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Pyramid Door Case Analysis

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Submitted By srjr1012
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I. Problem statement Which strategy should Pyramid Door, Inc. implement, along with increased advertising for 100 dealers to achieve the sales goal of $12.5 million for the year of 2006? The four strategic options are increasing the number of non-exclusive dealers by 100, developing a formal executive franchise with 27 dealers so they would exclusively sell Pyramid Door products, reduce the number of non-exlusive dealers by 100, and the last plan was to only do a better job with current distribution policy and network. II. Industry Analysis A. National industry analysis: In the residential garage door industry sales are projected to be $2.25 billion representing a 2.4% increase. There are several large national manufacturers and many regional and local manufacturers in the U.S. The Largest garage door manufacturer is the Cloplay Corporation which has a network of some 2000 independent dealers and large home center chains, including Home Depot, Menards, and Lowe’s Companies. Other large, well-known garage door manufacturers are Overhead Door Corporation, Wayne-Dalton Corporation, Amarr Garage Doors, and Raynor Garage Doors. Consumers in the market for residential garage doors do not recognize name brands of doors as only 10% of prospective buyers could provide a brand name. The most important criteria for prospective buyers was price followed by quality, reliability of installer, and aesthetic appeal of the actual garage door. The principle sources for prospective buyers getting information about garage doors were from friends, relatives, and neighbors followed by newspaper ads and the Yellow Pages. 30% of prospective buyers expected to get at least 2 bids on a residential garage door installation and virtually all of them expected to receive and review product literature, including warranty information, prior to installation. 15% said

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