Granite Industries, Inc.
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.
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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.
|Monthly Revenue Break-even||$55,702|
|Average Percent Variable Cost||40%|
|Estimated Monthly Fixed Cost||$55,700|
The sales strategy is outlined below in three phases.
Both phase one and two will primarily be toll and custom manufacturing.
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.
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|
|Total Sales and Marketing Expenses||$72,300||$91,000||$112,000|
|Percent of Sales||4.22%||4.31%||4.06%|
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