Strategic Marketing Plan

EXAMPLE STRATEGIC MARKETING PLAN The following pages contain an annotated sample marketing plan for Blue Sky Clothing. At some point in your career, you will likely be involved in writing—or at least contributing to –a marketing plan. And you’ll certainly read many marketing plans throughout your business career. Keep in mind that the plan for Blue Sky is a single example; no one format is used by all companies. Also, the Blue Sky plan has been somewhat condensed to make it easier to annotate and illustrate the most vital features. The important point to remember is that the marketing plan is a document designed to present concise, cohesive information about a company’s marketing objectives to managers, lending institutions, and others who are involved in creating and carrying out the firm’s overall business strategy.

Need a Standard Cover Page with Page Break to Begin – Include the Title Below.

Five-Year Marketing Plan Blue Sky Clothing, Inc.

TABLE OF CONTENTS [Optional]

EXECUTIVE SUMMARY [1 page or less] This five-year marketing plan for Blue Sky Clothing has been created by its two founders to secure

additional funding for growth and to inform employees of the company’s current status and direction.

Although Blue Sky was launched only three years ago, the firm has experienced greater-than-anticipated

demand for its products, and research as shown that the target market of sport-minded consumers and

sports retailers would like to buy more casual clothing than Blue Sky currently offers. They are also

interested in extending their product line as well as adding new product lines. In addition, Blue Sky plans

to explore opportunities for online sales. The marketing environment has been very receptive to the firm’s

high-quality goods—casual clothing in trendy colors with logos and slogans that reflect the interests of

outdoor enthusiasts around the country. Over the next five year, Blue Sky can increase its distribution,

offer new products, and win new customers.

COMPANY DESCRIPTION Blue Sky Clothing was founded three years ago by entrepreneurs Lucy Neuman and Nick Russell, Neuman

has an undergraduate degree in marketing and worked for several years in the retail clothing industry.

Russell operated an adventure business called Go West!, which arranges group trips to locations in

Wyoming, Montana, and Idaho, before selling the enterprise to a partner. Neuman and Russell, who have

been friends since college, decided to develop and market a line of clothing with a unique—yet universal—

appeal to outdoor enthusiasts.

Blue Sky Clothing reflects Neuman’s and Russell’s passion for the outdoors. The company’s original

cotton T-shirts, baseball caps, and fleece jackets and vests bear logos of different sports—such as kayaking,

mountain climbing, bicycling, skating, surfing, and horseback riding. But every item shows off the

company’s slogan: “Go Play Outside.” Blue Sky sells clothing for both men and women, in the hottest

colors with the coolest names—such as sunrise pink, sunset red, twilight purple, desert rose, cactus green,

ocean blue, mountaintop white, and river rock gray.

Blue Sky attire is currently carried by small retail stores that specialize in outdoor clothing and gear. Most

of these stores are concentrated in northern New England, California, the Northwest, and a few states in the

South. The high quality, trendy colors, and unique message of the clothing have gained Blue Sky a

The executive summary outlines the who, what,

where, when, how, and

why of the marketing plan. Blue Sky is only

three years old and is

successful enough that it now needs a formal

marketing plan to obtain

additional financing from a bank or private

investors for expansion

and the launch of new

products.

The company description summarizes the history of

Blue Sky—how it was

founded and by whom, what its products are, and

why they are unique. It

begins to “sell” the reader on the growth

possibilities for Blue Sky.

following among consumers between the ages of 25 and 45. Sales have tripled in the last year alone, and

Blue Sky is currently working to expand its manufacturing capabilities.

Blue Sky is also committed to giving back to the community by contributing to local conservation

programs. Ultimately, the company would like to develop and fund its own environmental programs. This

plan will outline how Blue Sky intends to introduce new products, expand its distribution, enter new

markets, and give back to the community.

BLUE SKY’S MISSION, VISION, VALUES, AND GOALS Blue Sky’s mission is to be the leading producer and marketer of personalized, casual clothing for

consumers who love the outdoors. Blue Sky wants to inspire people to get outdoors more often and enjoy

family and friends while doing so. In addition, Blue Sky strives to design programs for preserving the

natural environment.

During the next five years, Blue Sky seeks to achieve the following financial and nonfinancial goals:

• Financial Goals

1. Obtain financing to expand manufacturing capabilities, increase distribution, and introduce two new product lines.

2. Increase revenues by at least 50 percent each year. 3. Donate at least $25,000 a year to conservation organizations.

• Nonfinancial goals

4. Introduce two new product lines—customized logo clothing and lightweight luggage. 5. Enter new geographic markets, including southwestern and Mid-Atlantic States. 6. Develop a successful Internet site, while maintaining strong relationships with retailers. 7. Develop its own conservation program aimed at helping communities raise money to purchase

open space.

CORE COMPETENCIES Blue Sky seeks to use its core competencies to achieve a sustainable competitive advantage, in which

competitors cannot provide the same value to consumers that Blue Sky does. Already, Blue Sky has

developed core competencies in (1) offering a high-quality, branded product whose image is recognizable

among consumers; (2) creating a sense of community among consumers who purchase the products; and

(3) developing a reputation among retailers as a reliable manufacturer, delivering the requested number of

products on schedule. The firm intends to build on these competencies through marketing efforts that

increase the number of products offered as well as distribution outlets. By forming strong relationships with

consumers, retailers, and suppliers of fabric and other goods and services, Blue Sky believes it can create a

sustainable competitive advantage over its rivals. No other clothing company can say to its customers with

as much conviction “Go Play Outside”!

SITUATION ANALYSIS The marketing environment for Blue Sky represents overwhelming opportunities. It also contains some

challenges that the firm believes it can meet successfully. Table A illustrates a SWOT analysis of the

company conducted by marketers to highlight Blue Sky’s strengths, weaknesses, opportunities, and threats.

The SWOT analysis presents a thumbnail sketch of the company’s position in the marketplace. In just

three years, Blue Sky has built some impressive strengths while looking forward to new opportunities. Its

dedicated founders, the growing number of brand-loyal customers, and sound financial management place

the company in a good position to grow. However, as Blue Sky considers expansion of its product line and

entrance into new markets, the firm will have to guard against marketing myopia (the failure to recognize

the scope of its business) and quality slippages. As the company finalizes plans for new products and

It is important to state a

firm’s mission, vision,

calues, and goals, including financial and

nonfinancial goals. Blue

Sky’s goals include

growth and profits for the

company as well as the

ability to contribute to society through

conservation programs.

This section reminds

employees as well as

those outside the company (such as

potential lenders) exactly

what Blue Sky does so well and how it plans to

achieve a sustainable

competitive advantage over rivals. Note that

here and throughout the

plan, Blue Sky focuses on relationships.

The situation analysis provides an outline of the

marketing environment.

A SWOT analysis helps marketers and others

identify clearly a firm’s

strengths, weaknesses, opportunities, and threats.

Again relationships are a

focus. Blue Sky has also conducted research on the

outdoor clothing market,

competitors, and consumers to determine

how best to attract and keep customers.

expanded Internet sales, its management will also have to guard against competitors who attempt to

duplicate the products. However, building strong relationships with consumers, retailers, and suppliers

should help thwart competitors.

COMPETITORS IN THE OUTDOOR CLOTHING MARKET The outdoor retail sales industry sells about $5 billion worth of goods annually, ranging from clothing to

equipment. The outdoor apparel market has many entries. L.L. Bean, REI, Timberland, Bass Pro Shops,

Cabello’s, and Patagonia are among the most recognizable companies that offer these products. Smaller

competitors such as Title IX, which offers athletic clothing for women, and Ragged Mountain, which sells

fleece clothing for skiers and hikers, also grab some of the market. The outlook for the industry in

general—and Blue Sky in particular—is positive for several reasons. First, consumers are participating in

and i8nvesting in recreational activities that are near their homes. Second, consumers are looking for ways

to enjoy their leisure time with friends and family without overspending. Third, consumers are gaining

more confidence in the economy and are willing and able to spend more.

While all of the companies listed earlier can be considered competitors, none offers the kind of trendy, yet

practical products provided by Blue Sky—and none carries the customized logos and slogans that Blue Sky

pans to offer in the near future. In addition, most of these competitors sell performance apparel in high-

tech manufactured fabrics. With the exception of the fleece vests and jackets, Blue Sky’s clothing is made

Table A SWOT Analysis for Blue

Sky Clothing, Inc.

of strictly the highest quality cotton, so it may be worn both on the hiking trail and around town. Finally,

Blue Sky products are offered at moderate prices, making them affordable in multiple quantities. For

instance, a Blue Sky T-shirt sells for $15.99, compared with a competing high-performance T-shirt that

sells for $29.99. Consumers can easily replace a set of shirts from one season to the next, picking up the

newest colors, without having to think about the purchase.

A survey conducted by Blue Sky revealed that 67 percent of responding consumers prefer to replace their

casual and active war more often that other clothing, so they are attracted by the moderate pricing of Blue

Sky products. In addition, as the trend toward health-conscious activities and concerns about the natural

environment continue, consumers increasingly relate to the Blue Sky philosophy as well as the firm’s

contributions to socially responsible programs.

THE TARGET MARKET The target market for Blue Sky products is active consumers between the ages of 25 and 45—people who

like to hike, rock climb, bicycle, surf, figure skate, in-line skate, ride horses, snowboard or ski, kayak, and

other such activities. In short, they like to “Go Play Outside.” They might not be experts at the sports they

engage in, but they enjoy themselves outdoors.

These active consumers represent a demographic group of well-educated and successful individuals; they

are single or married and raising families. Household incomes generally range between $60.000 and

$120,000 annually. Despite their comfortable incomes, these consumers are price conscious and

consistently seek value in their purchases. Regardless of their age (whether they fall at the upper or lower

end of the target range), they lead active lifestyles. They are somewhat status oriented but not overly so.

They like to be associated with high-quality products but are not willing to pay a premium price for a

certain brand. Current Blue Sky customers tend to live in northern New England, the South, California,

and the Northwest. However, one future goal is to target consumers in the Mid-Atlantic States and

Southwest as well.

THE MARKETING MIX The following discussion outlines some of the details of the proposed marketing mix for Blue Sky products.

PRODUCT STRATEGY. Blue Sky currently offers a line of high-quality outdoor apparel items

including cotton T-shirts, baseball caps, and fleece vests and jackets. All bear the company log and slogan,

“Go Play Outside.” The firm has researched the most popular colors for its items and given them names

that consumers enjoy—sunset red, sunrise pink, cactus green, desert rise, and river rock gray, among

others. Over the next five years, Blue Sky plans to expand the product line to include customized clothing

items. Customers may select a logo that represents their sport—say rock climbing. Then they can add a

slogan to match the logo, such as “Get over It.” A baseball cap with a bicyclist might bear the slogan,

“Take a Spin.” At the beginning, there would be ten new logos and five new slogans; more would be

added later. Eventually, some slogans and logos would be retired, and new ones introduced. This strategy

will keep the concept fresh and prevent it from becoming diluted with too many variations.

The second way in which Blue Sky plans to expand its product line is to offer items of lightweight

luggage—two sizes of duffel bags, two sizes of tote bags, and a daypack. These items would also come in

trendy and basic colors, with a choice of logos and slogans. In addition, every product would bear the Blue

Sky logo.

DISTRIBUTION STRATEGY. Currently, Blue Sky is marketed through regional and local specialty

shops scattered along the California coast, into the Northwest, across the South, and in northern New

England. So far, Blue Sky has not been distributed through national sporting goods and apparel chains.

Climate and season tend to dictate the sales at specialty shops, which sell more T-shirts and baseball caps

during warm weather and more fleece vests and jackets during colder months. Blue Sky obtains much of

its information about overall industry trends in different geographic areas and at different types of retail

outlets from its trade organization, Outdoor Industry Association.

Blue Sky has identified

its customers as active

people between the ages of 25 and 45. However,

that doesn’t mean

someone who is 62 and prefers to read about the

outdoors isn’t a potential

customer as well. By pinpointing where

existing customers live,

Blue Sky can make plans for growth into new

outlets.

The strongest part of the

marketing mix for Blue

Sky involves sales promotions, public

relations, and

nontraditional marketing strategies such as

attending outdoor events

and organizing activities like day hikes and bike

rides.

Over the next three years, Blue Sky seeks to expand distribution to retail specialty shops throughout the

nation, focusing next on the Southwest and Mid-Atlantic regions. The firm has not yet determined whether

it would be beneficial to sell through a major national chain such as REI or Bass Pro Shops, as these outlets

could be considered competitors.

In addition, Blue Sky plans to expand online sales by offering the customized product line via Internet only,

thus distinguishing between Internet offerings and specialty ship offerings. Eventually we may be able to

place internet kiosks at some of the more profitable store outlets so consumers could order customized

products form the stores. Regardless of its expansion plans, Blue Sky fully intends to monitor and maintain

strong relationships with distribution channel members.

PROMOTIONAL STRATEGY. Blue Sky communicates with consumers and retailers about its products

in a variety of ways. Information about Blue Sky—the company as well as its products—is available via

the Internet, direct mailings, and in person. The firms’ promotional efforts also seek to differentiate its

products from those of its competitors.

The company relies on personal contact with retailers to establish the products in their stores. This contact,

whether in-person or by phone, helps convey the Blue Sky message, demonstrate the products’ unique

qualities, and build relationships. Blue Sky sales representatives visit each store two or three times a year

and offer in-store training on the features of the products for new retailers or for those who want a

refresher. As distribution expands, Blue Sky will adjust o meet greater demand by increasing sales staff to

make sure it stores are visited more frequently.

Sales promotions and public relations currently make up the bulk of Blue Sky’s promotional strategy. Blue

Sky staff works with retailers to offer short-term sales promotions tied to event and contests. In addition,

Nick Russell is currently working with several trip outfitters to offer Blue Sky items on a promotional

basis. Because Blue Sky also engages in cause marketing through its contribution to environmental

programs, good public relations have followed.

Nontraditional marketing methods that require little cash and a lot of creativity also lend themselves

perfectly to Blue Sky. Because Blue Sky is a small, flexible organization, the firm can easily implement

ideas such as distributing free water, skiers, and discount coupons at outdoor sporting events. During the

next year, the company plans to engage in the following marketing efforts:

• Create a Blue Sky Tour, in which several employees take turns driving around the country to campgrounds to distribute promotional items such as Blue Sky stickers and discount coupons

• Attend canoe and kayak races, bicycling events, and rock climbing competitions with our Blue Sky truck to distribute free water, stickers, and discount coupons for Blue Sky shirts or hats.

• Organize Blue Sky hikes departing from participating retailers.

• Hold a Blue Sky design contest, selecting a winning slogan and logo to be added to the customized line.

PRICING STRATEGY. As discussed earlier in this plan, Blue Sky products are priced with the

competition in mind. The firm is not concerned with setting high prices to signal luxury or prestige, nor is

ti attempting to achieve the goals of offsetting low prices by selling high quantities of products. Instead

value pricing is practiced so that customers feel comfortable purchasing new clothing to replace the old,

even if it is just because they like the new colors. The pricing strategy also makes Blue Sky products good

gifts—for birthdays, graduations, or “just because.” The customized clothing will sell for $2 to $4 more

than the regular Blue Sky logo clothing. The luggage ill be priced competitively, offering a good value

against it competition.

BUDGET, SCHEDULE, AND MONITORING Though its history is short, Blue Sky has enjoyed a steady increase in sales since its introduction three years

ago. Figure A shows these three years, plus projected sales for the nest three years, including the

introduction of the two new product lines. Additional financial data are included in the overall business

plan for the company.

The timeline for expansion of outlets and introduction of the two new product lines is shown in Figure B.

The implementation of each of these tasks will be monitored closely and evaluated for its performance.

Blue Sky anticipates continuing operations into the foreseeable future, with no plans to exit this market.

Instead, as discussed throughout this plan, the firm plans to increase its presence in the market. At present,

there are no plans to merge with another company or to make a public stock offering.

An actual plan will

include more specific

financial details, which will be folded in to the

overall business plan. In

addition, Blue Sky states that at this stage, it does

no have plans to exit the

market by merging with another firm or making a public stock offering.

Figure A

Annual Sales for Blue

Sky Clothing: 2

Figure B

Timeline for First Three

Years of Marketing Plan