Marketing Plan For: Company X
In only two pages, the Executive Summary summarizes the ENTIRE Marketing Plan! Briefly discuss your new 4Ps. Financials, and anything else you think would entice the business to want to read the ENTIRE Marketing Plan. For this plan, the Executive Summary should be as close to two pages as possible but not beyond that! While the Marketing Plan’s Executive Summary is the first thing readers see, it should be the last part of the Marketing Plan you write.
The company description should highlight the history and successes of the company. Also describe important aspects of the company.
*interview question and research
The Strategic Focus and Plan sets the strategic direction for the entire organization. Basically, what they should be doing. Since the Strategic Focus and Plan describes what the company should be doing, this is where you will tell the reader that the company is also on the right track since they are getting a Marketing Plan completed by you and your group (put in more professional terms). This is where you will refer to your resumes in the proper Appendix. You include your resumes in the Marketing Plan for the company to reference. When it is time to create another five-year Marketing Plan, the company will know who to contact!
A mission statement is such an important marketing tool because it captures the uniqueness of your company and acts as a base line for quality, service, and your marketing messages. An effective mission statement must be clear and direct. Think of a mission statement as a combination of what your company does and how and why it does it, expressed in a way that encapsulates the values that are important to you. See the link below for “How to Write a Mission Statement in 5 Easy Steps”
*ask the organization if they have a Mission Statement. If the business allows it, make them a new one
Your vision statement will help you define the future success for your business and what your business hopes to become.
Here are some helpful hints for writing a vision statement:
- Make it inspiring. Your vision statement should inspire not only you but everyone who reads it;
- Make it clear;
- Paint a vivid picture of a bright future for your business;
- Be realistic. Make sure you create a vision that you can achieve;
- Ask yourself: what do I want to provide my clients? If your answer is that you want to provide them with knowledge, understanding, empathy, and community, those will become your guiding principles.
*ask the organization if they have a Vision Statement. If the business allows it, make them a new one
The goals section of a marketing plan sets both non-financial and financial targets.
An example of a non-financial goal: “To become known as the leading restaurant and an employer of choice through-out Alberta.”
An example of a financial goal (note it is specific and measurable): “XYZ Inc. will increase sales from $10 million in 2020 to $15 million in 2025.
*ask the organization what their Non-Financial Goals and their Financial Goals are. Add some of your own for the company too
Core competencies are competitively unique and difficult for competitors to imitate (if they can or will be able to at all). To qualify as “core” a competence should be something that other competitors wish they had within their own business. Because they are long term and resource intensive not all organizations possess core competencies. Very small organizations and organizations that provide standard services that are in high demand will usually not possess or need core competencies. Core competencies require continuous improvement and development. Examples: combination of skills, technologies, processes, patents, and knowledge or expertise. If they have any, list the firm’s core competencies. If they don’t, delete this section
*many individuals get this and Competitive Advantage mixed up. Your firm may not have a Core Competency. Ask them if they have one…an example would be patents, secret knowledge, and/or expertise no one else has. Also see if you could come up with your own as well
A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. Examples of competitive advantage are: price, value, unique service features, notable product attributes, customer service, and accessibility. Does the firm have a sustainable competitive advantage? If not, what sustainable competitive advantage do you recommend they pursue? Discuss the company’s sustainable competitive advantage.
*ask the firm what their Sustainable Competitive Advantage is. Come up with your own ideas as well
A business strategy is a strategy that can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage. These strategies are:
- Cost Leadership Strategy-using a serious commitment to reducing expenses that, in turn, lowers the price of the items sold in a relatively broad array of market segments.
- Differentiation Strategy-requires innovation and significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service in a relatively broad array of market segments. This allows the firm to charge a premium price.
- Cost-Focus Strategy-Involves controlling expenses, and, in turn, lowering prices, in a narrow range of market segments.
- Differentiation Focus Strategy-Using significant points of difference in the firm’s offerings to reach one or only a few market segments.
*ask your firm what their Business Strategy is. Come up with your own ideas too. Should they adopt a new strategy?
The essence of the situation analysis is taking stock of where the firm or product has been recently, where it is now, and where it is headed. The situation analysis is the first of three steps in the planning stage.
The SWOT analysis is an effective short-hand summary of the situation analysis. The acronym is used to describe an organization’s internal Strengths and Weaknesses and its external Opportunities and Threats. This analysis provides a solid foundation as a springboard to identify subsequent actions in the marketing plan.
An analysis to identify internal strengths and weaknesses usually includes the consideration of the following areas in an organization:
Management experience level, management style, size
Offerings uniqueness, quality, price
Marketing type and scope of marketing plan
Personnel quality and experience of workforce
Finance sales revenues
Manufacturing quality and dependability of suppliers
Research and Development plans for continual product improvement, R & D budget
An analysis to identify external opportunities and threats usually includes the consideration of the following factors:
Sociocultural demographics, size and stability of market, regional changes in population due to migration, changing ethnic composition of the population, aging of the population, women in the work force, awareness of health and fitness issues, and concern for the environment
Technological effect of technology on any facet of the business
Economic current and projected economic situation of market, interest rates, inflation rates, savings rates, trade deficits, budget deficits, and exchange rates
Political effect of legal and regulatory factors on any facet of the business, tax policy changes, environmental protection laws, extent of regulation/deregulation, and city/town bylaws
Competitive number and size of competitors
The SWOT analysis will be effectively presented in a tabular format (in a table) preceded by a text discussion that elaborates on the information in the table.
*ask your firm to outline their SWOT. You will have to give them the examples listed above for each area. You will also utilize the skills you acquired from our library in-class assignment by knowing how to research EXTENSIVELY for a SWOT. You will add more material to the SWOT
The industry analysis section should provide the backdrop for a more detailed analysis of the competition, the company, and the customer. What factors will affect the industry now and in the future? What local, national and international influences will alter the future of the industry? These are just some questions. To sustain long-term profitability you must respond strategically to competition. You need to keep tabs on your established rivals. But as you scan the competitive arena, you must also look beyond your direct competitors. In this section, I should see an abundance of research on the organization’s industry. For example: what is the company’s estimated size of its market, how much money was spent in the company’s sector, is its industry growing?
By analyzing all five competitive forces, you gain a complete picture of what’s influencing profitability in your industry. You identify game-changing trends early, so you can swiftly exploit them. You will also spot ways to work around constraints on profitability–or even reshape the forces in your favor. An in-depth analysis will give readers confidence in the company’s ability to understand its own industry.
Describe Porter’s five forces generic business model in relation to your firm (include if forces are more or less powerful, and more or less of a threat). Also describe how you could position your company where the forces are the weakest and how you plan on reshaping the forces in your company’s favour.
*ask the business their insight on the industry
*you will utilize the databases from the Library from our in-class assignment to complete the Industry Analysis section.
An effective analysis of the competition should demonstrate that the company has a realistic understanding of its major competitors and their marketing strategies. It is essential to know your competition. By knowing your competition, you will have a better idea of what portion of the market you may be able to obtain. You will have guidelines as to how to price your product and be able to determine market areas which may be untouched or saturated.
Elaborate on the competitors in this section and provide a Competitors’ Matrix. See below for a diagram of a Competitors’ Matrix. List the business and its competitors’ products and/or services and any other qualities that are necessary to make a comparison between the business and its competitors. A text discussion of the competitors must precede the competitor matrix. The competitor matrix will include your organization and its competitors. The matrix will illustrate how your organization does in comparison to its competitors when examining important competitive factors such as price, hours of operation, service, etc. This will help you build on your strengths and improve your weak points. A competitive matrix is an analysis tool that helps you establish your company’s competitive advantage. It provides an easy to read portrait of your competitive landscape and your position in the marketplace. The matrix is illustrated as a simple table. In the left column, list the main features and benefits of your product or service. On the top row, you list your company and the names of your competitors (bring the reader’s attention to your firm in the matrix by shading in the column you occupy). Then fill in the chart with the appropriate information for each company. For example, if you own a dry cleaning service, you might list the different services you offer (clothing repairs, quick turnaround on items such as dry cleaning (will be ready in 24 hours), and the option to have regular clothing washed, dried, and ironed, etc.). In the matrix and written portion above the matrix discuss how your competitors succeed and/or fail at these features.
|Your Company||Cleanitizing||Nu-Tone Cleaners|
|Hours Of Operation||8:00 am – 1:00 am|
|Cost Per Item||List Each|
|Laundromat On Site||Yes|
*ask your firm and do research. They may be missing some
Tell the reader what the business is CURRENTLY doing regarding its 4Ps.
*ask your firm what their CURRENT 4Ps are. Come up with some that they have missed
A thorough customer analysis answers the question: “Who are our customers?” Understanding your customers and what they want is critical in satisfying them and providing genuine value. A customer profile must be illustrated and discussed. This profile must include the demographics of your customers and other important characteristics. Other important information includes: the average expenditure per customer, how many customers does the organization have at the moment, and how many people pass by the organization on a daily basis (traffic count on Blackboard)? This analysis concerns your CURRENT customers.
*you can ask the firm who their Customers are and research this
Setting product objectives and identifying target market segments significantly increases the chance that a product will be successful. The objectives and goals should be stated in measurable terms so that they can be measured during the program implementation and control phases of the marketing plan.
Because an organization cannot satisfy the needs of all consumers, it must concentrate its marketing efforts on the needs of specific niches or target markets. Who is the company’s current target market(s)? If you found another target market, describe the target market(s) you have chosen. Explain why this particular target market(s) was selected and how the product or service meets the needs of the target market(s). You will need to provide evidence of the size of your market(s) by doing a target market calculation (I will go over in class). Also provide a pie chart.
*ask the business who their target market is. Who else would they like to have as a target market? Can you also think of some?
Points of Difference are those characteristics of a product that make it superior to competitive substitutes. The greatest single factor in a new product’s failure is the lack of significant points of difference.
*ask the business what are their points of difference are. Also can you think of any?
A product’s unique points of difference are communicated by way of a positioning strategy. Where is the organization (or its products and/or services) in the consumer’s mind relative to competing products (the competitors in your Competitor Matrix)? In order to be successful, where should the company be? How can the firm achieve this? Use a diagram to illustrate the positioning strategy. If there is not enough room on the positioning chart to show your current position AND where you need to be repositioned, make a second positioning chart to show where you will be repositioned.
*ask the business about their position. Is it high quality, safety? Can you think of any other positions?
Everything that has gone before in the marketing plan sets the stage for the Marketing Mix actions—the 4Ps—-covered in the Marketing Plan. Product, price, promotion, and place (distribution) strategies are all detailed in the Marketing Program section of the plan. Do NOT tell the reader what the business is CURRENTLY doing in regards to its 4Ps, you would have done that under “Company Analysis.” In this section, I should see an abundance of new ideas (especially under Promotion) for the organization. All of your ideas MUST MAKE SENSE. For example, if you are targeting senior citizens, should you advertise on Rock 105.3? Remember to communicate your business strategy (i.e. Wal-Mart uses a Cost-Leadership strategy which it communicates repeatedly “Save Money. Live Better”). In this section you will list your ideas, which will include any of the examples listed beside each strategy. You will provide a full description of each of the marketing strategies.
Product Strategy Features, brand name, brand image, packaging, service, warranty
Price Strategy Discounts, allowances, credit terms, payment period, list price (demand-oriented, cost-oriented, profit-oriented, and competition-oriented approaches (i.e. prestige, price-lining, odd-even, target, standard mark-up, cost-plus, bundle, yield-management, skimming, penetration, flexible, customary, above-, at-, or below-market, loss-leader pricing, and one price policy)
Promotion Strategy Advertising, personal selling, direct marketing, sales promotion (coupons, sweepstakes, patronage rewards, point-of-purchase displays, premiums, price packs/cents-off deals, contests, free samples, prizes, special price offers and rebates, demonstrations, exhibitions, trade shows, giveaways’ (pens, calendars, etc.), and public relations (special events, celebrity visits, fashion shows, special sales events, etc.), word of mouth marketing (buzz), viral marketing, and social media (electronic) *I require that all groups use as much social media as possible, especially if it is free
Place Strategy Outlets, distribution channels, geographical coverage, transportation, electronic distribution, and stock level
*this is where I should see YOUR ideas! Especially an abundance under Promotion! Find as much free strategies as you can and implement over the 5 years.
*FYI: The Medicine Hat Cubs get free promotions from the Medicine Hat News, and my 96.1.
Financial Data and Projections
All the marketing mix decisions covered in the Marketing Program have an effect on both revenue and expenses. A key indicator of what future sales will be is to examine past sales. Therefore, in this section of the Marketing Plan both past and projected financial data is included. Under this heading, you must discuss all important aspects of the financial data. The financial spreadsheet(s) will be in the appendix (unless you can fit the spreadsheet in this section below). When completing the Financial Data and Projections, start with the previous year’s financials, and then show what you think the firm will making for the next five years. Under “Expenses” “Promotional Expenses” will have its own heading and under this will be a list of the many promotional strategies implemented in the five years of your Marketing Plan. Also, a breakeven analysis is required. The breakeven year must be discussed in this section. Lastly, analyze your industry using your NAICS code. The files are labeled Financials If Your Company Did Not Provide Them and Financials If Your Company Provided Them to analyze with the NAICS code.
*Criteria/Assumptions for the Medicine Hat Cubs
- First year $1000 allocated to the 4 P’s
- Increase every year until you are spending $3000 on the 4 P’s.in Year 5 ($500 increase every year until Year 5)
- You are going to assume your strategies in year 1 are effective so you will increase your Total Income by 3% every year until year 5. You will also increase your Expenses by 0.5% until year 5. Usually, when your Total Income increases, so do Expenses
- You WILL be phoning, emailing, etc. basically contacting REAL companies to find out ACTUAL prices of the 4P’s
- Remember to APA each contact as a Personal Communication. Ask the contact for their first initial, and last name. Also note the date of the communication
- Also provide a column chart with Sales vs Expenses vs Net Income
Previous Year Year One Year Two Etc…
Total Income $168,882.02 ? ? ?
Expenses $173,037.47 ? ? ?
Instagram Free Free Free
Twitter Free Free Free
Medicine Hat News Free Free Free
My 96.1 Free Free Free
Home and Trade Show ?
Total Expenses $173,037.47 ? ? ?
Profit -$4,155.45 ? ? ?
*FYI: The Medicine Hat Cubs get free promotions from the Medicine Hat News, and My96.1
A marketing program needs a marketing organization to implement it. This space is reserved to inform the reader of the company’s organization. This section of the Marketing Plan must include an organizational chart with both current and projected positions represented (if beneficial and feasible for the organization). If the chart is too large, it must go in the appendix. For example:
**Due to privacy laws, your organization may not be allowed to disclose the first and last name(s) of each individual employed or anyone else who operates in any capacity in their organization. In this case, you can label each position but not include any first and last names.
*Ask your firm who makes up their organization. Another Organizational Chart may have to be created if you are hiring more individuals for when after your ideas are implemented. Your Organizational Chart may not change. If not, specify this in your Marketing Plan but do not illustrate the Organizational Chart twice.
The implementation plan shows how a company will turn plans into results. To implement a marketing program successfully, hundreds of detailed decisions are often required. These marketing tactics are detailed operational decisions essential to the overall success of marketing strategies. Unlike marketing strategies, marketing tactics involve actions that must be taken immediately.
Describe, in full detail, each of the marketing strategies you plan on implementing over the five years. For each strategy, describe what has to be performed and in what year. In general, this section must align to each of the 4Ps that were created under “Marketing Program.” I should not see anything new in regards to the 4Ps under this section.
*How will you implement the 4Ps? Break it up into five years and detail below.
Evaluation and Control
This section involves a description of the various techniques one could utilize in order to see if the Marketing Program was successful after its implementation. In order to see if the strategies were successful, the marketing manager must do a comparison between projected results against actual results. The difference between projected and actual results is known as a deviation. They then must act to correct the negative and exploit the positive deviations.
Did your firm achieve its non-financial and financial goals? Since you will no longer be available to aid the firm, this section gives the firm some advice on how to do a proper evaluation. Mention how:
- If one of your non-financial goals was to increase customer awareness, you could mention that surveys would be distributed at the end of year one asking individuals “how did you hear about us?” If the firm receives surveys back with all the methods of promotion you recommended to them, then you are on the right track! Or, another way to see if an advertisement worked is having a coupon that must be shown to the cashier in order to receive a discount;
- Surveys to measure employee satisfaction (something as trivial as an anonymous employee suggestion box);
- Surveys to determine customer satisfaction;
- For financial goals, explain how financial statements must be prepared and compared to financial goals:
- compare yearly financial statements
- increase in net income
- sales analysis
- increase in market share
- ratio analysis
Tell the firm that if there is a positive deviation, for example, if performance is greater than expected, the business should attempt to uncover the reasons and act to exploit them. You are also going to give the firm some suggestions to execute if their goals are not being realized. If they experience a negative deviation they should try to correct it. In this section, tell your firm that if any negative deviations are experienced is it probably due some uncontrollable force in their industry. For example, there might be a water shortage and if your business was a car wash, then most likely people would not be washing their cars as much, which causes the firm not to realize their financial goal of having an increase in net income of 10% after year five. Lastly, it is fine if you tell the firm that some of the non-financial and financial goals were not realized due to being over-optimistic.
*read the above