Proposal

Here is a Mock proposal i did for a company called Wilson Pen



Wilson Pen








Proposal for McKay Buying Group







Prepared by Jeff Brown, Sales Representative






Prepared for McKay Buying Group






July 14, 2006
















Summary
The McKay buying group is looking to strengthen there 105 stores as well as increase the numbers of members in the group and increase there market share. Wilson Pen has come to the McKay buying group with the vision that we can help you succeed the vision the McKay buying has.
Situational Analysis McKay Buying Group

Oversees the purchasing of all products in the group
Presently purchases over 195,000,000 worth or office and stationary supplies
Buys in bulk to give the buying group members a cheaper cost
Wants to Strengthen the Buying Group
Has a goal of increasing the Membership of the group from 105 stores to 115 stores this year
Stores are currently located in Ontario and Western Quebec and looking to expand
Looks for innovative products for its members
Has never had a supplier supply advertising for the buying group

Situational Analysis of the Buying Group Members

Looking for low prices
Trying to get more people into there stores
No advertising budgets
Located in towns approximately 40,000 in size
Store locations are close to box stores
All stores employ 2-3 Sales Representatives
Will have an edge over Box stores as the Targa will not be sold in Box Stores
Looks for growth over the next year
Wilson pen objective
At Wilson Pen we strive to provide our clients with the most innovative pen products on the market to date. We hope to build a relationship with The McKay buying group so that the group and its members will succeed in increasing sales, market shares as well as strengthen them.

Plan
Advertising:
Over the next 5 months Wilson Pen will be supplying 750,000 in advertising for the Targa pen through direct mail campaigns, television advertising, and magazines. Our plan is to have the McKay buying groups’ logo as well as its members businesses and addresses attached to the ads. If you see the attached media schedule you will notice that the media campaign will run from October 7th until December 30th. For the magazine advertising there will be full page color ads put in Canadian Business which comes out at the beginning of each month. The television campaign will be running one day a week for each week from the first of October to the end of December. As you can see from the media schedule there will be commercials during the prime time hours of Global Prime Time Business News, CTV Business News and CBC business news. The ads will be between 30 – 45 seconds in length with a 15 second spot of advertising for the McKay Buying Group and its members. Lastly there is our direct mail compaign that will be sent to over 100,000 professionals in Canada ranging from presidents, vice-presidents, executives, lawyers as well as many other different job categories. Part of the mailing campaign will be sent to Commercial and Industrial sectors so that when your outside sales reps do a call they will know about the product so they don’t have to do all the work. Wilson Pen will be providing the members of the buying group a sheet of contact information so they know who have been contacted and know about the product that’s offered at you stores.

Niche Market:
Our Research and Development Department we have created a niche market of professionls that are ready willing and able to buy this product. In January we sent out a survey to 100,000 professionals and discovered that there needs and wants are currently not being met in this industry. So with this information we did a more indepth study on a test market located around Belleville Ontario, the entire Quinty area to be exact. This market consists of a population of 40,000 – 45,000 and also consists of a commercial and industrial sector. We found out that in markets this size there is room to sell 2100 units in the retail market and another 10,000 units to be sold in the industrial sector. Over the 5 month campaign we have projected a sales profit of $382,000 per store and a profit of $534,000. Listed below are possible discounts that are available to lower the costs of the product as well as increase your profit margins.

Discounts
5% discount on orders over 10 dozen
10% discount on orders over 20 dozen
12% discount on orders over 50 dozen

There are additional discounts available providing you pay in a timely manor
There is a 5% discount on payments under 10 days, a 2% discount if paid by the 30th day and you will have to pay the net costs if payments are later than 90 days.


Costs
Attached are 2 projected cost sheets.
Sheet one lists the Retail projected sales per month for 1 store and all 105 stores combined. This sheet lists the projected units per month, what you will be able to sell them for and the profit you will make, along goes for all the store to the right of the sheet.
For the months of August and September we have predicted these amounts to be sold in your sore and industrial sector, they are a little low because this is the soft sell of this campaign; there will be no advertising during these months. Starting in October you will see a rise in the amounts being sold due to the mass amouts of advertising that is going to be done. And as always in December you will sell the most pens as it is Christmas time and they will be a big demand on this item. The same goes on for sheet 2 of the costs (the commercial section) all of these numbers have been strategically set up by our research and development team. Please take note that the prices listed in the 2 sections do not have the bulk discounts or payment discounts. If you take into effect the over 50 dozen discount (12%) and if you pay with 10 days (5%) you will be able to save an additional 17% off your total purchasing costs.


Wilson Pen
Wilson Pen has been around for 10 years now and is quickly becoming the fastest growing pen company in Canada.

Wilson’s Mission Statement:
Wilson Pen’s Company views its mission as providing quality writing instruments to consumers at a reasonable price, Wilson Pen’s wants to build long – term relations with their consumers and customers Wilson’s wants to be perceived as the leader in innovative products to serve every segment of the market.

Wilson’s Business Credo:
Wilson Pens’s believe in open ethical relationships with their suppliers and customers. The pricing schedule is based on quantity discounts is the same for all buyers. Incentives offered to one customer will be offered to all buyers. The offer of a kickback by an employee the company will be grounds for dismissal.

Where we’ve been and where were going:
Our first year of business Wilson employed 6 people and had sales of 1,500,000, the following year through our Research and Development we created the master tip pen and by year 3 sales increased to $14,500,000. Today Wilson is a $27,320,000 company employing 45 people, in the following year with our new targa line of pens we plan to increase sales through internal research and development. We also plan to increase sales by 65% bringing a one year profitability of 33,000,000. As of last years fiscal period Wilson Pen was ranked 6th out of all the pen manufacturing companies in Canada, and we are looking to raise this number this year with your help.

Recommendation
Attached is an Invoice for the month of August. This invoice has combined the retail and commercial pens for one store as well as a separate invoice for all stores. If you choose to do business with Wilson’s’ I will continue to send invoices on the second week of each month. If you require more product please call 1800 374 3746 and we will have a fresh shipment ready for you in 1 business day.