Table of Contents
- Product (or service) Idea
- Product Description
- Positioning Statement
- Market Analysis
- Target Market
- Market Definition and Segmentation
- Needs and Requirements
- The Price of Product the Target Consumers are Willing to Pay
- Competitor Assessment
- Competitive Forces
- SWOT Analysis
- Marketing Strategy
- Product Decisions
- Pricing Strategy
- Distribution Channels
- Promotional Strategy
- Progress Measurement and Monitoring
- Marketing Organization
- Production/Operation Plan
- Pre-operational Costs
- Production Facility and Capacity
- Marketing Budget
- Financial Plan
- Sales Forecast
- Related Marketing essays
A marketing plan forms a very important part of the general business plan of every business. Successful companies in marketing always start by writing a marketing plan. Therefore, identification of a company’s objectives, and writing of a marketing plan that will help generate sales to the business is vital (Cohen, 2006). Irrespective of the size of a business, involving the input of all the company departments should not be ignored in the writing process. This is because; it takes all the company’s aspects to enable the marketing plan to work. When given an opportunity, people working in the company can give realistic contributions on how to accomplish the company’s goals and their input on whether they think the marketing plan is feasible (Cohen, 2006).
This paper focuses on a marketing plan for a newspaper business, including its mission and objectives, description of the product, market analysis, competitor assessment, marketing strategy, marketing budget and a projected sales forecast of our product. The company will be called XYZ Newspaper Company, and it will be based in Dallas, Texas. Our newspaper will be titled; The Dallas Morning News. We are well aware of the needs of our clients, and we will strive to give the best services to our customers.
Product (or service) Idea
The idea of introducing our product into the market is to offer an equal opportunity for low income earners in the United States to be informed of what is going own around the world, by providing them with high quality newspaper that is relatively cheaper.
Our vision is to be the biggest newspaper company in the entire United States, providing quality, low cost newspapers that are affordable to every one in the US.
- Increase sales by 50% by the end of next year.
- Recruit more marketing executives to boost our current marketing team.
Our product will be called, The Dallas Morning News. The newspaper will have a wide coverage featuring news, politics, entertainment, business, sports, lifestyle, commentaries and obituaries among others. We intend to make our product different from those of our competitors by lowering cost and offering unbiased coverage.
Our aim is to produce low cost, high quality newspaper, with unbiased coverage. Our aim of lowering the cost of our newspaper is to enable low- income earners in the US to be equally informed of the current happenings in the US and other parts of the world. In addition, we will conduct a market survey to find out the opinions of the readers of our newspaper on various aspects such as whether our newspaper is interesting to read, whether it covers all their areas of expectation etc. We intend to use the feedback to make amendments, so that we produce a quality paper that is customized to the customer’s needs.
XYZ Newspaper Company target market is every person who is interested in knowing the current happenings in the world, especially business people, the employed, as well as anyone who can afford to purchase our product.
Market Definition and Segmentation
Our target market being those who have interest on news happening worldwide, there are customers who can afford to buy newspapers and those who cannot. To offer a level playing field for all to be informed, we intend to produce relatively low cost newspapers but with good quality, that is affordable to poor people.
Needs and Requirements
The readers of our newspaper expect a detailed and unbiased coverage of the stories we publish and we strive to provide just that.
The Price of Product the Target Consumers are Willing to Pay
Currently, other newspapers such as the Globe Times and the Dallas Observer are sold at $3.2 and $3 respectively, and their demands are not quite high. This means that, a majority of readers who have preferred that the prices are lowered. That is why our newspaper will be charged at $ 2.80, to give low-income earners to be equally informed, as their high-income counterparts.
Being a small company, our greatest challenge will be our main competitors, the bigger newspaper companies who are already established in the business for instance, New York Times, Reuters etc. With time, we plan to expand our business and be able to compete with the bigger newspaper companies.
a) Strong income growth that is consistent (Böhm, 2009).
b) The company has a competitive advantage over other competitors due producing quality newspapers of relatively lower prices.
A weak brand name that is unknown by many people, thus, making it difficult to penetrate the wider market (Böhm, 2009).
Growing demand for production of low cost newspapers.
a) Existence of established newspaper companies such as New York Times etc.
b) Constant changes in taste and preference of customers.
Our company intends to establish a 24-hr customer service both online and offline, where our clients can call or email us their queries or comments regarding the company and get instant feedback. We also intend to set our prices slightly lower than our competitors to attract more customers. In addition, our emphasis is production of quality newspapers of relatively lower cost that are affordable to most of our customers.
The brand name of our newspaper will be The Dallas Morning News. The product will have a broad and unbiased coverage with contents such as news, politics, entertainment, business, sports, lifestyle, commentaries and obituaries among others. Other, than lowering prices while maintaining high quality, we also intend to print the newspapers in attractive colors in order to attract the attention of more readers.
The business will be selling each of newspapers at $ 2.80. The cost charged covers the process of production and production techniques, technology and materials of production with a reasonable amount of profit because the business will be established with a view of making profit (Daly, 2002).
In addition, the prices charged on the product will be reached after establishing the prices of each of the business competitors. The price of the Austin Chronicle magazine is $3.5, Globe Times, $3.2, while the Dallas Observer is $3. Therefore the business chose its price of $ 2.80 which is slightly lower than the price of the Dallas Observer, coupled with the technology of production, which will give the newspaper an upper hand in the market. In addition, the affordability of the magazine compared with the others will be very helpful in winning a bigger market share (Daly, 2002).
Furthermore, the business will be able to meet the various operational costs required of the business plus the legal requirements that bind the business, using part its profit gained from the sales.
Our newspaper are mainly distributed through our numerous newspaper distributors and vendors, who will deliver our newspapers to television, radio stations, companies and even interested individuals (this will involve door to door delivery). In addition, the newspapers will also be sold in public places such as along the roadsides, as well as in various markets.
We believe that taking our product close to our esteemed customers will gradually increase our customer base, and consequently, will impact positively on our sales revenue.
Marketing The Dallas Morning News newspaper will entail the use of advertising in television and radio as well as social media (face book and twitter). Our aim is to reach a wider customer base and expand our business. Other promotional strategies will include good public relations, as well as sales promotions. According to Böhm (2009), having a good image in the eye of the public greatly contributes to the success of any business. Therefore, as a new company, we will invest significantly, in public relations as a promotional strategy for our product and company. We will hire professionals in PR and customer relations, to market our product. In addition, we plan to print company T- shirts and caps, which we will give to our customers occasionally, as rewards for buying our newspaper
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Progress Measurement and Monitoring
In an attempt to ensure we achieve the set company marketing objectives, we intend to keep in touch with our clients through our customer service team, in order to know their expectations form us (Daly, 2002).
Despite being a small company, XYZ has high expectations and big dreams for its clients. The company comprises of a Chief Executive Officer, a general manager, four departmental heads, five script writers, five news editors, twenty sales and marketing representatives and one IT expert. Our marketing team is very dedicated to keeping you informed on what is going on around the world; expect only the best from us.
The facilities in which the business will utilize in the production include cameras, printers, page makers, and binding machine. The business products will be produced on monthly basis for a period of one year after which it will be produced weekly.
In the run-up to the opening of the business premise, the managing director will purchase the following items to facilitate the production process in the business premise. First, ten computers will be purchased from the Hp Company at its outlets in Dallas Streets, Texas. At the same time, three printers’, two cameras, two paper cutters, three staplers, and staple pins will be purchased in renowned and trusted stationery and electronic devices outlets in the Dallas Streets, Texas. All these production facilities will be done two weeks prior to the opening of the business.
Also, the business will hire the services of Intelwise Technologies for installation of the production facilities, their repair, and maintenance. Therefore, the business will schedule the maintenance procedure for its production facilities twice in a year of which it will be carried out on the first weekend of the 6th month unless an opportunity arises before the said period elapses (Dickie, 2006).
When the business starts its operation, the goals, objectives, vision, and mission will guide the business to grow. Thus, the growth strategies the business will put in place include increasing of production facilities, decentralization of product production and re-investment of profits in the business. These will not only increase the stability of the business production processes, but also the customer confidence (Dickie, 2006).
In a bid to improve production process in the business, that is the quality and quality of production, the business will consider recruiting high skilled personnel to carry out the process. In addition, the business will create a conducive environment for its employees to carryout the production process, which will be accompanied with motivational trips and proper incentives. Furthermore, the business will use multi-task production equipment to reduce the chain in which the product will pass before its final copy is obtained. This will reduce the time and cost the business will use in production (Dickie, 2006). The following table simplifies the operation cost.
Production Facility and Capacity
|Business facility||Number||Cost ($)|
Printers (3 in 1)
|Advertising||Direct Marketing||$ 10,000|
|Sales force expenses||Commission||$10,000|
|Salaries and fringes||$30,000|
|Public relations||Customer service & support||$20,000|
The business start up capital will be $155,000 The capital will be raised through loans from banks, small business enterprise, youth enterprise funds, personal savings, inheritance, microfinance corporations, and charity. The money shall be used in buying machinery, equipment, rental, and renovation, as well as taking care of the marketing expenses (Rattiner, 2008).
The funding sources will be as shown in the table below.
|Friends and family members||$5,000|
Below is the forecast of our projected sales, based on our penetration of the target market, given the proposed pricing for the next three years.
Year 1 Year 2 Year 3
Printed newspapers 100,000 150,000 200,000
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Internet downloads 10,000 15,000 20,000
Advertisements on printed newspapers 100 150 200
Total Unit Sales 110,100 165,150 220,200
Printed newspapers $2.80 $2.80 $2.80
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Internet downloads $1.00 $1.00 $1.00
Advertisements on printed newspapers $50,000 $50,000 $50,000
Printed newspapers $280,000 $420,000 $560,000
Internet downloads $10,000 $15,000 $20,000
Advertisements on printed newspapers $5,000,000 $7,5000,000 $10,000,000
Total Sales $5,290,000 $7,935,000 $10, 580,000
Direct Unit Costs
Printed newspapers $1.50 $1.50 $1.50
Internet downloads $0.50 $0.50 $0.50
Advertisements on printed newspapers $30,000 $30,000 $30,000
Direct Cost of Sales
Printed newspapers $150,000 $225,000 $300,000
Internet downloads $5,000 $7,500 $10,000
Advertisements on printed newspapers $3,000,000 $4,500,000 $6,000,000
Subtotal Direct Cost of Sales $3,155,000 $4,732,500 $6,310,000