Business Plan Preparation

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Business Plan Preparation

  1. 1. Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Marketing Strategy
  2. 2. Tonight  Marketing Strategy  Revenue Model  Customer Surveys  In the Fire – Industry Analysis & Model Company  Hand-in  10 Call Reports  Competitive matrix Marketing Strategy
  3. 3. Next Week  Business Analysis Assignment  Present Mar 5  PowerPoint 10 minutes, 6-8 slides  Market Analysis  Industry Analysis  Product/Service Description  Profitability Marketing Strategy
  4. 4. Business Analysis Assignment (cont)  Hand-in 3 ring binder  Market Analysis - draft  Industry Analysis - draft  Product/Service Description - draft  Value Chain analysis  Competitive matrix  Financial COMP’s  Revenue Model  20 interview Call Reports Marketing Strategy
  5. 5. Business Plan Elements  Executive Summary  Company Overview  Market & Industry Analysis  Product/Service Description  Marketing Plan  Operations Plan  Development Plan  Management  Competitive Advantage  Financial Plan  Funding Marketing Strategy
  6. 6. Marketing Plan Objectives  Build on Market & Industry Analysis  Define the strategies & key actions to exploit the opportunity Marketing Strategy
  7. 7. Marketing Plan Outline  Customer Research  Target Market Strategy  Channel Strategy  Positioning  Product/Service Strategy  Pricing Strategy  E-commerce  Communications Strategy  Sales Strategy  Revenue Model Marketing Strategy
  8. 8. Customer Research  Show your results  George’s Questionnaire - qualitative 20 people  Surveys – walk-up, mailed, email, on-line  Prove  You solve a problem  Features are wanted  Customer understands the benefits  Customer will pay your price  You know how customer decides  Don’t cook the books Marketing Strategy
  9. 9. How Do Customers Make Decisions?  Decision making process – where, when & how  Initiator, Influencer, Decider, Purchaser & User  Identify criteria used to make decisions  Criteria may be different than your features  Customers buy benefits Marketing Strategy
  10. 10. Target Market Strategy  Consumers vs. purchasers  Profile of the customers you will serve  Consumer: demographics, psychographics & values  Business: industry, size, location, purchase decision  How will you overcome brand loyalty? What will cause customers to switch?  Future markets Marketing Strategy
  11. 11. Channel  Describe and justify the distribution channels  Potential channels  Distributors, wholesalers, retailers  OEM’s & VAR’s  E-commerce  Describe how you will gain access to the channels  Identify specific companies  Decision making process  Delivery to your customers, e.g. UPS is not the channel Marketing Strategy
  12. 12. Positioning  Positioning is in the mind of the customer, relative to the competition  What must target customer believe about you  “perceptions, impressions and feelings”  How are you unique & different?  Other considerations  Name of your company  Company characteristics – essence of personality, tone & manner Marketing Strategy
  13. 13. Attribute Map Attribute 1 Competitor 3 You Competitor 1 Competitor 2 Attribute 2 Marketing Strategy
  14. 14. Hot Chocolate Flavour Brown Palace HC Ski Resort cafe Hershey packets Convenience Marketing Strategy
  15. 15. Hot Chocolate “Coolness” HC Ski Resort cafe Hershey Price packets Brown Palace Marketing Strategy
  16. 16. Product/Service Strategy  Not the description  Product/service roll out  Initial product/services  Future product/services  Enhance the product/service with operations & service  Actions to sustain competitive advantage  New features & benefits  New technology  New process  What features & benefits are most persuasive to get the customer to act? Marketing Strategy
  17. 17. Pricing Strategy  Describe and justify your pricing strategy  Provide evidence that your target market will accept your price  Position your pricing relative to current and potential competition  Low price usually is NOT a good strategy!  Measure of management Marketing Strategy
  18. 18. What Are the Pricing Methods?  Value pricing - how much is customer willing to pay?  Commodity pricing  Set by the market  Supply and demand  Seasonality & perishability  Competition  Payback period – depends on impact on company profit  Rule of thumb – Keystone  Introductory low price to get customers to use  Cost plus – markup  Transaction fee  Razor & razor blade  A la carte Marketing Strategy
  19. 19. Communications  How you will communicate with current and potential customers?  Advertising – paid advertising newspapers, magazines, TV, internet  Public relations – articles in paper, journals, blogs, websites  Printed materials – flyers, brochures  Performances, concerts, exhibitions  Exhibitions  Why is this the most effective strategy?  Be imaginative! Be a guerilla! Marketing Strategy
  20. 20. Guerilla Examples I  New restaurant invites local hairdressers for free meal just after opening  Mattress retailer has sleep over advertising on the ceiling of a retail store  News is created so it will be covered in local newspaper  Computer store does computer training for underprivileged kids  Owner makes bold predictions, does something unusual  Articles are written by the entrepreneur for newspapers Mike Morris, Syracuse University Marketing Strategy
  21. 21. More Guerilla Examples II  Reciprocal advertising: two businesses mention one another in their ads  Store offers discount card/coupon that appreciates in value each time it is used  Coupon that is worth something different each time it is used  Theatre places speakers outside front of facility with movies soundtracks playing; bakery purposely lets smells waft into customer passageway of mall Mike Morris, Syracuse University Marketing Strategy
  22. 22. More Examples III  Bowling alley charges based on number of bowling pins customer knocks down  Bicycle retailer puts promotional tags on bike racks around town  Day care center adds cameras and streaming videos so parents can see how children are treated  Flower shop with lack of visibility at their location decorates popular park and some small cafes in the area with creative and simple flower arrangements Mike Morris, Syracuse University Marketing Strategy
  23. 23. Sales Strategy  How will you get orders?  How will you recruit,  Personal selling train, and compensate  Online purchasing  TV infomercials our sales force?  Direct mail  How will you support  800 telephone the sales effort?  Who will do the selling?  Internal staff  An internal sales force  Service operations  Field sales force  Manufacturer's reps  Telephone solicitors Marketing Strategy
  24. 24. Revenue Model Marketing Strategy
  25. 25. Two Approaches  Top down – market penetration & timing  Bottom up – pipeline, revenue by customer Marketing Strategy
  26. 26. Revenue Model Marketing Strategy
  27. 27. Revenue Model Marketing Strategy
  28. 28. Revenue Model Marketing Strategy
  29. 29. Revenue Model Marketing Strategy
  30. 30. Revenue Model Marketing Strategy
  31. 31. Revenue Model Marketing Strategy
  32. 32. Revenue Model Marketing Strategy
  33. 33. Revenue Model Marketing Strategy
  34. 34. Revenue Model Variables  Market potential - number of customers, transactions or units, purchases  Size & growth  Market share - penetration rate  Product/Services offered  Roll-out strategy  Range & mix  New Products/Services  Obsolescence  Frequency of purchase – per day/week/month  Capacity Utilization – per time period, event  Prices  Price per customer, transaction or unit  Average revenue per customer or transaction  Channel strategy - discount Marketing Strategy
  35. 35. Revenue Model (Bottom-up)  Identify specific customers  Identify decision maker  Determine  Annual purchases today & future  Who purchase from & level of satisfaction  What do you need to do to get an order?  If you meet the criteria, how much business can you expect? Marketing Strategy

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