SUBMITTED TO:

Mr Adnan Shabir
SUBMITTED BY: Ali Hassan (4742) Muhammad Asif Muhammad Shazad Muhammad Arslan

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Acknowledgement

We are grateful to Allah, Who enables us to complete this report effectively. We are also thankful to our respected teacher Sir Adnan Shabbir, because without his generous co-operation, the accomplishment of this report would not be possible. Besides this we are also thankful to our respected fellow
Aslam,

a Mug marketer in Rawalpindi,Raja Bazar, who

helped us a lot in designing our project.

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Dedication

To our Loving Parents and Honourable Teachers. To all of those who have served and sacrificed for the sake of Islam.

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Table of Contents
1. EXECUTIVE SUMMARY 2. SITUATION ANALYSIS: 2.1. Market Needs 2.2. Market Analysis: 2.2.1. Market Trends 2.2.2. Market Demographics 2.2.3. Market Growth 2.3. Company: 2.3.1. Vision 2.3.2. Mission 2.3.3. Product Offering 2.3.4. Positioning 2.3.5. SWOT Analysis 2.4. Competition 3.0.MarketingStrategy 4.0. Marketing Mix: 4.1. Product 4.2. Price 4.3. Place

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4.4. Promotion 4.5. Services 4.6. Sales Plan 5.0. Financial Aspects: 5.1. Projected Income Statement 5.2. Projected Income Statement (next three years) 5.3. Projected Balance Sheet

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Executive Summary
Goal of Saam co is to become the leading Mug making company in the future, to gain the repute of a market leader and trend- setter in Mugs fashion, to provide Mugs range that speaks of its innovation & high quality at value price for society, to achieve expertise over the time in order to give novelty of patterns and designs to our Mugs. Company will provide products through extensive and exclusive channels. Image in the market of the SAAM CO would be maintained by quality products. Fashion adopted by SAAM CO is fast, prompt and unmatchable in the market. Culture of the company is maintained on the high Islamic ethical values. We will manage all costs in accordance with the range of price that we plan to offer. Most of the stores sell Mugs at 100% profit. We will discourage this trend and will focus on prices according to the quality and nature (formal or casual) of the Mugs. Price is also an important component of value. In recent years, customers both in consumer and business markets have sought better value in goods and services that they consumewe are focusing on thatwe will provide our customers best use of their money for that particular product i-e mugs. We have priced our products so that the money of the customer is valued as much as our own and they are provided with quality products. Our mugs are unique and designer made so the people interested in our product will belong to upper middle class and middle class. We will target these segments and will place our product according to their shopping place preferences. Company will start its business with capital amount Rs. /- 70, 00,000. Estimated plant and machinery would be of amount Rs. /- 10, 00,000 and future cost would be of Rs. /-7, 50,000. With this investment company will be able to earn profit Rs. /-5, 03,200 annually.

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2. SITUATION ANLYSIS:In order to profitably satisfy customer needs, SAAM must understand its external and internal situation, including the customer, the market environment, and the firm's own capabilities. Furthermore, it needs to forecast trends in the dynamic environment. As we talk about the dynamic environment, it gives us a clear picture of the environment. There are so many aspects in market which are changing so rapidly that we have to keep eye on them because it affects the product or organization directly or indirectly. A very formal way of situation analysis is a way of five Cs. Company Collaborators Customers Competitors Climate

Company:

The company provides products through extensive and exclusive channels. Image in the market of the SAAM would be maintained by quality products. Technology adopted by SAAM is fast, prompt and unmatchable in the market. Culture of the company is maintained on the high Islamic ethical values. Goals of SAAM are to be the leading men foot wears in the future.

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Collaborators:

Distributors Suppliers Alliances

Customers:

Market size of SAAM is initially to cover the local market and then to enter in the main markets nationally and internationally. Benefits to the customers are that we will guarantee our product and the service of the shops is very comfortable for them. Motivation is a very basic aspect to customer. We motivate them by our exclusive advertisement. Retail channel as listed there should be at least three to four channels in the local market. Target market provides the clear picture of it. Consumer information about the product is provided as listed through proper and exclusive ads in magazines, newspapers etc. Buying process is very simple, thats not a single customer find any difficulty in purchasing the product. Quantity purchased at a time should be in accordance with customers need and demand.

Competitors:

Direct competitors are those who are competing with us in the same target market. Indirect competitors are with some brands like Ocean, Luminarc, and Nova etc.

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Products of SAAM are very unique and versatile from existing competitors in the market. Product Positioning is REALIABLE AND COMFORTABLE Strengths and weaknesses of competitors would be look in the way which is beneficial for us and provide us with some new changes in drinking fashion industry.

Climate: The climate or macro-environmental factors are:

Political situation is very good in Pakistan. For the first time in Pakistan the tenure of the government is completed. Economic environment in Pakistan is very good. Economy is growing very fast and tremendous growth is occurring. There is a great Economic environment in Pakistan for opening the new business. Technological environment is also great in Pakistan. It should be upgraded as for as the industry is concern. Law and order situation is also very good in Pakistan. Many national and international investors are investing in industries.

2.1 MARKET NEEDS:

As we talk about the drinking fashion, we all know that it is a basic need of every one, its more necessity rather than a luxury. If we talk about the market need, need is always there for mugs in the market. The idea which we apply to cope up with the need is that we convince our customers to fulfil their needs by using our product. As the analysis is conducted by us, basically each and every customer demands something new and unique in the market. The uniqueness and versatility is the ultimate demand of the customers in the market. Every one thinks that the product which he or she buys would give him or her different feelings from others. In market needs the demographics, trends and growth is conducted by keeping a strong eye on customers demand and needs.

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SAAM co are providing the market with a wide range of fashionable mugs with an unprecedented selection. Currently, men must travel up to Seattle in order to come close to approximating SAAM co selection. SAAM co seeks to fulfill the following benefits that are important to their custom

Selection: The widest selection of graceful mug design and style

which provides customers with according to their will or desire.

Accessibility: The central location and wide range of business hours

designed to accommodate all customers needs.

Customer service: The patron will be impressed with the degree of

care that they receive.

Competitive pricing: All products will be available in the market

according to price competition, which is conducted very carefully before setting the price. The price which a customer pays for the product will definitely according to his or her perception.

2.2 MARKET ANALYSIS:

As it was said by MICHAEL DELL. (1965) Were always looking to see what we can do to make our customers lives easier or save them money. It pervades every part of the company.
The most important part of the market is customers. So the all concentration in conducting analysis is focused on the customers. The situation of market is in dynamic environment. All factors in an environment is changing so rapidly that every customer demands something new. Mug market is also experiencing same sort of situation, especially the customer always demands some thing new and inspiring. Currently the competition is very tough and challenging in the market.

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The market analysis is conducted by keeping strong eye on customer; it is analyzed in the following ways. Environment of the market is very good. Its an ideal environment to launch a new business in the market. Shoes are the basic necessity of every one. Every customer wants a new and change thing in the market. Current Situation of market also ideally suits the business. Increasing population is not a hidden fact. Every one knows that this increase is creating new opportunities. The need of the hour is that we have to grab them as soon as they appear in the market. Customers Demand is also ever increasing in every commodity including mugs. It should be fulfilled by an appropriate supply.

2.2.1 MARKET TRENDS:

The market trend for stylish mugs is toward a wider selection of common design elements. Over the last few years, there has been a proliferation of several design variations from a base design. A base design is released and then there are many different spurs that have common elements but include a few distinctive characteristics. While this is great for the customer because it allows them to be fashionable but distinctive, it is tough for most retailers because it increases their overhead in the form of inventory. This trend is an ideal for SAAM co which has a business model that allows for stocking many different styles. One another feature of SAAM will that we will introduce our product in the market with a new trend. We will be the trend setter in customer taste. We will introduce the customers with so many options that ultimately the customers will be attract towards our brand. It was one of the best feature of SAAM that customers should be invited to discuss about those particular designs which are in fashion. They have an open discussion and there opinion has very great value for us. In short customers are given so importance that SAAM and customers mutually set the new trends in the market.

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2.2.2 MARKET DEMOGRAPICHS:

Demographic characteristics describe the population and its behaviour in the market where the company offers its products. Target market gives the clear picture about that particular area in which we emphasis more to sell our product. As we talk about the population and its behaviour in our particular market area. We find the following characteristics in them Demand something new: Customers behaviour about demanding the new product is very clear. They demand something new unique and versatile. Fashion oriented: Fashion is being now the necessity of every customer. Customers behaviour reflects its fashion oriented approach. Durability of products: Durability of the product is also another crucial issue. If a customer pays some money for purchasing some product, it is in the instinct of the customer that he has to feel that he utilizes his money properly. So durability is an important and influential issue. Grace: Customers behaviour also shows that the grace should be remain in the product as essential ingredient. Simplicity: Every customer wants to look simple and reasonable style of mugs.

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 Environment friendly: A product, which a customer purchases, would be environment friendly. It should not harm the environment in any way.

2.2.3 MARKET GROWTH:

There is a bright future of our mug in the market. We will provide mug to upper middle and middle class. But our priority sector is upper middle class in small and big cities. The purpose of our company is to serve all sectors, cities and ages in quality and quantity. There is a growing number of upper middle class in all the cities of Pakistan, so if we cater the needs of upper middle class properly and along with it other classes we can not only increase our profit margin but also serve a large sector of society. We will initially provide our mug on retailers shops and in the next step with the expansion of our product company aims to provide its mug on its on franchises in major cities such as Islamabad, Lahore, Karachi, Faisalabad.

Introduction:
The product that we plan to market is Modern design of Mugs. The idea is to hire Pakistani designers who will design mugs according to the latest trends and fashion in our country and to sale these mugs in a different and unique environment. The most important aspect of the whole venture would be the pricing. The mugs will be available in ranges affordable by Middle and Upper Middle Class mostly.

Why Mugs?
When we were given this project the first thing that came to our minds was Designer of mugs, which are made in Pakistan. This is something that most of the males and females, especially teenager boys have been looking forward to, for a long time. If they were introduced in the market, we ourselves would be the first to buy them. We know a lot of people who have the same problem. There are no good shops in about many cities where you can buy mugs worth their price.
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The mugs that are normally available are not of good quality or design. The only choice left for the buyers then is to buy imported mugs, which are brought from Thailand, Malaysia or Singapore mostly. These mugs are sold at an abnormally high profit, almost 100% more than their cost price. Price of the same pair of mugs varies from shop to shop. Furthermore, the environment of the existing shops is very intimidating. There are mugboxes flying all over the place. Most of the customers attention is focused on trying to avoid being hit by the box rather than on buying the mugs.

2.3 COMPANY
Companys Name: SAAM CO

Companys Vision:
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To become the leading brand in mugs fashion.

Vision is the future prospect of any thing. Ours product vision is seems to be very clear and bright. SAAM co provide the customer with optimal choices of best mugs ever made. Serving customers need with the best is the motto of ours. SAAM co would be the optimal choice for a customer.It provides him the fantastic and memorable feelings when he use to purchase that product. Providing customers with comfort and ease is the ultimate objective, mission, goal, aim of SAAM co.

2.3.1 Mission:
Our mission is

To gain the repute of a market leader and trend- setter in mugs. To provide wide range of mugs that speaks of its innovation & high quality at value price for every customer. To achieve expertise over the time in order to give novelty of patterns and designs to our mugs. To develop and design a range of trendy and stylish mugs to enhance the choices for customers. To make efforts to let people be aware of the importance of high quality of mugs, to popularize the "mugs style" culture & also to provide quality life and to contribute to the society.

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 To be a good, solid company that maintains its intense focus on profitable growth and operations by providing high quality & unlimited opportunity in a wide range of mugs. We believe that a well-founded reputation for scrupulous dealing is itself a priceless asset. Thus, in pursuing the mission we shall at all times be guided in our conduct and decision making by moral & ethical values.

2.3.2 PRODUCTS OFFERING

SAILENT FEATURES OF THE PRODUCT
NAME & LOGO:

The product as already stated is Designer mugs for customers. The name is

SAAM CO
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MUGS fashion
This is what we want to promote: Designs that you can imagine and many that are beyond your imagination.

TYPES: The Mugs will be available in the following categories Casual Formal Party Customize

Difference from other Brands

The factors which makes it different from already existing shops is the Individuality and creativity of designs. Price matches quality of product. Innovative packaging and presentation. Affordable prices.

Customized mugs are another area of this field explored for the first time by Pretenses. All these features add up to a brand new product rather than a modified one. And also the act of selling and the environment of our shop will be noticeably different from other shops, selling mug.

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The idea is to create mugs that are practical for all occasions while creating an exclusive Pretenses look. Another common problem that customers face during purchasing is style of the mug. We make similar design of mug in a variety of different designs that provides the customer with an appropriate selection. Our idea is to make similar mug in different sizes. Large (500 ml) Medium (250 ml )

A problem from the manufacturers point of view is the copying of styles in cheap quality stuff, which is then sold at a very low price at stalls in Liberty. SAAM plans to overcome this problem by ensuring copyrights of the designs that our company will make. Furthermore Quality and comfort level Perfect Figure Extra fine finishing And the Personal touch in customer satisfaction and dealings Will make sure that our customers are loyal and they will return to us for more purchases rather than buying substandard mugs.

TECHNICAL ASPECTS OF THE PRODUCT

Purchase of Raw Materials:Raw materials required:

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 Chinese Clay Colour Polish

How will we get hold of these materials?

We intend to offer our customers, prices that are affordable and according to the quality of the mugs. So we are planning to buy all the raw materials from wholesalers at a discounted price, so that we can keep the cost low and offer our clients quality mugs worthy of their money.

Making of the Mugs:

Making of the mugs requires professionals, we can give ads in the newspaper and get the word out that we are looking for skilled men and are willing to pay adequately for their efforts and if their hard work pays off there is also bonus. People doing similar jobs in this category have a community of their own and we wont have any difficulty hiring the required number of people to start us off.

Management of Costs:
We will manage all costs in accordance with the range of price that we plan to offer. Most of the stores sell mugs at 100% profit. We will discourage this trend and will focus on prices according to the quality and nature of the mugs. All this is discussed further in the section of pricing and consultant advice with mathematical representation.

2.3.3.

PRODUCT POSITIONING
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EASE AND COMFORT

We position our product in the mind of our customers through that slogan of Ease and Comfort. It provides the customers with the feeling that they are purchasing the right product at the right time, which ultimately provides them with comfort. Ease and Comfort is a short line and it easily sets in the mind of the customer.Product positioning is a very crucial stage in launching the product.We take the following things under consideration in positioning our product.

2.3.4. SWOT ANALYSIS

The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing SAAM CO. STRENGHTS: Extremely strong relationships with distributors. Excellent staff who are well trained and customer attentive. They also get great discounts, increasing job satisfaction. An efficient, stylish retail store. A long term relationship with the customer and keeps the loyalty of the customer. The most versatile, innovative and creative approach for the first time especially in gents foot wear.

WEAKNESSES: The inability to provide instant gratification by having all sizes in stock. Forecasting fashion is difficult but necessary to profitability. The struggle to build brand equity.

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OPPORTUNITIES: A growing segment of the market that is increasingly bothered by having to drink through nice mugs. An industry that seems immune to recessions. The ability to operate on lean overhead relative to competitors. Target market is sadar, Abpara, Commercial.They are highly rated as customers oriented market. THREATS: The introduction of a competitor to the Commercial market with a similar business model. Completely misjudging where fashion is headed. Constant delays in the shipment of product or the unavailability of many of the advertised designs. The Big brand names such as Ocean, Nova,luminarc etc.

2.4 COMPETETION
There are other mug companies in the market which have sufficient resources and they comprise a great portion of market. Following are the characteristics of other companies operating in the mug market. Toyonasic Ocean Nova luminarc Ommrac

Comparative advantages to SAAM CO:

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SAAM has a comparative advantage over these abroad owned companies. It will provide quality mugs for the country at lower prices and of better quality. We have emphasized more on two aspects. 1. Low Prices. 2. Quality Products. It can be achieved by such most of our machinery would be of local made. The essential machinery would be imported from abroad. Highly trained staff local staff should be recruited within the country. Local raw materials would be used in our products. Those which are of much important in manufacturing would me imported from abroad. Our main emphasize is the production through the productive assets of the country and this will obviously reduce the cost of production.

3.0 MARKETING STRATEGY

Personnel Selling:
It is the direct presentation of the product to the customer, as we will do. It is the trickiest way of selling, as the customer not only scrutinizes the product but also its seller & the environment etc.

Where will we advertise?

One of the most important parts of an advertising campaign is its placing and location as our target market is upper middle class and upper class. So we will advertise ads according to their preferences. Newspapers: We will publish ads in the Fashion segment of English newspapers like Dawn, The Nation, The News, and The Daily Times etc.
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We plan to open on 12th November 2010. So in order to create sensation and excitement amongst people, we will start giving ads by the middle of September.

Billboards:
Billboards in Sadar, Blue Area, and Commercial will be ideal for the advertisement of SAAM.

One sample advertisement that we plan to put on a billboard is:

The design you imagine or may be beyond your imagination. In this ad we went for simplicity and class. It is a sign of grace and style, blended in one. These are the mugs and on another location we can go for the next design that is shown. In this advertisement we have clearly shown that we are unique in our way of thinking and that we have a lot of variety. This advertisement should go up on some bridge or Sadar. 23 of 38 Page

This advertisement should be put on a billboard somewhere in Commercial where there are more social events and people need more for mugs which also speak of grace.

Radio:
Nowadays there is a big trend of listening to radio whenever people are in car or free at home. So we will also advertise on radio channels like FM 99, FM 106.2, and FM 100 etc.

Television:
The most watched TV channels in Pakistan right now include Geo TV, ARY Digital and Aaj TV. So we will give Ads on these TV channels.

Magazines: The most popular magazines include Mag, Sunday Magazines, and Economist. We continuously give attractive ads in them to advertise our product.

4.0 MARKETING MIX:

PRODUCT PRICE PLACE PROMOTION

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4.1 PRODUCT

Another new concept that SAAM will be introducing is Customized mugs. We will be making special mugs for customers who want to design their own mugs. This idea can be implemented in another way where customers can explain to our designers what they want. The designers will make sketches for them and the one that is approved by the customer will be forwarded for final making. This way SAAM will be presenting an ideal opportunity for customers who have special requirements. The customers who have odd mug size or shape can also avail this opportunity.

BUYING AN EXPERIENCE
Our aim in this business would be to make sure that if someone comes to our outlet irrespective of the fact that he or she buys something or not, the treatment that he or she gets from the sales personnel would make sure that the next time he or she wants to buy mugs, theyll come straight to us. There would be no flying boxes, customers wont be constantly followed by salesmen bugging them as to what they want and if by any chance the size they want to buy is not available the customer can order it to be made in a weeks time.

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The atmosphere would be more like that of a jewelers shop. The customers ordering customized mugs would be served with refreshments.

OTHER IMPORTANT FEATURES:

SAAM at first will fall under the category of shopping goods but with time and effort we will develop our product to be in the class of specialty goods. When talking about the classification of the new product, SAAM is significantly different from the existing products in terms of form, fashion and most importantly the benefits provided. PRODUCERS CRITERIA FOR NEW PRODUCTS There must be adequate market demand: The Customers of Pakistan have become very style conscious in the last 6-12 years. There is a huge market for all accessories but the prices charged are either too low or too high. There are very few firms that offer quality service, so there is a huge market demand for excellence in the field of accessories especially in mug making. Investors should feel very comfortable in putting the money in this project as we have done the market research ad have an excellent and applicable plan in front of us. Satisfaction of key financial criteria: The most critical question when starting any kind of merchandise is weather we will be able to
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generate suitable revenue from it or not. This question can be answered very easily if we consider the profits generated by companies that at this time are not offering any uniqueness and services that we will. We plan to rule the market on the basis of individuality and quality service and we will be able to generate profit within a very short period of time.

4.2.

PRICE:

Importance of Price:
In the Economy:
A products price influences wages, rent, interest and profits. Price is the basic regulator of the economic system because it influences the allocation of factors of production, labor, land and capital. As an allocator of resources, price determines what will be produced (supply) and who will get the goods and services produced (demand).

In the Customers Mind:

Some prospective customers are interested in low prices, whereas another segment is more interested in other factors such as service, quality, value and brand image. Research has shown that basically there are four distinct categories of shoppers 1. Brand loyal (relatively uninterested in prices) 2. System beaters (prefer certain brands but try to buy them at reduced prices) 3. Deal shoppers (driven by low prices) 4. Uninvolved (seemingly not motivated by either brands or low prices)

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Price is also an important component of value. In recent years, customers both in consumer and business markets have sought better value in goods and services that they consumewe are focusing on thatwe will provide our customers best use of their money for that particular product i-e mugs. We have priced our products so that the money of the customer is valued as much as our own and they are provided with quality products.

In the Individual Firm:

A products price is the main determinant of the market demand for it. Through prices, money comes into an organization. Thus, price effects a firms competitive position, revenues and net profits.

Factors affecting Price Determination:

Estimated market demand: The estimated price of a product is the
price at which a customer consciously or unconsciously values it its what they think the product is worth.

Competitive reactions: In order to be successful, we have to think

about what customers perceive about the products of the competitive companieswhat in their opinion are the shortcomings of their product and then we have to work on our products to make sure that they dont have the same disadvantages. We have many direct competitors i-e they basically have the same product as ours. We have to rely on quality and price in order to beat them. So, pricing less and delivering better has to be the primary objective.

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Other marketing mix elements: Marketing mix elements such as

nature of the product, cost and promotion etc. play a very important factor in determination of prices. Product: Pricing depends a lot on the kind of the product. As it is a comfort good that we are offering, so its price must be of the sort that is comfortably afforded by our target market.

Promotion: Advertising plays a very important role in the pricing and

selling of a company. We have to make the consumer sure that the price they are paying for our mug is the right one so, we have to rely heavily on our promotional scheme for bringing out the unique features in our mugs and to make sales. If promotion of our product is not good and the customer is not even aware of the salient features and uniqueness, then we definitely have to cut down on our prices in order to rule the market on the basis of price rather than price and quality together.

Our main Pricing Strategies:

Pricing will be done according to the cost i-e cost will be on cost-plus basis. After considering the cost we will add an appropriate profit. Pricing will be done keeping in view the prices of the competition. Being a new product we have to catch our customers with fewer prices for better mugss. So we will cut down costs if necessary in order to meet competition prices.

4.3.

PLACING:

Target Market:
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Our mugs are unique and designer made so the people interested in our product will belong to upper middle class and middle class. We will target these segments and will place our product according to their shopping place preferences. The possible localities to open the first shop are: 1. The Mall Sadar. 2. Commercial. 3. Blue Area. 4. Abpara. We have selected The Mall Sadar as our first preference and Commercial as the second one.

Reasons for selecting The Mall Sadar:

It attracts more of our target market. Most of the people living in twin cities go to that market as a part of their routine and thus we will get more exposure. Rent of the shop is less than that from other market. System of electricity and phone is much better in The Mall Sadar. It also has some popular restaurants near by and whenever people come to eat usually they visit the market too as an outing. So we will be able to sell more of our product. There are more opportunities for us to decorate our shop. The system of security is much better in Sadar. There is a big cinema house in sadar which is regularly visited by so many people. There are too many big shopping centers like Ghakhar, Civic Center, and shahbaz and Niazi plaza as well.

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4.4.

PROMOTION:

Promotion Objectives:
Awareness: At awareness stage the sellers task is to let the buyers know that the product or brand exists. Since we are a totally new brand, our biggest objective is to create consciousness and make people realize that we are in the market too. We are in the market to provide our customers the innovative and versatile mugs ever made. Knowledge: Knowledge goes beyond awareness to learn about a products features. Once we have created awareness that we are in the market, we have to give our target market information about why we are unique and why they should come to us for purchasing mugs. Liking: Liking refers to how the market feels about a product. Promotion can be used to move a knowledgeable audience from being indifferent to liking a brand. We will base the liking part of our promotional campaign on the bases that we have affordable prices for designer and unique mugs; we care about our customers and provide them with a great environment for purchasing our merchandise. Preference: Creating preferences involves distinguishing among brands. The most difficult task faced by us in the advertising is this stage, where we have to make people prefer our mugs to other established brands such as Nova, Ocean, and lumnirac etc. We will achieve this target through hard work and dedication. We will focus on our strengths and make our target market aware of the advantages that we have over other brands. Conviction: Conviction entails the actual decision or commitment to purchase. The promotional objective here is to increase the strength of the buyers need. SAAM will achieve this objective by providing quality merchandise to its customers and by treating them cordially and giving each client special attention according to their needs and wants.
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 As mentioned above, the atmosphere of the shop will be very different from that of an ordinary shoe Shop and refreshments will also be offered. So the customers will come to us because of our quality goods and service. Purchase: Purchase can be delayed or postponed indefinitely, even for the customers who are convinced that they should buy a product. Thats why we have preferred the location of The Mall Sadar where people come for outing and its not out of the way for most of our target market. This will create a certainty of our sales.

Key Factors that will be Enhanced in Promotion:

1. Unique designer of mugs. 2. Affordable prices. 3. Convenient location. 4. Good atmosphere of the shop. 5. Care for our customers.

4.5.

SERVICES

Company aims to provide its shoe initially on wholesalers and retailers outlets. In future it aims to provide shoe on its own franchise and outlets. There we will provide excellent services, a nice environment, and our sales persons would be there to guide and to give you what you desire. Our product line diversifies to fulfil the needs of all ages, classes and people. We will surely provide discount to our regular customers and students.

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4.6.

SALES PLAN

Our main pricing objective will be sales oriented i-e main pricing goals would be to:

Increase sales volume:

As we plan to grow fast we have to adopt the strategy of increasing sales volume. We have to discourage competitors so we first have to

concentrate on getting customers and setting up a market share and all this could be done when we campaign effectively for incrementing sales.

Maintain or increase market share:

As a new comer in the market we have to concentrate on developing a healthy market share and maintaining it. Many companies go in loss within their 2nd year of opening because they are unable to maintain their market share. We will avoid this by innovation and schemes (it is discussed in more detail under the heading of future plans). BUYING DECISION: Price will be in accordance with the price lining strategy i-e it will be different for different mugs. It will also benefit the customer, as it will simplify the buying decision.

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5.0. FINANCIAL ASPECTS 5.1. PROJECTED INCOME STATEMENT: (For the first three months)
Revenues Sales Expenses: Manufacturing Cost Shop fittings Refreshments Employee training Advertising and promotion Bills Gross Profit: Tax (15%) NET PROFIT (Rs.) 10,000,00 3,000,00 145,000 70,000 40,000 175,000 30,000 760,000 240,000 (150,000) (90,000)

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Why this Income Statement is a Profitable One?

In this income statement there is a huge expense of shop fittings which once installed are permanent. It is a kind of investment because if at some future time we have to vacate the shop the present price of the fittings will be included in the offer of purchase or rent. A huge chunk of our funds has gone into advertising. At the initial stages advertising is required to create awareness and to make people intrigued. Once we have established our clientele and have gained our market share the expense on the promotion will decrease and we will be able to generate more profit. There is also the expense of employee training which is also once, so the expense will not be present in the income statement of the next 6 months. The sales estimation is the least one, maybe after seeing the quality of our merchandise the sales will be more than expected. We have only suffered a loss of Rs 60,000. Whereas most of the shops that have been operating for 2-3 years are suffering much worse losses than us, so we are in a way more beneficial than them. The wages of the designer will be a percentage of the profit, so we need not to worry about that.

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5.2. PROJECTED INCOME STATEMENT: (For the next three months)

Revenues
Sales

(Rs.)
3,900,000 15,00,000 85,000 3,00,000 66,000 4,35,000 3,00,000 2,686,000 1,214,000 (5,85,000)

Expenses:
Manufacturing Cost Refreshments Wages and salaries Carriage inwards Advertising and promotion Bills Gross Profit: Tax (15%)

Profit after Tax

Designers wages (20%)

6,29,000
(125,800)

NET PROFIT

503,200

Main Differences from the Income Statement of the First Quarter:

The expenses have reduced dramatically and we have been able to generate a sizeable profit. The expense on advertising has reduced as predicted above.

Our sales would also have increased owing to the fact that people are aware of our product.

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 We have been able to actually pay the designer this time. It gives us a prospective that we will be able to improve further in the coming days.

5.3. PROJECTED BALANCE SHEET

Assets

Amount (Rs.)
5,00,000 3,00,000 3,75,000 75,000 2,500,000 3,000,000 1,000,000 7,750,000

Liabilities+ Capital
Account Payable Salaries Payable Notes Payable Capital Net Profit

Amount (Rs.)
80,000 45,000 1,21,800 70,00,000 5,03,200

Cash in Hand Cash at Bank Account Receivable Notes Receivable Plant & Machinery Building Furniture & Fixture Total

Total

7,750,000

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References;
http://www.Toyonasic.com http://www.ocean.com http://www.wikipiedia.com/pakistan-mug-industry http://www.lumniarc.com http://www.englishmugs.com/advertising

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