Strategic Marketing Plan
Name of Business / Product Idea
How to use this plan:
All of the text in this plan is editable in Word format. You should fill out as much as you can in the sections, and don’t worry if you get stuck.
You can go back later, or ask for help via email. This plan is useful for evaluating your ideas, and working on making your “Product Strategy” a success when approaching investors or manufacturers.
Any text that is “blue” or “green”, should be deleted when you have finished. Blue test like this are instructions, and Green text indicated additional, non-essential items or tips that you may or may not at this stage wish to think about in your planning, but may help you develop your idea.
There are several sections to this plan; you can read through them all, and start with the easiest ones, and take your time to find, discover or research the information. Remember that it is a “working document”, and will be useful if only some sections are completed fully, and all can be revised and improved as you progress your business idea.
Section 1:
1.1 Vision:
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We have all heard the saying that “first impressions are important”. This is equally true for meeting investors, selling products or enthusing people with your idea! You now need to explain that in as brief a summary as possible, but in a way that ‘sells’ your idea.
Sometimes it is better, to write the outline of the plan, and then go back and make your statement here, summarising the main points in a concise and ‘punchy’ way.
Example:
Aimed initially at the established the pre-school market, where there are in excess of 350,000 parents who buy their children teething dummies. We have identified a unique gap in the market, of which we expect to reach a potential market, estimated to be worth at least £52,500 per annum for a 5% market share alone, due to our unique selling point. ‘Placidfiers’new patented design elimates … and the product has the following … and cost advantages …
1.2 How we aim to get there:
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What is your intended routemap to get to market.
If you don’t yet know, just write in a couple of options that you might have considered, e.g.
i. Licenceing
ii. Self Manufacture
iii. Setting up a Ltd Company and looking for equity / investment
iv. Outright sale of IP and patents to highest bidder
And be honest about the competition, other similar products, and how your product might fit into this, and maybe have an advantage (useful!) in the competitive landscape.
When you have finally completed your Strategic Plan, you will additionally have information here regarding some summarised facts and figure, possibly including:
- Profits in Years 1, Year 2 and Year 3.
- Stakeholders in your company/ idea
- Details of Patent numbers (if applicable)
- Proof that you have considered all the possible options
- Several plans or strategies in place to manage risk or challenges
- Flexibility to try maybe 2 or more routes to market with the pro’s/cons of each
2.1 People
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People make a business or an idea. Also, I can tell you that indeed, “people buy from people”. So now you have to tell your story, your experience and why you are qualified to develop and promote this new product.
As the plan is developed and updated, you may add additional people. Maybe a sales-perosn, or your investor. You might discuss your Patent agent, or companies you intend to use in your network to achieve success.
Section 2:
2.1 The market
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OK. So a bank manager, or investor is not going to know anything about your product sector. If you are an inventor, it is quite likely that you know quite a lot about the market that you have developed and innovative product for.
So you need to explain the ‘background’ to your invention. This will also be useful to write up, if you need to later Patent or better, file ‘Patent Applied for’. The background to an invention is very important.
Later, you will add to this section, all you know about what this market is worth, in terms of cash sales, and the percentage that you can access with your market.
Typical product prices, and budgets or amounts that they are typically willing to pay will be useful to estimate what potential sales are worth in terms of Gross Sales.
We will later make calculations on product costs, and other capital expenditure to develop accurate figures for Revenue projections and share dividend.
2.2 The products:
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What is your product, or product(s) ideas.
You might want to touch on the following, when explaining your product(s):
- General description of product
- Walkthrough of how it is used
- USP (Unique Selling Point)
- Ergonomics / Visual appearance
- You might have additional variants and new ideas, that you will bring out later to keep ahead of the market
2.3 Protection:
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What methods are or would you consider using to protect the design?
This is not easy to complete when you start out. I recommend this book for £12 http://www.abettermousetrap.co.uk/invention-guide/ which covers all the IP routes for protection of designs and inventive products.
Also, do not get ‘dazzled’ into paying solicitors £10,000 for a series of Patents you don’t need (they are salemen or women too), and in many cases a simple ‘Patent Application’ or ‘Registered Design’ rights filed with the IPO will do. Do your research and this will pay dividends!
2.4 Development:
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What development requires completeing? Will a prototype be required to demonstrate this to buyers for example?
Is there any testing requirements, or standards to achieve in order to sell this product, or sell in this market?
Once it is completed, the plan might change to how you make gradual improvements to the product. How might you plan to reduce costs and value engineer the product.
2.5 Manufacturing:
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How will it be made? What are the materials and tools required?
Later, the sub-contractors to be used and suppliers chosen. Looking at quality, maintenance, and supply chain.
2.6 Distribution:
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How will the idea be delivered, packed and supplied?
Useful additions to the plan to consider specifying are:
- Packaging
- Transportation
- Storage
- Costs
2.7 Sales Channels:
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Where will the idea be sold, and what are the retail outlets that might be used?
Names of retailers or re-sellers? What about marketing, and who pays for it? Is there a budget?
2.8 Product support:
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What about quality, returns (if any) and managing the lifecycle of the product. Who will manage this, and would repairs be made, is there a guarantee etc? What is the life of the product in use, 2 years, 3 years?
This may not be possible to write in the initial product plan, but later we must consider things like, how long should the consumer expect the product to last, and are there any refills / spare parts that must also be sold, or services to support the product such as a helpline?
Section 3:
3.1 The Business:
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Advanced: The structure of the business. E.g. Ltd company, Holding Company, Licensing, Sales of IP outright.
Is there investment required. In this case, how much cash injection, and what are the equity or profit options for this working capital. What are the terms, and agreements that would be put in place to protect both parties, and timescales.
3.2 The Opportunity:
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What is your opportunity in terms of business or sales in greater detail?
This will eventually require much more research into the market, and include size, trends, and figures. You might require help from an accountant, or possibly purchase market information from survey companies (but in many cases, you can do this yourself, but you need to put in some time and planning into market research).
Advanced: You will require numbers. And Banks, or Managing Directors and Investors are only interested in the ‘numbers’.
3.3 Threats / Competitors:
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Every product will face competition, and if there is none… be sure that there will be, as soon as you release it! You need a plan to beat them.
Who are they?
What do they sell / do?
How established are they?
How can you protect your design?
Advanced: In order to be successful in business, you need to accept that people will try to beat you, and even for example ‘break your patent’. So you need to later detail and discuss what you have / will do so ensure a water tight business plan.
It is important here to be honest, and critical. Lets think about the worst case, and how do we beat them or co-exist? You need a ‘strategy’!
3.4 Marketing Overview:
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Whether just sold outright to the highest bidder, or developing interest. You are going to at some point have market and sell your idea.
To start, we need to know simple things. Who are we selling to? Is it “buyers” at chain stores, or is marketing something that we let others do for us, and take just a ‘royalty’?
Here we are considering “once the business is started”, and how to “tell people about your product”.
3.5 Product Roadmap / Release Schedule:
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Advanced: More detailed planning with a formal element and timescales.
3.6 Structure & Dividends:
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Who is going to make what? Who does what?
A general and brief figure of financial rewards:
- Personal dividends
- Subcontractors / Manufacturers
- Investors
(more detail in main financial annex in Section 4)
Section 4:
4.1 Financial Summary
Explanation of findings
4.2 Financial Annex
To be completed with an accountant
4.3 Technical Appendix
All supplemental information, and required. You can cut and paste any information in here, and refer to as 4.3.X , where ‘X’ will be an increasing number or reference, linked to text in the main document. For example “See the diagram of said mechanism in Fig 4.3.2” or “competitor patents are listed under Section 4.3.4”
Please feel free to type of paste any useful information, that will help development here. And this will help with development and planning greatly. Clear formatting is not as essential here, and it is easy to delete any extraneous information later.
Please find this plan useful in developing and considering a sound strategy. It is important to consider all these factors. And I will comment, and find fault, believe me. But this is how we develop a sound business plan that will have a much greater chance of success, and you will realise that it is better to raise questions early than enter into the market with a clear set of goals, and a method / financial strategy to navigate in a highly competitive market.
Kind regards,
John Biddleston