Marketing Plan for Final Flight - Aerial Cremation Dispersal - Research Proposal Example

Marketing plan for Final Flight of the Final Flight LLC finalflight.us 602-540-8260 Past Member of Arizona Funeral Directors Association, Arizona Funeral, Cemetery & Cremation Association Executive summary Final Flight LLC will be a firm, which offers aerial cremation dispersal services. The company will be a sole proprietorship firm formed under the protection of an LLC. Final Flight services will provide an alternative to the traditional underground burial or spreading of ashes over the ground and in the sea. The company will offer its services on local, state, national and global levels. Final Flight desires to earn high revenues and develop a good market for itself as the number of firms offering such services are low. Shortages in the availability of burial grounds and increasing expenses of traditional burial services are compelling individuals to choose cremation for their loved ones. Cremation is, therefore, preferred by a large section of the society. However, disposing the remains becomes a major issue and most families are seen to preserve it in urns, which in time becomes taxing to preserve. Final Flight aims to provide an effective alternative for disposing the ashes of deceased loved ones by scattering them in the air by means of an airplane. The current paper will analyze the market opportunities and specify different marketing plans of the company so as to realize whether undertaking such a business venture is deemed profitable. Table of Contents Company description 6 Strategic focus and plan 7 Mission statement 7 Vision 7 Goals 7 Core competence 7 Situation analysis 8 SWOT 8 Industry analysis 8 Competitor analysis 10 Company analysis 10 Customer analysis 11 Market-product focus 12 Marketing and product objectives 12 Target markets 12 Points of difference 13 Positioning 13 Marketing program 14 Product strategy 14 Price strategy 14 Promotional strategy 15 Place strategy 15 Financial strategy 16 Five year revenue 16 Organizational structure 16 Implementation 16 Evaluation and control 17 References 18 Appendices 19 Company description As we know, those who identify with a religion, different faiths have different traditions when it comes to cremation. While many Christians have traditionally chosen burial -- mirroring Jesus entombment and the belief that the body and the spirit are one and must be whole for resurrection -- others have not, particularly some liberal Protestants. The Catholic Church lifted its ban on cremation in 1963. While most Muslims prefer burial, a majority of Hindus, Buddhists and Sikhs tend to cremate. Though many branches of Judaism do not cremate, Reform Jews often do. But the No. 1 reason cited for choosing cremation in a national survey was cost. On average, cremation is one-third the cost of burial (not including the burial plot or upkeep), ranging from about $500 to $1,500, according to the Cremation Association of North America. My proposal is to develop a market plan for a new aerial cremation dispersal service. This service will be a sole proprietorship but formed under the protection of an LLC. This company will be called Final Flight LLC, which will be an aerial cremation dispersal service offering an alternative to the underground burial or spreading of ashes over the ground on a local, state, national, and eventually a global level. Aerial Cremation Dispersal is a dignified way to help give closure to the loved ones of the deceased. This marketing plan will answer these questions: • Is cremation on the rise and becoming more accepted in today’s society? • Is there a need for a different form of ash dispersal besides the tradition underground burial or scattering of ashes over the ground? • Would the families of the deceased be interested and feel comfortable with this type of service? • What would be an inexpensive cost that the families would be willing to pay yet turn a profit? Strategic focus and plan Mission statement Our goal is to provide personalized aerial cremation dispersal with the highest standards of dignified and ethical service regarding your loved one’s ashes from the air. We are committed to the highest level of integrity to fulfill the requests of the family. Sunsets become everlasting memorials…when the remains of your loved one are dispersed by air. Vision Our vision is to be viewed as an acceptable and widely used service in the first five years in the field of cremation dispersal. Goals Financial goals Break even the first year of business To increase company revenue 8% per year for the first three years To increase sales by 100 units (dispersals) per year for the first three years Non financial goals Effective advertising campaign (demographics print/radio/television) Complete customer satisfaction Increase word of mouth advertising Core competence The concept of aerial dispersion is an innovative concept. There are very few firms operating in the industry providing such unique services (Brown, 2014). As a result, Final Flight can set itself apart from other firms who offer traditional cremation services. Situation analysis SWOT Strengths Opportunities High Barriers to Entry Continued expansion on-line Highly experienced owner/operator Ability expand the area of services No Competition in the State Affiliate relations with related vendors Ability to sell product on-line Develop wholesale distribution relations Highly visible website Develop proprietary products (Videos) Limited start up risk Sale of business for significant P/E Weaknesses Threats Competitors can offer similar product Changes in regulations can impact business Limited startup cost Insurance cost are continually increasing High transportation cost on long flights Fuel cost are continually increasing Limited flexibility in pricing Increases in price inputs can cause upward pricing Industry analysis Death care is a $17 million per year industry in the U.S (Mathisen, 2013). It includes funeral homes, ceremony arrangers, crematoriums, cemeteries and so on and so forth. The industry has grown widely over the years and explores new and effective ways of disposing the remains of loved ones. It has been observed that the preference of cremation over burial has increased considerably in the recent past. In Arizona itself, over 60% of the people chose cremation over burial. Every year almost 2.5 million people die in the U.S. Of them, nearly 45% were cremated in 2011. The figures are seen to continually rise. It is expected that in the next few years, cremation services would rise up to 70% (Mathisen, 2013). Families chose to cremate their deceased loved ones because it is cost effective as compared to burial. The rising costs of land and expenses in general have made it difficult for most families to acquire land for family cremation. The softening of the Catholic Church is one of the potential reasons behind increase in the cremation activities in the recent decade. For centuries, the church had outlawed the concept of cremation. The laws still express a preference towards burial. However, the ban has become a thing of the past now. Bishops nowadays permit conducting a funeral mass with cremated remains, which facilitated development of a number of firms offering cremation services, thereby broadening the industry size. As most Americans are seen to live away from their families and hometowns, several of them prefer to cremate their loved ones and consider it to be the most practical method (Funeral Inspirations, 2014). Considering such aspects, it is estimated that Final Flight will be able to successfully grow its business in the industry as it primarily depends upon the increase in preference towards cremation. Competitor analysis Aerial cremation is a new and emerging concept in Arizona and across the U.S. Although there are firms in Arizona who provide cremation services, none of them offer the aerial cremation. This fact in turn provides Final Flight with a high competitive edge. The company would be successful in developing business as there is no fear of losing customers to other service providers. However, in other regions of the U.S., there are a number of firms providing aerial cremation services such as, Hawaii Ash Scattering, Air Legacy and The Phoenix Flight. Then again, such firms do not provide any services in Arizona, which safeguards the market for Final Flight. Aerial cremation service is not a capital intensive sector (Kalfel, 2009). This aspect may attract other entrepreneurs and businesses in future. It is, hence, essential for Final Flight to establish itself well so as to obtain and sustain a strong position in the market. The company focuses upon delivering high quality services in the most dignified and ethical manner. Final Flight understands and respects the grief and sense of loss experienced by people who lose their loved ones. Complete care will be taken so that aerial dispersion of the ashes is carried out in a customer preferred manner. Offering high quality services is one of the strategic ways in which Final Flight aims to establish itself in the market and create adequate goodwill in the long run. Company analysis Since there is no other firms in Arizona providing aerial cremation, expectations from the services offered by Final Flight are high. Final Flight will offer efficient services, alongside of maintaining respect for sentiments of the family who have lost their loved ones. Adequate importance will be given towards promoting the services offered. Promotional activities will mainly highlight on the advantages of aerial ash dispersion. The cost of aerial ash dispersion is analyzed to be quite affordable. The company will undertake adequate marketing and promotional activities in respect of popularizing its services and expanding the customer base. The business start up cost to be incurred by Final Flight is low. Moreover, the procurement cost of airplane has already been paid, thereby further lowering the costs of setting up the business. There are also no investors required by Final Flight as the initial investments are low. The owner is a highly experienced commercial pilot who has worked with a number of organizations in the past related to ash dispersion. Additionally, the company will have a highly talented team of employees who are expert sky divers, airplane flyers and photographers. Figure: Picture of an aerial cremation dispersal being performed (Source: The Phoenix Flight, 2014) Customer analysis It has been analyzed that the individuals whose loved ones have passed away require some gesture that helps them to upkeep their memories for the years ahead. Aerial dispersion is, therefore, considered as a unique and cost effective way of facilitating closure with those who have deceased. Aerial dispersion is regarded as an effective alternative to burial or boat scattering. Final Flight will provide its customers the chance to say goodbye to their loved ones in a very unique manner. The company predominantly expects to attract those consumers who are looking for a cost effective, yet highly admirable, way of disposing the cremation remains. It is generally seen that individuals who are well-educated and are not attached with the traditional rituals and beliefs are most likely to opt for aerial dispersion. The research conducted upon the subject matter of aerial dispersion reveals that there is a rising demand for such services in the U.S. The increase in cost of living and shortage of living space and land has induced a slow abstinence from the traditional burial services. Traditional burial services can cost up to $7000, including the funeral services, casket cost, burial vault and embalming expenses. Even the dispersion of ashes in sea ranges from $3000 to $7000 (Vergas, 2008). Considering such aspects, many people consider adopting the aerial dispersion services, which are not only cost effective, but also saves the loss of living space or land. Furthermore, the services are authorized by the Environment Protection Agencies. Developing alternative ways of disposing ashes contributes towards mitigating the issue of burial grounds becoming overcrowded to a certain extent. Market-product focus Marketing and product objectives Final Flight’s primary objective is to provide high quality service. The services will provide individuals with the opportunity to disperse the ashes of their loved ones freely in the atmosphere. This act will be an opportunity to establish a closure with the deceased loved ones every time they gaze at the skies. The objective of the company is to offer the individuals a unique and cost effective means of dispersing the remains. Final Flight with its unique services aims to set a niche market for itself in Arizona. Population explosion has caused a shortage in the availability of land for traditional burial services. The prices of the traditional burial services have also increased substantially. Under such circumstances, alternative methods of ash dispersion become a logical substitute choice. Moreover, the dispersion will be carried out respecting sentiments and requirement of the customers. Final Flight desires to make individuals aware about the fact that aerial cremation dispersal services are equally dignified as other traditional methods. The services are also legally recognized. Final Flight through its unique services in Arizona wants to enlarge the market scope for aerial ash dispersion and attract more people towards this concept. Final Flight expects to achieve significant popularity with its offerings as there is high growth in cremation and a number of people are shifting away from traditional burial services. Since there is no close competition for the company in the market, Final Flight is expected to earn high revenues (Cohen, 2005). Target markets Final Flight will cater to any specific category of individuals. The services will be open for everyone in Arizona and other regions of the U.S. In general, it has been observed that the alternative methods of cremation remains dispersal are undertaken by individuals who are well-educated and are seeking ways to dispose the remains of their loved ones without investing in land. The company targets to attract residents of the metropolitan cities who are most likely to adopt such alternative methods. Most religions of the world accept aerial cremation, apart from Muslims and Jews, which further broadens the market for the services offered. Points of difference The Final Flight service is hassle free and does not involve the loss of living space or land. Since the ashes are dispersed freely in the atmosphere, there are no costs associated with preservation of the ashes. When ashes are preserved in an urn, a considerable amount of interior space is lost. It is also emotionally difficult to preserve ashes of loved ones in an urn as its reminder physical presence is a constant reminder of their memories, which makes the departure grief persist longer. On the other hand, dispersing remains aerially is quick and simple. There is no physical presence of the remains surrounding the loved ones, thereby making it easier to overcome the grief. The memories of those who have passed exist majestically in the skies. This idea is considered to be less haunting and more spiritual. Apart from the emotional aspects, aerial dispersal of ashes is also considerably affordable in comparison to the traditional and other methods. There are no expenses to be incurred in respect of embalming, burial vault or casket. The time required for dispersing the ashes is also less. Research has claimed that a growing number of people are choosing aerial dispersion method due to its various benefits. Positioning Final Flight will offer its services in Arizona, West Coast, East Coast, Hawaiian Islands and internationally across Asia and Europe. Since Arizona does not have any other firms offering such services, it is strategically suitable for setting up the business. Final Flight will also provide its services to other regions of the U.S. depending upon needs of the clients and convenience of operations. Expanding to other countries is, however, strategically not suitable as the concept of aerial dispersion of ashes in not so popular across the globe. Such innovative and unique methods are largely adopted in the U.S. Final Flight also expects to widen their aerial dispersion services by incorporating sky dive scattering and hot air balloon scattering over the coming years. It is essential that the company develops new types of services so that it is possible to maintain competitive advantages in the market (Westwood, 2013). Marketing program Product strategy The ashes will be dispersed at an altitude of 8500, 9500, 10500 and 11500 feet above sea levels and highest obstacles. The aerial cremation services will be conducted as per the guidelines established by the EPA and the process of dispersion will take place in the areas where it is legally authorized. Dispersions will be done individually. Adequate care and dignity will be maintained while handling remains of the deceased. Final Flight will also provide eulogy facilities during the dispersal on special request of the clients. The family of the deceased will be provided with a special notarized certificate of aerial dispersal. A picture of the ashes being released will also be given to the family. Due to legal constrains and safety reasons, the family members of the deceased will not be allowed to be present in the dispersal flight. The company would primarily charge fees for providing the certificate and pictures. The pilot’s fees and the cost of fuel are given as donations to the deceased’s family. Payments from the clients will be received in the form of checks, Postal money orders and in cash. The U.S Military services or Fraternized organization reduces the cost of dispersal by $25 if there is adequate document support. The company desires to include diverse ways of aerial dispersion, besides airplane scattering in the coming years, so as to establish a wide spread market (Kennedy, 2006). Price strategy Break even analysis The figure 2 below shows that the company aims to achieve break even in the first year of operation itself and gradually increase their revenues henceforth. The company wants to provide affordable services so as to attract individuals belonging to the different income groups (Gronroos, 2000). The service provided by Final Flight will be lower than the traditional burial services or other methods related to dispersion of remains so that it is able to achieve break even in the first year of operations. Break even is a point where a company is able to generate sufficient revenues to meet all its expenses. Post break even point a firm begins to earn profits. In the first year of operations, Final Flight expects to suitable achieve its break even point. From the second year onwards the projected financials of the company shows high profits. Figure 2: Projected profit Promotional strategy Final Flight would promote its services through advertising campaigns, sales promotion activities, publicity and awareness programs and seminars. The advertising will be done mainly through online media, newspapers and magazines. Complete efforts will be taken by the firm to inform the people about the services offered. The promotional activities will be carried out largely in the months of October, November, December, January and February. The population of the state is seen to be high during these months. In order to further develop the business, the company will reach out to different funeral service firms for developing business tie ups (Vorhies & Morgan, 2005). Place strategy Final Flight will scatter the ashes 1000 feet above the highest obstacle within a horizontal radius of 2000 feet of the aircraft, while dispersing over congested area. In other areas, the ashes will be dispersed over 500 feet above the highest obstacle and 2000 feet above national forest areas. The company will also incorporate the clients’ requests in respect of the height from which the ashes are disposed. The remains will be disposed within two weeks if it requires to be done locally within Arizona. In case of non-local flights, the dispersion will be done in 60 days. The ashes can directly be delivered to Final Flight through the funeral director. They can also be sent through the U.S. Post Office Registered Mail. The clients are required to include a Xerox copy of the death certificate of the deceased, the payment made and a copy of the authorization form while sending the remains. Financial strategy Five year revenue The projected five year revenues of the company are as follows: Figure 3: Sales projections As shown in the above figure, the company expects to increase its sales by 8% in the first three years and subsequently by 10% each year during the first five years of operation. In order to continue promotional activities and gradually expand the organization size, it is essential for the business to extend their operations. Organizational structure Final Flight will have a functional organizational structure, whereby there will be a number of divisions as per the organizational requirements. The structure will mainly comprise departments related to sales, marketing, product, service and finance. Each department will be headed by a senior manager, along with a number of associate employees. The maximum number of employees will be in the service department, which would carry out the dispersal activities. Implementation Final Flight will proactively implement its marketing strategies. After developing a detailed plan in respect of marketing and promotion, the company will hire a number of advertising agencies and marketing organizations in order to carry out the proposed plans as well as gain expert assistance. Evaluation and control In order to check efficiency of the plan of operations, the company will be required to frequently compare budgeted data with the actual data. The comparisons would be made in respect of revenue, costs and service growth. Such an evaluation program would enable the company to ensure that the marketing strategies are being implemented in a manner such that the organizational goals can be achieved. A proper evaluation system helps in reducing costs as well as avoids wastage of resources (Vorhies & Morgan, 2005). References Brown, W. N. (2014).  Aerial disposal and dispersal of cremated remains going out with a bang. Washington DC: U.S. Patent and Trademark Office. Cohen, W. A. (2005). The marketing plan. New Jersey: John Wiley & Sons. Funeral Inspirations (2014). Dispersing the ashes. Retrieved from http://www.funeralinspirations.co.uk/information/Dispersing-Ashes.html Gronroos, C. (2000). Service management and marketing: a customer relationship management approach. New Jersey: John Wiley & Sons. Kalfel, J. (2009). So Youre Cremated ... Now What?: Over One Hundred Creative Ways to Scatter Your Ashes and Other Useful Information. Bloomington: iUniverse. Kennedy, D. S. (2006). The Ultimate Marketing Plan: Find Your Hook. Communicate Your Message. Make Your Mark. Ohio: Adams Media. Mathisen, T. (2013). Cremation is the hottest trend in the funeral industry. Retrieved from http://www.nbcnews.com/business/business-news/cremation-hottest-trend-funeral-industry-f1B8068228 The Phoenix Flight (2014). Aerial Scattering of Cremated Remains. Retrieved from http://www.thephoenixflight.com/ Vergas, T. (2008). As Families Opt for Cremation, Industry Expands Services, Choices. The Washington post. Retrieved from http://www.washingtonpost.com/wp-dyn/content/article/2008/09/06/AR2008090602853.html Vorhies, D. W. & Morgan, N. A. (2005). Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing, 69(1), 80-94. Westwood, J. (2013). How to write a marketing plan. London: Kogan Page Publishers. Appendices Financial projections Projected profit and loss statement for Final Flight     Particulars Amount in $   Year 1 Year 2 Year 3 Year 4 Year 5 Sales 18,500 19980 21578 23735 26108 Less- cost of services           Remains procurement expenses 500 550 600 650 700 Storage expenses of remains 250 300 350 400 450 Total Cost of services 750 850 950 1050 1150             Gross profit 17,750 19130 20628 22685 24958             Operational expenses           Fuel charges           Insurance 1200 1200 1200 1200 1200 Hanger fees 2400 2400 2400 2400 2400 Annual inspection 800 800 800 800 800 Radio Advertising 5400 5400 5400 5400 5400 Internet Advertising 300 300 300 300 300 Newspaper 150 150 150 150 150 Additional expenses 7500 7500 7500 7500 7500 Total operational expenses 17750 17750 17750 17750 17750             Net profit 0 1380 2878 4935 7208 Read More