Marketing

5.0 Financial Data and Projection

5.1 Projected annual income

Total income of Urban Fresh could be come from few sources such as gross profit which is about 15% from total sales, rebate and trade offer revenue from supplier, selling of merchandising space, impulse purchase point and advertising space in the outlet. The major income source for the Urban Fresh is projected to be contributed by profit margin from total sales, which contributes almost 46% of total annual income. The breakdown of projected annual incomes is as in Figure 5.1below:

Figure 5.1 Projected annual income

5.2 Budgeted annual expenses

In Urban Fresh business, staff wages and salaries, marketing expenses, utilities expenses, rental expenses and others are budgeted as business expenses. In this study, we budgeted 42% of total expenses will be spent for staff wages and salary. The projected expenses are further explained in Figure 5.2 as below:

Figure 5.2 Budgeted annual expenses

5.3 Monthly Financial Forecast

Figure 5.3 Monthly financial forecasts FY 2014

Figure 5.3 shows the monthly financial forecast for FY 2014. In this study we foresee the sales will go up especially during school holiday and festive seasons such as Chinese New Year, Hari Raya and Christmas. The sales are expected to be flat during non-festive seasons from February to April.

5.4 Budgeted marketing expenses

Figure 5.4 Budgeted marketing expenses for FY 2014 to FY 2016

In this study, the proposed long term marketing plan is categorized in 4 parts: 1) Improve customer service, 2) improve communication, 3) reduce cost to the user and 4) increase conveniences. For FY 2014 and FY 2015, we suggest Urban Fresh to focus more on improving their communication with their customer, this include branding, advertising and promotion communication. Hence, 75% of total marketing budget is allocated for communication improvement for FY 2014 and FY 2015. We foresee Urban Fresh brand name will be getting more and...