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

This section will offer a financial overview of AEU as it relates to the marketing activities.  AEU will address break-even analysis, sales forecasts, and how those link to the marketing strategy.

Break-even Analysis

The Break-even Analysis indicates that $25,200 will be needed in monthly revenue to reach the break-even point.

Break-even Analysis

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Break-even Analysis
  
Monthly Revenue Break-even$10,500
  
Assumptions: 
Average Percent Variable Cost18%
Estimated Monthly Fixed Cost$10,500

Sales Forecast

The sales strategy is to create long-term relationships with customers through superior service. The intent is to initially target the primary customer group. This group has been defined as persons who have purchased, or are likely to purchase, a "hard-adventure" vacation for over $2,500.

The trips planned are designed with the wealthy adventure traveler in mind. Later marketing efforts may include trips geared towards corporate clients, Eco-tourism or hard adventure trips for people who want to spend less money. Target customers will be identified through standard research methods. There are a number of publications available that contain profiles of adventure travelers.

Methods by which AEU will contact customers will depend on results of marketing/sales research. AEU will likely use trade or special interest magazines, direct mail, Web-based communication, and personal selling. In addition printed materials will be made available to customers through travel agencies that cater to the adventure target market. Initially, service will be introduced regionally and, possibly nationally. Sales will be extended into the global market within a few years of operation.

Our services are seasonal. Recurring revenue will be dependent upon successful trips involving a variety of activities offered year-round. We hope to promote out of season services through frequent customer contact and through our own publication, most likely a magazine of some sort. We will review up and coming trips, offer highlights of past trips and try to do other creative articles, giveaways, customer profiles, etc.

Most sales will occur at the retail level. The sales that occur between customers and travel agencies will be discounted appropriately, approximately 15%. Transactions will occur as the result of customer contact in response to communication efforts. In addition, AEU will engage in personal selling.

The following chart and table shows AEU's expected sales forecast.

Sales Forecast

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Sales Forecast
 200120022003
Sales   
Heli-skiing$360,000$500,000$570,000
White-water rafting$140,000$260,000$310,000
Total Sales$500,000$760,000$880,000
    
Direct Cost of Sales200120022003
Heli-skiing$50,000$180,000$190,000
White-water rafting$40,000$70,000$78,000
Subtotal Direct Cost of Sales$90,000$250,000$268,000

Expense Forecast

Marketing expenses are budgeted so that there will be advertising activity each month. There will be an increase in spending for the advertisements four times throughout the year to coincide with the times that people will be typically planning vacations. 

The expenses for the direct mail will be applied throughout out the year, but these costs will be nominal relative to the advertising costs.

Marketing Expense Budget

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Marketing Expense Budget
 200120022003
Advertising$26,400$26,400$26,400
Printed material$1,200$1,200$1,200
Other$1,200$1,200$1,200
 ------------------------------------
Total Sales and Marketing Expenses$28,800$28,800$28,800
Percent of Sales5.76%3.79%3.27%

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