Transcript Marketing Plan

Personal Financial Advisor
Marketing Plan
Wise Money
Marketing Plan Components
1.
2.
3.
4.
Situation Analysis
Marketing Strategy
Financials
Implementation & Control
1. Situation Analysis
Wise Money is a start-up company co founded by a group
of financial specialists to provide professional financial
consultation for individuals and organizations.
Being a new comer to the market demands exceptional
effort from the marketing department in building the
desired company and product awareness.
The company is now in the process of launching its first
product, which is an internet-based software that
provides personal financial advisory services to
individuals.
1.Situation Analysis
Market Needs
Several Factors have increased individuals' need for financial advice:
Privatization program-New market entrants
Stock Market controversies
Real Estate Market controversies
Inflation Rates fluctuations
1.Situation Analysis
Target Markets
• The new product, the Personal Financial Advisor (PFA), is created
for all individuals having the ability to raise savings that exceeds
their short-term basic needs, and have basic computer& Internet
Skills
• Estimated Target market size: 785,500 prospect
• Target Market demographics
• Target Market behavior factors
1.Situation Analysis
Concept Testing
Marketing Research, Questionnaire
Questionnaire objectives were to:
• To test the acceptance of the target market to the new
product concept
• To estimate the product's customer perceived value
1.Situation Analysis
Target Markets Trends & Growth
• Financial Market rapid development
• Increasing Income
• Increasing number of Internet users
1.Situation Analysis Competition:
The product will be the first of its kind in Egypt and that sets the
company to be the pioneer and market leader in the Egyptian
market. Currently, there is small competition to the product in the
local market that comes from:
• Financial advice and wealth management services provided by
banks and some big financial institutions, mainly to upper class
individuals.
• Stock market trading advice offered now by most of the security
brokerage company
1.Situation Analysis
SWOT Analysis:
Strengths:
Weaknesses:
•First Mover advantages (Leadership)
•Superior industry experience and technical skills
of company staff
•PFA Product offers special benefits that are
unmatched by any competitor:
1. Unbiased advice: The Company is not
involved in any activities related to the trade,
management or promotion of any of the
tangible assets or securities
2. Total confidentiality for customers
3. Offers a complete and comprehensive
solution
4. Ability to use the product at any time and
from any place
•Initial difficulties in creating company awareness
•New product category, difficulties in creating
concept and product awareness
•The PFA product does not allow personal
interface to customer
Opportunities:
Threats:
•Continuous and fast increase in breadth and
sophistications of investment alternatives which
will increase the need for the PFA
•High growth rate for population and GDP per
capita, which is translated to high potential
growth rate for the PFA product
•Many opportunities for cross selling
•High uncertainty in estimating the market's
adoption rate for the new product idea
•Threats of new entrants and product imitation
•PFA is strongly dependant on a specific media,
the Internet.
2. Marketing Strategy:
Strategic Business unit Mission:
•
•
•
Our mission is to help individuals make better financial decisions by
providing them with the right tools, information, and guidance on how to
protect and grow their savings and achieve their specific financial goals.
Our only way to gain the trust of our customers and accomplish our mission
is to accomplish it with integrity.
Our core strength lies in our knowledge, professionalism, and dedication to
customer satisfaction.
Together; Management and employees we work for the preservation and
enhancement of our customers' and the society's well-being.
Our Vision is to become the benchmark for financial advisors in Egypt
2. Marketing Strategy:
Marketing objective:
To become the market leader in the financial advisory industry in Egypt within
the next five years.
Increase Customer satisfaction rate by 3% each year.
Number of product subscribers reaches 100,000 in 2014.
Establish a strong company image of industry leadership and integrity
Financial Objectives:
Increase profit margin to 30% within the next five years
Increase return on Equity by 10% each year for the next five years
2.Marketing Strategy:
Segmentation:
lower
class
lower
middle
class,
middle
class,
upper
middle
class,
Target Market Segments
Middle
class,
Upper
middle
class
upper
class
2.Marketing Strategy:
Positioning
Wise Money will position itself as the leader in the investment and
financial advisory industry in the Egyptian market.
Marketing Strategy:
Marketing Mix-Product:
Core Benefits:
•Financial Goal Setting
•Basic cash reserves and insurance needs
•Knowledge enrichment
•Asset Allocation
•Security Selection
Additional Benefits
Product Design
Services
Marketing Strategy:
Marketing Mix-Price:
Strategy: Market Penetration Pricing
Pricing Method:
• Prices were set based on two factors:
• Upper limit for price based on customer perceived value of the
product, estimated from market research.
• A lower limit for price was set based on product's cost plus a 15%
margin.
Pricing Options: one-year subscription for 99 EGP, Two-year
subscription for 180 EGP
Marketing Strategy:
Marketing Mix-Place:
Multiple Sales and Distribution Channels:
Internet, Company Sales offices, Telephone
Marketing Mix-Promotion:
Communication Objectives
Creating company, product category, and brand awareness
Creating superior company image
Communication Channels:
Company web site, TV and Radio ads, Seminars, Newspapers and
specialized magazines, Direct Marketing through brochures, mailings,
and Email
3.Financials
Break-even Analysis:
FC: Annual Total Fixed Cost : 1,310,000 EGP
VC: Annual Variable Cost per unit subscription = 56.4 EGP
P: Price of annual subscription= 99 EGP
N: Number of subscribers per year at the break even point.
At breakeven: FC+ (N X VC) = NP
Number of subscribers per year at break even point = N= 30751 subscriber
From Sales Forecast breakeven condition is expected at 3rd quarter 2011.
3.Financials
Sales and Expenses Forecast
(thousands
EGP)
Sales
2010
2011
2012
2013
2014
2500
5000
7500
9500
10500
Expenses
2720
4130
5380
6680
7240
Net Income
(220)
870
2120
2820
3260
Profit Margin
(8%)
17.4%
28.3%
29.7%
31%
12000
10000
8000
Sales
6000
Expenses
4000
Net Income
2000
0
-2000
2010
2011
2012
2013
2014
3.Financials
Marketing Expense Budget:
Budget in thousands 2010
EGP
2011
2012
2013
2014
Seminars
120
120
80
60
60
Web Site
20
20
20
20
20
TV and Radio
100
100
80
60
60
Journals and
Magazines
20
20
20
20
20
Direct selling (mail
and E-mail)
30
40
50
60
70
290
300
250
220
230
6
3.33
2.3
2.2
Total
Percentage of Sales 11.6
4. Implementation and Controls:
Milestone
Market Testing
Schedule
1/1/2010 to 1/2/2010
Budget
10,000
Responsibility
Marketing
Research team
Web Site Advertisement
1/1/2010 and on-going 20,000 Marketing
department and
outside
consultant
Seminars
Every two months
120,000 Marketing
department
Media Advertising campaign 1/1/2010 and on-going 120,000 Marketing
department
Initiate direct selling program 1/2/2010 and-ongoing 30,000 Marketing
Department
Building a distribution team
1/1/2010 to 15/2/2010 20,000 Marketing
Department
Product Launch
1/3/2010
Marketing
Totals
320,000
Controls
Customer
Satisfaction
Customer
complaints &
Company
response
Customer
defection rate
& reasons for
customers
loss
Monthly
number of new
subscribers
Monthly
Expenses
Open Discussion – Thank you
Ahmed Medhat
Ahmed Osman
Mohamed Ayman
Closing
Thank you