A marketing plan is a written document that serves as a guide and outline of how a company intends to grow in the marketplace and win against the competition. The marketing plan is usually formulated annually, but results are reviewed monthly with major business reviews done quarterly on what worked versus what did not work.
While there is no standard format, the marketing plan must be focused, and the issues and activities must be clear. It has to gather data from external and internal sources and must look at problems, pain points, and opportunities.
Table below shows a typical marketing plan format. If you are a neophyte or a student, follow the mini marketing plan format first in the next section so you will not be overwhelmed preparing an entire marketing plan. Then work backward to complete the entire marketing plan as you gain more experience.
Typical Marketing Plan Format
| Section | What does it cover / include? |
| Executive Summary | A brief overview of the marketing plan and its contents |
| Business Review | Outline of the historical performance of the businessWhat worked and why vs. what didn’t work and why not |
| Environment Analysis | Market Trends: Identify changes in the external environment and what it means to your brand; offer a direction to either exploit an opportunity or neutralize a threat.PESTLE Trends (political, economic, social, technological, legal, environmental)Industry Situation (rivalry among competition, bargaining power of suppliers and customers, threat of new entrants, threat of substitutes)Competitive situation |
| SWOT Analysis | What are Strengths that can be used to outperform competition?What are Weaknesses that must be neutralized to improve efficiency and effectiveness?What are Opportunities that can be used to create gain or advantage?What are the Threats that must be negated or made irrelevant to protect gains and profit? |
| Company Priorities | Business objectives are precise and measurable paths a business will need to take to achieve its goal. This affects the entire company. Marketing objectives are typically subordinate to business objectives. This covers the specific ways marketing contributes toward the overall business objectives. |
| Marketing Strategy and Positioning | An outline of the recommended marketing mix that will help a brand or business attain the marketing goal. This includes communicating the overall positive impression of a brand relative to competition |
| Financial and Budgeting | The financial expenses for the current year, compared with previous years and its percentage of the agreed sales target. |
| Execution Plan / Guide | Information on how the marketing plan will be implemented; includes brand mandatories, key tasks, team members and responsibilities. |
| Scenarios and Contingency Plan | Potential moves of key business participants (suppliers, key customers, government, etc.) and competitors that may need a response from your brand. |
Mini Marketing Plan
For beginners, it is suggested to practice with a mini or shortened version of a marketing plan, instead of being overwhelmed with so many details. For a shortened version of a mini marketing plan, please consider the following format:
- Marketing objectives
- Situations (Problems, Opportunities, Threats)
- Marketing strategies and tactics that solve situations above
- Estimated cost of strategy vs. marketing objectives
As an example, consider this background: Bioderm is a germicidal soap brand manufactured by Cebu-based International Pharmaceutical Inc. or IPI. IPI is the same company that manufactures Efficascent Oil, Omega Pain Killers, Bronco Rub, Casino Alcohol, among many other popular products. Back in 2014, IPI discovered that Bioderm has over 80% total awareness level (an opportunity that could have been exploited). However, the high awareness did not translate to trial and usage in the bath soap category (problem to be solved) with Safeguard dominating and owning over half of the total market shares. Safeguard also had high affinity and unmatched credibility among Filipinos (threat that needs to be negated).
As part of their marketing strategy and positioning, Bioderm did the following:
I. Phase 1:
- Product: Launched a reformulated variant with cooling sensation to create a different level of product use experience.
- Positioning: Level up the “Ligo” (bath) experience.
- Credibility: Tapped key opinion leaders to build trust and relevance and to create impact among consumers. In Luzon, they had TV personality Kim Atienza and in Mindanao, it was Sara Duterte, then Mayor of Davao City.
- Story: Capitalized on its existing user base, millions of users who are satisfied and trusted the brand. The distinct product experience of Bioderm extends even after bathing, setting a standard in germicidal soaps among its users, positioning Bioderm as a game changer.
II. Phase 2: As the trial level continued to grow, Bioderm benefited with high retention rates because of its value proposition: cooling benefit along with its germ protection attribute. Some feedback from consumers are listed below:
- Bioderm Coolness: “Nakaka-excite maligo ‘pag naaamoy ko sa banyo at sobrang lamig sa pakiramdam habang naliligo. Feeling refreshed ang body at mind ko.” (I feel excited to take a bath especially when I smell the soap in my bathroom; I also feel very cool after my bath, my body and mind feeling refreshed.)
- Bioderm Bloom: “Bukod sa mabango, hindi nakaka-dry sa skin, yung malambot ang feeling sa balat at hiyang din sa kids ko.” (Besides smelling good, it doesn’t dry the skin. It gives the skin a feeling softness which also suits my kids.)
- Bioderm Freshen: “Natanggal nya yung dumi at pawis ng aking balat kaya presko na ang aking pakiramdam. Tumatagal ang bango.” (It removes dirt and sweat from my skin so I feel fresh. The fresh smell also lasts.)
The sales revenue of Bioderm went up by over 500% in six years with a cost to sales ratio of 5%, giving consumers more with every “ligo” (bath) and every “hugas” (wash).
4Ss to Evaluate Marketing Plan Formulation
The marketing plan can change over time. However, all marketing plans must be able to meet four basic criteria to be considered a diligently thought-out marketing plan. It is important for marketers to consider the 4Ss in formulating marketing plans, as follows:
- Sufficient – Will the planned marketing strategies and tactics attain our marketing objectives and goals?
- Synchronized – Were the relationships of each element of the marketing mix considered to produce the desired outcome?
- Selective – Have we considered as many potential combinations of the marketing mix as possible that can optimize results?
- Sustainable – Is the plan going to survive competitive attacks or constraints like government and supply barriers?
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Josiah Go, Chiqui Escareal-Go, and RG Gabunada are co-authors of the book Marketing for Beginners: Start Strong, Succeed Fast, which is currently the number one marketing book in the Philippines and features around 500 local examples. The book, which broke all-time launch sales records in the country, is available at National Book Store nationwide. Additionally, 12 award-winning marketing experts, including the trio, will be presenting at the How to Create a Strategic Marketing Plan nationwide webinar on September 24-25, 2024. For more details, email info@mansmith.net.
