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Principles of Marketing

Marketing Plan
Of

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Principles of Marketing

ACKNOWLEDGEMENT
First, we pay our thanks to GOD Almighty, who made us
able to complete our task, before the time a lot.

We express our heartfelt thanks to our kind teacher Mr. Asim
Ilyas has always remained supportive to us, throughout our
project. His guidelines have been beneficial to us and who
taught us so well that we were in such a position to work for the
project with our own work.

We pay our compliments to all those persons who have
been cooperative to us in completing our project on time.

We are also grateful to all those persons who has helped us
for successful and
Completing of our project.

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Principles of Marketing
Once again, thanks to all.

Dedication
We want to dedicate
Our this project
Report to our
Beloved “Parents”
And our Respectable
“Teachers” & “Seniors”
We also dedicate this
project repot to each
3

4 .Principles of Marketing “Group member” for their team work and efforts.

No. INDEX Page No.Principles of Marketing Sr. 1 Abstract 05 2 Mission Statement 07 3 Vision Statement 08 4 Company Overview 09 5 SWOT Analysis 11 6 PEST Analysis 13 7 Situation Analysis 14 8 Segmentation 15 9 Targeting 16 10 Positioning 17 11 Differentiation Strategy 19 12 Marketing Mix 20 13 Product 21 14 Price 22 15 Place 26 16 Promotion 30 17 People 18 18 Financial Projections 32 5 .

Chuck Wagon will excel relative to the competition and positioned themselves get more for same. sales forecasted for 5 years and also analyze the financial performance and position. By PEST analysis. We have done SWOT analysis in order to match the company strengths to attractive opportunity in the environment. The analysis of marketing mix on the basis of 5 P’s used by Chuck Wagon which tells us to handle in different situations and increase customer value by exceeding customer’s needs and wants. We calculated the breakeven point in sales as well as in units. positively or negatively. Chuck Wagon segmented the market on the basis of different variables and then selected its target market in two ways: the age group from 18 to 25 is the primary age where brand building efforts could take place. Perhaps one of the most obvious examples is fast food. Chuck Wagon positioned itself as status symbol. get the information about environmental forces include all the actors which are close to the company that affect. We will provide high quality items that require minimal cooking time. 6 . while eliminating or overcoming the weaknesses and minimizing the threats. by offering a superior product. Situation analysis describe us with today’s hectic lifestyles.Principles of Marketing Abstract Chuck Wagon introducing a mobile restaurant in which customers can either dine in or take-away meals. The financial projections have been done on the basis of assumptions. timesaving products are increasingly in demand. Our secondary target is between the ages of 25 and 40. the starting capital is 12 million rupees. which are a heavy lounge/restaurant user group. coupled with superior services.

7 . Mission Statement “We tend to become the market leaders in mobile restaurant business and provide high quality food and create customer’s value by exceeding customer’s expectations”. We are introducing a mobile restaurant in which customers can either dine in or take-away meals. Vision Statement “Chuck Wagon envisions the best customer services experiences by our customers-one that cheer up the senses and fulfills even the unexpressed wishes and needs of our customers’. Financially. our mission will be to create a business which will be sustainable and provide steady growth for many years to come. Chuck Wagon has four owner-managers who each have an equal stake in the business.Principles of Marketing Company overview Chuck wagon will be incorporated in different cities of Pakistan. Our focus will be on providing high quality food and convenience for our customers.

8 . We have an excellent staff which is highly trained and very customer attentive.Principles of Marketing SWOT ANALYSIS WEAKNESSES STRENGTH We have advantage. A limited marketing budget to develop brand awareness. Lack brand equity. A slump in the economy reducing customer's disposable income spent on eating out. THREATS The current unstable political condition of Pakistan is a threat to us. We can launch a new product line. We have more variety & highquality food offerings that exceed competitor’s offerings in quality. the first move We establish strong relationship with vendors that offer high quality ingredients and fast delivery schedules. In future. We have the opportunity of introducing innovative ideas and recipes. we can build a proper restaurant as well. We can capture the diverse market segments. presentation. Our competitors may plan to come into mobile restaurant business. We have the advantage of mobility. and OPPORTUNITIES price. We have the locational benefits as we have focused on various institutions and main markets.

Initially. This factor decides which class we are going to target. 2. Political Stability As we want to become leaders in our business. Consumption Behavior 9 . Income Income is an important economical factor of the Chuck Wagon. Economical Factors a. the upper middle & middle class. we are focusing on the upper class. Political policies a.Principles of Marketing PEST Analysis 1. Chuck Wagon maintains & designs its price policies keeping in view the income & income distribution of the people living in the Country. b. political stability of Pakistan plays a key role. c. Price Policies A Price policy is also an important factor. Government Policies Our restaurant is bound to obey the government policies and follow the rules and regulations prescribed by the government in order to run this kind of business. b. The current unstable conditions of Pakistan can prove a threat but we have the security measures in mind.

Up-to-date Technology The machinery we have is of the latest technology and work as enterprise resource planning. upper middle class and the middle class as our products have both quality and taste that does not comes cheap. Social Class We target the upper class. we check the behavior of people regarding the payment methods that is whether they pay plastic money or cash. Research & Development Research & Development is also an important factor in the technological factor. Social /Cultural Factors a. Payment Methods Payment method is an important factor. Technological Factors a. Chuck Wagon always supports the work of research & development in order to introduce new technology. Culture We have brought up the old Pakistani culture of vendors with just a little modernized touch. Religion The food provided is purely halal and all the activities performed are pure in the boundaries of Islam. In this method. b. their liking and disliking and accordingly made the decisions. 4. c. 3. c.Principles of Marketing Chuck Wagon has also estimated the consumption behavior of people. b. 10 .

Perhaps one of the most obvious examples is fast food. They don’t have time to spare on travelling and restaurants where they have to wait long for their meals. The consumers spending on fast food outlets grew annually. The growth rate in consumer expenditures on fast food has led most other segments of the food-away-from home market for much of the last two decades. Now People want quick and convenient meals.Principles of Marketing c. We have a stock of machinery to run our business activities. the proportion of away-from-home food expenditures on fast food also increased. Since 1982. 11 . Capital Formation Capital formation means stock of machinery. timesaving products are increasingly in demand. the fast food providers are coming up with new ways to market their products that save time for consumers. Knowing this. Situational Analysis With today’s hectic lifestyles. there is increase in growth rate in consumer spending at fast food. The rapid rate at which the fast food industry continues to add outlets is as much a reflection of consumer demand for convenience as it is a reflection of demand for fast food itself.

i-e. this is the segment that has effective spending power.  Young & Middle aged professionals who work close to the location. 12 . Lahore. demographic.  College and university students  An income over 10. Demographics  Male & Female.  Age 18 – 40.Principles of Marketing Segmentation After the situational analysis.000. psychographic. The profile for Chuck Wagon’s customers consists of the following geographic.  We have targeted the institutions and important markets. Gujranwala and Islamabad. Chuck Wagon segmented its market through different variables. and behavioral and benefit factors: Geographic’s  Our immediate geographic target is the cities.

 When ordering.  There is value attributed to the appearance or presentation of food. Behavioral Factors  Enjoy a high quality meal without the mess of making it themselves.  Authoritarians.  Innovators & early adaptors.  Tend to patronize higher quality food. Extroverted and Ambitious. Psychographic  Upper Class.Principles of Marketing  Eat out several times a week.  Are cognizant about their health. Benefit Segmentation  Quality  Convenience  Service & Speed 13 .  Upper Middle & Middle class. health concerns in regard to food are taken into account.

14 .Principles of Marketing Target Market Chuck Wagon intends to cater to the bulk of youngsters and middle age professionals in Lahore. They are more flexible in budgets and seek more than a value/price relationship. It is also a group of people who is always ready to try new products and like to eat healthy food but don't want to compromise on taste. It is our goal to be "the extraordinary fast food place" and we believe that the age group from 18 to 25 is the primary age where brand building efforts could take place. which are a heavy lounge/restaurant user group. We have chosen this group for several important reasons. Our secondary target is between the ages of 25 and 40. They are on limited or fixed incomes and seek a value/price relationship that will not stretch their budgets. Gujranwala and Islamabad.

All employees will go through an extensive training program and only experienced people will be hired. Chuck Wagon positioning will leverage their competitive edge:  Product By offering high quality and diversity of product we will satisfy the consumer needs. easy approach to restaurants which ensure that Chuck Wagon maintains positive relationship with the customers.Principles of Marketing Positioning Chuck Wagon positions itself in the mind of consumer as status symbol. hygienic and a little sophisticated brand that respects values. Our primary service is mobility that means near your doorstep. The tag line is “Chuck Wagon mai hai Kuch Bat” which shows the commitment of quality of food and service is clean. 15 . Chuck wagon increase the brand recognition to that point customers attach themselves with chuck wagon to enhance their self-image. All employees will ensure that the customers are having the most pleasant dining experience. Customers expect an ambient. The product will also be developed to enhance presentation. everything will be aesthetically pleasing.  Service Customer service will be the priority.

 Enthusiastic and friendly staff. Differentiation Strategy/ Competitive Edge  The service of mobile restaurant gives convenience to customers.  Supporting merchandise items that support company's brand building. finding the target segment and positioning itself. each company needs to come up with an offer.  Vertical Market System. coupled with superior service. Chuck Wagon will excel relative to the competition.Principles of Marketing By offering a superior product.  ERP System in organization. The 5 P’s used by Chuck Wagon are: 16 . Marketing Mix (5 P’s) After segmenting the market.

Promotion 5. We explain our product according to three levels: yy Custo Custo mer mer Care Care Mobile Mobile Service Service Chunk Chunk Wagon Wagon High High Qualit Qualit JUNK FOO D More More Variet Variet yy 17 . People Product Chuck wagon just not offering food it involves a lot more than eating food. Product 2. Price 3. Place 4.Principles of Marketing 1.

Chunk Wagon offers more variety with high quality food. Branding Strategy Brand name: “CHUCK WAGON” We selected the brand name considering our main differentiating feature ‘mobility’. We are focusing on our features rather than the pricing. Our salient features are:     Mobility Quality Time saving Distinctive Taste 18 . by which customers can satisfy their need of hungry or eating. A product line includes: Chuck Wagon Fast Food Piazzas Beverages Deserts The augmented product is our service of mobile restaurant and also customer care by taking feedback and enhancing loyalty.Principles of Marketing The core product which is offered is junk food.

Chuck Wagon’s pricing strategy is also Cost-plus strategy.Principles of Marketing Price Price is an important factor in the marketing mix. because our objective is awareness about the brand. 19 . Our price covers the value provided to the customers that is the price the customers pays is worth the food quality and the services. it is only who generates revenue. As according to the Philip Kotler. Initially. We also charge the psychological price by reducing the customer’s fatigue by providing food at convenient places. when our marketing objective is to create brand awareness than the price charge by the company is cost-plus strategy.

Implementation.” We will use the selective distribution channel. Marketing Management: Analysis. inventory. 20 . By using it. distribution channels etc. can develop good working relationships with selected channel members and expected a better than average selling effort. (Upper Saddle River. NJ: Prentice Hall. 2000). 316. Place “Place includes the company activities that make the product available to the target consumers. It includes locations.Principles of Marketing Source: Philip Kotler. p. 10th ed. Planning. and Control.

Manufactur Manufactur er er Chuck Wagon Traditiona l Model Wholesaler Wholesaler ss Consum ers Chuck Wagon’s Model Our restaurant will cover the following city locations:    Islamabad o Blue Area o Jinnah Super Market Lahore o Jail Road o Defense Burki chowk Gujranwala o GIFT University o Satellite Town main market 21 . Chuck Wagon along with their strategic partner acts as unified and strong power in order to fulfilling the consumers need. Chuck Wagon focuses on Vertical Marketing System instead of traditional model.Principles of Marketing In distribution channel. In VMS.

we will do below the line activities. For targeting our audience. The right message has to be communicated to the right audience through the right media. because they refer to specific audience in specific region. We are doing promotion by objective-task-method. 22 . feel positive about it and remember it.Principles of Marketing Promotion The various promotion channels being used by Chuck Wagon to effectively communicate the product information. There are three main objectives of advertising for Chuck Wagon’s are to make people aware of an item. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending.

Folks.  “Food.Principles of Marketing Activities Frequency Cost/Year Mobile Marketing Social Media Bill Boards Banners Flyers Once in Month Updated 8/Quarter 400/Quarter Distributed at different institutes Universities & Organizations Twice in Year All time by different 5000 320000 160000 40000 Stands Event Sponsorship Displaying LCD at Sale Point 75000 200000 - names like musical night.baap ke zamane ke daam”. movie.To Chuck Wagon”  “Aap ke zamane mein . so get up and get away. etc.000 Some of the projected marketing campaigns of Chuck Wagon’s are:  “You deserve a break today. and Fun”. There is flyer and bill board design given below: 23 . Total 800.

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Front line employees 3. 26 .Principles of Marketing People Chuck Wagon’s understands the value of both its employees and its customers. It understands the fact that a happy employee can serve well and result in a happy customer. Customers 2. This is important as it must precede external marketing. This includes hiring. Chuck Wagon continuously does Internal Marketing. The level of importance has changed to be in the following order (the more important people are at the top): 1. training and motivating able employees.Middle level managers’ 4. This way they serve customers well and the final result is a happy customer.Front line managers The punch line “Chuck Wagon mai hai Kuch Bat” is an attempt to show that the employees are working with brand that will love to serve the customers.

of Working hours/day 8 No. of Months in One Year 12 No of Working Days in One Year 365 No.Principles of Marketing Financial Projections KEY ASSUMPTIONS Project Assumptions Projected Life of The Project in Years 10 Sponsors' Equity 100% General Inflation Rate 13% Operating Assumptions Total No. of Days in One Year 365 Total No. of Shift 2 Depreciation Rate Assumptions Vehicles 10% Machinery 10% Fittings & Installations 10% Office Equipments 10% Furniture & Fixtures 10% Working Capital Turnover Assumptions Column1 Raw Material Inventory 30 Days Raw Material Consumption Column 2 Column3 Days Raw Material 30 Consumption 27 .

185.500 4.500 375.000 4th Year 2.475.050 8.000 1.050.050 8.110 9.000 165.900.052.050.OH Exp 1st Year Utilities 2.000 485.166.052.060.575.050 8.500 5.477.050.373.500 2nd Year 3rd Year 2.000 4.000 300.250 5.121.000 2.050.000 4.222 10.610 375.322 10.454 28 5 5 5 4 1 1 .609.900.050 300.000 1.000 2.150 101.331.750.000 1.500 199.430.000 4.609.000 4.155.725.Principles of Marketing Days Goods available for 30 sale Days Goods available for 30 sale Days Stores & Spares 30 Consumption Days of Total Annual 30 Expenditure Finished Goods Packing Material Ware house Expenses Note 2.579.Cost of Good Sold Statement Note 2.000 1.800 Purchases Raw Materials Lahore Gujranwala Islamabad Note B.000 181.000 4.684.746.875.000 3.792.Cost of Goods Sold Statement Opening Balance Purchases (Note A) Freight Inward Cost of Material available for use Closing Inventory Cost of Material use OH Exp (Note B) Cost of Good Sold Manufactured Cost of goods sold Note A- 1st Year 2nd Year 3rd Year 4th Year 3.121.222 1st Year 2nd Year 3rd Year 4th Year 1.650 5.000.000 925.900.000 1.500 3.000 1.299.000 2.725.166.000 4.050 8.000 4.455.270.090.000 1.610 9.100.900 4.050 485.000 150.210.455.030.000 4.000 1.430.000 4.000 3.515.000 4.000 4.

000 664.000 2.000 664.000 180.Principles of Marketing Fuel Repair and Maintenance Tool Expenses Misc Depreciation @ 10% .200 232.Fittings & Installations .000 31300 12.550 155.230 374.Fuel and Power Total 1st Year 2nd Year 3rd Year 4th Year 5th Year 2.500 51.992 Income Statement Not es 1st Year 2nd Year 3rd Year 4th Year 5th Year 29 .500 4.544 250.998.400.110 37.448.792.030.579.684.800.000 800.550 155.500 4.000 1.460.199.000 225.500 4.000 360.000 880.573.600.Packing Admin Expense .000 257.080.000 336.802.000 1.Utility .060.000 40.500 4.Office Equipments .000 350.480.360 968.322 Sale (Note .636 109.000 4.280 382.000 40.000 180.100 4.Salaries (6 * 4) .200 2.434 350.905 1.727 273.000 40.096 389.000 100.090 1.000 250.800 374.000 664.000 180.544 2.500 4.550 155.200 343.189 357.000 3.922.182 54.000 Operating Expenses Selling Expense .500 367.500 103.035 325.715 1.477.273 37.Advertisement (Marketing Budget) .619.000 180.064.050 37.Machine .171.000 5.624.676 275.095 382.900 265.000 5.225 53.000 3.000 50.550 155.092.Vehicles Total FOH 1.035 225.000 664.045 106.000 40.000 2.000 360.050 37.000 367.Furniture & Fixtures .Salaries (1 * 3)+1 .1) Stations Lahore Gujranwala Islamabad Average Price /Persons 400 350 450 Total sale Note 3 - Persons 14500 8800 8000 Total Sale 5.000.

000 6.000 12.768 18.050 -32.982.690 629.189 792.000 8.550.400 868.217.889.000 1.500 7.289 14.987.992 2.447.000 930.300 1.500 337.950 485.000 12.085.350 21.260.616.050 4.000 12.550 4.982.450 12.000 13.645.000.000 102.434 335.480.768 Balance Sheet 1st Year 2nd Year 3rd Year 4th Year 5th Year Tangible Fixed Assets Office Equipments (Note E) 375.131 12.250 1.093.045.227.000 280.460.000 12.462.050 4.785 277.353.634 5.000 6.Cash .473.289 Fittings & Installations (Note F) Furniture & Fixtures (Note G) Machinery (Note H) Vehicles (Note I) Total Fixed Assets Current Assets: .166.000 1.000 12.050 13.500 5.928.000 12.768 450.000.573.609.Principles of Marketing Sales Cost of Goods Sold Gross Profit Net Operating Expenses Earning Before Tax Tax Rate Net Profit / -Loss After Tax 1 2 3 12.199.770.000 84.000 1.439 2.856 10.500 9.289 250.164.333.240.450 1.519.000 10.800.000 400.693.000 101.000 1.716.300 300.000 -32.468 13.768 56.950 300.080.052.596.550.350 3.624.258.200 120.061 99.672 3.839 12.688.217.620.446 138.850 225.000 1.600 8.000 320.350 4.258.000 1.768 1.000.198.740 3.744.922.228 7.000.500 3.400 262.520.889.Stock .377 10.050 99.Accounts Payable Total Liabilities 277.966 1.Bank Balance Total Current Assets Total Assets Owners Equity: Capital Introduced Accumulated Profits Current Liabilities: .289 375.682 5.430.412.539.000 1.950 4.768 30 .765 3.244.131 653.157.000 1.610 5.131 12.768 12.737.400 4.768 93.960 9.222 5.923 1.916 58.418 12.333.000 8.427.450 5.000 360.695 8.000.950 145.678 653.731 5.131 16.991.000 240.395.000 1.869.197.244.000 -32.737.000 12.980.440.316.000 1.496 1.651.

Office Equipments 31 .Principles of Marketing Note E .

000 Generator 15 KVA – Local 4 250.000 Note H .000 440.000 1.000 Misc 4 100.000 168.Furniture & Fixtures Items Furniture No.Principles of Marketing Items No.000 Total 375.000 400.550.500 Note F .000 32 .Machine Description Items Pizza Oven No.000 Telephone Sets 3 500 1.000 Total 400. of Units Cost/Item (Rs) Total Cost (Rs) Computers 8 25.000 Printers 1 6.000 200.000 150. of Units Cost/Item (Rs) Total Cost (Rs) 4 100.000 6.000 Total 1. of Units Cost/Item (Rs) Total Cost (Rs) 4 110.000 Note G .000.000 400.500 Multimedia 4 42.Fittings & Installations Items No. of Units Cost/Item (Rs) Total Cost (Rs) Air Conditioners 5 30.

800.000 Note I .000 960.000.000 Total 1.000 220.000 180.Principles of Marketing HotPlate 4 45.500.000 6.000 33 .645.000 Motorcycles 3 40.Vehicles Items No.000 Vans 3 175.000 Total Amount 6. of Units Cost/Item (Rs) Total Cost (Rs) Trucks 4 1.000 120.000 525.000 Frier 4 55.000 Misc 4 240.

975.Advertisement 800.000 11.412.966 1.448.000 2.637 1.Freight Inward 3.288.600 14.435.360 968.353.000 13.Salaries .725.Advertisement .Utility .645 Break Even Sales 12.688.000 360.200 374.377 6.856 Payments COGS (less Depreciation) Selling Expense .095 360.000.544 382.740 1.500 250.172 2.619.000 14.000.197.171.869.532.Principles of Marketing Cash Flow Statement (Direct Method) Receipts Sale 12.676 275.544 2.089.715 1.400.035 225.280 382.800 374.480.157.000 880.000 3.000 232.000 .596.064.000 7.087.905 1.480.661.Salaries .400 1.200 2.000 8.353.000 350.275.230 350.496 9.Fuel and Power Cash at the end of the year 18.Fuel & Power 1.000 .100 225.258.000 367.000 367.200 13.096 389.000 800.Purchases .Utilities 2.156.045.802.998.000 .Packing Admin Expense .000 12.000 Less: Variable Cost .035 325.000 2.560 9.960 16.000 336.000 34 .500 343.000 150.360 357.994 14.

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