Unit 8 Business Planning Task Sheet 3a

AO2: Marketing Planning

The importance of a marketing plan, designed to attract customers
to a business, including:
customers . who they are and why they would be prepared to buy the product;
the projected number of customers and their buying behaviour
competitors . the level of competition for the product and how your business
proposal might establish a competitive advantage
marketing mix . the application of the four Ps (Price, Product, Promotion and
Place) to the product.
How a sales forecast, quantifying expected monthly revenues and based on a
chosen marketing mix, can be produced by considering likely customer and
competitive behaviour.

This task will now show the results of your research in a formal and
professional business plan.
Student tasks:
Design a marketing plan that includes the following:
1. Identifies the customers in terms of target audience, profile and attributes
for spending. Explain what is the buying behaviour of the customers (are
they seasonal buyers, frequent buyers, complimentary good buyers etc?)
2. Explain why the customers would be prepared to buy the product you have
developed using your market research to justify these points.
3. Give an estimated number of customers (per day, week, month and year).
You will need to do this based on capacity, expected sales, competitor
observations and market research. Remember sales will usually start off
slower.
4. Identify who the competitors are and the level of competition they pose for
your company. Will you therefore need a penetration strategy or can you
get away with prestige/premium or competitive strategies? If you
penetrate the market how will you change your price over time to make
sure you do not alienate your customers?
5. Explain how you will achieve a competitive advantage.
6. Explain your marketing mix for the product (price you will charge, what is
special about the product, how you will promote the product and the place
where the product will be available to customers.
7. In detail describe how your marketing plan will help you achieve your
business objectives.
Remember use your research to justify your decisions and recognise
the source you have used to back up your decision. It is vital your
research is organised effectively and page numbered to make this
sourcing easier.

Unit 8 Business Planning Task Sheet 3b

Operations Planning
The importance factors included in an operations plan to consider are:
the monthly quantity produced, considering both volume and timing in
order to meet customer demand predicted by the marketing plan and its
sales forecast
the different stages of production and how established quality levels
might be assured
the human and physical resources required, including:
Human:
the personnel essential to operate a business and their cost
the skills required, training needed and the cost of training.
This task will show the practicalities of running your business on a day to
day basis. How will your business operate? You may wish to interview a
competitor to look at an average day in their life to help you shape this
section.
Student tasks:
1. In your marketing plan you will have identified monthly demand for your
product or service. This should include the volume of demand and any timing
considerations for you ordering raw materials. Consider therefore what your
weekly monthly and yearly variable costs will be. Where will you source these
products? How will they give you a competitive advantage?
2. Identify the different stages of production. Describe your production process
or the process you will have to follow when you provide a service for a
customer. You may want to do this in the form of a quality charter. Explain
how you would establish quality assurance.
3. Identify what physical resources you will need. (See operations planning grid
for an overview of the requirements)
a. Type of premises and its cost
b. Stock required and its cost
c. How to acquire the premises and stock (lease, rent, hire purchase,
trade credit etc.)
d. How stock levels will be maintained (minimum, maximum, re-order
levels, JIT ordering)
e. All other running costs and where you will source them should be
included here.
4. Identify what staffing you will need. This should include
a. Cost of staff
b. Skills required
c. Training required
d. Cost of training.
5. In detail describe how your operations plan will help you achieve your business
objectives.

Unit 8 Business Planning Task Sheet 3c

Financial Analysis and Planning
How a business can plan its financial requirements, based on the
requirements of the marketing and operations plans, considering:
size, duration and rate of interest of bank loan required
start-up budget with estimates of buying or renting premises,
purchases of machinery, office equipment and fixtures and
fittings
break-even forecasts, including contribution and margin of
safety
cash flow forecasts
projected profit and loss statement and balance sheet.
This task requires you to combine your research to create a number of financial
statements. The quality of your statements will directly depend upon the quality of
research in terms of potential demand, cost of raw materials and seasonal changes. Your
best case scenario should reflect your maximum capacity. Your worst case scenario will
show you making a loss. Your most likely case scenario should be realistic and not over
optimistic with huge profits in your first year.

Student tasks:
1. Identify the size of a loan required to start and run the business
2. State how long the loan is required for.
3. State the rate of interest to be charged on the loan
4. Produce a start up budget including: (see mini budget operations
plan)
a.
b.
c.
d.
e.
f.

Estimated Sales revenue

Estimates of buying/renting
Estimates of buying/renting
Estimates of buying/renting
Estimates of buying/renting
Estimated monthly profit

premises
machinery
office equipment
fixture and fittings.

5. Produce a break even chart or formula and state the margin of

safety
6. Produce a cash flow forecast
7. Produce a projected Profit and Loss Statement
8. Produce a projected Balance Sheet
9. In detail describe how your finance plan will help you achieve your
business objectives.
Remember estimate your most likely case scenario first and then
consider worst and best case scenarios. Interpret and analyse

each chart explaining how accurate you think they are and how
you have come to these conclusions. Explain your reasons for
optimism and pessimism in your best and worst case scenarios.