ACKNOWLEDEGEMENT

I offer most humble thanks to Almighty ALLAH who is the entire source of all Knowledge & wisdom to mankind, for bestowing upon me the sense of inquiry and potentials for successful accomplishment of this piece of work..

It is my privilege to express my sincere gratitude to my respected hearted and kind hearted worthy teacher MR. SHAMIM AHMED for his valuable support and encouragement that he has offered.

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TABLE OF CONTENT S.NO 1 2 3 4 DESCRIPTION ACKNOWLEDGEMENT TABLE OF CONTENT EXECUTIVE SUMMARY SITUATION ANALYSIS Category/Competitor Definition Category Analysis Company and Competitor Analysis Customer Analysis Planning Assumptions Proposed Structure of the Organization Market potential of the bags OBJECTIVES Financial Objectives Marketing Objectives Social Objectives Customer-Oreinted Objectives MARKETING STRATEGIES PRODUCT/BRAND STRATEGY Customers Target(s) Competitors Target(s)2

PAGE NO 1 2 4 4 4 4 4 5 5 6 6 7 7 7 7 7 8 8 8 9

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6 7

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10 11

Product/Services Features Core Strategy SUPPORTING MARKETING PROGRAM Advertising Promotions Sales Price Channels Customers Management Activities Website Marketing Research Partnership/Joint Ventures Distribution FINANCIAL DOCUMENTS Proforma Statements Income Statement Proforma Income Statement Cash Forecast on monthly Basis Cash flows Balance Sheet MONITOR AND CONTROL Secondry Data Primary Data CONTINGENCY PLAN

9 9 9 9 10 10 10 10 10 10 11 11 11 11 13 14 15 16 17 18 18 18 18

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MARKETING PLAN OF ALI SCHOOL BAGS MANUFACTURING COMPANY EXECUTIVE SUMMARY:The name of the company is ALI BAGS MANUFACURING COMPANY and it will be sole proprietorship business. It deals with the manufacturing of bags and their packaging. The management level employees will be hired on permanet basis and there will be a contractual employees hired on fixed contract term basis. The total amount of finance needed for the business is 20 million out of which 10 million will be injected from the side of owner and the rest will be obtained from banks and the term and conditions of payment will be decided accordingly.

SITUATION ANALYSIS:The situation analysis contains data and concomitant so vital to developing sound marketing strategies. Situation Analysis is the homework part of marketing plan. It is comprised of six parts which are as follow. 1) Category/ Competitor definition: The bags will be placed in the school stuff category.My competitors will be mainly the companies which make the school staff. My main competitor is adnan and co. 2) Category analysis: The total GDP of our country is 109 billion and the contribution of the school staff companies is 10 million and seeing the current market situation demand for the school stuff is very high. 3) Company and Competitor analysis:

The construction of the company would start from January 2007 and will be completed in May 2007.The machinery will be imported from china .The company will start production in June2007. The company will launch its products in August 2007.

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The price of bags will be around Rs 500. 4) Customer analysis: As children are mostly influenced by the quality of bags and there design. So ALI BAGS MANUFACURING COMPANY will use high level of technology not only to influence school children but also the students of colleges and universities. Mostly students like small bags so the company will introduce family size bags which includes small, large and large size bags. Children are also influenced by the color of the bags, So the company will also keep a focus on it. 5) PLANNING ASSUMPTIONS: Following are some of the assumptions regarding the planning. The company will try to capture the 20% market share. The company will open its outlets at different places i.e. Gulshan-e-Iqbal, Gulistan-e-Jauhar, North Karachi. The company will try to ensure the best utilization of raw material, machinery and other equipments. The company will use the television channels and bill boards for the advertisement of its products. The companys target will be schools, colleges and universities students.

The company will not do more production in the months of September-November and there will be more production in the months of December-January in order to meet customers demand. For the supply of raw material the creditibility of suppliers will assessed and the list of approved suppliers will be maintained. On the basis of its progress the company will introduce the online purchasing system. The agreeement will be done with suppliers for fixed term.

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Proposed Structure of the Organization: This firm owned by Sarwar Ali would be a sole proprietor business. It would be managed and run by the owner only. The owner Sarwar Ali, would have full authority over the business. Every issue that needs to be signed would require his permission and signature. . The hierarchy is flat and it helps to authorize more control on the firm and the sub-ordinates. The firm includes a CEO, managing director, workers etc.

CEO

MANAGING DIRECTOR

Manufacturing Manager

Packaging Manager

Workers

Workers

MARKET POTENTIAL OF SCHOOL BAGS:Total population = 37258178 Two percent of the population uses the bags People who use the bags = 37258178*1%= 372581.78 Quantity = Number of consumers* Frequency of consumption* quantity = = 1 1 * 1 * 1

Market potential = price * quantity * number of consumers 6

= 500 *

1

* 372581.78

= 186290890 Rs

OBJECTIVES:

1) Financial Objectives: The financial objective of the company as like any other company is to increase its profitability, which hence needs high revenues and lower cost of production

2) Marketing Objectives: We will try to be a market oreinted organization with the main focus on the fulfillment of customers needs. Our product (bags) have the objective to achieve maximum market share as possible. To achieve this growth in market share our products are innovative to grow the market and provide consumers with new products that would develop interest and maintain brand loyalty. 3) Social Objectives: The company will contribute toward social obligations such as giving contributions in charities, development of school colleges and hospitals. 4) Customer-Oriented Objectives: The company will also try satisfy the customer needs with the quality products and for that company will opened a customer service center to deal with the complaints of the customers in order to know what really customer wants and how can the company satisfies their needs in the best possible way.

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MARKETING STRATEGIES:Different modes of marketing will be tried to make our marketing strategies more effective. Following are some of the marketing strategies which the company will use.

Advertisements are used to promote the product, to increase awareness among the population. To remind consumers of the product. All these purposes of advertisements will have a direct affect on sales. Promotions strategies such as price offs and instant gifts are some examples which will encourage people to buy our bags and gain much more than the satisfaction of using those bags but instead gain a lot more and worth much more than the bags of the competitors.

The company will launch a structured long-term plan to optimize its presence in the wholesale market through initiating a loyalty program for wholesalers across the country. There are different kinds of consumers. In the rural areas the masses living in poverty do not use bags frequently. To them using a bag is very expensive instead they prefer to their books and other things in hands. So the company will try to break this trend by sending sales representatives to different areas or through radio which will boost sales, and hence profit and market share.

PRODUCT/ BRAND STRATEGY:1) Customer target(s): The target customers of our products/ brand are children below ten years up to the people of schools, colleges and universities.

2) Competitor target(s):

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The company will target the competitor by launching best strategy as compared to them and will try to snatch market share from them as much as possible. The company will try different channels to advertise its product which the competitors might not have used. 3) Product/ Service Features: Following are some of the features of the product. 4) Three to four pockets. Double folded. Black colour. Zips of good quality. Comic characters such as of Miky Mouse, Tom and Jerry etc.

Core Strategy:

In order attract customers the differential advantage will be the quality of the bags.

SUPPORTING MARKETING PROGRAM: 1) Advertising:The company will advertise its products twice to thrice a day on various television channels and on two to three news papers. 2) Promotion: Promotion means how you promote your products. Following are some of the ways company will use to promote its products. Advertisement on television Giving free samples to consumers. Door to door selling.

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3) Sales: To increase the sales of the product company will use the following techniques. 4) Discounts offer Buy on get one free Balloting With every large size bag, a small will be free

Price: The prices of the bags will be Rs 500 for all kinds of customers.

5) Channels: The company will use the following channels to advertise its products. Television channels. Newspapers. Bill boards.

6) Customer Management Activities: To manage the customers company will maintained a call center in order to remain in touch with its customers and the company will try to handle the customer related matters in efficient manner. 7) Website: The company will also maintained a website www.alibagsmanu.com to remain in touch with its customers. The website will be updated with the product brochures, online submission of customers complaints and the complete address of the company

8) Marketing Research: The will company will conduct a research on yearly basis and before launching a product, it will get reviews from customers to kwon exactly what they want and how can they be benefited from our products.

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9) Partnership/Joint Ventures: Based on the performance the company will make partnerships with other companies in opening small projects. 10) Distribution: The company will use the extensive distribution ( available at its all outlets) to distribute its products.

FINANCIAL DOCUMENTS:Pro forma statements: Financial planning is a key factor for developing a new venture; first we will start with the sales forecasting of initial twelve months for the year 2008. The figures are in thousand (000s).

Jan Feb Mar Apr May JunProjected sales (units) Desired ending Inv. Available for sale Less: Beginning Inventory Total Purchase Required

Jul 100 8 108 13

Aug 105 5 110 15

Sep 112 6 118 18

Oct Nov 120 10 130 26 125 7 132 35

Dec 135 5 140 38

50 10 60 2

55 10 65 5

62 7 69 8

69 3 72 9

75 4 79 10

85 3 88 12

58

60

61

63

69

76

95

95

110

104

97

102

Total Production/Purchased is calculated by the following formula:

Total Production = Projected Sale+ Ending Inventory- Beginning Inventory11

Following is the sales budget schedule for 3 years as per demand by the customers. 2009 1095 80 1175 192 983 2010 1098 82 1180 194 986 2011 1102 85 1187 196 991

Projected sales (units) Desired ending Inv. Available for sale Less:Beginning Inventory Total Purchase required

Now on the bases of the sale forecast we can predict other financial statements. Following is the monthly income statements of the company.

INCOME STATEMENT 2008 (000s)

Jan Sales 65

Feb 75

Mar 85

Apr 95

May 110

Jun 118

Jul 127

Aug 135

Sept 143

Oct 150

Nov 160

Dec 175

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Less: CGS G. Profit S/E Advertising Salaries Off. Supplies Utilities Interest Depreciation Others Exp Total O/E EBT Taxes (3.5%) Net Income

25 40 4.5 5 10 3.6 4.5 5 1.2 2.5 36.3 3.7 0.1295 3.5705

27 48 5 5.5 10 5 5.5 5 1.2 2.8 40 8 0.28 7.72

28 57 5.2 5.8 10.5 5.5 6 5 1.2 3.5 42.7 14.3 0.5005 13.7995

28 67 5.5 6.3 11 5.7 6.3 5 1.2 4 45 22 0.77 21.23

29 81 6.2 7.3 11.5 6.2 7.5 5 1.2 4.3 49.2 31.8 1.13 30.67

29 89 6.8 7.9 11.5 7 8.3 5 1.2 4.3 52 37 1.295 35.705

30 97 7.5 8.6 11.5 7.8 9 5 1.2 5 55.6 41.4 1.449 39.951

31 104 7.9 9.6 12 8.5 9.5 5 1.2 5.5 59.2 44.8 1.568 43.232

32 111 8.2 10.2 12.5 9.5 9.5 5 1.2 5.8 61.9 49.1 1.7185 47.3815

33 117 8.8 11 13 10.5 10 5 1.2 6.3 65.8 51.2 1.792 49.408

33 127 9.6 11.3 14 11.8 10.3 5 1.2 7 70.2 56.8 1.988 54.812

34 141 10 11.9 14 12.6 10.8 5 1.2 7.3 72.8 68.2 2.387 65.813

PROFORMA INCOME STATEMENT (000s)2009 1440 360 1080 2010 1450 364 1086 2011 1469 368 1101

Sales Less: CGS G. Profit

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S/E Advertising Exp Salaries Office Supplies Utilities Interest Depreciation Others Total O/E EBT Taxes (3.5%) Net Income

88 104 144.5 95.3 98.9 63.5 15.5 59.3 668 412 14.42 397.58

88.2 104.3 145 95.8 99.5 63.5 15.8 59.7 671.5 414.5 14.5075 399.925

90.8 105 146 96 101 65 16.1 61 680.8 420.2 14.707 405.493

CASH FORECAST ON MONTHLY BASIS FOR 2008 (000s)

Jan Sales Payments: Purchases Selling Expense 55 20 4.5

Feb 60 22 5

Mar 68 23 5.2

Apr 75 23 5.5

May 85 24 6.2

Jun 97 25 6.8

Jul 109 27 7.5

Aug 120 28 7.9

Sept 132 30 8.2

Oct 138 33 8.8

Nov 146 33 9.6

Dec 155 35 10

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Advertising Salaries Off. Supplies Rent expenses Interest Expense Depreciation Others T-Payments Cash Flow

5 10 3.6 4.5 5 1.2 2.5 56.3 (1.3)

5.5 10 5 5.5 5 1.2 2.8 62 (2)

5.8 10.5 5.5 6 5 1.2 3.5 65.7 2.3

6.3 11 5.7 6.3 5 1.2 4 68 7

7.3 11.5 6.2 7.5 5 1.2 4.3 73.2 11.8

7.9 11.5 7 8.3 5 1.2 4.3 77 20

8.6 11.5 7.8 9 5 1.2 5 82.6 26.4

9.6 12 8.5 9.5 5 1.2 5.5 87.2 32.8

10.2 12.5 9.5 9.5 5 1.2 5.8 91.9 40.1

11 13 10.5 10 5 1.2 6.3 98.8 39.2

11.3 14 11.8 10.3 5 1.2 7 103.2 42.8

11.9 14 12.6 10.8 5 1.2 7.3 107. 8 47.2

Beg. Bal

2,000

1998.7

1996.7

1999

2006

2017.8

2037.8

2064.2

2097

2137.1

2176.3

2219 .1 2266 .3

End. Bal

1998.7

1996.7

1999

2006

2017.8

2037.8

2064.2

2097

2137.1

2176.3

2219.1

CASH FLOW (000s)2009 1242 325 85 101 142 94 97.6 61 14.8 58.9 (979.3) 262.7 2010 1252 327 86 102 142.8 94.5 98 61.5 15.3 60.5 (987.6) 264.4 2011 1265 331 87 103 143.5 95.2 98.5 62.3 15.9 61.2 (997) 268

Sales Less: CGS S/E Advertising Salaries Office Supplies Utilities Interest Depreciation Others Total O/E EBT

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Taxes (3.5%) Net Income Beginning Balance Ending Balance

(9.1945) 253.50 2266.3 2519.8

(9.254) 255.146 2519.8 2774.946

(9.38) 258.62 2774.946 3033.566

BALANCE SHEET (000s)

2008 ASSETS C. Assets Cash Acc. Receivables Inventory Fixed Assets Equipment Less: Depreciation T. Assets LIA & O/E Account Payable L.T.D 2266.3 67.69 93.7

2009

2010

2011

2519.8 82.19 94

2774.946 97.09 94.5

3033.566 112.29 95.2

300 (14.4) 2713.29 300 1000

300 (29.2) 2966.79 300 1000

300 (44.6) 3221.936 300 1000

300 (60.5) 3480.556 300 1000

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O/E Capital T/ O.E

1413.29 2713.29

1666.79 2966.79

1921.936 3221.936

2180.556 3480.556

BREAK-EVEN ANALYSISFixed cost= 306000 Variable Cost=7 SP=13Total Fixed Cost / (Selling Price Variable cost/unit)

306000/(13-7) Quantity= 51000 units

MONITOR AND CONTROL:

1) Secondary Data: For secondary data company will use the websites, different magazines and newspapers and from different channels. 2) Primary Data: For the primary data company will ask customers to give their views about its products 17

to know what really customers wants and for the primary data company will also conduct a survey from time to time to know about the demand of its products among the customers.

CONTINGENCY PLAN:In order to take the advantage of any opportunity or to meet the customer demand in future the company will maintain a safety cushion for the cash needed and store house in order to store the bags in the periods when there will lesser demand

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