Marketing Plan Outline - Step Three - SPRING 2024

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Simon Fraser University *

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Marketing

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Apr 3, 2024

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docx

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Marketing plan – Step Three - MRKT 4331 Please refer to step one preamble to required elements as it fully applies to step three all steps in the marketing plan. FINANCIAL PLAN: It’s time to talk Numbers. Background / Preamble: You are asking for and supporting your request for the seed capital money. This section will explain how much you need; how you arrived at that number; what purchases will be made and how you plan to earn back borrowed monies with sales revenue and pay it back by the end of the first year of operation. How much you ask for should be supported by the total of your Start-Up costs (everything you need to spend before you open the doors) + any Operating costs for the first few months that you need to pay until sales start coming in (enough to cover your ongoing expenses). Start-up Costs: These are required to start your business. Start-up costs may include tools & equipment, inventory, supplies, systems setup, materials, and consumables, etc. Add your start- up costs to the financial spreadsheet. Overhead – These are your ongoing monthly costs. Show how much you need every month to keep the lights on, pay bills and keep the business operating. Rent, utilities, employee wages, internet, website hosting fees, and more. Add your Overhead costs to the financial spreadsheet. Sales Forecast: Every business starts slow and grows into more consistent sales. Incorporate all the activities discussed in the previous steps that affect your growth in the financial spreadsheet. Add your marketing activities and business initiatives along with the associated costs to the financial spreadsheet. These will include:  Step one: Section 3. Goals and Business Initiatives - supports unit sales by month forecast.  Step two: Section 4. Marketing Channels Table – supports unit sales by month forecast.  Step two: Section 5. Promotion strategy and cost – supports all promotional costs.  Step two – Influencer table – Supports influencer costs  Step two: Section 7. After Sales Strategy - supports all after-sales costs.  Other expenses – start-up costs, overhead, shipping, inventory, insurance, etc. Page 1 of 8 Sources for Business Plan: Business Development Bank of Canada, Marketing-3 rd CDN Ed. Grewal et al. & Paul leigh

Marketing plan – Step Three - MRKT 4331 1. Financials There are four parts to this section: Parts A, B, C and D. Part A – BREAK-EVEN : Requirement: Calculate your Break-Even point:  Show your formula.  Calculate the BE using your formula.  Indicate which month in the first year of operation BE is forecasted to occur. Part B – ANALYSIS : Requirement: How you arrived at your forecasted unit sales - supporting calculations / assumptions / etc.: This is where you now support / prove how you arrived at your forecasted unit sales for each month of the first-year pro-forma income statement forecast. You will tie the metrics discussed in previous sections to your monthly forecasted unit sales using various and supported conversion rates for each of the marketing / business activities you had planned in steps 1 & 2 of the Marketing Plan. Complete each of the tables below and then incorporate the information from these into your Financial Forecast spreadsheet. For each table below show how you derived your numbers. Do this for all metrics related to the Financial Spreadsheet as they apply to marketing activities and business initiatives. Show all assumptions. The following example for Facebook posts / advertising demonstrates the level of detail required to support your unit sales numbers in your proforma income statement spreadsheet. You would fill this in for all your Goals & Business Initiatives, Marketing Channels, Promotional Activities, and After-Sales activities. Page 2 of 8 Sources for Business Plan: Business Development Bank of Canada, Marketing-3 rd CDN Ed. Grewal et al. & Paul leigh

Marketing plan – Step Three - MRKT 4331 Example Only: Facebook post / ad If you are using Facebook as one of your social media platforms and your strategy is to use Facebook post / advertising to drive traffic to your website and pay for each click to your website, then the following analysis and proof might apply. This Example is using the “Beauty” industry for the research metrics. You would complete the following tables after this example. The research tables / charts that support your analysis would go into the appendices.) Social Media Platform Avg. Posts / Ads per month * (based on research) Average CPC $** (Based on research) Total Cost per month (Set a budget) Total Clicks (CTR) (Based on research & budget) Total CTR’s per month Avg. Conversion rate of FB ads** (Based on research) Unit Sales per month*** FB 30 1.81 60.00 60/1.81=33 33 7.10% 2.34 Other *Posts per 30-day month will vary based on the Social Media platform selected and the range of posts suggested by research – take the average of the range for your forecast. FB recommended posts range from 1-2 per day. I will use one per day for this example. ** Conversion rate based on research – see chart below for 2022. If I am in the Beauty sector, then the conversion rate is 7.10% and the Average CPC for the Beauty industry is $1.81. *** This is the calculated number based on the analysis and research that supports sales each month based on FB and your budget. 33 X 7.10% = 2.34 Page 3 of 8 Sources for Business Plan: Business Development Bank of Canada, Marketing-3 rd CDN Ed. Grewal et al. & Paul leigh

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