Brandmark Advertising National Business Plan

B r a n d m a r k A d v e r t i s i n g I n n o v a t i o n T h r o u g h A d v e r t i s i n g

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Executive Summary

Brandmark Advertising is a digital advertising company that is widely known for both its digital

advertisements and original crafting of logos. Clients are offered several highly effective service packages

designed to promote its company’s image. Brandmark exceeds clients’ expectations for brand recognition by

strategically positioning their company’s image through eye popping digital advertisements. Brandmark’s

unique approach to individually tailored advertising allows for clients’ maximum sales through pinpoint

accuracy of their target audience. The company positions itself as a reputable, premium service in order to

maintain a strong brand name and effectively cater to premium clients. By utilizing the newest and most

effective creation services, Brandmark sets the benchmark for quality standards in the advertising industry.

Ultimately, all this contributes to creating the ultimate advertising experience, because at Brandmark, we

believe in innovation, innovation through advertising.

The digital advertising industry is one of the fasting growing industries in the United States and has

consistently been experiencing double digit growth for the past ten years with a compounded annual growth rate

(CAGR) from 2005 to 2014 of 16.4% and an increase of total revenue from 2005-2013 of approximately 240%.

According to the Interactive Advertising Bureau (IAB), internet advertising revenue is at its highest peak in

history, estimating over $48.3 billion by the end of 2014. People are endlessly connected to digital media due to

the rise of smartphones and tablets. Consumers rely on these connections providing the digital advertising

industry as well as Brandmark, the opportunity to continuously expand.

Brandmark Advertising’s primary goal for the 2014-2015 fiscal year is to generate $800,000.00 in net

profit. The company strives to achieve this goal by creating secondary goals such as increasing its amount of

contracts by 15% from the previous year, minimizing expenses while maximizing sales, and creating two

strategic partnerships with its indirect competitors. By following these goals, Brandmark will be able to

generate more sales through its new marketing strategies, minimize risk factors through strategic partnerships,

and maximize profit by minimizing expenses. These secondary goals ensure that Brandmark will reach its

primary goal of attaining $800,000.00 in net profit, allowing for a profitable investment to any investor.


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Table of Contents

INTRODUCTORY COMPONENTS

Executive Summary i

Company Description 1

Mission Statement 1

MANAGEMENT FUNCTIONS

Planning 2

Organizing 3

Directing 4

Controlling 4

ASSESSMENT OF THE ENVIRONMENT

Current Economic Conditions 5

Real Industry Analysis 5

Virtual Industry Analysis 6

Target Market 7

Market Segmentation 7

Competitive Analysis 7

THE MARKETING MIX

Product/Services 8

Price 9

Placement 9

Promotion 9

Positioning 10

BREAK-EVEN ANALYSIS 11

FINANCIAL DATA

Income Statement 12

Balance Sheet 13

Cash Budget 14

Financial Write-Up 16

SWOT ANALYSIS & DISCUSSION OF BUSINESS RISKS

SWOT Analysis 17

Discussion of Business Risks 19

APPENDIX A-I


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Company Description

Brandmark Advertising is a digital advertising company that is widely known for both its digital

advertisements and original crafting of logos. Clients are offered several highly effective service packages

designed to promote its company’s image. Brandmark exceeds clients’ expectations for brand recognition by

strategically positioning their company’s image through innovative digital advertisements. Brandmark's unique

ability to evolve and adapt to the needs of its clients has lead the company to constantly grow and develop its

strategies leading the company down many new paths. What began with a specialty in brand marketing,

eventually transformed into advertising with a focus in advergaming; leading the company to realize its true

passion, digital advertising. Keeping up with technology, and staying innovative is the foundation on which has

inspired the company to continue its growth. Brandmark Advertising is located within Edward R. Murrow High

School, 1600 Avenue L, Suite 464, Brooklyn, NY 11230. The company has been functioning as of November

2011 and will continue to operate as a C-corporation. Brandmark Advertising is privately owned by Virtual

Enterprise International.

Mission Statement

Brandmark Advertising provides its clients an investment opportunity in which they can emerge as an

esteemed and renowned brand. The company’s passion is to promote the vision of its clients through

personalized digital advertisements as well as eye-popping logo creations. Brandmark’s mission, is to become

the official go-to company for all premium digital advertising needs. The company’s unique approach to

individually tailored advertising allows for clients’ maximum sales through pinpoint accuracy of their target

audience. By personalizing advertisements using cutting edge technology, Brandmark creates the ultimate

advertising experience, because at Brandmark, we believe in innovation, innovation through advertising.



MANAGEMENT FUNCTIONS

Planning

Business Objectives 2014-2015

Primary Goal

- To generate $800,000.00 in net profit

Brandmark’s main goal is to secure $800,000.00 in net profit by the end of the fiscal year April 30th,

2015. The company will achieve this by minimizing expenses while maximizing sales, increasing its amount of

contracts by 15%, and forming two strategic partnerships with its competitors in order to minimize risk factors.

Secondary Goals

- To increase Brandmark's number of contracts by 15%

The company projects an increase in contracts of 15% from the previous year. These contracts will be

obtained through Brandmark’s new pricing strategies and effective marketing campaigns. Brandmark’s new

premium-bundle pricing strategies will create a more client focused, and beneficial experience while also

helping to maximize marketing efforts. This will also help to also maximize marketing efforts, allowing

Brandmark to successfully secure an increase in contracts by 15%.

-Minimize expenses while maximizing sales

Brandmark Advertising plans to reduce its utilities expense with the purchase of new solar panels from

Flashcomm while also reducing its salary expense through offering employee stock option plans. By gaining a

shareholder interest within the company, employee motivation will increase and sales will be maximized. The

company will also create new sales opportunities by strategically partnering with its indirect competitors.

-Create strategic partnerships with two competitors

As an opportunity to help maximize sales, Brandmark will create two strategic partnerships with its

indirect competitors. While Brandmark’s core business consists of advertisement creation, its competitor’s core

business consists of advertisement posting, allowing Brandmark the opportunity to combine services and share

clients. Brandmark will be able to create advertisements that are displayed in its competitors posting services

such as magazines and newsletters, ensuring a profitable partnership opportunity.



Organizing

Brandmark Advertising is comprised of 28 motivated employees who all share a common passion for

the company. The company is organized in a hierarchical structure in order to ensure roles and responsibilities

are easily understood through a chain of command. Each department consists of one Chief Officer, one

Manager, and multiple employees. Within each department, the Chief Officer delegates tasks and upcoming

assignments to the manager, who in turn delegates those tasks to their employees. A chain of command is

essential in maintaining good workflow and communication between departments.

The company also has a specific workflow policy in order to maintain efficiency. Sales are secured by

the marketing department, who will then send a contract to the client in order to guarantee payment and

maintain a binding agreement between both parties. Upon receiving the contract, the finance department will

create an invoice and monitor all accounts receivable while the account manager of the contract will be

responsible for maintaining a healthy relationship with the client and gaining a good perspective of their

business by personally going over a questionnaire with their client. This questionnaire allows Brandmark’s



creative department to specifically tailor the client’s advertisements to its desired target market. Once the

advertisement is created and the client approves, it is posted in the desired space and the contract is fulfilled,

allowing Brandmark to create the ultimate advertising experience.

Directing

Brandmark Advertising’s administration team works closely in order to ensure the goals and visions of

the firm are achieved. Administration holds multiple meetings each week in order to discuss employee progress

on objectives set forth each month for all departments, while regularly keeping in contact with each other. They

then relay the information to officers, who delegate tasks for each week, check on existing work, and deal with

any internal problems or concerns. Officers then notify their managers and employees of new tasks and

objectives that need to be fulfilled on the given deadlines. Aside from verbal communication, employees and

officers alike receive information often through emails and social media.

Controlling

The company’s employees consistently stay on task through teamwork and dedication. At regular officer

meetings, deadlines are discussed and decided for each task. In order to ensure all tasks are met, officers are

expected to sign contracts each week ensuring that they will complete all weekly tasks assigned. Administration

works daily to solve any problems that arise within the company, while the COO monitors each department

through routine progress checks. At the end of each day, work is collected and examined for efficiency. Once

work is reviewed, it is returned to employees with multiple suggestions on improvement for maximizing

employee productivity. Several evaluations are also conducted throughout the year, ensuring that all employees

are working at their full potential and maximum efficiency because at Brandmark, the company’s greatest asset

is its employees.



ASSESSMENT OF THE ENVIRONMENT

Current Economic Conditions

United States Economy

The United States GDP was $16.8 trillion in 2013 and $17.4 trillion in 2014; showing an approximate

increase of .03% - $630.2 million from the previous year.1 The unemployment rate has decreased by

approximately 1.2% since last year and is currently at 5.7% as of January 2015.2 As GDP is rising, the

unemployment rate is dropping, causing an increase in production, ultimately producing more goods and sales;

causing businesses to need more employees. With more people working, there will be more consumer spending,

and an increase in company sales, ultimately allowing businesses the opportunity to spend more on advertising.

With the American economy gradually prospering, more businesses are given the opportunity to invest more

money into advertising.

German Economy

The currency conversion rate from EURO (EUR) to US Dollar (USD) is valued at 1 EUR to 1.14

USD, as of February 25, 2015.3 This makes Brandmark’s prices seem less expensive in European countries due

to the conversion rate. The company is currently targeting firms in Germany due to its recent state of economic

recovery. Germany is the largest national economy in Europe with its GDP rising from $3.42 trillion in 2013 to

$3.63 trillion in 2014; showing an approximate increase of 6%.4 The unemployment rate has decreased by .2%

since last year and is currently 4.8% as of December 2014.5 Similar to the US economy, the GDP is rising as the

unemployment rate is decreasing. These conditions create an advantage for Brandmark Advertising to obtain

more clients, by offering its services to these German companies.

Real Industry Analysis

Digital advertising is one of the fastest growing industries in history. People are endlessly

connected to digital media due to the rise of smartphones and tablets. Consumers rely on these virtual

connections daily, providing the digital advertising industry the opportunity to continuously expand. According

to the Interactive Advertising Bureau (IAB), internet advertising revenue is at its highest peak in history,

estimating over $48.3 billion by the end of 2014. The half-year online advertising revenue mark for 2014 was

1 http://data.worldbank.org/indicator/NY.GDP.MKTP.CD 2 http://data.bls.gov/timeseries/LNS14000000 3 http://www.xe.com/currencyconverter/convert/?From=EUR&To=USD 4 http://www.tradingeconomics.com/germany/gdp 5 http://www.tradingeconomics.com/germany/unemployment-rate

http://data.bls.gov/timeseries/LNS14000000

http://www.xe.com/currencyconverter/convert/?From=EUR&To=USD

http://www.tradingeconomics.com/germany/gdp

http://www.tradingeconomics.com/germany/unemployment-rate



already totaled at $23.1 billion, an increase of 15.1% from the previous year’s 2013 half-year mark of $20.1

billion.

Internet advertising revenue for the first-quarter of 2014 was totaled at $11.4 billion, which increased by

$264 million in the second-quarter totaling at $11.7 billion. The third-quarter internet advertising revenue

totaled at $12.4 billion, which increased by $700 million from the second-quarter.6 The third-quarter is the

highest third-quarter so far recorded with a 17% year-over-year growth trailing the 10-year compound annual

growth rate (CAGR) from 2005 to 2014 of 16.4% and an increase of total revenue from 2005-2014 of

approximately of 283%.

Clearly expressed through previous years, it is evident that 2015 is bound to be a year of tremendous

revenue growth. This analysis proves that the digital advertising industry is rapidly expanding. With Brandmark

specializing in digital advertising, the company will be able to continue to attract a tremendous client base,

therefore generating steadily increasing revenue and sales. Brandmark will take advantage of this rapidly

expanding industry and continue to be a profitable investment for investors. 7

Virtual Industry Analysis

The majority of the companies in the Virtual Enterprise network depend on digital advertising to

effectively promote their businesses. This gives Brandmark the opportunity to capitalize on this and generate a

large amount of sales. Fortunately, there are only a few advertising companies that are listed as portal vendors

on Veinternational.org including Brandmark Advertising. This small amount of competition enables the

company to attain a larger portion of the market share.

After a broad analysis of the virtual market, it was revealed that companies in New York City that had

negative retained earnings spent little to no money on advertising. Further analysis revealed that companies who

spent over $10,000 on advertising had at least $100,000 in retained earnings. According to the data analyzed,

companies that did spent money on advertising had significantly more sales over all than those companies who

did not spend money on advertising. (According to the reported financial data for the fiscal year of 2013-14).

Evidently, advertising plays a huge role in generating sales and income for a firm. Through the reported data, it

is clear to see that the digital advertising industry is very effective and profitable- allowing Brandmark the

opportunity to continue to be a profitable investment.

6 http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-061214 7 http://www.iab.net/research/industry_data_and_landscape/adrevenuereport

http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-061214

http://www.iab.net/research/industry_data_and_landscape/adrevenuereport



Target Market

Brandmark Advertising’s primary Target Market consists of established VE firms in existence for more

than 2 years. Since these companies already have an established advertising budget, they are able to afford

premium services.

Market Segmentation

The company segments its target market geographically into firms that operate domestically within New

York and California as well as internationally in Germany. Brandmark Advertising then researches these

locations, taking into account time zones, culture, language barriers, and currency. Understanding these factors

better enables the company to create long lasting relationships with its clients.

Brandmark Advertising further segments its target market demographically into potential companies

who have sales of at least $200,000. This allows Brandmark to specifically target companies that can afford its

premium services.

Brandmark also segments its target market behaviorally by targeting companies that have a history of

using a professional advertising company.

Brandmark Advertising’s secondary market consists of non-virtual clients and is comprised of school

faculty, small businesses, and non-profit organizations. Brandmark offers an inexpensive alternative to

traditional advertising making it attractive to real world clients.

Competitive Analysis

The digital advertising industry has provided Brandmark Advertising with a unique opportunity. Due to

the presence of only a few portal vendors in all of Virtual Enterprise, Brandmark has the opportunity to control

the majority of the market share and capitalize on it. Brandmark Advertising’s competitors are other VEI portal

vendors within the Virtual Enterprise Network. This includes companies such as T-Squared (New York), VE

Connected (New York), Exorbia Advertising (New Jersey), and Central Enterprises (Pennsylvania). The

majority of these firms do not offer true ad creations, only posting, leaving Exorbia Advertising as Brandmark's

only direct competitor.

Direct Competitors

Exorbia Advertising is a New Jersey based firm that focuses on video commercials, banners, and logo

creation. This firm is in its first year of operation and is still relatively inexperienced. Exorbia offers video

commercials that cannot be posted on the VEI website. In contrast to Brandmark, Exorbia doesn’t use state of



the art programs, (InDesign, Illustrator, Photoshop, CS6) overall, creating advertisements that are visually

inferior.

Indirect Competitors

New Horizons, V-Real Magazine, and T-Squared are all firms located in New York that publish tabloid

magazines focused on entertainment, and features ad space in its magazine. Since they only post a firms logo

and slogan, the companies cannot match Brandmark's quality of work, making the only threat they pose, their

relatively low prices.

VE Connected, located in New York, holds virtual trade shows in order to help businesses engage in

sales with other participating firms. The problem with posting in an online trade show is that only those who

attend the trade show see these advertisements. To maximize efficiency, Brandmark takes the most direct route

by posting its advertisements on the VEI portal which is not just seen by trade show attendees, but everyone

who visits the VEI website.

Central Enterprises, located in Pennsylvania, offers advertising as well as a virtual library to better group

existing firms into several categories. However, the firm directory on the VEI website serves the same purpose

as the virtual library and is also easily accessible. They pose no threat to Brandmark Advertising since they

currently have zero clients and have not even posted their own advertisement on the VEI portal.

Some strengths that Brandmark Advertising’s competitors have are magazine advertisements, virtual

trade shows, and commercials. However, companies in the VE network are not always reached using these

methods. Also, almost all of Brandmark's competitors focus on up-keeping their magazines, not on advertising.

Brandmark creates superior advertisements that appear on the VEI portal, a universal stage that caters to

all target markets. Unlike many other advertising firms who only offer advertisement space on the VEI portal,

Brandmark Advertising creates a specifically tailored advertisement unique to each company’s image and

preferences on a platform that caters to its clients’ target market. This gives Brandmark Advertising an edge

over its competitors. Though, these companies offer a selection of advertising services, they do not promote a

company’s brand or image effectively. Brandmark takes into consideration the needs and wants of clients, by

effectively crafting advertisements and creating strong business relationships. Other companies lack innovation

and creativity which are both qualities that are embedded in the foundation of Brandmark Advertising.

THE MARKETING MIX

Product

Brandmark Advertising offers individualized digital advertisements, as well as creative logo designs.

The company’s core business is its unique creation service, which allows Brandmark to craft a specially tailored



advertisement for each client by portraying their firm’s image and brand to its desired target market.

Furthermore, these advertisements will be posted on Brandmarkve.com and Veinternational.org; a central

internal hub for all firms in the VE network. Brandmark Advertising also specializes in the development and

creation of a logo or the redesign of an old one. This logo will be a reflection of a company’s vision and what

makes them unique from other firms. In addition, Brandmark Advertising offers eye catching digital fliers and

business cards that will further promote a business. The company offers clients the opportunity to expand their

advertising ideas by giving it “legs to live in every media”.

Price

Brandmark Advertising uses both premium and bundle pricing strategies in order to maximize profits.

Due to Brandmark's high quality services and prestigious reputation, the company is able to set premium prices

for its clients. Premium pricing will allow a more client-focused and beneficial service. With fewer clients who

pay premium fees, Brandmark will have the opportunity to forge strong relationships and individually cater to

each client’s needs in order to create the Ultimate Advertising Experience. Furthermore, Brandmark will

strategically implement a bundle pricing strategy putting together high quality services in one package for a

cheaper price. Bundle pricing will allow clients to get the greatest value out of Brandmark's services, now

giving customers an incentive to buy services they would not have individually.

Placement

Brandmark Advertising makes both virtual and real sales throughout the year. Brandmark's sales

revenue is generated from trade shows, tele-commerce and non-virtual enterprise sales. 65% of sales revenue

comes from trade shows, 23% of sales revenue comes from tele-commerce and 12% of sales revenue comes

from non-virtual sales. Brandmark's non-virtual sales consist of creating business cards, crafting advertisements,

designing logos, creating flyers, and designing posters for Edward R. Murrow High School as well as various

local businesses.

Promotion

Brandmark Advertising’s promotional budget consists of $15,000 which will be allocated into magazine

exposure, advertisement posting fees, and showcasing Brandmark’s pro-bono work. Two magazine articles will

be purchased from Vreal Publications for $2,700 each that will include a detailed description of the firm and its

services along with exemplary work. Brandmark will also allocate $5000 to post its advertisements on

Veinternational.org, and use the remaining $7,300 towards its pro-bono work. As an advertising company,



Brandmark takes advantage of its own creation services, allowing the company to save money on advertising

and focus its attention towards other methods of promotion.

Brandmark Advertising strategically utilizes both digital advertising and direct marketing as its initial

form of promotion. The company utilizes both tele-commerce, and digital advertising as its initial forms of

promotion. By using tele-commerce, the company is able to reach any business, and fully address the needs of

its clients in order to maintain a good relationship. Through the use of digital advertising, Brandmark is able to

connect its advertisements to the entire community, through the central hub of Virtual Enterprise,

veinternational.org. Since this site is so significant due to its worldwide use, the website allows the company to

effectively reach any clients’ target market. By annually presenting the company’s services in local, regional

and international trade shows, Brandmark will have the opportunity to forge relationships with new clients. In

addition, Brandmark Advertising will choose a start-up company that the firm will advertise free of charge (Pro-

Bono) in order to showcase Brandmark’s unconventional style of advertising. By displaying the positive effects

of digital advertising, the company will be able to generate a positive perspective of Brandmark to the public.

Brandmark also plans to promote its business via social media, flyers, and emails.

Positioning

Brandmark Advertising positions itself as a reputable, premium service in order to maintain a strong

brand name and effectively cater to its premium clients. Brandmark offers its clients premium services

consisting of specially crafted advertisements, tailored to the specifications of each client using cutting edge

technology. The company will utilize special creation services such as Photoshop, CS6, InDesign, and

Illustrator in order to set the benchmark of quality standards in the advertising industry. Brandmark creates the

ultimate advertising experience, because at Brandmark, we believe in Innovation, Innovation through

Advertising.



BREAK-EVEN ANALYSIS

Brandmark will make use of the break-even analysis to decide the pricing necessary to reach the

company’s anticipated contracts and start generating a profit. The company’s costs consist of its fixed cost

totaling $1,213,731.49, its average cost of goods sold (or variable cost) of $6,000 and its average cost per

advertising package which is $27,000. The company has established a break-even point of $1,566,000 with an

average profit margin of 77.78%, showing that the company must sell 58 packages per year in order to break-

even. This point will be surely surpassed by the obtainment of contracts and the involvement in trade shows.

After this, the company will begin to make a profit.

Break Even $1,566,000

58 Contracts

Data Required for Break-even Analysis

Average Selling Price per Sale = $27,000.00

Average Cost of Goods Sold Per Sale = $6,000.00

Average Profit Rate = 77.78%

Annual Fixed Cost = $1,213,731.49

Total sales at break-even in units (pkgs) =

Fixed Costs/(Avg. Selling p/pkg.-Avg. Total cost p/pkg.)

58 packages = $1,213,731.49/($27,000- $6,000)



FINANCIAL DATA









FINANCIAL WRITE UP

Projected/Actual Income Statement

Brandmark’s Projected/Actual Income Statement for the year ending April 30, 2015 exhibits that the

company will exceed to cover all of its operating expenses and continue to make a profit. The company

projected that by December 31, 2014 a net income before taxes of $532,973.20 would be obtained. The actual

net income before taxes as of December 31, 2014 totaled $678,363.20 a 27% increase from its projections. As

of December 31, 2014 the company reached sales totaling $1,014,884.33. By continuing to participate in trade

shows as well as generate both non-VE and VE sales, the company will easily be able to arrive at its

projections: total sales revenue of $2,016,000.00, a net income before taxes of $1,209,199.28 and a net profit of

$798,071.52. Thus, the company’s net profit is estimated to be 66% more than the previous year.

Projected/ Actual Balance Sheet

Brandmark’s Projected Balance Sheet for the year ending April 30, 2015 reveals total assets to be

$1,664,191.68, total liabilities to be $529,099.85, with a net worth of $1,115,091.83. These projections imply a

Current Ratio of 3.10 demonstrating the company’s ability to pay all its debts including its corporate income tax

of $411,127.76. The company’s balance sheet displays an Accounts Receivable of $30,000 which illustrates

50% of Creation Fee Sales from the month of April to be collected in the month of May.

Brandmark’s Actual Balance Sheet through December 31, 2014 reveals total assets to be $2,175,022.27,

total liabilities to be $118,222.09, with a net worth of $2,056,800.18. The company’s balance sheet displays

Accounts Receivable of $890,000 of which $636,310.95 has been collected as of February 28, 2015. The

remaining $253,689.05 of Accounts Receivable are due to be collected per client payment schedules ranging

from 2-9 months, leaving the company with only $30,000 of Accounts Receivable at the end of the fiscal year

as projected. This proves that the company is capable of meeting its projections collecting its Accounts

Receivable and remaining profitable.

.

Projected/Actual Cash Budget

In the Projected/ Actual Cash Budget for the year ending April 30, 2015, the company began with a cash

balance $1,491,202.27. It was projected that by December 31, 2014 the company would have an ending cash

balance of $1,701,223.57. However, the actual ending cash balance on December 31, 2014 was $1,280,771.97.

This was 33% less than anticipated due to the delay of electronic transfer payments from the Germany Trade

Fair and an overpayment of Payroll Taxes in November and December totaling $56,018.46. With the collection

of receipts from the Germany Trade Fair, the refund from the overpayment of Payroll Taxes, the constant

obtainment of contracts and the involvement in the New York City Trade Fair- the company expects to reach an

ending cash balance of $1,603,920.69, demonstrating the healthy cash flow of the company.



SWOT ANALYSIS & DISCUSSION OF BUSINESS RISKS

Internal Strengths

Professional Graphic Designers

Brandmark Advertising’s creative team consists of highly talented Graphic Designers specializing in InDesign,

Illustrator, Photoshop, and CS6 with years of experience.

Multi-Lingual Staff

Maintaining a diverse, multi-lingual staff allows Brandmark to successfully communicate and forge strong

client relationships both domestically and internationally.

Market Position

Being in its fourth year of operation, Brandmark has successfully positioned itself in the virtual market as a

prestigious, premium service allowing the company to carry a strong brand name and effectively reach its target

market.

Monthly Contract Enrollment

Through Brandmark’s subscription based business model, the company can expect a certain amount of income

each month from its monthly posting fees rather than start each month with zero income.

High Profit Margins

By minimizing operational costs, Brandmark’s profit margin percentage is 77.78% thus allowing the company

to maintain healthy cash flow and generate consistent earnings.

Consistent Earnings

By meeting its projected net profit each year since operation began, Brandmark has demonstrated its ability to

provide consistent earnings to investors.

Internal Weaknesses

Language Barrier

Brandmark Advertising faces a language barrier with some of its overseas clients. In order to overcome this

barrier, Brandmark effectively uses its employees who are well versed in multiple languages. The company also

takes advantage of many different translation services.

New Technology

In order for Brandmark to maintain its strong brand name and ensure work quality, the company must

continually purchase new creation programs as they emerge and train its employees to be able to utilize these

new programs.



Yearly Reorganization

Each year, Brandmark's staff is completely reorganized. To allow for an efficient transition, the company hires

motivated interns who eventually become a part of the company the following year.

Limited Hours of Operation

Brandmark Advertising only operates for approximately two hours a day. However, many Brandmark

employees work remotely outside the office.

External Opportunities

Economic Recovery

Currently, the United States economy is recovering allowing businesses to generate more revenue, and spend

that money on advertising. Similar to the United States, the German economy is also recovering allowing

Brandmark to increase its international sales as well.

Shelter Pet Project

In partnership with Y&R Advertising as well as the Ad Council, Brandmark takes part in promoting the shelter

pet project. This project is a public awareness campaign designed to increase shelter pet adoption and raise

awareness of animal abuse. By creating pro-bono ads for the shelter pet project, Brandmark is spreading

awareness about adopting shelter pets while also creating a positive public image for itself and increasing brand

awareness.

Growth in Digital Advertising

Digital advertising is one of the fastest growing industries in history. Total digital advertising revenue is at an

all-time high at a rate of 35.3% in 2013 and is continually rising. This effectively positions Brandmark to take

advantage of such a tremendous growth opportunity.8

Unique Creation Service

Brandmark is the only advertising company in the virtual network to offer a true advertisement creation service

as opposed to its competitors who utilize their posting service only to show a company’s name and logo.

Strategic Partnerships

Brandmark Advertising can expand its sources of revenue by forming strategic partnerships with its indirect

competitors. Since Brandmark is the only advertising company whose core business is advertisement creation,

the company can incorporate its creation services into its competitors posting services.

8 http://adage.com/article/agency-news/2014-agency-report-revenue-staffing-stocks-digital/292849/



External Threats

Abolishment of Net Neutrality

If net neutrality is eliminated, some of Brandmark's clients may have slower internet speeds than others,

threatening the ability for Brandmark to deliver high definition advertisements to some of its clients. To combat

this, Brandmark will have to change its customization of advertisements for clients with slower websites.

Brandmark will replace high definition ads, by putting new eye-popping 3-d perspectives in its designs which

can be seen from slower loading websites.

Economic Downturn

If the United States was to experience an economic downturn, many companies would stop spending money on

advertising or look for cheaper alternatives. Although Brandmark is a premium service, digital advertising is

still a much cheaper alternative compared to traditional advertising. Therefore in the case of economic

downturn, Brandmark will still be able to maintain clientele and ensure the profitability of the company.

Rising Costs of a Skilled Workforce

As the cost of a skilled workforce has consistently increased, employee salaries are rising. Brandmark has

incorporated new marketing strategies to increase sales, thus combating rising salary costs. If necessary, the

company will offer an employee stock option plan in order to further reduce its salary expense.

Discussion of Business Risks

In order to continue generating profit and maintain success, Brandmark Advertising must consider

several risk factors. These risks include the disruption of the company’s main posting service site,

Veinternational.org, the arrival of new competitors, and the increasing risk of company’s utilizing in-house

advertising over services such as Brandmark.

If Veinternational.org were to crash, this would pose a major threat for Brandmark Advertising since

the site is a central hub for the entire virtual enterprise community. However, because Brandmark’s core

business is creating advertisements and not posting them, the company would form partnerships with its indirect

competitors and utilize their posting services as a way of promoting its clients. Also, by utilizing social media

Brandmark is able to successfully defend itself against the crash of Veinternational.org.

Another important risk for Brandmark is the arrival of new competitors. With the digital advertising

industry growing at rates never seen before, along with a high demand for digital advertising in the virtual

network, such a profitable industry may attract new competition. While this may be inevitable, the company’s



exemplary work, prestige, reputation and strong relationships with loyal clients will enable Brandmark to

maintain success over new startup companies.

Many businesses today adapt in-house advertising methods as a cost effective way to promote

themselves. Although cheaper, the effectiveness of in-house advertising is statistically shown to be much less

effective at boosting sales than a service.9 Brandmark’s strengths such as advertisement effectiveness and

superior visual quality ensure client retention and satisfaction while the use of promotional methods such as

pro-bono work ensures public awareness of these strengths. This allows Brandmark to continue to acquire new

clients, who understand the greater effectiveness of advertising services such as Brandmark.

By assessing these risks, Brandmark is able to create individual contingency plans in order to prepare for

them. Through following these plans, Brandmark is prepared to deal with potential risks that may arise in order

to maintain success and ensure the future prosperity of the company.

9 http://smallbusiness.chron.com/advantages-advertising-agency-3594.html

http://smallbusiness.chron.com/advantages-advertising-agency-3594.html


I | A B u s i n e s s P l a n 2 0 1 4 - 2 0 1 5


II | A B u s i n e s s P l a n 2 0 1 4 - 2 0 1 5

Non-Virtual Sales Contract Summary

This AGREEMENT was made between Brandmark Advertising and various parties.

The Second Party agrees to purchase the Advertisement Package, Business Card Package, Calendar Package,

Flyer Package and/or Logo Creation Package. The Advertisement Package is valued at $25,000. The Business

Card Package is valued at $250. The Calendar Package is valued at $25,000. The Flyer Package is valued at

$25,000. The Logo Creation Package is valued at $25,000. Each package includes up to three mock-ups that are

created to represent your company’s goals and visions. Up to three drafts will be sent for approval.

This contract is intended to be legally binding between the two parties and will be executed from the date

signed until the end of fiscal year. The second party is required to pay their fee by the 15th of every month.

Failure to pay after will result in a 2% fee every day the price is not paid. In event that you wish to terminate

this contract before the end of its term you will be charged a flat rate of $10,000.

First Party Second Party

________________________ _________________________

Company Name Full Name

________________________ _________________________

Company CEO Signature

________________________ __________________________

Signature of CEO Email Address

________________________ __________________________

Account Manager Signature Address


III | A B u s i n e s s P l a n 2 0 1 4 - 2 0 1 5

Client Name Month Purchase Purchase Total

Allen Barge ER Murrow HS, Principal

October Flyer $25,000.00

Joseph M. Riley ER Murrow HS, Head Custodian

October Business Cards $250.00

Lauren Monaco ER Murrow HS, College Counselor


Larry Blatt ER Murrow HS, Teacher


Felecia Lesser ER Murrow HS, Student


Lillian Baer-Sheroff ER Murrow HS, Guidance Counselor

November Business Cards $125.00

Spy Koncarinis ER Murrow HS, Assistant Principal

November Calendar $25,000.00

Andrew Basile ER Murrow HS, Teacher

December Advertisement $25,000.00

Carl Williams ER Murrow HS, Teacher

December Advertisement $25,000.00

Susana Giberga ER Murrow HS, Dean

December Business Cards $500.00

Richard Rolof ER Murrow HS, Guidance Counselor



IV | A B u s i n e s s P l a n 2 0 1 4 - 2 0 1 5

Sandra Pinder ER Murrow HS, Student Activities Coord.

December Advertisement

$25,000.00

Sandra Pinder ER Murrow HS, Student Activities Coord.


Steven Romero ER Murrow HS, Teacher

January Advertisement $25,000.00

Janeen Torres ER Murrow HS, Teacher


Janeen Torres ER Murrow HS, Teacher

January Business Cards $250.00

Ali Virk New 4th Ave Repair


Ali Virk New 4th Ave Repair


Basimah Zahid ER Murrow HS, Student


Basimah Zahid ER Murrow HS, Student


Naela Khan ER Murrow HS, Student Coordinator


Ellen Heyman ER Murrow HS, Teacher


Dawn Maldonado ER Murrow HS, Teacher


Total $303,000.00


V | A B u s i n e s s P l a n 2 0 1 4 - 2 0 1 5

Bibliography

1. http://data.worldbank.org/indicator/NY.GDP.MKTP.CD

2. http://data.bls.gov/timeseries/LNS14000000

3. http://www.xe.com/currencyconverter/convert/?From=EUR&To=USD

4. http://www.tradingeconomics.com/germany/gdp

5. http://www.tradingeconomics.com/germany/unemployment-rate

6. http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-

061214

7. http://www.iab.net/research/industry_data_and_landscape/adrevenuereport

8. http://smallbusiness.chron.com/advantages-advertising-agency-3594.html

http://data.worldbank.org/indicator/NY.GDP.MKTP.CD

http://data.bls.gov/timeseries/LNS14000000

http://www.xe.com/currencyconverter/convert/?From=EUR&To=USD

http://www.tradingeconomics.com/germany/gdp

http://www.tradingeconomics.com/germany/unemployment-rate



http://www.iab.net/research/industry_data_and_landscape/adrevenuereport

http://smallbusiness.chron.com/advantages-advertising-agency-3594.html

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Brandmark Advertising National Business Plan

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