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Rent-A-Pod (5 Year Marketing plan)

Abishek Ramani
February 24, 2016
Professor Edward Meda
Marketing 3300-008

Table of Contents

PAGE

Cover Pager 1
Table of contents 2
Executive Summary3
Company Description& Strategic Plan4
Situation Analysis 5
Situation Analysis (Continued) ..6
Market-Product Focus & Marketing program ...7
Financial Data Projections .8
Organization & Implementation plan & Evaluation ...9

Executive Summary

Rent-A-Pod

2016

(Name of Company)
(Year Founded)

800 W Campbell Road Richardson TX 75080

(Address)





What is our principal mission?

Our principal mission is to give the citizens of the Dallas-Fort Worth area a very
simple and easy way to get all of their moving needs done in a convenient manner.



Companys Product/Service Include

Rent-A-Pods Product/Service includes an assortment of containers/pods that the
customer can choose based on their need and moving scenario. We also add all
required moving materials like bubble wrap, packing tape, tape gun, wrapping
paper, furniture covers, and tools to dismantle furniture.

Plans for Future Development

This companys plan for the future is very big and our dream is to one day expand
past the Dallas-Fort Worth area and help other major and small cities in the state of
Texas. Even if you live in a small city like Canton, TX or a big city like San Antonio we
want to be able to provide you with the best moving experience. Our hope is that
customers will tell their friends about Rent-A-Pod and their good experiences so
that it will also help expand our business. If Rent-A-Pod is a success in the State of
Texas, we also want to expand to our neighboring state Oklahoma and Louisiana.

Is there an opportunity for Global impact?

There are opportunities for global impact because if we provide with excellent
service within the United States, Rent-A-Pod also has the chance to expand globally
like Canada and Mexico. As a company we also do run a Go Green initiative that
will help save thousands of trees annually. When we started this company we
wanted our customer to know that we support nature and will recycle responsibly.

Company Description

Rent-A-Pod is a local small company that was started in Dallas by two college
students. They wanted to produce something that will help everyone in the DFW
area. Rent-A-Pod is a top class moving company that assists people to move their
belongings from point A to point B. The two college students based their company
on the Go Green initiative that allows customer to know that no matter what, all
the products provided by Rent-A-Pod will be cleanly recycled. This company
provides people in the Dallas Fort Worth metropolis with excellent customer
service, supplies for an easy move, and a pod that will help deliver and drop
whatever belonging the customer needs.

Strategic Focus and Plan

Mission:


The mission statement for Rent-A-Pod is plain and simple, to give the citizens of the
Dallas-Fort Worth area a very simple and easy way to get all of their moving needs
done in a convenient manner. Due to increase of new neighborhoods, Rent-A-Pod is
an ideal company to help customers move their belongings into a new house or
building.

Goals:

These are some of the goals set for Rent-A-Pod in the next 5 years.

Non-Financial Goals


To be able to provide this service all across DFW
To build a loyal and reputable customer base to get the name of Rent-A-Pod
out
To preserve environmental resources by using the Go Green project
To create a strong belief that Rent-A-Pod has the best customer service ever
and no one can beat our prices

Financial Goals

To gain a profit margin of roughly thirty to fifty percent.
To save money by dodging unnecessary spending
To keep spending as low as possible
To have a proper cash flow planning

Core Competency and Sustainable Competitive Advantage

In the case of core competency, Rent-A-Pod will be able to deliver a service
unlike any other moving company in this metropolis. This company will provide one
of the best customer service, high quality supplies and strong pods for the customer
or business. The greatest part is that companies or customers are not forced to come
to our office and take the pod. They call us, and we bring the pod and supplies to
them.
To accomplish such a task and convert core competencies into a sustainable
competitive
advantage,
our
company
will
work
with
major
companies/organizations such as Toyota and the University of Texas at Dallas so
that we can keep a good strong bond with the customers and it should make it
easier for us to figure out what needs and wants customers need. This will also
allow us to maintain excellent customer service

Situation Analysis

Internal Factors

Management

Personnel

Strengths

Experienced will handle
tasks given

Fairly small tasked with
easy instructions

Weaknesses

Small group

Finance

Room for growth in a
good market

Can become overwhelmed
with more number of
orders

Limited resources can
limit growth substantially.

External Factors
Competitive

Opportunities
Room to grow lack of
businesses similar to this
in area

Threats
Cannot patent this idea
easy for competitors to
come in

Consumer/Social

Word can spread quickly

Fairly new customers
especially in the DFW area could become skeptical on
which is rapidly growing
the idea of using this
service
In the growing housing
Profitability could go
market that DFW has this down if there is a decline
service can flourish
in the market for housing
and other similar areas.

Economic

Rent-A-Pod has a great management system that is small but is qualified too.
This management staff can handle anything given to them and has lots of room for
this company to grow. Unfortunately, some downsides internally are that the
management is too small which makes it tough to compete with higher
corporations. If there is an over whelming amount of people needing our services,
our team may not be able to handle it because the number of employees is low. The
only way we can have a larger management team is if our profit increases. Finances
are key for a company and if all the money is spent on salaries, then Rent-A-Pod
would be in trouble.

Externally, things that are in good favor for Rent-A-Pod is that there is no
other moving company like this. No one provides services and materials like Rent-APod does. Socially our company has a good reputation because of our good ties with
University of Texas at Dallas and Toyota. However, on the downside, the creators of
this company cannot patent the idea, so anyone who have aspirations to start a
business can do the same thing Rent-A-Pod is doing. Since the amount of business in
this market will increase, it may cause a bad reputation towards Rent-A-Pod and
could hurt our profits.


Industry Analysis


After going through all the records, it can be seen that in the Dallas Fort
Worth metropolis, the housing market and new businesses are booming and moving
into the suburbs of Dallas, making Rent-A-Pod a major company during this boom.


Company Analysis


The creators of this organization are college students who are also
entrepreneurs who have learnt through their marketing and finance classes that
playing a small role in management is key in a startup. They have great
understanding with the management and they also know that the company has a lot
of room to grow to become number one in the market.


Customer Characteristics



After going through the customer demographic it can be seen that the
younger population or the millennial generation are using this service because of
the Go Green initiative. Thanks to this, Rent-A-Pods business plan is to target the
young college students who are moving from a dorm to an apartment and also
young couples who are moving from one home to another. Rent-A-Pod plans on
targeting places like UTD, UNT, and North Lake for students, and the new
neighborhoods next to the Dallas Cowboys new practice facility, The Star.

Market-Product Focus

Marketing and product objectives

Rent-A-Pod intends to target the young demographic of people in the Dallas
Fort Worth metropolis. This is because the younger generation is motivated to help
the Earth and like companies that focus on eco-friendly services. Below is a list of
areas, which should be targets.

Current Markets
- UTD
- UNT
- Dallas Cowboys new practice facility called The Star

By the end of the 5th year, the plan is to be able to provide this service to all
the different cities within the United States.

Target Markets

The main target market for Rent-A-Pod is for young couples and college
students who are moving from home to home. According to sources, couples
roughly make around $65k-90k a year. This allows Rent-A-Pod to set very
economical prices so that customers can feel happy rather than uncomfortable
when doing business with us.

Marketing Program

Promotion Strategy


Promoting this service will be very simple, we will be targeting the young
generation of people. The best way to get them is if we have some kind of discount
for first time users or if they give us a good survey, we will take 5% off the next time
they come.

Place Strategy



To target the young demographic, social media will play a big key. Facebook,
Twitter, Pinterest, Instagram, and many more can help promote the services
provided by Rent-A-Pod. If a customer happens to stumble open our ad, the
company may have a surprise and have some kind of discount. If they retweet a
tweet from our account or share a post on Facebook, it will help our business grow.

Financial Data and Projections

After looking at the current market, it can be assumed that throughout the market,
everything is pretty similar to what it presently is for the next five years. The sales
projections below show us that the business will climb in a positive linear way.

Current going rates (Based on similar companys)

Sizes
27 X17 X 12 inches
21 X 15 X 12 inches
24.5 X 20.6 X 48 inches

Inventory
100 units
500 units
50 units (Wardrobe
Boxes)
Projections

Competitor pricing
$2 per week
$2.50 per week
$5 per week

This is the 5-year projected sale supposing the market keeps on growing at its
current rate. The need for this service will progressively increase.

Financial
Element
27x17x12
21x12x12
24.5x20.6x48
Net Profit

Year 1

Year 2

Year 3

Year 4

Year 5

$3240
$5156
$2789
$11185

$4160
$10489
$2200
$16849

$7840
$24800
$8300
$40940

$9345
$27432
$13484
$50261

$12544
$40346
$15383
$68273

Organization

Management

Employees

CEO

President &
Vice President

Treasurer

Implementation Plan

After thoroughly looking through all the suburbs in the DFW area, Rent-APods goal is to add 3 new sites in each county, this will help us expand the reach of
our excellent services to customers. If this can occur, it will allow us to be in all the
cities in the Dallas Fort Worth metropolis and provide moving needs to everyone.




Year
New Market added per
Cumulative Market of the

year
29 cities in Dallas county

1
3
10

2
6
20

3
9
30

4
12
40

5

15
50

With the growing population in the DFW area there are a lot new young
couples and young single people moving into the area, which is perfect for this
business. If we can target the younger population in all the different cities, this
business has the potential to grow higher than anyone expected.

Evaluation

After looking through the statistics, it is with complete belief that this
business has a lot of room to grow and thats only possible if it is properly handled
and taken care of. If the Dallas Fort Worth market stays exactly like it is now, RentA-Pod will be known has one of the greatest moving companies in town.