Sample Marketing Plan
Essay Preview: Sample Marketing Plan
Report this essay
Sample Marketing Plan
Sources: Pride, W.M., Elliott, G., Rundle-Thiele, S., Waller, D., Paladino, A. & Ferrell, O.C. (2007). Marketing: core concepts and applications (2nd asia-pacific edition). Milton, Qld: John Wiley & Sons Australia, Ltd, pp. 475 – 489.
Marketing plans typically follow a generic structure but differ in length and complexity. An annual plan for a well-established, successful product in which it is business as usual may require only a summarised and updated situation analysis and a brief description of the marketing activities to be undertaken over the coming year.
On the other hand, a marketing plan for a major new-product launch or a major change in marketing strategy such as entry into a new market — including an international market — or a new marketing channel typically requires considerably more detailed analysis, especially when senior management is yet to take the decision on the strategic initiative. The following marketing plan is for Swords Wines launch into an international market, Shanghai in China, and is thus relatively detailed in its analysis and action plans. In practice, marketing plans should be kept as brief as possible while incorporating all the necessary analysis upon which the planning detail is based. With increasing experience and familiarity, successive marketing plans could be reduced in size by focusing on essential data and analysis.
It is also worth emphasising that the marketing plan should be seen as a working document with an ongoing life and importance. It should provide structure and discipline to marketing activities. It should be a practical communication document that can be consulted and referred to throughout the year. It should be revisited and revised, when necessary; and should form the basis of the continuing marketing program. Finally, it should be seen as a means to an end and not an end in itself. Most importantly, the time and effort involved in its preparation should be justified in the quality of the marketing program it documents.
Marketing plan: Swords Wines Pty Ltd
Executive summary
This export marketing plan examines the launch of Swords Wines into Shanghais imported wine market. Swords is a Melbourne-based SME with the ability to purchase, store, bottle and label Australian wines. Encouraging trends have been identified through primary and secondary research in Shanghais imported wine market segment. Since 2001, Shanghais demand for Australian wine has increased on average by 50 per cent each year. Other economic indicators such as GDP are increasing (by an average of 10 per cent per year), and Shanghai has Chinas highest level of personal disposable income. It is, therefore, an opportunity for Swords to capitalise on these favourable trends by entering the Shanghai wine market in the Luwan district, targeting the Xintiandi district, in particular, due to its significant number of restaurants and bars. It is predicted that achieving success in this market will ascribe status to the Swords brand and allow for easier penetration of other Shanghai markets.
Swords conservative target is to capture 0.5 per cent of the forecasted increase in demand for Australian wine. It is estimated demand for Swords wine will be about 10 000 bottles in its launch year, to grow at the rate of increasing demand for Australian wine (currently 50 per cent per annum). It is recommended that Swords pursues a distributorship agreement, whereby opportunity will determine the distributor; however, particular distributors such as Montrose Food and Wines, ACS Fine Wines or Quarto are best suited for individual reasons. Swords initial product — chosen through market research — is a 750 mL, corked bottle of dry red wine, to be positioned in what is known as the high end of the new world segment. A two-pronged approach is recommended for promotion, targeted (1) at the distributor primarily by way of promotional kits, and (2) at the end user primarily by way of magazine advertisements. Swords wine will be priced between $5.16 and $6.95 (cost, insurance and freight (CIF)) for estimated demand by the distributor and is estimated to reach the market at prices of between A$25 and A$30. This pricing will offer profit margins to Swords of 30 per cent and a total mark-up of around 70 per cent between the distributor and end user. This plan covers the launch and initial years activities and trading results.
Introduction
This marketing plan examines the export potential of Swords Wines into the Chinese market, specifically Shanghai, and makes recommendations regarding its launch. Swords Wines is a Melbourne-based retailer and wholesaler of wine. It has 18 employees and three retail outlets selling wines sourced from all over Australia. Wines are sold in 1 L reuseable and 750 mL single-use bottles. Swords also sells a range of boutique beers, predominantly from Victorian microbreweries.
Swords Wines was established in 1989. It has prospered through the concept of environmentally responsible drinking by selling wine in unique one-litre returnable bottles. Further expansion of its production facility has resulted in the addition of the 750 mL cleanskin format. The company independently purchases and bottles its own selection of fine wines, which are offered as a diverse range of good, affordable, everyday drinking wines.
The wine industry in Australia is very competitive, especially for a small company like Swords. To ensure continuing growth, Swords is looking to extend its products to international consumers, based on the availability of cheap, good-quality wine in Australia. Strategies to achieve this are set out below.
Situation analysis
+ Market analysis
Swords is concerned with the overall state of the alcoholic beverage market in China. Following is an overview of the alcoholic beverage market and a specific review of the wine market:
About 33.3 million people in China drink beer, 13.6 million drink spirits and 8 million drink wine. The number of people drinking wine is growing, and the market for beer and spirits is shrinking.
One would be hard-pressed to find a commodity with a more positive image in China than wine, which is associated with Western customs, the social elite and health. In China, the symbolic serving and drinking of wine on special occasions and in different places can convey different meanings. It can express either joy or sorrow.
The Chinese typically drink wine with food, largely as part of toasting. Consumption of red wine is expected to be closely related to cultural changes. Wine is the latest must have in urban China,