Post on 17-Nov-2014
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Business plan
1. EXECUTIVE SUMMARY
The purpose of this report is to provide detailed information about my business
idea which is to operate an Advertisement agency. The report includes all the needed
sections for an actual business plan document. It starts with the business profile in order
to give a brief idea about the whole business. Then the marketing plan is included to give
explanation about our promotion campaign and plans. The next plans are the layout,
company product and services and the personnel plans. Each part explains in details what
has to be done in order to run the business successfully. The final plan in this report is the
finance one. All needed projections are included as well as the establishment costs. The
report explains how this idea will be achieved in details.
We have chosen this idea because of many reasons. Advertisement will be highly
demanded. Many businessmen are facing the problem regarding the advertisement.
Awareness of advertisement is increasing. There are many businesses in Pakistan who
Lack of advertisement motivated to move on with the idea. Our idea will provide them
ease and give support to the talented businessmen.
Our idea has come up after many research regarding the difficulties faced by
businesses. We found that there are not many agencies that provide actual message. In
addition to that, businessmen can find local way to advertisement and there are not much
agencies that offer all kinds of advertisements in the same place. This is considered as a
market gap. Our idea fills that gap by providing specialized ads for individuals.
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1.1 Introduction
Advertising is a form of communication whose purpose is to inform potential
customers about products and services and how to obtain and use them. Many
advertisements are also designed to generate increased consumption of those products
and services through the creation and reinforcement of brand image and brand loyalty.
Every major medium is used to deliver these messages, including: television, radio,
movies, magazines, newspapers, video games, the Internet and billboards.
Advertising is the promotion of a company’s products and services carried out
primarily to drive sales of the products and services but also to build a brand identity and
communicate changes or new product /services to the customers. Advertising has become
an essential element of the corporate world and hence the companies allot a considerable
amount of revenues as their advertising budget. There are several reasons for advertising
some of which are as follows
Increasing the sales of the product/service
Creating and maintaining a brand identity or brand image.
Communicating a change in the existing product line.
Introduction of a new product or service.
Thus, several reasons for advertising and similarly there exist various media which
can be effectively used for advertising.
Advertisements can also be seen on the walls of an airport walkway, on the sides of
buses, heard in telephone hold messages. Advertisements are usually placed anywhere an
audience can easily and/or frequently access visuals and/or audio and print organizations
which frequently spend large sums of money on advertising.
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1.2 Name of company
Latitude (Lateral thinking + attitude)
1.3 Address of company
Trust Plaza G.T Road Gujranwala Pakistan
Phone
+92-558289117
Slogan
“You are in safe hands”
Logo:
Latitude
Key members address and phone
Nadeem Aftab +92-3004252764 Sialkot Pakistan
Rizwan Akram +92-3006428640 Sialkot Pakistan
Zia Ullah Khan +92-3217436974 Gujranwala Pakistan
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Need of ad agencyWe are going to open ad agency in Gujranwala Because:
Few ad agencies
Huge industrial area
Potential market
Main reasons of Advertisement:
Introduction of a new product or service.
Creating and maintaining a brand identity or brand image.
Increasing the sales of the product/service
Communicating a change in the existing product line.
Advertising
Advertising is a form of communication whose purpose is to inform potential
customers about products and services and how to obtain and use them.
Types of media for advertisement:
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Electronic Media
Print Media
Indoor media channels:
Those media channels which have headquarter in Pakistan is called indoor media
channels. In Pakistan 75 indoor media channels.
For example:
Geo
Express News
Hum
PTv, etc
Timings:
Three shifts in 24/3=8
Morning, Evening, Night
Standard Tv ad 45 sec
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Purchasing:
24 mints in a day
Outdoor media channels:
Those media channels which have no headquarter in Pakistan is called outdoor
media channels.
For example:
Sony
Star Plus
Set Max
Zee Cinema, etc
Local media:
Cable network lies in local media. Approximately 58 cable operators work in
Punjab which is working under Salman Taseer cable network.
Local media advertisement:
Local media advertise only surrounding areas just like
Schools
Colleges
Shops, etc
Print media:
48 ABC certified newspaper in Pakistan.
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Type of ads:
Classified ads
Panel ads
Commercial ads
Classified ads:
In newspaper, there is a separate page for classified ads and minimum 9 words in
one line rates of ads in different newspapers
Jung Sunday 195 per line and caption 365Rs
Jung daily 165 per line and caption 365 Rs
Nawa-i-waqt 125 per line and caption 275 Rs
The News 7 Rs per word and caption 365 Rs
Panel ads:
It is business guide for businessmen only business ads are printed in the panels
For example
Sale of property
Sale of car/leasing
Housing schemes, etc
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Commercial ads:
There are two types of commercial ads
Front page ads
Back page ads
In front page ads customer pay 100% extra and in the back page ads customer pay 50%
extra.
Billboard Advertisement
There are two types of billboard
Screen
Flex
Screen:
Screens are much costly as compare to flex mostly multinational companies used
screens such as
Warid
Zong
Mobilink etc.
Flex:
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Flex are cheaper rate as compare to screen, small businessmen or companies are
mostly used flex for Advertisement.
Types of flex sheet:
China 1*1 18-22 Rs.
Star 1*1 23-32 Rs.
Korea 1*1 28-40 Rs.
Type of flex:
There are two types of flex
Back light
Front light
Back light 1*1 65-250
Front light 1*1 200-650
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Rate of commercial advertising in News paper
Name Rates/cm Front Back ColumnJang 1300 200% Extra 100%Extra 200%ExtraNawa-e-waqt 900 200%Extra 100%Extra 100%ExtraAwaz 800 100%Extra 100%Extra 100%ExtraExpress 900 200%Extra 100%Extra 100%ExtraAaj kal 1000 100%Extra 100%Extra 100%ExtraWaqt 1000 100%Extra 100%Extra 100%ExtraAsas 700 100%Extra 100%Extra 100%ExtraPakistan 800 100%Extra 100%Extra 200% Extra
Rates of Billboards
category Location Rates in Rs.A Model Town, Satlit Town 6500/-
6000/-A+ Gondlanwala, sialkoti
derwaza9000/-6000/-
B Deen Plaza, Sangham Chok,Sialkot Road
6500/-6000/-
C Shaheenabad, Sangam ChokAlipur Road,
7000/-6000/-
A-2 Chok Lohianwala, Chan da Qila,, Bye Pass, Sialkot Bye Pass
6500/-6000/-
D Noshehran Road, Pasrur Road, Hafiz Abad Road
6000/-6500/-
10*20
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1.4 Objectives
Our business is based on affective and creative advertisement .This problem is faced
with both sides’ viewers and advertisement companies. Advertisement is a variable which
can communicate with the people through different Medias. It is the action of calling
something to the attention of the public especially by paid announcements. The goal of
advertising is to cost-effectively reach a large audience and attract customers. Now the
above problem will told that which tips can be generated to communicate the ideas
effectively through the different Advertising Medias. (Electronic, Printing).
To determine what’s the customer intention towards the advertisement through
Electronic media. Firstly find what type of advertisement created the attraction and
spreading image. To determine what motivates our customer in the ads
1.5 Description of the Business and Target Market
We are going to open advertising agency in Gujranwala. Our products are T.V,
Billboard, radio, newspaper, magazine, pamphlet etc. As Gujranwala is the industrial area
so there are lots of opportunities to open these types of business. This problem is faced
with both sides’ viewers and advertisement companies as well. The most important thing
the target audience that means how many people select for the target. This audience trust
on you and your product if you spread true information through ads. People will rely
upon you. For creating the best one image through advertisement in the mind of your
target audience is very easy just by telling the Truth.
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2. Vision and Mission statement
2.1 Vision Statement
“We will maintain a financially strong, growth oriented company for the
protection of our employees and clients.”
2.2 Mission statement
“We desire to measure success for our clients through awareness, increased sales,
or other criteria mutually agreed upon between the agency and the clients.”
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To our future
As we build our agency and our relationships with our partners, we will continue
to focus on the long-term health of our company through steady and controlled growth
and search for new and creative ways to work.
To our clients we offer
A professional marketing system that provides the highest standards of quality
and efficiency where service, creativity, reliability, and integrity are the hallmarks of
every aspect of our work. Our effort is to ensure that we are satisfying the client's needs
and providing materials that are strategically on target as well as having the ability to
produce superior results.
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Legal Plan
PROCEDURE OF INCORPORATION:
Methods of Conducting Business In Pakistan
Sole Proprietorship (SP)
Partnership (P)
Company (C)
Mode of forming a Company (C) in Pakistan:
A Company (C) in Pakistan is a legal entity formed under the Companies
Ordinance, 1984. It can have share capital or can be formed without share capital:
Any three or more persons associated for any lawful purpose may, by subscribing their
names to a memorandum of association and complying with the requirements of
Companies Ordinance, 1984 in respect of registration, form a public company and any
one or more persons so associated may, in like manner, form a private company.
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A company formed under Companies Ordinance, 1984 in Pakistan may be a company
with or without limited liability, that is to say,
A Company Limited by Shares (CLS)
A Company Limited by Guarantee (CLG)
An Unlimited Company (UC)
HOW TO REGISTER
Procedure 1
Seek the availability of a name proposed for the company from the Registrar of
Companies.
Time to complete
1 day
Cost to complete:
PKR 200
Comment:
The company may propose one or more names, in order of preference. The name
should not be inappropriate, deceptive, or designed to exploit or offend any religion. It
should neither be identical to nor have any close resemblance to any existing company
name. The availability of the name can be checked online by searching existing company
names.
Procedure 2
Pay the fee for procedures 1, 3, and 4, and obtain bank receipt/ copy of treasury
challans
Time to complete
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1 day
Cost to complete
No charge
Procedure 3
Obtain stamp paper on which the Declaration of Compliance will be drafted
Time to complete:
1 day
Cost to complete :
PKR 100
Comment:
Formerly, the original copy of the memorandum and articles of association had to
be stamped according to the Stamp Act of the relevant province of Pakistan in which the
company proposed to be registered. Stamp duties vary from province to province. The
Stamp Act prescribes the adhesive stamps to be affixed to the first page of the documents
before they are executed. The unsigned copy of the memorandum and articles of
association is submitted to the Stamp Office of the relevant provincial government
agency with the proof of payment to the Treasury bank account.
Procedure 4
Register the company at the Registrar of Companies.
Time to complete:
3 days
Cost to complete :
Registration fee + PKR 200, filing fee per document, 4 documents + PKR 50 for
the Certificate of Registration
Comment:
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The following company incorporation documents are required for a private
company: - Form-1, Declaration of compliance. - Form-21, identifying the location of the
office. - Form-29, Particulars of directors, secretary, chief accountant, auditors, and
others. Note: Form 1 is to be signed by (a) an advocate entitled to appear before any High
Court in Pakistan or the Supreme Court; (b) a qualified chartered accountant (member of
ICAP or ICMAP) practicing in Pakistan, or (c) a person named in the articles of
association as a director or other officer.
Procedure 5
Make a company seal
Time to complete:
2 days
Cost to complete:
PKR 1000
Comment:
The company seal is prepared after the certificate of incorporation is obtained. It
is affixed on significant documents according to the provisions of the articles of
association.
Procedure 6
Apply for a national tax number (NTN) and register for income tax.
Time to complete:
2 days
Cost to complete:
No charge
Comment:
Companies can check the status of their national tax number (NTN) within 24
hours of application. Since 2002, NTN are issued with a continuous valid term.
Companies no longer need to renew their NTN. Income tax is paid on filing the return,
which is due in 6 months from the end of the company’s financial year (usually in June).
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In addition, the Income Tax Department charges a fee of 2.5% for the workers welfare
fund at the time of its income tax assessment.
Procedure 7
Register for sales tax
Time to complete :
12 days
Cost to complete :
No charge
Comment:
The Central Board of Revenue (CBR) has simplified the registration process for
sales tax by providing two methods discussed below in detail.
Procedure 8
Register for the Professional Tax with the local tax authority
Time to complete:
7 days (simultaneous with the previous procedure)
Cost to complete:
No charge
Procedure 9
Register with the Employee Social Security Institution
Time to complete :
11 days (simultaneous with the previous procedure)
Cost to complete :
No charge
Comment:
Employment tax or social security registration is not mandatory but is subject to
notification in the Official Gazette. The Social Security Institute (SSI) is managed by the
provincial government and levies employers, whether incorporated or not, at 7% of
wages, up to PKR 3,000 per month.
Procedure 10
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Register for old age benefits with Employees Old-Age Benefits Institution
(EOBI).
Time to complete :
11 days (simultaneous with the previous procedure)
Cost to complete :
No charge
Procedure 11
Register with Pakistan Shops and Establishment Ordinance, 1969
Time to complete :
7 days (simultaneous with the previous procedure)
Cost to complete:
PKR 10 (internet)
3. Business and Industry profile
3.1 Company Goals and Objectives
3.1.1 Long term objectives
Achieve more profit margins. We want to expand our business and make our link
available for other website
3.1.2 Financial objectives
Financial objectives are generally described in quantitative terms for at least three
years in the future:
Businesses seeking outside funding and capital should provide a minimum of
three years of projected income statements, although these are usually located in the
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financial section of the business plan rather than the marketing section. Achieve an increase
in profit margin starting from next year. Reduce operating expenses from next year
3.1.3 Marketing objectives
Marketing objectives are quantitative translations of the company's financial
objectives, in marketing terms. We are increasing in Sales by the use of marketing and
other tools. By offering low cost we want to sell more units due to this our market share
are increased and in future we want to become the market leader of this industry. In
marketing plan there is also plan of advertising of the agency so that the awareness of the
agency creates. People come to us and we can easily solve there problems.
3.1.4 HR Plan
Efficient and effective Human Resource
management is a challenge to all HR
professionals. Staffing, training and helping to
manage people so that the organization is likely to
increase the performance level is imperative to
work in a productive manner. Normally, human
resource functions are tracking data points on
each employee. These might include experiences,
capabilities, skills, data, personal histories and
payroll records. In the most general sense
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businesses carry out different activities dealing with managing their approaches to
employee benefits and compensation, as well as employee records and personnel policies.
Establish a CRM system which covers concepts to manage relation between us and our
customers by the start of our business
3.1.5 Operational
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Manage our operations so effectively and timely to serve our customers in
minimum available time. Make our Database system up to date Bring creativity in our
operations
3.2 Stage of Growth
Latitude is the business of advertising agency. At this stage our business is at the
introductory stage, we put our efforts to create awareness among our target market and
create positive image in their minds by providing them creative and effective
advertisement. At this stage we are earning low profit. After 2 years Latitude enter in
growth stage
Marketing Manager
Responsible for finding new customers
Marketing & promotion
Managing emails
Designing Manager
Handling art process
Production Manager
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Handle orders of production
Quality control
Timely delivery
3.2.1 Business Life Cycle
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Latitude
3.3 Industry Analysis
Industry Background and Overview
3.3.1 History
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Wall or rock painting for commercial advertising is another manifestation of an
ancient advertising form, which is present to this day in many parts of Asia, Africa, and
South America. The tradition of wall painting can be traced back to Indian rock art
paintings that date back to 4000 BCE. History tells us that Out-of-Home advertising and
Billboards are the oldest forms of advertising.
As education became an apparent need and reading, as well printing developed,
advertising expanded to include handbills. In the 17th century advertisements started to
appear in weekly newspapers in England. These early print advertisements were used
mainly to promote books and newspapers, which became increasingly affordable with
advances in the printing press; and medicines, which were increasingly sought after as
disease ravaged Europe. However, false advertising and so-called "quack" advertisements
became a problem, which ushered in the regulation of advertising content.
As the economy expanded during the 19th century, advertising grew alongside. In
the United States, the success of this advertising format eventually led to the growth of
mail-order advertising.
In June 1836, French newspaper La Presser is the first to include paid advertising
in its pages, allowing it to lower its price, extend its readership and increase its
profitability and the formula was soon copied by all titles. Around 1840, Volney Palmer
established a predecessor to advertising agencies in Boston. Around the same time, in
France, Charles-Louis Havas extended the services of his news agency, Havas to include
advertisement brokerage, making it the first French group to organize.
In the early 1920s, the first radio stations were established by radio equipment
manufacturers and retailers who offered programs in order to sell more radios to
consumers. As time passed, many non-profit organizations followed suit in setting up
their own radio stations, and included: schools, clubs and civic groups. When the practice
of sponsoring programs was popularized, each individual radio program was usually
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sponsored by a single business in exchange for a brief mention of the business' name at
the beginning and end of the sponsored shows.
Mobile billboards are truck- or blimp-mounted billboards or digital screens. These
can be dedicated vehicles built solely for carrying advertisements along routes reselected
by clients, or they can be specially-equipped cargo trucks. The billboards are often
lighted; some being backlit, and others employing spotlights. Some billboard displays are
static, while others change; for example, continuously or periodically rotating among a
set of advertisements.
Mobile displays are used for various situations in metropolitan areas throughout the
world, including:
Target advertising
One-day, and long-term campaigns
Conventions
Sporting events
Store openings and similar promotional events
Big advertisements from smaller companies
Commercial advertising media can include wall paintings, billboards, street furniture
components, printed flyers and rack cards, radio, cinema and television adverts, web
banners, mobile telephone screens, shopping carts, web popup, skywriting, bus stop
benches, human billboards, magazines, newspapers, town criers, sides of buses, banners
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attached to or sides of airplanes in-flight advertisements on seatback tray tables or
overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage
shows, subway platforms and trains, elastic bands on disposable diapers, stickers on
apples in supermarkets, shopping cart handles the opening section of streaming audio and
video, posters, and the backs of event tickets and supermarket receipts. Any place an
"identified" sponsor pays to deliver their message through a medium is advertising.
3.3.2 Future Outlook
Relatively strong growth was seen in the Commerce sector in 2007-2008, despite
the global economic crisis. Growth in 2009-2010 will be centered on worldwide use of
the advertising agencies.
3.3.3 Key success Factors in the Industry
We are going to open advertising agency. Building relationships with our
customers and giving them respect by good quality ads with low cost. Our customer gets
the creative and effective ads. Because we have educated staff so that well educated
Employees create the ad and giving the best location for ads.
Why to choose this business?
We choose this business because businessmen face a lot of difficulties in the
starting of new business regarding the awareness. Whenever they start the business they
do not have the effective advertisement plan. We solve the all types of marketing
problems, that’s why we choose this business because we don’t want others to face that
difficulty which people faced before.
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4. Business Strategy
4.1 SWOT Analysis
4.1.1 Strength
Fully MIS system
Qualified and skilled person
Financially strong
Location of the business
Specialize Advertisement and marketing
Low price as compare to competitor
4.1.2 Weakness
Initially low intake of customers
New name in market
4.1.3 Opportunities
Vast industrial area to grow the company
The trend of this type of business is moving upwardly in Gujranwala
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Capture more market share by providing quality ads.
Expand in to other cities.
4.1.4 Threats
Changes in the taste & preferences of clients.
Government instability
Attractive industry
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4.2 Competitive strategy
4.2.1 Cost Leadership
It is difficult to keep up with fierce competition, and you hope that you never get
trapped in a dilemma between low costs and good quality.
As we are solving problems of business regarding advertisement. Other agencies are
serving in this way but the point of difference is that we are providing our services good
quality with low rates. Our focus is on the Gujranwala industry and later on we will
expand our target market.
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5. Company Products and services
5.1 Description
Products and Service features
Customer Benefits
Patent Protection
5.1.1 Products and services feature
T V. Ads
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Businessmen and other people can buy our products. We have the resources to
handle your TV ad design and get you the best available pricing on your TV ads. We are
giving the special facility to the businessmen of Gujranwala industries by creative and
effective ads. You can save your time by visiting different agencies and can avoid from
hassle of wasting precious time
Brochure design
Make a great first impression with a high quality brochure design that will help
create brand awareness and generate sales. A professional brochure design can add years
towards your business experience if you're a startup or even make your small business
look even bigger with a professional brochure design.
Web design
Get professional Web design if you are a Small Business or Fortune 500
Company. Design a custom Web design with our in-house web designers. We have
website designers available to start your web design project. Our professional website
designs are an affordable extension of your small business practice. A custom web design
provides creditability, useful information and sales leads.
Printing Services
We offer our clients the good quality in printing materials. We use the latest
technology available, best prices and fast turn around time. We ensure the best level of
quality on all our printing at all times. We are able to offer affordable printing prices.
Services
We deal order for Gujranwala
We solve Special orders within some days
We give discount to members, if there is big order/contract of any
company.
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5.1.2 Customer Benefits
Provides knowledge of new products
Convenient in purchasing, i.e., where and when to buy
Provides opportunities to compare the merits and demerits of various
substitute products
Latitude solve any type of ads problem
Customer can get the creative and effective ads
Increase in the standard of living
Provides knowledge of alternative uses of products.
Customers have to pay low prices as compared to competitor
Benefits to Community
Creates more employment opportunities
Increases standard of living
Encourages healthy competition
Encourages research and development
Helpful in industrial progress and prosperity
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Encourages art and designing
5.1.3 Uniqueness of advertising
To differentiate the product from their competitors
Creative and effective ads
To communicate product information
To expand the product distribution
Too increase brand preference and loyalty
Creates new demands
5.2 Patent or trademark protection
In Pakistan, registration of trade mark and their protection is governed by the
provisions of the Trade Mark Ordinance, 2001 and the Trade Mark Rules, 2004 set out
the registration procedure. We will register our trademark that provides us strong
protection, particularly in case of conflict with an identical or confusingly similar trade
mark.
5.3 Future service
Now we are offering this service to Gujranwala industries but in future we expand
the target audience and give our services to the whole world and also we solve all type of
marketing problems.
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6. Marketing strategy
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6.1 Target Market
The very early important step in putting a powerful marketing plan for the
business is to identify the target market. Latitude has its own strategy in identifying and
segmenting the market. This helped us to know and understand our customers’ needs
accurately. Our target market will be sharing common needs the company decided to
fulfill.
Our target market identifying strategy is contained from three main steps:
Data collections (research)
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PRODUCT
PRICE
PLACE
PROMOTION
MARKETINGMIX
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Analyzing the data collected
Decide and determine
Our target market is the industries of Gujranwala and the near village.
6.1.1 Profile of customers
GeographicWorld Region Pakistan ,
Density Rural, urban
DemographicsAge Youth, matured
Gender Male, Female
Income Middle Income Class, Upper Class, Elite class
Occupation Business class, , other
BehavioralBenefits Best Quality, affordable price, service differentiation,
Social class Middle class, upper class,
6.1.2 customer characteristics
We are going to fulfill their need at their first step toward us. Target customers
have good buying power for the brand. All businessmen like to buy our products at
reasonable price. For creative and effective ad businessmen usually buy products from
the agencies located in Islamabad and Lahore who are our indirect competitors. The
reason behind is that there is not creative ads in this market. Customer attract toward the
Latitude because of following reasons
Reasonable price
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Fulfilling their need at the right time
6.2 Customer motivation
We will conduct seminars and presentations to aware our target market about the
products. This will help establishing awareness among companies.
6.3 Market Size and Trends
A large number of people in Gujranwala have the idea that they can attract the
customers through ads. . This is due to the fact of awareness about advertising agency. In
a strongly relationship-oriented society like Pakistan, people tend to form individual
relationships and long term associations with the businessmen and vendors. The size of
our target market is huge. Most of the businessmen are facing the problem of related ads.
They buy the products located in Lahore and Islamabad.
Our target market is growing rapidly. In every new season number of business is
increasing. Due to the many multinational companies come in the Gujranwala. The
current issue faced by all these companies is the availability of creative and effective ads.
Marketing objectives
To ensure that our customers get the best Value, Quality and satisfaction
from using our services.
Make it Strong, Favorable and unique brand
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Create positive image by providing ads at promised dates.
Motivate the people in way that they ultimately purchase the product.
Establish latitude as the most trustworthy ad agencies of the Pakistan.
Expand our business to national level
To achieve a high level of brand equity by having a distinct position in the
minds of the customers.
Goals
As the Latitude is at the introductory stage, company wants to capture its market
share in the existing target market creating competitiveness by creative and effective ads.
Key Advertising Problems and Opportunity
In Pakistan people like to buy products in traditional way, like to go out for
shopping. They usually do not have the habit of buying online anything. So it’s easy for
the company to attract the businessmen towards the way of buying their products
Opportunity
Our target market is the businessmen of Gujranwala so it’s quite easy for us to
aware our target market at here.
Advertising
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The advertising strategy that we opted for is the combination of Above the Line
(ATL) and Below the Line activities (BTL).
Above the Line Advertisement
Billboards, print ads, broachers and booklets and display signs will be planned to
use in as advertisement for Latitude. The objective here is to create awareness in the
customer through local traditional methods of advertisements. The target market here is
the businessmen of Gujranwala. Display will be hanged on the main roads of the city.
Wall paintings will be done in the areas where different companies are located. Broachers
and booklets will be available on the companies which will be delivering to them on the
time of delivering ads
Direct Marketing
Mails will be sending to the companies. The objective for direct marketing is to
create long term relationships by with the big market customer. The objective here is to
aware the customer about the latest updates of the brand.
Below the Line Advertisement
We plan to go for a lot of BTL activities and for this companies site BTL activity
is a major source of advertising. We will send our representatives to arrange a small on
site demonstration of our service and will communicate the theme of our service offering.
Where we will tell the businessmen how we plan to give them a better solution of
problems facing in ads, so that we might create better awareness.
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6.5 Pricing
Cost structure
6.5.1 Fixed Cost
Fixed cost of the company includes the cost of operating expenses.
6.5.2 Variable Cost
Latitude agency will take orders from customers ordering cost is the variable cost
of Latitude agency and also we get the advance form the customers.
6.6 Distribution strategy
6.6.1 Channels of distribution used
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There are no modes through which we can deliver our products to our customers.
Our services are based on zero level inventory system. After having order of different
products from our customers we will fulfill the order. We get the full information
regarding to name, number, customer address etc. that’ why We have no distribution
channels.
7. LOCATION ANALYSIS
Region / Community Decisions
We are selecting Gujranwala City for the ad agency due to the following reasons
described below;
Corporate Desires
Gujranwala has a culture for industrial development. The people of this city are
normally industrial minded and you can find very easily the industries in various areas of
the city. Gujranwala is one of the big industrial cities in Pakistan where numerous kinds
of products are made and marketed throughout Pakistan. Normally here is a trend in
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young generation to start there own business or in any other industrial sector instead of
going in the field of agriculture.
Regional Attractiveness
Gujranwala region seems to be attractive for ad agency as here is lot of industries.
Here is the demand for this business. Here you can find not only the machine operators
easily but also the mechanics for repair of machine incase of any fault in the machine
during operations.
7.1 Location and Construction Cost
Combining the land and construction cost is
lower in Gujranwala than in Lahore or any other big
city. Here you get land cost about Rs. 35, 00,000/- per
Kanal on the area of main road that is the best suitable
width for routine transportation. And if you go to
State # 2, there the rate is about Rs. 32, 00,000/- per
Kanal. For our project we need minimum of 1 Kanal
area for the agency.
7.1.1 Analysis
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Cost & Availability of Utilities
Normally we need electricity connection which costs about Rs. 700,000/-
including transformer and wiring to the machines in the production unit. Electricity
connection can be gained easily because this unit is not very big to consume much more
electricity causing a hurdle in the supply of electricity.
We need a 200KW transformer for our production unit which cost Rs. 550,000/- and the
wiring of electricity to run machines will cost Rs. 150,000/-
Environmental Regulations of State and Town
Latitude does not cause any harm to the environment. Even there is not any smell
or pollution problem during the work
7.1.2 Air, Rail & High way transportation system
The entire 3 transportation medium are easily accessible from Gujranwala. For
our project both the sites in State 2 and in G T. Road Gujranwala are very close to high
way, due to which we not only can save the transportation cost of our customers but also
the charges of toll taxes.
Nearness to services and Supplies needed
We can avail electricity and telephones and sanitation services G T. Road
Gujranwala due to electricity problem in Pakistan we also use generators just because of
completion the orders.
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7.1.3 Rental rate
Buy land and then make investment. To do this there is huge amount of money
required. To overcome this problem we decided we are not going to buy land. We start
work in rental land. The land of rent an agency which we required is amounted 60,000.
Per month. Location of the ad agency is SAUDI PAK BANK 1st floor G.T Road
Gujranwala. The amount of money which is used to buy the land now that amount is used
for investment.
Site Decision using Factor Rating Method
Factors WeightsPoints Assigned Weighted points
(G.T Road)
Weighted
pointsG.T Road (PBP)
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(PBP)Employee availability 5% 50 50 2.5 2.5
Site Cost 20% 80 70 16 14
Per Capita Income 5% 50 50 2.5 2.5
Tax Structure 5% 100 100 5 5
Proximity to Markets 10% 50 50 5 5
Expansion opportunities 25% 90 60 22.5 15
Transportation 20% 80 50 16 10
Services & Supplies 10% 60 80 6 8
Total Points 100% 560 510 75.5 62
PBP, PINDI BY PASS
*According to the above calculated points G T. Road Gujranwala is the most feasible
location for ad agency.
(Prentice Hall, 2000 Chapter 3)
8. Competitive analysis
8.1 Existing Competitors
Trend of advertisement is not get popular in Pakistan. Advertising should be
judged only by the frequency of the message. Message should be affected only when
target audience impressed. Opinions on Advertising are as conflicting as opinions on
Religion. Shalimar advertisement agency and katin is the two main competitors in
Gujranwala..
PROFILE OF Latitude
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Head quarter Gujranwala
Agency Marketing and advertising
Type Privately held
Status Newly opened
founded 2009
Board of directors president
Agency size Local
Web site www.latitude .com
8.1.1 Competitive Profile Matrix
Company A Company B Company C
Key success factors Weight Rating Score Rating Score Rating Score Brand Recognition
0.1 3 0.3 3 0.3 3 0.3
High Customer 0.3 4 1.2 2 0.6 4 1.2
Awareness 0.2 3 0.6 3 0.6 3 0.6
Experience 0.2 3 0.6 2 0.4 3 0.6Customer Loyalty
0.1 3 0.3 3 0.3 2 0.2
Timely Delivery 0.1 3 0.3 3 0.3 2 0.2
Total 1 3.3 2.5 3.1
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Company A: SHALIMAAR
Company B: KATIN
Company C: LATITUDE
(Fred r David) competitive profile matrix
Porter’s 5 Forces Model
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9. Description of Management Team
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9.1 Key Manger and employees
We as partners will perform certain duties of marketing manager and accountant
manager. The first step is to develop job descriptions and personal specifications.
Marketing Manager:
Analyzing competitors’ data and information and recommend how the
company could provide more powerful offers.
Develop business relationship with other related companies.
Account Manager
Account Manager is the person who is also the partner of Business. He has done
MBA with major in banking and finance.
Accountant job description:
Job title: Accountant
Reports to: General Manager
Job Purpose: To apply his accounting knowledge in analyzing financial information and preparing financial reports such as profit and loss and cash flow statements.
Analyze financial information to determine the company’s financial
position
Prepare profit and loss statement on a monthly basis as well as the cash
flow statements
Establish and maintain a computerized accounting system to use within
the organization
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Business plan
Coordinate with the all departments to determine in order to prepare the
budget for the business
Analyze all company’s operations (marketing campaign) in order to
prepare budgets for the future.
Prepare budgets and review all the business expenses.
Recommend the organization with issues related to taxes and budget
forecasts.
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Rizwan Akram
MBAGIFT (University)MBAMajor(MARKETING)
IN PROGRESS
(PUNJAB COLLEGE)B.COM1ST DIVISION
2006
GOVT. COMMUNITY INTER COLLEGEFSC2ND DIVISION
2004
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Date of Birth:10/08/1986
Home Address:HOUSE NO.106 MODEL TOWN DASKA DISST.SIALKOT
Mob:0300 6428640
Email: RIZWANRAZI@YAHOO.COM
University Address:GIFT University,Opposite Board Office, Gujranwala.
Tel:0553-898929
Website:www.gift.edu.pk
PROFESSIONAL SKILLS CommunicationTeaching .
PROJECTSUnilever marketing plan
Downsizing in Pakistan steal mills
EXPERIENCE Supervisor of ESBRO ( PVT) LTDTeaching at SIMZ college
IT PROFICIENCY Ms office Internet SurfingWindows 98,xpWindows Vista
HONOURS AND AWARDSAwarded as best student at House of commerce collegePerformance for best teacher at SIMZ college
INTERESTSTraveling Meeting peopleGoing out with friendsReading Books Working on Computer
REFRENCESWill be furnished when desired
Zia Ullah Khan
Address: Al Fata St Jinnah Road Islamia park Gujranwala
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Business plan
Contact: (+92-321 7436974 Cell: (+92-302) 4626244
Email:Ziadar_s@yahoo.com
Objective: To gain further experience by Appling my talent skills to their advantage and serving the firm at my best and shaping a good future for myself
Education: GIFT Business School, GIFT University, Gujranwala, Pakistan.(HEC Certified Degree) MBA in October, 2009Major in Marketing
Gujranwala College of commerce(Degree: Agriculture University Faisalabad)B. Com 2006
Govt. College Gujranwala. F. Sc (Pre- engineering ) 2002Professional experience:
Worked as an interne research officer (IRO) with the State Bank of Pakistan SBP, BSC (Bank), Gujranwala. (June, 2008– Aug, 2008)
Teaching, in Fasial High School, Gujranwala (Aug, 2002- Feb 2004)
Projects:
Developed a District profile of Gujranwala that was presented to the Governor of State Bank of Pakistan and that is expected to be published on the website of SBP in soon.
Develop a survey report on Livestock of Gujranwala with the help of State Bank and Chamber of Commerce Gujranwala.
Human Resource practices in Ufone and analyzed their hiring, recruitment, performance and other HR practices.
Marketing Report of Dubai Islamic Bank launch in Gujranwala. Developed a complete business plan for Entrepreneur with a name
RAJAB Rice Mill & Exporters. Develop a Prototype of Railway Station for the course requirement of
Service Marketing. Prepared Case write-ups for Business Ethic Un Ethical issues in Fasyal
Bank. Economic project on Pakistan Agriculture and its reapplication in our
agriculture area.Seminars/ workshop attended:
Seminar on “State Bank” interest free banking conducted by Chief Manager (Muhammad Munir Ahmed)
Seminar on “Entrepreneurship” conducted by Dr. S.M. Naqi (Chairman SPEL)
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Seminar on “Business Ethics” conducted by Prof: Khalid Zaheer Seminar on “Islamic Finance and Modern Economy” conducted by Dr.
Uzair Albazi (Head of Jamia Ashrafia, Lahore.) Seminar on “Free Trade Agreements and Opportunities for SME’s of
Pakistan” held by the collaboration of SMEDA, GCCI and Govt. of Punjab.
Professional Skills:
I have great Interpersonal Communication skills. Excellence in managing administrative matters. Good Interpersonal skills.
IT Proficiency:
Effective and efficient in using Ms-Office XP (Office Management) SPSS (Statistical Program for Social Sciences)
Personal Information:
Date of Birth: 01-10-1985 C. N.I.C: 34101-2532250-1 Father’s Name: Muhammad Afzal Khan Domicile, Gujranwala Single, Male and Muslim. Well versed in English, Urdu and Punjabi. Be able to work under stress and for long hours.
Interests:
Books reading Traveling & Technical work
Reference: Will be furnish on demand
NADEEM AFTAB
EDUCATION
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Date of Birth: 11-09-1987.
Home Address:St.# 26 Mughalpura Daska.Tel:052-6610039
Mob:0300-4252764
Email: Sanju_nadeem@yahoo.com
University Address:GIFT University,Opposite Board Office, Gujranwala.
Tel:055-3898929
Website:www.gift.edu.pk
GIFT University GujranwalaMaster in Business AdministrationMajors. Marketing
Expected in 2009
Punjab College of Commerce (Punjab University)B.Com
2004 - 2006
Govt Degree College DaskaI.Com
2002 - 2004
PROFESSIONAL SKILLS Good Communication skills Leadership skills Hardworking & Motivated
Experience Worked as management internee in national bank of Pakistan Member of Dua Foundation. Teaching at SIMZ college
PROJECTS Analyzed Marketing plan on RC Cola. Analyzed a Marketing Project on Lever Brother. Best Business opportunity for Gujranwala. Study Report on Bata
IT PROFICIENCY Microsoft Office, Serve Internet.
HONOURS AND AWARDS Best student in Fame college Member of Young Blood Bank.
INTERESTS Traveling, Book Reading, Movies, Music.
REFRENCES Will be furnished upon request.
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Business plan
10. Plan of operation
1
0.1 Form of Ownership
Our business is based on joint proprietorship. We will have a partnership contract
between our 3 partner this will help avoid problem and conflicts. As concerns for the
managing workload all the partners will manage it efficiently. One will manage all
marketing activities and relationships with supporting parties while other will mange
accounts and keep records of transactions and maintain check and balance and other
will plan of opportunities gain in future.
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10.2 Organization Chart
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Customer
GOVT
Market
Institutional
Advertising Manager
Product C
Designing Manager
Product B
Product A
Boards of Directors
Finance Manager
Product D
Production Manager
Magazine
Newspaper
Broad costing
T V
Finance Manager
T.V
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Business plan
10.3 Decision making authority
All mangers will have the authority of making the decisions. They will impose terms
and conditions of handling the work process and work load. All the partners will have
equal profit and will bear equal loss in case of any problem. They will divide work load
equally by dividing their duties. In addition we will have the partnership contract which
identify all the required contents
Business name
Partners’ name and addresses
Type of business
Amount of capital
Banking details
Percentage of sharing profits (most important point)
Authority of each partner
The ways of ending the contract
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FINANCIALPLAN
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Project Appraisal Summary545454654
Project Appraisal SummaryParameter Details
Construction and Landscaping 2 MonthsOffice Location Sudi Pak bank 2nd floorSetup Partnership
Project Cost Description Amount (Rs.)
Data Processing Equipments 45,200Furniture & Fixture 100,000Motor Vehicle 68,500Preliminary Expenses 5,000
Total Fixed Cost 145,200
Net Initial Working Capital 854,800
Total Project Cost 1,000,000Means of Financing Total Rs.Debt -Long Term Loans -Equity 100%Capital 1,000,000
Total Investment 1,000,000
Projected Income Statement (Rs.)
1st Year 2nd Year 3rd Year 4th Year 5th Year
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Sales 5,000,000 6,000,000 7,200,000 8,640,000 10,368,000
Cost of goods sold 4,000,000 4,800,000 5,760,000 6,912,000 8,291,000
Gross Profit 1,000,000 1,200,000 1,440,000 1,728,000 2,077,000
OPERATING EXPENSES
Salaries and wages 600,000 660,000 726,000 798,600 878,460
Utilities 86,000 86,000 86,000 86,000 86,000
Depreciation 21,370 21,370 21,370 21,370 21,370
Office supplies 20,000 20,000 20,000 20,000 20,000
Office Rent - 60,000 60,000 60,000 60,000
Preliminary Expenses 5,000 - - - -
Total Operating Expenses 732,370 847,370 913,370 985,970 1,065,830
Profit 267,630 352,630 526,630 742,030 1,011,170
Income Tax 21,158 31,598 44,522 60,670
Net Profit 267,630 331,472 495,032 697,508 950,500
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Projected Cash Flow Statement
Base Year 1st Year 2nd Year 3rd Year 4th Year 5th Year
Beginning Cash Balance 786,300 975,300 1,228,142 1,644,544 2,263,422
Cash Inflows:
Capital 1,000,000 - - - - -
Net Income - 267,630 331,472 495,032 697,508 950,500
Add: Depreciation - 21,370 21,370 21,370 21,370 21,370
Total Cash Inflows 1,000,000 289,000 352,842 516,402 718,878 971,870
Available Cash Balance 1,000,000 1,075,300 1,328,142 1,744,544 2,363,422 3,235,292
Cash Out Flows:
Purchase Fixed Assets 213,700 - - - - -
Profit distribute to owners
- 100,000 100,000 100,000 100,000 100,000
Total Cash Outflows 213,700 100,000 100,000 100,000 100,000 100,000
Ending Cash Balance 786,300 975,300 1,228,142 1,644,544 2,263,422 3,135,292
RATIO ANALYSIS
Ratios For example
Year 2010
Year 2011
Year 2012
Year 2013
Year 2014
Gross Profit GP/Sales x 100
20.00% 20.00%
20.00% 20.00%
20.00%
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Operating Expenses OE/Sales x 100
14..64%
13.69%
12..68%
11.42%
10.28.%
Net Profit NP/Sales x 100
5.35% 6.10% 7.20% 8.78% 11.46%
Return on capital NP/Capital x 100
27.00% 34.00%
50.00% 69.00%
95.00%
Fixed AssetsSNo. Equipment Qty Specification Brand Price
1 PC 1 Core 2 Due Intel 25,000 2 UPS 1 1 kv local 10,000 3 Printers 1 Laser HP--Used 4,000 4 Scanner 1 - - 1,200 5 Fax Machine 1 - - 5,000 6 Furniture & Fixtures 1 - - 50,000 7 Air Condition 1 1.5 Ton Orient 50,000 8 Motorcycle 1 CD 70 Honda 68,500
Total 8 213,700
Fixed Assets Depreciation(Rs.)
Year 0 1st 2nd 3rd 4th 5thDPE 45,200 40,680 36,160 31,640 27,120 22,600
Furniture & Fix. 100,000 90,000 80,000 70,000 60,000 50,000 Vehicle 68,500 61,650 4,800 47,950 41,100 34,250
Depreciation @ 10% DPE - 4,520 4,520 4,520 4,520 4,520
Furniture & Fix. - 10,000 10,000 10,000 10,000 10,000
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Vehicle - 6,850 6,850 6,850 6,850 6,850
Total 21,370 21,370 21,370 21,370 21,370
BREAK EVEN POINT
Fixed cost = 732,370 RsVariable cost = 4,000,000 RsSale = 5,000,000 Rs
CM Ratio = Sale – variable cost/saleCM Ratio = 5,000,000-4,000,000/5,000,000CM Ratio = .20Break Even Point = fixed cost/CM RatioBreak Even Point = 732,370/0.2Break Even Point = 3,661,850 Rs
REFERENCES
www.smeda.org.pk
www.google.com
Mohammad Azeem
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Chief ad agency
Al-Buraq ad agency
Usman Asif (Director)
Katin ad agency
Shalimar ad agency
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