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SUBMITTED TO:

Mr Adnan Shabir

SUBMITTED BY:

Muhammad Zeshan Kashif Maqbool

Syed Aman Ali

M. Waqas Amin

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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 AdnanShabbir, 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 Nadeem, a shoe marketer in Islamabad, 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

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4.3. Place

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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E xecutive Summary

Goal of ZAWK is to become the leading men foot wears company in thefuture, to gain the repute of a market leader and trend- setter in mensfashion, to provide footwear range that speaks of its innovation & high

quality at value price for men, to achieve expertise over the time in order to give novelty of patterns and designs to our shoes.

Company will provide products through extensive and exclusivechannels. Image in the market of the ZAWK would be maintained byquality products. Fashion adopted by ZAWK is fast, prompt andunmatchable in the market. Culture of the company is maintained on thehigh Islamic ethical values.

We will manage all costs in accordance withthe range of price that we plan to offer. Most of the stores sell shoes at

100% profit. We will discourage this trend and will focus on pricesaccording to the quality and nature (formal or casual) of the shoes.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 onthatwe will provide our customers best use of their money for that

particular product i-e shoes. We have priced our products so that themoney of the customer is valued as much as our own and they are

provided with quality products.

Our shoes are unique and designer madeso the people interested in our product will belong to upper middle classand 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

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future cost would be of Rs. /-7, 50,000. With this investment company

will be able to earn profit Rs. /-5, 03,200 annually.

2. SITUATION ANLYSIS:-In order to profitably satisfy customer needs, ZAWK must understand itsexternal and internal situation, including the customer, the marketenvironment, and the firm's own capabilities. Furthermore, it needs toforecast trends in the dynamic environment. As we talk about thedynamic environment, it gives us a clear picture of the environment.There are so many aspects in market which are changing so rapidly thatwe 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 exclusivechannels. Image in the market of the ZAWK would be maintained by quality

products. Technology adopted by ZAWK is fast, prompt and unmatchable in the

market.

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Culture of the company is maintained on the high Islamic ethical

values. Goals of ZAWK are to be the leading men foot wears in the future.

Collaborators:

Distributors Suppliers Alliances

Customers:

Market size of ZAWK is initially to cover the local market and then toenter 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 byour exclusive advertisement.

Retail channel as listed there should be at least three to four channels in the local market. Target market provides the clear pictureof 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 anydifficulty in purchasing the product.

Quantity purchased at a time should be in accordance with customersneed and demand.

Competitors:

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Direct competitors are those who are competing with us in the same

target market. Indirect competitors are with some brands like Service, Bata, Hush

Puppies etc. Products of ZAWK are very unique and versatile from existing

competitors in the market. Product Positioning is EASE AND COMFORT Strengths and weaknesses of competitors would be look in the way

which is beneficial for us and provide us with some new changes infeet fashion industry.

Climate:

The climate or macro-environmental factors are:

Political situation is very good in Pakistan. For the first time inPakistan the tenure of the government is completed.

Economic environment in Pakistan is very good. Economy is growingvery fast and tremendous growth is occurring. There is a greatEconomic environment in Pakistan for opening the new business.

Technological environment is also great in Pakistan. It should beupgraded as for as the industry is concern.

Law and order situation is also very good in Pakistan. Many nationaland international investors are investing in industries.

2.1 MARKET NEEDS:

As we talk about the foot wear, 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 shoes in themarket. The idea which we apply to cope up with the need is that weconvince our customers to fulfil their needs by using our product. Asthe analysis is conducted by us, basically each and every customer demands something new and unique in the market. The uniqueness

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and versatility is the ultimate demand of the customers in the market.

Every one thinks that the product which he or she buys would givehim or her different feelings from others. In market needs thedemographics, trends and growth is conducted by keeping a strong eyeon customers demand and needs.

ZAWK shoes are providing the market with a wide range of fashionable shoes with an unprecedented selection. Currently, menmust travel up to Seattle in order to come close to approximatingZAWK shoes selection. ZAWK shoes seeks to fulfill the following

benefits that are important to their custom

Selection: The widest selection of graceful gents foot wear, which provides customers with according to their will or desire.

Accessibility : The central location and wide range of business hoursdesigned 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 marketaccording to price competition, which is conducted very carefully beforesetting the price. The price which a customer pays for the product willdefinitely 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 makeour customers lives easier or save them money. Itpervades every part of the company.

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One another feature of ZAWK will that we will introduce our product in

the market with a new trend. We will be the trend setter in gents footwear. We will introduce the customers with so many options thatultimately the customers will be attract towards our brand. It was one of the best feature of ZAWK that customers should be invited to discussabout those particular designs which are in fashion. They have an opendiscussion and there opinion has very great value for us. In shortcustomers are given so importance that ZAWK and customers mutuallyset the new trends in the market.

2.2.2 MARKET DEMOGRAPICHS:

Demographic characteristics describe the population and its behaviour inthe market where the company offers its products. Target market givesthe clear picture about that particular area in which we emphasis more tosell 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 andversatile.

Fashion oriented:Fashion is being now the necessity of men also, as

it was early attributed to women only. Customers behaviour reflectsits 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, itis in the instinct of the customer that he has to feel that he utilizes hismoney properly. So durability is an important and influential issue.

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Grace: Customers behaviour also shows that the grace should beremain in the product as essential ingredient.

Simplicity:Every customer wants to look simple in his clothing and

foot wearing.

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 shoe in the market. We will provide shoe 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 andages in quality and quantity. There is a growing number of upper middleclass in all the cities of Pakistan, so if we cater the needs of upper middleclass 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 shoe on retailers shops and in the next step with theexpansion of our product company aims to provide its shoe on its onfranchises in major cities such as Islamabad, Lahore, Karachi, Faisalabad.

Introduction:The product that we plan to market is Designer Shoes for men . Theidea is to hire Pakistani designers who will design shoes according to thelatest trends and fashion in our country and to sale these shoes in adifferent and unique environment. The most important aspect of the

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whole venture would be the pricing. The shoes will be available in ranges

affordable by Middle and Upper Middle Class mostly.

Why Shoes?

When we were given this project the first thing that came to our mindswas Designer shoes, which are made in Pakistan. This is something thatmost of the males, especially teenager boys have been looking forward to,for a long time. If they were introduced in the market, we ourselveswould be the first to buy them. We know a lot of people who have thesame problem. There are no good shops in about many cities where you

can buy shoes worth their price.The shoes that are normally available are not of good quality or design.The only choice left for the buyers then is to buy imported shoes, whichare brought from Thailand, Malaysia or Singapore mostly. These shoesare sold at an abnormally high profit, almost 100% more than their cost

price. Price of the same pair of shoes varies from shop to shop.

Furthermore, the environment of the existing shops is very intimidating.There are shoeboxes flying all over the place. Most of the customersattention is focused on trying to avoid being hit by the box rather than on

buying the shoes.

2.3 COMPANY

Companys Name:ZAWK SHOES

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Companys Vision:

To become the leading footwear brand in Gent's fashion.

Vision is the future prospect of any thing. Ours product vision is seemsto be very clear and bright. ZAWK shoes provide the customer withoptimal choices of best foot wear ever made. Serving customers needwith the best is the motto of ours. ZAWK shoes would be the optimalchoice for a customer.It provides him the fantastic and memorablefeelings when he use to wear that product. Providing customers withcomfort and ease is the ultimate objective, mission, goal, aim of ZAWK shoes.

2.3.1 Mission:Our mission is

To gain the repute of a market leader and trend- setter in mensfashion.

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To provide footwear range that speaks of its innovation & high quality

at value price for men.

To achieve expertise over the time in order to give novelty of patternsand designs to our shoes.

To develop and design a range of trendy and stylish footwear toenhance the choices for men.

To make efforts to let people be aware of the importance of highquality of footwear, to popularize the "feet fashion" culture & also to

provide quality life and to contribute to the society.

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 men footwear.

We believe that a well-founded reputation for scrupulous dealing isitself a priceless asset. Thus, in pursuing the mission we shall at alltimes 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 Shoes for men. The name is

ZAWK SHOES

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Fee

t fashion

This is what we want to promote:Designs that you can imagine and many that are beyond your imagination.Feet Fashion is another catchy line, which symbolizes the revolution infootwear that ZAWK hopes to bring about with its exquisite shoes.

TYPES:

The footwear will be available in the following categories

Casual Formal Bridal and Party Wear Customized

Each category will contain shoes of two basic types:

Sandals (Flat/ Medium) Shoes (Flat/ Medium)

Size Chart

The footwear will be available in the following sizes

Shoe Sizes

English - 3 4 5 6 7 8 9

European 35 36 37 38 39 40 41 42ZAWK SHOES 5 6 7 8 9 10 11 12

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

The idea is to create luxurious shoes that are practical for all occasionswhile creating an exclusive Pretenses look. Another common problemthat customers face during purchasing is size of the shoe. We makesimilar design of shoe in a variety of sizes (numbers) that provides thecustomer with an appropriate selection.

Our idea is to make similar shoes in different sizes.

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Flat (max

)

Medium (1-1 1/2

)

A problem from the manufacturers point of view is the copying of stylesin cheap quality stuff, which is then sold at a very low price at stalls inLiberty. ZAWK plans to overcome this problem by ensuring copyrightsof the designs that our company will make. Furthermore

Quality and comfort level

Perfect balance

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 shoes.

TECHNICAL ASPECTS OF THE PRODUCT

Purchase of Raw Materials:- Raw materials required:

Leather

Thread

Suede

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Clothes of different kinds

Rubber for soles

How will we get hold of these materials?

We intend to offer our customers, prices that are affordable and accordingto the quality of the shoes. So we are planning to buy all the rawmaterials from wholesalers at a discounted price, so that we can keep thecost low and offer our clients quality shoes worthy of their money.

Making of the Shoes:

Making of the shoes requires professionals, we can give ads in thenewspaper and get the word out that we are looking for skilled men andare willing to pay adequately for their efforts and if their hard work paysoff there is also bonus. People doing similar jobs in this category have acommunity of their own and we wont have any difficulty hiring therequired 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 shoes at 100% profit. We willdiscourage this trend and will focus on prices according to the quality andnature (formal or casual) of the shoes.All this is discussed further in the section of pricing and consultant advice

with mathematical representation.

2.3.3. PRODUCT POSITIONING

EASE AND COMFORT

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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 theyare purchasing the right product at the right time, which ultimately provides them with comfort. Ease and Comfort is a short line and iteasily sets in the mind of the customer.Product positioning is a verycrucial 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 weaknesseswithin the company, and describes the opportunities and threats facingZAWK shoes.

STRENGHTS:

Extremely strong relationships with distributors. Excellent staff who are well trained and customer attentive. Theyalso 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 firsttime especially in gents foot wear.

WEAKNESSES:

The inability to provide instant gratification by having all sizes instock. 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 byhaving to travel to Seattle for nice shoes. 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 ascustomers oriented market.

THREATS:

The introduction of a competitor to the Tacoma 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 Bata, hush Puppies,Service etc.

2.4 COMPETETION

There are other shoe companies in themarket which have sufficient resources and they comprise a great portionof market. Following are the characteristics of other companies operatingin the shoe market.

Nike Reebok Adidas Bata Service China Shoes

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Comparative advantages to ZAWK Shoes:

ZAWK has a comparative advantage over these abroad ownedcompanies. It will provide quality shoes for the country at lower pricesand 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 localmade. The essential machinery would be imported from abroad. Highlytrained staff local staff should be recruited within the country. Local rawmaterials would be used in our products. Those which are of muchimportant in manufacturing would me imported from abroad. Our mainemphasize is the production through the productive assets of the countryand 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 placingand location as our target market is upper middle class and upper class.So we will advertise ads according to their preferences.

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Newspapers:

We will publish ads in the Fashion segment of Englishnewspapers like Dawn, The Nation, The News, and The Daily Times etc.We plan to open on 28 th December 2007. So in order to create sensationand excitement amongst people, we will start giving ads by the middle of

November.

Billboards: Billboards in Sadar, Blue Area, and Commercial will be ideal

for the advertisement of ZAWK.

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 formal shoes and on another location we

can go for the next design that is shown.

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In thisadvertisement wehave clearlyshown that we areunique in our wayof thinking andthat we have a lotof variety.This advertisementshould go up onsome bridge or Sadar.

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This advertisement should be put on a billboard somewhere inCommercial where there are more social events and people need moreformal shoes which also speak of class and 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 radiochannels like FM 99, FM 106.2, and FM 100 etc.

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

Magazines: The most popular magazines include Mag, Sunday

Magazines, and Economist. We continuously give attractive ads in themto advertise our product.

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http://www.ebhshop.com/productdetails.asp?pid=786&sid=2http://www.ebhshop.com/productdetails.asp?pid=591&sid=2http://www.ebhshop.com/productdetails.asp?pid=597&sid=2http://www.ebhshop.com/productdetails.asp?pid=592&sid=2http://www.ebhshop.com/productdetails.asp?pid=785&sid=2http://www.ebhshop.com/productdetails.asp?pid=598&sid=2

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4.0 MARKETING MIX:

PRODUCT PRICE PLACE PROMOTION

4.1 PRODUCT

Another new concept that ZAWK will be introducing is Customized

shoes. We will be making special shoes for customers who want to designtheir own shoes. This idea can be implemented in another way wherecustomers can explain to our designers what they want. The designerswill make sketches for them and the one that is approved by the customer will be forwarded for final making.

This way ZAWK will be presenting an ideal opportunity for customerswho have special requirements. The customers who have odd foot 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 toour outlet irrespective of the fact that he or she buys something or not, thetreatment that he or she gets from the sales personnel would make sure

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that the next time he or she wants to buy a pair of sandals, 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 thesize they want to buy is not available the customer can order it to be madein a weeks time.

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

OTHER IMPORTANT FEATURES:

ZAWK at first will fall under the category of shopping goods but withtime and effort we will develop our product to be in the class of specialty

goods.

When talking about the classification of the new product, ZAWK issignificantly 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 men of Pakistan have become very fashion conscious in the last 5-10 years. There is a hugemarket for all accessories but the prices charged are either too low or toohigh. There are very few firms that offer quality service, so there is ahuge market demand for excellence in the field of accessories especially

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in foot wear. Investors should feel very comfortable in putting the money

in this project as we have done the market research ad have an excellentand applicable plan in front of us.

Satisfaction of key financial criteria :

The most critical questionwhen starting any kind of merchandise is weather we will be able togenerate suitable revenue from it or not. This question can be answeredvery easily if we consider the profits generated by companies that at thistime are not offering any uniqueness and services that we will. We planto rule the market on the basis of individuality and quality service and wewill 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 theallocation of factors of production, labor, land and capital. As an allocator of resources, price determines what will be produced (supply) and whowill 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

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and brand image. Research has shown that basically there are four

distinct categories of shoppers1. 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)

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 that we will provide our customers best use of their money for that particular product i-e shoes. We have priced our products so that themoney 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 afirms 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 itswhat they think the product is worth.

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Competitive reactions: In order to be successful, we have to think about what customers perceive about the products of the competitivecompanieswhat in their opinion are the shortcomings of their productand then we have to work on our products to make sure that they donthave 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 bethe primary objective.

Other marketing mix elements: Marketing mix elements such asnature of the product, cost and promotion etc. play a very importantfactor in determination of prices.

Product: Pricing depends a lot on the kind of the product. As it is acomfort good that we are offering, so its price must be of the sort that iscomfortably afforded by our target market.

Promotion: Advertising plays a very important role in the pricingand selling of a company. We have to make the consumer sure that the

price they are paying for our shoe is the right one so, we have to relyheavily on our promotional scheme for bringing out the unique features inour shoes and to make sales. If promotion of our product is not good andthe 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 themarket 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. Beinga new product we have to catch our customers with fewer prices for better

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shoes. So we will cut down costs if necessary in order to meet

competition prices.

4.3. PLACING:

Target Market: Our shoes are unique and designer made so the people interested in our

product will belong to upper middle class and middle class . We willtarget these segments and will place our product according to their shopping place preferences. The possible localities to open the first shopare:

1. The Mall Sadar.2. Commercial.3. Blue Area.4. Abpara.

We have selected The Mall Sadar as our first preference and Commercialas the second one.

Reasons for selecting The Mall Sadar:

It attracts more of our target market. Most of the people living in twincities go to that market as a part of their routine and thus we will get moreexposure.

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 tosell more of our product.

There are more opportunities for us to decorate our shop. The system of security is much better in Sadar.

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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.

4.4. PROMOTION:

Promotion Objectives:

Awareness: At awareness stage the sellers task is to let the buyersknow that the product or brand exists. Since we are a totally new brand,our biggest objective is to create consciousness and make people realizethat we are in the market too. We are in the market to provide our customers the innovative and versatile foot wear ever made.

Knowledge: Knowledge goes beyond awareness to learn about a products features. Once we have created awareness that we are in themarket, we have to give our target market information about why we areunique and why they should come to us for purchasing shoes.

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 shoes; we care about our customers and providethem 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 shoes to other established

brands such as Service, Comfort, and Steps etc. We will achieve thistarget through hard work and dedication. We will focus on our strengths

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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. ZAWK will achieve this objective by providing quality merchandise to its customers and bytreating them cordially and giving each client special attention according to their needs and wants. As mentioned above, the atmosphere of the shop will be verydifferent from that of an ordinary shoe Shop and refreshments will also be offered. Sothe 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. Thatswhy we have preferred the location of The Mall Sadar where peoplecome 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 shoes.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 andstudents.

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4.6. SALES PLAN

Our main pricing objective will be sales oriented i-e main pricing goalswould 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 toconcentrate on getting customers and setting up a market share and allthis 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 ondeveloping a healthy market share and maintaining it. Many companies

go in loss within their 2nd year of opening because they are unable tomaintain their market share. We will avoid this by innovation andschemes (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 bedifferent for different shoes. It will also benefit the customer, as it willsimplify the buying decision.

5.0. FINANCIAL ASPECTS

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5.1. PROJECTED INCOMESTATEMENT :

(For the first three months)

Why this Income Statement is a ProfitableOne?

In this income statement there is a huge expense of shop fittings whichonce installed are permanent. It is a kind of investment because if at somefuture time we have to vacate the shop the present price of the fittingswill be included in the offer of purchase or rent.

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Revenues (Rs.)Sales 10,000,00Expenses:Manufacturing Cost 3,000,00

Shop fittings 145,000Refreshments 70,000Employee training 40,000Advertising and promotion 175,000Bills 30,000

760,000Gross Profit: 240,000Tax (15%) (150,000)

NET PROFIT (90,000)

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A huge chunk of our funds has gone into advertising. At the initial stagesadvertising is required to create awareness and to make people intrigued.Once we have established our clientele and have gained our market sharethe expense on the promotion will decrease and we will be able togenerate more profit.

There is also the expense of employee training which is also once, so theexpense 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 shopsthat have been operating for 2-3 years are suffering much worse lossesthan 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 neednot to worry about that.

5.2. PROJECTED INCOMESTATEMENT:

(For the next three months)

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Main Differences from the Income Statement of the First Quarter:

The expenses have reduced dramatically and we have been able togenerate 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.

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 thecoming days.

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Revenues (Rs.)Sales 3,900,000Expenses:Manufacturing Cost 15,00,000Refreshments 85,000Wages and salaries 3,00,000Carriage inwards 66,000Advertising and promotion 4,35,000Bills 3,00,000

2,686,000Gross Profit: 1,214,000Tax (15%) (5,85,000)

Profit after Tax6,29,000

Designers wages (20%) (125,800)NET PROFIT 503,200

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5.3. PROJECTED BALANCE SHEET

Assets Amount(Rs.)

Liabilities+Capital

Amount(Rs.)

Cash in Hand 5,00,000 Account Payable 80,000Cash at Bank 3,00,000 Salaries Payable 45,000AccountReceivable

3,75,000 Notes Payable 1,21,800

NotesReceivable

75,000 Capital 70,00,000

Plant &Machinery

2,500,000 Net Profit 5,03,200

Building 3,000,000Furniture &Fixture

1,000,000

Total 7,750,000 Total 7,750,000

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References;http://www.batashoes.comhttp://www.serviceshoes.comhttp://www.wikipiedia.com/pakistan-shoe-industryhttp://www.netmba.comhttp://www.englishshoes.com/advertisinghttp://www .http://www .http://www .

http://www.batashoes.com/http://www.serviceshoes.com/http://www.wikipiedia.com/pakistan-shoe-industryhttp://www.netmba.com/http://www.englishshoes.com/advertisinghttp://www/http://www/http://www/http://www.batashoes.com/http://www.serviceshoes.com/http://www.wikipiedia.com/pakistan-shoe-industryhttp://www.netmba.com/http://www.englishshoes.com/advertisinghttp://www/http://www/http://www/