Financial Objectives

Revenue

A marketing plan is devised to generate revenue through various advertising and sales methods. A sample revenue

objective may be that the company intends to generate $100,000 in sales during the predetermined time frame

that the marketing plan is in effect. Revenue objectives for marketing plans need to be very specific so that the

company can have a way of measuring the plan's success or failure.

Costs

A marketing plan begins with projected costs for the product sold. The projected costs are made up of the elements

required to manufacture and distribute the product including material costs, shipping costs and personnel costs.

The objective of a marketing plan is to track these costs and find ways of lowering them to make the product more

price competitive in the marketplace. This is not necessarily always a search for the lowest product costs. A

company may determine that the costs of certain materials to make their product are higher than comparable

materials, but the quality is higher. The financial objective with costs is to find that balance which will allow the

company to create a product that meets company standards, but does so at the best possible price.

Advertising

Marketing plans do not only map out advertising strategies, they also monitor advertising costs to try and find the

best value possible for future marketing campaigns. The advertising schedule set up in a marketing campaign is

done using historical data of past campaigns and research done into new advertising costs. When the marketing

plan is complete, the company will analyze the advertising dollars spent and determine more efficient ways to

spend those dollars on future marketing plans.

Profit

Profit projections are a significant part of the revenue projections in a marketing plan, and profit is also monitored

just as closely as revenue. Profit is not just a function of how low the company can get the cost to deliver product, it

is also based on how much the company can raise the asking price. Prices are constantly altered and changed in

various target markets until the projected profit margin is attained.

Setting goals and objectives is vital for any entrepreneur overseeing a new, growing company. Business owners set
different types of objectives, including financial objectives, to give them a solid plan for moving in the direction of long-
term success. Common financial business objectives include increasing revenue, increasing profit margins, retrenching in
times of hardship and earning a return on investment. Revenue Growth

Increasing revenue is the most basic and fundamental financial objective of any business. Revenue growth comes

from an emphasis on sales and marketing activities, and is solely concerned with increasing top-line earnings

earnings before expenses. Companies often set revenue goals in terms of percentage increases rather than aiming
for specific dollar amounts. An entrepreneur may set an objective of increasing revenue by 20 percent each year for

the first five years of a new company's operations, for example.

Profit Margins

Profit objectives are a bit more sophisticated than revenue growth goals. Any money left over from sales revenue

after all expenses have been paid is considered profit. Profit, or bottom-line earnings, can be used in a number of

ways, including investing it back into the business for expansion and distributing it among employees in a profit-

sharing arrangement. Profit goals are concerned first with revenue, then with costs. Keeping costs low by finding

and building relationships with reliable suppliers, designing operations with an eye toward lean efficiency and taking

advantage of economies of scale, to name a few methods, can leave you with more money after paying all of your

bills.

Sustainability

At certain times, companies or brands may be primarily concerned with basic economic survival. Retrenching is a

marketing technique based on a financial objective that attempts to keep a brand alive and keep current

revenue and profit levels from falling any further during the decline stage of the product/brand life cycle.

Companies may be concerned with financial sustainability during periods of economic turmoil, as well. Common

financial objectives for survival include collecting on all outstanding debts on time and in full, de-leveraging by

paying off debt and keeping income levels consistent.

Return on Investment

Return on Investment is a financial ratio applied to capital expenditures. ROI can be applied to two basic scenarios.

First, ROI is concerned with the return generated by investments in real property and productive equipment.

Business owners want to make sure that the buildings, machinery and other equipment they buy generates

sufficient revenue and profit to justify the purchase cost. Secondly, ROI applies to investments in stocks, bonds and

other investment instruments. The same principle applies to these investments, but there is generally no physical,

productive asset used to generate a return. Instead, ROI for investment products is calculated by comparing the

dividends, interest and capital gains realized from investments by the cost of the investment and the opportunity

cost of forgoing alternative investments.

Mission
Chef Vending's mission is to be the leader in introducing innovative, quality vending
machines and restaurant equipment to the market. Through close customer contact
and excellent relationships, we will meet the needs of our customers wherever we
can. Chef Vending will secure sufficient profits from free cash flow from operations,
 to sustain its stability and finance future growth. We will add value to our community
by maintaining a friendly, familial work environment.

Marketing Objectives
Maintain positive steady growth each month.
Increase market penetration every quarter.
Generate increased brand awareness quantified by reactions/
feedback of customer sat the trade shows.

Financial Objectives
Decrease customer acquisition costs by 1% a quarter.
Continue to decrease variable costs through efficiencies gained from
experience.
Increase profit margins by .5% per quarter.

Target Markets
Chef Vending will market its machines to three distinct market segments:

1. End Users- Operators that have their own vending routes who wish
to expand their product selections. Included in this category are large
institutional food service companies that engage in vending operations as
part of their overall food service business.
2. Distributors- Companies that supply operators with machines and
supplies for their operations.
3. Branded Sandwich Manufacturers and Branded Juice Companies- By
working closely with these companies, Chef will customize the machines
to meet the company's specifications and to allow them to "brand" our
machines with their products. They will either supply the machines or sell
them to their customers who will buy product supply for the machines
from these companies.
 Chef has two markets for the equipment business:

1. Restaurants and Hotels - End users who benefit from the equipment
purchased.
2. Equipment Supply Companies- These are large supply houses that
offer a variety of equipment to the food and beverage industry.
The following Market Analysis table and chart are broken down by general market
segments, versus the specifics listed above.

Positioning
Chef Vending will position themselves as an importer of high-end an innovative
vending machines and commercial food and beverage equipment. To achieve this
positioning, Chef Vending will leverage their competitive edge.

Chef Vending will enjoy the traditional benefits of first to market.

Chef will attempt to leverage this position to establish and solidify the
brand in the market. As a small company looking to establish itself, Chef
will be attentive and flexible in meeting the customer's demands.
For Chef's other products, they have design features that will make
them very competitive. In addition to these design features, Chef will also
be competing on price.

Strategies
The single objective is to position Chef as the leader in vending machines and
restaurant food and beverage equipment in the Southeast region. Chef will strive to
aggressively increase their market penetration. The marketing strategy will seek to
first create customer awareness regarding the offered products, develop the
customer base, and work toward building strong customer loyalty.

The message that Chef Vending offers the best vending and restaurant equipment.
This message will be communicated by several methods. The first method is
participation in trade shows that will be a valuable resource. The second method
will be distributor open houses. The third method is the development and use of
 Chef's Internet website. The last method of communication that Chef Vending will
be using advertisements in trade publication.

Marketing Mix
Chef Vending's marketing mix is comprised of the following approaches to pricing,
distribution, advertising and promotion, and customer service.

Pricing- Chef's pricing scheme is designed to be competitive and at

the same time provide Chef and the distributor (when applicable) with a
fair margin.
Distribution- All of the products can be distributed within the
Southeast United States.
Advertising and Promotion- Chef Vending will employ several
different methods for their advertising and promotion campaign.
Customer Service- Exceptional customer service is a necessary
component for making this business successful.

Marketing Research
During the initial stages of the marketing plan development, Chef held several
different focus groups with perspective customers. These focus groups were
developed out of interactions/introductions made at the regional trade show. The
goal of the focus groups was to solicit a significant amount of information from
perspective customers.

Chef was very careful with the facilitation of the focus groups, attempting to insure
that the results were as valid as possible. The groups ranged in size from seven to
nine people. The focus groups were video taped to allow Chef to review them more
carefully after the fact. Overall, the focus groups provide Chef with a wealth of
information that was instrumental for them in launching and growing the business.