The following marketing plan is developed by Heinz Company's tomato sauce product manager, commenting this plan, and proposes your improvement measures.
1. General market forecast:
Total sales (23,600,000 boxes) * [1 recent growth rate (6%)]
25,000,000 boxes
2. Market share prediction
28%
3. Sales volume prediction (1 * 2)
7,000,000 boxes
4. Wholesale price
$ 4.45 / box
5. Sales income estimation (3 * 4)
$ 31,150,000
6. Variation cost estimation
Tomatoes and seasonings ($ 0.50) bottles and cap ($ 1.00) wages ($ 1.10) physical distribution ($ 0.15)
$ 2.75 / box
7. Including gross profit estimates for fixed costs, profits and marketing costs [3 * (4-6)]
$ 11,900,000
8. Fixed cost estimation
Fixed cost = $ 1.00 / box * 7,000,000 boxes
$ 7,000,000
9. Including gross profit estimates for profit and marketing costs (7-8)
$ 4,900,000
10. Target profit estimation
$ 1,900,000
11. Marketing fee estimation (9-10)
$ 3,000,000
12. Marketing cost decomposition:
advertising
$ 2,000,000
Promotion
$ 900,000
Market research
$ 100,000
* Note: The number is rounded up.
improvement measures:
1. First determine the sales and profit goals to be implemented to develop corresponding action programs and related marketing costs;
2. The cost of advertising in marketing costs seems too high (Heinz's popularity is high enough), and some costs can be adjusted to promotion and market research;
3. Provide specific advertising, promotion, and market research activities, as well as the costs needed for each event.
