The Trex Company Marketing Plan 1) Executive Summary The following document provides an in depth look at the performance and strengths of the Trex Company and the products currently offered. The end user of the products offered, are looked at in depth to give a better understanding and direction for future marketing efforts. The marketing suggestions and directions provided will help the Trex Company to continue its status as a leader into the future. 2) Company Description Trex Company is an innovative company that combines recycled plastic and wood to provide a composite wood alternative for decking, trim, and fencing.The company is a leader in its industry providing materials made of 95% recycled materials that would otherwise lay unused in landfills. Since the company’s formation in 1996 it has become the largest manufacturer of alternative wood building products in the country.
Products offered by the company not only appeal to the consumer because of its Green movement participation and awards, but also provides low maintenance and value to consumers (Trex Company Inc. , 2009). 3) Strategic Focus & Plan A. Mission/VisionTrex Company is committed to providing quality and value to its customers while through innovation, makes a stand for environmental responsibility and improvement.
B. Goals Trex is committed to continue providing quality materials that are economically attainable to a larger consumer market. C. Core Competency and Sustainable Competitive Advantage Trex Company is the largest creator of alternative decking, railing, trim, and fencing products in the United States (Trex Company Inc.
, 2009). 4) Situational Analysis D. SWOT AnalysisStrengths The Trex Company is an innovator using recycled materials in the creation of the products offered to the consumer. Through its innovations Trex demonstrates awareness of the environment through its socially responsible manufacturing activities. The products are not only environmentally friendly but also offer a low maintenance and long life in comparison to other similar use materials. The product created by Trex goes further by having the ability to offer the product in a large variety of products and finishes.
Weaknesses High initial comparative cost of the product to traditional wood products appears to be a weakness at first glance. Extreme weather related limitations of the product cause the need for additional instillation expense. Opportunities Appeal to the customer’s desire for a product with long-term value and performance while showing a leveling off and even declining price difference between projects created with the Trex product compared to traditional materials. ThreatsCompetition from existing and emerging producers of similar and traditional material companies offers to be of course a potential threat to the Trex Company.
E. Industry Analysis The industry view in the current recession is a relatively positive one. Even with the housing market down home improvement and companies offering products for such services do relatively well. The populations although not in general in a position to sell and buy new homes are much more likely to spend their funds on improving their existing property (Klein, 2009).F. Competitor Analysis Competition although has increased over the years in so far as the number of companies that offer similar products still have not surpassed the quality and quantity provided by the Trex Company.
Important here to note is the continued need to keep an eye on the competition as well as making efforts to continue to streamline production costs and continue to be vigilant of the consumers needs. G. Company Analysis The loss from the market due to the nation’s economy brought a loss to for the company in the last year.The midyear rebound from the spring and summer month’s has renewed interest, and has put the company in a better position coming into the autumn months. Through the company use of improved yields during manufacturing and steps to lower other costs, the company will rebound from the previous year’s setbacks (Market Watch, 2009).
E. Customer Analysis The following table provided breaks down the details of our customer providing a look into the make-up of our products end-user. Basics of Segmentation| Segmentation Variables| Typical Breakdowns| Geographic| Region| North America,| City Size| 500,000-900,000| | Statistical Area| Metropolitan | | Media-television| Central Ohio| | Density| Suburban & Urban| Demographic| Gender| Men & Women| | Age| 35-65| | Race/ethnicity| Caucasian, Asian, Hispanic, African-American| | Life stage| Adults & seniors| | Birth era| Baby boomer & Generation X| | Household size| 2. 5| | Marital status| Married| | Income | $50,000-$100,000| | Education| College degree or Some college| | Occupation| Professional| Psychographic| Personality| Extroverted, ambitious| Values| Achievers, experiencers| | Lifestyle| Kids and cul-de-sacs, suburban sprawl| | Needs| Quality, low-maintenance, price/value| Behavioral| Outlet type| Retailer, contractor| | Direct| Direct response| | Product features| Ease of use| | Usage rate| Light user| | Awareness/intentions| Unaware, aware, interested, intending to buy| (City-Data. com, 2009) F.
Market Product Focus 1. Marketing and Product Objectives The marketing and product objective continues to be one of keeping in touch with the customer’s needs and trends.The need to adjust and anticipate the needs and desires of the end customer is paramount to the continued company success. Emphasis of the long-term and environmentally conscious nature of the product is key to the objectives of both the marketing and products offered.
2. Target Markets The market that offers the most opportunity for profit from the product is the middle class and middle-aged married couples. To reach this target group, efforts should be concentrated on contractors providing services to those groups but also the DIY members of those groups. 3.Points of Difference The products offered by Trex Company are differentiated from competitors with similar and traditional products by the fact that Trex is the largest producer of its product type in the United States. The products offered by Trex not only offer long-term value and low maintenance but also is an environmentally Green rated product (Trex Company Inc.
, 2009). 4. Positioning Differentiating the products offered by Trex Company is a key way to position the products offered in relation to other similar products offered by competitive companies.A key difference between Trex products and others is paramount to bring to the attention of consumers to maintain the strongholds the company has in the consumers mind. G.
Marketing Program Employing a dual distribution offering of products combining a direct action to contractors as well as offering to the ultimate consumer through specialty retailers, will be utilized for the products. This method will allow contractors to attain supplies in the larger amounts required for their projects without dealing with a middle man; thus translating to a cost savings. The use of full-service wholesalers should also be utilized and ill be valuable because the full-service wholesaler perform functions to service small contractors and DIY consumers. The emphasis to both groups should be focused on the long-term cost and time saving results from the product over its full lifetime as well as its environmentally friendly aspects. H. Financial Data and Projections The results for 2009 second quarter total $91.
5 million compared to sales numbers of $95. 0 million of the previous year (Reuters, 2009). These results despite the current recession leads to the belief that a growth of an additional 5% over the coming year.Organization Departments throughout the company will need to be tied together and be an active participant including Product Development, Production, Marketing and Advertising.
Each department will need to be in communication and involvement for product success. A lead for each department will need to be chosen so that communication of activities will be relayed. The communication is key to the interrelated nature of each one for the product success. I. Implementation Plan Trade magazines and internet should be the focus of getting products known to the consumer.
A full page magazine add with product highlights as well as direction to the viewer to take advantage of design tools available on the web site will need to be put in place immediately. Offering interactive design tools will allow more detailed interaction with the product thus creating a more personal identification with the product. The internet site also needs to have links made available that leads to the full-service wholesalers will need to be made clearly seen. This will allow the customer to see where and how to obtain the products they need for their project.The creation of a contest directed towards contractors both large and small will also need to be implemented.
The contest will help to generate interest with in the decking contractor industry and if the winner is given the opportunity to have displayed on key vehicles images of the prize winning entry it will serve to be beneficial both the contestant’s business but also the company. This will bring the product to the attention of other contractors as well as consumers looking for home improvement products and projects. J. EvaluationThe Trex Company can look forward to continued success with its efforts to fine tune its existing offering of products to consumers as well as introducing additional products. The products emphasis needs to continue to emphasizing its earth friendly characteristics as well as the long-term benefits when it comes to holding value and low life-time maintenance for the end consumer.
A) Appendices B) Assuming a fixed cost & unit variable cost: Break-even $ Break-even Variable Costs Fixed Costs Quantity References City-Data. com. (2009). Columbus, Ohio. Retrieved July 25, 2009, from City-Data.
com: http://www. ity- data. com/city/Columbus-Ohio. html Klein, K. E.
(2009, July 21). Many service businesses do relatively well in a recession. Retrieved August 15, 2009, from Los Angeles Times: Business: http://www. latimes. com/business/la-fi-inbox21-2009jul21,0,1652056. story Market Watch.
(2009, April 30). Trex Company Announces First-Quarter-2009 Results. Retrieved July 26, 2009, from Market Watch: http://www. marketwatch.
com/story/trex-company-announces-first-quarter-2009-results Reuters. (2009, July 29). Trex Company Reports Second-Quarter-2009 Net Sales of $91. 5 Million and EPS of $0. 49. Retrieved Aug 15, 2009, from
