not spending as money 100% of people survey find sets matching rugs to be most appealing Browns, blues, and reds are most popular 2x4, 3x5, and 8x8 are most popular Women are the ones that are purchasing rugs most of the time

Competitors Rug Vendors at Trade Shows Foreign Rug Manufactures Carpet Companies Rug Retailers

Competitors Strengths Weaknesses Nationally recognized Larger Scale Manufacturing Larger Customer Base Lacks Customer Relationship Lacks quality Manufactured product

Bondo Wool Co. Strengths Weaknesses Quality Functional and Decorative Handmade Produces own wool Locally owned & operated Superior Customer Service Convenient for Customers Low Price Structure Limited Distribution Small Consumer Base Current facilities/equipment

Current Sales Trends and Forecasts 88% favorite colors: blue, brown, red 100% desire different sizes of rugs 92% prefer matching rugs 60% of people have hard flooring 93% favor dual-purpose rug Forecast: Hardwood flooring is increasingly popular making a higher demand for rugs and floor coverings.

Business Proposition

Key Planning Assumptions Brochures in local flooring stores Ads in magazines and newspapers Develop Website Participation in Nevada’s Ag in the Classroom Provide Workshops

Primary Research After administering 250 surveys we found: 90% of the time women purchased rugs 93% of people prefer both a functional and decorative rug Sets of rugs are preferred Favored colors: brown, blue, red Finer wool rugs are more desirable

Target Market Craft Shows Online Rug Services Locally Based Businesses EBay Website Locally Based Businesses Local Shows

Measurable and Attainable Goals Short Term Expand Target market Increase production Increase and expand in advertising Develop website Long Term Self sustainable wool Expand consumer base Custom Rugs Change Suffolk to Ramboulliet

Strategy and Action Plan

Strategy Statement You currently have thirty head of Suffolk sheep and a small wool rug business. You want to expand your wool rug business to be more profitable. First you will sell your thirty head of Suffolk sheep and purchase thirty Ramboulliet sheep. You will increase advertisement of your wool rug business, focusing on multiple sizes and desired colors.

Marketing Channels Telephone: (775)-753-6121 Website: www.bondowool.com Address: 208 Charlwood Dr. Spring Creek, NV 89815 Advertising channels Newspaper ads Direct Mail Radio Broadcasts Business Brochures Word of Mouth

Promotion Word of Mouth Brochures in local businesses Website Magazine Ads Newspaper Ads Website

Public Relations Participate in Nevada’s Ag in the Classroom Sponsor raffles for youth organizations Workshops on process of making a rug

Product Attributes Handmade in the USA Naturally processed ranch grown wool Dual-Purpose Great Customer Service Previously Established

Financial Projection

Price Structure 2’ x 4’ rug: $80 3’ x 5’ rug: $120 8’ x 8’ rug: $180 Meat lamb: $100 24

Budget Income Current Year 1 Year 2 2’x4’ Rug Sales $4,000 $6,000 $8,000 3’x5’ Rug Sales $0 $21,000 $30,000 8’x8’ Rug Sales $9,000 $16,000 Sale of Suffolk Sheep $3,000 Sale of Meat $5,000 $10,000 Total $44,000 $64,000

Expenses Current Year 1 Year 2 Purchase of Ramboulliet Sheep $0 $4,100 Feed $3,780 $7,560 Wool Shearing $150 $300 Animal Insurance $450 $900 Business Insurance $1,000 Cleaning/ Processing Wool $1,400 $2,700 Wool Purchase $2,880 $3,400 $4,500 Shipping $1,140 $2,412 Utilities $2,580 Storage Facility Rental $30 $60 Webpage $230 $100 Advertisement $3,260 $4,074 Miscellaneous $1,500 Total $10,240 $23,020 $27,686

Budget Summary Total Profit -$1,240 $20,980 $36,314 Budget Summary Current Year 1 Year 2 Income $9,000 $44,000 $64,000 Expenses $10,240 $23,020 $27,686 Total Profit -$1,240 $20,980 $36,314

Evaluation

Evaluation This explains how the Silver Sage Marketing plan will successfully increase Bondo Wool Company’s overall income. Silver Sage Marketing will measure success by looking at: surveys from fairs and your website looking at rugs sold and in what variations customer feedback

Accomplishments A switch from Suffolk to Ramboulliet sheep Great customer service will ensure repeat business Short & Long term goals will be met Increase of sales by 100% Specialized wool sheep breeding operation Growth of Consumer Base

Recommendations Expansion of facilities Market for additional sheep by-products Selling breeding projects and show lambs for youth projects in 4-H and FFA Other wool products Process own wool

Thank-You! Silver Sage Marketing