Marketing Plan Outline

SBMG 10000 Module 1: The Marketing PlanWORKSHEETS

WORKSHEET 1

Competitive Analysis

Instructions: Perform your competitive analysis using the guidelines which follow.

1. Identify the strengths and weaknesses of your biggest competitors and your own business in the space below. (Refer back to Exhibit 2 for ideas)

COMPETITOR STRENGTHS WEAKNESSES COMMENTSCompetitor A

Competitor B

Competitor C

Etc.

Etc.

Your Company

You must also write out an accompanying narrative so the reader notices what you want them to remember about your business. Perform an analysis of your competition and identify your source(s) of competitive advantage.

Competitive Analysis Narrative: (enter your narrative here)

Competitive Advantage(s): (enter your advantage(s) here)

SBMG 10000 Module 1: The Marketing Plan

2. Indirect Competitors (sell different products, which can be used as "substitutes" for your products)

Name and Location Possible Threats

i)

ii)

iii)

This worksheet’s questions will help you add relevant detail to the “Description of Product/Service” which appears early in your business plan.

This worksheet’s questions will help you add relevant detail to the “Description of Product/Service” which appears early in your business plan.


WORKSHEET 2

Developing Your Product Strategy

You are not required to complete all of this worksheet – only sections relevant to your business.

Instructions: Use the questions in this worksheet to make notes, which will help you to complete the section of your business plan, "Description of Product/Service".Note: Part B is exclusively for Service Businesses, while Part C is solely forManufacturing Businesses. However, you may find that questions from all parts may give ideas for this part of your plan.

This section will build on your prior discussion where you set out the general description of the product or service you intend to offer. Now, you will able to be much more specific as to what you are actually going to provide to your consumers.

PART A: FOR ALL BUSINESSES

1. Total Product Mix (or Service Mix)

a) List major product lines

b) Compare your product quality with your major competitors


c) Major brand names carried

2. Add-on Services (Complete only those which apply to your business.)

a) Accessories

b) Warranties/guarantees

c) Return & refund policies


d) Repair services

e) Delivery/shipping policy

f) Credit policy

g) Other specify

List additional suppliers on separate pages if necessary.


3. a) What will your total level of opening inventory be? (You may express this in either units or dollars).

b) List your major suppliers below (for inventory, office supplies, raw materials, etc.)

Name of SupplierCompany

Contact Person(s)

Address and Phone/Fax Number(s), E-mail Address

1.

2.

3.

4.

5.


PART B: SERVICE BUSINESS ONLY SUPPLEMENT (See Exhibit 4)Use this section if you have a service business, or if you find any of these questions relevant for your business.

1. Explain how you intend to “tangibilize” your service(s). In other words, how will you make your service appear to have tangible, physical qualities? (E.g., car washes place a litter bag with their name on it inside the cars they clean; similarly, a resumé writer might enclose resumé copies in a rich-looking file folder with his/her business name and logo on it.)

2. How will you emphasize the key benefits of your service(s)?

3. If you will hire employees, how will you “market” to them?


4. What quality control guidelines will you enforce? How?

5. How will you deal with the “fluctuating demand” for services, when you cannot hold any inventory?

PART C: MANUFACTURING BUSINESS SUPPLEMENTUse this section ONLY if you have a manufacturing business, or if you find any of these questions relevant for your business.

1. What are your plans for patent protection or trade mark usage?


2. If you plan on contracting out the actual manufacturing, identify potential firms which may manufacture your product:

3. What plans do you have for new product development (be specific!)?

Use this worksheet information to write your Pricing Strategy section of your Business Plan.

Use this worksheet information to write your Pricing Strategy section of your Business Plan.


WORKSHEET 3

Determining Pricing Strategy

Instructions: Fill in the information required under the following questions or headings, except those which very clearly do not apply to your business.

1. Based on Unit 4.1, identify your major pricing objectives for your business.(Your type of objectives may differ greatly, depending on your type of business.)

a) Stay “close” to your competitors

b) Maintain high markups to maximize profits

c) Stimulate sales

d) Maintain a prestige or elite image

e) Appeal to variety of target groups

f) Charge Manufacturer’s Suggested Price

to please your suppliersg) Emphasize "loss leaders" to stimulate

store "traffic"

h) Be a "price leader"

i) Win project "bids"

j) Appeal to select target groups

k) "Discourage" certain target groups

l) Keep inventory "fresh" (high turnover)

Other Pricing Objectives (specify):

m)

n)

o)

p)

q)


2. Can you meet all your pricing objectives simultaneously? Examine your objectives in #1, above, searching for "conflicting" pricing objectives. For example: it is impossible to have the lowest prices while projecting an elite image. If you find any such inconsistencies, change your objectives accordingly.

Comments:

3. Collect information on your competitors' pricing strategies and practices. For example, for a restaurant you should be able to recreate the entire menu of every competitor, and you should also know the "specials", promotional deals, etc., offered by each. Collect advertisements, coupons or make detailed notes regarding all aspects of your competitors' pricing.

Submit any materials collected plus your notes with your worksheets to this module.Any comments?

NOTE: These are preliminary prices only – you may wish to change them as you better understand your costs, especially after you have worked through your financial plan – or even later!


4. Give your actual projected prices, price ranges or the entire markup chain (if you have a wholesaling or manufacturing business), for your major products/services or product lines: (Use a separate page if the format of this page does not suit your needs.)

Product/Service Description Unit Price or Price Range

1. $

2. $

3. $

4. $

5. $

6. $

7. $

8. $

9. $

10. $

Use additonal pages as required.


5. Write a summary of your business' pricing strategy below. Begin by listing your pricing objectives and be sure to include a section on your competitors' pricing strategies.Add this summary to your business plan.


WORKSHEET 4Developing or Describing Your Distribution Channel

(Manufacturing or Wholesaling Businesses Only)

This worksheet information may be used in your business plan.

Instructions: If your business is a wholesaling or manufacturing enterprise, then plan your expected distribution channel below. Be sure to name the various types of middlemen used.Refer to the readings in Activity 5 for guidance.

Draw Your Distribution Channel Here:

Comments/Explanation:


WORKSHEET 5

Promotion Objectives and Target Market Characteristics

This worksheet information will contribute to your business plan.

Instructions: Answer the questions which follow.

1. List and describe your promotion objectives for your first year in business:

a) Your Projected Total Sales for year 1: $______________

b) Target Market Awareness (% of market that will become aware of your business in Year 1): %________________

c) Market Share in Year 1:______________ % of market

d) Competitive Position (market leader, #6 in market, etc):________________________

e) Other Objectives (Specify):__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. a) Describe the "image" you want your business to have. You may wish to first review your mission statement, which you have already prepared – and you should be sure that your image is consistent with your selected target market.


WORKSHEET 6

Choosing Appropriate Media

This worksheet information will provide you with reasons and explanations for what you propose to do in your promotion plan.

Instructions: Review Worksheet 5 and Exhibits 5-8, and then select your choice of promotional methods/media, listing them and describing your reasons for their choice in the space below. Keep your "mission", your desired image and your promotional objectives in mind as you select your promotional techniques and media.

1. Advertising Media Selected Why Chosen

a)

b)

c)

d)


2. Sales Promotion Methods Why Chosen

a)

b)

c)

d)


3. Personal Selling Methods Why Chosen

a)

b)

c)

d)


4. Public Relations Methods Why/How Used

a)

b)

c)

5. Publicity Sought How You Expect to Attract Publicity

a)

b)

c)


6. Develop image elements (such as a logo), business card, letterhead, advertisement, flyers, brochure, etc. and submit them with your worksheets.Such "promotional pieces" will be good additions to the appendix of yourbusiness plan.

NOTE: You should already have completed such image pieces as part of your computer work in Semester 1.

The information in this worksheet will be part of your business plan.The information in this worksheet will be part of your business plan.


WORKSHEET 7

Annual Promotion Calendar

Instructions: In the space below, develop your annual promotion calendar. Consider the times of traditional “sales” or promotions for your type of business, other seasonal marketing activities (e.g., ordering/receiving spring stock), or any other events, which are important from a promotional standpoint. The ideas that you will list below will help you through the slow periods associated with your business or industry (the seasonality component).

Month Description of Important Events/Dates and Key Promotional Activities

January

February

March



April

May

June

July

August



September

October

November

December

SBMG 10000 Module 1: The Marketing PlanWORKSHEET 8The intention of this worksheet is to have you set out your promotional and media budget and plans for your business. A basic approach to this activity is to set out your budget, then decide how to allocate your limited funds across media and months. The result of your work will be a completed promotional table along with graphs showing your expenditures by both month and media. In addition, you can provide a selection of ideas you intend to use during slow or off periods to keep your cash flowing.

As you decide on goals in general and your promotional plans in particular, keep in mind goal setting techniques such as SMART (Specific, Measurable, Achievable, Realistic, Time framed).

ABC COMPANY PROMOTION PLANMonth Marketing Objective

(awareness, interest, intention, purchase,

ppdr)

Budget ($)

Marketing Medium

(newspaper, radio, etc.)

Comments

Pre Start UpJanuaryFebruary

DecemberTOTAL $ Total promo $ as % of sales:

Special Promotions During Slow Months/Off Periods***


WORKSHEET 9

Marketing Plan Outline

This worksheet will help you put together your marketing plan,which is an important part of your business plan.

Instructions: Using worksheets from this module and previous modules (e.g., SB101 Modules 2, 3, 4 and 5), plus any previous written parts of your business plan which apply, complete your business’s marketing plan, using the general outline which follows: (other outlines can be found on the internet)

Note: Modify this outline as required to meet the needs of your specific business.

Marketing Plan Outline(Extracted from Handout, “A Guide to Business Plan Contents”)

(a) Competitive Analysis: Your business’s strengths and weaknesses, versus those of your competitors (SB101 Module 3 and SBMG 10000 Module 1)• Include both direct and indirect competitors• Identify “Key Success Factors” for your type of business—how do you “measure up”?• Include locational strengths and weaknesses.• Where is your competition headed—where will they be in 1, 3, 5 years?• Where are you best “positioned” for future growth?• Your business’s competitive advantageAppendix: Competitor Information

(b) Target Market (SB101 Module 5)• Identify both consumer and commercial market segments to target:

describe demographic and psychographic characteristics, product/service preferences, buying habits, etc. for each segment.

• Is the overall market growing, stable or in decline?• Which segments are growing, stable or in decline?—Future predictions?• Are any changes likely due to the data and trends from your SWOT Analysis?Appendix: Target Market Data, Information and Research

(c) Description of Products/Services (SBMG 10000 Module 1)• Product/service “lines”, width and depth of product/service selection• Key benefits of products carried• Inventory carried—and dollar value of inventory• Major brand names carried• Product accessories, add-ons, warranties, guarantees• “Proprietary rights”: patents, trademarks, copyrights, franchise agreements,

other legal agreements re: product

SBMG 10000 Module 1: The Marketing Plan• Product Life Cycle issues• Future plans for new product development/introductionAppendix: Product lists, product photographs, supplier list(s), menu (rest.),

written warranties/guarantees, documentation for patent, trademark, copyright, etc.

(d) Pricing Strategy/Policy (SBMG 10000 Module 1)• Main pricing objectives• Brief description of pricing strategy (Compare to competitors’ strategies, give

rationalle.)Appendix: price list(s), menu (if foodservice business)

(e) Location or Distribution Strategy (SB202 Module 2 — still to be covered)• Analysis of alternative locational areas/sites

Note: what does your business need in a location? (Keep your products and target market needs in mind.)

• Trading area and locations of key competitors• Details of property purchase agreement or lease• Detailed physical description of premises, layout, signage, leasehold improvements,

etc.• Details of home business office setup• Site-sensitive legal issues: e.g., zoning, licences, permits • Costs associated with location strategy• Delivery and/or shipping costs• Description of distribution channels, intermediaries sought• Legal issues pertaining to distribution or to e-commerce/web site operation

—e.g., customs, credit card payment, etc.

Appendix: Trading area map, buy/sell agreement or lease details, layout and site diagram, renovations/leasehold improvements estimates/details, site photographs (your business and your competitors’), legal/logistics information related to e-commerce/web site operation, etc.

(f) Promotion Plan (SBMG 10000 Module 1, also SB101 Module 2 and SBMG 10000 Module 3)

• Year 1 Promotion Objectives (See Worksheet 5, SBMG 1000 Module 1)• Annual Promotion Planning budget Calendar (See Wksh. 7, SBMG 10000 Module 1)• Promotion Budget—by medium (See Worksheet 8 and Exhibit 10, SBMG 10000

Module 1.)• Monthly Promotion Budget (See Worksheet 9 and Exhibit 11, SBMG 10000

Module 1.)• Description of Promotion Plan: Advertising, Personal Selling, Sales Promotion,

Publicity/Public Relations (from promo budgets & Wksh. 6, SBMG 10000 Module 1.)• Networking Strategy (SB101 Mod 2) – Your Networking Budget is a separate budget.• Customer Service Policy (or Strategy) (SBMG 10000 Module 3)Appendix: Sample promotion pieces, competitor promotional materials, etc.

Marketing Plan Outline

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