sample marketing plan

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Unformatted text preview: January 2003 This sample marketing plan has been made available to users of Marketing Plan Pro™, marketing planning software published by Palo Alto Software. Names, locations and numbers may have been changed, and substantial portions of text may have been omitted from the original plan to preserve confidentiality and proprietary information. You are welcome to use this plan as a starting point to create your own, but you do not have permission to reproduce, publish, distribute or even copy this plan as it exists here. Requests for reprints, academic use, and other dissemination of this sample plan should be emailed to the marketing department of Palo Alto Software at [email protected] For product information visit our Website: www.paloalto.com or call: 1-800-229-7526. Copyright Palo Alto Software, Inc., 1998-2002 Confidentiality Agreement The undersigned reader acknowledges that the information provided by _________________________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities. Table Of Contents 1.0 2.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 .2 .2 .2 .3 .3 .4 .4 .4 .5 .5 .5 .5 .6 .6 .7 Situation Analysis . . . . . . . . . . . 2.1 Market Summary . . . . . . . 2.1.1 Market Demographics 2.1.2 Market Needs . . . . 2.1.3 Market Trends . . . . 2.1.4 Market Growth . . . . 2.2 SWOT Analysis . . . . . . . . . 2.2.1 Strengths . . . . . . 2.2.2 Weaknesses . . . . . 2.2.3 Opportunities . . . . 2.2.4 Threats . . . . . . . 2.3 Competition . . . . . . . . . . 2.4 Services . . . . . . . . . . . . 2.5 Keys to Success . . . . . . . . 2.6 Critical Issues . . . . . . . . . 2.7 Technology . . . . . . . . . . 3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.4 Target Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.5 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.6 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.7 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Financials, Budgets, and Forecasts 4.1 Break-even Analysis . . . 4.2 Sales Forecast . . . . . . 4.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . 11 . 12 . 13 4.0 5.0 Controls 14 5.1 Implementation Milestones . . . . . . . . . . . . . . . . . . . . . . 14 5.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . 15 5.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 15 Kiln Creek Bowling Corporation 1.0 Executive Summary Kiln Creek Bowling Corporation (Kiln Creek Bowling Center) was formed in January 2003 in Yorktown, Virginia, as a corporation under the Laws of the Commonwealth of Virginia. The dynamic management team members responsible for the design, building, development of company policy, and hands-on-management of the daily operations are Charles H. Collins Jr., Jane W. Collins, and Charles "Chip" Collins III. In addition, a team-oriented and customer-focused staff of 50 will support the management team. Kiln Creek Bowling Corporation will retain the services of a CPA firm to perform professional company audits, prepare taxes and payroll, and serve as a business consultant to assist in setting achievable long-range strategic goals. Establishment of Kiln Creek Bowling Corporation trading as Kiln Creek Bowling Center provides York County, Hampton, Newport News and the surrounding area quality family entertainment, products, and services. The equity for each investor will be based on his or her investment. Ways to minimize risk factors to Kiln Creek Bowling's success include: 1. 2. 3. 4. Obtain sufficient capital to build and cover expenses of initial operation. All investor capital will be held in escrow until the project is totally funded. Maintain low overhead cost that increase the bottom line profit. Multi-skilled personnel will be employed, and a continual training program will ensure they deliver consistent, superior service, where customer satisfaction is paramount. Build a sufficient customer base. An excellent location has been determined by demographics, and an aggressive marketing program by a full-time employee will ensure desired results. Establish community involvement to demonstrate how the business will contribute to a better quality of life. Community projects using the bowling center's facilities will be developed to help civic groups obtain their financial goals. School, church, and other groups will be welcomed for tours of the bowling center. All payments will be cash, check, or credit card, which eliminates the need for invoicing and collections. 5. Annual Sales Forecast $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2003 2004 2005 Household Income: $25,000-$34,999 Household Income: $35,000-$49,999 Household Income: $50,000-$74,999 Page 1 Kiln Creek Bowling Corporation 2.0 Situation Analysis Kiln Creek is entering its first year of operation. The idea of a family entertainment center has been well received and marketing is now critical to its success and future profitability. Kiln Creek Bowling offers a wide range of family entertainment options. The basic market need is a comprehensive entertainment center that addresses an entire family's interests. 2.1 Market Summary Kiln Creek Bowling possesses good information about their market and has compiled a lot of information regarding their perspective customers. This information will be leveraged to better understand who is served, their specific needs, and how Kiln Creek Bowling Center can better communicate with them. 2.1.1 Market Demographics The profile for Kiln Creek's customers consists of the following geographic, demographic, and behavior factors: Geographics • A five mile radius will be primarily served. • The total population is in excess of 300,000 people. Demographics • • • • 77.8% Caucasian. 47% are 25-50 years old. 61% are homeowners. The average level of education is 2.6 years of undergraduate course work. Behavior factors • Prefer service/entertainment services that have a lot of options. • Are willing to pay for convenience. • Prefer not to travel far distances from their home when not required. 2.1.2 Market Needs Kiln Creek Bowling is providing its customers with a wide selection of entertainment activities. All of these activities incorporate the newest technological advances. Kiln Creek seeks to fulfill the following benefits that are important to their customers: • Convenience- location, ease of use. • Wide range of services. • Utilization of advanced technology. Page 2 Kiln Creek Bowling Corporation 2.1.3 Market Trends During the past ten years, large chains like AMF Bowling and Brunswick Bowling have been buying up various local bowling centers until they control the market. When they control the market, they cut services, raise prices, and drive away core business due to their indifference to customers' concerns. The chain always moves decision-making to its headquarters. Now the center is no longer a community-oriented business, and the customers see it as a big corporation that doesn't care about local inputs. This is why there has been a downward trend nationally in the bowling industry, but an increase in business where good, locally-owned and operated centers exist. Market Forecast 250,000 200,000 150,000 100,000 50,000 0 2003 2004 2005 2006 2007 Household Income: $25,000-$34,999 Household Income: $35,000-$49,999 Household Income: $50,000-$74,999 2.1.4 Market Growth As the population ages, the potential market also increases. The centers that have a good marketing program and provide excellent service will increase their customer base. Page 3 Kiln Creek Bowling Corporation Target Market Growth 10.00% 5.00% 0.00% 2.2 SWOT Analysis The following SWOT analysis captures the key strength and weaknesses within the company, and describes the opportunities and threats facing Kiln Creek Bowling Center. 2.2.1 Strengths • Strong understanding and recognition of technology and its appropriate uses. • Solid relationships with many of the influential players within the community. • High quality services offered. 2.2.2 Weaknesses • High start-up costs. • Possible difficulty generating brand equity. • The struggle to continually appear on the cutting edge. Page 4 Kiln Creek Bowling Corporation 2.2.3 Opportunities • Participation within a high growth industry. • Increased sales opportunities as the Kiln Creek area becomes more developed. • The ability to spread fixed costs over an increasing revenue base. 2.2.4 Threats • Local bowling leagues not willing to switch facilities. • National chain facilities initiating major marketing push to retain customer base. • Competing facility stays open instead of closing as scheduled. 2.3 Competition Competition in the bowling business in York County is mild and will play a role in Kiln Creek's success. As described in the following section, one of the bowling centers will be closed in 2003. None of the incumbent establishments have either the level of technology, or the wide range of services provided by Kiln Creek Bowling Center. Furthermore, customer service, which is the underlying criteria for success in this business, has not been stressed by the current management of the competing bowling centers. Like other types of entertainment, price is not the only buying criterion as customers expect to enjoy the whole process of having fun. Customer service, a spotless environment, and properly working equipment equally contribute to ensuring the customer will want to come back again. There are three bowling centers within seven miles of Kiln Creek Bowling Center. All are owned by AMF Bowling Corporation. Two of them, AMF Hiddenwood and AMF Denbigh, will not have any impact on Kiln Creek's potential customers. Both are located on the southwest side of the railroad which divides the entire region. No easy roadway connects their customer base to Kiln Creek's potential customers. However, Kiln Creek Bowling Center may gain customers from AMF Hiddenwood when it closes in 2003. That is when Christopher Newport University, the owner of the building, is scheduled to replace it with a new building. The third center, AMF York, was designed and built in 1983 by this plan's author. He operated it until 1994, when it was sold to AMF. Kiln Creek Bowling Center will have a major impact on this center. The lack of concern for the customer is why several leagues have indicated they will move to Kiln Creek when it opens. 2.4 Services The bowling business is family entertainment. This is a sport that all ages can participate in and enjoy as individuals or in groups. It is where grandparents take grandchildren of all ages to have a bonding outing. The new computer technology enables anyone to experience the excitement of the sport without having to know how to keep score, because it is done automatically by the computer and displayed on a monitor. The core revenue producer is the league structure, which is all encompassing. The basic element in leagues is its three levels--beginning with youth leagues, it progresses until it reaches the senior citizen. The largest number of league bowlers are in the 35-50 age group, married with two children, home owning, with an annual income between $40,000 and $75,000. These leagues are primarily made up of married couples with similar backgrounds. Large corporations, adult school-booster organizations, and churches are excellent sources for forming this type of league. League development is only limited by management's imagination; however, the key is to find a common interest which each member of the league shares. Kiln Creek Bowling Center is a multi-media entertainment center that will also have a billiard and dart parlor with its Page 5 Kiln Creek Bowling Corporation own league structure. The Train Station full service restaurant will feature live entertainment or Karaoke for the late-night customers. 2.5 Keys to Success Kiln Creek Bowling Center has three keys to success. 1. Location- The center will be strategically located to maximize the profits from the modern day bowler. The center will be constructed on Commonwealth Drive in York County, adjacent to the Regal 14 Cinema. This location is a half mile from I-64 exit 265B, in the Kiln Creek Shopping Complex, which includes Super K Department Store, Kroger, Farm Fresh, 14-screen Regal Cinema, an ice rink, six national restaurants, two banks, 35 other store-front type businesses, and a Wal-Mart/Sam's Club that is presently under construction. This is an excellent location for a multi-purpose bowling center. According to the York County Planning Division's statistical profile of the primary market area (one to five mile radius) the location is perfect, as described by the National Bowling Council study that outlines the required demographics for a successful bowling center. Low Overhead Cost- Kiln Creek Bowling's management will keep overhead cost at a minimum. First, during construction of the center, Charles Collins Jr. will be project manager, saving approximately 15% of construction costs. His experience at operating bowling centers, as well as his educational background as an industrial engineer, contributes to his ability to streamline operations while minimizing unnecessary expenses. The employment of the best in the field for his staff will allow having many of the key employees doing more than one task. The center will have the most energy-efficient equipment of any center in the area. Wide Range of Services- Kiln Creek Bowling Center will provide entertainment, not only through bowling, but also by having a full-service restaurant/night club, billiards and darts, arcade, snack bar, apparel/pro shop, and children's nursery. This diversity will bring in more customers and provide them more ways to enjoy themselves and spend their discretionary income. 2. 3. 2.6 Critical Issues • Work hard to develop sufficient usage of all of the different activities. This is especially important to address the debt load. • Meet customer needs. This is not a one-time task but an evolving challenge. Page 6 Kiln Creek Bowling Corporation 2.7 Technology Today's bowling center is part entertainment, part sport, and part business. AMF BOSS Scoring and AMF BOSS are the systems that work together to intelligently combine all three. Instead of being bogged down with routine, the manager of the bowling center is free to manage. AMF BOSS Scoring makes each game an entertaining experience for bowlers of every skill level. Bowlers follow their score on an advanced 3D score grid that's graphically appealing and easy to read. Over 100 exciter animations add visual fun to every game situation. What's more, bumper deployment can be controlled by the scorer so parents and children can share a lane with a minimum of disruption. With its combination of features, AMF BOSS Scoring makes bowling more fun for everyone--and that makes bowlers want to come back. AMF BOSS Scoring is a professional scoring system; it helps bowlers improve. AMF BOSS Scoring has the industry's most reliable and accurate scoring camera. Working with it are high resolution monitors, with a sharper picture than any standard TV set. Bowlers can choose five or ten frame score grids, pindication and ball speed displays, plus instant replay, all of which help them evaluate or adjust their play after every shot. Add handicapping and the system has everything the serious bowler wants and needs. AMF BOSS Scoring helps get a better return on money invested in a bowling center. With video merchandising and revenue-generating games like 40 Frame and Strike Shot, powered by a Pentium processor and displayed on high-resolution VGA monitors, AMF BOSS Scoring gives the center more opportunities for enhanced revenue. AMF BOSS is the perfect business partner. Developed jointly by Microsoft and AMF, this Front Desk/Back Office system is flexible and efficient. With easy-to-understand graphics created by an award-winning design firm, and an optional touch screen complemented by a custom keyboard, training is fast and easy. And advanced COM (Component Object Model) technology makes future upgrades and programming add-ons a breeze. With inherent revenue-generating capability and superior bowling business software, the entire bowling center can be managed more effectively. AMF BOSS can be configured to the specific needs of this particular center, now, and in the future with additional modules such as Video Merchandising Leagues and Tournaments. 3.0 Marketing Strategy A full-time public relations coordinator will be a vital part of Kiln Creek Bowling Center's management team. She will be responsible for assuring customer satisfaction, generating public awareness of the type of entertainment offered at the center, and filling the various leagues with bowlers. Publicity will be generated through: • • • • • • Internet website. Print ads. Promotional coupons. Customer Frequent Bowler Program. Community Involvement Program. Business-to-business personal contact (networking). Page 7 Kiln Creek Bowling Corporation 3.1 Mission Kiln Creek Bowling Corporation's mission is to provide a wide range of high quality family entertainment options. We exist to attract and maintain customers. With a strict adherence to this maxim, success will be ensured. Our services will exceed the expectations of our customers. 3.2 Marketing Objectives 1. 2. 3. Maintain steady sales growth. Increase market share every quarter. Decrease customer acquisition costs by 1.5% per quarter. 3.3 Financial Objectives • Once operational, holding spending at a steady level relative to sales. • Decrease the debt load as fast as possible. • Increase the revenue per customer by 2% every quarter. Page 8 Kiln Creek Bowling Corporation 3.4 Target Marketing The bowling market is targeted according to household income. The three major categories are $25,000 to $34,999, $35,000 to $49,000, and $50,000 to $75,000. Target Markets Household Income: $25,000-$34,999 Household Income: $35,000-$49,999 Household Income: $50,000-$74,999 Table 3.4: Target Market Forecast Target Market Forecast Potential Customers Household Income: $25,000$34,999 Household Income: $35,000$49,999 Household Income: $50,000$74,999 Total Growth 5% 10% 10% 8.54% 2003 54,600 64,500 59,100 178,200 2004 57,330 70,950 65,010 193,290 2005 60,197 78,045 71,511 209,753 2006 63,207 85,850 78,662 227,719 2007 66,367 94,435 86,528 247,330 CAGR 5.00% 10.00% 10.00% 8.54% Page 9 Kiln Creek Bowling Corporation 3.5 Strategy Pyramids The single objective is to position Kiln Creek Bowling Corporation as the premier family entertainment center in the region, quickly gaining market share. The marketing strategy will seek to create customer awareness regarding the services offered and develop the customer base. The message that Kiln Creek will seek to communicate is that the center is the most advanced, comprehensive entertainment center in the area. This message will be communicated using several methods: • • • • • Website. Advertisements. Coupons. Community involvement. Networking. 3.6 Marketing Mix Kiln Creek's marketing mix is composed of the following approaches to pricing, distribution, advertising and promotion, and customer service. • Pricing- All prices are fixed and on display. • Distribution- the services are all offered at the Kiln Creek facility. • Advertising and Promotion- A multi-pronged strategy will be employed to achieve the advertising and promotion goals. • Customer Service- A high level of customer service must be maintained in order to ensure a large percentage of repeat customers. 3.7 Marketing Research Two forms of primary market research were performed when Kiln Creek Bowling was in the introductory stages of the business and marketing plan development. The first type was a questionnaire. The questionnaire was passed out to people within the targeted market population. Focus groups were also used to solicit information about the target customers, their needs, and their purchasing decision making process. Both forms of market research were invaluable for the development of both the business and marketing plans and served as a solid vote of confidence for the eventual decision to proceed with this project. Page 10 Kiln Creek Bowling Corporation 4.0 Financials, Budgets, and Forecasts This section will offer a financial overview of Kiln Creek Bowling Corporation as it relates to the marketing activities. Kiln Creek will address break-even analysis, sales forecasts, expense forecasts and how they link to the marketing strategy. 4.1 Break-even Analysis With average monthly fixed costs of about $40,000 and projected profit margin of 14.7%, Kiln Creek Bowling Center will break even with monthly sales revenue of $42,000. Break-even Analysis $40,000 $20,000 $0 ($20,000) ($40,000) ($60,000) $0 $13,975 $27,949 $41,924 $55,898 $69,873 Monthly break-even point Break-even point = where line intersects with 0 Table 4.1: Break-even Analysis Break-even Analysis: Monthly Units Break-even Monthly Sales Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 8,826 $41,922 $4.75 $0.20 $40,157 Page 11 Kiln Creek Bowling Corporation 4.2 Sales Forecast Kiln Creek Bowling Center provides a venue for the entire family to enjoy their leisure time participating in a competitive sport that requires minimum strength and athletic ability. The light exercise will help improve their health, and they will experience a clean facility where the service is the best in the industry, at a fair price. The chart and table below show Kiln Creek Bowling Center's projected Sales Forecast. Annual projections for three years are shown here, with first year monthly figures in the appendices. Monthly Sales Forecast $250,000 $200,000 $150,000 $100,000 $50,000 $0 Household Income: $25,000-$34,999 Household Income: $35,000-$49,999 Household Income: $50,000-$74,999 Table 4.2: Sales Forecast Sales Forecast Sales Household Income: $25,000-$34,999 Household Income: $35,000-$49,999 Household Income: $50,000-$74,999 Total Sales Direct Cost of Sales Household Income: $25,000-$34,999 Household Income: $35,000-$49,999 Household Income: $50,000-$74,999 Subtotal Cost of Sales 2003 $715,062 $700,390 $664,206 $2,079,658 2003 $71,506 $70,039 $66,421 $207,966 2004 $776,522 $745,543 $699,933 $2,221,998 2004 $77,652 $74,554 $69,993 $222,200 2005 $822,211 $801,223 $765,442 $2,388,876 2005 $82,221 $80,122 $76,544 $238,888 Page 12 Kiln Creek Bowling Corporation 4.3 Expense Forecast The expense forecast will be used as a tool to keep the department on target and provide indicators when modifications or corrections must be made for the proper implementation of the marketing plan. Monthly Expense Budget $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Advertisements Website Coupons Community involvement projects Networking Table 4.3: Marketing Expense Budget Marketing Expense Budget Advertisements Website Coupons Community involvement projects Networking Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales 2003 $65,700 $9,200 $2,220 $7,920 $2,700 -----------$87,740 4.22% $1,783,952 85.78% 2004 $70,003 $15,000 $4,000 $10,000 $4,000 -----------$103,003 4.64% $1,896,795 85.36% 2005 $81,000 $10,000 $5,000 $15,000 $5,000 -----------$116,000 4.86% $2,033,988 85.14% Page 13 Kiln Creek Bowling Corporation 5.0 Controls The purpose of Kiln Creek's marketing plan is to server as a guide for the organization. The following areas will be monitored to gauge performance. • • • • Expenses- monthly and annual. Sales- monthly and annual. Utilization of the facility- a percentage of current usage rates relative to capacity. Customer satisfaction. 5.1 Implementation Milestones The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget. Milestones Marketing Plan Completion Website Completion Advertising Campaign #1 Advertising Campaign #2 Advertising Campaign #3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Table 5.1: Milestones Milestones Milestone Marketing Plan Completion Website Completion Advertising Campaign #1 Advertising Campaign #2 Advertising Campaign #3 Totals Plan Start Date 1/1/03 1/1/03 3/1/03 6/1/03 9/1/03 End Date 2/1/03 2/1/03 5/30/03 8/30/03 11/30/03 Budget $0 $7,000 $11,200 $19,500 $35,000 $72,700 Manager Susan Susan Susan Susan Susan Department Marketing Marketing Marketing Marketing Marketing Page 14 Kiln Creek Bowling Corporation 5.2 Marketing Organization Susan Marcon will be responsible for the marketing activities. She will use her experience and expertise to implement the marketing plan. Some tasks which are outside Susan's knowledge base will be outsourced. The website development, hosting, and search engine placement will be entrusted to the experts at 1st-at-the-Top.com Internet and E-commerce consultants, www.1st-at-the-Top.com. 5.3 Contingency Planning Difficulties and risks: • Over-estimating demand. • Problems generating visibility. • Mistaken assumptions regarding the future development of the business area. Worst case risks may include: • Determining that the business cannot support itself on an ongoing basis. • Having to liquidate equipment to cover liabilities. Page 15 Appendix: Kiln Creek Bowling Corporation Table 4.2 Sales Forecast Sales Forecast Sales Household Income: $25,000-$34,999 Household Income: $35,000-$49,999 Household Income: $50,000-$74,999 Total Sales Direct Cost of Sales Household Income: $25,000-$34,999 Household Income: $35,000-$49,999 Household Income: $50,000-$74,999 Subtotal Cost of Sales Plan Jan $64,333 $61,233 $66,556 $192,122 Jan $6,433 $6,123 $6,656 $19,212 Feb $60,223 $58,775 $60,233 $179,231 Feb $6,022 $5,878 $6,023 $17,923 Mar $64,553 $61,222 $66,443 $192,218 Mar $6,455 $6,122 $6,644 $19,222 Apr $58,874 $57,883 $55,443 $172,200 Apr $5,887 $5,788 $5,544 $17,220 May $56,665 $54,333 $51,221 $162,219 May $5,667 $5,433 $5,122 $16,222 Jun $48,890 $49,987 $35,554 $134,431 Jun $4,889 $4,999 $3,555 $13,443 Jul $47,765 $48,899 $31,221 $127,885 Jul $4,777 $4,890 $3,122 $12,789 Aug $52,111 $49,989 $34,332 $136,432 Aug $5,211 $4,999 $3,433 $13,643 Sep $60,093 $59,943 $61,112 $181,148 Sep $6,009 $5,994 $6,111 $18,115 Oct $64,332 $63,553 $65,544 $193,429 Oct $6,433 $6,355 $6,554 $19,343 Nov $66,002 $65,573 $67,554 $199,129 Nov $6,600 $6,557 $6,755 $19,913 Dec $71,221 $69,000 $68,993 $209,214 Dec $7,122 $6,900 $6,899 $20,921 Page 1 Appendix: Kiln Creek Bowling Corporation Table 4.3 Marketing Expense Budget Marketing Expense Budget Advertisements Website Coupons Community involvement projects Networking Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales Jan $2,000 $7,000 $150 $100 $200 -----------$9,450 4.92% $163,460 85.08% Feb $2,200 $200 $160 $120 $210 -----------$2,890 1.61% $158,418 88.39% Mar $3,000 $200 $170 $500 $220 -----------$4,090 2.13% $168,906 87.87% Apr $4,000 $200 $180 $500 $230 -----------$5,110 2.97% $149,870 87.03% May $5,000 $200 $190 $600 $240 -----------$6,230 3.84% $139,767 86.16% Jun $5,000 $200 $180 $400 $250 -----------$6,030 4.49% $114,958 85.51% Jul $4,800 $200 $170 $500 $200 -----------$5,870 4.59% $109,227 85.41% Aug $4,700 $200 $160 $600 $210 -----------$5,870 4.30% $116,919 85.70% Sep $7,000 $200 $200 $800 $220 -----------$8,420 4.65% $154,613 85.35% Oct $8,000 $200 $210 $1,000 $230 -----------$9,640 4.98% $164,446 85.02% Nov $9,000 $200 $220 $1,300 $240 -----------$10,960 5.50% $168,256 84.50% Dec $11,000 $200 $230 $1,500 $250 -----------$13,180 6.30% $175,113 83.70% Page 2 ...
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