Writing a Marketing Plan
this is a sample of a marketing plan that was developed to gain grant aided funding for a company designing and manufacturing computer related items.
The application was successful and the company gained the funding.
It also shows the structure of a simple marketing plan and the associated costings required.
Company X International is a new company established to exploit the product design talents of Owner X and Owner Y. The company has developed a number of computer related accessories of which Product X is the flagship product.
With successful marketing, Company X would be expected to develop their reputation within the computer accessory industry and also provide the working capital to continue development of the current, and future, ranges of products.
Company X is a unique computer related product designed and manufactured within the Barnsley Borough. It consists of a computer mouse mat and an integrated dust reduction cover, which is designed to keep the mouse clean and the operator's hand warm.
With the rapid expansion of home and business computers and accessories and the related increase in relatively expensive Internet Scrolling Mice, this product is seen as both a fashion accessory and a cost saving purchase for the serious user.
The goal is to achieve sales of 45,000 units (to a potential 10 million computer users) in year one. This would achieve a gross profit of £172,500. Graphs are attached to indicate the Forecast Sales by Unit and Revenue and a Forecast Profit and Loss Account for the firs trading year.
It is anticipated that competitors will rapidly join the market; therefore all activities are front ended for maximum effect. The pricing policy has been decided on to offer the product at a relatively high price until all customers who need the product at any price will buy it (skimming). As competition enters the market it may then be possible to reduce prices based on larger production quantities to expand the customer base.
Information Communication Technology (ICT) is now considered to be the single fastest and most potentially profitable market sector in existence. With the current Government, and European, thrust towards bringing ICT to the person on the street, it is anticipated that 50% of all homes in the UK will have a computer within the next 2 to 3 years.
It is Government Policy that all children in schools will have access to computers and the Internet in the foreseeable future.
Since the launch of the iMac, some 2 to 3 years ago, it has become fashionable for manufacturers to produce ICT equipment in bright translucent colours and the trend has extended to all forms of accessories from printers (Epson in particular) to Scanners (Agfa Snapscan with 8 interchangeable handles to 'match your mood and PC'
The ICT market represents approximately £2,000,000,000 sales on equipment alone during the next 2 years in the UK. Unfortunately many of the smaller companies that set up in business to take advantage of this market survive for less than 18 months due to the low margin on reselling, the competition that already exists, pricing policies of competitors, the rapidly changing technology which dictates fast moving lines and the broad band similarity of many of the products offered.
Company X is in a position to take advantage of the ICT market for the following reasons
A unique, design registered product that has little or no direct competition if marketed aggressively (the standard mouse mat does not give the retailer or consumer the same benefits)
Relatively high initial margins and low cost of manufacture. This can allow large amounts of profit to be generated quickly with relatively low market penetration.
Potential customers for the Company X fall in to 3 different areas
Features and Benefits of Product X
Benefits of Product X would be perceived as different depending on the profile of potential customer, therefore 3 areas should be considered:
For the private user the main perceived benefits would be increased comfort, convenience and work efficiency ñ however the fact that Product X is a unique product that would allow the customer to be first to own one should not be underestimated
The primary benefits offered by Product X to the business user are increased comfort, convenience and work efficiency. The comfort benefit relates to the way in which the housing would provide the user with a means of protecting his (or her) hand from draughts and other environmental conditions that might cause cramping or other forms of discomfort, particularly when the mouse is used over any extended period of time. The convenience of the Product X is the speed of assembly and ease of use ñ it is in fact no more difficult to assemble and use than a standard mouse mat. Increased efficiency comes from the protection offered to hand (from draughts) and mouse (from dust and environment). It is not unusual to find that a mouse in a working environment begins to stick and jerk after as little as a few weeks, unless the operator is aware of how to cure this it may involve time and money by calling in a computer technician (in some cases the operator simply continues without complaint assuming this is the norm). Company X is designed to prevent this.
The main perceived benefits to the Manufacturer or re-seller are the ability of the Company X to advertise and promote their product or service and the uniqueness of the design itself, which provides a novelty value to the end customer.
Because of the wide range of potential customers 'test marketing' should be carried out through a variety of media.
Timescale for Marketing
By the very nature of the product, the ability of any potential competition to launch a similar product and the need for fast penetration of the market place, all activities will be front-ended and it is intended that all 3 groups of potential customers be approached at the same time.
Planning and payment for the September Exhibition will begin in May 2000 and it is intended to advertise in PC Direct, Thomson Local and Innovations with immediate effect.
Direct Mail will begin immediately approval for the Marketing Plan has been given.
Initial costings are as follows:
TOTAL MARKETING BUDGET FOR 2000 = £56584.08 including relevant VAT