Marketing Plan Helper D. Bennett

1. Marketing Plan HelperD. Bennett Marketing: Concepts3110 Consumer Behavior 3216 Sports 3220 and Management: Entrepreneurship 3277 Business Policy 3280

2. Overview of the marketing plan and grading SBT Projects – Product Marketing Campaign: • Your SBT will launch a marketing campaign for a product that will be given to you in class. The teams will present their launch plan to Mr. Bennett or a panel of guest. An overview of the plan’s elements is listed below. • Overview of Business/Marketing Plan Elements: • Introduction ( SBTs name and team members’ names must be type on the presentations cover sheet, failure to do so will result in a deduction of 15 pts from the final grade. Teams must hand in a bound and printed copy of the presentation to the instructor at the beginning of the presentation. Slides should be printed one slide per page. Failure to turn in a copy of the presentation in this form will result in a deduction of 20 pts from the final grade. Students must be dressed appropriately for the presentation. Failure to do so will result in a deduction of 20 pts from the final grade). • Executive Summary (5 pts): Overview of the plan including final recommendations for price, placement, product, and promotion • Overview of the Market’s macro and micro environment (5 pts) • Competitive Analysis (5 pts) • Overview of the Firm (5 pts) • Target Market Analysis (10 pts) • Marketing Objectives (10 pts): Measurable and realistic goals. • Marketing Strategies: How the goals will be achieved • Pricing Strategy ( 5 pts): • Product Strategy (5 pts): • Placement Strategy (5 pts): • Promotional Strategy (10 pts):

3. Overview of the marketing plan and grading • Promotions/Marketing Tactics (10 pts): Activation examples of creative pieces for AT LEAST THREE of the following channels: • Internet Marketing • Television Advertisement • Print Advertisement • Radio Advertisement • Outdoor Advertisement • In-Store Display (POP) • Grass Roots Marketing Program • PR Campaign (Press release for the shoes launch or a product launch event) • Consumer Promotion • Financial Statements (10 pts): These differ for each class, see end of slide show • Overall Relevance (5 pts): Connectivity of all parts of the marketing plan • Q and A Session (5 pts): Group’s ability to defend the viability of this plan • Presentation (5 pts): Groups ability to manage their time while communicating their points effectively. Points may also be awarded or deducted based on the team’s use of material, and props • Plans should be 20 minutes in length with 5 minutes for questions and answers. Pleas note that teams will not be allowed to present past the 20 minute mark.

4. Marketing Plan Help • OK, • Student always ask for help with this plan so I thought I’d send this to everyone in a couple of classes. Please note that this slide show will give both definitions as well as examples of the basics. Please do not turn in a cut and paste version of this slide show (especially with the definitions) but use it as a guide to build your own great presentation. • Also, do not wig out, this is just an example, your presentation will most likely be shorter • If you are assigned to work with an actual business I will note what parts of the presentation that business may assist you with. • All I will also note which things that are not applicable to your class • Best of luck

5. Executive Summary • The Executive Summary • Keycomponent of the written business plan • An overview (What is your audience going to see here) • Objectives, and quick overview of how they will be achieved via Product, Price, Placements, Promotions, market, & competitive advantages • This is the single most important written part of plan • Most widely distributed • Readers typically start with executive summary

6. Macro Environment: • The external factors which affect a company's planning and performance, and are beyond its control: • Socio • Economic • Legal/political • Technological change • Regulatory • For our purposes we will look at the external factors inside the United State’s economy

7. Environmental Scanning: What is Environmental Scanning: The Process of continually acquiring information on events occurring outside the firm to identify and interpret trends

8. Micro Environment: Industry Analysis • The immediate context of a company's operations and industry, including elements such as suppliers, customers and competitors • Industry Analysis Basics: • Size of Industry (# of consumers, $ in sales) • Major Players in the industry • Growth of the industry • Trends in the industry • Distribution Analysis (see attached examples) • Critical success factors (not applicable to Marketing 3110 students) • Porters Five Forces Analysis • Note: If you are assigned to work with an actual firm they may provide you with info on all data points except the critical success factors and Porters Five Forces Analysis.

9. Distribution Analysis Example: Lotion Sales in the United States by Customer The numbers are actually for another category, please do not ever use them! DB

10. Distribution Analysis Example: Channels of Distribution • The Mass Channel is currently the most important channel of distribution with a 50.4% share of the market and a grow at rate of 20% per year. New sales revenue come from: • Food (grocery stores) sales • New product/markets

11. Overview of the Firm: • Elevator Pitch (Only for Management 3277) • Brand Review • Vision Statement • Mission Statement • Product Statement • Point of differentiation • Competitive Analysis • SWOT Analysis • Overall Generic Strategy (not for MRKT 3110)

12. The Elevator Pitch • The Elevator Pitch (Only for Management 3277) • A 30-second action-oriented description of a business designed to sell the idea of the business to another • Leads with the hook, follows up with purpose of the service, ends with where business is now • What makes firm unique or superior? • Use a metaphor to quickly and easily draw a picture in the mind of your audience: • Bennett, Burton, Sterling and Dumar will be the Deloitte and Touché of the South East • Delancy’s Art Supplies will be the Wal-Mart of the arts and craft world • Jimmy’s Hot Dog Carts will be the Hooters of the mobile vending industry • Findmeahouse.com will be the Google for home buyers

13. Brand Review • Where is the brand currently at? • Revenue • Growth • Product Portfolio • Past marketing efforts (4P’s) • This is an update on what other marketers have done with the brand. • What have they done (4P’s) • Who have they targeted • Has it worked? Why or why not? • Note: • If you are assigned to work with an actual firm they may provide you with info on all data points but your SBT must provide the analysis on why the past marketing has or has not worked • Also this will not applicable for the initial launch of a new company

14. Vision Statement • Create your own vision statement for your company or product/business unit: Please do not turn in a statement that currently exist • Vision Statement Examples: • Suave: To become a value icon • 1Eastman Kodak: To be the world’s best in chemicals and electronic imaging • 1British Airways: To be the World's Favourite Airline • 1Henry Ford’s vision for Ford “The horse will disappear from the highways, the automobile will be taken for granted.“ 1Still don’t have a clue? Here’s a quick check! 1. Do you have a vision statement and, if so, is it highly motivational? 2. How does society benefit from your product or service? 3. What is the basic driving "idea" behind your business? 4. What emotional pull could your vision use? 5. Write a vision that is simple, easy to grasp and that reflects the business you are in 1: www.empoweringmessages.com

15. Mission Statement • A good Mission Statement says: what we do, who we do it for, and how we do it (not always in that order). Create your own mission statement for your company or product/business unit (examples below):

16. SWOT Analysis of the firm The SWOT Analysis is a tool that allow us to see the firm/business unit’s strengths and weaknesses (internal contingencies we can change ourselves) and Opportunities and Threats (external contingencies we can not control but must be aware of) and position ourselves to take advantage of or prepare a defense for these things. Note: If you are assigned to work with an actual firm they may NOT provide you a SWOT. However you may interview someone to get information needed to create a SWOT • Strengths • Strong brand recognition • Cross Category branding • Positioning as leading value brand in Hair Care (HC) • Weaknesses • Vass product line (over 800 SKUs) creates difficulties in ordering and doesn’t maximize economies of scale • Failure of the Suave Toothpaste weakened relationship with Wal-Mart • Flanker brands growth • Opportunities • Increasing needs in the male, and tweens market • Capturing consumers that trade down in brands during economic down turns • Threats • Rising price of petroleum may result in high prices for freight (due to gas price increases) and product packaging (price of bottles and shipping) • Backward integration of value retailers such as Target and Wal-Mart • VO5 restage • Consumer trading down to generic brands in economic down turns Internal External

17. Product Statement • Product statement will tell what your product is and includes your point of differentiation; what makes your product is unique • PRO Cheerleader Magazine is the only magazine that provides stories, insight, role models and inspiration from Pro Cheerleaders to other current and potential cheerleaders of all ages. *Only PRO Cheerleader Magazine has the Professional Cheerleader’s point of view. • Gatorade, enabling athletes to rehydrate, replenish, and refuel with great refreshing flavors, *nothing rehydrates a body better than Gatorade, not even water • * the point of differentiation • Not applicable to MGMT 3280

18. Competitive Analysis • Define your competition: What firms and brands are you competing against, how large are they. • Not applicable to MGMT 3280

19. Competitive Analysis • Perceptual mapping shows your position vs. that of your competitor (examples below) Sports Teams Jean Manufactures Perceptual mapping may show areas for growth or repositioning. Also can point out the relevance of all players point of differentiation • Not applicable to MGMT 3280

20. Overall Generic Strategy Not Applicable to Marketing 3110, and 3220 Projects Three generic strategies to overcome the five forces and achieve competitive advantage. Which is your firm currently applying, which do you recomend? • Overall cost leadership • Low-cost-position relative to a firm’s peers • Manage relationships throughout the entire value chain • Differentiation • Create products and/or services that are unique and valued • Non-price attributes for which customers will pay a premium • Combination Overall Cost Leadership and Differentiation • Focus strategy • Focus Overall Cost Leadership of Focus Differentiation • Narrow product lines, buyer segments, or targeted geographic markets • Attain advantages either through differentiation or cost leadership

21. Three Generic Strategies Not Applicable to Marketing 3110 and 3220 Projects

22. 1 Geography 2 Demographics 3 Psychographics 4 Benefits Sought 5 Usage Rate Target Market • Overview of the Target Audience: • Use Primary and Secondary Data: • Understand and be able to effectively target consumers via one or more of the following: • Not applicable to MGMT 3280

23. Target Market • Get to know what your target audience wants. Don’t just say let’s add Y to brand X, ask who is your target and do research to determine what they want. • Use at least one of the following to gain consumer insight and implement these findings in your project. • Survey • Interview • Focus group • Not applicable to MGMT 3280

24. Target Market: Example of a Consumer’s Psychographic Profile (primary research) for “all” detergent • Value Minded Consumer • Psychographics: • Polls showed the “X brand” consumer: • Enjoy finding lower priced items (barging hunters) • Make their own decision (not just trend followers) • Is relationship oriented (caring) • Takes pride in being a good household manager • Doesn’t put down other brands or people who use them • Thinks that fancier packaging and promises doesn’t guarantee a better product • Not applicable to MGMT 3280

25. Target Audience Example: • A Cheerleading Magazine's Target Audience’s Demographics and Psychographics (primary research) • Not applicable to MGMT 3280

26. Target Market: Example of Primary Research Results Suave Buyer Age Index vs. Total Pop Suave HH Income: Index vs. Total Pop • Not applicable to MGMT 3280

27. Target Market: Example of Primary Research Results Suave HH SizeIndex vs. Total Pop Suave Presence of Kids: Index vs. Total Pop • Not applicable to MGMT 3280

28. Target Market: Example of Primary Research Results Race of Suave AP/DEO Users Index vs. Total Pop Race of Suave HC Users Index vs. Total Pop Race of Suave BW Users Index vs. Total Pop Race of Suave HBL Users Index vs. Total Pop

29. Organizational Direction:Objectives • Types of objectives: You must have an objective for all items specific to your course and at least one other from the list below or elsewhere. • Typical types of objectives • Profit • Market Share (Required for all) • Customer Satisfaction (Required for 3216) • Quality (Required for 3216) • Sales (Required for all) • Top of Mind Awareness (Required for 3216) • Increase in Brand Preference or Ranking (Required for 3216) • Increase Share of Requirement/Usage • Penetrate new markets • Restructure/minimize dept (Required for 3277 and 3280) • Customer Eternal Learning Objectives visa vi the Balance Score Card (Required for 3280) • Increase key financial rations (Required for 3280)

30. Business Objectives Examples • Objectives must be measurable, challenging, and realistic • Marketing Objective Examples: • Increase sales by 8% ($200,000,000) vs. YAG (year ago) • Increase brand’s top of mind awareness among consumers by 10% vs. 2006 Nielson report • Increase cross category awareness and consumption (purchase of 2+ products) among women ages 19-49 by 5 pts over levels achieved in 2006 (Nielson National FDM sales report) • Increase consumers perception of the brand as “a grate value” by 2pts vs 2006 annual consumer survey

31. Business Objectives Examples • Objectives must be measurable, challenging, and realistic • Financial Objective Examples (Not for marketing 3110) • Achieve revenue growth of 10% per year • Increase earnings by 15% annually • Increase dividends per share by 5% per year • Increase net profit margins 2% to 4% • Boost annual returns on invested capital from 15% to 20%

32. Strategies • The overarching rules that will make sure whatever we do will lead to fulfilling at least one objective • Example of strategies from the Suave Brand: • Leverage the popularity of Suave hair care products • Partner with other value icons to build programs that reward cross category consumption • Partner with key consumers to establish multi-brand presence in stores • Target new consumers • Tweens • Men • Not applicable to MGMT 3280

33. Tactics • The action points in the plan. All points must be on strategy • Points may be based off a common theme or platform • Sports • Tag line • Coke is it • Gatorade, is it in you • Mc Donald's I’m loving it • Gotta Wanna Needa Getta Hava Bojangles • Yes, I do expect you to have an example in your slide show or in hand for the tactics you are suggesting.

34. Tactics: Examples for Suave • Product • New products for New Secondary Target Market • Today’s youth and teen market represents one of the most lucrative and influential demographics in the industry. • Female tweens (age 6- 12) and teens (age 14-19) spend $55+ billion a year in disposable income, have significant spending power • Psychographic: • They follow trends quickly • Do not want to be told what is cool or good by adults • Want brands that look neat and like advertising that features slightly older kids

35. Financial Information for Group Projects

36. Marketing Budget Overview Budgets will include • Estimated dollars needed • Spending by marketing medium • Incremental sales lift via spending • Forecasted brand P&L (of PBO) via incremental lift in sales, variable contribution of all products (existing and new) and marketing expenses • Not applicable to MGMT 3280

37. How to Create a Marketing Budgets • Your marketing budget should be based on the following : • Total budget = 10% your products total sales from the previous year. OR • Total budget = Total amount needed to move the sales of your product from it’s current state to your plan’s desired state. This may also be stated as 10% of the past years sales + X, where X is the additional spending needed OR • Total budget = Match the budget of your main competitor OR • Total budget = The industry average budgeted as a % of average industry sales • Please be prepared to defend the reasoning behind your choice of budget preparation. • Not applicable to MGMT 3280

38. Marketing Financials for 3110, 3216, 3220, and 3277 • Your financials should include: • Sales and by distribution channel • Marketing budget by marketing tactic/promotional spending • Incremental fixed cost for R&D/Innovations • Profit and loss statement: (All other classes see examples given to you on pro formas, balance sheets, etc) • Here your P&L will be based on what is referred to in some industries as PBO (profit before overhead). PBO reflects variable contribution from all sells less MD&E (total marketing and display expenses and any incremental spending to acquire, repair, or improve tangible assets). • MRKT 3110: Please note that if the syllabus calls for a 3 to 5 year budget, your budget may be for only one year • OK, before you freak out, keep reading

39. Additional Financials for 3216, 3220, and 3277 • For new product, sports team or firm you’ll need to provide a 1,2, and 5 year proforma

40. MRKT 3110 and 3220 Product Cost • If your team was given a brand to work with such as “all detergent” but you were not partnered with actually work with that firm, please use the data from the following slides to determine your costs. • In your products current state, the following assumptions can be made: • Wholesale price = 50% of the Wal-Mart EDLP • Wholesale price to other retailers = 55% of Wal-Mart EDLP • Your variable cost = 33% of the Wal-Mart wholesale price • Example:

41. MRKT 3110 and 3220 Product Considerations • There may be a things that you might want to alter or change about your product. Here are a few things you can do:

42. MRKT 3110 and 3220 Product Considerations • All these changes come at a price (of course) Please use the following variable and fixed cost for altering your product The numbers above are based on the variable cost associated with assumptions given on the previous slide, please note this when adjusting your wholesale and retail sales prices

43. More Food for thought • The following slides may prove helpful. You do not have to use the information found here. • Note, don’t just stop with what you find here. You are encouraged to seek and use additional information.

44. Other things to consider Please note the business reference desk in the library has great pricing information. You should make at least one trip there.

45. Cost and ROI • You’ll need to justify your suggested spending for each marketing program. • This is normally done by stating how many people you’ll reach in your target audience relative to the cost of the program. The following measures are typically used for pull methods (media, consumer promotions, internet, outdoor, and PR campaigns) • We normally we find cost broken out in Cost per Thousand (CPM) or Cost per House Hold to determine • How much we’ll need to spend to reach our target • If the rate of the medium/program is good compared to other available alternatives • Other measurements include: • Cost Per Impression or CPI: Amount paid/number of potential viewers reached once • Cost Per Click or CPC: Amount paid/number of viewers that click on the website. May be a fixed cost paid per viewer • Pay Per Click or PPC, Here the advertiser only pays an agreed rate for each person that clicks onto a link or advertisement banner • Push methods like In store display programs are usually not measured by impressions or reach but by showing the incremental lift in sales that the project is forecasted to bring

46. TV: What are they watching and how much will it cost me • OK so how much does it cost to run a national commercial. The answer is the good old MBA answer…… it depends. • Forbes Magazine (my favorite, check the link on the website) reported the following cost to run an ad once nationally during the following shows in 2006: • $745,000 = 30 sec spot on American Idol • $4730,500 = 30 sec spot on Friends (2004) • $323,000 = 30 sec spot on Monday Night Football • $2,600,000 = 30 sec spot during the 2007 Super Bowl • Let’s try to work this down to a more useful formula for your non -“Super Bowl” spending….

47. TV: What are they watching and how much will it cost me • OK, TV ads are priced and bought by network, show and day part. For our (intro to marketing) purposes we’ll just use network, show and day part to frame what channels our target market are watching. For cost you can assume that can reach 80,000 households more than 200 times for about $10,000/channel/month. • Now you have to determine how many households you need to reach!

48. Radio: ABC’s • Radio and TV people speak a different language when it comes to marketing. While they both price based on day part, network (channel) and show (talk vs. music, local vs. syndicated). They use different terms. Local rates are dictated by Arbitron Ratings and are measured in CPM or GRPs (Gross rating points = enough impressions to reach 1 % of a target audience) B) Radio ads can be made very cheaply (a few thousand an ad). Average cost to run an ad once is $8 per thousand listeners. C) You‘ll want to run several ads. I’d suggest you state what type of stations would reach your audience and then use this is a very basic model to help you frame your budget: Number of markets you plan to reach x number of listeners in thousands x numbers of ads you’ll run per day part x $8

49. In Store Promotions • In store proms. • Stores will allow you to keep the displays/graphics up for 1-2 months. Due to limited spacing you may only place a promo with a retailer two to three times a year (unless you are the “Coke” or “Pepsi” of your category. There are several opinions on incremental sales generated by promos. Here are a few suggestions to go with

50. In conclusion • See, • That’s not that bad, • Get to work • Best of Luck • And Let me know if I can help • db