hotel buisness plan
TRANSCRIPT
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1.0 Executive Summary
The Riverview Hotel, Notown USA, is representative of the five star brand within the 'Exclusive
Business Hotels of the World' group. All Riverview Hotels are boutique properties, offering
between 25 and 35 exclusive rooms.
The Riverview properties are renowned for their convenient and strategic locations within major cities
throughout the country. Also synonymous with the brand are the high level of personal service guests
receive, and the extensive range of comprehensive business facilities available in luxurious settings.
The Riverview Hotel, Notown has 35 exclusive rooms and is targeting corporate guests with a two to
three night stay requirement. Target business segments include the IT sector, due to the proximity of
the property to Silicone Hill, USA; the automotive industry in order to capitalize on the strategic
location of the hotel in relation to the Overall Motors Plant and HQ in Notown and travel trade guests
attending National and International Travel Fares at the Notown Exhibition Halls.
Differentiating the type of business service offered, from that of the competition, will assist not only
in building the Riverview brand as a whole, but will attract frequent business travelers, who require a
higher level of personal service and recognition than they can receive at competitive five star
properties in Notown. This will provide the Riverview with an opportunity to leverage its core
competencies as regards servicing the business traveller in a luxurious environment.
2.0 Situation Analysis
The 'Exclusive Business Hotels of the World' group is the ninth largest International Hotel chain in the
world, with over 320 wholly owned and managed properties. The group specializes in occupying
strategic, inner city locations and serving primarily corporate clients.
The properties range from three to five star plus categories, and include the following brands: River
Inns (3*), River Post Houses (4*), and Riverview Hotels (5*+). The group has a high instance of
repeat business across all its brands, particularly the Riverview Hotels properties, which account for
68% of total revenue across the group.
The Riverview Hotel, Notown, is dependent on annually contracted clients from the travel trade,
automotive and IT sectors with guaranteed room nights per year. This area of business accounts for
70% of the property's revenue.
The current market is somewhat depressed, due to the economic downturn and restrictions being
made on corporate travel within the U.S. This threat to the critical corporate sector could beconsidered as short to medium term, as indications of a return to business travel are observed.
Riverview Hotel, Notown, must continue to focus on delivering an exemplary business service, at
affordable rates, in order to develop the customer relationship beyond one stay.
Competitive room rates have been cut dramatically in order to attract contract clients over the next 10-
12 month period. The Riverview Hotel's survival in the current environment, will be dependent on
repeat corporate contract business and customer loyalty to the brand. The brand must therefore
continue to deliver on its promise and values.
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Market Analysis2005
2006200720082009
Potential CustomersGrowth
CAGRTravel
7%1.0001.0711.1471.2281.315
7,09%
IT Industry8%
1.2001.2961.4001.5121.633
8,01%Automotive
10%1.5001.6431.7991.9702.157
9,51%
Total8,38%3.7004.0104.3464.7105.105
8,38%
2.1 Market Needs
The Riverview Hotel offers value and benefits to our clients, over and above the standard of our
facilities and affordable rates. We seek to provide our guests with an exemplary personal service, and
level of recognition that they have come to rely upon. We provide our guest with a luxurious, relaxed
environment within which to conduct their business.
An environment which they cannot find at our larger, more impersonal competitors. Our guests need
to know that they can develop a relationship with the hotel that will ensure efficiency, value for their
money and reliability in supplying them with the support they need, when they need it. The
Riverview Hotel operates in a city with a very strong sense of community, and we want to stay an
integral part of that community.
2.2 The Market
The Riverview Hotel is a boutique 5*+ hotel comprising 35 luxury guest rooms and specializing in
servicing business and corporate clients. It serves the business community, and visiting business
traveller, in the city of Notown USA.
Our key clients are contracted corporate clients originating from both international and domestic
markets from within the travel trade, automotive and IT segments. The strategic location of the
property is key to its success in these areas due to the proximity of the Exhibition Halls, Overall Motors
and Silicone Hill, USA.
Key to our business success is the level of customer loyalty and repeat business we receive on an
annual basis. We offer our guests the most up-to-date technical business facilities, both inside the
rooms and within the hotel's conference facilities.
Our guests feel that they can conduct their business from within a less austere atmosphere than canbe experienced in our competitive properties, where there is less personal recognition. They
appreciate being called by name when they arrive, and having staff remember their specific
requirements, time and again. This is key in developing the relationship beyond an initial stay and
evidences our added value in relation to competitive properties in the vicinity.
Table: Market Analysis
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Market Analysis (Pie)
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323030382c20616c6c2 07269676874732072657365727665642e0058595a2000Tr avelffd8ffe000104a4649460001020100c800c80000f
fe2ffff4943435f50524f46494c450 00102000191964b434d53020000006d6e74725247422058595a2007d800090011 000e00290010616373704d53465400000000465343004c4c20330000000000000 000000000000000f6d5000100000000d32b4b4f 444100000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000 00000016637072740000018c0000004877747074000001d4000000144b3031360 00001e8000000714b3031370000025c0000000c4b303331000002680000000c4b 30303700000274000000b0646d6e640000032400000068646d64640000038c000 0008364657363000004100000009b4b3032310000025c0000000c4b3032350000 04ac0000000c4b303330000004b80000000c7258595a000004c4000000146758595a000004d8000000146258595a000004ec0000001472545243000005000000001667545243000005000000001662545243000005000000001641324230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030
382c20616c6c207269676874732072657365727665642e0058595a2000IT Industryffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e747252474220
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
2.2.1 Market Demographics
Market Geographics: Notown, USA is a suburb of Seattle, Washington, with a population of 150,000.
Market Demographics: The community is made up predominantly of households having two to four
children, either at home or away from home, with at least one parent/guardian having attended
college.
Market Psychographics: There is a strong 'small business' ethic in the community, and many family-
run enterprises have been prospering for generations. There is also a strong sense of community and
a high level of awareness as regards to caring for the environment.
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d53465400000000465343004c4c20330000000000000000000000000000f6d5000100000000d32b4b4f4441000000000000000000000000000000000000000000
000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d4000000144b303136000001e8000000714b3031370000025c0000000c4b303331000002680000000c4b30303700000274000000b0646d6e640000032400000068646d64640000038c0000008364657363000004100000009b4b3032310000025c0000000c4b303235000004ac0000000c4b303330000004b80000000c7258595a000004c4000000146758595a000004d8000000146258595a000004ec00000014725452
43000005000000001667545243000005000000001662545243000005000000001641324230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030382c20616c6c207269676874732072657365727665642e0058595a2000
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Market Behaviors: Businesses in the area choose to support one another wherever possible, be
remaining loyal to long standing relationships with customers and suppliers. This acts as a means of
investing in, and supporting the community structure, rather than shifting alliances to large 'newcomer'
suppliers, despite the potential cost savings involved.
This attitude supports the brand principles of the Riverview Hotel, which has had a presence in the city
for 15 years, and is well supported by local business requirements for rooms, conference facilities andcatering business functions.
Based on research carried out in 2001, more than 68% of the population had some awareness of
the Riverview Hotel. Awareness levels were highest amongst small- to medium-sized businesses
with 20 or more employees, who had utilized the hotel's facilities either for visiting business
guests, or for their own functions.
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Market DemographicsMarket Segments
-CharacteristicCharacteristicCharacteristicCharacteristic
Travel-----
IT Industry-
----
Automotive-----
Table: Market Demographics
2.2.2 Market Trends
Market trends can be categorized as follows: Corporate Travel Policies, Local Business
Trends, and Economic Cut Backs.
Corporate Travel Policies: As a result of various security issues, as regards
travelling in both domestic and international markets, there has been a significant drop
in corporate guests visiting the city. Although the level of corporate room business
appears to be increasing again, it has had a significant affect on last year's result and
consequent projections for the future.
Local Business Trends: There has been a period of low activity in the area of conferencing
and business catering with local companies electing to conduct meetings and seminars on
their own premises in order to cost cut. This is changing however as group bookings,
incoming visitors and day use of conference facilities is on the increase.
Economic Cut Backs: The city cancelled three major trade events over the past three
months, and exhibitions held at the halls had attendance figures much lower than
expected. All booked events for the upcoming 12 month period however, including
the Motor Show and the Northwest Tech Exhibition, have pre-booked attendance
figures in line with expectations and in some cases in excess of projections.
Market Analysis (Trends)
2500,0
2000,0
1500,0
1000,0
500,0
,0
Travel IT Industry Automotive
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5000000001662545243000005000000001641324230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030382c20616c6c207269676874732072657365727665642e0058595a2000
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000191964b434d53020000006d6e74725247422058595a2007d800090011000e0029001061637
3704d53465400000000465343004c4c20330000000000000000000000000000f6d500010000000
0d32b4b4f4441000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d
4000000144b303136000001e8000000714b3031370000025c0000000c4b30333100000
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2.2.3 Market Growth
The growth rate of the target markets has been steady over the past five years. The travel trade sector
has grown at an average of 7.1%, the automotive sector at an average of 9.5% and the IT industry at
8%.
Recent world events have caused a reduction in the growth rate, but current trends indicate a return toprojected growth figures within the next three to six months. Once re-stabilized, growth is anticipated
to continue at a steady pace in line with the expansions in the region's IT activities, the annual program
of travel trade events taking place and the launch of a new overall motors model this year.
Market Analysis (C.A.G.R)
2.2.4 Macroenvironment
The external, environmental
issues that affect theRiverview Hotel are:a
Political: a stable environment
where little affects our ability togenerate revenue.g
Economic: the recent recession has
seen many smaller business-orientedhotel chains go into liquidation, asthey do not possess the infrastructureto support under- performingproperties as the larger chains do.Although recovery is beginning, it maytake some time before corporate travelpolicy restrictions are fully lifted andbusiness travel returns to the samelevels of the past three years.y
Social: the trend towards cost
effective business travel leads hotelguests to seek more value for money, which is where our added value differentiation strategy comes into play.g
Technological: the installation of 'on board' room reservations systems on certain aircraft, will require a
systems integration with the hotel group's own central reservation system. This will require a high level ofinvestment.
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50
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2.3 The Company
The Riverview Hotel, Notown USA, is representative of the five star brand within the 'Exclusive
Business Hotels of the World' group. All Riverview Hotels are boutique properties, offering
between 25 and 35 exclusive rooms.
2.3.1 Mission
The Riverview Hotel is dedicated to providing its guests with the highest quality of service and
standards. We seek to deliver on our promise of value and quality above all else. We value our place
in the community and will work to develop those relationships and to respect and protect our
environment.
We will continue to strive to create value for both owners and shareholders whilst honoring our
brand values and encouraging our personnel to develop themselves in an environment of trust,
loyalty and encouragement.
2.3.2 Service Offering
Service: high-quality facilities accompanied by exemplary personal service, differentiated from
competition in line with the overall brand strategy has proven to be a successful approach generating
high levels of repeat business.
2.3.3 Positioning
The Riverview Hotel is positioned as a five star plus, business traveler's hotel, strategically located and
offering a high level of personal service. Our focus is on offering our guests added value anddifferentiating ourselves in our levels of personal service. We provide a quality hotel experience where
guests are valued, respected and their business is truly appreciated.
2.3.4 SWOT Summary
The following analysis highlights the internal strengths and weaknesses of our organization
and the opportunities and threats facing the company in our external environment. We must
work to improve our areas of weakness.
Organizational strengths must be leveraged in order to capitalize on external opportunities as they
arise, and contingency plans formulated in order to deal with threats presented by the environment.
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2.3.4.1 Strengths2
Strategy: established differentiation strategy.
Structure: flat, decentralized structure.
Skills: diverse range of service skills within management and staff.
Style: strong, participative culture.
Staff: specialized and experienced staff that are motivated and highly skilled. A well trained team who are
proud of their hotel and respect and promote the brand values.pShared Values: clear and well communicated.
Brand Strength: brand values well represented engendering brand loyalty amongst existing and new guests.
Reputation: a strong reputation within the local market and corporate and travel trade markets for reliability,
exemplary service and quality.
2.3.4.2 Weaknesses2
Strategy: differentiation strategy needs to be more clearly communicated externally, within local and national
markets.m
Systems: formal systems result from the detail oriented work and environment. Interdepartmentalcommunications could be improved.cStaff: seasonal turnover requires ongoing training and orientation of new staff.
Facilities: certain rooms require renovation and upgrade as regards technical equipment, such as high speed
Internet access and laptop links.
2.3.4.3 Opportunities2
Market: returning growth after a period of slump.
Competitors: no direct competition exists at present, in terms of the five star 'boutique business property'
niche.nSuppliers: strong, long-term relationships established with suppliers.
Guest Dependency: repeat corporate business based on personal service and quality, in a small but luxurious
environment.
2.3.4.4 Threats2
Market Entry: potential for a competitive, global brand to enter the market with a similar product.
Substitutes: fully furnished and serviced business apartments offering lower daily rates.
Economy: recovery from slight recession may take time.
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Historical DataVariable
200220032004
Industry Revenue$100.000.000$110.000.000$115.000.000
Company Market Share2%2%3%
Company Revenue
$2.000.000$2.200.000$3.450.000
Industry Variable Costs$70.000.000$80.000.000$80.000.000
Company Variable Costs$1.500.000$1.700.000$2.700.000
Industry Gross Contribution Margin$30.000.000$30.000.000$35.000.000
Company Gross Contribution Margin$500.000$500.000$750.000
Marketing Expenses$300.000$350.000$650.000
Company Net Contribution Margin$200.000$150.000$100.000
2.3.5 Historical Results
Marketing activity in previous years, has produced positive results. The areas that have produced
the best results have been:t
Service: high-quality facilities accompanied by exemplary personal service, differentiated from competition, in
line with the overall brand strategy has proven to be a successful approach generating high levels of repeatbusiness.b
Price: pricing strategy has been consistent with the differentiation objective, to provide added value for a
reasonable rate as opposed to discounting and devaluing our products and services.r
Place: service information is provided to the guest via personal selling, direct marketing, advertising and the
Internet. Delivery channels include travel agents and international reservations systems.I
Promotion: primary focus has been on mass communication via print ads in trade publications and on the
Internet, direct mail campaigns to existing and prospective clients and personal selling in the local market.Personal selling provides the means to develop relationships within the local community and generate highlevels of corporate activity through the business community. Public relations plays an important role in the
marketing mix, presenting the hotel as a supportive member of the community and participating in significantlocal events to assist in developing ongoing cooperation, assures repeat business and good workingrelationships.
Table: Historical Data
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Growth and ShareCompetitor
PriceGrowth Rate
Market ShareHilton
$1056%
20%Marriot
$1158%
33%Glendale Apts
$1056%5%
Hyatt Residence$120
5%12%
Riverview Hotel$105
8%30%
Average$110,00
6,50%20,00%
Total$550,00
32,50%100,00%
Competitive Analysis#1
#2
#3#4#5#6
CompetitorHilton
MarriotGlendale
HyattRiverviewName me
Product and/or ServiceHilton
MarriotGlendale
Hyatt
RiverviewName meQuality
674890
Selection575690
Price666680
Other000000
2.4 Competition
Although no direct competition exists, in terms of the five star plus boutique-style property,
other five star hotels and serviced apartments do compete for the same corporate business
sectors.
2.4.1 Direct Competition2
Hilton, Notown: 5 star city hotel, room rates on par with Riverview, older facilities.
Marriott, Notown: 5 star city hotel, room rates approximately 10% higher than Riverview, facility only four
years old.yGlendale Apartments, Notown: 5 star furnished apartments, daily rates vary between Riverview's double
deluxe and suite rates.dHyatt Residence, Notown: 5 star furnished apartments, daily rates 15% higher than Riverview's double
deluxe rates.
These properties offer similar facilities, although somewhat less focused on business needs, andincorporate more leisure facilities than we currently provide.
Table: Growth and Share Analysis
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Marriot
GlendaleHyatt
RiverviewName me
Traffic457780
Appearance47
6890
Visibility767980
Convenience Factors7668
90
Other000000
Added Value FactorsHilton
MarriotGlendale
HyattRiverviewName me
Pre and Post Sales Service354790
Experience786990
Expertise675890
Reputation596890
Image69
4880
Stability684990
Strategic Alliances00
Riverview Hotel
Table: Competitive Analysis
Competitor by Growth and Share
9
%
8
%
7
%
6
%
5
%
4
%
86 88 90 92 94 96 98 100102
Hilton Marriot
Glendale Apts
Hyatt Residence
Riverview Hotel
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ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102
000191964b434d53020000006d6e74725247422058595a2007d800090011000e0029001061637
3704d53465400000000465343004c4c20330000000000000000000000000000f6d500010000000
0d32b4b4f4441000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d
4000000144b303136000001e8000000714b3031370000025c0000000c4b30333100000
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00
Other000000
Other Marketing ActivitiesHilton
MarriotGlendale
HyattRiverview
Name meEstablished Sales Channels
000
2.4.2 Indirect Competition
Riverview's indirect competition is "distance" meetings in the corporate world. The more companies
decide to conduct meeting over the phone, using web conferencing technology, and video phone
technology, the less business people travel and the more it affects Riverview Hotel. Riverview has to
keep abreast of all new distance meeting technology, and continue to reinforce with clients that there is
no better way to do business then face to face.
3.0 Marketing Strategy
Our marketing strategy's objective is to communicate the unique set of services that we offer to
discerning hotel guests. We attempt to direct the focus of our guests to the issues of quality and value
for the money as opposed to simply the bottom line costs associated with their stay.
Our marketing strategy will allow us to communicate our brand values, develop close working
relationships with our customers and suppliers and to identify the needs of our guests in an effective
manner. Continued differentiation and growth are two goals we have set for ourselves. Growth will
take place by targeting new areas of business within both local and national communities.
3.1 Value Proposition
Riverview Hotel offers the best, most personalized service for the corporate traveler. We include
business essentials in every room, such as a nice desk, internet connection, wireless access, and
provide easy to access meeting rooms with all audio-visual and technology needs as well as catering
for longer meetings.
3.2 Critical Issues
We have many strengths including our differentiation strategy, our flat structure and highly skilled and
well trained staff. Our weaknesses involve the need to communicate our strategy more clearly in the
external environment, our high staff turnover and training requirements due to seasonal fluctuations.
Although there is a low to medium threat of a competitive brand entering the market, there are also
opportunities as regards the high level of dependency of our guests for our particular service and our
strong position within the community with both customers and suppliers.
Critical issues for the Riverview include:C
Continuing to differentiate from our competition and offering added value to our guests.CRetaining our current levels of repeat business and developing further customer loyalty in a competitivemarket.mAttract new market sectors such as the Notown University-based business sector.AContinue to be perceived as a supportive member of the Notown community.
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3.3 Financial Objectives3
Increase overall room revenue by 10% on the past year.IAccomplish growth within the given budget of $250,000.AIncrease corporate contracted rates to reflect the return of confidence in the corporate travel market.IKeep payroll expenses down and reduce the level of overtime within the workforce.
3.4 Marketing Objectives3
To continue to communicate our strategic objectives to our target markets effectively.TTo provide a positive hotel experience to all our guests.TTo accomplish our growth targets within the given time and budget.TExpand our markets and identify new markets for our product and services.
3.5 Target Market Strategy
Our primary targets continue to be professional visitors to the region from the following industries,
where annual corporate contracts can be entered into:w
Travel trade;TIT industry;IAutomotive.
Local firms will be targeted for day use of conference facilities, room nights for visiting executives
and long stay professional guests.
3.6 Messaging
It is critical to the success of the Riverview Hotel to make sure that the hotel is kept up to the highest
level in order to keep the high quality branding that Riverview properties are known for. Our messagingwill reflect this high standard that we want to be associated with. We need to print brochures with high
quality photographs as well as on high quality paper. It will be important to spend a little bit extra on
marketing materials to ensure that they keep our "high quality" message in front of our customers.
3.6.1 Branding
The Riverview Hotel, Notown USA, is representative of the five star brand within the 'Exclusive
Business Hotels of the World' group. All Riverview Hotels are boutique properties, offering
between 25 and 35 exclusive rooms.
The Riverview properties are renowned for their convenient and strategic locations within major cities
throughout the country. Also synonymous with the brand are the high level of personal service guests
receive, and the extensive range of comprehensive business facilities available in luxurious settings.
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Target Market MessagingMarket Segments Travel IT Industry AutomotiveMessaging Most Luxurious Small Hotel Business Ammentities and Proximity to IT Industry Best Business Ammentities
Riverview Hotel
Table: Target Market Messaging
3.7 Strategy Pyramids
Our marketing strategy is to focus customers' attention on the high quality of the services we offer.
Within this strategy are three main points aimed at different market segments.
We will provide:W
The Best Business facilitiesTPersonalized ServicesPLuxurious Amenities
Strategy Pyramid
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4.0 Marketing Mix
Place: product and service information are sold to the guest via personal selling, direct marketing,
advertising and the Internet. Delivery channels include travel agents and international reservations
systems.
4.1 Product Marketing
Product: high quality facilities accompanied by exemplary personal service, differentiated from
competition quality with the overall brand strategy has proven to be a successful approach generating
high levels of repeat business.
4.2 Pricing
Pricing strategy has been consistent with the differentiation objective, to provide added value for a
reasonable rate as opposed to discounting and de valuing our products and services.
Room rates quoted are net of tax and service, are per night, per room with continental breakfast
included:i
Corporate single -$95.00;$
Corporate double -$125.00;$Corporate double
deluxe - $ 175.00;$Corporate suite -
$225.00 (maximum occupancy2 persons).
Conference room
rates are net of tax
and service, quoted
per day use with tea
and coffee breaks (2)
included:i
The Riverview Boardroom - $260.00;The Riverview Conference Hall - $320.00;The Riverview Ballroom - $875.00.
4.3 Promotion
Promotion: primary focus will remain on mass communication via print ads in trade publications and on
the Internet. Direct mail campaigns to existing and prospective clients will increase as a cost effective
means of targeted campaigning.
Personal selling in the local market will remain an important element of the mix in order to continue to
build long-term relationships within the local community and generate high levels of corporate activity.
Public relations activities will continue to play an important role in the marketing mix, presenting
the hotel as a supportive member of the community and participating in significant local events.
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d53465400000000465343004c4c20330000000000000000000000000000f6d5000100000000d32b4b4f4441000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d4000000144b303136000001e8000000714b3031370000025c0000000c4b303331000002680000000c4b30303700000274000000b0646d6e640000
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MilestonesAdvertising Contract media space Ad agency liasonon print ad material Dispatch/monitor campaign results Total Advertising BudgetStart Date 1/1/2005 1/1/2005 1/5/2005
End Date 1/4/2005 28/3/2005 1/8/2005Budget $20.000 $11.000 $2.000 $33.000
Manager Geoff Geoff SallyDepartment Marketing Marketing Marketing
4.3.2 Public Relations
The following table shows our primary PR milestones.
Table: PR Milestones
MilestonesDirect Marketing Direct mail lists to purchase/prepare Ad agency liason on direct mail materialStart Date 1/2/2005 1/3/2004End Date 1/3/2005 1/3/2005Budget $6.000 $7.000
Manager Sally SallyDepartment Marketing Marketing
Riverview Hotel
4.3.1 Advertising
The following table shows our primary advertising milestones.
Table: Advertising Milestones
Milestones
PR Start Date End Date Budget Manager Department Public relations functions to schedule 1/2/2005 1/3/2005 $0 Anne PR Evaluatesponsorship requests 1/3/2005 1/4/2005 $0 Anne PR Establish list of sponsorship $6.000
1/4/2005 1/6/2005 Anne PRevents/companiesTotal PR Budget $6.000
4.3.3 Direct Marketing
Our direct marketing will be handled by our PR agency. We will buy select targeted list of corporate
companies and send them information about Riverview Hotel. We know that we are no experts in
direct marketing so it will be important that our PR agency handles every aspect of direct marketing
for us.
Table: Direct Marketing Milestones
Total Direct Marketing Budget $13.000
4.4 Web Plan
Our website is already up and running, but needs to be revamped to give it an updated look and feel,
as well as to add secure interactivity. The content is good -- it just need a little refresher.
We need:
1.New home page design and navigation2.Online reservations capability3.Printable brochure
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Pay-Per-Click ROASNetwork Google Yahoo! Other Total
Monthly Cost $3.000 $2.000 $500 5500Clicks 600 300 100 1000
Leads Generated 75 40 30 145Orders 10 5 3 18
Monthly Revenue $5.000 $4.000 $1.500 10500ROAS 167% 200% 300% 222%
Cost-per?click $5,00 $6,67 $5,00 $5,56Cost-per?lead $40,00 $50,00 $16,67 $35,56
Milestones
Web Development Homepage Re-design Printable Brochures Online reservations Total Web Development BudgetStart Date 1/1/2005 1/1/2005 1/1/2005End Date 15/1/2005 15/1/2005 15/1/2005Budget $1.000 $2.000 $6.000 $9.000Manager Shelly Shelly ShellyDepartment Marketing Marketing Marketing
MilestonesAdvertising
Start DateEnd Date
BudgetManager
DepartmentContract media space
1/1/20051/4/2005
$20.000Geoff
MarketingAd agency liasonon print ad material
1/1/200528/3/2005
$11.000Geoff
MarketingDispatch/monitor campaign results
1/5/20051/8/2005
$2.000Sally
MarketingTotal Advertising Budget
4.4.1 Website Goals
Our website needs to be able to do the following:
1.Convey our messaging of high quality, luxury business accommodations2.Be indexed on major travel websites so that people find us
3.Be able to take reservations online and make changes to reservations online
4.4.2 Website Marketing Strategy
Our main website marketing strategy hinges upon making sure all major travel sites such as
Expedia.com, Orbitz.com, and Hotels.com list our hotel when customers search for hotels in our area.
4.4.3 Development Requirements
To attain the level of interactivity we want in our redesign, we need to increase the features allowed
(security for reservations and credit-card processing, daily back-ups, and real-time database linking)
and service-level of our hosting service. This will slightly increase our monthly hosting fee.
Sally has contracted with a database developer to update our reservations system to be compatible
with the online reservation requirements. The new website will be ready to launch in April.
Table: Pay-per-click ROAS
Table: Website Milestones
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.
PRStart Date
End DateBudget
ManagerDepartment
Public relations functions to schedule1/2/2005
1/3/2005$0
AnnePR
Evaluate sponsorship requests1/3/2005
1/4/2005$0
AnnePR
Establish list of sponsorship events/companies1/4/2005
1/6/2005$6.000
AnnePR
Total PR Budget
$6.000
Direct MarketingStart Date
End DateBudget
ManagerDepartment
Direct mail lists to purchase/prepare1/2/2005
1/3/2005$6.000
Sally
MarketingAd agency liason on direct mail material1/3/2004
1/3/2005$7.000
SallyMarketing
Total Direct Marketing Budget
$13.000
Web Development
Start Date End DateBudget
ManagerDepartment
Homepage Re-design1/1/2005
15/1/2005$1.000
ShellyMarketing
Printable Brochures1/1/2005
15/1/2005$2.000
Shelly
MarketingOnline reservations
1/1/200515/1/2005
$6.000Shelly
MarketingTotal Web Development Budget
$9.000
Riverview Hotel
4.5 Service
Our hotel provides guests with an alternative to the impersonal, large five star properties in the city.
Strategically located, our property enables our guests to be at the heart of the business community andyet in an environment of calm and professionalism. We seek to differentiate our product and services in
the following areas:t
Personal recognition of our frequent travelers who return time and again.PLuxurious rooms that offer a sense of doing business from 'home.'LStaff that have a strong customer-service ethic.SBusiness facilities second to none in town.
4.6 Implementation Schedule
New marketing campaign efforts will be focused from January through April, aimed at the launch of the
redesigned website in April. We will continue to track the results of this campaign for the remainder of
the year.
Table: Milestones
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Start Date
End DateBudget
ManagerDepartment
Name me1/1/2006
15/1/2006$0
ABCDepartment
Name me1/1/2006
15/1/2006$0
ABCDepartment
Name me1/1/2006
15/1/2006$0
ABCDepartment
Other1/1/2006
15/1/2006$0
ABCDepartment
Total Other Budget
$0
Totals
$61.000
Sales Account Plan
Target Accounts Company A Company B Company CHistory disappointed w/ current referral from Jack request on 12/15Status proposal made designing proposal drafting responseAnnual Sales Potential $20.000 $15.000 $10.000Key Account Manager Geoff Geoff SallyExisting Key Accounts Company 1 Company 2 Other TotalHistory 3 years 5 annual conferences -Status Stable check next month -Annual Sales Potential $40.000 $60.000 $0 $145.000Key Account Manager Sally Geoff -
4.7 Sales Plan
Our sales plan hinges upon our sales strategy, sales process and, prospecting plan. As long as we
follow the plans laid below we should be in good shape.
4.7.1 Sales Strategy
Riverview Hotel's sales strategy hinges upon repeat visits by key corporate accounts. We need to
develop a relationship with the companies listed in our Sales Account Plan, as well as actively generate
new accounts by soliciting first time corporate visitors.
It will be important to remain competitive on price, as well as amenities. The corporate accounting
department wants to make sure they limit the amount of money spent per night per employee on a
business trip, but the business traveler will be able to express preference. If the price is right, and
the business traveler knows that they will have all amenities they need while at the Riverview Hotel,
we will be assured of keeping and attracting key accounts.
4.7.2 Sales Process
We will be sure to mail out corporate packets every 6 months to our key accounts, as well as any new
accounts we acquire. The packets will have information about corporate pricing and discounts, as well
as information about rooms and amenities for the companies to share with business travelers.
The biggest piece of our sales process will depend on personal relationships. We will need to make
every business traveler feel like we remember them and we know their likes and dislikes. We also need
to cultivate good relationships with the person at the company who makes travel arrangements.
Table: Sales Account Plan
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Table: Fixed CostsFixed CostsCost Rent or Lease Professional Services Payroll Interest Payments Utilities & Telephone Non-discretionary marketing expenses Other Total$0 $1.000 $10.000 $2.000 $5.000 $0 $0 $18.000
Table: Break-even Analysis
Break-even Analysis
Monthly Units Break-even Monthly Revenue Break-even145 $19.929Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost$137,14 $13,28 $18.000
4.7.3 Prospecting Plan
Whenever a new customers stays at our hotel we need to be able to determine whether it is for leisure or
business. If it is for business -- we need to make sure to get the customers business name and address so that
we can send a corporate packet to the company letting them know about corporate pricing and special
business amenities.
5.0 Financials
Our annual marketing budget is $100,000. Sales are anticipated to achieve revenue of $1,172,925. Our
marketing expenses will equate to approximately 8.5% of the overall revenue.
5.1 Break-even Analysis
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Sales ForecastFY 2006
FY 2007FY 2008
Unit Sales
Corporate Single1.9252.1182.118
Corporate Double3.6654.0324.032
Corporate Deluxe2.6952.9652.965
Corporate Suite
268294294
Total Unit Sales8.5539.4099.408
Unit PricesFY 2006FY 2007FY 2008
Corporate Single$95,00$95,00$99,00
Corporate Double
$125,00$125,00$135,00
Corporate Deluxe$175,00$175,00$195,00
Corporate Suite$225,00$225,00$240,00
Sales
Corporate Single$182.875$201.210$209.633
Corporate Double$458.125$504.000$544.253
Corporate Deluxe$471.625$518.875$578.175
Corporate Suite$60.300$66.150
$70.560Total Sales
$1.172.925$1.290.235$1.402.620
Direct Unit CostsFY 2006FY 2007FY 2008
Corporate Single$7,86
$11,00$11,00
Cor orate Double
Riverview Hotel
Break-even Analysis
Monthly break-even point
Break-even point = where line intersects with 0
5.2 Sales Forecast
Room revenue for this year is based on an average growth rate of 10%. This is based on the number of
pre-contracted corporate rooms, and an anticipated return to business levels projected.
Table: Sales Forecast
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f464
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,$13,50
Corporate Deluxe$17,50$18,50$18,50
Corporate Suite$0,84$0,00$0,00
Direct Cost of Sales
Corporate Single $15.138$23.298$23.293
Corporate Double$51.033$54.432$54.425
Corporate Deluxe$47.163$54.853$54.853
Corporate Suite$225
$0$0
Subtotal Direct Cost of Sales$113.558$132.583$132.570
Marketing Expense BudgetFY 2006FY 2007
FY 2008Print Advertising
$10.600$11.600
$12.826Internet Advertising
$21.000$23.100
$25.410Public Relations
$6.000$6.600
$7.260Other
$21.000$23.100
$25.410
-----------?-----------?
-----------?Total Sales and Marketing Expenses
$58.600
$64.400 $70.906Percent of Sales
5,00%4,99%
5,06%
Riverview Hotel
Sales Monthly
5.3ExpenseForecast
Marketing expenses are projected to be approximately 8.5% of overall annual revenue. The breakdown
of expenditures is as follows:
Table: Marketing Expense Budget
$6000,0 $5000,0 $4000,0 $3000,0 $2000,0
$1000,0 $,0
Monthly Expense Budget
Print Advertising Internet Advertising
Public Relations Other
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
465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030382c20616c6c207269676874732072657365727665642e0058595a2000
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5.4 Linking Expenses to Strategy and Tactics
Our marketing expense is structured to reflect the corporate strategy differentiation. Quarterly travel
trade publications and interim monthly press ads communicate our message to key corporate clients in
one of our most significant target markets. Monthly Internet advertising expenses include banner ads,
and strategic links with car hire, airline and destination management companies' websites to drive
business to the hotel. Direct mail activity builds our targeted customer database, not only in terms ofimproving the quality of the data we currently hold, but on increasing the size of the database with
prospective customer information. Public relations expenses cover PR events, participation at local
functions and sponsorship funds. Overall, the percentage of total revenue required to support the
marketing expense is considered a moderate amount.
Sales vs. Expenses Monthly
5.5 Contribution Margin
Contribution margins should increase due to:C
Differentiation/focus strategy increases ability to specialize.DMaintenance of expenses within specified levels.MIncreased efficiency in capacity utilization.IEconomies of scale due to increased purchasing efficiencies.
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Riverview Hotel
Table: Contribution Margin
Contribution MarginFY 2006 FY 2007 FY 2008
Sales $1.172.925 $1.290.235 $1.402.620
Direct Cost of Sales $113.558 $132.583 $132.570 Other Costs of Sales $0 $0 $0
Total Cost of Sales $113.558 $132.583 $132.570
Gross Margin $1.059.368 $1.157.653 $1.270.050 Gross Margin % 90,32% 89,72% 90,55%
Marketing Expense Budget FY 2006 FY 2007 FY 2008 Print Advertising $10.600 $11.600 $12.826 Internet Advertising $21.000 $23.100 $25.410Public Relations $6.000 $6.600 $7.260 Other $21.000 $23.100 $25.410
Total Sales and Marketing Expenses $58.600 $64.400 $70.906 Percent of Sales 5,00% 4,99% 5,06%
Contribution Margin $1.000.768 $1.093.253 $1.199.144 Contribution Margin / Sales 85,32% 84,73% 85,49%
Contribution Margin Monthly
6.0 Controls
Our marketing plan is structured to enable us to achieve the strategic goals we have set for ourselves,
in terms of increasing overall revenue as a result of differentiating our products and services from the
competition.
Our marketing team will
ensure that the plan is
implemented to the best of
their ability and with the
highest levels of efficiencyand accuracy.
ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d53465400000000465343004c4c20330000000000000000000000000000f6d5000100000000d32b4b4f444100000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
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Sales Forecast???
???????????????????????????????????
Unit Sales
Corporate Single0%
180175175160150175175125100160175
175Corporate Double
0%280260375300280375
6.1 Implementation
All figures will be monitored on an ongoing basis in relation to projections versus actuals, and the
ongoing plan will be altered or manipulated as necessary in order to react to and, wherever possible,
anticipate external changes to the environment.
Annual results will be evaluated at the Region General Manager's meeting where the structure ofthe plan for the approaching year will also be established.
6.2 Keys to Success6
Continue to develop ongoing relationships with frequent and new guests.CContinue to develop and implement a strong communications plan in both national and international markets.CLeverage our strength in the local market as a member of the community by supporting local events.LIdentify new markets for our services such as University-based target groups.IContinue ongoing staff training and skill development to ensure the highest standards of service.
6.3 Contingency Planning
Contingency plans have been made for the following unexpected developments:C
A slower recovery from the recession than public opinion: this has been reflected in the moderate increase inlevels of corporate business expected.lThe entry into the market of a competitively aligned hotel: differentiation would continue to be the strategicapproach with the development of added value and benefits to leverage long standing relationships and repeatbusiness based on familiarity and personal attention to detail.
6.4 Marketing Organization
Our marketing director, Geoff Watkins, leads our PR and marketing team of four in all advertising,promotional and public relations related activities. Geoff works closely with the members of the team,
to implement and monitor the effectiveness of the marketing plan and evaluate results.
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300375
280Corporate Deluxe
0%260240250225200250220225175225200
225Corporate Suite
0%105
45155
7560153
155
15Total Unit Sales
730680845700
635875815645478700755
695Unit Prices
???????????????????????????????????
???Corporate Single
$95,00$95,00$95,00$95,00$95,00$95,00$95,00$95,00$95,00$95,00$95,00
$95,00Corporate Double
$125,00$125,00$125,00$125,00$125,00$125,00$125,00$125,00$125,00$125,00$125,00
$125,00Corporate Deluxe
$175,00$175,00$175,00
$175,00$175,00$175,00$175,00$175,00$175,00$175,00$175,00
$175,00Corporate Suite
$225,00$225,00$225,00$225,00$225,00
Marketing Expense Budget???
????????????????????????????????
???Print Advertising
$2.000$400$400
$2.000
$300$300
$2.000$300$300
$2.000$300
$300Internet Advertising
$1.750$1.750$1.750$1.750$1.750$1.750$1.7501.750
Appendix
Appendix Table: Sales Forecast
Page 25
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$225,00$225,00$225,00$225,00
$225,00
$1.750$1.750
Public Relations$500
$500$500$500$500$500$500$500$500$500$500
$500Other
$1.750$1.750$1.750
$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750
$1.750
-----------?-----------?-----------?-----------?-----------?-----------?-----------?-----------?
-----------?-----------?-----------?
-----------?Total Sales and Marketing Expenses
$6.000$4.400$4.400$6.000$4.300$4.300$6.000$4.300$4.300$6.000$4.300
$4.300Percent of Sales
6,01%4,77%
3,75%6,29%5,04%3,46%5,28%4,80%6,53%6,29%4,32%
4,56%
Contribution Margin???
???
????????????????????????????????
Sales$99.850
$92.250$117.375$95.450$85.375
$124.125$113.625$89.625$65.800
$95.450$99.625
$94.375Direct Cost of Sales
$9.985$9.113$9.150$9.208$8.425$9.150
$10.013$11.145$6.513
$11.908$9.850
$9.100Other Costs of Sales
$0$0
$0$0$0$0$0$0$0$0$0
$0
-----------?-----------?-----------?-----------?-----------?
Appendix
Appendix Table: Marketing Expense Budget
Page 26
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----------------------?-----------?-----------?
-----------?Total Cost of Sales
$9.985$9.113$9.150$9.208$8.425$9.150
$10.013$11.145$6.513
$11.908$9.850
$9.100Gross Margin
$89.865$83.138$108.225$86.243$76.950
$114.975$103.613$78.480$59.288$83.543$89.775
$85.275Gross Margin %
90,00%90,12%92,20%90,35%90,13%92,63%91,19%
87,56%90,10%87,52%90,11%
90,36%Marketing Expense Budget
???????????????????????????????????
???Print Advertising
$2.000$400$400
$2.000$300$300
$2.000$300$300
$2.000$300
$300Internet Advertising
$1.750$1.750$1.750$1.750$1.750$1.750$1.750
$1.750$1.750$1.750$1.750
$1.750Public Relations
$500$500$500$500$500$500$500$500$500$500$500
$500Other
$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750
$1.750
Appendix
Appendix Table: Contribution Margin
Page 27
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1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.2 The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2.4 Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3 The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3.2 Service Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3.3 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3.4 SWOT Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3.4. Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.4. Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.4. Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.4. Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.3.5 Historical Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.4 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.4.1 Direct Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.4.2 Indirect Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.2 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.4 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.5 Target Market Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.6 Messaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.6.1 Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.7 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.0 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.1 Product Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.2 Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.3 Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.3.1 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.3.2 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.3.3 Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4.4 Web Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.4.1 Website Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164.4.2 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164.4.3 Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
4.5 Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.6 Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174.7 Sales Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.7.1 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184.7.2 Sales Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184.7.3 Prospecting Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
5.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
5.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215.4 Linking Expenses to Strategy and Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . 225.5 Contribution Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
6.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
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6.2 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246.4 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
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April 2005
This sample marketing plan has been made available
to users ofMarketing Plan Pro, marketing planning
software published by Palo Alto Software. Names,
locations and numbers may have been changed, and
substantial portions of text may have been omitted
from the original plan to preserve confidentiality
and proprietary information.
You are welcome to use this plan as a starting
point to create your own, but you do not have
permission to reproduce, publish, distribute or
even copy this plan as it exists here.
Requests for reprints, academic use, and
other dissemination of this sample plan should be emailed to the marketing department of Palo Alto
Software at [email protected]. For product information visit our Website: www.paloalto.com or
call: 1-800-229-7526.
Copyright Palo Alto Software, Inc., 1998-2006
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Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _______________ in this marketing
plan is confidential; therefore, reader agrees not to disclose it without the express written permission of
_______________.
It is acknowledged by reader that information to be furnished in this marketing plan is in all respects
confidential in nature, other than information which is in the public domain through other means and that
any disclosure or use of same by reader, may cause serious harm or damage to _______________.
Upon request, this document is to be immediately returned to _______________.
Signature
Name (typed or printed)
Date
This is a marketing plan. It does not imply an offering of securities.