Human Resources/Advertising Management
Design an Ad Campaign for a Construction engineering company?( Manufacturers of
Steps of an Advertising Campaign
1. Market research: Before you even start thinking about where you might want to place an ad or even what it could look like, it’s important to do at least some basic research. Even if you aren’t in a position to bring in an expensive research firm, you can ask your current customers questions about why they come back to you, as well as taking a close look at your target demographic’s needs and interests.
2. Budgeting: Your business probably has a set advertising budget for the year — but how do you divvy it up between your various advertising projects? For each project you’re planning, you need to be clear on just how much money you’re willing to spend. You’ll almost certainly change exactly how you divide it between costs like copy writing and design, but you can treat the overall amount as set in stone. Write it down and put it in your project folder.
3. Setting goals: The aims you have in mind for a particular advertising project need to be written down ahead of time. While it’s good to be ambitious, it’s also important to decide what constitutes a successful advertising campaign for your business. Sales can be the simplest metric: if you’re advertising a particular product, how many units will you need to sell to pay for that campaign?
4. Advertising venue: The website, tv station, newspaper, radio station, magazine or other advertising venue you place your ad with is a crucial decision. You’ll need to look at not only the cost of your preferred venues but also whether they reach your target demographic. Ad buys can make up a significant portion of your budget. Deciding on where you will place your ads first tells you how much money you’ll have left over for actually creating your ad.
5. Choosing creatives: Unless you’re planning to write, shoot and design every part of your ad, you’ll probaably need to bring in some help. Finding the right freelancers for each aspect requires checking through portfolios and rates — if you can find a business or freelancer who can handle all aspects of creating your ad, even if that means subcontracting, it can save you a lot of time. You’ll also want to make sure that you find any talent you’ll need for your ad (voice actors for radio, models for photography and so on).
6. Design and wording: While you may not have a lot of actual writing and designing to do for your ad, during the creation process you will need to review and sign off on different stages of the project. When starting with a new designer or other creative, make sure that you both know any expectations for timelines and progress checks.
7. Placing the ad: Once you have a finished ad in hand, it’s time to actually place it with your preferred advertising venue. You may have a few contracts to sign and a check to hand over. You’ll also want to make sure you actually see your ad once it’s run — from a newspaper, for instance, you’ll want to see the tear sheets of pages containing your ad.
8. Evaluation: Depending on your ad, how you evaluate it can vary. If it included a coupon, for instance, you can simply count how many customers brought in the coupon. For other ads, you may be simply comparing sales before, during and after your advertising campaign. Spend as much time on analyzing how your advertising campaign worked as you can. That information can point you to more effective uses of advertising in the future.
While following such a set process may seem like it would stifle the creativity necessary to put together a new ad, following these steps can actually make it easier. You can minimize confusion and make sure that everyone is meeting the necessary deadlines — and you can ensure that you’ll be able to measure your ad’s actual cost and responses during each step. You’ll be better equipped to tweak your ad or move it to another publication in the future.
Titus Mold Manufacturing, Inc. will make prototypes and molds for the manufacturing of consumer products. A mold, which is usually made from aluminum or steel, is a hollow form that gives a particular shape to a product while it is in a liquid state. The molds are used for products made from plastic, glass, metal or other raw materials.
There are three main phases to manufacturing a prototype or mold. First, engineers and product developers create a design. Titus Mold Manufacturing is able to complete a design from start to finish for a customer. If need be, Titus will work with the customer through the design process via our one of a kind Virtual Design Center. Secondly, we make test molds. We then inspect and test the molds for quality assurance. Finally, we manufacture prototypes and molds based on specific design specifications, using precision machinery to form the desired prototype or mold.
2 FEATURES & BENEFITS
Virtual Design Center will be the key to distinguishing and drawing attention to our company. Once we have a particular industry or customer's attention, we will sell them on our fast turnaround, exceptional quality, unparalleled customer service and competitive pricing.
Obviously, speed, quality, service and price are qualities most of our competitors will list in their mission statement. However, Titus Mold Manufacturing will - from the beginning - invest in top quality, highly sophisticated machinery as well as implement innovative operations policies. These steps will ensure our ability to deliver beyond normal industry standard and surpass our customers' expectations saving them time and money.3 COMPETITION
Our competitors are companies that provide similar types of design and mold-making services. There are far too many competitors to list specifically. To their advantage, they have an established customer base. Further, many mold-making companies also have injection-molding machinery, which enables them to manufacture actual products. However, the vast majority of our competitors are not taking full advantage of current technology, nor are they implementing modern operational systems. Their waste is ultimately passed along to the customer via longer turnaround times and higher overhead costs.
4 COMPETITIVE ADVANTAGE/BARRIERS TO ENTRY
By relying on our technology and an activity-based costing system, rather than a time-based system, we will be able to maintain competitive prices and sustain high profitability. Our technology and systematic efficiencies will allow us to have advantages in cost, speed and design capability. Ultimately, these advantages will quickly come to define Titus Mold Manufacturing as an industry leader.
Our Virtual Design Center technology gives us a significant advantage over our competitors, and our patent prevents others from being able to replicate the services we offer.
As our company grows, we plan to expand our facility and create an injection-mold manufacturing plant. At that point, we will be able to control all operations in-house from initial design to mold creation and even mass production of the finished products. In addition, we will stay atop technology trends and upgrade equipment and processes as needed and can be afforded. We will also continue to research and pursue shares of existing markets such as packing, defense, electronics and telecommunications.
The US manufacturing sector includes more than 300,000 companies with combined annual sales of about $4 trillion. Furthermore there are approximately 2,500 mold manufacturers with combined annual sales of more than $5 billion. To capture a portion of those sales, Titus Mold Manufacturing will utilize a targeted industry approach to pursue specific, definable, market segments. TARGET CUSTOMER
After extensive research, we decided to initially pursue market segments in the automotive and medical devices industries. These are two very distinct markets with very different needs. While the automotive industry's purchasing decisions are driven primarily by price, the medical device industry focuses on a fast turnaround time and quality to make purchasing decisions.
The U.S. automobile manufacturing industry includes about 160 companies with combined annual revenue of about $250 billion. While the majority of those sales are swallowed up by a handful of major car manufacturers, there are thousands upon thousands of parts needing to be manufactured for each vehicle. By specializing in manufacturing molds for certain parts, we will establish our niche in the market. Our research indicates this is a perfect time to assimilate into this industry as carmakers make dramatic shifts in design and efficiency to address rising fuel costs.
The medical devices industry is by far one of the most forward-thinking, always-evolving industries. Researchers and product developers are continually striving to improve products and procedures. With this constant change and product evolution comes the constant need for new product molds. Couple the advances in medical technology with an increasingly aging population, and it's clear the healthcare industry as a whole is a solid market and mold manufacturers will reap the benefits.
• Propriety software (Virtual Design Center)
• Potential for global customer base
• Manufacturing & production expertise
• Software development expertise
• Understanding of emerging technologies
• Understanding of target markets
• Competitive product pricing
• Exceptional quality and customer service
• Implementation of cost saving processes
• No company history
• Small initial customer base
• New staff
• Lack of leverage with new relationships
• New products & processes
• Bringing new technology into the industry
• Developing a new reputation
• Hiring new talent
• New innovations and applications of our technology
• Impact of new legislation
• Technologies developed by competitors
• Challenges in building a talented staff
• Retaining key staff members
• Market demand fluctuations
STRATEGY & IMPLEMENTATION
Titus Mold Manufacturing's business philosophy is to make the needs of our customers our main priority. It is our mission to provide our customers with fast turnaround, exceptional quality, unparalleled customer service and competitive pricing. With the introduction of our patented Virtual Design Center program and the unveiling of our modern design and manufacturing facility, we will position Titus Mold Manufacturing as a superbly innovative company and a future industry leader.
To achieve this position, we will implement our company's plan to create a state-of-the-art mold-manufacturing facility and invest in the most accurate precision machinery available. We will implement the most comprehensive design software and set the highest standards of operational systems and quality control.
Our plan is to position Titus Mold Manufacturing as a technology-driven innovative company within the mold-manufacturing sector of the manufacturing industry. To do this, we are putting forth a great amount of time and resources into developing a premiere Web site. We are working with a design firm and have secured a domain name - TitusMolds.com. We have already initiated the process of integrating our Virtual Design Center into the site.
In addition to describing our manufacturing processes and design capabilities, we will feature numerous success stories and images of prototypes and molds we have produced. Our site will also include a simple online form to complete for custom quotes as well as a generic form to submit questions and comments. Our vision is to create a Web site that will become an integral part of our marketing, sales and daily operations.
Titus Mold Manufacturing recognizes the critical importance of marketing. We will require a properly designed and executed marketing plan to ensure market penetration and business success. Until we hire an in-house sales and marketing team, we will work with a marketing and public relations firm. Once a sales and marketing staff is in place, we will reassess the need for an outside firm.
In addition to conveying to our potential customers the fast turnaround, exceptional quality, unparalleled customer service and competitive pricing offered by Titus Mold Manufacturing, we will also position our company as future-minded and a leader in the integration of innovative technology into the mold manufacturing process.
Our marketing plan will include an initial publicity campaign that introduces our company and patented Virtual Design Center. Further, we will launch a comprehensive advertising campaign in automotive manufacturing and medical devise trade publications and related Web sites. The publicity campaign will be closely followed by a direct-mail campaign to targeted customers.
The other main component of our marketing plan will be to attend trade shows which will require booth construction and maintenance, marketing materials such as brochures, and promotional items such as pens with our logo.
To increase local awareness of our company and to foster a positive public perception, we will participate in and sponsor local charity events such as Walk for the Cure and March of Dimes and youth sports teams. We will also reach out to local high schools and colleges to offer internships and promote careers in manufacturing.
Titus Mold Manufacturing will build a sales team focused on securing new business in the short and long term. The sales team will be motivated by commissions and performance-based bonuses.
Under the direction of executive management, we will employ an outside sales staff as well as an inside sales staff, which will be cross-trained to handle general customer service calls. The outside sales staff will focus primarily on trade show attendance, comprehensive follow up, relationship building, closing deals, and securing referrals.
We plan to develop strategic alliances with local and regional injection-molding manufacturing facilities that do not have mold-making capabilities within their facilities. One such alliance has been developed with Hilden Manufacturing Company located within our region. More are developing.
Our facility's space will be divided in proportion to our needs and will include product development and engineering labs, mold shop, tool shop, quality control and testing area, inventory storage and administrative offices. Each area will be staffed with trained employees and wherever possible factory-floor technicians will be cross-trained. Our administrative offices will include space for executive, marketing and sales, accounting, information technology, security, maintenance, and human resource departments. To become a fully operational mold-manufacturing facility, we will require the following machinery and software.
• Viper, SLA 7000 & SLA 5000
• Eden260, Eden333 & Eden500V
• Vantage, Titan & Maxum
• RTV Tooling
By utilizing the latest precision machinery and software and superior operational and quality control processes such as LEAN Manufacturing, Rapid Prototyping and Manufacturing, and Sigma Six, Titus Mold Manufacturing will control costs while ensuring quality. Additionally, once we are operational, our company will become ISO 9001-2000 certified. Titus will also follow FDA requirements and comply with Medical Directive standards to further ensure quality control.
Operationally, our strengths lie in our knowledge and expertise within the manufacturing industry. We know what fixed assets we require and what regulations we must adhere to. However, while we cannot know for certain the quality of our managerial team at this point, we expect to hire and implement a top notch team. As previously mentioned, we have several promising prospects and will, of course, strive to recruit top talent.
The following is a list of business goals and milestones we wish to accomplish within the next three years.
• Secure necessary funds.
• Locate and lease suitable manufacturing facility.
• Purchase machinery, equipment and supplies.
• Hire skilled employees to complete our team.
• Set up shop and open for business.
• Successfully penetrate targeted markets.
• Secure contracts to achieve projected sales goals.
• Become a profitable company.
• Establish a solid reputation as an industry leader.
Our first major milestones will be securing funds and setting up our business. This is our primary focus right now. In three years, we hope to have established our company in the community and within our industry.
Should management or our investors seek a business exit, there are several options we would be willing to pursue. Our company could most likely be sold to a manufacturing company that does not already have mold manufacturing capabilities. A management buyout could also be pursued once our business credit is firmly established.
MANAGEMENT ORGANIZATIONAL STRUCTURE
Titus Mold Manufacturing understands the importance of a loyal and enthusiastic team to reduce turnover and increase productivity. Our company's management philosophy will encourage responsibility and mutual respect. While we will present a strong decisive management team, we will also foster an atmosphere of genuine employee appreciation and open communication.
Our company will be managed and run by our executive staff including Chief Executive Officer John Baker, President Michael Smith, and Vice President Susan Jones, as well as our Board of Directors. Our management staff of directors and supervisors will oversee daily operations. However, as a small manufacturing facility starting out, the CEO, President and VP will be responsible for the majority of purchasing, hiring, training, quality control, and additional day-to-day duties.
Additional key leaders will include directors of finance, marketing and sales, human resources, information technology and operations. While these positions remain unfilled at this time, we do have several extremely qualified candidates interested in joining with us in this new venture.
As we start our mold manufacturing business, we will implement a plan to hire management and production staff first and fill in with mid-level management and administrative staff as our budget and needs change.
BOARD MEMBERS & ADVISORS
Our Board of Directors is not yet fully formed. CEO John Baker will serve as Chairman. The board will consist of company owners (shareholders), officers and directors.
Duties of the Board of Directors may include:
• Establishing broad company policies and objectives.
• Selecting, appointing, and reviewing the performance of executive staff.
• Insuring the availability of adequate financial resources and approving annual budgets.
• Accounting to the stakeholders for the organization's performance
We will actively seek individuals to sit on our Board of Directors who will have the ability to add to and advise our organization such as lawyers, accountants, and professionals in the automotive or medical fields.
Titus Mold Manufacturing, Inc. requires $4,450,000 to launch and operate. We are currently seeking funding from outside investors and business loans. We are also looking into additional options including supplier financing, deferred rent, subleasing space, partnerships, vending and client advance payment.
At this time, we have raised $450,000 in working capital and are seeking the additional funds to start our business. We have raised $150,000 in venture capital funds. In addition, co-owners John Baker, Michael Smith and Susan Jones have each invested $100,000 into the company.
USE OF FUNDS
The start-up funds will be used to cover operating costs including payroll, taxes, and utilities. Start-up funds will also be used to purchase capital expenditures such as leasehold improvements, software and machinery, which will produce future benefits for the company. Approximately forty percent will be spent on assets, while the other sixty percent will be spent on operations until we realize profitability.
INCOME STATEMENT PROJECTIONS
The accompanying income statement demonstrates our company's profitability. Our income shows a gross profit margin of seventy-two percent. Our monthly operating expenses average $116,325. Projected net income will average $54,075 per month in our third year.
After completing a comprehensive break-even analysis, we will achieve our break-even point by the middle of year two.
CASH FLOW PROJECTIONS
The nature of our business requires that our company collect payment after the product is complete. So we have included the accompanying cash flow statement, which projects our monthly flow of cash. While we expect to reach break-even by our eighteenth month, it will take nearly two years to become cash flow positive.
Our balance sheet will depend greatly on our sources of capital. We expect to raise approximately $1.5 million through loans and $2.95 million through equity capital.
Our assets will be comprised of cash, leasehold improvements, equipment, software and other tangible assets.
Our projections are based on the assumption that the manufacturing industry, particularly the medical and automotive industries, will continue to follow present trends. Industry regulation and government legislation is always poised to interfere with business projections, but there are no indications at this time to expect any negative influence to our projections. Additionally, we are not relying on new regulations or the passage of new legislation to enable our company to reach our projected numbers.