Philippine College of Northwestern Luzon

Bachelor of Science in Business Administration

Submitted by:

Joanna Marie A. Lopez

Submitted to:

Dr. Alfredo Durante

 MARKETING PLAN

EXECUTIVE SUMMARY:

JM Bookstore is a retail store specializing in workbooks, educational

games, teaching aids, school supplies and many others. It primary costumers
are teachers who wants additional resources for the classroom and teaching
aids for their students. And also parents seeking educational resources to
supplement their children learning in school and during the month of May to
June they start buying school supplies for their children. Also students who
want to buy materials for their project in school. It’s best selling products
includes includes workbooks, science experiment, classroom, decorations
such as bulletin board art and posters. The store has been in operation since
2005. For the first three years of its operation, the store has exceeded its
revenue projections. The business is expected to post its first profit for the
year 2008. to achieve its sales, the store has relied primarily on
recommendations among teachers and weekly advertisements in the local
newspapers. Because the store has little direct competition, it has been able to
maintain an average 48% gross margin avoiding price reduction except to
clear out seasonal items. The retail space adjacent to JM bookstore became
vacant in February 2010, when the jewelry store occupying the space
relocated this vacancy presents an attractive opportunity, given the strong
sales. JM bookstore has experience within minimal advertising. The
remainder of this marketing plan details how the owners intend to take
advantage of this feasible expansion opportunity. In response to the
opportunity presented by a vacancy in the retail space next door. The store
seeks to expand in year 2010. Technical Aspect Expanding into the existing
space will increase square footage by approximately 80%. The space from the
expansion would be used to provide a much broader selection of educational
toys and games. This product selection of mix is designed to generate more
sales among “active parents”. In addition to draw more active parents into the
store, JM bookstore plans to increase its budget foe marketing
communications. The additional funds would be used to double the frequency
of advertising and to sponsor public relations activities such as speakers at the
public library. The owner will be responsible for implementing this plans
which calls for opening the new space by July 15, 2010. Success will be
measure in items of meeting the schedule and achieving the sales and profit
objectives.
CURRENT MARKETING SITUATION AND DEMAND ANALYSIS

The target market for the store has been teachers working with in 20
mile radius of the store and active parents living with in a 10 mile radius. By
active parents, we mean parents who devote a relatively great amount of time
and money to their children’s growth and development. Active parents are the
target market for the stores planned expansion, not only they are interested in
the kinds of products sold by JM Bookstore, they are willing to spend heavily
on such products. They tend to be less budget conscious than the teachers
who shop at the store.

Baguio is middle to upper class community of mostly professionals.

With Saint Louis University and other Universities and many research
oriented employers nearby, the people of this community place high value on
learning and education. A major environmental opportunity is that this area is
a strong supporter of educational resources for parents and teachers. We
believe that we have only begun to tap the demand for the types of products
we sell. Our sales have so far been limited by small budget for advertising and
public relations, as well as space constraints that prevent us from stocking as
broad a selection as would interest most costumers. The focus will be on top-
quality, high-margin items that are hard to find.

We do not expect major competition from new stores over the near
term. Because Educational Resources has operated for ten years without
expanding or even, to all appearances, updating its interior. We believe that
aggressive expansion is not in its owner’s plan. Thus, the major sources of
competition for JM bookstore are other types of retailers and big companies
of educational products. Despite this environmental threats, we believe that
our major strengths – the year- round availability of the store and the
expertise of the owners and sales staff.
 Revenue and Expense for a person of 4 years

2005 2006 2007 2008

SALES REVENEU P 86000 P 177000 P 232000 P 321000
EXPENSES:
COST OF GOODS SOLD P 44000 P 94000 P 119000 P 165000
ADMINISTRATIVE COSTS P 5000 P 2000 P 2000 P 3000
SALARIES P 50000 P 66000 P 68000 P 84000
RENT AND UTILITIES P 20000 P 21000 P 22000 P 40000
ADVERTISING AND PR P 1500 P 1500 P 2000 P 7000
OTHER EXPENSES P 1000 P 1500 P 1500 P 2000
INCOME BEFORE TAXES (P 35000) (P 9000) (P 7500) P 20000

THREATS AND OPPURTUNITY ANALYSIS:

JM bookstore sells to parents, teachers and student. By offering teachers a free

subscription to a company-produced, two –page monthly news letter, the store can identify
which sales to go which category of buyers. The marketing plan targets its expansion
efforts at parents. Thus, sales to teachers are expected to follow the historical trend of
increasing at an average of 5% per year. We anticipate that more intensive communications
will live to approximately 45% increase in sales to parents.

OBJECTIVES:

Our objective is to achieve 50% increase in sales by the end of year 2010. The
increase is to be achieving by expanding the total square footage of the store to include the
vacant space next door, for a total of 200 square feet. The increase in sales is to be
measured on monthly basis in comparison to the previous year. In spite of the cost
associated with increase size, we intend to keep our profit margin above 6% in year 2010.
we seek to return to our current pretax profit margin of 7.5% by the end of 2011.
MARKETING STRATEGY:

To attract the target market, JM bookstore will use most of the

additional space to expand its offerings of educational toys and games. The
strategy to build revenues depends on increasing sales among parents and
teachers who visit the store and attracting more customers who live with in a
10 mile radius. The primary means of increasing sale among current costumes
is the expanded products line. To attract new costumers, we will rely on
several types of communications. First, we will increase the frequency of
display advertisements, to build awareness; each ad will feature a different
product line available at the store. To supplement these regular
communications activities, the store will seek to take advantage of other
opportunities to receive publicity. This will include events at the store, such
as writing contest among students.

BUDGETS:

MARKETING EXPENSES
SALES STAFF P 40000
ADVERTISING, NEWSPAPER P 7000
SEMINAR SPEAKERS P 500
OTHERS P 300
TOTAL MARKETING EXPENSES P 47800
COST FOR ADDITIONAL SPACE
PREPARATION OF SPACE P 30000
ADDITIONAL RENT AND UTILITIES P 18000
P 1500 PER MONTH
P 48000

The budget of this marketing plan has shown above. The additional sale
person would cost p 20000 per year, bringing the total cost for sale staff to p
40000. The additional communication expenses would be P 4000 bringing the
total budget for promotion to P 7000. The total cost to expand into the new
location is P30000, to prepare the space plus an additional P 1500 per month
in rent and utilities.
IMPLEMENTATION AND CONTROL:

The owners of JM bookstore will be responsible for implementing this

marketing plan. The time able for implementing the plan involves occupying
the new space by June 1, 2010 and opening for business there by August 15,
2010. We expect to achieve 50% increase in sales by the end of May 31,
2011. Success in carrying out this plan will be measured in terms of
completing activities according to the schedule in meeting to objectives of
plan. If cost should be higher the projected, our contingency plan is to
proceed as long as we can keep cost with in 15% of the projected amount.
This will delay our ability to profit from expansion until year 2011. If the
adjacent retail size of the store at the present time end to reevaluate the mix of
products offered in the current stores. We may be able to increase sales and
profits by replacing some current offering with more of the kinds we are
planning to sell in the additional space. In adjusting the product mix, we will
avoid changing in ways that detract from fulfilling our mission of serving
teachers as well as parents in their efforts to promote learning.