SELF EMPOWERMENT THROUGH HOME ELECTRICITY GENERATION

Preamble

1. To overcome electricity crisis in Pakistan, local community (domestic users & small
businesses mostly retail) be empowered through production of electricity on their own at
their premises in the range of 500 Watts to 10,000 Watts per hour during day time (using
solar thermal) and Natural Gas/burning sources during cloudy days and at night times.

2. The aforementioned objectives shall be accomplished through the introduction of an

indigenous electrical generation unit assembled with a Stirling Engine.

Background

3. In the wake of recent electrical crisis in Pakistan which has severally struck the
industrial and domestic sectors in the country, it is felt that there is a dire need for
empowerment of communities (domestic users) to enable them to look/tap natural
resources available in abundance and harness them for the production of electricity.

Objectives

4. Project has following objectives:-

a. Develop 11 different prototype Stirling Engines capable of running electrical

generator assembly given hereunder respectively:-

i. 500 Watts electrical generator assembly

ii. 1000 Watts electrical generator assembly
iii. 2000 Watts electrical generator assembly
iv. 3000 Watts electrical generator assembly
v. 4000 Watts electrical generator assembly
vi. 5000 Watts electrical generator assembly
vii. 6000 Watts electrical generator assembly
viii. 7000 Watts electrical generator assembly
ix. 8000 Watts electrical generator assembly
x. 9000 Watts electrical generator assembly
xi. 10,000 Watts electrical generator assembly

b. Units described in para “a” supra should document all data required for their
industrial production. Such data would include but not limited to Stirling Engine
designs, rpm, materials data, assembly, operation, safety, over run/under run
(revolutions per minute) protection, detailed costing, assembly time and life
cycle.

Benefits and Outcome

5. As prevalent in Pakistan, it is envisaged that after first launch the product shall be
copied by competitors and launched under different brand names. This issue has serious
implications:-
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 a. Help educate Pakistani market / Technical professiona/domestic consumers
towards a new (so called) technology and shift their attention to other
renewable technologies feasible for Pakistan
b. Our brand shall not become obsolete as long as we assure quality and
productivity. At-least our company can sweep the market at first launch of
the product.

Marketing Strategy

6. Target Market – Our target market ranges from poor household to prosperous
Pakistanis. The ranges we plan to offer cater simultaneously for the entire market ranging
from an average household to a retailer to SMEs.

7. Advertizing – The product shall be advertized in national dailies and periodicals using
print media and electronically on at-least 5 major channels for a period of 2 months.

8. Distribution – The product shall be distributed through Merchant/Trade associations

in Lahore-Karachi-Faisalabad and Rawalpindi Islamabad and franchise offices/dealers shall
be called for upon demand. Additionally, a local warehouse shall be maintained at
company’s head office to offer sales in far flung / rural areas.

9. Sales Strategy-- An internet presence shall also be maintained through a dynamic

interactive web site which shall carry online purchase facilities. Marketing shall be carried by
division/category as under:-

a. Institutional Sales; SMEs; the manufacturing sector

b. Public Institutional Sales such as Hospitals, Schools, Clinics, Clubs etc

c. Retail Sales such as Shops

d. Domestic Sales home consumer

e. Corporate Sector such as business offices

f. Internet Sales

g. Marketing through brochures using email to target customers

10. Special brochures/product fact sheets shall be developed for the above customers
and if permitted by financial position of the company a relaxed payment plan shall also be
offered for public institutional sales and discount plan for bulk sales.

11. Pricing—It is assumed that the product under question shall carry minimum cost and
beat all competitors in terms of capital cost, operational cost, maintenance
schedules/expenditures and ease of use. The product shall carry customer convenience
features as offered by use of UPS and electrical generators of the same range.

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12. Competitors—the competitors are Electrical Generator, Suppliers/Manufacturers,
UPS Manufacturers & Suppliers, Battery Manufacturers & Suppliers.

13. Sales Volume-- It is estimated that at-least 50, 000 units shall be sold at first launch.
The estimation based on the fact that there are at-least 1,000 shops in each city which
would offer our product and if each shop buys 10 units (1 of each (500—10,000 Watts) the
result is 1,000 x 4 x 10 = 40,000 units in total and 10,000 units for SMEs and public
institution sales as depicted in para 9 ante.

14. Profits—Since this project has manifold objectives which includes education of
Pakistani markets/Technical professional/Other consumers, the profits are kept @ 10% of
net cost of the product.

Partnerships

15. Considering the utility of the project, it is advisable to collaborate with Alternate
Energy Development Board (AEDB) Pakistan in Islamabad and any Oil Marketing Company
such as Shell, Total, PSO etc and WAPDA, Government of Pakistan.

Product Development Strategy

16. The product shall be developed in four parts:-

a. 500-10,000 Watts capacity AC Alternator. This can be either

manufactured/assembled locally or imported from China or elsewhere at
most competitive prices.

b. Stirling Engine (Solar Themal / Natural Gas / Dia / Furnace Oil / Stove / Candle
etc fired) capable of producing required torque and RPM to run 500-10,000
Watts capacity alternator with over/under protection of (RPMs) and
automatic on/off switching in case of grid connectivity

c. Assembly / Integration of parts a & b supra

d. Packaging with installation/instructions manual

e. Integration of Solar Dish (for Solar Thermal) and a DC Battery are optional
and additional components which may be bought at additional cost.

Product Development Approach

17. It is suggested that a small team of following personnel be constituted to undertake

the required tasks:-

a. Project Manager

b. Mechanical Engineer

c. Electrical Engineer

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 d. Electronics Engineer

e. Industrial Engineer

Project Capital Cost

18. The minimum cost is estimated @ Rs. 200,000 for the design, manufacturing,
assembly and capital purchases for the fulfillment of objectives as listed in para 4 ante. This
cost is based on voluntary services of personnel given in para 17 ante.

Project Data

19. Data regarding initial design of both AC Alternator and allied components and
designing & manufacturing of a Stirling Engine are widely available on internet and can be
used to reach a commercial design. The initial sites which can be referred to for self
education are:-

http://en.wikipedia.org/wiki/Stirling_engine

http://en.wikipedia.org/wiki/Alternator

http://www.businessballs.com/career-planner-template.htm

http://www.mindtools.com/

Time Frame

20. Provided the availability of funds 1 months time would be sufficient to materialize
the objectives in para 4 ante.

Salvage Value

21. If everything goes wrong in the plan and project is failed then the salvage value of
the equipment purchased stands at the 50% of the invested amount. Therefore, a complete
lost would still result in 50% recovery of the invested amount.

22. If Electricity crisis are over in Pakistan ( I pray that this happens overnight) still the
operational cost of our products present an advantage over Grid electricity and hence, the
market would be still there.

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 CAREER/NEW BUSINESS PLANNER TEMPLATE

1. People who are successful and happy usually work at something they love.

2. We rarely achieve great happiness and success working at what we dislike.

3. Also, what we love doing we often do very well. In turn we love it more because we
are very good at it.

4. These inter-related 'secrets' of success are often overlooked, as many people find
themselves doing work which they dislike, or even starting a business which they will
not enjoy.

Often through necessity our work is  

not our ideal choice, but there are
many times when we can choose a
new direction, or maybe start a new enjoyment, effort,
part-time venture while keeping the passion, natural determination,
'day-job'. Through life we have more inclination, and practice,
opportunity to choose a new or love of something knowledge, and
additional direction than we might → experience ↓
realise. Sticking to habits or the ↑ reward, ← expertise,
expectations of others can prevent satisfaction, quality,
discovering greater success and independence, reputation, value,
fulfilment. and free choice and efficiency

If you want to make a change, consider

this model.

Being good at something enables high quality results to be produced for customers - in a
way that competitors have trouble beating. When we excel and work hard at something we
inevitably become better at it. We develop expertise and specialisms. We innovate and
create. Making constant improvements in work or business happens much easier when we
enjoy and love what we do.

This effect enables many people to build successful businesses around their hobbies or
passions. If you build a career or new business plans around a personal passion, or an
activity or interest that you love, you will tend automatically to harness several vital
elements for success:

1. you will work very hard and be determined and persistent

2. you will constantly improve your skills and knowledge, which will improve your
product/service quality
3. you will have a smile on your face, and your enthusiasm will transfer to staff,
customers, suppliers, supporters, etc
4. you will quickly build a strong reputation - especially for reliability and quality

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 5. you will treat mistakes and failures as lessons learned and challenges to be met -
instead of obstacles and problems
6. you will keep up to date with trends, and you will increasingly lead new trends
7. you will build competitive advantage - especially in quality, customer service and
value
8. you will be efficient and so make profits easier
9. you will be happy in your work - which helps sustain success and life-balance

These principles underpin the processes and template below.

Process and Template Purpose

These process and template methods are designed to help identify, plan and achieve a
career or business, for example:

1. starting a career, after school or college

2. career new direction and/or change
3. new business start-up
4. buying a business or franchise
5. starting a part-time business or second job
6. or becoming self-employed or freelance

The tool and process are for people facing or seeking a career change, especially a move
into self-employment or starting up their own new business. Redundancy, for example, or
losing a job for other reasons, is a difficult experience, yet can offer a great chance to find a
new and better direction.

The materials and methods can also be used with groups of people seeking career change,
direction, or help with planning self-employment or new business start-up. The ideas could
be helpful to you if you've googled search terms such as:

1. career planner
2. find my ideal business
3. career plans template
4. find the right job for me
5. find my ideal career
6. decide my career
7. what's my my ideal job?
8. decide a new business direction
9. business start-up process tips
10. achieve success and happiness

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 11. be happy in my work
12. start a new (whatever) business - the 'whatever' being your passion
13. be my own boss
14. fresh start after redundancy

Passion to Profit Planner

The exercise is not a substitute for conventional 'outplacement' counselling and training
support, or for new business planning.

It's an additional (quick and early) planning tool - perhaps to open more possibilities - which
for some people is helpful beyond traditional career advice, or complex business plans, since
it focuses on making the most of your own passions and strengths, rather than being
influenced by the job market or other market pressures.

The process also enables more creative ideas and possibilities than are normally encouraged
in traditional business planning.

Here is a quick simple outline of the process and template:

1   2   3   4   5   6
your + your + some  + shape it all + time to = your new
passion strengths research into grow career or
or and your something and business, your
passions preferred that people develop independence
working want and security
style

Here is the process explanation in more detail.

New Career/Business Planner - Basic Principles

1. You will be successful and happy at work if your work is built on your own strengths
and passions.
2. Successful self-employment or freelance work is ideally based on your own personal
strengths and passions too.
3. So too would a successful new start-up businesses, if that's what you'd like to do.
4. On the other hand, conventional miserable employment tends to be built on
received or inherited or conditioned ideas of what work should be: the need to get a
job, any job; the obligation to pursue aspirations of parents or other authority
figures; the reluctance to or fear of change; and habits of lifestyle, social circles,
spending patterns, etc., which constrain personal freedom and thinking.
5. Employment is traditionally considered (and advocated by parents and teachers, etc)
to be safer and more secure than self-employment and running your own business.
Usually it's not, especially today. Being in control of your own work as a supplier or
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 freelancer, or running your own business, is commonly the most reliable way to earn
a living and build financial security and confidence.
6. Whether you pursue your career through employment or self-employment or by
starting your own business, the vital change is to see yourself as - and act like - a
supplier, fulfilling a function which makes use of your passion(s) and strength(s).

This process seeks to:

1. Suggest a more satisfying idea of what work is and can be.

2. Reduce or eliminate dependence upon an employer for work and financial security.
3. Offer a path - in achievable stages - away from miserable unsatisfying employment,
especially if required due to redundancy or an unacceptable work situation (stress,
travel, life-balance, or the simple need to be happier, etc).
4. Encourage and enable self-determination, self-reliance, and independence.

For the purposes of this exercise, 'passions' are the things you love and enjoy, and typically
that you are naturally good at too. 'Strengths' are your working and thinking styles - for
example whether you are good with people or not; whether you are good with numbers, or
machines, or processes; whether you are a logical or an intuitive thinker, etc. You will know
your passions. The Multiple Intelligences Self-Test and the VAK Self-Test can help to confirm
your natural strengths and preferred thinking and working styles. There is some overlap
between passions and strengths, but essentially passions will tend to suggest what you can
do and offer, whereas strengths tend to suggest how you will provide whatever offering you
develop.

Experience, knowledge, skills and attitude can feature in, and for many people contribute
to, both passions and strengths, but for the purposes of this exercise are best considered
within strengths.

My personal situation provides an example of how a passion and strength can combine to
create more meaningful work and a new business. One of my own passions is personal
development. One of my strengths is writing. The combination of these two enabled me to
develop this website. I am a better writer than a face-to-face trainer (although it took me a
while to realise it). I know now that I can make very effective use of my passion by
channelling it through written delivery. The internet offered a way to turn this into a new
business. I'm not a web designer or programmer, but the combination of a passion and a
strength proved powerful enough for me to overcome the technical challenges. This sort of
approach is possible for anyone: combine a passion with a strength, and amazing things can
happen. I've seen it in very many people and the formula always seems to be similar.

Here's a different hypothetical example:

You might be stuck in work you hate. You might have a passion for working with animals.
You have strengths in working with people and organising and scheduling. Just a little
research will confirm the enormous potential for all products and services related to
animals. With some creative open-minded thinking, and adding in your other passions and
strengths (all you are good at and love and enjoy - plus relevant experience, knowledge,

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skills and attitude), many possibilities for a new business or freelance service - working with
animals and related products services - will begin to emerge. If you commit your time to
develop and allow these ideas to grow (which is the essence of turning ideas or dreams into
reality), then real choice and change inevitably follow, and an exciting new business if you
want.

Passion to Profit Template

Action own Guidance Notes

notes,
aims and
commit-
ments*
1. List your Everyone loves and is very good at something, and
passions. In no generally two or three things. Keep an open mind when
particular order you consider your own passions. It is possible to make a
or structure - new career or business out of anything. Passions are not
passions are necessarily related to conventional work and how we
what you love imagine work to be, and yet every passion can be a career
and enjoy, and or a new business. A hobby is often a passion. A yearning or
will tend to be feeling drawn to a natural capability is often a passion. Get
things that you feedback from positive friends about your own passions,
are good at. especially if your confidence is at a low ebb. Everyone is
fantasticat something, or potentially so. A passion (or
combination of more than one passion) is the root of a
truly successful new venture - be it a career change,
becoming freelance, or starting a new business.
2. List your   Measure your Multiple Intelligences and your VAK style, to
strengths. see your basic strengths and working style preferences
Strengths are (e.g., inter-personal, or numerical, or words and language)
your preferred which will indicate your most natural and effective type of
working styles, work and ways you can do and provide the work. Get
including the way feedback from positive friends, especially if your
you prefer to confidence is at a low ebb.
connect with You experience (including hard knocks and tough times),
people. your knowledge, skills and attitudinal strengths are all part
of your strengths
3. Combine your   Mix and match your passions and strengths to create
of passion(s) and combinations which would work together as products or
strengths. Look services, or a special expertise which others might need.
for combinations Brainstorming is very useful for this stage of the process.
which could work Allow possibilities time and space to emerge. Do not let
together to finance be an obstacle. It is possible to start most things on
produce an a small experimental scale with very little money. Time and
offering that commitment are far more important than financial
people want or investment. If there are some missing pieces (for example a

Page 9 of 22
need, in a way qualification or vital bit of knowledge or training) use the
that you can goal planner. Use the goal planner anyway if you like to see
provide it organised elements and a timeline. Project management
enjoyably. methods are helpful for people who prefer a structured or
strongly planned approach. Other people prefer to work
more intuitively, which is fine. You probably will not be able
to decide and confirm exactly what you will be doing, and
for whom and how, at this stage. Aim simply to come up
with a shape of a new direction or offering, or set of ideas
that excite you.
4. Research -   Ask friends. Look on the web for existing similar offerings,
investigate the and for demand. Begin to imagine how a product or service
potential for could be provided and within what sort of business or
your ideas and financial model - basically how you'd monetise the
possibilities provision - make money from it - which can be done in very
above. Consider many different ways. This process is just as useful for
the best 'route to career change for employed work, as it is for breaking out
market' as well as a freelancer or starting your own business. Crucially your
as the demand research must give you confidence that the basic financials
and values are viable: that there is demand for what you will be doing
aspects. 'Route or providing; that the costs of provision do not exceed the
to market' price that people will pay or the revenues which can be
includes in this generated from the activity. Be creative about the ways
context whether that revenue can be created. This website, for example
your offering is gives everything away free, but due to its high traffic levels
best provided via produces revenues via advertising, which is an effective
an employed financial model for many web businesses. Freelancing with
position, or as a several clients is often a much better way to derive income
freelancer, or via from a specialised personal offering than conventional
a shop or office, employment. Some consumer offerings are better supplied
or via the web, via mail order, or door-to-door; other ideas are better
or other method suited to a shop, or a rented office. This is all part of the
of delivering research: exploring and considering the best ways to
what you have to deliver your offering. And remember that even if you stay
offer, to the within the world of employed work, you will work more
people who want enjoyably and profitably if you think and act like a supplier.
it. The most successful employees behave like a business.
5. Time to grow   Any worthwhile change usually takes time. Even if you have
and develop. a lot of money to invest in a new business start-up, or some
Consider and working capital to get you started in self-employment of
decide how some sort, time is crucial for refining and developing your
quickly you need offering, and for establishing yourself. That's why is useful
to implement to start now. A substantial new business can be built in five
your plans. years easily. Google had achieved world dominance in ten.
Self-employment takes two years to get properly
established. A shop can open in a matter of days, but it
takes many months to become established, no matter how
Page 10 of 22
 much money is spent on advertising. This website took ten
years to build. But it cost me nothing - just time. Think how
you will feel if you are still in a job you hate in five years.
Five years is enough for virtually any sort of career change.
If you have plenty of time, start now, and your costs will be
very low. Change costs more when it needs to be rushed.
Given time you can start any sort of consumer business
from home on a budget less than your weekly bar bill. Give
up a holiday or two, and that's easily enough to start a
small business. A small business, built on someone's
passion(s) and strengths quite soon becomes a big business
- enough for your personal security, independence and
your pension. Time is no problem if you start now. Time
also helps ideas to become polished into real gems. If you
have a passion to work for yourself one day, or to start
your own business, don't wait until you are forced to do it.
Start it now in your spare time. A couple of hours a week
would get you started. Then once you are started, your
project has a life of its own and will pull you along with it,
provided of course that you love and enjoy it. Again refer
to the goal planner and if necessary the project
management and business planning content, and any other
relevant materials and tools here. That's what they are
here for.
6. Your new People going through this process will mainly or eventually
business - this is tend to end up working for themselves or running their
you - working in own business. That's not to say you will start off like that,
whatever way is especially if you are young, when it is very helpful often to
most appropriate get your experience and establish contacts by working for
and fulfilling for an employer. The crucial point, whatever your work status,
you, specialising is to carve out a special value and independence for
in your passion, yourself that puts you beyond the whims of the
using your employment market and uncaring employers. Certain
natural strengths people are always in work that they enjoy and are
- whether satisfactorily rewarded for. This is because they are doing
employed, self- something that they love and which they are brilliant at,
employed or which allows them to behave very independently. This
running your option is available to everyone, and its value to the
own business. individual is greater than any pension fund.

Visualise it and write it in the notes and commitments

column, left.

 Believe it and commit to making it happen.

 Refine it constantly as it develops.
 Give it time and space to grow.

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  Enjoy building it.
 Start very small if you like.
 Start now.

* Expand the second column width - wide enough for your own notes. Make your notes
action-based, with purpose, clear measurable aims, and timescales where helpful. Refer to
or use the goal-planning process and tool if it helps you. Give yourself aims that are
achievable steps. Refer to the delegation methods and SMART planner tool - you are
effectively your boss, delegating tasks to yourself.

Group Activities Using this Template

1. This process and template can be used with groups of people who seek help in
identifying new career or business direction and ideas.

2. The way you run group activities is crucial for their effectiveness.

3. Read the tips for planning and running team building activities.

4. Also helpful are the tips on planning and running workshops.

5. Ensure that team-building activities comply with equality policy and law in respect of
gender, race, disability, age, etc.

6. Team-building games and activities have to agreeable and acceptable to group

members, and the exercises have to be fair.

You can use this process and template with groups to help with any of the following:

1. finding more enjoyable personal or career direction

2. finding satisfaction and personal fulfilment in work
3. identifying and developing a move into self-employment
4. early planning and visualisation for new business start-up
5. exploring opportunities for changing an existing business
6. outplacement and redundancy support
7. seeking self-determination and independence

Summary

1. Whether you want to start your own business, become self-employed, freelance, or
prefer to be employed, the principles within this process still apply.

2. Think of yourself as a company, whether you work for yourself or for someone else.

Page 12 of 22
3. Be your own boss - give yourself opportunities, aims, a vision, and plan the steps to
achieve what you want.

4. Making a lot of money is not always the main aim of people seeking a new career or
to start a new business. Many people who start their own businesses or become self-
employed want choice and independence - to be on control of their own decisions
and future.

5. For many people, profit, and sometimes substantial reward, are the natural results
of working hard doing something they love.

STARTING YOUR OWN BUSINESS - OR STARTING ANY NEW BUSINESS

1. These are the simple rules for planning and starting your own business. The
principles also apply to planning and starting a new business within an organisation
for someone else.

2. In amongst the distractions and details of new business planning, it is important to

keep sight of the basic rules of new business success:

3. Your successful new business must offer something unique that people want.

4. Uniqueness is vital because otherwise there is no reason for customers to buy from
you.

5. Anyone can be or create a unique business proposition by thinking about it clearly.

6. Uniqueness comes in all shapes and sizes - it's chiefly being especially good and
different in a particular area, or field or sector.

7. Uniqueness can be in a product or service, or in a trading method, or in you yourself,

or any other aspect of your business which makes what you are offering special and
appealing to people.

8. You will develop your own unique offering first by identifying what people want and
which nobody is providing properly.

9. Second you must ensure that your chosen unique offering is also an extension of
your own passion or particular expertise or strength - something you will love and
enjoy being the best at - whatever it is.

10. Every successful business is built on someone's passion.

NEW BUSINESS START-UPS BY OLDER PEOPLE

1. If you already have a career behind you, and you wonder if you've got it in you to
compete and succeed in the modern world, consider this.

2. First - you have definitely got it in you to succeed.

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3. Experience and wisdom are fundamental building blocks of success, and will be for
you from the moment you start looking at yourself in this way.

4. The reassuring wisdom that older people generally possess is extremely helpful in
forming trusting relationships - with customers, suppliers, partners, colleagues, etc -
which are essential for good business.

5. Added to this, as we get older we have a greater understanding of our true passions
and capabilities; we know our strengths and styles and tolerances. This gives older
people a very special potency in business. Older people know what they are good at.
They play to their strengths. They know which battles they can win, and which to
avoid.

6. Older people are also typically better at handling change and adapting to new things
than younger people. This is because older people have had more experience doing
just this. Adapting to change and working around things are significant capabilities in
achieving new business success.

7. If you are an older person considering starting a new business, think about the things
you can do better than most other people - think about your strengths and use
them.

BUSINESS START-UPS FOR YOUNGER PEOPLE

1. Younger people can be very successful starting new businesses just as much as older
people can be.

2. The essential principle of playing to your strengths applies, although the implications
are different for younger people compared to older people.

3. Younger people are likely to have lots of fresh ideas. This is an advantage, so avoid
people pour cold water on them.

4. Test your ideas on potential customers, rather than to take advice from those people
who are ready with their buckets of water.

5. Next, get the help you need. It's difficult for young people to know all the answers.

6. You'll have the ideas and the energy to make things happen, but consider the gaps in
your experience, and the things you don't enjoy doing, and seek good quality reliable
help for these things.

7. Getting good help at what you can't do or don't want to do will enable you to put all
your energy into what you are good at and what you want to spend your time doing.

8. Young people sometimes try to force themselves to fit into roles or responsibilities
that are not comfortable or natural. This is de-stabilising and stressful. Learn what
you love and excel at, and focus on building success from this.

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9. Which brings us back to playing to your strengths.

10. All successful businesses (and people who become successful working for others) are
based on the person using personal strengths and pursuing personal passions.

11. Success in business is always based on doing something you love and enjoy, which is
fundamentally related to your natural strengths and unique personal potential,
whatever that is.

12. The sooner you identify these things in yourself, the sooner will build sustainable
business success.

PLANNING BUSINESS SUCCESS - IN SUMMARY

1. The spreadsheets, mission statements and other elements of new business planing
are tools. They enable the business to be properly structured, started and run. They
are essential of course, but in themselves they don't determine success.

2. What determines real business success, is that you bring together the crucial factors
of uniqueness and passion.

3. Uniqueness, so that people will want what you offer.

4. Passion, so that you will enjoy being and offering your best - as whatever business
you choose.

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 ESSENTIAL ELEMENTS OF A MARKETING

1. Elements of a Marketing Program

a. Image
i. Unique Selling Proposition (USP)

b. Marketing Strategy
i. Product Features, Benefits and Appeals
ii. Positioning
iii. Pricing
iv. Distribution channels
v. Communications strategies

c. Launch Strategies

i. Launch plans
1. Public Relations strategy and execution
2. Advertising strategy and execution
3. Other promotion
a. Direct marketing
b. Third-party marketing, managing referrals
c. Other promotional programs

d. Creation of Promotional Package

e. Dissemination of Information

2. Implementation

a. Structure
b. Refining the message
c. Creating and maintaining relationships
d. Will it work?
e. Success metrics
f. Goals, year one
g. Goals, years 2-5
h. Outcome measurements
i. Requirements for success

3. Proposals with Budget

4. Appendix: Justification

 Underlying Assumptions
 References

Page 16 of 22
 Detailed plans and programs

A plan should be:-

 Clear - They should be an unambiguous statement of 'exactly' what is to be done.

 Quantified - The predicted outcome of each activity should be, as far as possible,
quantified, so that its performance can be monitored.
 Focused - The temptation to proliferate activities beyond the numbers which can be
realistically controlled should be avoided. The 80:20 Rule applies in this context too.
 Realistic - They should be achievable.
 Agreed - Those who are to implement them should be committed to them, and
agree that they are achievable. The resulting plans should become a working
document which will guide the campaigns taking place throughout the organization
over the period of the plan. If the marketing plan is to work, every exception to it
(throughout the year) must be questioned; and the lessons learned, to be
incorporated in the next year's planning.

Content of the marketing plan

A marketing plan for a small business typically includes Small Business Administration
Description of competitors, including the level of demand for the product or service and the
strengths and weaknesses of competitors

1. Description of the product or service, including special features

2. Marketing budget, including the advertising and promotional plan
3. Description of the business location, including advantages and disadvantages for
marketing
4. Pricing strategy
5. Market Segmentation

Medium-sized and large organizations

The main contents of a marketing plan are:[4]

1. Executive Summary
2. Situational Analysis
3. Opportunities / Issue Analysis - SWOT Analysis
4. Objectives
5. Strategy
6. Action Program (the operational marketing plan itself for the period under review)
7. Financial Forecast
8. Controls

In detail, a complete marketing plan typically includes:[4]

1. Title page
2. Executive Summary
3. Current Situation - Macroenvironment[5]
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 o economy
o legal
o government
o technology
o ecological
o sociocultural
o supply chain
4. Current Situation - Market Analysis
o market definition
o market size
o market segmentation
o industry structure and strategic groupings
o Porter 5 forces analysis
o competition and market share
o competitors' strengths and weaknesses
o market trends
5. Current Situation - Consumer Analysis [6]
o nature of the buying decision
o participants
o demographics
o psychographics
o buyer motivation and expectations
o loyalty segments
6. Current Situation - Internal
o company resources
 financial
 people
 time
 skills
o objectives
 mission statement and vision statement
 corporate objectives
 financial objective
 marketing objectives
 long term objectives
 description of the basic business philosophy
o corporate culture
7. Summary of Situation Analysis
o external threats
o external opportunities
o internal strengths
o internal weaknesses
o Critical success factors in the industry
o our sustainable competitive advantage
8. Marketing research
o information requirements
o research methodology
o research results
9. Marketing Strategy - Product[7]
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 o product mix
o product strengths and weaknesses
 perceptual mapping
o product life cycle management and new product development
o Brand name, brand image, and brand equity
o the augmented product
o product portfolio analysis
 B.C.G. Analysis
 contribution margin analysis
 G.E. Multi Factoral analysis
 Quality Function Deployment
10. Marketing Strategy [8][9] - segmented marketing actions and market share objectives
o by product,
o by customer segment,
o by geographical market,
o by distribution channel.
11. Marketing Strategy - Price
o pricing objectives
o pricing method (eg.: cost plus, demand based, or competitor indexing)
o pricing strategy (eg.: skimming, or penetration)
o discounts and allowances
o price elasticity and customer sensitivity
o price zoning
o break even analysis at various prices
12. Marketing Strategy - promotion
o promotional goals
o promotional mix
o advertising reach, frequency, flights, theme, and media
o sales force requirements, techniques, and management
o sales promotion
o publicity and public relations
o electronic promotion (eg.: Web, or telephone)
o word of mouth marketing (buzz)
o viral marketing
13. Marketing Strategy - Distribution
o geographical coverage
o distribution channels
o physical distribution and logistics
o electronic distribution
14. Implementation
o personnel requirements
 assign responsibilities
 give incentives
 training on selling methods
o financial requirements
o management information systems requirements
o month-by-month agenda
 PERT or critical path analysis
o monitoring results and benchmarks
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 o adjustment mechanism
o contingencies (What if's)
15. Financial Summary
o assumptions
o pro-forma monthly income statement
o contribution margin analysis
o breakeven analysis
o Monte Carlo method
o ISI: Internet Strategic Intelligence
16. Scenarios
o Prediction of Future Scenarios
o Plan of Action for each Scenario
17. Appendix
o pictures and specifications of the new product
o results from research already completed

Measurement of progress

The final stage of any marketing planning process is to establish targets (or standards) so
that progress can be monitored. Accordingly, it is important to put both quantities and
timescales into the marketing objectives (for example, to capture 20 percent by value of the
market within two years) and into the corresponding strategies.

Changes in the environment mean that the forecasts often have to be changed. Along with
these, the related plans may well also need to be changed. Continuous monitoring of
performance, against predetermined targets, represents a most important aspect of this.
However, perhaps even more important is the enforced discipline of a regular formal
review. Again, as with forecasts, in many cases the best (most realistic) planning cycle will
revolve around a quarterly review. Best of all, at least in terms of the quantifiable aspects of
the plans, if not the wealth of backing detail, is probably a quarterly rolling review - planning
one full year ahead each new quarter. Of course, this does absorb more planning resource;
but it also ensures that the plans embody the latest information, and - with attention
focused on them so regularly - forces both the plans and their implementation to be
realistic.

Plans only have validity if they are actually used to control the progress of a company: their
success lies in their implementation, not in the writing'.

Performance analysis

The most important elements of marketing performance, which are normally tracked, are:

Sales analysis

Most organizations track their sales results; or, in non-profit organizations for example, the
number of clients. The more sophisticated track them in terms of 'sales variance' - the
deviation from the target figures - which allows a more immediate picture of deviations to
become evident.

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`Micro-analysis', which is a nicely pseudo-scientific term for the normal management
process of investigating detailed problems, then investigates the individual elements
(individual products, sales territories, customers and so on) which are failing to meet
targets.

Market share analysis

Few organizations track market share though it is often an important metric. Though
absolute sales might grow in an expanding market, a firm's share of the market can
decrease which bodes ill for future sales when the market starts to drop. Where such
market share is tracked, there may be a number of aspects which will be followed:

 overall market share

 segment share - that in the specific, targeted segment
 relative share -in relation to the market leaders
 annual fluctuation rate of market share

Expense analysis

The key ratio to watch in this area is usually the `marketing expense to sales ratio'; although
this may be broken down into other elements (advertising to sales, sales administration to
sales, and so on).

Financial analysis

The "bottom line" of marketing activities should at least in theory, be the net profit (for all
except non-profit organizations, where the comparable emphasis may be on remaining
within budgeted costs). There are a number of separate performance figures and key ratios
which need to be tracked:

 gross contribution<>net profit

 gross profit<>return on investment
 net contribution<>profit on sales

There can be considerable benefit in comparing these figures with those achieved by other
organizations (especially those in the same industry); using, for instance, the figures which
can be obtained (in the UK) from `The Centre for Interfirm Comparison'. The most
sophisticated use of this approach, however, is typically by those making use of PIMS (Profit
Impact of Management Strategies), initiated by the General Electric Company and then
developed by Harvard Business School, but now run by the Strategic Planning Institute.

The above performance analyses concentrate on the quantitative measures which are
directly related to short-term performance. But there are a number of indirect measures,
essentially tracking customer attitudes, which can also indicate the organization's
performance in terms of its longer-term marketing strengths and may accordingly be even
more important indicators. Some useful measures are:

 market research - including customer panels (which are used to track changes over
time)
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  lost business - the orders which were lost because, for example, the stock was not
available or the product did not meet the customer's exact requirements
 customer complaints - how many customers complain about the products or
services, or the organization itself, and about what

Use of marketing plans

A formal, written marketing plan is essential; in that it provides an unambiguous reference

point for activities throughout the planning period. However, perhaps the most important
benefit of these plans is the planning process itself. This typically offers a unique
opportunity, a forum, for information-rich and productively focused discussions between
the various managers involved. The plan, together with the associated discussions, then
provides an agreed context for their subsequent management activities, even for those not
described in the plan itself.

Budgets as managerial tools

The classic quantification of a marketing plan appears in the form of budgets. Because these
are so rigorously quantified, they are particularly important. They should, thus, represent an
unequivocal projection of actions and expected results. What is more, they should be
capable of being monitored accurately; and, indeed, performance against budget is the
main (regular) management review process.

The purpose of a marketing budget is, thus, to pull together all the revenues and costs
involved in marketing into one comprehensive document. It is a managerial tool that
balances what is needed to be spent against what can be afforded, and helps make choices
about priorities. It is then used in monitoring performance in practice.

The marketing budget is usually the most powerful tool by which you think through the
relationship between desired results and available means. Its starting point should be the
marketing strategies and plans, which have already been formulated in the marketing plan
itself; although, in practice, the two will run in parallel and will interact. At the very least,
the rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic
elements of the plans

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