PRINCIPLES OF MARKETING

IQRA UNIVERSITY
MBA PROGRAM

SPRING-2010
 MARKETING PLAN
SUBMITTED TO
Ms. Midhat Masood
IQRA University

SUBMITTED BY

STING
Group
MBA (Evening)
Spring Semester 2010

A report submitted to the Department of Marketing for

Principles of Marketing in partial fulfillment of the requirement.

DATE OF SUBMISSION: 28th Mar 2010

GROUP Member

Muhammad Shakeel
Reg. 9858

Haseeb Iqbal
Reg. 10960

_______________
Reg. 000000

____________
Dear Ma’am,

Here the “Marketing Plan”, you asked us to prepare this report as a course
requirement of “Principles of Marketing”.

We the students of Sting Group (MBA Spring Semester) have made this term
paper along with our group members. The report has undoubtedly enhanced
our knowledge regarding the “Marketing Plan”. We came to learn about
several basic contents of marketing plan through this report.

We therefore, would like to request you to accept our report, and thank you for
giving us the opportunity for this report. We believe our report on “Marketing
Plan” is successful one and we truly enjoyed it. We will be happy to get such
reports further.

Sincerely Yours,

Sting Group
MBA
Spring Semester
 ACKNOWLEDGEMENT

It is with affection and appreciation that we acknowledge our indebtedness

to our honorable course teacher M. Amzad Hossain Sarker,
Lecturer, Department of Marketing, Faculty of Business
Administration & Management, Patuakhali Science & Technology
University, Dumki, Patuakhali., who assigned us to make this
report and helped us with his support, encouragement and
expertise.

We are also very grateful to our friends & many individuals, for their
enthusiastic encouragements & helps during the preparation of this report and
for their assistance in typing and proofreading this manuscript.

EXECUTIVE SUMMARY

This report is an assigned job as a partial fulfillment of course requirement by

our honorable course teacher M Amzad Hossain Sarker, Lecturer, Faculty of
Business Administration & Management, Patuakhali Science & Technology
University, Dumki, Patuakhali. It’s an optimum aggregated outcome of five
pupils about “Marketing Plan.”

The view of this report was to make a consciousness about marketing plan
and strategies for current marketing situation. Here some points were
thoroughly studied to make it an effective report. The analyzed information
was thoroughly revised first, and then organized. The processed data were
interpreted to achieve the report objective.
Reporting on Marketing Plan without sufficient reference books is not an easy
job to accomplish, but we have enjoyed it very much.

INTRODUCTION

We have made this term paper on “Marketing Plan” for achieving in-depth
knowledge over it. Through this term paper, we have come to know a detail on
marketing plan.
This term paper discuss about the analysis of Marketing Plan, its
characteristics, essentiality, role over market etc. We have made our best to
gather adequate information and we hope this will help all the students to
gather a rich knowledge on “Marketing Plan”

PURPOSE OF THE REPORT

We have assigned this report for our practical fulfillment on “Principles of

Marketing” course. There is another trend for such a term paper, because this
term paper will help us to increase practical knowledge on Marketing Plan.
This is an opportunity for knowing the theory of Marketing Plan. The report
will help us to implement any decision on Marketing Plan in future. This term
paper express the result that what we earn by our six month worship. To make
our own evaluation on “Principles of Marketing” the report will help us
partially. This is an opportunity to find out something more about the
 marketing plan, because for making this term paper we have to visit different
web sites, and many books of marketing.

LIMITATIONS OF THE TERM PAPER

As a student of Faculty of Business administration & Management, level- 2,

semester-1, we have red “Principles of Marketing” for the first time. So making
a term paper on “Marketing Plan” was really tuff job to us. Besides this we have
encountered with some other problem, such as-

• Marketing is a vast course and Marketing Plan is one of the greatest

part of it. In our textbook “principles of Marketing”, there is only a
single paragraph of Marketing Plan. Therefore, it was very tuff to
make a report based on such a topic.

• For preparing this report, we have to rely heavily in internet. In our

university area there is no internet connection, moreover we are
suffering from shortage of computer facilities. So make our way
more complicated.

• We have to collect most of the information from Patuakhali,

because of using internet. During collecting information and
preparing the term paper there is an unrest situation in allover the
country. Most often the computer shops remain closed, which
hampered our term paper.
 METHOD OF COLLECTING DATA AND PREPARE THE

ORIGIN OF THE TERM PAPER (REPORT)

We are lucky to say that our honorable course teacher of “Principles of

Marketing” M Amzad Hossain Sarker gives us the opportunity to produce this
report. He assigned us a report on “Marketing Plan”. This report is prepared
based on theory and some information has collected from internet (www.mark
etingplan.com & http://www.websitemarketingplan.com ) and from a
renowned journal “Marketing plan pro.” Some other information also collected
from our textbook and other books.

PROCEDURE FOR GATHERING DATA

Preparing this report on Marketing Plan, we follow several methods and

research approach. The major portion of this report based on secondary data.
The web page of marketing plan (www.marketingplan.com and
http://www.websitemarketingplan.com) and the renowned journal “Marketing
plan pro” help us to find out the sample of marketing plan, outlines, different
tips, its definition, and others related information. We have also collected data
from several books along with our textbook. This is the procedure for
gathering data of our report.
 Ta
ble of

Contents

Topics Name Page No

Acknowledgement
Executive summery
Introduction
Purpose of the report
Limitation
Origin of the report
Procedure of gathering data
The marketing plan
The purpose and content of marketing plan
Marketing Plan Tips
The Marketing Plan and the Business Plan
Sample Marketing Plan for ‘Javanet’
Conclusion
Bibliography
THE MARKETING PLAN: AN INTRODUCTION

A marketing plan outlines the specific actions you intend to carry out to
interest potential customers and clients in your product and/or service and
persuade them to buy the product and/or services you offer.

The marketing plan implements your marketing strategy. Or, "the marketing
strategy provides the goals for your marketing plans. It tells you where you
want to go from here. The marketing plan is the specific roadmap that's going
to get you there. "*

• A marketing plan may be developed as a standalone document or as

part of a business plan. Either way, the marketing plan is a blueprint
for communicating the value of products and/or services to your
customers. A Marketing Plan is a written document that details the
actions necessary to achieve a specified marketing objective(s). It
can be for a product or service , a brand , or a product line

From where the Marketing plan needed

Managing the marketing process requires the four marketing management
functions- Analysis, Planning, Implementation, and Control. The company
first develops company wide strategic plans, and then translates them into
marketing plan for each division, product and brand

Analysis

Planning Implementation Control

Measure results
Develop strategic Carry out the
plans Plans
Evaluate results

Develop marketing Take corrective

plans actions
* "The Key to Marketing: Use a Plan", Author: Bobette Kyle
THE PURPOSE AND CONTENT OF MARKETING PLAN

It serves to document how the organizations strategic objectives will be achieve

through specific marketing strategies and tactics, with the customer as the
starting point. It is also link to the plans of other departments with in the
organization. Without the appropriate level of organizational support and
resources, no marketing plan can succeed.

Although the exact length and layout will vary from company to company, a
marketing plan usually contains the sections described in following

Content Purpose
Executive summary Presents a brief summary of the main goals and
recommendations of the plan for management review,
helping top management to find the plans major points
quickly.

Current marketing Describes the target market and company’s position in it,
situation including information about the market, product
performance, competition, and distribute. This section
includes :
• A market description that defines the market
and major segments.
• A product review, that shows sales, prices, and
gross margins of the major products in the
product line.
• A review of competition, which identifies
major competitors and assesses their markets.
• A review of distribution, which evaluates
recent sales trends and other developments in
major distribution channels.
 Threats and Assesses major threats and opportunities that the product
opportunity analysis might face, helping management to anticipate important
positive or negative development t5hat might have an
impact on the firm and it’s strategies.

Objectives and States the marketing objectives that the company would
issues like to attain during the plan’s term and discusses key
issues that will affect their attainment.

Marketing strategy Outlines the broad logic by which the business unit
hopes to achieve it’s marketing objectives and the
specifics of target markets, positioning, and marketing
expenditure levels.

Actions programs Spells out how marketing strategies will be turned into
specific actions programs.

Budgets Details a supporting marketing budget that is essentially

a projected profit –and- loss statements. It shows
expected revenues and expected cost.

Controls Outlines the control that will be used to monitor progress

and allow higher managements to review implementation
results and spot products that are not meeting their goals.

MARKETING PLAN TIPS

A marketing plan is more than something you “have to do” each year. It is the
framework upon which your company is marketing success depends. As you begin
the planning process for 2006, keep these important tips in mind:

1. Be strategic. There are more good marketing programs out there than you
can shake a stick at, much less implement. Your job is to figure out – through the
planning process – which of those programs makes strategic sense for your
business. The marketing plan can then help you stay focused throughout the year.

Think goals and objectives. A strategic marketing plan is about identifying

marketing programs that will result in achieving your business goals. Start with the
big picture objectives then define general strategies that support those goals.
Finally, identify specific marketing programs that can “make it happen” for your
business.

For example, a goal may be to expand sales of the Widget Brand by 15% in the
coming year. Potential strategies for doing this could include: (1) Improving the
existing Mini Widget, (2) increasing sales force penetration and (3) creating a new
line of Widgets. Each strategy is a different approach to increasing Widget sales,
and each requires different supporting actions and marketing programs to achieve
the goal of increasing sales by 15%.

Programs to improve the Mini Widget could include (1) adjusting pricing, (2)
updating the packaging or (3) adjusting the marketing message to emphasize a
more appealing benefit. Contrast this to programs designed to increase sales force
penetration (such as bringing on a new broker or establishing the ability to gather
leads and take orders online).

The right actions and programs for your particular business can vary dramatically,
depending on your goals and strategies. Consequently, strong strategic analysis
behind your marketing plan can make a dramatic difference in the success of your
marketing efforts.

2. Understand that feeling uncertain is normal. Feeling overwhelmed or incredibly

confused at the beginning of the planning process is expected. The purpose of
planning is to find your way to the best actions for your business. As you progress
towards the end of the analysis, the best programs to include in your marketing
plan to grow your particular business will become clearer.
3. Be realistic.
realistic Optimism is a plus in marketing your business, but understand
your company’s limitations. A small or one-person business can implement only a
fraction of the marketing programs that large companies can. So, choose programs
carefully and concentrate on seeing them through as the year progresses.

4. Stay focused.
focused Your marketing plan is only as good as your implementation.
Keeping your “eye on the ball” – rather than spreading yourself too thin and
implementing poorly – can make the difference between profit and loss.

5. Watch the budgets.

budgets For each marketing program included in your plan,
spend some extra time and collect real-world costs to use in the budget. This can
prevent overspending later on.

6. Put measurements in place. place It is difficult to tell if a marketing

program is a success if there are no mechanisms to measure results. Write up what
you wish to accomplish with the program, how you are going to measure those
accomplishments, and your baseline measurements. Later – during and after
execution – you will be able to identify and fix problems as well as pinpoint
reasons for success.

7. Don’t forget all four of marketing’s P’s. Promotion gets a lot of

attention. Pricing, place (distribution strategies) and product are equally important
to the bottom line. Consider adding new or improved products/services to the mix,
evaluating pricing strategies and improving distribution, along with advertising and
promotional campaigns.

Following through with these seven marketing plan tips will strengthen both the
long-term and short-term foundations upon which your business depends.

THE MARKETING PLAN AND THE BUSINESS PLAN

When writing the business plan, the Marketing Plan section explains how you are
going to get your customers to buy your products and/or services. The marketing
plan, then, will include sections detailing your:

• Products and/or Services and your Unique Selling Proposition

• Pricing Strategy
• Sales/Distribution Plan
• Advertising and Promotions Plan

The easiest way to develop your marketing plan is to work through each of these
sections, referring to the market research you completed when you were writing
the previous sections of the business plan.

Products and/or Services

This part of the marketing plan focuses on the uniqueness of your product or
service, and how the customer will benefit from using the products or services
you're offering. Use these questions to write a paragraph summarizing these
aspects for your marketing plan:

What are the features of your product or service?

Describe the physical attributes of your product or service, and any other relevant
features, such as what it does, or how your product or service differs from
competitive products or services.

How will your product or service benefit the customer?

Remember that benefits can be intangible as well as tangible; for instance, if you're
selling a cleaning product, your customers will benefit by having a cleaner house,
but they may also benefit by enjoying better health. Brainstorm as many benefits as
possible to begin with, and then choose to emphasize the benefits that your
targeted customers will most appreciate in your marketing plan.

What is it that sets your product or service apart from all the rest? In other words,
what is your Unique Selling Proposition, the message you want your customers to
receive about your product or service that is the heart of your marketing plan? The
marketing plan is all about communicating this central message to your customers.

The role of research

Marketing plans are not create in a vacuum. To develop successful strategies

and actions programs, marketers need up-to-date information about the
environment, the competition, in the market segment to be serving. Often,
analysis of internal data is the starting point for assessing the current marketing
situations. As the plan is put into effect, marketers use advertisement and other
forms of research to measure progress toward objective and identifiy areas for
improvement. This deeper understanding provides a foundation for building
competitive advantages through well informed segmenting, targeting, and
positioning decisions,

The role of relationship

The marketing plan shows how the company will establish and maintain
profitable customer relationships. However, it also shapes a number of internal
and external relationships. First, it affects how marketing personnel work with
each other and with departments. Second, it affects how the company works
with suppliers, distributors, and strategic alliance partners to achieve the
objectives listed in the plans. Third, it influences the company’s dealings with
other stakeholders.

From marketing plan to marketing action

Companies generally create yearly marketing plans, although some plans cover
a longer period. Marketers start planning well in advance of the implementation
date to allow time for marketing research, through analysis, management
review, and co ordination between departments. Some marketers design
contingency plans, as in the sample plan below, for implementation if certain
conditions emerge. For effective unimplementation and control, the marketing
plan should define how progress toward objectives will be measured. Managers
typically use budget, schedules and performance standard for monitoring and
evaluating results.
 Sample Marketing Plan for ‘Javanet’

JavaNet, is a cafe, including a great opportunity for communication and

entertainment through the medium of the Internet. This section takes you inside
the Marketing plan for ‘Javanet’.
1.0 Executive Summary 3.7.3 Promotion

2.0 Situation Analysis 3.7.4 Service

2.1 Market Summary 3.8 Marketing Research

Target Markets 4.0 Financials, Budgets, and

Forecasts
2.1.1 Market Demographics
4.1 Break -even Analysis
Market Analysis

2.1.2 Market Needs Break -even Analysis

2.1.3 Market Trends Break -even Analysis

Market Forecast 4.2 Sales Forecast

2.1.4 Market Growth Monthly Sales Forecast

Target Market Gro wth Sales Forecast

4.3 Expense Forecast

2.2 SWOT Analysis
Monthly Expense Budget
2.2.1 Strengths
Marketing Expense Budget
2.2.2 Weakness es
4.4 Linking Sales and
2.2.3 Opportunities
Expenses to Strategy
2.2.4 Threats
Sales vs. Expenses Monthly
2.3 Competition 4.5 Contri bution Margin

2.4 Services 5.0 Controls

2.5 Keys to Success 5.1 Implementation Milestones

2.6 Critical Issue s Milestones

2.7 Macroenvironment Milestones

5.2 Marketing Organization

3.0 Marketing Strategy
5.3 Contingency Planning
3.1 Mi ssion

3.2 Marketing Objectives

3.3 Financial Objectives

3.4 Target Marketing

3.5 Positioning

3.6 Strategy Pyramids

3.7 Marketing Mix

1. Executive Summary

The goal of this marketing plan is to outline the strategies, tactics, and
programs that will make the sales goals outlined in the JavaNet business plan a
reality in the year 1999.
JavaNet, unlike a typical cafe, provides a unique forum for communication and
entertainment through the medium of the Internet. The public wants: (1) access
to the methods of communication and volumes of information now available on
the Internet, and (2) a place to socialize and share these experiences with
friends and colleagues.
Marketing will play a vital role in the success of JavaNet. JavaNet must build a
brand around the services it offers by heavily promoting itself through local
television, radio, and print advertising. A strong emphasis will be put on
keeping customers and building brand loyalty through programs focused on
staffing, experience, and customer satisfaction.

Our target markets include:

• Students from nearby housing centers.

• Business people from the downtown business centers and
professional buildings.
• Seniors from nearby retirement facilities.
2. Situation Analysis

JavaNet just opened its doors for business a little over a month ago.
Business is good, and customers have been impressed with our offerings, but
we need to focus our efforts on implementing the strategies, programs, and
tactics outlined in the original business plan.Sales are brisk and in-line with
projections.
The local community is rapidly accepting the Internet services side of
the business. Memberships are meeting the projections outlined in the business
plan, and sales of Internet services are meeting the goals forecast. Students love
to gather for late-night sessions, nearby seniors are getting a glimpse of what
the Internet offers and local business people love to stop by for a quick bite and
an email check.
Market Summary
JavaNet is faced with the exciting opportunity of being the first-mover in the
local cyber-cafe market. The consistent popularity of coffee, combined with the
growing interest in the Internet, has been proven to be a winning concept in
other markets and will produce the same results here.
Target Market Growth:
• University students continue to grow at a steady pace, at nearly 4%
• Office workers in the downtown area and nearby professional
buildings continue to add value, growing at 3%
• Seniors are becoming an important part of downtown business,
growing at almost 6%
 • Teens continue to play a major role in downtown foot-traffic, growing
at 2%

Market Demographics

JavaNet's customers can be divided into two groups. The first group is familiar
with the Internet and made up of students from the University of Oregon and
business people from nearby downtown offices and professional centers.
The second group is not as familiar with the Internet. This group is made up of
seniors from the downtown retirement centers. They use the Internet to
communicate with friends and family and they will be regular users of the Java
Net service.

Market Analysis
Potential Growth 2004 2005 2006 2007 2008 CAGR
Customers
University 4% 10,000 10,400 10,816 11,249 11,699 4.00%
Students
Office 3% 20,000 20,600 21,218 21,855 22,511 3.00%
Workers
Seniors 6% 3,000 3,180 3,371 3,573 3,787 6.00%
Teenagers 2% 2,000 2,040 2,081 2,123 2,165 2.00%
Other 0% 0 0 0 0 0 0.00%
Total 3.50% 35,000 36,220 37,486 38,800 40,162 3.50%

Market Needs
Factors, such as addiction, and historical sales data ensure that the high demand
for coffee will remain constant over the next five years.
The potential growth of the Internet is enormous, to the point where one day, a
computer terminal with an online connection will be as common and necessary
as a telephone or toilet.. Establishing itself as the first cyber-cafe in the area,
JavaNet will enjoy the first-mover advantages of name recognition and
customer loyalty. Initially, JavaNet will hold a 100 percent share of the cyber-
cafe market locally. In the next five years, competitors will enter the market.
JavaNet has set a goal to consistently maintain a market share of greater than
fifty percent.

Market Trends

People like to communicate their Internet experiences with their friends,

colleagues, and family. However, it can be difficult to do it in front of a
computer terminal at the office or in the family study. A comfortable place to
gather and share these experiences is becoming a real need.
JavaNet will provide:
• A meeting place for business people interested in sharing their
Internet-based business ideas.
• A social hub for students and young people interested in sharing a
beverage and their Internet experiences with friends.
• A place for nearby seniors to gather and learn about the powers of the
Internet and better communication methods.
• A stopping point for travelers in need of an Internet connection.
Market Growth

The market for the services JavaNet will offer is growing rapidly. The cyber-
cafe has not come to this area yet, but similar services are growing rapidly on a
global scale. Large cities that cater to large numbers of traveling business
people and tourists have been saturated with businesses offering the services
JavaNet will offer. The student population continues to grow as the University
grows in popularity with high-school graduates from out of state. JavaNet will
target these groups with radio and TV spots on local stations.

Fig: - Market Forecast

 Fig:- Target Market Growth

SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal
strengths and weaknesses JavaNet must address. It also allows us to examine
the opportunities presented to JavaNet as well as potential threats.
JavaNet has a valuable inventory of strengths that will help it succeed. These
strengths include: a knowledgeable and friendly staff, state-of-the-art computer
hardware, and a clear vision of the market need. Strengths are valuable, but it is
also important to realize the weaknesses JavaNet must address. These
weaknesses include: a dependence on quickly changing technology, and the cost
factor associated with keeping state-of-the art computer hardware.
JavaNet's strengths will help it capitalize on emerging opportunities. These
opportunities include, but are not limited to, a growing population of daily
Internet users, and the growing social bonds fostered by the new Internet
communities. Threats that JavaNet should be aware of include, the rapidly
falling cost of Internet access, and emerging local competitors.

Strengths
 1. Knowledgeable and friendly staff. We have gone to great lengths at
JavaNet to find people with a passion for teaching and sharing their
Internet experiences. Our staff is both knowledgeable and eager to please.
2. State-of-the art equipment. Part of the JavaNet experience includes
access to state-of-the-art computer equipment. Our customers enjoy
beautiful flat-screen displays, fast machines, and high-quality printers.
3. Up-scale ambiance. When you walk into JavaNet, you'll feel the
technology. High backed mahogany booths with flat-screen monitors
inset into the walls provide a cozy hideaway for meetings and small
friendly gatherings.
4. Clear vision of the market need. JavaNet knows what it takes to
build an upscale cyber cafe. We know the customers, we know the
technology, and we know how to build the service that will bring the two
together.

Weaknesses
1. A dependence on quickly changing technology. Internet is the
technology that is the Internet changes rapidly. JavaNet needs to keep up
with the technology because a lot of the JavaNet experience is
technology.
2. Cost factor associated with keeping state-of-the-art hardware.
Keeping up with the technology of the Internet is an expensive
undertaking. JavaNet needs to balance technology needs with the other
needs of the business.

Opportunities
1. Growing population of daily Internet users. The population of
daily Internet users increases, so will the need for the services JavaNet
offers.
 2. Social bonds fostered by the new Internet communities.
JavaNet will capitalize on this social trend by providing a place for
smaller and local Internet communities to meet in person.

Threats
1. Rapidly falling cost of Internet access. The cost of access to the
Internet for home users is dropping rapidly.
2. Emerging local competitors. Currently, JavaNet is enjoying a first-
mover advantage in the local cyber-cafe market. However, additional
competitors are on the horizon.

Competition
The dual product/service nature of JavaNet's business faces competition on two
levels. JavaNet competes not only with coffee retailers, but also with Internet
service providers. Heavy competition between coffee retailers creates an
industry where all firms face the same costs. There is a positive relationship
between price and quality of coffee. Some coffees retail at $8/pound, while
other more exotic beans may sell for as high as $16/pound. Wholesalers sell
beans to retailers at an average of a 50% discount.

Services

Some of the Internet and computing services available to JavaNet customers are
listed below:

• Customers can sign up for a JavaNet email account.

• Popular Internet utilities will be available.
• Access to Netscape or Internet Explorer browsers.
• Access to laser and color printing.
• Access to popular software applications.
JavaNet will also provide good coffee, specialty drinks, bakery goods, and a
comfortable environment will provide JavaNet customers with a home away
from home; a place to enjoy the benefits of computing in a comfortable and
well kept environment

Macro environment

The retail coffee industry in this area experienced rapid growth at the beginning
of the decade and is now moving into the mature stage of its life cycle. Many
factors contribute to the large demand for good coffee: The student population
at the University is a main source of demand for coffee retailers. JavaNet seeks
to provide its customers with affordable Internet access in an innovative and
supportive environment.

3. Marketing Strategy

JavaNet has three main strategies.

• The first strategy focuses on attracting novice Internet users
• The second and most important strategy focuses on pulling in power
Internet users. Power users have knowledge and web-browsing
experience that novice Internet users find attractive and exciting.
 • The third strategy focuses on building a social environment for
JavaNet customers.

Mission
JavaNet has one purpose. JavaNet provides communities with the ability to
access the Internet, enjoy a cup of coffee, and share Internet experiences in a
comfortable environment. JavaNet's marketing will consistently build on this
mission

Marketing Objectives

JavaNet's marketing objectives for the first three years of operation include:

• Grow total sales by 10% annually.

• Build customer loyalty through educational programs.
• Maintain a staff of enthusiastic employees excited to share their
Internet knowledge with JavaNet customers.
• Build the JavaNet brand to the point where it becomes a
household word in the area.

Financial Objectives

The goal of this marketing plan is to outline the marketing strategies, tactics,
and programs that will make the vision outlined in the Piyasa business plan a
reality in the year 2010. The vision outlined in the business plan includes sales
of roughly $275,000 in the first year with that figure increasing 10% annually

Target Marketing
JavaNet intends to cater both to people who want a guided tour of the Internet
and to experienced users eager to indulge their passion for computers in a social
setting. Furthermore, JavaNet will be a magnet for local and traveling
professionals who desire to work or check their email messages in a friendly
atmosphere.. JavaNet's target market covers a wide range of ages: from
members of "Generation X," who grew up surrounded by computers, to seniors
from local retirement centers.

Our primary target markets include:

1. Students. The large student population will become an important

part of the JavaNet customer base. Evening entertainment, access to
the Internet, and the up-scale ambiance will attract this demographic.
2. Business people. The downtown business community is growing
rapidly. JavaNet will provide a perfect setting for business meetings.
It will also give traveling business people an opportunity to plug their
laptops into the JavaNet network to check email communications.
3. Seniors. Represent a growing population of Internet users. JavaNet
will target the seniors in the nearby downtown retirement centers by
offering "Introduction to the Internet" classes.
JavaNet will position itself as an upscale coffee house and Internet service
provider. JavaNet will build customer loyalty and spread the word about the
services JavaNet offers

Positioning

JavaNet will position itself as an upscale coffee house and Internet service
provider. Business people of all types will use JavaNet as a place to hold
meetings and catch-up on email communications. Students from nearby
downtown housing centers will use JavaNet as a place to socialize and discuss
the latest Internet sites. Seniors from downtown retirement centers will
experience the Internet for the first time at JavaNet. Programs designed to teach
newcomers about the power of the Internet will help build customer loyalty and
spread the word about the services JavaNet offers

Strategy Pyramids

The following are the three key strategies JavaNet will focus on:

JavaNet's first strategy focuses on attracting novice Internet users. JavaNet

plans to attract these customers by providing a novice-friendly environment.
Knowledgeable employees focused on serving the customer’s needs will staff
JavaNet.

JavaNet's second strategy will be focused on attracting power Internet users

who will provide an important function at JavaNet. JavaNet plans to attract this
type of customer by providing the latest in computing technology, scanning and
printing services and access to powerful software applications.
The third strategy focuses on building a social environment for JavaNet
customers. A social environment that provides entertainment will serve to
attract customers that wouldn't normally think about using the Internet.

Marketing Mix

JavaNet's marketing efforts will focus on building a loyal base of customers that
will use the services provided on an almost daily basis.

Services and Service Marketing

JavaNet provides the local community with the ability to access the Internet,
enjoy a cup of coffee, and share Internet experiences in a comfortable
environment. People of all ages and backgrounds will come to enjoy the unique,
upscale, educational, and innovative environment that JavaNet provides.
Pricing
JavaNet bases its prices for coffee and specialty drinks on the "Retail Profit
Analysis" provided by supplier, Allann Brothers Coffee Co., Inc. Allann
Brothers has been in the coffee business for 22 years and has developed a solid
pricing strategy.
JavaNet considered three sources to determine the hourly charge rate. First,
JavaNet considered the cost to use other Internet servers. Second, JavaNet
looked at how cyber-cafes in other markets such as Portland and Ashland went
about pricing Internet access. Third, JavaNet used the market survey conducted
in the fall of 1998. Evaluating these three factors resulted in JavaNet's hourly
price of $2.50.

Promotion
JavaNet will spend almost fifty thousand dollars in its first year of operations to
build a brand and a loyal customer base. Marketing efforts will be focused on
the local market, and the campaign will run the entirety of 1999,

A Few Specific Marketing Efforts

• Local TV spots
• Print Materials
• Local Newspapers
• Local Radio Spots

Marketing Research

In 1998, a market survey was conducted to help evaluate the business viability
prior to its inception. The survey was a valuable resource for establishing
pricing and market needs. We will continue to conduct a survey of our
customers and potential customers on an annual basis. Survey results will be
used to create new marketing programs and monitor the performance of current
marketing programs.

4. Financials, Budgets, and Forecasts

The marketing plan is built on these truths:

1. The marketing budget is based on a percentage of sales value.

Currently, that value is set at 20%.
2. Building a strong brand and brand loyalty is critical to the success of
JavaNet.
3. The relationship between marketing dollars spent and revenues
generated is positive only to a certain point; we plan to spend more than
20% of sales on marketing in future years.

Break-even Analysis
JavaNet is operating in an industry capable of supporting high gross margins.
Variable costs in relationship to per-unit revenues are low. JavaNet It continue
to build relationships with our suppliers, this value will decrease further,
approaching a value of 20%.
Fixed costs for JavaNet include payment of debt, facility lease costs, hardware
costs, and other costs JavaNet must maintain on a monthly basis. These costs
are fixed and aren't impacted by an increase or a decrease in sales.
Currently, JavaNet will break even at a monthly sales point of $10,000.
Break-even Analysis:
Monthly Units Break-even 2,986
Monthly Revenue Break-even £10,002

Assumptions:
Average Per-Unit Revenue £3.35
Average Per-Unit Variable Cost £0.84
Estimated Monthly Fixed Cost £7,500

Fig:-Break-even Analysis

Sales Forecast

Revenues for the first year of operation are based on an almost 10% growth rate
from month to month. Annually, beyond the first year of operations, we're
predicting a growth rate of roughly 10%. We'll have a better idea of potential
growth rate beyond year one as we make our way through our first year. The
plan will be updated as we receive more information.

Monthly Sales Forecast

Sales Forecast
Sales 2004 2005 2006
Row 1 £0 £0 £0
Other £0 £0 £0
Total Sales £0 £0 £0

Direct Cost of Sales 2004 2005 2006

Row 1 £0 £0 £0
Other £0 £0 £0
Subtotal Direct Cost of Sales £0 £0 £0

Expense Forecast
One of our strongest strengths is our marketing and brand building
capabilities, and the aggressive marketing budget is a reflection of the
importance we attribute to our marketing activities. Currently, the marketing
budget beyond year one remains set at 20% of sales. It is our hope to increase
this budget should sales and efficiencies of scale allow us to do so.

Explanation of Major Marketing Expenses

Monthly Expense Budget

Marketing Expense Budget

2004 2005 2006
Local TV Spots £23,000 £25,300 £27,830
Print Materials £6,750 £7,425 £8,168
Local Newspapers £3,300 £3,630 £3,993
Local Radio Spots £12,000 £13,200 £14,520
JavaNet Events £9,000 £9,900 £10,890
Customer £28,500 £31,350 £34,485
Happiness
Representative
Other £1,500 £1,650 £1,815
----------- ------------ ------------
-
Total Sales and £84,050 £92,455 £101,701
Marketing Expenses
Percent of Sales 0.00% 0.00% 0.00%

Contribution Margin Sales vs. Expenses Monthly

The Contribution Margin chart and table presents a strong outlook for JavaNet's
first year of operations.

• Sales increase an average of 10% per month in the first year.

• Contribution margin runs at roughly 50%.
• The marketing budget is consistently based on 20% of total revenue.
• A strong focus on local TV and radio is apparent in the expense
breakdown.
• The marketing budget is spread evenly throughout the year.

5. Controls
0The goal of this marketing plan is to outline the strategies, tactics, and
programs that will make the sales goals outlined in the JavaNet business plan a
reality in the year 2000. We have these marketing obstacles to face:
• The creation of a unique, innovative, upscale atmosphere that will
differentiate JavaNet from other local coffee shops and future Internet
cafes.
• The establishment of JavaNet as a community hub for socialization
and entertainment.
• The creation of an environment that won't intimidate the novice user.
Our marketing efforts will be focused on building the image outlined above. We
have milestones and sales goals to meet and a business plan outlining our first
and second year of business in detail.
Implementation Milestones

The milestones chart below outlines key dates that the marketing team must
meet. The milestones table includes both sales goals and deadlines for major
projects that affect the programs outlined in the Marketing Expense Budget.
Each milestone is assigned a manager and that manager has ownership of the
task and is responsible for its success. We will track our successes and failures
by reviewing planned-vs.-actual results. Successes and failures will be reviewed
and addressed and a quarterly basis.

Marketing Organization

The founder of JavaNet, Cale Brockman, has a BS from the University of

Oregon in Marketing and Management and will head the marketing effort.
Initially, there will only be one additional member of the marketing team, the
"Customer Happiness Representative." This position has not yet been filled, but
it is the first milestone that must be completed. The "Customer Happiness
Representative" will play a large role in implementing the different marketing
programs. A marketing manager will be hired during the third or fourth quarter
if revenues meet projections.
 BIBLIOGRAPHY

1. Kotler Philip & Armstrong Gray; Principles of marketing, Pearson

Education Pte. Ltd, 11th edition.
2. www.marketingplan.com
3. http://www.websitemarketingplan.com