NIDEPENIDENT CHOICE FLICKS January 2001 This sample marketing plan has been made available to users of Marketing Plan Prom marketing planning software published by Palo Alto Software. Names, locations and numbers may have been changed and substantial portions of text may have been omitted from the original plan to preserve confidentiality and proprietary information You are welcome to use this plan as a starting point to create your own but you do not have permission to reproduce publish distribute or even copy this plan as it exists here equests for reprints academic use, and other dissemination of this sample plan should be emailedtothemarketingdepartmentofPaloAltoSoftwareatmarketing@paloalto.com.For productinformationvisitourWebsitewww.paloalto.comorcall1-800-229-7526 Copyright Palo Alto Software, Inc. 1995-2002
January 2001 This sample marketing plan has been made available to users of Marketing Plan Pro™, marketing planning software published by Palo Alto Software. Names, locations and numbers may have been changed, and substantial portions of text may have been omitted from the original plan to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at marketing@paloalto.com. For product information visit our Website: www.paloalto.com or call: 1-800-229-7526. Copyright Palo Alto Software, Inc., 1995-2002
Confidentiality Agreement The undersigned reader acknowledges that the information provided by in this marketing plan is confidential; therefore reader agrees not to disclose it without the express written permission of 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 Upon request this document is to be immediately returned to Signature or printed Date This is a marketing plan. It does not imply an offering of securities
Confidentiality Agreement The undersigned reader acknowledges that the information provided by _________________________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. 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 ________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities
Table of contents 1.0 Executive Summary 2.0 Situation Analysis 2.1 Market Summary 2.1.1 Market Demographics 2.1.2 Market Needs 2.1.3 The market and trends 2.1. 4 Market Growth 2. 2 SWOT Analysis 2.2.1 Strengths 2.2.2 Weaknesses 2.3 Competition and buying Patterns 2233455555666 2.4 Services 2.5 Keys to Success 2.6 Critical issues 3.0 Marketing Strategy 3.1 Mission 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Marketing 3.5 Positioning 3.6 Strategy Pyramids 3.7 Marketing mix 3.8 Marketing Research 4.0 Financials, Budgets, and Forecasts 4. 1 Break-even Analysis 8899991 ales forecast 4.3 Expense Forecast 5.0 Controls 5.1 Implementation Milestones 5.2 Marketing Organization 14 5.3 Contingency Planning
Table Of Contents 1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . 2 2.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1.3 The Market and Trends . . . . . . . . . . . . . . . . . . . . 3 2.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.3 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . 6 2.4 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.5 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.6 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.4 Target Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.5 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.6 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.7 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4.0 Financials, Budgets, and Forecasts . . . . . . . . . . . . . . . . . . . . . . . 9 4.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 4.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 5.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 5.1 Implementation Milestones . . . . . . . . . . . . . . . . . . . . . . . 13 5.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . . 14 5.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 14
Independant choice Flicks 1.0 Executive Summary Independent Choice Flicks(ICF)is an alternative video rental store located in Ann Arbor, MI. ICF will rent movies not often available from the larger chains: film festival movies, independent releases, foreign films and other arts" films Ann arbor clearly has the market for these types of films, as evidenced by the general demographics(liberal, educated, college town) and the popularity of the monarch Arts Cinema, a first run movie theatre concentrating on this same genre of movies This market has been ignored by the dominant stores in Ann Arbor. They may have a few films that fit these descriptions but in general they are far and few between It is too difficult for the large corporations to market to this specific segment particularly with their current business model which is putting a store in all cities that are very similar in feel and library with a concentration on large scale commercial releases Through the use of ICF's competitive advantage attention to customers it will grow steadily to profitability. This will be manifested in two ways, 1) providing outstanding customer service and knowledgeable help, and 2)supplying movies that have a demand in Ann arbor but have been previously ignored. the demand has yet to be addressed by the other players who leave it off their radar, assuming it is only for the fringe of the general population Fortunately, the fringe in Ann Arbor make up a large part of the general population here ICF will begin profita bility by month nine and will have projected profits of almost $32, 000 by year thre 2.0 Situation Analysis ICF has just begun their first year of operation. a comprehensive marketing plan will be instrumental in developing visibility to ensure future profitability. ICF offers a unique selection of artsy,non-commercial movie rentals. this selection differs considerably from the normal stock that Blockbuster would carry
1.0 Executive Summary Independent Choice Flicks (ICF) is an alternative video rental store located in Ann Arbor, MI. ICF will rent movies not often available from the larger chains: film festival movies, independent releases, foreign films and other "arts" films. Ann Arbor clearly has the market for these types of films, as evidenced by the general demographics (liberal, educated, college town) and the popularity of the Monarch Arts Cinema, a first run movie theatre concentrating on this same genre of movies. This market has been ignored by the dominant stores in Ann Arbor. They may have a few films that fit these descriptions, but in general they are far and few between. It is too difficult for the large corporations to market to this specific segment, particularly with their current business model which is putting a store in all cities that are very similar in feel and library, with a concentration on large scale commercial releases. Through the use of ICF's competitive advantage, attention to customers, it will grow steadily to profitability. This will be manifested in two ways, 1) providing outstanding customer service and knowledgeable help, and 2) supplying movies that have a demand in Ann Arbor but have been previously ignored. The demand has yet to be addressed by the other players who leave it off their radar, assuming it is only for the fringe of the general population. Fortunately, the fringe in Ann Arbor make up a large part of the general population here. ICF will begin profitability by month nine and will have projected profits of almost $32,000 by year three. 2.0 Situation Analysis ICF has just begun their first year of operation. A comprehensive marketing plan will be instrumental in developing visibility to ensure future profitability. ICF offers a unique selection of "artsy," non-commercial movie rentals. This selection differs considerably from the normal stock that Blockbuster would carry. Independant Choice Flicks Page 1
Independant choice Flicks 2.1 Market Summary ICF has collected good information about their market and knows a great deal of information about their archetype customer ICF will leverage this information to determine how to better communicate with and serve their customers Target Markets Under 30 Table 2.1: Target Market Forecast Target Market Forecast Potential Customers Under 30 幅娜游 12.00% 9.00% 10.70% 2.1.1 Market demographics The profile for the iCF customer consists of the following geographic, demographic, and behavior factors Geographics The immediate geographic target is the city of Ann Arbor with a population of 123,000 A 15 mile radius is in need of icfs services The total targeted population is estimated at 64, 500 Demographics Male and female Ages 18-55. This age range draws off a combination of university students and locals within the communit Have (or are getting) a college education and some with graduate degre An income over $40, 000(except the students who earn far less but have a decent amount
2.1 Market Summary ICF has collected good information about their market and knows a great deal of information about their archetype customer. ICF will leverage this information to determine how to better communicate with and serve their customers. Under 30 Over 30 Target Markets Table 2.1: Target Market Forecast Target Market Forecast Potential Customers Growth 2001 2002 2003 2004 2005 CAGR Under 30 12% 36,000 40,320 45,158 50,577 56,646 12.00% Over 30 9% 28,500 31,065 33,861 36,908 40,230 9.00% Total 10.70% 64,500 71,385 79,019 87,485 96,876 10.70% 2.1.1 Market Demographics The profile for the ICF customer consists of the following geographic, demographic, and behavior factors: Geographics • The immediate geographic target is the city of Ann Arbor with a population of 123,000. • A 15 mile radius is in need of ICF's services. • The total targeted population is estimated at 64,500. Demographics • Male and female. • Ages 18-55. This age range draws off a combination of university students and locals within the community. • Have (or are getting) a college education and some with graduate degrees. • An income over $40,000 (except the students who earn far less but have a decent amount Independant Choice Flicks Page 2