During my interview with Zach Molgaard I asked if opening a new business now, during the current economic state was a concern. Zach reply, “We opened our business at the beginning of the current state. We had not experience the tolls on sales because we had no past sales to compare it too. We are making a profit each month so in our minds, the economy has not affected our business. In fact, I believe we are better off now because people are not selling their homes, they are remodeling them.
An issue that the company is currently facing is recognition. The company just marked it first year of business and each month they are making a profit. Local customers are well aware of Menards, Lowes, Hobo and even LPI for kitchen and bath cabinets but Kitchen Cubes is new to the area and only known through word of mouth marketing. A Kenosha News article that was published on January 1, 2009 was considered a great success in marketing their new establishment. During the Kenosha Expo weekend Kitchen Cube set up a booth to also share with the community their existence. Those two marketing resourced brought the several leads as well as purchasing customers. Customers surveyed have only positive things to say about their experience with Kitchen Cubes. The franchise looking business comes with a family touch.
Kitchen Cubes current web site contains a one page layout that shows the companies hours and location. One of the goals is to increase sales by developing the website to be an online store. Customers throughout the US can purchase kitchen cabinets online and have them delivered direct to their door.
The next step to advertising would be online advertising. Most consumers go to the internet verses the phone book when they are searching for a product. In order to get the Kitchen Cube name out in the public eye the company needs to invest in online marketing. Search marketing by Yahoo companies are able to reach more customers. In fact per the comScores search 2.0, in July 2007 over 2.3 billion searches occur on Yahoo each month. Yahoo helps you target specific demographics, local and/or national audiences
Business Needs
Grow the company name.
Installers
Competition
Hobo offers Hobo card for financing they carry the same cabinet and per the online advertisement.
For over a decade, we’ve been helping home owners and contractor professionals save money. At HOBO we offer everything for your home at discount prices. How do we do this? We work with top suppliers around the world to bring you value and famous low HOBO prices. From floors and doors all the way to the kitchen sink, we not only offer the products you need to remodel your home, we help you start and finish your project this weekend all at a great savings.
And the best part, our products are always changing. We receive truckloads of new and unique merchandise everyday. Remember at HOBO, You never know what you'll find, but you'll always find it for less!
70 year-old southern-Indiana manufacturer of fine cabinetry employs generations of skilled craftsman. Offering over 100 door styles and too many finish options to mention, Haas offers the HOBO customer a premium quality cabinet, at a better price than other homecenters. AND...all purchases of four or more cabinets includes FREE HOME DELIVERY!
Menards is a chain of stores in the .
This privately held franchise is headquartered in . The company has 252 stores in 12 states: , , , , , , , , , , and . A June 2008 revision to the corporate hints at possible expansion into . The 250th store is expected to open in mid to late 2009.
Midwest Manufacturing is a "sister" company of the Menards stores and manufactures many building and home improvement products sold in the stores. MasterCraft and Ultradeck are some of the brand names used by Midwest Manufacturing.
While the privately held company does not release sales figures, it is believed to be the third largest home center chain in the United States behind and . The trade publication estimated 2007 sales at $8 billion.
For many years, Menards' featured free-lance , who became a as "the Menards Guy." In the late , a young, hands-on woman temporarily took the role in Szmanda's absence. Recent commercials, however, feature Bo Landry in his place; although, a version of "the Menards Guy" still appears in Menards' print ads and on some in-store signage. The commercials end with the well-known , "." (During the shopping season the jingle changes to "Warm seasons greetings to you all from Menards!") A reference was made to this jingle on , in the "Giant Spider Invasion" episode. Mike blurts out "It's a giant spider invasion of savings at Menards!!".
Menards commercials are also accompanied with music played by Gary Shaw of Wisconsin. In reference to creating the musical piece, Shaw said, "I just started playing on it and they said, 'That's perfect; that's exactly what we need.' Took me a half an hour. I got $50 for a one-time fee, and I've had to listen to that commercial every day for 20 years."
The Home Depot (: ) is an of and products and services. The Home Depot employs more than 331,000 people and operates 2,193 across the (including the 50 , the , , the and ), (ten ), and . The Home Depot is headquartered from the Atlanta Store Support Center in , , near .
The Home Depot is the largest home-improvement retailer in the United States, ahead of rival , and the second-largest general retailer in the United States, behind only .
LPI Kitchen & Bath Outlet & (Design Center) was started in 1985 from a need to move overstock, and slightly flawed product from our manufacturing facility Laminated Products, Inc.
LPI has been fabricating kitchen and bathroom countertops since 1964, and have been in our current location since 1983. Our facility is continually increasing to accommodate the most current kitchen and bathroom products to suite any remodel. All this to ensure our customers that we are committed to providing home owners and contractors with up-to-date kitchen and bathroom products for all new construction and remodeling projects.
LPI Kitchen & Bath has grown into a large retail facility with a 4000 square foot factory outlet area where we sell cabinets and countertop seconds from LPI's manufacturing plant.
Our 3000 square foot showroom has displays to showcase the many products available to order. We sell everything at a discount.
LPI has a warehouse space where they stock 5 lines of cabinets for distribution that LPI Kitchen & Bath draws from for same day pick up.
LPI Kitchen & Bath outlet prides itself on our ability to supply our customer with kitchen and bathroom products to suite any style and budget. We work with a variety of distributors to ensure that our customers are provided with the products that accommodate their personal remodeling or new construction needs. No job is too big ar too small so stop in and see us today. We look forward to helping you in your next remodeling project.
Solution
Advertise on shopping carts
Another news article
Continue to develop online store
Conclusion
Kitchen Cubes long term goal is to open several different stores in Wisconsin and Illinois. Before another location will be considered the first company needs to be debt free or close to it (Molgaard). There customer base focus is on middle class families looking to remodel their existing kitchen and bath. The company owners strive for exceptional customer service by providing services above and beyond their competition. They believe the word-of-mouth marketing is more of a payback then spending thousands of dollars on marketing advertisements.
Work Cited
Yahoo Small Business Search Engine Marketing
Cost to advertise on Yahoo
http://sem.smallbusiness.yahoo.com/searchenginemarketing/marketingcost.php
Hobo website
Wikipedia Menards
Laminated Products http://www.lpikitchenandbath.com/
