Marrowstone Advertising
Strategy and Implementation Summary
Marrowstone Advertising Consultants’ business strategy is to enter into a focused or niche market where it can offer a higher standard of quality to its specialized clients. This will allow us to charge a higher profit margin to our clients for these differentiated services. This will also require average project times to be somewhat longer, and therefore we expect initial profitability levels to be lower than average.
5.1 Marketing Strategy
In order to attract clients, Marrowstone will begin to contact promising organizations and offer free consultations, and an initial contract at reduced prices. These promotions will allow us to begin to make our reputation. In addition, Mr. Cole and Mrs. Marks will be traveling to six conventions across the Eastern part of the country during the first year of operations where we will have booths to advertise our services. Finally we will be setting up cold calls to potential clients and have half and full page advertisements in various publications catering to nonprofit organization’s needs.
5.2 Sales Strategy
Marrowstone’s management will be focusing on leveraging its extensive contacts in the nonprofit industry to generate contracts. In October of 2002 the Nature Conservancy announced it was accepting bids for a new long-term advertising contract. Marrowstone’s founder Mr. Curtis Cole has been aggressively pursuing this contact and based on recent events, it is likely that Marrowstone will win the bid, to be announced in February 2003. This will generate both much needed revenue, and if successful, will generate the reputation Marrowstone needs for further contracts. In addition, Mr. Danielson will be pursuing a number of other open-ended contracts through his contacts with youth organizations. At the current time, the Holson Foundation has entered into negotiations with Marrowstone for its disadvantaged youth drive. Finally, our company has bid with the city of Fredrick, Maryland to create a stop smoking campaign for its public offices.
5.2.1 Sales Forecast
Sales are based on the various contract projects we anticipate acquiring in the various market segments. Revenues are based on average costs per project based on estimated time and complexity of project plus and undisclosed profit margin. The company does not have any significant direct costs of sales.

Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Environmental nonprofits | $93,000 | $145,000 | $224,000 |
Youth development nonprofits | $33,000 | $56,000 | $98,000 |
Cultural nonprofits | $69,000 | $110,000 | $93,000 |
Other | $36,000 | $45,000 | $45,000 |
Total Sales | $231,000 | $356,000 | $460,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Row 1 | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |