Marketing Plan Outline

Summary

A marketing plan is designed to direct company activities towards the satisfaction of customer needs.  Therefore, determine what the customers want, develop a product/service to meet those needs, get the product/service to the end user, and communicate with the customer.

Introduction

Target Markets

• What is the company's initial proposed market?

  - local
  - provincial
  - western provinces
  - national
  - international

• How does the company fit in the chain of basic markets?

- consumer
- industrial
- government
- international
- supplier
- manufacturer
- wholesaler

• What are the target market boundaries?

  - by consumer group demographics
  - by geographic region

• Define the dollar value of total potential sales within the proposed target market.
  
  
• Describe the targeted user groups by age, gender, lifestyle, income, education, values.
  
  
• Define the company's sales level objectives and what percentage of total market share they represent.
  
  
• Describe how planned production capability compares to proposed market demand.
  
  
• Outline any outside influencing factors which may affect the marketability of the product, and how they can be overcome:

  - packaging/labelling regulations
  - GST/PST (Provincial Sales Tax) (effect on consumer price acceptance)
  - buyer preferences (i.e., health food vs.. junk food)
  - technology changes to production (extrusion method)
  - environmental preservation considerations

• Describe when the product/service is usually purchased; on impulse or as a regular shopping item. Does the proposed marketing strategy address these trends?
  
  
• Who usually does the purchasing of the product/service?  Who makes the purchasing decision?  Is the marketing strategy properly directed to this group?
  
  
• Describe the varieties of the product available:

- by flavour
- by size or colour
- by options available
- by price

• What are the markets for each of the above?
  
  
• Where is the product normally purchased?

- supermarkets
- retail chains
- convenience stores
- snack bars / vending machines
- gas bars
- schools
- factory outlets
- catalogue
- Internet

• Are the marketing efforts properly targeted to these locations?
  
  

Market Demands

• Who is the competition (i.e., domestic or foreign)?
  
  
• What are their products/services?
  
  
• How does this product/service compare by quality, price, packaging and variety?
  
  
• What percentage of the total market does each competitor enjoy?
  
  
• What can this company realistically expect to obtain as market share (provide sales forecasts)?
  
  
• What does the public normally demand from this type of product/service?  Does it meet these demands?
  
  
• Does the packaging (sales aids/point of purchase displays) emphasize the qualities of the product/service?
  
  
• What level of sales growth is anticipated over the next three years?  Can the plan deliver the production levels necessary to support this growth?
  
  
• What is the company's long range plans?
  
  

Product Pricing

• What is the consumer acceptance price range for this type of product/service?
  
  
• How does the proposed product's/service's price compare?
  
  
• Is there sufficient margin between the manufacturer's cost and the consumer acceptance price level to provide for mark-ups at the wholesale, distributor and retail level?
  
  
• Does the price allow for freight, projected profit, price fluctuations in the market place and consumer interpretation of value?
  
  
• Are coupons or discounts being considered to promote consumers to try other flavours, etc.?
  
  
• What is the product cost breakdown?

        - Costs of goods sold
             - direct labour
             - direct materials

        - Operating expenses
             - selling expenses
             - communications expense
             - general and administration expenses (including
                      freight)

• What mark-ups are allowed at each level of distribution (mark-up chain and channel pricing)?

For example:

• Are the most economical/cost efficient methods of processing and packaging utilized (including raw materials inputs) to keep product/service costs down?

Distribution Channels

• How does the company plan to get the product/service to the end user?
  
  
• What channel of distribution is to be used?

- direct
- traditional
- multi-stage
- manufacturer to broker to wholesaler to retailer to consumer
- manufacturer to consumer
- one-stage
- manufacturer to retailer to consumer
- manufacturer to wholesaler to retailer to consumer

• Who/what company will carry out the distribution?
  
  
• Are commissioned salespersons to be used?
  
  
• What are the costs associated with the proposed distribution channels?
  
  
• How do these channels effect delivery/production time frames?
  
  
• What are delivery terms (i.e., just-in-time inventory systems)?
  
  
• How are products to be packaged for shipping, end-user display?  What physical handling is required?
  
  
• Are display aids (clip racks, bins, etc.) to be provided to retailers?
  
  
• Does packaging meet regulatory agency requirements (labelling, seals, etc.)?
  
  
• Is packaging eye appealing, complementary to product, portraying universal labelling, coded, priced?
  
  
• Is there a method for feedback on customer satisfaction, quality control?
  
  
• What minimum shipping orders are required?
  
  
• What minimum inventory levels must be maintained to ensure no loss of sales due to late deliveries, back orders, split shipments?
  
  
• What system is to be used for processing orders, shipping, billing?
  
  
• What trade terms will be offered?

Promotions/Advertising

• Describe the company's "communications package".

For example:
  - advertising
  - selling
  - sales promotion
  - publicity

• How much is budgeted in Year 1 in each category?

Advertising

• What percentage of each media is to be used in your overall advertising package?

- television
- radio
- newspapers
- magazines
- billboards
- business cards
- Co-operative advertising with wholesalers/retailers
- Internet
- other (i.e., transit advertising)

Selling

• What type of sales persons are to be used (food brokers, commissioned salespersons, etc.)?
  
  
• What tools are to be provided to salespersons to assist getting orders (volume discounts, purchasing shelf space, etc.)?
  
  
• Will a sales training program be offered?
  
  
• How will sales effectiveness be measured?
  
  
• What incentives will be offered to salespersons for new accounts, achievements?

Sales Promotion

• What sales promotion activities are planned?

- point of purchase displays/sales aids
- samples
- coupons
- contests

• What costs are associated with each?

Publicity

• How does the company plan to 'kick off' the introduction of the product using publicity?

- endorsements (Saskatchewan Made)
- testimonials
- referrals
- truck signs
- consistent visual theme

Source: U.S. Small Business Administration
Prepared by: Saskatchewan Regional Economic and Co-operative Development