Marketing Plan

TERM PAPER ON

PRINCIPLES OF MARKETING

PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION AND MANAGEMENT BBA PROGRAM DECEMBER 2006

MARKETING PLAN

INNOVATION

SUBMITTED TO M. Amzad Hossain Sarker Lecturer Department of Marketing Faculty of Business Administration and Management Patuakhali Science and Technology University

SUBMITTED BY Innovation Group No: 4 Level-2, Semester –1 Session: 2004-2005

A report submitted to the Department of Marketing for Principals of Management in partial fulfillment of the requirement for the final examination of BBA

DATE OF SUBMISSION: 5 DECEMBER, 2006

GROUP LIST

Debasis Dutta Roll 016 Reg. 00675

Estiak Hossain Susan Roll 019 Reg. 00678

Noman Mahmud Roll 003 Reg. 00662

Azmol Ahmed Roll 013 Reg. 00672

Shofiq Uddin Khan Roll 023 Reg. 00682

Level-02 semester-01 Patuakhali Science & Technology University Dumki, Patuakhali. 5 December 2006 M Amzad Hossain Sarker Lecturer Dept. Of Marketing Faculty of Business Administration & Management Patuakhali Science & Technology University Dumki, Patuakhali. Sir, Here the term paper on, “Marketing Plan”, you asked us to prepare this report as a course requirement of “Principles of Marketing”. We the students of Group: 04, BBA- 2nd Batch, have made this term paper along with our group members. The report has undoubtedly enhanced our knowledge regarding the” Marketing Plan”. We came to learn about several basic contents of marketing plan through this report. We therefore, would like to request you to accept our report, and thank you for giving us the opportunity of the report. We believe our report on “Marketing Plan” has been succeeded and we truly enjoyed it. We will be happy to get such reports further. Sincerely Yours, DEBASIS DUTTA

Group Leader-04 (INNOVATION) BBA 2nd BATCH

ACKNOWLEDGEMENT It is with affection and appreciation that we acknowledge our indebtedness to our honorable course teacher M. Amzad Hossain Sarker, Lecturer, Department of Marketing, Faculty of Business Administration & Management, Patuakhali Science & Technology University, Dumki, Patuakhali., who assigned us to make this report and helped us with his support, encouragement and expertise. We are also very grateful to our friends & many individuals, for their enthusiastic encouragements & helps during the preparation of this report and for their assistance in typing and proofreading this manuscript.

EXECUTIVE SUMMARY This report is an assigned job as a partial fulfillment of course requirement by our honorable course teacher M Amzad Hossain Sarker, Lecturer, Faculty of Business Administration & Management, Patuakhali Science & Technology University, Dumki, Patuakhali. It’s an optimum aggregated outcome of five pupils about “Marketing Plan.” The view of this report was to make a consciousness about marketing plan and strategies for current marketing situation. Here some points were thoroughly studied to make it an effective report. The analyzed information was thoroughly revised first, and then organized. The processed data were interpreted to achieve the report objective. Reporting on Marketing Plan without sufficient reference books is not an easy job to accomplish, but we have enjoyed it very much.

INTRODUCTION

We have made this term paper on “Marketing Plan” for achieving in-depth knowledge over it. Through this term paper, we have come to know a detail on marketing plan. This term paper discuss about the analysis of Marketing Plan, its characteristics, essentiality, role over market etc. We have made our best to gather adequate information and we hope this will help all the students to gather a rich knowledge on “Marketing Plan”

PURPOSE OF THE REPORT We have assigned this report for our practical fulfillment on “Principles of Marketing” course. There is another trend for such a term paper, because this term paper will help us to increase practical knowledge on Marketing Plan. This is an opportunity for knowing the theory of Marketing Plan. The report will help us to implement any decision on Marketing Plan in future. This term paper express the result that what we earn by our six month worship. To make our own evaluation on “Principles of Marketing” the report will help us partially. This is an opportunity to find out something more about the marketing plan, because for making this term paper we have to visit different web sites, and many books of marketing.

LIMITATIONS OF THE TERM PAPER As a student of Faculty of Business administration & Management, level- 2, semester-1, we have red “Principles of Marketing” for the first time. So making a term paper on “Marketing Plan” was really tuff job to us. Besides this we have encountered with some other problem, such as•

Marketing is a vast course and Marketing Plan is one of the greatest part of it. In our textbook “principles of Marketing”, there is only a single paragraph of Marketing Plan. Therefore, it was very tuff to make a report based on such a topic.

•

For preparing this report, we have to rely heavily in internet. In our university area there is no internet connection, moreover we are suffering from shortage of computer facilities. So make our way more complicated.

•

We have to collect most of the information from Patuakhali, because of using internet. During collecting information and preparing the term paper there is an unrest situation in allover the country. Most often the computer shops remain closed, which hampered our term paper.

METHOD OF COLLECTING DATA AND PREPARE THE

ORIGIN OF THE TERM PAPER (REPORT) We are lucky to say that our honorable course teacher of “Principles of Marketing” M Amzad Hossain Sarker gives us the opportunity to produce this report. He assigned us a report on “Marketing Plan”. This report is prepared based on theory and some information has collected from internet (www.marketingplan.com & http://www.websitemarketingplan.com ) and from a renowned journal “Marketing plan pro.” Some other information also collected from our textbook and other books.

PROCEDURE FOR GATHERING DATA Preparing this report on Marketing Plan, we follow several methods and research approach. The major portion of this report based on secondary data. The web page of marketing plan (www.marketingplan.com and http://www.websitemarketingplan.com) and the renowned journal “Marketing plan pro” help us to find out the sample of marketing plan, outlines, different tips, its definition, and others related information. We have also collected data from several books along with our textbook. This is the procedure for gathering data of our report.

Ta 

ble of Contents Topics Name Acknowledgement Executive summery Introduction Purpose of the report Limitation Origin of the report Procedure of gathering data The marketing plan The purpose and content of marketing plan Marketing Plan Tips The Marketing Plan and the Business Plan Sample Marketing Plan for ‘Javanet’ Conclusion Bibliography

Page No

THE MARKETING PLAN: AN INTRODUCTION

A marketing plan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer. The marketing plan implements your marketing strategy. Or, "the marketing strategy provides the goals for your marketing plans. It tells you where you want to go from here. The marketing plan is the specific roadmap that's going to get you there. "* •

A marketing plan may be developed as a standalone document or as part of a business plan. Either way, the marketing plan is a blueprint for communicating the value of products and/or services to your customers. A Marketing Plan is a written document that details the actions necessary to achieve a specified marketing objective(s). It can be for a product or service , a brand , or a product line

From where the Marketing plan needed Managing the marketing process requires the four marketing management functions- Analysis, Planning, Implementation, and Control. The company first develops company wide strategic plans, and then translates them into marketing plan for each division, product and brand Analysis Planning

Implementation

Develop strategic plans

Carry out the Plans

Control Measure results Evaluate results

Develop marketing plans

Take corrective actions

* "The Key to Marketing: Use a Plan", Author: Bobette Kyle

THE PURPOSE AND CONTENT OF MARKETING PLAN

It serves to document how the organizations strategic objectives will be achieve through specific marketing strategies and tactics, with the customer as the starting point. It is also link to the plans of other departments with in the organization. Without the appropriate level of organizational support and resources, no marketing plan can succeed. Although the exact length and layout will vary from company to company, a marketing plan usually contains the sections described in following Content Purpose Executive summary Presents a brief summary of the main goals and recommendations of the plan for management review, helping top management to find the plans major points quickly. Current marketing situation

Describes the target market and company’s position in it, including information about the market, product performance, competition, and distribute. This section includes : • A market description that defines the market and major segments. • A product review, that shows sales, prices, and gross margins of the major products in the product line. • A review of competition, which identifies major competitors and assesses their markets. • A review of distribution, which evaluates recent sales trends and other developments in major distribution channels.

Threats and Assesses major threats and opportunities that the product opportunity analysis might face, helping management to anticipate important positive or negative development t5hat might have an impact on the firm and it’s strategies. Objectives and issues

States the marketing objectives that the company would like to attain during the plan’s term and discusses key issues that will affect their attainment.

Marketing strategy

Outlines the broad logic by which the business unit hopes to achieve it’s marketing objectives and the specifics of target markets, positioning, and marketing expenditure levels.

Actions programs

Spells out how marketing strategies will be turned into specific actions programs.

Budgets

Details a supporting marketing budget that is essentially a projected profit –and- loss statements. It shows expected revenues and expected cost.

Controls

Outlines the control that will be used to monitor progress and allow higher managements to review implementation results and spot products that are not meeting their goals.

MARKETING PLAN TIPS

A marketing plan is more than something you “have to do” each year. It is the framework upon which your company is marketing success depends. As you begin the planning process for 2006, keep these important tips in mind: 1. Be strategic. There are more good marketing programs out there than you can shake a stick at, much less implement. Your job is to figure out – through the planning process – which of those programs makes strategic sense for your business. The marketing plan can then help you stay focused throughout the year. Think goals and objectives. A strategic marketing plan is about identifying marketing programs that will result in achieving your business goals. Start with the big picture objectives then define general strategies that support those goals. Finally, identify specific marketing programs that can “make it happen” for your business. For example, a goal may be to expand sales of the Widget Brand by 15% in the coming year. Potential strategies for doing this could include: (1) Improving the existing Mini Widget, (2) increasing sales force penetration and (3) creating a new line of Widgets. Each strategy is a different approach to increasing Widget sales, and each requires different supporting actions and marketing programs to achieve the goal of increasing sales by 15%. Programs to improve the Mini Widget could include (1) adjusting pricing, (2) updating the packaging or (3) adjusting the marketing message to emphasize a more appealing benefit. Contrast this to programs designed to increase sales force penetration (such as bringing on a new broker or establishing the ability to gather leads and take orders online). The right actions and programs for your particular business can vary dramatically, depending on your goals and strategies. Consequently, strong strategic analysis behind your marketing plan can make a dramatic difference in the success of your marketing efforts. 2. Understand that feeling uncertain is normal. Feeling overwhelmed or incredibly confused at the beginning of the planning process is expected. The purpose of planning is to find your way to the best actions for your business. As you progress towards the end of the analysis, the best programs to include in your marketing plan to grow your particular business will become clearer.

3. Be realistic. realistic Optimism is a plus in marketing your business, but understand your company’s limitations. A small or one-person business can implement only a fraction of the marketing programs that large companies can. So, choose programs carefully and concentrate on seeing them through as the year progresses. 4. Stay focused. focused Your marketing plan is only as good as your implementation. Keeping your “eye on the ball” – rather than spreading yourself too thin and implementing poorly – can make the difference between profit and loss. 5. Watch the budgets. budgets For each marketing program included in your plan, spend some extra time and collect real-world costs to use in the budget. This can prevent overspending later on. 6. Put measurements in place. place It is difficult to tell if a marketing program is a success if there are no mechanisms to measure results. Write up what you wish to accomplish with the program, how you are going to measure those accomplishments, and your baseline measurements. Later – during and after execution – you will be able to identify and fix problems as well as pinpoint reasons for success. 7. Don’t forget all four of marketing’s P’s. Promotion gets a lot of

attention. Pricing, place (distribution strategies) and product are equally important to the bottom line. Consider adding new or improved products/services to the mix, evaluating pricing strategies and improving distribution, along with advertising and promotional campaigns. Following through with these seven marketing plan tips will strengthen both the long-term and short-term foundations upon which your business depends.

THE MARKETING PLAN AND THE BUSINESS PLAN

When writing the business plan, the Marketing Plan section explains how you are going to get your customers to buy your products and/or services. The marketing plan, then, will include sections detailing your: • • • •

Products and/or Services and your Unique Selling Proposition Pricing Strategy Sales/Distribution Plan Advertising and Promotions Plan

The easiest way to develop your marketing plan is to work through each of these sections, referring to the market research you completed when you were writing the previous sections of the business plan. Products and/or Services This part of the marketing plan focuses on the uniqueness of your product or service, and how the customer will benefit from using the products or services you're offering. Use these questions to write a paragraph summarizing these aspects for your marketing plan: What are the features of your product or service? Describe the physical attributes of your product or service, and any other relevant features, such as what it does, or how your product or service differs from competitive products or services. How will your product or service benefit the customer? Remember that benefits can be intangible as well as tangible; for instance, if you're selling a cleaning product, your customers will benefit by having a cleaner house, but they may also benefit by enjoying better health. Brainstorm as many benefits as possible to begin with, and then choose to emphasize the benefits that your targeted customers will most appreciate in your marketing plan. What is it that sets your product or service apart from all the rest? In other words, what is your Unique Selling Proposition, the message you want your customers to

receive about your product or service that is the heart of your marketing plan? The marketing plan is all about communicating this central message to your customers. The role of research Marketing plans are not create in a vacuum. To develop successful strategies and actions programs, marketers need up-to-date information about the environment, the competition, in the market segment to be serving. Often, analysis of internal data is the starting point for assessing the current marketing situations. As the plan is put into effect, marketers use advertisement and other forms of research to measure progress toward objective and identifiy areas for improvement. This deeper understanding provides a foundation for building competitive advantages through well informed segmenting, targeting, and positioning decisions, The role of relationship The marketing plan shows how the company will establish and maintain profitable customer relationships. However, it also shapes a number of internal and external relationships. First, it affects how marketing personnel work with each other and with departments. Second, it affects how the company works with suppliers, distributors, and strategic alliance partners to achieve the objectives listed in the plans. Third, it influences the company’s dealings with other stakeholders. From marketing plan to marketing action Companies generally create yearly marketing plans, although some plans cover a longer period. Marketers start planning well in advance of the implementation date to allow time for marketing research, through analysis, management review, and co ordination between departments. Some marketers design contingency plans, as in the sample plan below, for implementation if certain conditions emerge. For effective unimplementation and control, the marketing plan should define how progress toward objectives will be measured. Managers typically use budget, schedules and performance standard for monitoring and evaluating results.

Sample Marketing Plan for ‘Javanet’ JavaNet, is a cafe, including a great opportunity for communication and entertainment through the medium of the Internet. This section takes you inside the Marketing plan for ‘Javanet’.

1.0 Executive Summary

3.7.3 Promotion

2.0 Situation Analysis

3.7.4 Service

2.1 Market Summary

3.8 Marketing Research

Target Markets

4.0 Financials, Budgets, and

2.1.1 Market Demographics

Forecasts 4.1 Break -even Analysis

Market Analysis 2.1.2 Market Needs

Break -even Analysis

2.1.3 Market Trends

Break -even Analysis

Market Forecast

4.2 Sales Forecast

2.1.4 Market Growth

Monthly Sales Forecast

Target Market Gro

wth

2.2 SWOT Analysis

4.3 Expense Forecast Monthly Expense Budget

2.2.1 Strengths 2.2.2 Weakness

Sales Forecast

es

Marketing Expense Budget 4.4 Linking Sales and

2.2.3 Opportunities

Expenses to Strategy

2.2.4 Threats

Sales vs. Expenses Monthly

2.3 Competition

4.5 Contri bution Margin

2.4 Services

5.0 Controls

2.5 Keys to Success

5.1 Implementation Milestones

2.6 Critical Issue

Milestones

s

2.7 Macroenvironment 3.0 Marketing Strategy 3.1 Mi ssion 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Marketing 3.5 Positioning 3.6 Strategy Pyramids 3.7 Marketing Mix

Milestones 5.2 Marketing Organization 5.3 Contingency Planning

1. Executive Summary

The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in the JavaNet business plan a reality in the year 1999. JavaNet, unlike a typical cafe, provides a unique forum for communication and entertainment through the medium of the Internet. The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) a place to socialize and share these experiences with friends and colleagues. Marketing will play a vital role in the success of JavaNet. JavaNet must build a brand around the services it offers by heavily promoting itself through local television, radio, and print advertising. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer satisfaction.

Our target markets include: • Students from nearby housing centers. • Business people from the downtown business centers and professional buildings. • Seniors from nearby retirement facilities.

2. Situation Analysis

JavaNet just opened its doors for business a little over a month ago. Business is good, and customers have been impressed with our offerings, but we need to focus our efforts on implementing the strategies, programs, and tactics outlined in the original business plan.Sales are brisk and in-line with projections. The local community is rapidly accepting the Internet services side of the business. Memberships are meeting the projections outlined in the business plan, and sales of Internet services are meeting the goals forecast. Students love to gather for late-night sessions, nearby seniors are getting a glimpse of what the Internet offers and local business people love to stop by for a quick bite and an email check. Market Summary JavaNet is faced with the exciting opportunity of being the first-mover in the local cyber-cafe market. The consistent popularity of coffee, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results here. Target Market Growth: • University students continue to grow at a steady pace, at nearly 4% • Office workers in the downtown area and nearby professional buildings continue to add value, growing at 3% • Seniors are becoming an important part of downtown business, growing at almost 6%

• Teens continue to play a major role in downtown foot-traffic, growing at 2%

Market Demographics JavaNet's customers can be divided into two groups. The first group is familiar with the Internet and made up of students from the University of Oregon and business people from nearby downtown offices and professional centers. The second group is not as familiar with the Internet. This group is made up of seniors from the downtown retirement centers. They use the Internet to communicate with friends and family and they will be regular users of the Java Net service. Market Analysis Potential Customers

Growth 2004

2005

2006

2007

2008

CAGR

University Students

4%

10,000

10,400

10,816

11,249

11,699

4.00%

Office Workers

3%

20,000

20,600

21,218

21,855

22,511

3.00%

Seniors

6%

3,000

3,180

3,371

3,573

3,787

6.00%

Teenagers

2%

2,000

2,040

2,081

2,123

2,165

2.00%

Other

0%

0

0

0

0

0

0.00%

Total

3.50%

35,000

36,220

37,486

38,800

40,162

3.50%

Market Needs Factors, such as addiction, and historical sales data ensure that the high demand for coffee will remain constant over the next five years. The potential growth of the Internet is enormous, to the point where one day, a computer terminal with an online connection will be as common and necessary as a telephone or toilet.. Establishing itself as the first cyber-cafe in the area, JavaNet will enjoy the first-mover advantages of name recognition and customer loyalty. Initially, JavaNet will hold a 100 percent share of the cybercafe market locally. In the next five years, competitors will enter the market. JavaNet has set a goal to consistently maintain a market share of greater than fifty percent. Market Trends People like to communicate their Internet experiences with their friends, colleagues, and family. However, it can be difficult to do it in front of a computer terminal at the office or in the family study. A comfortable place to gather and share these experiences is becoming a real need. JavaNet will provide: • A meeting place for business people interested in sharing their Internet-based business ideas. • A social hub for students and young people interested in sharing a beverage and their Internet experiences with friends. • A place for nearby seniors to gather and learn about the powers of the Internet and better communication methods. •

A stopping point for travelers in need of an Internet connection.

Market Growth The market for the services JavaNet will offer is growing rapidly. The cybercafe has not come to this area yet, but similar services are growing rapidly on a global scale. Large cities that cater to large numbers of traveling business people and tourists have been saturated with businesses offering the services JavaNet will offer. The student population continues to grow as the University grows in popularity with high-school graduates from out of state. JavaNet will target these groups with radio and TV spots on local stations.

Fig: - Market Forecast

Fig:- Target Market Growth

SWOT Analysis The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses JavaNet must address. It also allows us to examine the opportunities presented to JavaNet as well as potential threats. JavaNet has a valuable inventory of strengths that will help it succeed. These strengths include: a knowledgeable and friendly staff, state-of-the-art computer hardware, and a clear vision of the market need. Strengths are valuable, but it is also important to realize the weaknesses JavaNet must address. These weaknesses include: a dependence on quickly changing technology, and the cost factor associated with keeping state-of-the art computer hardware. JavaNet's strengths will help it capitalize on emerging opportunities. These opportunities include, but are not limited to, a growing population of daily Internet users, and the growing social bonds fostered by the new Internet communities. Threats that JavaNet should be aware of include, the rapidly falling cost of Internet access, and emerging local competitors. Strengths

1. Knowledgeable and friendly staff. We have gone to great lengths at

JavaNet to find people with a passion for teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager to please. 2. State-of-the art equipment. Part of the JavaNet experience includes

access to state-of-the-art computer equipment. Our customers enjoy beautiful flat-screen displays, fast machines, and high-quality printers. 3. Up-scale ambiance. When you walk into JavaNet, you'll feel the

technology. High backed mahogany booths with flat-screen monitors inset into the walls provide a cozy hideaway for meetings and small friendly gatherings. 4. Clear vision of the market need. JavaNet knows what it takes to

build an upscale cyber cafe. We know the customers, we know the technology, and we know how to build the service that will bring the two together.

Weaknesses 1. A dependence on quickly changing technology. Internet is the

technology that is the Internet changes rapidly. JavaNet needs to keep up with the technology because a lot of the JavaNet experience is technology. 2. Cost factor associated with keeping state-of-the-art hardware.

Keeping up with the technology of the Internet is an expensive undertaking. JavaNet needs to balance technology needs with the other needs of the business. Opportunities 1. Growing population of daily Internet users. The population of

daily Internet users increases, so will the need for the services JavaNet offers.

2. Social bonds fostered by the new Internet communities.

JavaNet will capitalize on this social trend by providing a place for smaller and local Internet communities to meet in person. Threats 1. Rapidly falling cost of Internet access. The cost of access to the

Internet for home users is dropping rapidly. 2. Emerging local competitors. Currently, JavaNet is enjoying a first-

mover advantage in the local cyber-cafe market. However, additional competitors are on the horizon. Competition The dual product/service nature of JavaNet's business faces competition on two levels. JavaNet competes not only with coffee retailers, but also with Internet service providers. Heavy competition between coffee retailers creates an industry where all firms face the same costs. There is a positive relationship between price and quality of coffee. Some coffees retail at $8/pound, while other more exotic beans may sell for as high as $16/pound. Wholesalers sell beans to retailers at an average of a 50% discount.

Services Some of the Internet and computing services available to JavaNet customers are listed below: • • • • •

Customers can sign up for a JavaNet email account. Popular Internet utilities will be available. Access to Netscape or Internet Explorer browsers. Access to laser and color printing. Access to popular software applications.

JavaNet will also provide good coffee, specialty drinks, bakery goods, and a comfortable environment will provide JavaNet customers with a home away from home; a place to enjoy the benefits of computing in a comfortable and well kept environment

Macro environment The retail coffee industry in this area experienced rapid growth at the beginning of the decade and is now moving into the mature stage of its life cycle. Many factors contribute to the large demand for good coffee: The student population at the University is a main source of demand for coffee retailers. JavaNet seeks to provide its customers with affordable Internet access in an innovative and supportive environment.

3. Marketing Strategy

JavaNet has three main strategies. • The first strategy focuses on attracting novice Internet users • The second and most important strategy focuses on pulling in power Internet users. Power users have knowledge and web-browsing experience that novice Internet users find attractive and exciting.

• The third strategy focuses on building a social environment for JavaNet customers.

Mission JavaNet has one purpose. JavaNet provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. JavaNet's marketing will consistently build on this mission Marketing Objectives JavaNet's marketing objectives for the first three years of operation include: • Grow total sales by 10% annually. • Build customer loyalty through educational programs. • Maintain a staff of enthusiastic employees excited to share their Internet knowledge with JavaNet customers. • Build the JavaNet brand to the point where it becomes a household word in the area.

Financial Objectives The goal of this marketing plan is to outline the marketing strategies, tactics, and programs that will make the vision outlined in the JavaNet business plan a reality in the year 2000. The vision outlined in the business plan includes sales of roughly $275,000 in the first year with that figure increasing 10% annually Target Marketing

JavaNet intends to cater both to people who want a guided tour of the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, JavaNet will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere.. JavaNet's target market covers a wide range of ages: from members of "Generation X," who grew up surrounded by computers, to seniors from local retirement centers. Our primary target markets include: 1. Students. The large student population will become an important

part of the JavaNet customer base. Evening entertainment, access to the Internet, and the up-scale ambiance will attract this demographic. 2. Business people. The downtown business community is growing

rapidly. JavaNet will provide a perfect setting for business meetings. It will also give traveling business people an opportunity to plug their laptops into the JavaNet network to check email communications. 3. Seniors. Represent a growing population of Internet users. JavaNet

will target the seniors in the nearby downtown retirement centers by offering "Introduction to the Internet" classes. JavaNet will position itself as an upscale coffee house and Internet service provider. JavaNet will build customer loyalty and spread the word about the services JavaNet offers

Positioning JavaNet will position itself as an upscale coffee house and Internet service provider. Business people of all types will use JavaNet as a place to hold meetings and catch-up on email communications. Students from nearby downtown housing centers will use JavaNet as a place to socialize and discuss the latest Internet sites. Seniors from downtown retirement centers will

experience the Internet for the first time at JavaNet. Programs designed to teach newcomers about the power of the Internet will help build customer loyalty and spread the word about the services JavaNet offers Strategy Pyramids The following are the three key strategies JavaNet will focus on: JavaNet's first strategy focuses on attracting novice Internet users. JavaNet plans to attract these customers by providing a novice-friendly environment. Knowledgeable employees focused on serving the customer’s needs will staff JavaNet. JavaNet's second strategy will be focused on attracting power Internet users who will provide an important function at JavaNet. JavaNet plans to attract this type of customer by providing the latest in computing technology, scanning and printing services and access to powerful software applications. The third strategy focuses on building a social environment for JavaNet customers. A social environment that provides entertainment will serve to attract customers that wouldn't normally think about using the Internet. Marketing Mix JavaNet's marketing efforts will focus on building a loyal base of customers that will use the services provided on an almost daily basis.

Services and Service Marketing JavaNet provides the local community with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that JavaNet provides.

Pricing JavaNet bases its prices for coffee and specialty drinks on the "Retail Profit Analysis" provided by supplier, Allann Brothers Coffee Co., Inc. Allann Brothers has been in the coffee business for 22 years and has developed a solid pricing strategy. JavaNet considered three sources to determine the hourly charge rate. First, JavaNet considered the cost to use other Internet servers. Second, JavaNet looked at how cyber-cafes in other markets such as Portland and Ashland went about pricing Internet access. Third, JavaNet used the market survey conducted in the fall of 1998. Evaluating these three factors resulted in JavaNet's hourly price of $2.50. Promotion JavaNet will spend almost fifty thousand dollars in its first year of operations to build a brand and a loyal customer base. Marketing efforts will be focused on the local market, and the campaign will run the entirety of 1999, A Few Specific Marketing Efforts • Local TV spots • Print Materials • Local Newspapers •

Local Radio Spots

Marketing Research In 1998, a market survey was conducted to help evaluate the business viability prior to its inception. The survey was a valuable resource for establishing pricing and market needs. We will continue to conduct a survey of our customers and potential customers on an annual basis. Survey results will be

used to create new marketing programs and monitor the performance of current marketing programs.

4. Financials, Budgets, and Forecasts

The marketing plan is built on these truths: 1. The marketing budget is based on a percentage of sales value. Currently, that value is set at 20%. 2. Building a strong brand and brand loyalty is critical to the success of JavaNet. 3. The relationship between marketing dollars spent and revenues generated is positive only to a certain point; we plan to spend more than 20% of sales on marketing in future years. Break-even Analysis JavaNet is operating in an industry capable of supporting high gross margins. Variable costs in relationship to per-unit revenues are low. JavaNet It continue to build relationships with our suppliers, this value will decrease further, approaching a value of 20%. Fixed costs for JavaNet include payment of debt, facility lease costs, hardware costs, and other costs JavaNet must maintain on a monthly basis. These costs are fixed and aren't impacted by an increase or a decrease in sales. Currently, JavaNet will break even at a monthly sales point of $10,000.

Break-even Analysis: Monthly Units Break-even

2,986

Monthly Revenue Break-even

£10,002

Assumptions: Average Per-Unit Revenue

£3.35

Average Per-Unit Variable Cost

£0.84

Estimated Monthly Fixed Cost

£7,500

Fig:-Break-even Analysis

Sales Forecast Revenues for the first year of operation are based on an almost 10% growth rate from month to month. Annually, beyond the first year of operations, we're predicting a growth rate of roughly 10%. We'll have a better idea of potential

growth rate beyond year one as we make our way through our first year. The plan will be updated as we receive more information. Monthly Sales Forecast Sales Forecast Sales

2004

2005

2006

Row 1

£0

£0

£0

Other

£0

£0

£0

Total Sales

£0

£0

£0

Direct Cost of Sales

2004

2005

2006

Row 1

£0

£0

£0

Other

£0

£0

£0

Subtotal Direct Cost of Sales

£0

£0

£0

Expense Forecast One of our strongest strengths is our marketing and brand building capabilities, and the aggressive marketing budget is a reflection of the importance we attribute to our marketing activities. Currently, the marketing budget beyond year one remains set at 20% of sales. It is our hope to increase this budget should sales and efficiencies of scale allow us to do so. Explanation of Major Marketing Expenses Monthly Expense Budget Marketing Expense Budget 2004

2005

2006

Local TV Spots

£23,000

£25,300

£27,830

Print Materials

£6,750

£7,425

£8,168

Local Newspapers

£3,300

£3,630

£3,993

Local Radio Spots

£12,000

£13,200

£14,520

JavaNet Events

£9,000

£9,900

£10,890

Customer Happiness Representative

£28,500

£31,350

£34,485

Other

£1,500

£1,650

£1,815

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------------

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Total Sales and £84,050 Marketing Expenses

£92,455

£101,701

Percent of Sales

0.00%

0.00%

0.00%

Contribution Margin Sales vs. Expenses Monthly The Contribution Margin chart and table presents a strong outlook for JavaNet's first year of operations. • Sales increase an average of 10% per month in the first year. • Contribution margin runs at roughly 50%. • The marketing budget is consistently based on 20% of total revenue. • A strong focus on local TV and radio is apparent in the expense breakdown. • The marketing budget is spread evenly throughout the year.

5. Controls

The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in the JavaNet business plan a reality in the year 2000. We have these marketing obstacles to face: • The creation of a unique, innovative, upscale atmosphere that will differentiate JavaNet from other local coffee shops and future Internet cafes. • The establishment of JavaNet as a community hub for socialization and entertainment. • The creation of an environment that won't intimidate the novice user. Our marketing efforts will be focused on building the image outlined above. We have milestones and sales goals to meet and a business plan outlining our first and second year of business in detail. Implementation Milestones The milestones chart below outlines key dates that the marketing team must meet. The milestones table includes both sales goals and deadlines for major projects that affect the programs outlined in the Marketing Expense Budget. Each milestone is assigned a manager and that manager has ownership of the task and is responsible for its success. We will track our successes and failures by reviewing planned-vs.-actual results. Successes and failures will be reviewed and addressed and a quarterly basis. Marketing Organization The founder of JavaNet, Cale Brockman, has a BS from the University of Oregon in Marketing and Management and will head the marketing effort. Initially, there will only be one additional member of the marketing team, the "Customer Happiness Representative." This position has not yet been filled, but it is the first milestone that must be completed. The "Customer Happiness Representative" will play a large role in implementing the different marketing programs. A marketing manager will be hired during the third or fourth quarter if revenues meet projections.

Contingency Planning This marketing plan is just that, a plan. Plans don't always work out and we have to be ready to deal with the likelihood that JavaNet won't make good on the projections outlined in this plan.

CONCLUSION

Through strategic planning, the company decides what it wants to do with each business units. Marketing planning involves deciding on marketing strategies that will help the company attain its overall strategic objectives. A detailed marketing plan is need for each business, product or brand. As a marketer one, need a good marketing plan to provide direction and focus for brand, product, or company. With a detailed plan, any business will be better prepared to launch a new product or build sales for existing products. Nonprofit organization also use marketing plan to guide their fundraising and outreach effort. Even government agencies put together marketing plans for initiatives.

BIBLIOGRAPHY

1. Kotler Philip & Armstrong Gray; Principles of marketing, Pearson

Education Pte. Ltd, 11th edition. 2. www.marketingplan.com 3. http://www.websitemarketingplan.com