Final Marketing Plan

Business Management

Institution Affiliation

Name of Student

Instructor’s Name

Action Program

There is a ready market for the final products of this fashion company with the targeted customers as campus students and the metropolitan city three miles from its location. With the business plan that is laid down, this company is yet to thrive well in the competitive business environment and industry. This company is preparing to achieve some of the goals and objectives that are outline below.

Goals

a) Maintain high quality service management program

b) Conduct business with accountability principles

c) Enhance professionalism in all business activities conducted

Objectives

i. To encourage staff recommendation programs for better service delivery

ii. To always aim higher and set achievable goals

iii. To encourage staff training programs

iv. To take part in business benchmarking programs

v. To instill respect, and time management as the business culture

Steps

a) Provide simple and clear company principles and guidelines to help new employees to adapt into the company culture faster

b) Provide employee orientation programs as well as employee training sessions together with motivational programs to improve their performance

c) Understand the company’s external environment including closest competitors in the industry.

d) Have regular meetings both senior staff and coding staff members to discuss organizational matters.

Following the staff development plan given, the staff development budget is therefore as follows:

The cording areas will include the attention for the expenditure in the following areas; supplies, transport, conference fees, membership dues, subscriptions, and equipment. This current budget will be based on the previous expenditures - prior year expenditure to avoid variance or deficit.

Item	Prior-budget(US dollars)	Amount spent (US dollars)	Current Budget (US dollars)
Supplies	1200	1000	1100
Travel	2000	2500	2700
Conference fees	1000	1200	1300
Membership dues	750	600	700
Subscriptions	350	325	350
Equipment	5000	3000	3200

The coders are eligible to the above current budget but at designated time. The five coders don’t have to go for the two day conference all at once but if they do, there would not be any impact to the receivable account for that is accounted for in the budget but there would be an impact to the temporary replacement. This would mean that much have to be spent.

There are a few areas where there was variance in the budget allocation. The variance in the budget allocation may have occurred for different reasons in each case. For instance, travelling amount spent may have got the variance due to unexpected and unplanned travelling that was quite necessary. On the conference fees, the variance might have been caused by the unexpected increment of the fee due to high demand. On the other hand Equipment variance may have been caused by alternatively cheaper second hand equipment.

On the variance in the current budget allocation, it is due to precautions taken to prevent under estimation of cost. I reasoned that there will be no harm for an excess since it would be carried forward to the next budget as compared to a less budgeted expenditure that would demand more cash instead.

Financial Projections and Budget

After an intense financial analysis, this company is projected to experience an average sales volume of 588 fashion items each month for the starting year. This is obtained by finding the average sales volume of each quarter as follows: (2250 + 2350 + 2450) = 7050/12 = 588. The forecast of the expenses is provided with guidelines to the marketing cost as well as action programs outlined above. It is projected as follows:

Advertisements & promotion $70,000

Transport $45,000

Registration $75,000 (Including company registration)

Equipment $114,000

Total Expense $304,000

	January-April	May-August	September-December
Average sales price	$30.50 each	$33.00 each	$35.50 each
Number of Items	2,250	2,350	2,450
Total sale per month	$68,686	$77,550	$122,475
sale per quarter	$274,744	$310,200	$490,980

Since the initial capital for purchases is $125,000 for the start of the business in the first month, the total amount required to start the business and run it is determined as follows:

Expense $304,000

Purchases $504,000

Therefore; total $808,000 (amount required)

Breakeven analysis that helps in calculating the payback period is as shown:

Quarter Amount Cumulative

1st quarter $274,744 $274,744

2nd quarter $310,200 $585,644

3rd quarter $490,980 $1,076,624

Since the targeted value to attain the payback period is $808,000 it lies within the fourth quarter. Since each month of fourth quarter will make sales worth $122,745, September will make a cumulative of $708,389 whereas October will make a cumulative of $831,134 which meets the threshold ($808,000). This means that, in the first year of operation the company will be able to regain its initial investments in the 10th month.

References

Bureau E. Et al, (2015): Business Planning and Accountability, Business; Oxford University Press

The Denver Foundation, (2015): The Denver Foundation Inclusiveness Project; Professional Development Plan. Link:http://www.nonprofitinclusiveness.org/sample-professional-development-plan