The Marketing Plan

Prepared by:

TABLE OF CONTENTS 1

Preface.. 03 PART 1

1.1 1.2 1.3

Purpose Of The Plan Project Profile Mission Statement

04 04 04

PART 2 2.1 Situational Analysis 2.1.1 SWOT Analysis 2.2 Market Analysis 2.3 Distribution Analysis 2.4 Financial Analysis PART 3 3.1 Marketing Strategies And Objectives 3.1.1 Objectives 3.2 Target Market PART 4 4.1 Marketing Mix 4.1.1 Services/ Product Line 4.1.2 Services Positioning 4.1.3 Place/ Distribution Channel 4.1.4 Physical Evidence 4.1.5 People 4.1.6 Process 4.1.7 Promotion 4.1.8 Promotional Campaign 4.1.9 Price 08 08 09 09 09 10 10 10 14 16 07 07 07 05 05 06 06 06

PART 5

5.1 5.2

The Marketing Budget Implementation

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PREFACE This is the marketing plan designed for The Childrens Gym. It is a highly detailed, researched and well-written plan that many people inside and outside the organization will evaluate. It is an essential document for both large corporate marketing departments as well as for newly created ventures. Each product/service line or brand must develop a marketing plan to set and achieve its goals/objectives. It is one of the most important outputs of the marketing process. The Marketing plans is divided into five sections, comprising of the following: Part 1: Part 2: Part 3: Part 4: Part 5: Purpose of the Plan Situational Analysis Marketing Strategies and Objectives Marketing Mix Marketing Budget and Implementation

PART 1 1.1 PURPOSE OF THE PLAN The objective of this marketing plan is primarily to facilitate the client in the marketing process of The Childrens Gym. This marketing plan may form the basis of the important decision and in order to serve this objective, the document/study covers various aspects of the project concept of marketing dynamics and brand management. 1.2 PROJECT PROFILE The project is about starting a service facility in Lahore where toddlers and children ranging between 1.5 years up to 10 years can come to have fun, learn and play. The facility would be called The Childrens Gym. The marketing plan is in continuation to the market survey report conducted to know the existing needs and wants of todays parents. 1.3 MISSION STATEMENT The mission statement of The Childrens Gym is, to develop happier, healthier, responsible and confident children.

PART 2 2.1 SITUATIONAL ANALYSIS The amount of time parents spend with their children is a reflection of the modern life pressures. Economic pressures are compelling both parents to work towards achieving and sustaining quality life standards. This has further added to complexity and competition of every metropolitan city. As a result of these social changes, the trend of sending children to day care centers and child development facilities at a much earlier age is gaining rapid grounds. This is equally true for the growing city of Lahore. Parents are very much worried as there are no institutes, which can help children blossom intellectually and emotionally, while having purposeful fun along the way. The Childrens Gym (TCG) would be the very first facility of its kind not only in Lahore but also in Pakistan. So far there are no direct competitors but all the children activity areas in Lahore are indirect competitors of The Childrens Gym. 2.1.1 SWOT ANALYSIS
STRENGTHS

First such facility in Lahore. All childcare facilities under one roof Qualified childcare staff including teachers and administrator, rich in childcare experience State-of-the-art equipment of The Childrens Gym Centrally located premises Market driven service line Quality and affordability of the services Excellent service support to customers (parents) High buying power of the customers No banking support structure available for the services sector Quality human resource in childcare and child education High running costs Huge gap in childcare facility for market the proposal services line. The amount of time of the working parents due to social changes and economic pressures. Parents are already in search of such a facility. More awareness about child development and day care facilities Would be pioneers and trend setters of these services Import duty structures support importing the equipment from outside Pakistan Due to a huge gap, competitors might emerge in the market Temporary and rented premises for such a facility is the biggest threat Monotony in programs and service lines can lead to decline in sales

WEAKNESSES

OPPORTUNITIES

THREATS

2.2 MARKET ANALYSIS This is a pre-project marketing analysis therefore the options mentioned here are not exhaustive. The broad market positioning options should be based on the quality and standard of child development programs and facilities to be offered at The Childrens Gym. Another positioning option can be based on the household income by offering lucrative packages. 2.3 DISTRIBUTION ANAYLSIS The Childrens Gym is a service-based business. Therefore the conventional marketing strategies, require some modifications when applied to services. As services are intangible so a traditional distribution channel does not exist. In fact the second P, Place, takes charge here. This includes outlet (owned or franchised), location, transportation, storage (if any), intermediaries etc. In case of The Childrens Gym, there is no formal distribution channel. The services would be provided initially from one location or outlet to be opened in DHA, Gulberg or Upper Mall (site search in process.) For the smooth flow of activities and services both for parents and administration, the Place is the focal point with ample parking space, no traffic hassle, and hazard free environment both internally and externally. 2.4 FINANCIAL ANAYLSIS The market research indicates that generating revenues would not be a problem as the target market has good purchasing power. But to take hold of the market share before the competitors jump in market is highly recommended.

PART 3 3. 1 MARKETING STRATEGIES AND OBJECTIVES 3.1.1 OBJECTIVE The proposed marketing objectives of The Childrens Gym (TCG) should be: Short Term to establish its repute as a premium place for child development. to embed quality as a basic necessity in every TCG child development service. to create child development awareness amongst the parents in Lahore. to get TCG recognized as a high quality service oriented institute for child development. to set new standards as pioneers imparting quality services for child development in Lahore. Long Term to establish a premium brand name in the child development services to generate reasonable profits while maintains quality. to franchise or to expand to other cities. 3.1.2 STRATEGY The broad marketing thinking would enable the management of TCG to develop services and marketing mix in the right direction, which has to be in synchronization with the overall corporate marketing objective. To achieve the above-mentioned objectives, following strategies are recommended. Develop liaison with A and B class schools e.g. Conduct monthly sessions, workshops for children and their parents especially during summer vacations Design and development of a full throttle marketing campaign to reach the target market Strategic execution of the marketing mix (in the subsequent section, Part 4) Arrange children carnivals twice a year as a promotional tool as well as a money making technique.

3.2 TARGET MARKET TCG will target the workingwomen, the business community having children of age 1.5 years to children of age up to 10 years. The target population consists of married and single (divorced, separated or widows) mothers. The business community would be targeted as potential customers since they too have very little time and are very much involved in their daily and social routines. The average monthly household income of target population should be Rs. 50,000 and above.

PART 4 4.1 MARKETING MIX As services are usually produced and consumed simultaneously, customers are often present in the firms factory production or service area, interacting directly with the firms personnel and are actually part of the service production process. Also, because services are intangible customers will often be looking for any tangible cue to help them understand the nature of the service experience. These facts have led services marketers to conclude that they can use additional variables to communicate with and satisfy their customers. Acknowledgement of the importance of these additional communication variables has led services marketers to adopt the concept of an expanded marketing mix for services such as physical evidence, people and process. 4.1.1 SERVICE /PRODUCT LINE The following is the potential service line of The Childrens Gym (TCG). Toddlers program: This program should be based upon the natural curiosity and energy of toddlers. It should provide them with lots of attention, a variety of appropriate activities, abundant conversation and nurturing. They should be able to practice their motor skills such as rolling over, sitting up, crawling, pulling up, climbing and walking. Such opportunities for multi-sensory play should be provided where toddlers would begin to explore different materials and begin to understand things around them.

2-3 years program: This can be an advance level of the toddlers program. It should include open play (if available) provided it is safe and interesting to learn from nature and their own experiences. Motor skills, drawing/painting, music and rhythmic exercises with physical gymnastics should be the key focus here.

4-5 years program: This program should be designed to provide an enriching environment with activities that enhance child's development in early childhood. It should allow the children to spend busy days engaged in activities that would promote learning. Teachers should incorporate appropriate stimulating materials such as blocks, flash cards, puzzles, games, stories etc.), music and singing of poems all with the goal of enhancing the rapid changes that occur in a child's brain development in this stage of life.

6-7 years program: This program should be an advanced level of the 4-5 years program. But it should additionally include intriguing, captivating and exciting activities that can stimulate early brain development with a lot of fun as they gain strength, balance, coordination, fine and gross motor proficiency, agility, flexibility and social skills. The most important benefit we offer, however, is the building of

confidence

and

self-esteem.

7-10 years program: It is recommended in this program to incorporate reading, writing and learning through play and more fun methods. The facts about the earth, universe, daily science, experiments, general knowledge etc. should be taught here. Moreover, the personal grooming, ethics, civic sense, structured group and team building activities should also be an essential part of this program. All the above-mentioned programs will boost the confidence, self-esteem, imagination and help the child to develop physically, cognitively, intellectually and emotionally. 4.1.2 SERVICE POSITIONING i. A stimulating place which is safe and has supportive environment for children that is affordable, rewarding and accessible.

ii. Healthy mind in a healthy body while building the confidence and self esteem necessary for happy lives. iii. Another positioning strategy can be parents investment in future 4.1.3 PLACE/ DISTRIBUTION CHANNEL As a formal distribution channel is not applicable on TCG. Therefore we recommend direct or company owned channel, as the area of distribution of services is limited. Perhaps, the major benefits of distributing through company owned channel is that the company has complete control over the outlet. One of the most critical implications of this type of control is that the owner can maintain consistency in service provision. With company owned channels, the company owns both the service area and the employees and therefore has complete control over the customer relationship. This would result in favor of TCG, as the most important issue in service delivery is who owns the customer relationship, the company or the employees. 4.1.4 PHYSICAL EVIDENCE The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service. The physical evidence of service includes all of the tangible representations of the service such as brochures, letterheads, business cards, report formats, signage, sign-up forms/ memberships and equipment. In the service industry, physical evidence cues provide excellent opportunities for the firm to send consistent and strong messages regarding the organizations purpose, the intended market segments, and the nature of the service. It really matters when consumers have little on which to judge the actual quality of service they will rely on these cues, just as they rely on the cues provided by the people and the service process.

Similarly TCG has to mark its service quality through the components of physical evidence, such as, the equipment to used by the children, the interior lay out i.e. servicescape, brochures, signage, promotional campaign, website etc. The administration and management of TCG have to emphasize on the servicescape because customers (parents) will rely on it in assessing the quality of children development facility.

4.1.5 PEOPLE All human actors who play a part in service delivery and thus influence the buyers perceptions: namely, the firms personnel, the customers in the service environment. All of the human actors participating in the delivery of a service provide cues to the customer regarding the nature of the service itself. How these people are dressed, their personal appearance, and their attitudes and behaviors all influence the customers perceptions of the service. The service provider or contact person can be very important. In fact, for some services, the provider is the service. Customers not only influence their own service outcomes, but they can influence other customers as well. Customers can influence the quality of service received by others - either enhancing or detracting from other customers experiences. Therefore, the management of the TCG has to be very precise about all the matters concerning the people i.e. human resource, customers (parents), consumers (children), management, administration and suppliers (if any). 4.1.6 PROCESS The actual procedures, mechanisms, and flow of activities by which the service is delivered - the service delivery and operating systems. The actual delivery steps in the customer experiences are the operational flow of the service that also give customers evidence on which to judge the service. These process characteristics are another form of evidence used by the consumer to judge service. From the first step of the customer in TCG till the time he/she comes to pick up the child is the actually delivery flow. The operational flow should be simple, welcoming and hassle free for the parents whereas informative, enjoyable and friendly for the children. The primary process of getting admission in TCG is of great significance; the success of this project depends on this very step. There should not be a waiting queue, lengthy paper work or unfriendly staff in fact the process should be empathic and simple to comply with. 4.1.7 PROMOTION TCG should adopt Pull Strategy that consists of building a reputation with customers through advertising and branding, creating a desire for services, which than can be pulled through the channel of distribution.

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A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. Promotion is an ongoing process that requires a lot of planning. The effectiveness of the planning depends on more than how much money you put into it. Effectiveness results from the thoroughness of your planning and the consistency with which you carry it out.

The seven-step plan is recommended for developing an effective promotional campaign for The Childrens Gym. i. ii. iii. iv. v. vi. vii. Establishing brand identity Developing the Service promotion theme Identifying the target audience Establishing the marketing objectives Developing the message content Choosing the delivery system Evaluation

i. Establishing brand identity Brand identity is what the service or product really is whereas image is how others see. This is an important distinction because how the TCG management views itself may not be how the public comprehends. To manage how others see first TCG has to clarify its identity and then project it in such a strong way that identity and image are the same. To accomplish this step, all the components mentioned above (4.1.1-4.1.6) characteristics including such things as facilities, location, physical evidence, process, persons, price etc should be dealt with skill to show the desired competence of the target market. ii. Developing the Service promotion theme Here we are talking about our USP i.e. Unique Selling Point. Although all the service characteristics make up the brand identity but TCG cannot and should not promote all of these characteristics. There is a need to decide on what part of the brand identity TCG want to promote. This will be the theme for service promotions. While determining the theme the following questions need to be attended: "What is there about TCG (facility) that would be appealing to the visitors?" What can I tell the visitors that would make them want to come and visit TCG?" "What makes TCG (facility) unique?" On the basis of the above, the unique selling point of TCG is that such a facility is unique in it self. No one provides such a variety of development services for children in Pakistan. Therefore, this should be this is the theme of the services promotion campaign of TCG. (Further details in step v) iii. Identifying the target audience

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The target audience or the target market has already been classified in the preceding section (3.2). Therefore the promotional campaign would target the same set of the market segment. TCG can only establish a strong brand name if the message sent is compelling and appropriate for and interesting toits target audience. It should be relevant, and the management should know whom to focus on. iv. Establishing the objectives Please refer to the previous section (3.1.1) for the marketing objectives. v. Developing the message content A lot of communication is based around a product picture or buy this approach, while in case of TCG a combination of informative and persuasive approach is recommended. For TCG (as this is the first of its kind facility) the management should design informative messages to tell people something regardless to their response, in the introduction phase (3 months). Later in the growth stage, TCG should shift to the persuasive approach that will try to convince people to consume the services of TCG for the development of their children. Here again it is advised to use rational persuasion that uses logical arguments based on supportive evidence. This supportive evidence has to come from different sources around the world reports, facts and figures about the usefulness of child development facilities.
M A T U R I T Y D E L I N E

SALES

N T R O D U C T I O N

R O W T H

Informative Advertising

Persuasive Advertising

Reminder a d

Increase Brand loyalty

Increase Awareness

Price and promotion changed to increase life of services

TIME Rational messaging approach has three parts. The first part is the claim of the message. This is what we want people to believe is true about The Childrens Gym facility and service. The second part is the evidence, or facts, that would be used to support the claim. Some recommended claims for the TCG are given below:

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Research has shown that children doing regular physical activity can have improved emotional well-being helps young children feel more confident, happy and relaxed, with improved self esteem and self concept Improved health encourages healthy growth and development of children's bodies Improved mental health improves concentration skills and ability to manage anxiety and stress Enhanced social skills develops skills such as cooperation and teamwork, meeting new people and developing friendships Increased capacity for learning and productivity - active children are generally more motivated and better organized than children who are inactive, and physical activity has direct links to improved learning outcomes Discourage eating meals or snacks while watching TV Encourage family activities that include enjoyable physical activity for everyone Ensure a safe environment for children and their friends to engage in active play, e.g. swimming, cycling, ball sports Decrease the time spent in activities involving sitting, e.g. watching TV, playing video and computer games Children and young people should participate in at least 60 minutes (and up to several hours) of moderate - to vigorous intensity physical activity every day Children and young people should not spend more than 2 hours a day using electronic media for entertainment (e.g. computer games, Internet, TV) The third part is the warrant. The warrant is a general hypothetical statement that ties the evidence and the claim together. It is the "glue" that holds the message together and helps it make sense. For example,

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Do you know Children doing regular physical activity can have improved emotional well-being

Logo of The Childrens Gym

Address and website

The management and the creative people at TCG must also find a style, tone and format for executing the message. All of these elements must deliver a cohesive image and message. vii. Choosing the delivery system This is another critical step in the promotional strategy. The task here is to choose the right advertising media to carry the campaign of The Childrens Gym. The recommendation is a combination of ATL and BTL activities: i. ii. Above the line (ATL) i.e. Billboards, cable advertisement, print media (children magazines) etc. Below the line (BTL) i.e. flyers, brochures, posters at the POP (point of purchase) of other brands where the target market visits.

viii. Evaluation Creating and implementing a promotional strategy can drain resources if regular evaluation is not done. Generally, it is good to wait one year after implementing the strategy to see if it works because promotional effects can be cumulative. But the management should always ready be to make changes. 4.1.8 PROMOTIONAL CAMPAIGN The promotional campaign of The Childrens Gym would be comprised of pre-launch, launch and post-launch campaign.

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Pre-Launch Campaign: (two weeks prior to launch)

1. 2. 3. 4. 5. 6. Activity Outdoor advertisement Electronic media Print media Marketing Public Relationing (MPR) Sales promotion Duration 15 days 07 days Twice Two sessions Medium Billboard x 2 Flyers or Brochures & posters Cable x 3 networks Children magazine Junior schools & TCG Sun shades, bags, sharpeners etc. shirts, stickers, erasers,

Launch & Post Campaign: (opening & two weeks after launch)
1. 2. 3. 4. 5. Activity Outdoor advertisement Electronic media Print media Marketing Public Relationing (MPR) Sales promotion Duration 15 days 23 days Twice Two sessions Medium Billboard x 1 Cable x 3 networks Children magazine Junior schools & TCG Sun shades, bags, shirts, stickers, erasers, sharpeners etc.

a. Outdoor Advertisement In outdoor advertisement, two billboards of 10 x 20 or 15 x 30 depending upon the availability would be procured in the A plus areas of Lahore. The identified A plus areas where the target audience resides are DHA Main Boulevard, Gulberg Main Boulevard, Cavalry Ground, Model Town, and Fortress Stadium. The areas would be identified by the mutual consent of the client and the marketing consultant (advertiser). As the thumb rule the billboards are rented for a minimum of thirty days. Therefore, the billboard campaign would be divided in two phases, fifteen days prior to the launch and fifteen days after the launch. Two flex skins would be changed during this campaign, initially communicating the opening of TCG and later the services and facilities offered. b. Electronic Media Electronic media is an expensive medium of advertisement especially for small enterprises. But at the same time the importance of the electronic medium cannot be denied. Therefore a cost effective solution for advertising on the electronic medium is airing the campaign on the cable networks that air the satellite channels in Lahore e.g. World Call, Nasic Broadband, Sun Multimedia etc. A 30 second ad developed in 3D max (for electronic media) would be aired on the three mentioned cable networks in the prime time i.e. 7:00 pm 10:00 pm. The ad would be creatively designed and developed showing the facilities and the virtual tour of TCG. This would build credibility; as well it will introduce the TCG facilities, programs and services. c. Print Media

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As we are targeting a specific group of people in limited geographical location therefore TCG should be going for a nation wide campaign through newspapers. But two A4 print ads before and repute after the launch in children magazines like Us (The News) and The Young World (Dawn). One A4 ad should also be released after the launch in the children quarterly magazines using cross marketing. For example, Minnie Minors (Bareeze group), Commander Safeguard (P & G), Lifebuoy, NIDO, Milo, Bubble gummers, Bata, Servis, Colgate, Nestle etc. d. Marketing Public Relationing (MPR) Two awareness sessions before and two awareness sessions after the launch should be organized as an MPR tool. The preferable venues for such sessions should be the leading junior schools (where the survey was conducted) of Lahore. The venue can also be the TCG premises as and when required. The sessions should be meant for the parents and the children both. The content should contain informative, educational and enlightening messages that will directly increase the awareness of the child development and indirectly improve the image resulting in better sales. Such sessions should be a regular feature of TCG especially during the summer vacations. Some sessions should be predominantly designed for the parents where the trainers emphasis on the need of proper guidance for children in early childhood. e. Sales promotion Advertising typically acts to build brand loyalty whereas sales promotions yield faster and more measurable results than advertising. Therefore some sales promotion techniques should also support the advertisement campaign of TCG. Sales promotion is about action. It is about stimulating customers to buy a product. It is not designed to be informative a role which suits better to advertising. Sales promotion is commonly referred to as Below the Line promotion. The promotional techniques recommended to use with the pull strategy are: Kinship Coupons The price promotions are not recommended for the newly service facility of TCG but still customers with more children want some kind of discounts. Therefore, a more effective way to play with the parents psychology would be an issuance of kinship coupons for more than two children. The offered discount should not be more than 10-12%. Gift with Purchase The use of gifts, a souvenir etc to motivate test-drives and purchases are a successful phenomenon. It is also known as a premium promotion, in this the customer gets something in addition to the purchase. This type of promotion is widely used with subscription-based products (e.g. magazines) and consumer products. For TCG a similar approach can be established with other brands. Competitions and Prizes Awards, trophys, discounted coupons, etc should be given as prizes to the toppers in the junior schools. This scheme can be implemented with two schools initially. This would increase the sales of TCG indirectly. Frequent User / Loyalty Incentives

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Repeat purchasers may be motivated by frequent user incentives. Perhaps the best way of this is to collaborate with some credit card to offer TCG service facility in the point rewards on concessional rates. Point-of-sale displays Research into customer buying behavior in retail stores and service centers suggests that a significant proportion of purchases results from promotions that customers see in the store or service areas. Therefore attractive, informative and well-positioned point-of-sale displays should be placed in the shops like Anees Book corner, Iqbal Book Corner, Staples, Maqbool Books, Ferozsons, Alif Laila Library, Childrens Complex, Mother Care, Minnie Minors, Mushrooms, Honey beez, The Toy Shop etc.

All the sales promotion techniques can be tiein promotions with other noncompeting brands to save the huge costs of promotions to increase pulling power of the same target market. This will result in broader exposure of TCG services with minimum cost. 4.1.8 PRICE There should be an easy plan for the customers through bank facilitation. This would be keystone of the pricing strategy, as this would enable TCG to increase the number of potential customers. Therefore even if the prices of any service in TCG are high for any parent yet they can pay it through the banking instrument of debit or credit cards. Now a days almost any consumer bank in Pakistan easily installs the card swapping machines for such uses.

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Part 5 MARKETING BUDGETS AND IMPLEMENTATION 5.1 THE MARKETING BUDGET Marketing expenditure varies enormously from business to business and, from market to market. For example, the leading pharmaceutical companies spend around 20% of sales on advertising, whilst businesses such as Honda and Toyota spend less than 1%. An average for fast-moving consumer goods markets (FMCG) is around 8-10% of sales. To implement the marketing plan of TCG on annual basis, budget percentage should be 13% of the posts launch sales. Initially as TCG is in its establishment phase, the marketing budget should be included in the initial fixed costs. For the first year 2007-2008, the amount should not exceed PKR. 2, 50,000/- all the activities mentioned in the marketing mix support this budget recommendation. Later in the second year, this amount can be raised to double or 13% of the total sales (as mentioned earlier). 5.2 IMPLEMENTATION Many good plans fail because they are not implemented correctly. Therefore, every person at TCG should contribute towards successful implementation and achieving of desired marketing objectives.

A proper marketing agency should be hired or a customer relationship manager should be hired to take care and coordinate all the activities of the marketing plan, which is the key to success of The Childrens Gym.

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