Pyramid Door

Pyramid Door, Inc. is a privately owned regional manufacturer of residential and commercial garage doors. It is ambitious in it’s expansion effort. It aims to sell $12.5 million in 2006, which represented a 36 per cent increase in sales over projected 2005 year-end sales. This work will help Richard Hawley, director of sales and marketing achieve the abovementioned target. This work is divided into three main parts:

1. Company background.

1.1. The Residential Garage Door Industry.

1.2. The Distribution Strategy Issue.

2. Company marketing analysis; and

3. Recommendation on choice of strategy.

1. Company Background

Pyramid Door Inc. manufactures both insulated and non-insulated steel residential and commercial garage doors. It also supplies springs, cables, rollers, and side roller tracks for it’s products. Surveys of it’s dealers indicate that the majority of it’s doors and replacement purchases in the home remodelling segment of the residential housing market, with the balance of the sales going to the new residential housing market and the commercial replacement garage door market.

It distributes its garage doors through 300 independent dealers that typically offer three different garage door manufacturer brands and 50 exclusive dealers that stock and sell only Pyramid doors. Combined, these 350 dealers service 150 markets in 11 western and Rocky Mountain states and parts of north and west Texas.

The 350 dealers that sell Pyramid doors engage in garage door sales, installation and service. Most dealers operate from a single location. All 350 Pyramid Door Dealers are located in markets with population of approximately 250,000 or less. All 150 markets are roughly equivalent in terms of population and housing units according to U.S. Census 2000 figures.

Pyramid Door Operates two distribution centres. These Distribution Centres allow the company to maintain an inventory of garage doors and hardware near dealer for quick delivery. The...