Sample marketing plan

This is a marketing plan sample that provides the basics needed when developing the plan. The plan is simple and designed for beginners.

1. Running head: MARKETING PLAN 1







Sample Marketing Plan
B1 Fashion & Art Magazine (B1FAM) Marketing Plan
(B1FAM is imaginary)
Owiti Silas Osulah
©2015
[email protected]
(Certified Monitoring and Evaluation Professional)

2. MARKETING PLAN 2

B1 Fashion & Art Magazine (B1FAM) Marketing Plan
Executive Summary
The company was founded as B1 Fashion Magazine in March 2013 as a student project.
The primary objectives of B1 Fashion Magazine were to provide a platform of emerging apparel
and accessory designers to be promoted to a broad audience (national and global) and to assist
the development of their careers by providing necessary information relating to the business and
technology side of the industry. The company is currently being restructured to move forward as
B1 Fashion & Art Magazine (B1FAM) a sub-chapter S corporation registered in the State of
New York. B1FAM is a quarterly digital publication, its content focusing on the fashion and art
industries. In addition to online publishing, B1FAM will offer Public Relations, Marketing,
Management Analysis, and event coordination services. The company seeks to increase its
operational and market coverage abilities through a $ 5,000,000 marketing strategy for three
consecutive quarters.
Marketing Objectives Analysis
B1 Fashion & Art Magazine Company intends to acquire a 15% market share by the third
quarter of 2015. By owning this percentage of the market share, the company will be in a
position to enjoy the economies of scale. The profit margin will increase the cost of production
decreases. The company believes that to subdue the effect of competition, and then it must
increase its share control percentage. The company also pursues to continue increasing the
market shares across The United States and Western Europe by the first quarter of 2016 after
acquiring the 15% control. The reason for this quest is to guarantee the sustainability of the B1
Fashion & Art Magazine Company in the face of the industry. Besides, the company desires to

3. MARKETING PLAN 3

be recognized as an innovative digital media concern by the end of 2017. The company will be
the tool to disseminate the related fashion trends to the targeted customers.
Targeted Customers
The B1 Fashion & Art Magazine Company being an online publisher, targets a market
comprising of Women aged between 23 and 40 years, Men between 25 to 45 years of age, and
college educated and employed with an income range of $ 75,000 and above. The targeted
market is a conglomeration interested in all genres of art, fashion, and design. The population
targeted by the company likes traveling and are avid readers. Besides, they include those who
receive most of their information online via digital devices and are active in social media. The
market is crucial to the company's growth. Besides, the demographic composition embraces the
advancement registered in technology. Moreover, the group is financially capable of accessing
and affording services offered by B1 Fashion & Art Magazine Company.
Unique Selling Proposition (USP)
The B1 Fashion & Art Magazine Company will offer different services needed in the
current century. The company will offer online publications on fashion, art, and design. Besides,
it will offer Public Relations, Marketing, Management Analysis, and event coordination services.
Considering the basket of the company activities, they revolve around digital undertakings. For
this reason, the slogan, "Discover the Difference" to accompany its advertisements and
marketing ventures. The slogan is appropriate because it defines the exceptionality that the
company will bring in the industry. Moreover, the Unique Selling Proposition suggests that the
company's products and services will stand the test of market transformation.
Pricing and Positioning Strategy

4. MARKETING PLAN 4

The advantage competitive consideration assures The B1 Fashion & Art Magazine
Company that lower cost leadership approach will be favorable. The company prices will be
slightly lower than the prices of local competitors. The reason for reduced prices is that the
company is venturing into a competitive market. However, the company will maintain high-
quality services for better tastes and preferences in the market. The decision on prices goes hand
in hand with the anticipated targeted market that the management focused on. The prices of
particular service will vary with the size of the organization, customers' desires, and number.
With time, the products of the company will fluctuate in line with the demand and supply
interactions in the market. However, the corporation will maintain stability in prices but in the
case of inflation, the prices will change. Other factors expected to affect the prices include the
taxes, the competitors' prices, and season.
Distribution Plan
The B1 Fashion & Art Magazine Company is a service-oriented organization. Services
will be offered directly to the interested customers. The involvement of brokers and
intermediaries is eliminated to decrease the eventual cost of the services offered to the
customers. Moreover, the company desires to maintain the quality of its services. The use of
intermediaries poses a danger of price and quality manipulation. The company will reduce the
effect of ambiguity by having regional offices in entered zones and countries. Besides, the plans
for digitalizing all services will ease the complexity technicalities.


Promotional Offers

5. MARKETING PLAN 5

To increase the rate of the customer base growth, B1 Fashion & Art Magazine Company
will provide customers with offer tokens for their loyalty. The offers will increase secure more
customers and even drive past clients back on board. The company will have free trials for the
online marketing services to new customers. Money-back guarantees will be offered for the
Public Relations services, Event Management, and Online Publications. Besides, the company
will give customers a percentage discount correlating to their volume of services requested and
frequency. Customers whose service request amounts between $ 500 and $ 1,000 will receive a
5% discount. Cumulative service costs between $ 1,001 and $ 5,000 will pocket a discount of
5%. Services whose costs are above $ 5,001 but less than $ 10,000 will attract a discount of 10%.
Any services requested and amount to more than $ 10,000 will receive a discount of 15%.
Marketing Materials and Online Marketing Strategy
For promotional materials, the company will set up a modern website with sub-portals for
each service offered. The cost of setting up the website is $ 20,000. The B1 Fashion & Art
Magazine Company will print brochures, business cards, and catalogs at the cost of $ 10,000.
The company intends to improve and increase market share throughout the Northeast, Southeast,
Midwest, West Coast, and Northwest. The company will employ active, targeted efforts to
recruit writers, bloggers, and editorial assistants from these areas, to engage them in developing
content relevant to each region while strengthening brand recognition. The brochures, business
cards, and catalogs will be given to customers purchasing services as well as the potential
customers in the fields and events. Besides, billboards containing a brief description of the
company's services will be erected at strategic points identified by the marketing team. This will
include shopping malls, significant roundabouts, and social grounds.

6. MARKETING PLAN 6

Within six months of project commencement, without actively marketing the company,
B1 Fashion & Art Magazine received inquiries about the publication and was actively followed
across its social media platform. Passive promotion of the website and social media pages
inspired emerging designers to seek collaboration. To accomplish this objective, B1 Fashion &
Art Magazine Company build brand recognition and customer loyalty through integrated, multi-
tier communications efforts. These clients should be able to explain the company's brand and
give testimonials to the quality of our product and services. Buzz will be created online through
viral marketing promotions and offline, by word-of-mouth across market segments. Building on
brand recognition, experience, technology innovations, customer loyalty, referrals, and
successful marketing outcomes B1 Fashion & Art Magazine seeks to as a digital information
provider in the fashion, art, and entertainment sectors.
Conversion, Referral, and Retention Strategy
The B1 Fashion & Art Magazine Company will strive to convert prospective customers
into paying customer. The company will improve the scripts, offer instant discounts and prices,
and show testimonials from previous customers who were satisfied with the services purchased.
The customers who join the business as beginners will access a variety of offers as outlined in
the promotional offers strategy. The company will also reward customers who will refer new
customers to the business; the referral strategy will award points to both the customer and the
one referred. The points earned will be redeemable for services within the business scope.
Moreover, the company will not only spend much time in reaching new customers but will also
strive to retain the existing ones. The customers already using the company's products will
receive a monthly newsletter and frequently engaged in loyalty programs.

7. MARKETING PLAN 7

Promotion Strategy and Financial projections
The B1 Fashion & Art Magazine Company will employ the use of Radio and Television
to reach the customers. Moreover, trade shows, press releases, online advertisements, and event
marketing will complement the promotion activities. Appendix 1 provides the cost of the media
for the year 2015 that will be used by the company. The financial projections are broken down as
follows. The total personnel cost for the 1st quarter is estimated at $ 500,000, 2nd quarter $
400,000, and for the 3rd quarter $ 200,000. Marketing research will incorporate the primary
research, secondary research, and library management costs. The total costs are $ 200,000 for 1st
quarter, $ 150,000 for the 2nd quarter, and $ 100,000 for the 3rd quarter. Communication is vital
in organization structure and advertisement. This section of the budget will include the costs
related to the branding of the Company's products, advertisements, internet costs, direct
marketing expenditure, collaterals, press activities and relations, analyst relations, and event
costs. The quarterly sub costs are $ 1000,000 for 1st quarter, $ 750,000 for the 2nd quarter, and $
450,000 for the 3rd quarter. The channel costs include costs related to channel communications
and training, channel promotions and incentives, and channel commissions and bonuses. The
allocations are as follows; 1st quarter $300,000, 2nd quarter $ 200,000, and 3rd quarter
$100,000. Customer acquisition and retention costs include the lead generation costs and
customer loyalty related expenditures. $ 100,000 is allocated for 1st quarter, $ 100,000 for the
2nd quarter, and a further $ 100,000 for the 3rd quarter. The other additional costs include
postage, telephone, travel, computer, and office equipment. The other expenditures are estimated
at $ 200,000, $ 100,000, and $ 50,000 for 1st, 2nd, and third quarters respectively. Appendix 2
outlines further details.
APPENDIX 1: COST OF THE MEDIA

8. MARKETING PLAN 8

PUBLICATION/TELEVISION APPROXIMATE
COST IN $’000
AUDIENCE
REACHED IN
‘000
FREQUENCY
New York Daily 15 1,300 Daily
The Wall Street Journal 40 1,700 Twice a week
The New York Times 20 800 Once per week
USA Today 19 1,200 Twice per week
Los Angeles Times 40 1,500 Daily
The New York Post 15 1,000 Three times per
week
WHO-TV 30 sec spot 150 8,000 Daily
WIVB 12 30 sec spot 140 6,000 Daily
Fox 5 New York 30 sec spot 120 7,000 Daily

APPENDIX 2: ESTIMATED BUDGETARY ALLOCATIONS (costs in $’000)
EXPENDITURE 1
ST

QUARTER
2
ND

QUARTER
3
RD

QUARTER
PERSONNEL
Salaries and wages 250 100 60
Benefits 150 100 40
Payroll taxes 50 100 70
Commissions and bonuses 50 100 30
TOTAL 500 400 200
MARKET RESEARCH
Primary research 100 80 40
Secondary research 80 50 30
Library management 20 30 30
TOTAL 200 150 100
MARKETING COMMUNICATIONS
Branding 100 120 20
Advertising 200 80 100
Websites 100 70 30
Direct marketing 120 130 100
Collateral 80 50 20
Press relations 200 150 100
Analyst relations 50 30 30
Events 150 130 30
TOTAL 1000 750 450
CHANNELS
Communications and training 200 120 60
Promotions and incentives 180 40 20
Commissions and bonuses 20 40 20
TOTAL 300 200 100

9. MARKETING PLAN 9

CUSTOMER ACQUISITION AND RETENTION
Lead generation 70 65 50
Customer loyalty 30 35 50
TOTAL 100 100 100
OTHER COSTS
Postage 10 5 10
Telephone 10 5 5
Travel 150 80 30
Computer and office equipment 30 10 5
TOTAL 200 100 50
MONTHLY SUB-TOTALS 2,300 1,700 1,000
GRAND TOTAL 5,000

APPENDIX 3: ESTIMATE AVERAGE QUARTERLY INCOME
ITEM Magazine Event
Management
Marketing Management
Analysis
Sale revenue $ 480,000 $ 480,300 $ 380,000 $ 400,700
Sale cost $ 180,000 $ 130,300 $ 80,000 $ 80,700
Profit pre
expenses
$ 300,000 $ 350,000 $ 300,000 $ 320,000
Business
expenses
$ 100,000 $ 70,000 $ 80,000 $ 50,000
Net profit $ 200,000 $ 280,000 $ 220,000 $270,000
Market share
control
9% 14.1% 14.6% 15.1%