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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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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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Business plan

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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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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