Financial plan
Having identified the industry that the business is going to be situated in and the location of the business, it is important for the business to identify the client target of the business and the marketing strategies that will be efficient in executing this role. This will meet financial planning and appropriation to get the logistics and the required data. As the family is contributing in the startup role of the business, it will also be useful to utilize family members in identifying the ideal location to locate the pet food vendor machine and also the markets which are appropriate.
The target group is the individuals who are working and have pets at home or bring their pets along to work. It is hence imperative to identify in which market they exist and the existing market prices and how the business can improve on these. (Stevens 2006)
By using the family member for marketing purposes as the business is starting, the business will be directing the $10,000 into more appropriate use such as the purchase of inventory.
Having done these the sales are bound to increase the revenue if the business which will see more funds available for the marketing plan which will go into the marketing of the pet food vendor. The marketing plan should be based on a percentage of sales to ensure that the marketing cost is covered by the sales and the sales cost of the organization. With a unit of pet food retailing at $200, the marketing financial cost should cost 20% of the sales cost. This will mean that for every unit of pet food sold, $40 will go into marketing.
The marketing plan should be based on different accounting methods, with discounts on pet foods and also advertising cost.
The marketing plan should be based on an annually process for the business to have accumulated enough capital and revenue to allocate the marketing plan. (Barrow, Barrow, Brown 2012)
For the marketing plan to be successful the financial budget has to include;
With projected sales of the first year being at 120,000; the budget for that year will be;
0.2*120,000=24,000
Marketing budget Expense
For year 1
Advertising 15,000
Sales discounts 5000
Social media 3000
Other sales expense 1000
Total sales and marketing expense 24,000
Percent of sales 20%
In staring planning for the market budget, it is also essential to consider factors such as the breakeven point of the business and how many sales are being projected to be generated in the nest year. This is due to the law of demand where it might decrease irrespective of the marketing strategies that are being used due to a change in trend or some economic aspects which make it more expensive to own a pet. (Stevens 2006)
At the same time, if the sales are projected to increase due to an expansion of the market or the industry to take up a bigger portion of the market, the marketing strategies should reflect this by ensuring that the marketing strategies in place are better than those that the competition has implemented. (Stevens 2006)
Marketing in a city and in an area where it is populated is marketing strategies are effective through the use of well-timed adverts and also through the use of social media and discounts to attract the consumers even though it has a huge disparity in the price. The marketing strategies need to make the customers feel that they are getting more value for their money, and their pets are well taken care of.
References
Barrow, C., Barrow, P., & Brown, R. (2012). The business plan workbook. London: Kogan Page.
Stevens, R. E. (2006). Marketing planning guide. New York: Best Business Books.
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