Health Fitness Marketing Plan

Corporate Fitness

Financials

4.0 Financials

This section will offer a financial overview of Corporate Fitness as it relates to the marketing activities. CF will address Break-even Analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy.

4.1 Break-even Analysis

The break-even analysis indicates that $16,667 will be needed to reach the break-even point.

Break-even Analysis



Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even	$10,101
Assumptions:
Average Percent Variable Cost	10%
Estimated Monthly Fixed Cost	$10,000

4.2 Sales Forecast

Please refer to the following chart and graph to illustrate the sales forecasts.

Sales Monthly



Sales Forecast

Sales Forecast
	2003	2004	2005
Sales
Corporate Employees	$298,783	$389,776	$455,678
Manufacturing Employees	$242,077	$288,739	$333,890
Total Sales	$540,860	$678,515	$789,568
Direct Cost of Sales	2003	2004	2005
Corporate Employees	$29,878	$38,978	$45,568
Manufacturing Employees	$24,208	$28,874	$33,389
Subtotal Direct Cost of Sales	$54,086	$67,852	$78,957

4.3 Expense Forecast

The expenses forecast will be used as a tool to keep the department on target and provide indicators when modification or corrections are needed for the implementation and maintenance of the market plan.

The marketing expenses will be high during the first quarter of operation, a quarter when there is increased usage of fitness facilities. The expenses will settle a bit during the second and third quarter. The expenses will rise during the fourth quarter, the quarter when HR budgets are typically submitted/reviewed.

Monthly Expense Budget



Marketing Expense Budget

Marketing Expense Budget
	2003	2004	2005
Pamphlet Production	$1,000	$1,200	$1,400
Website Production/Maintenance	$9,200	$8,000	$8,000
Other	$9,250	$12,000	$14,000
	------------	------------	------------
Total Sales and Marketing Expenses	$19,450	$21,200	$23,400
Percent of Sales	3.60%	3.12%	2.96%