2 Situation analysis Company Corporate Give a brief overview of the company you are including mission statement. List their core product categoriesSBU If it is a division of a big company e.g. Tropicana is owed by Pepsi give an overview as above and give the key objectives of the SBU.Review the company’s current marketing performance in Canada in the category of your product/service including their market share. (Focus on the Canadian market including a product review that shows sales, share. E.g. If doing juice talk about Tropicana juices performance in the market
3 Situation analysisCurrent Company Product Analysis (only for the category / brand group that your new product will fall within) – Describe the current company brand and its products and how they are doing. Briefly describe and summarize the current marketing activities. (Current advertising, promotion, web, newest products etc.) Put the detail in your appendix and summarize key info in the report. In the Appendix you can put product & promo info from the web – just source it
4 Situation analysisMarket analysis – describe the market for the category you are competing within – estimate Market size and growth and explain the rationale.Environmental Analysis - Describe any social, cultural, or other external environmental issues (legal, technological etc) affecting the industry in Canada and any information that will lead to your decision for your new product. (This should be a pretty big piece as a lot comes out of this)
5 Situation analysisCustomer environment analysis for the category – Describe the key customer segments based on benefits sought. Who buys the products and what do they do with the products. Who might be potential customers? This should include current and potential target markets profiles. Use a chart format like we did in segmentation to highlight key differences – now you may wish to identify which segments use which of your category's current products or competitor product.
6 Situation analysisCompetitive analysis – Identify the key competitors in the category you are in (or the category you plan to enter). Briefly describe their brand positioning & their market shares. If it is a really new idea think about potential competitors. Assess the competitor’s product offerings in the category of study including their market positions and strategies on product quality, promotion, pricing and distribution. use a chart to keep it simple) Only include relevant data. If you have lots of info put it into the Appendix.
7 SWOTSWOT Analysis – Based on the information gleaned from the situation analysis, summarize (even in chart format) the most important elements uncovered that will affect the business – relevant items only. Use the handout from week 3 to assist you.If an item is listed in your SWOT it first must have been identified and discussed in your Situation analysisYour product idea should come out of your SWOT where you match a market opportunity to a strength or yu convert a weakness into a strength or you counteract a threat.
8 GapDescribe the gap you have found in the market (unmet customer needs) and, briefly explain your new product and the rationale for it. This should flow from your SWOT analysis and be based on information you uncovered in your situation analysis.
9 Marketing Plan for your new Product OBJECTIVESDevelop your SMART marketing objectives for the first year market plan and longer for your new product ideaMake sure you have objectives related to sales and profit. Also consider things like market shareHave at least one consumer oriented objective related to customer awareness & trial, usage, attitude or whatever you think you should measureConsider performance objectives such as distribution objectives, promotion response objectivesNote you will probably only be able to be specific here after you have done the plan financials. Do near the end
10 Marketing Strategy TARGET MARKET Select your primary and secondary Target Market (s)Give a Detailed description of target market (demographics and related psychographics and behavior to the product category especially benefits sought)
11 Product Section of Project Plan Product positioning strategy – include a positioning statementCore benefit/sustainable competitive advantageFeatures and Benefits – packaging, features, added benefitsBrand name(s) & rationale
12 Place section of planWhat is your distribution strategy? degree of exposureDescribe your channel of distribution - direct or indirect- Mention where customers will purchase your product?How will your distribution strategy affect customer service?How will you support the distribution network to maximize sales? What promotion will you do for the channel?see p of text
13 Pricing Section of your Project Plan What is your price strategy?What is the expected retail selling price?How does your price compare to competitive prices?What are your promotional pricing plans (if any)
14 Promotion Strategy Section Promotion ObjectivesMain message to communicate(Creative Strategy)Briefly describe each of the IMC promotion tactics & elements and your rationale for the tactic (may include a creative mock up)Media selection if choose advertising and rationale for eachTiming chart for activities
15 Creative(Communication)Strategy 1. Identify Target audience for your campaign2. Define Key Benefit to promote3. Describe the support for the Key benefit claims (often a feature)4. Describe any Customer insight – how, when and why customer uses product– how it makes them feel5. Creative Strategy - Key message that you want the audience to take away
16 Promotion BudgetIn the budget section include a breakdown of the Total promotion budget to cover all the tactics in your promotion plan. (Use cost sheets)E. g. Promo Budget allocationTelevision advertising - $4 millionSales/trade promotion - $ 1 millionPublicity campaign $ 250,000Total $ 5,250,000
17 The Financial Section of your Project Operating Statement – see p. A13, 14Sales revenue (units X manufacturing Selling price/unit)Less cost of goodsGross marginLess Marketing & selling expensesContribution to ProfitLess Fixed Expenses /overhead costsNet Profit (before taxes)
18 Financial Section of Plan Estimate category market size in retail $( from your Situation Analysis)Estimate your market share as %retail $Estimate your sales forecast (in wholesale $)Estimate your cost of goods – come see me or me for an industry mark up factorPrepare Income StatementMake sure you give back up data and explanation of your numbers in an Appendix or in an explanatory paragraph.
19 Complete and Edit your Market Plan Marketing implementation – a short paragraph of who is doing what and list of tactics and timing – can use a chart like the Media ChartEvaluation and control – Paragraph explaining how you will measure your success with this plan ( link to your objectives)Now go back and write your Executive Summary using the style taught in COMM classPeer evaluations are to be included in the package
20 Marketing Implementation Who in the company will be responsible for what and will outside agencies/ suppliers be used?What are the key activities that need to be done, when?Read text pp.69-71
21 Evaluation and Control State how will you measure whether you have achieved your objectives?Sales analysisMarket share analysisDistribution analysis - % distribution coverageFinancial analysis – profit, ROI, marketing expense/sales ratioCustomer analysis – research on awareness, trial, repurchase, attitudes etc.Program analysis – response to marketing tactics
22 AppendixPlease include Current Product information from corporate materials – web, brochure etcSamples of current promotion you have seenBack up for detailed financial estimatesMock ups (if desired) of package, advertising etcAny information that you found that is not important enough for the main project
23 Some Tips It is best to start work on your financials early Make sure you set a realistic estimate of your potential salesThen you have a good idea of how much you can spend on promotionMake sure all 4 P’s work together- make all decisions as a team even though different people write up different sectionsWrite in business style – simple and clear statements – use third person (not our, we)
24 Project Formal Presentation Sign up for a presentation timeMeet with prof – our role will be that of the VP Marketing who will grant approval of the plan to launch your productYou may bring extra visuals to the meeting – its table topBe prepared to give a 5-10 minute presentation and answer any questions about your project- all should have read and be familiar with the sections you did not write