A-1

ilev e[sping

frffi Hffiectlve

pt

the questions addressr(l by a:itiii'ri*i:iiri i:i;::,-i-a detaiIed res0urr.es and artions needed to achieve statecJ rnarketing
i ';iiii:t:i:i: i:ii.,,.-.:.i:,.-.- llii. 1,-lt'C!( e:j'. Of atil-if-i;iatifrq L.Vt.:'l\ts , , rrtr(l 1, i iilitr,l lti r\i'' ,i iiiiti r ,-iil i ',-'.1 .i(.i-ti["'t: it'i Crl-Car]iZtitiunal Slljelr-tii.'eS
,'
r ll

.r-il.i f kr=t i

*g

i=

i,+si

Detailed description of the

resources and actions needed

,i

t,

,' ',

to aclrieve stated marketinct

objectives,

si

i:iit'giq. *i:i+gti${

Process of anticipating events anci market conditions and

der.iding hor,v a fjrrn can best

achie've its organizational

objectives.

f;NMPNNHNTS ffiF fi H}LJffiINHSS PLFIN

r\ .t'rrrP.rrr\''s I;r",irrr

",, 1ir:ri is orrc oi ils lrrost irl|ortrrrr{ ,l,,tr.lrlrcnts. l lrt: business platr Puts irt rvriting rvlrlrt ,tll ol tllq',-,,"r',''rrrs olrjr:r'titr',,.rr,r. lr.rrr tlrc'l'iiiil br rnt:t, h,iu'the business..vili obtain irinancirrg..rrrtl lt,rl'nrrrclr nl()il(\r tlic,,'rnqran','(trI)cLl\ to (r:rnr ovc'r a sPeciliccl tirne period. Althtltigh busitttss pl;trrs vrtty in l,:nllt ir ,rrrrl firrrrr,rr. rrro-ct r orrlrrirr ;r( k:;rrt surrrc liirttt ol: tlre lilllou,ing corlrp()nenrs: ' i\tt r:.,'r tttit,( ,uttttn,lry ' h (otilf)(titit'( tt)till.vsi\ " Iht tttitirtu
\(rr{{

i:r: s: Iil-.s * i! i ir-i!

Forrrral document that r-rutlirtes tvhat a cornpany
s

objectives are, how they will be met, horr.l the business wiii
erbtain financinq, and how

lrricl)r inrs\^/(-ts rh,:. rt'i,,,, t,'/t,ti, u,lttn, tt,lsrrt. how, 'rttil ilil,clttestions tor tlr,. pl,rrr. i\ltlr,'rrrllr tlic srrrrrrr,rrr irpl)i ilrs r'rrriv in tlrc 1.ll,rtr. ir rr'picall| is u,ritten lasr, ;rticl thc litttti r'rtt.ttril,, lr,,r','*'tl.r'ti,,rrr ilr. ,lct,iils r'tf rtll tirr rrtlt,rt s,:ttiotts.
srrt tion li'rus, s ,rtt tltc i'ir,,'iroltttttltt itt rvlriclr tlre nurrkL'tirrg irl:rn is to be irrrPl<'rncrrtctl. Alrlrorrg.lr rlrir scr'tiorr is rrr,rrc rlrrscly essociatcd rlidr tl're comfrlchensi,,'c. btrsinrss 1rl:rrr, f;r, t(!r\ \l)c( ilir:rily irriltrcri,.itri; rri,rrl,.ctitt1l ur,. lili.'11 r.o bi: irrcltrclccl hclt:.

much nroney tlre conrparry expects to earr't,

\lttlt'iii('itl. silntnrilriir.

iltr

rr('nt Provi,l, . tlrt ltrrrrril:rii,'rr ,rrr ri.lri,,'lr lirrrh,:t trlrrrtritrg

1

oril,;r-trtrittiriirs irrl'l)osc, r'isjotr, ;rtrti ,,'"ciliii g':,ltis I ltt,s

is Lrasccl,
t

"

I [1i'r)\'('r.rli Ilrrsin(s(: Pl:rn ,ntltt,lt',,,,i sr-'rrr-s ril lrrr i. lr lr liu)r tirltr;tl :lt'(';l (,f'rlr(" r'nti'r'1rri,-,,.: I li,

,llr

rts

hlt

i.rt tr.r(.ti

r g,)als itlltI

st

l.atcgics

iclr tclc r lrr:

ti,ll, rr,*,i n gl:

lr, nrt I /',;t'l i u,(,,,tti'tt il. u'[ri,. lr,.i,,( lt. r:, to,ls ;lttt l ,r t vit r s olli'n'rl It'l,tt iun',lti1',','\i tlit,'lr,l ol rlri.,
I
I

;t\ su,ltcHics irlr

itrfot'nring, potcrrtial cLrsrorr)ers abe111 clcve [opirru lt'trrg rcirnt nlar[(cling pIarr itrr ]llr.rt' Sk1' (,lorhing

is 1rr('\('tlIi't|.

A-2

Appendix A

,.

'l1t<:

.[itt,ttu'iug 1tl,n, rvhich plesents a lealiscic approach fbr securing neederl func{s and nrrnagin[ clcbt irnd c,ash l]ows. /,rudut'tiort plitn, rvhich describes how the organization rnosr cf{icierrt, cost-e f}'ective ntanner possiblc,

.,'llrc
"A torporaIion is a livirrr;

wi[

tlevelop its products in the

orq;rrtisnt; if lr,ls to cor.ttinutl

1o

sltt'd its skin lr4r:tlrotl:i lrave [n cltanqe

Fo':1r.,

,, 'l1rc,/adlitics phn. which.descr:ibes the physical environment and equiprnent required to

iniplcrrrcnr t he pr:odrrction plan.

h.li lri rlrarrr;r'

Valrres lr,tvo to slrrrr tot,rl

rttanr;r
r

llrr:
ir,

cf tlrosrt

lranqes;

"'lhe

Iransfor lnatiolr,"

--Andy
,
r,

Grove
!( lt
l,

rcloilrces plan, which estitnate.s thc firm's emplo.vment neecls artl the skills to uclricve olsatriz.ation:rl goals, inch-rding a conrp:rrison of current ernployees u'ith thc trcccls- ri{: the firtn, anc{ which estahlishes processes fol secrrring aciequately trained pt:rsoirrrcl if a elp c'xists beF,r'ecn current enrployee skill,s and future neecls.

ltuttan

n('Lcssiu),

lt

litti(

'ullttl,.)t;il, Ittli l,

t lt'tlttll:)]t

i-r'i,.:l

'l'lris lrrrsic firrrrrar cr]c()rlrpasses the plannirrg process used b1'nearlv even' sriccessfirl rrrganization. Wlrctlrcr:r crrnJ:rrrrrl'ol)crares iu the nranu[acttrring, u'[rolesaling, retailins. or service secrorr---or ir (-()r)rl)irr;rtio,,-',1rh,,.,,,r,1r.,,r.n,, dc.scriherrl h.r..,"= iikely to in its overall business plan. "jir.*, l{,r11ardlcss of thc siz.r'or lontlevityof a conrpanv, a brrsiness plan is an cssential tool fbr a fllnr's ou,ncr\[)c(:rusrir lrclpsttrcrnfbcu.sonthe kevelenrentsofthcirbrLsiness.Evensmall firnrs juststarting ,'rrt trcc.l a lrrrsincss plan to otrtain flnancing. iligure A. 1 shorvs the outline of a btrsiness plan fbr
Illrrt'
Sl<v

r:[;)\..1''::]lir.::. /5, ,

(,krrhirr8,.

Outline of a Businesr
Plan

ffiFIHFITINffi FI MFIFII{ETING PLFIN

Kee p iu rnind that rr nrarl<eting plan shoulcl Lrc createtl in conjunction with the other eleme nts of a fir'nr's busines.s pt:rn. In acldition, a nrlrrketing plan o{icn rlr'urvs lrorn the btrsiness platr,

'l'hc Illrrt'
'$ i,,r, $,,ir,rr. \\'lrrrr. \I,lr.

.Sh1,

(ilothi ng

Illan

restatiug thc exer-Lltive sunrlnar)/' cornpetirive

' i,,
I Io
r

Il. 'lhlrlt: <ll (,otrlr'rrtr

lll. Irrtrrrrlutliorr
. Nlr,:.i,rtt
ri;ltl.1il(-1,il

analvsis, anc[ rnission statement tr) givr: its .l-lre rcaclers an over:lll rrinv of thc ftirnr. nlarke tine., plan is trecdec{ for a \rarietJ' ot- reasons:

. ( ,rrrr, ( l)t iilrti (,'rtrtlrl,l',, . A,l ;rt r,r1,.'.'r,rt:ltt I t:lttrt

'

'Ib olrraitr
Lrus in rrss p

li nanc.irlg, Llecause banks and nrc)sr private investclrs reqLrire l-l tlc:tailcd lan--- inclucling a rruLrke ting plan

. rl,rrlrli t
f

conlponent--befole thel' wiil evcn coniurplicirtion or a ver-trrre car)ital

\/. Marlrr:tirr g !it ratcly

'
'
.

I)t"t"t1't'rPlrics

::*:Jj::: " '

t'r,

.'licrrrl,,
r\lrrrliL

-li-l

I l't rrr.,tr'?tir)il

[)rr(r:',)ti;,1 Srrlr:s Ilr.'.'t trtt,

bLrsi ncss

[)rc)vide clirection firr tlre lirnr's an(l nlarketinq su'ategies

c)ve

ralI

\'. lrintrrcirtg thr: llllsirrcrs

,

"lb suppor
shor

;rslr l;1r,,,.,'Arrrriisi.;

. l'r,r l'(l{rtiit ilrtlalltt'irllr . llrr rrttlr''rlli,,',,t,1,,,

\/1. I::rt ilitiur I'l,rrr

t the rlevcloprne nt of long- ;rnd r-tenn ()rganizutiorurl obje, tivr,:s

e

-l ' o quir{e

n-rploye

s in

aclr

ie

vinF

thesc

obicctiyt:s

'

I'irr'''it ri illt( iltrllllli'lri

* -lb sctvr ;l,s a startdarcl

ln

,rgainst'rvlrich rlrt: fit'rlr's

<:r,,aIrtatlccl

'l'tltllll,1)t'tlt

\/ll, I lurl,rrr llrrorlrt'rs lllalr

, l'rrrl,l,t! trr,'{rr
l'.1..',.'<.ls

llrogl'ess (-rln tre tnetrsrircrl anc{

rrrr! liL,iil.;

aclc{irion, rire Inerl(cting plrrn is \\'herc il

" ( tlr;r,lri l'rrr1llt,rr, t \'lll. ltt:surrrris ,rlt f trirrriplls

pr.rts irrto rvriting its cr-''rnu'iittrtent t<-r irs ru.sfonrcr \^ an(l ro builctirrg long.-lastirrg t'c[arir-rnsirip,s. .\fte'r creatirrg art.[ irirplt:rnenring

Iilnr

i'i,ltl

A-3

lrc plru r, r));u l<ctcrs r)) r.tst lccvrrlLtatcl ir- pcrioclicallv to saugc its strccess in nroving tlre orqzurizatiorr lou';lrrl it'r q1r'rls" lf't ll;lnrlcs ;lrc ttccdcrl, t[rc\' .slroLrlc[ be nr:rc[c as soon as possible.

FCIIIMI-II"ATII{ff AId OVERALL MARKETING

STRATEGY

"A strateqy delineates a

.

territory irr wrhirh a (ontpany

serks to be unique."

llt'lirtt: u,r'ititrri rt trr:tll<r:tirrg Pl:rrr, rr lilnrs rnall<etcr.s lolrnulare an over:rll nrarketing stratcsi,. A l:irnr uur\/ u\c;i tttrtttlrr'r of'tools irr rrrllkcting planning, irrt:lrrding bLrsines.s portFcrlio anrrl1,5i5 alrcl thc IX-,(i , tlr;ltrix. Its .:xt'tttlivcs ttta\. (:on(lucl. :r SVO'I' anal,y,.is, takc advantage oi a s[rarcgic lvinr{trrv, stuclv
I

'

A. r

? r

i1

l,

r r,Jl l^,

--MichaeI Porter ) I f\ in i i
r

(J e

ia

e O r

.<

l\rt-tt'r s I;ivt: ['ot'tt:s tn,'clcl ls it relatcs trr rhcir lrrrsitress, or c:onsicler arloprinq a t'irsr or scconci nrover
sl

,':r1J t^11jfq1

liltcl]],.

lrr ;tclrliti,rrr to tltr Pllrrning stiatcuic.s, rnarkr:tcrs arc also Iikelv tcl 115s -*,,:r*,:ruis!:eri ii+irl-r-sii , ra,lriclt l:rys orrt:r grirl of coltrnrns ancl rows that organiz.e nrrnrericaj infbruraticlrr in a standanliz,ed , .'usilv tttttlctstrrotl [or rrrirt. Sprcatlslrt:t:r alralysis lrclps pl:rnners answer various " what if " tlttt'stiorts t'r:l;ttttl to tlrc lirrrr'r; {irrancing lrnd opcrati,rus.-I'lre most poprrlirr spre:ar.lshcer so{irv;ttc is N,lir:rosoli lrxrrcl. A rprerrtlshcet rrnalysis lrclps planncrs anticip-rate rnarketing pr:rftrn'lrirnce givtn spc<.ilicrl scts <tlrtircrulrst:luccs. I;tlr exalnple, a spreadsheet rnight projcct th,-'outcomes oFvarirrtrs ptii.in11 rlt:cisiorrs lirr a rrcrv prorlurr, as sh,xvrr in Figure A.2. ()ttt'' rT'ttct'al Pl,rrrrrirrg srr:rtcgics:rrc dt:tcrrlirrecl, nrarketcrs begin to fleslr out thc details ol tltc tu,ulittirrg srr:rtcgy'.'l'lrt: clclncnts of a nirrrl<eting srrateglr inclurk'iclentifl'itre the targct rtt;tt-l<r't, stu,lyirrg tlrt rrrrrrl<cting cnvironnrcnt, and creatinq a marketing r-nix. \X/ben rnlrkcters hrrvt'itlt'rrtilir'tl tht't:ugct nrarlict. tlr.'y can dcveltrp tlrc oprimal nrarktting ruix rrl reirch rheir
potcrrt ilrl ( lr\r()nr(:rs:

sEligi:.{Lqii+t',.

:t,trti1'.si*.

Grid that

organizes nurnerical

information in a standardized,
easily understood format,

'
.

I'r'or/trcl \tttt/lqtt. rrt t'tisi

t#lri.lr

r:,r,,rtls arrti scrvices

should ttrc ctrnrprany'cllfcr to tL-tcct its crrstonreLs'

I )ist i lltrr trort stt'tttt,1J,.

I'lrr,)ush n,lrich rhar.rncl(s) ancl ph1'sical hr:ilitir,s \viJl thr: iirrn disrributc its

I)lotlrlt tsi

' l)t'tttttoltott,tl

ilt'tu(',ql!.

W'lt,'t trri;i ol advcrrising,

\\,ill rlrt'flrrrr lrs(' to

l't'irrtt,tl :lt',tlt',,,11'.

t'c;rc'lr

it\

cu,\tonre rs

salcs l)roJnotion, arlrl personal se Ilir)g acrirritit's irritialli, :rnci thcrr develop long-rc]l'nt l'eiarionshilts?

/\r rrlrlrt k'r,cl

slrrtLrlcl thc

conrp:uu'set its prices?

Appendix A l)F,.Eiopir,c

an

tflectivr

[.iarke tirrr.] i-'la!l

THE EXECUTIVE SUMMARY, Ct)MPETITIVE ANALYSIS, AND MI$SI()N STATEMENT

"Iailinq to plan rs planninq
lo fail"

wt#iltM

Ilecausc thcse thrc.: clenretrts oFthc busiuess plan often reappear: in the marketing plan, it is useful ro clcscrilre thcrl helc. I{ecall that the executive sumrn;lry answer.s dte u.,ho, tuhat, uhen, u'here, ltou.,, anrl whl,qucstionsfor thc lrusiness, In tlre early clavs o[(ioogie, the executive summary of the corlpany's busincss plarr inclrr<lec{ rcfercnces to it.s straregic planning process {ilr its search senices, rvhich involvecl "dervelopine thc pcrfect scarch engine ... [orre that] unr{crstancls e.tactly what -you rnean ancl givcs y,lrr back extrcrlr' s'h:rt you rvant."r T'hc sunrmarl' also ansrveretl .such qucstions a.s who was invt'lvcd (key people ancl orgarriz-ations), rvhat length o[tirn,.'the irlan represented, and how the goals worrld bc nrt:t. 'l'hc cornpetitive arrrrlvsis iircuscs on thc environnre:nt in u4rich tlre rnarkering plan is t,r tre implenrerrrc-d.'licnton, Nr"rv ler-sey-bascd'ltn-aLlvcle rn:rurr0rcturcs a rvide l'arietl'of prodrrcts, eLlI madc. lrorrr recyclccl rrntcrials. Bclieving the green rnovefflcur lvill er,entrralh. h,rlcl su'av in constrnrer procl'll'rra()'clcl lrusint,ss goal is to Lrc.-otrte the leading ecolrie,ndll'organic brantl in cach of the ucrs, pro,luct ciucgorics in which it cornpetes. lt doesn't attenlpr to ()verpolver the cateeory lcader; instead. it ajrns to lreac otlrer ecofricndly competitors. Fot example,'lbrraCyclc q'ants its rvindow cleaner to outst:ll grcen competitors lr4rs, lr{eyers and Sr:venth Generation, but it is lc.ss conc.'rned about beat-lerraCvcle'.s ing \Windex. the c:rcegur;'lcader,'[bclay, r'llany of ecofriendly products are availalrle at nra j o r rctai lcrs l i kc'l,r rgct *r tcl \X/almart.;r mis.sion statc,lent puts ioto words au organization's ov.-rall purpose and rcasotr fbr being. Accorcling to Nintendo'.s corporate mission, the conrpany is "strongly cclmmirted to producing and nralketing thc best products anrl sr4rport services available," Not onl! does Nintendo strive to ma,luiactrrre rhe l'riehcst-tlrralitt,r'itleo products, bur it also atternpts "to treat.every custol.ner with attenrion, considcl.arion alrrl rtrspect.' Nintenclo is sirnilarll, comnritted ro its employces and belie'r'es itr trcatirg the rn "rvirh tht: sanre consideration ancl respect thlt we, as a corrlpan)r, show our custolne rs."i

'l'hr'

DESCRIPTION OF THE Ct}MPANY

Ncrrl rhr bcqinning of tlre tnarkcting plan-tvpicalli' follor.r'ing the exectrtive surnmary ancl befbre the rrrissiorr srarcrncnt--a clcscriptitn oIthe cornpany is includecl.-['hc'cornpanv description may inctudc a bri.-f histort' r backglou rrrl of the firrn, the r1'pes of products it oftbrs ot plans to introduce. 'r antl rcu:nt succ(:sses or aclrievcrne rrts----in shorr, it consisrs of a ferv paragral'ths containing thc'kint[ of infirrrnatiolr oliern lirurrrl i;11 thc hrrtnc pagc ola corlpanr/s u'ehsitr-

SI'ATEMENT OF GOALS AND CORE COTVIPETENCIES

l'he plarr rlrcn includcs a strrtemcnt of rhe firnr'.s goals and its core conrpetencies-the things it does cxrrcmclv well or bettcr tban an]'onc: elsc-.'['he goals should be spccific and measurable and may be dividcd into finar.rci;rl anc{ nonfiuancial ainrs. A flnancial goal mighr be to add 75 nern'fianchise; in rht ncxr I 2 nronrhs or t() rca(:h $200 nrillion in revenues, .\ nonfinancial goal nright lre to enter the Iirrropean nrarl<et or to a.itl a nerv product line evcrv other vear. Afier the LI.S. Congress passed a lau' rrrarrdating grcatcr trsc ol''t:tharrol in the United Srates'bv 2(122--vipling ethanol consumption-cthanol pr()ducers sct specific goals ro ramp up protinction to nreet that requirernent.' Oorc compctencics makc a firnr stand out iionr ever)'one else in the marketplace. Costco's corc conrpctL'trry is offering a v'ide variety of goods at low prices, inclucling unexpectcd bargains Iikc ltrxury-blanci watches arrcl I)orn Perignon champagne . (jostco lcadership regards irs rvorkfrlrce as a signilicant ciifferenti,rtor in the company's su(:cess and, For that reason, pays above-rrrarket wagcs.'I'he avcrage Closrco hourly wage is rnore ttran $i7-almost tlorrble the highest minirnuln lvagc in the tlrrited Statcs ancl significantlv hishcr tlran the hourly wagc at its bigge.sr conrpetitor, Wrltnart.t
SnralI busines.scs oFrcn begin with a single core colrlpetency anc[ build theil business and reputation olr it. It is inrpoltant fbr a new firm to iclcntifv its core cornpetency in the rnarketing plrrn so irrvcstors t,r'banks undcrstand wlry thev should lencl ttre firnr nroney to gct srarted ctr

Appendix A

[)s',,,-.lo;irrrr't ,rn f:f lr.t tirre

i',i;rlt:lirr;

t)iarr

A-5

grow to thc next stage. As r collcge stuclcnt, Davicl Kirn {bund h.: e:rjoyed tutoring children. Wlrcn hc cliscovcrecl a rcal clcnrancl {br skillcd tutoring, he decided to launc,h a tr-rtoring btrsincss, lvhic'lr he tranretl (12 llclucation. Becarrse (,2's crlrc colnperclrcy is helping students to excel, crrrplovccs rrt: hirccl aud trainecl accorcling to rigolorr.s.starrr{artls. llbdal', C2 F,ducarion serves .strrdctrts fl-onr clerncntary thlough high school, operating in 110 locations in the Llnitetl .States
t1)

ln<l (larrircll."

()UTLINE OF THE MARKETING ENVIROHMENT ISITUATIOH ANALYSIS}

I:vr:ry strccc.ssfirl rnarlicting plan cclnsiders thd nrarkctilrg ctrvironnrent--the competitive, economic. lloliticrl--lcgll, technological, irncl sociai-cultr:r'.rl f;rctols tltat affect the rvay a film formulates and irlplcrrrcnts its marketirrg strategy. Markctirrg plans nray address these issrres in clifl-erent ways, btrc the uoal is to prescnt inForm:rrion thar ciescribes the company'.s position or situation within the markctirrg cnvironnrcnl. -1. (lrew firr instirncr:, has a rvcll- l<oorvn brancl trame ancl a CFIC) rvith an inrprressivc trrrcli rt:<nrcl, lv{icl<cy l)rcxlt:r, rvlrtr 1'rrcviouslv hcad.'d 1'[rc Gapr.'fhe retail environment fbr stores lil<c f . Orov is highly colnpetitivc. Ivlcri:hanclise that cloe.stit to enough custorners ctrds up on ^p1r.il the l<ey toJ. Crervls success is that l clcrrr:rncc r';rcl< arrc[ hurts thc hottonr lirrc. Acr:nrclirrg to l)rexler, it st:lls nrcr<.lrarrdisc tliat "c:rnnot bc s<,1<l anywhr,r'c elst'." f)rc.xler prr,rshes his buyer:s to "out-Droclttct" thcir corrrpetitrrrs.'A rnalketing plan firr_f . ()rerv rwrtrlcl irrclrrcle irn evaltration of conrpeting -srores,
srrc:h

irs'l'hc (irp and tlrbln ()utfittcr.s; rury tcclrnr'tlogical aclvances thnt r,r'ould allect sirch [rctors as rrrcrctr:rn,lisc rli.stritrutiorr or irrventorl,: social--.:rrltural issucs suclr as ilslrion pre{erenccs and spend-

i.ssucs altictrng a pnctng strategl ()rrc srrclr lncthocl lirr outlirring thc marlceting c:rrvirorrtr.rott in the rrtarketing plan is t,r incltrde 'rrnalysis, dcscr ibccl in Olraptcr ). S\V()'l irnalvsis icietrtifies the flrrn's strcngths, wcakru SW()'l ncsscs, ol)lx)r'ttrnitics, and thrcats u,ithirr th.: nr;rrl<ctirtplcttvit'ottrtrent. A.\\\/O-l'ritralr'sis {brJ. Crov rniglrt in,:luclc strcrrgths srrch;rs its c,lrptirrtt'k:at{ershi1.. l-rrand nanre, and upscalc target tnarket. \(/crrlirrc.s:;es rniglrt irrclutlc tht'ri,sks inlrcrcrrt in rhr lrr-rsitrcss,rl corrccth'spotting fhshion trcnd-.. A rrrajor oPportuuity lics irr thc far:t that |. ()rex .,'n expatt<l alrnost anl.rvhet'e. For exanrp-tle, afrter (,rt:w rrctluirctl lv'l,rdcwell, :r rcrailcl ttrat sc:lls hip. ,:;rsual c,lr.ttlrcs to an upscale audience. it expantL'd .f . thc <:huin to :i9 U.S. citics .rnd [aLurclrr:.[ an c-colnrlrerr:c sitt-.'l'hleats fbr f . (lrew r:ouid int:lLrde coml)ctilion Iionr othcr trcncly.stores, sutldcn ch:urgcs irr ctr.rtorlcr pre{irences, and iinanc:iaI crisc's that ;rflect spcncling.s A SVO'I- analysis carr bc prr:senrccl in <:halt fcrrnrat s,r that it is t'asv to read as parf . ol tlrc nrarl<cting plan.'l'hc sarnple: ruarkc:tirrg prlrrr in rhis;rppendix inclucles a SW()f lnalvsis fiir liltrc Sl<1, ( )l6drirrg.

irrt lrullits of crrstorrre rs; anrl ctorrorrit.:

THE TARGET MARKET ANII MAR|TTING MIX

'l-hc nr;rrl<eting pl;rn idcntifics drc tatg,i:t rnurlict tirr thc firur's pr,xlttcts.'l'he Cutc Overload rvcbsite (ww',v.cuteoverload.conr) contain.s plrot.,s aud virlcos of ;rnirrrals chat visitors catt slrare anrl about whiclr thcy cnlr l)ost cornnrents. Ilrrt rhcr sitc als,r,riltls a page-a-clav d.'sk c:irlcndar of dre sarne runrc lcrtuling irnagcs o( pupprit:s, kittcns, bir.ls, ancl r:hiprrrtrnks vvith httnrc,rc'us captiolrs. Llute ()vcrlo:rd fargets wor]ren agcs l8 to l.i u4ro lrecrl ,r lar-rqh,rnrl a brief cscape From the real rt'orJtl. 'l'lrc cllcrrclar'.s :rrc rlso ofhlcd firl sah: orr Amazorr.totrt, artd thc retailer',s invetttory rcrcentl-v sold our in onc dav, whiclr astorrisht:d thc rltveloper'." \X1t:i{rlit \X/ttrfiers has long regarcled rvornen as its pliurary t;rrgct nr;rrket and, in l,rc:t, fi:rnalcs culrcrrtl'r, nr;rkc trp 90 percerrt of its clienteie. Ilowevc'r, rs thcr (r)rnl)anv.sarv incrcasins ilrtc:rcst l'i'onr nrcrr, nrarkcters {bt W'cight \\tarchers began to tap irrto that.scgr))cnt, laurrching a rnen-only rvebsitc,rn.l a $l() rnillion:rdverrising campaign directed solt'lY at trrt'tt.rr) 'l hc rrriu'ketine plan al.sn ,liscusst:s thc rrrarkr,tirrs nrix dre iinn hirs selecte.l tbr its prtlclucts. [-lollywt'ocl .stuclios are known lirr inrplcnrenting lavish srrr]tegics tbr'pronroting their fihns. Not or.r[v rlirl l':rr':rnrount I)icturc.s ancl Nir:l<cbttcon Movies rrsc traditiotral tucirns to launch their recent movic, Ranu,b$ thcy also Partncred rvith otlrer urgalrizations k) prornote tlte tnovie, Sociel gatninEtrnrlrarrv Zyrrga irrrcgrntcd lLtngo rcl'crcntes arrd rlrc rrovic rrailer into irs poPtrlar ];ronric'rVille ganre on l;lccbool<. lllontic:rVillt: plai'rrrs coul,l cnrb,rrli or, tlrrec, dilfercrrt quesls to fincl dre elusive Rango

A-6

Appendix A

i--'

sotnc:rvltctc on the fiontierr, enlist their Facebook frirnds to help b,v "sending" rhenr warer buckers, arrtl, c:onr:civabli,, a Ran,qo statue. With an estimarecl 15 rnillion-plus Iiacebook users playing l'r-rrrr ticrVi i lc d'aily, Iilnt e, t r eceived grear exp,rstrrc. I i

*i"

BIJIIGE'T, SSHENULE, AND M(}NIT(lRING

ltvcry nrarkcting plan lcrlttilcs a budget, a time.schedtrle {br implenr,entarion, and a s1,5g6611 for rn6nitolirrg the pl'rn'.s succcs.s ,;r lailure. At age 2l, enrreprcnelrrJoe (iirrrili of Cainesville, ljlorida, rnade a to'<l<l list ,l[ tcn lifb goals, n,lrich inch,rdecl "Orvn a health club" and "Make it respected in rhe commtinirv." lly rgc 33, (lirrrlli had achieved all ten of his litc goals, including the opening of his Gainesville I-lcrrlth & l;itness (lt:ntcr.;\s (lirulli's business grew, how.cver, he discoverecia larger nrission: to rnake (irrincsvillc thc healthiest conrnrunity in Arncrica.'[bdal'. (iainesvilk'is rhe firsr and only, city ro win tlrt' (iold \Xicll (liry arvald fronr thc Vcllness C-.ouncils o[Arnelica, and Cirullis firnes.s center is rviclell' r61,,x1dccl as oue of the bcst in the industry '$?herher or not he renlized it at the rirne, Cilulli'-s
a

"ln ntarketilrg I have seen orrly

one slraleqy that tan't ntiss- - arrd tlrat is to market to your

bt'rt r.uslotl0ts first, yotrr

be'>t

prospccls srt(ond, and the rest of tlrtt v,rorlrl last"

--John Romero
|

)li)t

ll, ll

l)ll trtl,

ll! t(! ( lF'\,/Qi()l)ll

WHFIti!!ii,$iI ii#

f i i!!iIifiiIt

lifi:arrcl busirtt:ssplanatage2l hadthemakinesofamar-ketingplan.rvirligoalsandbuclgets,setting tinrclinc, and rrrcasrrring progress--a fbrmula for business succ:ess.r' It4o.st long-ratrg.- rnarketing plau.s encompass a two- to five-r,e:rr peliod, although companies tlrat rkr busincss in irrdLrstrics li[<e ar-rto manulacturing, pharnraceuticals, or lurnbe r nia1, extend tlreir nrarkcting plans fturthcr into the future, bccatrsc it ttpicallv takes longer to clevelop tlrese products. Flow*'cr. nrarketct.s iu Ittrst indrrstrics will have difftcultv rnaking esrirnare.s anrl irretlicrior.rs lrcyond fivc vclrs lrccarrse of.thc tlanv r.rncertainties in the nrarketplace . Firnrs also may opt to develop shorttcrnr phrrs t() (r)ve r rnar keting ar:tivities firr a single ;,ear'. -l'lrc rtrarlcetirrg plirn. lvhether it is lrrng tenn or shcrrt term, predicts hou'long it iviil rake t<t :tclticvc thc goal.s sct out b1' tlre plan. A eoal rnay'be opening a cerrain nunrber oI nerv.st,rres, intrertsing tnarkct share, ot'achieving an erpansion crf the product line. Finally, the marlceting progrtrtr is rnorritot'ecl and evalLtatcd lor its perfonrlallce. lvlonthl,v, quarterll', ancl annual sales targets arc rrsually trat:lit',Ir thc t-{f.icicno'u'itli rvhich certain tasks are conrpleted is deterrrrined; c:usrorner satisl:actirltt is tttcasr,rrctl; and so fbrth. All t'rf these fic-t()rs contribute to rhe overa[l review of the [)11)grx rll. At s<rruc point, a filnt tnay inrplement 'an exit stt'ang,, a lllan fbr the firnr t,r lear.e thc rnarker. A cornn)on wav lirr a largc conrpanv tt'l do this is to sell off a business unit. A numb.'r oFthese straregies hlvc [:tccr.r irnplcnrcntccl rt,cenll;'. Dover Corporation is a diversified global manufacturer of equipnrt-'ttt an.l cor.r)poncnts for thc comtnunication. energ!', aud printing ir.rdustries. In keeping with the conrpan\is long-tt:lltt growth strateg.y, it tccently sold a busines.s unit, F-{eil Tiailer International, a "l cnnessce-bascd urrrnrrfircttLt'elr of specialty rransportation trailcrs an<l equipnrent. Wirh the transaction, I),rvcl c:xitcd the transportatiotr trailer business.'fhe rnove is expecrecl to help improvc Dovt'r'.s flrrancial pcrfornrance. I t Arrother cxamplc of an exit strategy involves pharnraceutical giant ['flzer. Founc{ed in 1849, tlver tinre, thc c.rnrpanv expandcd its operations bevond its core business---the development and rrr;inrrluctulc oir prescription nredications---to inchrde nutrition ancl aninral health.'[b return the fot:rrs to irs crlre busincss of rievcloping neu, drugs, l'fizcr recentlv sold its iufhnt nutrition business

to

N.:stk'r.11

SFIMtrLE MFIFIF{ETING PLFIN

'l'hc lirllorvins pagcs contain an atrnotated sanrple marketing plan fbr Blue Skt.' Cliotlring. Ar sorne point in vour carccr, y,rtr rvill likely [6 involved in rvriting-or at lcast contriLruting to.--a lnarkcring plan. And yr-rtr'll ct:rtainll'read nrany rnarketirrg plans throughout yollr busine-.s r--areer'. Keep in rrrirrd that rhc plarr firt Blue Sky is a single exarnple; no one fcrunat is used bv all conrpanies. Also, tlrrr lllire Skv plan has beetr sourervh;rt condense(l to nrake it easier to annotare ancl illustrate lltc trrost vital fcarures.'['he irlportarit point tcl renrember is rhat the nrarketing plan is a docuntcttt desigrtr-tl lo prl:sc,nr cotrcise. cohesivc inforrn;rtiorr about a companv'.s rnarketingiobjectives to
nlilnagcr.s, lcnding instittrtiorrs, and others involved
[rrrsincs.s stlatcgy.

in creating

ancl carrying our the

firrnt

overall

Appendix

A-7

Ptan Inc.

mmary utive ummary the

o, what,
)u/, /, and

Tabte of
EXECUTIVE SUMMARY
'l'his flvc-vcar nrarkcting plarr tirr l]lrre Skv (,lorhing has lreen creatcd bv ics rwo lbunders to
;rcltlitiolral liurding lirr grtlrvth antl to inlcrnn elnployees of tlre cornpany's current status rurrt[ tlircction. Altlrtrtrglr I]luc Sklrrvls launchecl onlv rhree vears ag(t, the finn has experienced qrc,rrcr-thrr1-;rrrticiplrccl clcnranrl lbr irs products, ancl research lras slrorvn that the target m,rrket of sporrs-rnirrrlctl <rrnsunrcrs e'rcl sports retliler'"^ u'ould [il<e to btty morc. casual c-lothing than lllrrc Sl<y r:rrrrurrly, ollcr.s. i\.s a r,:sult, llluc Sky want,s to extencl it.s clrtrcut protluct [ine as welI as utltl ncrv [trorluc,r Iinc.s. In arldition. thc {lrnr plarr,. to cxplore opportunities for online sdes. I'lrc rnrrrl<ctilrg crrvironnrcnt h:rs bccrr vclv receptivc to the firm'.s higb-qualiry gorrds----casuirl qlotlrirrq irr trc'rrtlv urkrrs with logos arrtl slcrsans that reficct the intetc'sts oltotrtcloor enthusiasts rrrourrtl thc c:oruru'),. ()vcr tlrr: rrcxr f ir'.- years, Illuc Skv can increase its clistribution. oflbr nov pr',xlrrcts, arrtl lvirr l)cw custon)(:rs.
sccur-c

(eting rting
;

only lnly
is

rd and

rgh rh that
rrmal [ormal

to o obtai obtain
rcrng tng

private rivate
pansron anslon

of f new

C()MPANY DESCRIPTION
[]luc Sliy (,lotlrirrg wr.s firrirr<lccl thrt:c vcars.g.r bv entreprrnr'rlrs l-ucy Nenmatr and Nicl< l{rrsscll. Ncunrln lras lu uncl<:11',rarluatt dcgrcc itr nrarktting and u,,rrketl fbr so,e ral 1'eiirs in the
rctiril t:l,rrhiirg irrrlustrv. l{tr.sseli oPr-ratc,l an rdvcntrrrc bu.sirress callcd Go Vcstl, rvhi.:h arranges grorrP triPs to krc:rtiorrs in W'vorniug, Montrna, and [dahc., b.'fiue selling the etttetPrisc to a p:utncr Nt:rrnr,rrr:rrrtl l\rsscll, who lrrvc bt'crr {l'icnrls since c,-rllege, ciecirlett to dcvelop and rnalkct a lirrc of'clothirrg with a urricprc---1'c rrnivt:rsal---rrppeal to outdoor enthtrsiasts. lllrrc Sl<v ()lorlrirrg rcllccrs Ncurrran's urrd Rrrsscll'.s passion for the outdoors. I'he cotnparrv's olillirrrl cottorr'1"-shirts, basctrall cilps, :ur(l flcecc iackets and t'ests bear lc'tgos of dill:er('rrt sl)()r'ts. srr<:lr as l<'ryal<irrg, nrountain clirnbirrg. bicycling. skating, sttrfing, ancl horseback ri<lirrg. []rrt cvcrf itcrn slrows oll'thr'c<lr.npunlis slogan: "Go Play Outside." Blur'Sky sells clothirrq lor l'rotlr rrrt'lr rrrrd wonrerl, irr thc hottt'st color-s u'itlr ttre coolcst uames-sunrise pirrlt, srrrrsct rcrl. rrvilighr lrrrrplc,.lcser'I ro.se', cacfus gtcerl, c'cean ttIue, nrountainrop rvhite, arrrl rivt l rrrt:k grlrl. llluc Sky rrrtirc is currcntly carrietl llv snrall r.ctail stores that specialize in outdoor clothirrg urrrl g<:er. N4ost ol rhr:"^e sr()res arc c.'rrrccnlrate<l in northern Nerv Englancl, Calilornia, thc Norrlrwcsr, and tbc.sourh.'l'hc higlr quality, treudy crilors. and unique nressage of the clothinrl lr;rv,:1,,irirrccl lllrrt'S[tv a {bllowing lu]'}c)ng'consurtrers trcrivccn agcs 25 and 45. Sales have rriplcd in tlrc l,rst vc:rr akrrrc. untl ltluc Slcy is crrrcrttly rvorking to expand its manufacttrring
capabi
li

tics.

Illuc Sl<y is also conrrnittc<[ to giving back to the comt.lruniry by contributing to local corrst:rv:rtiorr progrilnls. Iiltirwtrclr', th,-, cornplnv wou[d likc ro clevelop and fund it,s own envirorrnrcntal l)rolarilnls. l'his plari lvill otrtlinc ho'"r' lJlue Sky intencls to iutroduce new prodrrcrs,
cxp:rrrr[ its distrilltrtion, cntcr
r)c1w

ffi;;;;;.*l
a

firm's mission and

nratket.s, ancl give lr,rck ttt the conrmturiry.

goals, including financial

and nonfinancial goals.

BLUE SKY'S MISSION AND G(]ALS

l)[rrc.Sliyis rrrission is to bc r ler<ling procluccr rurd rrrrkt:ter of personaliz.ed, casual clorhing for c()nsullcls ra'h,l krvc tlrc outrloors. lllu,: Sky'"\'iults tL) inspirc peoplc lo get outdoors morc oftelr antl cnjo1, lirrnily nrrcl fi'icn.ls u'hile doing s,r. In addition, l]luc Sky strives tu design proeran.rs

Blue Sky's goals include

growth and profits for the company as well to society through conservation prog ranls.
as

the ability to contribute

li,r

;)r'cs('r

vir)fI thc: trtr(rlral envitonrTlcnt.

AppendiX A ir,' ,'r,,lril)rl ri lf f , li,il il,iii,.lirir.l

i)i;i;r

A-9

COMPETITOR$ IN TI"IE OUTN(}OR CLOTHII{G MARKTT

I'lrc outclorlr rctail sllcs irrrlrrsllv sclls :rlrout g1 billiorr ra'ortlr of goods aunualll'. raneing li'onr ckrtlrirrll to crlrripnrcrrt.'l'lr.: r,ritrl,ror rrpparcl tnarkct has nranl'cntties. L.l,.llean, Dick's Spolrirrg (iorrrls, l{l:1, I'irrrl'rrl:rrrrl. [Jirss I'ro Shoyrs, L.abela's, fhe North Facc, an,.l l)atagonia :lr(: ilnlolrg tlrt: rnost rccogrrizablc tonrpanies oilering thcse proclucts. Smaller cotnpetitors likc'l'itlc Nint:, rvhich ollc'rs ;rtJrlctic clothing firr uonre'tr, ancl Ragged N4ountain, rvhich sr:ll.s fl,'crc t lorhinyl firr sl<icrr unr[ hikcrs, also cirpturc sonre ol the nralket.'l'he outlook fbl tlrt: irr,lustr'y'irr gcrrcral---arr,l []lrrt: Skv in prirtirular--is positive fbt several reasons. Ilirst, (onsunrcrs urc'l)llIrit:iPutirrg in urrtl invcstirrg, irr rct-t'eational acti'r,itics ncar thcir hotnes. ,\c'torrrl, consurllcl.\:rrc I.rl;,inri till r.v,rys to ettiol'tlreir leisule tilne rvith friends and larnily rvitlrorrt o','crslrt'tttlitrll.'l'lrirtl, corls(ttllcrs tcttti trt [e ;rclyatrcitttl i1 rfieir cafe(]rs and are a[le to sllcrrtl ru,rrc. Wlrilc:rll trf'th.'conrprrrrics listt,tl callicr can Lr.- corrsiclcred corrtpetitors, nrost of thenr sell Pr'rlorrrr:rncc rrPPr111'J irr lrieh-rcch rrrrrrulaclurccl fa[>ric.s. \X/ith thc cxccptiol] ol rhc fleece vests rrrrcl i:r, kets. [ilrr. Sliv's clotlring is rnedc' strictlv ol]thc highest'rluality cotton, so it nray be woltt lrotlt ttrr rhc lriliirrg tr:ril rrrrrl ar,runcl turvn. liin,rllr,, l]lLre Sliy prorlucts are rrlTerecl at rnoclt:r;ttc'prit't'r, rrr:rking rhcrn ;rflirrdlblc in nrultiplc (lrrantitics. For itrst:rnce, a tslue Sky |-shirt

A-10

Appendix A L)evetopirg

an If[ective l,larketiiri,r iri4;,

'

I
A

{ {
I J

sclls fbr $15.99, conrl:'arccl rvitl'r a competing iriglr-perforrnance'Fshirt.that sells for $29.99. Llousrrtncls can easi[1' t'cplace '.t sct of shirts fi'om one season to the next, picking up the nervest colors. rvirirrrrrr ag;oniziug over: the prrrcha.se. A survcy cc,nclucted b), Illue Slq' rer,ealed rhar a high percenralie of respondiug consumcrs prcfcr to rcplacc thcir: casual ancl active lvear rnore often rhan other clorhing, so they are atfractc(l b1'the tnodt:ratr: pricing o{i[JIue Slcv products. In acldidon, as the trend torvard hc'a[rhcrrttscirirts lctivitir:s aurl ,.ottccrlts al.rout the rratural etrvilonment continrre, cqnsunrers itrcreasinglv rt,llrtc: tu thc Blu.: likv philosoph)' as rvell as the firnrt future contrilrutions to socially

lesponsible i)r'ogmnls.
t'
I

lllue Sky has identifiecl

its custorncrs as active

people lletweerr ages 25

and 45. Flowevetr, tlrat dclesn't Inean someone

'l'lrl

wlro

is oldr:r

or prefers to

reatj allout the outdoors

isn't a potential cuslc)nler

as

wttll, By pirrllointinq

t:rlgcr rnirrkt't firi Illrrc, !i111' prorJtrcts is acti'".e r:orrsrrnrers bc'rween ages 25 and/r5-*-people rvlrri lilic to hikc, roclt r:lirnb, bicvcle, srrrf fiRtrre skate, in-line skate, ride horses, sno'r','[roard or skr. klyak, ancl t-,thcr srrr;h ;rctivitics. ltr short, thev like to "Clo Plal'C)utside."'l'hey rnigl'rt not bc ,-'xPcrts irt the .sP()us tlrcv errgage in, trrrt tfrey enjo-v thenrselves outdoors. 'l-hcsc actir,c (:onsllme rs rcprcsent a dr:rnograprhic grotrp of rvell-edrrcared arrd successlul intlividu,rls; thel'are sinqle ol rnarriecl ancl raising Fanrilies. ]{ousehold inc:omes gcnerallv r':rrrgc brtrvccn $(;0,000 anrl $120,000 annualh'. l)espite rl'reir conrfbrtable inconres, these

where existinq
custorners live, Lllue Sky
c.an plan

for r;rowth into

c(lrsunlers:lre 1:ricc t:onsciorts:urd c:olsistently seck value in their purchases. Itceardles.s of: thcir agc (whethe r thcy firll ar the rrppcr or lctu'er cnd of the target range), they lead acrive lilLstyles. '['hc)' x1s sottrervll;rt ,5tatus orietrted but not cx'erlv so. They like to lre associatcd with
high-clrraliq'products btrt at'e not rvillirrg to pa)'a prerniuur plice for a certain br;rnc[. (iulrcnt Illtrc Sky cu.$rr)trers lcrrci to [ivr: in n,.lrthern Nerv ]lnglancl, the Sorrth, Californirr, rrrrd tlre Nortlrrvr'sr. [-:1111^,'1'1's1,,rne firtulc gc,ai is to target (onsunrers in the iV{id-i\dantic stares:rnd
S,rrrthrvesr
a.s

new outlets,

ra'r:ll.

Tlre strorrgc:;l part of

tlre rlarketirrq rnix for Blrre Sky irrvolves

sales llrornotiorrs,

'l lrc ftrlltnvinq.lis.Lrssi,rlr

Sky ploclrrcts.
rrc;

srutIines sorrc oltthc cletails of:il're ;-troposed rnarketing mix fbr [Jiut'

public relatiorrs, arrrl

n

on trac.li I iona I rla rketi

F'rurlrrni , trat*gv
llluc Sll't.rrrrcntli' oflirs a linc oithigh-ciualitv orrtclrol aPPalcl items, including c:1r111vp'|--5[111r. taps, lrrd flcccc vr:us :rntl iacltcrs. AII brar llte contp,anv lr-rgo and slogan, "(lo I)lai' Outsidc." 'l'lrc lllrrr hls rc,sr:atr:hr't{ tltc, rttost popular colors lbr its itcnrs anrJ given thcrn ttarncs that cnnsulncrs etrjol'---strtrsct retl, srtnrisr-= pink, circtus grecn, tlesert tose, and river rock gravj anrong othcls. ()vcr th,: rrr'rt .livc r,,:urs. i}hrc Sliy pluns to cxparrd rlre pr,rdrrct line to include (ustomiu ir,l rhltlrirtq itr:irts. (..rt.str-rrtlcr'.s llla.v selcct r l,igo that rcpresents theil sport, sal', rock clinibing. 'l-lrctr tlrr:;,.arr l:;logarr to trtrrtclr thc krgo, srrch as "(let Over It." A cap rvith a bicvclist lnight l:'r:al tlre slriqan, "'lal<c a [tidt-." At tirc begirrning, thcre rvorrld be ten nerv logos and five
,rtt<l

str.rtegie:;, suctt as

atterrdinq outcloor
evertts
crrrcl orqa lrizir
r<.1

activities like rlay Irikes

ancl bike ricles

'irltl

rtt'rv s[ogatrsi ttrorc rvottltl bc'irclded latt:r. [r,veutualll', sonre slogans anr{ logc,s rvoulcl be rerired, -l-lris tttrv oncs introclur.etl. strarcg). will keep the concept fi'esh and prevcnt it froni becornirru dilutcd r,r,it[r trxr n).rnj' vluiltion.s. 'l'h,,: sct.oncl u,rrv in rvlri,-[r l]lue Ski' pltrrs ro exp.rxnd irs l.rroduct line is ro ofGr lightw,eight
lrtup,;'.rgc-

ol'rlrrf fcl lr,rgs, two sizcs of tote bags, and a d'rypack. l-hcse iterns rvoulc{ also a choice of krgos and slogans. In addition. everv-protlLrcr rvoulcl lrcrr tlrc lihrt: Sliy loqo. -trvrt
sizcrs

(r)rne

ill tlt:udv lrrti llrsit. colors, rvirh

Appendix A i)o'rcloliincr

arr [:f fr=t-rive N.liirketirrg ;)iarr

A-1 1

0istribution Strategy
()trrrcr.rtly. BIuc Sl<y is nrarke,tetl through regional arrcl locaLl specialry shops scatrered along thc (lrrlifirrrria coa.sr. intt.r the: Northrvest, across thc.South, and in northern NewEngland. So firr, lllrrc Sky hls not bcerr tli.su'ibuted through national .spordng goods and apparel chains. ('llinr:rtc ancl season tend to clictate the sales at specialry shops, which sell more'f-shirts and c:rps drrring warnr weather ancl rrrt,re fleece vests and jackets during colder months. Blue Sk;, olrtains rnucb of its infcllnration about overall indr-rstry tre nds in different geographic areas and at clill'crcnt typcs of retail outlets Florn its rradc or-ganization, Outcloor IndtmtryAssociation. ()vc-r tlrt: ncxt tllree yeals, l]lue Skv serks to expand distribrrtion to retail specialty shops throrrglultrt thc nation, lbcusins lrexr ()n the Southrvest ancl Mid-Atlantic regions. The firm has not yct clctcnlincd u4rctl'rer it lvoukl bc bc'ncficial to sell rhrough a rnajor national chain, as tlrcsc orrtlets corrld bc consiclcrecl cornpetitors. Irr ircldition, Illtre Sky plurs to expancl onlinc slles by offering the customized product line vil tlrt: lnternct only,, thtrs distinguishing benveen Intcrnet clffering.s and specialry shop offerirrg.s. Iivcrrtrrlll-v, rhc firnr nray be able to place Internet kiosks at some of the nrore profitable st()rc outlcts so consur.ncr.s c<trrltl orrler ctrstornized ptotiucts frorn the stores. Regardless of its cxp:rrrsion pllrrs, lllrre Sky ftrlly interrrls to n'ronitor atrd tnaintain strong relationships rvith distril'rut iorr charrncl rnr,nrbc,rs.

Promotion Strategy
Illuc Sl'y colnnrurricates with consunrers and lctailers al'rout its pfoducts in
a variery

of

ways.

lnkrrrrration alrout l]lue Sky- +he conrpany as well as its proclucts-i.s available via the Internet, throtrgh dilcct nrailirrgs, ancl in l]erson.'l'he firms Frromotional efforts also seek to clifferentiate
its pr'<ltltrcts firlnr those oIirs conrperitor.s. 'l'hc crrnrparrv rclics on llcrsonaI contact rvith reiailers to establish the product.s in their storcs.'l'lris conract, rvl.rether in person or by phone, Helps convey the tslue Sky message, rlcnronstratc thc proclucts' trniclue qualiries, and builcl relationships. Blue Slqf sale.s rcpresentrrtivcs visit circh.slore two or threc tirles a ycar atrd off'er in-store raining on rhe fbatures o[:tlrc lrrr:tlucts fbr ncw retailer.s or for those who waut a reft'esher session. fu clistribution crpatrtls, lllrrc Skl,will adjust to nrcL't greater cientand bv increasilg sales staffto make sure its storcs :uc visitcd nrorc fi'cquentlv. .S.rlt'.s pronrotjorrs and 1lr.r[rlic rclations currently nrake up the bulk of Bluc Sky's promotiorral .strltcg)'. llluc.Skv sta{ltu,orlcs with rctailers to offer short-tcrm sales pronrotions tied to o,cnts ancl colltcsts. ln adclition, Nick ltussell is currentlvu'orking with.several trip outfitters to olk'r tlluc Sky itcnrs on ir pronlotional basis. Ilecause l}ltie Sky also engages in cause marketing through its contrilrurion ro environrnental programs, gclod public relations have followed. Nontraclitional rnarkctine merhods that require little cash ancl a lot of creativiry also lend tht:rnsclvc.^ pcr{"cctly ro lllue Sky Because Bltre S[<v is a srnall, flexible organization, the finn carr crrsily inryrlcrncrrt iclcas. strc:h as tlistributing fi'ce lvater, stickers, and discount coupons at ,ltrtrloor sporting, L:vcr)ts. Dtrlirrg rhe next year. rhe conrpany plans to engage in the following ln:rrkcti rrg clJirrts:

. . . .

( lrcatc' a l)[ue Sl<y'lotrr, couPolt.s.

in which several enrployees rake turns driving around the country to curlrpgrounrls to distribute promoti()nal items, .such as Blue Sky stickers and discount

Artcnrl carroe and kayak raccs, biqrcling events, zurcl rock climbing competitions with our Blue Sky trucl< to tlistlibutc fiec ,,vater, stickers, and discount coupons for Blue Slcy shirts or has.

()rgrniz.c Bluc Sky hikes clcparting, lrrrnr participating retailers.

I lold a Illtrc Sky design conrcst, selccting a winning slogan and logo to bc added to the custonriz.ed lirre.

A-12

llricing Strategy
As discussed earlier in this plan, Blue Sky products are priced with the cornpetition in mind. The flrnr is not conce rtred with setting high prices to signal luxurv or prestige, nor is it arrempring to achievc the soals of oFfietting low prices Lry selling large quanrities of products. Instead, v:rlue pricing is pncticed so cLlstonlers fbel comfcrrtlble pur'chasing new clotiring to replace thc olcl, even if it is just hercausc thev like the ncrv colors.'I'he pricing srraregy also makes I3lue Sky prochrcts good titts-_-fbr birthday.s, gladuations, c'r "iust bccause." 'fhe cu.ston.rizeci clothing rvill scll fbr $2 to $4 nrore than the regular Blue SLy logo clothing. 'I'he luggage rvill be priced <ompetitivelv, tilfbring a go,rcl value against its cornpetition.

An actual plan will

include rnore specific

fi

nancial details, which

will be folded into the

overall business plan. For more inforrnation, see Appendix
B, "Financial

Analysis in Marketing," ln

BUDGET, SCHEDULE, AI'ID M(}NITIIRINS

'l'hough its historf
is short, Bluc Sky has enjoyed a steac{f increase in sa]es since its introcluction threc years ago. Figurc R shorv.s these three y,ears, plus projected sales for rhe nexr thlee years, inclucling the introdtrction of the two new product lines. Additional flnancial data are inclutled in tl'rc ovcrall Lrusiness p.lan for the corlpan;'. l'he tirneline fbr expansion of clutlets and introdr-rcrion oI rhe two new procluct lines i.s sltowtt in liigure C. 'l'he implenrcutation of each of tlie.se task wifl tre nronitored closely and cvaluatt:d for its pcrfor rr.rance.

addition, Blue Sky states that at tlris stage, it does not have plans to exit the market by rnerging with another firrn or making public stock offering.
a

$1,i00,000

$1,000,000

$^l,5oo,(io0

$2,000,000

$I

.500,000

i{ I

.000,000

$5oo,ooo

201 :i

z0r4

201

2016

Appendix A

l)r'vi"l1)[,tn(l ,rtt I f it'r

Ii'.,1,'

fvlarketittg l'lart

A-13

A-14

NtrTI
l-t lF tff

l.

ComP Builcli

2. ComP
corn'

3. Contl

4.

"lv{ee' or{J,

for th
RF52

5. u.s.
acc(s
W-w*9

Wrlr
con'!

6. Corr 7. Davi
Ncw

lllrrr Sliy :lllt iciltirtcl; corrriutritre opcrations into thc lorcsecable lirture, rvith no plans to erir rltis rttrtrltr:t. lrrstcad, as tlisc:rrsscrl throtrllh,rrrt tlris plan, tlrr: lirnr pilan.s to increase its ptesence in rlrc trr'rrltt'l. At prcscnt, tlrclc arc rro plans ro r.nerge wirh anotlrer c:ornpanlr or to make a public stock olli:rilrg.