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SOSTAC Planning Model

SOSTAC, created by PR Smith, is one of the most widely used marketing planning frameworks in the world. It provides a logical sequence for building any marketing plan: understand your Situation, set Objectives, define Strategy, plan Tactics, create an Action plan, and establish Control measures. It works for annual marketing plans, campaign plans, digital marketing strategies, and product launches.

When to use this framework

  • You need to write a marketing plan and don't know where to start
  • Your campaigns lack structure and clear objectives
  • You need to present a marketing strategy to leadership or a client
  • You want a repeatable planning framework your team can adopt
  • You're reviewing an existing plan and need to check it covers all bases

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Worked Example

Monzo (UK digital bank, 2017-2018 growth phase)

1. Situation — Where are we now?

What's happening in the market? Trends, growth, disruptions, competitive shifts.

UK banking disrupted by challenger banks (Monzo, Revolut, Starling). Incumbent banks slow to innovate on mobile UX. Regulatory environment favourable (Open Banking mandate). Consumer trust in traditional banks at historic low post-financial crisis. Mobile-first banking growing 40% YoY.

Where do your key metrics stand? Revenue, market share, awareness, conversion rates, NPS.

500,000 accounts (up from 100,000 12 months ago). 80% of new accounts from referral and word-of-mouth. NPS: 80+ (vs. industry average of 4). Monthly active users: 75% (exceptional for banking). Revenue per user still low — most users using Monzo as 'spending card' not primary account.

Key strengths, weaknesses, opportunities, and threats in 2-3 bullets each.

Strengths: Best mobile UX in UK banking, community-driven development, 80+ NPS, strong brand love Weaknesses: Not yet profitable, most users don't use as primary bank, limited product range (no mortgages, investments) Opportunities: Open Banking enables switching, marketplace banking model, international expansion Threats: Revolut growing faster internationally, incumbents copying mobile features, regulatory capital requirements

2. Objectives — Where do we want to be?

Use SMART objectives: Specific, Measurable, Achievable, Relevant, Time-bound.

The main goal this plan serves. Must be measurable with a deadline.

Grow from 500,000 to 2 million active accounts by end of 2018, with 30% using Monzo as their primary bank (salary paid in).

Supporting objectives (2-3 max).

1. Increase primary bank usage ('salary sort') from 10% to 30% of active users. 2. Launch and scale Monzo Plus premium tier to 50,000 subscribers. 3. Achieve break-even unit economics (revenue per user covers cost to serve).

The specific metrics you'll track. Include baseline (current) and target values.

Active accounts | 500K | 2M | Dec 2018 Salary sort rate | 10% | 30% | Dec 2018 NPS | 80 | 80+ (maintain) | Ongoing CAC | £0 (organic) | Maintain <£5 | Ongoing Revenue per user | £0.30/mo | £2/mo | Dec 2018

3. Strategy — How do we get there?

Who are you targeting? Primary and secondary audiences.

Primary: Urban millennials (22-35) who are digitally native, frustrated with legacy bank UX, and comfortable with mobile-only banking. They value transparency, good design, and community. Secondary: Young professionals (28-40) who need a 'grown-up' bank for salary, bills, and savings — the segment needed for primary bank adoption.

How will you position your offering to win in these segments?

Monzo is the bank that works for you, not against you — transparent fees, instant notifications, and smart budgeting built for how you actually live. Unlike traditional banks, everything happens in real time, in your pocket, with no hidden charges.

What's the overarching approach? e.g., content-led inbound, ABM, community-led growth, brand-building.

Community-led growth: leverage 80+ NPS and word-of-mouth as the primary growth engine. Supplement with product-led virality (golden tickets, bill splitting, shared tabs that naturally invite friends). Minimise paid acquisition — the product is the marketing.

4. Tactics — What specific tools and channels?

Which channels will you use and what role does each play? Map channels to the customer journey.

1. Referral programme (40% of growth) — Golden tickets with exclusive early access. 2. Word-of-mouth / organic (30%) — NPS-driven recommendations. 3. Content / blog (10%) — Transparency reports, product updates, community posts. 4. Social media (10%) — Twitter as primary channel, community management. 5. Events / community meetups (5%) — Monthly Monzo events in major cities. 6. PR (5%) — Earned media from product launches and banking industry disruption.

What content or creative assets do you need? Key messages, formats, themes.

Monthly transparency report (real financials, user numbers). Product launch blogs with community input. 'Making money work for everyone' content series. User stories and case studies. No traditional advertising — authenticity is the brand.

How will you split the budget across channels and activities?

Referral programme (golden tickets + incentives): 40% = £200K Events and community: 20% = £100K Content and social: 15% = £75K PR and comms: 15% = £75K Paid testing (small experiments): 10% = £50K

Total marketing budget for this plan period.

500000

5. Action — Who does what, when?

Break the plan into phases with specific deliverables, owners, and deadlines.

Phase 1 (Q1): Launch salary sort feature + campaign. Target: 15% salary sort rate. Referral programme V2 with tiered rewards. Phase 2 (Q2): Launch Monzo Plus premium tier. Content campaign on 'switching to Monzo.' Community events in 5 new cities. Phase 3 (Q3-Q4): Scale what's working. Launch bill splitting and shared tabs (viral features). Push for 2M accounts with year-end PR campaign.

Who is responsible for what? RACI if needed.

Head of Marketing: Overall strategy and budget. Community Lead: Events, forum, social media. Content Lead: Blog, transparency reports, product communications. Growth Lead: Referral programme, viral features, analytics. PR Lead: Media relationships, press releases, thought leadership.

6. Control — How do we measure and optimise?

How often will you review performance? What's the format?

Daily: Account signups, activation rate, referral metrics (automated dashboard). Weekly: Channel performance review, content metrics, community health. Monthly: Full marketing review with leadership — accounts, CAC, revenue per user, NPS. Quarterly: Strategy review with CEO — are we on track for 2M? Adjust plan if needed.

What signals would cause you to change the plan? Define thresholds for scaling up, pivoting, or stopping.

If referral conversion drops below 20%: investigate and redesign referral flow. If weekly signups drop below 15K for 3 consecutive weeks: activate paid channel experiments. If NPS drops below 70: stop growth focus and fix product/support issues. If salary sort rate stalls below 20%: launch incentive campaign or product improvements.

What return do you expect on your marketing spend?

10
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