WORKSHOP AND

PREPARATION OF
MARKETING PLAN
CHAPTER 6
BRIEF OUTLINE OF A MINI-MARKETING PLAN
I. EXECUTIVE SUMMARY
II. STUDY BACKGROUND
A. Brief history of the company
B. Mission and vision
C. Product/service offerings
III. MACRO-ENVIRONMENTAL ANALYSIS
A. Economic
B. Politico-legal
C. Socio-cultural
D. Demographic
E. Technological
F. Natural
IV. OPPORTUNITIES AND THREATS
V. MICRO-ENVIRONMENTAL ANALYSIS
A. The company
B. Supplies
C. Marketing intermediaries
D. Customers
E. Competitions
F. Publics
VI. STRENGHTS AND WEAKNESSES
VII. MARKET
A. Market size
B. Market needs
C. Market trends
VIII. MARKETING OBJECTIVES
IX. MARKETING STRATEGIES
A. Product/service strategy
1. Target market
2. Brand positioning
B. Pricing strategy
C. Distribution strategy
D. Advertising and promotions strategy
X. TACTICAL IMPLEMENTATION
XI. MARKETING BUDGET
XII. FEEDBACK AND CONTROL
XIII. FINANCIAL PROJECTIONS
 I. EXECUTIVE SUMMARY
• Presents, in a very concise manner, vital information contained in the
marketing plan such as its marketing objectives, strategy
recommendations, marketing budget, project sales, and profitability.
• A well-written executive summary is usually no longer than two
pages.
• A summary of the significant points and figures contained in the
marketing plan
• Can only be composed after the marketing plan is completed.
 II. STUDY BACKGROUND
Brief history of the company
As the starting point for your paper, select a product brand. Identify its manufacturer and write a
brief history of this company. Most companies’ historical background can be found on the Internet.
Whenever you use material from the Internet, always cite your source.

Mission and vision

Research on the company’s mission and vision through the Internet. These statements can give you
a vital information on its business philosophy and long-term direction.

Product/service offerings
List down the company’s current product offerings, classifying them by type (hair care, personal
care, home care, etc.) and also indicate their suggested retail prices (SRP). This product listing can
determine the specific role your selected product brand plays in the company’s entire product
offering or product portfolio
 III. MACOECONOMIC ANALYSIS
Make an assessment of each company's six micro-environments.
Get the latest data possible. A marketing plan of a particular product is
a plan of action for the future and is intended to be implemented in the
coming year. It is, therefore, important that after accessing current
information, secure also authoritative information on how the figures
may look like the following year. Since the marketing plan is to be
implemented a year after, it is the following year's macroeconomic
environment that the product will have to content with.
(a) Economic
Latest economic data is projected. Inflation rate and peso-dollar exchange
rates are usually critical in determining future cost, price, and consumer
purchasing power. Gross Domestic Product(GDP)can indicate the general
business environment in the coming year.
(b) Politico-Legal
The political macro-environment is assessed. Unless there is obvious political
instability, there is no need to project political environment. An exception
would be a national election, which may cause the economic and business
climate to change dramatically. Bills currently pending in the Senate or in
Congress that may enacted into law in the coming year should be
considered.
(c) Socio Cultural
Identify relevant socio-cultural factors that may affect the manner of how the selected
brand will be marked. There may,however be no possible change in coming years becausw
socio-cultural factors take years,if not generations,to change.

(d) Demographic
Based on the target market,cite current and relevant figures that may affect the
marketability of the product. Therefore,if thetafget market is "female residents of Metro
Manila between the ages of 18 and 25,who are career-oriented,"determining the
population of Metro Manila, the gender mix of the population, and the distribution of the
population by age are all relevant to your brand's marketability. As discussed in Chapter 3,
although psychographic segmentation ("who are career-oriented") is important in
determining consumer behavior, there is little to no Philippine population psychographic
information available on the Internet. Because it takes many years before demographic
trends to change substantially, there is no need to project demographic data required.
(e) Technological
Depending on the industry, identify relevant technological developments
that may favorably of unfavorably affect the chosen brand. This may include,
for example, a new production process which the company can adopt to
reduce manufacturing costs, or an innovative type of packaging, the patent
of which may be owned by one of the competitors.

(f) Natural
A thorough analysis of the natural macro-environment is undertaken in this
section: pollution, global warming, and "acts of God", among others. There is
no need to project this into the marketing plan's implementation phase,
however, because there issues are not volatile over the short-term period.
 IV. OPPORTUNITIES AND THREATS
• Enumerate identified opportunities and threats from the macro-
environmental analysis. Arrange them chronologically. Relate them
directly to a specific macro environmental factor and justify why they
are classified as opportunities or threats.

Example: Inflation rate as of the end of 2015 is 3.2% and is

expected to increase to 3.7% in 2017. This may result in
reduction in consumer demand.
 V. MICRO-ENVIRONMENTAL ANALYSIS
• • The six micro-environmental factors are assessed and evaluated.
Because the micro-environment is not expected to change
dramatically over the short-term, it is largely unnecessary to project
the situation to the following year. The only aspect which may
situationally require projection is the competitive situation. It may
possible that there is public knowledge of the entry of a new
competitor that may affect the industry's competitive landscape.
a) THE COMPANY
The company is evaluated in terms of organizational ability to implement marketing strategies. The
relationship among functional areas must be evaluated to determine if there are bottlenecks in decision-
making, and if other functional department arw supportive of the marketing. It would also be helpful to look at
the latest company income statement to evaluate the company's cost structure. Financial statement are
available from the Securities and Exchange Commission.

b) SUPPLIERS
In this section, the relationship between the company and its suppliers is assessed. This is specially for
suppliers involved in the supply of raw materials vital product manufacturing. Any opportunities to improve the
company's supply chain should also be investigated with the objective of reducing product cost and increasing
value to customers.

c) MARKETING INTERMEDIARIES
The company's distribution network is illustrated in this section. The choice of distribution type is reviewed and
possible improvements in intermediary relationships is determined.
d) CUSTOMERS
In this section of marketing plan,identification of geographic,demographic,and
psychographic profile of the brand's typical customer is expected. The buying
behavior should be explained and understood,e.g why they buy,where they
buy,how frequently they buy,and how they used your product.
e) COMPETITION
This is where tha brand competitors and the companies that manufacture them are
identified. If necessary,draw a perceptual map to identify the closest competitors.
Identift also the relative positions of the different competing brands(including your
own) in terms of market place.
f) PUBLICS
Evaluate the company's relationship with its publics:corporate stakeholders,the
community,financial institutions,media,and society as a whole. This can prevent
any future need for the company to engage in public relations and publicity.
 VI. STRENGHTS AND WEAKNESSES
Enumerate the identified strengths and weaknesses from the
micro-environmental analysis. Arrange them chronologically. Relate
them directly to a specific micro-environmental factor and justify why
they are classified as strengths and weaknesses.
 VII. THE MARKET
• Market size
• Show the size of your market. The total market is the sum total of the group of individual or
organizational consumers who have both the willingness and financial capability to purchase
a particular product or service. Some industries have their total market size published in
Euromonitor. If you can identify your competitors, simply add the total sales of all different
brands to arrive at the market size . If this information is not available, you may need to
conduct interviews or surveys to determine purchase size,frequency of purchase,and average
price paid. When this is combined with market population data, you will arrive at market size.
Market size is expressed eithr in units or in value (pesos).
• Market needs
• Know your market intimately to be able to serve its needs. Understand and exlress what
exactly the market is looking for in the product that you are offering. Describe the market’s
needs and wants and its value perceptions of various product/service attributes.
• Market trends
• Based on the historical trend, the segment or sub segment’s growth rate is projected over
the plan. period. Trends are also identified with respect to market needs and preferences and
subsequently projected.
 VIII. MARKETING OBJECTIVES
In this section, state the marketing objectives. Arrange the
objectives in sequence. Marketing objectives may include brand
awareness target and sales revenue objectives. They must be specific,
measurable, attainable, realistic and time-bound.
 IX. MARKETING STRATEGIES
In this chapter, marketing strategies are proposed based on a
thorough analysis of opportunities and threats, strengths and
weaknesses, and the market for the proposed product/service.
Strategies must collectively be able to achieve all marketing objectives.
A. Product/service strategy Product and service strategy should be fully
explained. Indicated any innovation you plan to implement in your
product or service, e.g change in packaging or label, supplements to
your service offering etc. Identify the value proposition or unique
selling proposition of the product/service.
 1. Target Market Describe in detail the target market of the product/service.
Use as many or as few segmentation variables as necessary to outline the
target market's geographic, demographic, and psychographic profile.
Quantify the size of the target market. If you plan to expand contract, or
totally change your brand's present target market, indicatethe changes and
justify it convincingly.
2. Brand Positioning State the current positioning of the brand/service. Fully
explain if you think it is still relevant for use. If revision is needed, state the
proposed alternative brand positioning. Fully justify the proposed brand
positioning and explain convincingly why it is more appropriate than the
current one. Remember that the positioning of your proposed
product/service must be unique, beneficial, and credible, and must revolve
around a product/service attribute that is relevant to the target market.
B. Pricing Strategy Based on the marketing objectives formulated, decide on a general pricing
strategy for the brand. It is possible to implement several pricing strategies for a brand during an
operating year. For example, a brand may have a general strategy of going-rate pricing but
implement promotional pricing during the last quater of the year.

C. Distribution strategy Review the brand's current distribution strategy to determine if it is still
applicable for the marketing plan's implementation period. When adjustment or modifications are
required, give recommendations as to how the selected brand can be distributed more efficiently.

D. Advertising and promoting strategy In this section, propose your advertising and promotion
strategy. Based on the advertising and promotional objectives and the target audience profile,
decide on the message creativity style vehicle and media you will utilize. Provide details of the
media And promotional plan including location of advertising placement their frequency and
approximate cost . Also indicate mechanics of the trade consumer promotion if any and their
corresponding costs . Select media carefully , giving consideration on cost-effectiveness .
 X. TACTICAL IMPLEMENTATION
Develop tactics of each strategy . Some strategies may only
required as little as two tactical plans , while others may need to be
supported buy 5 or more tactics . In essence, there is no precise
number of tactics per strategy. There should be as many tactics as
necessary to contribute to successful strategy implementation .
 MARKETING STRATEGY:MARKET
DEVELOPMENT
Tactics Operating details Timetable
Establish a warehouse in Cebu To accommodate store September 2017
merchandise support cebu
retail operation
Hire and train cebu store Hiring must be localized and September 2017
personnel extensive training undertaken
to maximize customer service

Append a retail outlet in cebu This is to take advantage of the October 2017
growing marketing in the
visayas
 XI. MARKETING BUDGET
In this chapter, indicate the total cost involved in the
implementation of the proposed marketing plan. Only third party
expenditures are to be included in the marketing budget. Capital
expenditures like retail outlet construction expenses and the purchase
of packaging machinery are excluded from the marketing budget.
 Marketing Budget 2017
Advertising expenses including the following: ₱ 10 600 000.00
Television ₱ 7 500 000.00
Radio ₱ 1 870 000.00
Newspaper ₱ 1 230 000.00
Leaflets 25 000.00
Point-of-purchase materials 220 000.00
Sales Promotions 650 000.00
Total ₱ 11 495 000.00
 XII. FEEDBACK AND CONTROL
The purpose of this section is to ensure that each of the tactics is
carried out as planned. There should be feedback and control write up
for each of your tactics. In paragraph form, discuss individual tactic
benchmarks or milestones to indicate that the tactic is implemented
according to plan. Corrective measure that can be taken to ensure
adherence to plan must developed, e.g. reporting procedures and
forms. Coordination among parties, and accountabilities.
 XIII. FINANCIAL PROJECTIONS
At this point, present the financial viability of your proposed marketing plan.
The latest available incoming statement of your company can be used. Begin by
amount to the average historical sales of the company. The sum is the total sales generated
for the year. Using the same percentage of cost of sales from the latest available income
statement, deduct the percentage amount from the total sales to obtain the grow profit.
Then, add your marketing budget to the average historical operating expense. Subtract the
sum from the gross profit. The difference is your income before tax (gross income). Deduct
income tax (currently at 30% of income before income tax for corporations) from the gross
income. The resulting amount is your income after tax (net income)
If latest income statements is not available, you can prepare a projected income
statement using the incremental method. Simply calculate the additional sales that brand
can realize as a result of the proposed marketing plan. Use a competitor’s historical income
statement to determine percentage cost of sales. Because the competitor manufactures a
similar product, its cost should be similar to yours. Apply this percentage to your
incremental gross profit. Deduct your marketing budget from your incremental gross profit
to determine your incremental income before income tax. Deduct incremental income tax
(currently at 3-% of income before income tax for corporations ) to arrive at your
incremental income after income tax.