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Water Filter Marketing Plan

VIEWS: 344 PAGES: 19

This marketing plan is for the Water Factory, a Multi-Level Marketing (MLM) firm that sells Water Genie home water filtration systems.

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                                Table Of Contents


1.0   Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0   Situation Analysis . . . . . . . . . . .                     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .2
         2.1    Market Summary . . . . . . .                       .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .2
                    2.1.1 Market Demographics                      .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .3
                    2.1.2 Market Needs . . . .                     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .3
                    2.1.3 Market Trends . . .                      .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .3
                    2.1.4 Market Growth . . .                      .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .4
                    2.1.5 Industry Analysis . .                    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .5
         2.2    SWOT Analysis . . . . . . . .                      .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .5
                    2.2.1 Strengths . . . . .                      .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .5
                    2.2.2 Weaknesses . . . .                       .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .5
                    2.2.3 Opportunities . . . .                    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .5
                    2.2.4 Threats . . . . . . .                    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .6
         2.3    Competition . . . . . . . . .                      .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .6
         2.4    Product Offering . . . . . . .                     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .6
         2.5    Keys to Success . . . . . . . .                    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .7
         2.6    Critical Issues . . . . . . . . .                  .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .7

3.0   Marketing Strategy . . . . .         .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .7
        3.1    Mission . . . . . . .       .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .7
        3.2    Marketing Objectives        .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .7
        3.3    Financial Objectives .      .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .8
        3.4    Target Markets . . .        .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .8
        3.5    Positioning . . . . .       .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .8
        3.6    Strategies . . . . .        .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .9
        3.7    Marketing Mix . . . .       .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .9
        3.8    Marketing Research .        .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .   .9

4.0   Financials . . . . . . . . .     .   .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 10
         4.1    Break-even Analysis    .   .   .    .    .     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 10
         4.2    Sales Forecast . . .   .   .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 11
         4.3    Expense Forecast .     .   .   .    .     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 12

5.0   Controls    . . . . . . . . . . . .      .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 12
         5.1     Implementation . . . .        .    .    .     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 13
         5.2     Marketing Organization .      .    .    .    .    .    .    .     .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    . 13
         5.3     Contingency Planning .        .    .    .    .    .    .    .    .    .    .    .    .    .    .    .    .     .    .    .    .    .    .    .    . 14
                                        The Water Factory


1.0 Executive Summary

  The Water Factory is a network marketing firm that sells Water Genie home water filtration
  systems. The Water Factory has chosen the network marketing business model as a way of
  creating a recurring revenue structure in a home business. Aych Tu-oh, the founder and owner has
  done significance amounts of research and has determined the filtered water market is a large, fast
  growing market. People are willing to pay up to five times the cost per gallon for water than they
  are for gasoline.

  The Water Factory's mission is to provide customers with the finest quality water filtration units.
  We exist to attract and maintain customers. When we adhere to this maxim, everything else will
  fall into place. Our services will exceed the expectations of our customers.

  By using the network marketing business model, Aych Tu-oh uses personal contacts as his target
  market. This is advantageous because a trust bond has been established already with these
  prospects, making it easier for Aych to turn the prospect into a lead. Additionally, network
  marketing creates recurring revenue streams through commissions that Aych earns for sales
  people he recruits. Aych also gets revenue for each sales person his sales people recruit. This
  revenue stream then turns his job into a business, a way to earn money even if he is not working.

  The single objective is to position The Water Factory as the premier resource for home water
  filtration needs. The marketing strategy will be to generate sales to customers as well as transition
  some of the customers into sales associates.

  The Water Factory will reach profitability by month 11 and have profits of $16,000 by year three.




                                  Annual Sales Forecast



  $120,000

  $100,000

   $80,000

                                                                        Personal contacts
   $60,000
                                                                        Recurring revenue stream
   $40,000

   $20,000

       $0
                 2003            2004            2005




                                                                                                   Page 1
                                                   The Water Factory


2.0 Situation Analysis

   The Water Factory is entering its first year of operation. Developing a strategic marketing plan is
   necessary for the business to generate sufficient recurring revenue. The company offers high-
   quality home filtration systems. These systems provide the healthy, pleasant taste of filtered water
   for pennies on the dollar relative to bottled water. It also provides customers the convenience to fill
   up whenever they choose, in whatever type container they prefer.



2.1 Market Summary

   The Water Factory possesses good information about the water filter market and knows a great
   deal about the common attributes of the preferred customers. This information will be leveraged to
   better understand who is served, their specific needs, and how The Water Factory can better serve
   them.




                                                   Target Markets




                                                                              Personal contacts
                                                                              Other people networked




      Table 2.1: Target Market Forecast

       Target Market Forecast
       Potential Customers                Growth       2003    2004    2005     2006        2007       CAGR
       Personal contacts                      9%        560     610     665      725         790       8.98%
       Other people networked                 8%        137     148     160      173         187       8.09%
       Total                               8.81%        697     758     825      898         977       8.81%




                                                                                                       Page 2
                                     The Water Factory


2.1.1 Market Demographics

  The profile for The Water Factory's customer consists of the following geographic, demographic,
  and behavior factors:

  Geographic
								
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