ilev

Mpte[sping frffi Hffiectlve

A-1

.r-il.i f kr=t i * g i= i,+si

Detailed description of the

resources and actions needed

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.

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

much nroney tlre conrparry

expects to earr't,

the questions addressr(l by a:itiii'ri*i:iiri i:i;::,-i-a detaiIed

res0urr.es and artions needed to achieve statecJ rnarketing,' r ll ,i t, ,' ', 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

f;NMPNNHNTS ffiF fi H}LJffiINHSS PLFINr\ .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 rvritingrvlrlrt ,tll ol tllq',-,,"r',''rrrs olrjr:r'titr',,.rr,r. lr.rrr tlrc'l'iiiil br rnt:t, h,iu'the business..vili obtain irinanc-irrg..rrrtl lt,rl'nrrrclr nl()il(\r tlic,,'rnqran','(trI)cLl\ to (r:rnr ovc'r a sPeciliccl tirne period. Althtltigh busi-tttss 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 lrricl)r inrs\^/(-ts rh,:. rt'i,,,, t,'/t,ti, u,lttn, tt,lsrrt. how, 'rttil ilil,clttestions tortlr,. 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 thclitttti r'rtt.ttril,, lr,,r','*'tl.r'ti,,rrr ilr. ,lct,iils r'tf rtll tirr rrtlt,rt s,:ttiotts.

' h (otilf)(titit'( tt)till.vsi\ 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:.

" Iht tttitirtu \lttlt'iii('itl. silntnrilriir. iltr oril,;r-trtrittiriirs irrl'l)osc, r'isjotr, ;rtrti ,,'"ciliii g':,ltis I ltt,s

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

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

I lr, I nrt I /',;t'l i u,(,,,tti'tt il. u'[ri,. lr,.i,,(f lt. r:, to,ls ;lttt l ,r t vit r s olli'n'rlIt'l,tt iun',lti1',','\i tlit,'lr,l ol rlri.,is 1rr('\('tlIi't|.

1 ,llr rts t hlt i.rt tr.r(.ti r g,)als itlltI st l.atcgics

i r iclr tclc r lrr: ti,ll, rr,*,i n gl:

itrfot'nring, potcrrtial cLrsrorr)ers abe111

;t\ su,ltcHics irlr clcve [opirru lt'trrg rcirnt

nlar[(cling pIarr itrr ]llr.rt' Sk1' (,lorhing

A-2

"A torporaIion is a livirrr;

orq;rrtisnt; if lr,ls to cor.ttinutl 1o

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

cltanqe Fo':1r., h.li lri rlrarrr;r'

Valrres lr,tvo to rttanr;r llrr:

slrrrr tot,rl cf tlrosrt r lranqes; ir,

Iransfor lnatiolr,"

--Andy Grove

, r, i lt litti( 'ullttl,.)t;il, !( lt l,

Ittli l, t lt'tlttll:)]t

i-r'i,.:l

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

Outline of a BusinesrPlan

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.

.,'llrc /,rudut'tiort plitn, rvhich describes how the organization wi[ tlevelop its products in thernosr cf{icierrt, cost-e f}'ective ntanner possiblc,

,, 'l1rc,/adlitics phn. which.descr:ibes the physical environment and equiprnent required toiniplcrrrcnr t he pr:odrrction plan.

"'lhe ltuttan rcloilrces plan, which estitnate.s thc firm's emplo.vment neecls artl the skillsn('Lcssiu), to uclricve olsatriz.ation:rl goals, inch-rding a conrp:rrison of current ernployeesu'ith thc trcccls- ri{: the firtn, anc{ which estahlishes processes fol secrrring aciequately trainedpt:rsoirrrcl if a elp c'xists beF,r'ecn current enrployee skill,s and future neecls.

'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---orir (-()r)rl)irr;rtio,,-',1rh,,.,,,r,1r.,,r.n,, dc.scriherrl h.r..,"= iikely to "jir.*, in its overall business plan.l{,r11ardlcss of thc siz.r'or lontlevityof a conrpanv, a brrsiness plan is an cssential tool fbr a fllnr's ou,n-cr\[)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 fbrIllrrt' Sl<v (,krrhirr8,.

ffiFIHFITINffi FI

MFIFII{ETING PLFIN

'l'hc Illrrt' .Sh1, (ilothi ng

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 nrlrrket-

ing plan o{icn rlr'urvs lrorn the btrsiness platr,restatiug thc exer-Lltive sunrlnar)/' cornpetiriveanalvsis, anc[ rnission statement tr) givr: itsrcaclers an over:lll rrinv of thc ftirnr.

.l-lre nlar-

ke tine., plan is trecdec{ for a \rarietJ' ot- reasons:

' 'Ib olrraitr li nanc.irlg, Llecause banks andnrc)sr private investclrs reqLrire l-l tlc:tailcdLrus in rrss p lan--- inclucling a rruLrke ting plan

conlponent--befole thel' wiil evcn con-

::*:Jj::: iurplicirtion or a ver-trrre car)ital

" -li-l

[)rc)vide clirection firr tlre lirnr's c)ve ralI

bLrsi ncss an(l nlarketinq su'ategies

' "lb suppor t the rlevcloprne nt of long- ;rnd

shor r-tenn ()rganizutiorurl obje, tivr,:s

' -l o quir{e e n-rploye e s in aclr ie vinF thesc

obicctiyt:s

* -lb sctvr ;l,s a startdarcl ,rgainst'rvlrich rlrt: fit'rlr's

llrogl'ess (-rln tre tnetrsrircrl anc{ <:r,,aIrtatlccl

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

Iilnr pr.rts irrto rvriting its cr-''rnu'iittrtent t<-r irs

ru.sfonrcr \^ an(l ro builctirrg long.-lastirrg t'c[a-

rir-rnsirip,s. .\fte'r creatirrg art.[ irirplt:rnenring

' '$ i,,r, $,,ir,rr. \\'lrrrr. \I,lr. i,, I Io r

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

lll. Irrtrrrrlutliorr

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

. ( ,rrrr, ( l)t iilrti (,'rtrtlrl,l',,

. A,l ;rt r,r1,.'.'r,rt:ltt I t:lttrt

. f rl,rrlrli

t

I \/. Marlrr:tirr g !it ratcly

' I)t"t"t1't'rPlrics

.'licrrrl,,

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

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

\'. lrintrrcirtg thr: llllsirrcrs

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

. l'r,r l'(l{rtiit ilrtlalltt'irllr t'r,

. llrr rrttlr''rlli,,',,t,1,,,

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

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

'l'tltllll,1)t'tlt

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

, l'rrrl,l,t! trr,'{rr l'.1..',.'<.ls rrrr! liL,iil.;

" ( tlr;r,lri l'rrr1llt,rr, t

\'lll. ltt:surrrris ,rlt f trirrriplls

Illan

t lrc plru r, r));u l<ctcrs r)) r.tst lccvrrlLtatcl ir-

lou';lrrl it'r q1r'rls" lf't ll;lnrlcs ;lrc ttccdcrl,

i'i,ltl

pcrioclicallv to saugc its strccess in nroving tlre orqzurizatiorrt[rc\' .slroLrlc[ be nr:rc[c as soon as possible.

A-3

"A strateqy delineates a

territory irr wrhirh a (ontpany

serks to be unique."

--MichaeI PorterA. r n ? r t t i1 l, i r r,Jl l^, r ) (J e I ! ia f \ i n e O r i .< i

,':r1J t^11jfq1

sEligi:.{Lqii+t',.

:t,trti1'.si*. Grid that

organizes nurnerical

information in a standardized,

easily understood format,

FCIIIMI-II"ATII{ff AId OVERALL MARKETING STRATEGY .

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 I

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 '

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 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'lrirncegivtn spc<.ilicrl scts <tlrtircrulrst:luccs. I;tlr exalnple, a spreadsheet rnight projcct th,-'outcomes oFvari-rrtrs 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 detailsol tltc tu,ulittirrg srr:rtcgy'.'l'lrt: clclncnts of a nirrrl<eting srrateglr inclurk'iclentifl'itre the targctrtt;tt-l<r't, stu,lyirrg tlrt rrrrrrl<cting cnvironnrcnt, and creatinq a marketing r-nix. \X/ben rnlrkctershrrvt'itlt'rrtilir'tl tht't:ugct nrarlict. tlr.'y can dcveltrp tlrc oprimal nrarktting ruix rrl reirch rheirpotcrrt ilrl ( lr\r()nr(:rs:

' I'r'or/trcl \tttt/lqtt. t#lri.lr r:,r,,rtls arrti scrvices should ttrc ctrnrprany'cllfcr to tL-tcct its crrstonreLs'rrt t'tisi

. I )ist i lltrr trort

I)lotlrlt tsi

' l)t'tttttoltott,tl\\,ill rlrt'flrrrr

stt'tttt,1J,. I'lrr,)ush n,lrich rhar.rncl(s) ancl ph1'sical hr:ilitir,s \viJl thr: iirrn disrributc its

ilt'tu(',ql!. W'lt,'t trri;i ol advcrrising, salcs l)roJnotion, arlrl personal se Ilir)g acrirritit'slrs(' to t'c;rc'lr it\ cu,\tonre rs irritialli, :rnci thcrr develop long-rc]l'nt l'eiarionshilts?

l't'irrtt,tl :lt',tlt',,,11'. /\r rrlrlrt k'r,cl slrrtLrlcl thc conrp:uu'set its prices?

"Iailinq to plan rs planninq

lo fail"

wt#iltM

Appendix A l)F,.Eiopir,c an tflectivr [.iarke tirrr.] i-'la!l

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

Ilecausc thcse thrc.: clenretrts oFthc busiuess plan often reappear: in the marketing plan, it is usefulro 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 corl-pany's busincss plarr inclrr<lec{ rcfercnces to it.s straregic planning process {ilr its search senices, rvhichinvolvecl "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 imple-

nrerrrc-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-

ucrs, 'll'rra()'clcl lrusint,ss goal is to Lrc.-otrte the leading ecolrie,ndll'organic brantl in cach of thepro,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 tooutst:ll grcen competitors lr4rs, lr{eyers and Sr:venth Generation, but it is lc.ss conc.'rned about beat-ing \Windex. the c:rcegur;'lcader,'[bclay, r'llany of

-lerraCvcle'.s ecofriendly products are availalrle at

nra j o r rctai lcrs l i kc'l,r rgct *r tcl \X/almart.;r'l'hr' 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,lu-iactrrre rhe l'riehcst-tlrralitt,r'itleo products, bur it also atternpts "to treat.every custol.ner with atten-rion, 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

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 'r

backglou rrrl of the firrn, the r1'pes of products it oftbrs ot plans to introduce.antl rcu:nt succ(:sses or aclrievcrne rrts----in shorr, it consisrs of a ferv paragral'ths containing thc'kint[ ofinfirrrnatiolr 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; inrht 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 bargainsIikc ltrxury-blanci watches arrcl I)orn Perignon champagne . (jostco lcadership regards irs rvorkfrlrceas a signilicant ciifferenti,rtor in the company's su(:cess and, For that reason, pays above-rrrarketwagcs.'I'he avcrage Closrco hourly wage is rnore ttran $i7-almost tlorrble the highest minirnulnlvagc 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 andreputation olr it. It is inrpoltant fbr a new firm to iclcntifv its core cornpetency in the rnarketingplrrn 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

t1) 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 btrsi-ncss, 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

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 mar-kctirrg cnvironnrcnl. -1.

(lrew firr instirncr:, has a rvcll- l<oorvn brancl trame ancl a CFIC) rvith an inrprres-

sivc 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 ^p1r.il

to enough custorners ctrds up onl clcrrr:rncc r';rcl< arrc[ hurts thc hottonr lirrc. Acr:nrclirrg to l)rexler, the l<ey toJ. Crervls success is thatit 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-irrt lrullits of crrstorrre rs; anrl ctorrorrit.: i.ssucs altictrng a pnctng strategl

()rrc srrclr lncthocl lirr outlirring thc marlceting c:rrvirorrtr.rott in the rrtarketing plan is t,r incltrderu SW()'l 'rrnalysis, dcscr ibccl in Olraptcr ). S\V()'l irnalvsis icietrtifies the flrrn's strcngths, wcak-ncsscs, ol)lx)r'ttrnitics, and thrcats u,ithirr th.: nr;rrl<ctirtplcttvit'ottrtrent. A.\\\/O-l'ritralr'sis {brJ. Crovrniglrt 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

.f . (,rt:w rrctluirctl lv'l,rdcwell, :r rcrailcl ttrat sc:lls hip. ,:;rsual c,lr.ttlrcs to an upscale audience. it expantL'd

thc <:huin to :i9 U.S. citics .rnd [aLurclrr:.[ an c-colnrlrerr:c sitt-.'l'hleats fbr f . (lrew r:ouid int:lLrde com-

l)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 fiirliltrc Sl<1, ( )l6drirrg.

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 aboutwhiclr 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 soldour in onc dav, whiclr astorrisht:d thc rltveloper'." \X1t:i{rlit \X/ttrfiers has long regarcled rvornen as itspliurary 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 tapirrto that.scgr))cnt, laurrching a rnen-only rvebsitc,rn.l a $l() rnillion:rdverrising campaign directedsolt'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 gatninEtrnr-

lrarrv Zyrrga irrrcgrntcd lLtngo rcl'crcntes arrd rlrc rrovic rrailer into irs poPtrlar ];ronric'rVille ganreon l;lccbool<. lllontic:rVillt: plai'rrrs coul,l cnrb,rrli or, tlrrec, dilfercrrt quesls to fincl dre elusive Rango

A-5

A-6

"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

WHFI t i!!i i,$ i I f ii # i i!! i I i f i i I t

Appendix A

sotnc:rvltctc on the fiontierr, enlist their Facebook frirnds to help b,v "sending" rhenr warer buckers,arrtl, c:onr:civabli,, *i" a Ran,qo statue. With an estimarecl 15 rnillion-plus Iiacebook users playingl'r-rrrr ticrVi i lc d'aily, Iilnt e, t r eceived grear exp,rstrrc. 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 rn6ni-tolirrg 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 commti-nirv." lly rgc 33, (lirrrlli had achieved all ten of his litc goals, including the opening of his GainesvilleI-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 rowin 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'-slifi:arrcl busirtt:ssplanatage2l hadthemakinesofamar-ketingplan.rvirligoalsandbuclgets,settinga 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 companiestlrat rkr busincss in irrdLrstrics li[<e ar-rto manulacturing, pharnraceuticals, or lurnbe r nia1, extend tlreirnrarkcting 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 lrcyondfivc vclrs lrccarrse of.thc tlanv r.rncertainties in the nrarketplace . Firnrs also may opt to develop short-tcrnr 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 raket<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 pro-grtrtr is rnorritot'ecl and evalLtatcd lor its perfonrlallce. lvlonthl,v, quarterll', ancl annual sales targetsarc rrsually trat:lit',Ir thc t-{f.icicno'u'itli rvhich certain tasks are conrpleted is deterrrrined; c:usrornersatisl: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 equip-nrt-'ttt an.l cor.r)poncnts for thc comtnunication. energ!', aud printing ir.rdustries. In keeping with theconrpan\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 transac-tion, 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 andrrr;inrrluctulc oir prescription nredications---to inchrde nutrition ancl aninral health.'[b return thefot:rrs to irs crlre busincss of rievcloping neu, drugs, l'fizcr recentlv sold its iufhnt nutrition businessto 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 lnarkcr-ing plan. And yr-rtr'll ct:rtainll'read nrany rnarketirrg plans throughout yollr busine-.s r--areer'. Keepin 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 illustratelltc trrost vital fcarures.'['he irlportarit point tcl renrember is rhat the nrarketing plan is a docu-ntcttt desigrtr-tl lo prl:sc,nr cotrcise. cohesivc inforrn;rtiorr about a companv'.s rnarketingiobjectives tonlilnagcr.s, lcnding instittrtiorrs, and others involved in creating ancl carrying our the firrnt overall[rrrsincs.s stlatcgy.

i--' a I

Appendix A

PtanInc.

Tabte of

EXECUTIVE SUMMARY'l'his flvc-vcar nrarkcting plarr tirr l]lrre Skv (,lorhing has lreen creatcd bv ics rwo lbunders tosccur-c ;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 experiencedqrc,rrcr-thrr1-;rrrticiplrccl clcnranrl lbr irs products, ancl research lras slrorvn that the target m,rrketof sporrs-rnirrrlctl <rrnsunrcrs e'rcl sports retliler'"^ u'ould [il<e to btty morc. casual c-lothing thanlllrrc Sl<y r:rrrrurrly, ollcr.s. i\.s a r,:sult, llluc Sky want,s to extencl it.s clrtrcut protluct [ine as welIas 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----casuirlqlotlrirrq 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 novpr',xlrrcts, arrtl lvirr l)cw custon)(:rs.

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 therctiril 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 andrnalkct 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 cotn-parrv'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 horsebackri<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-sunrisepirrlt, 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 cloth-irrg urrrl g<:er. N4ost ol rhr:"^e sr()res arc c.'rrrccnlrate<l in northern Nerv Englancl, Calilornia, thcNorrlrwcsr, and tbc.sourh.'l'hc higlr quality, treudy crilors. and unique nressage of the cloth-inrl 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 manufacttrringcapabi l i tics.

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

cxp:rrrr[ its distrilltrtion, cntcr r)c1w nratket.s, ancl give lr,rck ttt the conrmturiry.

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 forc()nsullcls ra'h,l krvc tlrc outrloors. lllu,: Sky'"\'iults tL) inspirc peoplc lo get outdoors morc oftelrantl cnjo1, lirrnily nrrcl fi'icn.ls u'hile doing s,r. In addition, l]luc Sky strives tu design proeran.rs

A-7

utive

the

mmary

what,

/, and

rting

lnly

rd is

rh that

rrmal

o obtain

tng

rivate

anslon

f new

ummary

o, what,

)u/, and

(eting

; only

and is

rgh that

[ormal

to obtai

rcrng

private

pansron

of new

ffi;;;;;.*la firm's mission and

goals, including financial

and nonfinancial goals.

Blue Sky's goals include

growth and profits for

the company as well as

the ability to contribute

to society through

conservation prog ranls.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

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

I'lrc outclorlr rctail sllcs irrrlrrsllv sclls :rlrout g1 billiorr ra'ortlr of goods aunualll'. raneingli'onr ckrtlrirrll to crlrripnrcrrt.'l'lr.: r,ritrl,ror rrpparcl tnarkct has nranl'cntties. L.l,.llean, Dick'sSpolrirrg (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 cotnpetitorslikc'l'itlc Nint:, rvhich ollc'rs ;rtJrlctic clothing firr uonre'tr, ancl Ragged N4ountain, rvhichsr:ll.s fl,'crc t lorhinyl firr sl<icrr unr[ hikcrs, also cirpturc sonre ol the nralket.'l'he outlook fbltlrt: 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 larnilyrvitlrorrt o','crslrt'tttlitrll.'l'lrirtl, corls(ttllcrs tcttti trt [e ;rclyatrcitttl i1 rfieir cafe(]rs and are a[leto 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 rnocl-t:r;ttc'prit't'r, rrr:rking rhcrn ;rflirrdlblc in nrultiplc (lrrantitics. For itrst:rnce, a tslue Sky |-shirt

A-9

t

IAIt{{I

J

A-10

lllue Sky has identifiecl

its custorncrs as active

people lletweerr ages 25

and 45. Flowevetr, tlrat

dclesn't Inean someone

wlro is oldr:r or prefers to

reatj allout the outdoors

isn't a potential cuslc)nler

as wttll, By pirrllointinq

where existinq

custorners live, Lllue Sky

c.an plan for r;rowth into

new outlets,

Tlre strorrgc:;l part of

tlre rlarketirrq rnix

for Blrre Sky irrvolves

sales llrornotiorrs,public relatiorrs, arrrl

n on trac.li I iona I rla rketi rrc;

str.rtegie:;, suctt as

atterrdinq outcloor

evertts crrrcl orqa lrizir r<.1

activities like rlay Irikes

ancl bike ricles

Appendix A L)evetopirg an If[ective l,larketiiri,r iri4;,

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 consum-crs 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[rh-crrttscirirts lctivitir:s aurl ,.ottccrlts al.rout the rratural etrvilonment continrre, cqnsunrers itrcreas-inglv rt,llrtc: tu thc Blu.: likv philosoph)' as rvell as the firnrt future contrilrutions to sociallylesponsible i)r'ogmnls.

'l'lrl t:rlgcr rnirrkt't firi Illrrc, !i111' prorJtrcts is acti'".e r:orrsrrnrers bc'rween ages 25 and/r5-*-peoplervlrri lilic to hikc, roclt r:lirnb, bicvcle, srrrf fiRtrre skate, in-line skate, ride horses, sno'r','[roard orskr. klyak, ancl t-,thcr srrr;h ;rctivitics. ltr short, thev like to "Clo Plal'C)utside."'l'hey rnigl'rt notbc ,-'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 success-

lul intlividu,rls; thel'are sinqle ol rnarriecl ancl raising Fanrilies. ]{ousehold inc:omes gcnerallvr':rrrgc brtrvccn $(;0,000 anrl $120,000 annualh'. l)espite rl'reir conrfbrtable inconres, these

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 acrivelilLstyles. '['hc)' x1s sottrervll;rt ,5tatus orietrted but not cx'erlv so. They like to lre associatcd withhigh-clrraliq'products btrt at'e not rvillirrg to pa)'a prerniuur plice for a certain br;rnc[. (iulrcntIlltrc Sky cu.$rr)trers lcrrci to [ivr: in n,.lrthern Nerv ]lnglancl, the Sorrth, Californirr, rrrrd tlreNortlrrvr'sr. [-:1111^,'1'1's1,,rne firtulc gc,ai is to target (onsunrers in the iV{id-i\dantic stares:rndS,rrrthrvesr a.s ra'r:ll.

'l lrc ftrlltnvinq.lis.Lrssi,rlr srutIines sorrc oltthc cletails of:il're ;-troposed rnarketing mix fbr [Jiut'

Sky ploclrrcts.

F'rurlrrni , trat*gvllluc 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 cnn-sulncrs etrjol'---strtrsct retl, srtnrisr-= pink, circtus grecn, tlesert tose, and river rock gravj anrongothcls. ()vcr th,: rrr'rt .livc r,,:urs. i}hrc Sliy pluns to cxparrd rlre pr,rdrrct line to include (ustom-iu 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 'irltl l:;logarr to trtrrtclr thc krgo, srrch as "(let Over It." A cap rvith a bicvclistlnight l:'r:al tlre slriqan, "'lal<c a [tidt-." At tirc begirrning, thcre rvorrld be ten nerv logos and fivertt'rv s[ogatrsi ttrorc rvottltl bc'irclded latt:r. [r,veutualll', sonre slogans anr{ logc,s rvoulcl be rerired,,rtt<l tttrv oncs introclur.etl.

-l-lris strarcg). will keep the concept fi'esh and prevcnt it froni becorn-

irru 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- -trvrt sizcrs ol'rlrrf fcl lr,rgs, two sizcs of tote bags, and a d'rypack. l-hcse iterns rvoulc{ also(r)rne ill tlt:udv lrrti llrsit. colors, rvirh a choice of krgos and slogans. In addition. everv-protlLrcrrvoulcl lrcrr tlrc lihrt: Sliy loqo.

t'I

Appendix A i)o'rcloliincr arr [:f fr=t-rive N.liirketirrg ;)iarr

0istribution Strategy()trrrcr.rtly. BIuc Sl<y is nrarke,tetl through regional arrcl locaLl specialry shops scatrered alongthc (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 andc: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 andat 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 offer-irrg.s. Iivcrrtrrlll-v, rhc firnr nray be able to place Internet kiosks at some of the nrore profitablest()rc outlcts so consur.ncr.s c<trrltl orrler ctrstornized ptotiucts frorn the stores. Regardless of itscxp:rrrsion pllrrs, lllrre Sky ftrlly interrrls to n'ronitor atrd tnaintain strong relationships rvith dis-tril'rut iorr charrncl rnr,nrbc,rs.

Promotion StrategyIlluc 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 clifferentiateits pr'<ltltrcts firlnr those oIirs conrperitor.s.

'l'hc crrnrparrv rclics on llcrsonaI contact rvith reiailers to establish the product.s in theirstorcs.'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 rcpresen-

trrtivcs visit circh.slore two or threc tirles a ycar atrd off'er in-store raining on rhe fbatureso[:tlrc lrrr:tlucts fbr ncw retailer.s or for those who waut a reft'esher session. fu clistributioncrpatrtls, lllrrc Skl,will adjust to nrcL't greater cientand bv increasilg sales staffto make sure itsstorcs :uc visitcd nrorc fi'cquentlv.

.S.rlt'.s pronrotjorrs and 1lr.r[rlic rclations currently nrake up the bulk of Bluc Sky's promo-tiorral .strltcg)'. llluc.Skv sta{ltu,orlcs with rctailers to offer short-tcrm sales pronrotions tied too,cnts ancl colltcsts. ln adclition, Nick ltussell is currentlvu'orking with.several trip outfittersto olk'r tlluc Sky itcnrs on ir pronlotional basis. Ilecause l}ltie Sky also engages in cause market-ing through its contrilrurion ro environrnental programs, gclod public relations have followed.

Nontraclitional rnarkctine merhods that require little cash ancl a lot of creativiry also lendtht:rnsclvc.^ pcr{"cctly ro lllue Sky Because Bltre S[<v is a srnall, flexible organization, the finncarr 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 followingln:rrkcti rrg clJirrts:

. ( lrcatc' a l)[ue Sl<y'lotrr, in which several enrployees rake turns driving around the countryto curlrpgrounrls to distribute promoti()nal items, .such as Blue Sky stickers and discountcouPolt.s.

. 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 thecustonriz.ed lirre.

A-1 1

A-12

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

addition, Blue Sky states

that at tlris stage, it does

not have plans to exit the

market by rnerging with

another firrn or making a

public stock offering.

llricing StrategyAs 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 arrempr-ing 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 thcolcl, even if it is just hercausc thev like the ncrv colors.'I'he pricing srraregy also makes I3lue Skyprochrcts good titts-_-fbr birthday.s, gladuations, c'r "iust bccause." 'fhe cu.ston.rizeci clothingrvill 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.

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 introcluctionthrec 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 inclutledin 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 andcvaluatt:d for its pcrfor rr.rance.

$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 I 2016

Appendix A l)r'vi"l1)[,tn(l ,rtt I f it'r Ii'.,1,' fvlarketittg l'lart

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

A-13 A-14

NtrTI-

l- -t lF tff

l. ComP

2. ComP

Builcli

corn'

3. Contl

4. "lv{ee'

or{J, i

for th

RF52

5. u.s.acc(s

W-w*9

Wrlrcon'!

6. Corr

7. Davi

Ncw