business plan final

5/5/15

Table of Contents

Executive Summary-------------------------------------------------------------------------2

Company Description-----------------------------------------------------------------------3

Market Analysis------------------------------------------------------------------------------4

Organization & Management--------------------------------------------------------------6

Service Line-----------------------------------------------------------------------------------7

Marketing & Sales---------------------------------------------------------------------------7

Budget List -----------------------------------------------------------------------------------8

Plan Summary--------------------------------------------------------------------------------8

Appendix---------------------------------------------------------------------------------------9

Reference Page-----------------------------------------------------------------------------12

Visions P.R. Agency 1

Executive Summary:

Vision Statement

Visions PR Agency is more than an agency, it is an essential community resource that produces recognizable results. Visions P.R. agency embodies the values of perseverance, positivity, unity, community, and transparency. We at Visions are devoted and loyal to our customers and we too have a vision to soon expand our services and open partnership agencies in all areas and suburbs of Milwaukee. Visions P.R. will soon be home to thousands of local talent and the roots of many success stories in the years to come!

Mission Statement

Too often are we encouraged to abandon our dreams and aspirations at the sight of hardship. Too many individuals roam the world today with no direction, scarce resources, and hidden talents. We at Visions P.R. Agency want to help the world see your talents! We want to see you prosper and we want to see your name in those lights, so we make it our duty to make it happen! We discourage conformity and embrace creativity and originality when it comes to your artistry. We are here to provide essential and valuable service that will aid in your visions becoming a reality. We ask that you put your trust in us, we put our resources in you, and together we build a successful brand with your wants and needs in central focus.

Company Information

Visions P.R. Agency was formed and founded by Deondra Avery, a local Milwaukee native, on May 5th of 2015. Avery fulfills the CEO/Lead Consultant role in Visions PR. Agency. Visions has an employee count of 6 individuals, two being additional consultants, one primarily in charge of financial books and sales, a secretary, and the last being an intern. Visions P.R. is located in the beautiful downtown business district of Milwaukee, WI surrounded by multiple restaurants and law offices.

Services

Visions provides a full line of services including but not limited to media representation, special event planning, community relations, press releases, website development, album release parties, press conferences, brand counseling, spokesperson duties, video production, key writing, implementation of social media campaigns, and image consulting. All these services can be bundled together in one of our set sales packages, or purchased A’La Carte.


Company Description:

Visions P.R. Agency is ready to give the city what it so desperately needs, a CHANCE! Visions P.R. Agency is dedicated and devoted to publicizing and showcasing the creative and local talent of Milwaukee, WI. Recognizing the vast amounts of talent hidden in the streets of Milwaukee, Visions P.R. Agency is determined to bring Milwaukee out of the dreaded shadows. Specializing in the niche market of musical entertainment, hoping to eventually expand, we offer full services including media representation, special event planning, community relations, press releases, website development, album release parties, press conferences, brand counseling, implementation of social media campaigns, and image consulting. The city of Milwaukee is in need of a full service, public relations agency. Milwaukee is home to only four different public relations agencies, with only one located in central Milwaukee and the others in surrounding suburbs (appendix figure 1). With the addition of Visions P.R. Agency, located in the heart of Milwaukee’s downtown, the citizens, and more specifically, the youth of Milwaukee will get the support, publicity, and resources that they need to fulfill their dreams and enter into the music industry. Visions will serve the community of Milwaukee and all the musical talent that decides to walk into our doors including, but not limited to, rappers and singers of all genres of music, musicians, choirs, and vocalists. Visions PR agency will be the beginning of a new start! Visions PR would be the much needed savior of the Milwaukee community, promoting positivity, creativity, and perseverance. Visions PR would soon be a recognizable symbol throughout Milwaukee, encouraging individuals to follow their dreams and aspirations instead of pushing them aside. Milwaukee has no creative outlets for its community and it never receives the positive publicity it deserves. We have all witnessed the negative side effects of having an overpopulated, poverty-induced city with no creative outlets (the current state of Milwaukee). It’s time to revitalize Milwaukee and finally give its citizens a chance. Our city is amazing and filled with amazing talent, but if there’s no one in the audience to listen how would you know?

Some competitive advantages we embody that will make our agency a success is our location, expert personnel, and value based services. Since our agency is located in the heart of downtown Milwaukee, we are surrounded by local business and organizations that are heavily populated. This location puts Visions in the center of Milwaukee where we can’t be missed by our large target market. Milwaukee’s downtown area is always hosting an event or celebration which makes it idea real estate for new and upcoming businesses. Also, there are no other P.R. agencies in close proximity to Visions in downtown Milwaukee, giving us an edge in the competition and making us easy and simple to locate. Visions expert personnel and our ability to bring value to our customers also serves as a competitive advantage. Being that Visions’ staff members are all Milwaukee born and raised and have a genuine passion and love for the city of Milwaukee. Our staff embodies the knowledge, expertise, and familiarity of Milwaukee’s talent, services, events, and media outlets. We are all inspired to strengthen and heal the Milwaukee community and we are all very passionate in the services and consultations that we offer. We are on a mission to save our youth and spread positivity throughout the community by offering resources that can help benefit the thousands of distressed teens that populate Milwaukee. Music has always been at the heart of Milwaukee, and only real “Milwaukee-ians” know that! It’s time we shed light on the positive happenings in Milwaukee, and Visions P.R. Agency is ready and willing to take on the challenge!


Market Analysis:

Industry Description/Outlook: After researching and analyzing the industry, we have concluded that the public relations industry is in great shape for entry. The P.R. industry has steadily grown and is projected to grow even more over the next few years according to IBISWorld, home of industry market research. With an industry Revenue outlook of $11.9 billion, a profit outlook of $1.3 billion, and only 8,366 agencies across the United States, the P.R industry is projected to have an annual growth increase from 2014-2019 of 3.2% after just witnessing an annual growth of 4.2% from the years 2009-2014 (appendix figure 2). The P.R industry is at the mature life cycle stage. During this stage, revenue grows at the same pace as the economy, company numbers are stabilized, and it has total market acceptance (appendix figure 5). Total United States advertising expenditures are projected to steadily increase from $287.8 billion in 2014 to $318.1 billion in 2019 (appendix figure 3) due to client businesses increasing their marketing expenditure.

Target Market: After building reports, exploring various demographics, and utilizing multiple government databases, the target market of Visions have been accurately identified. Visions P.R. plans to target towards the greatest household population of Milwaukee, WI. After interpreting the data presented on the Mosaic Index Summary. I have identified the greatest household population of 29,067 to belong to the “Aspirational Fusion: Hope for Tomorrow” group. This target market of households are characterized as young single parents, trend consumers, live modest lifestyles, are always striving for more, optimistic, and diligent. It is estimates that 40% of these household members are under the age of 35 and the greatest head of the household is between the ages 36-45. 49.9% of the household heads also have an education level below high school, and few as 29.9% have a high school diploma. These individuals want to succeed and persevere but they do not have the necessary tools to do so. There is a need for resources and guidance. The Milwaukee community needs are not being met because the community lacks resources valuable and essential to their success that are available in other populated cities.


Pricing: Visions will offer three pricing structures. All pricing structures are listed in the chart below. In addition to these price structures, Visons as well offers discount services of 5% for students, government employees, military vets, and buddy discounts (bring a buddy, and save additional 5%). These discounts help make Visons services even more affordable to the growing economy of Milwaukee. Visions expects the stated promotions to encouraging customer retention, referrals, and customer loyalty.

Pricing Structure Duration Price ServicesProject Based Fees Short term commitment,

work hours varies on Project

Project Duration x$50/Hr

+ additional 10% for unexpected contingencies

Contract agreed, project details

and deliverables

Hourly Rates Minimum of 2 hours $50/hour Consultations, Meetings

6 Month Retainer* Long term commitment: 6 Months, 260 Hours

$26,000+ includes

additional 5% for unexpected

contingencies

Full Service including:

-Press releases-Event/ Launch

party-Social media

consulting-Brand

consulting-Marketing and

Promotions* Option of Installment Payment


Competitive Analysis: The P.R. industry in the United States have a low market share concentration. Large P.R. firms only account for 14.5% of the industry’s revenue in 2014. There are a large number of small P.R. agencies with the vast majority having fewer than ten employees in contrast to the small amount of large firms with a greater deal of employees at the national and international level. Some strengths of Visions’ competitors is that they are more established, location, niche market, and access to wealthier clients. Some of the competitor’s weaknesses are the vast amounts of agencies to compete with and the popularity of consultancies in their respected market. Some weaknesses of the local PR firms in/ surrounding Milwaukee are their location, their lack of presence on social media, lack of advertisement and promotion, and their lack of experience. Visions’ target market is not important to competitors being that it is such a niche market and small firm. Barriers that could hinder Visions entering the market are low and steady. Competition is high, concentration is low, the life cycle stage is mature, capital intensity is low, technology change is medium, there’s light regulation and policy, and no industry assistance is in place (appendix figure #7). The window to enter this market is always open. According to IBIS World, some secondary competitors that could impact Visions success are the consolidations of major P.R. agencies under global advertising firms. With this being the new trend, companies are not servicing greater target markets.

Organization and Management: Visions P.R. Agency occupies a staff of 6. Consultant’s expertise range in all areas. Deondra Avery is the owner of this agency and oversees all operations of this sole proprietorship. The organizational structure below outlines the duties and backgrounds of Visions Staff.


CEO/ Lead ConsultantStrategic PlanningMedia Relations

Spokes Person Duties

BookkeeperFinances, Expenses, Revenue, Collections

Reception/Office Manager

Scheduling, Invoices

InternFiling, Market

Research

Consultant #2Writing (press releases

& speeches), Key messaging

Consultant #3Event planning, Social

Media, Video Production

Service Line: Visons P.R. agency will offer valuable resources to its target market. From a customer’s experience, we offer guidance in establishing your personal brand and give you the resources and publicity you need to stand out in such a crowded industry. This agency will be one of the few public relations agencies located in Milwaukee, WI. There is a need for these resources in the Milwaukee community and access to them will cause an uproar of excitement. Music artists from all over Milwaukee will flock to utilize these services after experiencing how hard it is to capture the media’s eye alone without proper guidance. With Visons’ staff expertise, we can ensure voices are heard and the world knows your name by contacting local broadcast mediums and utilizing other mechanisms. An advantage of Visions P.R. agency in comparison to competitors, is that it offers a variety of full-line services at affordable prices and also offers multiple discounts. Visions P.R. is more aware and knowledgeable about the services and opportunities Milwaukee has to offer in comparison to competitors. Visions is currently in the introduction stage of the Industry Life cycle. Visions P.R. predicts quick growth, and steady sales revenue in this market. If Visions P.R. reach its target sales goal within the first few years of operation, it is idea to expand its reach and specialization.

Marketing, Sales, & Communication Strategy:

Marketing Strategy: Visons plan to penetrate the niche market of musical entertainment in Milwaukee, WI as one of the first agencies to service this need and area. Visions will invest in public advertisements to reach large audiences being that it’s the most effective method with the greatest potential audience reach. Visons will be advertised across Milwaukee on billboards, public transportation, commercials, radio, and television. Fliers and postings would be made available for all high schools, colleges, and local establishments.

Communications Strategy: Visons plans to communicate through multiple mediums including, but not limited to promotions, advertising, and public relations at community events, personal selling, and printed materials such as fliers. Utilizing all these mechanisms will ensure Visons P.R. Agency services will be known by the community.

Sales Strategy: The agency will offer sales discounts and promotions to encourage customer retention and brand loyalty. Some sales strategies will include a 5% discount, free consultation, and/ or first month free deals.

Growth Strategy: Visions plans to implement a horizontal strategy by expanding its offices and providing similar services to other markets such as dancers, hair stylists, and makeup artists. Milwaukee is made up of talent and Visions is more than confident that there will never be a scarce of talent in this city.

Channel of Distribution Strategy: Visions would act as the primary channel of Distribution since it would offer full-line services. The channel of distribution would simply be from consultant to consumer.


Budget List: Visons budget list includes the following advertising, promotion, and public relations. Prices fluctuates based on project detail and amount of hours needed to implement it.

Hourly Rate: $50/hour

Monthly Retainer: $26,000

Time Frame: 6 months

Services/Month: 260 Hours of consultation/services to evenly distribute over 6 months.

Additional 5% charged for unexpected expenses

Services include: Print and broadcast advertising, design and printing costs for all print materials (i.e. newsletters, brochures, press releases, and direct mail costs), public relations, event fees, space rentals, wages for marketing support, direct marketing, and sales promotions.

Plan Summary: Visions P.R. Agency is dedicated to offering substantial services and exceeding all customer expectations. With the help of Visions, thousands of talented individuals will finally have a real chance to be seen and heard. Implementing the presented plans and strategies will help generate ongoing sales and revenue while simultaneously strengthening brand loyalty, customer retention, brand awareness, and media coverage. Visions P.R .is ready to take Milwaukee’s market by storm, introducing something positive and something new.

Let Visions P.R. Agency take the First step towards the Future…

Thank you for taking the time out to review this business plan.

Respectfully,

Deondra Avery

Visions P.R. Agency


Appendix

Image # 1 Company Competitors

Company Name City State County Location Sales Volume Location Employee Size Clarity Public Relations Appleton WI Outagamie $368,000 2Emerald Isle Public Relations New Berlin WI Waukesha $1,289,000 7June Lehman Public Relations Milwaukee WI Milwaukee $552,000 3Mikat Public Relations La Crosse WI La Crosse $184,000 1

Citation: ReferenceUSA - Log On. (n.d.). Retrieved May 5, 2015, from http://www.referenceusa.com/UsBusiness/Result/9b130b0791b647c98e34ea2cdef84844

Image #2 Trends of Industry

Citation: Retrieved May 5, 2015, from clients1.ibisworld.com/reports/us/industry/ataglance.aspx?entid=143

Image # 3 Expenditure Trends

Key Statistics

Revenue ($m) IVA ($m) Establishments (Units) Enterprises (Units) Employment (People) Wages ($m) Total US advertising expenditure ($b)

2005 8,968.40 4,354.80 7,224 6,849 41,998 3,619.50 322.42006 9,959.10 4,692.70 7,460 7,052 43,385 3,905.90 325.12007 10,433.10 4,963.90 7,649 7,261 44,248 4,014.50 310.52008 10,197.80 5,467.60 7,964 7,527 53,063 4,692.50 298.52009 9,687.40 5,178.00 7,892 7,466 50,018 4,403.00 252.82010 10,814.60 5,648.50 8,219 7,770 49,888 4,707.70 272.72011 10,864.70 5,673.20 8,204 7,784 52,091 4,814.90 283.42012 11,346.30 6,422.70 8,084 8,002 53,526 4,970.40 286.32013 11,811.30 6,543.00 8,355 8,252 54,618 5,102.00 290.32014 11,917.50 6,662.60 8,499 8,366 56,831 5,208.70 287.82015 12,453.80 6,860.10 8,865 8,695 58,692 5,415.50 297.92016 12,802.50 6,840.60 9,100 9,011 60,213 5,573.20 309.52017 13,045.70 7,059.40 9,259 9,199 61,180 5,676.60 302.12018 13,528.40 7,293.30 9,865 9,465 63,157 5,886.30 311.72019 13,947.80 7,507.10 10,141 9,752 64,705 6,056.50 318.1

Citation: Retrieved May 5, 2015, from clients1.ibisworld.com/reports/us/industry/keystatistics.aspx?indid=1434


Appendix (continued)

Image #4 Greatest Households in Milwaukee: Hope for Tomorrow

Citation: Retrieved May 4, 2015, from http://library.demographicsnow.com/custom/img/mosaicPDF/R67%20Hope%20for%20Tomorrow.PDF

Image #5 Industry Life Cycle Image represents the stage of Public Relations Industry

Citation: Retrieved May 5, 2015, from clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1434


Appendix (continued)

Image #6 Industry Revenue Outlook

Revenue Outlook

Year Revenue $ million Growth %

2015 12,453.8 4.5

2016 12,802.5 2.8

2017 13,045.7 1.9

2018 13,528.4 3.7

2019 13,947.8 3.1

2020 14,394.1 3.2

Citation: Retrieved from clients1.ibisworld.com/reports/us/industry/industryoutlook.aspx?entid=1434

Image # 7 Barriers to Entry

Citation: Retrieved from clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=1434#BTE

Reference Page


Retrieved May 5, 2015, from clients1.ibisworld.com/reports/us/industry/ataglance.aspx?

entid=1434

Retrieved May 5, 2015, from clients1.ibisworld.com/reports/us/industry/default.aspx?

entid=1434

Retrieved from clients1.ibisworld.com/reports/us/industry/industryoutlook.aspx?entid=1434

Retrieved May 5, 2015, from clients1.ibisworld.com/reports/us/industry/keystatistics.aspx?

indid=1434

Retrieved May 4, 2015, from

http://library.demographicsnow.com/custom/img/mosaicPDF/R67%20Hope%20for

%20Tomorrow.PDF

Retrieved from clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?

entid=1434#BTE

MRI Reporter. (n.d.). Retrieved May 5, 2015, from

http://ureporter.mriplusonline.com/selectdemo.asp

ReferenceUSA - Log On. (n.d.). Retrieved May 5, 2015, from

http://www.referenceusa.com/UsBusiness/Result/9b130b0791b647c98e34ea2cdef84844


business plan final

Documents