Executive Summary
TMW Technology, Inc. is a small, family owned corporation offering professional information technology, information security, and computer training services to small businesses in the greater Memphis, Tennessee metropolitan area. TMW Technology had revenue in excess of $825,000 during 2017. TMW Technology has 16 employees who specialize in computer networking and security, as well as computer hardware and software training. Each member of its operational staff which include network and security experts and trainers hold multiple certifications including CISSP, ISSAP, CEH, CCNP, GSLC, GSEC, Apple Certified Trainer, Microsoft Certified Trainer, and Citrix Certified Instructor.
Since its beginning two years ago TMW Technology, Inc. has acquired its 40 clients entirely through word of mouth and pre-existing relationships. Contracts with these clients are sufficient to keep TMW Technology fully staffed for the near-term (6 to 12 months) but over the long-term the company’s current clients will require less training and technical support. In addition to this TMW Technology wants to expand its market share in the Memphis metropolitan area and open satellite offices in other regional cities such as Little Rock, Arkansas and Nashville, Tennessee.
An evaluation of the company’s internal strengths and weaknesses and external opportunities and threats was used as the foundation for this analysis and marketing plan. The plan focuses on the company’s growth strategy by suggesting ways it can expand its clientele within the Memphis metropolitan area and introduce its brand in surrounding markets such as Little Rock and Nashville.
The Challenge
Within the Memphis metropolitan area, expand to new small business clients’ enterprise level computer and networking expertise, training, and support.
In many cases these small businesses rely on internal knowledge which is normally limited or other local IT professionals acting as consultants for the required expertise, training, and support to install, maintain, and support their IT systems.
Environmental Analysis
Company Analysis
- Goals – Expand clientele by 50%, from 80 to 120 small and medium businesses serviced.
- Focus – Initiate marketing campaign calling out services provided by TMW Technology using radio, local television, and lunch and learns at local upscale restaurants.
- Culture – TMW Technology is family owned and run business.
- Strengths – Flexible and mobile workforce staffed by employees with vast experience in enterprise level network and security management and training. Lower costs than competitors due to lower overhead.
- Weaknesses – Brand recognition.
- Market Share – There are more than 75,000 “small businesses” in Memphis. TMW Technology has a market share of 0.0005 percent. However, many small businesses do not pay for support of their IT systems.
Customer Analysis
- Number – > 75,000 possible
- Type – Small businesses (local retail shops, convenience stores, law firms, doctors’ offices, etc.)
- Value driver – 24 hour support for IT systems at affordable costs lets the small business focus on their core competencies.
- Decision process – Customers must decide whether their IT systems are critical to their business or just a nice to have. For any that accept credit cards it must be impressed upon them that IT systems are critical.
Competitor Analysis
- Market position – TMW Technology has a market position is near the bottom. Geek Squad and Cooper Systems have control of the local market.
- Strengths – Local brand names such as Geek Squad, Cooper Systems, and Mid-South Technologies.
- Weaknesses – Reliability, trustworthiness, and expertise. Many of the technicians or engineers are poorly trained.
- Market shares – Unknown
Macro-environmental PEST analysis:
- Political and legal environment – There are no known political influences that could affect the operation of TMW Technology. There are however legal issues to address, specifically issues such as non-disclosure, data privacy, and liability
- Economic environment – With the economy still rebounding most small businesses within the Memphis metropolitan area will not have budgets for IT technical support and training. In fact most small businesses would be unlikely to budget for IT services regardless of the economic state. However, with fuel prices at their lowest in recent years opportunities may exist to reallocate those dollars for the prospective clients and introduce introductory prices for TMW Technology.
- Social and cultural environment – The Memphis metropolitan area is a mix of urban, suburban, and rural municipalities with a big city feel. Business owner ship opportunities within this area are growing due to the low cost-of-living and close proximity to FEDEX. Additionally, Beale Street and Bass Pro Shops at the Pyramid are tourist attractions which drive the need for small businesses such as local restaurants, bars, clubs, and retail shops.
- Technological environment – Small businesses within the area are moving to mobile technologies to accept credit card payments as well input orders, document privacy data such as one may do at a doctor’s office, and scanning technologies during purchasing. Each of these technologies must store that collected data on larger more permanent devices.
SWOT Analysis
A SWOT analysis of the business environment
- Internal attributes (strengths and weaknesses)
- Certified Professionals – Strength
- Flexible (non-corporate or no big brand) – Strength and Weakness
- Low cost – Strength
- Standing relationships with current clients – Strength
- Marketing – Weakness
- Name Recognition – Weakness
- External environment (opportunities and threats)
- 75,000 small businesses in Memphis – Opportunity
- Emerging technologies – Opportunity
- Lack of IT services targeting small businesses – Opportunity
- Regulations for the protection of private/sensitive data – Opportunity/Threat
- Larger brand name IT service providers entering the market (e.g., IBM) – Threat
- Economic downturn – Threat
- Large data breaches by U.S. corporations or government entities – Opportunity
- Current staff leaving for other opportunities and better pay – Threat
Marketing Objectives
Specification of the company’s marketing objectives
- Qualitative measures of what is to be accomplished
- Develop a company recognizable, easy to remember company Logo.
- Broadcast thought provoking and catchy radio advertisements.
- Broadcast through provoking and visually appealing television advertisements.
- Verify quality through the use of surveys conducted in person within the local business community.
- Quantitative measures of what is to be accomplished
- Triple, from 10 to 30 cold calls for services by the beginning of the fourth quarter 2016 (October 1, 2016).
- Average four face-to-face opportunities for direct sales of services per month by beginning of fourth quarter 2016 (October 2016).
- Record a 5% revenue increase for 1st quarter 2016, a 10% increase in 2nd quarter 2016, a 20% increase in 3rd quarter 2016, and a total revenue increase of >20% for calendar year 2016.
Marketing Strategies
Outline of how the company will achieve its objectives
- Target Market(s)
- Local small businesses utilizing commercial off-the-shelf software for inventory management.
- Local small businesses utilizing computer and networking hardware to manage their business, operate websites, or store information.
- Local small businesses processing credit card payments for VISA, MasterCard, American Express, Discover, and fuel cards.
- Marketing mix – TMW Technology will use a marketing mix focused on it services (the product), promotion, and owner/managers of small businesses. Specifically TMW Technology will:
- Product – Prove the value through demonstrations of usefulness, quality, value, and warranties.
- Place – Service contracts will be obtained through direct sales while one-off or ad hoc requests for support can be obtained through the internet.
- Promotion – Advertising via local radio and television will be the primary method for promotion. Secondary methods will include testimonials from current clients and free lunch and learns for owners and managers of local small businesses at local high-end restaurants.
Marketing Implementation
Outline of how the company will implement its marketing strategies
- Marketing organization – Sign one year contract with local marketing firm. RFP requested from Howell Marketing Strategies and CodeWithPower Web Design and Marketing.
- Activities and responsibilities – The contracted firm will provide the following:
- Logo development
- Advertising in the Memphis local radio and television services
- Event planning and coordination at local high-end restaurants
- Three radio advertisements, two TV advertisements, and four lunch and learn events
- Implementation timetable
- RFP award January 4, 2015
- Logo design, review, and selection January 22, 2015
- Radio advert #1 go live February 15, 2015
- TV Advert #1 go live February 29, 2015
- Event #1 March 17, 2015, venue TBD
- Radio advert #2 go live April 4, 2015
- TV Advert #2 go live April 18, 2015
- Event #2 June 16, 2015, venue TBD
- Radio advert #3, August 1, 2015
Performance Evaluation
Explanation of how the company will evaluate the performance of the implemented plan
- Performance standards – Presently TMW Technology on average takes 10 calls a month from small businesses looking for our offered IT services. Additionally, word of mouth and personal relationships return on average two opportunities for direct sales of services each quarter. This marketing plan must do the following to be considered a success:
- Triple, from 10 to 30 cold calls for services by the beginning of the fourth quarter 2016 (October 1, 2016).
- Average four face-to-face opportunities for direct sales of services per month by beginning of fourth quarter 2016 (October 2016).
- Financial controls – TMW Technology has budgeted $25,000 to execute this marketing plan itemized as follows:
- 43% radio adverts
- 37% television adverts
- 18% lunch and learn events
- 2% Logo design
- Monitoring procedures (audits) – An audit of the marketing plan execution and financial expenditures will be conducted by the TMW Technology CFO and owner Kelly Wilson in accordance with the following schedule:
- February 1, 2016 – financial audit
- March 1, 2016 – financial audit
- April 1, 2016 – financial and marketing return audit
- May 1, 2016 – financial audit
- June 1, 2016 – financial and marketing return audit
- July 1, 2016 – financial audit
- August 1, 2016 – financial audit
- September 1, 2016 – financial audit
- October 1, 2016 – financial and marketing return audit
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