8/6/2019 Budget 01

1/5

BUDGET & CONTROL

total budget of Rs. 4,000,000 should be set aside so that all the above mentioned activities can

be carried out without any financial restraint.

Bothbudgeting & controlling are important part of any Marketing Plan, and for launching Rivaaj

as new Brand Extention to National Foods, careful analysis & suggestions been made in thisregard.

Budget:

y A formal statement of the financial resources set aside for carrying out specific activities in agiven period of time.

y

It helps to co-ordinate the activities of the organisation.

Characteristics ofa budget

A good budget is characterised by the following:

y Participation: involve as many people as possible in drawing up a budget.

y Comprehensiveness: embrace the whole organisation.

y Standards: base it on established standards of performance.

y Flexibility: allow for changing circumstances.

y Feedback: constantly monitor performance.

y Analysis of costs and revenues: this can be done on the basis of product lines, departments orcost centres.

Budget portion of Marketing Plan should reflect followings,

8/6/2019 Budget 01

2/5

All these aspects have been considered thoroughly because this budget is actually provides basis, after

managements approval, for materials buying, production scheduling, personnel planning, and

marketing operations.

Techniques like ,

y sales force opinions

y market research

y statistical methods

have been utilized in collecting data.

Arrangement of finance is a core issue, and for that National Foods does not totally depend onprivate capital because a large amount of money will be required so they consider taking loans as

per heir requirements.

PRICEING FOR CONSUMER

Since Rivaaj Paste product falls in the category of convenience goods, these includes the goodsfor which the customer doesnt have to put a lot efforts. To set consumer price for this product is

an important aspect of Budgeting as people in Pakistan, in general, look for low price and highquality. Taking this crucial point, Rivaaj was initially launched with Rs 22 tag price when their

competitor was offering same product at Rs 30 tag price at that time.

ProjectedProfit-and-Loss Statement

Expected Sales

Expected Average Unit Price

Expected Cost ofProduction

Expected Cost of Distribution

Expected Cost of Marketing

8/6/2019 Budget 01

3/5

A survey conducted by National food advertising agency owned by company itself shows that

correct media selection has helped company achieving communication goal. As a combination ofdifferent types of media used (TV, Radio, and Newspaper) by national food, 50-70 % people are

accessed out of whole population of Pakistan.

National food spends lots of efforts on promotion of its products as management thinks it is theessence of marketing that you communicate effectively with your

target customers.

SALES PROMOTIONCurrently their sales promotion is restricted to the value packs that they promote duringRamadan season; in addition to this save Rs. 2 offer has also been used on a limited basis.NEWSPAPERSNewspaper is rarely used as an effective communication medium by National Foods.SEMINARS

To start with an effective sales promotion some introductory seminars will be conducted. Inwhich all the wholesalers will be invited from different parts of City and Country. They will be

introduced with our product and sales and promotional plans.We will brief them about theincentives we are going to offer them.We will convince them about the strength of our product.

TELEVISION (TELEMARKETING)

NFs know that TV is very effective media now days. They convey their message to all the

prospects very effectively. A few ads and commercials run at different times preferably during

family programs (dramas).PUBLIC RELATION AND PUBLICITY

No properly planned PR or Publicity activities have been witnessed on part of the company.

National food arranges different types of funfairs, cat walks, cooking competition, kids show,singing competition etc to promote its products and invoke the interest among people.

IMAGE ADVERTISING- CREATING A BRAND IMAGE

Since in this food category, it is difficult to create or find a unique attribute, we will be using

creative sales strategy based on strong, memorable brand identity through image advertising.LEVELS OF RELATIONSHIPWITH BRANDS

The creative strategy of our recommended strategy would be dealing with the following levels of

relationships of customers with the brand.Emotions the feeling and attachment part

Product benefits the functional benefits of the products like taste, quality etc

8/6/2019 Budget 01

4/5

8/6/2019 Budget 01

5/5

DISTRIBUTION COST ESTIMATES:

National Food hasThe product is a consumer good. So the distribution chain would be:

PRODUCER WHOLESELLER RETAILER CONSUMER

47| P a g e

This distribution chain will be for Karachi. In Karachi those wholesalers are selected who deal

with the major markets and big stores of all the parts of Karachi.

PRODUCER AGENTS WHOLESELLER RETAILER CONSUMER

This distribution chain will be used outside Karachi for different other cities (Islamabad &

Rawalpindi), from where agents will be used to distribute their product in different other cities.