Bolt Ironmongery Case

1.0 Introduction

1.1 Mission statement:

Bolt Ironmongery will set up and establish as a supplier of quality of ironmongery and access control selling into the Irish Construction market .The target market will be all aspects of construction from large commercial projects right through to smaller domestic projects targeting all sizes of building contractors, developers, architects, interior designers, site accommodation co’s, maintenance and the general public. The channels of sales will be through a trade counter and showroom set up in the ABS building on the Nangor Road and also through an internal and external sales team. Bolt aims to provide an excellent customer service and superior quality product alternative and value for money to their

Their current strategy is to target the public, and small to medium builders with strong advertising campaigns. They have a good network with ten stores north and south of the country and have an excellent website which allows purchase and hire online and also provide good product information. HSS have recently had some bad publicity after failing to deliver on time on a number of large projects.

Speedy Hire:

Speedy Hire SWOT Analysis. (Appendix 2):

Speedy Hire has recently had a successful takeover of Waterford hire with four new branches added to the four current ones. They are well established in the UK and only recently entered the Irish market in 2006, but have managed to build a solid reputation in that short space of time. Targeting the major contractors is speedy hires main priority and is a company who we will be in direct competition with. There weaknesses lie in their marketing where they have failed to fully develop a website and have an underdeveloped product range.

2.3 Customer Profile :( 1. (Jobber and Lancaster, 2000:67)

Bolt Ironmongery will have a target market of three main customer groups:

The Construction

• There are approximately 200 hundred major account prospects spread through Ireland.

• This can be broken up into the four provinces as figure 2.7.1

• It is expected that the plant hire sector will have a short term increase between 5% to 8% and a 3% to 4% increase in the tool hire market.

• The majority of the plant hire sales can be expected to come from the medium to major contractors working on non-domestic larger scale projects.

• The smaller tool hire generally comes from the public working on domestic DIY projects.

• The current uncertainty in the housing market is expected to have an effect on the number of domestic renovations.

• Up to 80% of the all sales can be expected to come from a small group of major customers.

An established branch in the UK can expect a yearly income of approximately £30m. This is with a sales force of five external staff and three internal and through other distribution channels such as the internet and the depot.

Taking the above details into account the sales target for 2016 will be set at €20m and divided into the three product groups.

Average Product Selling Prices with 35% mark up.

Product A – Plant @ average hire or sales