Peak Garage Door

1267 Words6 Pages
Case Brief Peak Garage Door, Inc. Peak Garage Door had just finished its company planning process and wanted to increase its sales by 36 percent with a sales goal of $12.5 million for 2004. With such a large increase there was concern that the current distribution approach would not be sufficient to increase sales by the amount necessary. Richard Hawly, Director of Sales and Marketing, has been tasked with devising the best distribution strategy that would be consistent with achieving the 2004 sales goal. In devising the best distribution strategy several factors need to be considered. One important factor is the current garage door market. One way to look at this is to look at the entire market. The entire 2004 projected sales for 2004 in $2.05 billion which represents a 2.4 percent increase in 2003 sales. Peak Garages Doors only makes steel garage doors and these represent 90 percent of the market. Based on this we see that the current steel door garage market in the entire US is $1.845 billion. |2004 Projected Sales |  | Steel Garage Doors |  | 2004 Steel Garage Door Market | | $ 2,050,000,000 | x |90% | = | $1,845,000,000 | While this maybe the entire market of steel garage doors it is not relevant to Peak since Peak only serves a portion of the US which is in 150 markets in about 12 states. Peak recently conducted a study in the areas they served and found out that their current market size is about $348.5 million for 2003 steel garage doors. Now we can estimate that the 2004 market size will be 2.4 percent higher which is consistent with the national average. Based on this we can estimate that our 2004 relevant steel garage door market is $356,864,000. |2004 Increase | 

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