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Download marketing-plan-executive-summary-template.pdf and more Study notes Marketing in PDF only on Docsity! COOLCO Inco Strategic Marketing Plan Jessica Akers Heather Pence Terry Stout MBA 665 Dr. Wilson Reinhardt University North Fulton Campus Summer Session II 2010 Table of Contents Page Im troduction..........ccccsscssesecceececeeceeceeceeeesessececseececseceecaeceneeeeesececsecseseeceeeaeseneee ee 3 Executive Summary.. Situational AMalysis...........ccccccccccscsecenesssenecseceececeeceeeeceeeeseesecseeeceeeceseeeasseneenees 5 Marketing Plan — New Product Introduction Objectives .........cccsccecsecceceeceeeencenecteesececsecceceeceeeesseneeseesececseceeceeceeeaseeeeeeees 6 Target Markets........cccsccseccsssscscsecssscecesececesscecsecessssceeesscesecscsssessssceeesse cod 6 Marketing Mix Appendix A- Financial Statements ...........ccccsececssesecceceeeenseeeesecseeeceeececseceeneeeee 16 Appendix B - Sales Forecast. Appendix C- Financial Analysis, Estimated Marketing Costs............scseeee 18 Team Member Responsibility IKdentification...........csscssccsssseceesesecscceseeesees 19 Situational Analysis Strengths Weaknesses New innovative product Owners knowledge of the business Company location Existing customer base Good product patent position Young, unproven marketing team Untested product Team lacks experience bringing new products to market Distribution expansion costs Product expansion costs Opportunities Threats Product encourages marketing creativity Competition has established marketplace No competition in this field Environment Product sales appear to be recession proof Large amount of regional events New, motivated target market (college sports fans) Distribution network Weakness in economy ACTION PLAN Stick with marketing plan Strengths Exploit company location in southeast Expand in small increments Weaknesses P Test new markets with samples see Have a marketing presence at regional events Opportunities 8 P 8 Be aggressive in reaching out to new target market "Hit 'em where they ain't" Threats y Take advantage of the exciting environment In painstaking fashion the marketing team recognized their weakness as being young and untested in a difficult market and a period of economic decline. However their strength lies in the Gameday Cooler and their location in the hotbed of college football. In addition there is no competition in this field and the patent probability is extremely high. Even though this product is viewed and a football game tailgaiting accessory, it is anticipated that it will be used year around due to the high level of team support and competition amongst schools. The sagging economy is an unknown factor however, sales of NCAA tickets and merchandise is growing while NBA, NFL and MLB are decreasing. For cash flow and product failure reasons the marketing has chosen to expand this product line region by region. First in the south, the east coast, midwest and then the west coast given sales projections are achieved and profits reach their estimated levels. Marketing Plan —- New Product Introduction Objectives COOLCO targets reaching 30% of the target market share during the first year of sales. COOLCO is confident the Gameday Cooler™(patent pending) craze will spread like wildfire at sporting events beginning in Georgia and spreading through the Southeast. COOLCO estimates profits of approximately $13-$ 15 per cooler. Target Markets COOLCO, Inc. will target SEC sports enthusiasts as the primary market. What sports fan would not like to have a helmet cooler to take to tailgating parties? Sports fans buy blankets, chairs, bowls, plates, cups, etc to support their favorite college team. The college sports enthusiasts should add the Gameday Cooler to step up the level of support for the favorite team. COOLCO Ine will target college students as the secondary market. College students will be targeted from within their perspective institution’s communications networks and bookstores. We will reach students from within the college with giveaways and sales inside the gift stores or bookstores. Marketing Mix - Product - GAM ED AY Co OLER™ Many believe the south holds the market for college football, especially those in the Southeastern Conference. Few can argue that there are no college football rivals across the US greater than that of the University of Georgia and the University of Florida, Auburn and Alabama, or Tennessee and LSU. Saturdays in the south consist of tail-gaiting, football games and more tail-gaiting. Fans come from hundreds of miles in recreational vehicles and sports utility vehicles hauling cookers, grills, food and most importantly cold beverages. Over the years fans have been faithful followers of COOLCO products and in response COOLCO will bring its first new product market in 6 years. The Gameday Cooler was developed in early spring 2010 by the new marketing team at COOLCO. The product will consist of a 40 quart cooler in the shape of a football helmet. The color and markings we initially match each SEC school. The Gameday Cooler will have a rolling chassis attached to a collapsible handle. The lid is hinged and when fully opened will play the school fight song. The product will retail for $56 and the net income from each sale will be $25-30. “Gameday Cooler™: Where the game never ends” a ee GAMEDAY COOLER: WHERE THE GAME NEVER ENDS, Distribution Faithful fans are most likely to invest in a Gameday Cooler. To make purchasing a Gameday Cooler more convenient for our consumer base, we have chosen popular locations to market our product. Reaching out to local superstores who stock SEC football merchandise is our primary target. Businesses such as Target and Wal-Mart provide access to the Gameday Cooler for those whom are students, alumni, and avid sports enthusiast. After providing access to the Gameday Cooler through superstores, our target areas for distribution and promotion are businesses and associations whom have frequent contact with students and alumni. In addition to local businesses and 10 ociations, the Gameday Cooler can be purchased at local sporting goods establishments, as well as college bookstores. Introduction of the Gameday Cooler to the college alumni associations, bookstores and athletic organizations are the key promotion areas for the product. Working with alumni associations, we will mail informational packets about the Gameday Cooler, where they may purchase these coolers, and discount coupons for college alumni. This market along with the athletic departments and boosters is one of the strongest in the tailgating community and once they begin to see the Gameday Cooler in action, secondary groups of tailgating communities will become intrigued and follow suite thus purchasing coolers themselves. Price The COOLCO Gameday Cooler will have a suggested manufacturer’s retail price of $56.00 the suggested retail price is lower than the average retail price of 40 qt coolers. The competition’s 40 qt rolling cooler prices range between$48 and $65 with the average retail price of $58.09. Cost of Goods Sold (including overhead) $ 14.08 Price of cooler to retail distributor $ 40.00 Price of cooler to Consumer $ 56.00 Estimated Profit to COOLCO $25.92 Per Cooler Average Retail Price of 40qt coolers $ 58.09 il Marketing Research When developing the Gameday Cooler in spring of 20 10, COOLCO felt it was best to research the opinions and views of their target audience. By researching these opinions, COOLCO was better able to design the product and develop a stronger advertisement plan. Research groups were created with ten people per group, and were presented the original design followed by advertisements. Based off of each group’s opinions, changes were made and then the product and advertisements were then presented again to another research group. This process went through four groups, with a final presentation to the fifth. Groups were selected by contacting alumni departments, current college students who are football fans and local community businesses who market college football merchandise. All data from research groups was collected and placed into a data base, categorized by specific sections. Sections included design, advertising, price, purchasing and suggestions. The final report reflects how concerns were addressed and resolved. Also, it reflects how the opinions of the research groups affected the advertisement and the distribution of the Gameday Cooler. Im plementation and Control As COOLCO begins to implement the marketing plan for the Gameday Cooler, COOLCO has found it helpful to establish a marketing and production team to monitor the success or obstacles of this product. The Gameday Marketing Team is responsible for implementing all parts of the marketing plans and is to have the manager of the 12 eastern, midwestern and west coast college football markets at a pace that will allow reasonable growth yet retain the same fine quality of product COOLCO has built over the years. The products will continue to be “Made in the USA”. 15 Appendix A Financial Analysis Predicted Actual 2010 2009 Revenue 8852.0 4000.0 Total Revenue 8852.0 4000.0 Cost of Revenue 4384.0 2982.0 Gross Profit 4468.0 1018.0 Selling/General/ Administrative Expenses, Total 1374.6 987.0 Research and Development 0.4 0.0 Depreciation/Amoritization 0.0 Interest Expense 0.0 Unusual Expense 0.0 Other Operating Expense, Total 0.0 Operating Income 3093.0 31.0 Interest Income (Expense) 0.0 Gain (loss) on Sale of Assets 0.0 Other, Net -0.5 -0.5 Income Before Tax 3092.5 30.5 Income Tax 1020.5 10.1 Income After Tax 2072.0 20.4 Total Extraordinary Items 0.0 -2.5 Net Income 2072.0 17.9 16 Appendix B Sales Forecast Total Number of People in target market Annual Number of purchases per person Total potential market Total potential market Percent of total Market coverage Total available market Total available market Expected market share Sales forecast (in units) Sales forecast (in units) Price Sales forecast (in dollars) 17 138,888.19 3.00 416,664.57 416,664.57 60% 249,998.74 249,998.74 30% 74,999.62 74,999.62 56.00 4,199,978.87