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 Bounce Fitness Café business plan a reality in the year 2013.
Andréa Café , unlike a typical café, provides a unique forum for communication and entertainment through the medium of the Internet. Andrea internet Café is the answer to an increasing demand. The public wants:
1. Access to methods of communication and volumes of information now available on the Internet 2. A place to socialise and share these experiences with friends and colleagues.
Marketing will play a vital role in the success of Andrea internet Café. Andrea Fitness Café must build a brand around the services it offers by heavily promoting itself through local television, radio, and print advertising. Marketing efforts are just beginning by the time a potential customer enters Andrea internet Café for the first time. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer satisfaction.
Situation Analysis
Andrea internet Café just opened its doors for business in 20xx when the Andrea internet Centre opened. 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.
Differentiating ourselves from other more traditional cafés has given us the ability to effectively compete on the beverage and pastry side of the business with the already entrenched competition. Sales are brisk and inline 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
Andrea internet Café is faced with the exciting opportunity of being the first-mover in the local cybercafé 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.
All three target markets for the Andrea internet Café service are growing at a relatively fast pace. We’re faced with a large number of potential customers, and we’re offering a needed service.
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
Andrea internet Café’s customers can be divided into two (2)groups. The first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can get out of their offices or homes to enjoy a great cup of coffee and Internet access. This group is made up of clients from the fitness classes 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 local retirement centers. There are three (3) large retirement centers in the area, and currently none of them offer Internet access to their residents. Seniors represent a growing segment of Internet users. They use the Internet to communicate with friends and family, and they will be regular users of the Andrea internet Café service.
Market analysis
2014
2015
2016
2017
2018
Potential customers
Growth
Cagr
University students
4%
4,000
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%
Senior
6%
3,000
3,180
3,371
3,573
3,787
6,00%
Total
3,59%
33,000
34,180
35,405
36,677
37,997
3,59%
Market Needs
Factors, such as addiction, and historical sales data ensure that the high demand for coffee will remain constant over the next five (5) years.
The rapid growth of the Internet and online services that has been
witnessed worldwide is only the beginning of a longlived trend towards an economy built on the infrastructure of the Internet. 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. This may be five (5) or ten (10) years down the road, but for the next five (5) years, the online service provider market is sure to experience tremendous growth. Establishing itself as the first cybercafé in the area, Andrea internet Café will enjoy the firstmover advantages of name recognition and customer loyalty. Initially, Andrea internet Café will hold a 100 per cent share of the cybercafé market locally. In the next five (5) years, competitors will enter the market. Andrea internet Café has set a goal to consistently maintain a market share of greater than fifty (50) per cent.
Market Trends
The Internet has become a point of conversation in almost all social groups. People are talking about sites they visited, business people are talking about Internetbased businesses, and kids are talking about the latest Internet clubs and chat rooms. 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.
Andrea internet Café will provide:
A meeting place for business people interested in sharing their Internetbased 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 travellers in need of an Internet connection.
A market survey was conducted in the autumn of 2014. Key questions were asked of fifty (50) potential customers. Some key findings include:
35 subjects said they would be willing to pay for access to the Internet. $2.50 an hour was the most popular hourly Internet fee. Twentfour (24) subjects use the Internet to communicate with others on a regular basis.
Market Growth
The market for the services Andrea internet Café will offer is growing rapidly. The cybercafé hasn’t come to this area yet, but similar services are growing rapidly on a global scale. Large cities that cater to large numbers of travelling business people and tourists have been saturated with businesses offering the services Andrea internet Café will offer. Business people use the Internet services to catch up on email and communications with their family, and tourists do the same. Our area supports a population that has many of the same needs and interests of this larger group.
The student population continues to grow as the University grows in popularity with high school graduates from out of state. These students tend to have money and an interest in upscale social centers. Business in the downtown area is on the rise with the coming completion of the renovated Fifth Street Market and the new Computech facility. Andrea internet Café will target these groups with radio and TV spots on local stations.
SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses Andrea internet Café must address. It also allows us to examine the opportunities presented to Andrea internet Café as well as potential threats.
Andrea internet Café has a valuable inventory of strengths that will help it succeed. These strengths include: a knowledgeable and friendly staff, state-of-theart computer hardware, and a clear vision of the market need. Strengths are valuable, but it is also important to realise the weaknesses Andrea internet Café must address. These weaknesses include: a dependence on quickly changing technology, and the cost factor associated with keeping state-of-the art computer hardware.
Andrea internet Café’s strengths will help it capitalise 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 Andrea internet Café should be aware of include, the rapidly falling cost of Internet access, and emerging local competitors.
Strengths
1. Knowledgeable and friendly staff: We’ve gone to great lengths at Andrea internet Café to find people with a passion for teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager to please.
2. Stateofthe art equipment: Part of the Andrea internet Café experience includes access to state of the art computer equipment . Our customers enjoy beautiful flat screen displays, fast machines , and high quality printers.
3. Upscale ambiance: When you walk into Andrea internet Café, you’ll feel the technology. High backed mahogany booths with flatscreen monitors inset into the walls provide a cosy hideaway for meetings and small friendly gatherings. Large round tables with displays viewable from above provide a forum for larger gatherings and friendly ‘howto’ classes on the Internet. Aluminium track lighting and art from local artists sets the mood. Last, but not least, quality cappuccino machines and a glass pastry display case provide enticing refreshments.
4. Clear vision of the market need: Andrea internet Café knows what it takes to build an upscale cyber café. We know the customers and we know the technology, so we know how to build the service that will bring the two (2) together.
Weaknesses
1. A dependence on quickly changing technology: Andrea internet Café is a place for people to experience the technology of the Internet. The technology that is the Internet changes rapidly. Product lifecycles are measured in weeks, not months. Andrea internet Café needs to keep up with the technology because a lot of the Bounce Fitness Café experience is technology.
2. Cost factor associated with keeping stateoftheart hardware: Keeping up with the technology of the Internet is an expensive undertaking. Andrea internet Café needs to balance technology needs with the other needs of the business. One aspect of the business can’t be sacrificed for the other.
Opportunities
1. Growing population of daily Internet users: The importance of the Internet almost equals that of the telephone. As the population of daily Internet users increases, so will the need for the services Andrea internet Café offers.
2. Social bonds fostered by the new Internet communities: The Internet is bringing people from across the world together unlike any other communication medium. Andrea internet Café will capitalise on this social trend by providing a place for smaller and local Internet communities to meet in person. Bounce Fitness Café will grow some of these communities on its own by establishing chat areas and community programs. These programs will be designed to build customer loyalty.
Threats
1. Rapidly falling cost of Internet access: The cost of access to the Internet for home users is dropping rapidly. Internet access may become so cheap and affordable that nobody will be willing to pay for access to it. Andrea internet Café is aware of this threat and will closely monitor pricing.
2. Emerging local competitors: Currently, Andrea internet Café is enjoying a firstmover advantage in the local cybercafe market. However, additional competitors are on the horizon, and we need to be prepared for their entry into the market. Many of our programs will be designed to build customer loyalty, and it is our hope that our quality service and upscale ambiance won’t be easily duplicated.
Competition
The dual product / service nature of Andrea internet Café’s business faces competition on two (2) levels. Andrea internet Café competes not only with coffee retailers, but also with Internet service providers. The good news is that Andrea internet Café does not currently face any direct competition from other cyber cafes in the local market. There are a total of three (3) cyber cafés in the state: one (1) located in Portland and two (2) in Ashland.
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 per 500 grams, while other more exotic beans may sell for as high as $16 per 500 grams. Wholesalers sell beans to retailers at an average of a 50% discount. For example, a pound of Sumatran beans wholesales for $6.95 and retails for $13.95. And as in most industries, price decreases as volume increases.
Service Offering
Andrea internet Café will provide its customers with full access to the Internet and common computer programs and equipment. Some of the Internet and computing services available to Andrea internet Café customers are listed below:
Access to external POP3 email accounts.
Customers can sign up for a Andrea internet Café email account;? this account will be managed by Andrea internet Café servers and accessible from computer systems outside the Andrea internet Café network. FTP, Telnet, Gopher, and other popular Internet utilities will be available. Access to Netscape or Internet Explorer browsers. Access to laser and colour printing.
Access to popular software applications, like Adobe Photoshop and Microsoft Word.
Andrea internet Café will also provide its customers with access to introductory Internet and email classes. These classes will be held in the afternoon and later in the evening. By providing these classes, Andrea internet Café will build a client base familiar with its services. The computers, Internet access, and classes wouldn’t mean half as much if taken out of the environment Andrea internet Café will provide. Good coffee, specialty drinks, bakery goods, and a comfortable environment will
provide Andrea internet Café customers with a home away from home;? a place to enjoy the benefits of computing in a comfortable and well-kept environment.
Keys to Success
The keys to the success for Andrea internet Café are:
The creation of a unique, innovative, upscale atmosphere that will differentiate Andrea internet Café from other local coffee shops and future Internet cafés. The establishment of Andrea internet Café as a community hub for socialisation and entertainment. The creation of an environment that won’t intimidate the novice user. Andrea internet Café will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer. Great coffee and bakery items.
Critical Issues
The risks involved for Andrea internet Café are: Will there be a continuing demand for the services offered by Andrea internet Café? Will the popularity of the Internet continue to grow, or is the Internet a fad? Will individuals be willing to pay for the services Andrea internet Café offers? Will the cost of accessing the Internet from home drop so significantly that there will not be a market for Internet Cafes such as Andrea internet Café?
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. Current trends in the South reflect the popularity of quality coffee and
specialty drinks. The popularity of the Internet is growing exponentially. Those who are familiar with the information superhighway are well aware of how fun and addicting surfing the Internet can be. Those who have not yet experienced the Internet need a convenient and relaxed atmosphere where they can feel comfortable learning about and utilising the current technologies. Andrea internet Café seeks to provide its customers with affordable Internet access in an innovative and supportive environment.
Marketing Strategy
Andrea internet Café has three (3) main strategies. The first strategy focuses on attracting novice Internet users. By providing a novice-friendly environment, Andrea internet Café hopes to educate and train a loyal customer base.
The second and most important strategy focuses on pulling in power Internet users. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers serves an important function at Andrea internet Café. Power users have knowledge and webbrowsing experience that novice Internet users find attractive and exciting.
The third strategy focuses on building a social environment for Andrea internet Café customers. A social environment that provides entertainment will serve to attract customers that wouldn’t normally think about using the Internet. Once on location at Andrea internet Café, these customers that came for the more standard entertainment offerings will realise the potential entertainment value the Internet can provide.
Mission
Andrea internet Café has one (1) purpose.
Andrea internet Café provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment.
Andrea internet Café marketing will consistently build on this mission. Everything we do, from the pricing structure for our services to the ambiance we create, must be done with this mission in mind. We cater to: downtown business people, traveling business people, university students, and seniors. Our ambiance and our services are designed for this clientele and our marketing efforts are focused on capturing this market.
Marketing Objectives
Andrea internet Café’s marketing objectives for the first three years of operation include:
Grow total sales by 10% annually.
Diversify the service offering to insulate the business against fluctuations in any one (1) component of the revenue stream. Build customer loyalty through educational programs. Maintain a staff of enthusiastic employees excited to share their Internet knowledge with Andrea internet Café customers. Build the Andrea internet Café 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 Andrea interne café 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
Andrea internet café 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, Andrea interne café will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use Andrea Internet café PCs, or plug their own notebook computers into Internet connections. Andrea Internet cafe 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:
Students. The large student population will become an important part of the Andrea Internet cafe customer base. The student population continues to grow with the success of the University. Evening entertainment, access to the Internet, and the up-scale ambiance will attract this demographic. Business people. The downtown business community is growing rapidly with the addition of a new Compu-tech building and a flurry of new professional centers. Andrea Internet cafe will provide a perfect setting for business meetings. It will also give traveling business people an opportunity to plug their laptops into the Andrea Internet cafe network to check email communications. Seniors. Represent a growing population of Internet users. Andrea Internet cafe will target the seniors in the nearby downtown retirement centers by offering “Introduction to the Internet” classes. The Andrea Internet cafe staff will hold brief classes in the off hours to educate seniors on how to use the Internet to communicate with friends and family. This will build a regular base of customers that wouldn’t typically use the services offered by Andrea Internet cafe. Positioning
Andrea Internet café will position itself as an upscale coffee house and Internet service provider. Business people of all types will use Andrea Internet café as a place to hold meetings and catch-up on email communications. Students from nearby downtown housing centers will use Andrea Internet café 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 Andrea Internet café. Programs designed to teach
newcomers about the power of the Internet will help build customer loyalty and spread the word about the services Andrea Internet café offers. Strategy Pyramids
The following are the three key strategies Andrea Internet café will focus on: Andrea Internet café first strategy focuses on attracting novice Internet users. Andrea Internet café plans on attracting these customers by: Providing a novice-friendly environment. Andrea Internet café will be staffed by knowledgeable employees focused on serving the customer’s needs. A Customer Service desk will always be staffed. If a customer has any type of question or concern, a Andrea Internet café employee will always be available to assist. Andrea Internet café will offer introductory classes on the Internet and email. These classes will be designed to help novice users familiarize themselves with these key tools and the Andrea Internet café computer systems. Andrea Internet café second strategy will be focused on attracting power Internet users who will provide an important function at Andrea Internet café plans on attracting this type of customer by: Providing the latest in computing technology.
Providing scanning and printing services.
Providing access to powerful software applications.
The third strategy focuses on building a social environment for Andrea Internet café customers. A social environment that provides entertainment will serve to attract customers that wouldn’t normally think about using the Internet. Once on location at Andrea Internet café, these customers that came for the more standard entertainment offerings will realize the potential entertainment value the Internet can provide. Marketing Mix
Andrea Internet café 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
As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access to the information superhighway is quickly becoming a necessity of life. Andrea Internet café 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 Andrea Internet café provides. Pricing
Andrea Internet café bases its prices for coffee and specialty drinks on the “Retail Profit Analysis” provided by our supplier, Allann Brothers Coffee Co., Inc. Allann Brothers has been in the coffee business for 22 years and has developed a solid pricing strategy. Determining a fair market, hourly price for online use is more difficult because there is no direct competition from another cyber-cafe in our area. Therefore, Andrea Internet café considered three sources to determine the hourly charge rate. First, we considered the cost to use other Internet servers, whether it is a local networking firm or a provider such as America Online. Internet access providers use different pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy with a combination of both pricing schemes. Thus, it can quickly become a high monthly cost for the individual. Second, Andrea Internet café looked at how cyber-cafes in other markets such as Portland and Ashland went about pricing Internet access. Third, Andrea Internet café used the market survey conducted in the Fall of 1998. Evaluating these three factors resulted in Andrea Internet café hourly price of $2.50. Promotion
Andrea Internet café 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, increasing roughly 10% per year to match increased sales revenue. The marketing budget will consistently equal almost 20% of sales. A Few Specific Marketing Efforts:
Local TV spots
Print Materials
Local Newspapers
Local Radio Spots
Andrea Internet café Events
Service
This topic is a critical reminder of the fact that Andrea Internet café is a service business. The success of our business depends upon the quality of the service we offer and delivering that service consistently. Andrea Internet café is dedicated to delivering this quality service. Dedicated to Quality Service Programs:
We’ve gone to great lengths at Andrea Internet café to find people with a passion for teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager to please. An excess of staff members will consistently be on hand to provide service to Andrea Internet café customers. Performance will be frequently evaluated both internally and through customer surveys. A highly valued member of the Andrea Internet café staff will be the “Customer Happiness Representative.” This individual will be available forty hours a week to monitor the level of happiness amongst Andrea Internet café customers. This individual will be responsible for: developing customer satisfaction programs, monitoring happiness levels, responding to customer concerns, and the general well being of every Andrea Internet café customer. 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.
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 Bounce Fitness Café.
3. Marketing is a critical component of the Andrea internet Café business plan.
4. The relationship between marketing dollars spent and revenues generated is positive only to a certain point. We don’t feel that a marketing budget based on 20% of sales is close to that point where additional marketing dollars spent won’t create additional revenue. If we can manage, we plan to spend more than 20% of sales on marketing in future years. However, we want to keep this relationship in mind as we consider spending more on marketing efforts.
5. Our understanding of the need for strong branding and emphasis on marketing gives us a competitive edge over other cafés in our area and potential competitors.
Break-even Analysis
Andrea internet Café is operating in an industry capable of supporting high gross margins. Variable costs in relationship to perunit revenues are low. Variable costs are equal to roughly 25% of perunit revenues. It is our hope that as we move into the future and continue to build relationships with our suppliers, this value will decrease further, approaching a value of 20%.
Fixed costs for Andrea internet Café equal almost $7,500. Fixed costs include: payment of debt, facility lease costs, hardware costs, and other costs Andrea internet Café must maintain on a monthly basis. These costs are fixed and aren’t impacted by an increase or a decrease in sales.
Currently, Andrea Internet Café 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
Sales Forecast
Revenues for the first year of operation are based on an almost 10% growth rate from month to month. This is an aggressive estimate, but we feel that our strong emphasis on marketing will have positive results. 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.
Expense Forecast
The marketing budget will consistently equal approximately 20% of sales. 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:
Local TV spots: In our first year of operations, we will spend $23,000 on TV spots. TV spots allow us to reach a large audience and effectively target our market. Print Materials: Print materials always require a significant budget. They include: flyers, literature distributed internally, novelties for customers, coupons, and anything else we can squeeze into this budget. Local Newspapers: An important part of our marketing efforts. Newspaper advertisements will give us a vehicle for consistently getting our message / brand in front of a large number of potential customers. We believe this vehicle will get our message to seniors, which make up a large portion of our target market. In addition, the business section will provide us with a means for communicating with our business customers. Local Radio Spots: These are an inexpensive way to secure a large number of daily impressions. Andrea internet Café Events: This will include local radio and TV events where radio and TV stations broadcast from the Andrea internet Café site offering freebies to firsttime customers for stopping by. Andrea internet Café will also run educational programs and community events throughout the year related to the Andrea internet Centre. Customer Happiness Representative: This
employee will monitor the level of happiness amongst Andrea internet Café customers. They will be responsible for: developing customer satisfaction programs, monitoring happiness levels, responding to customer concerns, and the general wellbeing of every Andrea internet Café customer.
Marketing Expense Budget
2014
2015
2016
2017
2018
Local TV Spots
$23,000
$25,300
$27,830
$30,613
$33,674
Print Materials
$6,750
$7,425
$8,168
$8,984
$9,883
Other
$3,300
$3,630
$3,993
$4,392
$4,832
----
----
-----
-----
-----
Total Sales and Marketing Expenses
$33,050
$36,355
$39,991
$43,990
$48,389
Per Cent of Sales
8.81%
8.81%
8.81%
8.81%
8.81%
Controls
The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in the Andrea internet Café business plan a reality in the year 2000. We have these marketing obstacles to face:
The creation of a unique, innovative, and upscale atmosphere that will differentiate Andrea internet Café from other local coffee shops and future Internet cafés. The establishment of Andrea internet Café as a community hub for socialisation and entertainment. The creation of an environment that won’t intimidate the novice user. Andrea internet Café will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer.
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. It will be critical to use this marketing plan and the Andrea internet Café business plan as living / working documents. We can’t allow them to sit in a file. They must be used as a map for the future success of Andrea internet Café.
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 impact 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 plannedvsactual results. Successes and failures will be reviewed and addressed on a quarterly basis.
Milestones
Advertising
Start date
End date
Budget
Manager
Department
TV ad creative
1/15/2014
2/1/2014
$500
Andrea
Action Marketing
Radio sport 1 creative
1/15/2014
2/1/2014
$250
Andrea
Action Marketing
Radio sport 2 creative
2/1/2014
2/10/2014
$250
Andrea
Action Marketing
Newspaper ad creative
1/12014
1/5/2014
$75
Andrea
Action Marketing
Total advertising budget
$1,075
Direct Marketing
Start date
End date
Budget
Manager
Department
Andrea Fitness Café Event 1 creative
2/1/2014
2/10/2014
$250
Andrea
Action Marketing
Andrea Fitness Café Event 2 creative
4/1/2014
4/10/2014
$300
Andrea
Action Marketing
Total direct Marketing Budget
$550
Total
$1,625
Milestones
Marketing Organisation
The Marketing Manager of Andrea internet, Kath Jones will head the marketing effort. Initially, there will only be one additional member of the marketing team and they will work for both the Fitness Centre and Café. The ‘Customer Happiness Representative’ 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.
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 Andrea internet Café won’t make good on the projections outlined in this plan. We also have to prepare ourselves for overwhelming success.
The following are some possible scenarios:
Revenues exceed projections: A serious increase in revenues over projections will give us an opportunity to increase our marketing budget above the allocated 20%. We’ll be able to hire the marketing manager earlier, and we’ll be able to provide more equipment and possibly add an additional location. Revenues miss projections: We have to be prepared for this possibility. If we miss our projections, we simply have to re-double our marketing efforts. The danger in this scenario is that the first reaction to missed projections is to decrease spending, particularly marketing expenses. We can’t do that! We have to get our message out to the target market, and we can’t do that if we stop spending on marketing. Additional capital infusions may become necessary and that possibility is detailed in
the business plan. Internet side of business plays a lesser role: Our customers might not be willing to pay for Internet access or Andrea internet Café memberships as Internet access costs and hardware costs continue to fall. If this scenario materialises, we will need to move our focus to beverages and pastry items, perhaps even providing deli-style lunches. Internet services in the scenario would still play an important role in attracting customers;? we’d just have to charge less and move our numbers around to accommodate this trend.
