< Home   < Sample Marketing Plans

Page   1   2   3   4   5  

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

This section will offer a financial overview of QuickReturns as it relates to the marketing activities. QuickReturns will address break-even analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy. Please see the following tables and charts for graphical representations of this important information.

Break-even Analysis

QuickReturns will need to generate $172,857 in monthly revenues to cover its average monthly fixed expenses. The company will reach that sales level at the beginning of year two.

Break-even Analysis

Create or edit this table


Break-even Analysis
  
Monthly Revenue Break-even$127,368
  
Assumptions: 
Average Percent Variable Cost30%
Estimated Monthly Fixed Cost$121,000

Sales Forecast

Sales revenues will be derived from three primary sources:

  1. Annual fees from retailer partners;
  2. Return processing fees;
  3. Commissions from purchases and exchanges made at QuickReturns locations.

The following sales forecast is based on the following assumptions:

  • Annual retailer partner fees are waived in years one and two. Starting from year three, annual fees are $250,000 per retailer. These fees will be pro-rated for new retailers based on their activation date. (Note: by the end of year three, QuickReturns estimates to have 76 retailer partners; however, the table below shows a different number in order to accommodate for the lower total annual revenues due to pro-rating of such fees.)
  • In years one and two, each new client pays a one-time technology integration fee in the amount of $60,000 in order to recover direct costs of integrating QuickReturns system into the retailer's database. These fees are not pro-rated. Neither annual partner fees nor technology integration fees are shared with franchisees.
  • It is estimated that on average one new retailer per month will join the QuickReturns program in year one and three retailers per month will join in years two and three.
  • Return processing fees are shared with the distribution partners at a ratio of 1:1 (i.e., QuickReturns receives 50% of those fees).
  • Product exchange fees are based on a 10% commission off the average product exchange value of $42. These fees are also shared with the distribution partners at a 1:1 ratio (i.e., QuickReturns receives 50% of those fees).

Based on the following assumptions, QuickReturns estimates to increase its revenues from $1.6 million in year two to over $2.1 million in year three.

Expense Forecast

The marketing expense forecast will serve as a tool to keep the department on target and indicate when modification is needed. Please see the following graph that illustrates the monthly expense forecasts.

Marketing Expense Budget

Create or edit this table


Marketing Expense Budget
 200320042005
Business Development$94,500$110,000$130,000
Other$85,000$100,000$120,000
Other$0$0$0
 ------------------------------------
Total Sales and Marketing Expenses$179,500$210,000$250,000
Percent of Sales57.53%17.90%16.13%

Page   1   2   3   4   5  

Getting ready to create a marketing plan?

Get practical ideas and good models with dozens
of examples of successful marketing plans