flavored bread report
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Topics Pg. # Introduction 1 Explanation of Innovation 2 Need gap analysis 2 Fulfilling the Need 3 Product Qualities (Differentiation) 3 Market Situation – Expected Market Size and Potential 4 Mission Statement 5 Vision 5 Goal 5 Market Trend 5 Competitor analysis 6 Indirect competitor 6 Substitute Competitors 6 Placement Strategy: 7 Brand Name 7 Logo 7 Trademark 8 FAB analysis: 9 Quality function deployment quality statement: 10 Market Segmentation: 11 Artesian advertising strategy 15 Understanding the Psycho-Dynamics of the market: 16 Advertising objective 17 Campaign theme 17 Reach 18 Frequency 18 Media Vehicl 19 Proper Budget Allocation Advertising 19 Slogan
21 USP 21 Push strategy 21 Promotional Materials 21 Price 22 Marketing Skimming: 22 Key People with Specific Skills 24 Physical evidence 24 Land and Building 25 Market entry strategy: 25 Quantitative SWOT matrix analysis: 27 Matching the SWOT matrix: 28 Financial Analysis 30 Ratios for march: 34 Conclusion
Introduction
Artesian Bread is a name that has come to signify quality and freshness in bread products. The
enterprise, Artesian Bread will operate six plants throughout Pakistan. Initially we are going to
launch it in Lahore having Factory in Muridkey. The Bread distribution network comprises rent
15 vehicles that deliver Artesian to more than 200 retail outlets daily, making it one of the largest
distribution networks for any product in the country customers are located in major metropolitan
areas, secondary metropolitan areas and rural areas. The fleet will run approximately 500KM
each day to deliver fresh bread. Peshawar. Multan Karachi Islamabad Faisalabad will be our
future destinations to launch our product there.
Artesian Bread's management team recognized early on that to be a contender in the baking
industry the company would need to comply with international processing standards. Company
is about to developed a relationship with Campden & Chorlywood Food research Association,
Gloucestershire, UK. The associations will work with Artesian Bread to bring it in line with
globally accepted production, technology, machinery and formulation standards the hard work
and with this much dedication the company will struggle to receive its ISO 9001: certificate.
For purpose of standardization, the company will bring itself in line with international standards
of production, technology, machinery and formulation. All the Artesian Bread plants boast of the
latest machinery used in the bread-making process. They will be managed by senior food
technologists with decades of experience, while those manning the machinery will be provided
on the job training in congenial working conditions.
Taking a responsible place in society, the company is committed to the uplift and development
of the society as a whole, and participates in sports and social welfare activities. We hope to continue to develop and maintain this relation in the future. Explanation of Innovation Our product is unique in sense that it provides with unique flavored in bread first time in Pakistan. Currently Artesian have three flavors of breads •
Chocolate, •
Vanilla •
Strawberry. It is also at the same time a product for the health conscious people as well.
The bread industry in Pakistan has seen many changes in the last twenty-five years. It has
emerged as a small-scale bakery processing industry to numerous industrial bread making units
all over Pakistan. The bread industry in Pakistan is flourishing very quickly and bread products
are gaining much popularity. Bread has been accepted as a popular substitute of •
Rice, •
Naan, •
Paratha. . Need GAP analysis
Consumers are increasingly concerned about their health and are well aware of the relationship
between nutritious food and optimal health. Various concerns have caused consumers to
monitor their dietary habits closely. The growing media coverage on health, the rising incidence
of health conditions (obesity, diabetes and cardiac problems), concerns over physical
appearance, changing lifestyle and also soaring costs of healthcare have all contributed to the
demand for healthier bakery products. In addition, the aging baby boomer population has had a
specific effect in increasing the demand for healthy foods. Some popular trends in the market
are the introduction of low/light, functional, natural and organic products, as described below.
Fulfilling the Need
Every day, before the sun rises, we begin making our bread from scratch. The dough is made
with natural whole grains and unbleached flour, with no preservatives. Most of the breads are
leavened with a natural sourdough starter using a long, slow fermentation time. Every loaf is
formed by hand and left to rise naturally. The breads are baked throughout the day, with
patience and care, on a traditional stone hearth.
This is an Old World style of baking, perfected over centuries. It is a process that brings the
most flavors out of the bread creating chewy loaves with a crunchy, flavorful crust. We bake
dozen varieties each day, and all of our breads are low- fat or fat-free. Product Qualities (Differentiation) Our product provides with following type of health related benefits which provides the better health. Flavored Bread– the unfitness of our bread is that it is flavored bread. We are going to provide it in three different flavors i.e. Chocolate, Vanilla and Strawberry. Low / Light Bread
Our bread is with reduced fat and carbohydrates. With the growing incidence of obesity and
popularity of diets low calorie foods have gained immense popularity which is our core
capability. Functional Bread–
In recent years, enhancement of the nutritional profile in bread products is a key trend that has
gained a great deal of momentum. We will also trying to enhance the nutritional value of
traditional bread products through the addition of functional ingredients, such as omega-3,
multigrain, multivitamins etc. Natural and Organic Bread-
Increasing health awareness and concern over the consumption of artificial ingredients have
fuelled the demand for natural products. Bread products that contain all natural ingredients are
likely to thrive in this competitive market. Organic bread is yet another category gaining impetus
in recent times, and the products are clearly labeled to draw attention to their organic nature.
We will also have a look over it. Pleasure-
In addition to healthier products, consumers also are purchasing products that satisfy their taste
buds. The taste enjoyment factor is vital in the marketplace and we will be focusing on this more
deeply. With lifestyles becoming increasingly stressful, consumers may indulge in food for
comfort eating purposes. Indulgence/luxury products are becoming more pronounced as a key
trend in the bread industry. Consumers increasingly seek for premium, gourmet and exotic
products to satisfy their desire to indulge Market Situation
– Expected Market Size and Potential
Only 5 % population of Pakistan is using the packed bread so rest of the market is still to be
captured. Here people are wiling to pay extra amount for the differentiated product. Our main
focus wood be
Mission Statement "This is a family company selling traditionally baked bread with a freshness and quality you really can taste". Vision Our vision is to become Pakistan's favorite bread this is underpinned by our dedication to continued improvement across all areas of the business.
We are committed to developing the bread market and working with our customers, that is why
we invest a lot of time and money to understand our consumer's needs. Goal
Our goal is to ensure that important values such as quality, freshness, and service are delivered
to our consumers in the 21st Century. For us this isn't just a business. It's a way of life. The task ahead is to concentrate on making the cake bigger rather than fighting for a bigger piece of the existing cake. Market Trend
Market is currently not using up to dated technology and generally companies are interested
making the beads that remain at low cost. There is great deal of competition in the market in a
congested area of the market. There is a huge market available where one can hit the target
market.
Currently, 5% of the total population of Pakistan consumes packaged bread. The major factors
for such a low percentage of people consuming bread are mostly economical and cultural.
Pakistani diet consists of many substitutes for bread, which are cheaper and preferred over
bread by a majority of the population. The political scenario as well as the legal scenario is not
posing any threat to the bread industry growth apart from the price restrictions, which actually
fixed by negotiations between the government of Sindh and the committee of bread- making. Competitor analysis
Competitor analysis in marketing and strategic management is an assessment of the strengths
and weaknesses of current and potential competitors. This analysis provides both an offensive
and defensive strategic context through which to identify opportunities and threats. Competitor
profiling combines all of the relevant sources of competitor analysis into one framework in the
support of efficient and effective strategy formulation, implementation, monitoring and
adjustment. Indirect competitor Indirect competitors of Flavored Bread are: •
Different cakes •
Biscuits •
Cookies •
Pastries, etc Substitute Competitors
A substitute competitor is any competitor that fills the same buyer need you fill but fills it in a different way. The substitute competitor of Flavored Bread is: •
Dawn Bread
•
Gourmet Bread •
Cakes and bakes •
Different bakery breads •
Vita Bread •
Bunny Placement Strategy •
Brand Name •
Trademark •
Logo Brand Name
Flavored Bread a name that has come to signify quality and freshness in bread
products. The purpose of the research is to analyze the current state on the
baked goods market. The main tendencies and forecast the possible market
growth. Prior to the establishment of flavored Bread, will become largest producer
of bread products is the public sector. However, this sector could not cope with
the demands of the consumer and this when, perceiving a change in the eating
habits of Pakistanis, Flavored Bread will envisioned. Flavored Bread built-up a
reputation for freshness, quality and taste. Creating awareness plus a demand for
bread products, and started its production in Lahore.
Logo
Trademark
We have registered our brand in ACCP office with registration number 89554.
Now we have legalized it. We have registered our company by the name of
ARTESIAN & Co.
We will give step by step guide to SMEs in Pakistan about protecting Trademark in Pakistan as
well as abroad (especially for exporters), its initial protection tenure renewal able till existence of
the SME, cost of registration and offices where applications can be submitted. We will also
highlights that mostly applications are rejected on the basis of it being a generic name (like
using trademark Bread to sell Bread), or a descriptive term (like the mark SWEET for marketing
chocolates), or a deceptive trademarks (e.g. marketing margarine under trademark featuring
COW), or a shape of product, which should be avoided. We also provides check list for SMEs to
consider, prior to selecting a Trademark. Information regarding popular types of trademarks i.e.,
service marks (like Business Plus), collective marks certification marks well known marks.
Distribution:
Artesian distribute on network will be indirect and comprise of over two hundred
company owned vehicles in a distribution system spread all over Pakistan. On a daily basis, we
will distribute our goods to over a 200 retail outlets. We will distribute in almost all the major
metropolitan areas, secondary metropolitan areas as well as the rural parts of the country, later. Channels of Distribution:
Channels of distribution will be intensive becauseArtesian will operate six plants throughout
Pakistan. The Bakery's distribution network will rent more than 50 vehicles which will deliver
baked products to more than 200 retail outlets, and will making it one of the largest distribution
networks for any product in the country customers are located in major metropolitan areas,
secondary metropolitan areas and rural areas. We will develop a manufacturing process utilizing
state of the art bakery machinery combining it with locally developed equipment. This unique
combination resulted in products which are closer to the actual taste and form that we make at
home.
The Product Analysis
FAB analysis:
Features:
A common scenario of Flavored Bread in selling is for the sales person to extol the virtues of the
product they are selling by demonstrating the assorted features that it has.
Another variant of the flavored bread’s features trap will be when the customer comes in with a
checklist of the features that they want. Anything that does not have all features is immediately
rejected, whilst products with extra features are ignored. When they have narrowed down their
choices to a set of products that have all the features they want, then they choose solely on
price.
Benefits:
Benefits of Flavored Bread will be what the customer gains by using the product. Selling on
benefits thus sells to what they really want, not what they say they want or what you want to
sell. With benefits, consumer will get them excited and emotionally engaged. Attributes:
Attributes are intangibles that are associated with the product, not the person (and hence are
not yet benefits) Falvored bread have many attributes whilst others have far fewer. Our product
specifications will be according to the customer needs. Flavored bread will be useful for
stepping-stone between the physical product and the benefits that the person actually receives
and can be used in a sales pitch as such. Quality function deployment quality statement: Flour: Hard wheat flour, or bread flour, is preferred for yeast breads, although
soft or all-purpose flours may be used successfully if the procedure is adapted to the type of
flour. Bread flour has a high gluten (wheat protein) content and thorough kneading is necessary
to develop the gluten so it can hold up a loaf of bread. The gluten is elastic and stretches as the
yeast grows and gives off gas, making the bread light in texture.
Soft wheat or pastry flour is a weaker flour because it does not contain as much gluten;
therefore, bread made with it needs less kneading than bread made with bread flour. A blend of
the two flours requires a moderate amount of handling to properly develop the gluten. Over-
kneading of doughs from any type of flour may injure the baking quality of the gluten and
produce a bread of poor texture and volume.
Bread may be made entirely of whole-wheat flour or in combination with white flour. A mixture
of white and whole wheat flours makes a lighter loaf than whole wheat alone, but the nutritive
value increases as the increased amount of whole wheat flour is used. Liquid: Water, potato water, milk or other liquids may be used in making bread.
The bread will be whiter in color and have greater food value if milk is used. Both milk and
potato water prevent bread from becoming stale so rapidly as bread in which water is the only
liquid.
Yeast: Because yeast is very small plants, it must be kept fresh and active. Yeast may be bought in dry granulated form or compressed cakes or grown at home in the form of "starter" or "liquid yeast". Fat: The fat in dough makes the bread tenderer and increases its keeping qualities. Any high quality cooking fat is satisfactory. Sugar: Yeast plants grow quickly in the presence of a small amount of sugar as it is food for their growth. A golden-brown color will be given to the crust by the use of sugar. Salt: Gluten is made stronger by the salt. Flavor is also improved. Quantity:
2 3/4 c. liquid
1/2 to 1 ounce (1 to 2 packages or cakes) yeast
3 tbsp. sugar
4 tsp. salt
2 tbsp. fat
About 9 cups sifted hard-wheat flour. (More all-purpose or soft wheat flour will be needed.) Market Segmentation:
Market Segmentation is an effort to increase a company’s precision marketing. A market
consists of a large identifiable group within a market with similar wants, purchasing power,
geographical location, buying attitude, or buying habits. We have done the segmentation on the
basis of the following variables: Demographic Segmentation Age, Income, Social Class & Occupation
Demographics
Gender: flavored bread can be use by males and females as well Income: Flavored is basically for middle upper class people and it will be easily affordable for all type of these people. Age: Flavored bread will be useful at every stage of life. Young generations and older ones can also use this delicious bread
Geographic
Area: Flavored bread is located in Lahore and it is easily available in all super stores and general stores. Psychographic: flavored bread is according to the customer needs and demands. It consists of natural flavors like chocolate, vanilla and strawberry.
Behavioral segmentation Occasions, Benefits, Usage Rate & Attitude
Usage rate
Flavored bread is particularly use by young generations who are very fond of flavors like
generation X they love chocolates and different flavors products. Usage rate will be high
because of these young generations. Benefits: it consist of Vitamin D and A so it is quite notorious and have energy as well
Targeting
After segmenting the market we are targeting the following segments: Income Groups
We will be targeting all income groups who should afford easily. Flavored bread, being an
established brand with mass appeal and cost effective pricing, it will not discriminate between
income groups.
Youth
A huge potential market for this bread it lies with youth whom we will be specifically targeting road shows to be held as part of the ‘Add Color’ campaign.
Travelers
It is also available in mini-size factor, so it will be highly convenient to carry along during large journeys or trips. This is why it will be targeted at travelers as well.
Promotion Strategies
Product position Strategy.
Positioning is what the customer believes about your product’s value, features, and benefits; it is
a comparison to the other available alternatives offered by the competition. These beliefs tend
to based on customer experiences and evidence, rather than awareness created by advertising
or promotion.
Marketers manage product positioning by focusing their marketing activities on a positioning
strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize
the chosen positioning strategy. Basic strategies for product positioning that we have used:
1. By attribute or benefit
The flavors that make you feel different. It tastes great and that it is rich.
2. By use or application
The different tastes from the ordinary bread. Use it with butter or eat the simple loaf.
3. By user
Every one who wants to have a “different taste” may have it.
4. By product or service class
Artesian bread will competes as an alternative to the ordinary breads. It is positioned as a lower
cost and healthier alternative to the ordinary bread, while it provides better taste and healthy
ingredients.
5. By price or quality
Artesian wants you to believe that their flavor bread is of the highest quality.
Positioning is what the customer believes and not what the provider wants them to believe.
Positioning can change due the counter measures taken at the competition. Managing your
product positioning requires that you know your customer and that you understand your
competition; generally, this is the job of market research not just what the entrepreneur thinks is
true. Advertising strategy There are two major parts to an advertising strategy.
1) Assessment. •
What's going on in the market, what’s the history, the current situation? •
What are the major trends in the market? •
What's the future looking like? (With the product. With consumer attitudes.)
2) Action •
What should your customer do about the most significant opportunities or problems presented by the situation? •
What should to do with the brand? •
With direct marketing. •
With the way the company is positioned. A SWOT analysis helps in figure out the "What's going on" part. And figure it out quickly. Artesian Advertising Strategies are: A) Position the product: "Because we are worth it."
B) Investing in creating a stronger brand personality: It will base on an upscale, character that people will aspire to associate with. C) Using the Internet / Web site:
Currently Artesian don’t have any Web site but it will have an internet asses and web site in
future to target and sell younger buyers, new buyers, before they have established a product. You can also see that the ad strategy deals with the big strategic issues: •
Branding, •
Positioning, •
Media.
Artesian is a new in the world of breads because it is just not that ordinary bread which has that
old milky or simple bread taste. It is different from the traditional breads because it has a flavor.
We have just launched Artesian in Lahore and we want it to be in every house, every restaurant,
where there is its need. And it does so with simple action statements describing what you intend
to accomplish.
Understanding the Psycho-Dynamics of the market: What’s going on inside the brains of buyers, of perspective customers? It includes, but is not limited to, Consumer Involvement Theory (CIT). •
How the consumer relates to the purchase: •
Rational to emotional. High to low involvement. People probably buy the same brand of breads
with a mindless motion at the market. Because it is priced.
But besides Consumer Involvement Theory (CIT), there are likely other issues, perhaps more important issues, such as why people buy the other brand bread: “People may think that the ordinary bread is of higher quality or more good in taste or more healthier products.” Or perhaps it's not so much what people think about competitors, but what they think about our customer: "I don't know if it will be available in the market easily."
Psycho-Dynamics is everything. It’s all that stuff rattling around between the ears of likely
customers. The thoughts, feelings and ever-changing prejudices that influence purchase
decisions. That's the Psycho-Dynamics of the market. And it is always changing. Knowing
exactly what you want the advertising to accomplish. Above the line sales promotion Artesian is using above the line (ATL) sales promotion currently, that is Artesian will advertise through media such as; •
TV •
Radio •
Newspaper •
Magazines •
Broachers •
Banners
To promote the brand. Major uses include television, radio, and newspaper advertising and
banners ads on different squares (chowks) in the city. This type of communication is
conventional in nature and is considered impersonal to customers.
Advertising objective Artesian has clear and specific aim of an advertising or commercial, such as •
To earn profits
•
To compare, •
To gain attention, •
To inform, •
To persuade, or •
To remind our customers about our product. Campaign theme
The Currently campaign themes of Artesian is developed with the intention of being used for a
substantial period of nine months but it might be short lived or extended due to factors such as
being ineffective or market conditions. Reach
60% of the television viewers, 70% of radio users, 60 % of radio users and 90% of news paper
readers should be exposed to the ads or commercials which are on media and media schedule
within a period of four months in the big cities of Pakistan such as; •
Karachi, •
Lahore, •
Islamabad, •
Faisalabad, •
Peshawar.
With the time and market conditions these ratios can be reviewed according to the needs.
Frequency
The frequency in the beginning will be high. It will keep high for some months for the period after
the soft launch and later it can be decrease. There will be changes in the frequency with the
time and market conditions.
Media Vehicle The print and electronic medium employed in an advertising campaign used by Artesian is as follow. ELECTRONIC MEDIA
PRINT MEDIA
PTV FM 100 The News YOUNG WORLD
ALLAH HO CHOWK
AJ 89 FM Dawn
AKHBAR-E- JAHAN
KALMA CHOWK
A-TV FM 101 Jang KALMA CHOWK MUSLIM TOWN MUR
ARYFM 99
KHABRAINSUNDAY MAGZINE
MAZANG CHOWK
GEO TV FM 106.2 DAILY TIMES MAG
MALL ROAD NAWA-E- MM ALAM
Proper Budget Allocation Advertising In order to keep the advertising budget in line with promotional and marketing goals Artesian have focus on the followings: •
our target consumer are householders (income 10000 or above), bakers and Restaurants •
Those who are interested in change in taste and are health conscious will be interested in Artesian Bread advertisements. •
Is the media the advertiser is considering able to reach the target consumer? •
The product lends itself to rational appeal. •
How much profit is earned for each Rupee spent on advertising?
All these things give Artesian advertiser are provided with an idea of the market conditions.
Thus, how best to advertise within these conditions. Once this analysis of the market situation is
complete, an advertiser has to decide how the money dedicated to advertising is to be
allocated.
Channel Estimated
Cost per Ad
FM 100 22000
FM 101 18500
FM 99 19500
TOTAL Budget 60000
Channel Estimated
Cost per Ad
PTV 900000
GEO TV 100000C
ARY 950000
TOTAL Budget 2850000
Newspapers Estimated
Cost per Ad
Dawn 55000
Jang 65000
The News 50000
TOTAL Budget 170000
Magazines Estimated
Cost per Ad
Young World 35000
Sunday
Magazine
50000
US 35000
TOTAL Budget 120000
Slogan Artesian“Discover a Healthier Slice Of Life!” USP Artesian “The bread which build strong bodies and which has the flavor of your choice.” Push strategy A push strategy is used by Artesian because it is a new product which is unknown to the consumer. As there is no consumer demand in the product launch, the
product and the information are "pushed" to the consumer by distribution and promotion. Promotional Materials Some of the promotional materials are as follow: Point of sale(POS) Terminals
Artesian has place different check out counters in big general stores like AL- FATEH, Pace and
HKB. Plus they have placed very different and unique and stylish type of racks to the shops,
which are very attractive and heart appealing. Participation in Trade Fairs and Exhibitions:
Artesian has stalls in the different Exhibitions held in different schools, universities and cities.
Where they sell and tell the consumers about the product that is the flavor bread. Also in those
stalls they are using the flavored bread making different types of sandwiches to tell the users
about the utility and benefits of Artesian Bread. Broachers and Leaflets
Artesian has very attractive and appealing broachers which Artesian have distributed with the
news papers and they have also placed it on the cash counters in different stores. Plus,
Artesian are now having a man standing on the entrance of big shopping malls in the cities. Banner & Hoardings: Artesian has placed banners on different squares in the city and they have the hoarding placed on the malls and stalls in the exhibitions.
Price
Price is not just the number or tag on the product. But it is the most important thing. Marketing Skimming:
Billboards Estimated
Cost per AdALLAH HO CHAWK
40000
KALMA CHOWK 100000 MALL ROAD 100000 MM ALAM ROAD
70000
DEFENCE 60000
TOTAL Budget 370000
Artesian is using Price skimming strategy. It is a pricing strategy in which a marketer sets a
relatively high price for a product or service at first, and then lowers the price over time. It is a
sequential version of price discrimination and yield management. It allows the firm to recover its
sunk costs quickly before competition steps in and lowers the market price. Psychological Pricing:
Artesian is selling at PRS.50. so they are not using the Psychological pricing currently. Retail
prices are often expressed as odd prices: a little less than a round number, e.g. PRS19.99
instead of $20. Psychological pricing is a theory in marketing that these prices have a
psychological impact that drives demand greater than would be expected if consumers were
perfectly rational. Psychological pricing is one cause of price points. Computing price method Cost-plus pricing
Cost-plus pricing is a pricing method used by Artesian. It is used primarily because it is easy to
calculate and requires little information. There are several varieties, but the common thread in
all of them is that one first calculates the cost of the product, and then includes an additional
amount to represent profit.
The method determines the price of a product or service that uses direct costs, indirect costs,
and fixed costs whether related to the production and sale of the product or service or not.
These costs are converted to per unit costs for the product and then a predetermined
percentage of these costs are added to provide a profit margin.
Price Elasticity and Customer sensitivity Price Elasticity:
It is percentage change in quantity demanded as per the percentage change in price of the
same commodity. The price elasticity of demand is a measure of the sensitivity of quantity
demanded to changes in price. It is measured as elasticity that is it measures the relationship as
the ratio of percentage changes between quantity demanded of a good and changes in its price.
In simpler words, demand for a product can be said to be very inelastic if consumers will pay
almost any price for the product, and very elastic if consumers will only pay a certain price, or a
narrow range of prices, for the product.
Inelastic demand means a producer can raise prices without much hurting demand for its
product, and elastic demand means that consumers are sensitive to the price at which a product
is sold and will not buy it if the price rises by what they consider too much. Demand for bread is elastic because as the price of this flavor bread increases, there are many substitutions which consumers may switch to. Customer sensitivity:
Customers are very sensitive and they want fresh bread in the breakfast and if they don’t get it then they might dislike the product because of the availability. Discounts and Rebates Artesian in its soft launch of its product will provide special offer which is buy two artesian bread and get one small absolutely free. Key People with Specific Skills
We have worker who have decades of experience in bread industry. We have contracts with them to work with us and on our formula. Physical evidence The site for the factory is in Muridkey where we can visit to see the desired place. Exact address is10 km Sheikhupura road GT road Muridkey. Land and Building We will purchase our land in Muridkey for factory. Further detail is given in the Gant chart. We have cash in hand for this acquiring. Location and side details
It is located in industrial area of Muridkey where other industries are situated. It is regarded as
the industrial are. We are going to have 6 Acres. Labor is easily available there at a cheaper
cost and raw material is also available there. It is having all the required facilities need for the
bread industry.
Market entry strategy: 1. Guerilla attack:
We will first use guerilla strategy to launch our innovative product.
We will offers different selling offer to the market so that we can
capture market share. We will set price of our product as low as
possible. And give also extra benefit like availability of product as
near to the consumer.
2. Soft launch strategy:
We will first launch our product to the discounted shops so that we can check our product’s
demand in market. This step tells us about the weekly sales of our bread. 3. official launch strategy:
After the 3 weeks of soft launch we will launch our product officially
in big market. But before it we will create awareness among the
people of our product. We will set our product in every self of every
good and well known shop.4. Event marketing at launch stage: Sponsoring cricket matches:
Cricket the most sought after; watched & played game in Pakistan .the game of
cricket has been owned by various brands in the industry for the promotion of
their products over a period of time. It has ranged from tobacco to lubricants to
communication companies to banks to airlines & lately to the beverage industry.
The competition has become tougher & tougher as the time has progressed. we
will make agreement with Pakistani cricket team management to sponsors the
matches. we realize that fact that cricket is a very strong element by which we
can reach our consumers & masses invested in the opportunity and launched a
massive campaign on mass media showing all these cricket stars support &
flatter our product. We will introduce adds of our product in which some cricket
stars will promote our product.Sponsoring Concerts:
We will arrange concerts for the enjoyment of people and also aware them about our product.
We will bring the stars of people close to them. Again the purpose is same, to create awareness
about our product
5. public relation activities:
Public relation is our most important objective because it is the key think to
enter and remain in the market. We will do lot of exercise to built public
relation. Like our sale person will stand on the retailing shop to tell the
customer about our product. We already have planned to arrange different
events. The purpose of those events is to create public relations.6. publicity:
Publicity is the important factor to create awareness about any product. We
will also do publicity of our product. We will use newspaper, T.V channels, and
also direct selling. We will also use radio for publicity. This steps will helps us
to improve our sales. On T.V channels we will choose that channels which are
famous in ladies like, GEO TV etc. and in newspaper we will choose ladies
magazine for publicity.
Quantitative SWOT matrix analysis: External threats: 1. There are Large companies who have brand loyal customers providing the
market with not exactly similar but milky and other breads.
2. Switching brand loyal consumers to a smaller and newer company
3. Rising material, production, and shipping costs for a new, up till nowbranch out company.
4. there is open market everywhere means any new company or existing ones can start the same
production who may have more experience or more qualified staff.
External opportunities: 1. Creating a healthy product that provides options in flavors and relating to diet value will plot new regulars
2. Healthy component will allow us to break into the diet consumer 3. Being a new company will provide us the chance to set up thrill Internal strengths: 1. Our ability to produce options keeps more consumer interest and needs met. 2. Our new production technology will enable us to mass produce products more efficiently and quickly than other old companies. 3. Our new taste will attract many such type of consumers who are taste changer. Internal weakness: 1. The more flavors we create, the more production costs will increase. 2. New technology and production methods will require greater preparation and back-up wants. 3. At starting we will not have as such trained staff that has such a market experience.
Matching the SWOT matrix:
Strengths Oppertunities
1. 1. Our ability to produce options keeps
more consumer interest and needs met
2. 2. Our new taste will attract many such
type of consumers who are taste
changer
Cr 1. Creating a healthy product that
provides options in flavors and relating
to diet value will plot new regulars
2. 2. Our new taste will attract many such
type of consumers who are taste
changer
Strengths Weakness
1. 1. Our ability to produce options keeps
more consumer interest and needs
met
2. 2. Our new production technology will
enable us to mass produce products
more efficiently and quickly than
other old companies
1. The more flavors we create, the more production costs will increase
2. The more flavors we create, the more production costs will increase
Financial Analysis:
Project setup Cost onetime Expense
Asset Price Detail
Land 20,000,000 Land located near Korangi Industrial Area Total area: 4Acres.
Building 125,000,00 We will construct a building which has 4 Storeroom and 2 Big
storeroom for Plant and Machinery.
Plant &
Machinery
75,00,000 Plant and machinery for the production of Bread and packing
and printing.
Furniture 10,000 Furniture require for office and factory.
Ingredients Quantity (kg) Price (Rs)Flour 50 14Suger 0.10 2.5Eggs (piece) 4 16Salt 0.7 1Flavor 3Packing 1.75Total 38.25Profit Margin (50%) 19.375Total Price/Pack 58
Revenue & cash flow projected with estimated sales forecasted. Price/packet of bread
Weakness Threats 1. The more flavors we create, the
more production costs will increase.
2. At starting we will not have as such
trained staff that has such a market experience.
1.There are Large companies who
have brand loyal customers
providing the market with not exactly
similar but milky and other breads.
2. there is open market everywhere
means any new company or existing
ones can start the same production
who may have more experience or more
qualified staff.
Expected sales in 1st quarter (approx).
Months Total Units sales
Price per unit Total
January 25863 58 15,00,000February 29310 58 17,00,000March 31034 58 18,00,000
INCOME STATEMENT
Sales Revenue(lacks PKR 20.00 PKR 22.50 PKR 30.00Less: Cost of Goods Sold PKR 15.6 PKR 17.55 PKR 2.34
Gross Profits PKR 4.40 PKR 4.95 PKR 27.66Less: Operating Expenses
Marketing Expense PKR 11.76 PKR 11.76 PKR 11.76General / Admin. Exp PKR 0.15 PKR 0.17 PKR 0.22Depreciation Expense PKR 0.25 PKR 0.25 PKR 0.26
Total Operating Expenses PKR 12.16 PKR 12.18 PKR 12.24
net profit before taxes -PKR 7.76 -PKR 7.23 PKR 15.42less tax PKR 0.09 PKR 0.07 PKR 0.15
Net loss/profit After Taxes -PKR 7.85 -PKR 7.30 PKR 15.27
JUNE JULY AUGUST
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