Transcript MarketingPlan - University of Colorado Boulder

Business Plan Preparation
Frank Moyes
Leeds College of Business
University of Colorado
Boulder, Colorado
Marketing Strategy
Tonight
 Marketing Strategy
 Revenue Model
 Customer surveys
 Margins – didn’t cover last week
 In the Fire – Industry Analysis & Model Company
 Hand-in
10 Call Reports
Competitive matrix
Model company description
Marketing Strategy
Next Week
 Operations Plan
 Development Plan
 Review status of plans
 Hand-in: Customer Survey questionnaire
 Wednesday Office Hours two weeks 3:00 to 4:30
Marketing Strategy
Business Plan Elements
 Executive Summary
 Company Overview
 Market & Industry Analysis
 Product/Service Description
Marketing Plan
 Operations Plan
 Development Plan
 Management
 Competitive Advantage
 Financial Plan
 Funding
Marketing Strategy
Marketing Plan Objectives
 Build on Market & Industry Analysis
 Define the strategies & programs to exploit the
opportunity
Marketing Strategy
Marketing Plan Outline
 Customer Research
 Target Market Strategy
 Channel Strategy
 Positioning
 Product/Service Strategy
 Pricing Strategy
 E-commerce
 Communications Strategy
 Sales Strategy
 Revenue Model
Marketing Strategy
Customer Research
 Show your results
Questionnaire - qualitative 20 people
Surveys – walk-up, mailed, email, on-line
 Prove
You solve a problem
Features are wanted
Customer understand the benefits
Customer will pay your price
 Don’t cook the books
Marketing Strategy
Target Market Strategy
 Consumers vs. purchasers
 Profile of the customers you will serve
Consumer: demographics, psychographics & values
Business: industry, size, location, purchase decision
 How will you overcome brand loyalty? What will cause
customers to switch?
 Future markets
Marketing Strategy
How Do Customers Make Decisions?
 Decision making process – where, when & how
 Initiator, Influencer, Decider, Purchaser & User
 Identify criteria used to make decisions
Criteria may be different than your features
 Customers buy benefits
Marketing Strategy
Channel
 Describe and justify the distribution channels
 Potential channels
Distributors, wholesalers, retailers
OEM’s & VAR’s
E-commerce
 Describe how you will gain access to the channels
Identify specific companies
Decision making process
 Delivery to your customers, eg UPS is not the channel
Marketing Strategy
Positioning
 What must target customer believe about you
 Positioning is in the mind of the customer, relative to the
competition
 “perceptions, impressions and feelings”
 How are you unique & different?
Marketing Strategy
Positioning Strategy
 Positioning statement
Describes market/industry, target customer, important
features, benefits
Use your Value Proposition
 What features & benefits are most persuasive to get the
customer to act?
 Other considerations
Name of your company
Company characteristics – essence of personality, tone &
manner
Marketing Strategy
Attribute Map
Attribute 1
Competitor 3
You
Competitor 1
Competitor 2
Marketing Strategy
Attribute 2
Hot Chocolate
Flavour
Brown Palace
HC
Ski Resort
cafe
Hershey
packets
Marketing Strategy
Convenience
Hot Chocolate
“Coolness”
HC
Ski Resort
cafe
Hershey
packets
Brown Palace
Marketing Strategy
Price
Product/Service Strategy
 Not the description
 Product/service roll out
Initial product/services
Future product/services
 Enhance the product/service with operations &
service
 Actions to sustain competitive advantage
New features & benefits
New technology
New process
Marketing Strategy
Pricing Strategy
 Describe and justify your pricing strategy
 Provide evidence that your target market will accept
your price
 Position your pricing relative to current and potential
competition
 Low price usually is NOT a good strategy!
Measure of management
Marketing Strategy
What Are the Pricing Methods?
 Commodity pricing
 Set by the market
 Supply and demand
 Seasonality & perishability
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Competition
Value pricing - how much is customer willing to pay?
Payback period – depends on impact on company profit
Rule of thumb – Keystone
Introductory low price to get customers to use
Cost plus – markup
Razor & razor blade
A la carte
Marketing Strategy
Communications
 How you will communicate with current and potential
customers?
Advertising – paid advertising newspapers, magazines, TV,
internet
Public relations – articles in paper, journals, blogs, websites
Printed materials – flyers, brochures
Performances, concerts, exhibitions
Exhibitions
 Why is this the most effective strategy?
Be imaginative! Be a guerilla!
Marketing Strategy
Guerilla Examples I
 New restaurant invites local hairdressers for free meal just after
opening
 Mattress retailer has sleep over advertising on the ceiling of a
retail store
 News is created so it will be covered in local newspaper
 Computer store does computer training for underprivileged kids
 Owner makes bold predictions, does something unusual
 Articles are written by the entrepreneur for
newspapers
Mike Morris, Syracuse University
Marketing Strategy
More Guerilla Examples II
 Reciprocal advertising: two businesses mention one another in
their ads
 Store offers discount card/coupon that appreciates in value each
time it is used
 Coupon that is worth something different each time it is used
 Theatre places speakers outside front of facility with movies
soundtracks playing; bakery purposely lets smells waft into
customer passageway of mall
Mike Morris, Syracuse University
Marketing Strategy
More Examples III
 Bowling alley charges based on number of bowling pins
customer knocks down
 Bicycle retailer puts promotional tags on bike racks around town
 Day care center adds cameras and streaming videos so parents
can see how children are treated
 Flower shop with lack of visibility at their location decorates
popular park and some small cafes in the area with creative and
simple flower arrangements
Mike Morris, Syracuse University
Marketing Strategy
Sales Strategy
 How will you get orders?
 Personal selling
 Online purchasing
 TV infomercials
 Direct mail
 800 telephone
 Who will do the selling?
 An internal sales force
 Field sales force
 Manufacturer's reps
 Telephone solicitors
Marketing Strategy
 How will you recruit,
train, and compensate
our sales force?
 How will you support the
sales effort?
 Internal staff
 Service operations
Revenue Model
Marketing Strategy
Two Approaches
Top down – market penetration & timing
Bottom up – pipeline, revenue by customer
Marketing Strategy
Revenue Model Variables
 Market potential - number of customers, transactions or units, purchases
 Size & growth
 Market share - penetration rate
 Product/Services offered
 Roll-out strategy
 Range & mix
 New Products/Services
 Obsolescence
 Frequency of purchase – per day/week/month
 Capacity Utilization – per time period, event
 Prices
 Price per customer, transaction or unit
 Average revenue per customer or transaction
 Channel strategy - discount
Marketing Strategy
Revenue Model (Bottom-up)
 Identify specific customers
Identify decision maker
 Determine
Annual purchases today & future
Who purchase from & level of satisfaction
 What do you need to do to get an order?
If you meet the criteria, how much business can you expect?
Marketing Strategy
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Margins
 % Gross Profit Margin
 % Contribution Margin
 % Net Profit Margin
 % Operating Expenses
Marketing Strategy
Revenue – COG’s
Revenue
Revenue – Variable Costs
Revenue
Net Earnings
Revenue
Sales, General & Admin
Revenue
Margins %
Gross Profit
SGA
Net Profit
Gross Profit
SGA
Net Profit
Intel
2005
59.4
16.4
22.3
Dell
2005
17.8
9.3
6.4
P & G Whole Fds
2005
2005
51.4
35.1
28.2
27.2
12.7
2.9
HP
2005
23.6
16.6
2.8
Gen Motors
2005
2004
11.2
17.3
3.6
2.4
-5.7
1.4
Kroger Amazon
2005
2005
24.8
24.0
19.3
17.5
1.6
4.2
Merck
2005
76.6
43.4
21.0
Toyota
Corp
2005
19.5
4.8
6.5