4.

0 Financials This section will offer a financial overview of The Discount Pharmacy as it rela tes to the mar etingactivities. The Pharmacy will address brea -even analysis, s ales forecasts, expense forecasts, andhow they lin to the mar eting strategy. 4.1 Brea -even Analysis The brea -even analysis indicates that $72,494 will be needed in monthly revenue to reach thebrea -even point. ($40,000)($30,000)($20,000)($10,000)$0$10,000$20,000$30,000$0 $24,200 $48,400 $7 2,600 $96,800 $121,000 Monthly brea -even point Brea -even point = where line intersects with 0 Brea -even Analysis Table 4.1: Brea -even Analysis Brea -even Analysis:Monthly Units Brea -even 725Monthly Sales Brea -even $72,494 Assumptions:Average Per-Unit Revenue $100.00Average Per-Unit Variable Cost $53.0 0Estimated Monthly Fixed Cost $34,072 The Discount Pharmacy Page 10 4.2 Sales Forecast The first two months will be used to set up the store front and generate both lo cal and nationalvisibility. Month three will be the first month with sales activ ity. During month three through fivethere will be only a small amount of mail or der business. The reason for this is that it will ta e timeto sufficiently devel op visibility regarding the mail order operation. Month six will see a jump insa les activity for mail order and there will be steady growth in sales activity fr om month six on. $0$10,000$20,000$30,000$40,000$50,000$60,000$70,000Jan Feb Mar Apr May Jun Jul A ug Sep Oct Nov Dec Wal -in customersMail order customers Monthly Sales Forecast Table 4.2: Sales Forecast Sales ForecastSales 2001 2002 2003Wal -in customers $183,056 $743,778 $843,540Ma il order customers $176,994 $976,543 $1,234,654Total Sales $360,050 $1,720,321 $ 2,078,194Direct Cost of Sales 2001 2002 2003Wal -in customers $111,664 $453,705 $514,559Mail order customers $79,647 $439,444 $555,594Subtotal Cost of Sales $19 1,311 $893,149 $1,070,154 The Discount Pharmacy Page 11 4.3 Expense Forecast Mar eting expenses are to be budgeted so they ramp up quarterly. These intervals are chosenbecause they are the common intervals that people who are buying seve ral months of medicationat once use. $0$1,000$2,000$3,000$4,000$5,000$6,000Jan Feb Mar Apr May Jun Jul Aug Sep Oct No v Dec Oregonian advertisingAARP advertising Monthly Expense Budget Table 4.3: Mar eting Expense Budget Mar eting Expense Budget 2001 2002 2003Oregonian advertising $8,200 $20,000 $30, 000AARP advertising $47,000 $55,000 $65,000------------ ------------ -----------Total Sales and Mar eting Expenses $55,200 $75,000 $95,000Percent of Sales 15.3 3% 4.36% 4.57%Contribution Margin $113,539 $752,172 $913,040Contribution Margin / Sales 31.53% 43.72% 43.93% The Discount Pharmacy Page 12 5.0 Controls

The purpose of the mar eting plan is to serve as a guide to the organization. Th e following areaswill be monitored to gauge performance: Revenue: monthly and annual . Expenses: monthly and annual. Repeat business. Customer satisfaction. 5.1 Implementation The following milestones identify the ey mar eting programs. It is important to accomplish eachone on time and on budget. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMar eting plan completionBi-annua l Oregonian campaignBi-annual AARP campaignBi-annual Oregonian campaignBi-annual AARP campaign Milestones Table 5.1: Milestones Milestones PlanMilestone Start Date End Date Budget Manager DepartmentMar eting plan completion 1/1/01 2/1/01 JohnBi-annual Oregonian campaign 1/1/01 6/31/01 $4 ,200 JohnBi-annual AARP campaign 1/1/01 6/31/01 $4,200 JohnBi-annual Oregonian c ampaign 7/1/01 12/31/01 $4,000 JohnBi-annual AARP campaign 7/1/01 12/31/01 $4,00 0 JohnTotals $16,400 The Discount Pharmacy Page 13

5.2 Mar eting Organization The Discount Pharmacy's owner, John Unforseea, will be primarily responsible for the mar etingactivities. John will rely on an outside firm for assistance with the creative wor . 5.3 Contingency Planning Difficulties and ris s: Problems generating visibility. Difficulty developing sufficient demand. An entry into mail order mar et from an already established, larger pharmacy. Worst case ris s include: Determining that the business cannot support itself. Having to liquidate equipment to c over liabilities. The Discount Pharmacy Page 14 Table 4.2 Sales Forecast Sales Forecast PlanSales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecWal -in customers $0 $0 $8,765 $10,987 $12,554 $16,776 $18,443 $20,001 $21,332 $22,343 $ 25,311 $26,544Mail order customers $0 $0 $2,245 $5,543 $6,543 $12,334 $15,454 $1 9,877 $23,556 $26,776 $30,112 $34,554Total Sales $0 $0 $11,010 $16,530 $19,097 $ 29,110 $33,897 $39,878 $44,888 $49,119 $55,423 $61,098Direct Cost of Sales Jan F eb Mar Apr May Jun Jul Aug Sep Oct Nov DecWal -in customers $0 $0 $5,347 $6,702 $7,658 $10,233 $11,250 $12,201 $13,013 $13,629 $15,440 $16,192Mail order custome rs $0 $0 $1,010 $2,494 $2,944 $5,550 $6,954 $8,945 $10,600 $12,049 $13,550 $15,5 49Subtotal Cost of Sales $0 $0 $6,357 $9,196 $10,602 $15,784 $18,205 $21,145 $23 ,613 $25,678 $28,990 $31,741 Appendix: The Discount Pharmacy Page 1 Leave a Comment