Business plan

1. EXECUTIVE SUMMARY
The purpose of this report is to provide detailed information about my business idea which is to operate an Advertisement agency. The report includes all the needed sections for an actual business plan document. It starts with the business profile in order to give a brief idea about the whole business. Then the marketing plan is included to give explanation about our promotion campaign and plans. The next plans are the layout, company product and services and the personnel plans. Each part explains in details what has to be done in order to run the business successfully. The final plan in this report is the finance one. All needed projections are included as well as the establishment costs. The report explains how this idea will be achieved in details. We have chosen this idea because of many reasons. Advertisement will be highly demanded. Many businessmen are facing the problem regarding the advertisement. Awareness of advertisement is increasing. There are many businesses in Pakistan who Lack of advertisement motivated to move on with the idea. Our idea will provide them ease and give support to the talented businessmen. Our idea has come up after many research regarding the difficulties faced by businesses. We found that there are not many agencies that provide actual message. In addition to that, businessmen can find local way to advertisement and there are not much agencies that offer all kinds of advertisements in the same place. This is considered as a market gap. Our idea fills that gap by providing specialized ads for individuals.

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1.1 Introduction
Advertising is a form of communication whose purpose is to inform potential customers about products and services and how to obtain and use them. Many advertisements are also designed to generate increased consumption of those products and services through the creation and reinforcement of brand image and brand loyalty. Every major medium is used to deliver these messages, including: television, radio, movies, magazines, newspapers, video games, the Internet and billboards. Advertising is the promotion of a company’s products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows  Increasing the sales of the product/service  Creating and maintaining a brand identity or brand image.  Communicating a change in the existing product line.  Introduction of a new product or service. Thus, several reasons for advertising and similarly there exist various media which can be effectively used for advertising. Advertisements can also be seen on the walls of an airport walkway, on the sides of buses, heard in telephone hold messages. Advertisements are usually placed anywhere an audience can easily and/or frequently access visuals and/or audio and print organizations which frequently spend large sums of money on advertising.

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1.2 Name of company
Latitude (Lateral thinking + attitude)

1.3 Address of company
Trust Plaza G.T Road Gujranwala Pakistan

Phone
+92-558289117

Slogan
“You are in safe hands”

Logo:

Latitude

Key members address and phone
 Nadeem Aftab  Rizwan Akram  Zia Ullah Khan +92-3004252764 Sialkot Pakistan +92-3006428640 Sialkot Pakistan +92-3217436974 Gujranwala Pakistan

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Need of ad agency
We are going to open ad agency in Gujranwala Because:  Few ad agencies  Huge industrial area  Potential market

Main reasons of Advertisement:
 Introduction of a new product or service.  Creating and maintaining a brand identity or brand image.  Increasing the sales of the product/service  Communicating a change in the existing product line.

Advertising
Advertising is a form of communication whose purpose is to inform potential customers about products and services and how to obtain and use them.

Types of media for advertisement:
 Electronic Media  Print Media

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Indoor media channels:
Those media channels which have headquarter in Pakistan is called indoor media channels. In Pakistan 75 indoor media channels. For example:  Geo  Express News  Hum  PTv, etc

Timings:
 Three shifts in 24/3=8  Morning, Evening, Night  Standard Tv ad 45 sec

Purchasing:
 24 mints in a day

Outdoor media channels:
Those media channels which have no headquarter in Pakistan is called outdoor media channels. For example:  Sony  Star Plus  Set Max  Zee Cinema, etc

Local media:
Cable network lies in local media. Approximately 58 cable operators work in Punjab which is working under Salman Taseer cable network.

Local media advertisement:
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Local media advertise only surrounding areas just like  Schools  Colleges  Shops, etc

Print media:
48 ABC certified newspaper in Pakistan.

Type of ads:
 Classified ads  Panel ads  Commercial ads

Classified ads:
In newspaper, there is a separate page for classified ads and minimum 9 words in one line rates of ads in different newspapers  Jung Sunday 195 per line and caption 365Rs  Jung daily 165 per line and caption 365 Rs  Nawa-i-waqt 125 per line and caption 275 Rs  The News 7 Rs per word and caption 365 Rs

Panel ads:
It is business guide for businessmen only business ads are printed in the panels For example  Sale of property  Sale of car/leasing  Housing schemes, etc

Commercial ads:
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There are two types of commercial ads  Front page ads  Back page ads In front page ads customer pay 100% extra and in the back page ads customer pay 50% extra.

Billboard Advertisement
There are two types of billboard  Screen  Flex

Screen:
Screens are much costly as compare to flex mostly multinational companies used screens such as  Warid  Zong  Mobilink etc.

Flex:
Flex are cheaper rate as compare to screen, small businessmen or companies are mostly used flex for Advertisement. Types of flex sheet:  China  Star  Korea 1*1 1*1 1*1 18-22 Rs. 23-32 Rs. 28-40 Rs.

Type of flex:
There are two types of flex  Back light GIFT University

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 Front light

Name Jang Nawa-e-waqt Awaz Express Aaj kal Waqt Asas Pakistan Back light Front light

Rates/cm 1300 900 800 900 1000 1000 700 800 1*1 1*1

Front 200% Extra 200%Extra 100%Extra 200%Extra 100%Extra 100%Extra 100%Extra 100%Extra 65-250 200-650

Back 100%Extra 100%Extra 100%Extra 100%Extra 100%Extra 100%Extra 100%Extra 100%Extra

Column 200%Extra 100%Extra 100%Extra 100%Extra 100%Extra 100%Extra 100%Extra 200% Extra

Rate of commercial advertising in News paper

Rates of Billboards

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10*20

1.4 Objectives
Our business is based on affective and creative advertisement .This problem is faced with both sides’ viewers and advertisement companies. Advertisement is a variable which can communicate with the people through different Medias. It is the action of calling something to the attention of the public especially by paid announcements. The goal of advertising is to cost-effectively reach a large audience and attract customers. Now the above problem will told that which tips can be generated to communicate the ideas

category
A A+ B C A-2 D

Location
Model Town, Satlit Town Gondlanwala, sialkoti derwaza Deen Plaza, Sangham Chok, Sialkot Road Shaheenabad, Sangam Chok Alipur Road, Chok Lohianwala, Chan da Qila,, Bye Pass, Sialkot Bye Pass Noshehran Road, Pasrur Road, Hafiz Abad Road

Rates in Rs.
6500/6000/9000/6000/6500/6000/7000/6000/6500/6000/6000/6500/-

effectively through the different Advertising Medias. (Electronic, Printing). To determine what’s the customer intention towards the advertisement through Electronic media. Firstly find what type of advertisement created the attraction and spreading image. To determine what motivates our customer in the ads

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1.5 Description of the Business and Target Market
We are going to open advertising agency in Gujranwala. Our products are T.V, Billboard, radio, newspaper, magazine, pamphlet etc. As Gujranwala is the industrial area so there are lots of opportunities to open these types of business. This problem is faced with both sides’ viewers and advertisement companies as well. The most important thing the target audience that means how many people select for the target. This audience trust on you and your product if you spread true information through ads. People will rely upon you. For creating the best one image through advertisement in the mind of your target audience is very easy just by telling the Truth.

2. Vision and Mission statement
2.1 Vision Statement

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“We will maintain a financially strong, growth oriented company for the protection of our employees and clients.”

2.2 Mission statement
“We desire to measure success for our clients through awareness, increased sales, or other criteria mutually agreed upon between the agency and the clients.”

To our future
As we build our agency and our relationships with our partners, we will continue to focus on the long-term health of our company through steady and controlled growth and search for new and creative ways to work.

To our clients we offer
A professional marketing system that provides the highest standards of quality and efficiency where service, creativity, reliability, and integrity are the hallmarks of GIFT University

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every aspect of our work. Our effort is to ensure that we are satisfying the client's needs and providing materials that are strategically on target as well as having the ability to produce superior results.

Legal Plan PROCEDURE OF INCORPORATION:
Methods of Conducting Business In Pakistan  Sole Proprietorship (SP)  Partnership (P)  Company (C) GIFT University

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Mode of forming a Company (C) in Pakistan:
A Company (C) in Pakistan is a legal entity formed under the Companies Ordinance, 1984. It can have share capital or can be formed without share capital: Any three or more persons associated for any lawful purpose may, by subscribing their names to a memorandum of association and complying with the requirements of Companies Ordinance, 1984 in respect of registration, form a public company and any one or more persons so associated may, in like manner, form a private company. A company formed under Companies Ordinance, 1984 in Pakistan may be a company with or without limited liability, that is to say,  A Company Limited by Shares (CLS)  A Company Limited by Guarantee (CLG)  An Unlimited Company (UC)

HOW TO REGISTER
Procedure 1 Seek the availability of a name proposed for the company from the Registrar of Companies. Time to complete 1 day Cost to complete: PKR 200 Comment:

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The company may propose one or more names, in order of preference. The name should not be inappropriate, deceptive, or designed to exploit or offend any religion. It should neither be identical to nor have any close resemblance to any existing company name. The availability of the name can be checked online by searching existing company names.

Procedure 2
Pay the fee for procedures 1, 3, and 4, and obtain bank receipt/ copy of treasury challans Time to complete 1 day Cost to complete No charge

Procedure 3
Obtain stamp paper on which the Declaration of Compliance will be drafted Time to complete: 1 day Cost to complete: PKR 100

Comment: Formerly, the original copy of the memorandum and articles of association had to be stamped according to the Stamp Act of the relevant province of Pakistan in which the company proposed to be registered. Stamp duties vary from province to province. The Stamp Act prescribes the adhesive stamps to be affixed to the first page of the documents before they are executed. The unsigned copy of the memorandum and articles of association is submitted to the Stamp Office of the relevant provincial government agency with the proof of payment to the Treasury bank account.

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Procedure 4
Register the company at the Registrar of Companies. Time to complete: 3 days Cost to complete: Registration fee + PKR 200, filing fee per document, 4 documents + PKR 50 for the Certificate of Registration Comment: The following company incorporation documents are required for a private company: - Form-1, Declaration of compliance. - Form-21, identifying the location of the office. - Form-29, Particulars of directors, secretary, chief accountant, auditors, and others. Note: Form 1 is to be signed by (a) an advocate entitled to appear before any High Court in Pakistan or the Supreme Court; (b) a qualified chartered accountant (member of ICAP or ICMAP) practicing in Pakistan, or (c) a person named in the articles of association as a director or other officer.

Procedure 5
Make a company seal Time to complete: 2 days Cost to complete: PKR 1000 Comment: The company seal is prepared after the certificate of incorporation is obtained. It is affixed on significant documents according to the provisions of the articles of association.

Procedure 6
Apply for a national tax number (NTN) and register for income tax. Time to complete:

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2 days Cost to complete: No charge Comment: Companies can check the status of their national tax number (NTN) within 24 hours of application. Since 2002, NTN are issued with a continuous valid term. Companies no longer need to renew their NTN. Income tax is paid on filing the return, which is due in 6 months from the end of the company’s financial year (usually in June). In addition, the Income Tax Department charges a fee of 2.5% for the workers welfare fund at the time of its income tax assessment.

Procedure 7
Register for sales tax Time to complete: 12 days Cost to complete: No charge Comment: The Central Board of Revenue (CBR) has simplified the registration process for sales tax by providing two methods discussed below in detail.

Procedure 8
Register for the Professional Tax with the local tax authority Time to complete: 7 days (simultaneous with the previous procedure) Cost to complete: No charge

Procedure 9
Register with the Employee Social Security Institution Time to complete: 11 days (simultaneous with the previous procedure)

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Cost to complete: No charge Comment: Employment tax or social security registration is not mandatory but is subject to notification in the Official Gazette. The Social Security Institute (SSI) is managed by the provincial government and levies employers, whether incorporated or not, at 7% of wages, up to PKR 3,000 per month.

Procedure 10
Register for old age benefits with Employees Old-Age Benefits Institution (EOBI). Time to complete: 11 days (simultaneous with the previous procedure) Cost to complete: No charge

Procedure 11
Register with Pakistan Shops and Establishment Ordinance, 1969 Time to complete: 7 days (simultaneous with the previous procedure) Cost to complete: PKR 10 (internet)

3. Business and Industry profile
3.1 Company Goals and Objectives 3.1.1 Long term objectives

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Achieve more profit margins. We want to expand our business and make our link available for other website

3.1.2 Financial objectives
Financial objectives are generally described in quantitative terms for at least three years in the future: Businesses seeking outside funding and capital should provide a minimum of three years of projected income statements, although these are usually located in the financial section of the business plan rather than the marketing section. Achieve an increase in profit margin starting from next year. Reduce operating expenses from next year

3.1.3 Marketing objectives
Marketing objectives are quantitative translations of the company's financial objectives, in marketing terms. We are increasing in Sales by the use of marketing and other tools. By offering low cost we want to sell more units due to this our market share are increased and in future we want to become the market leader of this industry. In marketing plan there is also plan of advertising of the agency so that the awareness of the agency creates. People come to us and we can easily solve there problems.

3.1.4 HR Plan
Efficient and effective Human Resource management is a challenge to all HR

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professionals. Staffing, training and helping to manage people so that the organization is likely to increase the performance level is imperative to work in a productive manner. Normally, human resource functions are tracking data points on each employee. These might include experiences, capabilities, skills, data, personal histories and payroll records. In the most general sense businesses carry out different activities dealing with managing their approaches to employee benefits and compensation, as well as employee records and personnel policies. Establish a CRM system which covers concepts to manage relation between us and our customers by the start of our business

3.1.5 Operational

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Manage our operations so effectively and timely to serve our customers in minimum available time. Make our Database system up to date Bring creativity in our operations

3.2 Stage of Growth

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Latitude is the business of advertising agency. At this stage our business is at the introductory stage, we put our efforts to create awareness among our target market and create positive image in their minds by providing them creative and effective advertisement. At this stage we are earning low profit. After 2 years Latitude enter in growth stage Marketing Manager  Responsible for finding new customers  Marketing & promotion  Managing emails Designing Manager  Handling art process Production Manager  Handle orders of production  Quality control  Timely delivery

3.2.1 Business Life Cycle

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Introductory Stage

Growth Stage

Maturity Stage

Decline Stage

Total Market Sales

Year 1

Year 2

Year 5

Latitude

3.3 Industry Analysis
Industry Background and Overview

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3.3.1 History
Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BCE. History tells us that Out-of-Home advertising and Billboards are the oldest forms of advertising. As education became an apparent need and reading, as well printing developed, advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack" advertisements became a problem, which ushered in the regulation of advertising content. As the economy expanded during the 19th century, advertising grew alongside. In the United States, the success of this advertising format eventually led to the growth of mail-order advertising. In June 1836, French newspaper La Presser is the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volney Palmer established a predecessor to advertising agencies in Boston. Around the same time, in France, Charles-Louis Havas extended the services of his news agency, Havas to include advertisement brokerage, making it the first French group to organize. In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups. When the practice

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of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows. Mobile billboards are truck- or blimp-mounted billboards or digital screens. These can be dedicated vehicles built solely for carrying advertisements along routes reselected by clients, or they can be specially-equipped cargo trucks. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including:  Target advertising  One-day, and long-term campaigns  Conventions  Sporting events  Store openings and similar promotional events  Big advertisements from smaller companies Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popup, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, stickers on apples in supermarkets, shopping cart handles the opening section of streaming audio and

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video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

3.3.2 Future Outlook
Relatively strong growth was seen in the Commerce sector in 2007-2008, despite the global economic crisis. Growth in 2009-2010 will be centered on worldwide use of the advertising agencies.

3.3.3 Key success Factors in the Industry
We are going to open advertising agency. Building relationships with our customers and giving them respect by good quality ads with low cost. Our customer gets the creative and effective ads. Because we have educated staff so that well educated Employees create the ad and giving the best location for ads.

Why to choose this business?
We choose this business because businessmen face a lot of difficulties in the starting of new business regarding the awareness. Whenever they start the business they do not have the effective advertisement plan. We solve the all types of marketing problems, that’s why we choose this business because we don’t want others to face that difficulty which people faced before.

4. Business Strategy
4.1 SWOT Analysis
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4.1.1 Strength
 Fully MIS system  Qualified and skilled person  Financially strong  Location of the business  Specialize Advertisement and marketing  Low price as compare to competitor

4.1.2 Weakness
 Initially low intake of customers  New name in market

4.1.3 Opportunities
 Vast industrial area to grow the company  The trend of this type of business is moving upwardly in Gujranwala  Capture more market share by providing quality ads.  Expand in to other cities.

4.1.4 Threats
 Changes in the taste & preferences of clients.  Government instability  Attractive industry

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4.2 Competitive strategy 4.2.1 Cost Leadership
It is difficult to keep up with fierce competition, and you hope that you never get trapped in a dilemma between low costs and good quality. GIFT University

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As we are solving problems of business regarding advertisement. Other agencies are serving in this way but the point of difference is that we are providing our services good quality with low rates. Our focus is on the Gujranwala industry and later on we will expand our target market.

5. Company Products and services 5.1 Description
 Products and Service features  Customer Benefits  Patent Protection

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5.1.1 Products and services feature T V. Ads
Businessmen and other people can buy our products. We have the resources to handle your TV ad design and get you the best available pricing on your TV ads. We are giving the special facility to the businessmen of Gujranwala industries by creative and effective ads. You can save your time by visiting different agencies and can avoid from hassle of wasting precious time

Brochure design
Make a great first impression with a high quality brochure design that will help create brand awareness and generate sales. A professional brochure design can add years towards your business experience if you're a startup or even make your small business look even bigger with a professional brochure design.

Web design
Get professional Web design if you are a Small Business or Fortune 500 Company. Design a custom Web design with our in-house web designers. We have website designers available to start your web design project. Our professional website designs are an affordable extension of your small business practice. A custom web design provides creditability, useful information and sales leads.

Printing Services
We offer our clients the good quality in printing materials. We use the latest technology available, best prices and fast turn around time. We ensure the best level of quality on all our printing at all times. We are able to offer affordable printing prices.

Services
 We deal order for Gujranwala  We solve Special orders within some days  We give discount to members, if there is big order/contract of any company.

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5.1.2 Customer Benefits
 Provides knowledge of new products  Convenient in purchasing, i.e., where and when to buy  Provides opportunities to compare the merits and demerits of various substitute products  Latitude solve any type of ads problem  Customer can get the creative and effective ads  Increase in the standard of living  Provides knowledge of alternative uses of products.  Customers have to pay low prices as compared to competitor

Benefits to Community
 Creates more employment opportunities  Increases standard of living  Encourages healthy competition  Encourages research and development  Helpful in industrial progress and prosperity  Encourages art and designing

5.1.3 Uniqueness of advertising
 To differentiate the product from their competitors  Creative and effective ads  To communicate product information  To expand the product distribution  Too increase brand preference and loyalty  Creates new demands

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5.2 Patent or trademark protection
In Pakistan, registration of trade mark and their protection is governed by the provisions of the Trade Mark Ordinance, 2001 and the Trade Mark Rules, 2004 set out the registration procedure. We will register our trademark that provides us strong protection, particularly in case of conflict with an identical or confusingly similar trade mark.

5.3 Future service
Now we are offering this service to Gujranwala industries but in future we expand the target audience and give our services to the whole world and also we solve all type of marketing problems.

6. Marketing strategy

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6.1 Target Market
The very early important step in putting a powerful marketing plan for the business is to identify the target market. Latitude has its own strategy in identifying and segmenting the market. This helped us to know and understand our customers’ needs accurately. Our target market will be sharing common needs the company decided to fulfill. PRODUCT

PRICE

PLACE

MARKETING MIX

PROMOTION

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Target Market
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Our target market identifying strategy is contained from three main steps:  Data collections (research)  Analyzing the data collected  Decide and determine Our target market is the industries of Gujranwala and the near village.

6.1.1 Profile of customers
Geographic
World Region Density Pakistan , Rural, urban Youth, matured Male, Female Middle Income Class, Upper Class, Elite class Business class, , other Best Quality, affordable price, service differentiation, Middle class, upper class,

Demographics
Age Gender Income Occupation

Behavioral
Benefits Social class

6.1.2 customer characteristics
We are going to fulfill their need at their first step toward us. Target customers have good buying power for the brand. All businessmen like to buy our products at reasonable price. For creative and effective ad businessmen usually buy products from the agencies located in Islamabad and Lahore who are our indirect competitors. The

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reason behind is that there is not creative ads in this market. Customer attract toward the Latitude because of following reasons  Reasonable price  Fulfilling their need at the right time

6.2 Customer motivation
We will conduct seminars and presentations to aware our target market about the products. This will help establishing awareness among companies.

6.3 Market Size and Trends
A large number of people in Gujranwala have the idea that they can attract the customers through ads. . This is due to the fact of awareness about advertising agency. In a strongly relationship-oriented society like Pakistan, people tend to form individual relationships and long term associations with the businessmen and vendors. The size of our target market is huge. Most of the businessmen are facing the problem of related ads. They buy the products located in Lahore and Islamabad. Our target market is growing rapidly. In every new season number of business is increasing. Due to the many multinational companies come in the Gujranwala. The current issue faced by all these companies is the availability of creative and effective ads.

Marketing objectives
 To ensure that our customers get the best Value, Quality and satisfaction from using our services.  Make it Strong, Favorable and unique brand

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 Create positive image by providing ads at promised dates.  Motivate the people in way that they ultimately purchase the product.  Establish latitude as the most trustworthy ad agencies of the Pakistan.  Expand our business to national level  To achieve a high level of brand equity by having a distinct position in the minds of the customers.

Goals
As the Latitude is at the introductory stage, company wants to capture its market share in the existing target market creating competitiveness by creative and effective ads.

Key Advertising Problems and Opportunity
In Pakistan people like to buy products in traditional way, like to go out for shopping. They usually do not have the habit of buying online anything. So it’s easy for the company to attract the businessmen towards the way of buying their products

Opportunity
Our target market is the businessmen of Gujranwala so it’s quite easy for us to aware our target market at here.

Advertising
The advertising strategy that we opted for is the combination of Above the Line (ATL) and Below the Line activities (BTL).

Above the Line Advertisement
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Billboards, print ads, broachers and booklets and display signs will be planned to use in as advertisement for Latitude. The objective here is to create awareness in the customer through local traditional methods of advertisements. The target market here is the businessmen of Gujranwala. Display will be hanged on the main roads of the city. Wall paintings will be done in the areas where different companies are located. Broachers and booklets will be available on the companies which will be delivering to them on the time of delivering ads

Direct Marketing
Mails will be sending to the companies. The objective for direct marketing is to create long term relationships by with the big market customer. The objective here is to aware the customer about the latest updates of the brand.

Below the Line Advertisement
We plan to go for a lot of BTL activities and for this companies site BTL activity is a major source of advertising. We will send our representatives to arrange a small on site demonstration of our service and will communicate the theme of our service offering. Where we will tell the businessmen how we plan to give them a better solution of problems facing in ads, so that we might create better awareness.

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6.5 Pricing Cost structure 6.5.1 Fixed Cost
Fixed cost of the company includes the cost of operating expenses.

6.5.2 Variable Cost
Latitude agency will take orders from customers ordering cost is the variable cost of Latitude agency and also we get the advance form the customers.

6.6 Distribution strategy
6.6.1 Channels of distribution used
There are no modes through which we can deliver our products to our customers. Our services are based on zero level inventory system. After having order of different products from our customers we will fulfill the order. We get the full information regarding to name, number, customer address etc. that’ why We have no distribution channels.

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7. LOCATION ANALYSIS Region / Community Decisions
We are selecting Gujranwala City for the ad agency due to the following reasons described below;

Corporate Desires
Gujranwala has a culture for industrial development. The people of this city are normally industrial minded and you can find very easily the industries in various areas of the city. Gujranwala is one of the big industrial cities in Pakistan where numerous kinds of products are made and marketed throughout Pakistan. Normally here is a trend in young generation to start there own business or in any other industrial sector instead of going in the field of agriculture.

Regional Attractiveness
Gujranwala region seems to be attractive for ad agency as here is lot of industries. Here is the demand for this business. Here you can find not only the machine operators GIFT University

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easily but also the mechanics for repair of machine incase of any fault in the machine during operations.

7.1 Location and Construction Cost
Combining the land and construction cost is lower in Gujranwala than in Lahore or any other big city. Here you get land cost about Rs. 35, 00,000/- per Kanal on the area of main road that is the best suitable width for routine transportation. And if you go to State # 2, there the rate is about Rs. 32, 00,000/- per Kanal. For our project we need minimum of 1 Kanal area for the agency.

7.1.1 Analysis Cost & Availability of Utilities
Normally we need electricity connection which costs about Rs. 700,000/including transformer and wiring to the machines in the production unit. Electricity connection can be gained easily because this unit is not very big to consume much more electricity causing a hurdle in the supply of electricity. GIFT University

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We need a 200KW transformer for our production unit which cost Rs. 550,000/- and the wiring of electricity to run machines will cost Rs. 150,000/-

Environmental Regulations of State and Town
Latitude does not cause any harm to the environment. Even there is not any smell or pollution problem during the work

7.1.2 Air, Rail & High way transportation system
The entire 3 transportation medium are easily accessible from Gujranwala. For our project both the sites in State 2 and in G T. Road Gujranwala are very close to high way, due to which we not only can save the transportation cost of our customers but also the charges of toll taxes.

Nearness to services and Supplies needed
We can avail electricity and telephones and sanitation services G T. Road Gujranwala due to electricity problem in Pakistan we also use generators just because of completion the orders.

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7.1.3 Rental rate
Buy land and then make investment. To do this there is huge amount of money required. To overcome this problem we decided we are not going to buy land. We start work in rental land. The land of rent an agency which we required is amounted 60,000. Per month. Location of the ad agency is SAUDI PAK BANK 1 st floor G.T Road Gujranwala. The amount of money which is used to buy the land now that amount is used for investment.

Site Decision using Factor Rating Method
Points Assigned Factors Employee availability Site Cost Per Capita Income Tax Structure Proximity to Markets Expansion opportunities Weights 5% 20% 5% 5% 10% 25% G.T Road 50 80 50 100 50 90 (PBP) 50 70 50 100 50 60 Weighted points (G.T Road) 2.5 16 2.5 5 5 22.5 Weighted points (PBP) 2.5 14 2.5 5 5 15

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Transportation Services & Supplies Total Points

20% 10% 100%

80 60 560

50 80 510

16 6 75.5

10 8 62

PBP, PINDI BY PASS *According to the above calculated points G T. Road Gujranwala is the most feasible location for ad agency. (Prentice Hall, 2000 Chapter 3)

8. Competitive analysis
8.1 Existing Competitors
Trend of advertisement is not get popular in Pakistan. Advertising should be judged only by the frequency of the message. Message should be affected only when target audience impressed. Opinions on Advertising are as conflicting as opinions on Religion. Shalimar advertisement agency and katin is the two main competitors in Gujranwala..

PROFILE OF Latitude
Head quarter Agency Type Status founded Board of directors Agency size Web site Gujranwala Marketing and advertising Privately held Newly opened 2009 president Local www.latitude.com

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8.1.1 Competitive Profile Matrix
Company A Key success factors
Brand Recognition High Customer Awareness Experience Customer Loyalty Timely Delivery Total

Company B

Company C

Weight
0.1 0.3 0.2 0.2 0.1 0.1 1

Rating Score Rating Score Rating Score
3 4 3 3 3 3 0.3 1.2 0.6 0.6 0.3 0.3 3.3 3 2 3 2 3 3 0.3 0.6 0.6 0.4 0.3 0.3 2.5 3 4 3 3 2 2 0.3 1.2 0.6 0.6 0.2 0.2 3.1

Company A: SHALIMAAR Company B: KATIN Company C: LATITUDE (Fred r David) competitive profile matrix

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Porter’s 5 Forces Model

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9. Description of Management Team
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9.1 Key Manger and employees
We as partners will perform certain duties of marketing manager and accountant manager. The first step is to develop job descriptions and personal specifications.

Marketing Manager:
 Analyzing competitors’ data and information and recommend how the company could provide more powerful offers.  Develop business relationship with other related companies.

Account Manager
Account Manager is the person who is also the partner of Business. He has done MBA with major in banking and finance.

Accountant job description:
Job title: Reports to: Job Purpose: Accountant General Manager To apply his accounting knowledge in analyzing financial information and preparing financial reports such as profit and loss and cash flow statements.

 Analyze financial information to determine the company’s financial position  Prepare profit and loss statement on a monthly basis as well as the cash flow statements  Establish and maintain a computerized accounting system to use within the organization  Coordinate with the all departments to determine in order to prepare the budget for the business  Analyze all company’s operations (marketing campaign) in order to prepare budgets for the future.

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 Prepare budgets and review all the business expenses.  Recommend the organization with issues related to taxes and budget forecasts.

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Rizwan Akram
MBA
GIFT (University) MBA Major(MARKETING) (PUNJAB COLLEGE) B.COM 1ST DIVISION GOVT. COMMUNITY INTER COLLEGE FSC 2ND DIVISION IN PROGRESS

2006

Date of Birth: 10/08/1986 Home Address: HOUSE NO.106 MODEL TOWN DASKA DISST.SIALKOT Mob: 0300 6428640
Email: RIZWANRAZI@YAHOO.COM

2004

PROFESSIONAL SKILLS
Communication Teaching .

PROJECTS
Unilever marketing plan Downsizing in Pakistan steal mills

EXPERIENCE
Supervisor of ESBRO ( PVT) LTD Teaching at SIMZ college

IT PROFICIENCY
Ms office Internet Surfing Windows 98,xp Windows Vista
University Address: GIFT University, Opposite Board Office, Gujranwala. Tel: 0553-898929 Website: www.gift.edu.pk

HONOURS AND AWARDS
Awarded as best student at House of commerce college Performance for best teacher at SIMZ college

INTERESTS
Traveling Meeting people Going out with friends Reading Books Working on Computer

REFRENCES
Will be furnished when desired

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Zia Ullah Khan
Address: Contact: Email: Objective: Education:
GIFT Business School, GIFT University, Gujranwala, Pakistan. (HEC Certified Degree) MBA in October, 2009 Major in Marketing

Al Fata St Jinnah Road Islamia park Gujranwala (+92-321 7436974 Cell: (+92-302) 4626244 Ziadar_s@yahoo.com To gain further experience by Appling my talent skills to their advantage and serving the firm at my best and shaping a good future for myself

Gujranwala College of commerce (Degree: Agriculture University Faisalabad)
B. Com 2006 2002

Govt. College Gujranwala.
F. Sc (Pre- engineering )

Professional experience: • • Projects: Developed a District profile of Gujranwala that was presented to the Governor of State Bank of Pakistan and that is expected to be published on the website of SBP in soon. • Develop a survey report on Livestock of Gujranwala with the help of State Bank and Chamber of Commerce Gujranwala. • Human Resource practices in Ufone and analyzed their hiring, recruitment, performance and other HR practices. • Marketing Report of Dubai Islamic Bank launch in Gujranwala. • Developed a complete business plan for Entrepreneur with a name RAJAB Rice Mill & Exporters. • Develop a Prototype of Railway Station for the course requirement of Service Marketing. • Prepared Case write-ups for Business Ethic Un Ethical issues in Fasyal Bank. • Economic project on Pakistan Agriculture and its reapplication in our agriculture area. Seminars/ workshop attended: • Worked as an interne research officer (IRO) with the State Bank of Pakistan SBP, BSC (Bank), Gujranwala. (June, 2008– Aug, 2008) Teaching, in Fasial High School, Gujranwala (Aug, 2002- Feb 2004)

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• • • • •

Seminar on “State Bank” interest free banking conducted by Chief Manager (Muhammad Munir Ahmed) Seminar on “Entrepreneurship” conducted by Dr. S.M. Naqi (Chairman SPEL) Seminar on “Business Ethics” conducted by Prof: Khalid Zaheer Seminar on “Islamic Finance and Modern Economy” conducted by Dr. Uzair Albazi (Head of Jamia Ashrafia, Lahore.) Seminar on “Free Trade Agreements and Opportunities for SME’s of Pakistan” held by the collaboration of SMEDA, GCCI and Govt. of Punjab.

Professional Skills: • • • I have great Interpersonal Communication skills. Excellence in managing administrative matters. Good Interpersonal skills.

IT Proficiency: • • Effective and efficient in using Ms-Office XP (Office Management) SPSS (Statistical Program for Social Sciences)

Personal Information: Date of Birth: 01-10-1985 C. N.I.C: 34101-2532250-1 Father’s Name: Muhammad Afzal Khan Domicile, Gujranwala Single, Male and Muslim. Well versed in English, Urdu and Punjabi. Be able to work under stress and for long hours. Interests: • • Reference: Books reading Traveling & Technical work Will be furnish on demand

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NADEEM AFTAB
EDUCATION
GIFT University Gujranwala Master in Business Administration Majors. Marketing Punjab College of Commerce (Punjab University) B.Com Govt Degree College Daska I.Com Expected in 2009

2004 - 2006

Date of Birth: 11-09-1987. Home Address: St.# 26 Mughalpura Daska. Tel: 052-6610039 Mob: 0300-4252764
Email:

2002 - 2004

PROFESSIONAL SKILLS
• • • Good Communication skills Leadership skills Hardworking & Motivated

Sanju_nadeem@yahoo.com

Experience
• • Worked as management internee in national bank of Pakistan Member of Dua Foundation.

Teaching at SIMZ college

PROJECTS
• • • • Analyzed Marketing plan on RC Cola. Analyzed a Marketing Project on Lever Brother. Best Business opportunity for Gujranwala. Study Report on Bata

University Address: GIFT University, Opposite Board Office, Gujranwala. Tel: 055-3898929 Website: www.gift.edu.pk

IT PROFICIENCY
Microsoft Office, Serve Internet.

HONOURS AND AWARDS
Best student in Fame college Member of Young Blood Bank.

INTERESTS
Traveling, Book Reading, Movies, Music.

REFRENCES
Will be furnished upon request.

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10. Plan of operation

1 0.1 Form of Ownership
Our business is based on joint proprietorship. We will have a partnership contract between our 3 partner this will help avoid problem and conflicts. As concerns for the managing workload all the partners will manage it efficiently. One will manage all marketing activities and relationships with supporting parties while other will mange accounts and keep records of transactions and maintain check and balance and other will plan of opportunities gain in future.

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10.2 Organization Chart
Boards of Directors

Production Manager

Advertising Manager

Designing Manager

Finance Finance Manager Manager

Product A

GOVT

Magazine

Product B

Market

Newspaper

Product C

Customer

T.V BroadV T costing

Product D

Institutio nal

Bill Board

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10.3 Decision making authority
All mangers will have the authority of making the decisions. They will impose terms and conditions of handling the work process and work load. All the partners will have equal profit and will bear equal loss in case of any problem. They will divide work load equally by dividing their duties. In addition we will have the partnership contract which identify all the required contents  Business name  Partners’ name and addresses  Type of business  Amount of capital  Banking details  Percentage of sharing profits (most important point)  Authority of each partner  The ways of ending the contract

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FINANCIAL PLAN

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Project Appraisal Summary 545454654

Project Appraisal Summary
Parameter Details
Construction and Landscaping Office Location Setup 2 Months Sudi Pak bank 2nd floor Partnership

Project Cost Description
Data Processing Equipments Furniture & Fixture Motor Vehicle Preliminary Expenses

Amount (Rs.)
45,200 100,000 68,500 5,000 145,200 854,800

Total Fixed Cost
Net Initial Working Capital

Total Project Cost Means of Financing
Debt Long Term Loans Equity Capital

1,000,000 Total Rs.
100% 1,000,000

Total Investment

1,000,000

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Projected Income Statement
(Rs.)

1st Year Sales Cost of goods sold Gross Profit OPERATING EXPENSES Salaries and wages Utilities Depreciation Office supplies Office Rent Preliminary Expenses Total Operating Expenses Profit 600,000 86,000 21,370 20,000 5,000 732,370 267,630 267,630 5,000,000 4,000,000 1,000,000

2nd Year 6,000,000 4,800,000 1,200,000

3rd Year 7,200,000 5,760,000 1,440,000

4th Year 8,640,000 6,912,000 1,728,000

5th Year 10,368,000 8,291,000 2,077,000

660,000 86,000 21,370 20,000 60,000 847,370 352,630

726,000 86,000 21,370 20,000 60,000 913,370 526,630

798,600 86,000 21,370 20,000 60,000 985,970 742,030

878,460 86,000 21,370 20,000 60,000 1,065,830 1,011,170

Income Tax
Net Profit

21,158
331,472

31,598
495,032

44,522
697,508

60,670
950,500

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Projected Cash Flow Statement
Base Year Beginning Cash Balance Cash Inflows: Capital Net Income Add: Depreciation Total Cash Inflows Available Cash Balance Cash Out Flows: Purchase Fixed Assets Profit distribute to owners Total Cash Outflows Ending Cash Balance 213,700 213,700 786,300 100,000 100,000 975,300 100,000 100,000 1,228,142 100,000 100,000 1,644,544 100,000 100,000 2,263,422 100,000 100,000 3,135,292 1,000,000 1,000,000 1,000,000 267,630 21,370 289,000 1,075,300 331,472 21,370 352,842 495,032 21,370 516,402 697,508 21,370 718,878 2,363,422 950,500 21,370 971,870 3,235,292 1st Year 786,300 2nd Year 975,300 3rd Year 1,228,142 4th Year 1,644,544 5th Year 2,263,422

1,328,142 1,744,544

RATIO ANALYSIS
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Ratios Gross Profit Operating Expenses Net Profit Return on capital

For example GP/Sales x 100 OE/Sales x 100 NP/Sales x 100 NP/Capita l x 100

Year 2010 20.00% 14..64 % 5.35% 27.00%

Year 2011 20.00 % 13.69 % 6.10% 34.00 %

Year 2012 20.00% 12..68 % 7.20% 50.00%

Year 2013 20.00 % 11.42 % 8.78% 69.00 %

Year 2014 20.00% 10.28.% 11.46% 95.00%

Fixed Assets
SNo. 1 2 3 4 5 6 7 8 Equipment PC UPS Printers Scanner Fax Machine Furniture & Fixtures Air Condition Motorcycle Total Qty 1 1 1 1 1 1 1 1 8 Specification Core 2 Due 1 kv Laser 1.5 Ton CD 70 Brand Intel local HP--Used Orient Honda Price 25,000 10,000 4,000 1,200 5,000 50,000 50,000 68,500 213,700

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Fixed Assets Depreciation
(Rs.)

Year
DPE Furniture & Fix. Vehicle

0 45,200 100,000 68,500 -

1st 40,680 90,000 61,650 4,520 10,000 6,850 21,370

2nd 36,160 80,000 4,800 4,520 10,000 6,850 21,370

3rd 31,640 70,000 47,950 4,520 10,000 6,850 21,370

4th 27,120 60,000 41,100 4,520 10,000 6,850 21,370

5th 22,600 50,000 34,250 4,520 10,000 6,850 21,370

Depreciation @ 10%
DPE Furniture & Fix. Vehicle

Total

BREAK EVEN POINT Fixed cost = 732,370 Rs Variable cost = 4,000,000 Rs Sale = 5,000,000 Rs CM Ratio = Sale – variable cost/sale CM Ratio = 5,000,000-4,000,000/5,000,000 CM Ratio = .20 Break Even Point = fixed cost/CM Ratio Break Even Point = 732,370/0.2 Break Even Point = 3,661,850 Rs

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REFERENCES
 www.smeda.org.pk  www.google.com  Mohammad Azeem  Chief ad agency  Al-Buraq ad agency  Usman Asif (Director)  Katin ad agency  Shalimar ad agency

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