Economic Summary and Tactics Production Development Plans - 1375 Words

Economic Summary and Tactics: Production Development Plans (Essay Sample) Content: Economic Summary and Tactical PlansName:MarketingTutor:14/1/2015Economic SummaryForecast and FinancialsTwiga projects a total sales volume of 17 million by the end of the third year. Profits for the first year are based on the sales of 100,000 units, sold at an average wholesale price of 120 dollars. In the first year, Twiga anticipates sales of 12,000,000 which have been broken down based on a quarterly period of operation. In the first quarter, Twiga anticipates to make sales of 3,000,000, in the second quarter 4,000,000, in the third quarter and 5,000,000 in the fourth quarter. All these projections assume a high year-end sales coupled with a high cumulative business sales.Profit AnalysisProfit, Loss Analysis Year 1 Year 2 Year 3 Sales 12,000,0000 14,000,000 17,000,000 Cost of SalesResearch DevelopmentProduction 5,000,000 6,000,000 7,000,0000 Gross Profit 7,000,000 8,000,000 10,000,000 ExpensesMarketing and Advertising 2,000,000 2,500,000 3,500,000 PBIT 5,000, 000 5,500,000 6,500,000 Tax 1,500,000 1,650,000 1,950,000 Net Profit 3,500,000 3,850,000 4,550,000 Risk AssessmentSales Risk 1.Sales returns due to customers not being satisfied2.Bad debts from customers who promise to pay but do not Input-Cost Risks 1.Malfunctioning of some of the mobile phones2.Higher input costs than revenue costs such as transport inwards Capital ExpenditureBalance SheetBalance Sheet Year 1 Year 2 Year 3 Assets Current Assets Cash 2,000,000 3,000,000 5,000,000 Receivables 900,000 1,100,000 1,500,000 Inventory 1,100,000 1,900,000 2,500,000 Other Current Assets 0 0 0 Total Current Assets 4,000,000 6,000,000 8,000,000 Long-term Assets 6,000,000 8,000,000 10,000,000 Accumulated Depreciation 900,000 1,000,000 1,200,000 Total Long-term Assets 5,100,000 7,000,000 8,800,000 Total Assets 9,100,000 13,000,000 16,800,000 Liabilities and Capital First Year Second Year Third Year Current Liabilities 3000 3100 3800 Long-term Liabilities 0 0 0 Total Liabilities 500, 000 700,000 900,000 Total Capital 5,000,000 8,000,000 10,000,000 Total Capital and Liabilities 5,500,000 8,700,000 10,900,000 Net Worth 5,000,000 8,000,000 10,000,000 Tactical PlansSales Tactics and PlansThe sales department will implement sales tactics where they have to make sure they are consistent and persistent. This is a very crucial requirement of the sale tactics that are going to be developed and employed by the sales department. These qualities as a matter of fact, might be some of the measures and requirements that are going to be employed when considering on which will be the most effective tactic to be used in relation to our products. This is due to the fact that, an attribute of these tactics having the above-mentioned qualities will enable us to reach our goals as company, in regards to the set goals of the sales of ur products. Consistency and persistence are, therefore, a major requirement for our tactics that we will employ in the sales department. This will be do ne whenever the sales representatives come into contact with potential customers; they should stay on the message and get information as well as getting across Twigaà ¢Ã¢â€š ¬s business interests. Sales can be made through our online platform (Twigaà ¢Ã¢â€š ¬s website) as well as through the stores that will have experienced sales attendants. We believe as a company that these means will not only help us in driving our sales up and performing well in the market, but also achieve our goals of not only covering regions that are within our geographical reach but, but even the other regions. Our endeavor is to see that we are able to produce and deliver quality and effective products to our customers so as to enable us meet their needs and leave them satisfied. By doing this, we will be able to attract more clients on our side and grow even more. This in turn will enable us to enlarge and to develop in all ways so as to start even targeting on the markets far from our current location s. We want to be a multinational company that produces quality and effective products for our clients and fans all over the world.The sales attendants will use both open and close-ended questions when inquiring from customers (Kotler Armstrong, 2013). This way the potential customers will have the opportunity of getting all the information that they require in order to make a decision. It is only through or after understanding an issue that one can claim to solve or even take care of it. One cannot help solve or even take care of a situation that they do not have even the basic knowledge about. This is a truth that we know and appreciate as a company. In order for us to come in and solve or meet the existing needs and preferences of the clients in this market through the products that we produce, we need to first understand and to identify this existing needs. It is from the realization of this fact that we make efforts to get such information from our clients or customers, as well as the potential ones, so as to be able to understand on what exactly to add, remove or alter in our products so as to serve these customers even better. The sales employees can also make use of referrals from previous customers or from well-wishing citizens. Referrals can be a great source of the req...