3 April Business Plans Marketing Business Plan l

3 April Business Plans Marketing

Business Plan l l l Title Page Executive Summary Industry Analysis Customer Analysis Competitor Analysis Company and Product Description Marketing Plan Development & Operations Plans Team Critical Risks Financial Plan

Title Page l l Company name and logo Tagline l l l Just Do It! Others that have survived? Contact Date (Controls)

Executive Summary l l Write it last Tell the story Excite the reader Elaborate your tag line

Industry Analysis l 3 Ms l l l What’s hot? What’s not? What is happening in the market in general l l Market demand Market size Market analysis Is it a growing? Local market conditions

Customer Analysis l Who is your customer? l l The more specific the better How does this customer behave?

Competitor Analysis l Who are they? How do you position yourself? l BROAD view of your competitors l l l Related businesses Businesses or behaviors that eliminate your market Free alternatives …

Company and Product Description l (Company) l l l How you are organized What you have accomplished Product or service description Customer value proposition What differentiates it from others? Growth plan l l How do you start? Where do you grow from here?

Marketing Plan l l l Target Market and Product Strategy Service Strategy Pricing Strategy Distribution Strategy Advertising and Promotion Sales Strategy

Marketing l Marketing vs. sales l l Marketing: advertising, promotions Public relations and publicity Sales Focus groups

Target Market & Product Strategy l Dimensions on which you need to sell l Relate to your competitors l l l What dimensions do people buying a car consider? What dimensions will your customer deliver? Are you more focused or more general? Are you going for atmosphere or bare bones? Justification of your assessment

Service Strategy l Physical product l l Software l l Warranty Upgrades Customer support

Pricing Strategy l Two models l Cost-plus l l Market-demand l l Much harder to evaluate Look at current market and determine where you should fall (above, average or below) Goal is not to lose money

Distribution Strategy l Options l l l Mail Trucking Delivery Pick-up Consider l l Weight Fragility Set up Where your customers are

Advertising and Promotion l l How will you reach your target group? Advertising l l l Television Radio Newspapers Magazines Internet Grass Roots l l l Flyers Press Publicity

Sales Strategy l Who will sell for you? l l Dedicated sales force Other stores Internet Sales and Marketing Forecasts l l Comparable – derive from competitors Build up – based on what you expect to sell, profit per unit, sales per day, …

Development & Operations Plans l Development l l What needs to be done before you’re “in business” Operations l l l Ongoing activity Cash flow: it’s possible to fail even with sales Outsourcing: control your competitive advantage

Operations Plan l l Ongoing activity Cash flow l l It’s possible to fail even with sales What you will do yourself and what will you outsource l Control your competitive advantage

Team: Company l l As important as the idea If your life depended on a particular piece of software, what would you want to know about it? l l Writer “highly intelligent and possessed by an extremely rigorous, almost fanatical desire to make their program work the way it should. ” Bollinger (2001) Compensation

Team: Advisory Board l l Mentoring Formal or informal l l Real board of directors Personal board of directors People with different skills People with influence Co-opt people that you need

Critical Risks l l Creates credibility Include l l l Critical assumptions Factors that need to happen for success Typical risks l l l Market Competitors Development cost Operating expenses Financing