Marketing plan
victoria6
industry_results.docx
Empire Technologies
|
Quarter 4
|
Industry results for quarter: 3 |
||||
|
|
Minimum |
Maximum |
Average |
Empire Technologies |
|
Total Performance |
4.778 |
26.734 |
15.756 |
26.734 |
|
Financial Performance |
7.363 |
26.045 |
16.704 |
26.045 |
|
Market Performance |
0.485 |
0.515 |
0.500 |
0.485 |
|
Marketing Effectiveness |
0.578 |
0.598 |
0.588 |
0.578 |
|
Investments in the Firm's Future |
2.419 |
2.622 |
2.521 |
2.419 |
|
Creation of Wealth |
0.804 |
1.515 |
1.160 |
1.515 |
Total Performance indicator is a quantitative measure of the executive team's ability to effectively manage the resources of the firm. It considers both the historical performance of the firm as well as how well the firm is positioned to compete in the future. As such, it measures the action potential of the firm. The index employs what is called a balanced scorecard to measure the executive team's performance. The most important measure is the team's financial performance, and thus its ability to create wealth for the investors. However, the focus on current profits has caused many executives to stress the present at the expense of the future. The long-term viability of the firm requires that the executive team be good at managing not only the firm's profitability and marketing activities but also investments in the future. These expenses might depress the creation of wealth for the firm, but are vital to creating new products and markets. In short, top managers must be good at managing all aspects of the firm. The balanced scorecard puts this perspective into practice. It focuses attention on multiple performance measures, and thus multiple decision areas. None can be ignored or downplayed. The best managers will be strong in all areas measured. The Total Business Performance measure is computed by multiplying several indicators of business performance. This model underscores the importance of all measures. This is because any strength or weakness will have multiple effects on the final outcome, the Action Potential of the Firm. The following is a summary of the measure of the firm's Total Business Performance and its key performance indicators. The computational details follow. Note that a negative score in any of these indicators will result in a Total Performance of "0".
Primary segment: Workhorse Secondary segment: Innovator
Total Performance = Financial Performance * Market Performance * Marketing Effectiveness * Investments in the Firm's Future * Creation of Wealth = 26.045 * 0.485 * 0.578 * 2.419 * 1.515 = 26.734
Financial Performance: 26.045
Market Performance: 0.485
Marketing Effectiveness: 0.578
Investments in the Firm's Future: 2.419
Creation of Wealth: 1.515
Financial Performance measures how well the executive team has been able to create profits for its shareholders. A positive number is always desired and the larger the better. The operating profit for the division is used to compute the executive team's financial performance.
Financial Performance = ( Operating Profit / Sales Revenue ) * 100 = ( 1,210,256 / 4,646,715 ) * 100 = 26.05
Operating Profit = Gross Profit - Operating Expenses = 2,237,523 - 1,027,267 = 1,210,256
Gross Profit: 2,237,523
Operating Expenses: 1,027,267
Sales Revenue: 4,646,715
Market Performance is a measure of how well the managers are able to create demand in their primary and secondary segments. The firm's market share in two target segments is used to measure this demand-creation ability. The score ranges from 0 to 1.0 and will depend upon the number of competitors. If there are 3 firms, a good score would be greater than 0.5. If there are 8 teams, a good score would be greater than 0.35.
Market Performance = Average Market Share in Targeted Segments / 100 = 49 / 100 = 0.49
Average Market Share in Targeted Segments = ( Market Share in Primary Segment + Market Share in Secondary Segment ) / 2 = ( 61 + 36 ) / 2 = 49
Market Share in Primary Segment: 61
Market Share in Secondary Segment: 36
Marketing Effectiveness is a measure of how well the managers have been able to satisfy the needs of the customers as measured by the quality of their brands and ads. Customer perceptions of the firm's brands and ads in its primary and secondary segments are used to measure customer satisfaction. The two scores are then averaged to obtain the indicator for marketing effectiveness. The score ranges from 0 to 1.0. A good score would be greater than 0.8
Marketing Effectiveness = ( Average Brand Judgment / 100 + Average Ad Judgment / 100) / 2 = ( 73 / 100 + 43 / 100) / 2 = 0.58
Average Brand Judgment = ( Highest Brand Judgment in Primary Segment + Highest Brand Judgment in Secondary Segment ) / 2 = ( 73 + 72 ) / 2 = 73
Highest Brand Judgment in Primary Segment: 73
Highest Brand Judgment in Secondary Segment: 72
Average Ad Judgment = ( Highest Ad Judgment in Primary Segment + Highest Ad Judgment in Secondary Segment ) / 2 = ( 49 + 37 ) / 2 = 43
Highest Ad Judgment in Primary Segment: 49
Highest Ad Judgment in Secondary Segment: 37
Investments in the Firm's Future reflects the willingness of the executive team to spend investment funds and current revenues on future business opportunities. They are necessary but risky. In the short-term, these expenditures may cause large negative contributions. In the long-term, these investments are absolutely necessary if the firm is to be competitive. Thus, there is a need to balance the loss of stockholders' equity against investments which could create even greater returns for the investors in the future. The score is always greater or equal to 1.0 and a good score would be greater than 3.0.
Investments in the Firm's Future = ( Cumulative Expenses that Benefit Firm's Future / Cumulative Net Revenues ) * 10 + 1 = ( 650,000 / 4,580,090 ) * 10 + 1 = 2.42
Cumulative Expenses that Benefit Firm's Future = Cumulative Cost to Open New Sales Offices + Cumulative R&D Investment in New Brand Features and New brands = 230,000 + 420,000 = 650,000
Cumulative Cost to Open New Sales Offices: 230,000
Cumulative R&D Investment in New Brand Features and New brands: 420,000
Cumulative Net Revenues = Cumulative Sales Revenue - Cumulative Rebates = 4,646,715 - 66,625 = 4,580,090
Cumulative Sales Revenue: 4,646,715
Cumulative Rebates: 66,625
Creation of Wealth To compute the creation of wealth measure, the Division's net investment (cumulative profit + cumulative investment) is divided by the cumulative investment from Corporate Headquarters to obtain a measure of return on investment. A value of less than or equal to zero indicates the executive team has bankrupt the Division and is thus unable to finance its current operations from current revenues. The Division is a financial drain on Corporate Headquarters. A value of greater than zero and less than one indicates that the Division is a viable entity and should continue with its marketing plan. A value greater than two indicates the Marketing Division has earned more profit than Corporate Headquarters has invested in it. The Division is now in a position to contribute to the overhead and profits of the entire company and its stockholders.
Creation of Wealth = Net Investment / Cumulative Investment from Corporate Headquarters = 2,272,256 / 1,500,000 = 1.51
Net Investment = Cumulative Profit + Cumulative Investment from Corporate Headquarters = 772,256 + 1,500,000 = 2,272,256
Cumulative Profit: 772,256
Cumulative Investment from Corporate Headquarters: 1,500,000
Cumulative Investment from Corporate Headquarters: 1,500,000
|
Market Demand |
||||||
|
Company |
|
|
|
|
|
Total Demand |
|
Empire Technologies |
271 |
179 |
219 |
493 |
357 |
1,519 |
|
Vulcan Technologies |
21 |
319 |
56 |
309 |
91 |
796 |
|
Total |
292 |
498 |
275 |
802 |
448 |
2,315 |
|
Market Share |
||||||
|
Company |
|
|
|
|
|
Total Market Share |
|
Empire Technologies |
92.81% |
35.94% |
79.64% |
61.47% |
79.69% |
65.62% |
|
Vulcan Technologies |
7.19% |
64.06% |
20.36% |
38.53% |
20.31% |
34.38 |
My team is the Empire technologies Vulcan tech is the competition..
|
Sales - Total |
|||||
|
Brand |
Number of Units Sold |
Sales Revenue |
Rebates |
Cost of Goods Sold |
Gross Margin |
|
Elite M5000 |
279 |
1,237,500 |
21,000 |
491,612 |
724,888 |
|
Road Pro T4000 |
350 |
1,155,125 |
22,900 |
526,953 |
605,272 |
|
Elite W1000 |
383 |
1,118,240 |
19,200 |
585,413 |
513,627 |
|
Road Pro I2000 |
80 |
279,200 |
3,525 |
136,877 |
138,798 |
|
Elite C3000 |
427 |
856,650 |
0 |
601,712 |
254,938 |
|
|
|||||
|
Total |
1,519 |
4,646,715 |
66,625 |
2,342,567 |
2,237,523 |
|
Sales - Americas |
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|
Brand |
Number of Units Sold |
Sales Revenue |
Rebates |
Cost of Goods Sold |
Gross Margin |
|
Elite M5000 |
135 |
607,500 |
10,200 |
237,877 |
359,423 |
|
Road Pro T4000 |
211 |
706,850 |
15,900 |
317,677 |
373,273 |
|
Elite W1000 |
220 |
632,500 |
11,000 |
336,269 |
285,231 |
|
Road Pro I2000 |
38 |
140,600 |
1,425 |
65,017 |
74,158 |
|
Elite C3000 |
240 |
492,000 |
0 |
338,199 |
153,801 |
|
|
|||||
|
Total |
844 |
2,579,450 |
38,525 |
1,295,038 |
1,245,887 |
|
Sales - EMEA |
|||||
|
Brand |
Number of Units Sold |
Sales Revenue |
Rebates |
Cost of Goods Sold |
Gross Margin |
|
Elite M5000 |
144 |
630,000 |
10,800 |
253,735 |
365,465 |
|
Road Pro T4000 |
139 |
448,275 |
7,000 |
209,276 |
231,999 |
|
Elite W1000 |
163 |
485,740 |
8,200 |
249,145 |
228,395 |
|
Road Pro I2000 |
42 |
138,600 |
2,100 |
71,860 |
64,640 |
|
Elite C3000 |
187 |
364,650 |
0 |
263,513 |
101,137 |
|
|
|||||
|
Total |
675 |
2,067,265 |
28,100 |
1,047,529 |
991,636 |
|
Division Profitability |
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|
|
Quarter 1 |
Quarter 2 |
Quarter 3 |
|
Gross Profit |
|||
|
Revenues |
0 |
0 |
4,646,715 |
|
- Rebates |
0 |
0 |
66,625 |
|
- Cost of Goods Sold |
0 |
0 |
2,342,567 |
|
= Gross Profit |
0 |
0 |
2,237,523 |
|
Expenses |
|||
|
Sales Office Leases |
0 |
0 |
180,000 |
|
+ Sales Force Expense |
0 |
0 |
329,978 |
|
+ Brand Promotions |
0 |
0 |
0 |
|
+ Special Programs |
0 |
0 |
0 |
|
+ Ad Creation/Revision |
0 |
0 |
60,000 |
|
+ Point of Purchase Display Expenses |
0 |
0 |
800 |
|
+ Advertising Expenses |
0 |
0 |
96,489 |
|
+ Engineering Cost for New Brands |
0 |
120,000 |
300,000 |
|
+ Market Research |
88,000 |
0 |
60,000 |
|
= Operating Expenses |
88,000 |
120,000 |
1,027,267 |
|
|
|||
|
Operating profit |
-88,000 |
-120,000 |
1,210,256 |
|
Miscellaneous Income and Expenses |
|||
|
+ Other Income |
0 |
0 |
0 |
|
- Other Expenses |
0 |
0 |
0 |
|
- Research and Development Costs |
0 |
0 |
0 |
|
- Set Up Costs for New Sales Offices |
0 |
230,000 |
0 |
|
= Net Profit for Division |
-88,000 |
-350,000 |
1,210,256 |
|
|
|||
|
Cumulative Net Profit for Division |
-88,000 |
-438,000 |
772,256 |
Cumulative Contribution of Marketing DivisionQuarter 1Quarter 2Quarter 3Net Profit for Division-88,000-350,0001,210,256Cumulative Net Profit for Division-88,000-438,000772,256Cumulative investment from Corporate Headquarters500,0001,000,0001,500,000Net investment (cumulative profit + cumulative investment)412,000562,0002,272,256Return on investment (100 * (net investment / cumulative investment)) %8256151
Summary of demand by brands
|
Brand (Company) |
|
|
|
|
|
Total |
|
Elite M5000 (Empire Technologies) |
0 |
60 |
217 |
2 |
0 |
279 |
|
Road Pro T4000 (Empire Technologies) |
0 |
18 |
0 |
1 |
331 |
350 |
|
Elite W1000 (Empire Technologies) |
19 |
35 |
2 |
327 |
0 |
383 |
|
Road Pro I2000 (Empire Technologies) |
0 |
54 |
0 |
0 |
26 |
80 |
|
Elite C3000 (Empire Technologies) |
252 |
12 |
0 |
163 |
0 |
427 |
|
Summary of Demand by Company |
||||||
|
Company |
|
|
|
|
|
Total |
|
Empire Technologies |
271 |
179 |
219 |
493 |
357 |
1,519 |
|
Summary of Demand by City |
||||||
|
City |
|
|
|
|
|
Total |
|
Chicago |
153 |
86 |
106 |
284 |
215 |
844 |
|
Abu Dhabi |
118 |
93 |
113 |
209 |
142 |
675 |
|
Summary of Demand by Region |
||||||
|
Region |
|
|
|
|
|
Total |
|
Americas |
153 |
86 |
106 |
284 |
215 |
844 |
|
EMEA |
118 |
93 |
113 |
209 |
142 |
675 |
Cost of goods
|
Cost of Goods |
|||||
|
Brand |
100 units |
250 units |
500 units |
1,000 units |
5,000 units |
|
Elite M5000 |
2,048 |
2,041 |
2,037 |
1,832 |
1,604 |
|
Road Pro T4000 |
1,792 |
1,785 |
1,782 |
1,578 |
1,356 |
|
Elite W1000 |
1,816 |
1,809 |
1,805 |
1,601 |
1,379 |
|
Road Pro I2000 |
1,987 |
1,980 |
1,976 |
1,771 |
1,545 |
|
Elite C3000 |
1,697 |
1,690 |
1,686 |
1,482 |
1,263 |
Media Placement
|
Americas |
|||
|
City |
Cost |
Elite |
Road Pro |
|
Chicago |
10,000 |
|
|
|
EMEA |
|||
|
City |
Cost |
Elite |
Road Pro |
|
Abu Dhabi |
8,000 |
|
|
|
|
|||
|
Advertising Expenses |
|
56,325 |
40,164 |
Total advertising expenses: 96,489
