Cranium Filament Reductions
This sample marketing plan was created with Marketing Plan Pro software.
This section will offer a financial overview of Cranium as it relates to the marketing activities. Cranium will address break-even analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy.
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The break-even analysis indicates that $32,340 will be required in monthly revenue to reach the break-even point.
|Monthly Revenue Break-even||$28,689|
|Average Percent Variable Cost||12%|
|Estimated Monthly Fixed Cost||$28,459|
The first month will be used to set up the store and hire and train the employees. The store will be officially open the second month. Sales for month two through will four will be somewhat slow, as Cranium will be building up a customer base. From month four on sales will grow steadily.
|Direct Cost of Sales||2002||2003||2004|
|Subtotal Direct Cost of Sales||$28,670||$52,200||$54,324|
Marketing expenses are to be budgeted so that they are high during the first quarter in order to raise visibility for the start-up organization. They will then settle down a bit until the winter months when they will ramp up as the winter months are a time when there is an increase in spending on hair care in preparation for the winter holidays.
|Marketing Expense Budget|
|Store front displays||$1,100||$1,000||$1,300|
|Plain Dealer advertisements||$4,600||$6,500||$8,500|
|Total Sales and Marketing Expenses||$9,300||$12,300||$15,300|
|Percent of Sales||3.89%||2.83%||3.38%|
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