Assignment: Strategic Business Planning
Pegasus86
Business_Plan_Guide-_Components_of_a_Marketing_Audit.pdf
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
Strategic Planning
Vision Company Mission
Each SBU/Product Line/Product
Objectives
Measurable Quantifiable Obtainable Based on Market/Resource
Analysis and Direction of Owners
Market Analysis
Needs of Consumers Market Segmentation Market Positioning SWOT Environment Analysis
Resource Analysis
Company Physical Assets Company Financial Assets Knowledge Assets Contact Network Competitive Advantages
Strategic Approach: To reach Objectives
Who, What, Where, When
Operations Plan:
The detailed plan to implement Strategy Schedule of Activities and who will be
doing them!
Review Plan: Did you meet your objectives? Were all area outcomes as planned? - If not
what should be done to change? Has the Market Environment Changed?
Market Plan
Promotions and Communications
Sales and Distribution
Environmental
Scanning
Networking
Resource Plan
Accounting Management
Capital Structure Management
Legal Management
Acquisition Mgt
Exit Plans
Management Plan: Management Reporting Structure Human Relations Management Training and Development
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
Business Plan Guide I Executive Summary
A. Description of the Business Concept and the Business B. The Opportunity and Strategy C. The Target Market and Projections D. The Team E. The Offering
II The Industry and the Company and its Product(s) or Service(s) A. The Industry B. The Company and the Concept C. The Product(s) or Services(s) D. Entry and Growth Strategy
III Market Research and Analysis A. Customers B. Market Size and Trends C. Competition and Competitive Edges D. Estimated market Share and Sales E. Ongoing Market Evaluation
IV The Economics of the Business A. Gross and Operating Margins B. Profit Potential and Durability C. Fixed, Variable, and Semi-variable Costs D. Months to Break-even E. Months to Reach Positive Cash Flow
V Marketing Plan VI Design and Development Plans
A. Development Status and Tasks B. Difficulties and Risks C. Product Improvements and New Products D. Costs E. Proprietary Issues
VII Manufacturing and Operations Plan A. Operating Cycle B. Geographical Location C. Facilities and Improvements D. Strategy and Plans E. Regulatory and Legal Issues
VIII Management Team A. Organization B. Key Management Personnel
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
C. Management Compensation and Ownership D. Other Investors E. Employment and Other Agreements and Stock Options and Bonus Plan F. Board of Directors G. Other Shareholders, Rights, and Restrictions H. Supporting Professional Advisors and Services
IX Overall Schedule X Critical Risks, Problems, and Assumptions XI The Financial Plan
A. Actual Income Statements and Balance Sheets B. Pro Forma Income Statements C. Pro Forma Balance Sheets D. Pro Forma Cash Flow Analysis E. Break-even Chart and Calculations F. Cost Control G. Highlights
XII Proposed Company Offering A. Desired Financing B. Offering C. Capitalization D. Use of Funds E. Investor’s Return
XIII Appendices
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
Marketing Plan Outline 1.0 Executive Summary
High Level summary of the overall marketing plan 2.0 Situation Analysis
Brief description of the company and the environment situation that presents the opportunity for strategic planning
2.1 Company Analysis
2.1.1 Goals 2.1.2 Focus 2.1.3 Culture 2.1.4 Positives 2.1.5 Negatives 2.1.6 Market Situation 2.1.7 Market Share 2.1.8 Image Analysis
2.2 Competitor Analysis 2.2.1 Market Positioning 2.2.2 Strengths 2.2.3 Weaknesses 2.2.4 Market Shares
2.3 Customer Analysis 2.3.1 Numbers 2.3.2 Types (Demo) 2.3.3 Value Drivers 2.3.4 Decision Process 2.3.5 Concentration of Customer base for specific products 2.3.6 Customer Learning mediums
2.4 Collaborators – if applicable 2.4.1 Subsidiaries 2.4.2 Joint Ventures 2.4.3 Distributors
2.5 Environment PEST Analysis Political and Legal Environment Economic Environment Social and Cultural Environment Technology Environment
2.6 SWOT Analysis A SWOT analysis of the business environment is an organization of the environmental factors including: The firm’s internal attributes classified as Strengths and Weaknesses
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
The external environment presented as Opportunities and Threats 3.0 Market Segmentation
3.1 Segment 1 3.1.1 Description 3.1.2 Percent of Sales 3.1.3 What they want 3.1.4 How they use the product 3.1.5 Support Requirements 3.1.6 How to reach them 3.1.7 Price sensitivity
3.2 Segment 2 3.2.1 Description 3.2.2 Percent of Sales 3.2.3 What they want 3.2.4 How they use the product 3.2.5 Support Requirements 3.2.6 How to reach them 3.2.7 Price sensitivity
3.3 Segment 3 3.3.1 Description 3.3.2 Percent of Sales 3.3.3 What they want 3.3.4 How they use the product 3.3.5 Support Requirements 3.3.6 How to reach them 3.3.7 Price sensitivity
4.0 Alternative Marketing Strategies
List and discuss the alternatives that were considered before arriving at the recommended strategy. Alternatives might include discontinuing a product, re-branding, positioning as a premium or value product, etc.
5.0 Selected Market Strategy
Discuss why the strategy was selected, then the marketing mix decisions – (product, price, promotion, and distribution) 5.1 Product
The product decisions should consider the products advantages and how they will be leveraged. Product decisions should include 5.1.1 Brand name 5.1.2 Quality 5.1.3 Scope of the Product line 5.1.4 Warranty 5.1.5 Packaging 5.1.6 Extended services
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
5.2 Price Discuss pricing strategy, expected volume, and decisions for the following pricing variables: 5.2.1 List price 5.2.2 Discounts 5.2.3 Bundling 5.2.4 Payment terms and financing options 5.2.5 Leasing Options 5.2.6 Other associated costs
5.3 Promotion Discuss the strategy to reach the target markets including: 5.3.1 Advertising, including how much and which media 5.3.2 Public Relations 5.3.3 Promotional programs 5.3.4 Budget; including break-even for additional spending 5.3.5 Projected results of the promotional programs
5.4 Distribution Decision variables include 5.4.1 Distribution Channels, such as direct, distributors/intermediaries, retail 5.4.2 Motivating the Channel – for example distributor margins 5.4.3 Criteria for evaluating distributors 5.4.4 Locations 5.4.5 Logistics, including transportation, warehousing, and order fulfillment
6.0 Short & Long Term projections
The selected strategy’s immediate effects, expected long-term results, and any special actions required to achieve them. This section may include forecasts of revenues and expenses as well as the results of a break-even analysis.
7.0 Conclusion Appendix
Exhibits This would include calculations of market size, commissions, profit margins, break-even analysis etc.
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
Customer Analysis Model 1. Who are our customers?
a. Who are the purchasers? b. Do the purchasers differ from the users? c. Who influences the purchases? d. Who is financially responsible for the purchase?
2. What do our customers do with our product(s)?
a. What items are purchased, in what quantities and in what combinations? b. What means of payment are used to make the purchase such as, cash, check, terms, credit
card, company credit plan? c. How are the items used, and for what benefit? d. What other items are used in the consumption process?
3. Where do our customers make their purchases?
a. From what types of channel members are the items purchased? b. What percentages are bought from each type of location, and are there any key trends in this
area? c. What means of delivery are being utilized by our customers?
4. When do our customers make their purchases?
a. Are there peaks and valleys in purchase volumes in terms of a day, day of week, month or season of year?
b. What percentages of items are sold during promotional periods? 5. Why do our customers select our products?
a. What basic needs are being met? b. Are any needs being left unsatisfied or under-satisfied? c. What criteria are they using to make their choice? d. What role does brand/store loyalty play in their purchase decision?
Competitive Analysis Progress 1. Identifying primary (brand), secondary (product and generic), and potential competitors. Key total
budget competitors should also be identified.
2. Understanding competitors by ascertaining their size, growth, profitability, objectives, and strategies. 3. Assessing competitors’ strengths and weaknesses across all functional areas, plus the senior
management team, sources of supply, and their customer base. 4. Focusing the analysis on competitors marketing capabilities in terms of product, distribution,
promotion, and price.
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
5. Estimating competitors’ most likely strategies and responses under different environmental
situations, and under the organizations own marketing plans.
Marketing Decision Support Systems
1. Does the marketing strategy fit the marketing objectives and the corporate mission?
2. Is there an appropriate allocation of resources to the components of the marketing program? 3. Does the marketing organization structure and the organizational culture facilitate communications
to get the job done by and among the various departments. 4. Is there balance in the product portfolio and brand mix? 5. What is the success rate of the product development system? 6. How effective are the distribution channels in reaching target markets when compared with
alternative channels and competition? 7. Are information flows to and from channel members adequate and timely? 8. How well do the marketing functions interface with other corporate functions where sequence is
relevant in the value adding steps? 9. Does the marketing intelligence system produce accurate and timely reports? 10. Are line marketing managers actively integrated into the marketing planning system? 11. Are marketing costs in line with results and competitive spending? 12. Are the marketing functions and its various departments taking full advantage of new innovations in
technology, communications, and management development?
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
Components of a Marketing Audit Marketing Environment Audit
This audit calls for analyzing major macro-environment forces and trends in the key components of the company’s task environment: markets, customers, competitors, distributors, and dealers, suppliers, and facilitators.
Macro-environment
A. Demographic 1. What major demographic developments and trends pose opportunities or
threats to this company? 2. What actions has the company taken in response to these developments and
trends? B. Economic
1. What major developments in income, prices, savings, and credit will affect the company.
2. What actions has the company been taking in response to these developments and trend?
C. Ecological 1. What is the outlook for the cost and availability of natural resources and energy
needed by the company? 2. What concerns have been expressed about the company’s role in pollution and
conservation, and what steps has the company taken? D. Technological
1. What major changes are occurring in product technology? In process technology? What is the company’s position in these technologies?
2. What major generic substitutes might replace this product or service? E. Political
1. What laws are being proposed that could affect marketing strategy and tactics? 2. What federal, state, and local actions should be watched? What is happening in
the areas of pollution control, equal employment opportunity, product safety, advertising, price control, and so forth, that affects marketing strategy?
F. Cultural 1. What is the public’s attitude toward business and toward the products produced
by the company? 2. What changes in consumer and business lifestyles and values have a bearing on
the company?
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
Task Environment
A. Markets
1. What is happening to market size, growth, geographical distribution, and profits? 2. What are the major market segments?
B. Customers 1. How do customers and prospects rate the company and its competitors on
reputation, product quality, service, sales force, and price? 2. How do different customers segments make their buying decisions?
C. Competitors 1. Who are the major competitors? What are their objectives and strategies, their
strengths and weaknesses, their sizes and market shares? 2. What trends will affect future competition and substitutes for this product?
D. Distribution and Dealers 1. What are the main trade channels for bringing products to customers? 2. What are the efficiency levels and growth potentials of the different trade
channels? E. Suppliers
1. What is the outlook for the availability of key resources used in production? 2. What trends are occurring among suppliers in their pattern of selling?
F. Facilitators and Marketing Firms 1. What is the cost and availability outlook for transportation services? 2. What is the cost and availability outlook for warehousing facilities? 3. What is the cost and availability outlook for financial resources? 4. How effective are the company’s advertising agencies and marketing research
firms? G. Publics
1. What publics represent particular opportunities or problems for the company? 2. What steps has the company taken to deal effectively with each public?
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
Marketing Strategy Audit
This audit calls for reviewing the company’s marketing objectives and marketing strategy to appraise how well these are adapted to the current and forecasted marketing environment. A. Business Mission
1. Is the business mission clearly stated in market-oriented terms? Is it feasible? B. Marketing Objectives and Goals
1. Are the corporate and marketing objectives stated in the form of clear goals to guide marketing planning and performance measurement?
2. Are the marketing objectives appropriate, given the company’s competitive position, resources, and opportunities?
C. Strategy 1. Is management able to articulate a clear marketing strategy for achieving its
marketing objectives? Is the strategy convincing? Is the strategy appropriate to the stage of the product life cycle, competitors’ strategies, and the state of the economy?
2. Is the company using the best basis for market segmentation? Does it have sound criteria for rating the segments and choosing the best ones? Has it developed accurate profiles of each target segment?
3. Has the company developed a sound positioning and marketing mix for each target segment? Are marketing resources allocated optimally to the major elements of the marketing mix - i.e. Product quality, service, sales force, advertising, promotion and distribution?
4. Are enough resources or too many resources budgeted to accomplish the marketing objectives?
Marketing Organization Audit
This audit calls for evaluating the capability of the marketing organization implementing the necessary strategy for the forecasted environment.
A. Formal Structure
1. Does the marketing officer have adequate authority over and responsibility for company activities that affect he customer’s satisfaction?
2. Are the marketing activities optimally structured along functional, product, end- user, and territorial lines?
B. Functional Efficiency 1. Are there good communication and working relations between marketing and
sales?
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
2. Is the product management system working effectively? Are product managers able to plan profits or only sales volume?
3. Are there any groups in marketing that need more training, motivation, supervision, or evaluation?
C. Interface Efficiency 1. Are there any problems between marketing and manufacturing, R&D,
purchasing, finance, accounting, and legal that need attention? Marketing Systems Audit
This audit involves examining the quality of the company’s systems for analysis, planning, and control.
A. Marketing Information Systems
1. Is the marketing intelligence system producing accurate, sufficient, and timely information about marketplace developments with respect to customers, prospects, distributors and dealers, competitors, suppliers, and various publics?
2. Are company decision makers asking for enough marketing research, and are they using the results?
3. Is the company employing the best methods for market and sales forecasting? B. Marketing Planning Systems
1. Is the marketing planning system will conceived and effective? 2. Is sales forecasting and market potential measurement soundly carried out? 3. Are sales quotas set on a proper basis?
C. Marketing Control Systems 1. Are the control procedures adequate to ensure that the annual plan objectives
are being achieved? 2. Does management periodically analyze the profitability of products, markets,
territories, and channels of distribution? 3. Are marketing costs periodically examined?
D. New Product Development System 1. Is the company well organized to gather, generate, and screen new product
ideas? 2. Does the company do adequate concept research and business analysis before
investing in new ideas? 3. Does the company carry out adequate product and market testing before
launching new products? Marketing Productivity Audit
This audit calls for examining the profitability of different marketing entities and the cost effectiveness of different marketing expenditures.
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
A. Profitability Analysis 1. What is the profitability of the company’s different products, markets,
territories, and channels of distribution? 2. Should the company enter, expand, contract, or withdraw from any business
segments and what would be the short and long run profit consequences? B. Cost Effectiveness Analysis
1. Do any marketing activities seem to have excessive costs? Can cost reducing steps be taken?
Marketing Function Audits
These audits consist of in-depth evaluations of major marketing mix components, namely, product, price, distribution, sales force, advertising, promotion, and publicity.
A. Products
1. What are the product-line objectives? Are these objectives sound? Is the current product line meeting the objectives?
2. Should the product line be stretched or contracted upward, downward, or both ways?
3. Which products should be phased out? Which products should be added? 4. What is the buyers’ knowledge and attitudes toward the company’s and
competitors’ product quality, features, styling, brand names, etc.? What areas of product strategy need improvement?
B. Price
1. What are the pricing objectives, policies, strategies, and procedures? To what extent are prices set on cost, demand, and competitive criteria?
2. Do the customers see the company’s prices as being in line with the value of its offer?
3. What does management know about the price elasticity of demand, experience curve effects, and competitors’ prices and pricing objectives?
4. To what extent are price policies compatible with the needs of distributors and dealers, suppliers, and government regulations?
C. Distribution
1. What are the distribution objectives and strategies? 2. Is there adequate market coverage and service? 3. How effective are the following channel members: distributors, dealers,
manufacturer’s representatives, brokers, agents, etc.? 4. Should the company consider changing its distribution channels?
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
D. Advertising, Sales Promotion, and Publicity 1. What are the organization’s advertising objectives? Are they sound? 2. Is the right amount being spent on advertising? How is the budget determined? 3. Are the ad themes and copy effective? What do customers and the public think
about the advertising? 4. Are the advertising media well chosen? 5. Is the internal advertising staff adequate? 6. Is the sales promotion budget adequate? Is there effective and sufficient use of
sales promotion tools such as samples, coupons, displays, sales contests? 7. Is the publicity budget adequate? Is the public relations staff competent and
creative? E. Sales Force
1. What are the organization’s sales force objectives? 2. Is the sales force large enough to accomplish the company’s objectives? 3. Is the sales force organized along the proper principles of specialization
(territory, market, product)? Are there enough (or too many) sales managers to guide the field sales representatives?
4. Does the sales compensation level and structure provide adequate incentive and reward?
5. Does the sales force show high moral, ability, and effort? 6. Are the procedures adequate for setting quotas and evaluating performances? 7. How does the company’s sales force compare to competitors’ sales forces?
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
Research Activities to Update a Marketing Plan
A. Advertising Research
1. Motivation Research 2. Copy Research 3. Media Research 4. Studies of Ad Effectiveness 5. Studies of Competitive Advertising
B. Business Economics and Corporate Research
1. Short Range Forecasting up to 1 year 2. Long Range Forecasting over 1 year 3. Studies of Business Trends 4. Pricing Studies 5. Plant and Warehouse Location Studies 6. Acquisition Studies 7. Export and International Studies 8. MIS Systems 9. Operations Research 10. Internal Company Employees
C. Corporate Responsibility Research
1. Consumers “Right to Know” Studies 2. Ecological Impact Studies 3. Studies of Legal Constraints on Advertising and Promotion 4. Social Values and Policies Studies
D. Product Research
1. New Product Acceptance and Potential 2. Competitive Product Studies 3. Testing of Existing Products 4. Packaging Research: Design or Physical Characteristics
E. Sales and Market Research
1. Measurement of Market Potentials 2. Market Share Analysis 3. Determination of Market Characteristics 4. Sales Analysis 5. Establishment of Sales Quotas, Territories 6. Distribution Channel Studies
ENTREPANALYSIS SSMMEE SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT Strategic Counseling for the Small and Medium Enterprise
100 Gentry Circle, Lafayette, Louisiana 70508 * 337.322.0358 * [email protected]
7. Test markets, Store Audits 8. Consumer Panel Operations 9. Sales Compensation Studies 10. Promotional Studies of Premiums, Coupons, Sampling, Deals, etc.
