Providing superior quality of products and services to the customers renders organizational image and reputation. In order to make a long-term business plan the executives have to always make effective marketing strategies, communication strategies or promotional methods with the help of which brand can be endorsed in the market to make its own identity. Wonder Hiking Shoes has established their business process in the market of Australia in quest of fulfilling the satisfaction level of those people who loves trekking, sports and so on. In case of outdoor walking activities, Hiking Shoes play an important role by converging the entire feet even until ankle. Wonder Hiking Shoes have rendered full grain leather for maintaining their durability. The boots consist of lightweight with the help of which users can easily travel for a long.
In this very specific study, the primary concern is to make an effective communication strategy, advertising plan proper media plan so that the business experts can easily create brand awareness in the market of Australia. The study has made a proper estimated skeleton budget, which evaluates profit and loss of the company in a proper way. The cash flow analysis is even been evaluated in this very specific study.
Wonder Hiking Shoes while making their effective business plan needs to focus on five years of marketing budget with the help of which the marketing executives can analyze their profit and loss in next five months.
|
Year-by-year profit and loss assumptions |
|||||
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Annual cumulative price (revenue) increase |
– |
2.00% |
4.00% |
6.00% |
8.00% |
|
Annual cumulative inflation (expense) increase |
– |
2.00% |
4.00% |
6.00% |
8.00% |
|
Interest rate on ending cash balance |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Gross revenue |
$80,000 |
$81,600 |
$84,864 |
$89,956 |
$97,152 |
|
Cost of goods sold |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Gross margin |
$80,000 |
$81,600 |
$84,864 |
$89,956 |
$97,152 |
|
Other revenue [source] |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Interest income |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Total revenue |
$80,000 |
$81,600 |
$84,864 |
$89,956 |
$97,152 |
|
Operating expenses |
|
|
|
|
|
|
Sales and marketing |
$6,000 |
$6,120 |
$6,365 |
$6,747 |
$7,286 |
|
Payroll and payroll taxes |
$50,000 |
$51,000 |
$53,040 |
$56,222 |
$60,720 |
|
Depreciation |
$27,900 |
$28,458 |
$29,016 |
$29,574 |
$30,132 |
|
Maintenance, repair, and overhaul |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Total operating expenses |
$83,900 |
$85,578 |
$88,421 |
$92,543 |
$98,139 |
|
Operating income |
($3,900) |
($3,978) |
($3,557) |
($2,587) |
($986) |
|
Interest expense on long-term debt |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Operating income before other items |
($3,900) |
($3,978) |
($3,557) |
($2,587) |
($986) |
|
Loss (gain) on sale of assets |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Other unusual expenses (income) |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Earnings before taxes |
($3,900) |
($3,978) |
($3,557) |
($2,587) |
($986) |
|
Taxes on income |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Total liabilities |
$160,000 |
$65,000 |
$65,000 |
$65,000 |
$65,000 |
$65,000 |
|
|
Initial balance |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Owner’s equity (common) |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
|
Paid-in capital |
0 |
0 |
0 |
0 |
0 |
0 |
|
Preferred equity |
0 |
0 |
0 |
0 |
0 |
0 |
|
Retained earnings |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total equity |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
$50,000 |
|
Total liabilities and equity |
$210,000 |
$115,000 |
$115,000 |
$115,000 |
$115,000 |
$115,000 |
Cash flow statement is one of the most significant financial statements with the help of which the business experts can show on how changes in balance sheet accounts and income affect cash and cash equivalents.
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Total |
|
Operating activities |
|
|
|
|
|
|
|
Net income |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Depreciation |
$27,900 |
$28,458 |
$29,016 |
$29,574 |
$30,132 |
$145,080 |
|
Accounts receivable |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Inventories |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Accounts payable |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Amortization |
5,000 |
5,000 |
$5,000 |
$5,000 |
$5,000 |
$25,000 |
|
Other liabilities |
25,000 |
25,000 |
$25,000 |
$25,000 |
$25,000 |
$125,000 |
|
Other operating cash flow items |
0 |
0 |
$0 |
$0 |
$0 |
$0 |
|
Total operating activities |
$57,900 |
$58,458 |
$59,016 |
$59,574 |
$60,132 |
$295,080 |
|
Investing activities |
|
|
|
|
|
$0 |
|
Capital expenditures |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Acquisition of business |
15,000 |
15,000 |
15,000 |
15,000 |
15,000 |
$75,000 |
|
Sale of fixed assets |
$10,000 |
$10,000 |
$10,000 |
$10,000 |
$10,000 |
$50,000 |
|
Other investing cash flow items |
0 |
0 |
0 |
0 |
0 |
$0 |
|
Total investing activities |
$25,000 |
$25,000 |
$25,000 |
$25,000 |
$25,000 |
$125,000 |
|
Financing activities |
|
|
|
|
|
|
|
Long-term debt/financing |
($95,000) |
$0 |
$0 |
$0 |
$0 |
($95,000) |
|
Preferred stock |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total cash dividends paid |
5,000 |
5,000 |
5,000 |
5,000 |
5,000 |
25,000 |
|
Common stock |
0 |
0 |
0 |
0 |
0 |
0 |
|
Other financing cash flow items |
5,000 |
5,000 |
5,000 |
5,000 |
5,000 |
25,000 |
|
Total financing activities |
($85,000) |
$10,000 |
$10,000 |
$10,000 |
$10,000 |
($45,000) |
|
Cumulative cash flow |
($2,100) |
$93,458 |
$94,016 |
$94,574 |
$95,132 |
$375,080 |
|
Beginning cash balance |
$0 |
($2,100) |
$91,358 |
$185,374 |
$279,948 |
|
|
Ending cash balance |
($2,100) |
$91,358 |
$185,374 |
$279,948 |
$375,080 |
|
This particular breakeven point has represented the sales amount in terms of either unit or quantity.
|
|
Fixed Expenses |
|
Fixed Expenses |
|
|
Bldgs / Real Estate |
$ 50,500 |
|
Leasehold Improvements |
22,000 |
|
Capital Equipment |
67,000 |
|
Location / Admin Expenses |
76,000 |
|
Opening Inventory |
– |
|
Advertising / Promo Expenses |
6,000 |
|
Other Expenses |
50,000 |
|
Total Fixed Expenses |
$ 271,500 |
|
|
Variable Expenses |
|
Inventory or Materials |
0.0 |
|
Direct labor (includes payroll taxes) |
0.0 |
|
Other expenses |
0.0 |
|
Other expenses |
0.0 |
|
Salaries (includes payroll taxes) |
0.0 |
|
Supplies |
0.0 |
|
Total Variable Expenses |
0% |
|
Breakeven Sales level = |
271500 |
Two types of communication strategy Wonder Hiking Shoes has decided to follow for creating a market in Australia. Direct communication strategy and social media communication are the two major ways of with the help of Wonder Hiking Shoes have grabbed the attention of customers. In direct communication, the event management team of this organization has visited various shopping malls of Australia to make the people aware about their brands. They have provided some samples as well. With the help of these samples, the customers could get an in-depth overview about the brands and its quality. In direct communication strategy the business experts were receiving immense feedback from the customers instantly which left a major impact in marketing strategies and policies.
It is however undeniable that, Wonder Hiking Shoes has primarily targeted those customers who are from young generation. Therefore, social media platform is primarily targeted. In social media platform, the customers are from various cultural backgrounds and attitudes. The business experts can gather ample opinion from numerous people from different psychological perspectives. In this kind of situation, this very specific study has focused to make detailed overview on how social media presence of a brand can create grand awareness about a brand and its products.
Wonder Hiking Shoes has made their presence in Facebook, Instsgram, Youtube and so many as a result people belonging to other geographic areas can also grab the attention of people. In addition, people can get a scope to present their own opinion through social media. As a result, the business experts can get the scope to give them a direct feedback and communicate with them regarding the brand. Automatically, the rapport between the service providers and the service users become very much effective.
Online display advertising is the primary advertising strategy that Wonder Hiking Shoes follows. With the help of an effective display advertisement, the people from different educational and psychological backgrounds and attitudes can easily draw their attention. In addition, display advertisement is very much colorful and attractive that can easily grab customers’ attention. With the help of an effective display advertisement, the people having lower education level can easily get to know about the product components. As a result, Wonder Hiking Shoes does not have to face challenges in increasing the number of target customers.
In addition, word of mount is another form of business strategy that Wonder Hiking Shoes has implemented within their business. It is however undeniable that social media advertisement is one of the most effective platforms, which can easily grab the attention of large number of people. People who are viewing social media can easily convey the message of Wonder Hiking Shoes through their word of mouth. As a result, the business experts do not have to invest additional cost behind this particular advertising tool. Therefore, this kind of creative strategy is both beneficial for service providers and service users.
|
Full grain leather Wonder Hiking Shoes High Durability along with lightweight capacity Flexible Outdoor Activities Superior Quality |
The primary objectives of making an effective media planning are as follows:
Media plan generally tends to select the right platform of media vehicles with the help of which the brands and products will be introduced to the market. While introducing the brand of Wonder Hiking Shoes, the business experts have focused both traditional media platform as well as social media platform. In traditional media platform, the business experts have chosen television, magazine and hoardings. While making an effective media plan the business experts have to follow several structures, which are as follows:
Among most of the effective promotional strategies, the business experts have to focus on three major ways, which are as follows:
Both traditional media as well as social media is chosen as one of the most effective ways of product promotion for Wonder Hiking Shoes. With the help of an effective traditional media promotion, the marketing executives can draw the attention of those customers who belong to any age group. On the other hand, young generations are primarily inclined towards social media platform. In addition, social media is also beneficial for attracting the people of international market.
After selling the products the business experts tend to make an effective survey to gather feedback of the customers. Another form of promotion can get direct feedback of the customers. As a result, the business experts can get overview whether the marketing executives need to change their promotional method or not.
The customers who have appreciated the product quality as well as service the business experts have decided to involve those customers and make a mega event. However, this very specific study has evaluated those customer appreciation events conducted by Customer appreciation events is very much effective for influencing the purchasing behavior of customers. However, word of mouth is one more reliable for influencing the customers rather than direct promotion.
Promotional budget plan is required with the help of which the market executives tends to select the promotional channels
|
Promotion Tools |
Amount |
|
|
(in AUD$) |
|
Digital Media Marketing Tools |
|
|
|
AUD$4,000 |
|
|
AUD$5,000 |
|
Youtube |
AUD$7,500 |
|
Total Social Media Marketing expenses |
AUD$16,500 |
|
Other Online Marketing Media |
|
|
E-mail Marketing |
AUD$25,000 |
|
Online Display advertisements |
AUD$10,000 |
|
Other Online promotional Campaigns |
AUD$29,000 |
|
Total Budget for Online Media |
AUD$64,000 |
|
Traditional Marketing Media |
|
|
Newspapers |
AUD$10,000 |
|
Magazines |
AUD$30,000 |
|
Total Print Media |
AUD$40,000 |
|
TV Channels |
AUD$75,000 |
|
Billboards |
AUD$30,000 |
|
Total |
AUD$105,000 |
|
Total Required Budget for Promotion |
AUD$225,500 |
Based on the current promotional plan the business experts have to make an effective evaluation plan so that they can improve their marketing strategies. It has been observed that while introducing the brand of Wonder Hiking Shoes, the business experts have focused both traditional media platform as well as social media platform. The inhabitants of Australia are very much advanced in technology. The company needs to arrange training and development session. With the help of an effective training session, employees can operate advanced technology and give feedback to the customers immediately. With the advancement of technology, the business experts tend to upload their new products and services through social media. The business experts of Wonder Hiking Shoes have made their marketing campaign in a way of people of various cultural and language background can understand their messages. In addition, the marketing executives have rendered multilingual competency. With the help of effective multilingual competency the business experts can draw the attention of people belonging to various cultural and psychological backgrounds. Based on the current market plan an effective evaluation plan is made which is as follows:
|
Evaluation plan |
Activities |
|
Employees need to improve their skills in technology |
Large number of employees are there working in Wonder Hiking Shoes who are not very much advanced in technology. The company needs to arrange training and development session. With the help of an effective training session employees can operate advanced technology and give feedback to the customers immediately. |
|
The organization needs to render product diversity |
Wonder Hiking Shoes is very much classical in their products. The business experts need to render diversified products so that global customers get attracted. |
|
The price range needs to be more flexible for grabbing the attention of large number of customers |
The price range of Wonder Hiking Shoes should be more flexible for grabbing the attention of large number of customers. High cost price cannot attract those people who belong to average income status. |
It has however been observed that with the help of an effective traditional media promotion, the marketing executives can draw the attention of those customers who belong to any age group. Another form of promotion can get direct feedback of the customers. As a result, the business experts can get overview whether the marketing executives need to change their promotional method or not. The company needs to arrange training and development session. With the help of an effective training session employees can operate advanced technology and give feedback to the customers immediately. This very specific study has evaluated those customer appreciation events conducted by Customer appreciation events is very much effective for influencing the purchasing behavior of customers. Some of the recommendations can be provided:
After evaluating the overall study and promotional plan, it can be concluded that Wonder Hiking Shoes have rendered full grain leather for maintaining their durability. The boots consist of lightweight with the help of which users can easily travel for a long. The study has made a proper estimated skeleton budget, which evaluates profit and loss of the company in a proper way. The cash flow analysis is even been evaluated in this very specific study. Direct communication strategy and social media communication are the two major ways of with the help of Wonder Hiking Shoes have grabbed the attention of customers. In direct communication, the event management team of this organization has visited various shopping malls of Australia to make the people aware about their brands. The business experts can gather ample opinion from numerous people from different psychological perspectives. In this kind of situation, this very specific study has focused to make detailed overview on how social media presence of a brand can create grand awareness about a brand and its products. With the help of an effective display advertisement, the people having lower education level can easily get to know about the product components. As a result, Wonder Hiking Shoes does not have to face challenges in increasing the number of target customers. While introducing the brand of Wonder Hiking Shoes, the business experts have focused both traditional media platform as well as social media platform. The company needs to arrange training and development session. With the help of an effective training session, employees can operate advanced technology and give feedback to the customers immediately. In traditional media platform, the business experts have chosen television, magazine and hoardings. With the help of effective multilingual competency the business experts can draw the attention of people belonging to various cultural and psychological backgrounds. However it can be recommended that the post selling survey needs to be more effective so that research and development team can get detail knowledge about the current market trends.
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