BUSINESS PLAN WRITING

What is a business plan?

A business plan is a comprehensive document that outlines a company's

goals, strategies, and financial projections. It provides a detailed
description of the business, including its products or services, target
market, competitive landscape, and marketing and sales strategies. The
plan also includes a financial section that forecasts revenue, expenses,
and cash flow, as well as a funding request if the business is seeking
investment.

What is the purpose of a business plan?

 A business plan is used to help manage an organisation by stating

ambitions, how they will be achieved, and exactly when. The plan
will also help summarise what the business is about, why it exists,
and where it will get to. Your business plan will serve as a key point
of reference for investors, partners, employees and management to
gauge progress against objectives.
 Provide a road map. A detailed plan will help you as the owner
and founder to manage your business effectively. Writing down and
illustrating both your ideas and tactics will establish a path and
course of action, akin to a road map. This will give you something
concrete by which to monitor and assess the progress you make. In
charting a potential course of action you may find your business is
faced with multiple different potential paths. It would therefore be
wise to plot the most likely scenarios and strategies for these
different circumstances. If, for example, your business is heavily
reliant upon exporting then you may need to consider potential
global and political events.
Developing a clear plan and strategy will focus your mind. What
resources will you need and when to achieve each of your goals?
This provides you with clarity as to how much needs to be invested

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 at each stage of the business lifecycle. You'll then know when you're
going to need cash injections based on likely cashflow.
 To help you with critical decisions. The primary importance of a
business plan is that they help you make better decisions.
Entrepreneurship is often an endless exercise in decision making
and crisis management. Sitting down and considering all the
ramifications of any given decision is a luxury that small businesses
can’t always afford. That’s where a business plan comes in.
Building a business plan allows you to determine the answer
to some of the most critical business decisions ahead of
time. Creating a robust business plan is a forcing function—you
have to sit down and think about major components of your
business before you get started, like your marketing strategy and
what products you’ll sell. You answer many tough questions before
they arise. And thinking deeply about your core strategies can also
help you understand how those decisions will impact your broader
strategy.

 To prove the viability of the business. Many businesses are

created out of passion, and while passion can be a great motivator,
it’s not a great proof point. Planning out exactly how you’re going to
turn that vision into a successful business is perhaps the most
important step between concept and reality. Business plans can
help you confirm that your grand idea makes sound business sense.
A critical component of your business plan is the environmental
analysis section. Environmental analysis can offer deep insight into
your customers, your competitors, and your chosen industry. Not
only can it enlighten entrepreneurs who are starting up a new
business, but it can also better inform existing businesses on
activities like marketing, advertising, and releasing new products or
services.

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 To set better objectives and benchmarks. Without a business
plan, objectives often become arbitrary, without much rhyme or
reason behind them. Having a business plan can help make those
benchmarks more intentional and consequential. They can also help
keep you accountable to your long-term vision and strategy, and
gain insights into how your strategy is (or isn’t) coming together
over time.

 Understand what to focus on. As an entrepreneur, where should

your efforts and concentrations be centred on? It’s a common issue.
The early days of starting out can be very chaotic. There’s so much
to set up, think about, implement and develop. Amid all this and
with an ever mounting in-tray of to do’s, you can fast lose track of
what’s important.

When writing a business plan you’re defining exactly what your

organisation is today and then intends to become tomorrow. This
coherence concerning the purpose of your business and direction in
which you’re heading is invaluable. Doing this means you’ll
understand what needs to be implemented to move forward.

 Raise finance. You’re more likely to get funded if you have a

business plan? If you’re planning on pitching to venture capitalists,
borrowing from a bank, or are considering selling your company in
the future, you’re likely going to need a business plan. After all,
anyone that’s interested in putting money into your company is
going to want to know it’s in good hands and that it’s viable in the
long run. Business plans are the most effective ways of proving that
and are typically a requirement for anyone seeking outside
financing.
 To reduce risk. Entrepreneurship is a risky business, but that risk
becomes significantly more manageable once tested against a well-
crafted business plan. Drawing up revenue and expense projections,
devising logistics and operational plans, and understanding the

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 market and competitive landscape can all help reduce the risk factor
from an inherently precarious way to make a living. Having a
business plan allows you to leave less up to chance, make better
decisions, and enjoy the clearest possible view of the future of your
company.
 Provide a guide for service providers. Small businesses
typically employ contractors, freelancers, and other professionals to
help them with tasks like accounting, marketing, legal assistance,
and as consultants. Having a business plan in place allows you to
easily share relevant sections with those you rely on to support the
organization, while ensuring everyone is on the same page.
 To communicate objectives and benchmarks. Whether you’re
managing a team of 100 or a team of two, you can’t always be there
to make every decision yourself. Think of the business plan like a
substitute teacher, ready to answer questions any time there’s an
absence. Let your staff know that when in doubt, they can always
consult the business plan to understand the next steps in the event
that they can’t get an answer from you directly. Sharing your
business plan with team members also helps ensure that all
members are aligned with what you’re doing, why, and share the
same understanding of long-term objectives.

SECTION ONE: VENTURE DESCRIPTION

Opportunity and Business Concept

In this section you should describe the nature of entrepreneurial

opportunity that exists and that is compelling you to undertake the
business. You should also briefly discuss the kind of business concept that
would enable you to take advantage of the opportunity. You should be
able to briefly describe the value proposition, how value will be created for
the market and how this will translate into financial or social value.

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Legal form of Business and Ownership

In this this sub-section describe the legal form of business and indicate
who the owners of the are and the distribution of shares.

Vision Statement

State the vision of your business/organization. Your vision statement

answers the question: “Where are we going?” what do we want to be?
(read more about writing vision statements).

Mission Statement

State your mission in this sub-section. Your mission Statement addresses

another three basic questions of any business venture: “why we are here”
or “What business are we in?”, “where we are going” and how to we get
there.” Establishing the purpose of the business in writing must come
first in order to give the company a sense of direction. As an enduring
declaration of a company’s purpose, a mission statement is the
mechanism for making it clear to everyone. (read more about writing
mission statements).

The firm’s Goals and objectives

In this section state the goals of your business. Goals are not intended to
be specific enough for a manager to act on, but simply state the general
level of accomplishment sought. Addressing these broad issues will help
you focus on the next phase – developing specific, realistic objectives.
Business objectives are more specific targets of performance. These
targets should enable you to achieve your goals. Your objectives should
be linked to the objects.
Because some of these objectives might conflict with one another, it is
important to establish priorities. Which objectives are most important?
Which are least important? Arranging objectives in a hierarchy according
to their priority can help an entrepreneur resolve conflicts when they
arise. (read more about writing business goals).

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Entrepreneur(s) and Management team profiles

The most important factor in the success of a business venture is the

quality of its management and investors weigh heavily the ability and
experience of the company’s managers in their financing decisions. Thus
in this section the entrepreneur should describe the qualifications of
business officers, key directors, and any person with at least 20%
ownership in the company. A management team with industry experience
and a proven record of success goes a long way in adding credibility to
the new venture. This section should show that the company has the right
people organized in the right fashion for success. A summary of each key
person’s education, work history (emphasizing managerial responsibilities
and duties), and relevant business experience should therefore be given
and full CVs appended to the business plan.

History of the institution

If the business you are writing about is not new, give the date it was
incorporated/registered/started. If the institution has been in business for
several years and is seeking , review its history and cite its prior sales and
profit performance. It is important in this section to highlight the previous
achievements of the business/organisation.

The location of the business

In this sub-section, identify the location of the institution. The significance

of location to the success of the institution may be highlighted. You may
may need to evaluate such factors as outreach, operation costs etc.

The size of the business

This could be expressed in terms of capital investment, market share,

clientele and number of employees, geographical coverage etc

SECTION TWO: ENVIRONMENTAL ANALYSIS

The analysis of the environment will include analysing the internal and
external environment.

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INTERNAL ANALYSIS

The internal analysis will focus on internal factors that may affect the
performance of the business. These factors may influence the competitive
position of the firm in the industry. The analysis of these factors is based
on the company’s strength or weakness with regard to a particular area of
performance. Examples of these factors may include:

• the governance of the institution,

• technology used,
• the core competencies of the institution,
• Company culture,
• Company image,
• Intellectual capital,
• Organizational structure,
• Key staff competences,
• Position on the experience curve,
• Operational efficiency,
• Operational capacity,
• Brand awareness,
• Market share,
• Financial resources,
• collaborations with strategic partners,
• trade secrets etc.

INDUSTRY ANALYSIS/EXTERNAL MCIROENVIRONMENT ANALYSIS

To develop effective strategies for a business plan, an industry analysis

may be an effective tool of gathering information that would affect a
firm’s performance. An industry – or sector – is the whole of all economic
activities by companies, people, and organizations involved in the
production of goods and services for a particular field. It is a group of
organizations offering a similar product or service to the same customer
group and/or drawing from the same resource pool. Industries are usually
categorized by the goods and services they produce. For example, the

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pizza industry is made up of all producers who produce and sell pizza in
the market. It is important to note that for a pizza maker to belong to the
pizza industry, he or she must sell the product they make in the market. A
person cooking pizza at home for his or her children would not fit under
this description as they are not selling any products or services. Industry
analysis give insight into these issues i.e. issues such as the key success
factors, customer/client characteristics, competitors, marketing
intermediaries, other business intermediaries, suppliers etc

Determining Key Success Factors

Every business is characterized by controllable variables that determine

the relative success of market participants. Identifying and manipulating
these variables is how an entrepreneurial business gains a competitive
advantage. By focusing efforts to maximize their companies’
performance on these key success factors, entrepreneurs can achieve
dramatic market advantages over their competitors. Companies that
understand these key success factors tend to be leaders of the pack,
whereas those that fail to recognize them become also-rans.

Key Success Factors (KSFs) come in a variety of different patterns

depending on the industry. Simply stated, they are the factors that
determine a company’s ability to compete successfully in an industry
must understand the key success factors driving the industry. Many of
these sources of competitive advantages are based on cost factors such
as manufacturing cost per unit, distribution cost per unit, or development
cost per unit. Some are less tangible and less obvious but are just as
important, such as superior product quality, solid relationships with
dependable suppliers, superior customer service, a highly trained and
knowledgeable sales force, prime store locations, readily available
customer credit, and many others.

Identifying the KSFs in an industry allows entrepreneurs to determine

where they should focus their companies’ resources strategically. It is
unlikely that a company, even a large one, can excel on every KSF it
identifies. Therefore, as they begin to develop their strategies, most

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entrepreneurs focus on surpassing their rivals on one or two KSFs to build
a sustainable competitive edge. As a result, KSFs become the
cornerstone of a company’s strategy.

Examples of key success factors may include:

 cost factors
 timely delivery of product/service
 responsiveness to customer needs
 superior product quality,
 solid relationships with dependable suppliers
 superior customer service
 a highly trained and knowledgeable sales force
 prime locations
 readily available customer credit

Customers Analysis

The simplest way to define a market is to think of it as consisting of all the

people or organizations that may have an interest in purchasing a
company’s products or services. In other words, a market comprises all
customers who have needs that may be fulfilled by an organization’s
offerings. Yet just having a need is not enough to define a market. Other
factors come into play when defining a market. The first factor is that
markets consist of customers who are qualified to make a purchase.
Qualified customers are defined as those who:

 Seek a solution to a need, and

 Are eligible to make a purchase, and
 Possess the financial ability to make the purchase, and
 Have the authority to make the decision.

Note that a customer must meet ALL factors listed above, though for
some markets the customer may have a surrogate who will handle some
of these qualifications for a targeted customer.

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Customers can usually be broken into three categories: Consumer,
industrial, and commercial customers. Consumers, or purchasers of the
firm's service or product for their own use, are further divided into
"bundles" of demographics which collectively identify all the various
market segments that are present. Industrial buyers are companies that
purchase the firm's product or service to be used as a component in its
product. By contrast, commercial buyers would be other companies that
sell the product to consumers.

Buyers, whether consumer, industrial, or commercial, can enjoy positions

of strength over the firm from which they purchase products by superior
bargaining power. For example, a large retailer ("commercial buyer" to its
supplier) with a loyal customer base and high volume of sales of the
product in question, may be able to virtually dictate price, shipping
arrangements, order quantity, quality level, and other factors to its
vendors.

Doing market segmentation may be an invariable tool in customer

analysis. The more a business knows about its local markets, its
customers, and their buying habits and preferences, the more precisely it
can focus its marketing efforts on the group(s) of prospective and existing
customers who are most likely to buy its products or services. Market
segmentation is the process of dividing the market into small
homogeneous groups. Market segmentation allows the entrepreneur to
more effectively respond to the needs of more homogenous consumers.
Otherwise the entrepreneur would have to identify a product or service
that would meet the needs of everyone in the marketplace.

The process of segmenting involves dividing the market into small groups
based on characteristics of the customer or buying situations.

 Character of the customer

o Geographic (e.g., state, country, city, region
o Demographic (e.g. age, sex, occupation, education, income, and
race)
o Psychic (e.g., personality and lifestyle)

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 Buying situations
o Desired benefits (e.g. product features)
o Usage (e.g., rate of use)
o Buying conditions (e.g., time available and product purpose).
o Awareness of buying intentions (e.g., familiarity of product and
willingness to buy).
Asking questions such as those listed below can help you understand your
customers better.

 Who are my customers and potential customers?

 What are they looking for?
 What kind of people are they?
 How old are they?
 Are they male or female?
 What kinds of jobs do they do?
 What is their household income?
 Where do they live?
 How often do they buy these products or services?
 What models, styles, colors or flavors do they prefer?
 Why do – or don’t – they buy from my business?
 How well do my products or services fit their needs and wants?
 What hours do they prefer to shop?
 How do they perceive my business?
 Which advertising media are likely to reach them?
 How do customers perceive my business versus competitors?

The Competitors

Analyzing competitors gives a business owner a more realistic view of the

market and his or her company’s position in it. Direct competitors offer
the same products and services, and customers often compare prices,
features, and deals from these competitors as they shop. Indirect
competitors offer similar products or services but their target customers
seldom overlap yours. Entrepreneurs should monitor closely the actions

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of their direct competitors, maintain a solid grasp of where their
significant competitors are heading. A competitive intelligence exercise
enables entrepreneurs to update their knowledge of competitors by
answering the following questions: -

 Who are your primary competitors? Where are they located?

 What distinctive competencies have they developed?
 How do their cost structures compare to yours? Their financial
resources?
 How do they market their products and services?
 What do customers say about them? How do customers describe
their products or services; their way of doing business; the
additional services they might supply?
 What are their key strategies?
 What are their strengths? How can your company surpass them?
 What are their major weaknesses? How can your company
capitalise on them?
 Are new competitors entering the business?
 What are the financial positions and profitability of your competitors
 why customers buy from them
 Why your competitors are vulnerable for you to capture a share of
their business.

Gathering information on competitors does not require entrepreneurs to

engage in activities that are unethical, illegal, or unsavoury. One expert
says that competitive intelligence (CI) involves “taking information from
the public domain, adding it to what you know about your company and
your industry, and look for patterns.

Substitute Products

These are products or services that offer an alternative to the customer.

Manufacturers of products and suppliers of services must constantly scan
their environments for the potential emergence of substitutes. The most

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dangerous substitutes are those that show potential for improving price-
performance trade-offs and those made by firms or industries earning
high profits. In these cases, strategies must be formulated to protect
against displacement by the substitute product/service.

Analysis of Business Intermediaries

Analysis of Suppliers

Suppliers are organizations and individuals that provide the resources

needed to produce goods and services. They are critical to an
organization's marketing success and an important link in its value
delivery system. Entrepreneurs must watch supply availability and
monitor price trends of key inputs. If there is a breakdown in the link
between the organization and its suppliers, the result will be delays and
shortages that can negatively impact the organization's marketing plans.
On the other hand, positive and cooperative relationships between the
organization and its suppliers can lead to enhanced service and customer
satisfaction.

Analysis of Marketing Intermediaries

Like suppliers, marketing intermediaries are an important part of the

system used to deliver value to customers. Marketing intermediaries are
independent organizations that aid in the flow of products from the
marketing organization to its markets. The intermediaries between an
organization and its markets constitute a channel of distribution. These
include middlemen (wholesalers and retailers who buy and resell
merchandise). Physical distribution firms help the organization to stock
and move products from their points of origin to their destinations.
Warehouses store and protect the goods before they move to the next
destination. Marketing service agencies help the organization target and
promote its products and include marketing research firms, advertising
agencies, and media firms. Financial intermediaries help finance
transactions and insure against risks and include banks, credit unions, and
insurance companies.

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Mobile Network Operators (MNOs)

Mobile network operators (MNOs) play a crucial role in business

intermediation, leveraging their infrastructure, customer base, and
technological capabilities to facilitate various business activities. Here are
some key roles they play: MNOs offer the primary infrastructure for
communication and data transfer. Businesses rely on these networks for
mobile telephony, internet access, and other forms of wireless
communication. MNOs also often provide platforms that businesses can
use to offer services. For instance, they offer APIs and SDKs for integrating
SMS, voice, and data services into business applications. This integration
enables businesses to reach their customers more effectively. Many MNOs
have again ventured into mobile banking and payment services. They
facilitate financial transactions, remittances, and other banking services,
especially in regions where traditional banking infrastructure is lacking.
This role is crucial for financial inclusion and expanding business
operations in underserved areas. Further, MNOs provide Customer
Relationship Management (CRM) tools and platforms. MNOs help
businesses manage their customer interactions more effectively. This
includes services like customer support, loyalty programs, and targeted
promotions, leveraging the communication channels provided by the
MNOs. MNOs are also key players in the Internet of Things (IoT)
Integration ecosystem, providing the necessary connectivity and
platforms for IoT devices. They enable businesses to deploy IoT solutions
for monitoring, automation, and data collection, enhancing operational
efficiency and creating new business opportunities.

Shipping companies

Shipping companies play a vital role in business intermediation by

facilitating the movement of goods and commodities across different
locations, connecting producers, manufacturers, and consumers in global
trade networks. Their contributions to business intermediation include the
following aspects: Shipping companies provide the physical movement of
goods, ensuring that products are transported from manufacturers to

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distributors, retailers, or directly to consumers. This is fundamental to
supply chain management and allows businesses to operate on a global
scale. Many shipping companies also offer integrated supply chain
solutions, including warehousing, inventory management, and distribution
services. They help businesses streamline their operations, reduce costs,
and improve efficiency by managing the flow of goods from production to
consumption. Again, Shipping companies often act as freight forwarders,
arranging the transportation of goods on behalf of exporters and
importers. They handle the necessary documentation, customs clearance,
and logistics coordination, making international trade more accessible and
less cumbersome for businesses. Further, Shipping companies facilitate
international trade by providing access to global markets. They enable
businesses to reach new customers and suppliers around the world,
expanding their market reach and driving economic growth. Shipping
companies also assist businesses with navigating complex customs
regulations and procedures. By providing customs brokerage services,
they help ensure compliance with international trade laws, reducing the
risk of delays, fines, or penalties.

Financial institutions

Financial institutions play a crucial role in business intermediation by

acting as intermediaries between savers and borrowers, providing
essential services that facilitate economic activity and growth. Here are
key roles they play in business intermediation: Financial institutions
facilitate international trade by offering trade finance products, such as
letters of credit, trade credit insurance, and export financing. These
services reduce the risks associated with cross-border transactions and
ensure that businesses have the necessary funds to engage in global
trade. Financial institutions, such as banks, credit unions, and investment
firms, also provide businesses with access to capital. They offer loans,
credit lines, and other financing options that enable companies to invest
in growth opportunities, manage cash flow, and expand operations. Again,
Insurance companies and other financial institutions offer products that

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help businesses manage various risks, including property damage,
liability, and business interruption. This protection allows businesses to
operate with greater confidence and stability. Further, Banks and payment
processors facilitate business transactions by providing services like
payment processing, electronic funds transfer, and merchant services.
These institutions ensure that businesses can efficiently handle payments
from customers and suppliers.

ANALYSIS OF THE MACRO ENVIRONMENT

The company is not alone in its business environment. It is surrounded by

and operates in a larger context. This context is called the Macro
Environment. The world at large forms the external environment for
businesses. A firm must confront, adapt to, take advantage of, and defend
itself against what is happening in the world around it to succeed. It
consists of all the forces that shape opportunities, but also pose threats to
the company. A macro environment is the condition that exists in the
economy as a whole, rather than in a particular sector or region. The
macro-environment is closely linked to the general business cycle as
opposed to the performance of an individual business sector. To make
gathering and interpreting information about the external environment
easier, strategic analysts have defined several general categories of
activities and groups that managers should examine and understand. A
firm’s macro environment contains elements that can impact the firm but
are generally beyond its direct control. These elements are characteristics
of the world at large and are factors that all businesses must contend
with, regardless of the industry they are in or type of business they are.

The Economic Environment

The economic environment consists of factors that affect consumer

purchasing power and spending patterns. Economic factors include
business cycles, inflation, unemployment, interest rates, and income.
Changes in major economic variables have a significant impact on the
marketplace. For example, income affects consumer spending which
affects sales for organizations. People spend, save, invest and try to

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create personal wealth with differing amounts of money. How people deal
with their money is important to entrepreneurs. Trends in the economic
environment show an emphasis on global income distribution issues, low
savings and high debt, and changing consumer-expenditure patterns. The
entrepreneur should consider trends in the GDP, unemployment by
geographic area, disposable income etc. Industry demand is another
economic factor the entrepreneur should consider. Knowledge of whether
the market is growing or declining , the number of new competitors ,
and possible changes in consumer needs are all important issues in
trying to ascertain the potential business that might be achieved by the
new venture. The demand for the entrepreneur’s product or service will
require one additional marketing research.

The Technological Environment

The technological environment refers to new technologies, which create

new product and market opportunities. Technological developments are
the most uncontrollable force faced by entrepreneurs. Organizations need
to be aware of new technologies in order to turn these advances into
opportunities and a competitive edge. Technology has a tremendous
effect on life-styles, consumption patterns, and the economy. Advances in
technology can start new industries, radically alter or destroy existing
industries, and stimulate entirely separate markets. The rapid rate at
which technology changes has forced organizations to quickly adapt in
terms of how they develop, price, distribute, and promote their products.
Changes in technology are changing the way business operates. The
Internet is having a profound impact on the marketing mix strategy of
organizations. Consumers can now shop 24 hours a day comfortably from
their homes. The challenge these organization faces is to ensure that they
can deliver on their promise. Those businesses, which are slow to react,
will fall at the first few hurdles. This technological revolution means a
faster exchange of information beneficial for businesses as they can react
quickly to changes within their operating environment. Being in the
market that is rapidly changing due to technological development will

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require the entrepreneur to make careful short term marketing
decisions as well as to be prepared with contingency plans given any
new technological development s that may affect his product or
service.

The Political and Legal Environment

Organizations must operate within a framework of governmental

regulation and legislation. Government relationships with organizations
encompass subsidies, tariffs, import quotas, and deregulation of
industries. There are many important legal issues in starting a new
venture. The entrepreneur should be prepared for any future legislation
that may affect the product or service, channel of distribution, price, or
promotion strategy

The major purposes of business legislation include protection of

companies from unfair competition, protection of consumers from unfair
business practices and protection of the interests of society from
unbridled business behavior. The legal environment becomes more
complicated as organizations expand globally and face governmental
structures quite different from those within their countries of origin. There
are many important legal issues in starting a new venture. The
entrepreneur should be prepared for any future legislation that may
affect the product or service, channel of distribution, price, or promotion
strategy. This information will often be monitored in industry journals or
by trade associations.

The Social-Cultural Demographic Environment

Social/cultural forces are the most difficult uncontrollable variables to

predict. It is important for entrepreneurs to understand and appreciate the
cultural values of the environment in which they operate. The cultural
environment is made up of forces that affect society's basic values,
perceptions, preferences, and behaviors. Changes in social/cultural
environment affect customer behavior, which affects sales of products.
Trends in the cultural environment include individuals changing their

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views of themselves, others, and the world around them and movement
toward self-fulfillment, immediate gratification, and secularism. Within
society forces such as family, friends, and media affect our attitude,
interest and opinions. These forces shape who we are as people and the
way we behave and what we ultimately purchase. As society changes and
as behaviours change organisations must be able to offer products and
services that aim to complement and benefit people’s lifestyle and
behaviour. Shifts in attitude, or trends in safety, health, and nutrition, and
concern for the environment may all have an impact on the
entrepreneur’s market plan. This information can also be found in
magazines, newspapers or trade journals.

The Demographic Environment

There are also demographic factors that can be considered. Demographics

tell entrepreneurs who current and potential customers are; where they
are; and how many are likely to buy what the marketer is selling.
Demography is the study of human populations in terms of size, density,
location, age, sex, race, occupation, and other statistics. Changes in the
demographic environment can result in significant opportunities and
threats presenting themselves to the organization. Major trends for
marketers in the demographic environment include worldwide explosive
population growth; a changing age, ethnic and educational mix; new types
of households; and geographical shifts in population. Population changes
also have a direct impact on all organisations. Changes in the structure of
a population will affect the supply and demand of goods and services
within an economy.

SWOT ANALYSIS

Base on your environment analysis to do a SWOT Analysis

SECTION THREE: PRODUCT/SERVICE DESCRIPTION

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The product

In this section it’s important for you to be able to build a convincing case
for the products and service upon which your business will be built:
 Describe in some detail your product (s) & service. This includes
bringing out aspects of your core product, the actual product and
the augmented product; describe your products in terms of their
features, both functional and emotional features (These features
convey benefits to the client and provide the client the satisfaction
or fulfillment they are looking for from your products or services);
 Describe your product mix clearly showing the product width and
depth (This may include using graphics to illustrate your product
mix);
 Discuss the application of the products and describe the primary
end use for each product as well as any significant secondary
application;
 Discuss what makes your products or service unique or better than
your competitors, (Why would someone choose to buy your service
or do business with you over your competitors? what is it that
stands out with your products & service? Emphasize how and why
your products are competitive).
 Process Strategies. Describe your process strategy and indicate how
it will enhance effectiveness and efficiency in service delivery. This
may include process enhancing speed, security, responsiveness,
quality management, reduction in the firm’s transaction costs,
reduction in transaction costs of clients. Discuss how technology will
be used to support the process
 Physical Evidence. Describe how physical evidence will be part of
your marketing strategy. This may include issues relating to
aesthetics such as the ambience of your premises, staff appearance,
appearances of your websites etc.
 People strategies. Discuss issues to with the professionalism of your
staff who are dealing directly with service delivery – the kind of

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 conduct expected, excellency etc. Discuss issues to do with
competences and the proficiency required in delivery of services
 Customer service strategy .Discuss your customer service strategy.
Business depends on creating a satisfied customer. The most
successful businesses develop a customer focus and a customer
satisfaction attitude throughout the company. Winning customers
for life requires practicing customer experience management (CEM),
systematically creating the optimum experience for their customers
every time they interact with the company. Companies with world-
class CEM attitudes set themselves apart by paying attention to
little things such as responding to questions or complaints promptly,
remembering a customer’s unique product or service preferences,
or sending a customer a copy of an article of interest to him or her.
Taking care of the small interactions a company has with its
customers over time adds up to a positive service experience.
Customer care strategies need to pay attention to Convenience. In
this busy, fast-paced world of dual-career couples and lengthy
commutes to and from work, customers increasingly are looking for
convenience. Unfortunately, too few businesses deliver adequate
levels of convenience, and they fail to attract and retain customers.
Successful companies go out of their way to make sure that it is
easy for customers to do business with them.

SECTION FOUR: THE MARKETING PLAN

Establish marketing goals and objectives

 Establish realistic marketing goals and objectives. The marketing

goals and objectives respond to the question: where do we want to
go, and should specify such things as market share, profits, sales,

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 (by territory or region), market penetration, sales promotion, and
advertising support.
 It is also possible for a firm to establish such goals or objectives as
research customer attitudes towards a product, set up sales training
program, improve packaging, change name of product, or find new
distributor.
Discuss your market information gathering strategies
 Will have a marketing information system, what will it be like
Market Segments, targeting and positioning strategy
 In your marketing plan describe the perceived market segments.
Clear elaborate the features in those market segments.
 Describe your targeting strategy i.e., which client segments/client
categories you are targeting and the related corporate positioning
strategy.

Pricing strategies

 Identify the fees you will charge to generate revenue for the
institutions (interest charged, and other fees)
 Discussing pricing strategy, justifying your pricing strategy and
differences between your prices and those for competitive or
substitute products or services
 If your charges are lower than those of the competition, explain how
you will do this and maintain profitability (e.g., via the usage of
digital technologies, increased outreach, lower labor costs, lower
overhead etc)
 Discussing your pricing policy, including a discussion of the
relationship of price, what is it that drives your pricing decision; is it
market share, profits etc.

Distribution/ Outreach strategies

 Describe your distribution/outreach goals

 Describe your distribution/outreach targets

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  Discuss the strategies you will employ to reach out to your clients.
Would they involve the use of digital technologies
 Describe the kinds of distribution channels you will use to reach out
to clients. Do they involve digital channels
 Describe the logistical and infrastructural requirements to
implement your distribution/outreach strategy
 Discuss the kind of intermediaries that you will use to support your
outreach strategy.

Promotion Strategies

 Describe the intended information to be communicated through

promotion
 Describe the promotional approaches that will be used
 Will digital technologies be used to support the approaches chosen
 How will those approaches be used and the intended target
audience
 Justify the selected approaches are effective in delivering intended
communication
 Present a schedule and approximate costs of promotion and
advertising and discuss how these costs will be incurred.
Internationalization strategy
 In case you intend to do international business, describe your
internationalization strategy

Marketing expenses Budget

 Develop a marketing expenses budget. Include items such as
adverting expenses, sales promotions, public relations activities,
sales persons expenses, etc

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