D-Bamboo Home & Garden Shop Redhawks Consulting D-Bamboo Home & Garden Shop

Key Concern To ensure the long-term survival of D-Bamboo Home and Garden Shop

PESTEL Analysis Political Economic Social Technological Ecological 3 Branches of Government: Executive, Legislative, Judicial Parliamentary democracy Political pressure from Jamaat-al Muslimeen Economic Turbulent economic climate Excellent investment site for international business Growth Rate: 5.5% GDP Per Capita: $18,300 USD Public debt: 26.6% GDP Inflation: Social Population: 1.3 million Literacy rate: 98.6% Cultures: African 40%, Indian 40%, European Chinese, Middle Eastern Religions: Catholic 26%, Hindu 22.5%, 9 others each at approximately 10% or lower Languages: English, Caribbean, Hindustani, French, Spanish, Chinese Crime rate: Steadily increasing over past 3 years Technological Internet usage: 163,000 people Cell phones: 1,655,000 Televisions: 425,000 Radio: 680,000 Ecological Climate: Tropical with Rain season June-December Natural Resources: Petroleum, Natural Gas, Asphalt Current issues: Water and oil pollution, deforestation, soil erosion Legal Under English Common law Licensing required for importing plants and seedlings

Porter’s 5 Forces Suppliers New Entrants Buyers Substitutes Customers turn into suppliers Several local suppliers are used Large network of suppliers Equipment from larger hardware retailers New Entrants Rumor of new company entering market Buyers Willingness to travel significant distances 60% Working women 15% Retirees 10% Expatriate workers 10% Teenagers 5% Farmers Substitutes Self-grown Home gardens Industry Competitors New shop 1 km away New shop entering shopping mall Larger competitors offer similar products

SWOT Analysis Strengths Weaknesses Opportunities Threats Large product line Offers unique and exotic plants Loyal customer base Extended hours of operation Located in a high traffic area of town Excellent bookkeeping practices Weaknesses Expansion of car park decreased plants available for sale Limited promotion Lack of proper signage Shop not clearly visible to motorists Opportunities Provide plant rental service Relocation Increase pricing Partnering with local science teachers Better control supply chain Provide landscaping service Customer incentive program Threats Nearby shop opening offering similar pricing Turbulent economic state of Trinidad Competitors beginning to supply similar items

Marketing Mix Product Place Pricing - Located in heavily traffic area Consumer 60% Working women 15% Retirees 10% Expatriate workers 10% Teenagers 5% Farmers Product - Medium- to low-end plants - Gardening supplies - Ornamental flowers - Plant and vegetable seedlings - Bonsai, turtles, aquariums Place - Located in heavily traffic area - Recessed angle of building - Across the street from popular gas station - Main highway 200 meters from shop Pricing - 100% markup on plants < $20 - 50% markup on plants > $20 - 50% markup on shop items - 35% markup on items > $150 - No outdoor sign - Posters on roadside wall periodically - 30% discount on seedlings - Plant and balloon giveaways - Flyer distribution for grand opening and special events Promotion

Monthly Sales & Expenses 2007 2008 2009 Sales Revenue Expenses January $19,870 $10,531 $37,730 $20,752 June $34,945 $18,521 $43,475 $23,911 August $25,650 $13,595 $22,910 $12,601 October $34,865 $17,781 $36,235 $19,205 $21,820 $12,001 December $79,945 $47,967 $88,290 $54,740 $65,000* $35,750* Note: Amounts are in Trinidad and Tobago dollars * Projections for December 2009 by D-Bamboo owner.

Estimated Financials 2008 2009 Sales Revenue $491,000 $458,000 Expense $280,000 $252,000 Profit from Operating $211,000 $206,000 Note: Amounts are in Trinidad and Tobago dollars

Identification of Alternatives Relocation Major IMC Limited IMC Providing additional services Price increase Retreat Stay the same Customer Incentive

Alternative 1: Relocation $80,000 Initial Cost Depreciated over 10 years = $8,000 $5,000 annually 20% increase $81,000 per year

Alternative 2: Major IMC $40,000 Expense 40% (Conservative) $189,600 per year

Alternative 3: Limited IMC Three times current expense $2,250 Expense 7.5% (Average) $33,338 per year

Alternative 4: Additional Services $100,000 Total Expenses 35% Markup on high prices $135,000 Revenue $35,000 per year

Alternative 5: Price Increase 7.5% Decrease sales volume 5% Sales increase ($12,582)

Alternative 6: Retreat Decreasing equity Potential for growth Not feasible

Alternative 7: Stay the Same Decreasing profits Not feasible

Alternative 8: Customer Incentive $47,000 Discounts paid $51,700 Additional revenue $4,700 per year

Feasibility Relocation Major IMC Limited IMC Providing additional services Price increase Retreat Stay the same Customer Incentive

Weighted Average Competitive Strength Analysis Relocation Major IMC Limited IMC Additional Services Customer Incentive Profitability 0.4 3 1.2 1 Brand Image 0.3 0.9 2 0.6 Customer Loyalty 0.1 0.2 Accessibility 2.8 2.5 1.4 1.6 1.5

Budget $55,000 Cash Reserve $110,000 Credit Available $30,000 Cash

Recommendations Relocation Major IMC Limited IMC Additional Services Customer Incentive Score 2.8 2.5 1.4 1.6 1.5 Rank 1 2 5 3 4 Direct Cost 85,000 40,000 2,250 25,000 5,000 Available Yes No

Phases of Implementation Customer Incentive Program Relocation Integrated Marketing and Communications Campaign Milestone Review Long-term Planning

Phase I: Customer Incentive Program Time Frame: Upon approval of plan For every $100 spent 10% discount on next purchase Encourages return of customer

Phase II: Relocation Time frame: 0-12 months Ideal location: Close to the current location Availability of a green house Easily seen from street New sign installation

Phase III: Limited Integrated Marketing & Communications Time frame: The move - Ongoing Use of Flyers and posters Internet exposure Increase in technology Use social media

Phase IV: Milestone Review Time Frame: 12 months - Ongoing Periodic Reviews 3-6 month intervals Criteria Customer Satisfaction Owner Perception Profitability

Phase V: Long-Term Planning Time Frame: 5 years + Expansions as Budget allows More extensive Marketing Additional Services: Commercial Landscaping Science/Biology Education

Timeline Months 3 6 9 12 + Phase I: Customer Incentive Program 3 6 9 12 + Phase I: Customer Incentive Program Phase II: Relocation Phase III: IMC Campaign Phase IV: Milestone Review Phase V: Long-term Planning

Spending Summary Move 85,000.00 Customer Incentive 5,000.00 Limited IMC 2,250.00 Reserve 7,750.00 Total: 100,000.00

Revenue Summary Move 81,900.00 Customer Incentive 4,700.00 Limited IMC 33,338.00 Total: 119,938.00

D-Bamboo Home & Garden Shop Redhawks Consulting D-Bamboo Home & Garden Shop