REVOLVING CHAIRS COMFORTABLE

COMPANY
MARKETING PLAN

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

…………………………...ATTOCK……………………………
MARKETING PLAN

Submitted To.

Submitted By: AMJAD Khan

Reg # CIIT/FA14-BBS-002/ATK

Date:

25th May 2015

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

ATTOCK
 Dedication
We are dedicating this project to our beloved parents and respected teachers
who pray for us throughout our life in different occasions to perform our work.
Also we are thankful to our friends those who guide us in the hour of need to
perform our work effectively.
 Acknowledgement
All Praise and thank full to Allah, the Lord of the universe, who bless us the
capability to complete our project on Revolving chairs comfortable
Company.

It is our most pleasurable duty to express over deem sense of gratitude to our
teacher Mam Farweeda under whose guidance and corporation we are in a
position to carry out this task his sincere devotion and concern with our project
work will always be a source of inspiration for us indeed we do not find words to
thanks .

Last but not the least we are extending our thanks to affectionate and loving
parents whose love and sincerity have created indelible impression in our life.
 TABEL OF CONTENT
1.0 Executive Summary-------------------------------------------------------------------1
2.0 Market Situation analysis------------------------------------------------------------ 1
2.1 Market Summary-------------------------------------------------------------------- 2
2.1.1 Target Market------------------------------------------------------------------- 2
2.1.1 Markets needs--------------------------------------------------------------- 3
2.1.2 Market Demand----------------------------------------------------------- 3
2.2 SOWT Analysis-------------------------------------------------------------------------3
2.2.1 Strength----------------------------------------------------------------------------- 3
2.2.2 Weakness------------------------------------------------------------------------ 4
2.2.3 Opportunities------------------------------------------------------------------4
2.2.4 Threats---------------------------------------------------------------------- 4
2.3 Competition------------------------------------------------------------------------------5
2.4 Product Offering------------------------------------------------------------------------5
2.5 Key to Success------------------------------------------------------------------------- 7
2.5.1 Crictal success Factor----------------------------------------------------------- 7
3.0 Marketing strategies-------------------------------------------------------------------7
3.1 Mission statement------------------------------------------------------------------- 9
3.2 Vision statement -------------------------------------------------------------- 9
3.3 Marketing objectives-----------------------------------------------------------9
3.4 Financial objectives--------------------------------------------------------- 9
4.0 Financial forecasting----------------------------------------------------------------- 10
1.0 Executive summary:

We introduced a new Revolving comfortable chairs making company in the Attock

region. Company is offering New Revolving comfortable chairs for different
classes of society with having different source of income. We are establishing this
in Attock because of interest level and high demand. We want to entertain those
people of market who have willingness and interest for this Revolving comfortable
chairs but their purchasing power is not enough so we want to fill this gap for such
type of people So that they can get access to a quality product in reasonable price.

We are new in the market and have enough capital to invest so we have a lot of
opportunities in that market we can expand our company for this we launch our
more outlets in other cities of the country although we have a big direct and
indirect competitors.

We are offering an New Revolving comfortable chairs on a price of Rs. 40000 per
chairs and our targeted market is Attock. We are promoting our product through
advertising on v cables and we are also using print media i.e. newspapers,
pamphlets and by placing different banners on the main places of the Attock. We
are also doing the direct marketing through phone calls etc.

2.0 Market situation analysis:

We are launching New Revolving comfortable chairs in Attock, and we are also
going to face the competition. There are different competitors which we have to
complete
.
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We observe the market of Attock and also interact with different people of Attock
who belong to urban and rural places from there we conclude that they have a deep
interest for an New Revolving comfortable chairs and demand of New Revolving
comfortable chairs is high in Attock.

By surveying we also conclude that a large number of people who can’t afford a
high prices of others types chairs but they have a deep interest for that and we can
earn a good market share. So by putting this thing in front of us we launched our
products in different prices and multiple sizes. A large number of peoples who
can’t afford that can easily get access to that to make their life happier in different
occasions with our product.

So that who can’t afford high prices can get same better quality product in
smaller size with low price. As we know that people of Attock are very cultural
they celebrate the different religious and cultural occasions with full enthusiasm
and preparation .

2.1 Market summary:

The market summary is as follow

2.1.1 Target market:

The three targets for our product are OLD ages people,govt.Departments,
and special for those whos have back bones pine ,lage and so on. The
current survey shows us 60% people become dead without proper care of
pin and the top level management feeling not good in other types of chairs.

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 2.1.2 Markets needs:
The need of market is that they want a good quality product on a reasonable
price and they can easily access to the product whenever they want to.
2.1.3 Market demand:
People of Attock are mostly government employee and and some of them are
running their own business mean that they are sole proprietor and some of
them are pay taking person they are willing to buy that types of product but
their ability to purchase restrict them and we are offering the product at that
price so that every person can easily purchase it. The demand of our product
is good in the market.

2.2 SWOT Analysis:

In this we discuss the strength, weaknesses, opportunities and threats.

2.2.1 Strength:

 Quality of our product

 Reasonable price
 Capital

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 Specialized staff
 Advanced technology

2.2.2 Weaknesses:

 Distribution channel
 Less focused on advertisement campaign
 New brand name

2.2.3 Opportunities:

 Line extension
 Target market
 Increasing awareness of health issues

2.2.4 Threats:

 Competitors
 Unstable political situation

 Future entries in same categories of product

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2.3 Competition:

We are introducing an New Revolving comfortablechairs in the market with a

unique care & satisfaction and good quality. We have many competitors in the
market with which we are competing .

2.4 Product offering:

Our company being a new entity in the market is offering a wide range of frozen
desserts keeping in view the needs and wants of the market currently our focus is on
“proper rest

purchasing in bulk e.g. Hotels restaurants banquet halls etc.

Cool & cool diet is a low calories sugar free ice-cream offering that best fits for the
customer suffering from diabetes and also for health conscious people. Due to
increasing awareness about health related issues need for this sort of product was a
good opportunity to hit upon.

Although there are other products of the same category but there still exists a room
to play in the market due to gap between current products in market and customer
needs.

Different flavors of the ice cream are

1
0
2.5 Key to success:

The key which play an important in success is the management of the company
which is fully committed and hardworking with the good knowledge of the market.
Formal structure of the company to access the targets in an organized way is another
key to success.
2.5.1 Critical success factor:

Critical factors which play an important role in the success.

Are

 proper care
 comfortable
 Different sizes
 Technology
 High quality

All of these together play their role in the success of a product. That Type of
chair always attract the customer and also help in retaining them and when the
proper satisfaction is given with the high quality and at reasonable prices in the
different variety of sizes then it will definitely attract the customer attention and
they will buy our product and our market share will increase along with the
goodwill.

3.0 Marketing strategies:

We are introducing an New Revolving comfortable chairs in the market of Attock.

We maintain the quality of the product and its standard, product is checked by
various worker and the supervisors. Our comfortable chairs is simply designed in a
shape. The packaging of our New Revolving comfortable chairs is quite attractive.

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We are launching our product in Attock because of the gap that people of the
Attock have middle income and a big desire for this chair. Our distribution channel is

Manufacturer Distributor Retailer Customer

The ways that we will be using for promotion are as follow:

A. Advertising
B. Direct marketing
A. Advertising:
We are going to communicate with the local marketing segment i.e.
Attock so we will prefer to use different media that are
1. Electronic media
2. Print media
1. Electronic media:
V cable network is the best electronic media we will firstly prefer to
use for promotion of our product.
We are launching our product in Attock, so it will be very best electronic
media to use this media. Mostly people use this media and it is easily
accessed by the people.
2. Print media :
Print media that we will use for promotion of our product consist
mainly of newspaper; may be some pamphlets also might be used.

Newspaper:

The news papers in which we will advertise our product include;

 The daily- “jang”
 The daily-“The news”
 The daily “khabrain”
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 b. Direct marketing:

In direct marketing we will send different messages to the people and call
them e-mail them for the awareness of our product
3.1 Mission statement:

“We provide you a satisfaction of this product. Best services that appeals
to reasonable price and health conscious costumers and entertain them with
proper satisfaction, to fulfill even the unexpressed wishes and needs of
our customers”
3.2 Vision statement:
“To be a best quality producer among the others manufacturer of
Pakistan”
3.3 Marketing objectives:
 To facilitate customer according to reasonable
rates.
 To achieve both short term and long term financial objectives by
providing better quality and better services.
 To make a long term relationship with customer.
 We will insist on demonstrating clear leadership and innovation in
sustaining the environment continually collaborating with our suppliers.
 We will develop new alliances with uniquely qualified partners to tap into
emerging growth opportunities and new routes to market.

3.4 Financial objectives:

The goal of this marketing plan is to outline the marketing strategies,
tactics, and programs that will make the vision outlined in the “New
revolving comfortable chairs marketing plan a reality in next few years.
The vision outlined in the marketing plan includes estimated sales for first
year is Rs. 120000000 with the figure increasing 10% annually.
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4.0 Financial forecasting:

4.1 Sales forecast:

New revolving
comfortable chairs
company

Total population in Attock 5903500

Classes targeted in Attock

“A” class @ 11% 227284.8

“B” class @ 20% 413245

“ C” cl a ss @ 35 % 723178.8

Total 66% 1363209

According to the previous sales trends in the related industry, the annual projected
sales of

Rs. 120000000.

Total

Quantity to be produced according to the population

Selling price per 1 liter Rs. 100

Expected sales for the month 100000 × 100

= Rs. 10000000

Sales for the year 10000000 × 12

= Rs. 120000000

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 Financial Analysis
What is Financial Analysis?
Financial analysis is the process of evaluating businesses, projects, budgets and other finance-related
entities to determine their performance and suitability. Typically, financial analysis is used to analyze
whether an entity is stable, solvent, liquid or profitable enough to warrant a monetary investment.
When looking at a specific company, a financial analyst conducts analysis by focusing on the income
statement, balance sheet and cash flow statement.

Techniques :
1)balance sheet
2)income statement
3) statement of cash flows

Balance Sheet:
A Balance Sheet is a statement of the financial position of a business which states the assets,
liabilities, and owners' equity at a particular point in time. In other words, the balance sheet illustrates
your business's net worth.

The balance sheet is the most important of the three main financial statements used to illustrate the
financial health of a business.

Assets (2017) (2016)

Current asset (Rupees) (Rupees)

Cash(on hand) 300000 200000
Account recieveable(from 200000 150000
customer)
Prepaid rent 500000 400000
Inentory 900000 600000
Total Current assets 1900000 1350000
Fixed Assets
Land and Building 3000000 2200000
Equipment 920000 700000
Copy right 100000 ------
Total fixed 4020000 2900000
Total Assets 5920000 4250000
Current Liabilities
Amount payable(for raw 500000 300000
material and other)
Wages payable 800000 500000
Office rent ---- -----
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Utilities 240000 140000
Medical payable 50000 200000
Tax payable 200000 100000
Total current Liabilities 1790000 1240000
Total long term Liabilities 2800000 2250000
Total Liabilities 4590000 3490000
Equity
Common stock 976000 540000
Retained earning 354000 220000
Total owner equity 1330000 4250000

Income statement:
The income statement, also known as the profit and loss (P&L) statement, is the financial statement
that depicts the revenues, expenses and net income generated by an organization over a specific
period of time. It is one of the most heavily scrutinized financial statements issued by every
organization. And though the data contained within this document is relatively simple, there is a great
deal of useful information that can be garnered from it to help assess a firm's historical financial
performance and develop an estimate of its future prospects. Because of this, it is critical for users to
have a sound understanding of the story every income statement is trying to tell.

Income statement (2017) (2016)

Total sales 12000000 8000000

Cost of sales 8000000 5000000
Gross Profit 4000000 3000000
Expenses
Wages 800000 500000
Advertising 300000 140000
Utilities 240000 140000
Insurance 500000 300000
Total Expenses 1840000 1080000
Tax(12%) 220800 230400
Net income after tax 1619200 1689600

Note:(All calculation of this report for year 2017)

Gross profit Margin=(gross profit/sales)*100=33.33%

Net profit Margin=(Net income/sales)*100=13.4%

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Return on Assest=( Net income/total Assest)*100=27.3%

Cash Flow Statement:

In financial accounting, a cash flow statement, also known as statement of cash flows,is a financial
statement that shows how changes in balance sheet accounts and income affect cash and cash
equivalents, and breaks the analysis down to operating, investing and financing activities. Essentially,
the cash flow statement is concerned with the flow of cash in and out of the business. The statement
captures both the current operating results and the accompanying changes in the balance sheet. As an
analytical tool, the statement of cash flows is useful in determining the short-term viability of a
company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is
the International Accounting Standard that deals with cash flow statements.

Cash Flow (2017) (2016)

Operating cash flow

Net income + 1619200 + 1689600
Account recieveable + 200000 + 145000
Inventory -900000 -600000
Account payable -800000 -300000
Cash flow from investing
Activities
Capital -920000 -700000
Expenditure(equipment)
Amount received from owner +200000 +150000

Cash flow from Financing

Activities
Issue of Capital +976000 + 540000
Stock(common stock)
Cash at end of year 375200 924600

Calculation of PW, AW and FW:

What is PW?(Present worth)

the initial cost include The sum of the initial expenditures involved in capitalizing a
property(equipment ,transporation and properity) .

Initial cost=Equipment+properity+copyright+Transporation cost

Initial cost=4020000RS
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We not include Transporation cost in initial cost

Annual operating cost:

Operating cost=wages cost +insurance+Tax

So operating cost=1520800Rs

Salvage value =268000Rs

For useful life of 5 years and MARR is 15% per year find present, Annual and Future
Worth?

PW=-initial cost-AOC(p/F,i%,n)+salvage (p/F,i%,n)

PW=-4020000-1520800(P/F,15%,5)+268000(P/F,15%,5)

PW=-4762816Rs

AW Calculation:

AW=pW(A/P,i%,n)

AW=-4762816(A/P,15%,5)

AW=-4762816(.29832)

AW=-1420843Rs

FW Calculation:

FW=PW(F/P,i%,n)

FW=-4762816(F/p,15%,5)

FW=-4762816(2.0114)

FW=-9579928.102Rs

What is(p/E)?

The price-to-earnings ratio (P/E) is a valuation method used to compare a company’s current share
price to its per-share earnings.
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Price-to-Earnings Ratio (P/E) = Market value per share / Earnings Per Share (EPS)

Market value per share=25

(p/E)=25/1.65=15.15

Common stock=Number of shares=976000

Earning per share(EPS)=Earning after tax/Number of shares

(EPS)=1619200/976000=1.65

Companies may choose to buy back their own shares in the open market. In doing so, a company can
improve its EPS (because there are fewer shares outstanding) without actually improving net income.

For example, a P/E ratio of 10 means that, for every $1 in company earnings per
share, people are willing to pay $10 per share to buy the stock. If the P/E is 20,
then people are willing to pay $20 per share for each $1 of company earnings

Dividend payout :

Total dividend amount = (net income + retained earnings at the beginning of the reporting period) -
retained earnings at the end of the reporting period

total Dividend=netincome-Retained Earning

Total dividend amount=1265200Rs

Dividend payout ratio:

Dividend payout ratio discloses what portion of the current earnings the company is paying to its
stockholders in the form of dividend and what portion the company is ploughing back in the business
for growth in future. It is computed by dividing the dividend per share by the earnings per share
(EPS) for a specific period.

Formula:

The formula of dividend payout ratio is given below:

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Dividend per share=dividend payout/number of shares

Dividend per share=1265200/976000=1.296

So

Dividend payout ratio=1.296/1.65=78%

Significance and Interpretation:

A low dividend payout ratio means the company is keeping a large portion of its earnings for growth
in future and a high payout ratio means the company is paying a large portion of its earnings to its
common shareholders.

Whether a payout ratio is good or bad depends on the intention of the investor. A high payout ratio is
usually preferred by those investors who purchase shares to earn regular dividend income and a low
ratio is good for those who seek appreciation in the value of common stock in future.

Companies with ample reinvestment opportunities and a high rate of return on assets usually keep a
large portion of earnings in the business and, therefore, have a low dividend payout ratio during the
first few years of establishment. Well established companies usually have a good consistent dividend
payout ratio.

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