Hotel Buisness Plan

8/2/2019 Hotel Buisness Plan

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1.0 Executive Summary

The Riverview Hotel, Notown USA, is representative of the five star brand within the 'Exclusive

Business Hotels of the World' group. All Riverview Hotels are boutique properties, offering

between 25 and 35 exclusive rooms.

The Riverview properties are renowned for their convenient and strategic locations within major cities

throughout the country. Also synonymous with the brand are the high level of personal service guests

receive, and the extensive range of comprehensive business facilities available in luxurious settings.

The Riverview Hotel, Notown has 35 exclusive rooms and is targeting corporate guests with a two to

three night stay requirement. Target business segments include the IT sector, due to the proximity of

the property to Silicone Hill, USA; the automotive industry in order to capitalize on the strategic

location of the hotel in relation to the Overall Motors Plant and HQ in Notown and travel trade guests

attending National and International Travel Fares at the Notown Exhibition Halls.

Differentiating the type of business service offered, from that of the competition, will assist not only

in building the Riverview brand as a whole, but will attract frequent business travelers, who require a

higher level of personal service and recognition than they can receive at competitive five star

properties in Notown. This will provide the Riverview with an opportunity to leverage its core

competencies as regards servicing the business traveller in a luxurious environment.

2.0 Situation Analysis

The 'Exclusive Business Hotels of the World' group is the ninth largest International Hotel chain in the

world, with over 320 wholly owned and managed properties. The group specializes in occupying

strategic, inner city locations and serving primarily corporate clients.

The properties range from three to five star plus categories, and include the following brands: River

Inns (3*), River Post Houses (4*), and Riverview Hotels (5*+). The group has a high instance of

repeat business across all its brands, particularly the Riverview Hotels properties, which account for

68% of total revenue across the group.

The Riverview Hotel, Notown, is dependent on annually contracted clients from the travel trade,

automotive and IT sectors with guaranteed room nights per year. This area of business accounts for

70% of the property's revenue.

The current market is somewhat depressed, due to the economic downturn and restrictions being

made on corporate travel within the U.S. This threat to the critical corporate sector could beconsidered as short to medium term, as indications of a return to business travel are observed.

Riverview Hotel, Notown, must continue to focus on delivering an exemplary business service, at

affordable rates, in order to develop the customer relationship beyond one stay.

Competitive room rates have been cut dramatically in order to attract contract clients over the next 10-

12 month period. The Riverview Hotel's survival in the current environment, will be dependent on

repeat corporate contract business and customer loyalty to the brand. The brand must therefore

continue to deliver on its promise and values.


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Market Analysis2005

2006200720082009

Potential CustomersGrowth

CAGRTravel

7%1.0001.0711.1471.2281.315

7,09%

IT Industry8%

1.2001.2961.4001.5121.633

8,01%Automotive

10%1.5001.6431.7991.9702.157

9,51%

Total8,38%3.7004.0104.3464.7105.105

8,38%

2.1 Market Needs

The Riverview Hotel offers value and benefits to our clients, over and above the standard of our

facilities and affordable rates. We seek to provide our guests with an exemplary personal service, and

level of recognition that they have come to rely upon. We provide our guest with a luxurious, relaxed

environment within which to conduct their business.

An environment which they cannot find at our larger, more impersonal competitors. Our guests need

to know that they can develop a relationship with the hotel that will ensure efficiency, value for their

money and reliability in supplying them with the support they need, when they need it. The

Riverview Hotel operates in a city with a very strong sense of community, and we want to stay an

integral part of that community.

2.2 The Market

The Riverview Hotel is a boutique 5*+ hotel comprising 35 luxury guest rooms and specializing in

servicing business and corporate clients. It serves the business community, and visiting business

traveller, in the city of Notown USA.

Our key clients are contracted corporate clients originating from both international and domestic

markets from within the travel trade, automotive and IT segments. The strategic location of the

property is key to its success in these areas due to the proximity of the Exhibition Halls, Overall Motors

and Silicone Hill, USA.

Key to our business success is the level of customer loyalty and repeat business we receive on an

annual basis. We offer our guests the most up-to-date technical business facilities, both inside the

rooms and within the hotel's conference facilities.

Our guests feel that they can conduct their business from within a less austere atmosphere than canbe experienced in our competitive properties, where there is less personal recognition. They

appreciate being called by name when they arrive, and having staff remember their specific

requirements, time and again. This is key in developing the relationship beyond an initial stay and

evidences our added value in relation to competitive properties in the vicinity.

Table: Market Analysis


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Market Analysis (Pie)

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323030382c20616c6c2 07269676874732072657365727665642e0058595a2000Tr avelffd8ffe000104a4649460001020100c800c80000f

fe2ffff4943435f50524f46494c450 00102000191964b434d53020000006d6e74725247422058595a2007d800090011 000e00290010616373704d53465400000000465343004c4c20330000000000000 000000000000000f6d5000100000000d32b4b4f 444100000000000000000000000 00000000000000000000000000000000000000000000000000000000000000000 00000016637072740000018c0000004877747074000001d4000000144b3031360 00001e8000000714b3031370000025c0000000c4b303331000002680000000c4b 30303700000274000000b0646d6e640000032400000068646d64640000038c000 0008364657363000004100000009b4b3032310000025c0000000c4b3032350000 04ac0000000c4b303330000004b80000000c7258595a000004c4000000146758595a000004d8000000146258595a000004ec0000001472545243000005000000001667545243000005000000001662545243000005000000001641324230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030

382c20616c6c207269676874732072657365727665642e0058595a2000IT Industryffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e747252474220

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

2.2.1 Market Demographics

Market Geographics: Notown, USA is a suburb of Seattle, Washington, with a population of 150,000.

Market Demographics: The community is made up predominantly of households having two to four

children, either at home or away from home, with at least one parent/guardian having attended

college.

Market Psychographics: There is a strong 'small business' ethic in the community, and many family-

run enterprises have been prospering for generations. There is also a strong sense of community and

a high level of awareness as regards to caring for the environment.

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000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d4000000144b303136000001e8000000714b3031370000025c0000000c4b303331000002680000000c4b30303700000274000000b0646d6e640000032400000068646d64640000038c0000008364657363000004100000009b4b3032310000025c0000000c4b303235000004ac0000000c4b303330000004b80000000c7258595a000004c4000000146758595a000004d8000000146258595a000004ec00000014725452

43000005000000001667545243000005000000001662545243000005000000001641324230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030382c20616c6c207269676874732072657365727665642e0058595a2000


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Market Behaviors: Businesses in the area choose to support one another wherever possible, be

remaining loyal to long standing relationships with customers and suppliers. This acts as a means of

investing in, and supporting the community structure, rather than shifting alliances to large 'newcomer'

suppliers, despite the potential cost savings involved.

This attitude supports the brand principles of the Riverview Hotel, which has had a presence in the city

for 15 years, and is well supported by local business requirements for rooms, conference facilities andcatering business functions.

Based on research carried out in 2001, more than 68% of the population had some awareness of

the Riverview Hotel. Awareness levels were highest amongst small- to medium-sized businesses

with 20 or more employees, who had utilized the hotel's facilities either for visiting business

guests, or for their own functions.


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Market DemographicsMarket Segments

-CharacteristicCharacteristicCharacteristicCharacteristic

Travel-----

IT Industry-

----

Automotive-----

Table: Market Demographics

2.2.2 Market Trends

Market trends can be categorized as follows: Corporate Travel Policies, Local Business

Trends, and Economic Cut Backs.

Corporate Travel Policies: As a result of various security issues, as regards

travelling in both domestic and international markets, there has been a significant drop

in corporate guests visiting the city. Although the level of corporate room business

appears to be increasing again, it has had a significant affect on last year's result and

consequent projections for the future.

Local Business Trends: There has been a period of low activity in the area of conferencing

and business catering with local companies electing to conduct meetings and seminars on

their own premises in order to cost cut. This is changing however as group bookings,

incoming visitors and day use of conference facilities is on the increase.

Economic Cut Backs: The city cancelled three major trade events over the past three

months, and exhibitions held at the halls had attendance figures much lower than

expected. All booked events for the upcoming 12 month period however, including

the Motor Show and the Northwest Tech Exhibition, have pre-booked attendance

figures in line with expectations and in some cases in excess of projections.

Market Analysis (Trends)

2500,0

2000,0

1500,0

1000,0

500,0

,0

Travel IT Industry Automotive

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000191964b434d53020000006d6e74725247422058595a2007d800090011000e0029001061637

3704d53465400000000465343004c4c20330000000000000000000000000000f6d500010000000

0d32b4b4f4441000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d

4000000144b303136000001e8000000714b3031370000025c0000000c4b30333100000


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2.2.3 Market Growth

The growth rate of the target markets has been steady over the past five years. The travel trade sector

has grown at an average of 7.1%, the automotive sector at an average of 9.5% and the IT industry at

8%.

Recent world events have caused a reduction in the growth rate, but current trends indicate a return toprojected growth figures within the next three to six months. Once re-stabilized, growth is anticipated

to continue at a steady pace in line with the expansions in the region's IT activities, the annual program

of travel trade events taking place and the launch of a new overall motors model this year.

Market Analysis (C.A.G.R)

2.2.4 Macroenvironment

The external, environmental

issues that affect theRiverview Hotel are:a

Political: a stable environment

where little affects our ability togenerate revenue.g

Economic: the recent recession has

seen many smaller business-orientedhotel chains go into liquidation, asthey do not possess the infrastructureto support under- performingproperties as the larger chains do.Although recovery is beginning, it maytake some time before corporate travelpolicy restrictions are fully lifted andbusiness travel returns to the samelevels of the past three years.y

Social: the trend towards cost

effective business travel leads hotelguests to seek more value for money, which is where our added value differentiation strategy comes into play.g

Technological: the installation of 'on board' room reservations systems on certain aircraft, will require a

systems integration with the hotel group's own central reservation system. This will require a high level ofinvestment.

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2.3 The Company




2.3.1 Mission

The Riverview Hotel is dedicated to providing its guests with the highest quality of service and

standards. We seek to deliver on our promise of value and quality above all else. We value our place

in the community and will work to develop those relationships and to respect and protect our

environment.

We will continue to strive to create value for both owners and shareholders whilst honoring our

brand values and encouraging our personnel to develop themselves in an environment of trust,

loyalty and encouragement.

2.3.2 Service Offering

Service: high-quality facilities accompanied by exemplary personal service, differentiated from

competition in line with the overall brand strategy has proven to be a successful approach generating

high levels of repeat business.

2.3.3 Positioning

The Riverview Hotel is positioned as a five star plus, business traveler's hotel, strategically located and

offering a high level of personal service. Our focus is on offering our guests added value anddifferentiating ourselves in our levels of personal service. We provide a quality hotel experience where

guests are valued, respected and their business is truly appreciated.

2.3.4 SWOT Summary

The following analysis highlights the internal strengths and weaknesses of our organization

and the opportunities and threats facing the company in our external environment. We must

work to improve our areas of weakness.

Organizational strengths must be leveraged in order to capitalize on external opportunities as they

arise, and contingency plans formulated in order to deal with threats presented by the environment.


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2.3.4.1 Strengths2

Strategy: established differentiation strategy.

Structure: flat, decentralized structure.

Skills: diverse range of service skills within management and staff.

Style: strong, participative culture.

Staff: specialized and experienced staff that are motivated and highly skilled. A well trained team who are

proud of their hotel and respect and promote the brand values.pShared Values: clear and well communicated.

Brand Strength: brand values well represented engendering brand loyalty amongst existing and new guests.

Reputation: a strong reputation within the local market and corporate and travel trade markets for reliability,

exemplary service and quality.

2.3.4.2 Weaknesses2

Strategy: differentiation strategy needs to be more clearly communicated externally, within local and national

markets.m

Systems: formal systems result from the detail oriented work and environment. Interdepartmentalcommunications could be improved.cStaff: seasonal turnover requires ongoing training and orientation of new staff.

Facilities: certain rooms require renovation and upgrade as regards technical equipment, such as high speed

Internet access and laptop links.

2.3.4.3 Opportunities2

Market: returning growth after a period of slump.

Competitors: no direct competition exists at present, in terms of the five star 'boutique business property'

niche.nSuppliers: strong, long-term relationships established with suppliers.

Guest Dependency: repeat corporate business based on personal service and quality, in a small but luxurious

environment.

2.3.4.4 Threats2

Market Entry: potential for a competitive, global brand to enter the market with a similar product.

Substitutes: fully furnished and serviced business apartments offering lower daily rates.

Economy: recovery from slight recession may take time.


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Historical DataVariable

200220032004

Industry Revenue$100.000.000$110.000.000$115.000.000

Company Market Share2%2%3%

Company Revenue

$2.000.000$2.200.000$3.450.000

Industry Variable Costs$70.000.000$80.000.000$80.000.000

Company Variable Costs$1.500.000$1.700.000$2.700.000

Industry Gross Contribution Margin$30.000.000$30.000.000$35.000.000

Company Gross Contribution Margin$500.000$500.000$750.000

Marketing Expenses$300.000$350.000$650.000

Company Net Contribution Margin$200.000$150.000$100.000

2.3.5 Historical Results

Marketing activity in previous years, has produced positive results. The areas that have produced

the best results have been:t

Service: high-quality facilities accompanied by exemplary personal service, differentiated from competition, in

line with the overall brand strategy has proven to be a successful approach generating high levels of repeatbusiness.b

Price: pricing strategy has been consistent with the differentiation objective, to provide added value for a

reasonable rate as opposed to discounting and devaluing our products and services.r

Place: service information is provided to the guest via personal selling, direct marketing, advertising and the

Internet. Delivery channels include travel agents and international reservations systems.I

Promotion: primary focus has been on mass communication via print ads in trade publications and on the

Internet, direct mail campaigns to existing and prospective clients and personal selling in the local market.Personal selling provides the means to develop relationships within the local community and generate highlevels of corporate activity through the business community. Public relations plays an important role in the

marketing mix, presenting the hotel as a supportive member of the community and participating in significantlocal events to assist in developing ongoing cooperation, assures repeat business and good workingrelationships.

Table: Historical Data


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Growth and ShareCompetitor

PriceGrowth Rate

Market ShareHilton

$1056%

20%Marriot

$1158%

33%Glendale Apts

$1056%5%

Hyatt Residence$120

5%12%

Riverview Hotel$105

8%30%

Average$110,00

6,50%20,00%

Total$550,00

32,50%100,00%

Competitive Analysis#1

#2

#3#4#5#6

CompetitorHilton

MarriotGlendale

HyattRiverviewName me

Product and/or ServiceHilton

MarriotGlendale

Hyatt

RiverviewName meQuality

674890

Selection575690

Price666680

Other000000

2.4 Competition

Although no direct competition exists, in terms of the five star plus boutique-style property,

other five star hotels and serviced apartments do compete for the same corporate business

sectors.

2.4.1 Direct Competition2

Hilton, Notown: 5 star city hotel, room rates on par with Riverview, older facilities.

Marriott, Notown: 5 star city hotel, room rates approximately 10% higher than Riverview, facility only four

years old.yGlendale Apartments, Notown: 5 star furnished apartments, daily rates vary between Riverview's double

deluxe and suite rates.dHyatt Residence, Notown: 5 star furnished apartments, daily rates 15% higher than Riverview's double

deluxe rates.

These properties offer similar facilities, although somewhat less focused on business needs, andincorporate more leisure facilities than we currently provide.

Table: Growth and Share Analysis


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Marriot

GlendaleHyatt

RiverviewName me

Traffic457780

Appearance47

6890

Visibility767980

Convenience Factors7668

90

Other000000

Added Value FactorsHilton

MarriotGlendale

HyattRiverviewName me

Pre and Post Sales Service354790

Experience786990

Expertise675890

Reputation596890

Image69

4880

Stability684990

Strategic Alliances00

Riverview Hotel

Table: Competitive Analysis

Competitor by Growth and Share

9

%

8

%

7

%

6

%

5

%

4

%

86 88 90 92 94 96 98 100102

Hilton Marriot

Glendale Apts

Hyatt Residence

Riverview Hotel

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

ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102

000191964b434d53020000006d6e74725247422058595a2007d800090011000e0029001061637

3704d53465400000000465343004c4c20330000000000000000000000000000f6d500010000000

0d32b4b4f4441000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d

4000000144b303136000001e8000000714b3031370000025c0000000c4b30333100000


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00

Other000000

Other Marketing ActivitiesHilton

MarriotGlendale

HyattRiverview

Name meEstablished Sales Channels

000

2.4.2 Indirect Competition

Riverview's indirect competition is "distance" meetings in the corporate world. The more companies

decide to conduct meeting over the phone, using web conferencing technology, and video phone

technology, the less business people travel and the more it affects Riverview Hotel. Riverview has to

keep abreast of all new distance meeting technology, and continue to reinforce with clients that there is

no better way to do business then face to face.

3.0 Marketing Strategy

Our marketing strategy's objective is to communicate the unique set of services that we offer to

discerning hotel guests. We attempt to direct the focus of our guests to the issues of quality and value

for the money as opposed to simply the bottom line costs associated with their stay.

Our marketing strategy will allow us to communicate our brand values, develop close working

relationships with our customers and suppliers and to identify the needs of our guests in an effective

manner. Continued differentiation and growth are two goals we have set for ourselves. Growth will

take place by targeting new areas of business within both local and national communities.

3.1 Value Proposition

Riverview Hotel offers the best, most personalized service for the corporate traveler. We include

business essentials in every room, such as a nice desk, internet connection, wireless access, and

provide easy to access meeting rooms with all audio-visual and technology needs as well as catering

for longer meetings.

3.2 Critical Issues

We have many strengths including our differentiation strategy, our flat structure and highly skilled and

well trained staff. Our weaknesses involve the need to communicate our strategy more clearly in the

external environment, our high staff turnover and training requirements due to seasonal fluctuations.

Although there is a low to medium threat of a competitive brand entering the market, there are also

opportunities as regards the high level of dependency of our guests for our particular service and our

strong position within the community with both customers and suppliers.

Critical issues for the Riverview include:C

Continuing to differentiate from our competition and offering added value to our guests.CRetaining our current levels of repeat business and developing further customer loyalty in a competitivemarket.mAttract new market sectors such as the Notown University-based business sector.AContinue to be perceived as a supportive member of the Notown community.


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3.3 Financial Objectives3

Increase overall room revenue by 10% on the past year.IAccomplish growth within the given budget of $250,000.AIncrease corporate contracted rates to reflect the return of confidence in the corporate travel market.IKeep payroll expenses down and reduce the level of overtime within the workforce.

3.4 Marketing Objectives3

To continue to communicate our strategic objectives to our target markets effectively.TTo provide a positive hotel experience to all our guests.TTo accomplish our growth targets within the given time and budget.TExpand our markets and identify new markets for our product and services.

3.5 Target Market Strategy

Our primary targets continue to be professional visitors to the region from the following industries,

where annual corporate contracts can be entered into:w

Travel trade;TIT industry;IAutomotive.

Local firms will be targeted for day use of conference facilities, room nights for visiting executives

and long stay professional guests.

3.6 Messaging

It is critical to the success of the Riverview Hotel to make sure that the hotel is kept up to the highest

level in order to keep the high quality branding that Riverview properties are known for. Our messagingwill reflect this high standard that we want to be associated with. We need to print brochures with high

quality photographs as well as on high quality paper. It will be important to spend a little bit extra on

marketing materials to ensure that they keep our "high quality" message in front of our customers.

3.6.1 Branding




The Riverview properties are renowned for their convenient and strategic locations within major cities

throughout the country. Also synonymous with the brand are the high level of personal service guests

receive, and the extensive range of comprehensive business facilities available in luxurious settings.


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Target Market MessagingMarket Segments Travel IT Industry AutomotiveMessaging Most Luxurious Small Hotel Business Ammentities and Proximity to IT Industry Best Business Ammentities

Riverview Hotel

Table: Target Market Messaging

3.7 Strategy Pyramids

Our marketing strategy is to focus customers' attention on the high quality of the services we offer.

Within this strategy are three main points aimed at different market segments.

We will provide:W

The Best Business facilitiesTPersonalized ServicesPLuxurious Amenities

Strategy Pyramid


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4.0 Marketing Mix

Place: product and service information are sold to the guest via personal selling, direct marketing,

advertising and the Internet. Delivery channels include travel agents and international reservations

systems.

4.1 Product Marketing

Product: high quality facilities accompanied by exemplary personal service, differentiated from

competition quality with the overall brand strategy has proven to be a successful approach generating

high levels of repeat business.

4.2 Pricing

Pricing strategy has been consistent with the differentiation objective, to provide added value for a

reasonable rate as opposed to discounting and de valuing our products and services.

Room rates quoted are net of tax and service, are per night, per room with continental breakfast

included:i

Corporate single -$95.00;$

Corporate double -$125.00;$Corporate double

deluxe - $ 175.00;$Corporate suite -

$225.00 (maximum occupancy2 persons).

Conference room

rates are net of tax

and service, quoted

per day use with tea

and coffee breaks (2)

included:i

The Riverview Boardroom - $260.00;The Riverview Conference Hall - $320.00;The Riverview Ballroom - $875.00.

4.3 Promotion

Promotion: primary focus will remain on mass communication via print ads in trade publications and on

the Internet. Direct mail campaigns to existing and prospective clients will increase as a cost effective

means of targeted campaigning.

Personal selling in the local market will remain an important element of the mix in order to continue to

build long-term relationships within the local community and generate high levels of corporate activity.

Public relations activities will continue to play an important role in the marketing mix, presenting

the hotel as a supportive member of the community and participating in significant local events.

ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d53465400000000465343004c4c20330000000000000000000000000000f6d5000100000000d32b4b4f4441000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d4000000144b303136000001e8000000714b3031370000025c0000000c4b303331000002680000000c4b30303700000274000000b0646d6e640000

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MilestonesAdvertising Contract media space Ad agency liasonon print ad material Dispatch/monitor campaign results Total Advertising BudgetStart Date 1/1/2005 1/1/2005 1/5/2005

End Date 1/4/2005 28/3/2005 1/8/2005Budget $20.000 $11.000 $2.000 $33.000

Manager Geoff Geoff SallyDepartment Marketing Marketing Marketing

4.3.2 Public Relations

The following table shows our primary PR milestones.

Table: PR Milestones

MilestonesDirect Marketing Direct mail lists to purchase/prepare Ad agency liason on direct mail materialStart Date 1/2/2005 1/3/2004End Date 1/3/2005 1/3/2005Budget $6.000 $7.000

Manager Sally SallyDepartment Marketing Marketing

Riverview Hotel

4.3.1 Advertising

The following table shows our primary advertising milestones.

Table: Advertising Milestones

Milestones

PR Start Date End Date Budget Manager Department Public relations functions to schedule 1/2/2005 1/3/2005 $0 Anne PR Evaluatesponsorship requests 1/3/2005 1/4/2005 $0 Anne PR Establish list of sponsorship $6.000

1/4/2005 1/6/2005 Anne PRevents/companiesTotal PR Budget $6.000

4.3.3 Direct Marketing

Our direct marketing will be handled by our PR agency. We will buy select targeted list of corporate

companies and send them information about Riverview Hotel. We know that we are no experts in

direct marketing so it will be important that our PR agency handles every aspect of direct marketing

for us.

Table: Direct Marketing Milestones

Total Direct Marketing Budget $13.000

4.4 Web Plan

Our website is already up and running, but needs to be revamped to give it an updated look and feel,

as well as to add secure interactivity. The content is good -- it just need a little refresher.

We need:

1.New home page design and navigation2.Online reservations capability3.Printable brochure


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Pay-Per-Click ROASNetwork Google Yahoo! Other Total

Monthly Cost $3.000 $2.000 $500 5500Clicks 600 300 100 1000

Leads Generated 75 40 30 145Orders 10 5 3 18

Monthly Revenue $5.000 $4.000 $1.500 10500ROAS 167% 200% 300% 222%

Cost-per?click $5,00 $6,67 $5,00 $5,56Cost-per?lead $40,00 $50,00 $16,67 $35,56

Milestones

Web Development Homepage Re-design Printable Brochures Online reservations Total Web Development BudgetStart Date 1/1/2005 1/1/2005 1/1/2005End Date 15/1/2005 15/1/2005 15/1/2005Budget $1.000 $2.000 $6.000 $9.000Manager Shelly Shelly ShellyDepartment Marketing Marketing Marketing

MilestonesAdvertising

Start DateEnd Date

BudgetManager

DepartmentContract media space

1/1/20051/4/2005

$20.000Geoff

MarketingAd agency liasonon print ad material

1/1/200528/3/2005

$11.000Geoff

MarketingDispatch/monitor campaign results

1/5/20051/8/2005

$2.000Sally

MarketingTotal Advertising Budget

4.4.1 Website Goals

Our website needs to be able to do the following:

1.Convey our messaging of high quality, luxury business accommodations2.Be indexed on major travel websites so that people find us

3.Be able to take reservations online and make changes to reservations online

4.4.2 Website Marketing Strategy

Our main website marketing strategy hinges upon making sure all major travel sites such as

Expedia.com, Orbitz.com, and Hotels.com list our hotel when customers search for hotels in our area.

4.4.3 Development Requirements

To attain the level of interactivity we want in our redesign, we need to increase the features allowed

(security for reservations and credit-card processing, daily back-ups, and real-time database linking)

and service-level of our hosting service. This will slightly increase our monthly hosting fee.

Sally has contracted with a database developer to update our reservations system to be compatible

with the online reservation requirements. The new website will be ready to launch in April.

Table: Pay-per-click ROAS

Table: Website Milestones


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.

PRStart Date

End DateBudget

ManagerDepartment

Public relations functions to schedule1/2/2005

1/3/2005$0

AnnePR

Evaluate sponsorship requests1/3/2005

1/4/2005$0

AnnePR

Establish list of sponsorship events/companies1/4/2005

1/6/2005$6.000

AnnePR

Total PR Budget

$6.000

Direct MarketingStart Date

End DateBudget

ManagerDepartment

Direct mail lists to purchase/prepare1/2/2005

1/3/2005$6.000

Sally

MarketingAd agency liason on direct mail material1/3/2004

1/3/2005$7.000

SallyMarketing

Total Direct Marketing Budget

$13.000

Web Development

Start Date End DateBudget

ManagerDepartment

Homepage Re-design1/1/2005

15/1/2005$1.000

ShellyMarketing

Printable Brochures1/1/2005

15/1/2005$2.000

Shelly

MarketingOnline reservations

1/1/200515/1/2005

$6.000Shelly

MarketingTotal Web Development Budget

$9.000

Riverview Hotel

4.5 Service

Our hotel provides guests with an alternative to the impersonal, large five star properties in the city.

Strategically located, our property enables our guests to be at the heart of the business community andyet in an environment of calm and professionalism. We seek to differentiate our product and services in

the following areas:t

Personal recognition of our frequent travelers who return time and again.PLuxurious rooms that offer a sense of doing business from 'home.'LStaff that have a strong customer-service ethic.SBusiness facilities second to none in town.

4.6 Implementation Schedule

New marketing campaign efforts will be focused from January through April, aimed at the launch of the

redesigned website in April. We will continue to track the results of this campaign for the remainder of

the year.

Table: Milestones


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Start Date

End DateBudget

ManagerDepartment

Name me1/1/2006

15/1/2006$0

ABCDepartment

Name me1/1/2006

15/1/2006$0

ABCDepartment

Name me1/1/2006

15/1/2006$0

ABCDepartment

Other1/1/2006

15/1/2006$0

ABCDepartment

Total Other Budget

$0

Totals

$61.000

Sales Account Plan

Target Accounts Company A Company B Company CHistory disappointed w/ current referral from Jack request on 12/15Status proposal made designing proposal drafting responseAnnual Sales Potential $20.000 $15.000 $10.000Key Account Manager Geoff Geoff SallyExisting Key Accounts Company 1 Company 2 Other TotalHistory 3 years 5 annual conferences -Status Stable check next month -Annual Sales Potential $40.000 $60.000 $0 $145.000Key Account Manager Sally Geoff -

4.7 Sales Plan

Our sales plan hinges upon our sales strategy, sales process and, prospecting plan. As long as we

follow the plans laid below we should be in good shape.

4.7.1 Sales Strategy

Riverview Hotel's sales strategy hinges upon repeat visits by key corporate accounts. We need to

develop a relationship with the companies listed in our Sales Account Plan, as well as actively generate

new accounts by soliciting first time corporate visitors.

It will be important to remain competitive on price, as well as amenities. The corporate accounting

department wants to make sure they limit the amount of money spent per night per employee on a

business trip, but the business traveler will be able to express preference. If the price is right, and

the business traveler knows that they will have all amenities they need while at the Riverview Hotel,

we will be assured of keeping and attracting key accounts.

4.7.2 Sales Process

We will be sure to mail out corporate packets every 6 months to our key accounts, as well as any new

accounts we acquire. The packets will have information about corporate pricing and discounts, as well

as information about rooms and amenities for the companies to share with business travelers.

The biggest piece of our sales process will depend on personal relationships. We will need to make

every business traveler feel like we remember them and we know their likes and dislikes. We also need

to cultivate good relationships with the person at the company who makes travel arrangements.

Table: Sales Account Plan


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Table: Fixed CostsFixed CostsCost Rent or Lease Professional Services Payroll Interest Payments Utilities & Telephone Non-discretionary marketing expenses Other Total$0 $1.000 $10.000 $2.000 $5.000 $0 $0 $18.000

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even Monthly Revenue Break-even145 $19.929Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost$137,14 $13,28 $18.000

4.7.3 Prospecting Plan

Whenever a new customers stays at our hotel we need to be able to determine whether it is for leisure or

business. If it is for business -- we need to make sure to get the customers business name and address so that

we can send a corporate packet to the company letting them know about corporate pricing and special

business amenities.

5.0 Financials

Our annual marketing budget is $100,000. Sales are anticipated to achieve revenue of $1,172,925. Our

marketing expenses will equate to approximately 8.5% of the overall revenue.

5.1 Break-even Analysis


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Sales ForecastFY 2006

FY 2007FY 2008

Unit Sales

Corporate Single1.9252.1182.118

Corporate Double3.6654.0324.032

Corporate Deluxe2.6952.9652.965

Corporate Suite

268294294

Total Unit Sales8.5539.4099.408

Unit PricesFY 2006FY 2007FY 2008

Corporate Single$95,00$95,00$99,00

Corporate Double

$125,00$125,00$135,00

Corporate Deluxe$175,00$175,00$195,00

Corporate Suite$225,00$225,00$240,00

Sales

Corporate Single$182.875$201.210$209.633

Corporate Double$458.125$504.000$544.253

Corporate Deluxe$471.625$518.875$578.175

Corporate Suite$60.300$66.150

$70.560Total Sales

$1.172.925$1.290.235$1.402.620

Direct Unit CostsFY 2006FY 2007FY 2008

Corporate Single$7,86

$11,00$11,00

Cor orate Double

Riverview Hotel

Break-even Analysis

Monthly break-even point

Break-even point = where line intersects with 0

5.2 Sales Forecast

Room revenue for this year is based on an average growth rate of 10%. This is based on the number of

pre-contracted corporate rooms, and an anticipated return to business levels projected.

Table: Sales Forecast

ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f464

94c45000102000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d53465400000000465343004c4c20330000000000000000000000000000f6d5000100000000d32b4b4f4441000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d4000000144b303136000001e8000000714b3031370000025c0000000c4b303331000002680000000c4b30303700000274000000b0646d6e640000032400000068646d64640000038c0000008364657363000004100000009b4b3032310000025c0000000c4b303235000004ac0000000c4b303330000004b80000000c7258595a000004c4000000146758595a000004d8000000146258595a000004ec0000001472545243000005000000001667545243000005000000001662545243000005000000001641324230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030382c20616c6c207269676874732072657365727665642e0058595a2000


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,$13,50

Corporate Deluxe$17,50$18,50$18,50

Corporate Suite$0,84$0,00$0,00

Direct Cost of Sales

Corporate Single $15.138$23.298$23.293

Corporate Double$51.033$54.432$54.425

Corporate Deluxe$47.163$54.853$54.853

Corporate Suite$225

$0$0

Subtotal Direct Cost of Sales$113.558$132.583$132.570

Marketing Expense BudgetFY 2006FY 2007

FY 2008Print Advertising

$10.600$11.600

$12.826Internet Advertising

$21.000$23.100

$25.410Public Relations

$6.000$6.600

$7.260Other

$21.000$23.100

$25.410

-----------?-----------?

-----------?Total Sales and Marketing Expenses

$58.600

$64.400 $70.906Percent of Sales

5,00%4,99%

5,06%

Riverview Hotel

Sales Monthly

5.3ExpenseForecast

Marketing expenses are projected to be approximately 8.5% of overall annual revenue. The breakdown

of expenditures is as follows:

Table: Marketing Expense Budget

$6000,0 $5000,0 $4000,0 $3000,0 $2000,0

$1000,0 $,0

Monthly Expense Budget

Print Advertising Internet Advertising

Public Relations Other

ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d53465400000000465343004c4c20330000000000000000000000000000f6d5000100000000d32b4b4f4441000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000016637072740000018c0000004877747074000001d4000000144b303136000001e8000000714b3031370000025c0000000c4b303331000002680000000c4b30303700000274000000b0646d6e640000032400000068646d64640000038c0000008364657363000004100000009b4b3032310000025c0000000c4b303235000004ac0000000c4b303330000004b80000000c7258595a000004c4000000146758595a000004d8000000146258595a000004ec0000001472545243000005000000001667545243000005000000001662545243000005000000001641324230000005180000c6344b3037300000cb4c0000000a423241300000cb580000c6344b3037310001918c0000000a7

465787400000000436f707972696768742028632920456173746d616e204b6f64616b20436f6d70616e792c20323030382c20616c6c207269676874732072657365727665642e0058595a2000

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5.4 Linking Expenses to Strategy and Tactics

Our marketing expense is structured to reflect the corporate strategy differentiation. Quarterly travel

trade publications and interim monthly press ads communicate our message to key corporate clients in

one of our most significant target markets. Monthly Internet advertising expenses include banner ads,

and strategic links with car hire, airline and destination management companies' websites to drive

business to the hotel. Direct mail activity builds our targeted customer database, not only in terms ofimproving the quality of the data we currently hold, but on increasing the size of the database with

prospective customer information. Public relations expenses cover PR events, participation at local

functions and sponsorship funds. Overall, the percentage of total revenue required to support the

marketing expense is considered a moderate amount.

Sales vs. Expenses Monthly

5.5 Contribution Margin

Contribution margins should increase due to:C

Differentiation/focus strategy increases ability to specialize.DMaintenance of expenses within specified levels.MIncreased efficiency in capacity utilization.IEconomies of scale due to increased purchasing efficiencies.

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Riverview Hotel

Table: Contribution Margin

Contribution MarginFY 2006 FY 2007 FY 2008

Sales $1.172.925 $1.290.235 $1.402.620

Direct Cost of Sales $113.558 $132.583 $132.570 Other Costs of Sales $0 $0 $0

Total Cost of Sales $113.558 $132.583 $132.570

Gross Margin $1.059.368 $1.157.653 $1.270.050 Gross Margin % 90,32% 89,72% 90,55%

Marketing Expense Budget FY 2006 FY 2007 FY 2008 Print Advertising $10.600 $11.600 $12.826 Internet Advertising $21.000 $23.100 $25.410Public Relations $6.000 $6.600 $7.260 Other $21.000 $23.100 $25.410

Total Sales and Marketing Expenses $58.600 $64.400 $70.906 Percent of Sales 5,00% 4,99% 5,06%

Contribution Margin $1.000.768 $1.093.253 $1.199.144 Contribution Margin / Sales 85,32% 84,73% 85,49%

Contribution Margin Monthly

6.0 Controls

Our marketing plan is structured to enable us to achieve the strategic goals we have set for ourselves,

in terms of increasing overall revenue as a result of differentiating our products and services from the

competition.

Our marketing team will

ensure that the plan is

implemented to the best of

their ability and with the

highest levels of efficiencyand accuracy.

ffd8ffe000104a4649460001020100c800c80000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d53465400000000465343004c4c20330000000000000000000000000000f6d5000100000000d32b4b4f444100000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

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Sales Forecast???

???????????????????????????????????

Unit Sales

Corporate Single0%

180175175160150175175125100160175

175Corporate Double

0%280260375300280375

6.1 Implementation

All figures will be monitored on an ongoing basis in relation to projections versus actuals, and the

ongoing plan will be altered or manipulated as necessary in order to react to and, wherever possible,

anticipate external changes to the environment.

Annual results will be evaluated at the Region General Manager's meeting where the structure ofthe plan for the approaching year will also be established.

6.2 Keys to Success6

Continue to develop ongoing relationships with frequent and new guests.CContinue to develop and implement a strong communications plan in both national and international markets.CLeverage our strength in the local market as a member of the community by supporting local events.LIdentify new markets for our services such as University-based target groups.IContinue ongoing staff training and skill development to ensure the highest standards of service.

6.3 Contingency Planning

Contingency plans have been made for the following unexpected developments:C

A slower recovery from the recession than public opinion: this has been reflected in the moderate increase inlevels of corporate business expected.lThe entry into the market of a competitively aligned hotel: differentiation would continue to be the strategicapproach with the development of added value and benefits to leverage long standing relationships and repeatbusiness based on familiarity and personal attention to detail.

6.4 Marketing Organization

Our marketing director, Geoff Watkins, leads our PR and marketing team of four in all advertising,promotional and public relations related activities. Geoff works closely with the members of the team,

to implement and monitor the effectiveness of the marketing plan and evaluate results.


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300375

280Corporate Deluxe

0%260240250225200250220225175225200

225Corporate Suite

0%105

45155

7560153

155

15Total Unit Sales

730680845700

635875815645478700755

695Unit Prices

???????????????????????????????????

???Corporate Single

$95,00$95,00$95,00$95,00$95,00$95,00$95,00$95,00$95,00$95,00$95,00

$95,00Corporate Double

$125,00$125,00$125,00$125,00$125,00$125,00$125,00$125,00$125,00$125,00$125,00

$125,00Corporate Deluxe

$175,00$175,00$175,00

$175,00$175,00$175,00$175,00$175,00$175,00$175,00$175,00

$175,00Corporate Suite

$225,00$225,00$225,00$225,00$225,00

Marketing Expense Budget???

????????????????????????????????

???Print Advertising

$2.000$400$400

$2.000

$300$300

$2.000$300$300

$2.000$300

$300Internet Advertising

$1.750$1.750$1.750$1.750$1.750$1.750$1.7501.750

Appendix

Appendix Table: Sales Forecast

Page 25


27/32

$225,00$225,00$225,00$225,00

$225,00

$1.750$1.750

Public Relations$500

$500$500$500$500$500$500$500$500$500$500

$500Other

$1.750$1.750$1.750

$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750

$1.750

-----------?-----------?-----------?-----------?-----------?-----------?-----------?-----------?

-----------?-----------?-----------?

-----------?Total Sales and Marketing Expenses

$6.000$4.400$4.400$6.000$4.300$4.300$6.000$4.300$4.300$6.000$4.300

$4.300Percent of Sales

6,01%4,77%

3,75%6,29%5,04%3,46%5,28%4,80%6,53%6,29%4,32%

4,56%

Contribution Margin???

???

????????????????????????????????

Sales$99.850

$92.250$117.375$95.450$85.375

$124.125$113.625$89.625$65.800

$95.450$99.625

$94.375Direct Cost of Sales

$9.985$9.113$9.150$9.208$8.425$9.150

$10.013$11.145$6.513

$11.908$9.850

$9.100Other Costs of Sales

$0$0

$0$0$0$0$0$0$0$0$0

$0

-----------?-----------?-----------?-----------?-----------?

Appendix

Appendix Table: Marketing Expense Budget

Page 26


28/32

----------------------?-----------?-----------?

-----------?Total Cost of Sales

$9.985$9.113$9.150$9.208$8.425$9.150

$10.013$11.145$6.513

$11.908$9.850

$9.100Gross Margin

$89.865$83.138$108.225$86.243$76.950

$114.975$103.613$78.480$59.288$83.543$89.775

$85.275Gross Margin %

90,00%90,12%92,20%90,35%90,13%92,63%91,19%

87,56%90,10%87,52%90,11%

90,36%Marketing Expense Budget

???????????????????????????????????

???Print Advertising

$2.000$400$400

$2.000$300$300

$2.000$300$300

$2.000$300

$300Internet Advertising

$1.750$1.750$1.750$1.750$1.750$1.750$1.750

$1.750$1.750$1.750$1.750

$1.750Public Relations

$500$500$500$500$500$500$500$500$500$500$500

$500Other

$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750$1.750

$1.750

Appendix

Appendix Table: Contribution Margin

Page 27


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1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.2 The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.2.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2.4 Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.3 The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3.2 Service Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3.3 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3.4 SWOT Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.3.4. Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.4. Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.4. Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.4. Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.3.5 Historical Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.4 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.4.1 Direct Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.4.2 Indirect Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.1 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.2 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.4 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.5 Target Market Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.6 Messaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3.6.1 Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.7 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

4.0 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4.1 Product Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.2 Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.3 Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4.3.1 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.3.2 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.3.3 Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

4.4 Web Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.4.1 Website Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164.4.2 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164.4.3 Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

4.5 Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

4.6 Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174.7 Sales Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4.7.1 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184.7.2 Sales Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184.7.3 Prospecting Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

5.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

5.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215.4 Linking Expenses to Strategy and Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . 225.5 Contribution Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

6.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24


30/32

6.2 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246.4 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25


31/32

April 2005

This sample marketing plan has been made available

to users ofMarketing 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., 1998-2006

ffd8ffe000104a46494600010201005e005e0000ffe2ffff4943435f50524f46494c45000102000191964b434d53020000006d6e74725247422058595a2007d800090011000e00290010616373704d53465400000000465343004c4c

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



32/32

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.

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