Plan For Improved Marketing: Table 1

Plan For Improved Marketing: Table 1

Table 1. Internal and external information gathered in the situation analysis

Business related (Internal) Information:

(1) Financial resources and capabilities:

Gross profits and net earnings after taxes
Financial ratios - return on investment, breakeven analysis, leverage ratio, current ratio, age of accounts receivable, inventory turnover, working capital turnover, and profit margins.
Cash flow analysis (actual and/or projected)
Record keeping system
Borrowing capabilities

(2) Operating facilities:

Production capacity - based on land, labor, and equipment availabilities (wholesale nurseries only)
Production scheduling of cultural practices (wholesale nurseries)
Inventory levels by variety, grade, size, and loss rates (may affect markets targeted in the short run)
Manpower requirements
Equipment requirements

(3) Competitive strengths and weaknesses:

Competitive status of company's products (name recognition, quality perception, etc.)
Sales force capabilities
Market share projections (as compared to competitors)
Competitiveness of prices - volume discounts
Advertising and promotion capabilities
Depth of product mix
Distribution methods and channels
Service capabilities

Market Related (External) Information:

(1) Environmental constraints:

Costs and availabilities of materials (chemicals, soil media, etc.)
Costs and availabilities of energy (fuel, electricity, etc.)
Economic conditions - housing starts, inflation, recession, interest rates, unemployment rates, capital availability.
Technology advancements
Political environment - environmental quality, pesticide issues, etc.

(2) Market conditions:

Market size - population, family size, number of households, rate of growth in an area, geographic concentrations.
Market segments (alternative outlets) differentiated by age, sex, income level, education, occupation.
Buyer purchasing habits - time, place, credit or cash, frequency.
Buyers use habits - when, where, for what purpose.

(3) Analysis of competitors:

Number of competitors in the market area
Market shares (industry surveys)
Strengths and weaknesses in terms of prices (last 3-5 years), product mix, quality, promotion, advertising, cost structure, transportation costs.

Sources of Information:

State or national trade associations (TAN, American Association of Nurserymen, etc.)
Landscape contractors or architects (can indicate plants they are currently using or plan to use and those which are difficult to obtain)
County Extension Agents and Horticultural Specialists - Extension Service
Texas Departments of Agriculture (Texas Grown program)
Trade publications (American Nurseryman, Nursery Business - Retailer, Nursery Business -Grower, Nursery Manager)
Trade shows (SNA, TANMISSLARK, Penn Allied, etc.) I
ndustry surveys (TAN, AAN, etc.)
Census data (excellent source of demographic information)