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Mi x e dG r e e n s S a l a dG a r d e n s
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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.
. . . . . .3 Market Trends . . . . . . . . . . 2. . . .3 . . . . . . 2. Marketing Organization Contingency Planning . . . . . . . . . . . 11 . . . . . . . . . . . . . . . . . . . . .2 5. . . . . . . . . . . . . . . . 7 3. . . . . . . . . . . . . . . . . . . . 9 3. . . . . . .1 Mission . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . . . . . . . .2 Sales Forecast . . . . . . . . . . . . . . . .4 Threats . 2. . . . . . . . . . . . 2. . . . . . . 8 3. 13 . . . . . . . . 2.1 Break-even Analysis 4. . .3 . . . . . . . . . .7 . . 10 . . . .4 . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 . . . . . . . . . . . . . . . .1 . . . . . . . . . . . . . .6 . . . . 2. . . . . . . . . . . . . . . . . . . 2.3 . . . . .1 . .1. . . . . . . . . . . . . . . . . . . . . . . 8 3. . . . . . . . . . . . . . . . 2.0 . . . . . . . . . . . . . . . . .5 Keys to Success . . . . . . . . .5 Positioning . . . . . . . . . .2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . .7 . 15 . .1 5. . . . .2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . .3 Competition . . . . . . . . . . . . . . .1 Strengths . . . . . . . . .2. . . . . . . . .0 5. . . . . . . . .2 SWOT Analysis . . . . . . . . . . . .6 Critical Issues . . . . . . .Table Of Contents 1. . . . . . .0 2.6 . . . . . . . . . . . . . Controls 5. . . . . . .1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 . . . 8 3. 9 3. . . . . 2. .2. .7 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0 Executive Summary . 10 Financials . . . . . . . . . . . . . . . . . .1 . . . . . . . . . . . . . . . . . . . . . . .8 Marketing Research . . . . . . . . . . . . . .1. . . . . .3 Financial Objectives . . 7 3. . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . . . .4 Market Growth . . . . . . . . . . . . .6 Strategies . . . . . . . . . . . .1 Market Summary . . . .4 Target Markets . . . . . . . .5 . . . . . . . . . . . . . .2 Market Needs . . . . . . 14 . . . . . . . . . . . . . . .3 Expense Forecast . . . . . . . . . . . . . . .0 Marketing Strategy .7 Marketing Mix . . . .4 Product Offering . . . . . . . . . . . . . . . . . . . . . . 2. . . . .1 Market Demographics 2. . . . . .2. . . . . . . . . . . . . . . . . . 3. . . 9 3. 2. . . . . . . . . . .5 . . . . . . . . . .1. . . . . . . . . . . . . . . . . 15 4. . . . . . 4. . . Implementation . . . . . . . .2 . . . . . . . . . . . . .3 Opportunities . . . . . . . . . . 2.2. . . . . . 4. . . . . .
The greens have been well received. and chicory. Heidi Ponic.Mixed Greens Salad Gardens 1. The basic market need is high-quality salad field greens with flexibility in production for both the consumer and commercial market. Right now in Eugene. radichio. 2. mustard greens. 2. MG's pursuit of ultimate quality coupled with the flexibility of a small. combined with her extensive background in horticulture and sheer passion will propel the business into profitability. MG serves both the consumer market. Mixed Greens Salad Gardens will leverage this information to better understand who is served. arugula. MG grows a wide variety of field greens including red leaf. MG will succeed in developing a profitable business through the use of their two competitive advantages. local grower will allow it to exploit the opportunity in the current market. wishing that they had more to sell. Heidi's relentless pursuit of quality. endive. MG offers a wide range of high-quality spring field salad greens. Page 1 . and marketing is now critical to its continued success and future profitability. the founder and owner of Mixed Greens Salad Gardens sees this market opportunity and is prepared to seize it.0 Executive Summary Mixed Greens Salad Gardens (MG) is a local producer of salad field greens. their specific needs. as well as local restaurants. Ore.1 Market Summary Mixed Greens Salad Gardens possesses good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. Every week they sell out of their greens.0 Situation Analysis Mixed Greens Salad Gardens is a start-up business. The local farmers cannot produce enough product to satiate local demand. demand outstrips supply when it comes to quality field greens. quality and flexibility. and how Mixed Greens Salad Gardens can better communicate with them..
028 2002 13. and behavior factors. • Have attended college or graduate school. Demographics • Singles and families. • A 20 mile geographic area is in need of the products. demographic. • Ages 25-50.99% 2001 12. • Have a household income of more than $45.1.93% 11. individual consumers and restaurants.1: Target Market Forecast Target Market Forecast Potential Customers Individual consumers Restaurants Total Growth 12% 8% 11. Please note that Mixed Greens Salad Gardens has two target segment customers.920 CAGR 12.000. this segment makes up 53% of the Eugene market according to the Chamber of Commerce.470 2003 15. • The total targeted population is 12. Individuals: Geographics • The immediate target is the city of Eugene with a population of 130.000.Mixed Greens Salad Gardens Target Markets Individual consumers Restaurants Table 2. Behavior Factors Page 2 .053 32 15. • Are cognizant about their health.894 2005 18.99% 2.440 30 13.000 28 12.00% 7.859 35 16. • Tend to patronize higher-quality restaurants.882 38 18.028.085 2004 16.1 Market Demographics The profile for MG's customer consists of the following geographic.
Demographics • • • • • Male and female. • Enjoy a high-quality meal without the mess of making it themselves. Page 3 . Behavior factors • Are health conscious. • A 45 mile geographic area.3 Market Trends The market for mixed greens has exploded within the last five years. • Health consciousness: Americans have become more health conscious and mixed greens have supported this goal as salad greens are inherently healthy and a salad mix is far tastier then the old standby of Romaine or Iceberg. 2. • Customer service: The patron will be impressed with the level of attention that they receive. • Selection: A wide choice of different greens with the flexibility to change crops midseason. Single and families. 2. • There is value attributed to the more attractive presentation of a salad mix. • Accessibility: MG has a booth at the Farmer's Market held twice per week in Downtown Eugene. Household income over $60. tastier greens.1. MG seeks to fulfill the following benefits that are important to their customers. Explanations for this trend are: • Market supply: The increase of supply has reinforced the demand. Tend to eat out at least once a week. and also delivers once to twice a week to Eugene restaurants.1. Within the last few years many farms that were producing general vegetables have moved to production of salad greens because of the increased margins and market demand.2 Market Needs Mixed Greens Salad Gardens provides individuals and restaurants with high-quality mixed salad greens. • Competitive pricing: All products will be priced competitive to true substitutes. Restaurants (and their customers): Geographics • Eugene is the targeted population. • Presentation/appearance: Presentation as an element of the culinary experience has taken on more value as chefs have become more creative over the last several years. Tend to patronize higher-quality restaurants.Mixed Greens Salad Gardens • Are willing to pay a premium for higher quality.000.
000 8. Americans are learning to appreciate the more sophisticated taste of this health food. Therefore taste and health consciousness is what is driving this demand.000 16.000 4. Lastly.000 0 2001 2002 2003 2004 2005 Individual consumers Restaurants 2.1.000 6. Page 4 . the national market for mixed greens reached $87 million in sales.000 18. This specific type of produce is forecast to grow at 8%. This demand can be seen by the increase of salad offerings by finer restaurants.000 12. presentation is becoming a variable in gauging the quality of a meal. far greater than the rest of the agricultural industry.000 10.000 14.4 Market Growth In 2000. and a mix for salad greens is very aesthetically pleasing.000 2.Mixed Greens Salad Gardens Market Forecast 20.
2 SWOT Analysis The following SWOT analysis captures key strengths and weaknesses within the company and describe the threats facing Mixed Greens Salad Gardens.1 Strengths • Flexibility in meeting restaurant's needs.00% 12.00% 10.00% 0.2.00% 0.00% Individual consumers Restaurants 2. • High-quality product offerings that exceed competitors offerings of price.00% 6.00% 10.00% 8.00% 6.2 Weaknesses • Mixed Greens Salad Gardens lacks brand equity.Mixed Greens Salad Gardens Target Market Growth 12.00% 8. 2.00% 2. 2.2. • Higher than industry margins due to production efficiencies. quality. • A limited marketing budget to develop brand awareness.00% 4.00% 2. Page 5 . and service.00% 4. • The decreased degree of flexibility when near full production.
2.00 $0. The produce is not usually local and is a few days older from the field compared with the local farmers. Large distributors: An example of this would be Food Service of America (FSA) which buys a wide variety of products and quality of produce from farmers and distributes them to restaurants.3: Growth and Share Analysis Growth and Share Competitor Competitor Competitor Competitor Competitor Competitor Other Average Total Price $0 $0 $0 $0 $0 $0 $0. 2.4 Threats • An out of state. The quality is sub par to the offerings of MG and other similar local farmers. The advantage of the supermarket is convenience. 2. already established competitor that has decided to make customer service and flexibility their selling point. The cost is higher. Table 2. • The ability to develop long-term commercial contracts which should lower costs associated with production.00% 0. • A health scare that questions the safety of mixed greens.Mixed Greens Salad Gardens 2.2.3 Opportunities • Growing market with a significant percentage of the target market still not aware that Mixed Greens Salad Gardens exists. Supermarkets: These stores sell a salad greens mix to consumers.00% Page 6 . 3. The disadvantage of a food distributor is the lack of flexibility relative to a local grower when serving local customers.3 Competition There are three types of competitors that MG faces: 1.00% Market Share 0% 0% 0% 0% 0% 0% 0.00 Growth Rate 0% 0% 0% 0% 0% 0% 0. The price is comparable and the quality can be comparable.2. Their disadvantage is price and quality. but not necessarily.00% 0. There appears to be room in the market for multiple farmers as most of the farmers sell out their products each day at the farmers market. usually 15% more. • Poor weather which will lower field yields. sometimes larger or smaller. Similar local farmers: These are very similar operations to MG. There are many supermarkets around the city and they are open many hours during the day.
0 Marketing Strategy Mixed Greens Salad Gardens' marketing budget is limited so the strategy will be simple.Mixed Greens Salad Gardens 2. While the greens are washed at the farm they are not certified washed and the patrons are told to wash them an additional time.6 Critical Issues Mixed Greens Salad Gardens is still in the speculative stage as a green grower. as well as some co-branded ads with the Farmer's Market. endive. and chicory. mustard greens. When we adhere to this maxim. MG will leverage a networking campaign among the local restauranteurs to drive commercial sales. but are not limited to: red leaf. We exist to attract and maintain customers. 2. Mixed Greens Salad Gardens will advertise in both the Register Guard as well as Eugene Weekly.5 Keys to Success Exceed the customer's expectations. • Increase the number of restaurant accounts. radichio. Additionally.4 Product Offering MG will sell a spring mix of salad field greens. everything else will fall into place. but because it is economically wise to. 3. 3. purchased by the end consumer as well as by restaurants who then serve it to their patrons. Our services will exceed the expectations of our customers. • Increase the transactions amount per customer. expand at a reasonable rate. arugula. Its critical issues are to continue to take a modest fiscal approach. not for the sake of expansion in itself. To do so.1 Mission Mixed Greens Salad Gardens' mission is to provide the highest-quality salad greens. 2. Advertisements will be for MG individually. These greens are grown for use in salad mixtures. MG will: • Generate repeat business. Developing visibility and brand equity is key. These greens will include. and continue to build brand awareness to lower future marketing costs. In addition to the advertisements which will be used to drive consumer sales. Page 7 .
steady growth each month. This group of consumers is more likely to make their own meals instead of going out. Restaurants. Experience an increase in new customers who are turned into long-term customers. Additionally. 3. The individuals have access to Mixed Greens Salad Gardens' salad greens at a booth that they set up at the Farmer's Market.2 Marketing Objectives 1. but what you get for the fee is all of your marketing taken care of and a line of customers. Maintain positive.4 Target Markets MG has two distinct customers: 1.Mixed Greens Salad Gardens 3. 2. there are several other smaller farmer markets that exist in outlining communities. Not all restaurants use mesclun mixes. MG is going after people that appreciate healthier. or nouveau cuisine restaurant as opposed to a French or German restaurant that appreciates the Mesclun mix. appreciate fine dining. Average Americans have been raised on iceberg lettuce and this is their green of choice. there is already a steady flow of interested customers. 3. Generate brand equity at the Farmer's Market as well as within the commercial restaurant industry market. Realize a 3% increase in gross profit margins through efficiency gains every year. There are about 25-30 different restaurants in Eugene that use field greens in their salad and MG intends to approach these to form a long-term relationship. By setting up a booth in these markets. MG's target market segment strategy is fairly easy. Reduce the transportation costs associated with product delivery by 10% by the end of the first year. This group of people buy mesclun greens because they have a more sophisticated pallette. Ore. This occurs when a restaurant needs ingredients but did not have the time to order in advance. tastier alternatives to the standby of iceberg lettuce. generally it is a restaurant of fine dining that serves the finer greens. These are NOT the people MG serves. This market gets quite a bit of traffic because there is a nice selection of different farmers and products and it is in a central location. In addition to individuals frequenting the farmer's market. 2. Individual consumers. Page 8 . and generally are from a higher socio/economic class. Restaurants MG will target these customers by introducing MG and their products to the restaurants through meetings with the buyers at each restaurant. The restaurants are a year round customer which is helpful to balance the seasonal demand of the consumers. These people are typically unsophisticated or unadventurous in terms of culinary habits. Another advantage of having restaurants as a customer is that even though they get a better price. restaurants will go there as well. 3. The main one is "The Farmer's Market" held downtown twice a week in the Spring and the Summer. To be even more specific. it is typically an adventurous American. Individuals These customers will be buying MG products from the different farmer markets located in Eugene. 2. MG has a long-term contract with them which helps in terms of stability.3 Financial Objectives 1. There obviously is a fee to set up a stand.
Mixed Greens Salad Gardens 3. 3. Restaurants will have their produce delivered. this investment will pay off with a fiercly loyal customer. • Pricing: MG's pricing scheme is a per pound charge for salad greens. Consumers may purchase any amount of greens. The message will also be communicated to the different restaurants through networking with owners and managers. Reliable. but because Eugene is a a fairly intimate community. The marketing strategy will seek to first create customer awareness regarding services offered. • Customer service: Obsessive customer service is the mantra.7 Marketing Mix Mixed Greens Salad Gardens' marketing mix is comprised of the following approaches to price.6 Strategies The single objective is to position Mixed Greens Salad Gardens as THE finest producer of salad greens in the Willamette River Valley. Professional. High-quality producer. distribution. Mixed Greens Salad Gardens seeks to communicate the message that they are the finest grower of high-end salad greens. Not only is there an Eugene-based restaurant association which is a formal group of restauranteurs. MG's philosophy is whatever needs to be done to make the customer happy must occur. 3. Other advertisements will be solely MG advertisements. and work toward building customer loyalty. The first method will be advertisements. • Distribution: Consumers are able to purchase the greens from MG's stand at the local Farmer's Market. MG will communicate their message through informal gatherings and networking with restaurant owners. and customer service. The ads will be placed in both the local newspaper as well as the local art/entertainment paper. Some of the advertisements will be co-branding with the Farmer's Market. develop the customer base. This message will be communicated through a variety of methods. restaurants must purchase in three pound quantities. • Advertising and promotion: A mixture of advertisements and networking will be used to increase visibility for Mixed Greens Salad Gardens.5 Positioning Mixed Greens Salad Gardens will position itself as: • • • • Flexible. Page 9 . advertising and promotion. commanding a majority of the market share within five years. In the long term. even at the expense of short-term profits.
and how those link to the marketing strategy.8 Marketing Research During the initial phase of the marketing plan development. as well as show its commitment to the customer that their suggestions are valued. Page 10 . The last source of market research is competitive analysis. 4. sales forecasts. The suggestion card has several statements that customers are asked to rate in terms of a given scale. Mixed Greens Salad Gardens will work hard to implement reasonable suggestions in order to improve their service offerings. Mixed Greens Salad Gardens will address break-even analysis.0 Financials This section will offer a financial overview of Mixed Greens Salad Gardens as it relates to the marketing activities. There are also several open ended questions that allow the customer to freely offer constructive criticism or praise.Mixed Greens Salad Gardens 3. several focus groups were held to gain insight into prospective customers. These focus groups provided helpful insight into the decision making processes. Mixed Greens Salad Gardens will send people to local competitors to gain information about their product offerings. An additional source of dynamic market research is a feedback mechanism based on a suggestion card system. expenses forecasts.
636 $6.880 $5.000 $0 ($2.1 Break-even Analysis The Break-even Analysis indicates $8.000 $2.Mixed Greens Salad Gardens 4.000) $0 $2.640 $11.400 Monthly break-even point Break-even point = where line intersects with 0 Table 4.439 $8.00 $0.000) ($6.000 $6.72 $7. Break-even Analysis $8.520 $14.760 $8.000) ($4.000) ($8.000 $4.636 will be need in monthly revenue to reach the breakeven point.600 Page 11 .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 1.
000 $2.210 2003 $6. This will continue until month nine when the consumer sales will be significantly decreasing due to the closing of the farmer's markets. From month nine to 16 MG will have an increase in restaurant sales to offset the elimination of the consumer sales.545 $111.393 $6.212 $78.565 2002 $38.625 Page 12 .000 $4.171 $8.2 Sales Forecast The first month will be used to set up the green house and get things underway.000 $6. From month three there will be a steady increase in production and sales.899 $72.373 2003 $51.480 $15.000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Individual consumers Restaurants Table 4.000 $8.428 $71. Monthly Sales Forecast $12.000 $10.998 $130. By month 17.668 $8.Mixed Greens Salad Gardens 4. restaurant sales will decrease to accommodate the ramping up of consumer sales again.444 2002 $4.145 $9.2: Sales Forecast Sales Forecast Sales Individual consumers Restaurants Total Sales Direct Cost of Sales Individual consumers Restaurants Subtotal Cost of Sales 2001 $19.944 $51. There will not be sales activity until month three when the first greens will be sprouting.705 $13.372 2001 $2.
657 84.585 86.01% $60.100 $1. and nine through 11 for restaurant sales. Monthly Expense Budget $300 $250 $200 $150 $100 $50 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Advertising Networking Table 4.99% 2002 $1.921 86.46% Page 13 .54% $112.07% 2003 $1.150 1.000 $1.Mixed Greens Salad Gardens 4.3: Marketing Expense Budget Marketing Expense Budget Advertising Networking Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales 2001 $1.100 $1.000 1.050 -----------$2.93% $95.050 -----------$2.000 -----------$2.150 3.3 Expense Forecast Marketing expenses are budgeted to see a spike in costs between months five through eight for consumer sales.
Milestones Marketing plan completion Advertising campaign Networking campaign Jan Feb Mar Table 5.Mixed Greens Salad Gardens 5.100 $6. 5.0 Controls The purpose of Mixed Greens Salad Gardens' marketing plan is to serve as a guide for the organization.1 Implementation The following milestones identify the key marketing programs.1: Milestones Milestones Milestone Marketing plan completion Advertising campaign Networking campaign Totals Plan Start Date 1/1/01 1/1/01 1/1/01 End Date 3/1/01 ongoing ongoing Budget $3. The following areas will be monitored to gauge performance: • • • • Revenue: monthly and annual. Expenses: monthly and annual. Customer satisfaction. Repeat business. It is important to accomplish each one on time and on budget.300 Manager Heidi Heidi Heidi Department Marketing Marketing Marketing Page 14 .200 $3.
Mixed Greens Salad Gardens 5. • Poor weather which could hamper crop yields.2 Marketing Organization Heidi Ponic is responsible for all marketing activities. • Having to liquidate equipment to cover liabilities. 5. • An already established competitor that chooses to compete on quality and flexibility. Worst case risks may include: • Determining that the business cannot support itself on an ongoing basis.3 Contingency Planning Difficulties and risks: • Problems generating visibility. Page 15 .
009 $1.2 Sales Forecast Sales Forecast Sales Individual consumers Restaurants Total Sales Direct Cost of Sales Individual consumers Restaurants Subtotal Cost of Sales Plan Jan $0 $0 $0 Jan $0 $0 $0 Feb $0 $0 $0 Feb $0 $0 $0 Mar $0 $0 $0 Mar $0 $0 $0 Apr $2.687 $5.412 $8.987 $7.987 Oct $0 $958 $958 Nov $0 $8.254 $3.789 $3.312 Sep $0 $7.154 $6.245 $10.316 Jul $511 $487 $998 Aug $5.334 Jun $455 $425 $880 Jul $4.067 $1.932 Aug $682 $629 $1.009 Dec $0 $8.Appendix: Mixed Greens Salad Gardens Table 4.408 May $390 $378 $769 Jun $3.058 $8.895 Dec $0 $1.067 Page 1 .412 Nov $0 $1.895 $8.874 $5.545 $7.258 $7.830 Apr $355 $345 $700 May $3.258 Sep $0 $871 $871 Oct $0 $7.258 $4.956 $2.
829 85.61% $7.187 85.50% Nov $0 $50 -----------$50 0.Appendix: Mixed Greens Salad Gardens Table 4.339 83.154 83.24% Oct $0 $200 -----------$200 2.91% Jul $250 $50 -----------$300 3.50% $6.15% $4.00% ($150) 0.018 84.00% Mar $100 $50 -----------$150 0.39% Aug $0 $200 -----------$200 1.09% $6.32% Jun $250 $50 -----------$300 4.44% Page 2 .85% May $250 $50 -----------$300 4.17% Sep $0 $200 -----------$200 2.68% $5.353 87.00% ($50) 0.420 86.83% $9.3 Marketing Expense Budget Marketing Expense Budget Advertising Networking Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales Jan $0 $50 -----------$50 0.00% Feb $0 $50 -----------$50 0.778 87.76% $6.00% Apr $250 $50 -----------$300 5.56% $7.830 82.41% Dec $0 $50 -----------$50 0.00% ($50) 0.59% $7.
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