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Lecture8-HowtoBuildAMarketingPLan-2.pptx

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How to Build a Marketing Plan

Session 8

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Putting it Under the Microscope

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Strategic Marketing Plan

Why Bother?

Define reasons!

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Reasons for marketing plan

Strategic Marketing Plan

Why Bother? Helps you to:

Examine internal and external situation and position in the market

Sets a direction for a planning process to help achieve and contribute to mission and business goals of the organization

Forces marketers to consider wants and needs of target consumers

Sets stage for current and long-range planning - evaluate various scenarios

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Strategic Marketing Plan

Defines business revenue and profitability

Establishes accountability

Helps marketers evaluate results to revise objectives and strategies

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Strategic Marketing Plan - Goals

Goals of A Strategic Marketing Plan

Eight Predictors of Strategic Marketing Plan Success

Aligns with organizational, business unit and product missions

Assesses the current business environment and competition

Addresses the needs of consumers in targeted markets

Identifies current marketing projects, organization’s strategic business units (SBU) and funding needs

Clarifies strategic goals and provides a logical pathway

Assesses Growth opportunities

Prioritizes tactical objectives and due dates

Includes a method for measuring and evaluating success.

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15 Steps to Developing A Strategic Marketing Plan

Mission – Set of values that guides your business

Set goals and objectives – what do you want to accomplish?

Analyze your situation – Overview of marketplace, competitive situation, micro/macro,SWOT

Define your financial goals – projected revenue

Primary or Secondary Research

Who’s your target audience/segments

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15 Steps to Developing A Strategic Marketing Plan

7. What’s your unique product positioning statement?

8. Describe your product – specific attributes

9. What’s the pricing (define based on value and competition)

10.How is product distributed? Where is it sold?

11. Map Your Message

12. Define Your Strategy

13. Outline your tactics – what is your marketing communications plan?

14. Make a timeline

15. Measure the effectiveness of your marketing strategies

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Marketing Planning Process

Executive Summary

Brief overview of the goals, marketing rationale and main elements of your plan

Provides synopsis of what you intend to accomplish, why, where and when

May want to write this section last so it reflects the details of your plan and you can summarize high points and differentiation that makes your plan a success

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Executive Summary

Tips for Writing the Marketing Plan Executive Summary

Focus on providing a summary. The business plan itself will provide the details and whether product managers or investors, the readers of your plan don’t want to have their time wasted.

Keep your language strong and positive. Don’t weaken your executive summary with weak language. Instead of writing, “Dogstar Industries might be in an excellent position to win government contracts”, write “Dogstar Industries will be in an excellent position...”

Keep it short - no more than two pages long. Resist the temptation to pad your business plan’s executive summary with details (or pleas). The job of the executive summary is to present the facts and entice your reader to read the rest of the business plan, not tell him everything.

Polish your executive summary. Read it aloud. Does it flow or does it sound choppy? Is it clear and succinct? Once it sounds good to you, have someone else who knows nothing about your business review make suggestions for improvement.

Tailor it to your audience. If the purpose of your plan is to launch a new product,, focus on the opportunity your product provides for consumers in the market place and why the opportunity is special. If the purpose of your business plan is to get a small business loan, focus on highlighting what traditional lenders want to see, such as management's experience in the industry and the fact that you have both collateral and strategies in place to minimize the lender's risk.

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Sigmund’s Gourmet Pizza

Executive Summary

Sigmund's Gourmet Pasta will be the leading gourmet pasta restaurant in Eugene, OR with a rapidly developing consumer brand and growing customer base. The signature line of innovative, premium, pasta dishes include pesto with smoked salmon, pancetta and peas linguini in an alfredo sauce, and fresh mussels and clams in a marinara sauce. Sigmund's Gourmet Pasta also serves distinct salads, desserts, and beverages.

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Executive Summary Example

Sigmund's Gourmet Pasta will reinvent the pasta experience for individuals, families, and take out customers with discretionary income by selling high quality, innovative products at a reasonable price, designing tasteful, convenient locations, and providing industry-benchmark customer service.

In order to grow at a rate consistent with our objectives, Sigmund's is offering an additional $500,000 in equity. Existing members will be given the first option to subscribe to the additional equity to allow each of them to maintain their percentage of ownership. The portion not subscribed by existing members will be available for prospective new investors.*

*Case HIstory from MPlan - an online resource for marketing plan templates

http://www.mplans.com/pasta_restaurant_marketing_plan/situation_analysis_fc.php

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Situational Analysis

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Situational Analysis

What it needs to include:

Describe mission and purpose of your product; current climate, culture

List current challenges and goals you seek to achieve

Address current business issues, marketing projects and needs

Describe products and services you will bring to market, explain purpose of effort and breakthrough outcome

Define current and desired positioning of the company. Describe who will buy the product and on what assumptions they will base their decisions. How will plan impact positioning?

Where will you place product or service

Describe value proposition and differentiators - how is product unique?

How will you address the market; price, special features, access channels or other points of differentiation from competition.

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Situational Analysis

Scanning the Environment

Gather information about your product and the market you sell it in, including its size, the competitors, and the customers who purchase it

Audit or scanning of the current marketing/business environment

external (uncontrollable factors)

internal (controllable factors)

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The External Audit

Analysis of the industry environment - affecting organization’s product market segments and macro-environment - impacts society as a whole

Industry Analysis

Gather information on relevant history size, scope of industry

Where is industry heading, what are driving forces?

What are the relevant economics of the industry to make profit?

What are strategic problems and issues that face the industry?

Includes:

1. Market Review

2. Competitive Review

3. Distribution channels and intermediaries

4. Customers(end users)

5.Supply

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The External Audit - Market Review

Market Review - Factors that affect demand for product

Analysis of current marketing situation

Industry trends; historic and current innovations and how impact plans

What similar products are in the market, what is needed and how you know it - cite sources

Note geographic markets, target market segments, relevant niches

Industry leaders overview

Describe opportunities

Current market size

Volume - units sold

Value - value of units sold

Size - size of market segments

Estimation of demand

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Internal Audit

Analysis of organization, marketing, organizational structure and culture

Determine strengths and weaknesses relative to competition

Has organization been meeting proposed sales targets?

Has organization reached percentage of market share and profitability levels as defined by corporate strategy?

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Situational Analysis - Example

Sigmund's Gourmet Pasta is close to entering their second year of operation. The restaurant has been well received, and marketing is now critical to its continued success and future profitability. The store offers an extensive offering of gourmet pastas. The basic market need is to offer individuals, families, and take out customers fresh, creative, attractive, pasta dishes, salads and desserts. Sigmund's uses homemade pasta, fresh vegetables, and premium meats and cheeses.

Market Summary

Sigmund's Gourmet Pasta possess good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. Sigmund's Gourmet Pasta will leverage this information to better understand who is served, their specific needs, and how Sigmund's can better communicate with them.

Create or edit

this chart

Market Analysis

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Market Analysis - Sigmund Pizza

Market Analysis


		2011	2012	2013	2014	2015
Potential Customers	Growth						CAGR
Individuals	8%	12,457	13,454	14,530	15,692	16,947	8.00%
Families	9%	8,974	9,782	10,662	11,622	12,668	9.00%
Take out	10%	24,574	27,031	29,734	32,707	35,978	10.00%
Total	9.27%	46,005	50,267	54,926	60,021	65,593	9.27%

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Market Analysis - Sigmund Pizza

Market Demographics

The profile for Sigmund's Gourmet Pasta's customer consists of the following geographic, demographic, and behavior factors:

Geographics

• Our immediate geographic target is the city of Eugene with a population of 130,00.

• A 15 mile geographic area is in need of our services.

• The total targeted population is estimated at 46,000.

Demographics

• Male and female.

• Ages 25-50, this is the segment that makes up 53% of the Eugene market according to the Eugene Chamber of Commerce.

• Young professionals who work close to the location.

• Yuppies.

• Have attended college and/or graduate school.

• An income over $40,000.

• Eat out several times a week.

• Tend to patronize higher quality restaurants.

• Are cognizant about their health.

Behavior Factors

• Enjoy a high quality meal without the mess of making it themselves.

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Market Analysis - Sigmund Pizza

Market Needs

Sigmund's Gourmet Pasta is providing its customers with a wide selection of high-quality pasta dishes and salads that are unique and pleasing in presentation, offer a wide selection of health conscious choices, and utilizes top-shelf ingredients. Sigmund's Gourmet Pasta seeks to fulfill the following benefits that are important to their customers.

• Selection. A wide choice of pasta and salad options.

• Accessibility. The patron can gain access to the restaurant with minimal waits and can choose the option of dine in or take out.

• Customer service. The patron will be impressed with the level of attention that they receive.

•Competitive pricing. All products/services will be competitively priced relative to comparable high-end pasta/Italian restaurants

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Market Analysis - Sigmund Pizza

Market Trends

The market trend for restaurants is headed toward a more sophisticated customer. The restaurant patron today relative to yesterday is more sophisticated in a number of different ways.

• Food quality. The preference for high-quality ingredients is increasing as customers are learning to appreciate the qualitative differences.

• Presentation/appearance. As presentation of an element of the culinary experience becomes more pervasive, patrons are learning to appreciate this aspect of the industry.

• Health consciousness. As Americans in general are more cognizant of their health, evidenced by the increase in individuals exercising and health club memberships, patrons are requesting more healthy alternatives when they eat out. They recognize that an entree can be quite tasty, and reasonably good for you.

• Selection. People are demanding a larger selection of foods, they are no longer accepting a limited menu. The reason for this trend is that within the last couple of years the restaurant offerings have increased, providing customers with new choices. Restaurant patrons no longer need to accept a limited number of options. With more choices, patrons have become more sophisticated. This trend is intuitive as you can observe a more sophisticated restaurant patron in larger city markets such as Seattle, Portland or New York where there are more choices available.

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Market Growth- Sigmund Pizza

Market Growth

In 1999, the global pasta market reached $13 billion dollars. Pasta sales are estimated to grow by at least 5.7% for the next few years. This growth can be attributed to several different factors.

Appreciation for health conscious food. While not all pasta is "good for you," particularly the cream based sauces, pasta can be very tasty yet health conscious at the same time. Pasta is seen as a healthy food because of its high percentage of carbohydrates relative to fat.

increase in the number of hours our demographic is working. Over the last five years the number of hours spent at work of our archetype customer has significantly increased. As the number of work hours increases, there is a high correlation of people that eat out at restaurants.

This is intuitively explained by the fact that with a limited number of hours available each day, people have less time to prepare their meals and eating out is one way to maximize their time.

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Market Growth - Sigmund Pizza

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Collecting Data

Review company mission statement

Review existing marketing and business documents

Review and elaborate on impact of prior plans

Study your website and competitors

Review press rooms to assess current issues and activities

Interview others in industry, research articles on industry

What has been done, worked, didn’t work

Talk to consumers who use their product

Get Feedback

Research business/marketing journals

Investigate existing research

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The External Audit - Competitive Review

2. Competitive Review - Forces analysis of how your product is performing versus competition and defining similarities and differences

Defines your position of advantage or disadvantage versus competition and pushes for effective strategy development. Assess:

Key competitor’s strategies; past, present, future - their mission, target markets, marketing mix, budget, share, growth rate, profitability

Analyze competitor performance; sales, market share, growth, profitability, ROI, profit margins, net profits

Analyze their marketing strategy

Assess competitors strengths and weaknesses (your opportunities/threats)

Assess impact on your organization

Assess competitive advantage

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Competition Review - Sigmund’s Pizza

National Competition

• Pastabilities: offers consumers their choice of noodles, sauces, and ingredients, allowing the customer to assemble their dish as they wish. Food quality is average.

• PastaFresh: has a limited selection but the dishes are assembled with high-quality ingredients. The price point is high, but the food is quite good.

• Pasta Works: offers pasta that is reasonably fresh, reasonably innovative and at a lower price point. The company was sold a few years ago, and consequently the direction of management has been stagnant lately and has resulted in excessive employee turnover.

• Perfect Pasta: has medium-priced pasta dishes that use average ingredients, no creativity, and less than average store atmosphere. Sigmund's is not sure how this company has been able to grow in size as their whole product is mediocre at best.

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Competition Review - Sigmund’s Pizza

Local Competition

• Restaurant A: This is an upscale Italian restaurant that has a limited selection of pasta dishes. Although the selection is limited and pricey, the dishes are quite good.

• Restaurant B: An Italian restaurant with a decent pasta selection, however quality is inconsistent.

• Restaurant C: An upscale restaurant with a large wine selection and good salads. Everything else is mediocre at best and over-priced. Service can often be poor.

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Analyzing Target Market

Find out more information on your customers through marketing research

Target customers through marketing segmentation; geographic, demographic, psychographic, behavioral

Targeting

Mass market, differentiated market, niche market

Positioning process - product attributes, price, quality, class (butter versus margarine) use or application, product user (athletes), against competition

Understand customer’s buying behavior; personal, psychological and social factors

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Marketing Strategy - Objectives

Provide a tangible guide for action

Provide specific actions to follow

’Suggest tools to measure and control effectiveness

Ambitious yet challenging

Take in account company’s strengths and weaknesses, capitalize on opportunities and avoid or minimize potential threats

Matched with corporate objectives and individual product line objectives

ATTAINABLE

DESIRABLE

OPTIMISTIC

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Marketing Objectives

PEGASUS SPORTS INTERNATIONAL

Maintain positive, strong growth each quarter (notwithstanding seasonal sales patterns)

Achieve a steady increase in market penetration

Decrease customer acquisition costs by 1.5 percent per quarter

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Marketing Objectives

PEGASUS SPORTS INTERNATIONAL

Increase the profit margin by 1 percent per quarter through efficiency and economy of scale gains

Maintain a significant research and development budget (as a percentage of relative sales) to spur future product development

Decrease customer acquisition costs by 1.5 percent per quarter

Achieve a double - triple-digit growth rate for the first three years

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Marketing Strategy - Packaging

Design and production of container or wrapper for product

Protects content in transit and while product in use

Can prolong shelf life

Need to consider packaging for shipping

Need to consider package promotion - effective design, color, shape to entice purchase.

Follow local laws requiring disclosure of produc content (food, pharmaceuticals

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Marketing Strategy - Pricing

Consistent with organizational and marketing objectives

Marketing mix strategy

Costs

Buyer’s perception of cost and value

Competition

Demand and price elasticity

Legal and regulatory issues

Channels of distribution

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Marketing Strategy - Communications

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Promotional Campaign

Promotional mix elements are set of tools that can be used for marketing communications

Promotional mix elements include:

Advertising - print, electronic, social

Online and interactive marketing

Direct Marketing

Sales Promotion Public Relations and Publicity

Owned media

Events and Sponsorship

WOM

POP - Displays, Packaging

OOH Media

Product Placements, Movies, TV

Partnerships

Personal Selling

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Advertising and Promotional Campaign

Outline of promotional and advertising campaign

What media and techniques will be employed?

What is the message you are sending to target audience; primary, secondary

With what frequency?

What are costs?

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Marketing Budget - One option

50% or More Online

The majority of your investment must be in the digital world. This number includes your online ads (Google pay per click, Facebook, syndication sites, display), as well as all development costs related to your website and online sales program (servers, maintenance, upgrades, CRM) and all website content (photos, video, renderings, site maps, written descriptions).

A good place to begin within this 50% is to break it into these percentages:

If 50% of your marketing budget is $100,000:

• 50% toward advertising ($50,000)

• 25% toward web development/tools/CRM ($25,000)

• 25% toward content ($25,000)

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Marketing Budget - One Option

12% to 20% Signage

Your signs are a direct reflection of your brand: Spend enough to keep them looking good. Consider your prospects behavior; driving, mass transportation and determine if this has value accordingly.

5% to 8% Events

Consider being at high trafficked events that rlat to your consumer, farmer’s markets, concerts, art shows, sporting events adn determie how to optimize attntion and interest/

2% to 6% Collateral

Your sales prospect may show temporary interest in reviewing information on paper, but they’d much rather have it instantly accessible and accurate on your website.

16%—Everything Else

This can go toward market research, direct mail, agency support—any number of items. This could be invested in is local radio or TV advertising if you have a large budget, $500 - $1 million

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Marketing Budget

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Marketing Budget

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