self empowerment through home electricity gerneration

8/9/2019 Self Empowerment Through Home Electricity Gerneration

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SELF EMPOWERMENT THROUGH HOME ELECTRICITY GENERATION

Preamble

1. To overcome electricity crisis in Pakistan, local community (domestic users & small

businesses mostly retail) be empowered through production of electricity on their own at

their premises in the range of 500 Watts to 10,000 Watts per hour during day time (using

solar thermal) and Natural Gas/burning sources during cloudy days and a t night times.

2. The aforementioned objectives shall be accomplished through the introduction of an

indigenous electrical generation unit assembled with a Stirling Engine.

Background

3. In the wake of recent electrical crisis in Pakistan which has severally struck the

industrial and domestic sectors in the country, it is felt that there is a dire need for

empowerment of communities (domestic users) to enable them to look/tap natural

resources available in abundance and harness them for the production o f electricity.

Objectives

4. Project has following objectives:-

a. Develop 11 different prototype Stirling Engines capable of running electricalgenerator assembly given hereunder respectively:-

i. 500 Watts electrical generator assemblyii. 1000 Watts electrical generator assembly

iii. 2000 Watts electrical generator assemblyiv. 3000 Watts electrical generator assemblyv. 4000 Watts electrical generator assemblyvi. 5000 Watts electrical generator assembly

vii. 6000 Watts electrical generator assemblyviii. 7000 Watts electrical generator assembly

ix. 8000 Watts electrical generator assemblyx. 9000 Watts electrical generator assemblyxi. 10,000 Watts electrical generator assembly

b. Units described in para a supra should document all data required for theirindustrial production. Such data would include but not limited to Stirling Enginedesigns, rpm, materials data, assembly, operation, safety, over run/under run

(revolutions per minute) protection, detailed costing, assembly time and life

cycle.

Benefits and Outcome

5. As prevalent in Pakistan, it is envisaged that after first launch the product shall be

copied by competitors and launched under different brand names. This issue has serious

implications:-


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a. Help educate Pakistani market / Technical professiona/domestic consumerstowards a new (so called) technology and shift their attention to other

renewable technologies feasible for Pakistan

b. Our brand shall not become obsolete as long as we assure quality andproductivity. At-least our company can sweep the market at first launch of

the product.

Marketing Strategy

6. Target Market Our target market ranges from poor household to prosperous

Pakistanis. The ranges we plan to offer cater simultaneously for the entire market ranging

from an average household to a retailer to SMEs.

7. Advertizing The product shall be advertized in national dailies and periodicals using

print media and electronically on at-least 5 major channels for a period of 2 months.

8. Distribution The product shall be distributed through Merchant/Trade associat ionsin Lahore-Karachi-Faisalabad and Rawalpindi Islamabad and franchise offices/dealers shall

be called for upon demand. Additionally, a local warehouse shall be maintained at

companys head office to offer sales in far flung / rural areas.

9. Sales Strategy-- An internet presence shall also be maintained through a dynamic

interactive web site which shall carry online purchase facilities. Marketing shall be carried by

division/category as under:-

a. Institutional Sales; SMEs; the manufacturing sector

b. Public Institutional Sales such as Hospitals, Schools, Clinics, Clubs etc

c. Retail Sales such as Shops

d. Domestic Sales home consumer

e. Corporate Sector such as business offices

f. Internet Sales

g. Marketing through brochures using email to target customers

10. Special brochures/product fact sheets shall be developed for the above customers

and if permitted by financial position of the company a relaxed payment plan shall also be

offered for public institutional sales and discount plan for bulk sal es.

11. PricingIt is assumed that the product under question shall carry minimum cost and

beat all competitors in terms of capital cost, operational cost, maintenance

schedules/expenditures and ease of use. The product shall carry customer convenience

features as offered by use of UPS and electrical generators of the same range.


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12. Competitorsthe competitors are Electrical Generator, Suppliers/Manufacturers,

UPS Manufacturers & Suppliers, Battery Manufacturers & Suppliers.

13. Sales Volume-- It is estimated that at-least 50, 000 units shall be sold at first launch.

The estimation based on the fact that there are at-least 1,000 shops in each city which

would offer our product and if each shop buys 10 units (1 of each (50010,000 Watts) the

result is 1,000 x 4 x 10 = 40,000 units in total and 10,000 units for SMEs and public

institution sales as depicted in para 9 ante.

14. ProfitsSince this project has manifold objectives which includes education of

Pakistani markets/Technical professional/Other consumers, the profits are kept @ 10% of

net cost of the product.

Partnerships

15. Considering the utility of the project, it is advisable to collaborate with Alternate

Energy Development Board (AEDB) Pakistan in Islamabad and any Oil Marketing Company

such as Shell, Total, PSO etc and WAPDA, Government of Pakistan.

Product Development Strategy

16. The product shall be developed in four parts:-

a. 500-10,000 Watts capacity AC Alternator. This can be either

manufactured/assembled locally or imported from China or elsewhere at

most competitive prices.

b. Stirling Engine (Solar Themal / Natural Gas / Dia / Furnace Oil / Stove / Candle

etc fired) capable of producing required torque and RPM to run 500 -10,000Watts capacity alternator with over/under protection of (RPMs) and

automatic on/off switching in case of grid connectivity

c. Assembly / Integration of parts a & b supra

d. Packaging with installation/instructions manual

e. Integration of Solar Dish (for Solar Thermal) and a DC Battery are optional

and additional components which may be bought at additional cost.

Product Development Approach

17. It is suggested that a small team of following personnel be constituted to undertake

the required tasks:-

a. Project Manager

b. Mechanical Engineer

c. Electrical Engineer


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d. Electronics Engineer

e. Industrial Engineer

Project Capital Cost

18. The minimum cost is estimated @ Rs. 200,000 for the design, manufacturing,

assembly and capital purchases for the fulfillment of objectives as listed in para 4 ante. This

cost is based on voluntary services of personnel given in para 17 ante.

Project Data

19. Data regarding initial design of both AC Alternator and allied components and

designing & manufacturing of a Stirling Engine are widely available on internet and can be

used to reach a commercial design. The initial sites which can be referred to for self

education are:-

http://en.wikipedia.org/wiki/Stirling_engine

http://en.wikipedia.org/wiki/Alternator

http://www.businessballs.com/career-planner-template.htm

http://www.mindtools.com/

Time Frame

20. Provided the availability of funds 1 months time would be sufficient to materialize

the objectives in para 4 ante.

Salvage Value

21. If everything goes wrong in the plan and project is failed then the salvage value of

the equipment purchased stands at the 50% of the invested amount. Therefore, a complete

lost would still result in 50% recovery of the invested amount.

22. If Electricity crisis are over in Pakistan ( I pray that this happens overnight) still the

operational cost of our products present an advantage over Grid electricity and hence, the

market would be still there.


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CAREER/NEW BUSINESS PLANNER TEMPLATE

1. People who are successful and happy usually work at something they love.2. We rarely achieve great happiness and success working at what we dislike.3. Also, what we love doing we often do very well. In turn we love it more because we

are very good at it.

4. These inter-related 'secrets' of success are often overlooked, as many people findthemselves doing work which they dislike, or even starting a business which they will

not enjoy.

Often through necessity our work is

not our ideal choice, but there are

many times when we can choose a

new direction, or maybe start a new

part-time venture while keeping the

'day-job'. Through life we have more

opportunity to choose a new or

additional direction than we might

realise. Sticking to habits or the

expectations of others can prevent

discovering greater success and

fulfilment.

If you want to make a change, consider

this model.

enjoyment,

passion, natural

inclination, and

love of something

effort,

determination,

practice,

knowledge, and

experience

reward,

satisfaction,

independence,

and free choice

expertise,

quality,

reputation, value,

and efficiency

Being good at something enables high quality results to be produced for customers - in a

way that competitors have trouble beating. When we excel and work hard at something we

inevitably become better at it. We develop expertise and specialisms. We innovate andcreate. Making constant improvements in work or business happens much easier when we

enjoy and love what we do.

This effect enables many people to build successful businesses around their hobbies or

passions. If you build a career or new business plans around a personal passion, or an

activity or interest that you love, you will tend automatically to harness several vital

elements for success:

1. you will work very hard and be determined and persistent2. you will constantly improve your skills and knowledge, which will improve your

product/service quality

3. you will have a smile on your face, and your enthusiasm will transfer to staff,customers, suppliers, supporters, etc

4. you will quickly build a strong reputation - especially for reliability and quality5. you will treat mistakes and failures as lessons learned and challenges to be met -

instead of obstacles and problems

6. you will keep up to date with trends, and you will increasingly lead new trends


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7. you will build competitive advantage - especially in quality, customer service andvalue

8. you will be efficient and so make profits easier9. you will be happy in your work - which helps sustain success and life-balance

These principles underpin the processes and template below.

Process and Template Purpose

These process and template methods are designed to help identify, plan and achieve a

career or business, for example:

1. starting a career, after school or college2. career new direction and/or change3. new business start-up4. buying a business or franchise5. starting a part-time business or second job6. or becoming self-employed or freelance

The tool and process are for people facing or seeking a career change, especially a move

into self-employment or starting up their own new business. Redundancy, for example, or

losing a job for other reasons, is a difficult experience, yet can offer a great chance to find a

new and better direction.

The materials and methods can also be used with groups of people seeking career change,

direction, or help with planning self -employment or new business start-up. The ideas couldbe helpful to you if you've googled search terms such as:

1. career planner2. find my ideal business3. career plans template4. find the right job for me5. find my ideal career6. decide my career7. what's my my ideal job?8. decide a new business direction9. business start-up process tips10. achieve success and happiness11. be happy in my work12. start a new (whatever) business - the 'whatever' being your passion13. be my own boss


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14. fresh start after redundancyPassion to Profit Planner

The exercise is not a substitute for conventional 'outplacement' counselling and training

support, or for new business planning.

It's an additional (quick and early) planning tool - perhaps to open more possibilities - which

for some people is helpful beyond traditional career advice, or complex business plans, since

it focuses on making the most of your own passions and strengths, rather than being

influenced by the job market or other market pressures.

The process also enables more creative ideas and possibilities than are normally encouraged

in traditional business planning.

Here is a quick simple outline of the process and template:

1 2 3

4 5 6

your

passion

or

passions

+ your

strengths

and your

preferred

working

style

+ some

research

+ shape it all

into

something

that people

want

+ time to

grow

and

develop

= your new

career or

business, your

independence

and security

Here is the process explanation in more detail.

New Career/Business Planner - Basic Principles

1. You will be successful and happy at work if your work is built on your own strengthsand passions.

2. Successful self-employment or freelance work is ideally based on your own personalstrengths and passions too.

3. So too would a successful new start -up businesses, if that's what you'd like to do.4. On the other hand, conventional miserable employment tends to be built on

received or inherited or conditioned ideas of what work should be: the need to get a

job, any job; the obligation to pursue aspirations of parents or other authority

figures; the reluctance to or fear of change; and habits of lifestyle, social circles,

spending patterns, etc., which constrain personal free dom and thinking.

5. Employment is traditionally considered (and advocated by parents and teachers, etc)to be safer and more secure than self-employment and running your own business.

Usually it's not, especially today. Being in control of your own work as a supplier or

freelancer, or running your own business, is commonly the most reliable way to earn

a living and build financial security and confidence.


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6. Whether you pursue your career through employment or self-employment or bystarting your own business, the vital change is to see yourself as - and act like - a

supplier, fulfilling a function which makes use of your passion(s) and strength(s).

This process seeks to:

1. Suggest a more satisfying idea of what work is and can be.2. Reduce or eliminate dependence upon an employer for work and financial security.3. Offer a path - in achievable stages - away from miserable unsatisfying employment,

especially if required due to redundancy or an unacceptable work situation (stress,

travel, life-balance, or the simple need to be happier, etc).

4. Encourage and enable self-determination, self-reliance, and independence.For the purposes of this exercise, 'passions' are the things you love and enjoy, and typically

that you are naturally good at too. 'Strengths' are your working and thinking styles - for

example whether you are good with people or not; whether you are good with numbers, or

machines, or processes; whether you are a logical or an intuitive thinker, etc. You will know

your passions. The Multiple Intelligences Self-Test and the VAK Self-Test can help to confirm

your natural strengths and preferred thinking and working styles. There is some overlap

between passions and strengths, but essentially passions will tend to suggest what you can

do and offer, whereas strengths tend to suggest how you will provide whatever offering you

develop.

Experience, knowledge, skills and attitude can feature in, and for many people contribute

to, both passions and strengths, but for the purposes of this exercise are best considered

within strengths.

My personal situation provides an example of how a passion and strength can combine tocreate more meaningful work and a new business. One of my own passions is personal

development. One of my strengths is writing. The combination of these two enabled me to

develop this website. I am a better writer than a face-to-face trainer (although it took me a

while to realise it). I know now that I can make very effective use of my passion by

channelling it through written delivery. The internet offered a way to turn this into a new

business. I'm not a web designer or programmer, but the combination of a passion and a

strength proved powerful enough for me to overcome the technical challenges. This sort of

approach is possible for anyone: combine a passion with a strength, and amazing things can

happen. I've seen it in very many people and the formula always s eems to be similar.

Here's a different hypothetical example:

You might be stuck in work you hate. You might have a passion for working with animals.

You have strengths in working with people and organising and scheduling. Just a little

research will confirm the enormous potential for all products and services related to

animals. With some creative open-minded thinking, and adding in your other passions and

strengths (all you are good at and love and enjoy - plus relevant experience, knowledge,

skills and attitude), many possibilities for a new business or freelance service - working with

animals and related products services - will begin to emerge. If you commit your time to

develop and allow these ideas to grow (which is the essence of turning ideas or dre ams into


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reality), then real choice and change inevitably follow, and an exciting new business if you

want.

Passion to Profit Template

Action ownnotes,

aims and

commit-

ments*

Guidance Notes

1. List your

passions. In no

particular order

or structure -

passions are

what you love

and enjoy, andwill tend to be

things that you

are good at.

Everyone loves and is very good at something, and generally

two or three things. Keep an open mind when you consider

your own passions. It is possible to make a new career or

business out of anything. Passions are not necessarily

related to conventional work and how we imagine work to

be, and yet every passion can be a career or a new business.

A hobby is often a passion. A yearning or feeling drawn to anatural capability is often a passion. Get feedback from

positive friends about your own passions, especially if your

confidence is at a low ebb. Everyone is fantasticat

something, or potentially so. A passion (or combination of

more than one passion) is the root of a truly successful new

venture - be it a career change, becoming freelance, or

starting a new business.

2. List your

strengths.

Strengths areyour preferred

working styles,

including the way

you prefer to

connect with

people.

Measure your Multiple Intelligences and your VAK style, to

see your basic strengths and working style preferences (e.g.,

inter-personal, or numerical, or words and language) whichwill indicate your most natural and effective type of work

and ways you can do and provide the work. Get feedback

from positive friends, especially if your confidence is at a

low ebb.

You experience (including hard knocks and tough times),

your knowledge, skills and attitudinal strengths are all part

of your strengths

3. Combine your

of passion(s) and

strengths. Look

for combinations

which could work

together to

produce an

offering that

people want or

need, in a way

that you can

provide it

Mix and match your passions and strengths to create

combinations which would work together as products or

services, or a special expertise which others might need.

Brainstorming is very useful for this stage of the process.

Allow possibilities time and space to emerge. Do not let

finance be an obstacle. It is possible to start most things on

a small experimental scale with very little money. Time and

commitment are far more important than financial

investment. If there are some missing pieces (for example a

qualification or vital bit of knowledge or training) use the

goal planner. Use the goal planner anyway if you like to see

organised elements and a timeline. Project management


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enjoyably. methods are helpful for people who prefer a structured or

strongly planned approach. Other people prefer to work

more intuitively, which is fine. You probably will not be able

to decide and confirm exactly what you will be doing, and

for whom and how, at this stage. Aim simply to come up

with a shape of a new direction or offering, or set of ideasthat excite you.

4. Research -

investigate the

potential for your

ideas and

possibilities

above. Consider

the best 'route to

market' as well

as the demand

and values

aspects. 'Route

to market'

includes in this

context whether

your offering is

best provided via

an employed

position, or as a

freelancer, or via

a shop or office,

or via the web, orother method of

delivering what

you have to

offer, to the

people who want

it.

Ask friends. Look on the web for existing similar offerings,

and for demand. Begin to imagine how a product or service

could be provided and within what sort of business or

financial model - basically how you'd monetise the provision

- make money from it - which can be done in very many

different ways. This process is just as useful for career

change for employed work, as it is for breaking out as a

freelancer or starting your own business. Crucially your

research must give you confidence that the basic financials

are viable: that there is demand for what you will be doing

or providing; that the costs of provision do not exceed the

price that people will pay or the revenues which can be

generated from the activity. Be creative about the ways that

revenue can be created. This website, for example gives

everything away free, but due to its high traffic levels

produces revenues via advertising, which is an effective

financial model for many web businesses. Freelancing with

several clients is often a much better way to derive income

from a specialised personal offering than conventional

employment. Some consumer offerings are better supplied

via mail order, or door-to-door; other ideas are better suitedto a shop, or a rented office. This is all part of the research:

exploring and considering the best ways to deliver your

offering. And remember that even if you stay within the

world of employed work, you will work more enjoyably and

profitably if you think and act like a supplier. The most

successful employees behave like a business.

5. Time to grow

and develop.

Consider and

decide howquickly you need

to implement

your plans.

Any worthwhile change usually takes time. Even if you have

a lot of money to invest in a new business start-up, or some

working capital to get you started in self-employment of

some sort, time is crucial for refining and developing youroffering, and for establishing yourself. That's why is useful

to start now. A substantial new business can be built in five

years easily. Google had achieved world dominance in ten.

Self-employment takes two years to get properly

established. A shop can open in a matter of days, but it

takes many months to become established, no matter how

much money is spent on advertising. This website took ten

years to build. But it cost me nothing - just time. Think how

you will feel if you are still in a job you hate in five years.


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* Expand the second column width - wide enough for your own notes. Make your notes

action-based, with purpose, clear measurable aims, and timescales where helpful. Refer to

or use the goal-planning process and tool if it helps you. Give yourself aims that are

achievable steps. Refer to the delegation methods and SMART planner tool - you are

effectively your boss, delegating tasks to yoursel f.

Group Activities Using this Template

1. This process and template can be used with groups of people who seek help inidentifying new career or business direction and ideas.

2. The way you run group activities is crucial for their effectiveness.3. Read the tips for planning and running team building activities.4. Also helpful are the tips on planning and running workshops.5. Ensure that team-building activities comply with equality policy and law in respect of

gender, race, disability, age, etc.

6. Team-building games and activities have to agreeable and acceptable to groupmembers, and the exercises have to be fair.

You can use this process and template with groups to help with any of the following:

1. finding more enjoyable personal or career direction2. finding satisfaction and personal fulfilment in work3. identifying and developing a move into self -employment4. early planning and visualisation for new business start-up5. exploring opportunities for changing an existing business6. outplacement and redundancy support7. seeking self-determination and independence

Summary

1. Whether you want to start your own business, become self -employed, freelance, orprefer to be employed, the principles within this process still apply.

2. Think of yourself as a company, whether you work for yourself or for someone else.3. Be your own boss - give yourself opportunities, aims, a vision, and plan the steps to

achieve what you want.

4. Making a lot of money is not always the main aim of people seeking a new career orto start a new business. Many people who start their own businesses or become self -

employed want choice and independence - to be on control of their own decisions

and future.

5. For many people, profit, and sometimes substantial reward, are the natural resultsof working hard doing something they love.

STARTING YOUR OWN BUSINESS - OR STARTING ANY NEW BUSINESS

1. These are the simple rules for planning and starting your own business. Theprinciples also apply to planning and starting a new business within an organisation

for someone else.


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2. In amongst the distractions and details of new business planning, it is important tokeep sight of the basic rules of new business success:

3. Your successful new business must offer something unique that people want.4. Uniqueness is vital because otherwise there is no reason for customers to buy from

you.

5. Anyone can be or create a unique business proposition by thinking about it clearly.6. Uniqueness comes in all shapes and sizes - it's chiefly being especially good and

different in a particular area, or field or sector.

7. Uniqueness can be in a product or service, or in a trading method, or in you yourself,or any other aspect of your business which makes what you are offering special and

appealing to people.

8. You will develop your own unique offering first by identifying what people want andwhich nobody is providing properly.

9. Second you must ensure that your chosen unique offering is also an extension ofyour own passion or particular expertise or strength - something you will love and

enjoy being the best at - whatever it is.

10.Every successful business is built on someone's passion.NEW BUSINESS START-UPS BY OLDER PEOPLE

1. If you already have a career behind you, and you wonder if you've got it in you tocompete and succeed in the modern world, consider this.

2. First - you have definitely got it in you to succeed.3. Experience and wisdom are fundamental building blocks of success, and will be for

you from the moment you start looking at yourself in this way.

4. The reassuring wisdom that older people generally possess is extremely helpful informing trusting relationships - with customers, suppliers, partners, colleagues, etc -

which are essential for good business.

5. Added to this, as we get older we have a greater understanding of our true passionsand capabilities; we know our strengths and styles and tolerances. This gives older

people a very special potency in business. Older people know what they are goo d at.

They play to their strengths. They know which battles they can win, and which to

avoid.

6. Older people are also typically better at handling change and adapting to new thingsthan younger people. This is because older people have had more experience do ing

just this. Adapting to change and working around things are significant capabilities in

achieving new business success.

7. If you are an older person considering starting a new business, think about the thingsyou can do better than most other people - think about your strengths and use

them.

BUSINESS START-UPS FOR YOUNGER PEOPLE

1. Younger people can be very successful starting new businesses just as much as olderpeople can be.

2. The essential principle of playing to your strengths applies, although the impli cationsare different for younger people compared to older people.

3. Younger people are likely to have lots of fresh ideas. This is an advantage, so avoidpeople pour cold water on them.


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4. Test your ideas on potential customers, rather than to take advice from those peoplewho are ready with their buckets of water.

5. Next, get the help you need. It's difficult for young people to know all the answers.6. You'll have the ideas and the energy to make things happen, but consider the gaps in

your experience, and the things you don't enjoy doing, and seek good quality reliable

help for these things.

7. Getting good help at what you can't do or don't want to do will enable you to put allyour energy into what you are good at and what you want to spend your time doing.

8. Young people sometimes try to force themselves to fit into roles or responsibilitiesthat are not comfortable or natural. This is de-stabilising and stressful. Learn what

you love and excel at, and focus on building success from this.

9. Which brings us back to pla ying to your strengths.10.All successful businesses (and people who become successful working for others) are

based on the person using personal strengths and pursuing personal passions.

11.Success in business is always based on doing something you love and enj oy, which isfundamentally related to your natural strengths and unique personal potential,

whatever that is.

12.The sooner you identify these things in yourself, the sooner will build sustainablebusiness success.

PLANNING BUSINESS SUCCESS - IN SUMMARY

1. The spreadsheets, mission statements and other elements of new business planingare tools. They enable the business to be properly structured, started and run. They

are essential of course, but in themselves they don't determine success.

2. What determines real business success, is that you bring together the crucial factorsof uniqueness and passion.

3. Uniqueness, so that people will want what you offer.4. Passion, so that you will enjoy being and offering your best - as whatever business

you choose.


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ESSENTIAL ELEMENTS OF A MARKETING

1. Elements of a Marketing Programa. Image

i. Unique Selling Proposition (USP)b. Marketing Strategy

i. Product Features, Benefits and Appealsii. Positioning

iii. Pricingiv. Distribution channelsv. Communications strategies

c. Launch Strategiesi. Launch plans

1. Public Relations strategy and execution2. Advertising strategy and execution3. Other promotion

a. Direct marketingb. Third-party marketing, managing referralsc. Other promotional programs

d. Creation of Promotional Packagee. Dissemination of Information

2. Implementationa. Structureb. Refining the messagec. Creating and maintaining relationshipsd. Will it work?e. Success metricsf. Goals, year oneg. Goals, years 2-5h. Outcome measurementsi. Requirements for success

3. Proposals with Budget 4. Appendix: Justification

Underlying Assumptions References


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Detailed plans and programs

A plan should be:-

y Clear - They should be an unambiguous statement of 'exactly' what is to be done.y Quantified - The predicted outcome of each activity should be, as far as possible,

quantified, so that its performa nce can be monitored.

y Focused - The temptation to proliferate activities beyond the numbers which can berealistically controlled should be avoided. The 80:20 Rule applies in this context too.

y Realistic - They should be achievable.y Agreed - Those who are to implement them should be committed to them, and

agree that they are achievable. The resulting plans should become a working

document which will guide the campaigns taking place throughout the organization

over the period of the plan. If the marketing plan is to work, every exception to it

(throughout the year) must be questioned; and the lessons learned, to be

incorporated in the next year's planning.

Content of the marketing plan

A marketing plan for a small business typically includes Small Business Administration

Description of competitors, including the level of demand for the product or service and the

strengths and weaknesses of competitors

1. Description of the product or service, including special features2. Marketing budget, including the advertising and promotional plan3. Description of the business location, including advantages and disadvantages for

marketing

4. Pricing strategy5. Market Segmentation

Medium-sized and large organizations

The main contents of a marketing plan are:[4]

1. Executive Summary2. Situational Analysis3. Opportunities / Issue Analysis - SWOT Analysis4. Objectives5. Strategy6. Action Program (the operational marketing plan itself for the period under review)7. Financial Forecast8. Controls

In detail, a complete marketing plan typically includes:[4]

1. Title page2. Executive Summary3. Current Situation - Macroenvironment[5]

o economy


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o legalo governmento technologyo ecologicalo socioculturalo supply chain

4. Current Situation - Market Analysiso market definitiono market sizeo market segmentationo industry structure and strategic groupingso Porter 5 forces analysiso competition and market shareo competitors' strengths and weaknesseso market trends

5. Current Situation - Consumer Analysis [6]o nature of the buying decisiono participantso demographicso psychographicso buyer motivation and expectationso loyalty segments

6. Current Situation - Internalo company resources

financial people time skills

o objectives mission statement and vision statement corporate objectives financial objective marketing objectives long term objectives description of the basic business philosophy

o corporate culture7. Summary of Situation Analysis

o external threatso external opportunitieso internal strengthso internal weaknesseso Critical success factors in the industryo our sustainable competitive advantage

8. Marketing researcho information requirementso research methodologyo research results

9. Marketing Strategy - Product[7]o product mix


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o product strengths and weaknesses perceptual mapping

o product life cycle management and new product developmento Brand name, brand image, and brand equityo the augmented producto product portfolio analysis

B.C.G. Analysis contribution margin analysis G.E. Multi Factoral analysis Quality Function Deployment

10.Marketing Strategy [8][9] - segmented marketing actions and market share objectiveso by product,o by customer segment,o by geographical market,o by distribution channel.

11.Marketing Strategy - Priceo pricing objectiveso pricing method (eg.: cost plus, demand based, or competitor indexing)o pricing strategy (eg.: skimming, or penetration)o discounts and allowanceso price elasticity and customer sensitivityo price zoningo break even analysis at various prices

12.Marketing Strategy - promotiono promotional goalso promotional mixo advertising reach, frequency, flights, theme, and mediao sales force requirements, techniques, and managemento sales promotiono publicity and public relationso electronic promotion (eg.: Web, or telephone)o word of mouth marketing (buzz)o viral marketing

13.Marketing Strategy - Distributiono geographical coverageo distribution channelso physical distribution and logisticso electronic distribution

14.Implementationo personnel requirements

assign responsibilities give incentives training on selling methods

o financial requirementso management information systems requirementso month-by-month agenda

PERT or critical path analysiso monitoring results and benchmarkso adjustment mechanism


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o contingencies (What if's)15.Financial Summary

o assumptionso pro-forma monthly income statemento contribution margin analysiso breakeven analysiso Monte Carlo methodo ISI: Internet Strategic Intelligence

16.Scenarioso Prediction of Future Scenarioso Plan of Action for each Scenario

17.Appendixo pictures and specifications of the new producto results from research already completed

Measurement of progress

The final stage of any marketing planning process is to establish targets (or standards) so

that progress can be monitored. Accordingly, it is important to put both quantities and

timescales into the marketing objectives (for example, to capture 20 percent by value of the

market within two years) and into the corresponding strategi es.

Changes in the environment mean that the forecasts often have to be changed. Along with

these, the related plans may well also need to be changed. Continuous monitoring of

performance, against predetermined targets, represents a most important aspect of this.

However, perhaps even more important is the enforced discipline of a regular formal

review. Again, as with forecasts, in many cases the best (most realistic) planning cycle will

revolve around a quarterly review. Best of all, at least in terms of t he quantifiable aspects of

the plans, if not the wealth of backing detail, is probably a quarterly rolling review - planningone full year ahead each new quarter. Of course, this does absorb more planning resource;

but it also ensures that the plans embody the latest information, and - with attention

focused on them so regularly - forces both the plans and their implementation to be

realistic.

Plans only have validity if they are actually used to control the progress of a company: their

success lies in their implementation, not in the writing'.

Performance analysis

The most important elements of marketing performance, which are normally tracked, are:

Sales analysis

Most organizations track their sales results; or, in non-profit organizations for example, the

number of clients. The more sophisticated track them in terms of 'sales variance' - the

deviation from the target figures - which allows a more immediate picture of deviations to

become evident.


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`Micro-analysis', which is a nicely pseudo-scientific term for the normal management

process of investigating detailed problems, then investigates the individual elements

(individual products, sales territories, customers and so on) which are failing to meet

targets.

Market share analysis

Few organizations track market share though it is often an important metric. Though

absolute sales might grow in an expanding market, a firm's share of the market can

decrease which bodes ill for future sales when the market starts to drop. Where such

market share is tracked, there may be a number of aspects which will be followed:

y overall market sharey segment share - that in the specific, targeted segmenty relative share -in relation to the market leadersy annual fluctuation rate of market share

Expense analysis

The key ratio to watch in this area is usually the `marketing expense to sales ratio'; although

this may be broken down into other elements (advertising to sales, sales administration to

sales, and so on).

Financial analysis

The "bottom line" of marketing activities should at least in theory, be the net profit (for all

except non-profit organizations, where the comparable emphasis may be on remaining

within budgeted costs). There are a number of separate performance figures and key ratios

which need to be tracked:

y gross contributionnet profity gross profitreturn on investmenty net contribution profit on sales

There can be considerable benefit in comparing these figures with those achieved by other

organizations (especially those in the same industry); using, for instance, the figures which

can be obtained (in the UK) from `The Centre for Interfirm Comparison'. The most

sophisticated use of this approach, however, is typically by those making use of PIMS (Profit

Impact of Management Strategies), initiated by the General Electric Company and then

developed by Harvard Business School, but now run by the Strategic Planning Institute .

The above performance analyses concentrate on the quantitative measures which are

directly related to short-term performance. But there are a number of indirect measures,

essentially tracking customer attitudes, which can also indicate the organization's

performance in terms of its longer-term marketing strengths and may accordingly be even

more important indicators. Some useful measures are:

y market research - including customer panels (which are used to track changes overtime)


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y lost business - the orders which were lost because, for example, the stock was notavailable or the product did not meet the customer's exact requirements

y customer complaints - how many customers complain about the products orservices, or the organization itself, and about what

Use of marketing plans

A formal, written marketing plan is essential; in that it provides an unambiguous reference

point for activities throughout the planning period. However, perhaps the most important

benefit of these plans is the planning process itself. This typically offers a unique

opportunity, a forum, for information-rich and productively focused discussions between

the various managers involved. The plan, together with the associated discussions, then

provides an agreed context for their subsequent management activities, even for those not

described in the plan itself.

Budgets as managerial tools

The classic quantification of a marketing plan appears in the form of budgets. Because theseare so rigorously quantified, they are particularly important. They should, thus, represent an

unequivocal projection of actions and expected results. What is more, they should be

capable of being monitored accurately; and, indeed, performance against budget is the

main (regular) management review process.

The purpose of a marketing budget is, thus, to pull together all the revenues and costs

involved in marketing into one comprehensive document. It is a managerial tool that

balances what is needed to be spent against what can be afforded, and helps make choices

about priorities. It is then used in monitoring performance in practice.

The marketing budget is usually the most powerful tool by which you think through therelationship between desired results and available means. Its starting point should be the

marketing strategies and plans, which have already been formulated in the marketing plan

itself; although, in practice, the two will run in parallel and will interact. At the very least,

the rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic

elements of the plans

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