4868800 Computer Consulting Marketing Plan

8/6/2019 4868800 Computer Consulting Marketing Plan

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ComputerConsultingMarketingPlanCreativeConceptsComputer Design

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Confidentiality Agreement

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 allrespects 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 ofsecurities.


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Table OfContents

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . 32.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . 3

2.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . 4

2.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . 42.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . 6

2.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.3 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.4 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.5 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.6 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.4 Target Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.5 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.6 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.7 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . 9

4.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

4.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 104.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11


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Creative Concepts ComputerDesign

1.0 Executive Summary

Creative Concepts Computer Design (CCCD) is a computer consulting firm whose target

customers consist of home users and small businesses. The Eugene, OR community will be served

by a comprehensive service provider that offers computer education/empowerment as well as

problem resolution.

CCCD is owned and operated by a seven-year industry veteran Don Digit. Don will leverage hisextensive experience to provide the community with high quality consulting services. CCCD's

competitive edge consists of their unusual ability to explain or teach complex technical issues to

clients of all computing abilities. The ability to translate complex "computerease" into basic

English is an unusual and desired skill. This competitive edge allows CCCD to empower clientswith new knowledge, making them feel significantly more comfortable in the computing

environment where they now interact in so many activities.

Creative Concepts will offer computer support to clients of two major categories, home PC usersand small office users. These categories will comprise 95% of our operations. Both Windows OS

as well as Macintosh OS can be supported. CCCD offers computer consulting for software such asthe Office Suite, MS Access and other database applications, Quicken, QuickBooks Pro, Internet

technology software, and CD-RW software.

Hardware issues that are addressed are the setup of LAN networks, wireless (WI-FI) networks,

CD-RW installations, hardware repair/replacement, and all issues relating to broadbandconnections.

CCCD will rapidly gain market share by offering needed services, outstanding customer service,and reasonable prices. CCCD projects earnings of $42,845 by year three.

Annual Sales Forecast

$45 000


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2.0 Situation Analysis

CCCD is close to entering their second year of service. The company has been well received , and

marketing is now critical to its continued success. The company offers a wide range ofcomputer

consulting for both home users as well as small businesses. The basic market need is a

reasonably priced computer consulting firm that can translate technical computer information intoeveryday English, allowing the lay-person to easily understand technical concepts.

2.1 Market Summary

CCCD possess good information about the market and knows a great deal of information about

the prized customers. This information will be leveraged to better understand who is served, their

specific needs, and how CCCD can better communicate with them.

Target Markets

Home PC Users

Small Business Contracts


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2.1.1 Market Demographics

The profile for CCCD's customer consists of the following geographic, demographic, and behavior

factors:

Geographics

The immediate geographic target is the city of Eugene with a population of130,000.

A 30-mile geographic area is in need of our services.

The total targeted population is estimated at 4,787.

Demographics

Male: female ratio. 48%:52% Ages 26-54 with the median age of33.

Individual income ranges from $34,000-$65,000.

78% of the customers have had some undergraduate coursework and 14.8% have had

some graduate coursework.

Behavior Factors

Have increased their reliance on personal computers in all aspects in their lives from

shopping, personal finance management, to information gathering. Strive to become more impendent in their use of the PC. Have increased the time spent on a PC from 12 hours a month in 1998 to 27.5 hours a

month in 2002 for personal use.

2.1.2 Market Needs

CCCD is providing customers with a comprehensive computer consulting service for home usersas well as small businesses. CCCD seeks to fulfill the following benefits that are important to their

customers.


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2.1.3 Market Trends

The market trend for the use of the PC within the home and the small business environment has

been a skyrocketing increase in usage, to a large degree fueled by the proliferation ofthe

Internet, and more recently by broadband connections. The relatively new uses of PCs are for thefollowing tasks:

Personal financial management (including tax preparation and filing).

Online bill paying.

Internet purchases.

Research.

Market Forecast

40,000

35,000

30,000

25,000

20,000

15,000

Home PC Users

Small Business Contracts

10,000

5,000

0

2003 2004 2005 2006 2007


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Target Market Growth

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

Home PC Users Small Business Contracts

2.2 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and

describes the opportunities and threats facing CCCD.

2.2.1 Strengths

In depth comprehensive industry experience and knowledge


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2.2.3 Opportunities

Participation within a growing market.

Increased sales opportunities as the limit of technology is continually pushed upward.

A decrease in market share for Apple (MacOS) should increase the reliance ofconsultantsto solve computer issues with the Windows operating system.

2.2.4 Threats

Future/potential competition from franchised computer consulting firms.

Significant leaps in computer technology making computers far easier to use, decreasing

the reliance on professionals for assistance with computer issues. A significant increase in consumer's knowledge/proficiency of computer technology.

2.3 Competition

There are two main competitors in this area.

1. VOS. They are a well-established provider of computer upgrades and services.

2. Suntech Computers. Smaller and less known than VOS, Suntech provides many services

for residents living in East and South Eugene.

Both of these companies charge rates in excess of Creative Concepts, we will be able to attract

the price-sensitive market without much work. Our second main advantage is the accessibility ofour services. The time conscious customer will appreciate our swift work.

Additionally, there are several phone based computer help services that offer help via the phone.

2 4 Services


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2.5 Keys to Success

The keys to success are simply:

Exceed customer's expectations. Offer comprehensive, flexible services.

Address market needs.

2.6 Critical Issues

CCCD is still in the speculative stages as a computer consultancy as a result of their young age. It

is critical that they continue to take a modest fiscal approach to serving the needs of the clients,expanding only when the demand of the clients warrants expansion, not for the sake ofexpansion

in itself.

3.0 Marketing Strategy

CCCD will employ several programs within their marketing strategy. All of the programs will have

the goal of getting the largest bang for the buck as the marketing budget is fairly limited, but anecessary expenditure. CCCD will employ advertisements in two local newspapers, the Register-

Guard and the Eugene Weekly, as well as provide free community workshops as a method of

networking. The last element of the marketing strategy will be the use of a robust website thatwill catalog all of the different services offered by Creative Concepts.

3.1 MissionCreative Concepts Computer Design's mission is to provide the client with the finest computer

consulting services available. CCCD exists to attract and maintain customers. With a strictadherence to this maxim success will be ensured Our services will exceed the expectations of


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3.3 Financial Objectives

The financial objectives include the following goals:

1. Increase the profit margin by 1% per quarter.2. Hold spending at a steady level as a percentage ofsales.

3. Generate sufficient sales to eventually require the need to hire an additional employee.

3.4 Target Markets

Creative Concepts Computer Design will provide computer support in both a consulting and

technical capacity to home PC users as well as small business owners. Since Creative Concepts iscurrently a one-man operation it will be limited in growth to the capacity of work able to be

completed. Personal market research indicates an available market niche able to be occupied byadditional businesses of this nature. The very nature of the computing industry, with its

extraordinary rate of technological development, creates a constant need for businesses skilled inupdating and advising customers on computer-related issues.

The existing computer service market is so extensive that categorizing it is a rather difficult task.

For our revenue-oriented purposes we will define the market as home PC users and small

business clients. Home PC users will provide the majority of our business revenue. These jobs willtypically consist of minor upgrades, services and advising. The small business market will be

defined as customers with five or more computers or a network requiring service or repair.

3.5 Positioning

Creative Concepts will position themselves as the premier computer consulting firm in the Eugene

community. The small business community as well as home users will be serviced withprofessional and effective computer consulting that will solve users problems as well as empower

them with new-found control over their technological environment. CCCD will leverage theircompetitive edge to achieve the desired positioning.


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method. These presentations will be fairly broad based, general presentations/lecturesintroducing newbies to computer technology. The goal of the presentations will be to introduce

the community to CCCD and their unique teaching style. The presentations should developsignificant new customer leads.

The last method CCCD will utilize is a comprehensive website that will display CCCD's

technological proficiency, describe their unique competitive edge of an efficient and effectiveteaching style, as well as catalog all of the different services offered.

3.7 Marketing Mix

CCCD's marketing mix is comprised of the following approaches to pricing, distribution,advertising and promotion, and customer service.

Pricing- The pricing schedule is generally based on a per hour rate. However, CCCD is

flexible in order to meet all of the customer's possible needs including a monthly retainerrate for any problems that arise.

Distribution- Generally the services will be offered at the client's home/place ofbusiness. Advertising and Promotion- A multi-pronged strategy will be used for the

advertising/promotion campaign.

Customer Service- CCCD is keenly aware of the need to have exemplary customer supportin order to increase their market penetration and achieve sustainable profitability.

3.8 Marketing Research

CCCD used primary marketing research to mine data about the market, customers, and theirpreferences. An electronic survey was administered to collect the market research. The survey

took the form of either an email document or a form that could be completed online at CCCD'swebsite. The survey was issued to people within the target market segment. CCCD received a

total of 107 returned surveys that provided Creative Concepts with significant amounts ofvaluable market research.


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4.0 Financials

This section will offer a financial overview of CCCD as it relates to the marketing activities.

Creative Concepts will address break-even analysis, sales forecasts, expense forecasts, and how

these reports link to the marketing strategy.

4.1 Break-even Analysis

The Break-even Analysis indicates that $463 will be needed in monthly sales to reach the break-even point.

Break-even Analysis

$600

$400

$200

$0

($200)

($400)

$0 $180 $360 $540 $720 $899

Monthly break-even point


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4.2 Sales Forecast

The sales strategy is a prediction of slow, controllable growth. Since there is one employee

(initially at least), the focus will be on quality and attention to detail especially in the beginning to

avoid some potential pitfalls encountered by many new businesses. This should allow for carefulexamination of variations in demand with regards to season or holidays and still allow enough

flexibility to sufficiently compensate.

Monthly Sales Forecast

$3,500

$3,000

$2,500

$2,000

$1,500

Home PC

Small Businesses

$1,000

$500

$0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Table 4.2: Sales


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4.3 Expense Forecast

The expense forecast will be used as a tool to keep the business on target and to provide

indicators when a modification or correction must be made to ensure proper implementation of

the marketing plan.

Monthly Expense Budget

$400

$350

$300

$250

$200

$150

Advertisements

Seminars

$100

$50

$0


Table 4.3: Marketing ExpenseBudget

2003 2004 2005Advertisements $2 020 $2 500 $3 000


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an Completion

te Completion

Seminar #1

Seminar #2


5.0 Controls

The purpose of CCCD's marketing plan is to serve as a guide for the organization. The following

areas will be monitored to gauge performance:

Revenue- monthly and annual. Sales- monthly and annual.

New customer acquisition costs.

Customer satisfaction.

5.1 Implementation

The following milestones identify the key marketing programs. It is important to accomplish each

one on time and on budget.

Milestones

Marketing Pl

Webis


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5.2 Marketing Organization

Don Digit will be responsible for CCCD's marketing activities.

5.3 Contingency Planning

Difficulties and risks:

Problems generating visibility.

Overly aggressive or debilitating actions from a franchised competitor.

Worst case risks include:

Determining that the business cannot support itself on an ongoing basis.

Having to liquidate equipment to cover liabilities.


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Appendix: Creative Concepts ComputerDesign

Table 4.2 Sales Forecast

Sales Forecast PlanSales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecHome PC $300 $36 $43 $518 $622 $746 $896 $1,075 $1,290 $ 1,548 $1,858 $2,22Small Businesses $300 $33 $36 $399 $439 $483 $531 $585 $643 $707 $778 $85

Total Sales $600 $69 $79 $917 $1,061 $1,229 $1,427 $1,660 $1,933 $2,255 $2,636 $3,08

Direct Cost ofSales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecHome PC $45 $54 $65 $78 $93 $112 $134 $161 $194 $232 $279 $33Small Businesses $45 $50 $54 $60 $66 $72 $80 $88 $96 $106 $117 $12Subtotal Cost ofSales $90 $10

4$11

9$138 $159 $184 $214 $249 $290 $338 $395 $46

3

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Appendix: Creative Concepts ComputerDesign

Table 4.3 Marketing ExpenseBudget


Advertisements $150 $200 $250 $300 $100 $125 $140 $150 $125 $130 $150 $20Seminars $0 $100 $100 $100 $100 $150 $150 $150 $200 $200 $200 $20

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -----------Total Sales and Marketing $150 $300 $350 $400 $200 $275 $290 $300 $325 $330 $350 $40Percent ofSales 25.00% 43.48% 44.03% 43.62% 18.85% 22.38% 20.32% 18.07% 16.81% 14.63% 13.28% 12.97Contribution Margin $360 $287 $326 $379 $702 $770 $923 $1,111 $1,318 $1,587 $1,891 $2,22Contribution Margin / Sales 60.00% 41.52% 40.97% 41.38% 66.15% 62.62% 64.68% 66.93% 68.19% 70.37% 71.72% 72.03

%

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4868800 Computer Consulting Marketing Plan