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

The following topics include the break-even analysis, sales forecast, and expense forecast tables.

Break-even Analysis

The break-even analysis is based on a rough estimate of fixed costs. Through FY2001, average fixed costs will be $4,500 per month. This figure includes the cost to lease the building, equipment leases, and various other equipment costs and fees. Variable costs include the cost of labor, food inventory, and other product-related costs. The variable cost estimate is $1.20 per unit, although that number may be revised up as actuals determine changes in the coming months.

Monthly break-even on unit sales is 2,250. This includes units other than sandwiches, such as cookies, soda, chips and other add-ons. The basis for this break-even point is an average of entrees (sandwiches) and add-ons. The average per unit revenue is $3.20.

Break-even Analysis

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Break-even Analysis
  
Monthly Units Break-even2,250
Monthly Revenue Break-even$7,200
  
Assumptions: 
Average Per-Unit Revenue$3.20
Average Per-Unit Variable Cost$1.20
Estimated Monthly Fixed Cost$4,500

Sales Forecast

The majority of revenue will be generated through medium subs and cookies/desserts. The breakdown by products is below.

Sales Forecast

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Sales Forecast
 20032004200520062007
Unit Sales     
Large Subs19,02420,92623,01925,32127,853
Medium Subs139,508153,458168,804185,685204,253
Small Subs50,73055,80361,38367,52274,274
Entree Subs19,02420,92623,01925,32127,853
Side Salads15,21916,74118,41520,25622,282
Chips38,04841,85246,03750,64155,705
Party Subs and/or Trays254279307338371
Desserts16,48718,13619,95021,94524,139
Cookies and Desserts63,41369,75476,72984,40292,842
Soups and Chili17,75619,53121,48423,63325,996
Drinks50,72655,80361,38367,52274,274
Total Unit Sales430,186473,210520,530572,584629,842
      
Unit Prices20032004200520062007
Large Subs$7.10$7.10$7.10$7.10$7.10
Medium Subs$5.10$5.10$5.10$5.10$5.10
Small Subs$3.89$3.89$3.89$3.89$3.89
Entree Subs$5.10$5.10$5.10$5.10$5.10
Side Salads$1.59$1.59$1.59$1.59$1.59
Chips$0.89$0.89$0.89$0.89$0.89
Party Subs and/or Trays$22.00$22.00$22.00$22.00$22.00
Desserts$1.49$1.49$1.49$1.49$1.49
Cookies and Desserts$1.39$1.39$1.39$1.39$1.39
Soups and Chili$1.89$1.89$1.89$1.89$1.89
Drinks$0.99$0.99$0.99$0.99$0.99
      
Sales     
Large Subs$135,069$148,576$163,433$179,776$197,754
Medium Subs$711,488$782,637$860,901$946,991$1,041,690
Small Subs$197,340$217,074$238,781$262,659$288,925
Entree Subs$97,021$106,723$117,396$129,135$142,049
Side Salads$24,198$26,618$29,280$32,208$35,429
Chips$33,862$37,249$40,973$45,071$49,578
Party Subs and/or Trays$5,580$6,138$6,752$7,427$8,170
Desserts$24,566$27,023$29,725$32,697$35,967
Cookies and Desserts$88,143$96,958$106,654$117,319$129,051
Soups and Chili$33,558$36,914$40,605$44,666$49,132
Drinks$50,219$55,245$60,769$66,847$73,531
Total Sales$1,401,045$1,541,154$1,695,269$1,864,796$2,051,276
      
Direct Unit Costs20032004200520062007
Large Subs$2.49$2.49$2.49$2.49$2.49
Medium Subs$1.79$1.79$1.79$1.79$1.79
Small Subs$1.36$1.36$1.36$1.36$1.36
Entree Subs$1.79$1.79$1.79$1.79$1.79
Side Salads$0.56$0.56$0.56$0.56$0.56
Chips$0.31$0.31$0.31$0.31$0.31
Party Subs and/or Trays$7.70$7.70$7.70$7.70$7.70
Desserts$0.52$0.52$0.52$0.52$0.52
Cookies and Desserts$0.49$0.49$0.49$0.49$0.49
Soups and Chili$0.66$0.66$0.66$0.66$0.66
Drinks$0.35$0.35$0.35$0.35$0.35
      
Direct Cost of Sales     
Large Subs$47,369$52,106$57,317$63,048$69,353
Medium Subs$249,718$274,690$302,159$332,375$365,613
Small Subs$68,993$75,892$83,481$91,829$101,012
Entree Subs$34,053$37,458$41,204$45,324$49,856
Side Salads$8,523$9,375$10,312$11,344$12,478
Chips$11,795$12,974$14,272$15,699$17,269
Party Subs and/or Trays$1,953$2,148$2,363$2,600$2,860
Desserts$8,573$9,431$10,374$11,411$12,552
Cookies and Desserts$31,072$34,179$37,597$41,357$45,493
Soups and Chili$11,719$12,890$14,180$15,598$17,157
Drinks$17,754$19,531$21,484$23,633$25,996
Subtotal Direct Cost of Sales$491,522$540,675$594,743$654,217$719,639

Expense Forecast

The Sub Shop will reduce expense costs to below 3% of sales within the first year. Since the franchisor manages and implements a large portion of the necessary marketing activities, local activities will be minimal, yet important. Contribution/sales margin is expected to exceed 62% within the first year.

 

Marketing Expense Budget

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Marketing Expense Budget
 20032004200520062007
Franchisor Local and National Advertising (2.2% Sales)$10,813$11,895$13,084$14,393$15,832
Daily Offers and Discounts$4,800$4,896$4,994$5,094$5,196
Other$3,000$3,060$3,121$3,184$3,247
 ------------------------------------------------------------
Total Sales and Marketing Expenses$18,613$19,851$21,199$22,670$24,275
Percent of Sales1.33%1.29%1.25%1.22%1.18%

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