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The next two sections of the marketing plan include Action Programs and Financial Projections and Budget. You will complete phase IV of your marketing plan in two parts. First, you will put together your action programs. Then, you will complete your financial projections and budget.

The Action Program

The Action Programs section of a marketing plan basically serves as a detailed promotions “to do” list. This section spells out specific programs that the company will participate in to promote their products. The Action Program will describe what will be done, when it will be done, who will accomplish the task, and how much it will cost. An example of an item that would appear in an Action Program would be a trade show. The Action Program would list the specific trade show and date. It would state the company’s objectives and reasons for attending it. It would also list who would attend the trade show, expected results, costs, etc.

  1. In 1-2 pages, provide summaries of the Action Programs that you will use during the first six months of launching your product in order to achieve your objectives.

Financial Projections and Budgets

The Financial Projections and Budgets section of the marketing plan include budget details of expected revenue, estimated expenses, and a break-even analysis

  1. Complete your Financial Projections and budget by providing 1-2 paragraphs about each of the following items:
  • Sales Revenue Forecast: What is your projected sales volume by month for the first year?
  • Expense Forecast: What is your total expected marketing costs? Break your costs down by each marketing, promotion, and action program strategy that you listed earlier in your plan.
  • Break-Even Analysis: The break-even-analysis is the price at which total revenue equals total cost and profit is zero. This shows how many units must be sold monthly to offset the monthly fixed costs and average per-unit variable costs

PREVIOUS PAPER BELOW——————————————-

MARKETING PLAN PHASE

Amazons core business strategy is effective industrial timing based on high-quality manufacturing skills and proportional timed movements of products. Amazons marketing plan will basically provide consumers with guaranteed quality and innovative products as well as a general great customer experience. This will be provided in style for different market segments and other necessary and potential applications that may not be captured within the brackets of the plan. 2017 profits represented only 10% of total sales and sales have been potential slowing to a current 4% and thus the need for annual sales growth for the company.

Positioning strategy

We generally understand that age groups and market segments below 3 years contribute over 50% of all branded products with the highest purchase prevalence being for populations between 25-35 years. The business is expected to venture more on social media marketing to target the youth segment. Consumer behavior is also expected to change among segments basically driven by gender. Previous statistics show that young females 18-25 years are intense purchasers and styling choice preferences. Older females 25-35 also make significant purchases for established styles. In connection, the business will research to be more innovative and inventive in modern styles and promotion of existing super quality products. Branded products also vary from regions geographically; northeast areas, north-central and the Mid-Atlantic States generally produce high sales compared to others.

The business has changed buying habits by promoting owners of low priced and well-designed products through brand switching and experimentation for technical products such as watches and other accessories. We are aware that modern consumers are style oriented and focus on buying well-designed products and thus, here at Amazon we value designing, packaging, pricing, and durability as the main factors to capture behaviors.

Competitive analysis

There are many strong competitors in the market because online retail sales markets have low barriers to entry and thus competitions are perfectly defined by the market forces of demand and supply (Babin, & Zikmund, 2015). Among the strongest competitors is Wal-Mart, jonick Inc. among others who occupy almost 71% of the market. However, Wal-Mart has a strong manufacturing and distribution skills but less strong brand recognition in the market. J&K are strong but cannot utilize the benefits of lower costs to sell at lower prices. Therefore, we have considered the weaknesses of our main competitors as the opportunity to terrorize the market.

Most recently branded products (innovation and lower prices) have shown the capability to grow intensively than our current and existing production lines. Therefore, the main strategy to edge out competitors is to produce new and branded products fully innovated, extensive design skills and a good experience in distribution networks globally.

SWOT analysis

Strengths

Innovativeness in new designs

• Experience in distribution channels globally

• Great experience in fashion

Weaknesses

• No great experience in jewelry and capital markets

Opportunities

• market availability globally

• Fast growing markets and states economies (Mauborgne, 2014).

• increase demand for innovated and fashioned products

Threats

• Strong competition from Wal-Mart

• The possibility of new strong entrants

The action plan

Market strategy for the new financial year will be composed of penetration pricing, extensive advertising, and diverse distribution to satisfy our customers and thus increase revenues for the business.

Product

The underlying strategy is set to introduce 25-30 new or branded products and of different designs every year starting from 2018. Out of one quarter will have copying designs from well-established products and another with copying designs from our traditional products; the main consumer targets are young females 25 and below and a general population between 25 and 35 years of age. We will introduce licensed designs and really unusual characters especially for clothes and technical products such as computers. This will give us a great variety of characters in our designs but the most important aspect will be unusual designs varying from hexagon, oval, diamond and other fun shapes. For the younger population, we will design products with carton characteristics and features.

Price

We have varying suggested prices for our products in the global market. Considering a general growth in global economy merged with our strong promotion and distribution channels over the globe that does not limit access to our products at specific countries and markets, the business has been able to produce products at relatively lower costs. Additionally, the business maintains low inventories and centralized e-commerce system to reduce all overhead costs of maintenance workers and the warehouse (Ford, & Ibrahim, 2015). Suggestively, we have recommended a different cut in prices by over 35% of the current price in all products in the normal distributor markups. For example, the price of designer clothes is suggested at $45 retail prices while personal computers as low as $200 retail prices depending on various designs.

Distribution

Reaching customers is our major strategy. For the first time, we will introduce 10 brands in the northeast of the international market. We have current strong distribution networks globally that do not limit access by our potential customers; we will try to place our products in almost 60% of all major markets of the world. We will use normal distributor markups to reach the market.

Promotion

The first underlying strategy is to add five new sales representatives to aid in developing new market outlets and distribution channels of new orders. Similarly, a sales professional will be hired to train the marketing teams and add expertise to the new products. All this will be done within $20000 ultimate sales budget on average wages and an additional $80000 for benefits in each marketing position.

According to the table below, the advertising level for the three leading firms can be compared by determining the voice share ratio divided by the market share. For instance in consumers may not know our brand, therefore, we will have to advertise intensively and aggressively to maintain and improve brand awareness. Our market share of 2017 is 3% thus advertising will be set at $1m hence achieve advertising vice index higher than others.

company

Market share

Voice share

Voice/market

Advert in millions

amazon

3

5

5

1.0

Wal-Mart

20

28

1.4

5.5

Jones Inc.

13

13

1.9

2.5

Media and social media target young women 18-25 years and general population 25-35 years and smaller amounts directed towards other segments and age groups.

Contingency plans and market research

With the entry of new brands and innovated products, we do not expect the competition to increase. However, increased completion might cause other companies to increase advertising as well and thus intensive industry advertising. This likely might increase our advertising costs without any additional income or market share or any effect on business performance. Therefore, the business is well prepared to increase advertising costs in the industry. Moreover, increased consumer awareness, distribution outlets, and increased consumer acceptance ratios are also expected. Most importantly, we want to keep track of consumer behaviors changes, preferences and demand patterns through a serious market research.

Monitoring customer reactions create a communication loop with consumers to continue offering them what they want. We are able to launch new or remove products and thus better decisions. Surveys and one on one interview will be used to collect information for domestic customers. Focus groups will be used to send potential customers messages to determine and develop pricing, packaging, and get feedback from informed persons in the market. The most reliable market research method wills utilize capabilities of blogs and social media network. Specifically, e-store has been established to give the customer the chance to express their opinions and true feeling about the product, service or the business (Fine, 2017). The customers can rate the product as well as getting direct links to social media pages, access Google, and mail alerts.

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