Quincy Snodgrass Enterprises Case Notes

Quincy Snodgrass plans to open a landscaping business. He is an entrepreneur with a degree in Business Administration. He has worked for many companies and has saved every extra penny toward starting capital for his own business. He plans to provide lawn mowing, edging, and trimming in the spring, summer and fall and add snow removal in the winter.

After researching competitors in and outside his targeted geographic area, he determines an average of $25 per service visit will be an attractive price per service visit.

He creates a target consumer profile: homeowners with income >$90,000, >50 years of age.

Next, he needs to forecast the demand for his service. Since he is starting the business, there is no historical data to use as a benchmark.

He plans to focus his marketing efforts on three small towns:

Smithburg population 700

Emeryville population 1,800

Golf Creek population 2,500

On average, 25% of the population fit his customer profile. He believes 10% of his targeted consumer in each town will contract with his company to provide landscaping and snow removal services.

He will contract with consumer to provide two service visits per month for March-October and one visit per month November-February. Each service visit is $25.

Case Questions: Use the attached spread sheet or create your own. You do not need to submit a spread sheet for the completed assignment. Type your answers into this word document.

Calculate the possible number of customers based on his customer profile.

Calculate the possible contracts he will develop (round down).

Calculate the amount of yearly revenue he will generate based on his proposed fee for service.

Why is demand forecasting important to Quincy?

What should he do if the number of customers fall off and he wants to maintain the same annual revenue?

What should he do if his customers love his work, spread the word to neighbors and he takes on more customers?

Marketing Terms Used in this Case Study

Target Market: a group of potential consumers with shared demographics identified as the most likely buyers of a company's product or service.

Consumer Profile: a description of a customer, or a set of customers, based on the characteristics that they have in common.