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This sample marketing plan has been made available to users of Marketing Plan Pro, marketing planning software published by Palo Alto Software, Inc. Names, locations and numbers may have been changed, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For product information visit our Website: www.paloalto.com or call: 1-800-229-7526. Copyright Palo Alto Software, Inc., 1998-2006 All rights reserved.
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Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _________________________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities.
Academic Version
Table of Contents
1.0 2.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.3 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.4 Service Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.5 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.6 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Target Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financials, Budgets, and Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 9 9 10 10 10 11 12 12 12 13 14
3.0
4.0
5.0
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
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Sales By Year
$3000000,0 $2500000,0 $2000000,0 $1500000,0 $1000000,0 $500000,0 $,0 2003 2004 2005
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Target Markets
Table: Market Analysis Market Analysis 2003 Potential Customers Senior Citizens Lower Income Families Small Businesses Total Growth 7% 8% 8% 7,52% 8.734 8.044 1.098 17.876 2004 9.345 8.688 1.186 19.219 2005 9.999 9.383 1.281 20.663 2006 10.699 10.134 1.383 22.216 2007 11.448 10.945 1.494 23.887 CAGR 7,00% 8,00% 8,00% 7,52%
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Market Forecast
Senior Citizens
6000,0 4000,0 2000,0 ,0 2003 2004 2005 2006 2007
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2.2.1 Strengths
Well trained staff. In-depth knowledge of the industry. Comprehensive customer insight.
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2.2.3 Opportunities
Participation within a growth industry. Increased sales through an expansion of the current service offerings. As the company continues to grow, the ability to decrease fixed costs over a growing customer base.
2.2.4 Threats
Competition from local brokerages that respond to Acme's superior offerings. A significant slump in the economy that will likely have a correlated effect on the industry. A single of series of huge, unexpected, traumatic events that put significant strain on the financial health of the insurance industry as a whole.
2.3 Competition
Competition is found in five forms: local indeendent brokers, agents, mass market providers, mass merchandise programs and group plans. Local Independent Brokers Cal Roberts, Patrick C. Johnson, Rob Champlain Strengths - Alternate markets, especially small farm mutuals, that still continue to give low prices, still continue to write wood stoves, and allow discounts and underwriting terms. Weakness - Most are smaller, one-man operations that do not have the backup or finances to aggressively impact the marketplace. Agents (such as Co-operators) Strengths - Large advertising budget and competitively priced products. Their commercial business is difficult to compete against in some cases because they seem to not have the same restrictions on underwriting as our markets. Also they have large capacity to write certain risks. Weakness- One small operation that does not have the same hours as Acme's offices. Staff, because of salary, do not appear to be very knowledgeable or aggressive. Mass Market Providers Strengths - Large advertising budget and very competitive prices. Weakness - Not local and largely unknown to the clients at the present time. Mass merchandise programs heavily advertised over the radio such as "Gray
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3.1 Mission
Acme Insurance's mission is to provide the finest level of insurance services. We exist to attract and maintain customers. With a strict adherence to this maxim, success will be insured. Our services will exceed the expectations of the customers.
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3.5 Positioning
Acme Insurance is being positioned as a comprehensive, personal insurance broker serving clients through close, personal service. Acme will serve all of Smalltown, which is a widely dispersed, rural community. Acme will leverage our competitive advantages which consists of the following: Knowledgeable industry participants- Having established the company in 1938, Acme has amassed a huge amount of industry knowledge based in empirical experience. Having significant experience provides the entire company with a vast amount of industry knowledge that Acme is able to leverage and offer as value to the clients. Close personal customer relationships- The business model is based on the staff developing close, communicative relationships with clients. The stronger and more open the relationship is, the more value and higher level of service that can be offered. While other insurance brokerages claim to offer closer personal contact, this business philosophy has been cultured within Acme and all of its employees. Because these types of relationships are so fundamental to Acme's practices, everyone in the firm practices them, consciously and subconsciously.
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2.
3.
4.
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Break-even Analysis
$6000,0 $4000,0 $2000,0 $,0 ($2000,0) ($4000,0) ($6000,0) ($8000,0) $,0 $2000,0 $4000,0 $6000,0 $8000,0 $10000,0
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70% $6.500
Sales Monthly
$50000,0 $45000,0 $40000,0 $35000,0 $30000,0 $25000,0 $20000,0 $15000,0 $10000,0 $5000,0 $,0 Oca ?ub Mar Nis May Haz Tem A?u Eyl Eki Kas Ara
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Advertisements
$600,0 $400,0 $200,0 $,0 Oca ?ub Mar Nis May Haz Tem A?u Eyl Eki Kas Ara
Table: Marketing Expense Budget Marketing Expense Budget Advertisements Printed Material Other Total Sales and Marketing Expenses Percent of Sales 2003 $6.775 $800 $810 -----------$8.385 1,82% 2004 $7.544 $800 $900 -----------$9.244 1,90% 2005 $8.012 $800 $940 -----------$9.752 0,39%
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Table: Milestones Milestones Advertising Marketing Plan Completion Advertising Campaign #1 Advertising Campaign #2 Public Seminar #1 Public Seminar #2 Public Seminar #3 Name me Name me Name me Other Total Advertising Budget PR Name me Name me Name me Other Total PR Budget Direct Marketing Name me Name me Name me Other Total Direct Marketing Budget Web Development Name me Name me Name me Other Total Web Development Budget Other Name me Name me Name me Other Total Other Budget Totals Start Date 1.1.2003 1.2.2003 1.5.2003 1.3.2003 1.5.2003 1.7.2003 1.1.2003 1.1.2003 1.1.2003 1.1.2003 Start Date 1.1.2006 1.1.2006 1.1.2006 1.1.2006 Start Date 1.1.2006 1.1.2006 1.1.2006 1.1.2006 Start Date 1.1.2006 1.1.2006 1.1.2006 1.1.2006 Start Date 1.1.2006 1.1.2006 1.1.2006 1.1.2006 End Date 1.2.2003 4/31/2003 1.8.2003 25.4.2003 30.6.2003 30.9.2003 15.1.2003 15.1.2003 15.1.2003 15.1.2003 End Date 15.1.2006 15.1.2006 15.1.2006 15.1.2006 End Date 15.1.2006 15.1.2006 15.1.2006 15.1.2006 End Date 15.1.2006 15.1.2006 15.1.2006 15.1.2006 End Date 15.1.2006 15.1.2006 15.1.2006 15.1.2006 Budget $0 $1.800 $2.250 $225 $225 $195 $0 $0 $0 $0 $4.695 Budget $0 $0 $0 $0 $0 Budget $0 $0 $0 $0 $0 Budget $0 $0 $0 $0 $0 Budget $0 $0 $0 $0 $0 $4.695 Manager John Smith John Smith John Smith John Smith John Smith John Smith ABC ABC ABC ABC Manager ABC ABC ABC ABC Manager ABC ABC ABC ABC Manager ABC ABC ABC ABC Manager ABC ABC ABC ABC Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department
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Appendix
Appendix Table: Sales Forecast Sales Forecast Oca Sales Senior Citizens Lower Income Families Total Sales Direct Cost of Sales Senior Citizens Lower Income Families Subtotal Direct Cost of Sales 0% 0% $17.652 $18.767 $36.419 Oca $12.356 $13.137 $25.493 ub $12.343 $11.836 $24.179 ub $8.640 $8.285 $16.925 Mar $15.456 $17.679 $33.135 Mar $10.819 $12.375 $23.195 Nis $16.000 $17.122 $33.122 Nis $11.200 $11.985 $23.185 May $18.776 $19.887 $38.663 May $13.143 $13.921 $27.064 Haz $20.997 $21.665 $42.662 Haz $14.698 $15.166 $29.863 Tem $21.554 $22.543 $44.097 Tem $15.088 $15.780 $30.868 Au $20.887 $21.778 $42.665 Au $14.621 $15.245 $29.866 Eyl $21.667 $22.766 $44.433 Eyl $15.167 $15.936 $31.103 Eki $23.445 $24.667 $48.112 Eki $16.412 $17.267 $33.678 Kas $17.665 $21.008 $38.673 Kas $12.366 $14.706 $27.071 Ara $15.665 $17.665 $33.330 Ara $10.966 $12.366 $23.331
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Appendix
Appendix Table: Contribution Margin Contribution Margin Sales Direct Cost of Sales Other Variable Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Marketing Expense Budget Advertisements Printed Material Other Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales Oca $36.419 $25.493 $0 -----------$25.493 $10.926 30,00% Oca $600 $400 $100 -----------$1.100 3,02% $9.826 26,98% ub $24.179 $16.925 $0 -----------$16.925 $7.254 30,00% ub $450 $0 $125 -----------$575 2,38% $6.679 27,62% Mar $33.135 $23.195 $0 -----------$23.195 $9.941 30,00% Mar $750 $0 $100 -----------$850 2,57% $9.091 27,43% Nis $33.122 $23.185 $0 -----------$23.185 $9.937 30,00% Nis $850 $0 $125 -----------$975 2,94% $8.962 27,06% May $38.663 $27.064 $0 -----------$27.064 $11.599 30,00% May $400 $0 $50 -----------$450 1,16% $11.149 28,84% Haz $42.662 $29.863 $0 -----------$29.863 $12.799 30,00% Haz $450 $400 $65 -----------$915 2,14% $11.884 27,86% Tem $44.097 $30.868 $0 -----------$30.868 $13.229 30,00% Tem $550 $0 $80 -----------$630 1,43% $12.599 28,57% Au $42.665 $29.866 $0 -----------$29.866 $12.800 30,00% Au $600 $0 $90 -----------$690 1,62% $12.110 28,38% Eyl $44.433 $31.103 $0 -----------$31.103 $13.330 30,00% Eyl $800 $0 $50 -----------$850 1,91% $12.480 28,09% Eki $48.112 $33.678 $0 -----------$33.678 $14.434 30,00% Eki $900 $0 $25 -----------$925 1,92% $13.509 28,08% Kas $38.673 $27.071 $0 -----------$27.071 $11.602 30,00% Kas $200 $0 $0 -----------$200 0,52% $11.402 29,48% Ara $33.330 $23.331 $0 -----------$23.331 $9.999 30,00% Ara $225 $0 $0 -----------$225 0,68% $9.774 29,32%
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