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This sample marketing plan was created with Marketing Plan Pro software.

This section will offer a financial overview of Granite Industries as it relates to the marketing activities. Granite will address break-even analysis, sales forecasts, expense forecasts and how these reports relate to the marketing strategy.

Break-even Analysis

The break-even analysis is based on running costs, the "burn rate" costs incurred to keep the business running, not on theoretical fixed costs that would be relevant only if Granite closes.

The assumptions in average unit sales and average cost per kilogram depend on averaging. Granite does not really need to calculate an exact average because this is sufficiently close to help Granite to understand what the real break-even point will be.

Break-even Analysis

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Break-even Analysis
  
Monthly Revenue Break-even$55,702
  
Assumptions: 
Average Percent Variable Cost40%
Estimated Monthly Fixed Cost$55,700

Sales Forecast

The sales strategy is outlined below in three phases.

  • Phase One is to accommodate existing customers and to make sure that current orders and subsequent orders are maintained.
  • Phase Two will commence when the facilities are expanded. Granite will then be able to accept new clients and contact companies who have shown interest in the products and be able to accommodate their orders. Granite plans to hire a high-quality sales person to assist in defining our marketing program.

Both phase one and two will primarily be toll and custom manufacturing.

  • Phase Three will begin with the hiring of two additional sales representatives who will develop the end-user program.

The sales forecast assumes no significant change in costs or prices, which is a reasonable assumption for the past two years.

The sales in 1999 were $187,521, $241,782 in 2000, and were $269,507 in 2001. All of these sales were without the benefit of a marketing program. Granite feels that with a good marketing program and adequate manufacturing facilities they can achieve a sales goal of $2.9 million in 2004 and over $4 million in 2005.

Expense Forecast

The expense forecast will be used as a tool to keep the department on target and provide indicators when modifications or corrections must be made to insure the proper implementation of the marketing strategy.

Marketing Expense Budget

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Marketing Expense Budget
 200320042005
Advertisements$61,500$75,000$90,000
Networking$7,400$10,000$13,000
Other$3,400$6,000$9,000
 ------------------------------------
Total Sales and Marketing Expenses$72,300$91,000$112,000
Percent of Sales4.22%4.31%4.06%

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