1

ContentsTopics Pg. #

Introduction 1Explanation of Innovation 2Need gap analysis 2Fulfilling the Need 3Product Qualities (Differentiation) 3Market Situation – Expected Market Size and Potential 4Mission Statement 5Vision 5Goal 5Market Trend 5Competitor analysis 6Indirect competitor 6Substitute Competitors 6Placement Strategy: 7Brand Name 7Logo 7Trademark 8FAB analysis: 9Quality function deployment quality statement: 10Market Segmentation: 11Artesian advertising strategy 15Understanding the Psycho-Dynamics of the market: 16Advertising objective 17Campaign theme 17Reach 18Frequency 18Media Vehicl 19Proper Budget Allocation Advertising 19Slogan 21USP 21Push strategy 21Promotional Materials 21Price 22Marketing Skimming: 22Key People with Specific Skills 24Physical evidence 24Land and Building 25Market entry strategy: 25Quantitative SWOT matrix analysis: 27Matching the SWOT matrix: 28Financial Analysis 30Ratios for march: 34Conclusion 34

2

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.

3

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

4

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 –

5

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

6

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.

7

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

8

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

9

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:

10

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 because Artesian 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.

11

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.

12

  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

13

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

14

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.

15

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.

16

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:

17

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:

18

“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

19

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.

20

Media Vehicle

The print and electronic medium employed in an advertising campaign used by

Artesian is as follow.

ELECTRONIC MEDIA PRINT MEDIA

TV RADIO NEWS PAPER MAGZINES BILLBORD

PTV FM 100 THE NEWS YOUNG

WORLD

ALLAH HO

CHOWK

GEO TV FM 106.2 DAWN SUNDAY

MAGZINE

KALMA

CHOWK

AJ 89 FM JANG AKHBAR-E-

JAHAN

MUSLIM

TOWN MUR

A-TV FM 101 KHABRAIN US MAZANG

CHOWK

ARY FM 99 DAILY TIMES MAG MALL ROAD

NAWA-E-

WAQAT

MM ALAM

ROAD

21

DEFENCE

DUBAI

CHOWK

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

PTV 900000

GEO TV 1000000

ARY 950000

Total Budget 2850000

Channel ESTIMATED

COST PER AD

FM 100 22000

FM 101 18500

FM 99 19500

Total Budget 60000

22

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

NEWS PAPER ESTIMATED

COST PER AD

THE NEWS 55000

DAWN 65000

JANG 50000

Total Budget 170000

MAGZINES COST PER

AD

YOUNG

WORLD

35000

SUNDAY

MAGZINE

50000

US 35000

Total Budget 120000

BILLBORDCOST PER

AD AND SIZE

ALLAH HO

CHOWK40000

KALMA

CHOWK100000

MALL ROAD 100000

MM ALAM

ROAD70000

DEFENCE 60000

Total Budget 370000

23

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

24

Price is not just the number or tag on the product. But it is the most important

thing.

Marketing Skimming:

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.

25

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

26

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 is 10 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:

27

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:

28

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 now

branch 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

29

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 Opportunities

1. Our ability to produce options keeps

more consumer interest and needs

met

2. Our new taste will attract many such

type of consumers who are taste

changer

1. Creating a healthy product that

provides options in flavors and relating

to diet value will plot new regulars

2. Our new taste will attract many such

type of consumers who are taste

changer

strengths Weakness

1. Our ability to produce options keeps 1. The more flavors we create, the more

30

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.

production costs will increase.

2. New technology and production

methods will require greater

preparation and back-up wants

opportunities Weakness

1. Creating a healthy product that

provides options in flavors and

relating to diet value will plot new

regulars

2. Our new taste will attract many

such type of consumers who are

taste changer

1. The more flavors we create, the more

production costs will increase

2. The more flavors we create, the more

production costs will increase

3.

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

31

more qualified staff.

Financial analysis

Projected startup cost-onetime expense

Asset Price Detail

land 20,000,000 Land located near Mureedkay, total area 6 acres. at front

there is G.T road. At right and left side there is garments and

other factories.

building 125,000,00 We will construct a building which contains 4 storeroom . and

2 big storeroom for plant and machinery.

Plant &

machinery

75,00,000 Plan and machinery for production of bread and packing and

printing.

furniture 10,000 Furniture require for office.

Revenue & cash flow

projected with

estimated sales

forecasted.

Ingredients Quantity(kg) Price (Rs)

flour .50 14

sugar .10 2.5

Eggs(piece) 4 16

salt .10 1

Flavor(chocolate) 3

packing 1.75

Total 38.25

Profit margin

(50%)

19.375

Total price/ pack 58

32

Price/packet of bread

Expected sales in 1st quarter (approx).

Months Total units

sales

Price/unit total

January 25863 58 15,00,000

February 29310 58 17,00,000

March 31034 58 18,00,000

33

INCOME STATEMENT June July August

Sales Revenue(lacks) PKR 20.00 PKR 22.50 PKR 30.00

Less: Cost of Goods Sold PKR 15.60 PKR 17.55 PKR 2.34

Gross Profits PKR 4.40 PKR 4.95 PKR 27.66

Less: Operating Expenses:

Marketing Expense PKR 11.76 PKR 11.76 PKR 11.76

General / Admin. Exp. PKR 0.15 PKR 0.17 PKR 0.22

Depreciation 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 15.42

less tax PKR 0.09 PKR 0.07 PKR 0.15

Net loss/profit After Taxes -PKR 7.85 -PKR 7.30 PKR 15.27

     

34

BALANCE SHEET

Current Assets: June July August

Cash PKR 300,000.00 PKR 320,000.00 PKR 330,000.00

Total Current Assets PKR 300,000.00 PKR 320,000.00 PKR 330,000.00

Land & Buildings

PKR

32,500,000.00

PKR

32,500,000.00

PKR

32,500,000.00

Machinery and Equipment PKR 7,500,000.00 PKR 7,496,000.00 PKR 7,492,000.00

Furniture & Fixtures PKR 10,000.00 PKR 9,700.00 PKR 9,400.00

inventory

Total Gross Fixed Assets

PKR

40,010,000.00

PKR

40,005,700.00

PKR

40,001,400.00

Less: Accumulated

Depreciation PKR 25,000.00 PKR 25,000.00 PKR 26,000.00

Total Assets

PKR

40,285,000.00

PKR

40,300,700.00

PKR

40,305,400.00

Current Liabilities: June July August

Taxes Payable PKR 8,500.00 PKR 7,300.00 PKR 14,200.00

Other Current Liabilities PKR 0.00 PKR 0.00 PKR 0.00

Total Current Liabilities PKR 8,500.00 PKR 7,300.00 PKR 14,200.00

Total Liabilities PKR 8,500.00 PKR 7,300.00 PKR 14,200.00

capital

PKR

41,061,500.00

PKR

41,023,400.00

PKR

38,764,200.00

net loss/profit -PKR 785,000.00 -PKR 730,000.00 PKR 1,527,000.00

Total Liabs. & Stockhldrs'

Equity

PKR

40,285,000.00 PKR 4,030,700.00

PKR

40,305,400.00

35

Ratios for march :

Current ratio:

  Total Current Assets

Current Ratio = ____________________

                        Total Current Liabilities

Current ratio= 330000/14200 = 23.23944

Gross margin ratio:

Gross Margin Ratio = gross profit/net sales

Gross margin ratio= 2766000/3000000 =0 .922

Net Profit Margin Ratio:

                                    Net Profit Before Tax

Net Profit Margin Ratio = _____________________

                                              Net Sales

Net profit margin ratio = 1542000/3000000 = 0.514

Conclusion

“We are quiet confident to have a successful launching of the

bread in the market.”