Personal Financial AdvisorMarketing PlanWise Money

Marketing Plan Components

1. Situation Analysis

2. Marketing Strategy

3. Financials

4. Implementation & Control

1. Situation Analysis

Wise Money is a start-up company co founded by a group of financial specialists to provide professional financial consultation for individuals and organizations.

Being a new comer to the market demands exceptional effort from the marketing department in building the desired company and product awareness.

The company is now in the process of launching its first product, which is an internet-based software that provides personal financial advisory services to individuals.

1.Situation Analysis

Market NeedsSeveral Factors have increased individuals' need for financial advice:

Privatization program-New market entrants

Stock Market controversies

Real Estate Market controversies

Inflation Rates fluctuations

1.Situation Analysis

Target Markets• The new product, the Personal Financial Advisor (PFA), is created

for all individuals having the ability to raise savings that exceeds their short-term basic needs, and have basic computer& Internet Skills

• Estimated Target market size: 785,500 prospect• Target Market demographics• Target Market behavior factors

1.Situation Analysis

Concept TestingMarketing Research, Questionnaire

Questionnaire objectives were to:• To test the acceptance of the target market to the new

product concept• To estimate the product's customer perceived value

1.Situation Analysis

Target Markets Trends & Growth• Financial Market rapid development• Increasing Income• Increasing number of Internet users

1.Situation Analysis - Competition:

The product will be the first of its kind in Egypt and that sets the company to be the pioneer and market leader in the Egyptian market. Currently, there is small competition to the product in the local market that comes from:

• Financial advice and wealth management services provided by banks and some big financial institutions, mainly to upper class individuals.

• Stock market trading advice offered now by most of the security brokerage company

1.Situation AnalysisSWOT Analysis:

Strengths:•First Mover advantages (Leadership)•Superior industry experience and technical skills of company staff•PFA Product offers special benefits that are unmatched by any competitor:1. Unbiased advice: The Company is not

involved in any activities related to the trade, management or promotion of any of the tangible assets or securities

2. Total confidentiality for customers3. Offers a complete and comprehensive

solution4. Ability to use the product at any time and

from any place

Weaknesses:•Initial difficulties in creating company awareness•New product category, difficulties in creating concept and product awareness•The PFA product does not allow personal interface to customer

Opportunities:•Continuous and fast increase in breadth and sophistications of investment alternatives which will increase the need for the PFA•High growth rate for population and GDP per capita, which is translated to high potential growth rate for the PFA product•Many opportunities for cross selling

Threats:•High uncertainty in estimating the market's adoption rate for the new product idea•Threats of new entrants and product imitation•PFA is strongly dependant on a specific media, the Internet.

2. Marketing Strategy:Strategic Business unit Mission:• Our mission is to help individuals make better financial decisions by

providing them with the right tools, information, and guidance on how to protect and grow their savings and achieve their specific financial goals. Our only way to gain the trust of our customers and accomplish our mission is to accomplish it with integrity.

• Our core strength lies in our knowledge, professionalism, and dedication to customer satisfaction.

• Together; Management and employees we work for the preservation and enhancement of our customers' and the society's well-being.

Our Vision is to become the benchmark for financial advisors in Egypt

2. Marketing Strategy:Marketing objective:To become the market leader in the financial advisory industry in Egypt within the next five years.

Increase Customer satisfaction rate by 3% each year.

Number of product subscribers reaches 100,000 in 2014.

Establish a strong company image of industry leadership and integrity

Financial Objectives:Increase profit margin to 30% within the next five years

Increase return on Equity by 10% each year for the next five years

2.Marketing Strategy:

 

Segmentation:

Target Market Segments

lower class

lower middle class,

middle

class,

upper middle class,

upper class

Middle class, Upper middle

class

2.Marketing Strategy:

Positioning

Wise Money will position itself as the leader in the investment and financial advisory industry in the Egyptian market.

Marketing Strategy:Marketing Mix-Product:

Core Benefits:•Financial Goal Setting•Basic cash reserves and insurance needs•Knowledge enrichment•Asset Allocation•Security Selection

Additional Benefits

Product Design

Services

Marketing Strategy:Marketing Mix-Price:

Strategy: Market Penetration Pricing

Pricing Method:• Prices were set based on two factors:• Upper limit for price based on customer perceived value of the

product, estimated from market research.• A lower limit for price was set based on product's cost plus a 15%

margin.

Pricing Options: one-year subscription for 99 EGP, Two-year subscription for 180 EGP

Marketing Strategy:Marketing Mix-Place:

Multiple Sales and Distribution Channels:

Internet, Company Sales offices, Telephone

Marketing Mix-Promotion:

Communication Objectives

Creating company, product category, and brand awareness

Creating superior company image

Communication Channels:

Company web site, TV and Radio ads, Seminars, Newspapers and specialized magazines, Direct Marketing through brochures, mailings, and Email

3.Financials

Break-even Analysis:

FC: Annual Total Fixed Cost : 1,310,000 EGP

VC: Annual Variable Cost per unit subscription = 56.4 EGP

P: Price of annual subscription= 99 EGP

N: Number of subscribers per year at the break even point.

At breakeven: FC+ (N X VC) = NP

Number of subscribers per year at break even point = N= 30751 subscriber

From Sales Forecast breakeven condition is expected at 3rd quarter 2011.

3.FinancialsSales and Expenses Forecast(thousands

EGP)2010 2011 2012 2013 2014

Sales 2500 5000 7500 9500 10500

Expenses 2720 4130 5380 6680 7240

Net Income (220) 870 2120 2820 3260

Profit Margin (8%) 17.4% 28.3% 29.7% 31%

-2000

0

2000

4000

6000

8000

10000

12000

2010 2011 2012 2013 2014

Sales

Expenses

Net Income

3.FinancialsMarketing Expense Budget:

Budget in thousands EGP

2010 2011 2012 2013 2014

Seminars 120 120 80 60 60

Web Site 20 20 20 20 20

TV and Radio 100 100 80 60 60

Journals and Magazines

20 20 20 20 20

Direct selling (mail and E-mail)

30 40 50 60 70

Total 290 300 250 220 230

Percentage of Sales 11.6 6 3.33 2.3 2.2

4. Implementation and Controls:Milestone Schedule Budget Responsibility

Market Testing 1/1/2010 to 1/2/2010 10,000 Marketing Research team

Web Site Advertisement 1/1/2010 and on-going 20,000 Marketing department and outside consultant

Seminars Every two months 120,000 Marketing department

Media Advertising campaign 1/1/2010 and on-going 120,000 Marketing department

Initiate direct selling program 1/2/2010 and-ongoing 30,000 Marketing Department

Building a distribution team 1/1/2010 to 15/2/2010 20,000 Marketing Department

Product Launch 1/3/2010 Marketing

Totals 320,000

Controls

Customer Satisfaction

Customer complaints & Company response

Customer defection

rate & reasons for customers

loss

Monthly number of

new subscribers

Monthly Expenses

Open Discussion – Thank you

Ahmed Medhat

Ahmed Osman

Mohamed Ayman

Closing

Thank you