Black Thinking Advertising Agency- Business Business Plan

Pages: 7 (2505 words)  ·  Bibliography Sources: 6  ·  Level: Master's  ·  Topic: Business - Advertising

SAMPLE EXCERPT:

[. . .] Due to the stability in the political and economic conditions of the city, Birmingham houses many small businesses that can be potential customers to Black Thinking. Even new small businesses launching now and then can be helped by the company to secure their contracts for the rest of their operating term. However, there is a threat of a big marketing firm swooping in, and applying price cutting schemes to snatch away customers. They will have the resources to take the price hit to their finance, which Black Thinking cannot, as it is only starting up, and it needs to cover all of its costs, and not be involved in a price war.

Target Market

Birmingham is an engineering city with over 100,000 individuals employed in the manufacturing and engineering sector. But on the other hand, it has been known as the "city of a thousand trades." It annually churns out a number of products in categories such as jewellery, chemicals, electrical equipment, weapons, cars and other vehicles (Jaguar and Land Rover factories are located in the city) glass, food items, machine tools, plastics and is home-base to many forestry activities in the Midlands. The target audiences for Black Thinking are the small time manufacturers of such products that cannot afford to hire big shot marketing firms to design their campaigns.

Financials

For a business idea to flourish, it needs a strong backbone. The backbone of Black Thinking would be the financial aspect of the company. In the beginning, it is normal for a new business to generate less revenue as compared to the expenditure incurred, leading to an eventual loss. For the first year, the company should prepare financial statements on a monthly basis to provide information about the growth of the business and could assist in finding the breakeven point (Refer Appendix C). The idea of working with university students in exchange for rewards would be financially beneficial as this would cut back costs to hire professional employees, although, some funds would have to be utilized in communicating with and convincing the universities to become involved. Advertising for the business would have to be done. Moreover, some assets would have to be acquired, such as a renting office premises and computer equipment. Considering the expected start up costs for this strategy, the Black Thinking strategy would not require a high initial investment (Refer Appendix B). But also taking in mind the nature of the business and the fact that initially revenues would be very low, a medium sized investment would have to be made.

Marketing Mix

To ensure the success of the idea, Black Thinking would have to utilize the marketing mix appropriately. A versatile products and services range should be introduced, with focus remaining to attract small businesses. The company should locate its offices in areas of Birmingham where small businesses flourish, which will aid in attracting the potential clients. To promote its products, Black Thinking should market itself in a way that targets the small businesses to build upon its reputation, offering a variety of marketing services with prices that are easily affordable for small and new businesses. Also, the business should pursue the track of E-business, promoting itself through advertisements on social media services. Apart from using the insight and ideas of students, Black Thinking should make some hiring based on expertise, which could aid the business' growth.

Conclusion

The idea introduced by Black Thinking of using the fresh ideas and inputs of university students while using the expertise of some professionals could prove to be quite effective, based on the plan presented. Moreover, the target to aim small and new businesses as potential clients in an economically booming area (Statistics 2008) such as the city of Birmingham (Council 2012) can assist Black Thinking in growing to become one of the most successful marketing firms in the long run.

Bibliography

Council, BC 2012, Birmingham Census 2011 Initial Findings, .

Council, BC 2012, The Birmingham Area Investment Prospectuses, .

Info, UT 2006, Regional Trade Statistics, .

Network, ESPO 2007, 'British urban pattern: population data', ESPON Project 1.4.3 Study on Urban Functions European Union, pp. 119-120.

Statistics, OFN 2008, "NUTS3 Gross Value Added (GVA) (1995 -- 2003) Tables," .

Wilson, BM 2000, Dupont on Wilson, 'Race and Place in Birmingham: The Civil Rights and Neighborhood Movements', .

Appendix A

Using the above diagram, the SWOT and the PEST analysis can be understood. The PEST is an external analysis in which a research is conducted about the political, technological, social and economical aspects of the business idea and based upon these, it is decided whether the idea is feasible or not.

The SWOT analysis, on the other hand, is an internal analysis conducted to establish the company's strengths and weaknesses, and the opportunities the idea would have and any threats that the business would be facing. Using this analysis, the company's strategy is prepared to reap the benefits of the company's strengths and the opportunities available, while working to reduce the weak spots and mitigating any threats to the business.

Appendix B

Start Up Costs

$70,000

$65,000

$60,000

$55,000

$50,000

$45,000

$40,000

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

Expenses

Assets

Investment

The startup costs chart represents the amount of initial investment that should be made, and how this would be utilized in the business.

Appendix C

The break-even analysis is used to locate the break-even point. This point is a combination of the output units and the cost incurred, where the total cost equals total revenue, therefore, resulting in neither profit nor loss. According to the diagram below, the area between the total revenue and the total cost lines after the break-even point represents profit, while the area before the break-even point represents loss. The variance between total cost and fixed cost is referred to as variable cost. [END OF PREVIEW]

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