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Contingency Planning Tweet
Every business needs to have a backup plan, in case their original plan faces some sort of difficulty. Contingency planning is all about having a plan B, incase plan A fails.
Every prudent business has to protect its interest. For example, If firm A needs to sell 10,000 widgets every month with a target of 120,000 units at the end of the year, when they reach March they only sell a combined total of 10,000 widgets for the three months just gone, then the firm may have a backup contingency plan that may include reducing the price of the unit or increasing distribution to find new ways to sell the product and reach their end of year targets of selling 120,000 units.
Month |
Target (units) |
Actual (units) |
| Jan | 10,000 | 3,333 |
| Feb | 10,000 | 3,333 |
| Mar | 10,000 | 3,333 |
| Year end target | 120,000 |
So in essence every business should have a contingency plan, a plan B, and this is a crucial part of the marketing planning process.
What can a firm do if sales start to decline?
- Reduce price .
- Introduce new products .
- Sell into new geographical areas or overseas .
- Diversify into a related or unrelated business.
- Find new retail outlets to sell to.
- Promote strategically, for example on social networking sites, or on various websites.
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