Market Analysis

• Market segmentation• Geographic• we will divide the Islamabad city into different

segments according to areas, states, regions and markets.

• Demographic• we will divide people according to Age, Income,

Social Class, Occupation and their life cycle.

• Psychographic• we will divide people into social class, life style

and personality.• Upper class• Upper middle class• Middle class• Lower middle class• Lower class

• Behavioral• Behavioral segmentation divides buyers into

groups based on their knowledge, attitude, uses or responses to products. It is done on the basis of occasions, benefits, user status, user rates, loyalty and attitude towards the product.

THE ECONOMICS OF BUSINESS

• Cost• While setting the price we will keep in mind

the cost relating to our product i.e. variable cost, fixed cost and total cost.

Our prices schedule

Product Quantity in pieces Price in Rs.

Flavored Bread 8 piece Rs. 22

Flavored Bread 14 piece Rs. 35

Flavored Bread 18 piece Rs. 55

• Pricing Objectives• market share leadership.• product quality leadership.

Resource Allocation

• Total Investment: 8 million• Fixed Cost: • Machinery 2.6 million• Vehicles 1.0 million• Furniture & fixture 0.4 million• Variable Cost:• Raw material 1.5 million• Labor + utilities bills + Rent 1.7 million • Advertising + Misc. 0.8 million

Flavored breadExpected Income statement

As on 31st January• Particulars Rs.• Sales expected 4095000• Less:• Sales discount & allowances 370500• Net Sales 3724500• Less:• Cost of goods sold 2695000• Gross Profit 1029500• Tax @ 16 % 164720• Net income 864780