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Product Launch Report

PREFACE

It is a great pleasure for us to present this report as requirement for the


completion of MARKETING course. The report is for the launch of a new

product “ ”. The budget for this business is Rs 15 M, inclusive of Rs


2.5M that is allocated for advertisement and promotional activities.

Commencement of the project was very difficult. Finally we came with

this idea of launching this product. This is a symbol of originality and

freshness. will be a name that will be a guarantee of quality that will


be refreshing for everyone that adopts it.

It is said that “The known is finite, the unknown infinite;


intellectually we stand on an islet in the midst of in illimitable ocean of
inexplicability”. In the light of this saying, we have no doubt in saying that
knowledge of marketing is in its real sense can be a service to mankind.
Through the marketing knowledge and skills we identify the needs and want
of people, ultimately to serve them by providing products and services, which
they really need.
In real life, we usually see that the diabetic person either in house as
family member or as guest somewhere cannot join the others while
something sweet is served. At that moment what they feel cannot be
expressed through words. The closest we cam come to express is a feeling
of isolation and of being misplaced.

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Product Launch Report

The need for Diabetic people was identified by our group and the
embarrassing feelings of these people inspired us to produce a Sugar Free

Juice “ ”, not only to create a feeling of belonging but also a feeling of

acceptance of their own disease by them. is not only for these people
who are forced to look for alternatives but is also for those who are diet
conscious.
Our will not only eliminate the feeling of isolation among the
diabetic but will also provide added healthiness and sparkle to their lives.
However how well the people will receive our product still remains a
question. Until we get a proper feed back from ultimate consumers it is
inscrutability that we face at the moment.

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Product Launch Report

LETTER OF ACKNOWLEDGEMENT

We would like to take this opportunity to extend our thanks to;


Dr..Mohammad Afzal Nobahar ,Secretary General Diabetic Association of
Pakistan & Ex. Director General Health of Pakistan for providing us data
regarding diabetic patients in Pakistan,
We also thank Al-Mustafa Diabetics Centre, Gulshan Iqbal and
Mr.Raza, representative of Lilly Pharmaceutical Co. of Pakistan, for providing
us opportunities to interview diabetics’ person, which proved to be the basis
of our research.
In last we would like to thank to our teacher Miss Reema Frooghi, we
feel that without his guidance it was not possible for us to produce this report

and launch .

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Product Launch Report

GROUP
MEMBERS

SUBMISSION BY:

Syed Atta-Ur-
Rehman
Ahmed Nawaz
Iftikhar Hussain
Fahad Hashmi
Ajit Kumar

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Product Launch Report

1.

EXECUTIVE SUMMARY

In our market segment, there is a wide range of different types of Table


serving SYRUPS (Juices). These juices are served in almost every house on
different occasion to the guests. The serving of the juices to guests is part of
our culture and in addition to being economical too, as compared to fresh
fruit juices and soft drinks.

Many companies have giant position with huge market shares and
wide product mixes for example Hamdarad (Waqaf) Pakistan, Ahmed Food
Industries, Mitchell’s, Qershi, Shezan, Quice and some other local juice
companies.

There is a substantial demand for such types of juices and the demand
is increasing day by day due to change in climate, which is getting hot for a
longer duration of the year, Economical Factors, Health awareness and due
to awareness of the people.

People especially in big cities adopt various ways to protect


themselves from sunstroke and hot climate. This includes drinking of cold
water, juices, squashes, ice creams or soft drinks and lassi etc.

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Product Launch Report

Management is profit oriented and believes on long term


planning, in terms of new products, future’s market, growth, and we will try
to stress wants of buyer.

After researching of market, regarding the predilection predisposition of


the people towards table serving, we decided to launch a new range of

SUGAR FREE JUICES with product mix of SUGAR FREE JAMS and
MARMALADES in the market for those consumers who are overlooked by
these giants or competitors who are the major market capturers. The special

feature of is not only a provision of healthy juice for diabetic patients


but it is also suitable for normal consumers with its taste just like a normal
juice.

Firstly, we will launch in Karachi Market. We have chosen “Niche


Market” due to limitation of our budget.

We have allocated Rs2.5M on advertisements and sale promotion


campaigns out of Rs 15M that is our total budget.

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Product Launch Report

COLLECTION OF DATA

Basically, market research depends on two types of data that are:-

 Primary Data

 Secondary Data

Primary Data
Primary data is collected from personal/direct contact through interview
on phone or/and random sample interviews in the shopping centers and
special conducted surveys at various Diabetic Centers and have interviewed
diabetic patients. From which, we gathered generous information about their
need and wants and inferred possible behavior towards of our sugar free
product.

Secondary Data

Secondary Data is collected through Newspapers, Reports and


Magazines to analyze the competitor advertisement campaign and policies.
These sources provided some very valuable data, which enabled us to

formulate and move ahead with this project.

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Product Launch Report

ENVIRONMENTAL MONITORING

a) External Macro Environment


1. Demographics
Demographics refer to the characteristics of human population,
including such factors as size, Distribution and growth.
is for all age groups, especially targeted for diabetic patients.

2. Economical
Due to uncertainty of economic conditions, we will charge
reasonable price of our products.

3. Competition
A company’s competitive environment obviously is a major
influence of our marketing program.

i) Brand competition.
ii) Substitute Products.
iii) Price Competition.

4. Social and Cultural force.

Hospitality is not only the part of our culture but our religion also
educates for the same. Any change in our social and cultural structure
would not have any major impact on hospitality/ hosting attitude of our
population. We expect will go long way as it is strongly backed by
cultural religious and social factors plus added feature of sugar free. We
expect it will be millennium juice.

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Product Launch Report

5. Political and legal forces.

Although Karachi city’s political and legal situation is not as good


as it should be. We don’t feel any entry barrier of in our target
market.

6. Technology.

Technology has a tremendous impact on our life styles, our


consumption patterns and our economic well-beings. To meet the
challenges ahead we will process through latest technology. The
product will be packed in best quality plastic bottle of modern shape
with easy raining and carrying style with beautiful label on it.
To capture lower class consumer market we will also introduce
our Juices in sachets of different Weights to be classified as for five,
ten guests serving. The second packing would be for lower and middle
classes.

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Product Launch Report

b)External Micro Environment


A market may be defined as a place where buyers and sellers meet,
goods or services are offered for sale, and transfers of ownership
occur. The market should be the focus of all marketing decisions in an
organization.

We consider three specific factors:

 People’s need.
 Purchasing power.
 Buying behavior.
After analyzing, we decided that we will make a special product with
reasonable price and quality of the product will be controlled, because
such types of products are associated with low involvement.

1) Suppliers.
A business can not sell product without being able to make or
buy it. That’s why the people or firms that supply the goods or services
required by a producer to make what it sells are critical to our
Marketing success.

We had meeting with the fruit formers and they are agreed to
supply us raw material for our product on bill-to-bill credit basis.

We also held meeting with other integrates required for preparing


of our product and concluded discussion ending with the terms and
conditions most suitable for our current needs.

2) Marketing intermediaries.
Marketing intermediaries are independent business organization
that directly aids in the flow of Goods and services between a
marketing organization and its markets.
For this purpose, we will give advertisement for appointment of
experienced distributors.

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c) Organization’s Internal Environment.


Resources Management

We believe in teamwork, therefore, we distributed different


departments between our groups and unanimously as under

 Syed Atta-Ur- Rehman Chief Executive.

 Ms. Reema Frooghi Director Marketing.

 Mr. Iftikhar Hussain Director Finance and Legal Affairs

 Mr. Ahmed Nawaz Director Human Resource.

 Mr. Fahad Hashmi Director Production.

Capital

Rs. 10,000 Million (Rupees: Ten Million only)

Technical Staff

We will hire the staff through News Papers advertisement.

Labor

Labors are easily available but they will require some


training, for this purpose we will arrange one month training
program.

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Location

Project will be located at SITE area, an ideal location for Food


Industries in Karachi.

Planning is the management process, as applied to marketing,


consists basically of:

 Planning a marketing program.

 Implementing it.

 Evaluating its performance.

In short, Planning is deciding now, what we are going to do later


including how and when, where and for whom. A clear purpose for
marketing research needs to be identified before any action is taken.
This purpose normally relates to a problem, issue or opportunity facing
the organization, which is causing uncertainty as to which direction to
take. When the purpose of the research is clear, it is possible to set
specific objectives that will indicate what the research aims to find out
and to identify the data (facts and figures) required to achieve those
objectives.

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Product Launch Report

STRATEGIC COMPANY PLANS


1. Mission Statement:

“To produce health care food products especially for Diabetic


Patients with consumable feature by general consumers. And to
build ‘s Image in Health Care food products”

2. Achieving Objectives:
The aim can be achieved through / by:
 Producing Quality Product with use of latest Technology.
 Maintenance of Highly hygienic processing environment.
 Health Standards.
 Reasonable pricing.
 Development of Brand Equity.
 Building of Company’s Image in Health Care food products.

3. Continuous Research & Developments

4. Current Situation.
 Giant competitors.
 Low economic conditions.
• Inflation.
• Govt. Policies.
• Financial Risk.

5. Objectives.
To be able to:
 Growth in Profit.
 Develop Market Share.
 Next year, we will introduce in other big cities.
 Second year, we aimed to enter in new market all over country
by creating awareness of our products and by increasing our
productivity.

6. Strategies.
 Every department has their separate objectives.

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 Coordination and cooperation between every department.

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STRATEGIC MARKETING PLANS

a) Situation Analysis.

“After analyzing situation and being new entrant in the market,


we will fix price level of where it will give more attraction
and satisfaction to the consumers with additional features of

b) Marketing Objective

 Developing Market Share.

 Advertisement campaign.

 Create Awareness.

c) Positioning and Differential Advantage


with its different packaging, easy carrying features
and sachets packing will differentiate from others. The
taste and unique feature of sugar free product will factor to
gain the position in the market.

d). Target Markets and Market Demand


 Our targeted market is big cities of Pakistan like, Karachi,
Lahore, Rawalpindi, Faisalabad, Hyderabad cities. In the
cities, majority people are very busy and social and economic
problems have impact on their lives and health. Tension
feelings are resulting in increase of Diabetic Patients day by
day. is of great attraction for them, which they need
refresh them with added feature of health care.

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Product Launch Report

MARKETING MIX

a) PRODUCT

 New Sugar Free, energy filled Juice


 Convenient
 Durable plastic bottle with easy carrying features
 Sachet packing of different weights
 Ingredients:
Fresh fruit juices (sugar extracted)
Aqua
Extract of Flowers
Herbs (imported from P.R. of China)
Vegetables
 Different flavours

b) PRICE
 When analyzing market situation we searched about the prices of
our competitors and we found that the minimum price of any
Juice is not less than Rs: 70/-. Therefore we decided to fix the
price of at consumer attraction level of Rs: 60/- per bottle.

c) DISTRIBUTION
 During a meeting with distributors we examined their distribution
channels, we created our new distribution channel as under:

PRODUCER  WHOLE SELLER  RETAILER 


CONSUMER KARACHI REGION

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Product Launch Report

The region will consist of 5 zones:

1) Karachi East
2) Karachi West
3) Karachi Central
4) Karachi North
5) Super Markets Zone (Whole Karachi)

The areas of 1-4 zones are those, which have been defined in the
provisional government schedule of administration. Super markets zone
will deal only with supermarkets/big stores of Karachi.

d) PROMOTION:
 Advertisements on T.V., newspapers, posters, and other
activities.

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RESEARCH OBJECTIVES

It is necessary to collect complete data/information before


launching a new product. Our research objectives are:

 An analysis of the current market


 Consumers buying behaviour and purchasing power
 SWOT analysis
 Competitors

CURRENT MARKET SITUATION:


Before launching our new product we collected information
regarding current market situation of Juices. For this purpose we
interviewed a cross section of population and diabetic patients on
random basis. For this purpose we visited Diabetic Centers, Super
Stores, restaurants and hotels etc.

Before starting of this project we decided that we would produce


a product completely on market orientation. We cannot cut / alter
consumer’s needs and should make our product meeting their
demands and needs.

After research and completion of our survey we decided to


introduce SUGAR FREE JUICE, which is full of vigor and which gives
more satisfaction and refreshment to the patrons. The main point of
is that it is not only for Diabetic patients but also caters to the
needs of weight conscious people.

CONSUMERS BUYING BEHAVIOUR AND PURCHASING POWER

Since is a low investment enterprise, we have fixed a lower


price for our product, which should attract a larger cross section of
consumers. This will give us a minimum profit at the launching stage.

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Product Launch Report

SWOT ANALYSIS

a) Strengths:

 We have two market segments:


For diabetic patients and weight conscious people.
 Our human resource, which consists of experienced and
professionally skilled executives, is our greatest strength.
 We have good quality product with reasonable price.
 Durable and unbreakable packaging.
 Different weight packaging and sachets of for lower class
consumers.
 In the past diet products introduced by other companies have not
grown in our market due to indifferent advertising and the
suspicion of consumers about the chemicals used in their
products, whereas we have listed our natural ingredients on all
our packaging and will stress this point in our advertising for
.

b) Weaknesses:

 is completely new product and our brand is unknown.


 Most of the customers avoid using new products.
 Unfortunately the area where the company’s factory is located
may adversely affect our production due to frequent load
shedding and shortage of water.

c) Opportunities:

 Raw material is easily available


 Literacy rate is increasing day by day
 Through international media people are well aware about these
types of products.

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 We have opportunity of creating awareness of among all


populations inclusive of diabetic patients. This opportunity will
result in increase of demand of our product.

d) Threats:
 Economic condition of the country
 Giant competitors
 Seasonal particularly in Northern parts of the country
 Law and order situation

e) Competitors:

 In Juice industry we are confronted by giants like Hamdard,


Ahmed Foods, Mitchell’s, Shezan and soft drink companies like
Pepsi and Coke, because of their existing strength in the market.
The soft drink companies already have their diet products in the
market.

Market Share of Competitors (Sales volume of 2008-2009)

S.No. Name of Company Sales Ratio

1. Hamdard (Waqf Pakistan) 42%

2. Ahmed Food Industries 17%

3. Mitchell’s 17%

4. Shezan 15%

5. Qarshi 9%

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ADOPTION STAGE

a) AWARENESS
Even though this product is not new for the market, its features
are new because it is the First Sugar Free Syrup. We do not foresee
any problem in developing awareness about . In our promotional
activities, we will highlight its feature. Moreover, our company is new
and our brand does not have any market share, for this purpose, we
have designed an effective advertisement plan through consultation
with Modern Advertisers.

b) INTEREST:
Due to low involvement product, people buy it habitually and do
not seek information about low involvement products. Is for
serving guests and for household use therefore, people will purchase it
very frequently in hot/summer season. We will produce it in different
tastes and different packaging, which is something the competitors
have not, and we hope to attract a lot of consumers.

c) EVALUATION:
The Company will lay stress on the product availability and since
competitive advertising strategy will be used, this will induce customers
to taste and evaluate the product.

d) TRIAL:
We will affix temporary stalls at different shopping centers like
Clifton, Tariq Road, Zaibunnisa Street, Haidry and at picnic spots on
holidays for free on the spot trial of .

e) ADOPTION:
Better quality, reasonable price and effective advertisement will
lure customers to use more regularly and frequently.

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f) CONFIRMATION:
After six months we will gather data from consumer markets
regarding .

g) DEVELOPING EFFECTIVE COMMUNICATION:


Communication plays a vital role in business. Effective
communication is very necessary for every organization to achieve its
goal. Therefore for effective communication we will take under
mentioned steps:

 Identifying the target audience


 Choosing a message
 Formation
 Media
 Timing

h) IDENTIFYING THE TARGET AUDIENCE:


Our product is for the masses but especially for diabetic patients.
Therefore every person is our target. As per data provided by Dr.
Mohammad Afzal Nobahar, Secretary General of Diabetic Association
of Pakistan and ex-Director General Health of Pakistan:

COUNTRY’S DATA

TOTAL POPULATION OF DIABETIC INCREASING RATIO


PAKISTAN PATIENTS EVERY YEAR

150 million More than 20% More than 8%

10 Million More than 9% More than 3.5%

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The Product is not new of the target market, because they are
already using it, but there is a strong need the Company creates brand
awareness of the product.

i) MESSAGE:
In advertisement, message plays a very important role. For this
purpose effective communication is necessary. Attributes of
products with different flavours with emphasis on new packaging will
be advertised in newspapers and electronic media.

j) CONTENT:
A Defined feature of products is that it is Sugar Free. Our
product provides full satisfaction to the consumer due to its good taste
and as it controls sugar level.

k) STRUCTURE:
Ceremonies, and housewives and workingwomen will be the
target market. All out efforts will be made to provide information about
the ill effects of the competitors’ products.

l) FORMAT:
The communicator needs a strong format for the message. The
Company will advertise the product on electronic media and print
media. For print media, the Company has to emphasize on the
designing of unbreakable bottle and sachet packing and rational
technique will be used for advertising with slogan:

m) MEDIA:
Our Company is targeting consumer market. So Company will
sue both ways of communication, personal and non-personal
communication for consumer market. But personal communication
system will be used in very little way. Our hired employees will
distribute handbills to the people at public places.

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Product Launch Report

Moreover, in non-personal communication, we will place


advertisements in Newspapers and on Television.

n) AD TIMING:
The selection of Ad timing will be before starting of news at 9.00
p.m. because at this time most of our target customers are watching
news.

o) FACTORS IN SETTING THE PROMOTION MIX


After developing the promotion mix, the Company has to
consider the following factors:
 Types of Product Market:
Advertisement of Juice is very essential to the consumer
market, and basically, we are targeting the consumer in both
ways we will have to allocate funds for the advertisement.
 Push Strategy:
We will give 15% attractive discount to our distributors
much higher than the competitors; this will increase their
interest to sell products. We hope this strategy will
definitely push our product.
 Pull Strategy:
Through pull strategy, we will try to define the real
attributes and features of our product and give reasons as to
why people should prefer products as compared to the
product of our competitors as our product has natural
ingredients as compared to our competitors as their products
have chemicals.

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PRODUCT LIFE CYCLE


Although, juice is not new for market, but its features and brand
have no market share and people have no awareness about its
SUGAR FREE attribute. For this purpose, we are using only following
tools to create brand and product awareness.

 Advertisement
 Sales promotion
 Public relation

Advertising
Advertising, collective term for public announcements designed to
promote the sale of specific commodities or services.

For , we take following steps:

Set Advertising Objectives.


Our aim to inform, persuade or remind to consumer, because the
target market is already aware of the product and they are already using it,
therefore, it is necessary to us to high light our products main features i.e. its
being SUGAR FREE.

Advertising Budget
is new for consumer market, therefore we need a large
campaign spending in order to built brand awareness and getting market
share 20% of our total capital is going to promotional activities.

Strategy
• Creating Message
• Media

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Message (15-second ad at TV)


We will deliver and define complete message to our target consumer
ad before create advertising message, we will have to describe the following:

Changing Message Environment


Due to critical situation of the country and political changes, people
watch television; especially watch news.

Message Strategy

For electric media:


First seen on our ad:
In birthday party, people enjoining with juices /soft drinks,
But one person whose face is showing an unhappy expression, then
one of the guests asks that person;
Hello Khan, how are you, why don’t you take any sherbets?
Khan responds “Dear kamran, I am fine, but I and my wife both are
Diabetic patients and as per doctors advise we cannot drink any juice.”
Then host enters and says to Asif,”why didn’t you tell me earlier”,
Then host call waiter to bring new , for Mr. and Mrs. Asif,

And also speaks about our product to Mr. Khan telling him that is
sugar free and he can drink it frequently without any fear.
Then Khan Face expressions change and he says now I am also
included in the party of normal people and can enjoy every party.

After which, side comes with background voice that:


A magic innovation for every one especially for diabetic
Patients, available in different flavors, “FEEL TERRIFIC WITH ”
Pineapple, and mix fruit.

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Slogan:
Pakistan ka phela sugar free sherbett
Music …. First voice
Sherbett, Maza, aur sehat sath sath
Music……
Second voice
Sub ka leay (five times repeat ion logo appears)

Different flavors make the consumers brand loyal and lure their heart.
The above slogan gives the meaning that our is not only Juice, it
contains, some herbal Essence for health and freshness, which are helpful in
controlling the sugar level.

For Print Media:


Same slogan with brief defining features with doctors
recommendations showing attractive unbreakable different flavors bottles to
catch and turn buying behavior of consumers mind.

Other promotional Activities


 By Hand bill:
We arrange to distribute handbills to people giving brief
definition of our Products and its benefits and attributes and
differentiate from exiting available in the market.

 By short-term incentive:
Umra ticket, offered to the consumer by balloting. Key chain,
gaggles and handkerchief offered as gifts. Two bottles Bundle
packaging offered on discount rate.

Public Relations
For succession of every product, it is necessary to leave a good
image in the mind of consumer. It provides a long term benefits if kept
in constant Process. From this way, people are informed by all about
the . Though features and column written by some authenticated
writer, which is also related with same field, for this purpose, we will
publish Interviews of few doctors’ field experts.

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ADVERTISMENT PLAN AND BUDGET

Duration Media Expenses


December to January Newspapers Rs. 12,000
February to April TV Rs. 1,800,000
May to August Stalls Rs. 60,000
September to November Other Activities Rs. 127,500

ADVERTISING CHAIN

December to February to May to May to September


January April August August to
November

NEWSPAPERS TELEVISION STALLS Other


Promotional
Activities

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BREAKEVEN ANALYSIS

S.No. Particulars Amount

1 Variable Cost
Raw material Rs. 19.25
Labour Rs. 3.25
Unbreakable Bottle Rs. 2.00
Packaging and Labeling Rs. 2.10
Other Costs (Utilities) Rs. 3.00
Total Variable Cost Rs. 29.60

2 Fixed Cost Rs. 450,000.00

Total Cost Rs. 450,029.60

Formula of breakeven = Fixed cost / (selling Price – Variable Cost)


= 450000 – (45.17 – 29.60)
= 28902.00

PRICING STRATEGY

S.No. Price Strategy Amount Remarks

1 Producer Selling Rs. 45.16


Price

2 Whole Seller Rs. 47.43 Plus 5% Margin


Selling Price

3 Retailer Selling Rs. 60.00 Plus 15% Sales


Price Tax an 10%
Margin

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There are many other phases leaving behind, which should in view &
analyzed overtime. Some of them are as follows:-

SWOT Analysis

Market Share of Competitors (Sales Volume of Previous Years)

Adoption Stage

Product’s Life Cycle

Advertising

Setting of Advertising Objectives.

Other Promotional Activities

Public Relations

Advertisement Plan and Budget

Advertising Chain

Breakeven Analysis

Pricing Strategy

Hence there is a great charm in launching this product & a Huge Market segments is awaiting for
them who want to avail the opportunity.

***** Ends *****

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