Marketing plan information
Marketing information
PEER Construction focus on the new homes niche in the plumbing market. The company will target both volume builders of new homes as well as customer builders.
Through a combination of networking activities and advertisements, PEER Construction will increase our visibility among home builders allowing us to gain market share.
Marketing budget
PEER Construction target two distinct segments in the market:
Volume residential home builders
These builders are building many different homes, often at the same time, and on the same plot of land. They need a professional, well priced, reliable plumber for their residential new builds. This is an attractive market niche because the plumbing jobs are clean, numerous, and reasonably easy to do. Once a builder has found a plumbing company that they are happy with, a long-term relationship is often established, ensuring a constant flow of future jobs.
Custom home builders
These builders need a plumbing company for their custom projects. This segment is attractive because the margins are better than typical build jobs and projects can be fun because they require creativity and thoughtfulness to accomplish them within the established designed constraints. This target market makes up a smaller percentage of PEER Construction forecasted sales.
Target market segment strategy
The construction market (excluding direct to consumer jobs) is a highly networked industry where everyone knows everyone and jobs are won or lost through personal relationships.
PEER Construction will establish the business as an experienced, professional tradespeople who is concentrating on residential new builds and renovations.
PEER Construction will network with all home builders. The networking will be an important method to increase visibility of PEER Construction because most home builders are always looking for professional, high-quality plumbers and electricians.
It is to our advantage to position ourselves as working only with the residential new build market and renovations because it is attractive to builders to form a relationship with a business member that is specialising in this market.
PEER Construction will run appropriate advertising campaigns that focus on this strategy.
Service business analysis - plumbing
The plumbing industry is state regulated. The state regulates the industry through a licensing process based on the Plumbers, Fitters and Electricians Act 1995 (SA).
To be eligible for a trade licence from 1 January 2016 an applicant must have:
- completed a trade apprenticeship in a licensed trade (which includes a Certificate III)
- OR completed a Certificate III in a licensed trade that was issued on or before 31 December 2015.
Finances
You need to have at least $10,000 in net assets to apply for a contractor’s licence. If you do not, you can apply for a restricted licence as a subcontractor,
Photo and ID check
You will need to have your photo taken for your licence and undergo an ID check before being issued with a licence card.
Police check
Contractors will need a National Police Certificate (NPC) no more than 12 months old from either
- SA police
- National checking services – accredited organisations – Australian Criminal Intelligence Commission
For more information visit the Consumer and Business Services website.
Marketing strategies
Networking
PEER Construction will meet with builders we have worked with in the past, and others in the industry. PEER Construction will discuss with them our current venture and request a trial build to prove ourselves. PEER Construction will use every opportunity to network with any contractor we meet in the normal course of our business.
Advertising
PEER Construction will run advertisements in the local home builder’s journal. This publication is a printed resource that home builders typically consult when they need a contractor for a specific service during construction. Readership is targeted in this publication so we expect advertisements to be most effective. PEER Construction will also advertise on social media such as Facebook.
Sales strategy
PEER Construction sales strategy will be to get at least one contract with a new builder to provide them with an example of PEER Construction work. Based on the current competition, a display of PEER Construction’s professionalism and trim quality will be most effective to convert a prospective customer to a long-term relationship.
Contracts
Contract agreements will cover:
- Project description
- Scope of work
- Contract price/cost estimate
- Progress payments
- Variations if applicable
- Construction schedule or calendar
- Contract documents e.g. drawings, specifications etc.
- Contract law.
When negotiating a contract make sure you have a clear idea of the objective of the contract. You should:
- be prepared
- be professional
- understand your rights
- make yourself clear
- write everything down
- seek advice.
Refer to the PEER Construction Estimation policy for more information.
Marketing materials
All marketing materials should include:
- PEER Construction business details such as ABN
- Phone number
- Website address
- Street address
All marketing materials are to be approved by the Senior Manager.
Marketing costs
Internet
- Premier Package – $1,700
- Highlight Package – $1,000
- Features Package – $850
- PEER Construction website – no cost
Web page design – no cost
- State-wide newspaper – display advertisement
- 1/8 page: $1,000
- 1/4 page: $1,800
- 1/2 page: $2,300
Brochures
- 100 brochures – $429
- 250 letter box drops, DL, just listed – $50
Flyers
- 50 Flyers – $300
(All costs are GST inclusive.)