Marketing Presentation

Evaluate current strategy

Timothy's strategy with Matisse company is acting as a drop-shipper wholesaler for several lumberyards. Although title passes to Timothy, he realistically acts as a broker between the buyer (lumberyards) and the manufacturers.

The present offer from Mr. DeBeer would move Timothy from a wholesaler role to a commission salesman or a combination of the two. Since Mr. DeBeer's target customer market is very similar to that of Timothy's current customers, Timothy has the opportunity to cross sell the products, lumber and windows.

How the present offer fits.

Mr. DeBeer wants to sell directly to the independent lumberyards with whom Timothy has a well established relationship. Although the compensation and distribution methods are different for selling windows from that of selling lumber, the present offer would fit Timothy's overall approach.

What Timothy should do now.

Based on the SWOT analysis, Timothy should accept Mr. DeBeer's offer and continue to sell lumber as well. Since Mr. DeBeer has the same target market in mind, Timothy can treat the sales strategy as if the products are complementary, although they aren't in every situation. Marketing with this combined approach also gives the lumberyards a “one-stop shop” so they likely won't mind that Timothy is charging the typical markup on the lumber since they can simplify their logistics by dealing with one supplier for both products.

S.W.O.T. analysis

Strengths

• 20 years’ experience in the industry

• Knows all of the lumberyard buyers in his area and is on good working terms with them

• Works with 5 large lumber mills on the West Coast and he is the only one in his area

Weaknesses

• Low markup on lumber ,between 4 and 6 %

• No experience selling windows and accessories

Opportunities

• Sell residential windows and accessories that can be modified for commercial use.

• Retrofit market is growing...