What is marketing plan give 2 example?

The purpose of creating a marketing plan is to clearly show what steps will be
undertaken to achieve the business' marketing objectives.
While some small business owners include their marketing plan as part of their overall
business plan, if a business owner follows the recommended SBA format, parts of the
marketing plan will be included in the various areas of the business plan. As an
alternative, the marketing plan may be attached in its entirety as an appendix to a
business plan.
Example 1:
SITUATION ANALYSIS
General's core business is industrial timing devices and consumer clocks, based on skills
in manufacturing high quality timing movements and plastic casings. This market plan
is based on providing consumers with a high quality, innovative watch. It will be
offered in a variety of styles for both men and women. The casing and movement has
other potential applications not discussed in this plan.
Our 1995 profits of 30 million dollars represent 7.5 percent of total sales. Sales growth
has slowed to a current level of 5 percent annually. Growth in current markets is
expected to be limited. The Spree watch is one of several projects with the potential to
improve General's growth rate.
Market Analysis
The Spree watch will compete directly with several other branded fashion watches. The
market size for branded fashion watches is forecast to be $524 million retail dollars in
1998, growing to $721 million by 2002. Annual market growth is expected to exceed
six percent through 2002, exceeding our current annual sales growth.
Market Segments
Table 1: Market Segments by Age
AGE

PERCENT
OF
WATCH
BUYERS

PERCENT OF
POPULATION
OVER 17

RELATIVE
PURCHASE
INDEX

1824

19%

13%

1.46

2534

33

19

1.74

3554

35

40

0.88

Those under 35 years of age

purchase slightly over 50 percent
of all branded fashion watches as
shown in the Table 1. The highest purchase prevalence is those from 25 to 34 who
purchase 74 percent more watches per capita than those the average consumer. Purchase
behavior is expected to differ among age segments and by gender. Young females [1824 years of age] are expected to be intense purchasers. This group is likely to be very
styling conscious. Women in the 25 to 34 age group will be our second significant
segment, expected to buy more watches than any other age-sex segment.
55+

13

29

0.45

Consumer purchases of branded fashion watches also vary by region as shown in Table
2. An index of relative watch sales by regions shows that sales are above average in the
east north central, west north central, north central, and midatlantic states. Product
introduction is likely to be more successful in the states in these regions.
Table 2: Watch Sales by Region
Consumer Behavior
Swatch has changed watch buying habits by encouraging ownership of multiple lowpriced, carefully designed branded fashion watches. Brand switching and
experimentation by consumers is easy for low priced watches, assuming availability.
Consumers are very design oriented when buying branded fashion watches. Watch
attributes that we consider most important include watch and band design, packaging,
price, and durability. Distribution and display are very important in this market and can
encourage impulse purchases for both personal use and as gifts.
Consumers are reached through five types of outlets... We currently have access to four
of these channels, representing 75 percent of watch sales. Channel development is
necessary to reach the total watch market. A majority of branded fashion watches are
currently purchased at department stores. We will take advantage of our strong
distribution through department, discount, and drug stores to assure widespread
availability of Spree watches. Jewelry store channel development will be deferred until
we are established in our traditional retail channels.
Competitive Analysis
Although there are fourteen competitors in this market, there is substantial
concentration. Swatch, Fossil, Guess?, and Anne Kline are strong competitors, holding
70 percent of the market. Swatch and Fossil have strong manufacturing and distribution
skills, while Guess? and Anne Kline have less extensive distribution networks but
strong name recognition in fashion. Fossil and Swatch are strong at the lower price
lines. Branded fashion watches are a relatively new product category. Although
pioneered by Swatch, there is considerable opportunity for new entrants as
demonstrated by Fossil and Guess?.
Company Analysis
General currently distributes products through channels accounting for 75 percent of
watch sales. Branded fashion watch sales are growing faster than our current product

lines. Our innovative product, product design skills, strong manufacturing skills, and
experience in distributing consumer clocks provide an opportunity for entry and growth
in this market.
OBJECTIVES

Market share of three percent of the branded fashion watch market in the first
year [sales of over 8 million dollars].
Project break-even

SWOT Analysis
Strengths

Innovative production methods provides the potential for new designs

Experience in distribution channels for timepieces

Weaknesses

No experience in distribution to jewelry stores

No experience in marketing fashion products

Opportunities

Large market

Market growing faster than our current sales

Consumer demand for fashion goods creates a demand for innovative

products

Threats

Strong competition with concentrated market shares

Possibility of new market entries

MARKETING STRATEGIES
General will introduce a new product, the innovative Spree watch, using penetration
pricing, extensive advertising, and expanded distribution in order to increase our
revenues and growth rate.

ACTION PLAN
Product
We will introduce between 30 to 40 different designs in the first year. One quarter of
these will have a "metal" case, copying many of the traditional and modern metal
designs. These are targeted at consumers 25 and over. We will design a series including
licensed characters and unusual shapes for the market segment under 24 years of age.
Swatch does not have exclusive licensing for Disney and Warner Brothers characters or
Coke. By using these and others we will have a variety of product and character designs
in our line. The most unusual aspect of our line will be some very unusual shapes.
Several of these will be geometric; hexagon, trapezoid, oval, and diamond. For younger
ages our technology allows the design of watches in the shapes of cartoon character
faces.
Price
The Spree watch will be sold for a suggested retail price of $45. We believe that we
have product quality and feature advantages, encouraging the use of a price slightly
exceeding Swatch. This pricing strategy, coupled with our efficient production methods,
aids in achieving our relatively high market share for a new product entry.
Distribution
We will introduce Spree in the northeast but within the first year sell to the national
market. With our current strong distribution channels nationwide covering 75 percent of
watch sales; we will limit our potential if we restrict our distribution to specific regional
markets. Although we do not currently have jewelry stores, our distribution will place
watches in at least 75 percent of locations in the United States. We will use current
normal distributor markups.
Promotion
Five new sales representatives will be added to assist in the development of new
distribution outlets. A sales trainer will be hired to train the sales force in the new
product. This will be within our $500,000 sales support budget based on an average
salary and benefits cost of $100,000 for each position.
The advertising level for the four leading firms can be compared by determining the
ratio of voice share (% of total advertising dollars of $20 million) divided by the
market share as shown in Table 3. Consumers will not know our brand; therefore, we
will have to advertise more aggressively to achieve brand awareness. Although our
market share goal in 1998 is three percent, we will set advertising at one million dollars.
This will achieve an advertising voice/market index considerably higher than our
competition.

Table 3: Fashion Watch Advertising and Voice

COMPANY

MARKET
SHARE

VOICE
SHARE

VOICE/

ADVERTISING

MARKET

MILLION $

SWATCH

20%

28%

1.4

5.5

FOSSIL

20%

24%

1.2

4.8

GUESS?

20%

21%

1.05

4.2

ANNE
KLINE

13%

13%

1.9

2.5

SPREE
PLAN

3%

5%
[assumes
same level
of
total
advertising
as
last
year]

5.0

1.0

Media will be targeted to our major market segments; women between 18 and 24 and
between 25 and 34. Smaller amounts will be directed to other segments.
FINANCIAL ANALYSIS AND EXPECTED RESULTS
As shown in Tables 1 and 2 of the financial appendix, we expect to achieve a market
share of three percent and sales of $8.5 million in the first year. The Spree watch project
will break-even in the first year. We do not expect any watch technology breakthroughs
during this period. Competition is expected to be based on design, price, and achieving
widespread distribution, areas in which we expect to be very competitive.
In conclusion, we will invest one million dollars in the Spree watch project. We can
achieve sufficient market share to achieve our financial and marketing objectives.
During the next five years the market is expected to grow and our costs are expected to
decline with experience increasing unit contribution. Our greatest challenge will be
tracking the market's tastes in watch design and meeting and leading these with creative
and innovative designs.
CONTINGENCY PLANS
Table 4: Impact of Advertising Levels on Financial Results
TOTAL AD BREAK
NET
BUDGET
EVEN YEAR PRESENT
VALUE IN
MIL. $

It is not expected that there will be

increased price competition due to the
entry of the Spree watch. Increased
advertising, however, might lead to an
increase in industry advertising. A
sensitivity analysis of the effect of
increased advertising on our break-even year and cumulative profits appears in Table 4.
Increases in advertising in steps of an additional $500,000 dollars up to $4 million,
assuming no additional gains in market share, have fairly limited effect on our
performance. Therefore, in the event that there is increased industry advertising, we are
prepared to increase our advertising by as much as $1,500,000 annually. Our increase
advertising also will allow us to react to lower than expected consumer awareness,
fewer distribution outlets than planned, or less than expected consumer acceptance of
Spree watch.
$2,500,000
3,000,000
3,500,000
4,000,000

1998
1999
1999
1999

$35.8
34.0
30.4
28.6

Example 2:
Marketing Plan-PEPSI
PEPSI has been the market leader in cola industry in Pakistan, here their business
strategy is low cost leadership, below presented marketing plan is made keeping in
mind the business strategy.
Company Analysis
PEPSI has been the market leader in beverage industry in Pakistan; it has gained this
position by leveraging first movers advantage and then maintained this position with its
aggressive marketing and channel management techniques. Its strengths are a well
established brand name, a well managed distribution channel, and strong financial
backing. Its weakness are inability to cope with local beverage producers as they take
them lightly and now they are becoming a threat, more over cokes aggressive
marketing is also a threat to PEPSI.
Industry Analysis
Beverage industry in Pakistan has been a highly competitive industry since the
emergence of other player like Coke and some local manufacturers. With almost zero
switching cost, relatively very low differentiation in taste and wide variety of available
substitutes makes the cola customer very difficult to make brand loyal. Increasing
advertising and operational cost along with every day increasing power of retailer
making the competition more intense where price and brand is not the only factor which
can give them the success. Now the power rests with customer and retailer as there are
many substitutes available to cola drink, not only direct substitutes but also indirect
substitutes are also available when come to satisfaction of thrust.
Customer Analysis
Since company has been on mass marketing strategy then everybody is a prospect
customer, everybody who gets thirsty is a customer of PEPSI, cola drinks are kind of
product which is presented with food and to guests, so the main purpose is not

satisfying the thrust but having a little bit more luxury in drinking. Keeping this thing in
mind we come to know that cola customer will be using this product on some special
occasions like family get together, or having food or presenting it to guests. So at while
drinks are not presented in original bottle customer will be less brand concisions.
Pakistani market is always been price sensitive, so is the case with cola. However it is
highly affected by the availability factor.
Competitor Analysis
This is highly competitive market, with more substitutes and zero switching costs.
During the last decade Coke has been a tough competitor for PEPSI, with its aggressive
marketing campaigns, increasing and aggressive channel of distribution and a good
positioning coke is emerging a well established widely accepted and preferred brand
especially in metropolitan cities. Another emerging competitor is a local producer which
is not really a major threat for PEPSI but yes it has all the capabilities required to
become and major competitor, its brand name is Gourmet Cola, a private brand of a
local bakery chain, this chain is getting being widely accepted in metropolitan and its
growing like anything

Segment Selections
Apparently there are not much difference in the customer of cola, the same taste is
accepted everywhere in the some variation, there is a minor segment which is diet
conscious and want a zero calorie cola drink. If we talk about the segment selection then
company should go for and its has been going for mass marking, standard marketing
mix for everyone, for diet conscious customers diet Pepsi should be introduced. Right
now we shall be talking about standard cola drink and its marketing.
Marketing Mix
Product
The product is a standard cola drink, that satisfies the need of thrust and more it works a
drink to be presented with the food and on get together occasions. It is positioned as a
drink which relates to personal achievement, its focus will be I being the personal
achievement. It will be positioned as drink of youth, the drink of successful youth. The
element of excitement and emotions will be included in the positioning. It will be
presented in various packaging, for example pet bottle, half letter, one litter and 2.5
litters, this packing variation will increase and help its use on various occasions.
Price
Since it has been a high price competitive industry, price of PEPSI will be kept at par of
the industry, some discounts will be introduced in the bulk buying and on one litter and
more packaging. Since colas are affected with the push of retailer, good dealer and
retailer margins will be given to retailer and distributer, so that they can make sure the

availability and push the product, since brand loyal is low in this product, retailer push
is always required and helpful in getting the desired results.
Channel of Distribution
This part is one of the most important parts of the entire marketing plan. Here in
Pakistan retailer has the power in the channel more than any other industry, colas has
more substitutes, low brand loyalty and zero switching cost, customer will drink
whatever cola brand is available on the retail shop, that scenario gives more power to
retailer. So we shall be focusing in the improving our strength in retail channel, building
the relationships with retailers, making sure the availability and leveraging the
exclusivity on retail shops, and giving them more commission so that they can maintain
the exclusivity and push the product to customer, once retailer push and exclusivity is
achieved there will be no problem with customer to buy the product.
Promotion
This is another high importance component of marketing plan; more focus will be given
on this part as well. PEPSI will focus on building brand and up to some extent brand
loyalty among youth by focusing on its positioning and also by maintaining brand
recall. More sales promotions will be offered during local occasions like EID etc.
followed and good spend on the media especially during the promotional period.
Mitigation Strategy
There are few elements in plan that are of high risk, one the positioning factor that
needs to be handled in a careful manner, the individual success positioning can turn
back, on the other hand Cokes positioning is we the family and get together, if
positioning can is not handled properly its can be a disaster. The second risky elements
is the increasing power of retailers, we are at the same time exploiting the retailer power
but on the other hand giving more power to them by adopting push strategy, if more and
more power is given to retailer then in the end they will be able to blackmail us on their
own conditions. To handle this risk brand should be build so strong that it can generate
pull.
Plans Relation with Strategic Objective
Business strategy is cost leadership, since PEPSI is a market leader is has to maintain its
position and at the same time they want to reduce costs. Now if we look at the
marketing plan it focuses on the push strategy, building relationships with retailers,
giving them incentives for push and winning exclusivity on the retail out lets, if this
plan is executed well we can reduce out marketing cost without compromising or even
increasing on sales and market share. This plan also suggest that PEPSI should get
exclusivity on the large cash and carry retail stores like, METRO, MACRO & Hyperstar
where customers buy in large quantities, if they are able to do so their marketing cost
will decrease and sales will increase noticeably. One can argue that plan also supports
the brand building which is an expensive thing to do, I would answer that brand
building and getting mindshare is something unavoidable, this is not a luxury spending
of marketing budgets but it is in return creates the pull for the brand and pays in the
longer run.

PepsiCo SWOT analysis 2013

Strengths
1. Product diversity
2. Extensive distribution channel
3. Corporate Social Responsibility
(CSR) projects
4. Competency in mergers and
acquisitions
5. 22 brands earning more than $1
billion a year
6. Successful marketing and
advertising campaigns
7. Complementary product sales
8. Proactive and progressive

Weaknesses
1. Over-dependence on Wal-Mart
2. Low pricing
3. Questionable practices (using tap
water but labeling it as mountain
spring water)
4. Much weaker brand awareness
and market share in the world
beverage market compared to
Coca-Cola
5. Too low net profit margin

Opportunities
1. Growing beverages and snacks 1.
consumption in emerging markets 2.
(especially BRIC)
3.
2. Increasing demand for healthy food4.
and beverages
3. Further expansion through
acquisitions
5.
4. Bottled water consumption growth 6.
5. Savory snacks consumption growth

Threats
Changes in consumer tastes
Water scarcity
Decreasing gross profit margin
Legal requirements to disclose
negative information on product
labels
Strong dollar
Increased competition from
Snyders

2. - List 3 objective of your marketing plan.

Gain a competitive advantage

Win more customers
Achieve through a better picture of a good marketing strategy

3. - Which are the marketing plan components.

Marketing research
Target Market
Product
Competition
Mission Statement
Market strategies
Pricing, positioning and branding
Budget
Marketing goals
Monitors your results

4. - How you can describe the target market.

The target market is the group of people to which this led the product or service you
offer an example: the target market of naval club are just people from the armed forces.
5.-Describe the competition of you company.
The competition of my company is Yath club is people that belong to armed forces to
offer the same service, events bad is more expensive for the location of the place and
infrastructure.
6. - whats the SWOT analysis.
The point of a SWOT analysis is to help you develop a strong business strategy by
making sure youve considered all of your businesss strengths and weaknesses, as well
as the opportunities and threats it faces in the marketplace.
Strengths and weaknesses are internal to the company (think: reputation, patents,
location). You can change them over time but not without some work. Opportunities
and threats are external (think: suppliers, competitors, prices)they are out there in the
market, happening whether you like it or not.
Bibliography:
http://home.ubalt.edu/ntsbpitt/SpreeMPE.htm
http://www.ukessays.com/essays/marketing/pepsi-marketing-plan-and-businessstrategy-marketing-essay.php
http://www.strategicmanagementinsight.com/swot-analyses/pepsico-swot-analysis.html
http://marketsmarts.co.nz/business-touch-points/marketsmarts/10-components-for-agood-marketing-plan-2
http://articles.bplans.com/how-to-perform-swot-analysis/

UNIVERSITY OF GUAYAQUIL

STUDENT:
IRINA ESTEFANIA CONTRERAS BELTRAN

SUBJECT:
ESTRATEGIC MARKETING

TEACHER:
JAIME ORTEGA

COURSE:
8/12