ࡱ> []Zs .bjbj 4cc^&`     4448lL4+0<^N+ + + + + + +$,j/-+ -+  B+uuu  +u+uuuˁɞu*X+0+u00uu0 s u-+-+C2+0 :  Marketing Budget Plan for Eat Right Healthy Shop Marketing Plan Elements For Eat Right Healthy Shop Direct and Alterative Competition In the market of the U.S., the Eat Right Healthy Shop faces a direct competition from many other similar retail shops that provide the products and services almost similar to the Eat Right Healthy Shop. The common direct competitors of the shop are Whole Foods Store, Safeway Stores and Trader Joes Store (CNN, 2008). Eat Right Healthy Shop also have strong alternative competition in the US market as there are many substitute shops available in the market, due to which customers are now available with many options of purchasing products from the shops (CNN, 2008). The major retail shops that pose alternative competition to Eat Right Healthy Shop include Hannaford Stores, Albertsons Stores, Publix Super Market and Super Target (CNN, 2008). Promotion The promotional strategies that will be useful for Eat Right Healthy Shop may include pamphlet advertisements, newspaper advertisements, hoarding advertisements and advertising the shop using social media platforms (Gelder & Woodcock, 2003). These strategies may help in advertising the shop to a wider population and these kinds of promotions attract more and more customers. Pricing Pricing is yet another important factor to be taken into consideration while entering into marketing, where Eat Right Healthy Shop has a number of competitors (Richards, 2015). For this purpose, it is suggestible that penetration pricing strategy must be used to establish the shop as a new affordable products shop, wherein the products are to be sold at quite low prices with discounts in comparison to other competitor stores prices (Richards, 2015). Customer Analysis Before entering the market, it is essential to analyze the customers of the US to know their likings and preferences. For this purpose, niche marketing strategy could be used to clearly identify the market it needs to focus (Aaker & McLoughlin, 2009). Other than this, the type of customers living in that area and their lifestyle should be researched by exploring the shopping experiences of the consumers and taking a survey feedback of the customers regarding their shopping experiences in big supermarkets. This helps to know the kind of products consumers like to buy and the prices that they could pay for the products. Distribution and Selling The shop should use its own retail outlets to distribute and sell the products to the consumers, rather than giving franchisee to other retail shops or getting into a mutual partnership with any other retail outlet in other areas, it would be beneficial for Eat Right Healthy Shop to initially establish its own brand name in the market. This will enable the shop to attain customers support and trust (Aaker & McLoughlin, 2009). Leadership There could a number of leadership issues that the shop is likely to face on entering the market including technological issues such as use of mobile apps for digital experiences in the store, social media and mobile payments, for which it might be possible that the leaders are not much familiar with these technologies usage. Other than this, it requires a strong network to maintain relationships with globalised customers and to maintain their database is also a quite difficult task, for which it must be evaluated if the leaders are capable to maintain relationships or not (Forbes, 2012). Moreover, organizational structure is another issue, wherein, many a times, the Chief Medical Officer (CMO), Chief Executive Officer (CEO), Chief Technical Officer (CTO) and the team leader have conflicting views to one another, which leads to failure in proper organization of the shop. Communication and Training Improper communication with the staff members create problems in working in coordination with each other, which usually happens when the shop has a complex management structure (Ryans, 2010). Furthermore, it is essential to provide proper training to new staff members, failing which might create an issue in future working criteria of the shop members. Legal The most common potential legal issues that are likely to be faced by Eat Right Healthy Shop may include celebrity embarrassments due to any bad social media behavior, which may give wrong impression to the consumers. The regulations of the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) pose other financial-services related issues (Wood, 2011). Ethical The ethical issues in a marketing plan constitutes recalling of the products with flaws, which can pose a threat to the sales of the shops products, selling of customers information, which is available to the online store of the shop that consists details of customers like names, address and their interest in goods and services (Wood, 2011). Other than this, hiring of the potential customers for praising the goods of the shop is another type of ethical issue. Information Technology Issues Up-gradation of advanced technologies is a major technological issue that could be faced by the shop. The lack of skilled staff members to cope up with the new technology is an issue, which can only be overcome by either training the existing staff member or replacing them with skilled staff members, who can operate with new technologies (Ryans, 2010). Marketing Department Budget:  EMBED Excel.Sheet.12  The marketing department set a budget of around $2,500. It needs to spend about $300 on advertisements designing and printing, and on web content development, the shop needs to spend $250. Other than this, on website development for advertisement and updates, the shop should allot around $750 and for online advertisement, $35 is required. Moreover, the printing of pamphlets require around $15 and the cost of distribution of pamphlets will cost $50. In addition to this, the cost of hoarding and newspaper advertisement will cost account a total of about $800 and taxes will account to $250. Financial Statements Balance Sheet Projected Balance Sheet2015Non-current assetsIntangible assets 720,000 Property, plant and equipment 184,000 Total Non-current assets 904,000 Current assetsInventories 750,000 Trade and other receivables 200,000 Cash and cash equivalents 2,921,411 Total current assets 3,871,411 Total Assets 4,775,411 Current liabilitiesTrade and other payables  854,000 Total current liabilities 854,000 Non-current liabilitiesBorrowings  1,000,000 Total Non-current liabilities 1,000,000 Total Liabilities 1,854,000 Net Assets 2,921,411 EquityShare capital 2,744,470 Retained earnings 176,941 Total Equity 2,921,411  Income Statement 2015Sales 1,025,000 Cost of goods sold 307,500 Gross income 717,500 Selling and distribution expenses  102,500 Administrative expenses  51,250 Depreciation 86,720 EBIT 477,030 Interest Expense 140,000 Profit before taxation 337,030 Income tax expense 101,109 Net profit for the year 235,921  Statement of Owners Equity Particular Amount ( in $)Beginning capital $ - Add: Investment  $ 2,744,470.00 Retained earnings 176,941 Less:Withdrawal  $ - Total owner's equity  $ 2,921,410.75  Statement of Cash Flow 2015Operating activitiesCash generated by operations 477,030 Income tax paid 101,109 Net cash flows from operating activities 375,921 Investing activitiesPurchase of property, plant and equipment. 200,000 Purchase of intangible assets 800,000 Net cash flows from investing activities- 1,000,000 Financing activitiesInterest paid 140,000 Bank loan taken 1,000,000 Share capital  2,744,470 Dividends paid to shareholders of the Company  58,980 Net cash flows from financing activities 3,545,490  References Aaker, D. A., & McLoughlin, D. (2009). Strategic Market Management: Global Perspectives. New Jersey: John Wiley & Sons. CNN. (2008). America's healthiest grocery stores. Retrieved June 01, 2015, from  HYPERLINK "http://edition.cnn.com/2008/HEALTH/diet.fitness/11/11/Healthmag.healthiest.grocery.stores/index.html?eref=ib_to" http://edition.cnn.com/2008/HEALTH/diet.fitness/11/11/Healthmag.healthiest.grocery.stores/index.html?eref=ib_to. Forbes. (2012). Five Challenges For Tomorrow's Global Marketing Leaders: Study. Retrieved June 01, 2015, from  HYPERLINK "http://www.forbes.com/sites/onmarketing/2012/08/21/five-challenges-for-tomorrows-global-marketing-leaders-study/" http://www.forbes.com/sites/onmarketing/2012/08/21/five-challenges-for-tomorrows-global-marketing-leaders-study/. Gelder, D., & Woodcock, P. (2003). Marketing and Promotional Strategy. Nelson Thornes. Richards, L. (2015). Different Types of Pricing Strategy. Retrieved June 01, 2015, from  HYPERLINK "http://smallbusiness.chron.com/different-types-pricing-strategy-4688.html" http://smallbusiness.chron.com/different-types-pricing-strategy-4688.html. Ryans, A., More, R., Barclay, D., & Deutscher, T. (2010). Winning Market Leadership: Strategic Market Planning for Technology-Driven Businesses. New Jersey: John Wiley & Sons. Wood, D. J. (2011). Top 10 Legal Issues for Marketers in the Coming Year. Retrieved June 01, 2015, from  HYPERLINK "http://adage.com/article/special-report-book-of-tens-2011/marketing-law-top-10-legal-issues-2012/231501/" http://adage.com/article/special-report-book-of-tens-2011/marketing-law-top-10-legal-issues-2012/231501/.      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