Business plan: marketing strategy

By Lynne Franks

Lynne Franks talks about including a marketing strategy in your business plan.

What are you selling and to whom?

The section of your business plan that covers marketing should precisely define your products or services, and your customers. You may think you know exactly what these aspects of your enterprise consist of, but a fresh, close examination of what you're selling and to whom is always beneficial.

Perhaps your vision is of a health food shop, but are you really certain what types of food you're going to sell? Will you include fresh fruit and vegetables? What about bread and dairy products? Will you also sell vitamins and cosmetics? Is there a shop in your area that's already selling health food? If so, how is yours going to be different? Who is your store specifically aimed at?

You need to include a full explanation of your offer together with the market you are aiming at. Give your assessment of your market, whether it's growing or stagnant, and what competition is out there. Get out all your research on your product or service, and use it to write this section of your business plan. Then define your specific customer, incorporating all the appropriate lifestyle information about them.

If you're thinking of opening an exclusive women's spa, for example, you could be aiming your business at the following potential customers:

Women aged between 25 and 25, mostly professional workers with disposable income, a high rent or mortgage, who eat out three times a week. They tend to join clubs, want to feel special, and read Vogue, Marie Claire, and Elle. They don't watch much TV but do surf the Net; they spend a lot of money on fashion and beauty, read books, and like to think they are organic. They are mostly single, and earn upward of #35,000 a year.

In a more general sense, they are a growing market of independent working women, who are not impressed with old-fashioned, aspirational advertising, are very health orientated, don't wear heavy make-up, and exercise at least twice a week. This is all hypothetical of course. But it gives you an idea of how to analyse your potential client or customer and her lifestyle. The more specific and accurate your analysis, the more impressed with your thoroughness and expertise your potential investors will be. It will also help you tremendously when strategising your communication plan.