The Marketing Plan - j1 - Belts 'R' Us

BeltsRUS
GroupJ1
Section2PGP1T.A.PaiManagementInstitute Manipal,Karnataka.576104 +919900062144
J1PGP@groups.facebook.com Arnab Roy, Mrinalini Singh Kalyan Deep Ray Prasenjeet Acharjee Shetty Rahul V.
Group J1: Arnab Roy, Mrinalini Singh, Kalyan Deep Ray, Prasenjeet Acharjee, Shetty Rahul V.
Confidentiality Agreement The undersigned reader acknowledges that the information provided by Belts 'R' Us in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Group J1 PGP 1, TAPMI. 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 Belts 'R' Us. Upon request, this document is to be immediately returned to J1 PGP 1, TAPMI. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date *This is a marketing plan. It does not imply an offering of securities.
Table of Contents
Contents
1. 2. Executive Summary .................................................................................................... 1 Situation Analysis ....................................................................................................... 1 2.1. Market Needs ....................................................................................................... 1 2.2. The Market ........................................................................................................... 1 2.2.1. Market Demographics ...................................................................................... 2 2.2.2. Market Trends................................................................................................... 3 2.2.3. Market Growth ................................................................................................. 4 2.3. The Company ....................................................................................................... 4 2.3.1. Product Offering ............................................................................................... 4 2.3.2. Positioning ........................................................................................................ 5 2.3.3. SWOT Analysis ................................................................................................ 5 2.4. Competition .......................................................................................................... 6 2.4.1. Direct Competition ........................................................................................... 6 2.4.2. Indirect Competition ......................................................................................... 7 3. Marketing Strategy.................................................................................................. 7 3.1. Value Proposition ................................................................................................. 7 3.2. Target Market Strategy......................................................................................... 7 3.3. Critical Issues ....................................................................................................... 8 3.4. Financial Objectives ............................................................................................. 8 4.1. Marketing Objectives ........................................................................................... 8 4.2. Messaging............................................................................................................. 8 4.3. Strategy................................................................................................................. 9 5. Marketing Mix ...................................................................................................... 10 5.1. Pricing ................................................................................................................ 10 5.2. Promotion ........................................................................................................... 10 5.3. Service ................................................................................................................ 10 5.4. Implementation Schedule ................................................................................... 11 6. Financials .............................................................................................................. 11 6.1. Break-even Analysis .......................................................................................... 11 6.2. Sales Forecast ..................................................................................................... 12 6.3. Loan Repayment schedule ................................................................................. 13 6.4. Contribution Margin ........................................................................................... 13 7. Controls ................................................................................................................. 15 7.1. Implementation................................................................................................... 15 7.2. Market Research ................................................................................................. 15 7.3. Contingency Planning ........................................................................................ 16 7.4. Marketing Organization ..................................................................................... 16 8. Appendix ............................................................................................................... 17 8.1. Contribution Margin ........................................................................................... 17 8.2. Loan repayments Scheduling ............................................................................. 18 References ..................................................................................................................... 19
Group J1 - Belts 'R' Us
PGP 1 section 2
1. Executive Summary This marketing plan is designed to give us a blueprint for marketing our new retail store, Belts R Us. We have included a complete market analysis, target market summaries, a SWOT analysis, a detailed milestones table, and other relevant discussions. Our ambitions for this marketing plan include: 1. Using our existing Internet and direct-mail marketing expertise to build local promotions and marketing literature. 2. Devising lucrative promotions that will draw sponsorships from possible strategic partners. These promotions are key to our strategy of increasing our strategic alliances through cross-promotions. 3. Identifying our strengths, weaknesses, opportunities, and threats. 4. Identifying the local market forces, target markets, and promotional opportunities. We hope this marketing plan creates a long-term growth model for our retail success. 2. Situation Analysis Belts 'R' Us is entering their first year of operation. A comprehensive marketing plan is required to reach profitability and ensure future success. Belts 'R' Us offers an unprecedented selection of current fashions. 2.1. Market Needs Belts 'R' Us is providing the market with a wide range of fashionable belts with an unprecedented selection. Currently, students must travel up to Mangalore in order to come close to approximating Belts 'R' Us's selection. Belts 'R' Us seeks to fulfill the following benefits that are important to their customers. Selection: The widest selection of fashionable belts in the Manipal area. Accessibility: The central location and wide range of business hours designed to accommodate all customers needs. Customer service: The patron will be impressed with the degree of care that they receive. Competitive pricing: All products will be priced competitive to the Manipal/Udupi market.
2.2. The Market Belts R Us is faced with the exciting opportunity of being the first-mover in the local belts & accessories market. The consistent popularity of belts, combined with the growing interest in fashion ability, has been proven to be a winning concept in other markets and will produce the same results here.
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Both markets for the Belts R Us service are growing at a relatively fast pace. We're faced with a large number of potential customers, and we're offering a needed service. Target Market Growth: University students continue to grow at nearly 11% Teens continue to play a major role in foot-traffic, growing at 9% Market Analysis Potential Customers Male Students Female Students Total Year 1 Year 2 Year 3 Growth 9% 12,457 13,578 14,800 8% 14,544 15,708 16,965 8.47% 27,001 29,286 31,765 Year 4 Year 5 CAGR 16,132 17,584 9.00% 18,322 19,788 8.00% 34,454 37,372 8.47%
Market Analysis 2.2.1. Market Demographics The profile for Belts 'R' Us customer consists of the following geographic, demographic, and behavior factors: Geographic The immediate geographic target is the city of Manipal with a population of 44,000. A 22 km radius is in need of the products. The total targeted population is estimated to be 27,000. Demographics Age range 23 - 50. 65% of the customers are Students. The students have a yearly average allowance of Rs. 60,000-Rs. 1,50,000.
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65% of the customers are men.
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Behavior Factors Fashion conscious. Tend to eat out at least once a week, typically more. Live the motto "fashion over function." Are always aware of the different fashion trends. Subscribe to, or at least read, several students magazines that are fashion orientated. Market Demographics Market Segments Male Students Female Students Gender .65 .35 Out of Area .95 .96 Avg. Annual Allowance 75000 92000 Focus Image & Climbing Social & High Profile Age 21-35 21-32
2.2.2. Market Trends The market trend for fashionable belts is toward a wider selection of common design elements. Over the last few years, there has been a proliferation of several design variations from a base design. A base design is released and then there are many different spurs that have common elements but include a few distinctive characteristics. While this is great for the customer because it allows them to be fashionable but distinctive, it is tough for most retailers because it increases their overhead in the form of inventory. This trend is ideal for Belts 'R' Us who has a business model that allows for stocking many different styles.
Market Analysis
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2.2.3. Market Growth The market for fashionable belts is a strong, steady growing market. It is generally not affected by economic downturns. Students seem to consume belts regardless of the economic climate. In a popular mini-series, a students habit of buying fashionable accessories was described as a release when they are feeling bad, a way to make them feel better, similar to eating chocolate. While this stereotype might not be entirely accurate, students love their accessories and cannot seem to get enough.
Market Analysis (C.A.G.R) 2.3. The Company Belts 'R' Us's mission is to provide Manipal with an upscale selection of belts and outstanding customer service. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. 2.3.1. Product Offering Belts 'R' Us sells upscale belts. The general categories of belts that will be sold are: Durable. Stylish work belts. Casual. Dress belts. Canvas athletic/stylish belts. Belts 'R' Us strives to have the largest selection of belts in Manipal, barring the larger stores in Udupi. Belts 'R' Us will accomplish this by having in stock one size per style as a demonstration model. Belts 'R' Us will then order within two days (rush one day service
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is available) the style in the needed size. This will be accomplished through a special relationship with the wholesaler who is able to send out on demand the right size in the right style. Often a wholesaler will be unwilling to ship out individual belts all the time. Belts 'R' Us was able to secure an exclusive arrangement with a particular wholesaler to meet our needs. Students generally care more about style then usability. This is evidenced by the fact that there are so many fancy, flashy belts that look incredibly un-functional. With this recognized, Belts 'R' Us will meet the customer's needs by providing an unmatched selection of student's fashion belts. The customers will truly appreciate the selection that will allow them to find the perfect belt to complement any outfit. 2.3.2. Positioning Belts R Us will position itself as the premier outlet for fashionable Belts, providing Manipal with the largest selection, rivaling some of the boutiques in Udupi. Belts R Us will leverage their competitive edge to achieve this desired positioning. Belts R Us' competitive edge is an unmatched selection in Manipal. This selection will be achieved in two ways. The first is a very specific effort to carry as many styles of belts as possible. Belts R Us recognizes that Manipal currently does not have a single store that offers a wide selection of decent quality belts for the fashion conscious student consumer. The competitive edge is the recognition of this un-served niche and the serving of this demand. Belts R Us will be able to offer a large selection through a unique inventory model that stocks a large number of styles with only one size per style. The advantage to this is that for the same amount of money that Belts R Us invests in overhead, they can offer far more styles. This model is effective because students will buy belts based on style. The way a belt fits is of little consequence if it looks good. For this reason students are willing to order a pair of belts sight seen but not fitted. Belts R Us offers two day delivery with an additional expense rush overnight option. 2.3.3. SWOT Analysis 1. Strengths a. Extremely strong relationships with Suppliers. b. Excellent staff who are well trained and customer attentive. They also get great discounts, increasing job satisfaction. c. An efficient, stylish retail store. 2. Weaknesses a. The struggle to build brand equity. b. The inability to provide instant gratification by having all sizes in stock. c. Forecasting fashion is difficult but necessary to profitability. 3. Opportunities a. A growing segment of the market that is increasingly bothered by having to travel to Mangalore for good belts.
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b. An industry that seems immune to recessions. c. The ability to operate on lean overhead relative to competitors. 4. Threats a. The introduction of a competitor to the Manipal market with a similar business model. b. Completely misjudging where fashion is headed. c. Constant delays in the shipment of product or the unavailability of many of the advertised designs. 2.4. Competition
2.4.1. Direct Competition Belts R Us has three direct competitors in Manipal: 1. (Name omitted): This is a students only clothing and shoe store. They have a nice selection of clothing but a poor selection of belts. The shoe styles tend not to be cutting edge. The price point for the belt is Rs.300-Rs1200. 2. (Name omitted): This is a large, complete, department store. The store however, suffers from cluttered displays and a general sense of disorganization. Belts here are Rs.300-Rs.1200. 3. (Name omitted): This is a national franchise that only sells belts and Belts, for both men and students. This company will sell knock offs, belts just like name brands, but with their name on it. While this store has a huge selection, the quality of the belts leaves a lot to be desired. This is somewhat understandable as the belts typically sell for Rs.130-Rs.500. While the belts are often good copies of famous brand, the execution is sometimes off. Many of the belts that are made out of p-leather and look like they were dipped in wax, giving them a tacky appearance. The two major competitors in Udupi are: 1. (Name omitted): Mid- to high-end department store known for their outstanding customer service. The belt price point is Rs.600-Rs.3000. 2. (Name omitted): This department store caters to the high class, older crowd. Belts range from Rs.750-Rs.4000. The buying habits for fashion-conscious students consist of typically buying at least one belt per three months. Students generally purchase a belt to go with a specific dress. Once the student purchases the dress they will then begin the long search for the perfect pair of shoes and belts that complements the ensemble. Growth and Share Competitor C1 C2 C3 Price Rs.600 Rs.600 Rs.750 Growth Rate 11% 9% 3% Market Share 17% 13% 23%
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C4 C5 Rs.1,800 Rs.2,530 14% 8%
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20% 7%
Average Rs.1,256.00 Total Rs.6,280.00 Growth and Market Share Table
9.00% 45.00%
16.00% 80.00%
Competitor by Growth and Share 2.4.2. Indirect Competition An indirect competitor is a shoe smith that will dye belts. The belts are typically dyed to match a specific dress. Not all colors can be dyed, and dying in general is not the ideal situation. Dying belts creates a new belt color that is acceptable only 20% of the time. 3. Marketing Strategy Manipal has a seasonal student population of around 24,700. The company expects to reach students through campus activities and marketing, as well as by sponsoring special student events. 3.1. Value Proposition Belts R Us sells more than belts, we sell a personalized and unique complement for your dress. Belts R Us helps you revive your look and your fun experience 3.2. Target Market Strategy
Belts 'R' Us is targeting two population segments within the broad category of the fashion conscious students with disposable income.
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PGP 1 section 2
1. Male Students: these are full time studying men. They typically get an allowance of more than Rs.45,000 p.a. themselves. They will purchase belts for the collage as well as for leisure time. This group is being targeted as they study full time and therefore have the need for many different pairs of belts for all of their different outfits. They also have the money to spend on belts and will take advantage of this reality as students typically love to collect lots of belts. 2. Female Students: this segment has plenty of disposable income because of their lower spending habits on other things (relatively much lower spending on alcohol, dinning out etc). These students love belts, and spend fair amounts of time shopping for belts and clothing. The average allowance of this group is Rs.60kRs.150k p.a., generally toward the higher end of this range. This group is attractive because they have the money and the time to shop for belts. With both money and time, there is no limit to the number of cool belts that they would like to own. 3.3. Critical Issues Belts R Us is still in the speculative stages as a retail store. Its critical issues are to continue to take a modest fiscal approach; expand at a reasonable rate, not for the sake of expansion in itself, but because it is fiscally prudent to. 3.4. Financial Objectives 1. To always maintain a minimum cash balance of Rs.1,00,000. 2. To maintain year-end minimum contribution margins of 40%. 3. To grow direct retail sales by a conservative minimum of 12% per year. 4. To achieve sales of Rs.19,00,000 in year one. 4.1. Marketing Objectives 1. Increase repeat customers by 7% per quarter. 2. Decrease customer acquisition costs by 8% per year. 3. Build an effective pull campaign, bringing in new customers at an increased rate of 9% per quarter. Part of Belts 'R' Us's marketing strategy will be based solely on location. Belts 'R' Us is located on a busy road that receives abundant walk-through traffic. This location will cost a premium and will not be directly linked to the marketing budget as rent has been categorized under general overhead. Another form of marketing to be described later in detail will be advertising. The strategy of the marketing campaign is to increase the target customer's awareness of Belts 'R' Us. 4.2. Messaging Belts R Us' marketing strategy will seek to create customer awareness regarding the products that they offer, develop the customer base, and work toward building customer loyalty and referrals.
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The message that Belts R Us will seek to communicate is that they offer the largest selection of fashionable belts in Manipal. Students no longer need to travel to Mangalore to find nice belts. The first method that Belts R Us will use to communicate this is location. Belts R Us has chosen an upscale, trendy shop that receives a lot of walk through traffic. This generates large amounts of visibility for Belts R Us. Another method of communication is advertisements in Manipal's weekly students newspaper. The advertisements will be placed in the weekly fashion section whose readership is primarily students. The last method of communication will be through a strategic relationship Belts R Us will develop with one of the upscale students clothes stores. The two stores will be co-branding their products as clothes and belts are intuitively linked. Often belts are purchased to go with the new outfit. The strategic alliances will be used to acquaint customers of the trendy clothes stores with Belts R Us as the customer demographics are quite similar. The alliances will include discounts when both belts and clothing are purchased as well as display some of each company's products at the other store. These activities are all designed to develop visibility on behalf of the marketing plan. Target Market Messaging Market Segments Male Students Female Students Messaging Get out and play! New friends, new opportunities!
4.3. Strategy Our strategy is to focus on our main area of expertise. We have plenty of competition in local marketing and in product introduction expertise, but nobody can match us when we stay focused on introducing a quality product into student markets. Our tactics to make this real? First, the quality of work. Second, expertise-based marketing. Third, we rest on heavy use of the newest technologies in international communications. In the employee room, large banners ask employees: What do we want customers to think of us? Why are you here? You are an owner, what is your plan? Why do our customers keep coming back? Employees are on the front lines every day, and the goal will be to instill a sense of simplicity and focus in their everyday actions. If employees are not happy with how the company treats them, that negative energy will be transferred to customers. The company will not always have control over customers, and their reactions to mistakes (which are inevitable), but does have control over how employees deal with mistakes and with the customers.
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PGP 1 section 2
This strategy will play itself out through fast service, great customer service, upbeat and friendly presentation. By keeping it simple, the strategy won't produce a lot of "noise" for customers and employees, and all goals will be met. Advertising strategy will focus on special offers provided through various tie-ups and businesses, and special offers targeted towards building a larger base of return customers. 5. Marketing Mix Belts R Us marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing: Belts R Us pricing is designed to be competitive to the other fashion shoe retailers. Distribution: All belts will be distributed to Belts R Us store front. While this will necessitate a second trip for the customer to come and pick up the belts, it allows Passion Strive to offer a much wider selection than any of the competition. Advertising and Promotion: Location, targeted advertising in the newspaper and strategic alliances will serve as the foundation of Belts R Us advertising and promotion effort. Customer Service: Exceeding customer's expectations is the company's mission. 5.1. Pricing Our pricing needs to match our positioning. We cannot be cheap or economical; we must be at the high end of the pricing scale, job for job, project for project. We aim to be 25% more expensive than similar products for continued profitability. Price List Item Durable. Stylish work belts. Casual. Dress belts. Description Heavy leather belts for jeans Stylish slim leather belts Casual Belts, maybe canvas Formal Belts for Women Per Unit Price Rs.1100 Rs.1100 Rs.1100 Rs.1100
We would have like to have to some control over final pricing.
5.2. Promotion Our promotion strategy focuses heavily on Public Relations, with very little or no emphasis on advertising or direct marketing. 5.3. Service Our service goals are simple and easy to maintain. We will make plain our policy that we do not accept returns or exchanges without receipt and proof of product failure. We are in this to make money, as a business, and cannot afford to give our value to free riders or people with 'buyer's remorse', who choose not to take responsibility for their purchase(s).
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5.4. Implementation Schedule We will be tracking plan-vs.-actual results for each of these programs and discussing them at our monthly marketing meetings. The programs will be revised each year. This year's plan includes only the programs to be implemented this year.
6. Financials Our marketing plan requires annual revenues of Rs.1,600,000 for this year. We anticipate that we will have revenues of more than Rs.2,500,000 within 5 years. Our marketing expenses will equate to an average of 2.5% of total sales throughout. The marketing plan is based on these three parameters: Increasing our efficiencies through better use of our facilities and expertise. Variable costs will be reduced, as we are able to make use of the capital investment we have in our systems. We will invest in these systems with the expectation that we will benefit as we have in the past from their capabilities. It provides us a competitive edge many of our competitors cannot afford. We will continue to invest in marketing activities based on a percent of total revenues. As our revenues increase, so will our marketing resources. We will forecast and track revenues on a detail basis to provide objective feedback regarding progress in the areas of industry expertise, specialization, and client revenue sources by type. 6.1. Break-even Analysis The break-even analysis is based on running costs, the "burn rate" costs incurred to keep the business running, not on theoretical fixed costs that would be relevant only if Belts R Us closes. The assumptions in average unit sales and average cost per belt depend on averaging. Belts R Us does not really need to calculate an exact average because this is sufficiently close to help Belts R Us to understand what the real break-even point will be.
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Fixed Costs Cost Rent or Lease Professional Services Payroll Interest Payments Utilities & Telephone Non-discretionary Marketing Expenses Other Total Fixed Costs Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost $46,154
PGP 1 section 2
Rs.9,500 Rs.1,000 Rs.30,000 Taken into consideration in Payback schedule: Appendix 2 $3,000 $2,500 $1,000 $42,000
9% $42,000
$40,000 $30,000 $20,000 $10,000 $0 ($10,000) ($20,000) ($30,000) ($40,000) ($50,000) $0 $16,000 $32,000 $48,000 $64,000 $80,000
Monthly break-even point
Break-even point = where line intersects with 0
Break-even Analysis 6.2. Sales Forecast There will be no sales activity during the first month. The second month will begin to see sales activity and it is forecasted that around month four sales will pick up.
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*An actual sales forecast table proved too complicated for the scope of this project. 6.3.
Year1 Year2 Year3 Year4 Year5
Loan Repayment schedule

EMIPayment INR119,326.00 INR119,326.00 INR119,326.00 INR119,326.00 INR119,326.00 Interest INR60,000.00 INR51,101.00 INR40,867.00 INR29,098.00 INR15,564.00 PrincipleRepayment INR59,326.00 INR68,225.00 INR78,459.00 INR90,228.00 INR103,762.00 BalanceLoan INR340,674.00 INR272,449.00 INR193,990.00 INR103,762.00 INR
400,000.00 350,000.00 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 0.00 Year1 Year2 Year3 Year4 Year5
EMIPayment Interest PrincipleRepayment BalanceLoan
700,000.00 600,000.00 500,000.00 400,000.00 300,000.00 200,000.00 100,000.00 0.00 Year1 Year2 Year3 Year4 Year5 BalanceLoan PrincipleRepayment Interest EMIPayment
6.4. Contribution Margin The contribution margin should increase steadily during the five year plan period, because of two factors: The cost of sales goes down as we develop the business and grow. Risk goes up with the increased fixed costs, but the margins go up too, because cost of sales is less. Our sales and marketing expenses will stabilize. We don't expect to decrease the overall level of expenses, but they should decline in percentage terms as sales go up.
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Given both factors, we project our contribution margin to increase from 36% the first year, to 66% the last year.
Contribution Margin Sales Direct Costs of Goods Costs of Goods Year 1 Rs. 5,92,000.00 Rs. 1,59,000.00 Rs. 6,000.00 -----------$165,000 Year 2 Rs. 9,00,000.00 Rs. 1,56,000.00 Rs. 12,000.00 -----------$168,000 Year 3 Rs. 11,50,000.00 Rs. 1,53,000.00 Rs. 25,000.00 -----------$178,000 Year 4 Rs. 15,00,000.00 Rs. 1,52,000.00 Rs. 35,000.00 -----------$187,500 Year 5 Rs. 18,25,000.00 Rs. 1,62,000.00 Rs. 50,000.00 -----------Rs. 2,12,000.00 Rs. 16,13,000.00 88.38% Rs. 2,010.00 Rs. 1,00,000.00 Rs. 30,000.00 Rs. 65,000.00 Rs. 1,00,000.00 Rs. 41,500.00 Rs. 60,000.00 -----------Rs. 3,96,500.00 21.73% Rs. 12,16,500.00 66.66%
Cost of Goods Sold
Gross Margin Gross Margin % Marketing Expense Budget Name me Name me Other
$427,000 72.13% Rs. 2,006.00 Rs. 57,000.00 Rs. 10,500.00 Rs. 40,000.00 Rs. 45,000.00 Rs. 30,100.00 Rs. 12,000.00 -----------Rs. 1,94,600.00 32.87%
$1,312,500 87.50% Rs. 2,009.00 Rs. 90,000.00 Rs. 25,000.00 Rs. 60,000.00 Rs. 75,000.00 Rs. 35,000.00 Rs. 50,000.00 -----------Rs. 3,35,000.00 22.33% Rs. 9,77,500.00 65.17%
Total Sales and Marketing Expenses Percent of Sales
Contribution Margin Contribution Margin / Sales
Rs. Rs. Rs. 2,32,400.00 4,87,500.00 6,80,500.00 39.26% 54.17% 59.17% Contribution Margin Monthly
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7. Controls The control environment will be a result of monthly employee meetings during which we will discuss the current marketing activities, sales, promotional activities, and ideas that will lead to improvement. Marketing ideas have little value until they are implemented, and they must be implemented by individuals who believe in them 100%. Through these monthly meetings everyone should feel vested in the decision making process, and in the long-term success of the company. 7.1. Implementation The purpose of Belts R Us' marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance: Revenue: monthly and annual. Expenses: monthly and annual. Repeat business. Customer satisfaction.
Campaign Details Flyers Total Impressions Total Program Cost Response Rate Conversion Rate Average Customer Purchase Response Total Responders Total Buyers Revenue Generated Costs Cost per Response Cost per Sale Total Campaign Profit Marketing ROI 4,500 Rs.46,000.00 46.00% 29.00% Rs.1,200.00 Billboards 6,000 Rs.196,000.00 75.00% 21.00% Rs.1,200.00
2,070 600 Rs.7,20,360.00
4,500 945 Rs.11,34,000.00
Rs.22.22 $76.63 Rs.6,74,360.00 1466.00%
Rs.43.56 Rs.207.41 Rs.9,38,000.00 478.57%
7.2. Market Research During the initial phases of the marketing plan development, several focus groups were carried out to help gain insight of their decision-making processes as they relate to belt purchases.
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An additional source of market research is a comprehensive survey that has been distributed to an upscale students clothes retailer's customers. A MBA post graduate student with a background in pure mathematics was employed in the development of the survey ensuring the survey was statistically significant and relevant. 7.3. Contingency Planning
1. Difficulties and risks: 1.1. Problems reaching the break-even point due to lack-luster sales. 1.2. A break down in the just in time (JIT) business model. 1.3. Consumers who are unwilling to wait a day or two to get their belts. 2. Worst cast risks may include: 2.1. Determining that the business cannot support itself on an ongoing basis. 2.2. Having to liquidate equipment/inventory to cover liabilities. 7.4. Marketing Organization We are a small company where sales and marketing consist of two to three people. Kalyan Deep Ray will lead and implement the marketing programs, while parttime employees will carry out many of the tasks. The marketing organization is very informal, but tightly managed, with clear obtainable goals, and a thorough list of deadlines. Details are very important to the implementation of our marketing plan, the most important being those that are unseen. Marketing will do its very best to plan for the unforeseeable.
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Appendix
8. Appendix 8.1. Contribution Margin 2006 Rs. 5,92,000.00 Rs. 1,59,000.00 Rs. 6,000.00 -----------$165,000 2007 Rs. 9,00,000.00 Rs. 1,56,000.00 Rs. 12,000.00 -----------$168,000 2008 Rs. 11,50,000.00 Rs. 1,53,000.00 Rs. 25,000.00 -----------$178,000 2009 Rs. 15,00,000.00 Rs. 1,52,000.00 Rs. 35,000.00 -----------$187,500 2010 Rs. 18,25,000.00 Rs. 1,62,000.00 Rs. 50,000.00 -----------Rs. 2,12,000.00 Rs. 16,13,000.00 88.38% Rs. 2,010.00 Rs. 1,00,000.00 Rs. 30,000.00 Rs. 65,000.00 Rs. 1,00,000.00 Rs. 41,500.00 Rs.
Contribution Margin Sales Direct Cost of Sales Costs of Sales
Total Cost of Sales
Gross Margin Gross Margin % Marketing Expense Budget Advertising Graphics and Printing Public Relations Travel Website Expenses Other
$427,000 72.13% Rs. 2,006.00 Rs. 57,000.00 Rs. 10,500.00 Rs. 40,000.00 Rs. 45,000.00 Rs. 30,100.00 Rs.
$732,000 81.33% Rs. 2,007.00 Rs. 65,000.00 Rs. 15,000.00 Rs. 50,000.00 Rs. 55,000.00 Rs. 34,500.00 Rs.
$972,000 84.52% Rs. 2,008.00 Rs. 75,000.00 Rs. 20,000.00 Rs. 55,000.00 Rs. 60,000.00 Rs. 41,500.00 Rs.
$1,312,500 87.50% Rs. 2,009.00 Rs. 90,000.00 Rs. 25,000.00 Rs. 60,000.00 Rs. 75,000.00 Rs. 35,000.00 Rs.
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Appendix
12,000.00 -----------Total Sales and Marketing Expenses Rs. 1,94,600.00 Contribution Margin Contribution Margin / Sales Rs. 2,32,400.00 39.26% 25,000.00 -----------Rs. 2,44,500.00 Rs. 4,87,500.00 54.17% 40,000.00 -----------Rs. 2,91,500.00 Rs. 6,80,500.00 59.17% 50,000.00 -----------Rs. 3,35,000.00 Rs. 9,77,500.00 65.17% 60,000.00 -----------Rs. 3,96,500.00 Rs. 12,16,500.00 66.66%
8.2.
Year1 Year2 Year3 Year4 Year5
Loan repayments Scheduling

EMIPayment INR119,326.00 INR119,326.00 INR119,326.00 INR119,326.00 INR119,326.00 Interest INR60,000.00 INR51,101.00 INR40,867.00 INR29,098.00 INR15,564.00 PrincipleRepayment INR59,326.00 INR68,225.00 INR78,459.00 INR90,228.00 INR103,762.00 BalanceLoan INR340,674.00 INR272,449.00 INR193,990.00 INR103,762.00 INR
Page 18
Appendix
References
1. 2. 3. http://www.mplans.com/womens_shoe_store_marketing_plan/situation_analysis_fc.php http://www.mplans.com/ http://freeworking.hubpages.com/hub/EXCEL-BASED-CALCULATOR-FOR-LOAN-EMI
Page 19

The Marketing Plan - j1 - Belts 'R' Us

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BeltsRUS

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

Average Rs.1,256.00 Total Rs.6,280.00 Growth and Market Share Table

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

We would have like to have to some control over final pricing.

Group J1 - Belts 'R' Us

Group J1 - Belts 'R' Us

Monthly break-even point

Break-even point = where line intersects with 0

Group J1 - Belts 'R' Us

Loan Repayment schedule

EMIPayment Interest PrincipleRepayment BalanceLoan

Group J1 - Belts 'R' Us

Cost of Goods Sold

Total Sales and Marketing Expenses Percent of Sales

Contribution Margin Contribution Margin / Sales

Group J1 - Belts 'R' Us

2,070 600 Rs.7,20,360.00

4,500 945 Rs.11,34,000.00

Rs.22.22 $76.63 Rs.6,74,360.00 1466.00%

Rs.43.56 Rs.207.41 Rs.9,38,000.00 478.57%

Group J1 - Belts 'R' Us

Contribution Margin Sales Direct Cost of Sales Costs of Sales

Total Cost of Sales

Loan repayments Scheduling

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