Sandwich Restaurant

Marketing Plan
Franchise Sub Shop
.

Executive Summary
The marketing plan is tied closely to the overall financial and business plan.
This plan outlines a strategy for success, and breaks it down into
comprehensible, actionable components that will enable The Sub Shop to
implement marketing activities to provide a solid return on investment.
This plan is designed to complement the business plan, but is also a way
for company officers to get a handle on the external and internal factors that
will influence the company's success in the Ashland market. The following
topics will help define how the company plans to differentiate the business
and product offering from the competition, and describe the strategy that will
drive its business forward.
Opening a franchise company has its joys and perils. While the built-in brand
recognition is a big plus for a start-up, that brand has not reached the level
of some of the largest fast food chains. The franchise brand may not provide
the level of support expected from a larger franchise chain. With that
said, the combined management experience, and synergy between the goals
of the franchisor and the company's goals will lead to the long-term success
of our franchise.
These are the marketing objectives:
To acquire 25% market share in the Ashland region.
To position ourselves as a local company, with strong ties to the
community.
To be perceived as the cleanest, most responsive Quick Service
Restaurant (QSR) in Ashland.

The Sub Shop is a QSR, that resides somewhere between a fast food restaurant
(FFR) and a sit down restaurant. This category is growing quickly, as people adjust to
paying a little more than they would for typical fast food. While the differentiation
between QSR's and traditional fast food may be transparent to most consumers, there
has been a conscious shift in purchasing towards FFRs and QSRs that provide
innovative menus and a selection of custom, or customizable menu items.
McDonald's new "All American BurgerTM" is an example of the shift towards traditional,
homemade-style menu items. The burger is much like what you would find at a
traditional sit-down restaurant, yet for half the price. All FFRs and QSRs offer some
level of food customization as well. Burger King promises to make you lunch "Your
Way.TM" This has been a point of differentiation for Burger King in the past, yet has
become less advantageous to them as other FFRs have promised product
customization.
Ashland is a young market for QSRs. FFRs have left their mark on the town, yet the
choices remain limited to the major national chains. The Sub Shop will will bring new
lunch choices to the Ashland market.

Market Summary
The market consists of tourists, downtown workers, and students from Southern Oregon
University. Over 362,000 tourists visit Ashland each year - 100,000 for the
Shakespearean Festival and 262,000 for other recreational/shopping activities. Tourists
make up the largest segment of our target market, at about 85% of the total market for
our products.
There are about 18,000 people living and working in Ashland. If just 15% of those
people buy The Sub Shop sandwiches twice a month, the company will sell 65,000
sandwiches to that market alone in 2001. Add that amount to 20% of all tourists to the
Ashland area, and those two segments alone will buy 138,000 meals.
In addition, demographics have shifted in recent years from traditional households (two
parents with children) to more non-traditional households; as a result, many adults feel
they have less free time. Consumers report that they are eating out more often in order
to free up time normally spent cooking, and use that time to enjoy their families and to
take advantage of other leisure activities.

From the Ashland Chamber of Commerce:

Ashland (pop. 18,560) has built its economy on a resource base of timber, favorable
climate, attractive landscape, cultural attractions, a well educated labor force and
education. In addition, Ashland's location off Interstate 5 and the Southern Pacific
Railroad, and its proximity to the Rogue Valley International-Medford Airport, give it
market access that is more favorable than usual for a rural town.
To offset the risk that comes with dependence on one economic sector, the City of
Ashland and the Chamber of Commerce encourage the diversification of markets.
Establishment of light manufacturing firms with value-added components, sophisticated
services catering to a geographically dispersed clientele, and retailing targeted to local
residents are especially encouraged. The Oregon Shakespeare Festival attracts more
than 100,000 visitors annually. And because Ashland is considered a "destination" city,
an additional 258,427 people visit here for its other attractions such as recreation,
shopping and sightseeing.
Ashland, while widely known for the nine-month Shakespeare Festival, is also the
location of the only federally funded wildlife forensics lab and research facility in the
country. Southern Oregon University plays a large part in Ashland's economic health,
with approximately 5,130 students, 576 faculty, 207 staff, 26 temps and 691 student
employees.
The City of Ashland's population over the last four years has averaged 1.4% growth and
is not expected to deviate from that rate. The City of Ashland's "official population
projections" show a 19,995 population projection for the year 2,005. Over the 10-year
period 1995-2005, a total of 2,010 new residents to Ashland are expected. The City of
Ashland's average household size is 2.22 (1990) persons per unit compared to the
average household size of 2.34 in 1980.
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Market Analysis
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Market Analysis
2003

Potential Customers

2005

2006

2007

Growt

CAGR

Tourists

9%

Downtown Workers

2%

Weekend Shoppers

2%

Total

2004

8.66%

362,0

394,5

430,0

468,8

510,9

00

80

92

00

92

17,00

17,34

17,68

18,04

18,40

3,500

3,570

3,641

3,714

3,788

382,5

415,4

451,4

490,5

533,1

00

90

20

55

82

9.00%

2.00%

2.00%

8.66%

Market Demographics
Our marketing efforts will focus on the following groups of people:
1.

Tourists. This is the largest market for us, making up over 93% of our
yearly traffic. The majority of them are retired or semi-retired baby boomers, and
urban professionals. The median age is 52, average household income is
$80,000/year, and favorite activities include gardening, reading, attending art
exhibits, and travelling.

2.

Downtown workers. This group is the second largest group of

customers. The median age is 32, average household income is $40,000/year, and
favorite activities include camping, fishing, hunting, and spending time with family.

3.

Students. This includes high school students and college students from
Southern Oregon University. The median age is 20, household income is
$12,000/year, and favorite activities include snowboarding/skiing, dancing,
and shopping.

4.

Weekend shoppers. This group includes people who travel from

rural areas, and nearby towns such Medford, Yreka, Grants Pass, and Jacksonville.
The median age is 44, household income is $35,000/year, and favorite activities
include fishing, hunting, gardening, and spending time with family.

Market Needs
There are two market needs we are attempting to fill. First, there's a need for a fast
food restaurant that produces high quality, great flavored food, at a low cost. In other
words, there's a need for value beyond "cheap."
The Sub Shop will fill that need gap by providing above average quality subs, and good,
but not necessarily low prices. The niche for The Sub Shop resides somewhere
between consumers who want to be waited on and people who want a fast lunch for
less. Since we will provide cafe-like tables for people to sit and enjoy their subs, this will

attract potential customers from the traditional restaurant chains. The food is made fast
and is relatively inexpensive, considering the quality of food.
The fast food customers who learn that a mere $1.50 will provide much greater return in
flavor will keep coming back for more, and over time, will come to expect more from
traditional FFRs.
There is also the need for eating in a clean, wholesome environment. There are many
people who will not set foot inside a fast food restaurant due to 1) the restaurant's lack
of cleanliness and 2) the relative poverty and despair displayed by the people working in
these fast food restaurants.
To address this need, we plan to provide our employees with wages 35% higher than
traditional FFRs in the region. We will not degrade our employees by forcing them to
wear polyester uniforms, and we will offer two group outings a year for the employees,
funded entirely by the company. As for cleanliness, we will expect the highest standards
from both our employees, and our location. The goal will be to ensure that tables are
cleaned within three minutes of being left. Floors will be cleaned daily, and all kitchen
supplies and countertops will be maintained to the highest standards.

Market Trends
The market for fast food is becoming more demanding. While fast food chains such as
D-Lite and others in the mid-1980s failed in their attempt to market low calorie fast food,
since the 90's, some companies have found that healthy fast food pays off.
GardenburgersTM have become prevalent at many fast food restaurants, and even
some fast food burger franchises are beginning to offer Gardenburgers TM, and other soy
alternatives.
While marketing fast food only as "healthy" could amount to corporate suicide, there is a
trend towards quality in both food and ambiance.
As mentioned in the Market Needs topic, many people are heading for restaurants that
offer fast food at a slightly higher price, but at a much higher quality, and delivered by
employees who do not feel degraded or otherwise fatalistic about their role at work.
While the latter issue may be debated by intellectuals in management school courses
or readers of the current bestselling book, "Fast Food Nation," the fact remains
that American society will continue to want more for less.

If The Sub Shop pursues the niche of customers that reside between the bargainhunters and the spendthrifts, as well as people who are repulsed by standard fast food
practices, lack of cleanliness, and the total lack ambiance inherent to most fast food
restaurants, the franchise will be a success.
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Market Growth
Consumer households today spend approximately 46% of their food budgets on fast
food. The National Restaurant Association predicts that the QSR market will grow
slightly slower than the overall market for food services.
This is due to reduced discretionary income, and recessionary economic pressures in
2000 and 2001. The overall growth rate in the fast food business is expected to be 4.4%
in 2001. Growth in catering services is expected to be at around 6.5%. Since about 20%
of sales will be generated from catering services, and the market growth will
slow during the current post-recessionary period, overall market growth rate is
targeted to a weighted 4.82%.

However, because of the faster than average growth of the Ashland area, and the
increase in tourism in Jackson County over the last few years, the potential customer
base will grow at a healthy 8.59%.
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SWOT Analysis
The SWOT analysis is available in the following subtopics.

Strengths
The company's strengths are listed below:

The business owners and managers have a combined 40 years experience

working in the restaurant industry.

The supply chain has been well established by the franchisor, and it is in the
interest of the franchisor to extend credit so that its franchisees may order supplies
and continue to pay the quarterly franchise fee.

The owners and managers are natives of Ashland, have strong ties to the
community, and are willing to build stronger ties.

Weaknesses

Cash flow is limited to owner's resources and potential bank loans.

Generous employee benefits and ownership increase financial risk slightly.

Management teams' many years of experience may include assumptions that

limit amount of risk taken, and therefore, potential returns.

Opportunities

Rapid growth in tourism.

Lack of competition in local QSR arena.

Increasing popularity of restaurants that serve high-quality fast food.

Threats

Rapid growth of QSR industry and low barriers to entry - a new

competitor could open shop within three months of determining a location.

Industry is highly susceptible to a recession.

Recessionary pressures may also reduce the amount available for unsecured
lines of credit.

Loss of lease, or regulatory measures that limit the scope of building

renovation.

Competition
The main competitors are the major national fast food franchises. SubSub is the largest
competitor, with 12,868 franchise in the U.S. alone.
SubSub licenses franchises throughout the nation, and offers two locations in the
Ashland Metro area. McDonald's only has one store in the Ashland area.
SubSub contributes to the growth in our market by advocating for healthy eating habits
via online, TV, and radio advertising. Yet they contribute to the nationwide growth of the

healthy food segment of this market. Their advertising will bring more people to The Sub
Shop. The Sub Shop will target their local operations through direct mail flyers that offer
specials to customers that exchange their full SubSub 10-sandwich punch cards for a
free meal and a stamp on the punch cards provided by The Sub Shop.

Product Offering
The company will offer a large variety of submarine sandwiches, salads, soups, chili,
chips, cookies, and sodas. The sandwiches are made with The Sub
Shop's unique sweet mustard sauce and each loaf of bread is made fresh daily. The
bread is toasted for every order and the soups are made daily.
More product information is available in the sales forecast table.

Keys to Success
The most important key to success is location. It is very important that the location live
up to management's expectations, and is convenient to as many potential customers as
possible. As stipulated by the franchise agreement, the "Type A-Profile 1" location must
contain a minimum of 6,000 employees within a four block radius (or five minute walk
time). The pedestrian traffic must be adequate and the lunch habits of the customers
must be conducive to eating out.
Another key to success lies with management's ability to execute the marketing and
business plans. If they neglect one or more aspect of each plan, whether in
the numbers, employee morale, cleaning and food standards, or a commitment to
customers, The Sub Shop will not last beyond a year.

Critical Issues
The critical issues are tied to implementing the overall strategy effectively. The strategic
elements of this plan are only as good as management's ability to follow-through:

The Sub Shop will encourage our employees to think like owners.

The Sub Shop will respect customers and offer them real value.

The Sub Shop will stick to a spending plan, and reinvest profits for future
growth.

Marketing Strategy
Downtown workers:
The Sub Shop will target downtown workers through local businesses, advertising,
event sponsorship, and word of mouth advertising.

Students:
Ashland has a seasonal student population of around 4,700. The company expects to
reach students through campus activities and marketing, as well as by sponsoring
special student events.

Tourists:
Over 100,000 tourists will visit the Oregon Shakespearean Festival in 2001. 262,000 will
visit Ashland for its premier recreational activities. The company will reach tourists at the
time they visit Ashland. Most tourists aren't thinking, "Where am I going to find good,
inexpensive lunches?" when they plan their trips because they know fast food venues
are abundant. The strategy will be to stand out from the other venues available on the
street, and letting people know the food is relatively inexpensive, but without degrading
the experience of shopping in Ashland.

Weekend Shoppers:
Weekend shoppers come from Medford to shop for clothes, gifts, and crafts in
downtown Ashland. Over 40,000 people live and work in Medford, and we predict that at
least 8% of those people will at some point shop in Downtown Ashland.

Mission
The Sub Shop's mission is to bring to market the tastiest and healthiest fast food in
Ashland, offering real value over other fast food restaurants. High standards of quality
and cleanliness will establish a reputation as the cleanest QSR in Ashland.
The community is as important to us as making a profit. The Sub Shop will devote 2% of
profits to a local women's shelter, and 1% to a local environmental conservation fund.

This franchise is founded on the concept that good works and good deeds not only
serve the needs of the community, but will keep the company healthy both financially
and spiritually, helping to maintain a commitment to filling customer needs.

Marketing Objectives
The most important objectives are:

To acquire 25% market share in the Ashland region within year two of
operations.

To position The Sub Shop as a local company, with strong ties to the
community.

To be perceived as the cleanest, most responsive QSR or FFR in Ashland.

Financial Objectives

To end 2003 with a 15% increase in contribution margin.

To increase sales 10% per month the first year.

Target Markets
The market consists of both tourists, downtown workers, and students from Southern
Oregon University. Over 362,000 tourists visit Ashland each year - 100,000 for the
Shakespearean Festival and 262,000 for other recreational/shopping activities. Tourist
make up the largest segment of our target market, at about 85% of the total market for
our products. There are about 18,000 people living and working in Ashland. If just 15%
of those people buy The Sub Shop sandwiches twice a month, the company will sell
65,000 sandwiches to that market alone in 2001. Add that amount to 20% of all tourists
to the Ashland area, and those two segments alone will buy 138,000 meals.
In addition, demographics have shifted in recent years from traditional households (two
parents with children) to more non-traditional households; as a result, many adults feel
they have less free time. Consumers report that they are eating out more often in order

to free up time normally spent cooking, and use that time to enjoy their families and to
take advantage of other leisure activities.

Positioning
The positioning is dependant upon the franchisor. Throughout the last five years,
revenue growth for the franchisor has been in the 20% range so The Sub Shop has faith
in the franchisor's positioning strategy.
The Sub Shop products are positioned to be flavorful, sometimes healthy alternatives to
fast food. Customers will appreciate the clean seating areas, Mediterranean ambiance,
and special sauces, as well as meal specials. In this regard, The Sub Shop is like no
other QSR in Ashland.

Strategies
The Sub Shop's strategy is to keep things simple and stick to the basics.
In the employee room, large banners ask employees:

What do we want customers to think of us?

Why are you here?

You are an owner, what is your plan?

Why do our customers keep coming back?

Employees are on the front lines every day, and the goal will be to instill a sense of
simplicity and focus in their everyday actions. If employees are not happy with how the
company treats them, that negative energy will be transferred to customers. The
company will not always have control over customers, and their reactions to mistakes
(which are inevitable), but does have control over how employees deal with mistakes
and with the customers. Many fast food employees are degraded to the point of feeling
defensive when a manager address them or when a customer challenges them.
The strategy is to treat employees as owners, and help them make decisions that
benefit everyone.

This strategy will play itself out through fast service, great food, great customer service,
upbeat and friendly presentation, and cleanliness. By keeping it simple, the strategy
won't produce a lot of "noise" for customers and employees, and all goals will be met.
Advertising strategy will focus on special offers provided through various locations and
businesses, and special offers targeted towards building a larger base of return
customers.

Marketing Mix
The company's marketing mix focuses on employees and customers first. Employee
service programs were described in the previous topic. Customer service goals will
ensure top-notch service.
Sales literature, coupons, a direct phone line, fax and website
orders, newspaper advertising, event sponsorships, and multi-purchase punch cards
will all contribute to a healthy marketing mix.

Marketing Research
Market research is based on informal research such as customer comments, letters, as
well as employee comments and perceptions. The company will occasionally employ an
outside agency in order to determine the scope of our market, to fine tune our
assumptions regarding demographics, to back up some of our assumptions, and to act
as an insurance policy against "internal groupthink." Sometimes clarity is found by
those paid to observe company day-to-day activities from a distance.

Financials
The following topics include the break-even analysis, sales forecast, and
expense forecast tables.

Break-even Analysis
The break-even analysis is based on a rough estimate of fixed costs. Through
FY2001, average fixed costs will be $4,500 per month. This figure includes
the cost to lease the building, equipment leases, and various other

equipment costs and fees. Variable costs include the cost of labor, food
inventory, and other product-related costs. The variable cost estimate is
$1.20 per unit, although that number may be revised up as actuals
determine changes in the coming months.
Monthly break-even on unit sales is 2,250. This includes units other
than sandwiches, such as cookies, soda, chips and other add-ons. The basis
for this break-even point is an average of entrees (sandwiches) and add-ons.
The average per unit revenue is $3.20.
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Break-even Analysis
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Break-even Analysis

Monthly Units Break-even

2,250

Monthly Revenue Break-even

$7,200

Assumptions:
Average Per-Unit Revenue

$3.20

Average Per-Unit Variable Cost

$1.20

Estimated Monthly Fixed Cost

$4,500

Sales Forecast
The majority of revenue will be generated through medium subs and
cookies/desserts. The breakdown by products is below.
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Sales Forecast
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Sales Forecast
2003

2004

2005

2006

2007

19,024

20,926

23,019

25,321

27,853

139,508

153,458

168,804

185,685

204,253

Small Subs

50,730

55,803

61,383

67,522

74,274

Entree Subs

19,024

20,926

23,019

25,321

27,853

Side Salads

15,219

16,741

18,415

20,256

22,282

Chips

38,048

41,852

46,037

50,641

55,705

254

279

307

338

371

Desserts

16,487

18,136

19,950

21,945

24,139

Cookies and Desserts

63,413

69,754

76,729

84,402

92,842

Soups and Chili

17,756

19,531

21,484

23,633

25,996

Drinks

50,726

55,803

61,383

67,522

74,274

430,186

473,210

520,530

572,584

629,842

2003

2004

2005

2006

2007

Unit Sales
Large Subs
Medium Subs

Party Subs and/or Trays

Total Unit Sales

Unit Prices

Large Subs

$7.10

$7.10

$7.10

$7.10

$7.10

Medium Subs

$5.10

$5.10

$5.10

$5.10

$5.10

Small Subs

$3.89

$3.89

$3.89

$3.89

$3.89

Entree Subs

$5.10

$5.10

$5.10

$5.10

$5.10

Side Salads

$1.59

$1.59

$1.59

$1.59

$1.59

Chips

$0.89

$0.89

$0.89

$0.89

$0.89

$22.00

$22.00

$22.00

$22.00

$22.00

Desserts

$1.49

$1.49

$1.49

$1.49

$1.49

Cookies and Desserts

$1.39

$1.39

$1.39

$1.39

$1.39

Soups and Chili

$1.89

$1.89

$1.89

$1.89

$1.89

Drinks

$0.99

$0.99

$0.99

$0.99

$0.99

Large Subs

$135,069

$148,576

$163,433

$179,776

$197,754

Medium Subs

$711,488

$782,637

$860,901

$946,991

$1,041,690

Small Subs

$197,340

$217,074

$238,781

$262,659

$288,925

Entree Subs

$97,021

$106,723

$117,396

$129,135

$142,049

Side Salads

$24,198

$26,618

$29,280

$32,208

$35,429

Chips

$33,862

$37,249

$40,973

$45,071

$49,578

$5,580

$6,138

$6,752

$7,427

$8,170

$24,566

$27,023

$29,725

$32,697

$35,967

Party Subs and/or Trays

Sales

Party Subs and/or Trays

Desserts

Cookies and Desserts

$88,143

$96,958

$106,654

$117,319

$129,051

Soups and Chili

$33,558

$36,914

$40,605

$44,666

$49,132

Drinks

$50,219

$55,245

$60,769

$66,847

$73,531

$1,401,04 $1,541,15

$1,695,26

$1,864,79

Total Sales

$2,051,276

2003

2004

2005

2006

2007

Large Subs

$2.49

$2.49

$2.49

$2.49

$2.49

Medium Subs

$1.79

$1.79

$1.79

$1.79

$1.79

Small Subs

$1.36

$1.36

$1.36

$1.36

$1.36

Entree Subs

$1.79

$1.79

$1.79

$1.79

$1.79

Side Salads

$0.56

$0.56

$0.56

$0.56

$0.56

Chips

$0.31

$0.31

$0.31

$0.31

$0.31

Party Subs and/or Trays

$7.70

$7.70

$7.70

$7.70

$7.70

Desserts

$0.52

$0.52

$0.52

$0.52

$0.52

Cookies and Desserts

$0.49

$0.49

$0.49

$0.49

$0.49

Soups and Chili

$0.66

$0.66

$0.66

$0.66

$0.66

Drinks

$0.35

$0.35

$0.35

$0.35

$0.35

Direct Unit Costs

Direct Cost of Sales

Large Subs

$47,369

$52,106

$57,317

$63,048

$69,353

$249,718

$274,690

$302,159

$332,375

$365,613

Small Subs

$68,993

$75,892

$83,481

$91,829

$101,012

Entree Subs

$34,053

$37,458

$41,204

$45,324

$49,856

Side Salads

$8,523

$9,375

$10,312

$11,344

$12,478

$11,795

$12,974

$14,272

$15,699

$17,269

Party Subs and/or Trays

$1,953

$2,148

$2,363

$2,600

$2,860

Desserts

$8,573

$9,431

$10,374

$11,411

$12,552

Cookies and Desserts

$31,072

$34,179

$37,597

$41,357

$45,493

Soups and Chili

$11,719

$12,890

$14,180

$15,598

$17,157

Drinks

$17,754

$19,531

$21,484

$23,633

$25,996

Medium Subs

Chips

Subtotal Direct Cost of Sales

$491,522

$540,675

$594,743

$654,217

$719,639

Expense Forecast
The Sub Shop will reduce expense costs to below 3% of sales within the first
year. Since the franchisor manages and implements a large portion of the
necessary marketing activities, local activities will be minimal, yet important.
Contribution/sales margin is expected to exceed 62% within the first year.

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Marketing Expense Budget

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Marketing Expense Budget

2003

2004

2005

2006

2007

$10,813

$11,895

$13,084

$14,393

$15,832

Daily Offers and Discounts

$4,800

$4,896

$4,994

$5,094

$5,196

Other

$3,000

$3,060

$3,121

$3,184

$3,247

------------

------------

------------

------------

------------

$18,613

$19,851

$21,199

$22,670

$24,275

Franchisor Local and National

Advertising (2.2% Sales)

Total Sales and Marketing

Expenses
Percent of Sales

1.33%

1.29%

1.25%

1.22%

1.18%

Controls
The control environment will be a result of monthly employee meetings
during which we will discuss the current marketing activities, sales,
promotional activities, and ideas that will lead to improvement. Each person,
whether a full-time or part-time employee, owner, or manager will facilitate
the meeting once a month on a rotation. Minutes will not be necessary, but
current facilitators will follow up on previous topics and debate the value of
current and future marketing programs.
Marketing ideas have little value until they are implemented, and they must
be implemented by individuals who believe in them 100%. Through these
monthly meetings everyone should feel vested in the decision making
process, and in the long-term success of the company.

Implementation
The milestones table is attached. This table shows some of the general
activities, and their target completion dates, as well ownership. The dates
are dependant upon some other issues not listed, and may be modified as a
result of changes made during the monthly company meetings.
Milestones
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Milestones

Advertising

Start
Date

End Date

Budget

Manager

Department

Shakespeare Festival Ticket

Stub Promotion

50% off Coupon

Sponsorship of "Pear Blossom

Run"
Establish Menus in Hotels-Slotting Costs
Devise Special Schedule and
Logistics

6/1/2002

6/1/2002

7/1/2002

6/15/200
2

NA

$400

Jack

NA

2/5/2003

$600

Luke

NA

5/1/2002

7/1/2002

$2,000

Luke

NA

7/1/2002

8/1/2002

$100

Jack

NA

$1,200

Jack

NA

$600

Jack

NA

$0

ABC

Department

$0

ABC

Department

$0

ABC

Department

Budget

Manager

Department

$0

ABC

Department

8/1/2002

Complete Interior Decor

8/1/2002

Name me

1/1/2003

Name me

1/1/2003

Other

1/1/2003

8/15/200
2
9/1/2002
1/15/200
3
1/15/200
3
1/15/200
3

Total Advertising Budget

Name me

Luke

2/1/2003

Wrap-up Menu, Special Offers

PR

$700

$5,600
Start
Date

1/1/2006

End Date

1/15/200
6

Name me

1/1/2006

Name me

1/1/2006

Other

1/1/2006

1/15/200
6
1/15/200
6
1/15/200
6

Total PR Budget

Direct Marketing

ABC

Department

$0

ABC

Department

$0

ABC

Department

Budget

Manager

Department

$0

ABC

Department

$0

ABC

Department

$0

ABC

Department

$0

ABC

Department

Budget

Manager

Department

$0

ABC

Department

$0

ABC

Department

$0
Start
Date

Name me

1/1/2006

Name me

1/1/2006

Name me

1/1/2006

Other

1/1/2006

End Date

1/15/200
6
1/15/200
6
1/15/200
6
1/15/200
6

Total Direct Marketing Budget

Web Development

$0

$0
Start
Date

Name me

1/1/2006

Name me

1/1/2006

End Date

1/15/200
6
1/15/200
6

Name me

1/1/2006

Other

1/1/2006

1/15/200

$0

ABC

Department

$0

ABC

Department

Budget

Manager

Department

$0

ABC

Department

$0

ABC

Department

$0

ABC

Department

$0

ABC

Department

6
1/15/200
6

Total Web Development

$0

Budget

Other

Start
Date

Name me

1/1/2006

Name me

1/1/2006

Name me

1/1/2006

Other

1/1/2006

End Date

1/15/200
6
1/15/200
6
1/15/200
6
1/15/200
6

Total Other Budget

Totals

$0
$5,600

Marketing Organization
The company is a very small franchise and does not need an organization
chart. There are few bureaucratic layers between the decision makers and
the workers, and there is often no difference between the two other than in
title. The Sub Shop encourages workers to think like owners and our owners
to think like workers.

Contingency Planning
The company has planned for several undesirable scenarios, all of which are
unlikely:

Solution

Potential Problem
The building doesn't meet a city code,

Work with contractors and city

or needs more updating than was

politicians to make appropriate

originally planned.

changes.

The unemployment level in Oregon

Solution: Change product position

continues to climb and people reduce

to "inexpensive alternative to

the amount of money they spend on

dining out" or "reduce your food

eating out.

bill."

The company loses the owner or

manager to an accident or an
executive recruiter.

Purchased a "successionary"
insurance policy.

Other funding sources, including

The SBA loan funding falls through.

Venture Capitalists, have shown an

interest in capitalizing the
business.

A similar sandwich franchise opens in

the Ashland Metro area and pulls
customers from us.

More aggressive promotional

campaigns.

Sales Forecast
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Contribution Margin
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