Financial Evaluation and Action Plan

Paper details:

Description Comments Grade Executive Summary Provide a 1 page executive summary of your paper. Demonstrate correct use and structure of the Executive Summary: concisely and precisely touch main points of all parts in this paper; the objective is to inform the executive and lead actions; use a combination of paragraphs and bullet points; reference charts, tables, etc. placed in the appendix. /10 Objectives & Key Assumptions Establish – 5 key assumptions for marketing mix strategies (elasticities, inflation, product launching date, product life expectancy, established supplier-retailer relationships, market share, repeats or frequency, target market size and penetration rate, etc.). Set at least three SMART objectives (one of each: marketing, financial, and societal). It is highly encouraged to include % of target market to buy the product as a marketing objective since it is used in the sales forecasts here. Also, it is highly suggested to have a dollar sale or profit objective, since a forecast is available from the financial evaluation in this paper. For societal objectives think of a societal issue, cause, related to the new product, its consumers, or mission that could be achieve by PR activities. Note: these objectives are to be monitored and controlled. /8 3-year Channels Explain distribution channels for the first-three years of product life (intensity: selective, exclusive, intense; and levels: zero, one, two, mix). Identify percentage of sales expected from each channel as applicable and how this change during the first three years. Specify retail outlets, dealers, wholesalers, or distributors, if channel is higher than zero level. Provide rationale for channeling decisions – use findings from current market situation analysis to support determined channel strategies as the best for this product. /7 3-year Unit Sales Forecast Forecast the number of product units to sell during the first three years of your product’s market life from your target market size, penetration objective, channel decisions and any other relevant key assumption. Consider repeat purchases, returns, elasticities, and inflation. Briefly explain data and method used to forecast unit sales. Remember to. If your product has a market life shorter than three, then limit forecast accordingly and explain shorter life span. /10 Pricing Strategies Explain your selected pricing strategy for first three years of product life (value: skimming, premium, penetration, competitive, or cost based: penetrating, low cost) and state reasons (use current situation analysis findings). Considering your channels, generate the retail, wholesale, and weighted average price (use percentage of sales from each channel to calculate a weighted average price). As part of the pricing strategy consider inflation and deflation. Explain rationale for change or no /10 1 change in price and pricing strategy for second and third years of the product’s market life. 3-year Profit Forecast For the first three years of your product life, forecast revenues (forecasted units sold times weighted average price), costs including promotional, and profits (net income before and after tax). Explain data, methods, and implications for stakeholders. For this, use benchmarked financial data (cost side), forecasted unit sales, and determined weighted average price. /10 Promotional Mix For the first year of your product life, describe the breakdown of the promotional budget for promotional activities, value and percentages (advertising, P/R, Personal Selling, Sales Promotion, Direct Marketing). For all marketing tools in the mix, specify activities and provide specific examples (magazine names, TV shows, radio stations, etc.). Use current market situation analysis findings to explain rationale for promotional activities; describe why the chosen activities are most appropriate for the product and target market; and how promotional strategies will change from first year to the second and third. Make a separate heading for each promo mix activity. /15 Monitoring & Controlling Identify variables associated to the previously set marketing, financial, and societal objectives to monitor and control (total of three). For each variable, include objective range, device, monitoring interval, persons responsible for monitoring, and corrective actions for when over or under achieving. /10 ***Technical Requirements 1. Header- name, lab letter, product, and assignment (2 points) 2. Section Headings (1 point) 3. Font- 12 point and Times New Roman (1 point) 4. Double Space (1 point) 5. 1” margins (1 point) 6. 3rd person voice (1 point) 7. Page numbers (.5 point) 8. Within page limits (7-12 includes Executive summary, but not Appendix and Reference list.) (.5 point) 9. Label and reference charts and graphs and place as an appendix (2 points) 10. All sources must be cited in the text consistently following a citation format. /10 Grammar & Structure Demonstrate effort in minimizing grammar errors- no misspelling, do not use contractions except possessive ones, and proof read for typos; use correct punctuation and capitalization; and select vocabulary to maintain professional tone; organize and include transitions so the paper flows logically. Include Appendix with the cleaner proforma, budget allocations table, and any other chart, figure, or media referred in the paper. Include a reference list for all sources cited in the text. /10 2 Citation All sources must be cited in the text consistently following a citation format. There must also be a list of works cited, reference, or bibliography. Plagiarism is not tolerated, a sentence copied and pasted from lab must be in quotes and cited. A sentence copied and pasted from a source without citing is considered plagiarism. Your document will be checked for originality and plagiarism by TurnIt In. Plagiarism found results in zero for assignment and reported as violation of institution’s integrity rules. Not more than 5% of quotes in assignment. Your score will be adjusted according to originality report. Total 100 Note: You must use grader’s comments for revising it, then submit as a part of the Final Marketing Plan Summary assignment. Failure to revise will result in a 25 point penalty in the final writing assignment. ***Technical requirements are overwritten for students in the non-writing intensive section.