Introduction
The Toro Company which is headquartered in Bloomington, Minnesota in 1914 is a leading designer, manufacturer and marketer of professional turf maintenance equipment and services. The company was initially established to primarily to manufacture engines and other machined part to be used in the parents company’s line of Bull tractors. The company has since metamorphosized from a company that builds tractor engines for the Bull Tractor Company to a leading worldwide provider of turf and landscape maintenance equipment and precision irrigation systems. According to the U.S. Lawn and Garden Marker report, the lawn and garden industry overall increased by five percent between 2004 and 2005. The Toro Company must carefully find a way of reaching more people and also with increased technology differentiates itself from all other lawn and garden equipment companies.
History and Background
Current Market
It is forecast that lawn and garden equipments demand will rise to 4.1 percent annually through 2013. Although gains are expected to be modest in the short term, the housing market is expected to recover by 2013, creating opportunities in the consumer market. In addition, a positive outlook for the landscaping industry will provide opportunities ( http://www.reportlinker.com/p0118299/US-Power-Lawn--Garden-Equipment-Market.html) Lawnmowers will continue to be the largest and fastest growing products. Although there is increasing durability of original equipment, it should be noted that parts and accessories demand will advance due to the rising amount of stock in use.
Customers
Home ownership statistics were a strong indicator of the market for garden products. Low mortgage interest rates in the late 1990s helped many people purchase homes. These same people became concerned with landscaping and maintaining their yards and gardens. This led to continued success for the industry. The Toro Company has recorded sales revenues...