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

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

3. 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

4. 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

5. 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

6. 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

7. 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.

8. 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

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

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

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

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

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

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

15. Alternative 6: Retreat Decreasing equity Potential for growth
Not feasible

16. Alternative 7: Stay the Same
Decreasing profits
Not feasible

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

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

19. 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

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

21. 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

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

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

24. 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

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

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

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

28. Timeline Months 3 6 9 12 + Phase I: Customer Incentive Program3 6 9 12 +
Phase I: Customer Incentive Program
Phase II: Relocation
Phase III: IMC Campaign
Phase IV: Milestone Review
Phase V: Long-term Planning

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

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

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