As you know, there's not just one formula for what makes a good marketing plan; marketing plans can be modified according to the needs of specific businesses. To see how several businesses wrote their marketing plans or components of them, link to the examples below.
Examples of Marketing Plans
(and Marketing Plan Components)
Mosaic Buttons (Store)
Creative Cuisine (Personal Chef Service)
Competitive Analysis Chart
Mosaic Buttons (Store)
The following market plan is an actual plan written by a woman-owned business. Names of some businesses and cities have been fictionalized at the owner's request.
Technically, the mission statement is in the opening of the entire Business Plan, of which the Marketing Plan is a part. It's included here for the reader's information...
Mosaic intends to supply Michigan with the most visually interesting buttons available today. They will delight their users and provide a springboard for creative activity. Mosaic believes artistic expression enhances life. It appreciates the skill of human hands and the sensitivity of human hearts. It regards buttons as small works of art in which we are able to see ourselves.
Mosaic is a specialty retail store offering a collection of antique, contemporary and hand-crafted buttons from around the world. These buttons are distinguished from those available in the marketplace by the quality of materials, workmanship and design.
A very simple need which Mosaic addresses is the need to have fun! Buttons are wonderfully expressive objects that add unexpected vitality to clothing. Apparel manufacturers are witnessing a competitive advantage to using fun and distinctive buttons. Mosaic makes such buttons available to home sewers and others involved in the needle arts. Providers of interior design services are also served by Mosaic in their efforts to create custom bedding, slip covers and window treatments.
With growth, Mosaic will also establish a working studio for the surface design of fabric. Workshops for the painting, dyeing and printing of fabric will be offered throughout the year. These will be conducted by the sole proprietor of Mosaic and by guest artists with particular expertise.
Mosaic opened for business on August 5, 1996, with an inventory valued at $1,050. In the first eight months of operation another $1,290 of inventory was added. Sales totaled $1,376 for the same period with the average monthly total being $172. Sales have increased steadily over this eight month period.
Organizations and businesses served include:
- Machine Knitters Guild of Michigan
- Michigan Embroiderers Guild
- Sew for Profit of Michigan
- The National Button Society
- Home Fabrics
- Smith-Wesson Designers
- The Workroom
Funding for the company has come from the personal income of the sole proprietor and from the income generated by sales. Additional funding is sought for the expansion of inventory and for advertising.
PRODUCT OR SERVICE DESCRIPTION
Mosaic offers hand-crafted and manufactured apparel buttons in a range of materials and finishes. A high percentage of these buttons are made of natural materials such as horn, bone, wood, glass and clay. These buttons are hand-crafted by artisans throughout the world and are of original design. Manufactured metal and synthetic buttons are also offered, together with a collection of vintage and antique buttons.
All garments benefit from buttons that contribute to their character. Mosaic offers an opportunity to reinvent ready-made clothing and engages people in a creative process. Buttons are a form of ornament. They allow people to express their personal style in a novel manner.
"Makers" of garments who have invested a great deal of time and energy are unwilling to use buttons with nothing to offer but an attractive price. These people are looking for the perfect button for their creation. Mosaic helps people accomplish this and brings the entire process to a satisfying conclusion.
The charm of buttons is increasingly evidenced in the home, where they are used as a design element on pillows, bedding and window treatments.
Buttons are often purchased not for reasons of utility, but simply for their beauty. Collections of antique buttons represent a significant investment and historically rise in value.
Mosaic is located in the Tower Building, 706 Main NW, Suite 200, Altamount, Michigan. This building, a historic landmark from the town's lumbering days, houses two design businesses and a dozen creative studios for book illustration, photography, painting and surface design, and furniture making. Its neighbor, the former Gay-Tonekey Building, at 710 Main NW, also supports numerous design studios. Most notable are the Artists' Studio, a custom frame and gift gallery, and LaFontaine Gallery, a premier fine art gallery. These two buildings have supported the artistic community in the area for over a dozen years by offering architecturally interesting spaces and low rent. They are a signpost of creative thought and activity in the community and attract customers who are interested in artistic expression. This area is also about to receive renewed attention as renovations begin on the city's former water purification plant, soon to become a nationally franchised restaurant.
Mosaic is currently located in a second floor suite in the Tower Building. With growth, it would like to relocate to the building's south end. The benefits of this location are first floor access, room for expansion, higher visibility from large arched windows, more convenient parking, closer proximity to area retailers and reasonable cost.
The Industry
According to the American Home Sewing and Craft Association, the home sewing industry contributes $3.5 billion in retail sales to the national economy. In the five years from 1987-1992, first-time buyers of sewing machines increased from 30 percent to 50 percent. In the last five years (1991-1996), membership in the American Sewing Guild has doubled in size with a 55 percent increase in the number of local chapters. Thirty million people in this country are serious sewing hobbyists.
The availability of the serger may account for these increases. This machine seams, overcasts and trims all in one motion, cutting sewing time in half. Also, today's sewing is technologically advanced, eliminating the need to thread needles and trim excess thread. Computer memories have also enhanced the creative potential of the sewing machine.
Sewing is one of several creative industries served by Mosaic. As this country reassesses its priorities, home oriented leisure activities enjoy increased levels of interest. Gallop Organization's 1990 report on leisure trends indicated that sewing/knitting ranks fourth in activities pursued by the general public.
Throughout Michigan, there are guild chapters for sewing, weaving, knitting (machine and hand), embroidery and quilting. Michigan also hosts a chapter of the National Button Society, an association of button collectors.
The Target Market
The home sewer's profile, as reported by the American Home Sewing and Craft Association, looks like:
- 75 percent female
- 25 to 54 years of age
- college educated
- household income of $35,000 and up
- artistic, values originality
- sewers of varying ability
This profile is supported by direct observation of Mosaic's customers.
People who pursue the creative industries value objects made by hand and purchase them for themselves, their friends and their families. They are deeply involved in home-based leisure activities such as reading, gardening and exploring the culinary arts.
Within the Altamount-Fairhills-Levine DMA, 23 percent of households sew and 20 percent practice a form of needlework. This is slightly above the national average and compares favorably to the City of Indianapolis, which supports Buttons Galore, a similar enterprise with an annual trade of $500,000.
A larger percentage of people from the Altamount-Fairhills-Levine DMA attend cultural events and patronize fine art and antique galleries than from Indianapolis. The median income for this area is also slightly higher than that of Indianapolis.
Mosaic also serves design businesses that focus on residential interiors. Buttons are used increasingly in the home as an element of interest and design.
The Competition
Direct competitors exist in three nearby cities. They are The Threadminder, a supplier of designer knitting and weaving yarns in Levine, Michigan; The Fabric Alley, a high-end fabric shop located in Cashill; and two button shops in Chicago-Twelve Buttons and Renewal Buttons. The strength of these competitors lies in the length of time they have been in business. Awareness of their product is well established.
The Threadminder offers a limited selection of unusual buttons purchased from the same suppliers as Mosaic for the same price. They offer one-stop shopping for the knitting and weaving community, but buttons are not their focus. Unless shoppers were looking for yarn, they would not know that buttons were available at the Threadbender. Mosaic will compete by focusing on buttons and by offering a broader and more exciting selection.
The Threadminder develops their market by offering classes in knitting and weaving. Participants who love fiber and the textile arts will be open to exploring other avenues of expression. Mosaic will offer instruction in those areas.
Mosaic will also compete on the basis of location. It is centrally located with easy access from all parts of the city.
The Fabric Alley in Cashill, Michigan, appeals to serious sewers who are given to spending considerable sums on fine fabric. They offer a very broad selection of buttons in the same price range as Mosaic. Sewers can locate buttons and fabric in one location. However, access to the buttons is difficult. They are poorly displayed and shoppers must be very determined to locate buttons they find attractive. Once spotted, the clerk must retrieve the buttons from stock before the customer can fully assess them. This is both frustrating and time consuming.
Buttons are displayed prominently at Mosaic in a manner consistent with their quality and character. Again, Mosaic will compete by focusing on buttons. The company will also compete on the basis of location. Those whose needs are met by the local fabric stores and who may be unwilling or unable to travel across the state will depend on Mosaic for distinctive buttons.
Twelve Buttons and Renewal Buttons offer a product impressive in its range of quality, price and character. They are both centrally located in the metropolitan Chicago area. They are the model upon which Mosaic patterns itself.
Mosaic will entice fans away from the Chicago shops by diligently procuring buttons of high originality. Independent buttonsmiths will be showcased whenever possible. Mosaic will also maintain a large collection of vintage and antique buttons. Relationships with the local interior design trade are also vital to success.
Indirect competition comes from the local chain stores: Northeast Fabrics, Wisconsin Fabrics, Joan's Fabrics and Fieger's Fabrics. Mosaic offers buttons which cannot be found in these stores and which are priced generally higher. Mosaic will attract customers who may be willing to spend more on buttons than on fabric to achieve a higher level of style and expression.
PROMOTIONAL OBJECTIVES AND STRATEGIES
One of the greatest challenges facing Mosaic in its first year of operation is lack of community awareness. At this time, the customer base is 90 people. The company's goal is to double this number over the months of June through October for an overall goal of 180 customers.
Strategies for achieving this goal include:
- Establishing an auxiliary sales display at the local farmer's market on Saturdays throughout the summer. This can be done at a cost of $210.
- Distributing business cards and reprints of the "Grandstand" article about Mosaic which appeared in Lifelike Magazine in January of 1997. Distribution points will be the farmer's market, the Arts Alive Gallery Hop, the Underground Studio, and area dry cleaners.
- Mounting additional signage to the exterior of the Tower Building by June 1, 1997, at a cost of $75.
- Publishing a quarterly newsletter to existing customers and selected businesses. The newsletter will solicit referrals, advertise additions to inventory and notify readers of current sales promotions.
- Establishing quarterly sales promotions in May, August, November and February.
The May sales promotion will be in honor of Mother's Day. Customers will be treated to an afternoon tea; discounted gift certificates for mothers will be offered.
During August, Collage will celebrate its anniversary. A fashion show/competition or other activity will be planned.
November will focus on year-end festivities.
February will highlight Valentine's Day.
- Advertising in the newsletters of the Woodbrook Weavers, the Michigan Quilter's Guild and the Greater Levine Embroiderers Guild. Costs range in the area of $10 per issue.
- Continuing to advertise in the Greater Levine Yellow Pages at a cost of $10.75 per month.
- Participating in the fundraising activities of public radio, such as the WYRU Auction, by making a donation in the form of a gift certificate. (Retail value of $30; actual cost $15)
- Supplying area interior designers with button samples mounted on fabric for them to use with their clients.
Another goal which Mosaic needs to address is that of building inventory. Summer months will allow a greater portion of the company's resources to be directed toward augmenting inventory.
- Mosaic will advertise in the area weeklies, such as Retreat, as wanting to buy old buttons.
- Mosaic will solicit handmade buttons by advertising in the "Opportunities" section of The Art Calendar as a consignor.
Three categories of buttons are purchased by Mosaic for resale. They are hand-crafted buttons, manufactured buttons and vintage buttons. The standard industry mark-up is 100 percent.
The average retail price of hand-crafted and vintage buttons is $4.25. Manufactured buttons range in price from $1.45 to $2.00, depending on what material is used. Buttons of natural materials are more expensive.
In the eight months Mosaic has been in business, the best selling button has been a natural corozzo nut button that sells for $1.20.
Mosaic currently accepts cash and personal checks in the amount of the purchase. With growth, the company will establish credit card acceptance.
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Creative Cuisine (Personal Chef Service)
CREATIVECUISINE
Personal Chef Service
Market Study
Introduction
Creative Cuisine, to be located in Somerville, Massachusetts, will provide personal chef services to busy working professionals in the West Suburban Boston area. This service will include personalized menu planning, grocery shopping and preparation of dinner entrees and side dishes on a regular basis. The service will be available as a monthly, bi-weekly or occasional service. Price will vary according to level of service selected. The meals will be prepared in the client's home during a weekday while the client is at work. All meals will be packaged, labeled and refrigerated or frozen with complete instructions for final preparation. Creative Cuisine will use all its own utensils and will do complete clean-up.
Creative Cuisine's target market will be affluent working couples with children who want to enjoy healthy dinners at home with minimum preparation. The average clients will be homeowners age 35 to 55, with incomes over $100,000. Creative Cuisine's marketing focus is to provide them with a convenient, unique and high-quality alternative to cooking, dining out, or take-out meals.
Creative Cuisine's targeted high-end consumers continue to demand more convenience and quality in their dinner meal. Nearly half of America's dinner meals are currently prepared outside the home by full-service restaurants, grocery store prepared food sections, and take-out food retailers. Two of Creative Cuisine's advantages over such competitors are: 1) its ability to completely customize meals to the client's tastes, preferences and dietary requirements; and 2) its ability to deliver these meals directly to the client's home refrigerator/freezer, thus saving clients valuable free time that would otherwise be spent shopping, driving, and cooking. The customized meals personally prepared by Creative Cuisine will be significantly higher in quality, taste and nutrition than the mass-produced food offered by its competitors.
What follows is a detailed analysis of the current market for a personal chef service.
Current Market Size
Economists at the National Restaurant Association estimated total foodservice sales for 1996 at $313 billion, representing a 5 percent increase over 1995. That means consumers spent an average of $855 million per day on food away from home.
According to the National Restaurant Association's1996 Foodservice Industry Forecast, fast food comprised the largest segment of this market, capturing 47.8 percent of the dollars spent. The report attributes this success to "fast food's ability to meet consumers' desire for value and convenience." It was further estimated that at least 64 percent of all fast food purchases were consumed off-premises.
According to Technomic, Inc., a food industry consulting firm in Chicago, almost half of consumer food dollars are spent on meals prepared away from home. In addition, food expenditures rise significantly as income increases according to the Bureau of Labor Statistics' Consumer Expenditure Survey Data.
Industry Trends
This significant trend of consumers purchasing prepared meals is so pervasive that the foodservice industry has coined a new term to describe it: "home-meal replacement." Many businesses are shifting their focus to meet the growing demands of consumers:
- Most supermarkets now include a deli, bakery, and a prepared-foods section. Also, many offer fast-food service.
- Boston Market has continued to expand its product lines and market share.
- Famous chefs, such as Wolfgang Puck, are offering high-end prepared meals in upscale supermarkets.
- Fast-food chains such as KFC, Pizza Hut and Taco Bell have formed alliances to offer multiple product lines under one roof.
There are also several economic and cultural trends that have contributed to this growing demand:
- Increasing number of women in the workforce
- Increasing number of woman-owned businesses
- Growing number of higher-income households
- Americans working longer hours
- Decreasing amount of leisure time
- Premium placed on convenience
- Trend toward purchasing personal services (i.e., personal-trainers, house-cleaning services, home shopping services)
According to Foodservice Solutions, a Tacoma, Washington hospitality consulting firm:
| "Home-meal replacement is not a luxury today - it's a necessity. People don't want to take the time to cook; they have too many other things to do. Americans want high- quality prepackaged foods. It's the American way - to make life easier." |
Entrepreneur Magazine's February 1997 article selected "Personal Chef Services" as one of the top service businesses to start today:
| "Convenience-craving consumers are always looking for a way to do things better, faster and cheaper. Often, that means turning to a specialty-services entrepreneur who knows how to get the job done right. Those with culinary competence can likely find a hungry clientele among the ranks of America's busy working families." |
Growth Potential of the Market
Based on the National Restaurant Association's 1996 Foodservice Industry Forecast, the percentage of food dollars spent away from home has grown from 25 percent in 1955 to 50 percent in 1996.
More importantly, the proportion of the food budget spent on meals away from home increases significantly as income increases. Households with incomes of $70,000 spent 81 percent more per capita ($1,278 per person) on food away from home than the average income-reporting household ($705 per person) according to the Consumer Expenditure Survey conducted by the Bureau of Labor Statistics.
Also contributing to the potential growth in the market is the rise in affluent households documented by the Current Population Survey from the Bureau of the Census. From 1990 to 1994 the number of households earning $50,000 to $74,999 increased by 16.4 percent; households earning $75,000 to $99,999 increased 36.1 percent; and households earning $100,000 or more increased by 61.1 percent in the same period.
| Household Income |
Increase (Decrease) in
Number of Households
|
|
| Less than $35,000 |
|
|
| $35,000 to $49,999 |
|
|
| $50,000 to $74,999 |
|
|
| $75,000 to $99,000 |
|
|
| $100,000 or more |
|
|
| Total |
|
|
Source: Bureau of the Census
A personal chef service is uniquely positioned to take advantage of the increasing demand for fast food, growing health concerns, and the rise in high-income households. Affluent working couples want "fast food," but they want it upscale, healthy, and convenient. The founders of Truly Unique Personal Chef Service in Newport Beach, California, report that their business has grown 10 to 15 percent every year since opening in 1992. Many of their clients said they were getting bored with going out to restaurants and wanted something different.
Customer Profile
Creative Cuisine's' target customer will be families with two working, professional parents who are too busy to cook every night but are fed up with takeout and restaurant food. Their specific demographics are as follows:
Household Income: Over $100,000
Age: 35 to 55
Education: College degree and/or advanced degree
Marital Status: Married couples or high income single
Job: Professional status (one or both partners)
Children: Preferably ages 7 to 18
Homeowners: Preferably
Location: Live in neighborhoods with high concentration of affluent families
Customer Benefits
Here are just a few of the benefits to customers if they hire Creative Cuisine:
- 6 hours per week more free time (1 hour per day cooking/acquiring meal plus 1 hour per week grocery shopping)
- Very convenient
- Meals customized to personal tastes
- More variety
- Health and nutrition benefits
- Less stress
- Client feels pampered
- It makes life easier
- Don't have to cook
- Less grocery shopping
- Minimal kitchen clean-up
- Peace of mind
The Competition
There are a handful of other personal chef services in the Boston metropolitan area; however, since this is still a new business concept, there remains a large untapped market.
Most competition for home-meal replacement exists from neighborhood restaurants, upscale fast-food outlets (e.g., Boston Market) and supermarket prepared meals. Following is a competitive analysis of the various meal replacement alternatives:
(Website visitor, the size of most monitors prevents us from placing the competitive analysis chart on this spot. Please link to the Competitive Analysis. After you've read the chart, click the link at the bottom, Return to Creative Cuisine's Market Study, to return to this page.) Creative Cuisine's competitive advantage is its ability to deliver consistently high quality, personalized meals, custom menu planning, grocery shopping, and preparation of meals right in the client's home for consumption at the client's convenience.
This is an opportune time for beginning a personal chef service. According to Entrepreneur Magazine, some of the fastest growing trends in service businesses today include:
- Servicing smaller, upscale markets
- Products and services for children and their parents
Creative Cuisine is better positioned to service small, upscale markets in a personal way than are the other competitors. Creative Cuisine's personal chef services are specifically geared toward affluent couples with children. Busy working parents have more quality time to spend with their children when they aren't rushing to get dinner on the table, and their children get a more nutritious dinner. Creative Cuisine also has the advantage of being a home-based business which requires lower overhead and start-up costs than a traditional foodservice business.
Target Markets
The following cities in the West Suburban Boston area have been targeted by Creative Cuisine. All have high average household incomes and large populations of educated, married couples with families who own their own homes:
| Community |
|
|
|
|
Married
Couple/
Family |
Ave.
Age |
|
| Weston |
|
|
10,321 |
|
|
|
|
| Wellesley |
$116,736 |
|
|
|
|
|
|
| Lincoln |
$101,177 |
|
|
|
|
|
|
| Winchester |
$100,946 |
|
|
|
|
|
|
| Lexington |
$99,180 |
|
|
|
|
|
|
| Newton |
$94,753 |
|
|
|
|
|
|
| Belmont |
$84,873 |
|
|
|
|
|
|
| Brookline |
$80,039 |
|
|
|
|
|
|
| Arlington |
$65,610 |
|
|
|
|
|
|
| Watertown |
$63,636 |
|
|
|
|
|
|
| Cambridge |
$63,489 |
|
|
|
|
|
|
Source: Equifax National Decision Systems, 1996, Courtesy of Community Newspaper Company
Market Penetration
Research indicates the most effective advertising tool for a personal chef service is placing a small display ad in a weekly community newspaper with a paid subscription base of 5,000 to 40,000 readers. All of the above communities have a weekly community newspaper, although some offer free subscriptions and some have a paying subscriber base.
In addition, the following marketing tools will be used:
- Offering $100 discount on initial service for first-time customers
- Developing contact list for referrals through friends, family, co-workers and networking
- Fliers and business cards placed at strategic locations
- Occasional advertising in other publications (e.g., Boston Symphony program)
- Press releases to community newspapers and radio stations
During the initial inquiry by the prospective client, an appointment will be scheduled in the client's home to discuss the service. At the first meeting, the Creative Cuisine chef will present sample menus and sample meal options. A questionnaire on food choices and preferences will be completed. After presenting the pricing structure, a plan will be chosen, a check will be collected, and a date will be set for the first service. An interim phone call will be made to present the personalized menu and obtain menu approval. A small gift will be left at the first service appointment with a thank you card. A follow-up call a few days after service begins will inquire into the client's satisfaction with the meals. If this is a trial customer, an additional call will be made one week later to see if their is interest in becoming a regular client; if so, a regular service date will be set. For all future service, a check made out to Creative Cuisine will be left at the client's home on the service date.
Creative Cuisine has the potential to create a very profitable business by capitalizing on several major trends of the 1990s. With the increasing numbers of affluent families comes their increasing demands. Creative Cuisine can help solve some of their problems while meeting these demands.
| |
Creative Cuisine Solution
|
- More stress
- No time to cook
- Too many decisions
- Want to eat healthier
- Hate to grocery shop
- Tired of same old food
- Impersonal world
|
- Less stress
- Relax with family instead
- Fewer decisions
- Eat healthier
- We'll grocery shop for you
- Lots of variety in food choices
- Personal attention
|
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Competitive Analysis Chart
Competitive Analysis - For Creative Cuisine
Content provided by the U.S. Small Business Administration, Online Women's Business Center. SBA's programs and services are provided to the public on a non-discriminatory basis.
| Factors: |
|
|
|
|
|
|
| Overall Rating |
|
***** |
*** |
**** |
*** |
** |
| Customer Service |
|
***** |
** |
** |
** |
** |
| Convenience |
|
***** |
*** |
*** |
***** |
*** |
| Quality of meals |
|
***** |
*** |
**** |
*** |
** |
| Selection of meals |
|
***** |
*** |
*** |
*** |
** |
| Healthy options |
|
***** |
** |
*** |
*** |
** |
| Low-fat options |
Moderate |
***** |
** |
** |
*** |
** |
| Vegetarian options |
Moderate |
***** |
** |
*** |
*** |
** |
| Unique options |
Moderate |
***** |
** |
*** |
** |
** |
| Meal Price/Value |
Moderate |
*** |
**** |
**** |
*** |
*** |
| Product Expertise |
Moderate |
***** |
*** |
**** |
*** |
** |
| Location |
Moderate |
***** |
*** |
**** |
*** |
***** |
| Adv./ Mktg. |
|
|
|
|
|
|
| Strengths |
|
Quality, Service, Convenience, Uniqueness |
Value, Consistency, Market Penetration |
Value, Consistency, Reputation |
Convenience Delivery |
Convenience Location |
| Weaknesses |
|
Price, Market Penetration, New Concept |
Meat & potatoes focus limits menu. |
You can't eat pizza/Italian every night. |
Even good Chinese food gets boring. |
Few prepared meal options. Quality, taste and nutrition inconsistent. |
(*) Priority: Level of importance to target customer - affluent, busy professionals.
Legend:
*
**
***
****
***** |
unsatisfactory
somewhat satisfactory
satisfactory
mostly satisfactory
very satisfactory |
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