Insert company logo Strategic Marketing Plan for The XYZ product line July 1, 2016 to June 30, 2019 Prepared by: Date: Executive summary [Write this at the end of the report writing process. Highlight the most significant findings from the strategic analysis; the strategic challenges facing the organisation, the organisation’s capabilities to meet these challenges and the main strategic recommendations including the top and bottom line revenue objectives (broken down for each product-market category). Include an overview of the recommended strategies for each product-market. Refer to Chapter 12 (p. 266) for further information.] Contents Executive summary Introduction Strategic analysis Business definition and scope External environment – remote environment Economic forces Sociocultural forces Political-legal forces Technological forces Natural environment forces External environment – near environment Market review Competitive review Distribution channels and buyers (intermediary customers) End user customers Supply Critical success factors Summary of opportunities Summary of threats Situation analysis – internal capabilities Organisation-wide capabilities Marketing capabilities Marketing capabilities – marketing strategies and performance Problems and opportunities statement Strategy development Marketing objectives Product-market strategies Segmentation, targeting and positioning strategies Customer value creation mix Strategy implementation Resource allocation Implementation plan Strategy evaluation and control processes Introduction [State the purpose of the strategic marketing plan, the background of the organisation and/or the strategic planning unit that has developed the strategic marketing recommendations as well as the environmental context in which the strategies were developed. Include other information that would serve to clarify any questions the reader may have as to why the documents were written. Also include a statement of the strategic style – the strategy-making style that describes the organisation’s approach to strategy planning: this is discussed in Chapter 3 (p.60-62) and briefly in Chapter 4 (p.104-105). Figure 3.1 in Chapter 3 (p.63), provides a framework that can be used as an aid to select and to justify the choice of strategic style. This rationale could either be included here or later in the strategic marketing plan under the main heading “Strategic recommendations’ – under the sub-section section, ‘Strategic positioning’.] Situation analysis [Refer to Chapter 3 for a detailed discussion of the requirements for each section of the strategic analysis.] Business definition and scope Mission statement(s) [State your company’s mission and vision statement. Download from the company’s website if an electronic version is available.] Market definition [Identify the market segments that the organisation currently targets and potential new market segments.] Product definition [Identify and list in the table below the product categories and sub-product categories targeted by the organisation and the organisation's products/brands that compete in those categories] Product category Our products/brands Competitors [Identify and list in the table below the competitors in each of the product categories and sub-product categories. List the products/brands they compete with in the product categories targeted by your organisation] Competitors Competing products Scope [State the strategic timeframe of the strategic plan and the geographic domain of the intended strategy.] External Environment – Remote Environment Economic forces Scenario Implications Opportunities Rating* Threats Rating* * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. Sociocultural forces Scenario Implications Opportunities Rating* Threats Rating* * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3= quite likely, 2 = moderate, and 1 = low probability. Political-legal forces Scenario Implications Opportunities Rating* Threats Rating* * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. Technological forces Scenario Implications Opportunities Rating* Threats Rating* • • * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. Natural environment forces Scenario Implications Opportunities Rating* Threats Rating* • • * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. External Environment – Near Environment Market review Description Implications Opportunities Rating* Threats Rating* • • * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. Competitive review Description Implications Opportunities Rating* Threats Rating* • • * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. Distribution channels and buyers (intermediary customers) Description Implications Opportunities Rating* Threats Rating* • • * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. End-user customers Description Implications Opportunities Rating* Threats Rating* • • * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. Supply Description Implications Opportunities Rating* Threats Rating* • • * The rating is based on a double-digit, 5-point scale, for the degree of significance and for probability of occurrence. For the degree of significance 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant, and 1 = not very significant. For probability of occurrence 5 = extremely likely, 4 = highly likely, 3 = quite likely, 2 = moderate, and 1 = low probability. Summary of Opportunities Significance of opportunity High Low Probability of occurrence High Low Summary of threats Significance of threat High Low Probability of occurrence High Low Critical Success Factors (CSFs) [Refer to Chapter 3 (p.78-79) for a discussion of the requirements for this section. The objective is to state the skills and resources that the organisation must have in order to perform successfully in each of the product-market it has chosen to compete in. That is, the skills and resources that exert the most leverage on positional advantage and future performance in the chosen product-markets.] Situation analysis – Internal Capabilities Organisation-capabilities [Financial position, organisational effectiveness, structure, strategy, systems, style, staff, skills and shared values.] Review Implications Strengths Rating Weaknesses Rating • • Note: The rating is based on single digit, 5-point scale, degree of significance: 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant and 1 = not very significant. Marketing capabilities [Marketing management, marketing organisation, market intelligence generation and dissemination, marketing planning, marketing control process, marketing strategies and performance.] Review Implications Strengths Rating Weaknesses Rating • • Note: The rating is based on single digit, 5-point scale, degree of significance: 5 = extremely significant, 4 = quite to highly significant, 3 = significant, 2 = reasonably significant and 1 = not very significant. Problems and Opportunities Statement [Refer to Chapter 3 (pp. 87-8) for a discussion of the requirements for this section.] 1 The business unit’s capabilities in relation to critical success factors CSF Our capabilities • • • • • • • • 2 Opportunities for the business unit to exploit with existing capabilities • 3 Opportunities for the business unit to exploit with improved capabilities • 4 Threats that must be addressed • 5 Strategic implications • Strategic Recommendations - High-level Marketing Strategies Strategic positioning [Broad-based decisions about how the business unit is to be positioned within the industry it competes, including decisions about where to compete (product-markets) and how to compete (customer value creation strategies). As discussed in the first section of the strategic marketing plan (Introduction), strategic positioning reflects the strategic style – the style of strategy that is considered to be most appropriate to meet the specific demands of the environment in which the organisation competes. Refer to Chapter 3 (p.60-62), Chapter 4 (p.104-106 and p.128-136) for further information. The rationale for choosing an appropriate strategic style can be placed either in the introductory section or in this section.] Marketing objectives [State the top-line (gross) revenue and gross margin objective for each year of the strategic marketing plan and include a rationale − that is, your reasoning for arriving at these numbers. Worksheet 2 is provided to assist you with this task.] Top line revenue objective Gross margin Year 1 $_________________ ___% Year 2 $_________________ ___% Year 3 $_________________ ___% Rationale Product-market strategies [The strategic gap model referred to in Chapter 4 (p.109-110) provides an excellent starting point for commencing a discussion of product-market strategy recommendations. The model invariably shows that a gap exists between what the organisation wants or needs to achieve in terms of top-line revenue (as stated in the marketing objectives above) and what is likely to be achieved if current strategies are continued. Where a gap exists, the next point is to state how the revenue gap can be closed in terms of 4 product-market strategy options: market penetration (existing products in existing markets), new product development (new products in existing markets), market development (existing products in new markets) and radical innovation (new products in new markets). Provide a broad overview of each of your product-market strategy recommendations. Worksheet 3 is provided to assist you with this task.] Segmentation, targeting and positioning strategies [Discuss how the market the organisation competes in is segmented, the segments that are currently targeted and new market segments to be targeted as per your market development strategies. Review the organisation’s current brand positioning strategies and consider whether a shift is necessary. STP strategies are discussed in Chapter 5.] Customer value creation mix [Review the organisation’s current value creation mix and consider changes that you believe should be made. Provide a discussion of the strategies you have developed to create, communicate and deliver customer value. Customer value creation mix strategies are discussed in Chapter 6.] Resource allocation [Determine the size of the marketing budget. In the absence of detailed internal expenditure and competitive information, apply a rule-of-thumb method of establishing a marketing and advertising budget. A survey conducted by the CMO Survey in 2014, for example, shows that B2B product organisations devote 8.1% of their revenues to marketing, B2B service organisations 5.8%, B2C product organisations 15.2% and B2C service organisations 11.0%. Marketing expenditure patterns also varies according to organisation size. Organisations with a revenue of less than $25 million devote 13.9% of their revenue to marketing, those with revenues between $26-99 million 6.1%, those with revenues between $500-999 million 2.9%, those with revenues between 1.9.9 billion 6.7% and those with revenues in excess of $10 billion 5.5% (Source: The CMO Survey – Highlights and Insights Report, Figure 2.1, August 2011). Use these figures as a guide to determine what you believe should be the most appropriate percentage for the situation your organisation is in and provide a supporting argument. The next step is to determine the percentage allocation of the marketing budget to be devoted to enhancement of the organisation’s core offerings, exploiting adjacent opportunities and transformational initiatives. Refer to Chapter 11 for a discussion of concerning determination of the ideal resource allocation ratio for your organisation. Finally, within your recommended resource allocation for core offerings, discuss the ratio of expenditure that is to be devoted to strategic investment categories such as enhancing customer perceived value, brand equity and relationship marketing as discussed in Chapter 11 (p. 245-247).] Implementation plan [Discuss how the strategic recommendations contained in your strategic marketing plan are to be operationalised. This discussion should include: how customer value creation, communication and delivery activities are to be conducted and managed on an organisation-wide basis, as well as the role and structure of the marketing department.] Evaluation and control processess [Discuss how the customer value creation, communication and delivery strategies are to be measured, as well as how and when they are to be measured. The table below provides a means for communicating this information. Evaluation and control processes are discussed in Chapter 11 (p.250-254)] What is to be measured How it is to be measured Data source When it is to be measured