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Business Plan: Marketing & Risk

Marketing plan, risk assessment, and contingency planning for the business venture.

Notes

Business Plan: Marketing & Risk

Class 12 CBSE Entrepreneurship — Unit 2: Entrepreneurial Planning

The Marketing Plan — Introduction

Ray Kroc, president of McDonald's, did not invent or improve the hamburger; he invented a new way of marketing hamburgers. Kroc's marketing strategy focused on: (1) rigidly following McDonald brothers' original recipes, (2) rigidly ensuring every customer got an identical product. MANY GREAT FORTUNES HAVE BEEN BASED ON A SINGLE MARKETING INSIGHT.

The marketing plan goes beyond production, describing market conditions and strategies for how products/services will be distributed, priced, and promoted. It's a guideline for marketing objectives, strategies, and activities — a significant element in the business plan establishing how the entrepreneur will compete.

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An annual marketing plan should be prepared to adapt to the changing environment.

Where have we been?

History of the marketplace, marketing strengths and weaknesses, market opportunities and threats.

Where do we want to go?

Marketing objectives and goals for the next 12 months.

How do we get there?

Specific marketing strategy implementation, when it will occur, who will be responsible for monitoring.

Steps in Preparing the Marketing Plan

Step 1: Business Situation Analysis

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“Where have we been?” For a new venture, focus shifts to:

  • (a) Entrepreneur's personal profile
  • (b) Emphasis on product development
  • (c) What 'need' it satisfies
  • (d) Any other enterprise/experience
  • (e) Any planned market segmentation

SWOT Analysis

Helpful → Harmful
Internal
External
Helpful
Harmful
Real Example — Amul's SWOT: Strengths:India's largest dairy brand, 3.6 million farmer members, iconic "Amul Girl" advertising (since 1966). Weaknesses: Dependency on milk procurement in Gujarat, limited international presence. Opportunities: Growing demand for packaged dairy, protein-rich products, export markets. Threats:Competition from Mother Dairy and Nestlé, fluctuating milk prices, climate impact on cattle productivity. Amul's leadership uses this exact SWOT framework to plan strategy every year.

The 4 Ps of Marketing Strategy

Product

  • What to offer?
  • Features and quality
  • Branding and packaging
  • USP and differentiation

Price

  • Pricing strategy
  • Cost-based vs value-based
  • Discounts and offers
  • Competitive positioning

Promotion

  • Personal selling
  • Advertising
  • Direct marketing
  • Publicity and PR
  • Telemarketing
  • Special events
  • Internet marketing

Place

  • Distribution channels
  • Coverage
  • Logistics and inventory
  • Online vs offline presence
  1. Users / consumers of the product
  2. Various types of promotion and advertising
  3. Features of product that provide competitive advantage
  4. Pricing and its relation to competitors
  5. Attitudes and trends of consumers
  6. Distribution channels
  7. Position and nature of nearest competitors
  8. Differentiation from similar products
  9. Various strategies and techniques
  10. Sales objectives and goals
  11. Strengths and weaknesses of the plan
  12. Internal capabilities and production capability
Real Example — Amul's 4 Ps: Product: Milk, butter, cheese, ice cream, ghee — 50+ products under one brand with the iconic Amul Girl as identity. Price: Affordable pricing for mass Indian market; Amul Butter at ₹50/100g competes directly with private labels. Place: 10 lakh+ retail outlets, 6,000+ exclusive Amul parlors, e-commerce via AmulShop.com. Promotion:The "Amul Girl" topical ads — running since 1966, the longest-running outdoor advertising campaign in the world. Amul spends only 1% of revenue on advertising vs 10-12% by competitors — proving that creative marketing trumps big budgets.

Assessment of Risk and Appendix

Hazards, risks, obstacles are always present. In a business plan, the entrepreneur should: (1) Identify potential hazards, (2) Develop alternative strategies to prevent, minimize, or respond to the risk.

Appendix includes:

  • a) Letters from customers, distributors, etc.
  • b) Primary or secondary research data
  • c) Copies of contracts, agreements, price lists

Businesses sometimes fail due to inability to plan effectively. Intelligent planning is possible with commitment and expert support.

Key Takeaways

Key Takeaways

  • The marketing plan describes market conditions and strategies for distribution, pricing, and promotion. It establishes how the entrepreneur will compete.
  • The marketing planning triad answers three questions: Where have we been? (history), Where do we want to go? (goals), How do we get there? (strategy).
  • Six steps in preparing a marketing plan: Business Situation Analysis, Identify Target Market, Conduct SWOT Analysis, Establish Goals, Define Marketing Strategy (4 Ps), Implementation and Monitoring.
  • SWOT analysis examines Strengths (internal, helpful), Weaknesses (internal, harmful), Opportunities (external, helpful), and Threats (external, harmful) to the venture.
  • The 4 Ps of Marketing Strategy are: Product (features, branding, USP), Price (pricing strategy, competitive positioning), Promotion (advertising, PR, internet marketing), and Place (distribution channels, logistics).
  • The entrepreneur must identify potential hazards and develop alternative strategies to prevent, minimize, or respond to risks. The appendix supports the plan with letters, research data, and contracts.
  • An annual marketing plan should be prepared to adapt to the changing environment. Intelligent planning with commitment and expert support reduces the odds of failure.