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Strategic Marketing Plan

for

The XYZ product line

January 1 2004 –– December 31 2006 Prepared by: Date:

Executive summary

2

Contents Executive summary 2Introduction 4

Situation analysis 5Business definition and scope 5External environment –– remote environment 7 Economic forces Socio – cultural forces Political – legal forces Technological forces Natural environment forces External environment –– near environment 12 Market review Competitive review Distribution channels and buyers (intermediary customers) End user customers Supply Critical success factors 17 Summary of opportunities Summary of threats Situation analysis –– Internal capabilities 18 Non – marketing capabilities Marketing capabilities –– Management Marketing capabilities –– Marketing strategies and performance Problems and opportunities statement 21

Marketing objectives and higher level marketing strategies 22

Marketing mix strategies 23

Budget 25

Implementation plan 26

Evaluation and control processes 27

Appendix 1: Worksheet for developing marketing objectives and higher–– level marketing strategies

28

3

Introduction

4

SITUATION ANALYSIS Business definition and scope

Mission statement(s) Product definition

At the industry level (total of all product categories):

At each product category level

Product categories targeted by our organisation and our products competing in those categories

Product category Competitors’ products

5

Competitors and their products competing in these product categories:

Competitors Competing products

The market/customers (end users) for the product categories targeted by our organisation

6

Scope

7

External environment –– remote environment

Economic forces Scenario

Implications

Opportunities Rating*

Threats Rating*

The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

8

Socio – cultural forces Scenario

Implications Opportunities Rating

* Threats Rating

*

The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

9

Political or legal forces Scenario

Implications Opportunities Rating

* Threats Rating

*

The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

10

Technological forces Scenario

Implications Opportunities Rating

* Threats Rating

* •

•

The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

11

Natural environment forces Scenario

Implications Opportunities Rating

* Threats Rating

* •

•

*The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

12

External environment –– near environment

Market review Description

Implications Opportunities Rating

* Threats Rating

* •

•

The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

13

Competitive review Description

Implications Opportunities Rating

* Threats Rating

* •

•

The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

14

Distribution channels and buyers (intermediary customers) Description

Implications Opportunities Rating

* Threats Rating

* •

•

The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

15

End – user customers Description

Implications Opportunities Rating

* Threats Rating

* •

•

The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

16

Supply Description

Implications Opportunities Rating

* Threats Rating

* •

•

* The rating is based on a double – digit 5 – point scale for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability.

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Critical success factors (CSFs)

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Summary of opportunities Significance of opportunity High Low

High

Probability

of

occurrence

Low

Summary of threats Significance of threat High Low

High

Probability

of

occurrence

Low

19

Situation analysis –– Internal capabilities Non – marketing capabilities (Financial position, management & leadership, HRM, R&D, operations — production capabilities and supply, inter – functional coordination & responsiveness and competitive position)

Review

Implications Strengths Rating Weaknesses Rating

•

•

Note The rating is based on single digit 5 – point scale degree of significance: ‘extremely significant’ (5), ‘quite to highly significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very significant’ (1).

20

Marketing capabilities –– Management (Marketing organisation, market intelligence, marketing planning and marketing control process)

Review

Implications Strengths Rating Weaknesses Rating

•

•

Note The rating is based on single digit 5 – point scale degree of significance: ‘extremely significant’ (5), ‘quite to highly significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very significant’ (1).

21

Marketing capabilities –– Marketing strategies and performance (Marketing strategies and marketing performance)

Review

Implications Strengths Rating Weaknesses Rating

•

•

Note The rating is based on single digit 5 – point scale degree of significance: ‘extremely significant’ (5), ‘quite to highly significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very significant’ (1).

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Problems and opportunities statement 1 The business unit’s capabilities in relation to critical success factors

CSF Our capabilities • • • • • • • • 2 Opportunities for the business unit to exploit with existing capabilities 3 Opportunities for the business unit to exploit with improved capabilities 4 Threats that must be addressed

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Marketing objectives and higher – level marketing strategies

Marketing objectives Year 1 Year 2 Year 3

Revenue Objectives

$ $ $

Gross profit margin

% % %

Net profit margin

% % %

Product – market strategies Existing products in existing markets (market penetration) Existing products in new markets (market development) New products in existing markets (NPD) New products in new market segments (related diversification)

Total

______________ ______________ ______________ ______________ ______________

______________ ______________ ______________ ______________ ______________

______________ ______________ ______________ ______________ ______________

Rationale

24

Marketing mix strategies Summary Market segment 1 Market segment 2 Market segment 3

Segment description

Segment description

Segment description

Products/brands serving this segment

Products/brands serving this segment

Products/brands serving this segment

Product/Brand positioning

Brand positioning

Brand positioning

Product strategy

Product strategy

Product strategy

Pricing strategy

Pricing strategy

Pricing strategy

Distribution strategy

Distribution strategy

Distribution strategy

IMC strategy*

IMC strategy*

IMC strategy*

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Marketing mix

strategies for segment

* Integrated marketing communication (IMC) strategies include advertising, sales promotion, sales force, marketing PR, database marketing and event marketing

Segment description

Products/brands servicing this segment

Product/brand positioning

Proposed marketing mix strategies

26

Budget

27

Implementation plan

What Who When

28

Evaluation and control processes What is to be measured?

How it is to be measured?

Data source When it is to be measured?

29

Appendix 1: Worksheet for developing marketing objectives and

higher – level marketing strategies Strategic gap analysis

At end of planning periods Year 1 Year 2 Year 3

Corporate revenue objectives _______ _______ _______ Projected revenue from current strategies: _______ _______ _______ Revenue gap: ______ ______ ______\

Competitive position Marketing objectives

PLC [___________________] __________________________

BCG [___________________] __________________________

GE/McKinsey [___________________] __________________________

Porter CA strategy [___________________] __________________________

Summary of current competitive position Describe our current competitive position

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What should our competitive position be in 3 years time?

What are the strategic implications in terms of our existing and potential new products and markets? That is, how will we grow the business? Estimated revenue from existing products in existing markets (market penetration) Market size (Value): Current size: $________________ Market projections Year 1 Year 2 Year 3 ____________ ____________ ____________ Current market share: ________ Projected market share Year 1 Year 2 Year 3 (via new strategies)

____________ ____________ ____________ Estimated value of existing products in existing markets: (Market projection x Market share) Year 1 Year 2 Year 3

____________ ____________ ____________

Estimated potential revenue from existing products in new markets (market development)* Year 1 Year 2 Year 3

____________ ____________ ____________ * Identify the specific market development opportunities and the time frame when these initiatives could come on stream

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Estimated potential revenue from new products in existing markets (new product development)* Year 1 Year 2 Year 3

____________ ____________ ____________ * Identify the specific NPD opportunities and the time frame when these initiatives could come on stream

Estimated potential revenue from new products in new market segments (related diversification)* Year 1 Year 2 Year 3

____________ ____________ ____________ * Identify the specific NPD opportunities and the time frame when these initiatives could come on stream

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