Peak Garage Doors Inc.
I. Problem Statement-
Should Peak Garage Doors Inc decide to implement a new distribution strategy or dealers, or keep their current distribution policy and network, if they do they could possibly increase their sales by 36% or it could take a long time to implement or could even lose sales due to losing dealers.
II. Industry Analysis
A. National Industry Analysis
In 2003 the residential garage door industry in the United States expected $2 billion in sales in 2003. In 2004 they projected that sales would increase by 2.4 percent making the annual sales to be $2.05 billion. The largest garage door manufacturer in the industry is the Clopay Corporation. Their annual sales are over $400 million. Some other big names in the industry are Overhead Door Corporation, Wayne-Dalton Corportation, Amarr Garage Doors, and Roynor Garage Doors. Clopay sells its products to company’s such as Home Depot, Menards and Lowe’s. This would help explain the consumer purchase behavior. The customers who shop at these stores are not really shopping around for garage doors. They go into the store find what they want and purchase it. They may look at the other options to compare prices but overall they are looking at the convenience of finding a garage door fast and easy. Overall, the consumer’s behavior is that they are looking for a well known name and at the cheapest prices. They only purchase a door when they need it, which this could maybe 2 times in their lifetime. They are not repeat customers.
B. Industry Analysis in Peak’s Trade Area
Peak Garage Door Inc. has a market share of 2.6 percent. In the 150 markets that Peak Garage Door Inc. serves it has a $348.5 million sales volume. In these 150 markets there are 3,002 independent garage door dealers this would entail that the average dealer in the 150 markets sales are about $116,089. Each of these dealers on average carries about 3 different manufacturers’ brands. The brand that is sold the...