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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.
. . . . . . . . . . . . Controls 5.3 Expense Forecast . . . . . . . . .2. . . . . .2 SWOT Analysis . . . . . . . . . . . . . . . . .Table Of Contents 1.5 . . . . . . . 2. . . . . .4 . . . . . . . . . . . . . . . . . .1 Market Summary . . . . . . . . . . . . . . . . . . . .4 Services . . . . . . .1 5. .1 Strengths . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . . . . . . . . . .0 Executive Summary . . 16 . . . .7 Marketing Mix . . 4. . . . 9 3. . . .6 . . . . . . . . . 14 . . .1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . .6 Strategy Pyramids . . . . .3 Competition . . .2. . . . . . . . 11 3.3 . . . . . . . . . . . . . . . . . . 10 3.1 . . . . . . . . . . . . . . . . . .1. .1 Market Demographics 2. . . 10 3. . . . . . . . . . . .9 Situation Analysis . . . . . . . . . . . . . . . . . 10 3. . . . . . . . . . . . . . . . Implementation Milestones Marketing Organization . .3 Financial Objectives . . . . . . . . . .2 5. . . . . . . . . . . . . . . . . .6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2. . . . . . . . . 2. . . . . . . . 9 3. . . . . . 2. . . . . . . . . . .5 Positioning . . . . . .7 1 17 18 18 4. .7 . . 2. . 9 3. . . .2. .0 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Break-even Analysis . . .4 . . . . . . . 13 . . . . . .8 Marketing Research . . . . . . . . . . . . . . . . 4. . . . . . . . . .0 5. . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . 9 3.1. . . . . . . . .7 . . . . . . . . . 2. . . . . . . . . . . . . . . .8 . . 2. . . . . .1. . . . . . . . . . . .4 Threats . . . . . . . . . . 2. . . . . . . . . . .5 Keys to Success . . . . .3 . . . . . . . . .2 Marketing Objectives . . . .3 . . . . . . . . . . . . .4 Market Growth . . . .8 .0 . . . . . . . . Contingency Planning . . . . .6 . . . . . . . .4 Target Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . Budgets. . . . . . . . . 12 Financials. . . . .7 . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . .2 Weaknesses . . . . . . . 2. . . . . . . . . . . . . . .2 Sales Forecast . . . . .1. . . . and Forecasts 4. . . . . . . . . . . . . . .3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . .6 Critical Issues . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . .7 . . . . . . . .3 Opportunities . . . . . 3.0 Marketing Strategy . .2 Market Needs . .
• Establish good working relationships with the present insurance markets by meeting with their decision makers and plotting a mutual plan for success. Acme Insurance is a privately incorporated company in thethe Smalltown district and is licensed to transact both Life and General Insurance. Get commitments for support and products that Acme can market in the trading area starting April 1st. 1." • Begin the "Insurance Partners" program. Acme Insurance primarily markets and services Personal Lines Insurance. Therefore our goals are: • To re-establish Acme Insurance. Acme Insurance. that respect the interests and goals of each party. Inc. and insurance companies. 2003. and • plans for the upload and download of insurance policies.0 Executive Summary By focusing on its strengths. • Investigate new markets that meet the marketing criteria by • committing to small rural brokerage. In order to implement our strategic goals. lower income families or long-time resident senior citizens who demand value-priced insurance premiums in keeping with their lower and fixed incomes. and understandable. • Complete inspection of all Pilot homeowners within one month before renewal date. A phone call is more than any direct mass marketer offers. Acme will focus on developing the following tools. Success will be measured by the clients choosing Acme because of their belief in Acme's ability to meet or exceed their expectations of price. especially in handling a loss.Acme Insurance. its present client base. and new value-priced products in the next year. Inc. Acme has stressed to the insured the importance of good communication between the broker and client to insure proper coverage is in place. • Provide sales incentives to staff to meet sales goals. friendly staff that can empathize with our consumers' needs and circumstances. Incorporated has been profitable. staff members. • A commitment to an annual insurance review for all of our clients. Its customers are mostly rural. • providing products suitable to the economic and social climate. Acme will also provide insurance to small business. and that are affordable. Acme has noticed as the clients become better informed about insurance that there has been a tremendous increase in clients wishing in-depth discussions about their policy coverage and how they can get the most value for their insurance Page 1 . available. service. Acme wishes to establish a successful partnership with the clients. • Formulate plans to acquire another brokerage. • Provide small businesses with an affordable basic business package. Acme Insurance plans to increase gross sales by 10% and profit by 15%. in order of importance: • Identify "Target Markets. Inc. Acme Insurance. but recently Acme has had a declining market share and this must be addressed. • Policies and endorsements delivered on time with minimal errors. is dedicated to providing insurance products that provide quality protection with value pricing. as the market leader in quality and value-priced insurance products in the Smalltown district. • Policies that meet or exceed the expectations of our clients. The shares are held equally by John Smith and Peter Smith. mostly family-run seasonal operations primarily focused on the tourist trade. and expertise. Acme believes personal contact and service is the cornerstone of our success. The Keys to Success and critical factors for the next year are. • Knowledgeable.
in most cases. They trust Acme's judgment in selecting the proper coverage and company. Acme believes that the independent broker will survive. helps with market value and replacement cost analysis when required. quotas. The company does not anticipate any cash flow problems. Based on these changes in the goals.000.Acme Insurance. they are able to service the clients even when a client's broker is busy or out of the office on inspections. unlike the competition.000 Senior Citizens $1. The clients.000.000. The company's strength lies in the quality and depth of our products and staff. Acme is more automated than most service industries. Annual Sales Forecast $3. In spite of the above. Acme anticipates that they will be able to make revenues of approximately $750. Because of Acme's larger staff.500. dollar.000. Acme is close to the customer. The number of players has decreased in both the broker and company communities.000 $1. they now may find themselves in competition with some of the traditional broker distribution companies that are setting up direct marketing facilities and branches. The banks now have announced they will open stand alone insurance offices to retail insurance. The past few years have seen tremendous upheaval in the insurance industry. Brokers are concerned that in spite of commission reductions.000 $2. outlook. The Real Estate division. regardless of some insurance companies' attempts to sever the traditional broker-client relationship. and refusal to write new auto business by some markets. contract cancellations. still do not care or know which company they are placed with.500. are open six days a week.000 $0 2003 2004 2005 Lower Income Families Small Businesses Page 2 . which is a separate company. Inc.000 $500.000 by year three of the plan and a net profit of $170. The recession has curtailed insured from properly maintaining their homes and automobiles. and insurance fraud has become a major issue for the entire insurance industry.000 $2. and company culture. The offices.
876 2004 9.887 CAGR 7.52% Page 3 .448 10.699 10.1: Target Market Forecast Target Market Forecast Potential Customers Senior Citizens Lower Income Families Small Businesses Total Growth 7% 8% 8% 7. Acme has built a loyal customer base selling primarily life and general insurance that includes auto insurance as well as packages for small businesses. Target Markets Senior Citizens Lower Income Families Small Businesses Table 2. effective relationships with clients is a priority at Acme and a competitive edge.383 22.345 8.383 1.00% 8.52% 2003 8.134 1. Acme will be able to offer better value to our customers by addressing their true needs.494 23. The business has done well over the years.1 Market Summary Having operated in the same town for over 64 years.945 1. Four generations of Smiths have worked at Acme.186 19. Acme has developed good information about the common attributes of the most prized and loyal customers. 2. but the current principals desire to take Acme to the next level.219 2005 9. Inc.0 Situation Analysis The original incarnation of Acme Insurance was created as a sole proprietorship in 1938.Acme Insurance.734 8.00% 8.216 2007 11. meeting their specific needs. 2. and learning the most efficient and effective means of communicating with them.044 1.098 17. This information will be leveraged to continually collect information about the customers in the "holy grail" of better serving them.00% 7.281 20.999 9. With better communication.688 1. The basic market need is a comprehensive insurance brokerage that has developed clear lines of communication with the client. The need to establish close.663 2006 10.
• The unemployment rate is 8%. • Customer service. Acme seeks to fulfill the following benefits that are important to their customers. • Knowledgeable staff. • A 100-mile geographic area is in need of our services. word will spread fast within this small. the ration changes to 64:36 male:female.1 children. 2.2 Market Needs Acme Insurance is providing their customers with a personalized. • The average household income is $34.The ability to offer a wide selection of insurance products to the rural population of Smalltown.Acme Insurance.Customer's expectations must be exceeded. • The total targeted population is 17. • Only 37% of the customers have attended some college.This benefit is very important to the insurance brokerage business as the interaction between staff and the customer is what Acme is truly offering.000. For the auto insurance and life insurance products. • Most business decisions are based on a trust relationship established by being an active member of the community. For the small business products. with a year-round population of 13. • The average age of the customer is 54 years old. • Most social activities are sponsored by social organizations within the community such as Kiwanis and Rotary. close-knit community. Inc.876. and behavior factors: Geographics: • The immediate geographic target is Small town. Behavior Factors: • Are a part of a close-knit community. close communication advising/brokerage relationship for insurance products. • The family composition of the customers is two adults. and a summer time population of 25. the ratio of male to female is 54:46. If this is accomplished.1. Demographics: • Male and Female.000.000. 3. demographic. 2. Page 4 . • Selection.1.1 Market Demographics The profile for Acme Insurance's customer consists of the following geographic. rural.
The recession has curtailed insured from properly maintaining their homes and automobiles. many clients have turned to wood heat and started doing their own repairs and maintenance that may have increased the number and severity of claims. The automobile product has. Brokers are concerned that in spite of commission reductions. The new federal government is close to adopting a new automobile contract that hopefully will make it affordable. The clients. quotas. Acme believes that the independent broker will survive. and available to the clients. and impossible to understand.1.000 5. understandable. in most cases. In spite of the above.000 20. Upload/download capabilities are in many broker's offices. Insurance fraud has become a major issue for the entire insurance industry. The traditional close relationship with our companies has been strained. and refusal to write new auto business in some markets. regardless of some insurance companies' attempts to sever the traditional broker-client relationship.000 Senior Citizens Lower Income Families Small Businesses 10. unavailable. This will cut costs. including our own. Acme is closer to the customer. and help us meet the competition from banks and direct writers. The banks. The number of players has decreased in both the broker and company communities.000 15. They trust our judgment in selecting the proper coverage and company for them. and to exacerbate the situation. in the mind of the public. Inc. improve efficiency and accuracy. contract cancellations. even though thwarted by the federal government in its last budget to retail insurance from their premises. become unaffordable. A profitable automobile product will entice the companies to aggressively seek new sales and more brokers will see companies offering contracts.Acme Insurance. still do not care or know which company Acme places them with. 2.3 Market Trends The past few years have seen tremendous upheaval in the insurance industry. they now may find themselves in competition with some of the traditional broker distribution companies that are setting up direct marketing facilities and branches. will continue pressure on the government and now have announced they will open stand alone insurance offices to retail insurance. Market Forecast 25. Acme is more automated than most service industries.000 0 2003 2004 2005 2006 2007 Page 5 . Companies that truly value and trust the broker distribution system will align themselves with professional brokers and grant more underwriting authority similar to Lloyds.
Page 6 .1.2. Because of the large rate of adoption and its mandatory nature in some segments.4 Market Growth In 2001. • Comprehensive customer insight. Some insurance is required such as automobile.00% 2. Insurance is a part of life in the Canada.Acme Insurance.00% 4. Target Market Growth 8.00% 6. • In-depth knowledge of the industry. the insurance industry will be a growth industry for years to come. Insurance sales are forecasted to grow at 6% for the next four years.1 Strengths • Well trained staff.00% 0. the national insurance market was a $43 billion industry. 87% of the population have some form of insurance.00% 2. 2. 2. Other insurance such as life and home is not required but is a very sensible way of reducing risk. Inc.2 SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Acme Insurance. Within Canada.
especially small farm mutuals. mass merchandise programs and group plans. Agents (such as Co-operators) • Strengths .Large advertising budget and very competitive prices. Patrick C. Johnson. and allow discounts and underwriting terms. 2.Alternate markets. Inc. • Increased sales through an expansion of the current service offerings.One small operation that does not have the same hours as Acme's offices. mass market providers. that still continue to give low prices.2.3 Opportunities • Participation within a growth industry. Staff. traumatic events that put significant strain on the financial health of the insurance industry as a whole.4 Threats • Competition from local brokerages that respond to Acme's superior offerings.Acme Insurance. Page 7 .2 Weaknesses • A limited number of people inhabiting Smalltown.Most are smaller. agents. one-man operations that do not have the backup or finances to aggressively impact the marketplace. unexpected. • Weakness. • A single of series of huge. the ability to decrease fixed costs over a growing customer base. Rob Champlain Strengths .Price." • Strengths . • The struggle to stay ahead on the technological adoption curve in a small.2. • Weakness . 2.Not local and largely unknown to the clients at the present time. rural community. Mass Market Providers • Strengths . do not appear to be very knowledgeable or aggressive. Their commercial business is difficult to compete against in some cases because they seem to not have the same restrictions on underwriting as our markets.2. because of salary. • Weakness . 2. 2. • As the company continues to grow.Large advertising budget and competitively priced products.3 Competition Competition is found in five forms: local indeendent brokers. Mass merchandise programs heavily advertised over the radio such as "Gray Power. Also they have large capacity to write certain risks. • The high costs of switching current insurance consumers from a competing firm to Acme. Local Independent Brokers • Cal Roberts. still continue to write wood stoves. • A significant slump in the economy that will likely have a correlated effect on the industry.
and business insurance in the Smalltown district. such as lawyers and mortgages. automobile. and are the largest multi-line insurance broker in our trading area. Acme believes personal contact and service is the cornerstone of success. 2. • Weakness . Acme also provides insurance services to non-clients. friendly staff that can empathize with our consumers needs and circumstances. 2. the clients know that Acme is there to provide help and counsel to ensure a fast. 4. 3. Group Plans .Very little obviously. 2. and that are affordable.A still untried. and understandable. unknown quantity. Like other independent brokers.Teachers. Acme Insurance provides home. • Weakness . Acme has noticed as the clients become better informed about insurance that there has been a tremendous increase in clients wishing in-depth discussions about their policy coverage and how they can get the most value for their insurance dollar. Knowledgeable.5 Keys to Success Acme believes the keys to success in a small town insurance business are: 1. businesses. to ensure the mutual clients have proper coverage and binding notes in place for the purchase of homes. In the event of a claim.4 Services Acme Insurance is committed to providing professional sales and service for its insurance customers. Policies that meet or exceed the expectations of the clients. Acme takes pride in knowing that for over 50 years they have helped clients to find the best coverage at the right price that suits their needs and expectations. Public Employees • Strength . Page 8 . Policies and endorsements delivered on time with minimal errors. A commitment to an annual insurance review for all of our clients. and automobiles. Acme has established what they consider to be an excellent reputation in our area. Inc. speedy claim settlement. especially in handling a loss. since we insure very few of the professions. A phone call is more than any direct mass marketer offers.Group pricing. Acme has stressed to the insured the importance of good communication between the broker and client to insure proper coverage is in place. available.Acme Insurance. endorsements and process renewals. Acme issues binders and new policies.
2. 2. success will be insured. Inc. Our services will exceed the expectations of the customers. Increase profits by 2% a quarter. family business that is pursuing new growth strategies. Page 9 . 3. 3. With a strict adherence to this maxim. Reinforce a market image as the finest service provider in the industry.Acme Insurance. Increase the ability to forecast which prospective customers are going to have the least number of claims and convert them into long-term clients. 5.1 Mission Acme Insurance's mission is to provide the finest level of insurance services. 3. 3. • Constantly monitor customer satisfaction. We exist to attract and maintain customers.6 Critical Issues Acme Insurance is an established. Focus on senior. claims-free personal lines business and the profitable. Target small. Hold customer acquisition costs steady. Build a partnership business based on account selling.0 Marketing Strategy 1. non-franchise business that does not have access to group insurance plans. 4. well-run. Decrease the costs associated with serving distant clients. 3. ensuring that the growth strategy will never compromise service and satisfaction levels. The critical issues that we face are: • Pursue controlled growth that dictates that payroll expenses will never exceed sales revenue. Investigate acquiring other brokerages in the area.2 Marketing Objectives 1. Increase market share by 1% per quarter. small family business. 3. 2.3 Financial Objectives 1. 2. 3. Emphasize service and support.
Inc. homes in poor repair. Not only do the broker and the company take responsibility for proper protection and indemnity in the event of loss. Acme will serve all of Smalltown. and the company is based upon a new concept. the brokerage uses a number of boilerplate letters on our computer system that are sent along with various types of policies explaining unique features or limitations in the contracts to avoid possible Errors and Omissions claims. consciously and subconsciously. The stronger and more open the relationship is. and constantly build customer loyalty and referrals. The first method of communication is through advertisements in the Yellow Pages. and many attempt to install and repair their own plumbing. customer-centric insurance brokerage serving the Smalltown area. The marketing strategy will seek to continually develop customer awareness regarding the services offered. family-run business (many of which are seasonal and based on the tourist trade). wiring.The business model is based on the staff developing close. everyone in the firm practices them. and heating systems. Acme has recently produced a pamphlet titled "Insurance Partners" that stresses that a successful insurance partnership between the client. communicative relationships with clients. this business philosophy has been cultured within Acme and all of its employees. Because these types of relationships are so fundamental to Acme's practices.Acme Insurance. personal service. Having significant experience provides the entire company with a vast amount of industry knowledge that Acme is able to leverage and offer as value to the clients. the client must also take his/her share of responsibility to insure the safety of his/her property by keeping it well maintained and using qualified professionals to update or change the heating. This message will be communicated through a variety of methods. and plumbing systems in his home. electrical. Acme stresses that multiple claims or claims arising out of poor maintenance may adversely affect his/her insurance. In addition to the above. 3. Acme has amassed a huge amount of industry knowledge based in empirical experience.4 Target Marketing The market consists of senior citizens. A second method of communication will be the distribution of sales literature. the more value and higher level of service that can be offered. 3.6 Strategy Pyramids The main focus of Acme's marketing plan is the establishment of Acme Insurance as the premier. lower-income young families (many of who are on social assistance) and the small. which is a widely dispersed. develop the customer base. but in the 2000's. They also encourage the clients to Page 10 .5 Positioning Acme Insurance is being positioned as a comprehensive. the broker. personal insurance broker serving clients through close. 3. While other insurance brokerages claim to offer closer personal contact. • Close personal customer relationships. This strategy will be implemented by communicating that Acme can better serve Smalltown's insurance needs. Acme will leverage our competitive advantages which consists of the following: • Knowledgeable industry participants. rural community. Acme is cautious about encouraging business from lower income prospects since they tend to have wood heat.Having established the company in 1938.
distribution.e. 3. 2. two other methods will be employed. others will be address a general audience. One aim is the education of the consumer to the different services that the insurance industry and insurance brokers offer.The reality of the insurance brokerage industry is that the service is the Page 11 . new insurance should be solicited. Identify sports and hobby groups that involve seniors and cottagers. profitable. In spite of some companies' efforts to minimize the importance of the broker. Acme is seeing the commercial markets now moving toward basic coverage and limiting the "bells and whistles. Inc. A third method of communication will be several insurance workshops that are offered throughout the year to the Smalltown community. distribution of printed material and the hosting of free public seminars. Acme must begin to investigate alternate ways to put its name in front of the public. has started to lower loss ratios. well-managed. Also.. All clients should be contacted before renewal to ensure covers are current and adequate. 1. you know you have the proper protection. low-risk operations. and word of mouth. the clients still identify with the broker.Acme Insurance. Continued insistence by the industry on better proactive protection. and accepting payment by credit or debit card. This should help stabilize pricing and. contact Acme about reviewing their coverages and promote other products and services Acme provides. ensure that there is an insurance market available for most risks. 4. listings in the Yellow Pages. the goal of the seminars is to introduce customers to Acme. even more important. Acme will be developing a "Now what do I do?" message to emphasize the need for dealing with Acme's insurance professionals so that in the event a loss occurs. Acme must ensure that our price and service are perceived to be good value to the client. Some of the seminars will be targeting seniors. Our markets must offer several payment options to our clients that are convenient to the client. The purpose of the workshops is multi-fold. Distribution. Make contacts and support senior citizen groups and cottage associations." all-risk products available to only those clients who have modern.000 for any commercial package policy. and care for customers. Acme Insurance must improve and increase contacts with the clients. advertising and promotion. Primarily. not the product. Many of the larger insurance markets have increased minimum premiums to $1.The customers are especially sensitive to value. Many insureds are on a fixed income and receive their income on a set day of each month or a paycheck on a particular day. fire and burglar alarms. not the insurance company. i. Acme must sell the company.Acme has depended in the past on a small advertisement in the local newspaper.payment on insured's preferred day of month. Example . not just to the company. All advertising has to emphasize the differentiation points rather than just price. Pricing. Customer Service.7 Marketing Mix Acme Insurance's marketing mix is comprised of the following approaches to pricing. Acme's in-depth knowledge. not on the company's. The Lloyds market should be able to accommodate these customers with a minimum premium of approximately $600. etc. the services provided. Advertising and Promotion. Additionally. 3.This will occur both at Acme's offices as well as on occasion at the insured's home. upgrading of buildings.
Acme Insurance. there were many different beliefs/ perspectives that were unexpected but observed in the surveys. product. Overall. Insurance is a commodity-like purchase and it is the service of the broker that distinguishes providers. The goal of the questionnaires was to collect insight and perspective from our target customers. 3.8 Marketing Research While the most recent rendition of the marketing plan was being completed. A total of 200 forms were handed out and 68 were returned completed. Page 12 . the questionnaires were a valuable form of primary market research that has been instrumental in the completion of this marketing plan. With this important fact recognized. An expert was employed to ensure the validity of the forms. The results of the surveys were that some of the originally held assumptions were confirmed. The forms were designed by a graduate student in the statistics department. Theses were given to current as well as prospective customers. Acme conducted primary market research. The market research that Acme collected was in the form of questionnaires. Inc. Acme strives to provide the highest level of customer service. Additionally.
667 $100.000) ($6.400 $21.0 Financials.200 $14. 4. Budgets.000) ($8.000 Monthly break-even point Break-even point = where line intersects with 0 Table 4.000 $0 ($2.1 Break-even Analysis The break-even analysis indicates that $21.000) ($4.000 $2.800 $36.00 $6. expenses forecasts.500 Page 13 . sales forecasts.000 $4. Acme will address break-even analysis.000) $0 $7. 4.667 is needed in monthly revenue to reach the breakeven point.00 $70.1: 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 217 $21.600 $28. Break-even Analysis $6. and Forecasts This section will offer a financial overview of Acme Insurance as it relates to the marketing activities.Acme Insurance. and how these link to the marketing strategy. Inc.
they can take the chance of self-insurance. Inc. Acme could stand to lose many if the public perceives a professional failure on our part.Acme Insurance. Acme is projecting sales to grow at 10% for the coming year and to continue into 2005. Acme knows their needs and their problems and has a local reputation to protect. they contact Acme after being told by their previous broker that.000 $60.000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Senior Citizens Lower Income Families Small Businesses Page 14 . Discounts of up to 25% for claim-free seniors who renew their home insurance with Acme. They feel that if they have installed central alarms and bars.2 Sales Forecast Acme wants to emphasize the benefit of dealing with professionals who live and work in the client's area. in many instances. If the out-of-town broker fails to provide proper cover or advice. basic insurance coverage to our clients.000 $20.000 $10. the broker doesn't want their house insurance. Monthly Sales Forecast $70.000 $30. in spite of their claim-free status. they lose one client. especially for burglary.000 $50. This theory is validated by the masse exodus of Andersen clients after the Enron scandal and during the Justice Department's investigation. Business partners provide us the opportunity to sell lower-priced. unlike an out-of-town market. Competitive pricing is not an important factor to attract business because competition is very limited for primary wood heat houses in our area. Competitive prices for our identified target markets. Many clients have expressed interest in retaining part or all of the insurance risk.000 $40. The following table and related charts show our present sales forecast. Careful inspection and the judicious use of deductibles and warranties for insureds using wood stoves should help alleviate company concerns about solid fuel heating devices. This may provide a chance to pick up all of the insured's business because. 4.
864 $632.052 $171.009 $176.354 2003 $155.Acme Insurance.684.889 $662.329 2005 $1.030 Page 15 .168 $121.097 $2.879.168 $1.475 $166.585 $167.550 $239.714 2005 $2.448 2004 $172.810 $128.107 $237.2: Sales Forecast Sales Forecast Sales Senior Citizens Lower Income Families Small Businesses Total Sales Direct Cost of Sales Senior Citizens Lower Income Families Small Businesses Subtotal Cost of Sales 2003 $222.005 $442.443 $183.306 $123.822 $463.648 2004 $246. Table 4.789 $245. Inc.255.383 $172.579.
60% 2005 $8.321 28.752 0.490 28.012 $800 $940 -----------$9.775 $800 $810 -----------$8.36% $795. There is an increase in business sales during the first quarter of the year. Inc.3: Marketing Expense Budget Marketing Expense Budget Advertisements Printed Material Public Seminars Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales 2003 $6.544 $800 $900 -----------$9.200 $1.33% $181.547 29.244 1.000 $800 Advertisements $600 $400 $200 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Printed Material Public Seminars Table 4.385 1.40% $189.Acme Insurance. 4. The marketing expenses will correspond with this sales trend.3 Expense Forecast Marketing expenses are to be budgeted so that they are higher during the parts of the year when more insurance is sold.64% Page 16 . There is an increase in sales of personal insurance during the summer months and sometimes continuing into the fall. Monthly Expense Budget $1.67% 2004 $7.
0 Controls The purpose of Acme Insurance's marketing plan is to serve as a guide for the organization.800 $2. Milestones Marketing Plan Completion Advertising Campaign #1 Advertising Campaign #2 Public Seminar #1 Public Seminar #2 Public Seminar #3 Jan Feb Mar Apr May Jun Jul Aug Sep Table 5.695 Manager John Smith John Smith John Smith John Smith John Smith John Smith Department Page 17 . 5. Customer satisfaction. It is important to accomplish each one on time and on budget. The following areas will be monitored to gauge performance: • • • • Revenue. Inc.1: Milestones Milestones Milestone Marketing Plan Completion Advertising Campaign #1 Advertising Campaign #2 Public Seminar #1 Public Seminar #2 Public Seminar #3 Totals Plan Start Date 1/1/03 2/1/03 5/1/03 3/1/03 5/1/03 7/1/03 End Date 2/1/03 4/31/2003 8/1/03 4/25/03 6/30/03 9/30/03 Budget $0 $1. New customers as a percent of overall revenue.monthly and annual.monthly and annual.1 Implementation Milestones The following milestones identify the key marketing programs.Acme Insurance. Expenses. 5.250 $225 $225 $195 $4.
Page 18 .Acme Insurance. • The constant need for the highest level of training and recruitment of employees. Worst Case Risks May Include • Growth at a rate that exceeds current revenue. • Significant market penetration of telephone/Internet based insurance brokers. • Having to liquidate equipment to cover liabilities. • Significant regulatory changes in the insurance industry.3 Contingency Planning Difficulties and Risks • Problems generating new business. John will rely on many members of the organization to achieve the marketing goals. 5. Inc. 5.2 Marketing Organization John Smith is ultimately responsible for the marketing activities.
665 $17.255 $32.921 $30.686 Sep $21.736 $21.143 $13.022 Mar $10.997 $53.130 Apr $11.454 $51.456 $17.551 Aug $14.088 $15.586 Page 1 .167 $15.445 $24.886 $59.624 Oct $23.988 Oct $16.921 $9.009 $61.099 $52.621 $15.137 $10.887 $62.366 $14.819 $12.115 Apr $16.985 $7.775 $59.766 $17.933 Jun $20.906 $42.762 May $13.698 $15.008 $14.008 $43.876 $67.640 $8.997 $21.873 Jan $12.665 $21.652 $18.Appendix: Acme Insurance.743 $41.665 $13.311 Feb $12.592 Nov $17.818 $36.820 $41.200 $11.661 Mar $15.551 Dec $10.221 $46.375 $6.913 $47.543 $17.966 $12.106 Jul $15.944 Feb $8.000 $17.869 $36.498 $37.776 $19.122 $10.936 $12.245 $11.836 $6.569 Dec $15.778 $16.667 $19.521 $43.006 $30.887 $21.554 $22.320 Sep $15.670 Nov $12.606 Jul $21.356 $13.765 $30.667 $22.774 Aug $20.166 $11.665 $16.285 $4.2 Sales Forecast Sales Forecast Sales Senior Citizens Lower Income Families Small Businesses Total Sales Direct Cost of Sales Senior Citizens Lower Income Families Small Businesses Subtotal Cost of Sales Plan Jan $17.767 $15.366 $9.887 $43.191 May $18.437 Jun $14.887 $14.343 $11. Table 4.780 $11.267 $13. Inc.412 $17.679 $9.706 $10.
708 28.36% $17.057 28.64% Oct $900 $0 $25 -----------$925 1.74% May $400 $0 $50 -----------$450 0.916 28.462 27. Table 4.100 2.740 29.52% Page 2 .16% $17.702 28. Inc.964 27.97% Aug $600 $0 $90 -----------$690 1.3 Marketing Expense Budget Marketing Expense Budget Advertisements Printed Material Public Seminars Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales Jan $600 $400 $100 -----------$1.88% Feb $450 $0 $125 -----------$575 1.02% Apr $850 $0 $125 -----------$975 2.54% $16.63% Dec $225 $0 $0 -----------$225 0.85% $15.26% $11.03% $17.46% Jul $550 $0 $80 -----------$630 1.471 28.64% Nov $200 $0 $0 -----------$200 0.84% Sep $800 $0 $50 -----------$850 1.48% $13.901 29.37% $15.14% Mar $750 $0 $100 -----------$850 1.86% $8.Appendix: Acme Insurance.846 28.98% $12.379 29.36% $19.15% Jun $450 $400 $65 -----------$915 1.175 28.12% $14.
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