Business Plan Strategy and Implementation Summary

1. Business PlanStrategy and Implementation Summary Patricia SALGUERO Departemen Teknik Informatika Institut Teknologi Bandung

2. STRATEGY AND IMPLEMENTATION SUMMARY Armies fight to win terrain, kill or disable adversary combatants... Companies fight to capture market share, generate sales revenues, enhance profits... “Both armies and business enterprises try to achieve their objectives through strategies”

3. STRATEGY AND IMPLEMENTATION SUMMARY Strategic Pyramid Main focus Implement Strategies Specific business activities, each of which has concrete dates and responsibilities, and probably a budget.

4. STRATEGY AND IMPLEMENTATION SUMMARY Value Proposition: A value proposition define how product and service features are assembled and offered to meet customer needs; in other words, how a company gives value to customers. A value proposition define the benefit offered; the target market group; and the relative pricing.

5. STRATEGY AND IMPLEMENTATION SUMMARY Competitive Edge products, services, retail locations, prices, exclusivity, intellectual property rights, licenses, franchise agreements... Is this a key competitive edge?

6. STRATEGY AND IMPLEMENTATION SUMMARY INNOVATION ability to outwit, outsmart, outsell and otherwise outperform your competition. Key Competitive Edge driving force behind successful small businesses

7. STRATEGY AND IMPLEMENTATION SUMMARY

8. STRATEGY AND IMPLEMENTATION SUMMARY MARKETING STRATEGY • Every business owner should develop a written guideline that sets forth the business's marketing strategy. • This document is used to judge the appropriateness of each action that the business takes. • If a company has to take an action that is off-strategy, it may indicate a temporary emergency action prompted by competition or other factors beyond normal management control. Or it may indicate the need to change or revise the company's marketing strategy.

9. Marketing Strategy Involves introducing a single version of a product that is designed to appeal to a single, particular market segment. • Concentrated Marketing • Differentiated Marketing Involves introducing a number of different versions of a product, each designed to appeal to a different market segment. • Undifferentiated Marketing Involves introducing only a single version of the product in the hope that it will appeal to an entire universe of consumers, an appeal to the lowest common denominator.

10. Positioning Statements Unique features that have obvious value • Positioning on specific product features Product features----> Customer • Positioning on benefits • Positioning for user category Used by models --->customer identify Implicit to explicit comparison • Positioning against another product New product that differs from traditional products • Product class disassociation

11. PRICING STRATEGY With this method you simply set prices to cover your fixed and variable costs, and leave enough room for profits.  • Cost-Plus Pricing Compares alternative products and services and sets prices accordingly • Competitive pricing strategy

12. Pricing Strategy Competitive pricing strategy/ Sample

13. Pricing Strategy • Customers must perceive the value of your premium service; • Be willing to pay for it; • It must cost you less that the price you receive. • To the last point, "do not offer gold plated service if you are only going to receive silver plated prices." • Premium price strategy

14. Pricing Strategy This option involves charging a high price relative to other brands within the product class. • Cream skimming pricing • Market penetration pricing This is the strategy of setting prices low, or below the competition, initially to attract new customers.

15. Promotion Strategy PROMOTION STRATEGY Promotion involves communication of product attributes and corporate image in the most favorable light possible to intermediary sellers and to end users.

16. Promotion strategy The “Pulling” Promotional Strategy Intermediary Originator End User The “Pushing” Promotional Strategy Intermediary Originator End User

17. Promotion strategy Dimensions of Advertising Effectiveness • Demographic What type(s) of people do we want to influence? • Geographic Where are the people we want to influence? • Impact Is the desired message well communicated and hard hitting enough to be memorable? Generally, advertising is designed to address the “AIR” concerns. • Reach How many individuals or householders will experience one exposure of the message?

18. Media Cost CPM = (Audience measured in thousands) Promotion strategy Dimensions of Advertising Effectiveness • Frequency How many times will these people experience the message? • Duration How long is the message? When will the message be experienced? • Timing How much does it cost to reach 1,000 people or households with a single exposure? • Cost

19. DISTRIBUTION STRATEGY How the product is convoyed from the producer to the end user. Its functions include manufacturing, transportation, warehousing, wholesaling, and retailing.

20. Aims for maximum exposure.The product is sold through any responsible wholesaler or retailer who will stock it. • Intensive Aims for moderate exposure. The product is sold through “better” retailers. • Elective Distribution Strategy There are essentially three distribution options, as follows: Aims for limited exposure. The product is sold by a single dealer within each treading region. • Selective

21. Sales Strategy “Sales is asking the people what they do, how they do it, when they do it, where they do it, why they do it, and who they do it with-and then help them to do it better.” Stephan Schiffman Consultative model Models • “A” for Attention • “I” for Interest • “D” for Desire • “A” for Action AIDA model

22. Sales Strategy Sales Promotion Tools and Activities • Discounts • Premiums • Twofers • Coupons • Samples • Contests • Sweepstakes • Incentives • Product publicity

23. Sales Strategy Sales Forecast Use the text to summarize and highlight the Sales Forecast in a detailed sales forecast table. Try to emphasize important points and explain assumptions to the sales forecast. The monthly sales forecast chart and annual sales forecast chart should be drafted