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Strategic Marketing Strategy

Based on 2013 study of Strategic Marketing Management

Prepared for

Mr. Mobeen-ul-Haque

UMT

C-II Johar town

Lahore 042-52128011

Prepared by

Hur Abbas 13052032007

Zainab Baqar 13052032008

Hafsa Tariq 13052032025

Muhammad Jawad Raza 13052032022

UMT research associates

C-II Johar town

Lahore

June 8, 2013

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UMT research associates

C-II Johar town Lahore

June 8, 2013

Mr. Mobeen-ul-Haque

Permanent faculty member

C-II Johar town

Dear Mr. Mobeen

This is the report on the study of strategic marketing management applied for launching a new

brand of Unstitched LAWN.

As you will see, our report is based on the studies of different strategic marketing strategies and

implementations required for launching any brand or product.

At UMT we appreciate having this assignment. If you should need any assistance in interpreting

this report or in implementing our recommendations, please contact us

Sincerely yours,

Hur Abbas

Zainab Baqar

Hafsa Tariq

Muhammad Jawad Raza

Research associates

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Acknowledgement

“In The Name of ALLAH, Most Gracious, Most Compassionate"

We are grateful to our Resource Person Mr. Mobeen-ul-Haque for assigning us a very creative, interesting and challenging project of Strategic Marketing Management. We appreciate his efforts and time for helping us and providing his assistance throughout the project. It has been enriching experience for us which would not be possible without the joint efforts of our team.

We pay gratitude to sir for his constant help in research and collection of the relevant material and providing us assistance while making our final project. We express our gratitude also to all those who directly or indirectly help us in this project. Lastly special thanks to our parents for their prayers for accomplishment of this task.

However, we accept the sole responsibility for any possible errors and would be extremely grateful to the readers of this report if they bring such mistakes to our notice.

“Knowledge is in the end based on acknowledgement.”

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ContentsAcknowledgement.....................................................................................................................................1

Executive Summary.................................................................................................................................4

Industry Analysis.....................................................................................................................................5

Customers Trends....................................................................................................................................5

Buyers Trends..........................................................................................................................................6

Suppliers Trends......................................................................................................................................6

Technology Trends..................................................................................................................................6

Economic Trends.....................................................................................................................................6

Porter Analysis........................................................................................................................................6

Opportunities...........................................................................................................................................7

Threats.....................................................................................................................................................7

Competitor’s Analysis.............................................................................................................................8

Competitor’s Strategy..............................................................................................................................8

Market & Demand Analysis....................................................................................................................8

Characterization of the Market................................................................................................................9

Internal Analysis....................................................................................................................................10

Situation Analysis & Specification of Objectives..................................................................................10

Goals and Objectives:............................................................................................................................10

Strength.................................................................................................................................................11

Weaknesses...........................................................................................................................................11

Strategic Analysis..................................................................................................................................11

Segmentation.........................................................................................................................................11

Segmentation Portfolio..........................................................................................................................11

Point of Difference................................................................................................................................12

Point of Parity........................................................................................................................................12

Frame of Reference...............................................................................................................................13

Reasons to Believe................................................................................................................................13

Positioning Statement............................................................................................................................13

Value proposition..................................................................................................................................13

Product DesignStrategy.........................................................................................................................14

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Product Growth Strategy.......................................................................................................................14

Product Scope........................................................................................................................................14

Price Strategy........................................................................................................................................14

Promotion Strategy................................................................................................................................14

Distribution Strategy.............................................................................................................................15

Lawn Industry Research........................................................................................................................15

Research Objectives............................................................................................................................15

Execution of the Product.......................................................................................................................21

Customer-Buying Behavior....................................................................................................................22

Brand Awareness...................................................................................................................................22

Packaging...............................................................................................................................................23

Price.......................................................................................................................................................23

Place......................................................................................................................................................24

Distribution Channel..............................................................................................................................24

Promotion..............................................................................................................................................24

Advertising plans...................................................................................................................................24

Differentiation.......................................................................................................................................24

Positioning.............................................................................................................................................24

Value Preposition..................................................................................................................................24

Brand Extension Plan of 4P’s.................................................................................................................25

Financials...............................................................................................................................................26

Projected Income Statement.................................................................................................................26

Projected Balance Sheet........................................................................................................................27

Financial Ratios......................................................................................................................................28

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Executive Summary

This project is done on the unstitched Lawn Industry. We did the industry analysis in which we see the PEST analysis of political, economic, social and technological trends. This project further helps us understand the dynamics of the unstitched lawn industry by doing the Porters Analysis. Porter Analysis helps us understand the competitors, buyers, suppliers, substitutes and the new entrants in the industry. Furthermore after analyzing this analysis it help us understand the attractiveness and growth of the industry.

Industry dynamics helps us understand the attractiveness and the profitability of the industry to launch the new product. Before launching new product we need to set the goals and objectives and do the strategic analysis of competitors. Which segment to target and how to compete in the fragmented industry and what are the challenges we are going to face and how we are going to cater the problems are the first step to launch new product.

For this purpose we also conducted the research on lawn industry in designer lawn to help us understand the preferences and demand of the consumer behavior. The research analysis helps to segment the product and make the strategies of product, price, placement and positioning of the product. By analyzing the analysis we also conducted the forecasted balance sheet and income statement.

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Industry Analysis

Lawn industry is flourishing in the Pakistan market. Approximately there are 60+ brands listed and other off brands are in large number of quantity.

FACTS about Lawn Industry

Lawn industry is worth of Rs. 50 Billion. The growth rate of lawn industry is 25% which is increasing gradually. Lawns constitute a major exporting sector for Pakistan, which accounts for about

60% of the country’s total foreign exchange earnings Huge demand in domestic market as well as affluent segment of overseas

communities in Middle East, Europe and America Influence of Electronic Media

Customers Trends If we look at the trends we see the buying behavior of customers has been changing from

past few years. People are more brands conscious and that is the reason people value more of quality.

People tend to buy more designer lawn. People are getting tired of it seeing that it is not the most practical thing for bazaar

especially working women. Lawn used to be a comfortable choice of clothing, whereas now it seems more appropriate for lunches and dinners to which you would normally wear chiffons or silks anyway. 

The fashion trend may continue a little longer because they can wear such clothes year round for almost any occasion

Women wants complementary embellishments with the usual printed fabric, thousands of women can own the same lawn outfit, but customize it to their preference and style.

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Buyers Trends Marketers associating their names with designers to get the positioning and style of the

designer in customer mind. Buyers tend to find the differentiation in the lawn prints. People tends to pay more if they find attached frills and motives and guideline to stich the

lawn in shape of some poster or magazine There are number of brands available in the market with no or less differentiation and

that is the reason people are less brand loyal According to CEO of lawn Links FarrukhMian, seven hundred million meters of

lawn fabric is purchased annually in Pakistan.

Suppliers TrendsThere are many suppliers exist in the market and thread for lawn industry comes from ginning mills. There are many ginning mills in Pakistan that is the reason no or very less impact on the industry.

Technology Trends

There is no as such complex technology used by marketers and suppliers. No or less impact of technology on the industry

Economic Trends

Government support the industry to export garments to foreign countries and it also helps a lot in the GDP of Pakistan.

In readymade garment industry exports in 2010-11 stood at US $ 1.77 billion or 7.1% of the total exports. It is a positive impact on industry.

Porter Analysis

The bargaining power of buyers is high because customers have choices and they are attractive towards the good fabric products as they have more information.

The bargaining power of suppliers is low because we have many suppliers in market and all are offering same product so customer can easily switch.

Intensity is very high in market.

Threat of new entrants is low as they require high capital investment,

Substitutes in market are available.

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We have analyzed that market is captured by market leaders like Gulahmed, Nishat, Mausummery, Alkaram, Kyseria which is targeting the upper middle class and middle middle class, to enterand compete with these giants is very difficult as they have a brand name and they spend a lot on their advertisement and infra-structure.

Premium brands like AsimJofa, Sana Safinaz, Deepak Parwani, HSY mostly captures the specialized market. The upper class can purchase their products and their purchasing power is high and they spend much amount per season then the middle class.

The off brand or the low range brands like Five Star, Sitara, Etihad are also targeting the masses of lower and middle class. Customers in this segment are price conscious rather than quality conscious.

So overall the market is attractive for the low range brands because they don't need much investment and they don't do forward integration as well and customers can easily be attractive if the price ranges are normal and they accept the replicas as well.

If we talk about the premium brands then in this segment customers are conscious about variety and they are ready to pay the premium price so market is attractive here by providing the high quality products.

But to compete in Middle range segment is very difficult, as the giants have already captured the market and to compete with them we need a brand name.

After the analysis of the industry we came across some of the opportunities and threats which are as follows:

Opportunities The industry is flourishing because customers are more brands conscious and they want

more variety. Customers are willing to pay the premium price for quality products. Role of electronic media is creating awareness of brands.

Threats Threats of new entrants is high. Substitute products are available. Switching cost of brand is very low There is no brand loyalty. Fashion changes rapidly so one has to grasp the pace of industry.

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The major opportunity of this market for our brand is no one is targeting the essence of royalty. Silk dupattas with handmade embroidery lawn shirt will add the value in the product. There is a major gap in this market. We will specifically target the upper class and upper middle class because of their social circle. Customers want the semi-formal dresses so silk dupattas will add the royalty.

The major threat for our brand is the substitutes. The stitched which is normally known as PRET WEAR is the major threat. Customers of our market are students and working women, both are time conscious. So they prefer PRET Wear. Moreover this segment is moving towards the western dresses as well. This is the biggest threat for our brand. To overcome this threat we have given the option of stitching as well and the designs will be from ALI XEESHAN, the designer.

Competitor’s AnalysisThe last three to four years have seen the saturation of two trends: mills contracting fashion designers to lend their names and expertise for limited ‘designer lawn’, and, inversely, designers hiring mills to print their fabric. The first collaboration is straightforward. Textile mills have been known to commission fashion designers anything between 2 million and 20 million rupees per collection (depending on the designer’s ranking), reveal sources in the business. For textile mills, that amounts to a bucket out of a multi-billion rupee pool; for designers it is relatively easy money (and a lot of publicity) coming their way.

There are an estimated 60 premium lawn brands in Pakistan. Designer lawns produced by the designers like Deepak Parwani, HSY, Kayseria, etc.

Competitor’s StrategyCompetitors in this sub-segment of specialized lawn cashing their names and intensively doing campaigns and fashion shows to remain prominent in the market. They are targeting their segmented group of people of upper class and social butterflies. Every year they set trend in the fashion industry and change according to it. Competitors have maintained their trust in the eyes of customers by giving value added services and products. They launch 25,000 to 30,000 suits every year. They charge premium price by giving the premium designs and quality to the customers.

Market & Demand AnalysisThe lawn business is mammoth; its proportions are gargantuan. Millions of rupees are dropped into production and campaigns at the drop of a hat, millions of yards of fabric is printed and distributed, and most of it is sold. The lawn market is like a vast ocean, with contenders casting their nets and vying for some kind of fortune from it. Lawn is where fortunes are made, whether you are a mill owner, designer, campaign photographer or even a model.The estimated annual

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size of the lawn market in Pakistan is no less than Rs 50 billion. This makes it one of the most demanded seasonal consumer items every year. The growth rate of lawn industry is 25%.

The amalgamation of fashion designers and lawn, of course, has added prestige and design value to an already commercially successful product. Financially, there was really no need for such collaboration but with the tiny fashion industry hogging the style spotlight, it was a step taken for attention. And true to its intention, textile/designer collaborations have overshadowed publicity for eight months of a sartorial year. March through October, when Pakistan enjoys a lengthy summer and women turn to lawn as their staple fabric, ‘designer lawn’ is all they can talk about.

Characterization of the Market

Demand In Past & Present

Every season, summer, winter, autumn and spring has their own dressing trends but in Pakistan, the fashion industry especially in summer seasons seems to be unprecedented due to the launching of lawn prints. The lawn phobia is getting more intense from the past two years and that’s why lawn industry is flourishing by leaps and bonds. In Pakistan, The Summer season is also known as synonymous to a season of lawn brands. Once there was a time when there were only two or three designers who launch the lawn prints but now every next designer has or is planning to launch a range of lawn prints and each year, number of designers is increasing.

5 years back there were 3 to 4 well-known brands in the market from where customers used to shop but now the marketers entering into this industry. There are many well-known brands giving the premium products. People have more fashion sense and people spend more for better quality and appearance. Now day’s customers have more options and want to experiment different stuff with lawn.

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Internal Analysis

Situation Analysis & Specification of ObjectivesPeople are getting more fashion conscious and that is the reason the market size of unstitched industry is increasing day by day. Unstitched lawn is available in different forms that are plain lawn, embroidered lawn, printed lawn and lawn with frills. To enter and compete in market we have to meet our objectives strongly.

Goals and Objectives:Goal

To become the well-known brand by providing the royalty and class with comfort.

Objectives

To create the image of brand in the minds of customer. To maintain the quality of products. Maintain strong customer relations. Maintain the availability of brand. Become market leader in thesub-segment.

To meet these objectives we have to answer following questions

Who are the buyers of unstitchedlawn and what level income groups they belong?

Which of the market segments to be targeted?

What are the proportion sales of designer unstitched lawn in the local market? 

What is the growth rate of demand of unstitchedlawn in the market?

What are the distributions channels being followed in the market?

What are the major competitors for the proposed product?

What is the ratio of the profit margin for sellers?

What is the pattern of sales according to the geographical distribution of the country? 

What is the price consumers are willing to pay for different stock keeping units?

How the potential customers can be convinced?

We have analyzed our strategies according to our strengths and weaknesses which are as follows.

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Strength Our articles will be designed by well-known designer ALI XEESHAN. We will give the option of desigining stitching. We will provide the option of mixing the add-ons.

Weaknesses No brand visibility being a new market entrant Limited target market Lack of forward integration.

Strategic Analysis

After setting the objectives it is important to make strategic analysis before launching the unstitched lawn in the market. For that we will analyse the STP process.

SegmentationWe are selecting a small sub-segment of specialized product catering the needs of women who are conscious about fashion and willing to pay premium price for superior quality.

Profitability

The people of this segment are large enough to give premium prices and give large profit margins.

Responsiveness

It is the reaction and sensitivity to the marketing actions of the firm and its competitors. People respond to the new product and brand enter into the market and willingness to try new product.

Segmentation PortfolioThere are many segments exist in the market and capturing the major market size. To get the maximum returns and creating a brand image initially catering the small size of the market.

Selectingthe sub-segment giving the specialized product in the existing market of lawn industry. Will give the handmade embroidery and option of stitching will add the value to the product.

Average revenue per unit

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People are getting more conscious about fashion and quality and due to the increase in the per capita income people spend more money. The trends has been change and people spend more to look good in a particular society.

Attractivenessof the Segment

Unstitched lawn industry is worth of Rs 50 billion and with the increase in per capita income people are spending more money on suiting to get the premium quality.Lawn industry is capturing the 25% of the growth rate with no regulations.

Brand Preference

Females are more comfortable with brands and enjoys the royalty being loyal customer. We associate the name of Mix & Match with Ali Xeeshan to create an image and positioning in the mind of customer.

Social class

Upper and upper middle class is more conscious about branded and designer product and that is the reason we will collaborate with well-known designer. This will also create an image and reflection of the style of the designer.

For positioning of our brand we will use different strategies to identify on which basis our positioning is for about.

Point of DifferenceTo identify our point of difference that is to be different from your competitors, we have to figure out some questions which are as follows:

Why do people buy our product?

Why do people will purchase from us rather than our competitors?

Our point of difference will be the MIX & MATCH of lawn and silk with premium quality

Point of ParityTo identify the points of parity that is where our competitors are ahead us we need to ask few questions:

Where the competitors are counterattacking?

How to nullify the strengths of opposing brands?

How to focus on our point of difference so customers will still choose our brand?

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We have many competitors like SANA SAFINAZ, HSY, DEEPAK PARWANI and many more. Their point of difference is Brand name with the premium high end fashion products. To compete this we have to provide the premium lawn with the high end fashion.

Frame of ReferenceWhen considering our frame of reference that is the target audience in-built mental frame of reference our brand we need to ask following questions:

Is it one that our target audience will instantly grasp without explanation?

Is it right frame of reference?

Does it define competitors for our brand?

Our Frame of reference is Clothing

Reasons to BelieveTo identify how our customers will believe that our promises to deliver that benefits are true and credible.

Does it state simply the reason WHY the benefit is true? Does it cement the link between our product and our key benefit in the mind of our target?

To maintain the loyalty of our customers we have to deliver them the best quality products which will depict royalty and comfort.

To illustrate the positioning statement we will identify the key elements which are

Target customer

Their need

Their frame of reference

Our dramatic difference(s)

Our reason(s) to believe

Positioning StatementFor ladies who are brand conscious about clothing, Mix & Match will give the impression that gives experience of royalty and comfort which is worth of quality

Value propositionWe give premium quality with exclusive designs.

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Product DesignStrategyWe will provide the standardize product with the passage of time and demand we will improve and modify the existing product by adding extra features to the customer.

Product Growth StrategyBy implementing the new product and development strategy we will introduce the new products to the existing industry. We can also offer stitched ready to wear lawn to the customers.

Product ScopeWe will provide the single product and give the standardize size of 2.45 meter shirt, trouser and dopatta to the customer. If customer requires extra piece it will be provided on demand.

Price Strategy1. Going Rate

Offering the price which Sana Safinaz, HSY and other designers are giving

2. Premium pricing

We will give the option of stitching to the customers especially designed by Ali Xeeshan and that is our competitive advantage.

The product we are offering is premium because silk is a premium fabric. We will be collaborating with the designer ALI XEESHAN who stood among top

designers in the latest PFDC Fashion Week, one of the biggest fashion platforms in Pakistan.

We are following the PRICE/QUALITY relationship because we will be providing high quality products so we will charge premium price.

Promotion Strategy1. Fashion Shows

By conducting fashion shows highlight the product in the eyes of customer.

2. Bill Boards

Colorful billboards in porch commercial areas will help in creating the image of the brand and promote the lawn in an effective way

3. Promotional Magazines

Providing the promotional magazines to each customer.

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Distribution StrategyWe will select the selected retailing shops for the distribution of the product that is PFDC, Raja Sahib, Portia, Saleem Fabrics and LABELS.

Lawn Industry Research

To launch new product in the market we need to know the behavior of the customers. We need to study the criteria of choosing new brand of designer dresses. For this purpose we develop a questionnaire which is filled by 150 respondents living in Lahore. Then we put the results in SPSS to get the desired statistics and these statistics helps us in fulfilling the objective of our research.

Significance

The desire of many to look good and trendy for this people spend lot of money on designer clothes. People who once use to shop lawn for the sake of summer clothing only are now competing in a race of purchasing branded lawn. Shift from necessity to luxury can be felt across the country.

Research Objectives

The aim of this study is to investigate the behavior of consumers on designer garments and

designer series lawn. Consumers will be asked about different factors that affects their purchase

of designer garments and designer series lawn.

  The following are the objectives of this study:

To determine the preferences of consumers when purchasing clothes/ lawn.

To know if the attitude of consumers to branded clothes have changed.

To determine if the purchase of designer lawn depends on buyer's attitude on branded

garments.

To study that if there are any psychological reasons to spend money on branded clothes

or the user has quantified it.

Variables

Area of residence Age Profession Monthly house hold income Role of Advertisement

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Family pressure Affordability Style Comfort Inner satisfaction Peer pressure Social pressure Designs Colors Price

Data Sources

Data will be collected by primary data sources & secondary data sources. Primary data will be collected by questionnaires and secondary data will be collected through literature review & internet.

Population

In this research we will choose females of 18 & above age who purchases different kinds of lawn in summers.

Sample Size

We will take sample size of 150 females living in Lahore.

Sampling Unit

The unit of analyses used in this research is individual females who are housewives & professionals, students, working lady and others.

Analysis Result

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Out of 152 respondents, 53 respondents liked to buy Designer Lawn, while out of the rest 99 females 70 liked to buy Classic Lawn and else Imported Lawn.

Monthly Purchasing Budget

It tells the willingness to pay on designer lawn and it will help us identify the market demand to launch the new product.

Monthly Household Income * Average Expenditure on Single Suit Cross tabulation

Average Expenditure on Single Suit Total

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Rs. 1000 to 2000

Rs. 2000 to 3000

Rs. 3000 to 4000

Rs. 4000 to 5000

Rs. 5000 and Above

Monthly Household Income

UptoRs. 50,000

Count 17 9 5 3 4 38

% within Monthly Household Income

44.7% 23.7% 13.2% 7.9% 10.5% 100.0%

% within Average Expenditure on Single Suit

30.9% 20.5% 21.7% 25.0% 22.2% 25.0%

Rs. 50,000 to 75,000

Count 15 8 2 1 5 31

% within Monthly Household Income

48.4% 25.8% 6.5% 3.2% 16.1% 100.0%

% within Average Expenditure on Single Suit

27.3% 18.2% 8.7% 8.3% 27.8% 20.4%

Rs. 75,000 to100,00

Count 9 9 3 2 4 27

% within Monthly Household Income

33.3% 33.3% 11.1% 7.4% 14.8% 100.0%

% within Average Expenditure on Single Suit

16.4% 20.5% 13.0% 16.7% 22.2% 17.8%

Rs. Count 9 4 5 1 1 20

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100,000 to 125,000

% within Monthly Household Income

45.0% 20.0% 25.0% 5.0% 5.0% 100.0%

% within Average Expenditure on Single Suit

16.4% 9.1% 21.7% 8.3% 5.6% 13.2%

Rs. 125,000 to 150,000

Count 1 7 2 4 2 16

% within Monthly Household Income

6.2% 43.8% 12.5% 25.0% 12.5% 100.0%

% within Average Expenditure on Single Suit

1.8% 15.9% 8.7% 33.3% 11.1% 10.5%

more than Rs. 150,000

Count 4 7 6 1 2 20

% within Monthly Household Income

20.0% 35.0% 30.0% 5.0% 10.0% 100.0%

% within Average Expenditure on Single Suit

7.3% 15.9% 26.1% 8.3% 11.1% 13.2%

Total Count 55 44 23 12 18 152

% within Monthly Household Income

36.2% 28.9% 15.1% 7.9% 11.8% 100.0%

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% within Average Expenditure on Single Suit

100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Influence of Advertisement on Purchasing Behavior

From this data we can analyze that mostly

females

preferred a specific type of Lawn because of its Cuts and style. However if we consider that the

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style element is only for designer Lawn then the reasons of preference for classic and imported lawn can be: comfort, colors and durability, the reason is verified further in the report.

Execution of the Product

To launch a new product we want to examine the behavior of the consumers. The main purpose of this research is to investigate the behavior of consumers on designer garments and designer series lawn. After this we study their monthly budget spent on designer lawn and factors that influence their purchasing decision.

Product

We choose three piece unstitched lawn with silk dupattas and embroidery shirts with the mix and match of silk frills.

Brand Name

As trends changes with time but some of the things never change. Silk is considered the royalty and luxury and that is the reason we choose “MIX & MATCH” to our brand. The name itself represents its own positioning in the mind of customer.

Demographic Segmentation

Age

The age group we target is 18 and above.

Gender

Females

Income

High income group ranging from 70,000 and above

Education

Well educated females

Psychographic Segmentation

People who are more concerned about brands

Social Class

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Upper and upper middle class

Customer-Buying BehaviorFashion encompassed by the term dressing is a term commonly used to describe a style of clothing worn by most of people of a country. Averagely, a fashion remains popular for about 1-3 years and then is replaced by yet another fashion. But when it comes to women then the term fashion becomes a limitless thing. The quotation above clearly depicts the psyche of women about fashion.

Customers are more concerned about their looks and that is the reason need to target the special needs and interests of each individual female.

By offering handmade embroidery shirts with silk dupattas and to give value to the product wealso provide the option of stitching.

Brand AwarenessTo create the awareness among people it is important to have strong brand name and image in the mind of customers.Associating the product with silk material to give the feel and royalty to the customers. Silk is always in demand and people buy it to have the feel of comfort and luxury.

To create a brand image we associate our brand with designer and that will create a perception about the designs.

Brand Name

MIX & MATCH

Available Sizes

Different sizes available on demand but standard size is 2.45 meter shirt, 2.45 meter trouser and 2.45 meter dupata. For long shirts, froks and frills extra piece will be provided on demand.

Major Cities Initially Targeted

We will be launching our brand in Lahore and customers from all over Pakistan can buy online as well.

Internal Audit for lawn

We will discuss the 4ps of marketing

Features

We will provide unstitched 3 piece suit with the touch of silk in each dress. By providing silk dupattas, sleeves, or panels will create value to our product and it will also create differentiation from different products.All outfits at MIX & MATCH are decorated with exquisite and intricate

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embroidery and other embellishments while the contrasting dupattas with some of the dresses are eye-catching and add to the overall look of the fabric.

Quality

By giving the best possible quality to the customer will be the foremost priority. We will provide the fast color and wide range in color pallets.

PackagingPacked dresses in zip plastic bags with poster of stitched design and it will be hand over in a silk bag.

PricePrice is the major factor that affects the demand of the product. We are offering different prices to the customers according to the need and demand.

The price range will start from the following

Silk Dupatta Rs.1500 Lawn Shirt Rs.2500 Trouser Rs. 900 Frills Rs. 1000

PlaceWe will start through different retailers. We will not start with our own outlet currently. The majority retailers will be

Saleem Fabrics Raja Sahib PFDC Mall One Labels Portia

Distribution Channel We will use the multiple distribution channels as we will have multiple retailers. We will start from only LAHORE and other customers can reach us through internet

from all over Pakistan. We will exhibit our collection in 4 major stores mentioned above.

PromotionFor the launching of our brand we will start from the exhibition in LABELS and fashion shows like PFDC fashion week. As the top designers launch with the exhibition we will also launch and other celebrities and people from fashion world will be invited. When customers will see their favorite celebrities associated with our brand they will also try to associate with the same brand.

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Moreover this will create the hype of brand and it will be considered as a high fashion end premium brand.

Advertising plansWe will advertise our product through billboards, but the majority of our advertising will be through internet using specifically the social media.

DifferentiationWe are offering handmade embroidery on lawn shirts with silkdupattas and silk frills. Moreover we will have an option of stitching for our customers and they can send their measurements online as well through our official website in which measurement charts are uploaded.

PositioningWe are for those customers who want to beat the heat with the plain soft fabric of lawn shirts and to add royalty they want silk dupattas. Mostly the working women and university going students want a semi-formal dress which is something more than an ordinary lawn dresses. The handmade embroidery and the silk dupattas add the value in the product.

Value PrepositionMix & MATCH the royalty with comfort.

Brand Extension Plan of 4P’s

We will use different strategies for the extension of our brands in next 5 years.

Leader Strategy for Expanding Market

We will adopt this strategy after seeing the response of the customers. To increase the usage of the product we will give the extra frills matching to the lawn and opportunity for the customers to get more piece of shirt is less price.

Product Development Strategy

By intensive growing in the current business we will adopt the product development strategy. In this strategy we will introduce wide range of material in lawn and silk. By mix and matching lawn and silk, or by giving the option of stitched clothes to the customers.

Plans for Five Years

Year 1 objective

Our year 1 objective is to enter the market and to challenge the already well established brands.

Year 2 objective

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We want to have the maximum market share and to be the leader in the sub-segment of specialized products.

Year 3 Objective

We will introduce our own outlets in Lahore and will introduce other fabrics as well that will be linen with silk match.

Year 4 Objective

We will launch our outlets in other metro cities as well like Karachi, Islamabad.

Year 5 objective

We will expand our brand to the international level.

The main objective of our brand will be to achieve the market share and profitability. We are entering the market as a specialized product catering segment and we will be challenger in this sub segment because in this segment already there are Big Fishes and we have to compete with them. Customers always go for the quality products and value added services. We will be providing them high quality products with the value added service of stitching option which will be designed by ALI XEESHAN.

Financials

Projected Income Statement

PROFIT & LOSS ACCOUNT

2017 2016 2015 2014 2013

Sales220,114,12

5200,103,75

0181,912,50

0173,250,00

0165,000,00

0Cost of sales 66,034,238 60,031,125 63,669,375 69,300,000 66,000,000

Gross profit / (loss)154,079,88

8140,072,62

5118,243,12

5103,950,00

0 99,000,000

Distribution and marketing costs 88,045,650 80,041,500 90,956,250 86,625,000 82,500,000Administrative expenses 11,005,706 10,005,188 9,095,625 17,325,000 16,500,000Other operating expenses 11,005,706 10,005,188 9,095,625 8,662,500 8,250,000

110,057,063

100,051,875

109,147,500

112,612,500

107,250,000

Loss/Profit from operations 44,022,825 40,020,750 9,095,625 -8,662,500 -8,250,000

Taxation 15,407,989 14,007,263 3,183,469 -3,031,875 -2,887,500

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Loss/Profit after taxation 28,614,836 26,013,488 5,912,156 -5,630,625 -5,362,500

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Projected Balance Sheet

BALANCE SHEET

2017 2016 2015 2014 2013EQUITY AND LIABILITIESTotal Equity 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000Reserves 26,013,488 5,912,156 -5,630,625 -5,362,500Accumulated loss

126,013,488 105,912,156 94,369,375 94,637,500 100,000,000

NON-CURRENT LIABILITIES

Long-term finances - secured

CURRENT LIABILITIES

Current portion of long term financesShort term running finance - securedMark-up accrued on borrowingsTrade and other payables 18642093 1,168,156 22,522,500 26,812,500 20,000

18642093 1168156 22522500 26812500 20000

Total Liabilities 18642093 1168156 22522500 26812500 20000

Total EQUITY AND LIABILITIES 144,655,581107,080,31

2 116,891,875 121,450,000 100,020,000

ASSETS

NON-CURRENT ASSETSProperty, plant and equipment 12,155,063 11,576,250 11,025,000 10,500,000 10,000,000Intangible assets 607,753 578,813 551,250 525,000 500,000Capital work-in-progress 24,310,125 23,152,500 22,050,000 21,000,000 20,000,000Long term loans and advances 13,513,500 18,232,500Long term depositsDeferred taxation

37,072,941 35,307,563 47,139,750 50,257,500 30,500,000

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CURRENT ASSETSStores and spares 2,135,405 2,315,250 2,205,000 2,100,000 2,000,000Stock-in-trade 12,155,063 11,576,250 11,025,000 10,500,000 10,000,000Trade debts 1397125 6092500 7500000Advances, prepayments and other receivables 32516860 20000Cash and bank balances 60,775,313 57,881,250 55,125,000 52,500,000 50,000,000

107,582,640 71,772,750 69,752,125 71,192,500 69,520,000

Total Assets 144,655,581107,080,31

3 116,891,875 121,450,000 100,020,000

Financial Ratios

FINANCIAL RATIOS

2017 2016 2015 2014 2013Liquidity RatiosCurrent Ratio 5.771 61.441 3.097 2.655 3476.000Quick Ratio 5.004 49.549 2.510 2.185 2876.000

Leverage RatioDebt to total Assets Ratio 0.129 0.011 0.193 0.221 0.000Debt to Equity Ratio 0.148 0.011 0.239 0.283 0.000Long term Debt to Equity Ratio 0.000 0.000 0.000 0.000 0.000

Activity RatioInventory Turnover 18.109 17.286 16.500 16.500 16.500Fixed Assets Turnover 5.937 5.667 3.859 3.447 5.410Total Assets Turnover 1.522 1.869 1.556 1.427 1.650

Profitability RatioGross Profit Margin 0.700 0.700 0.650 0.600 0.600Operating Profit Margin 0.200 0.200 0.050 -0.050 -0.050Net Profit Margin 0.130 0.130 0.033 -0.033 -0.033Return on Total Assets (ROA) 0.198 0.243 0.051 -0.046 -0.054Return on Stockholders’ Equity (ROE) 0.227 0.246 0.063 -0.059 -0.054

Growth RatiosSales 10.00% 10.00% 5.00% 5.00% N/A

31

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