Marketing Fundamentals
Chapter 13. Sample Marketing Plan
Stephan Sorger
www.stephansorger.com
Disclaimer:
• All images such as logos, photos, etc. used in this presentation are the property of their respective copyright
owners and are used here for educational purposes only
• Some material adapted from: Sorger, “Marketing Planning: Where Strategy Meets Action”
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Key Topics
Term
Description
Report-based format
Traditional format, with text and figures to support each step
10-slide format
Short-form format, covering only essential elements
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Executive Summary
Criteria
Metric
Comments
Objective
10% share by 2012 Increase market share of subcompact cars in U.S.A.
Market Overview
Size: 460K units/yr Market trends point to continued growth
Market Segments
Primary: Millennial Millennials: 80 million people; 20% of buying market
Competitors
Leader: Honda Fit
Product
#1 in fuel economy Strong value proposition; Premium features
Pricing
$13,320 - $17,120 Premium pricing to support premium product positioning
Distribution
3,800 Ford dealers Exclusive distribution through dealer network
Promotion
25% of budget
Digital marketing to target web-savvy Millennials
Finance
3 primary metrics
Awareness; Market share; Customer satisfaction
Honda at 14.6%; Crowded market
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Market Overview
Market Factor
Description
Industry
Automobile manufacturing. Category: Small (subcompact) cars
NAICS/SIC code
NAICS 336111/ SIC 3711: Automobile manufacturing
Customer needs
Direct needs: Transportation
Indirect needs: Freedom, self-expression, self-esteem
Size
About 459,802 subcompacts sold in U.S. market in 2009
Growth Rate
About 11% growth rate for light vehicle sales in U.S. for 2010
Political Trends
NHTSA CAFÉ standard: 35.7 MPG in 2015
Economic Trends
Continuing high gasoline prices favor subcompact cars
Social Trends
Small cars seen as fashionable; Negative perception of large SUVs
Technological Trends Increased usage of safety technologies, such as ABS and ESC
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Targeting Chart
Market Segment
Potential
Alignment
Marketability
Millennials
80 million people
Ford’s new technologies
a good fit for tech-savvy
market
Accessible through
digital media
Ford Fiesta Marketing Plan: Positioning Chart
Market Segment
Positioning Approach
Points of Difference Points of Parity
Millennials
Benefits: “All of the benefits
of a larger car in a
smaller package.”
Premium elements Ford reputation; Quality;
in a subcompact; Wide dealer network
Bluetooth; SYNC
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Market Structure
Manufacturer
Subcompact Model U.S. Sales, 2008
Market Share
BMW
Chevrolet
Honda
Hyundai
Kia
Mercedes/Smart
Nissan
Scion
Suzuki
Toyota
Volkswagen
TOTAL
MINI
Aveo
Fit
Accent
Rio
ForTwo
Versa
xD
SX4
Yaris
Rabbit/Golf
9.8%
8.4%
14.6%
14.8%
7.9%
3.2%
18.0%
3.2%
4.5%
13.9%
1.7%
100%
45,225
38,516
67,315
68,086
36,532
14,595
82,906
14,499
20,704
63,743
7,681
459,802
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Market Structure
Criteria
Ford Fiesta
BMW MINI
Honda Fit
Toyota Yaris
Market Share
New model to U.S. 8.4%
14.6%
13.9%
Messaging
Premium features
European heritage Quality & design
Reliability
Competitive Adv.
Operations
Edgy marketing
Technology
Procurement
Strengths
Can-do culture
Racing heritage
Well-built cars
Reliable cars
Weaknesses
Low innovation
High service costs Low innovation
Product recalls
Product: MPG
30 city/ 40 hwy
32 city/ 37 hwy
27 city/ 33 hwy
29 city/ 36 hwy
Pricing
$17,150: 5-door
$19,500: hardtop
$18,260; 5-door
$13,705; 5-door
Distribution
Worldwide dealer
Worldwide dealer
Worldwide dealer
Worldwide dealer
Promotion
Social media
Traditional & social Traditional & social Traditional & soc.
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Market Opportunity & Strategy
Objective
Market Opportunity
Strategy
Increase market share of
subcompact cars in U.S.
to 10% by end of 2012
Premium subcompact cars
for Millennials
Launch Ford Fiesta in United States
Market goal: Target Millennials
Design goal: Leverage global design
Volume goal: 46,000 units/year
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Market Opportunity & Strategy
Product Criteria
Ford Fiesta
Target Segment
Early adopters within Millennial demographic
Features
Blockbuster feature: Class-leading MPG
Technology features: SYNC; Bluetooth; Sat-Nav
Premium features: Leather seats; High-quality interior materials
Parity features: Meets expectations for cargo volume, etc.
Quality
Leverage Ford’s reputation for quality
Packaging
Offer 5 different models to suit different tastes and applications
Brand
Emphasize innovation and new technologies to change brand perception
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Value Proposition Elements
Element
Ford Fiesta
Target Segment
Millennials who appreciate luxury amenities in a subcompact package
Motivation to Buy
and Use Cases
Budget-minded consumers; Performance-minded consumers;
Family-minded parents to give vehicle to children
Product Name
“Fiesta” name could remind older people of previous lackluster models
Must use distinctive styling to set it apart
Product Category
Premium subcompact automobiles
Benefits
Head: Class-leading MPG; Ford quality
Heart: Sexy styling; Zippy performance; Latest technology
Competitors
Direct competitors: Other subcompacts
Indirect competitors: Public transportation; Used cars
Differentiation
Primary: Feaures—premium features normally found only in larger cars
Secondary: Form—distinctive shape
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Pricing Tactics
Pricing Criteria
Ford Fiesta
Objective
Product-quality leadership
Approach
Perceived value; Premium price for a premium product
Competitor Impact Direct competitors: Fiesta includes premium features not included by others
Indirect competitors: No used car offers such advanced technology
Channel Impact
Ford network of dealers expected to welcome bold new entry to U.S.
Costs
Costs include development costs to tailor vehicles to U.S. market
Environment
Slow economic recovery and high gasoline prices will favor subcompacts
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Distribution Tactics
Distribution Criteria Ford Fiesta
Intensity
Exclusive; Ford dealers only
Levels, Consumer Leverage existing Ford dealerships
Levels, Business
Fleet sales not planned for initial launch; will re-evaluate as demand grows
Logistics
Inventory levels; Sales training; Service training; Training materials
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Promotion Tactics
Criteria
Introduction Phase
Goals
Create awareness; Educate customers Create awareness; Educate; Stimulate trial
Targets
Early adopters
Push/Pull Push: Product demonstrations
Pull: Educating consumers
Ford Fiesta
Millennials, especially early adopters
Push: Supply Ford dealers with training
Pull: Target consumers with digital marketing
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Marketing Communications Mix
Element
Ford Fiesta
Advertising
Objective: Informative advertising
Budget factors: Higher budget due to new product in crowded market
In-house vs. External: External due to large account, large media spend
Media: Digital media; TV; Radio; Magazine; Outdoor; Product placement
Social Media
Ford Fiesta Movement; Social networking; SEO; SEM; Video sharing
Viral Marketing: 100 Agents; Fiesta community app
Sales Promotion
Fiesta Reservations Program; No price-offs or rebates
Public Relations
Objective: Drive buzz; SEO-enabled press releases; Automotive outlets
Events
Objective: Build awareness; Sponsor Millennial-based events
Race competition version of Fiesta
Personal Selling
Leverage Ford dealer network; Provide sales training
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Financial Data
Financial Data
Description
Fixed Cost
Fixed cost, Total: $500 million
Unit Cost
Cost per unit: $8,000 (estimate)
Price
Average price: $16,000 (estimate)
Sales Forecast
Year 1: 40,000 units * $16,000/ unit = $640 million
Year 2: 50,000 units * $16,000/ unit = $800 million
Year 3: 50,000 units * $16,000/ unit = $800 million
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Pro Forma Income Statement
Element
Year 1
Year 2
Year 3
Revenue
$640 million
$800 million
$800 million
Cost of Goods Sold (COGS) $320 million
$400 million
$400 million
= Cost/Unit * Units
=40K units*$8K/unit =50K units*$8K/unit =50K units*$8K/unit
Gross Margin Amount
= Revenue – COGS
$320 million
=$640M - $320M
$400 million
=$800M - $320M
$400 million
=$800M - $320M
Gross Margin Percentage
= (Revenue – COGS)/ Rev.
50%
=$320M / $640M
50%
=$400M / $800M
50%
=$400M / $800M
Expenses, Total
$480 million
$300 million
$250 million
Operating Income
- $160 million
=$320M - $480M
$100 million
=$400M - $300M
$150 million
=$400M - $250M
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Proposed Marketing Budget
Budget Category
%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Advertising
Social Media
Sales Promotions
Public Relations
Events
Personal Selling
Other Items
Total
35
25
5
5
20
5
5
100
1
1
4
4
4
4
4
4
4
2
1
2
1
1
2
3
3
3
3
3
3
1
1
1
1
1
1
1
1
0.2 0.3 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.3 0.2
1
1
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Project Schedule
Task and Description
Resources
Status
January February March
1. Infrastructure Activities
1.1 Get cars:Fiesta Movement Joe
1.1 Get social media pages Chris
100%
80%
Start: 1/3 End: 2/3
Start: 1/3 End: 2/3
2. Pre-Launch Activities
2.1 Develop creative for ads
2.2 Content for social media
2.3 Prepare dealer material
30%
40%
80%
Start: 1/7 End: 2/7
Start: 1/7 End: 2/7
Start: 1/3 End: 2/3
Bill
Chris
Maria; Sales mgr.
3 Launch Activities
3.1 Update Fiesta Movement Chris
3.2 Launch ad campaign
Bill; Agency X
New
New
Start: 2/10 End: 3/20
Start: 2/10 End: 3/20
4 Milestones/ Deliverables
4.1 1000th Facebook Friend
4.2 10000th Fiesta customer
Pending
Pending
Event: 2/15
Joe
Bill
Event: 3/31
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Metrics Family Table
Metrics Family
Description
Example Metrics
Awareness
Brand building measurement Brand recognition; Brand recall
Potential reach (#fans); Mentions/day
Market Share
Sales performance measure Ford Fiesta sales per month
Ford Fiesta sales by geography
Competitor sales
Customer Sat.
Satisfaction measurement
Third party ratings; J.D. Powers
Social media: Sentiment trends
Customer satisfaction questionnaires
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Contingency Plan
Scenario
Trigger
Actions
Low Awareness
Awareness below 50%
Gather market research
Assess communications vehicles
Re-evaluate advertising
Low Market Share Share 20% below forecast
Low Satisfaction
Affirm value of car
Provide incentives; Reprice
Below top 3 in quality ranking Assess perceptions of quality
Target areas for improvement
Advertise path to quality
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1
Ford Fiesta Marketing Plan: Ten Slide Format
Slide #
Slide Title
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Executive Summary
Market
Competitive Landscape
Product
Pricing
Distribution
Promotion
Finance
Schedule
Control Metrics
© Stephan Sorger 2015: www.stephansorger.com; Marketing Fund., Ch. 13. Sample Plan; 1