brio energy chocolate bar
TRANSCRIPT
MARKETING MANAGEMENT
Term Project
Sir Faisal K. QureshiWednesday, 3:00pm – 6:00pm
Submitted by:M. Zubair (7971)Nida Zafar (7980)M. Umer (8028)M. Arsalan (7989)Mehla (8117)Ahsan Bham (8106)
Wednesday, December 16, 2009Wednesday, December 16, 2009
ii
Letter of AuthorizationWednesday, December 16, 2009
Dear Reader:
As authorized by our teacher Sir Faisal K. Qureshi, we decided to
introduce a new product named BRIO Energy Chocolate Bar.
This report contains complete information about the product and the
company’s strategy to achieve success. Also included in this report is a
detailed analysis of the company’s position in the market and the products
it will be manufacturing. All information is presented in a very simple
manner, for the interest of a common reader.
This report consists of genuine and complete source of information on
both the companies. You may contact us for further queries or comment us
on our work.
Sincerely,
M. Zubair (7971)Nida Zafar (7980)M. Umer (8028)M. Arsalan (7989)Mehla (8117)Ahsan Bham (8106)
iii
Letter Of TransmittalWednesday, December 16, 2009
Sir Faisal K. Qureshi
Faculty Member, Marketing Management
Iqra University, Defence View
Karachi
Dear Mr. Qureshi:
We are submitting here our term report on the launching of a new product
named BRIO Energy Chocolate Bar. Initial pages of this report also
contain the brief information about company’s background and the product
it is offering.
All the information provided in the report is comprehensively discussed
with a satisfactory background of valid facts and figures.
If there are any questions or queries you have about the material presented
in this report, we will be extremely glad to appear before you.
Sincerely,
M. Zubair (7971)Nida Zafar (7980)M. Umer (8028)M. Arsalan (7989)Mehla (8117)Ahsan Bham (8106)
iv
AcknowledgementDear Reader:
With the blessings of ALLAH the almighty, the report enclosed has
reached its stage of final completion. This report is a result of exhaustive
and much enthusiastic work. We extend our heartiest thanks to Sir Faisal
K. Qureshi, for conducting this course and making it interesting and
knowledgeable, without her efforts and co-operation the report would not
have been possible. We also thank for her confidence and trust she had in
us, importance of which can in no way be under estimated.
We are equally grateful to Iqra University for providing us the
opportunities to pursue our endeavor. We also appreciate the students of
Iqra University, who assisted us in providing us all the necessary
information and feedback that we required for completing this task.
We hope readers of this report can complement the depth of the study and
efforts put into it .
Thanking You
Sincerely,
M. Zubair (7971)Nida Zafar (7980)M. Umer (8028)M. Arsalan (7989)Mehla (8117)Ahsan Bham (8106)
v
Table of Contents1. Introduction......................................................................................1
1.1. Brand Name................................................................................3
1.2. Logo............................................................................................3
2. Mission Statement............................................................................4
2.1. Vision..........................................................................................4
3. SWOT Analysis..................................................................................6
3.1. Strengths....................................................................................6
3.2. Weaknesses................................................................................7
3.3. Opportunities..............................................................................8
3.4. Threats........................................................................................8
4. Ansoff’s Product-Market Expansion Grid........................................10
5. Competitors Analysis......................................................................11
5.1. Direct Competitors....................................................................11
5.2. Indirect Competitors.................................................................11
5.3. Market Share of Competitors....................................................12
5.4. Competitive Advantage.............................................................13
5.5. Perceptual Map.........................................................................14
6. Target Market.................................................................................15
6.1. Age:...........................................................................................15
6.2. Use:...........................................................................................15
6.3. Usage pattern:..........................................................................15
6.4. Geographic Location:................................................................15
vi
7. Marketing Mix.................................................................................16
7.1. Product:.....................................................................................16
7.2. Place (Distribution):..................................................................16
7.3. Price:.........................................................................................17
7.4. Promotion:.................................................................................18
7.5. Promotional Mix:.......................................................................19
8. Promotional Budget........................................................................21
8.1. Media allocation:.......................................................................21
8.2. Media Schedule Charts.............................................................22
9. Financial Projections.......................................................................25
9.1. Estimated Demand...................................................................25
9.2. Company Sales Forecast...........................................................25
10. Conclusion....................................................................................27
Table of Figures
Figure 1: Ansoff's Product-Market Expansion Grid................................10
Figure 2: Market share of Competitors.................................................12
Figure 3: Media allocation based on sales volume...............................21
Figure 4: TV Channels on which Ads will be televised..........................22
Figure 5: Radio Channels on which Ads will be aired............................23
Figure 6: Advertisement hoardings in different areas..........................23
vii
Figure 7: Magazines and Newspapers through which promotion will be
done......................................................................................................24
Executive SummaryOur product is classified as “new-to-the-world” product as its
competitors may include both the company’s manufacturing chocolate
bars and also that manufacturing energy-providing edibles but our
product is only one of its kinds to be both a confectionary item and an
energy-booster.
Our target market consists of youth and professional adults because
our product is what helps them to take back their energy-zapped
afternoons after their school or college and offices. Initially, we have
allocated a large promotional budget understanding the need to make
the target consumers aware of the brand and product itself. Keeping in
mind that our target market belongs to Pakistan, we have designed our
advertising campaign to convey our concept efficiently as well as
effectively.
We do not expect to make huge profits in the first year but we are sure
that if we successfully convey our concept and make our product
stable in the market, enormous profits follow in the long-run.
P a g e | 1
1. Introduction
“BRIO” is a new confectionery product from its company that is ideally
located in SITE Karachi, the largest industrial estate of Pakistan. BRIO
Company is a small-scale manufacturer catering to high-priced
segment. It is established to manufacture high quality confectionery
products and establish a strong brand name in the chocolate industry
in Pakistan.
We have the most sophisticated process technology to produce one of
the best quality chocolate in the market today. We realize the
importance of efficiency and creativity to achieve growth in a
competitive environment and keeping this in mind we have introduced
“BRIO” – an energy chocolate bar that is a major source of revitalizing
energy among our target consumers. The slogan is ‘GET MORE GO’ due
to its high energy content. With BRIO you can give your energy a
crunchy edge and enjoy every bite full of quality chocolate.
Although the market for such products is small, but by developing a
clear concept of an interesting product like BRIO it is predicted that
there is a fair chance for profits to be earned.
Such products are usually not successful in our market because firstly,
the needs of the customers are not identified or catered in most
efficient way. The consumers need to be made aware of the benefits
and use of energy revitalizing products such as “Brio” properly so that
the concept is not misstated. Secondly, they are usually not directed to
the right target market segment. So through our marketing efforts and
P a g e | 2
advertising programs/strategies we aim to achieve these objectives
with BRIO’S launch in the market.
P a g e | 3
We have decided to allocate a total budget of Rs. 15M, which is our
own personal investments and borrowing a loan of Rs. 7.75M. Also, our
company is a private limited company which includes six entrepreneurs
whose inputs are as follows:
Mr. Muhammad Umer: Rs. 3M
Ms. Nida Zafar: Rs. 3M
Mr. Muhammad Zubair: Rs. 2.5M
Mr. Muhammad Arsalan Sheikh: Rs. 2.5M
Ms. Mehlan Rs. 2M
Mr. Ahsan Bham: Rs. 2M
Capital investment of Land & Building, worth Rs. 12.5M, for setting up
the plant was already bought by one of the entrepreneurs so no rent
has to be paid. Machinery costs Rs. 6M, promotions were allocated a
budget of Rs. 2M ATL and BTL activities. Research and development
expense was Rs. 0.5M. A stand-by generator costing Rs. 1.5M has also
been installed keeping in view the current electricity crisis. Rest is
miscellaneous including labor, management, transport and distribution.
Along with adequate amount left aside for working capital and future
investments. Further details have been discussed in the concluding
part of the report alongside the demand and sales forecast for the next
three years with a profitability analysis.
The company also aims to establish a diversified portfolio of products
in future if ‘BRIO’ (energy) chocolate bar is a success.
P a g e | 4
1.1. Brand Name
We are a newly established company launching our product that is a
chocolate bar named as “BRIO”. The Italian word Brio means “Energy”.
We have selected our brand name “Brio” as our product is not only an
ordinary chocolate bar but an “energy-booster chocolate bar”. Our new
energy-booster chocolate bar satisfies two needs states, that is,
Hunger and Energy. This quality is what makes our product different
from all other available alternatives.
1.2. Logo
P a g e | 5
2. Mission Statement
Our mission statement is dedicated to provide the best chocolate
(energy) bar to its consumers that would keep them filled with energy
throughout the day, giving them a unique experience of our quality
service provided to them by anticipating and meeting their needs.
“BRIO” aims to bring a change in consumer taste and lifestyle
preferences.
It is our intension, as a business to provide quality confectionery that
enhances customer loyalty and our brand image.
2.1. Vision
Within a year BRIO wants to attain a significant market share and
profits by providing its customers one of the best energy chocolate
bars in Pakistan through its marketing efforts and creative advertising
programs.
We plan to follow a group of policies that are designed to maintain a
good reputation/brand image in the market and to ensure that the
company operates in a way that meets or exceeds the requirements of
our customers, all marketing operations and has an overall beneficial
impact on the environment.
Our mission statement emphasizes that with the launch of BRIO we
should fulfill few objectives to achieve success quickly:
P a g e | 6
Creating more awareness among customers about
food or drinks that revitalizes energy in their
bodies
Explain clearly the uses/ benefits of BRIO
Ensure availability of BRIO in all its target
segments
Maintain ethical values and avoiding ethical
dilemmas
Continuing to provide good quality and Integrity in
order to encourage repurchases which would lead
to maintaining brand equity in future.
Fulfill social responsibility with honesty
Our company policy is inclined to achieve all these objectives and work
in accordance with our mission statement.
P a g e | 7
3. SWOT Analysis
3.1. Strengths
3.1.1. The unique selling proposition:
Ingredients of BRIO such as milk chocolate, vitaminB1, peanuts and
almonds deliciously blend in together are to give a mouthwatering
affect on the consumers in addition to the fact that it’s a healthy snack
which gives an energy boost. Hence the products itself is distinct and
will tempt the consumers to buy.
3.1.2. The organized distribution network:
BRIO’s another strength is its organized distribution network. We
primarily distribute our product through wholesalers and retailers. We
also distribute our product to canteens and cafeterias of almost all
schools, colleges and universities that fall in our geographic location.
Our qualified sales person makes it possible for BRIO to be available at
the right place and in the right time. Our distribution network makes
sure that there is no reported product shortage and there is adequate
supply when demanded.
3.1.3. The trained and skillful personnel:
Our company has been successful in recruiting qualified and
experienced personnel who eventually serves as a great strength. The
staff being able to coordinate well with each other, meeting deadlines
P a g e | 8
and accomplish tasks efficiently and effectively adds up o the
company’s overall success.
3.1.4. Adequate Capital:
Although BRIO is a newly established company but it does have enough
capital investment and cash flow for the budgets that will enable us to
achieve success in every possible way.
3.2. Weaknesses
3.2.1. Restricted target market:
Our target market is SEC A and SEC B which will not allow us to cater to
SEC C which has a high proportion of teenagers and children
throughout the country.
3.2.2. Pricing strategy:
Our company uses a penetration pricing strategy that is, setting lower
prices to increase demand for the product. As we have priced a
standard bar of BRIO of Rs.45 and a small-size bar for Rs. 25 and
strong energy providing ingredients are costly thus it may not enable
us to reap high profits in the beginning unless its bulk buying.
3.2.3. Geographically limited market:
Our company caters t the limited market of Pakistan. Products such as
chocolates and energy boosters are seen to be more successful in the
international markets. Pakistan being a developing country still
P a g e | 9
comparatively has a smaller market. Also people, from our target
segment, hesitate in accepting and consuming any such product
especially if it is local. They doubt the quality because of the home-
country image they have.
3.3. Opportunities
3.3.1. No direct competition:
Our biggest opportunity is that none of the competitors has yet
positioned a product similar to BRIO that is an energy-boosting
chocolate, so far. It is going to be a new concept with a “Get More GO”
theme and hence opening new doors to success.
3.3.2. Attracting various total consumers consumer base:
Though our target market is youth and professional adults, we assume
and foresee many middle aged working people eventually buying BRIO
as their complementing mean for energy too because people who work
are usually out of time to have their proper meals and needs energy to
complete their tasks.
3.4. Threats
3.4.1. Hurdles in gaining market share:
With present well established competitors such as Cadbury and
Candyland in the confectionery industry it is not that easy to not only
penetrate the market but also to attract the consumers and hold the
P a g e | 10
consumer attention in the longer run. Tactful promoting idea will have
to be applied all along our marketing campaign which could be costly.
3.4.2. Political situation:
Any sort of law and order situation in the country and political
instability like the recent threats and associated strikes related to them
especially in Karachi as our Manufacturing factory is situated here,
could halt the production and the functioning of the business.
3.4.3. Substitutes:
Emergence of substitutes could turn the tables around for us. In this
rapid pace of development any other competitor in the Industry such
as Candyland could immediately come up with an identical product
such as BRIO. Also, present substitutes that are the energy-boosting
products (such as: various energy drinks) available have already
gained consumers trust, the possibility of substitution is relatively
higher in the long run.
P a g e | 11
4. Ansoff’s Product-Market Expansion Grid
Figure 1: Ansoff's Product-Market Expansion Grid
Marketing strategy we are going to use in relation to the Ansoff’s grid is
the diversification strategy.
The market is new for the company and no such product exists in the
market of Pakistan. So for innovation of a new product in the new
market the whole process is to be followed from the idea generation
and screening, testing and commercialization. Depending on
exhaustive promotional strategies with a greater focus on attracting
consumer, company will need to create achievable objectives which
will strengthen consumer base and eventually a stable market for
future products of the company as well.
Present Products
New Products
Present Markets
Market Penetration
Product Development
New Markets
Market Development Diversification
P a g e | 12
5. Competitors Analysis
The market for confectionery in Pakistan increased in 2000-2005, at an
average annual rate of 8.5%. The leading company in the market in
2005 was Kidco manufacturers. The second-largest player was
Candyland with Cadbury Schweppes in the third place.
Then, market for Confectionery in Pakistan increased in 2002-2007, at
an average growing annual rate of 7.3%. The leading company in the
market, in 2007, was Candyland which is still continuing to progress at
a rapid rate. The second-largest player was Kidco Manufacturers with
Cadbury Schweppes plc in third place.
Currently in the unique market where BRIO is being placed, there is no
direct competition present in the local industry. However, imported
products exist in the market fortunately such stocks are kept on
demand basis and selective premium stores charging a premium price.
Preliminarily our analysis considers Candyland’s ‘Sonnet’ chocolate bar
as our main competitor. Company aims to capture its market
completely because as sonnet was launched, the bar did not properly
cater to the consumers needs by explaining the uses and benefits of an
energy chocolate bar clearly nor were they able to capture a large
market.
5.1. Direct Competitors
Cadbury Chocolate Bars
P a g e | 13
Candyland’s Sonnet Bar
5.2. Indirect Competitors
Redbull energy drink
Rooh afza
Energile
5.3. Market Share of Competitors
Others18%
Rooh Afza22%
Cadbury32%
Candyland28%
Market Share
Figure 2: Market share of Competitors
From the figure illustrated above we can infer that the highest market
share is of Cadbury mainly, due to their diversified portfolio. Candyland
has the second largest market share, although it also has a wide
variety of confectionery items but they are not so compatible with
Cadbury when it comes to quality and popularity. Rooh Afza on the
other hand has the third largest market share and this was mainly
P a g e | 14
achieved from the popular dairy milk chocolate that was sold out to
even the lower class and lower-middle class consumer segment at a
comparatively lower price prevailing in the industry, making it more
attractive product. Otherwise it is a foreign merger and is not exactly a
very direct competition for BRIO. Rest of the confectionery market
comprises of competitors that are international and other local
Pakistani firms that are still striving hard to achieve a major
competitive share in the market.
P a g e | 15
5.4. Competitive Advantage
The Competitive advantage of BRIO is its Unique Selling Preposition
(USP) as an “energy booster chocolate bar.” Additionally, our product
can have a highlighting attribute of serving as a snack bar. Pakistan's
market has so far not come across many unique confectionary items.
Our main direct competitor is Candyland's Sonnet Bar which failed to
convince the consumers and could not achieve success due to lack of
persuasive skills of the marketing team. The TVC of Sonnet chocolate
bar even though showed a cricket match scenario in which a player
after having Sonnet chocolate bar becomes totally energetic but the
message was vague because the product itself was not positioned as
an energy provider.
We have positioned BRIO as the ultimate energy providing Chocolate
Bar. Our marketing campaign is entirely based on this theme from
Radio, TVC, Print ad etc. Our below the line marketing also completely
promotes BRIO as a chocolate energy bar. Our marketing campaign is
based on the concept of 'Super Heroes'. We have portrayed in the
promotions that a normal individual after eating the BRIO Bar turns into
a Super Hero, irrespective of the gender, color etc. As our target
market is mainly kids and teenagers hence the idea is likely to be well
accepted and successful.
As discussed earlier, our major competitors are only the international
products which are not commonly available in the local market.
Therefore, our target market has been observed to consume
SONNET
BRIO
ROHAFZA
ENERGILE
RED BULL
Energy Provider
ChocolateDrink
P a g e | 16
international chocolate bars more than the local ones. In that case
selected population, Snickers is considered to be taken by many young
individuals for instant energy; however, Snickers is not positioned as an
energy bar. Making our product as a high quality energy snack we
intend to capture greater market share where we might be able to
attract greater volume of consumer who will prefer buying our product.
Thus we are to market BRIO to meet the local as well as international
competition, thus a considerable amount was set aside for Marketing
budgets initially. In addition we have portrayed and promoted Brio
keeping in mind both direct and indirect competitors. Thus our TVC and
print ad even though shows a chocolate bar but give an effect of heroic
energy seen by the indirect competitors such as Red Bull earlier
before. Therefore our competitive advantage lies of our unique skill of
covering all the aspects of competition but urging the consumer to buy
the product.
5.5. Perceptual Map
Dairy Milk
P a g e | 17
6. Target Market
6.1. Age:
Teenagers (College Students) 13 – to – 19
Adult (University Students) 20 – to – 26
Professionals & Sportsmen 27 – to – 45
6.2. Use:
BRIO is used as a snack. It is not in any case a meal replacement. To
meet consumer needs and help millions of Pakistanis take back their
energy-zapped afternoons, BRIO is proclaiming the post-lunch, pre-
dinner hour between 2:00pm and 3:00pm which is the ‘Re-Power Hour’.
6.3. Usage pattern:
Our target consumers use it to boost their energy level and also to
dilute the hunger between their meal intervals. It is primarily used as a
snack bar chocolate.
6.4. Geographic Location:
BRIO, initially plans to cater the three main cities of Pakistan:
City Places
KarachiDefence Housing Authority, Clifton, Gulshan-e-Iqbal (All private institution, i.e. School, Colleges, Universities)
LahoreDefence Housing Authority, Model Town, Gulberg, (All private institution, i.e. School, Colleges, Universities)
P a g e | 18
IslamabadDefence Housing Authority, Sector F-6, 7 ,8 ,10, 11, Korangi Town, Wapda Town (All private institution, i.e. School, Colleges, Universities)
7. Marketing Mix
7.1. Product:
Our product is a chocolate bar that not only provides taste but also
boosts up energy level. New BRIO Energy-booster Bar satisfies Two
Need States, Hunger and Energy.
7.1.1. Product Ingredients:
Milk Chocolate (20% - sugar, cocoa butter, full milk powder, cocoa,
emulsifier: lecithin), peanuts, sugar, salt, guarana, dextrose, glucose
syrup, invert sugar syrup, caramel (4.3 % - sugar, humectants:
glycerol, dietary fiber).
7.1.2. Benefits Ingredients:
Ingredients used in the product are all imported and have several
benefits. The first benefit ingredient is “Peanuts”. Peanuts are high in
fiber and provide energy according to a scientific research. It is packed
full of roasted peanuts caramel and milk chocolate. Secondly, B-
vitamins added to the great tasting nougat provides consumers lasting
energy and hunger satisfaction. Thirdly, herbal plant powder known as
“Guarana” is included in the ingredient which has no side effects and is
P a g e | 19
an energy booster. The plant origins from Portuguese, made popular by
Brazilians.
7.2. Place (Distribution):
Initially, we are catering to two cities of Pakistan namely:
R Karachi
R Lahore
R Islamabad
Because these cities happen to have large portion of SEC A and SEC B
as compared to the other cities and also the population is more
educated and aware to adopt or accept such product easily.
7.2.1. Distribution Route:
a) Manufacturer-Wholesaler-Retailer-Consumer:We manufacture the product and sell it in bulks to the wholesalers that
in turn re-sell it to the retailers. Retailers then sell the product in
desired quantities (bundle or individual pieces) to the final buyers.
b) Manufacturer-Retailer-ConsumerWe also sell the manufactured product directly to the retailers who re-
sell it to the final buyers.
c) Manufacturer-ConsumerThe ways in which we directly distribute the product to the final buyers
are through campaigns and stalls at universities, colleges shopping
malls like Liberty Mall and Park Towers along with stadiums and parks.
P a g e | 20
7.3. Price:
7.3.1. Competitors’ products pricelist:
a) Direct competitors:Half-Size (Rs.) Full-Size (Rs.)
Candyland’s Sonnet Bar 5 10
Candyland’s Now 15
Mitchells Jubilee 5 10
Cadbury Chocolate Bar 25
b) Indirect Competitors:Standard (Rs.)
Red bull (Can) 100
Roof Afza (Bottle) 65
Energile (Packet) 75
P a g e | 21
7.3.2. Cost Distribution:
a) Full Size Bar:(Price Rs. 45)
(Rs.)
Raw Material 28
Labor 4
Profit Margin 5.2
Retail Price + Sales Tax (21%) (37.2 + 7.8) = 45
b) Half Size Bar:(Price Rs. 25)
(Rs.)
Raw Material 16
Labor 2
Profit Margin 2.7
Retail Price + Sales Tax (21%) (20.7 + 2.6) = 25
7.4. Promotion:
7.4.1. Short-term Promotional Objectives:
Our first short term promotional objective is to create Brand Awareness
among our target market for that will make it easier for them to accept
and actually buy our product and gain market share. If people are
aware of your brand, it makes you stable in the market too.
Secondly, attracting a large consumer base is another short term goal
to achieve. The more the consumer knows about your product the
more is the urge to try and then eventually buy. As the demand will
increase, the market share or market for the product will increase.
P a g e | 22
Lastly, to attain the Consumer’s Attention. In the cluster of products
available, promotions are essential to attract consumer’s attention and
differentiate your product from other available substitutes.
7.4.2. Long term Promotional Objectives:
The main long-term objective of any promotional activity is to Increase
Sales of the product. In the same way, our promotional activities are
guided to increase sales of our product.
Promotions are designed in ways to encourage sales that ultimately
add up to Profit Maximization. It is the goal of any company to achieve
and so is ours.
After successfully attracting it is of utmost importance to hold the
consumer’s attention. Our promotional activities make sure that our
target consumer remembers our product and can recall it easily when
making a buying decision.
As consumers remember and recall your product, your Brand Equity
builds up. We object to attain Brand Equity to enhance our customer
loyalty which in future will help us to charge a higher-price for our
product and not just gain but also retain our market share in case of
fierce competition.
As stated above, Increase in Market Share will help us to stand severe
market competition & also to eventually become the market leaders.
7.5. Promotional Mix:
We adopted the following promotional mix:
P a g e | 23
7.5.1. Below-the-line Activities:
We have had our campaigns going on in different famous market
places where we perceived to have found and directly interacted with
our target consumers, that is, kids and teenagers from SEC A and SEC
B. We had or stalls set up at The Forum and Park Towers where we
made our target consumer taste the product and give their feedback
both on the quality and the concept.
Secondly, the campaigns that we carried out in various schools and
colleges included activities among kids and teenagers requiring energy
(such as races etc.) and then rewarding them with BRIO merchandise.
Both of the activities based on our overall marketing theme and our
product’s concept.
7.5.2. Above-the-line Activities:
We paid a considerable amount of attention towards designing our
above-the-line activities. These activities include an introductory promo
creating an appeal among the viewers and listeners. These types of
activities will lure the consumer in bonding with the product.
We used TVCs, print media (Newspaper, Posters etc.) and radio
advertisements. These medium of communication with the customer
will guarantee a higher demand of the product and will also create
awareness among them as well. It will also be helpful to anticipate
what is being expected and what necessary steps are needed to be
taken for a more favorable outcome.
P a g e | 24
Celebrities’ representation is also being planned to give the product a
better image. National heroes such as Cricket players are expected to
be a part of such a campaign.
P a g e | 25
8. Promotional Budget
8.1. Media allocation:
Figure 3: Media allocation based on sales volume
8.2. Media Schedule Charts
8.2.1. Media selection: Television
MTV14%
GEO12%
HBO17%
Wikkid5%
Aag21%
Geo Super19%
the Musik12%
Figure 4: TV Channels on which Ads will be televised
We have selected the channels such as MTV, THE MUSIK, Aag, HBO,
Geo Super, etc. because these channels are famous among our Youth
(teenagers) which is also our target market. WIKKID, Aag, and The
MUSIK serves our large age-bracket, that is, teenagers from 12 yrs –
almost 23 yrs. Our target audience from 24 yrs – 35 yrs watches and
P a g e | 26
like our rest of the selected channels, that is, Geo, Geo Super, and
HBO.
8.2.2. Media selection: Radio
FM9614%
FM8951%
FM9135%
Figure 5: Radio Channels on which Ads will be aired
We have selected radio stations such as FM91, FM89 and FM96 which
are youth based stations. These channels represent the generation X,
which mostly consists our target market. RJ’s also have a great fan
following; therefore, listeners are also influenced with them.
P a g e | 27
8.2.3. Media selection: Billboards
Shahra-e-Faisal46%
Clifton54%
Gul-shan-e-
Iqbal15%
Others7%
Figure 6: Advertisement hoardings in different areas
8.2.4. Media selection: Print
YOUNG NATION3%
DAWN97%
Figure 7: Magazines and Newspapers through which promotion will be done
The YOUNG NATION is a magazine for teenagers it’s a weekly
magazine our advertisement is more likely to reach our target
audience via this magazine. We are also advertising in DAWN as it has
P a g e | 28
a higher circulation rate as compared to other English language
newspapers.
P a g e | 29
9. Financial Projections
Based on the market research carried out by the company, suitable
estimation of demand and necessary financial projections has been
done. Necessary data is provided in the annexure to support this
information. Financial evaluation, based on projected sales volume and
necessary cost taken into account, shows that the project is a
profitable venture.
Working Capital of Rs. 2.75M has been employed with a cash balance
of Rs. 0.28M and a 12% growth rate of increase in yearly projected
revenues. The company comes in a tax bracket of 35%. The analysis is
based on a 3-years venture, the scenario represents that the project
will be liquidated after its tenure and all assets will be disposed.
After 3-years, if the project seems feasible to continue, owners of the
company will have to make decision of restructuring. It might even
include resolutions related to creating a portfolio and public ownership
as well.
9.1. Estimated Demand
The demand of the product won’t be completely reflected in the
company’s sales forecast in the initial years. As there will be an
initiation in the production process, some discrepancies are expected
therefore demand might not be efficiently met due to several reasons
which will also be tried to overcome. As the production level will rise in
P a g e | 30
the coming years of operations, demands will also rise gradually if
everything goes as per planned.
9.2. Company Sales Forecast
In the initial year of business the annual sales revenue forecast is
expected to be .64M units, with a Price per unit of Rs. 30, it aggregates
a Net Revenue of Rs. 19.2M. With an expected sales growth of 16%
annually the sales volume in units will be raised up to a million units in
the end of third-year. These estimates are taken based on the research
that has been carried out by the sales team. Keeping in mind the
potential consumer base for the product and the frequency of use
these figures have been derived.
Cash Flows statement based on the company’s sales forecast has been
provided in the annexure with a detailed chronological pattern. Profit
earned through the annual sales recorded, will be allocated to pay off
debt and allocate the increase in the working capital based on the
increase in annual sales forecast.
P a g e | 31
10. Conclusion
For generating this report, our team efficiently utilized as a guideline,
the much informative concept and skills of the Marketing Management
course in order to achieve the goal of the task assigned to us. This
incorporated coming together as a group and firstly deciding on what
type of business venture should be undertaken, and then deciding on
the type of ownership for it. A thorough market need analysis was then
done so as to study the different customer behaviors and their
preferences regarding the proposed service which would be offered to
a certain market segment. Competitors too, were scrutinized carefully
and a location to launch the product at was selected, based on both
qualitative and quantitative determinants. Then, responsibilities within
the organizational hierarchy were decided upon and it was seen to that
the required inventory and financial resources are properly listed so as
to prevent any miscommunication with the respective suppliers. Also,
an efficient pricing strategy assisted in calculating and organizing the
financial requirements of the business.
We believe that within a short time span, ‘BRIO chocolate energy bar’,
although initially a small-sized enterprise is sure to reap in delightful
profits. Once the product attains its desired position in the market, we
plan to expand our portfolio both geographically as well as into new
categories of product such as energy drinks, energy biscuits as well as
energy products for old age. And by the time competitors do think of
applying this idea, we believe that we would have captured a loyal
P a g e | 32
target market, by providing highest of quality and results, finally
actually launching the idea into the market and opening up ways for its
bright future.
P a g e | 33
Annexure