The final component of your marketing plan is a breakeven analysis report that also includes a schedule for implementation, any needed control measures, and a contingency plan.
Present your breakeven analysis in a table that includes the following details about your client:
forecasted total number of units sold (for a service industry, products could be service contracts or the number of customers served)
forecasted average unit price (AUP)
forecasted total sales (in US dollars)
forecasted average unit variable cost
forecasted fixed cost
breakeven point (units)
breakeven point (in US dollars)
Read about breakeven analysis to assist your calculations.
In addition, use the following guidelines as you develop your implementation, controls, and contingency plan:
Decide on the team that is going to implement the plan.
Determine the time frame for implementation.
Secure the financial and human resources needed.
Distribute the tasks among team members.
Periodically check and communicate performance against the marketing plan metrics (benchmarks) to ensure that implementation is on track.
Make changes if there are any deviations from the key performance indicators (KPIs) for those metrics, preferably using a dashboard. KPIs may include the number of sales calls, the number of new customers, sales, profitability, growth, etc.
Contingency plans should deal with severe deviations from productions plans, sales figures, market share, profitability, changes in government regulations (e.g., increased taxation), and drastic competitors’ moves (e.g., launching a competing product or service or an offering that may render your offering obsolete or less attractive to the market).
Deliverable: Early in Week 10 submit a report that explains your breakeven analysis. Also, include a table at the end of the report that highlights your financials. In addition, explain your schedule for implementation as well as the controls you intend to put in place and how you intend to proceed when your benchmarks are not met (contingency plan).
Three parts of this paper has to include:
Breakeven Analysis
Sales Forecast
Expense Forcast
