The Pasta Tree
Strategy and Implementation Summary
The strategy of The Pasta Tree will be to initially push our three most popular sellers; fettuccine, linguini, and spaghettini. Our plan is to introduce the rest of The Pasta Tree’s product line as sales increase and we can negotiate more cooler space for products.
5.1 Marketing Strategy
The Pasta Tree will advertise its products with a 20% off regular price coupon during the first month of the product being introduced into the supermarkets. The Pasta Tree will use in-store displays that will hold the coupons and attract customer attention.
In addition, The Pasta Tree will be a major sponsor of the city’s Canal Run that raises money for children’s cancer research. The run will occur the first weekend the products have been introduced into supermarkets. The Pasta Tree will distribute discount coupons at the event.
5.2 Sales Strategy
The sales strategy is to present our products as an affordable upscale dinner item that is quick to make and tastier than our dry competition.
5.2.1 Sales Forecast
The following table and charts show the rapid ramp-up of sales during the next twelve months of operation.
| Sales Forecast | |||
| FY 2003 | FY 2004 | FY 2005 | |
| Sales | |||
| Supermarkets | $128,000 | $143,000 | $173,000 |
| Grocery Stores | $185,000 | $203,000 | $246,000 |
| Total Sales | $313,000 | $346,000 | $419,000 |
| Direct Cost of Sales | FY 2003 | FY 2004 | FY 2005 |
| Supermarkets | $12,800 | $15,000 | $16,400 |
| Grocery Stores | $18,500 | $20,300 | $23,900 |
| Subtotal Direct Cost of Sales | $31,300 | $35,300 | $40,300 |
5.3 Milestones
The accompanying table and chart shows specific milestones, with responsibilities assigned, dates, and budgets. We are focusing on a few key milestones that should be accomplished.
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Production Facility Expansion | 1/1/2002 | 3/15/2002 | $10,000 | Jill Forman | Production |
| Production Equipment | 3/1/2002 | 3/20/2002 | $40,000 | Jill Forman | Production |
| In-Store Displays | 2/10/2002 | 3/28/2002 | $5,000 | John Wingate | Sales |
| Canal Run | 1/1/2001 | 4/12/2002 | $1,000 | John Wingate | Sales |
| Totals | $56,000 | ||||
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