THE MARKETING, ORGANIZATIONAL & FINANCIAL

PLAN

BY:M U H A M M A D Y U R I A N S YA H P U T RA

P U T R I K A M AYA D I P TAP RA M U D H A N A A N G G AM U H A M M A D N U R H U D A

RA N DY RA H M A D IP RA M U D H I A WA R D H A N A

J U S T I N U S O K K YM U H A M M A D RYA N F I R M A N S YA H

CHAPTER 8: THE MARKETING PLAN

DIFFERENCE BETWEEN A BUSINESS PLAN & A MARKETING PLAN

• The Marketing Plan• An integral part of a

business plan• Focusses on all marketing

activities of a venture for one year or more

• Vary significantly for a firm depending on the industry, target market and the size and scope of the organization.

• Standalone document that needs to be managed on a short-term basis to ascertain whether the venture is meeting its goal & objectives.

• The Business Plan• The road map for the entire

organization over time.• Focusses on not just

marketing issues but also such decisions as research and development, operations, manufacturing, personnel, financial projections & analysis and future growth strategies.

• Should be updated on a regular basis to help management to stay focused and to meet organizational goals.

INDUSTRY ANALYSIS• The preparation of the marketing plan ->

the entrepreneur need to complete the industry section of the business plan.

• Primary focus -> to provide sufficient knowledge of the environment (national & local market) that can affect marketing strategy decision making.

• Secondary sources -> The entrepereneur decide that a market research initiative is needed to secure more specific information on such variables as customer needs, competitive strenghts & weakness, price, promotion, distribution & product/service benefits.

• Market research -> determining market position, setting market goals & objectives & determining action program.

COMPETITOR ANALYSIS • First: documenting the current

strategy of each primary competitor

• Gathering competitor’s information -> using public information and then complimenting this with a marketing research project (Google search engine etc).

• Using Table 8.1 -> the entrepreneur can begin identify the strengths and weaknesses of the competitor -> the data can be utilized to formulate the market positioning strategy of the new venture.

MARKETING RESEARCH FOR THE NEW VENTURE

• Information for developing the marketing plan may necessitate conducting some marketing research.

• Marketing research:• Who will buy the product/service• What is the size of the potential market• What price should be charged• What is the most appropriate distribution

channel• What is the most effective promotion strategy

to inform and reach potential customers• The entrepreneur will need to assess

available resources and the information needed -> Focus Group (not costly).

• Marketing research may be conducted by the entrepreneur or by external supplier or consultant.

UNDERSTANDING THE MARKETING PLAN

• The entrepreneur should prepare the marketing plan• Ideally prepared annually, assessing goals and

objectives for the next year• It establishes how entrepreneur will effectively

compete and operate in marketplace• After the strategies established, entrepreneur can

assigned cost to the strategies

• Marketing plan = a road map

UNDERSTANDING THE MARKETING PLAN

Where have we been?

Where do we want to go?

(in short term)

How do we get there?

MARKETING PLAN OUTLINE

Situation Analysis

Marketing Objectives and Goals

Marketing Strategy & actions program

Budgets

Controls

CHARACTERISTIC OF MARKETING PLAN !

• It should provide a strategy for accomplishing company mission & goals

• Based on fact & valid assumptions• Provide continuity, successfully meet longer term

goals• Should be simple and short• The success of the plan may depend on its flexibility• Should specify performance criteria that will be

monitored and controlled

COMBINATION OF PRODUCT, PRICE, PROMOTION, DISTRIBUTION, AND OTHER MARKETING ACTIVITIES

NEEDED TO MEET MARKETING OBJECTIVES

• Defining Business Situation review of where we have been• Defining Target Market segmenting and targeting customers 1. decide general market or industry 2. divide market into smaller groups based on buying situations• Select segment or segments to target• Develop marketing plan integrating product, price, distribution, and promotion

PREPARING THE MARKETING PLAN

Defining marketing strategy and action programs

How do we get there?

Product

• What makes the product more distinctive than other?

• What is the additional value that customer get beyond the product it self?

Product

• Unique design• On Hand Internet• User friendly interface• Integrated cloud service• Easy to use• Offer great customer service

and in-store experience

Price

Costs

• DM+DL+OH

Margins

• Gross profit-COGS

• Standardized Margin

Competitions

• Value added

• USD 500-600 selling price• Discount if bought with

data

Price

Place (distribution)

• Where to sell your product?

Place (distribution)

• Direct from Apple• Sold by mobile phone

carrier• Launch in many countries

at the same time

Promotion

• How you educate the potential/existing customer?

• How you choose your advertisement medium?

Promotion

• Widespread launch PR social media

• Extensive online and other media ad

• Product placement

Marketing Strategy

Budgeting the marketing strategy

Implementation of marketing plan

Monitoring progress marketing action

Chapter 9.The Organizational Plan

1. Employees2. Employees loyalty3. Employees

commitment4. Management team

ability5. Management team

commitment

The Importance of The Management Team in Launching a New Venture

Factor’s Three Forms of Business Formation

Factor’s Three Forms of Business Formation

Tax Atributes of Various Legal Forms of Business

Tax Atributes of Various Legal Forms of Business

S CorporationCombines the tax advantages of the

partnership and corporationVenture income is declared as personal income

on pro rata basis by the shareholdersNumber of shareholders up to 100Family members are allowed to be treated as

one stockholderTax status as a pass-through entity still requires

an affirmative election of share holdersIf tax status is lost, it cannot be reelected for 5

years and with some costs

S Corporation Pros and ConsProsCorporate gains/losses

are treated as personal income/losses

Not subject to minimum tax, as of C Corporation

Stock may be transferred low-income-bracket family (14 years old children or older)

May use cash method of accounting

Cons• May not deduct most

fringe benefits for shareholders

• Must adopt a calendar year for tax purposes

• Only common stock class is permitted

• Net loss is limited to shareholders’ stock plus loans

• Cannot have more than 100 shareholders

LIMITED LIABILITY COMPANY (LLC)Considered a partnership-corporation hybridLLC has members instead of shareholders or partnersNo shares are issued, members’ interest are designated

by articles of organizationLiability doesn’t extend beyond member’s capital

contributionMembers may transfer their interest with unanimous

written consent of remaining membersInternal Revenue Services automatically treats LLCs as

partnership, unless another option is electedStandard acceptable term of an LLC is 30 yearsDissolution when member dies, bankrupt, or members’

opt

LLC Pros and ConsProsProtection of personal

assetsAvoid double-taxation

of profitsFlexible management

& organizationOne or more

(unlimited) individuals, corps or partners can join to form an LLC

Cons• Often required to

have a limited life (< 30 years)

• Not corporations, so can not issue stock

Organization PlanLO5 & LO6

Board Of DirectorIn the new company and / newly merged company directors are expected to be memelakukan some key points as follows:- A review of the operations and budget of the company- Stringing medium and long-term strategy for the

growth and expansion of the company- Provide support to the daily work- Mediate conflicts among shareholders- Ensure the use of assets according to function- Expanding the network of information on

entrepreneurs.

Board of AdvisoryMokhtarzada Model recommend 3 major point in developing board of advisory, which is as follows: Identify members who have the same vision, to

provide output in line with expectations of shareholder

Offer part of the company's shares, so that not only can provide their expertise, but also give more value that can develop business

Timing is crucial in selecting advisory, the momment is such as provide additional capital, enter new markets, and improve the quality of managerial.

Board of Advisory International Vs Indonesia- In the international, board of advisory is independent

and come from expertise in each area. For instance:a, Financial : JP Morgan, Meryll Lynchb. Accounting & Tax : PWC, E&Y, KPMGc. Law Firm : Latham & Watkins, Baker McKenzie, DLA Piperd, Managerial : boston consulting, Mckinsey- In Indonesia board of advisory is legalized in a form of board of commisioner, in the process board of commisioner is also help by the expertise in conducting their job

Dificulities for Enterprenuer to Delegate Men were under qualified or overqualified for

the task Work is responsibility The area is large or is an unsolved problem,

issue or matters relating to personal feelings of others or the confidentiality

It is the secret of the company and the key point the company can develop up to now

The process of transfer of knowledge is taking times

Chapter 10 Financial Plan

Capital and Operational Budget

Sales Budget

• Forecast Sales

• Qualitative Approach

Capital Budget

• Capital Investment needed mainly for Assets

Forecasting Sales

• Qualitative Research• Industry Based

Market Research

Pro Forma Income Statement

Projected Income

Projected Expense

Projected Net Income

Consider following aspects:

Business Growth Prepare for 3 years in advance

Pro Forma Cash Flow

Income Stateme

nt

Adjust for Cash aspects

Cash Flow (In-direct Method)

Cash = Liquidity

Cash ≠ Profit

Assumption for determining portion of

cash/non-cash sales

Assumption for determining cash

received from account receivables

Key Points :

Pro Forma Balance Sheet

Liability

Equity

Assets

Break-Even Analysis

Where :B/E(Q) = Break-even sales volumeTFC = total fixed costSP = selling priceVC/Unit= variable cost per unit

Pro Forma Source and Application of Funds

Source of Funds, Profit

Usages

Liabilities Payment

Investment (Diversification)

Asset Investment (Business Value Enhancement)