From the above‐mentioned expense lists, it is clear to show the cost structure of O Product. The minimum manufacturing quantity is 1,000 bottles, and the cost of each bottle is 100NTD. The total manufacturing cost for one bulk is 100,000NTD. Based on the CEO’s instruction, four bulks of products (4,000 bottles) have to be sold out, and the total
production cost is 400,000 NTD. The fixed marketing cost of O Product is 59,200 NTD, and the variable marketing cost is 40,200NTD per month. The annual variable cost is 482,400NTD.
Based on the above‐mentioned statement, total annual cost of O Product is 941,600 NTD.
6.3 Sales Forecast
According to the report from Ministry of the Interior (2010), the population of women age 20 to 30 is 1,671,031. Based on the previous studies from Pollster (2009), 74% of
Taiwanese women have the habit to purchase whitening and moisturizing products, and 68%
of them care about whitening and moisturizing functions. There are 13% of this group are online shoppers. In other words, the target customer of O Product is 109,312 people (1,671,031 people X 74% X 68% X 13%). According to the report from Chang (2008), the average annual price for women buying skincare is NT$2,130, which means the total demand of the target customer is 232,834,560 NTD (109,312 people X 2,130 NTD) per year. According
to the expectation of O Product’s CEO, there will be four bulks of products sold out in the first year and he plans to have 30% of the company revenue of the following year has to be
generated by O Product. The anticipated revenue of the following year is 1,800,000 NTD, and O Product is expected to generate at least 540,000 NTD within 12 months.
According to the annual sales forecast, at the first two months, we anticipate O Product will not generate any positive output for I Company. At the fifth month, the first bulk of product will be sold out. The hot periods of skincare industry are X’mas and Mother’s Day.
From the sales forecast, it is anticipated that the sales volume increases in December and May.
According to the report from MIC (2009), the average online sales of skincare product is 375 items per month. The monthly sales number of O Product is forecasted based on the
above‐mentioned report. Based on the annual sales forecast list, the anticipated sales volume is 1,474,200 NTD (4,095 bottle X 360 NTD), which occupy 0.6% market share. Otherwise, the anticipated revenue of O Product is 532,600 NTD, which occupies about 30% of total revenue of I Company. In other words, it is anticipated that market share and revenue rate reach CEO’s expectation.
Annual Sales Forecast Unit: NTD July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Sales (35,200) (35,200)108,000 126,000 126,000 162,000 135,000 144,000 144,000 162,000 180,000 162,000
Table 6‐4, Sales Forecast
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Source: Made by the author
7. Evaluation and Control
The purpose of this marketing plan is to extend the brand image of O Product and increase better sales revenue for I Company Company. Return on investment (ROI), annual sales
volume and accumulating click will be monitored to evaluate performance. As for the ROI, the anticipated revenue is 552,600 NTD and the total annual cost is 921,600 NTD, which means the ROI is expected to be 0.6. In terms of annual sales volume, after completing the marketing plan, the annual sales volume is anticipated to be 1,474,200 NTD, which is much better than before (10,800 NTD). When it comes to accumulating click of company website, after
implementing the promotion strategies such as trial sample delivering, membership application, viral marketing and so on, the number of accumulating click and visitor is
expected to increase and get better than before (2,670 clicks for three months). Based on the three criteria mentioned above, the marketing plan is expected to not only generate as much revenue as possible, but also expand brand image and brand awareness of O Product to potential customers.
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