Marketing Plan 2
APPENDIX
Marketing Plan Worksheets
These worksheets will assist you in writing a formal marketing plan. Worksheets are a useful planning tool because they help to ensure that important information is not omitted from the marketing plan. Answering the questions on these worksheets will enable you to:
1. Organize and structure the data and information you collect during the situation analysis.
2. Use this information to better understand a firm’s strengths and weaknesses, and to recognize the opportunities and threats that exist in the marketing environment.
3. Develop goals and objectives that capitalize on strengths.
4. Develop a marketing strategy that creates competitive advantages.
5. Outline a plan for implementing the marketing strategy.
These worksheets are available in electronic format on our text’s website at www.cengagebrain.com. By downloading these worksheets, you will be able to change the outline or add additional information that is relevant to your situation. Remember that there is no one best way to organize a marketing plan. We designed our outline to serve as a starting point and to be flexible enough to accommodate the unique characteristics of your situation.
As you complete the worksheets, it might be useful to refer back to the text of the chapters. In completing the situation analysis section, be sure to be as comprehensive as possible. The viability of your SWOT analysis depends on how well you have identified all of the relevant environmental issues. Likewise, as you complete the SWOT analysis, you should be honest about the firm’s characteristics. Do not depend on strengths that the firm really does not possess. Honesty is also important for your listing of weaknesses.
I. Executive Summary
The executive summary is a synopsis of the overall marketing plan. It should provide an overview of the entire plan including goals/objectives, strategy elements, implementation issues, and expected outcomes. The executive summary should be the last part of the marketing plan that you write.
II. Situation Analysis
A. The Internal Environment (refer to Exhibit 3.3)
Review of marketing goals and objectives
Identify the firm’s current marketing goals and objectives.
Explain how these goals and objectives are being achieved.
Explain how these goals and objectives are consistent or inconsistent with the firm’s mission, recent trends in the external environment, and recent trends in the customer environment.
Review of current marketing strategy and performance
Describe the firm’s current marketing strategy with respect to products, pricing, distribution, and promotion. Which elements of the strategy are working well? Which elements are not?
Describe the firm’s current performance (sales volume, market share, profitability, awareness, brand preference) compared to other firms in the industry. Is the performance of the industry as a whole improving or declining? Why?
If the firm’s performance is declining, what is the most likely cause (e.g., environmental changes, flawed strategy, poor implementation)?
Review of current and anticipated organizational resources
Describe the current state of the firm’s organizational resources (e.g., financial, capital, human, experience, relationships with key suppliers or customers). How are the levels of these resources likely to change in the future?
If resource levels are expected to change, how can the firm leverage additional resources to meet customer needs better than competitors?
If additional resources are not available, how can the firm compensate for future resource constraints (lack of resources)?
Review of current and anticipated cultural and structural issues
In terms of marketing strategy development and implementation, describe the positive and negative aspects of the current and anticipated culture of the firm. Examples could include:
The firm’s overall customer orientation (or lack thereof)
The firm’s emphasis on short-term versus long-term planning
Willingness of the firm’s culture to embrace change
Internal politics and power struggles
The overall position and importance of the marketing function
Changes in key executive positions
General employee satisfaction and morale
Explain whether the firm’s structure is supportive of the current marketing strategy.
B. The Customer Environment (refer to Exhibit 3.4)
Who are the firm’s current and potential customers?
Describe the important identifying characteristics of the firm’s current and potential customers with respect to demographics, geographic location, psychographic profiles, values/lifestyles, and product usage characteristics (heavy vs. light users).
Identify the important players in the purchase process for the firm’s products. These might include purchasers (actual act of purchase), users (actual product user), purchase influencers (influence the decision, make recommendations), and the bearer of financial responsibility (who pays the bill?).
What do customers do with the firm’s products?
How are the firm’s products connected to customer needs? What are the basic benefits provided by the firm’s products?
How are the firm’s products purchased (quantities and combinations)? Is the product purchased as a part of a solution or alongside complementary products?
How are the firm’s products consumed or used? Are there special consumption situations that influence purchase behavior?
Are there issues related to disposition of the firm’s products, such as waste (garbage) or recycling, which must be addressed by the firm?
Where do customers purchase the firm’s products?
Identify the merchants (intermediaries) where the firm’s products are purchased (e.g., store-based retailers, ecommerce, catalog retailers, vending, wholesale outlets, direct from the firm).
Identify any trends in purchase patterns across these outlets (e.g., how has ecommerce changed the way the firm’s products are purchased?).
When do customers purchase the firm’s products?
How does purchase behavior vary based on different promotional events (communication and price changes) or customer services (hours of operation, delivery)?
How does purchase behavior vary based on uncontrollable influences such as seasonal demand patterns, time-based demand patterns, physical/social surroundings, or competitive activities?
Why (and how) do customers select the firm’s products?
Describe the advantages of the firm’s products relative to competing products. How well do the firm’s products fulfill customers’ needs relative to competing products?
Describe how issues such as brand loyalty, value, commoditization, and relational exchange processes affect customers’ purchase behaviors.
Describe how credit or financing is used in purchasing the firm’s products. Also, do customers seek long-term relationships with the firm, or do they buy in a transactional fashion (based primarily on price)?
Why do potential customers not purchase the firm’s products?
Identify the needs, preferences, and requirements of non-customers that are not being met by the firm’s products.
What are the features, benefits, and advantages of competing products that cause non-customers to choose them over the firm’s products?
Explain how the firm’s pricing, distribution, and/or promotion are out of sync with non-customers. Outside of the product, what causes non-customers to look elsewhere?
Describe the potential for converting non-customers into customers.
C. The External Environment (refer to Exhibit 3.5)
Competition
Identify the firm’s major competitors (brand, product, generic, and total budget).
Identify the characteristics of the firm’s major competitors with respect to size, growth, profitability, target markets, products, and marketing capabilities (production, distribution, promotion, pricing).
What other major strengths and weaknesses do these competitors possess?
List any potential future competitors not identified above.
Economic Growth and Stability
Identify the general economic conditions of the country, region, state, or local area where the firm’s target customers are located. How are these economic conditions related to customers’ ability to purchase the firm’s products?
Describe the economics of the industry within which the firm operates. These issues might include the cost of raw materials, patents, merger/acquisition trends, sales trends, supply/demand issues, marketing challenges, and industry growth/decline.
Political Trends
Identify any political activities affecting the firm or the industry with respect to changes in elected officials (domestic or foreign), potential regulations favored by elected officials, industry (lobbying) groups or political action committees, and consumer advocacy groups.
What are the current and potential hot button political or policy issues at the national, regional, or local level that may affect the firm’s marketing activities?
Legal and Regulatory Issues
Identify any changes in international, federal, state, or local laws and regulations affecting the firm’s or industry’s marketing activities with respect to recent court decisions, recent rulings of federal, state, or local government entities, recent decisions by regulatory and self-regulatory agencies, and changes in global trade agreements or trade law.
Technological Advancements
How have recent technological advances affected the firm’s customers with respect to needs/wants/preferences, access to information, the timing and location of purchase decisions, the ability to compare competing product offerings, or the ability to conduct transactions more effectively and efficiently?
Have customers embraced or rejected these technological advances? How is this issue related to customers’ concerns over privacy and security?
How have recent technological advances affected the firm or the industry with respect to manufacturing, process efficiency, distribution, supply chain effectiveness, promotion, cost-reduction, or customer relationship management?
What future technologies offer important opportunities for the firm? Identify any future technologies that may threaten the firm’s viability or its marketing efforts.
Sociocultural Trends
With respect to the firm’s target customers, identify changes in society’s demographics, values, and lifestyles that affect the firm or the industry.
Explain how these changes are affecting (or may affect) the firm’s products (features, benefits, branding), pricing (value), distribution and supply chain (convenience, efficiency), promotion (message content, delivery, feedback), and people (human resource issues).
Identify the ethical and social responsibility issues that the firm or industry faces. How do these issues affect the firm’s customers? How are these issues expected to change in the future?
III. SWOT Analysis (refer to Exhibit 4.4)
A. Strengths
Strength 1: _________________________________________________________
Strength 2: _________________________________________________________
(Repeat as needed to develop a complete list of strengths)
How do these strengths enable the firm to meet customers’ needs?
How do these strengths differentiate the firm from its competitors?
B. Weaknesses
Weakness 1: ________________________________________________________
Weakness 2: ________________________________________________________
(Repeat as needed to develop a complete list of weaknesses)
How do these weaknesses prevent the firm from meeting customers’ needs?
How do these weaknesses negatively differentiate the firm from its competitors?
C. Opportunities (external situations independent of the firm—not strategic options)
Opportunity 1: _______________________________________________________
Opportunity 2: _______________________________________________________
(Repeat as needed to develop a complete list of opportunities)
How are these opportunities related to serving customers’ needs?
What is the time horizon of each opportunity?
D. Threats (external situations independent of the firm)
Threat 1: ___________________________________________________________
Threat 2: ___________________________________________________________
(Repeat as needed to develop a complete list of threats)
How are these threats related to serving customers’ needs?
What is the time horizon of each threat?
E. The SWOT Matrix (refer to Exhibit 4.5 and Exhibit 4.6)
Strengths:
•
•
•
•
Opportunities:
•
•
•
•
Weaknesses:
•
•
•
•
Threats:
•
•
•
•
F. Developing Competitive Advantages (refer to Exhibit 4.7)
Describe ways that the firm can match its strengths to its opportunities to create capabilities in serving customers’ needs.
Are these capabilities and competitive advantages grounded in the basic principles of operational excellence, product leadership, and/or customer intimacy? If so, how are these capabilities and advantages made apparent to customers?
Can the firm convert its weaknesses into strengths or its threats into opportunities? If not, how can the firm minimize or avoid its weaknesses and threats?
Does the firm possess any major liabilities (unconverted weaknesses that match unconverted threats) or limitations (unconverted weaknesses or threats that match opportunities)? If so, are these liabilities and limitations apparent to customers?
Can the firm do anything about its liabilities or limitations, especially those that impact the firm’s ability to serve customers’ needs?
G. Developing a Strategic Focus
What is the overall strategic focus of the marketing plan? Does the strategic focus follow any particular direction, such as aggressiveness, diversification, turnaround, defensiveness, or niche marketing?
Describe the firm’s strategic focus in terms of a strategy canvas. How does the firm’s strategic thrust provide sufficient focus and divergence from other firms in the industry?
IV. Marketing Goals and Objectives
A. Marketing Goal A: __________________________________________________
(should be broad, motivational, and somewhat vague)
Objective A1: ______________________________________________________
(must contain a specific and measurable outcome, a time frame for completion, and identify the person/unit responsible for achieving the objective)
Objective A2: ______________________________________________________
(must contain a specific and measurable outcome, a time frame for completion, and identify the person/unit responsible for achieving the objective)
B. Marketing Goal B: __________________________________________________
(should be broad, motivational, and somewhat vague)
Objective B1: ______________________________________________________
(must contain a specific and measurable outcome, a time frame for completion, and identify the person/unit responsible for achieving the objective)
Objective B2: ______________________________________________________
(must contain a specific and measurable outcome, a time frame for completion, and identify the person/unit responsible for achieving the objective)
(Can be repeated as needed to develop a complete list of goals and objectives. However, having one goal and two or three objectives is advisable to greatly reduce the complexity of the marketing strategy.)
V. Marketing Strategy
A. Primary (and Secondary) Target Market
Primary target market
Identifying characteristics (demographics, geography, values, psychographics):
Basic needs, wants, preferences, or requirements:
Buying habits and preferences:
Consumption/disposition characteristics:
Secondary target market (optional)
Identifying characteristics (demographics, geography, values, psychographics):
Basic needs, wants, preferences, or requirements:
Buying habits and preferences:
Consumption/disposition characteristics:
B. Product Strategy
Brand name, packaging, and logo design:
Major features and benefits:
Differentiation/positioning strategy:
Supplemental products (including customer service strategy):
Connection to value (core, supplemental, experiential/symbolic attributes):
C. Pricing Strategy
Overall pricing strategy and pricing objectives:
Price comparison to competition:
Connection to differentiation/positioning strategy:
Connection to value (monetary costs):
Profit margin and breakeven:
Specific pricing tactics (discounts, incentives, financing, etc.):
D. Distribution/Supply Chain Strategy
Overall supply chain strategy (including distribution intensity):
Channels and intermediaries to be used:
Connection to differentiation/positioning strategy:
Connection to value (nonmonetary costs):
Strategies to ensure channel support (slotting fees, guarantees, etc.):
Tactics designed to increase time, place, and possession utility:
E. Integrated Marketing Communication (Promotion) Strategy
Overall IMC strategy, IMC objectives, and budget:
Consumer promotion elements
Advertising strategy:
Public relations/publicity strategy:
Personal selling strategy:
Consumer sales promotion (pull) strategy:
Trade (channel) promotion elements
Advertising strategy:
Public relations/publicity strategy:
Personal selling strategy:
Trade sales promotion (push) strategy:
VI. Marketing Implementation
A. Structural Issues
Describe the overall approach to implementing the marketing strategy.
Describe any changes to the firm’s structure needed to implement the marketing strategy (e.g., add/delete positions, change lines of authority, change reporting relationships).
Describe any necessary internal marketing activities in the following areas: employee training, employee buy-in and motivation to implement the marketing strategy, overcoming resistance to change, internal communication and promotion of the marketing strategy, and coordination with other functional areas.
B. Tactical Marketing Activities (be very specific—this lays out the details of the
marketing strategy and how it will be executed)
Specific Tactical Activities
Person/Department
Responsible
Required
Budget
Completion
Date
Product Activities
1.
2.
3.
Pricing Activities
1.
2.
3.
Distribution/Supply Chain Activities
1.
2.
3.
IMC (Promotion) Activities
1.
2.
3.
VII. Evaluation and Control (refer to Exhibit 9.5)
A. Formal Controls
Describe the types of input controls that must be in place before the marketing plan can be implemented. Examples include financial resources, capital expenditures, additional research and development, and additional human resources.
Describe the types of process controls that will be needed during the execution of the marketing plan. Examples include management training, management commitment to the plan and to employees, revised employee evaluation/compensation systems, enhanced employee authority, and internal communication activities.
Describe the types of output controls that will be used to measure marketing performance and compare it to stated marketing objectives during and after the execution of the marketing plan.
Overall performance standards (these will vary based on the goals and objectives of the marketing plan). Examples include dollar sales, sales volume, market share, share of customer, profitability, customer satisfaction, customer retention, or other customer-related metrics.
Product performance standards (these are optional and will vary based on the product strategy). Examples include product specifications, core product quality, supplemental product quality, experiential quality, new product innovation, branding, and positioning.
Price performance standards (these are optional and will vary based on the pricing strategy). Examples include revenue targets, supply/demand balance, price elasticity, yield management, or metrics based on specific price adjustments.
Distribution performance standards (these are optional and will vary based on the distribution strategy). Examples include distribution effectiveness/efficiency, supply chain integration, value (time, place, and possession utility), relationship maintenance (collaboration, conflict), outsourcing, or direct distribution performance.
IMC (promotion) performance standards (these are optional and will vary based on the IMC strategy). Examples include communication objectives; brand awareness, recognition, or recall; campaign reach, frequency, and impressions; purchase intentions; and public relations, sales, and sales promotion effectiveness.
B. Informal Controls
Describe issues related to employee self-control that can influence the implementation of the marketing strategy. Examples include employee satisfaction, employee commitment (to the firm and the marketing plan), and employee confidence in their skills. If any of these controls are lacking, how can they be enhanced to support the implementation of the marketing plan?
Describe issues related to employee social control that can influence the implementation of the marketing strategy. Examples include shared organizational values, workgroup relationships, and social or behavioral norms. If any of these controls are lacking, how can they be enhanced to support the implementation of the marketing plan?
Describe issues related to cultural control that can influence the implementation of the marketing strategy. Examples include organizational culture and organizational rituals. If any of these controls are lacking, how can they be enhanced to support the implementation of the marketing plan?
C. Marketing Audits (refer to Exhibit 9.6)
Explain how marketing activities will be monitored. What are the specific profit- and time-based measures that will be used to monitor marketing activities?
Describe the marketing audit to be performed, including the person(s) responsible for conducting the audit.
If it is determined that the marketing strategy does not meet expectations, what corrective actions might be taken to improve performance (overall or within any element of the marketing program)?
If the marketing plan, as currently designed, shows little likelihood of meeting the marketing objectives, which elements of the plan should be reconsidered and revised?
D. Implementation Schedule and Timeline (refer to Exhibit 9.7)
Month
________
________
________
Activities Week
1
2
3
4
1
2
3
4
1
2
3
4
Product Activities
Pricing Activities
Distribution Activities
IMC Activities
© 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A-1
Overview
> “What are our mission and goals?”
> “Who are our customers?”
> “What types of products do we offer?”
> “How can we provide superior customer service?”
These are some of the questions addressed by a marketing plan—a detailed
description of the resources and actions needed to achieve stated marketing
objectives. Chapter 2 discussed strategic planning—the process of anticipat-
ing events and market conditions and deciding how a firm can best achieve
its organizational objectives. Marketing planning encompasses all the
activities devoted to achieving marketing objectives, establishing a basis for
designing a marketing strategy. This appendix deals in depth with the
formal marketing plan, which is part of an organization’s overall business
plan. At the end of this appendix, you’ll see what an actual marketing plan
looks like. Each plan component for a hypothetical firm called Blue Sky
Clothing is presented.
Components of a Business plan
A company’s business plan is one of its most important documents. The business plan puts in
writing what all of the firm’s objectives are, how they will be met, how the business will obtain financ-
ing, and how much money the company expects to earn over a specified time period. Although busi-
ness plans vary in length and format, most contain at least some form of the following components:
• An executive summary briefly answers the who, what, when, where, how, and why questions for
the plan. Although the summary appears early in the plan, it typically is written last, after the
firm’s executives have worked out the details of all the other sections.
• A competitive analysis section focuses on the environment in which the marketing plan is to be
implemented. Although this section is more closely associated with the comprehensive business
plan, factors specifically influencing marketing are likely to be included here.
• The mission statement summarizes the organization’s purpose, vision, and overall goals. This
statement provides the foundation on which further planning is based.
• The overall business plan includes a series of component plans that present goals and strategies
for each functional area of the enterprise. They typically include the following:
> The marketing plan, which describes strategies for informing potential customers about
the goods and services offered by the firm as well as strategies for developing long-term
relationships.
Developing an Effective
Marketing Plan A p p e n d i x A
marketing plan
Detailed description of
the resources and actions
needed to achieve stated
marketing objectives.
strategic planning
Process of anticipating
events and market
conditions and deciding how
a firm can best achieve its
organizational objectives.
business plan Formal
document that outlines what
a company’s objectives are,
how they will be met, how
the business will obtain
financing, and how much
money the company expects
to earn.
75368_appA_ptg01_hr_A1-A12.indd 1 01/12/14 11:10 AM
A-2 Appendix A D eveloping an Ef fe c tive Marketing Plan
> The financing plan, which presents a realistic approach for securing needed funds and manag-
ing debt and cash flows.
> The production plan, which describes how the organization will develop its products in the most
efficient, cost-effective manner possible.
> The facilities plan, which describes the physical environment and equipment required to imple-
ment the production plan.
> The human resources plan, which estimates the firm’s employment needs and the skills neces-
sary to achieve organizational goals, including a comparison of current employees with the
needs of the firm; and which establishes processes for securing adequately trained personnel if a
gap exists between current employee skills and future needs.
This basic format encompasses the planning process used by nearly every successful organization.
Whether a company operates in the manufacturing, wholesaling, retailing, or service sector—
or a combination—the components described here are likely to appear in its overall business plan.
Regardless of the size or longevity of a company, a business plan is an essential tool for a firm’s own-
ers because it helps them focus on the key elements of their business. Even small firms just starting
out need a business plan to obtain financing. Figure A.1 shows the outline of a business plan for Blue
Sky Clothing.
Creating a
marketing plan
Keep in mind that a marketing plan should
be created in conjunction with the other ele-
ments of a firm’s business plan. In addition,
a marketing plan often draws from the busi-
ness plan, restating the executive summary,
competitive analysis, and mission statement
to give its readers an overall view of the firm.
The marketing plan is needed for various
reasons:
• To obtain financing, because banks and
most private investors require a detailed
business plan—including a market-
ing plan component—before they even
consider a loan application or a venture
capital investment
• To provide direction for the firm’s over-
all business and marketing strategies
• To support the development of
long- and short-term organizational
objectives
• To guide employees in achieving these
objectives
• To serve as a standard against which
the firm’s progress can be measured and
evaluated
In addition, the marketing plan is where a
firm puts into writing its commitment to
“A corporation is a living
organism; it has to continue to
shed its skin. Methods have to
change. Focus has to change.
Values have to change. The
sum total of those changes is
transformation.”
—Andy Grove
Co-founder and former CEO,
Intel Corporation
The Blue Sky Clothing Business Plan
I. Executive Summary
• Who, What, When, Where, How, and Why
II.
Table of Contents
III. Introduction
• Mission Statement
• Concept and Company
• Management Team
• Product
IV. Marketing Strategy
• Demographics
• Trends
• Market Penetration
• Potential Sales Revenue
V. Financing the Business
• Cash Flow Analysis
• Pro Forma Balance Sheet
• Income Statement
VI. Facilities Plan
• Physical Environment
• Equipment
VII. Human Resources Plan
• Employment Needs and Skills
• Current Employees
VIII. Résumés of Principals
Figure A.1
Outline of a Business
Plan
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Appendix A D eveloping an Ef fe c tive Marketing Plan A-3
customers and to building long-lasting relationships. After creating and implementing the plan,
marketers must reevaluate it periodically to gauge its success in moving the organization toward its
goals. If changes are needed, they should be made as soon as possible.
Formulating an overall marketing Strategy
Before writing a marketing plan, a firm’s marketers formulate an overall marketing strategy. A firm
may use a number of tools in marketing planning, all of which are described in Chapter 2. These
include business portfolio analysis, SWOT analysis, and the BCG matrix; executives may take
advantage of a strategic window, study Porter’s Five Forces model as it relates to their business, or
consider adopting a first- or second-mover strategy.
In addition to the planning strategies discussed in Chapter 2, marketers are also likely to
use spreadsheet analysis, which lays out a grid of columns and rows that organize numeri-
cal information in a standardized, easily understood format. Spreadsheet analysis helps plan-
ners answer various “what if ” questions related to the firm’s financing and operations. The
most popular spreadsheet software is Microsoft Excel. A spreadsheet analysis helps planners
anticipate marketing performance given specified sets of circumstances. For example, a spread-
sheet might project the outcomes of various pricing decisions for a new product, as shown in
Figure A.2.
Once general planning strategies are determined, marketers begin to flesh out the details
of the marketing strategy. These include identifying the target market, studying the marketing
environment, and creating a marketing mix. When marketers have identified the target market, they
can develop the optimal marketing mix to reach their potential customers:
• Product strategy. Which goods and services should the company offer to meet its customers’
needs?
• Distribution strategy. Through which channel(s) and physical facilities will the firm distribute
its products?
• Promotional strategy. What mix of advertising, sales promotion, and personal selling activities
will the firm use to reach its customers initially and then develop long-term relationships?
• Pricing strategy. At what level should the company set its prices?
“A strategy delineates a terri-
tory in which a company seeks
to be unique.”
—Michael Porter
American management
theorist and writer
spreadsheet analysis
Grid that organizes
numerical information
in a standardized, easily
understood format.
Manufacturing
$100,00
0
$100,000
$100,000
Marketing
$120,000
$230,000
$120,000
R & D
$90,000
$90,000
$90,000
Total
$310,000
$420,000
$310,000
Fixed Costs Per-Unit
Variable
Cost
$5
$5
$4
Sales
Price
$10
$10
$9
Break-Even
Point
$62,000
$84,000
$62,000
Figure A.2
How Spreadsheet
Analysis Works
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A-4 Appendix A D eveloping an Ef fe c tive Marketing Plan
the executive Summary, competitive analySiS,
and miSSion Statement
Because these three elements of the business plan often reappear in the marketing plan, it is use-
ful to describe them here. Recall that the executive summary answers the who, what, when, where,
how, and why questions for the business. In the early days of Google, the executive summary of the
company’s business plan included references to its strategic planning process for its search services,
which involved “developing the perfect search engine … [one that] understands exactly what you
mean and gives you back exactly what you want.”1 The summary also answered questions such as
who was involved (key people and organizations), what length of time the plan represented, and how
the goals would be met.
The competitive analysis focuses on the environment in which the marketing plan is to be
implemented. Trenton, New Jersey–based TerraCycle manufactures a wide variety of products, all
made from recycled materials. Believing the green movement will eventually hold sway in consumer
products, TerraCycle’s business goal is to become the leading eco-friendly organic brand in each of
the product categories in which it competes. It doesn’t attempt to overpower the category leader;
instead, it aims to beat other eco-friendly competitors. For example, TerraCycle differentiates itself
in the collection and reuse of nonrecyclable waste. Recently it even devised a process for recycling a
commodity widely considered to be nonrecyclable: cigarette butts.2
The mission statement puts into words an organization’s overall purpose and reason for being.
According to Nintendo’s corporate mission, the company is “strongly committed to producing and
marketing the best products and support services available.” Not only does Nintendo strive to manu-
facture the highest-quality video products, but it also attempts “to treat every customer with atten-
tion, consideration and respect.” Nintendo is similarly committed to its employees and believes in
treating them “with the same consideration and respect that we, as a company, show our customers.”3
deScription oF the company
A company description is included near the beginning of the marketing plan, typically following the
executive summary and before the mission statement. The company description may include a brief
history or background of the firm, the types of products it offers or plans to introduce, and recent
successes or achievements. In short, it consists of a few paragraphs containing the kind of informa-
tion often found on the home page of a company’s website.
Statement oF goalS and core competencieS
The plan then includes a statement of the firm’s goals and its core competencies—the things it does
extremely well or better than anyone else. The goals should be specific and measurable and may be
divided into financial and nonfinancial aims. A financial goal might be to add 75 new franchises in
the next 12 months or to reach $200 million in revenues. A nonfinancial goal might be to enter the
European market or to add a new product line every other year.
Core competencies make a firm stand out from everyone else in the marketplace. Costco’s core
competency is offering a wide variety of goods at low prices, including unexpected bargains like
luxury-brand watches and Dom Perignon champagne. Costco leadership regards its workforce as
a significant differentiator in the company’s success and, for that reason, pays above-market wages.
The average Costco hourly wage is nearly $21—35 percent higher than the highest minimum wage
in the United States.4
Small businesses often begin with a single core competency and build their business and repu-
tation on it. It is important for a new firm to identify its core competency in the marketing plan so
investors or banks understand why they should lend the firm money to get started or to grow to the
next stage. As a college student, David Kim found he enjoyed tutoring children. When he discov-
ered a real demand for skilled tutoring, he decided to launch a tutoring business, which he named
C2 Education. Because C2’s core competency is helping students to excel, employees are hired and
trained according to rigorous standards. Today, C2 Education serves students from elementary
through high school, operating in 110 locations in the United States and Canada.5
“Failing to plan is planning
to fail.”
—Alan Lakein
American time management
expert; author of How to Get
Control of Your Time and
Your Life
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Appendix A D eveloping an Ef fe c tive Marketing Plan A-5
outline oF the marketing environment (Situation analySiS)
Every successful marketing plan considers the marketing environment—the competitive, economic,
political–legal, technological, and social–cultural factors that affect the way a firm formulates and
implements its marketing strategy. Marketing plans may address these issues in different ways, but
the goal is to present information that describes the company’s position or situation within the
marketing environment. J. Crew, for instance, has a well-known brand name and a CEO with an
impressive track record, Mickey Drexler, who previously headed The Gap. The retail environment
for stores such as J. Crew is highly competitive. Merchandise that doesn’t appeal to enough custom-
ers ends up on a clearance rack and hurts the bottom line. According to Drexler, the key to J. Crew’s
success is that it sells merchandise that cannot be sold elsewhere. Drexler pushes his buyers to “out-
product” their competitors.6 A marketing plan for J. Crew would include an evaluation of competing
stores, such as The Gap and Urban Outfitters; any technological advances that would affect factors
such as merchandise distribution or inventory; social–cultural issues such as fashion preferences and
spending habits of customers; and economic issues affecting a pricing strategy.
One such method for outlining the marketing environment in the marketing plan is to include
a SWOT analysis, described in Chapter 2. SWOT analysis identifies the firm’s strengths, weak-
nesses, opportunities, and threats within the marketing environment. A SWOT analysis for J. Crew
might include strengths such as its corporate leadership, brand name, and upscale target market.
Weaknesses might include the risks inherent in the business of correctly spotting fashion trends.
A major opportunity lies in the fact that J. Crew can expand almost anywhere. For example, after
J. Crew acquired Madewell, a retailer that sells hip, casual clothes to an upscale audience, it expanded
the chain to more than 75 stores and launched an e-commerce site. Threats for J. Crew could include
competition from other trendy stores, sudden changes in customer preferences, and financial crises
that affect spending. A SWOT analysis can be presented in chart format so that it is easy to read as
part of the marketing plan. The sample marketing plan in this appendix includes a SWOT analysis
for Blue Sky Clothing.
the target market and marketing mix
The marketing plan identifies the target market for the firm’s products. The Cute Overload web-
site (www.cuteoverload.com) contains photos and videos of animals that visitors can share and about
which they can post comments. But the site also offers a page-a-day desk calendar of the same name
featuring images of puppies, kittens, birds, and chipmunks with humorous captions. Cute Overload
targets women ages 18 to 34 who need a laugh and a brief escape from the real world. The calendars
are also offered for sale on Amazon.com, and the retailer’s inventory recently sold out in one day,
which astonished the developer.7 Weight Watchers has long regarded women as its primary target
market and, in fact, females currently make up 90 percent of its clientele. However, as the company
saw increasing interest from men, marketers for Weight Watchers began to tap into that segment,
launching a men-only website and a $10 million advertising campaign directed solely at men.8
The marketing plan also discusses the marketing mix the firm has selected for its products.
Hollywood studios are known for implementing lavish strategies for promoting their films. Not only
did Walt Disney Studios use traditional means to launch its recent movie, Frozen, but it also ran a
Disney Movie Rewards promotion. Under the promotion, moviegoers could score free admission to
the movie by buying selected Disney DVDs or Blu-Rays and registering a “magic code” online at
DisneyMovieRewards.com.9
Budget, Schedule, and monitoring
Every marketing plan requires a budget, a time schedule for implementation, and a system for moni-
toring the plan’s success or failure. At age 21, entrepreneur Joe Cirulli of Gainesville, Florida, made
a to-do list of ten life goals, which included “Own a health club” and “Make it respected in the
community.” By age 33, Cirulli had achieved all ten of his life goals, including the opening of his
Gainesville Health & Fitness Center. As Cirulli’s business grew, however, he discovered a larger
mission: to make Gainesville the healthiest community in America. Today, Gainesville is the first
and only city to win the Gold Well City award from the Wellness Council of America, and Cirulli’s
75368_appA_ptg01_hr_A1-A12.indd 5 01/12/14 11:10 AM
A-6 Appendix A D eveloping an Ef fe c tive Marketing Plan
fitness center is widely regarded as one of the best in the industry. Whether or not he realized it at the
time, Cirulli’s life and business plan at age 21 had the makings of a marketing plan, with goals and
budgets, a timeline, and measurements of progress—a formula for business success.10
Most long-range marketing plans encompass a two- to five-year period, although companies
that do business in industries such as auto manufacturing, pharmaceuticals, or lumber may extend
their marketing plans further into the future, because it typically takes longer to develop these prod-
ucts. However, marketers in most industries will have difficulty making estimates and predictions
beyond five years because of the many uncertainties in the marketplace. Firms also may opt to
develop short-term plans to cover marketing activities for a single year.
The marketing plan, whether it is long term or short term, predicts how long it will take to
achieve the goals it sets out. A goal may be opening a certain number of new stores, increasing mar-
ket share, or achieving an expansion of the product line. Finally, the marketing program is moni-
tored and evaluated for its performance. Monthly, quarterly, and annual sales targets are usually
tracked; the efficiency with which certain tasks are completed is determined; customer satisfaction is
measured; and so forth. All of these factors contribute to the overall review of the program.
At some point, a firm may implement an exit strategy—a plan for the firm to leave the mar-
ket. A common way for a large company to do this is to sell off a business unit. A number of these
strategies have been implemented recently. For years, Sony Corporation’s PC business struggled in
the highly competitive industry before the company decided to exit and sharpen its focus on mobile
devices, including smartphones. Sony sold its Vaio brand to Japan Industrial Partners, a Tokyo–
based investment firm.11
Sample marketing plan
The following pages contain an annotated sample marketing plan for Blue Sky Clothing. At some
point in your career, you will likely be involved in writing—or at least contributing to—a market-
ing plan. And you’ll certainly read many marketing plans throughout your business career. Keep in
mind that the plan for Blue Sky is a single example; no one format is used by all companies. Also,
the Blue Sky plan has been somewhat condensed to make it easier to annotate and illustrate the most
vital features. The important point to remember is that the marketing plan is a document designed
to present concise, cohesive information about a company’s marketing objectives to managers, lend-
ing institutions, and others involved in creating and carrying out the firm’s overall business strategy.
“In marketing I have seen only
one strategy that can’t miss—
and that is to market to your
best customers first, your best
prospects second, and the rest
of the world last.”
—John Romero
American video game
designer, programmer, and
developer
Five-Year Marketing Plan
Blue Sky Clothing, Inc.
Table of Contents
executive Summary
This five-year marketing plan for Blue Sky Clothing has been created by its two founders to
secure additional funding for growth and to inform employees of the company’s current status
and direction. Although Blue Sky was launched only three years ago, the firm has experienced
greater-than-anticipated demand for its products, and research has shown that the target mar-
ket of sports-minded consumers and sports retailers would like to buy more casual clothing
than Blue Sky currently offers. As a result, Blue Sky wants to extend its current product line as
well as add new product lines. In addition, the firm plans to explore opportunities for online
sales. The marketing environment has been very receptive to the firm’s high-quality goods—
casual clothing in trendy colors with logos and slogans that reflect the interests of outdoor
enthusiasts around the country. Over the next five years, Blue Sky can increase its distribution,
offer new products, and win new customers.
The executive
summary outlines
the who, what, where,
when, how, and why
of the marketing
plan. Blue Sky is only
three years old and
is successful enough
that it now needs a
formal marketing plan
to obtain additional
financing from a bank
or private investors
for expansion and
the launch of new
products.
75368_appA_ptg01_hr_A1-A12.indd 6 01/12/14 11:10 AM
Appendix A D eveloping an Ef fe c tive Marketing Plan A-7
company deScription
Blue Sky Clothing was founded three years ago by entrepreneurs Lucy Neuman and
Nick Russell. Neuman has an undergraduate degree in marketing and worked for several
years in the retail clothing industry. Russell operated Go West!—an adventure business
that arranged group trips to locations in Wyoming, Montana, and Idaho—which he
sold to a partner. Neuman and Russell, who have been friends since college, decided
to develop and market a line of clothing with a unique yet universal appeal to outdoor
enthusiasts.
Blue Sky Clothing reflects Neuman’s and Russell’s passion for the outdoors. The com-
pany’s original cotton T-shirts, baseball caps, and fleece jackets and vests bear logos of differ-
ent sports, such as kayaking, mountain climbing, bicycling, skating, surfing, and horseback
riding. But every item shows off the company’s slogan: “Go Play Outside.” Blue Sky sells
clothing for both men and women, in the hottest colors with the coolest names—sunrise
pink, sunset red, twilight purple, desert rose, cactus green, ocean blue, mountaintop white,
and river rock gray.
Blue Sky attire is currently carried by small retail stores that specialize in outdoor cloth-
ing and gear. Most of these stores are concentrated in northern New England, California, the
Northwest, and the South. The high quality, trendy colors, and unique message of the clothing
have gained Blue Sky a following among consumers between ages 18 and 39. Sales have tripled
in the last year alone, and Blue Sky is currently working to expand its manufacturing capabilities.
Blue Sky is also committed to giving back to the community by contributing to local
conservation programs. Ultimately, the company would like to develop and fund its own envi-
ronmental programs. This plan will outline how Blue Sky intends to introduce new products,
expand its distribution, enter new markets, and give back to the community.
Blue Sky’S miSSion and goalS
Blue Sky’s mission is to be a leading producer and marketer of personalized, casual clothing for
consumers who love the outdoors. Blue Sky wants to inspire people to get outdoors more often
and enjoy family and friends while doing so. In addition, Blue Sky strives to design programs
for preserving the natural environment.
During the next five years, Blue Sky seeks to achieve the following financial and
nonfinancial goals:
Financial Goals
1. Obtain financing to expand manufacturing capabilities, increase distribution, and
introduce two new product lines
2. Increase revenues by at least 50 percent each year
3. Donate at least $25,000 a year to conservation organizations
Nonfinancial Goals
4. Introduce two new product lines: customized logo clothing and lightweight luggage
5. Enter new geographic markets, including Southwest and Mid-Atlantic regions
6. Develop a successful Internet site, while maintaining strong relationships with retailers
7. Develop its own conservation program aimed at helping communities raise money to
purchase open space
core competencieS
Blue Sky seeks to use its core competencies to achieve a sustainable competitive advantage,
the value of which its competitors cannot match. Already Blue Sky has developed core
The company
description
summarizes the
history of Blue Sky—
how it was founded
and by whom, what
its products are, and
why they are unique.
It begins to “sell” the
reader on the growth
possibilities for Blue
Sky.
It is important
to state a firm’s
mission and goals,
including financial
and nonfinancial
goals. Blue Sky’s
goals include growth
and profits for the
company as well
as the ability to
contribute to society
through conservation
programs.
This section reminds
employees and those
outside the company
(such as potential
lenders) exactly what
Blue Sky does so well
and how it plans to
achieve a sustainable
competitive
advantage over
rivals. Note here and
throughout the plan:
Blue Sky focuses on
relationships.
75368_appA_ptg01_hr_A1-A12.indd 7 01/12/14 11:10 AM
A-8 Appendix A D eveloping an Ef fe c tive Marketing Plan
competencies in (1) offering a high-quality, branded product whose image is recognizable
among consumers; (2) creating a sense of community among consumers who purchase the
products; and (3) developing a reputation among retailers as a reliable manufacturer that deliv-
ers orders on schedule. The firm intends to build on these competencies through marketing
efforts that increase the number of products offered as well as distribution outlets.
By forming strong relationships with consumers, retailers, and suppliers of fabric and
other goods and services, Blue Sky believes it can create a sustainable competitive advantage
over its rivals. No other clothing company can say to its customers with as much conviction,
“Go Play Outside”!
Situation analySiS
The marketing environment for Blue Sky represents overwhelming opportunities. It also con-
tains some challenges the firm believes it can meet successfully. Figure A illustrates a SWOT
analysis of the company conducted by its marketers to highlight Blue Sky’s strengths, weak-
nesses, opportunities, and threats.
The SWOT analysis presents a thumbnail sketch of the company’s position in the market-
place. In just three years, Blue Sky has built some impressive strengths while looking forward
to new opportunities. Its dedicated founders, the growing number of brand-loyal customers,
and sound financial management place the company in a good position to grow. However,
as Blue Sky considers expansion of its product line and entry into new markets, the firm will
have to guard against marketing myopia (the failure to recognize the scope of its business)
and quality slippage. As the company finalizes plans for new products and expanded Internet
sales, its management will also have to guard against competitors who attempt to duplicate
The situation analysis
provides an outline
of the marketing
environment. A
SWOT analysis helps
marketers and others
identify clearly a
firm’s strengths,
weaknesses,
opportunities, and
threats. Again,
relationships are
a focus. Blue Sky
has also conducted
research on the
outdoor clothing
market, competitors,
and consumers to
determine how best
to attract and keep
customers.
Strengths
Blue Sky’s dedicated founders
understand the target market
and product.
Blue Sky has achieved
distribution in several markets
with quick acceptance.
The firm has very little debt,
with great potential for growth.
Blue Sky works with a single
manufacturer, ensuring
maximum quality control.
Weaknesses
Blue Sky’s founders may lose
sight of the potential scope of
their business.
A limited number of consumers
around the country are aware of
the Blue Sky brand.
The firm has limited cash flow.
Blue Sky relies on a single
manufacturer, which limits
production capacity if the firm
wants to expand.
Threats
Consumers may tire of the concept;
the firm needs to keep it fresh.
Large competitors such as REI,
Timberland, and Patagonia may soak
up consumer dollars or launch a
similar product line.
Clothing sales nationwide have
generally been flat the past few years.
Relationships with retailers might
deteriorate if they believe they face
internal competition in the form of
Internet sales.
Opportunities
Blue Sky’s loyal consumers are
likely to buy new products.
Gaps exist in the market that
can be filled with new products,
such as customized clothing
items and luggage.
Blue Sky has a chance to
expand across the United
States into new markets.
The firm can reach more
consumers via its website.
CO
NS
TR
AI
NT
S
ProblemsLeverage
VULNERABILITIES
Figure A
SWOT Analysis for Blue
Sky Clothing, Inc.
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Appendix A D eveloping an Ef fe c tive Marketing Plan A-9
the products. However, building strong relationships with consumers, retailers, and suppliers
should help thwart competitors.
competitorS in the outdoor clothing market
The outdoor retail sales industry sells about $5 billion worth of goods annually, ranging from
clothing to equipment. The outdoor apparel market has many entries. L.L. Bean, Dick’s
Sporting Goods, REI, Timberland, Bass Pro Shops, Cabela’s, The North Face, and Patagonia
are among the most recognizable companies offering these products. Smaller competitors such
as Title Nine, which offers athletic clothing for women, and Ragged Mountain, which sells
fleece clothing for skiers and hikers, also capture some of the market. The outlook for the
industry in general—and Blue Sky in particular—is positive for several reasons. First, con-
sumers are participating in and investing in recreational activities near their homes. Second,
consumers are looking for ways to enjoy their leisure time with friends and family without over-
spending. Third, consumers tend to be advancing in their careers and are able to spend more.
While all of the companies listed earlier can be considered competitors, most of them sell
performance apparel in high-tech manufactured fabrics. With the exception of the fleece vests
and jackets, Blue Sky’s clothing is made strictly of the highest-quality cotton, so it may be worn
both on the hiking trail and around town. Finally, Blue Sky products are offered at moder-
ate prices, making them affordable in multiple quantities. For instance, a Blue Sky T-shirt
sells for $15.99, compared with a competing high-performance T-shirt that sells for $29.99.
Consumers can easily replace a set of shirts from one season to the next, picking up the newest
colors, without agonizing over the purchase.
A survey conducted by Blue Sky revealed that a high percentage of responding con-
sumers prefer to replace their casual and active wear more often than other clothing, so they
are attracted by the moderate pricing of Blue Sky products. In addition, as the trend toward
health-conscious activities and concerns about the natural environment continue, consum-
ers increasingly relate to the Blue Sky philosophy as well as the firm’s future contributions to
socially responsible programs.
the target market
The target market for Blue Sky products is active consumers between ages 18 and 39—people
who like hiking, rock climbing, bicycling, surfing, figure skating, in-line skating, horseback
riding, snowboarding, skiing, kayaking, and other such activities. In short, they like to “Go
Play Outside.” They might not be experts at the sports they engage in, but they enjoy them-
selves outdoors.
These active consumers represent a demographic group of well-educated and successful
individuals; they are single or married and raising families. Household incomes generally range
between $60,000 and $120,000 annually. Despite their comfortable incomes, these consumers
are price conscious and consistently seek value in their purchases. Regardless of their age (whether
they fall at the upper or lower end of the target range), they lead active lifestyles. They are some-
what status oriented but not overly so. They like to be associated with high-quality products but
are not willing to pay a premium price for a certain brand. Current Blue Sky customers tend to
live in northern New England, the South, California, and the Northwest. However, one future
goal is to target consumers in the Mid-Atlantic states and Southwest as well.
the marketing mix
The following discussion outlines some of the details of the proposed marketing mix for Blue
Sky products.
Blue Sky has identified
its customers as active
people between ages
18 and 39. However,
that doesn’t mean
someone who is older
or prefers to read
about the outdoors
isn’t a potential
customer as well. By
pinpointing where
existing customers
live, Blue Sky can plan
for growth into new
outlets.
The strongest part
of the marketing mix
for Blue Sky involves
sales promotions,
public relations,
and nontraditional
marketing strategies,
including attending
outdoor events and
organizing activities
such as day hikes and
bike rides.
75368_appA_ptg01_hr_A1-A12.indd 9 01/12/14 11:10 AM
A-10 Appendix A D eveloping an Ef fe c tive Marketing Plan
product Strategy
Blue Sky currently offers a line of high-quality outdoor apparel items, including cotton
T-shirts, caps, and fleece vests and jackets. All bear the company logo and slogan, “Go Play
Outside.” The firm has researched the most popular colors for its items and given them names
that consumers enjoy—sunset red, sunrise pink, cactus green, desert rose, and river rock gray,
among others. Over the next five years, Blue Sky plans to expand the product line to include
customized clothing items. Customers may select a logo that represents their sport—say, rock
climbing. Then they can add a slogan to match the logo, such as “Get Over It.” A cap with a
bicyclist might bear the slogan, “Take a Ride.” At the beginning, there would be ten new logos
and five new slogans; more would be added later. Eventually, some slogans and logos would be
retired and new ones introduced. This strategy will keep the concept fresh and prevent it from
becoming diluted with too many variations.
The second way in which Blue Sky plans to expand its product line is to offer lightweight
luggage—two sizes of duffel bags, two sizes of tote bags, and a daypack. These items would
also come in trendy and basic colors, with a choice of logos and slogans. In addition, every
product would bear the Blue Sky logo.
distribution Strategy
Currently, Blue Sky is marketed through regional and local specialty shops scattered along
the California coast, into the Northwest, across the South, and in northern New England. So
far, Blue Sky has not been distributed through national sporting goods and apparel chains.
Climate and season tend to dictate the sales at specialty shops, which sell more T-shirts and
caps during warm weather and more f leece vests and jackets during colder months. Blue
Sky obtains much of its information about overall industry trends in different geographic
areas and at different types of retail outlets from its trade organization, Outdoor Industry
Association.
Over the next three years, Blue Sky seeks to expand distribution to retail specialty shops
throughout the nation, focusing next on the Southwest and Mid-Atlantic regions. The firm
has not yet determined whether it would be beneficial to sell through a major national chain,
as these outlets could be considered competitors.
In addition, Blue Sky plans to expand online sales by offering the customized product
line via the Internet only, thus distinguishing between Internet offerings and specialty shop
offerings. Eventually, the firm may be able to place Internet kiosks at some of the more profit-
able store outlets so consumers could order customized products from the stores. Regardless of
its expansion plans, Blue Sky fully intends to monitor and maintain strong relationships with
distribution channel members.
promotion Strategy
Blue Sky communicates with consumers and retailers about its products in various ways.
Information about Blue Sky—the company as well as its products—is available via the Internet,
through social media and direct mailings, and in person. The firm’s promotional efforts also
seek to differentiate its products from those of its competitors.
The company relies on personal contact with retailers to establish the products in their
stores. This contact, whether in person or by phone, helps convey the Blue Sky message, demon-
strate the products’ unique qualities, and build relationships. Blue Sky sales representatives visit
each store two or three times a year and offer in-store training on product features for new retail-
ers or for those who want a refresher session. As distribution expands, Blue Sky will adjust to
meet greater demand by increasing sales staff to make sure its stores are visited more frequently.
Sales promotions and public relations currently make up the bulk of Blue Sky’s pro-
motional strategy. Blue Sky staff works with retailers to offer short-term sales promotions
tied to events and contests that are communicated via social media sites such as Twitter and
Facebook. In addition, Nick Russell is currently working with several trip outfitters to offer
75368_appA_ptg01_hr_A1-A12.indd 10 01/12/14 11:10 AM
Appendix A D eveloping an Ef fe c tive Marketing Plan A-11
Blue Sky items on a promotional basis. Because Blue Sky also engages in cause marketing
through its contribution to environmental programs, good public relations have followed.
Nontraditional marketing methods that require little cash and a lot of creativity also lend
themselves perfectly to Blue Sky. Because Blue Sky is a small, flexible organization, the firm
can easily implement ideas, such as distributing free water, stickers, and discount coupons at
outdoor sporting events. During the next year, the company plans to engage in the following
marketing efforts:
• Create a Blue Sky Tour, in which several employees take turns driving around the coun-
try to campgrounds to distribute promotional items, such as Blue Sky stickers and dis-
count coupons.
• Attend canoe and kayak races, bicycling events, and rock-climbing competitions with
our Blue Sky truck to distribute free water, stickers, and discount coupons for Blue Sky
shirts or hats.
• Organize Blue Sky hikes departing from participating retailers.
• Hold a Blue Sky design contest on Facebook, selecting a winning slogan and logo to be
added to the customized line.
pricing Strategy
As discussed earlier in this plan, Blue Sky products are priced with the competition in mind. The
firm is not concerned with setting high prices to signal luxury or prestige, nor is it attempting
to achieve the goals of offsetting low prices by selling large quantities of products. Instead, value
pricing is practiced so customers feel comfortable purchasing new clothing to replace the old, even
if it is just because they like the new colors. The pricing strategy also makes Blue Sky products
good gifts—for birthdays, graduations, or “just because.” The customized clothing will sell for
$2 to $4 more than the regular Blue Sky logo clothing. The luggage will be priced competitively.
Budget, Schedule, and monitoring
Though its history is short, Blue Sky has enjoyed a steady increase in sales since its introduc-
tion three years ago. Figure B shows these three years, plus projected sales for the next three
years, including the introduction of the two new product lines. Additional financial data are
included in the overall business plan for the company.
An actual plan will
include more specific
financial details, which
will be folded into the
overall business plan.
For more information,
see Appendix B,
“Financial Analysis
in Marketing.” In
addition, Blue Sky
states that at this
stage, it does not
have plans to exit the
market by merging
with another firm or
making a public stock
offering.
0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
201920182017*201720162015
$3.2 million
$2.0 million
$1.2 million
$750,000
$250,000
$140,000
*Projected sales
Figure B
Annual Sales for Blue Sky
Clothing: 2015–2019
75368_appA_ptg01_hr_A1-A12.indd 11 01/12/14 11:10 AM
A-12 Appendix A D eveloping an Ef fe c tive Marketing Plan
The timeline for expansion of outlets and introduction of the two new product lines is
shown in Figure C. The implementation of each of these tasks will be monitored closely and
evaluated for its performance.
Blue Sky anticipates continuing operations into the foreseeable future, with no plans to
exit this market. Instead, as discussed throughout this plan, the firm plans to increase its pres-
ence in the market. At present, there are no plans to merge with another company or to make
a public stock offering.
YEAR 1
New outlets added: 20
Customized items: 5 slogans/10 logos
Luggage items: 0
YEAR 2
New outlets added: 50
Customized items: 10 slogans/10 logos
Luggage items: 2 (duffels and totes)
YEAR 3
New outlets added: 100
Customized items: 5 slogans/5 logos
Luggage items: 1 (backpack)
Figure C
Timeline for First Three
Years of Marketing Plan
n o t e s
1. Company website, “Our Products and Services,” www.google.com, accessed
April 1, 2014.
2. Company website, www.terracycle.net, accessed April 1, 2014; “TerraCycle to
Recycle Cigarette Waste,” Consumer Goods, accessed April 1, 2014, http://
consumergoods.edge.com.
3. Company website, www.nintendo.com, accessed April 1, 2014.
4. Clare O’Connor, “Red State Voters Back Minimum Wage Hike As San Francisco
Approves $15,” Forbes, accessed November 7, 2014, www.forbes.com; Aaron Taube,
“Why Costco Pays Its Retail Employees $20 an Hour,” Business Insider, accessed
November 7, 2014, www.businessinsider.com.
5. Company website, http://c2educate.com, accessed November 7, 2014.
6. Leslie Price, “Mickey Drexler Vows J. Crew Will Be Less Pricey This Spring,”
Racked, accessed April 2, 2014, http://racked.com.
7. Company website, http://cuteoverload.com, accessed April 2, 2014.
8. E. J. Schultz, “Weight Watchers Picks a New Target: Men,” Crain’s New York
Business, accessed April 2, 2014, www.crainsnewyork.com.
9. Eric Faulkner, “Want to See ‘Frozen’ for Free? Check Out This Disney Movie
Reward Promotion,” Rotoscopers.com, accessed April 2, 2014, www.rotoscopers
.com.
10. Company website, http://www.ghfc.com, accessed April 2, 2014.
11. Tim Hornyak, “Sayonara, Vaio: Sony Sells off PC Business to Focus on Mobile,” PC
World, accessed April 6, 2014, www.pcworld.com.
75368_appA_ptg01_hr_A1-A12.indd 12 01/12/14 11:10 AM
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2014-12-01T11:10:56+0530
Preflight Ticket Signature
Rock That Burger
Marketing Plan
Angela Alarcon
MAR 3803
Miami Dade College
December 13th , 2020
Prof. Arjune Singh
TABLE OF CONTENTS
I. Excecutive Summary
II. Situation Analysis
III. SWOT Analysis
IV. Marketing Goals and Objectives
V. Marketing Strategy
VI. Marketing Implementation
VII. Evaluation and Control
VIII. References
I.
EXECUTTIVE SUMMARY
Rock that burger is family owned and operated. It all started with the Yellow Submarine Food Truck back in 2009. We wanted to bring to the City of Miami the food truck trend well known and accepted in other cities of the U.S. In 2012 , we decided to open our first brick and mortar with a fresh new look and a name that will represent what we wanted to offer, a place where you can eat the best burgers and hotdogs while enjoying a Rock and Roll atmosphere . We changed the name to Rock That Burger because had to create a new concept due to restrictions forced by the landlord about the Yellow Submarine name, the shopping center already had a Subway restaurant and we were not able to sell our subs anymore. As a result of this enforced restriction, we had to star from zero and create a new customer base.
This marketing plan has been developed with the purpose of positioning Rock That Burger as the prime burger restaurant in the Kendall area and the city of Miami, Florida. It will also provide the information necessary to understand who our target marker is, what their specific needs are, and how we can satisfy those needs.
Managing a successful quick-service restaurant requires paying complete attention to its internal environment. Customer traffic, cost control and profitability concerns are part of the internal environment at Rock that Burger.
Constant changes in preference involving what consumers want to eat present serious challenges for our business. Through market demographics, we can have a better understanding of the identifying characteristics of our current and potential customers.
The fast food industry was performing well until 2019, in 2020 it has faced many challenges due to the Covid-19 (coronavirus pandemic). This situation has abruptly put a halt on everything including closure of restaurants and disrupted supply chains. Rock That Burger as a quick service restaurant is adapting to this changed scenario. We are focusing on delivery and take-out to cater to the needs of our customers. We have concentrated in the use of digital technology to create an online order option through our POS System provider to help us sustain demand and sales during the pandemic and after.
II.
SITUATION ANALYSIS
Rock That Burger is on its eight year of operation. The restaurant has been well received, and marketing strategy is now crucial for the continued success and future profitability. We did not have a marketing plan when we first opened the restaurant and we consider it has been long overdue to implement one. In order to grow as a business and be able to open new stores in the city, we need to attract new customers so we can generate more sales.
At Rock That Burger we offer a variety of specialty burgers and hot dogs. Our basic market need is to offer individuals, families and take-out customers fresh, creative burgers, hot dogs and side dishes. We use premium quality meats and cheeses, and the freshest vegetables.
The burger restaurant industry has performed relatively well over the past five years, with the employment rate falling to the record lows, and per capita income increasing, it is assumed that customers will spend more money to eat away from home. The industry has experienced increased competition from the broader food service market; nevertheless, burger restaurants still represent the largest segment of the market. Economic slowdowns caused by the Covid-19 (coronavirus pandemic) have reversed the course of the industry and decreased demand drastically. It is of utmost importance to put in practice a marketing plan to create more business opportunities during this difficult economic time.
A.
Internal Environment
These are a few factors that constitute the internal environment of our business:
· Staffing and retention difficulties – Steady employee turnover in restaurants is an issue that most restaurant business owner face. Teens and adults are difficult to retain in an industry with long ours, low pay salaries, and unglamorous conditions.
· Labor costs – One of the challenges in quick-serve restaurant management is running a profitable operation. Rising labor costs leads to a low profit margin.
· Our limited menu offerings provide few options for modifying the menu.
· Because we are a quick-service restaurant, our prices must adjust to those of the industry. This means we must operate with narrow profit margins, and it is crucial that our management team controls food and labor costs.
B.
Customer Environment
The profile for Rock That Burger’s customer environment consists of the following geographic, demographic and behavior factors:
Geographics
· Our immediate geographic target is the Kendall area in Miami, FL with a population of approximately 75,000 people.
· Residents within a 5-mile geographic who want to eat good burgers and hot dogs.
Demographics
Rock That Burger is associated with using the best quality ingredients and home-made recipes and providing exceptional customer service. We capture the attention for burger seekers of all ages.
· Individuals and families
· Ages 15 and up
· Millennials and Gen Z
· Professionals working close to the location
· College students
· People who tend to eat out several times a week
· People who tend to frequent higher quality burger joints
Consumer Behavior Factors
Taking into consideration consumer behavior is essential when marketing Rock That Burger as consumers make buying decisions daily.
· Cultural Factor – We are located in the city of Miami with the highest Hispanic population in the country and even though we are targeted as an All American burger restaurant it is important that we offer the Hispanic community in Kendall a little bit of the Latin flavor.
· Social Factor – Consumers are highly influenced by members of their families. Kids often influence the buying decisions of their parents; we target these types of consumers by offering a kid’s menu.
· Personal Factor – Customers who enjoy quality meals and outstanding customer services. Customers value the appearance and presentation of their food. For businesspeople, they prefer things that are done fast and are less time consuming.
· Psychological Factor – Consumers take into consideration health concerns regarding fast foods.
Market Needs – What Consumers Want
Rock That Burger provides its customers with a wide selection of high-quality specialty burgers and hot-dogs. We seek to fulfill the following factors that are important to our customers:
· A wide choice of burgers, hot-dogs and side dishes.
· Customers want access to our restaurant with minimal wait and have the option of dining in or take-out.
· Customers look for excellent customer service.
· Products that are competitively priced relative to other burger restaurants.
Market Trends
Nowadays, the restaurant guests are more sophisticated in several different ways. These are the market trends that apply to Rock That Burger:
· There is an increase in the preference for high-quality ingredients, consumers are learning to appreciate quality over quantity.
· Presentation is an element of the culinary experience that is becoming more common. Even for a casual burger restaurant, customers are learning to appreciate this aspect of the restaurant industry.
· Americans are becoming more conscious of their health, and customers are requesting more healthy options when they opt to eat out.
· Consumers look for a large selection of food items, avoiding restaurants with a limited menu.
· 46% of consumers want more chicken burgers, with 42% wanting more turkey burgers. We need to expand our meat variety and vegetarian options for those who are not beef eaters.
C.
External Environment
There are many external factors that influence fast food or quick service restaurants including the following:
· Competition – We face national and local competition. Our national competitors include Burger King, McDonalds, Shake Shack, Five Guys, among others. Our local competitors include Latin house, Bocas Grill, Miller’s Ale House and more. Direct competition with our national competitors is difficult because they offer cheap menu items. Regarding our local competitors, we are the only burger restaurant in the Kendall area that offers a wide variety of specialty burger with the freshest ingredients.
· Legal and Regulatory Issues – The attitude of the government towards small businesses directly affects our performance as a restaurant. There are regulations related to wages, hygiene and food quality that we must comply with.
· Economic – During recession times and low economic activities, fast food restaurants must adjust to the situation by offering low priced menu items and discounts.
· Social – Health and lifestyle changing trends influence the fast food industry, restaurants are more pressured to include low – calorie options. The Covid-19 pandemic has influenced people’s lifestyles, instead of dining in customers are ordering online for delivery or pick-up.
· Technological – Social media has become an important approach to engage with customers, it is a necessary tool to create brand awareness, collect feedback and keep informed about the competition.
III.
SWOT ANALYSIS
The SWOT analysis provides a description of the key strengths and weaknesses within the company, and the opportunities and threats that affect Rock That Burger.
Strengths
· Rock That burger offers a variety of high-quality specialty burgers and hot dogs with home-made recipes using the best and freshest ingredients at affordable prices.
· High customer loyalty among repeat customers.
· We offer excellent customer service.
· The company is financially stable and debt free. We make enough profit from our operations to pay our regular business expenses and feel confident in the long-term financial success of our business.
Weaknesses
· Rock That Burger is still a weak brand in Miami. Even with almost a decade of operations and history, our lack of advertisement has not helped us position the restaurant as a strong brand in the city.
· Bad location. Our restaurant has poor visibility, it is not easily seen from the street. The area does not see a lot of foot traffic which makes it difficult to attract walk-in customers.
· High employee turnover. Replacing and training new staff has become expensive for our company.
· Limited menu items offered at the restaurant forced by landlord restrictions.
Opportunities
· The restaurant market is a growing industry, Rock That Burger can expand with the implementation of a marketing plan.
· Increasing sales opportunities in delivery and take-out orders.
· Add new product lines to attract more customers.
· More restaurants are opting for online marketing. Rock That Burger can offer customers ease of ordering and comfort.
Threats
· Intense competition from local restaurants. Rock That Burger faces competition from local and national burger restaurants.
· Changing economic scenarios reducing customers income spent on dining out.
· Change in consumers eating trends. Consumers are opting for healthy lifestyle options; this is a factor that Rock That Burger needs to take into consideration if we want to attract a new niche of customers.
· Local regulations make it difficult for small business to expand and open new stores.
Strengths:
• Rock That burger offers a variety of high-quality specialty burgers
• High customer loyalty
• We offer excellent customer service
• The company is financially stable and debt free
Opportunities:
• The restaurant market is a growing industry
• Increasing sales opportunities
• Add new product lines to attract more customers
• More restaurants are opting for online marketing
Weaknesses:
• Rock That Burger is still a weak brand in Miami
• Bad location
• High employee turnover
• Limited menu items offered
Threats:
• Intense competition from local restaurants
• Changing economic scenarios
• Change in consumers eating trends
• Local regulations
Rock That Burger has potential to become a well know Burger restaurant brand, the company is strong in offering a variety of specialty burgers and hot dogs with unique flavors and excellent customer service. The restaurant has been well received by consumers and has loyal customer base which is a good tool to get the word out and refer it to new customers. Another strength Rock That Burger has is that it is financially stable and debt free, this leads to the opportunity of opening new stores. The restaurant has some weaknesses that needs to pay attention to in order to grow as a business, we are still a weak brand in Miami and need to advertise the restaurant more. Our location does not help us to attract new customers as there is not much foot traffic and not enough visibility. We need find ways to reduce employee turnover, this could be done by hiring more mature and responsible employees. We have given the opportunity to high school and college students, but they do not like for stay at the same job for long. One of our weaknesses that cause major impact on our profitability is that we offer limited menu items, we cannot reach to more consumers offering only burgers and hot dogs. We seek opportunities in the growth of the restaurant industry, the increase in sales due to delivery and take-out preferences by customers. Changing economic scenarios and local regulations are threats that directly affect Rock That Burger. Adjusting our prices and complying with regulations help the restaurant overcome those threats. We need to adapt our menu to the ever-changing consumer trend due to cultural factors and healthy lifestyle options.
Developing Competitive Advantages
In order to develop a competitive advantage, Rock that burger needs to offer high quality foods and service by ensuring that the procedures taking place in the preparation of our food are safe and rigorous. We need to have a secure supply chain; our suppliers need to be selected based on their ability to comply with our specifications and quality control. Another way to develop our competitive advantage is to hire and train highly qualified employees that understand our company values, organizational culture, and comply with our operational standards. These employees are trained to prepare the best quality foods and offer outstanding customer service. The quality of our food and service is what measures our competitive advantage, management and staff need to be open to consumers feedback and take the corrective actions necessary in order to keep improving our quality.
Developing a Strategic Focus
Our strategic focus is to use advertising to create brand awareness and promote our products. We need to continue building our customer base and customer loyalty that we can use as referrals. Rock That Burger also needs to continue focusing on customer satisfaction by offering the best quality, affordable prices and excellent customer service. In order to keep our customers happy, we will continue offering a place with a clean environment that people feel satisfied to dine in.
IV.
MARKETING GOALS AND OBJECTIVES
The current marketing objectives at Rock That Burger are to maintain a positive, steady growth each month, generate sales of at least $30,000 per month, and experience and increase in new customers who will turn into long-term customers.
Our marketing goals:
· Improve brand awareness among consumers in the Kendall area and the city of Miami.
· Position Rock that Burger as the premier burger joint in Miami, FL.
We will achieve these goals and objectives by selling the best burgers in town, aiming attention to quality, excellent customer service, and cleanliness standards.
The message that Rock That Burger wants to communicate is that we offer the freshest, most creative, reasonably priced burgers in Kendall. We will implement a direct mail campaign to communicate directly with consumers, this will include our restaurant menu, and discounts offered.
V.
MARKETING STRATEGY
Our target market can be divided into the following categories:
· People who dine in by themselves
· Groups of people such as families or friends who enjoy dining together
· Consumers who prefer to order delivery or take-out to eat at their home or a different location other than the restaurant
These categories can be divided into Millennials and families. Millennials are those born in the 80s and 90s, this group of people account for 80 million of our population. Millennials visit restaurants about twelve times or more each month, and they spend most of their income on dining out. Families represent another extensive target market for Rock That Burger, they look for value, convenience, and speed of service.
Product
We can analyze the product of our company through the following criteria: variety, quality and design. Rock that Burger might be lacking in variety because our menu is mainly composed of hamburgers and hot dogs. It is however flexible as we offer side dishes and milkshakes. Even though we only sell hamburgers and hot dogs, we offer diversity within these two products. Our product consists of specialty burger and hot dogs with different topics, each named after rock songs. The customers also can rock their own burger or hot dog which means they can choose any toppings they would like.
As for quality, this is our main core value. We offer the freshest ingredients and best quality products. Our burger patties are made fresh every day, never frozen.
Design is representative of the Rock vibe and atmosphere we want to offer our customers. Our logo colors are black and red, which we associate with the Rock music genre. We use classic brown paper bags for deliver and pick-ups with the restaurant logo stamped on them
Pricing
Fast food restaurants are commonly perceived as cheap, some of our guests may think our prices are high for the product we offer. We want our customers to understand that even though we sell burger, hot dogs and fries, the quality of our product is worth the price. As we offer high quality products, this leads to higher selling prices. This decision might decrease demand, but we are a value-oriented business. We offer discounts for new customers and are currently working on a customer loyalty program.
Promotion
We are in critical need to advertise our business. We can use banner ads, direct mail campaigns, and increase promotion through social media. Word of mouth is our most loyal advertisement tool and it is what has helped us bring in new customers without any advertisement.
VI.
MARKETING IMPLMENTATION
We will start implementing our marketing plan by hiring an advertisement and design company in January 2021. We understood we could not continue implementing internal marketing activities and having our management and staff manage the business’s social media and advertisement.
These are the activities the external marketing firm will be implementing:
· Community manager
· Personalized design of the company’s brand
· Personalized design of the business for Facebook and Instagram
· Optimization and integration of social media
· Weekly or monthly advertising agenda
· Monthly report of social media activities
· Create paid ads on social media
Specific Tactical Activities
Person/Department
Responsible
Required
Budget
Completion
Date
Product Activities
1. Create new vegan and vegetarian food items
2. Improve our kid’s meal
3. Create more menu items other that burgers and hot dogs
Chefs and Management
Open budget
Between fourth and fifth month of the year 2021
Pricing Activities
1. Create promotions and discounts for lunch hours
2. Offer discounts for online orders
3. Create loyalty programs
Management
Budget will be studied with more detail
Between the first and third month of the year 2021
Distribution/Supply Chain Activities
1. Offer in-house delivery
2. Pick-Up orders
3. Add other delivery companies aside form Uber and Postmates
Management
10% of orders for delivery
Second quarter of the year 2021
IMC (Promotion) Activities
1. Hire and advertisement company
2. Create paid ads on Google and Instagram
3. Direct mail including menu flyers
Advertisement agency
$400.00 a month plus printing costs
First quarter of the year 2021
We have a budget of $400.00/ monthly to implement this marketing activities. We are looking to improve brand awareness and promote our products. We are aware that offering an excellent product is not enough to make a business profitable, marketing is essential.
We will be adding new items to the menu to cater to the vegan and vegetarian consumers, we are in the process of trying new recipes and decide which are worth selecting. We plan to add these new items within the fourth and fifth month of the coming year 2021. We must look for the best quality vegan and vegetarian patties and or create our home-made recipes, we also need to buy the best quality vegan cheeses and bread. Rock That burger is also in the process of improving the kids’ menu options and create our own happy meal. We have learned from our major national competitors Burger King and McDonald’s that happy kids, happy parents.
Rock That Burger needs to star implementing these marketing strategies the earliest possible, the company is facing a crucial time in making the decision if we want to expand the business and open new stores in other locations of the city or just stay with the Kendall location.
VII.
EVALUATION AND CONTROL
The evaluation factor of the marketing plan implemented at Rock That Burger can be analyzed by the increase in sales, new customers acquired, and the business’s profit margin. The evaluation of the plan also includes customer satisfaction as a qualitative factor. Our management team will look at the marketing plan data to examine whether the business is achieving its strategy marketing objectives from the date the tactical activities were implemented.
Rock That Burger will implement marketing plan controls by monitoring:
· Revenue in a monthly and annual basis
· Expenses in a monthly and annual basis
· Year-end financial statements
· Market share
From the Rock That Burger Team:
Andres Alarcon – Master Chef
Angela Alarcon – Assistant Manager
Flavio Alarcon – President & Manager
REFERENCES
https://www.restohub.org/operations/promotion/restaurant-marketing-plan-ideas-strategies/
https://notesmatic.com/2016/09/fast-food-industry-pestel-analysis/
https://learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/5c1754ad402d4/2757142?X-Blackboard-Expiration=1607904000000&X-Blackboard
https://www.restaurantbusinessonline.com/marketing/burger-standouts-detail-their-marketing-strategies
https://smallbusiness.chron.com/internal-external-factors-affecting-quickservice-restaurant-management-42303.html