< Home < Sample Marketing Plans
Telecomm Products Marketing Plan
OSS Telecom Technology
This sample marketing plan was created with Marketing Plan Pro software.
Financials
The market and related entry strategy mentioned earlier in this marketing plan is reflected in the assumptions used to build the financial model and corresponding pro-forma financial statements. The management of OSS Telecom Technology, Inc. believes these projections to be on the conservative side and, therefore, very attainable.
Getting ready to create a marketing plan?
Get practical ideas and good models with dozens of examples of successful
marketing plans with Sales and Marketing Pro.
Sales Forecast
Revenues are calculated separately for each product and for maintenance and consulting services. In addition, product revenue is broken out between new sales and upgrade sales. New sales and upgrade sales are further broken down into license, installation, and customization revenue. The products included in this forecast are customer care and billing (CCB) products, prepaid IN (PPIN) product, and short messaging (SMSC) product.
Pricing assumptions for licenses include a 10% discount from list for direct sales and 30% from list for indirect sales. Sales are forecast at 50% direct and 50% indirect resulting in a weighted average discount of 20%.
Pricing for licenses stays constant over the five year period. OSS Telecom Technology does not increase license pricing while significantly increasing feature set to maintain competitive pricing advantage over the five-year period.
Sales Forecast
| Sales Forecast | |||
| FY 2004 | FY 2005 | FY 2006 | |
| Sales | |||
| CCB (Unicorn & MEDUSA combined) | $13,432,825 | $19,857,900 | $30,434,900 |
| Pre-paid IN | $3,715,905 | $7,136,300 | $10,317,800 |
| Total Sales | $17,148,730 | $26,994,200 | $40,752,700 |
| Direct Cost of Sales | FY 2004 | FY 2005 | FY 2006 |
| CCB (Unicorn & MEDUSA combined) | $1,679,105 | $2,482,238 | $3,804,363 |
| Pre-paid IN | $464,488 | $892,038 | $1,289,725 |
| Subtotal Direct Cost of Sales | $2,143,593 | $3,374,276 | $5,094,088 |
Expense Forecast
Presented here are the individual line items for OSS Telecom Technology Taiwan and OSS Telecom Technology as well as a consolidated summary of all company expenses.
Marketing Expense Budget
| Marketing Expense Budget | |||
| FY 2004 | FY 2005 | FY 2006 | |
| Advertising/Promotion | $946,800 | $1,098,000 | $1,185,000 |
| Travel | $3,060,000 | $3,186,000 | $3,297,000 |
| Other | $0 | $0 | $0 |
| ------------ | ------------ | ------------ | |
| Total Sales and Marketing Expenses | $4,006,800 | $4,284,000 | $4,482,000 |
| Percent of Sales | 23.36% | 15.87% | 11.00% |
Linking Expenses to Strategy and Tactics
The following chart illustrates the relationship between sales and relevant expense categories aligned with our marketing strategy.
Contribution Margins
The following table presents the results of OSS Telecom Technology on an EBIT (earnings before interest and taxes) basis for the period FY 2004 through FY 2006. As the table demonstrates, the development of a worldwide sales and marketing team, continued product development, and the establishment of worldwide headquarters causes the company to be in a negative position in its early years.
Contribution Margin
| Contribution Margin | |||
| FY 2004 | FY 2005 | FY 2006 | |
| Sales | $17,148,730 | $26,994,200 | $40,752,700 |
| Direct Cost of Sales | $2,143,593 | $3,374,276 | $5,094,088 |
| Other Variable Costs of Sales | $0 | $0 | $0 |
| ------------ | ------------ | ------------ | |
| Total Cost of Sales | $2,143,593 | $3,374,276 | $5,094,088 |
| Gross Margin | $15,005,137 | $23,619,924 | $35,658,612 |
| Gross Margin % | 87.50% | 87.50% | 87.50% |
| Marketing Expense Budget | FY 2004 | FY 2005 | FY 2006 |
| Advertising/Promotion | $946,800 | $1,098,000 | $1,185,000 |
| Travel | $3,060,000 | $3,186,000 | $3,297,000 |
| Other | $0 | $0 | $0 |
| ------------ | ------------ | ------------ | |
| Total Sales and Marketing Expenses | $4,006,800 | $4,284,000 | $4,482,000 |
| Percent of Sales | 23.36% | 15.87% | 11.00% |
| Contribution Margin | $10,998,337 | $19,335,924 | $31,176,612 |
| Contribution Margin / Sales | 64.13% | 71.63% | 76.50% |
Getting ready to create a marketing plan?
Get practical ideas and good models with dozens
of examples of successful marketing plans