Marketing Plan Outline
Last Verified:
2006-10-03
Summary
A marketing plan is designed to direct company activities towards the satisfaction of customer needs; determine what the customer wants, develop a product/service to meet those needs, get the product/service to the end user and communicate with the customer—at a profit!
Introduction
WHO |
is the company, principals, employees, community? |
WHAT |
is the product/service, what is the company's goal? |
WHERE |
is the plant to be established |
HOW |
does the company intend to meet its objectives, production levels, sales volumes? |
WHY |
was the product/service developed, what are its attributes or qualities, and how is it superior to existing products? |
Target Markets
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What is the company's initial proposed market?
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local
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provincial
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western provinces
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national
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How does the company fit in the chain of basic markets?
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consumer
- industrial
- government
- international
- supplier
- manufacturer
- wholesaler
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What are the target market boundaries?
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by consumer group
-
geographically
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Define the dollar value of total potential sales within the proposed target market.
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Describe the targeted user groups by age, gender, lifestyle, values (major customer groups).
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Define the company's sales level objectives and what percentage of total market share they represent.
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Describe how planned production capability compares to proposed market demand.
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Outline any outside influencing factors which may affect the marketability of the product, and how they can be overcome:
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packaging/labelling regulations
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GST (effect on consumer price acceptance)
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buyer preferences (health food vs. junk food)
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technology changes to production (extrusion method)
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Describe when the product/service is usually purchased; on impulse or as a regular grocery shopping item. Does the proposed marketing strategy address these trends?
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Who usually does the purchasing of the product/service? Who makes the purchasing decision? Is the marketing strategy properly directed to this group?
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Describe the varieties of the product available:
- by flavour
- by size of package
- What are the markets for each of the above?
- Where is the product normally purchased?
- supermarkets
- grocery stores
- convenience stores
- snack bars
- gas bars
- vending machines
- schools
- Are the marketing efforts properly targeted to these locations?
Market Demands
- Who is the competition?
- 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 are 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 markups 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.?
Product Introduction
- 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 markups are allowed at each level of distribution (markup chain and channel pricing)?
For example:
Manufacturer |
|
Wholesaler |
|
Retailer |
|
Cost |
90% |
Cost |
80% |
Cost |
60% |
+ |
|
+ |
|
+ |
|
Markup |
10% |
Markup |
20% |
Markup |
40% |
= |
|
= |
|
= |
|
Selling Price |
100% |
Selling Price |
100% |
Selling Price |
100% |
- 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—manufacturer to consumer
- one stage—manufacturer to retailer to consumer
- traditional—manufacturer to wholesaler to retailer to consumer
- multi-stage—manufacturer to broker 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 affect delivery/production time frames?
- What are delivery terms?
- 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? (cost efficient)
- 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
Selling
- What type of sales persons are to be used—food brokers, commissioned salespersons, etc.?
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What tools are to be provided to salespersons to assist getting orders (volume discounts, purchasing shelf space, etc.)?
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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
Publicity
- How does the company plan to "kick off" the introduction of the product using publicity?
- endorsements (Sask-Made)
- testimonials
- referrals
- truck signs
- consistent visual theme
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