Post on 31-Dec-2015
description
Personal Financial AdvisorMarketing PlanWise Money
Marketing Plan Components
1. Situation Analysis
2. Marketing Strategy
3. Financials
4. Implementation & Control
1. Situation Analysis
Wise Money is a start-up company co founded by a group of financial specialists to provide professional financial consultation for individuals and organizations.
Being a new comer to the market demands exceptional effort from the marketing department in building the desired company and product awareness.
The company is now in the process of launching its first product, which is an internet-based software that provides personal financial advisory services to individuals.
1.Situation Analysis
Market NeedsSeveral Factors have increased individuals' need for financial advice:
Privatization program-New market entrants
Stock Market controversies
Real Estate Market controversies
Inflation Rates fluctuations
1.Situation Analysis
Target Markets• The new product, the Personal Financial Advisor (PFA), is created
for all individuals having the ability to raise savings that exceeds their short-term basic needs, and have basic computer& Internet Skills
• Estimated Target market size: 785,500 prospect• Target Market demographics• Target Market behavior factors
1.Situation Analysis
Concept TestingMarketing Research, Questionnaire
Questionnaire objectives were to:• To test the acceptance of the target market to the new
product concept• To estimate the product's customer perceived value
1.Situation Analysis
Target Markets Trends & Growth• Financial Market rapid development• Increasing Income• Increasing number of Internet users
1.Situation Analysis - Competition:
The product will be the first of its kind in Egypt and that sets the company to be the pioneer and market leader in the Egyptian market. Currently, there is small competition to the product in the local market that comes from:
• Financial advice and wealth management services provided by banks and some big financial institutions, mainly to upper class individuals.
• Stock market trading advice offered now by most of the security brokerage company
1.Situation AnalysisSWOT Analysis:
Strengths:•First Mover advantages (Leadership)•Superior industry experience and technical skills of company staff•PFA Product offers special benefits that are unmatched by any competitor:1. Unbiased advice: The Company is not
involved in any activities related to the trade, management or promotion of any of the tangible assets or securities
2. Total confidentiality for customers3. Offers a complete and comprehensive
solution4. Ability to use the product at any time and
from any place
Weaknesses:•Initial difficulties in creating company awareness•New product category, difficulties in creating concept and product awareness•The PFA product does not allow personal interface to customer
Opportunities:•Continuous and fast increase in breadth and sophistications of investment alternatives which will increase the need for the PFA•High growth rate for population and GDP per capita, which is translated to high potential growth rate for the PFA product•Many opportunities for cross selling
Threats:•High uncertainty in estimating the market's adoption rate for the new product idea•Threats of new entrants and product imitation•PFA is strongly dependant on a specific media, the Internet.
2. Marketing Strategy:Strategic Business unit Mission:• Our mission is to help individuals make better financial decisions by
providing them with the right tools, information, and guidance on how to protect and grow their savings and achieve their specific financial goals. Our only way to gain the trust of our customers and accomplish our mission is to accomplish it with integrity.
• Our core strength lies in our knowledge, professionalism, and dedication to customer satisfaction.
• Together; Management and employees we work for the preservation and enhancement of our customers' and the society's well-being.
Our Vision is to become the benchmark for financial advisors in Egypt
2. Marketing Strategy:Marketing objective:To become the market leader in the financial advisory industry in Egypt within the next five years.
Increase Customer satisfaction rate by 3% each year.
Number of product subscribers reaches 100,000 in 2014.
Establish a strong company image of industry leadership and integrity
Financial Objectives:Increase profit margin to 30% within the next five years
Increase return on Equity by 10% each year for the next five years
2.Marketing Strategy:
Segmentation:
Target Market Segments
lower class
lower middle class,
middle
class,
upper middle class,
upper class
Middle class, Upper middle
class
2.Marketing Strategy:
Positioning
Wise Money will position itself as the leader in the investment and financial advisory industry in the Egyptian market.
Marketing Strategy:Marketing Mix-Product:
Core Benefits:•Financial Goal Setting•Basic cash reserves and insurance needs•Knowledge enrichment•Asset Allocation•Security Selection
Additional Benefits
Product Design
Services
Marketing Strategy:Marketing Mix-Price:
Strategy: Market Penetration Pricing
Pricing Method:• Prices were set based on two factors:• Upper limit for price based on customer perceived value of the
product, estimated from market research.• A lower limit for price was set based on product's cost plus a 15%
margin.
Pricing Options: one-year subscription for 99 EGP, Two-year subscription for 180 EGP
Marketing Strategy:Marketing Mix-Place:
Multiple Sales and Distribution Channels:
Internet, Company Sales offices, Telephone
Marketing Mix-Promotion:
Communication Objectives
Creating company, product category, and brand awareness
Creating superior company image
Communication Channels:
Company web site, TV and Radio ads, Seminars, Newspapers and specialized magazines, Direct Marketing through brochures, mailings, and Email
3.Financials
Break-even Analysis:
FC: Annual Total Fixed Cost : 1,310,000 EGP
VC: Annual Variable Cost per unit subscription = 56.4 EGP
P: Price of annual subscription= 99 EGP
N: Number of subscribers per year at the break even point.
At breakeven: FC+ (N X VC) = NP
Number of subscribers per year at break even point = N= 30751 subscriber
From Sales Forecast breakeven condition is expected at 3rd quarter 2011.
3.FinancialsSales and Expenses Forecast(thousands
EGP)2010 2011 2012 2013 2014
Sales 2500 5000 7500 9500 10500
Expenses 2720 4130 5380 6680 7240
Net Income (220) 870 2120 2820 3260
Profit Margin (8%) 17.4% 28.3% 29.7% 31%
-2000
0
2000
4000
6000
8000
10000
12000
2010 2011 2012 2013 2014
Sales
Expenses
Net Income
3.FinancialsMarketing Expense Budget:
Budget in thousands EGP
2010 2011 2012 2013 2014
Seminars 120 120 80 60 60
Web Site 20 20 20 20 20
TV and Radio 100 100 80 60 60
Journals and Magazines
20 20 20 20 20
Direct selling (mail and E-mail)
30 40 50 60 70
Total 290 300 250 220 230
Percentage of Sales 11.6 6 3.33 2.3 2.2
4. Implementation and Controls:Milestone Schedule Budget Responsibility
Market Testing 1/1/2010 to 1/2/2010 10,000 Marketing Research team
Web Site Advertisement 1/1/2010 and on-going 20,000 Marketing department and outside consultant
Seminars Every two months 120,000 Marketing department
Media Advertising campaign 1/1/2010 and on-going 120,000 Marketing department
Initiate direct selling program 1/2/2010 and-ongoing 30,000 Marketing Department
Building a distribution team 1/1/2010 to 15/2/2010 20,000 Marketing Department
Product Launch 1/3/2010 Marketing
Totals 320,000
Controls
Customer Satisfaction
Customer complaints & Company response
Customer defection
rate & reasons for customers
loss
Monthly number of
new subscribers
Monthly Expenses
Open Discussion – Thank you
Ahmed Medhat
Ahmed Osman
Mohamed Ayman
Closing
Thank you