Economic Summary and Tactics: Production Development Plans (Essay Sample)

Economic Summary and Tactical Plans
Name:
Marketing
Tutor:
14/1/2015
Economic Summary
Forecast and Financials
Twiga 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 Analysis
Profit, Loss Analysis





Year 1

Year 2

Year 3

Sales

12,000,0000

14,000,000

17,000,000

Cost of Sales
Research & Development
Production

5,000,000

6,000,000

7,000,0000

Gross Profit

7,000,000

8,000,000

10,000,000

Expenses
Marketing 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 Assessment
Sales Risk

1.Sales returns due to customers not being satisfied
2.Bad debts from customers who promise to pay but do not

Input-Cost Risks

1.Malfunctioning of some of the mobile phones
2.Higher input costs than revenue costs such as transport inwards

Capital Expenditure
Balance Sheet
Balance 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 Plans
Sales Tactics and Plans
The 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 done whenever the sales representatives come into contact with potential customers; they should stay on the message and get information as well as getting across Twiga’s business interests. Sales can be made through our online platform (Twiga’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 locations. 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...