The undersigned reader acknowledges that the information provided by The undersigned reader acknowledges that the information provided by ________
_________________________________________ in _ in this marketing plan this marketing plan is confidential; therefore, reader agrees notis confidential; therefore, reader agrees not to disclose it
to disclose it without the without the express written permission of _______________express written permission of ________________________________.___. It is acknowledged by reader that information to be furnished in this
It is acknowledged by reader that information to be furnished in this marketing plan is in allmarketing plan is in all
respects confidential in nature, other than information which is in
respects confidential in nature, other than information which is in the public domain through otherthe public domain through other
means and that any disclosure or use of
means and that any disclosure or use of same by reader, may cause serious harm or damage tosame by reader, may cause serious harm or damage to ________________________.
________________________. Upon request, this
Upon request, this document is to document is to be immediately returned to be immediately returned to _________________________________________________._. ___________________ ___________________ Signature Signature ___________________ ___________________ Name (typed or printed) Name (typed or printed) ___________________ ___________________
Date Date
This is a marketing plan. It does no
1.
1.00 ExExececututivive e SuSummmmarary y . . . . . . . . 11 2.
2.00 SiSitutuatatioion n AnAnalalysysis is . . . . . . . . . . 22 2.
2.11 MaMarkrket et SuSummmmarary y . . . . . . . . . . . . . . . . . . . . 22 2.1
2.1.1.1 MarMarket ket DemDemogrographaphics ics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2.1.2
2.1.2 MarkeMarket t NeedNeeds s . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2.
2.1.1.33 MaMarkrket et TrTrenends ds . . . . . . . . . . . 44 2.1
2.1.4.4 MarMarket ket GroGrowth wth . . . . . . . . . . . 55 2.
2.22 SWSWOT OT AnAnalalysysis is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 2.
2.2.2.11 StStrerengngthths s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 2.
2.2.2.22 WeWeakaknenesssses es . . . . . . . . . . . . . . . . . 66 2.2
2.2.3.3 OppOpportortuniunitieties s . . . . . . . . . . . 66 2.2
2.2.4.4 ThrThreateats s . . . . . . . . . . . . . 66 2.
2.33 CoCompmpetetititioion n anand d BuBuyiying ng PaPattttererns ns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 2.
2.44 SeServrvicices es . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 2.
2.55 KeKeys ys to to SuSuccccesess s . . . . . . . . . . . . 77 2.
2.66 CrCrititicical al IsIssusues es . . . . . . . . . . . . . . . . . . . . 77 3.
3.00 MaMarkrketetining g StStraratetegy gy . . . . . . . . . . . . . . . . . . . . . . 77 3.
3.11 MiMissssioion . n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 3.
3.22 MaMarkrketetining g ObObjejectctivives es . . . . . . . . . . . . . . . . 88 3.
3.33 FiFinanancnciaial l ObObjejectctivives es . . . . . . . . . . . . . . . . . . 88 3.
3.44 TaTargrget et MaMarkrketetining g . . . . . . . . . . . . . . . . . . 88 3.
3.55 PoPosisititiononining g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 3.
3.66 StStraratetegy gy PyPyraramimids ds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 3.
3.77 MaMarkrketetining g MiMix x . . . . . . . . . . . . . . . . . . . . 1010 3.
3.88 MaMarkrketetining g ReReseseararch ch . . . . . . . . . . . . . . . . 1010 4.
1.0
1.0 Executive
Executive Summary
Summary
Cranium Filament Reductions is a hair salon located in
Cranium Filament Reductions is a hair salon located in Shaker Hts., Ohio that Shaker Hts., Ohio that allows the entireallows the entire family to have their hair needs satisfied in o
family to have their hair needs satisfied in o ne convenient location. Cranium serves men, women,ne convenient location. Cranium serves men, women, and children and accepts appointments as well as walk-ins. Cranium also sells retail hair care and children and accepts appointments as well as walk-ins. Cranium also sells retail hair care products. Cranium is able to serve the entire family in one
products. Cranium is able to serve the entire family in one quick, convenient visit.quick, convenient visit.
While there are many "quick salons" like Cranium, Cranium will excel due to its attention
While there are many "quick salons" like Cranium, Cranium will excel due to its attention to detailto detail
regarding customer service. Through unheralded customer attention, Cranium will slowly but surely regarding customer service. Through unheralded customer attention, Cranium will slowly but surely gain market share as it services the
gain market share as it services the entire family, creating long-term relationships. Lastlyentire family, creating long-term relationships. Lastly Cranium's location will allow it to attract a lot
Cranium's location will allow it to attract a lot of walk in traffic.of walk in traffic.
After month four, sales will grow steadily for Cranium. Profitability will be reached by month nine After month four, sales will grow steadily for Cranium. Profitability will be reached by month nine and $443,000 in revenue will be earned during year three
and $443,000 in revenue will be earned during year three with $61,000 in profits.with $61,000 in profits.
$100,000 $100,000 $200,000 $200,000 $300,000 $300,000 $400,000 $400,000 $500,000 $500,000 $600,000 $600,000 Males Males Females Females
Women with young children Women with young children Retail hair care products Retail hair care products
Annual Sales Forecast
Annual Sales Forecast
2.0
2.0 Situation
Situation Analysis
Analysis
Cranium Filament Reductions is in its first year of business as a start-up company. Cranium Cranium Filament Reductions is in its first year of business as a start-up company. Cranium recognizes the fact that a
recognizes the fact that a comprehensive, strategic marketing plan is required to ensurecomprehensive, strategic marketing plan is required to ensure profitability and success. Cranium offers a wide range of hair
profitability and success. Cranium offers a wide range of hair cutting services. The market need iscutting services. The market need is for a one-stop, convenient, hair salon
for a one-stop, convenient, hair salon that is skilled and reasonably priced, serving the entirethat is skilled and reasonably priced, serving the entire family.
family.
2.1
2.1 Market
Market Summary
Summary
Cranium Filament Reductions possess good information about the market and knows a great deal Cranium Filament Reductions possess good information about the market and knows a great deal about the common attributes of
about the common attributes of its most prized customers. Cranium will leverage this informationits most prized customers. Cranium will leverage this information to understand who is served, their
to understand who is served, their specific needs, and how Cranium can better serve specific needs, and how Cranium can better serve them.them.
Males Males Females Females Mothers w/children Mothers w/children
Target Markets
Target Markets
2.1.1
2.1.1 Market
Market Demographics
Demographics
The profile for Cranium Filament Reductions
The profile for Cranium Filament Reductions consists of consists of the following geographic, demographic, andthe following geographic, demographic, and behavior factors:
behavior factors: Geographics Geographics
•
• The immediThe immediate geate geograpographic tarhic target is tget is the city of She city of Shaker Hhaker Hts. and tts. and the surrhe surroundioundingng communities with a total
communities with a total population of 112,000.population of 112,000. •
• A 20 mile geA 20 mile geograographic rphic radius iadius is in nees in need of the od of the offereffered servd services.ices. •
• The totaThe total tarl targetgeted ped popuopulatlation iion is 46s 46,00,000.0. Demographics
Demographics •
• MaleMale, fe, femamalele, and c, and chihildldreren.n. •
• AAggees s 33--5555.. •
• The women are indivThe women are individuaiduals who are concels who are concerned abrned about gettiout getting qualing quality hair cutsty hair cuts/styl/styling, buting, but are unwilling to pay the exorbitant charges associated with
are unwilling to pay the exorbitant charges associated with women-only hair salons.women-only hair salons.
•
• The men are conceThe men are concerned abrned about getout getting a reting a reasonabasonably prily priced, coced, conveninvenient, haient, haircut.rcut. •
• The childreThe children do not havn do not have any maje any major preor preferenferences otheces other than havr than having toying toys to play ws to play with whiith whilele they wait.
they wait. •
• Have an iHave an indivndividual idual incomincome of e of at lat least east $30,$30,000000.. Behavior Factors
Behavior Factors •
• Are always on thAre always on the lookoue lookout for convt for convenienenience factoce factors in rers in regardgards to servis to service provce provideriders.s. •
• Attempt to get Attempt to get all of thall of the famie family's nely's needs seeds servicerviced at the sad at the same timme time if pose if possiblsible.e.
2.1.2
2.1.2 Market
Market Needs
Needs
Cranium Filament Reductions is providing families with a
2.1.3
2.1.3 Market
Market Trends
Trends
The market trend for the hair cutting
The market trend for the hair cutting industry is one of industry is one of consolidation. Consolidation can be seenconsolidation. Consolidation can be seen with the high-end hair salons as well as the
with the high-end hair salons as well as the full-service, full-fafull-service, full-family companies such as Best Cuts.mily companies such as Best Cuts. Over the last five years there have been an expansion of upscale chain salons in major
Over the last five years there have been an expansion of upscale chain salons in major metropolitan areas. The expansion takes the form
metropolitan areas. The expansion takes the form of opening new stores, as of opening new stores, as well as purchasingwell as purchasing independently-ow
independently-owned salons and transferring them over to ned salons and transferring them over to the chain. Additionally, this trend hasthe chain. Additionally, this trend has occurred with the full-service, family hair cutting stores.
occurred with the full-service, family hair cutting stores. The reason for this
The reason for this trend is similar to other industries that are trend is similar to other industries that are consolidating; cost saving measures.consolidating; cost saving measures. Cranium is not participating in this trend of aligning itself with a chain. Cranium believes that it has Cranium is not participating in this trend of aligning itself with a chain. Cranium believes that it has better insight to its local market and would rather apply this
better insight to its local market and would rather apply this specialized insight to its marketspecialized insight to its market instead of adopting the procedures of a
instead of adopting the procedures of a national chain.national chain.
40,000 40,000 60,000 60,000 80,000 80,000 100,000 100,000 120,000 120,000 140,000 140,000 160,000 160,000 Males Males Females Females Mothers w/children Mothers w/children
Market Forecast
Market Forecast
2.1.4
2.1.4 Market
Market Growth
Growth
For the last seven years the hair cutting industry has grown steadily at 5% a year. The industry is For the last seven years the hair cutting industry has grown steadily at 5% a year. The industry is generally unaffected by economic upturns or downturns. While in upturns,
generally unaffected by economic upturns or downturns. While in upturns, women are more likelywomen are more likely
to purchase extra services such
to purchase extra services such as hair coloring or perms, although as hair coloring or perms, although generally the consumptiongenerally the consumption pattern is unchanged. This is somewhat intuitive as
pattern is unchanged. This is somewhat intuitive as most people need and get a haircut most people need and get a haircut based onbased on an elapsed amount of time, independent of the
an elapsed amount of time, independent of the economic environment that they are in.economic environment that they are in.
0.00% 0.00% 2.00% 2.00% 4.00% 4.00% 6.00% 6.00% 8.00% 8.00% 10.00% 10.00% M
Maallees s FFeemmaallees s MMootthheerrs s ww//cchhiillddrreenn
Target Market Growth
Target Market Growth
2.2
2.2 SWOT
SWOT Analysis
Analysis
The following SWOT analysis captures the key
The following SWOT analysis captures the key strengths and weaknesses within the company, andstrengths and weaknesses within the company, and describes the opportunities and threats facing Cranium Filament Reductions.
describes the opportunities and threats facing Cranium Filament Reductions.
2.2.1 Strengths
2.2.1 Strengths
•
• Excellent Excellent retairetail spl space ace in a in a wellwell-tra-traveleveled md mall.all. •
• Well-traWell-trained emined employployees with goees with good hair cuttod hair cutting skiling skills with a wide stls with a wide style repyle repertoertoire, andire, and customer-focused business practices.
customer-focused business practices. •
• A wide A wide ranrange ge of sof serverviceices ofs offerfered.ed. •
• CompCompetetititivive pre priciceses..
2.2.2 Weaknesses
2.2.2 Weaknesses
•
• As a new entrant to tAs a new entrant to the markhe market, Craet, Cranium lanium lacks bracks brand equind equity that maty that many of its comny of its competitpetitorsors have earned over years of service.
have earned over years of service. •
• The strugglThe struggle to appe to appear conear continuatinually on thlly on the edge e edge in terin terms of fashms of fashion and sion and style.tyle. •
• Large cosLarge costs assts associociateated witd with a starh a start-ut-up compp company.any.
2.2.3 Opportunities
2.2.3 Opportunities
•
• A steady growinA steady growing markeg market that is tradt that is traditionaitionally unaflly unaffectefected by the econod by the economic envimic environmeronment.nt. •
• The ability to dThe ability to decreecrease marase marginal fginal fixed cixed costs as the osts as the customcustomer baser base growe grows.s. •
convenience sensitive. Men typically care less about the
convenience sensitive. Men typically care less about the task of getting their haircut. For task of getting their haircut. For themthem whatever is easiest works best. Women are more
whatever is easiest works best. Women are more concerned with hair styling and tend to concerned with hair styling and tend to bondbond more with their stylists. This bond creates loyalty
more with their stylists. This bond creates loyalty to their stylist. Once a to their stylist. Once a stylist has earned theirstylist has earned their trust they are more willing to blindly put their hair in the
trust they are more willing to blindly put their hair in the stylists hands.stylists hands.
2.4 Services
2.4 Services
Cranium Filament Reductions provides hair styling for the entire family. This includes haircuts for Cranium Filament Reductions provides hair styling for the entire family. This includes haircuts for men and women, permanents and hair coloring for women,
men and women, permanents and hair coloring for women, as well as haircuts for cas well as haircuts for children.hildren.
Shampoos will be offered for all adult services. Service is offered on a walk in
Shampoos will be offered for all adult services. Service is offered on a walk in basis or bybasis or by
appointment. Cranium Filament Reductions will emphasize a
appointment. Cranium Filament Reductions will emphasize a customer-centric service where thecustomer-centric service where the
customer's needs are always the
customer's needs are always the priority.priority.
Cranium Filament Reductions will also sell hair care products that
Cranium Filament Reductions will also sell hair care products that are forecasted to account are forecasted to account forfor
15% of sales. These
15% of sales. These professional quality supplies will include shampoos, conditioners,professional quality supplies will include shampoos, conditioners, reconstructors, brushes, combs, and other s
reconstructors, brushes, combs, and other s tyling aids.tyling aids.
2.5
2.5 Keys
Keys to
to Success
Success
Keys to success include: Keys to success include:
•
• ProfProfesessisiononalalisism.m. •
• CoConnvveenniieennccee.. •
• CustCustomomer er atattetentntioion.n.
2.6
Sun Press is much
Sun Press is much smaller than the Plain Dealer, it is more geographically targeted.smaller than the Plain Dealer, it is more geographically targeted. •
• In-store and Store Front Displays:In-store and Store Front Displays: These displays will be visible to the These displays will be visible to the large walk-large walk-through traffic base.
through traffic base.
3.1 Mission
3.1 Mission
Cranium Filament Reductions' mission is to provide reasonably priced, convenient hair styling. We Cranium Filament Reductions' mission is to provide reasonably priced, convenient hair styling. We exist to attract and maintain cu
exist to attract and maintain cu stomers. When we adhere to this maxim, everything else will fallstomers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of
into place. Our services will exceed the expectations of our customers.our customers.
3.2
3.2 Marketing
Marketing Objectives
Objectives
•
• IncreaIncrease rese repeapeat custt customeomers by 7rs by 7% per q% per quaruarterter.. •
• Decrease Decrease customcustomer aer acquiscquisition ition costs costs by 8by 8% pe% per yer year.ar. •
• MaintaMaintain posin positiitive, stve, steadeady groy growth ewth each mach monthonth..
3.3
3.3 Financial
Financial Objectives
Objectives
•
• Increase thIncrease the amoe amount of unt of retairetail prl products oducts sold sold by 10by 10% pe% per year year.r. •
• Grow thGrow the pre profiofit mat margirgin by n by 3% p3% per yer yearear.. •
• ProfProfititababililitity by y by yeyear oar onene..
3.4
hip styling that Cranium can offer. hip styling that Cranium can offer.
Cranium Filament Reductions will also target mothers with children by offering kids toys to play Cranium Filament Reductions will also target mothers with children by offering kids toys to play with while they wait and
with while they wait and child-friendlchild-friendly hair stylists. Additionally, children receive a special ratey hair stylists. Additionally, children receive a special rate reflecting the fact that children's hair grows so
reflecting the fact that children's hair grows so fast that it can fast that it can be expensive to keep up with be expensive to keep up with regularregular cuts as well as the recognition that it generally takes a lot less time to cut a child's hair so it should cuts as well as the recognition that it generally takes a lot less time to cut a child's hair so it should be inherently less
be inherently less expensive.expensive.
3.5 Positioning
3.5 Positioning
Cranium Filament Reductions will position itself as a
Cranium Filament Reductions will position itself as a convenient, full service, family hair salon.convenient, full service, family hair salon. Cranium will offer one-stop service offerings. Cranium will
Cranium will offer one-stop service offerings. Cranium will leverage its competitive edge to achieveleverage its competitive edge to achieve its desired positioning:
its desired positioning: •
• Cranium FilamCranium Filament Reduent Reductionsctions' competi' competitive edgtive edge is based on supere is based on superior customior customer servier service.ce. Cranium Filament Reductions recognizes that the hair cutting/styling market is crowded so Cranium Filament Reductions recognizes that the hair cutting/styling market is crowded so it is difficult to stand out.
it is difficult to stand out. Cranium Filament Reductions will be able to by providing superiorCranium Filament Reductions will be able to by providing superior customer attention. This is particularly important in the
customer attention. This is particularly important in the "quick salon" space that Cranium"quick salon" space that Cranium operates in because margins are lower and the goal of a quick salon is to crank through a operates in because margins are lower and the goal of a quick salon is to crank through a large number of people each day.
large number of people each day. •
• Cranium will iCranium will invest tinvest time and mome and money into trney into trainiaining to ensurng to ensure that clie that clients reents receive tceive the besthe best experience possible making it is easier to turn them into
experience possible making it is easier to turn them into a long-term customer. Bya long-term customer. By
providing superior customer service, Cranium will be able to
providing superior customer service, Cranium will be able to effectively compete againsteffectively compete against
and outlast larger chains and independent stores. and outlast larger chains and independent stores.
3.6
3.6 Strategy
Strategy Pyramids
Pyramids
The single objective is to position Cranium as the
3.7
3.7 Marketing
Marketing Mix
Mix
Cranium's marketing mix is comprised of
Cranium's marketing mix is comprised of the following approaches to pricing, distribution,the following approaches to pricing, distribution, advertising and promotion, and customer service.
advertising and promotion, and customer service. •
• Pricing:Pricing: Cranium's pricing scheme will be based on Cranium's pricing scheme will be based on a competitive pricing model with othera competitive pricing model with other similar service providers.
similar service providers. •
• Distribution:Distribution: All of Cranium's services and products will be dispensed from its centrallyAll of Cranium's services and products will be dispensed from its centrally located store.
located store. •
• Advertising and Promotion:Advertising and Promotion: Locating the store in Locating the store in a high traffic mall will significantlya high traffic mall will significantly increase visibility. A targeted advertising campaign will also communicate Cranium's desired increase visibility. A targeted advertising campaign will also communicate Cranium's desired messages.
messages. •
• Customer Service:Customer Service: All of Cranium's employees have been trained in exceptional customerAll of Cranium's employees have been trained in exceptional customer service. All employees have discretion to remedy any problems encountered on their own service. All employees have discretion to remedy any problems encountered on their own without having to first receive permission from a
without having to first receive permission from a supervisor.supervisor.
3.8
3.8 Marketing
Marketing Research
Research
During the initial phases of the marketing plan construction, several focus
During the initial phases of the marketing plan construction, several focus groups were held to gaingroups were held to gain
insight into the buying patterns of
insight into the buying patterns of prospective customers. The focus groups drew a wide range of prospective customers. The focus groups drew a wide range of people from women to men to mothers. The participants were asked what type of service they people from women to men to mothers. The participants were asked what type of service they typically use and why. They
typically use and why. They were also asked how their current service could be were also asked how their current service could be improved and whatimproved and what it would take to get
it would take to get them to switch to them to switch to a new salon. They were given a a new salon. They were given a bit of information regardingbit of information regarding Craniums offerings and they evaluated this. The focus
Craniums offerings and they evaluated this. The focus groups provided invaluable information andgroups provided invaluable information and feedback. While some of the information
feedback. While some of the information gathered was already known to Cranium, othergathered was already known to Cranium, other information were things that made perfect sense but had not been thought of.
($30,000) ($30,000) ($20,000) ($20,000) ($10,000) ($10,000) $0 $0 $10,000 $10,000 $20,000 $20,000 $30,000 $30,000 $ $0 0 $1$100,,77770 0 $$2211,,55440 0 $$3322,,33110 0 $$4433,,00880 0 $$5533,,885500
Monthly break-even point
Monthly break-even point
Break-even point = where line intersects with 0 Break-even point = where line intersects with 0
Break-even Analysis
Break-even Analysis
Table 4.1:
Table 4.1: Break-even AnalysisBreak-even Analysis
Break-even Analysis: Break-even Analysis: M
Moonntthhlly y UUnniitts s BBrreeaakk--eevveen n 22,,115566 M
Moonntthhlly y SSaallees s BBrreeaakk--eevveen n $$3322,,334400 Assumptions:
Assumptions: A
Avveerraagge e PPeerr--UUnniit t RReevveennuue e $$1155..0000 A
Avveerraagge e PPeerr--UUnniit t VVaarriiaabblle e CCoosst t $$11..8800 E
4.2
4.2 Sales
Sales Forecast
Forecast
The first month will be used to
The first month will be used to set up the store and set up the store and hire and train the employees. The store will behire and train the employees. The store will be officially open the second month. Sales for month
officially open the second month. Sales for month two through will four will be somewhat slow, astwo through will four will be somewhat slow, as Cranium will be building up a customer base. From month four on
Cranium will be building up a customer base. From month four on sales will grow steadily.sales will grow steadily.
$0 $0 $5,000 $5,000 $10,000 $10,000 $15,000 $15,000 $20,000 $20,000 $25,000 $25,000 $30,000 $30,000 $35,000 $35,000 $40,000 $40,000 Ja
Jan n FeFeb b MaMar r ApApr r MaMay y JuJun n JuJul l AuAug Seg Sep p OcOct t NoNov Decv Dec
Males Males Females Females
Women with young children Women with young children Retail hair care products Retail hair care products
Monthly Sales Forecast
Monthly Sales Forecast
Table 4.2:
4.3
4.3 Expense
Expense Forecast
Forecast
Marketing expenses are to be budgeted so
Marketing expenses are to be budgeted so that they are high during ththat they are high during th e first quarter in order toe first quarter in order to raise visibility for the start-up organization. They will then settle down a bit until the
raise visibility for the start-up organization. They will then settle down a bit until the winter monthswinter months
when they will ramp up as the
when they will ramp up as the winter months are a time when there is winter months are a time when there is an increase in spending onan increase in spending on hair care in preparation for the winter holidays.
hair care in preparation for the winter holidays.
$0 $0 $200 $200 $400 $400 $600 $600 $800 $800 $1,000 $1,000 $1,200 $1,200 $1,400 $1,400 $1,600 $1,600 Ja
Jan n FeFeb b MaMar r ApApr r MMay Juay Jun n JuJul l AuAug Sep Oct g Sep Oct NoNov Decv Dec
Store front displays Store front displays
Plain Dealer advertisements Plain Dealer advertisements Sun Press advertisements Sun Press advertisements
Monthly Expense Budget
Monthly Expense Budget
5.0 Controls
5.0 Controls
The purpose of Cranium's marketing plan is to
The purpose of Cranium's marketing plan is to serve as a guide for the serve as a guide for the organization. The followingorganization. The following areas will be monitored to gauge performance:
areas will be monitored to gauge performance: •
• ReveRevenunue: me: montonthlhly any and and annunualal.. •
• ExpeExpensnseses: mo: montnthlhly any and and annuanual.l. •
• RepRepeaeat but busisinenessss.. •
• CustCustomomer er sasatitisfsfacactitionon..
5.1
5.1 Implementati
Implementation
on Milestones
Milestones
The following milestones identify key marketing programs. It is important to accomplish each one The following milestones identify key marketing programs. It is important to accomplish each one on time, and on budget.
on time, and on budget.
Marketing plan completion Marketing plan completion
Storefront design and shop set up finished Storefront design and shop set up finished
Advertising campaign #1 Advertising campaign #1
Milestones
Milestones
5.2
5.2 Marketing
Marketing Organization
Organization
Susan Sever, the owner,
Susan Sever, the owner, will be primarily responsible for the marketing activities. Susan will usewill be primarily responsible for the marketing activities. Susan will use outside assistance for some of
outside assistance for some of the creative activities.the creative activities.
5.3
5.3 Contingency
Contingency Planning
Planning
Difficulties and Risks Difficulties and Risks
•
• Problems Problems genegeneratinrating eg enough nough sales sales througthroughout hout the the day.day. •
• An usually slow fiAn usually slow first and serst and second quacond quarter thrter that could hat could have a signave a significaificant effent effect on cash flowct on cash flow.. •
• Road constructRoad construction near tion near the mall whe mall which wouhich would have a sigld have a significnificant effeant effect on customct on customer trafer traffic.fic. Worst Case Risks May Include
Worst Case Risks May Include •
• DeterminiDetermining that tng that the busihe business caness cannot supnnot support iport itseltself on an ongof on an ongoing baing basis.sis. •
S
Saallees s JJaan n FFeeb b MMaar r AAppr r MMaay y JJuun n JJuul l AAuug g SSeep p OOcct t NNoov v DDeecc M
Maallees s $$0 0 $$55,,44884 4 $$66,,22554 4 $$88,,55447 7 $$1166,,55445 5 $$1188,,55445 5 $2$211,,55445 5 $$2233,,55555 5 $$2266,,88774 4 $$2288,,77445 5 $$2299,,88554 4 $$3311,,225544 F
Feemmaallees s $$0 0 $$55448 8 $$66225 5 $$88555 5 $$11,,66446 6 $$11,,88555 5 $$22,,11555 5 $$22,,33556 6 $$22,,66887 7 $$22,,88775 5 $$22,,99885 5 $$33,,112255 W
Woommeen n wwiitth h yyoouunng g cchhiillddrreen n $$0 0 $$555 5 $$663 3 $$885 5 $$11665 5 $$11885 5 $$22115 5 $$22336 6 $$22669 9 $$22887 7 $$22999 9 $$331133 R
Reettaaiil l hhaaiir r ccaarre e pprroodduucctts s $$0 0 $$99113 3 $$11,,00441 1 $$11,,44223 3 $$22,,77440 0 $3$3,,00888 8 $$33,,55887 7 $$33,,99222 2 $$44,,44775 5 $$44,,77886 6 $$44,,99771 1 $$55,,220044 T
Toottaal l SSaallees s $$0 0 $$77,,00000 0 $$77,,99883 3 $$1100,,99110 0 $$2211,,00996 6 $$2233,,66773 3 $$2277,,55002 2 $$3300,,00669 9 $$3344,,33005 5 $$3366,,66993 3 $$3388,,11009 9 $$3399,,889966 D
Diirreecct t CCoosst t oof f SSaallees s JJaan n FFeeb b MMaar r AAppr r MMaay y JJuun n JJuul l AAuug g SSeep p OOcct t NNoov v DDeecc M
Maallees s $$0 0 $6$6558 8 $$77550 0 $$11,,00226 6 $$11,,99885 5 $$22,,22225 5 $$22,,55885 5 $$22,,88227 7 $$33,,22225 5 $$33,,44449 9 $$33,,55882 2 $$33,,775500 F
Feemmaallees s $$0 0 $$666 6 $$775 5 $$11003 3 $$11998 8 $$22223 3 $$22559 9 $$22883 3 $$33222 2 $$33445 5 $$33558 8 $$337755 W
Woommeen n wwiitth h yyoouunng g cchhiillddrreen n $$0 0 $$7 7 $$8 8 $$110 0 $$220 0 $$222 2 $$226 6 $$228 8 $$332 2 $$334 4 $$336 6 $$3388 R
Reettaaiil l hhaaiir r ccaarre e pprroodduucctts s $$0 0 $$33665 5 $$44116 6 $$55669 9 $$11,,00996 6 $$11,,22335 5 $$11,,44335 5 $$11,,55669 9 $$11,,77990 0 $$11,,99114 4 $$11,,99888 8 $$22,,008822 S
Suubbttoottaal l CCoosst t oof f SSaallees s $$0 0 $$11,,00996 6 $$11,,22449 9 $$11,,77008 8 $$33,,22999 9 $$33,,77005 5 $$44,,33005 5 $$44,,77006 6 $$55,,33770 0 $$55,,77443 3 $$55,,99665 5 $$66,,224455
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S
Sttoorre e ffrroonnt t ddiissppllaayys s $6$6000 0 $$0 0 $$0 0 $$0 0 $$0 0 $$55000 0 $$0 0 $$0 0 $$0 0 $$0 0 $$0 0 $$00 P
Pllaaiin n DDeeaalleer r aaddvveerrttiisseemmeenntts s $$55000 0 $$55000 0 $$55000 0 $$55000 0 $$11550 0 $$11550 0 $1$1550 0 $$11550 0 $5$5000 0 $$55000 0 $$55000 0 $$550000 S
Suun n PPrreesss s aaddvveerrttiisseemmeenntts s $$44000 0 $$44000 0 $$44000 0 $$44000 0 $$11000 0 $$11000 0 $$11000 0 $$11000 0 $$44000 0 $$44000 0 $4$4000 0 $$440000
-- ---- --- -- -- -- -- ---- -- -- - - -- -- -- -- -- ---- -- -- -- -- - - -- -- -- ---- -- -- -- ---- - - - - -- ---- -- -- -- ---- -- -- - - - --- -- -- -- ---- -- -- -- ---- - - -- -- -- -- -- -- -- ---- -- -- - - -- -- -- -- -- ---- -- -- -- -- - - -- -- -- -- -- -- -- -- -- ---- - - -- -- -- -- -- -- -- ---- -- -- - - -- -- -- -- -- ---- -- -- -- -- - - -- -- -- ---- -- -- -- -- -- -- - - -- -- -- -- -- ---- -- -- -- ---T
Toottaal l SSaallees s aannd d MMaarrkkeettiinng g EExxppeennssees s $$11,,55000 0 $$99000 0 $$99000 0 $$99000 0 $$22550 0 $$77550 0 $$22550 0 $$22550 0 $$99000 0 $$99000 0 $$99000 0 $$990000 P
Peerrcceennt t oof f SSaallees s 00..0000% % 1122..8866% % 1111..2277% % 88..2255% % 11..1199% % 33..1177% % 00..9911% % 00..8833% % 22..6622% % 22..4455% % 2..32366% % 22..2266%% C
Coonnttrriibbuuttiioon n MMaarrggiin n (($$11,,550000) ) $$55,,00004 4 $$55,,88334 4 $$88,,33002 2 $$1177,,55447 7 $$1199,,22118 8 $$2222,,99447 7 $2$255,,11113 3 $$2288,,00335 5 $$3300,,00550 0 $$3311,,22444 4 $$3322,,775511 C
Coonnttrriibbuuttiioon n MMaarrggiin n / / SSaallees s 00..0000% % 7711..4499% % 7733..0077% % 7766..1100% % 8833..1188% % 8811..1188% % 8833..4444% % 8833..5522% % 8811..7722% % 8811..9900% % 8181..9999% % 8822..0099%%
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