Results
Tutorial
Account
Forums
Friday, February 06, 2009
Taxi Tops LTD.
Place: second place in Ads
TAXI TOPS LTD.
Prepared by
Marc J. Okon
5/07
Table of Contents
Executive Summary
1. The Marketing Plan
2. The Operations Plan
3. The Organization Plan
4. The Financial Plan
Appendices
EXECUTIVE SUMMARY
Taxi Tops Ltd. has been created to fill the current void experienced in the Taxi Cab advertising market. There are currently 12,053 licensed Taxi Cabs in NYC with fewer than 30% enabled with an advertising bracket on the roof of the vehicle. Taxi Tops Ltd. Will fill that void by installing
Advertising brackets on the roof of Taxis, for a one time expense, while earning a consistent monthly revenue stream from advertising. Due diligence has shown there is no direct competition competing to fill this void leaving the company in a prime position for consistent growth. Staffing the company for the day to day operations is simplified considering once the advertising brackets are installed, the only requirement is to change the advertising billboards on a monthly or quarterly basis. The business objective is to take seven percentage points of market share per year, until all NYC taxi cabs currently unequipped with Billboard brackets are outfitted with a Taxi Cab Ltd. Billboard Advertising Bracket. The reason the business will be successful is best put by the phrase everybody wins. For zero cost to the Taxi cab owner a professional Billboard Bracket will be installed on the vehicle with the taxi cab owner sharing in the revenue derived from the advertising with the owners of Taxi Tops Ltd.
The financial projections for the first year are as follows:
7% of 12,053 taxis= 843 taxis
843 taxis x $350 monthly advertising rate = $295.050.00 monthly
$295.050.00 x 12 months = $3,540,600.00 yearly
1. Marketing Plan
The marketing plan consists of 3 strategic steps which are as follows:
1. Sign contracts with taxi cab owners with the aid of TLC registered Taxi Brokers.
2. Contract Advertising agency (media buyer) to outfit contracted taxi cabs with billboard advertising.
3. Install billboard advertising bracket (subcontracted service) once advertising is secured, preventing risk and expense until advertising revenue is in place.
The TLC website www.nyc.gov/taxi has a list of 27 registered taxi brokers which were contacted with encouraging results. Four specific companies are currently expecting a written proposal to outfit their fleet and customers (independent taxi owners) with Taxi Tops Ltd Billboard Brackets. They are as follows:
• Medallion Transfer Inc, NYC: 200 Taxis
• Big Apple Brokerage, NYC: 200 Taxis
• Taxi Club Management Inc, NYC: 800 Taxis
• Jobar Inc, NYC: 700 Taxis
The plan is to prepare a proposal which includes information, contracts and owner compensation for entering into a partnership with Taxi Tops Ltd. Once a substantial number of Taxi Cab owners are under contract to be fitted with a free billboard bracket, a major advertising agency will be hired to place their clients onto the billboard for a monthly, quarterly or yearly fee. Then the Billboard brackets which cost $260.00 a piece will be installed on the taxi cab risk free, considering advertising revenue is in place.
2. The Operations Plan
The business will be a NYC corporation under the name Taxi Tops Ltd. The business will have at most 2 employees to man a small installation shop where phone calls are answered and where the changing of the billboards on a monthly or quarterly basis will be accommodated. Initially the business will focus solely on the NYC market.
The Billboard Advertising Brackets will be manufactured in Canada and shipped to a service station in Manhattan where they will be installed.
3. The Organizational Plan
The Company will have as ownership the founder Marc J. Okon and the initial investor/partner- Terms to be discussed in the future.
4. The Financial Plan
The simplicity of this plan requires a minimal start up investment.
These expenses include:
Lawyer and accounting fees, printing of proposals, Formation of Legal Corporation.
Once the contracts are signed with the taxi cab owners for installation of the billboard bracket and advertising is in place a large one time expenditure will be needed for the installation of the billboard advertising brackets on the taxi cabs.
(3) Comments •