The Ultimate Grill

Team Members:•Larry Frazer•Bianca Greene•Wayne Knight•David Norris

Agenda

• Background• Situation Analysis • SWOT Analysis • Marketing Goals & Objectives • Marketing Strategy • Marketing Implementation • Implementation Timeframe

Background

• Today’s market• About consumers • “The Ultimate Grill”• Initial concerns for future growth

– Deliver to the market– New brand of grill– Sustaining a presence

Situation Analysis Outsource

Framing Welding $45.00

BMM Sheet Metal Steel Enclosure $65.00

In-House Assembly

Valves (Gas) 24.32 $97.28

Misc (bolts, washers, nuts,etc.) $5.00

Piping/drain $12.00

Felt/gaskets $18.00

Hinges $12.00

Wheels 4 $32.00

Outer Skin $65.00

Ball valve $16.00

Insulation $45.00

Transportation $85.00

Labor assembly/grill 8 $58.00

Bulk Purchase

Aluminum Square Tubing 50 ft /unit@1.85/ft $92.50

Total Cost $647.78

Wholesale (Direct to Retailer) 30% $842.11

Retail Margin (Direct to Customer) 60% 30B/30M $1,094.75

Profit Margin (Direct to Retailer) 30% $194.33Profit Margin (Direct to Customer) 60% 30B/30M $446.97

SWOT Analysis • Strengths

– 1st smoker, propane grill, and charcoal grill– Leveraging specialty retailers supply chain capabilities

• Weaknesses– Brand recognition– Start company with limited resources

• Opportunities– Seize market share in the outdoor grilling market– Creation of a new grilling product category

• Threats– Established grill brands as Weber, Char-Broil, Charm-glow– Economic downturn and declining sales of outdoor home

entertainment

Marketing Goals & Objectives

• The Ultimate Grill– Efficient cross functional grill

• Objectives– Three specialty retailers– Utilizing advertising and promotional incentives

Marketing Strategy

• Primary target market• Product strategy• Differentiation and positioning strategy• Pricing strategy

Model Green Egg XL Ultimate Grill Weber Summit E450Price $1199 $999.00 $1699Weight 205 lbs 240 lbs 243 lbsCook Surface 425 sq. in. 640 sq. in. 580 sq. in.Charcoal Yes Yes YesGas No Yes YesSmoker Yes Yes NoHamburgers 24 37 32Ribs 14 vertical 21 vertical 19 verticalCustom colors No Yes No

Marketing Implementation Specific Activities Assigned

Responsibility

Required Budget ($225k/100%)

Estimated Completion Time

Product Activities      1. Sign lease on small manufacturing shop in Georgia. President $25k/ 11.1% Month 12. Set up shop with necessary tools to assemble manufacture grills

Operations Manager 10k/ 4.4% Month 1

Pricing Activities      1. Offer a $50 manufacturer rebate to customers who purchase a grill during a designated two-month time period in the beginning of our distribution agreements with the specialty stores.

VP Marketing $40k/ 17.8% Months 3-4

Distribution/Supply Chain Activities      1. Obtain distribution agreements with Bass Pro Shop, Brookstone, Costco, REI, etc.

President and VP-Marketing $15k/ 6.7% Month 2

IMC (Promotion) Activities      1. For every 4 grills that one of our specialty store retailers buys from us and sells, they will get a $100 discount on the 5th grill. VP Marketing $100k / 44.4% Month 3

2. Newspaper advertisement (print & online) in sports section of local newspapers of cities hosting NASCAR races VP Marketing $10k/ 4.4% Month 8

3. Offer $25 Visa gift card to customers who recommend The Ultimate Grill to a friend, where the friend then purchases the grill.

VP Marketing $25k/ 11.1% Month 12

Implementation Timeline

• WayneImplementation Timeline

Month 9/09 10 11 12 1/10 2 3 4 5 6 7 8

Product Activities

1. Sign lease on small manufacturing shop in Georgia. X

2. Set up shop with necessary tools to manufacture grills X

Pricing Activities

1. Offer a $50 manufacturer rebate to customers who purchase a grill during a designated two-month time period in the beginning of our distribution agreements with the specialty stores.

X X

Distribution/Supply Chain Activities

1. Obtain distribution agreements with Bass Pro Shop, Brookstone, Costco, REI, etc.

X X X X X X X X X X X

IMC (Promotion) Activities

1. For every 4 grills that one of our specialty store retailers buys from us and sells, they will get a $100 discount on the 5th grill.

X X

2. Newspaper advertisement (print & online) in sports section of local newspapers of cities hosting NASCAR races

X X X X

3. Offer $25 Visa gift card to customers who recommend The Ultimate Grill to a friend, where the friend then purchases the grill.   X X X X X X X X X X X

Questions

• Background• Situation Analysis • SWOT Analysis • Marketing Goals & Objectives • Marketing Strategy • Marketing Implementation • Implementation Timeline