Flavored Bread

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Contents Topics Introduction Explanation of Innovation Need gap analysis Fulfilling the Need Product Qualities (Differentiation) Market Situation – Expected Market Size and Potential Mission Statement Vision Goal Market Trend Competitor analysis Indirect competitor Substitute Competitors Placement Strategy: Brand Name Logo Trademark FAB analysis: Quality function deployment quality statement: Market Segmentation: Artesian advertising strategy Understanding the Psycho-Dynamics of the market: Advertising objective Campaign theme Reach Frequency Media Vehicl Proper Budget Allocation Advertising Slogan USP Push strategy Promotional Materials Price Marketing Skimming: Key People with Specific Skills Physical evidence Land and Building Market entry strategy: Quantitative SWOT matrix analysis: Matching the SWOT matrix: Financial Analysis Ratios for march: Conclusion

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Introduction Artesian Bread is a name that has come to signify quality and freshness in bread products. The enterprise, Artesian Bread will operate six plants throughout Pakistan. Initially we are going to launch it in Lahore having Factory in Muridkey. The Bread distribution network comprises rent 15 vehicles that deliver Artesian to more than 200 retail outlets daily, making it one of the largest distribution networks for any product in the country customers are located in major metropolitan areas, secondary metropolitan areas and rural areas. The fleet will run approximately 500KM each day to deliver fresh bread. Peshawar. Multan Karachi Islamabad Faisalabad will be our future destinations to launch our product there. Artesian Bread's management team recognized early on that to be a contender in the baking industry the company would need to comply with international processing standards. Company is about to developed a relationship with Campden & Chorlywood Food research Association, Gloucestershire, UK. The associations will work with Artesian Bread to bring it in line with globally accepted production, technology, machinery and formulation standards the hard work and with this much dedication the company will struggle to receive its ISO 9001: certificate. For purpose of standardization, the company will bring itself in line with international standards of production, technology, machinery and formulation. All the Artesian Bread plants boast of the latest machinery used in the bread-making process. They will be managed by senior food technologists with decades of experience, while those manning the machinery will be provided on the job training in congenial working conditions.

3 Taking a responsible place in society, the company is committed to the uplift and development of the society as a whole, and participates in sports and social welfare activities. We hope to continue to develop and maintain this relation in the future.

Explanation of Innovation Our product is unique in sense that it provides with unique flavored in bread first time in Pakistan. Currently Artesian have three flavors of breads •

Chocolate,

•

Vanilla

•

Strawberry.

It is also at the same time a product for the health conscious people as well. The bread industry in Pakistan has seen many changes in the last twenty-five years. It has emerged as a small-scale bakery processing industry to numerous industrial bread making units all over Pakistan. The bread industry in Pakistan is flourishing very quickly and bread products are gaining much popularity. Bread has been accepted as a popular substitute of •

Rice,

•

Naan,

•

Paratha. .

Need GAP analysis Consumers are increasingly concerned about their health and are well aware of the relationship between nutritious food and optimal health. Various concerns have caused consumers to monitor their dietary habits closely. The growing media coverage on health, the rising incidence of health conditions (obesity, diabetes and cardiac problems), concerns over physical appearance, changing

4 lifestyle and also soaring costs of healthcare have all contributed to the demand for healthier bakery products. In addition, the aging baby boomer population has had a specific effect in increasing the demand for healthy foods. Some popular trends in the market are the introduction of low/light, functional, natural and organic products, as described below.

Fulfilling the Need Every day, before the sun rises, we begin making our bread from scratch. The dough is made with natural whole grains and unbleached flour, with no preservatives. Most of the breads are leavened with a natural sourdough starter using a long, slow fermentation time. Every loaf is formed by hand and left to rise naturally. The breads are baked throughout the day, with patience and care, on a traditional stone hearth. This is an Old World style of baking, perfected over centuries. It is a process that brings the most flavors out of the bread creating chewy loaves with a crunchy, flavorful crust. We bake dozen varieties each day, and all of our breads are lowfat or fat-free.

Product Qualities (Differentiation) Our product provides with following type of health related benefits which provides the better health. Flavored Bread – the unfitness of our bread is that it is flavored bread. We are going to provide it in three different flavors i.e. Chocolate, Vanilla and Strawberry. Low / Light Bread –

5 our bread is with reduced fat and carbohydrates. With the growing incidence of obesity and popularity of diets low calorie foods have gained immense popularity which is our core capability. Functional Bread – In recent years, enhancement of the nutritional profile in bread products is a key trend that has gained a great deal of momentum. We will also trying to enhance the nutritional value of traditional bread products through the addition

of

functional

ingredients,

such

as

omega-3,

multigrain,

multivitamins etc. Natural and Organic BreadIncreasing health awareness and concern over the consumption of artificial ingredients have fuelled the demand for natural products. Bread products that contain all natural ingredients are likely to thrive in this competitive market. Organic bread is yet another category gaining impetus in recent times, and the products are clearly labeled to draw attention to their organic nature. We will also have a look over it. PleasureIn addition to healthier products, consumers also are purchasing products that satisfy their taste buds. The taste enjoyment factor is vital in the marketplace and we will be focusing on this more deeply. With lifestyles becoming increasingly stressful, consumers may indulge in food for comfort eating purposes. Indulgence/luxury products are becoming more pronounced as a key trend in the bread industry. Consumers increasingly seek for premium, gourmet and exotic products to satisfy their desire to indulge

Market Situation – Expected Market Size and Potential

6 Only 5 % population of Pakistan is using the packed bread so rest of the market is still to be captured. Here people are wiling to pay extra amount for the differentiated product. Our main focus wood be

Mission Statement "This is a family company selling traditionally baked bread with a freshness and quality you really can taste".

Vision Our vision is to become Pakistan's favorite bread this is underpinned by our dedication to continued improvement across all areas of the business. We are committed to developing the bread market and working with our customers, that is why we invest a lot of time and money to understand our consumer's needs.

Goal Our goal is to ensure that important values such as quality, freshness, and service are delivered to our consumers in the 21st Century. For us this isn't just a business. It's a way of life. The task ahead is to concentrate on making the cake bigger rather than fighting for a bigger piece of the existing cake.

Market Trend Market is currently not using up to dated technology and generally companies are interested making the beads that remain at low cost. There is great deal of competition in the market in a congested area of the market. There is a huge market available where one can hit the target market.

7 Currently, 5% of the total population of Pakistan consumes packaged bread. The major factors for such a low percentage of people consuming bread are mostly economical and cultural. Pakistani diet consists of many substitutes for bread, which are cheaper and preferred over bread by a majority of the population. The political scenario as well as the legal scenario is not posing any threat to the bread industry growth apart from the price restrictions, which actually fixed by negotiations between the government of Sindh and the committee of breadmaking.

Competitor analysis Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling combines all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.

Indirect competitor Indirect competitors of Flavored Bread are: •

Different cakes

•

Biscuits

•

Cookies

•

Pastries, etc

Substitute Competitors A substitute competitor is any competitor that fills the same buyer need you fill but fills it in a different way. The substitute competitor of Flavored Bread is: •

Dawn Bread

8 •

Gourmet Bread

•

Cakes and bakes

•

Different bakery breads

•

Vita Bread

•

Bunny

Placement Strategy •

Brand Name

•

Trademark

•

Logo

Brand Name Flavored Bread a name that has come to signify quality and freshness in bread products. The purpose of the research is to analyze the current state on the baked goods market. The main tendencies and forecast the possible market growth. Prior to the establishment of flavored Bread, will become largest producer of bread products is the public sector. However, this sector could not cope with the demands of the consumer and this when, perceiving a change in the eating habits of Pakistanis, Flavored Bread will envisioned. Flavored Bread built-up a reputation for freshness, quality and taste. Creating awareness plus a demand for bread products, and started its production in Lahore.

Logo

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Trademark We have registered our brand in ACCP office with registration number 89554. Now we have legalized it. We have registered our company by the name of ARTESIAN & Co. We will give step by step guide to SMEs in Pakistan about protecting Trademark in Pakistan as well as abroad (especially for exporters), its initial protection tenure renewal able till existence of the SME, cost of registration and offices where applications can be submitted. We will also highlights that mostly applications are rejected on the basis of it being a generic name (like using trademark Bread to sell Bread), or a descriptive term (like the mark SWEET for marketing chocolates), or a deceptive trademarks (e.g. marketing margarine under trademark featuring COW), or a shape of product, which should be avoided. We also provides check list for SMEs to consider, prior to selecting a Trademark. Information regarding popular types of trademarks i.e., service marks (like Business Plus), collective marks certification marks well known marks.

Distribution:

10 Artesian distribute on network will be indirect and comprise of over two hundred company owned vehicles in a distribution system spread all over Pakistan. On a daily basis, we will distribute our goods to over a 200 retail outlets. We will distribute in almost all the major metropolitan areas, secondary metropolitan areas as well as the rural parts of the country, later.

Channels of Distribution: Channels of distribution will be intensive because Artesian will operate six plants throughout Pakistan. The Bakery's distribution network will rent more than 50 vehicles which will deliver baked products to more than 200 retail outlets, and will making it one of the largest distribution networks for any product in the country customers are located in major metropolitan areas, secondary metropolitan areas and rural areas. We will develop a manufacturing process utilizing state of the art bakery machinery combining it with locally developed equipment. This unique combination resulted in products which are closer to the actual taste and form that we make at home.

The Product Analysis FAB analysis: Features: A common scenario of Flavored Bread in selling is for the sales person to extol the virtues of the product they are selling by demonstrating the assorted features that it has. Another variant of the flavored bread’s features trap will be when the customer comes in with a checklist of the features that they want. Anything that does not have all features is immediately rejected, whilst products with extra features are ignored. When they have narrowed down their choices to a set of products that have all the features they want, then they choose solely on price.

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Benefits: Benefits of Flavored Bread will be what the customer gains by using the product. Selling on benefits thus sells to what they really want, not what they say they want or what you want to sell. With benefits, consumer will get them excited and emotionally engaged. Attributes: Attributes are intangibles that are associated with the product, not the person (and hence are not yet benefits) Falvored bread have many attributes whilst others have far fewer. Our product specifications will be according to the customer needs. Flavored bread will be useful for stepping-stone between the physical product and the benefits that the person actually receives and can be used in a sales pitch as such.

Quality function deployment quality statement: Flour: Hard wheat flour, or bread flour, is preferred for yeast breads, although soft or all-purpose flours may be used successfully if the procedure is adapted to the type of flour. Bread flour has a high gluten (wheat protein) content and thorough kneading is necessary to develop the gluten so it can hold up a loaf of bread. The gluten is elastic and stretches as the yeast grows and gives off gas, making the bread light in texture. Soft wheat or pastry flour is a weaker flour because it does not contain as much gluten; therefore, bread made with it needs less kneading than bread made with bread flour. A blend of the two flours requires a moderate amount of handling to properly develop the gluten. Over-kneading of doughs from any type of flour may injure the baking quality of the gluten and produce a bread of poor texture and volume.

12 Bread may be made entirely of whole-wheat flour or in combination with white flour. A mixture of white and whole wheat flours makes a lighter loaf than whole wheat alone, but the nutritive value increases as the increased amount of whole wheat flour is used. Liquid: Water, potato water, milk or other liquids may be used in making bread. The bread will be whiter in color and have greater food value if milk is used. Both milk and potato water prevent bread from becoming stale so rapidly as bread in which water is the only liquid. Yeast: Because yeast is very small plants, it must be kept fresh and active. Yeast may be bought in dry granulated form or compressed cakes or grown at home in the form of "starter" or "liquid yeast". Fat: The fat in dough makes the bread tenderer and increases its keeping qualities. Any high quality cooking fat is satisfactory. Sugar: Yeast plants grow quickly in the presence of a small amount of sugar as it is food for their growth. A golden-brown color will be given to the crust by the use of sugar. Salt: Gluten is made stronger by the salt. Flavor is also improved.

Quantity: 2 3/4 c. liquid 1/2 to 1 ounce (1 to 2 packages or cakes) yeast 3 tbsp. sugar 4 tsp. salt 2 tbsp. fat

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About 9 cups sifted hard-wheat flour. (More all-purpose or soft wheat flour will be needed.)

Market Segmentation: Market Segmentation is an effort to increase a company’s precision marketing. A market consists of a large identifiable group within a market with similar wants, purchasing power, geographical location, buying attitude, or buying habits. We have done the segmentation on the basis of the following variables:

Demographic Segmentation Age, Income, Social Class & Occupation

Demographics Gender: flavored bread can be use by males and females as well Income: Flavored is basically for middle upper class people and it will be easily affordable for all type of these people. Age: Flavored bread will be useful at every stage of life. Young generations and older ones can also use this delicious bread Geographic Area: Flavored bread is located in Lahore and it is easily available in all super stores and general stores. Psychographic: flavored bread is according to the customer needs and demands. It consists of natural flavors like chocolate, vanilla and strawberry.

Behavioral segmentation Occasions, Benefits, Usage Rate & Attitude

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Usage rate Flavored bread is particularly use by young generations who are very fond of flavors like generation X they love chocolates and different flavors products. Usage rate will be high because of these young generations. Benefits: it consist of Vitamin D and A so it is quite notorious and have energy as well Targeting After segmenting the market we are targeting the following segments:

Income Groups We will be targeting all income groups who should afford easily. Flavored bread, being an established brand with mass appeal and cost effective pricing, it will not discriminate between income groups. Youth A huge potential market for this bread it lies with youth whom we will be specifically targeting road shows to be held as part of the ‘Add Color’ campaign. Travelers It is also available in mini-size factor, so it will be highly convenient to carry along during large journeys or trips. This is why it will be targeted at travelers as well.

Promotion Strategies Product position Strategy.

15 Positioning is what the customer believes about your product’s value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising or promotion. Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy. Basic strategies for product positioning that we have used: 1. By attribute or benefit The flavors that make you feel different. It tastes great and that it is rich.

2. By use or application The different tastes from the ordinary bread. Use it with butter or eat the simple loaf.

3. By user Every one who wants to have a “different taste” may have it. 4. By product or service class Artesian bread will competes as an alternative to the ordinary breads. It is positioned as a lower cost and healthier alternative to the ordinary bread, while it provides better taste and healthy ingredients. 5. By price or quality Artesian wants you to believe that their flavor bread is of the highest quality.

16 Positioning is what the customer believes and not what the provider wants them to believe. Positioning can change due the counter measures taken at the competition. Managing your product positioning requires that you know your customer and that you understand your competition; generally, this is the job of market research not just what the entrepreneur thinks is true.

Advertising strategy There are two major parts to an advertising strategy.

1) Assessment. •

What's going on in the market, what’s the history, the current situation?

•

What are the major trends in the market?

•

What's the future looking like? (With the product. With consumer attitudes.)

2) Action •

What should your customer do about the most significant opportunities or problems presented by the situation?

•

What should to do with the brand?

•

With direct marketing.

•

With the way the company is positioned.

A SWOT analysis helps in figure out the "What's going on" part. And figure it out quickly. Artesian Advertising Strategies are: A) Position the product: "Because we are worth it."

17 B) Investing in creating a stronger brand personality: It will base on an upscale, character that people will aspire to associate with. C) Using the Internet / Web site: Currently Artesian don’t have any Web site but it will have an internet asses and web site in future to target and sell younger buyers, new buyers, before they have established a product.

You can also see that the ad strategy deals with the big strategic issues: •

Branding,

•

Positioning,

•

Media.

Artesian is a new in the world of breads because it is just not that ordinary bread which has that old milky or simple bread taste. It is different from the traditional breads because it has a flavor. We have just launched Artesian in Lahore and we want it to be in every house, every restaurant, where there is its need. And it does so with simple action statements describing what you intend to accomplish.

Understanding the Psycho-Dynamics of the market: What’s going on inside the brains of buyers, of perspective customers? It includes, but is not limited to, Consumer Involvement Theory (CIT). •

How the consumer relates to the purchase:

•

Rational to emotional. High to low involvement. People probably buy the same brand of breads with a mindless motion at the market. Because it is priced.

18 But besides Consumer Involvement Theory (CIT), there are likely other issues, perhaps more important issues, such as why people buy the other brand bread: “People may think that the ordinary bread is of higher quality or more good in taste or more healthier products.” Or perhaps it's not so much what people think about competitors, but what they think about our customer: "I don't know if it will be available in the market easily." Psycho-Dynamics is everything. It’s all that stuff rattling around between the ears of likely customers. The thoughts, feelings and ever-changing prejudices that influence purchase decisions. That's the Psycho-Dynamics of the market. And it is always changing. Knowing exactly what you want the advertising to accomplish.

Above the line sales promotion Artesian is using above the line (ATL) sales promotion currently, that is Artesian will advertise through media such as; •

TV

•

Radio

•

Newspaper

•

Magazines

•

Broachers

•

Banners

To promote the brand. Major uses include television, radio, and newspaper advertising and banners ads on different squares (chowks) in the city. This type of communication is conventional in nature and is considered impersonal to customers.

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Advertising objective Artesian has clear and specific aim of an advertising or commercial, such as •

To earn profits

•

To compare,

•

To gain attention,

•

To inform,

•

To persuade, or

•

To remind our customers about our product.

Campaign theme The Currently campaign themes of Artesian is developed with the intention of being used for a substantial period of nine months but it might be short lived or extended due to factors such as being ineffective or market conditions.

Reach 60% of the television viewers, 70% of radio users, 60 % of radio users and 90% of news paper readers should be exposed to the ads or commercials which are on media and media schedule within a period of four months in the big cities of Pakistan such as; •

Karachi,

•

Lahore,

•

Islamabad,

•

Faisalabad,

•

Peshawar.

With the time and market conditions these ratios can be reviewed according to the needs.

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Frequency The frequency in the beginning will be high. It will keep high for some months for the period after the soft launch and later it can be decrease. There will be changes in the frequency with the time and market conditions.

Media Vehicle The print and electronic medium employed in an advertising campaign used by Artesian is as follow.

ELECTRONIC MEDIA

PRINT MEDIA

TV PTV

RADIO FM 100

NEWS PAPER THE NEWS

MAGZINES YOUNG

BILLBORD ALLAH HO

GEO TV

FM 106.2

DAWN

WORLD SUNDAY

CHOWK KALMA

AJ

89 FM

JANG

MAGZINE AKHBAR-E-

CHOWK MUSLIM

KHABRAIN

JAHAN US

TOWN MUR MAZANG

MAG

CHOWK MALL ROAD MM ALAM

A-TV ARY

FM 101 FM 99

DAILY TIMES NAWA-E-

21 WAQAT

ROAD DEFENCE DUBAI CHOWK

Proper Budget Allocation Advertising In order to keep the advertising budget in line with promotional and marketing goals Artesian have focus on the followings: •

our target consumer are householders (income 10000 or above), bakers and Restaurants

•

Those who are interested in change in taste and are health conscious will be interested in Artesian Bread advertisements.

•

Is the media the advertiser is considering able to reach the target consumer?

•

The product lends itself to rational appeal.

•

How much profit is earned for each Rupee spent on advertising?

All these things give Artesian advertiser are provided with an idea of the market conditions. Thus, how best to advertise within these conditions. Once this analysis of the market situation is complete, an advertiser has to decide how the money dedicated to advertising is to be allocated.

Channel

ESTIMATED

COST PER AD PTV 900000 GEO TV 1000000 ARY 950000 Total Budget 2850000 MAGZINES COST PER AD YOUNG 35000 NEWS PAPER ESTIMATED WORLD COST PER AD SUNDAY 50000 THE NEWS 55000 DAWNMAGZINE 65000 JANG US 50000 35000 Total Budget Total Budget170000 120000

Channel

ESTIMATED

FM 100 FM 101 FM 99 Total Budget

COST PER AD 22000 18500 19500 60000

BILLBORD ALLAH HO CHOWK KALMA CHOWK MALL ROAD MM ALAM ROAD DEFENCE Total Budget

COST PER AD AND SIZE 40000

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100000 100000 70000 60000 370000

Slogan Artesian “Discover a Healthier Slice Of Life!”

USP Artesian “The bread which build strong bodies and which has the flavor of your choice.”

Push strategy A push strategy is used by Artesian because it is a new product which is unknown to the consumer. As there is no consumer demand in the product launch, the

23 product and the information are "pushed" to the consumer by distribution and promotion.

Promotional Materials Some of the promotional materials are as follow:

Point of sale (POS) Terminals Artesian has place different check out counters in big general stores like ALFATEH, Pace and HKB. Plus they have placed very different and unique and stylish type of racks to the shops, which are very attractive and heart appealing.

Participation in Trade Fairs and Exhibitions: Artesian has stalls in the different Exhibitions held in different schools, universities and cities. Where they sell and tell the consumers about the product that is the flavor bread. Also in those stalls they are using the flavored bread making different types of sandwiches to tell the users about the utility and benefits of Artesian Bread.

Broachers and Leaflets Artesian has very attractive and appealing broachers which Artesian have distributed with the news papers and they have also placed it on the cash counters in different stores. Plus, Artesian are now having a man standing on the entrance of big shopping malls in the cities.

Banner & Hoardings: Artesian has placed banners on different squares in the city and they have the hoarding placed on the malls and stalls in the exhibitions.

Price

24 Price is not just the number or tag on the product. But it is the most important thing.

Marketing Skimming: Artesian is using Price skimming strategy. It is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, and then lowers the price over time. It is a sequential version of price discrimination and yield management. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price.

Psychological Pricing: Artesian is selling at PRS.50. so they are not using the Psychological pricing currently. Retail prices are often expressed as odd prices: a little less than a round number, e.g. PRS19.99 instead of $20. Psychological pricing is a theory in marketing that these prices have a psychological impact that drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points.

Computing price method Cost-plus pricing Cost-plus pricing is a pricing method used by Artesian. It is used primarily because it is easy to calculate and requires little information. There are several varieties, but the common thread in all of them is that one first calculates the cost of the product, and then includes an additional amount to represent profit. The method determines the price of a product or service that uses direct costs, indirect costs, and fixed costs whether related to the production and sale of the product or service or not. These costs are converted to per unit costs for the product and then a predetermined percentage of these costs are added to provide a profit margin.

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Price Elasticity and Customer sensitivity Price Elasticity: It is percentage change in quantity demanded as per the percentage change in price of the same commodity. The price elasticity of demand is a measure of the sensitivity of quantity demanded to changes in price. It is measured as elasticity that is it measures the relationship as the ratio of percentage changes between quantity demanded of a good and changes in its price. In simpler words, demand for a product can be said to be very inelastic if consumers will pay almost any price for the product, and very elastic if consumers will only pay a certain price, or a narrow range of prices, for the product. Inelastic demand means a producer can raise prices without much hurting demand for its product, and elastic demand means that consumers are sensitive to the price at which a product is sold and will not buy it if the price rises by what they consider too much. Demand for bread is elastic because as the price of this flavor bread increases, there are many substitutions which consumers may switch to.

Customer sensitivity: Customers are very sensitive and they want fresh bread in the breakfast and if they don’t get it then they might dislike the product because of the availability.

Discounts and Rebates Artesian in its soft launch of its product will provide special offer which is buy two artesian bread and get one small absolutely free.

Key People with Specific Skills

26 We have worker who have decades of experience in bread industry. We have contracts with them to work with us and on our formula.

Physical evidence The site for the factory is in Muridkey where we can visit to see the desired place. Exact address is 10 km Sheikhupura road GT road Muridkey.

Land and Building We will purchase our land in Muridkey for factory. Further detail is given in the Gant chart. We have cash in hand for this acquiring.

Location and side details It is located in industrial area of Muridkey where other industries are situated. It is regarded as the industrial are. We are going to have 6 Acres. Labor is easily available there at a cheaper cost and raw material is also available there. It is having all the required facilities need for the bread industry.

Market entry strategy: 1. Guerilla attack: We will first use guerilla strategy to launch our innovative product. We will offers different selling offer to the market so that we can capture market share. We will set price of our product as low as possible. And give also extra benefit like availability of product as near to the consumer.

2. Soft launch strategy:

27 We will first launch our product to the discounted shops so that we can check our product’s demand in market. This step tells us about the weekly sales of our bread.

3. official launch strategy: After the 3 weeks of soft launch we will launch our product officially in big market. But before it we will create awareness among the people of our product. We will set our product in every self of every good and well known shop.

4. Event marketing at launch stage:

Sponsoring cricket matches: Cricket the most sought after; watched & played game in Pakistan .the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. The competition has become tougher & tougher as the time has progressed. we will make agreement with Pakistani cricket team management to sponsors the matches. we realize that fact that cricket is a very strong element by which we can reach our consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars support & flatter our product. We will introduce adds of our product in which some cricket stars will promote our product.

Sponsoring Concerts: We will arrange concerts for the enjoyment of people and also aware them about our product. We will bring the stars of people close to them. Again the purpose is same, to create awareness about our product.

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5. public relation activities: Public relation is our most important objective because it is the key think to enter and remain in the market. We will do lot of exercise to built public relation. Like our sale person will stand on the retailing shop to tell the customer about our product. We already have planned to arrange different events. The purpose of those events is to create public relations.

6. publicity: Publicity is the important factor to create awareness about any product. We will also do publicity of our product. We will use newspaper, T.V channels, and also direct selling. We will also use radio for publicity. This steps will helps us to improve our sales. On T.V channels we will choose that channels which are famous in ladies like, GEO TV etc. and in newspaper we will choose ladies magazine for publicity.

Quantitative SWOT matrix analysis: External threats: 1. There are Large companies who have brand loyal customers providing the market with not exactly similar but milky and other breads. 2. Switching brand loyal consumers to a smaller and newer company 3. Rising material, production, and shipping costs for a new, up till now branch out company. 4. there is open market everywhere means any new company or existing ones can start the same production who may have more experience or more qualified staff.

External opportunities: 1. Creating a healthy product that provides options in flavors and relating to diet value will plot new regulars

29 2. Healthy component will allow us to break into the diet consumer 3. Being a new company will provide us the chance to set up thrill

Internal strengths: 1. Our ability to produce options keeps more consumer interest and needs met. 2. Our new production technology will enable us to mass produce products more efficiently and quickly than other old companies. 3. Our new taste will attract many such type of consumers who are taste changer.

Internal weakness: 1. The more flavors we create, the more production costs will increase. 2. New technology and production methods will require greater preparation and back-up wants. 3. At starting we will not have as such trained staff that has such a market experience.

Matching the SWOT matrix: strengths 1. Our ability to produce options keeps

Opportunities 1. Creating a healthy product that

more consumer interest and needs

provides options in flavors and relating

met

to diet value will plot new regulars

2. Our new taste will attract many such

2. Our new taste will attract many such

type of consumers who are taste

type of consumers who are taste

changer

changer

30

strengths 1. Our ability to produce options keeps

Weakness 1. The more flavors we create, the more

more consumer interest and needs met

production costs will increase. 2. New technology and production

2. Our new production technology will

methods will require greater

enable us to mass produce products

preparation and back-up wants

more efficiently and quickly than other old companies.

opportunities 1. Creating a healthy product that

Weakness 1. The more flavors we create, the more

provides options in flavors and

production costs will increase

relating to diet value will plot new regulars 2. Our new taste will attract many

2. The more flavors we create, the more

such type of consumers who are

production costs will increase

taste changer 3.

weakness 1. The more flavors we create, the more production costs will increase. 2. At starting we will not have as such trained staff that has such a market experience

Threats 1. There are Large companies who have brand loyal customers providing the market with not exactly similar but milky and other breads. 2. there is open market everywhere means any new company or existing ones can start the same production who may have more experience or

31 more qualified staff.

Financial analysis Projected startup cost-onetime expense Asset land

Price

Detail

20,000,000 Land located near Mureedkay, total area 6 acres. at front there is G.T road. At right and left side there is garments and

building

other factories. 125,000,00 We will construct a building which contains 4 storeroom . and 2 big storeroom for plant and machinery.

Plant &

75,00,000 Plan and machinery for production of bread and packing and Ingredients Quantity(kg) Price (Rs) machinery printing. flour .50 14 furniture 10,000 Furniture require for office. sugar .10 2.5 Eggs(piece) salt Flavor(chocolate)

4 .10

16 1 3

packing

1.75

Total

38.25

Profit margin

19.375

(50%) Total price/ pack

58

32 Revenue & cash flow projected with estimated sales forecasted. Price/packet of bread

Expected sales in 1st quarter (approx). Months January

Total units sales 25863

Price/unit

total

58

15,00,000

February 29310

58

17,00,000

March

58

18,00,000

31034

33

INCOME STATEMENT

June

July

August

Sales Revenue(lacks)

PKR 20.00

PKR 22.50

PKR 30.00

Less: Cost of Goods Sold

PKR 15.60

PKR 17.55

PKR 2.34

PKR 4.40

PKR 4.95

PKR 27.66

PKR 11.76

PKR 11.76

PKR 11.76

General / Admin. Exp.

PKR 0.15

PKR 0.17

PKR 0.22

Depreciation Expense

PKR 0.25

PKR 0.25

PKR 0.26

Total Operating Expenses

PKR 12.16

PKR 12.18

PKR 12.24

net profit before taxes

-PKR 7.76

-PKR 7.23

PKR 15.42

PKR 0.09

PKR 0.07

PKR 0.15

-PKR 7.85

-PKR 7.30

PKR 15.27

Gross Profits

Less: Operating Expenses:

Marketing Expense

less tax

Net loss/profit After Taxes

34

BALANCE SHEET Current Assets:

June

July

August

Cash

PKR 300,000.00

PKR 320,000.00

PKR 330,000.00

Total Current Assets

PKR 300,000.00 PKR

PKR 320,000.00 PKR

PKR 330,000.00 PKR

32,500,000.00

32,500,000.00

32,500,000.00

PKR 7,500,000.00

PKR 7,496,000.00

PKR 7,492,000.00

PKR 10,000.00

PKR 9,700.00

PKR 9,400.00

PKR

PKR

PKR

40,010,000.00

40,005,700.00

40,001,400.00

Depreciation

PKR 25,000.00 PKR

PKR 25,000.00 PKR

PKR 26,000.00 PKR

Total Assets

40,285,000.00

40,300,700.00

40,305,400.00

Land & Buildings Machinery and Equipment Furniture & Fixtures inventory Total Gross Fixed Assets Less: Accumulated

Current Liabilities: Taxes Payable

June

July

August

PKR 8,500.00

PKR 7,300.00

PKR 14,200.00

PKR 0.00

PKR 0.00

PKR 0.00

Total Current Liabilities

PKR 8,500.00

PKR 7,300.00

PKR 14,200.00

Total Liabilities

PKR 8,500.00 PKR

PKR 7,300.00 PKR

PKR 14,200.00 PKR

capital

41,061,500.00

41,023,400.00

38,764,200.00

-PKR 785,000.00 PKR

-PKR 730,000.00

PKR 1,527,000.00 PKR

40,285,000.00

PKR 4,030,700.00

40,305,400.00

Other Current Liabilities

net loss/profit Total Liabs. & Stockhldrs' Equity

Ratios for march :

35

Current ratio: Total Current Assets Current Ratio = ____________________ Total Current Liabilities

Current ratio= 330000/14200 = 23.23944

Gross margin ratio: Gross Margin Ratio = gross profit/net sales Gross margin ratio= 2766000/3000000 =0 .922 Net Profit Margin Ratio: Net Profit Before Tax Net Profit Margin Ratio = _____________________ Net Sales Net profit margin ratio = 1542000/3000000 = 0.514

Conclusion “We are quiet confident to have a successful launching of the bread in the market.”