Scribd marketing by SushilGaikwad

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Table of Contents

1.0     Executive Summary ……………………………………………………………………………..………………….. 3

2.0     Situation Analysis …………………………………………………………………………….…………………….. 3

        2.1     Market Analysis Summary ……………………………………………………………………………… 3

                2.1.1   Market Segmentation ………………………..……………………………….…………….…. 3

                2.1.2   Market Needs ………………………………………………………………………………….... 3

                2.1.3   Target Market Segment Strategy …………………………………………...………………. 4

                2.1.4   Service Business Analysis ………………………………………………...………………… 4

                2.1.5   Competition and Buying Patterns ……………………………………………………………4

        2.2     SWOT Analysis …………………………………………………………………………………………..…4

                2.2.1   Strengths ……………………………………………………...…………………………….…… 5

                2.2.2   Weakness …………………………………………………………………………………….….. 5

                2.2.3   Opportunities ……………………………………………………………………………....…… 5

                2.2.4   Threats …………………………………………………………………………………...………. 5

        2.3     Competition …………………………………………………………………………………………….….. 5

        2.4     Services ………………………………………………………………………………………………….…. 5

        2.5     Keys to Success ………………………………………………………………………………………...… 6

        2.6     Critical Issues ………………………………………………………………………………………...…… 6

3.0     Marketing Strategy ………………………………………………………………………………………..………… 6

        3.1     Mission …………………………………………………………………………………………….……….. 6

        3.2     Marketing Objectives …………………………………………………………………………….………. 6

        3.3     Financial Objectives ……………………………………………………………………………………… 6

        3.4     Target Markets …………………………………………………………………………………….………..7

        3.5     Positioning ………………………………………………………………………………………….……… 7

        3.6     Strategy Pyramids ……………………………………………………………………………….…………7

        3.7     Marketing Mix ……………………………………………………………………………………………… 8

        3.8     Marketing Research ……………………………………………………………………………………… 8

4.0     Financials ………………………………………………………………………………………………………………9

        4.1     Break Even Analysis ………………………………..………………………………………...………….10



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      4.2   Sales Forecast …………………………………………………………………………….…………..….11

      4.3   Expense Forecast ……………………………………………………………………….………..…….. 13

5.0   Controls …………………………………………………………………………………………….………..……… 14

      5.1   Implementation …………………………………………………………………………….……..………14

      5.2   Marketing Organization …………………………………………………………………….……….…..15

      5.3   Contingency Planning ………………………………………………………………………….………..15




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1.0 Executive Summary

is a personal concierge, assistant, and life style management team serving the market of seniors, parents, and busy
professionals in Atlanta, Georgia and surrounding suburbs. The company is able to do almost any errand the clients
need from the pickup of dry cleaning to event planning. Clients will welcome our service as it will free up their time
allowing them to spend it on what really matters.

The most important objectives for the first three years include: increase our number of clients served by 20% per
year through superior performance, aggressive networking, and word-of-mouth referrals.



2.0 Situation Analysis

HM is in the beginning stages of their first year of operation. A strategic and focused marketing plan is required to
bring the business to profitability. The basic market need is for an affordable personal concierge, assistant, and
lifestyle management service. There are several concierge firms in the area, but none that are within the price range
of those who truly need the service.



2.1 Market Analysis Summary

HM possess good information regarding the Atlanta market and the various individuals that are in need of
competitively priced personal concierge service. This information will be leveraged to allow HM to better understand
their target customer, their needs, and the best method of communication to achieve the desired result. HM will target
seniors, busy professionals, and parents. These individuals often have extremely busy schedules, including a great
deal of travel time. This service will allow them to concentrate on work and family life with the comfort of knowing the
things that they typically do not have time for, they need not make time for as it will be handled at their convenience.


                                                     Target Market Forecast




                                                                                                                   Potential Customers
                                                                                                                   Seniors
                                                                                                                   Parents
                                                                                                                   Busy Professionals




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Table 2.1            Target Market Forecast


 Potential Customers           Growth           2010         2011        2012
 Seniors                           3%            120          124         128
 Parents                           6%            180          191         203
 Busy Professionals                6%            180          191         203

 Total                              15%          480          506          534


         2.1.1       Market Segmentation

         The target market for HM is broken into three segments:


                Busy professionals who are willing to pay for someone to handle the mundane tasks of everyday living
                 while they concentrate on their careers
                Parents who recognize that they cannot do it all, but are yet unwilling to sacrifice time spent with their
                 family.
                Seniors who are not as mobile, yet have daily business affairs and errands that require attention.


         2.1.2       Market Needs

         HM’s primary market has certain needs that are outlined below.


                They often find that their stress level is high because of burning the candle at both ends.
                They have errands that require handling, yet due to the lack of mobility it turns into a time consuming
                 and daunting task.


         2.1.3       Target Market Segment Strategy

         The best way to develop the company is to make our service necessary and accessible to the public. By
         facilitating their needs easily, we offer a great service at little inconvenience to them in a time where
         convenience matters the most.

         In its broadest definition, the American shopping market consists of every American who needs to buy
         goods and services for themselves and their families. Although it is the aim of HM to eventually reach out to
         a wide range of shoppers, including corporations and people looking for "hard to find" items, the company
         will focus first on seniors, parents, and busy professionals.



         2.1.4       Service Business Analysis

         HM offers the service of facilitating and handling the logistics of time consuming tasks as well as the
         purchasing and delivery of such items to the customer's residence. The primary attraction of such a service
         is that it significantly cuts down on shopping time for busy customers who wish to utilize their time for other
         purposes. With the advent of computers and the Internet, it is believed that this service can be offered at a
         low cost, and can be enhanced through the use of an established-customer database to track individual
         preferences.



         2.1.5       Competition and Buying Patterns



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      This is a luxury service being provided at an affordable cost allowing HM to maintain clients and keep their
      needs constant. This requires being aware of economic changes, as well as alterations in trends.

      At the moment, there are few services like this in the Atlanta area. Therefore, there is a tremendous
      opportunity to build and retain significant market share. Customers choose and retain services like this often
      through word-of-mouth, when the company is able to achieve a high level of customer satisfaction. Although
      it is the aim of HM to significantly lower costs of this luxury service, at this time, cost does not play a
      significant factor in how customers choose a shopping service. The bottom line is establishing a strong
      intimate relationship with customers to capture the long-term profits through repeat business and create the
      enthusiasm among customers that will spur on word-of-mouth marketing.


      The market trend for the personal concierge industry is consolidation and full-service offerings. In today’s
      economy, firms are also under pressure to offer a wider range of services at a price that is so competitive
      that it would not make sense financially to not invest in such a service. The reasoning behind this trend is
      that the firms will be able to capture more business if they offer a one-stop-shopping solution that will relieve
      prospective clients from current obligations and responsibilities they currently do not possess the time
      to address. This last trend certainly improves convenience, but by outsourcing numerous resources
      available within the HM database, it becomes effective and allows for time for additional pursuable clientele.
      By anticipating and addressing the needs of future clientele, HM will concentrate on their core
      competencies, addresses market needs, and set the standard within the personal concierge industry in
      Atlanta, Ga.


2.2   SWOT Analysis

      The following SWOT analysis captures the key strengths and weaknesses within the company and
      describes the opportunities and threats facing HM.



      2.2.1    Strengths

         Knowledgeable employees with notable experience
         Low operating cost which translates into low affordable prices for clients
         Ability to accept client request over the internet which renders a convenient experience
         Highly trained employees in customer service & personal care


      2.2.2    Weakness

         Lack of brand awareness as a result of company newness
         At start up limited services offered
         Client services only accessible in Metro Atlanta & surrounding areas
         Inadequate budget for marketing HM to create awareness


      2.2.3    Opportunities

         Help clients manage their personal tasks by assisting with home and work duties which creates more
          private time for family and friends
         Develop a stronger client base by networking and maintaining positive customer feedback
         Create a user friendly website which makes company/client interaction easier




      2.2.4    Threats




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                Economic downturn which may give the assumption that our services are less needed
              compared to other personal needs
                Competition from businesses that are already recognized


2.3       Competition

          HM’s main competition comes from globally recognized companies:

         Tasks Everyday
         2 Places at 1 Time
         Longer Days


2.4       Services

          HM will help its customers make the most of their valuable time. The company will help clients manage their
          busy schedules by taking care of their personal errands. The goal is to make life easier, no worries.

         Care for pets & plants
         Buy gifts
         Supervise home repair, delivery and cleaning contractors
         Purchase groceries
         Obtain tickets to entertainment events
         Organize bills & mail
         Plan parties & other events
         Do laundry & pick up dry cleaning
         Schedule car repair and wash car


2.5       Keys to Success

          Keys to success will be:

         Attention to detail
         Professionalism
         Promptness
         Creativity
         Results

2.6       Critical Issues

          HM is still in the provisional phase as a service provider. Its critical issues are: to build brand awareness
          which will drive customers to the business and to continue to take a reasonable financial approach to
          business operations




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3.0 Marketing Strategy



  3.1 Mission

       The mission of HM will be to provide the customer with superior concierge services. Our goal is to add
       valuable hours back into the customer’s life. It is our sincere desire to surpass any expectation that the
       customer may have of our service.

  3.2 Marketing Objectives

      Increase customer base at a rate of 15% per month for the first year.
      Contract experts in our key service fields.
      Saturate our target market with intense advertising and word of mouth referrals.


  3.3 Financial Objectives

      Triple the preferred vendors list with the best professionals in most requested services.
      Turn a profit within the first six months of business.
      Reach a 50% growth rate within the first 18 months of business.


  3.4 Target Markets

      This company will target seniors, single parents, and working professionals. The advertising for the active
       seniors will be placed in senior centers, restaurants that offer senior discounted menus, medical facilities
       and drug stores throughout the greater Atlanta area. The advertising medium to target busy parents and
       working professionals will be seminars, daycare centers, social media outlets like Facebook, Twitter and
       Linked-In. Each advertising medium will be used to list the services provided for the specific needs of the
       target audience.
   
       Advertising: Networking Initiatives, Referral programs, pamphlets, mailers, website, Adwords, and internet
       will be used to enhance our presence to our customer base.



  3.5 Positioning

       HM’s founders will position themselves to network amidst each market segment and present the elite
       personal concierge service of the Greater Atlanta area.




               Specialized skill set: HM will compile a preferred vendors list of professional stylists, makeup
           artists, nail technicians, handymen, information technology professionals, landscaping companies, and
           caterers. This will afford the business an opportunity to service various clients per day and generate
           income without incurring the expense of hiring additional employees.


               Flexibility: Maintaining a large database of top notch professionals in various fields will allow HM
           to multi-service clients based on their particular needs. It also affords the company an opportunity to
           schedule various services using multiple professionals from our database. Many of our competitors will
           not have the professional resources of HM which allows us to inundate each target market and supply
           their various needs.



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3.6 Strategy Pyramids

     HM is destined to be known throughout the Greater Atlanta Area as the affordable personal concierge
     service. HM’s long term business goal is to foster long term relationships the personal service needs of the
     people of the Greater Atlanta Area. We have adopted the Inverted Pyramid philosophy of Nordstrom the
     leader in Customer Service. The inverted pyramid philosophy places those we serve at the top of the
     pyramid reminding us that we must keep their needs first and that we must work with integrity to provide the
     best service possible to maintain their business. Just a level below our valued clients is our preferred
     vendors who work with us because of our professional business practices and commitment to professional
     acquiescence.

     The marketing strategy that HM will follow is to cultivate professional relationships with each segment of our
     target markets and then encourage customer referrals for loyalty discounts or complimentary services.

     The motto of our business is, “No Worries” and we will work to nurture professional associations with our
     patrons so that they will trust their cares HM and know that whatever the task it will be completed in a timely
     fashion, by courteous and competent professionals.

     It is the aspiration of the founders of HM that our company provides extraordinary service with every
     interaction in the hopes that the professional veracity of our vendors will encourage our clients to refer our
     services to other parents, seniors, athletes, celebrities and business professionals. While HM aspires to
     grow the client base we would also like to be respected as one of the premier companies for elite
     professional to associate with in business.

     Although word of mouth referrals is one of the most respected forms of advertising HM will also use social
     media outlets such as Facebook, Twitter and Linked-In, television and radio advertisements, as well as, paid
     print advertisements in the Wall Street Journal, Local Newspaper and market segment specific periodicals to
     attain new clients.

3.7 Marketing Mix

     A satisfied customer experience is the ultimate goal of HM. Mixing the utmost customer service, various
     advertising mediums and a fair flat rate service price point will position HM above the competition.

        Pricing: An hourly flat rate fee of $25.00 per hour for each service provided with a minimum purchase
         of two hours will be paid to HM. There will be additional charges of $0.25 per miles for extended travel
         of our preferred vendors. HM will offer loyal customer discounts.
        Advertising and Promotion: HM’s founders will take advantage of Social and Professional networking
         opportunities to advertise. Social networking sites to advertise for maximum exposure at a minimal
         cost.
        Customer service: Establishing and nurturing customer relationships will not only grow our customer
         base but will also prove to be profitable with repeat business from our valued clients.


3.8 Marketing Research

       At the time that the idea of HM was conceived several market segment specific focus groups were
     conducted to evaluate the needs of each market segment and the value they placed on specific tasks. With
     the information that was obtained the decision to bill at a flat rate of $25.00 per hour with additional cost
     incurred from outside vendor.




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            Facebook and Twitter surveys were posted to compile data regarding the tasks that were the most
            unfavorable and the amount of money an individual would spend to eliminate that task from their to do list.
            The information obtained through the survey assisted in the decision to create a group of preferred vendors.
            Compiling a database of preferred vendors enhanced our presence in each market but would not cost the
            business benefits that would be paid to employees.

   4.0 Financials

       In the following section, HM one will find a financial overview addressing the break-even analysis, sales forecast,
      and expenses associated with marketing HM.



   4.1 Break-even Analysis

        The break-even analyses determined that 715 billable hours are needed on a monthly basis for the company to
       achieve its break-even point.

$10,000



 $5,000
                                                                  $17,863

    $0



($5,000)



($10,000)
     $0                  $5,000      $10,000          $15,000          $20,000        $25,000         $30,000        $35,000




   Break-even analysis:

   Monthly unit break-even:                        715 hours

   Monthly sales break-even:                             $ 17,863.76

   Assumptions:

   Average per unit revenue:                             $         25.00

   Average per unit variable cost:                       $          9.25

   Estimate monthly fixed cost                           $ 11,254.17




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4.1 Sales Forecast

     During the first month, HM’s owners, who will be in charge of managing the business, will be focused solely
     on setting up the company’s operation. Brochures will be mailed to prospect customers in the Atlanta area
     and suburbs. Ads will be circulated on local newspapers and a website will be created in order to promote
     the services offered by the company. Management expects to start providing service to customers during
     the second month of operation and to be able to keep growing monthly. The goal is to reach 1,200 billable
     hours by the end of December of 2010 and to increase total billable hours by 20% during the second year
     and by 30% during the third year.



                                         Monthly Sales Forecast


 $30,000.00



 $25,000.00



 $20,000.00



 $15,000.00



 $10,000.00



  $5,000.00



       $-
                Jan     Feb     Mar      Apr     May     Jun      Jul     Aug     Sep      Oct     Nov     Dec


                              Seniors    W orking Professionals Parents         Others




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Table 4.2: Sales Forecast

                            Sales Forecast
Sales                       2010               2011           2012

Seniors              $       34,500        $     44,712   $     62,431

Working
Professionals        $      115,000        $    149,040   $    208,104

Parents              $       57,500        $     74,520   $    104,052

Others               $       23,000        $     29,808   $     41,621

Total Sales          $      230,000        $    298,080   $    416,208



Direct Cost of
Sales                       2010               2011           2012

Seniors              $      12,765         $     16,146   $     22,066

Working
Professionals        $      42,550         $     53,820   $     73,554

Parents              $      21,275         $     26,910   $     36,777

Others               $       8,510         $     10,764   $     14,711

Subtotal Cost of
Sales                $      85,100         $    107,640   $    147,108




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 4.2 Expense Forecast

         Marketing expenses will be incurred throughout the entire first year; however, advertisement expenses are
         forecasted to be higher in the first four months and decrease after this period based on the belief that word
         of mouth promotion will be successful. The graph below shows the amount budgeted for marketing
         expenses during HM’s first year of operation.


                                               Monthly Expense Budget


 4,500.00


 4,000.00


 3,500.00


 3,000.00


 2,500.00


 2,000.00


 1,500.00


 1,000.00


  500.00


     -
               Jan     Feb      Mar      Apr     May       Jun     Jul      Aug     Sep     Oct      Nov      Dec

Table 4.3: Marketing Expense Budget
                                           Ads on newspaper Brochures    Internet

Marketing Expense Budget                                          2010                    2011               2012

                                                                                           $                     $
Ads on newspaper                                       $         23,000              23,000                23,000

                                                                                           $                     $
Brochures                                              $          8,750               7,500                 6,250

                                                                                           $                     $
Internet                                               $          3,300               3,300                 3,300




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 Total Sales and Marketing                                                             $                    $
 Expenses                                           $          35,050             33,800               32,550

 Percent of Sales                                               15.24%             11.34%                7.82%

                                                                                        $                    $
 Contribution Margin                                 $         144,900           190,440              269,100

 Contribution Margin/Sales                                      63.00%             63.89%              64.66%




5.0 Controls

The purpose of this marketing plan is to document HM’s marketing strategy and to serve as a reference for all
marketing related decisions made by management. The following controls will be implemented in order to monitor the
company’s performance towards the achievement of the marketing goals.

       Comparison of actual versus forecasted sales revenue (monthly and annual)
       Actual versus budgeted variable and fixed cost
       Analysis of contribution margin
       Comparison of actual versus forecasted profit margin
       Monitoring the number of customers
       Analyses of number of sales by customer and sales revenue by customer
       Calculation of financial return on advertising campaigns, by marketing channel.




  5.1 Implementation

        The following implementation plan identifies the key milestones that will be used to ensure the
        accomplishment of the marketing plan.



                                     Jan    Feb     Mar    Apr     May    Jun    Jul      Aug   Sep    Oct      Nov   Dec

 Marketing plan completion

 Website completion

 Advertising campaign 1

 Advertising campaign 2

 Advertising campaign 3



Table 5.1: Milestones

                                             Plan

 Milestone                                   Start Date           End Date          Budget            Manager




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Marketing plan completion                     1/1/2010            1/31/2010          $0        All Owners

Website completion                            1/1/2010            2/28/2010          $210

Advertising campaign 1                        1/1/2010            4/31/2010          $15,773   All Owners

Advertising campaign 2                        5/1/2010            8/31/2010          $11,707   All Owners

Advertising campaign 3                        9/1/2010            12/1/2010          $7,360

Totals                                                                               $35,050




 5.2 Marketing Organization

         All four owners will be responsible for the marketing planning and implementation.

 5.3 Contingency Planning

         Difficulties and risks

                 Low acceptance of company’s services by the customers
                 Inability to generate enough sales revenue
                 Difficulty to control cost increases
                 Impact of economic recession

         Worst case risks may include:

                 Company continuously generating financial losses
                 Irreparable damage affecting company’s image
                 Having to end business activities




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                                                                       Appendix: Hakuna Matata

Table 4.2 Sales Forecast

Sales Forecast
Sales                          Jan       Feb          Mar          Apr          May          Jun          Jul          Aug          Sep          Oct          Nov
Seniors                    $     -   $      750   $    1,500   $    2,250   $    2,625   $    3,000   $    3,375   $    3,750   $    4,125   $    4,125   $    4,
Working Professionals      $     -   $    2,500   $    5,000   $    7,500   $    8,750   $   10,000   $   11,250   $   12,500   $   13,750   $   13,750   $   15,
Parents                    $     -   $    1,250   $    2,500   $    3,750   $    4,375   $    5,000   $    5,625   $    6,250   $    6,875   $    6,875   $    7,
Others                     $     -   $      500   $    1,000   $    1,500   $    1,750   $    2,000   $    2,250   $    2,500   $    2,750   $    2,750   $    3,
Total Sales                $     -   $    5,000   $   10,000   $   15,000   $   17,500   $   20,000   $   22,500   $   25,000   $   27,500   $   27,500   $   30,


Direct Cost of Sales           Jan     Feb            Mar          Apr          May          Jun          Jul          Aug        Sep          Oct          Nov
Active Seniors             $     -   $   278      $      555   $      833   $      971   $    1,110   $    1,249   $    1,388   $ 1,526      $ 1,526      $ 1,
Working Professionals      $     -   $   925      $    1,850   $    2,775   $    3,238   $    3,700   $    4,163   $    4,625   $ 5,088      $ 5,088      $ 5,
Single Parents             $     -   $   463      $      925   $    1,388   $    1,619   $    1,850   $    2,081   $    2,313   $ 2,544      $ 2,544      $ 2,
Others                     $     -   $   185      $      370   $      555   $      648   $      740   $      833   $      925   $ 1,018      $ 1,018      $ 1,
Subtotal Cost of Sales     $     -   $ 1,850      $    3,700   $    5,550   $    6,475   $    7,400   $    8,325   $    9,250   $ 10,175     $ 10,175     $ 11,




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                                                                                 Appendix: Hakuna Matata

Table 4.3 Marketing Expense Budget

Marketing Expense Budget                      Jan          Feb           Mar       Apr       May       Jun        Jul        Aug       Sep       Oct
Ads on newspaper                            $ 2,760      $ 2,645       $ 2,645   $ 2,530   $ 2,185   $ 1,955    $ 1,840    $ 1,610   $ 1,150   $ 1,219
Brochures                                   $ 1,050      $ 1,006       $ 1,006   $   963   $   831   $    744   $    700   $   613   $   438   $   464
Internet                                    $   396      $   380       $   380   $   363   $   314   $    281   $    264   $   231   $   165   $   175

Total Sales and Marketing Expenses          $   4,206 $ 4,031 $ 4,031 $ 3,856 $ 3,330 $ 2,979 $ 2,804 $ 2,454 $ 1,753 $ 1,858
Percent of Sales                                   0%     81%     40%     26%      19%      15%      12%      10%        6%       7%
Contribution Margin                         $     -    $ 3,150 $ 6,300 $ 9,450 $ 11,025 $ 12,600 $ 14,175 $ 15,750 $ 17,325 $ 17,325
Contribution Margin/Sales                           0%     63%     63%     63%      63%      63%      63%      63%      63%      63%


Notes: Contribution margin = Revenue - Variable Cost.
       Marketing expense was considered fixed cost and not variable.




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