You are on page 1of 39



Mr Adnan Shabir

Muhammad Zeshan
Kashif Maqbool
Syed Aman Ali
M. Waqas Amin

Page 1 of 39


We are grateful to Allah, Who enables us to complete this report

effectively. We are also thankful to our respected teacher Sir Adnan
Shabbir, because without his generous co-operation, the accomplishment of
this report would not be possible. Besides this we are also thankful to our
respected fellow Nadeem, a shoe marketer in Islamabad, who helped us a lot
in designing our project.

Page 2 of 39


To our Loving Parents and Honourable Teachers.

To all of those who have served and sacrificed for the sake of Islam.

Page 3 of 39

Table of Contents

2.1. Market Needs
2.2. Market Analysis:
2.2.1. Market Trends
2.2.2. Market Demographics
2.2.3. Market Growth
2.3. Company:
2.3.1. Vision
2.3.2. Mission
2.3.3. Product Offering
2.3.4. Positioning
2.3.5. SWOT Analysis
2.4. Competition
4.0. Marketing Mix:
4.1. Product
4.2. Price

Page 4 of 39

4.3. Place
4.4. Promotion
4.5. Services
4.6. Sales Plan
5.0. Financial Aspects:
5.1. Projected Income Statement
5.2. Projected Income Statement (next three years)
5.3. Projected Balance Sheet

Page 5 of 39

Executive Summary
Goal of ZAWK is to become the leading men foot wears company in the
future, to gain the repute of a market leader and trend- setter in men’s
fashion, to provide footwear range that speaks of its innovation & high
quality at value price for men, to achieve expertise over the time in order
to give novelty of patterns and designs to our shoes.
Company will provide products through extensive and exclusive
channels. Image in the market of the ZAWK would be maintained by
quality products. Fashion adopted by ZAWK is fast, prompt and
unmatchable in the market. Culture of the company is maintained on the
high Islamic ethical values.
We will manage all costs in accordance with
the range of price that we plan to offer. Most of the stores sell shoes at
100% profit. We will discourage this trend and will focus on prices
according to the quality and nature (formal or casual) of the shoes.
Price is also an important component of value. In recent
years, customers both in consumer and business markets have sought
better value in goods and services that they consume—we are focusing on
that—we will provide our customers best use of their money for that
particular product i-e shoes. We have priced our products so that the
money of the customer is valued as much as our own and they are
provided with quality products.

Our shoes are unique and designer made

so the people interested in our product will belong to upper middle class
and middle class. We will target these segments and will place our
product according to their shopping place preferences.
Company will start its business with capital amount Rs. /- 70, 00,000.
Estimated plant and machinery would be of amount Rs. /- 10, 00,000 and

Page 6 of 39
future cost would be of Rs. /-7, 50,000. With this investment company
will be able to earn profit Rs. /-5, 03,200 annually.

In order to profitably satisfy customer needs, ZAWK must understand its
external and internal situation, including the customer, the market
environment, and the firm's own capabilities. Furthermore, it needs to
forecast trends in the dynamic environment. As we talk about the
dynamic environment, it gives us a clear picture of the environment.
There are so many aspects in market which are changing so rapidly that
we have to keep eye on them because it affects the product or
organization directly or indirectly.

A very formal way of situation analysis is a way of five C’s.

• Company
• Collaborators
• Customers
• Competitors
• Climate


• The company provides products through extensive and exclusive

• Image in the market of the ZAWK would be maintained by quality
• Technology adopted by ZAWK is fast, prompt and unmatchable in the

Page 7 of 39
• Culture of the company is maintained on the high Islamic ethical
• Goals of ZAWK are to be the leading men foot wears in the future.


• Distributors
• Suppliers
• Alliances


• Market size of ZAWK is initially to cover the local market and then to
enter in the main markets nationally and internationally.
• Benefits to the customers are that we will guarantee our product and
the service of the shops is very comfortable for them.
• Motivation is a very basic aspect to customer. We motivate them by
our exclusive advertisement.
• Retail channel – as listed there should be at least three to four
channels in the local market. Target market provides the clear picture
of it.
• Consumer information about the product is provided as listed through
proper and exclusive ads in magazines, newspapers etc.
• Buying process is very simple, that’s not a single customer find any
difficulty in purchasing the product.
• Quantity purchased at a time should be in accordance with customers
need and demand.


Page 8 of 39
• Direct competitors are those who are competing with us in the same
target market.
• Indirect competitors are with some brands like Service, Bata, Hush
Puppies etc.
• Products of ZAWK are very unique and versatile from existing
competitors in the market.
• Product Positioning is “EASE AND COMFORT”
• Strengths and weaknesses of competitors would be look in the way
which is beneficial for us and provide us with some new changes in
feet fashion industry.


The climate or macro-environmental factors are:

• Political situation is very good in Pakistan. For the first time in

Pakistan the tenure of the government is completed.
• Economic environment in Pakistan is very good. Economy is growing
very fast and tremendous growth is occurring. There is a great
Economic environment in Pakistan for opening the new business.
• Technological environment is also great in Pakistan. It should be
upgraded as for as the industry is concern.
• Law and order situation is also very good in Pakistan. Many national
and international investors are investing in industries.


As we talk about the foot wear, we all know that it is a basic need of
every one, its more necessity rather than a luxury.
If we talk about the market need, need is always there for shoes in the
market. The idea which we apply to cope up with the need is that we
convince our customers to fulfil their needs by using our product. As
the analysis is conducted by us, basically each and every customer
demands something new and unique in the market. The uniqueness

Page 9 of 39
and versatility is the ultimate demand of the customers in the market.
Every one thinks that the product which he or she buys would give
him or her different feelings from others. In market needs the
demographics, trends and growth is conducted by keeping a strong eye
on customers demand and needs.

ZAWK shoes are providing the market with a wide range of

fashionable shoes with an unprecedented selection. Currently, men
must travel up to Seattle in order to come close to approximating
ZAWK shoes selection. ZAWK shoes seeks to fulfill the following
benefits that are important to their custom

Selection: The widest selection of graceful gent’s foot wear, which

provides customers with according to their will or desire.

• Accessibility: The central location and wide range of business hours
designed to accommodate all customers’ needs.

• Customer service: The patron will be impressed with the degree of
care that they receive.

• Competitive pricing: All products will be available in the market
according to price competition, which is conducted very carefully before
setting the price. The price which a customer pays for the product will
definitely according to his or her perception.


As it was said by MICHAEL DELL. (1965)
“We’re always looking to see what we can do to make
our customers’ lives easier or save them money. It
pervades every part of the company.”

Page 10 of 39
The most important part of the market is customers. So the all
concentration in conducting analysis is focused on the customers. The
situation of market is in dynamic environment. All factors in an
environment is changing so rapidly that every customer demands
something new. Shoe market is also experiencing same sort of situation,
especially in gents feet wear the customer always demands some thing
new and inspiring. Currently the competition is very tough and
challenging in the market. The market analysis is conducted by keeping
strong eye on customer; it is analyzed in the following ways.

• Environment of the market is very good. It’s an ideal environment to

launch a new business in the market. Shoes are the basic necessity of
every one. Every customer wants a new and change thing in the market.
• Current Situation of market also ideally suits the business.
Increasing population is not a hidden fact. Every one knows that this
increase is creating new opportunities. The need of the hour is that we
have to grab them as soon as they appear in the market.
• Customers Demand is also ever increasing in every commodity
including foot wear. It should be fulfilled by an appropriate supply.


The market trend for men's fashionable shoes is toward a wider selection
of common design elements. Over the last few years, there has been a
proliferation of several design variations from a base design. A base
design is released and then there are many different spurs that have
common elements but include a few distinctive characteristics. While this
is great for the customer because it allows them to be fashionable but
distinctive, it is tough for most retailers because it increases their
overhead in the form of inventory. This trend is an ideal for ZAWK shoe
which has a business model that allows for stocking many different

Page 11 of 39
One another feature of ZAWK will that we will introduce our product in
the market with a new trend. We will be the trend setter in gent’s foot
wear. We will introduce the customers with so many options that
ultimately the customers will be attract towards our brand. It was one of
the best feature of ZAWK that customers should be invited to discuss
about those particular designs which are in fashion. They have an open
discussion and there opinion has very great value for us. In short
customers are given so importance that ZAWK and customers mutually
set the new trends in the market.


Demographic characteristics describe the population and its behaviour in
the market where the company offers its products. Target market gives
the clear picture about that particular area in which we emphasis more to
sell our product. As we talk about the population and its behaviour in our
particular market area. We find the following characteristics in them

• Demand something new:

Customer’s behaviour about demanding the
new product is very clear. They demand something new unique and

• Fashion oriented:
Fashion is being now the necessity of men also, as
it was early attributed to women only. Customer’s behaviour reflects
its fashion oriented approach.

• Durability of products:
Durability of the product is also another crucial
issue. If a customer pays some money for purchasing some product, it
is in the instinct of the customer that he has to feel that he utilizes his
money properly. So durability is an important and influential issue.

Page 12 of 39

• Grace:
Customers behaviour also shows that the grace should be
remain in the product as essential ingredient.

• Simplicity:
Every customer wants to look simple in his clothing and
foot wearing.

• Environment friendly:
A product, which a customer purchases, would be
environment friendly. It should not harm the environment in any way.


There is a bright future of
our shoe in the market. We will provide shoe to upper middle and
-middle class. But our priority sector is upper middle class in small and
big cities. The purpose of our company is to serve all sectors, cities and
ages in quality and quantity. There is a growing number of upper middle
class in all the cities of Pakistan, so if we cater the needs of upper middle
class properly and along with it other classes we can not only increase our
profit margin but also serve a large sector of society. We will initially
provide our shoe on retailers’ shops and in the next step with the
expansion of our product company aims to provide its shoe on its on
franchises in major cities such as Islamabad, Lahore, Karachi, Faisalabad.

The product that we plan to market is “Designer Shoes for men”. The
idea is to hire Pakistani designers who will design shoes according to the
latest trends and fashion in our country and to sale these shoes in a
different and unique environment. The most important aspect of the

Page 13 of 39
whole venture would be the pricing. The shoes will be available in ranges
affordable by Middle and Upper Middle Class mostly.

Why Shoes?
When we were given this project the first thing that came to our minds
was Designer shoes, which are made in Pakistan. This is something that
most of the males, especially teenager boys have been looking forward to,
for a long time. If they were introduced in the market, we ourselves
would be the first to buy them. We know a lot of people who have the
same problem. There are no good shops in about many cities where you
can buy shoes worth their price.
The shoes that are normally available are not of good quality or design.
The only choice left for the buyers then is to buy imported shoes, which
are brought from Thailand, Malaysia or Singapore mostly. These shoes
are sold at an abnormally high profit, almost 100% more than their cost
price. Price of the same pair of shoes varies from shop to shop.

Furthermore, the environment of the existing shops is very intimidating.

There are shoeboxes flying all over the place. Most of the customers’
attention is focused on trying to avoid being hit by the box rather than on
buying the shoes.


Company’s Name:

Page 14 of 39

Company’s Vision:

“To become the leading footwear brand in Gent's fashion.”

Vision is the future prospect of any thing. Our’s product vision is seems
to be very clear and bright. ZAWK shoes provide the customer with
optimal choices of best foot wear ever made. Serving customers need
with the best is the motto of ours. ZAWK shoes would be the optimal
choice for a customer.It provides him the fantastic and memorable
feelings when he use to wear that product. Providing customers with
comfort and ease is the ultimate objective, mission, goal, aim of ZAWK

2.3.1 Mission:
Our mission is

• To gain the repute of a market leader and trend- setter in men’s


Page 15 of 39

• To provide footwear range that speaks of its innovation & high quality
at value price for men.

• To achieve expertise over the time in order to give novelty of patterns

and designs to our shoes.

• To develop and design a range of trendy and stylish footwear to

enhance the choices for men.

• To make efforts to let people be aware of the importance of high

quality of footwear, to popularize the "feet fashion" culture & also to
provide quality life and to contribute to the society.

• To be a good, solid company that maintains its intense focus on

profitable growth and operations by providing high quality &
unlimited opportunity in a wide range of men footwear.

• We believe that a well-founded reputation for scrupulous dealing is

itself a priceless asset. Thus, in pursuing the mission we shall at all
times be guided in our conduct and decision making by moral &
ethical values.

The product as already stated is Designer Shoes for men. The name is


Page 16 of 39

t fashion

This is what we want to promote:

Designs that you can imagine and many that are beyond your
Feet Fashion is another catchy line, which symbolizes the revolution in
footwear that ZAWK hopes to bring about with its exquisite shoes.


The footwear will be available in the following categories

• Casual
• Formal
• Bridal and Party Wear
• Customized

Each category will contain shoes of two basic types:

• Sandals (Flat/ Medium)

• Shoes (Flat/ Medium)

Size Chart

The footwear will be available in the following sizes

Shoe Sizes
English - 3 4 5 6 7 8 9
European 35 36 37 38 39 40 41 42
ZAWK SHOES 5 6 7 8 9 10 11 12

Page 17 of 39

Difference from other Brands

The factors which makes it different from already existing shops is the

• Individuality and creativity of designs.

• Price matches quality of product.
• Innovative packaging and presentation.
• Affordable prices.

Customized shoes are another area of this field explored for the first time
by Pretenses. All these features add up to a brand new product rather than
a modified one. And also the act of selling and the environment of our
shop will be noticeably different from other shops, selling shoe.

The idea is to create luxurious shoes that are practical for all occasions
while creating an exclusive Pretenses look. Another common problem
that customers face during purchasing is size of the shoe. We make
similar design of shoe in a variety of sizes (numbers) that provides the
customer with an appropriate selection.

Our idea is to make similar shoes in different sizes.

Page 18 of 39

 Flat (max ½”)

 Medium (1-11/2 ”)

A problem from the manufacturer’s point of view is the copying of styles

in cheap quality stuff, which is then sold at a very low price at stalls in
Liberty. ZAWK plans to overcome this problem by ensuring copyrights
of the designs that our company will make. Furthermore

• Quality and comfort level

• Perfect balance

• Extra fine finishing

• And the Personal touch in customer satisfaction and dealings

Will make sure that our customers are loyal and they will return to us for
more purchases rather than buying substandard shoes.


Purchase of Raw Materials:-
Raw materials required:

• Leather

• Thread

• Suede

Page 19 of 39

• Clothes of different kinds

• Rubber for soles

How will we get hold of these materials?

We intend to offer our customers, prices that are affordable and according
to the quality of the shoes. So we are planning to buy all the raw
materials from wholesalers at a discounted price, so that we can keep the
cost low and offer our clients quality shoes worthy of their money.

Making of the Shoes:

Making of the shoes requires professionals, we can give ads in the

newspaper and get the word out that we are looking for skilled men and
are willing to pay adequately for their efforts and if their hard work pays
off there is also bonus. People doing similar jobs in this category have a
community of their own and we won’t have any difficulty hiring the
required number of people to start us off.

Management of Costs:
We will manage all costs in accordance with the range of price that we
plan to offer. Most of the stores sell shoes at 100% profit. We will
discourage this trend and will focus on prices according to the quality and
nature (formal or casual) of the shoes.
All this is discussed further in the section of pricing and consultant advice
with mathematical representation.



Page 20 of 39
We position our product in the mind of our customers through that slogan
of Ease and Comfort. It provides the customers with the feeling that they
are purchasing the right product at the right time, which ultimately
provides them with comfort. “Ease and Comfort” is a short line and it
easily sets in the mind of the customer.Product positioning is a very
crucial stage in launching the product.We take the following things under
consideration in positioning our product.


The following SWOT analysis captures the key strengths and weaknesses
within the company, and describes the opportunities and threats facing
ZAWK shoes.


• Extremely strong relationships with distributors.

• Excellent staff who are well trained and customer attentive. They
also get great discounts, increasing job satisfaction.
• An efficient, stylish retail store.
• A long term relationship with the customer and keeps the loyalty of
the customer.
• The most versatile, innovative and creative approach for the first
time especially in gents foot wear.


• The inability to provide instant gratification by having all sizes in

• Forecasting fashion is difficult but necessary to profitability.
• The struggle to build brand equity.

Page 21 of 39

• A growing segment of the market that is increasingly bothered by

having to travel to Seattle for nice shoes.
• An industry that seems immune to recessions.
• The ability to operate on lean overhead relative to competitors.
• Target market is sadar, Abpara, Commercial.They are highly rated as
customers oriented market.


• The introduction of a competitor to the Tacoma market with a similar

business model.
• Completely misjudging where fashion is headed.
• Constant delays in the shipment of product or the unavailability of
many of the advertised designs.
• The Big brand names such as Bata, hush Puppies,Service etc.

There are other shoe companies in the
market which have sufficient resources and they comprise a great portion
of market. Following are the characteristics of other companies operating
in the shoe market.

• Nike
• Reebok
• Adidas
• Bata
• Service
• China Shoes

Page 22 of 39

Comparative advantages to ZAWK Shoes:

ZAWK has a comparative advantage over these abroad owned

companies. It will provide quality shoes for the country at lower prices
and of better quality. We have emphasized more on two aspects.

1. Low Prices.
2. Quality Products.

It can be achieved by such most of our machinery would be of local

made. The essential machinery would be imported from abroad. Highly
trained staff local staff should be recruited within the country. Local raw
materials would be used in our products. Those which are of much
important in manufacturing would me imported from abroad. Our main
emphasize is the production through the productive assets of the country
and this will obviously reduce the cost of production.


Personnel Selling:

It is the direct presentation of the product to the customer, as we will do.

It is the trickiest way of selling, as the customer not only scrutinizes the
product but also its seller & the environment etc.

Where will we advertise?

One of the most important parts of an advertising campaign is its placing
and location as our target market is upper middle class and upper class.
So we will advertise ads according to their preferences.

Page 23 of 39

• Newspapers:
We will publish ads in the Fashion segment of English
newspapers like Dawn, The Nation, The News, and The Daily Times etc.
We plan to open on 28th December 2007. So in order to create sensation
and excitement amongst people, we will start giving ads by the middle of

• Billboards:
Billboards in Sadar, Blue Area, and Commercial will be ideal
for the advertisement of ZAWK.

One sample advertisement that we plan to put on a

billboard is:

In this
advertisement we
have clearly
shown that we are
The design you imagine or may be beyond your imagination. unique in our way
of thinking and
In this ad we went for simplicity and class. It is a sign of grace
that and style,
we have a lot
blended in one. These are the formal shoes and on another location
of variety. we
can go for the next design that is shown. This advertisement
should go up on
some bridge or

Page 24 of 39

This advertisement should be put on a billboard somewhere in

Commercial where there are more social events and people need more
formal shoes which also speak of class and grace.

• Radio:
Nowadays there is a big trend of listening to radio whenever
people are in car or free at home. So we will also advertise on radio
channels like FM 99, FM 106.2, and FM 100 etc.

• Television:
The most watched TV channels in Pakistan right now
include Geo TV, ARY Digital and Aaj TV. So we will give Ads on these
TV channels.

• Magazines:
The most popular magazines include Mag, Sunday
Magazines, and Economist. We continuously give attractive ads in them
to advertise our product.

Page 25 of 39




Another new concept that ZAWK will be introducing is Customized

shoes. We will be making special shoes for customers who want to design
their own shoes. This idea can be implemented in another way where
customers can explain to our designers what they want. The designers
will make sketches for them and the one that is approved by the customer
will be forwarded for final making.

This way ZAWK will be presenting an ideal opportunity for customers

who have special requirements. The customers who have odd foot size or
shape can also avail this opportunity.

Our aim in this business would be to make sure that if someone comes to
our outlet irrespective of the fact that he or she buys something or not, the
treatment that he or she gets from the sales personnel would make sure

Page 26 of 39
that the next time he or she wants to buy a pair of sandals, they’ll come
straight to us.

There would be no flying boxes, customers won’t be constantly followed

by salesmen bugging them as to what they want and if by any chance the
size they want to buy is not available the customer can order it to be made
in a weeks time.

The atmosphere would be more like that of a jeweler’s shop. The

customers ordering customized shoes would be served with refreshments.


• “ZAWK” at first will fall under the category of shopping goods but with
time and effort we will develop our product to be in the class of specialty

• When talking about the classification of the “new product”, ZAWK is

significantly different from the existing products in terms of form,
fashion and most importantly —the benefits provided.


• There must be adequate market demand:

The men of Pakistan have

become very fashion conscious in the last 5-10 years. There is a huge
market for all accessories but the prices charged are either too low or too
high. There are very few firms that offer quality service, so there is a
huge market demand for excellence in the field of accessories especially

Page 27 of 39
in foot wear. Investors should feel very comfortable in putting the money
in this project as we have done the market research ad have an excellent
and applicable plan in front of us.

• Satisfaction of key financial criteria:

The most critical question

when starting any kind of merchandise is weather we will be able to
generate suitable revenue from it or not. This question can be answered
very easily if we consider the profits generated by companies that at this
time are not offering any uniqueness and services that we will. We plan
to rule the market on the basis of individuality and quality service and we
will be able to generate profit within a very short period of time.

4.2. PRICE:
Importance of Price:
In the Economy:

A product’s price influences wages, rent, interest and profits. Price is the
basic regulator of the economic system because it influences the
allocation of factors of production, labor, land and capital. As an allocator
of resources, price determines what will be produced (supply) and who
will get the goods and services produced (demand).

In the Customer’s Mind:

Some prospective customers are interested in low prices, whereas another

segment is more interested in other factors such as service, quality, value

Page 28 of 39
and brand image. Research has shown that basically there are four
distinct categories of shoppers
1. Brand loyal (relatively uninterested in prices)
2. System beaters (prefer certain brands but try to buy them at reduced
3. Deal shoppers (driven by low prices)
4. Uninvolved (seemingly not motivated by either brands or low prices)

Price is also an important component of value. In recent years,

customers both in consumer and business markets have sought better
value in goods and services that they consume—we are focusing on that
—we will provide our customers best use of their money for that
particular product i-e shoes. We have priced our products so that the
money of the customer is valued as much as our own and they are
provided with quality products.

In the Individual Firm:

A product’s price is the main determinant of the market demand for it.
Through prices, money comes into an organization. Thus, price effects a
firm’s competitive position, revenues and net profits.

Factors affecting Price Determination:

Estimated market demand: The estimated price of a product is the

price at which a customer consciously or unconsciously values it— its
what they think the product is worth.

Page 29 of 39

Competitive reactions: In order to be successful, we have to think

about what customers perceive about the products of the competitive
companies—what in their opinion are the shortcomings of their product
and then we have to work on our products to make sure that they don’t
have the same disadvantages. We have many direct competitors i-e they
basically have the same product as ours. We have to rely on quality and
price in order to beat them. So, pricing less and delivering better has to be
the primary objective.

Other marketing mix elements: Marketing mix elements such as

nature of the product, cost and promotion etc. play a very important
factor in determination of prices.

♦ Product: Pricing depends a lot on the kind of the product. As it is a

comfort good that we are offering, so its price must be of the sort that is
comfortably afforded by our target market.

♦ Promotion: Advertising plays a very important role in the pricing

and selling of a company. We have to make the consumer sure that the
price they are paying for our shoe is the right one so, we have to rely
heavily on our promotional scheme for bringing out the unique features in
our shoes and to make sales. If promotion of our product is not good and
the customer is not even aware of the salient features and uniqueness,
then we definitely have to cut down on our prices in order to rule the
market on the basis of price rather than price and quality together.

Our main Pricing Strategies:

• Pricing will be done according to the cost i-e cost will be on “cost-plus”
basis. After considering the cost we will add an appropriate profit.

• Pricing will be done keeping in view the prices of the competition. Being
a new product we have to catch our customers with fewer prices for better

Page 30 of 39
shoes. So we will cut down costs if necessary in order to meet
competition prices.

Target Market:
Our shoes are unique and designer made so the people interested in our
product will belong to upper middle class and middle class. We will
target these segments and will place our product according to their
shopping place preferences. The possible localities to open the first shop

1. The Mall Sadar.

2. Commercial.
3. Blue Area.
4. Abpara.

We have selected The Mall Sadar as our first preference and Commercial
as the second one.

Reasons for selecting The Mall Sadar:

• It attracts more of our target market. Most of the people living in twin
cities go to that market as a part of their routine and thus we will get more
• Rent of the shop is less than that from other market.
• System of electricity and phone is much better in The Mall Sadar.
• It also has some popular restaurants near by and whenever people come
to eat usually they visit the market too as an outing. So we will be able to
sell more of our product.
• There are more opportunities for us to decorate our shop.
• The system of security is much better in Sadar.

Page 31 of 39

• There is a big cinema house in sadar which is regularly visited by so

many people.
• There are too many big shopping centers like Ghakhar, Civic Center, and
shahbaz and Niazi plaza as well.


Promotion Objectives:
• Awareness: At awareness stage the seller’s task is to let the buyers
know that the product or brand exists. Since we are a totally new brand,
our biggest objective is to create consciousness and make people realize
that we are in the market too. We are in the market to provide our
customers the innovative and versatile foot wear ever made.

• Knowledge: Knowledge goes beyond awareness to learn about a

product’s features. Once we have created awareness that we are in the
market, we have to give our target market information about why we are
unique and why they should come to us for purchasing shoes.

• Liking: Liking refers to how the market feels about a product.

Promotion can be used to move a knowledgeable audience from being
indifferent to liking a brand. We will base the liking part of our
promotional campaign on the bases that we have affordable prices for
designer and unique shoes; we care about our customers and provide
them with a great environment for purchasing our merchandise.

• Preference: Creating preferences involves distinguishing among

brands. The most difficult task faced by us in the advertising is this stage,
where we have to make people prefer our shoes to other established
brands such as Service, Comfort, and Steps etc. We will achieve this
target through hard work and dedication. We will focus on our strengths

Page 32 of 39
and make our target market aware of the advantages that we have over
other brands.

• Conviction: Conviction entails the actual decision or commitment to purchase.

The promotional objective here is to increase the strength of the buyers need. ZAWK
will achieve this objective by providing quality merchandise to its customers and by
treating them cordially and giving each client special attention according to their
needs and wants. As mentioned above, the atmosphere of the shop will be very
different from that of an ordinary shoe Shop and refreshments will also be offered. So
the customers will come to us because of our quality goods and service.

• Purchase: Purchase can be delayed or postponed indefinitely, even for

the customers who are convinced that they should buy a product. That’s
why we have preferred the location of The Mall Sadar where people
come for outing and it’s not out of the way for most of our target market.
This will create a certainty of our sales.

Key Factors that will be Enhanced in Promotion:

1. Unique designer shoes.
2. Affordable prices.
3. Convenient location.
4. Good atmosphere of the shop.
5. Care for our customers.

Company aims to provide its shoe initially on wholesalers and retailers’
outlets. In future it aims to provide shoe on its own franchise and outlets.
There we will provide excellent services, a nice environment, and our
sales persons would be there to guide and to give you what you desire.
Our product line diversifies to fulfil the needs of all ages, classes and
people. We will surely provide discount to our regular customers and

Page 33 of 39


Our main pricing objective will be sales oriented i-e main pricing goals
would be to:

Increase sales volume:

As we plan to grow fast we have to adopt the strategy of increasing sales
volume. We have to discourage competitors so we first have to
concentrate on getting customers and setting up a market share and all
this could be done when we campaign effectively for incrementing sales.

Maintain or increase market share:

As a new comer in the market we have to concentrate on

developing a healthy market share and maintaining it. Many companies
go in loss within their 2nd year of opening because they are unable to
maintain their market share. We will avoid this by innovation and
schemes (it is discussed in more detail under the heading of future plans).


Price will be in accordance with the price lining strategy i-e it will be
different for different shoes. It will also benefit the customer, as it will
simplify the buying decision.


Page 34 of 39


(For the first three months)

Revenues (Rs.)
Sales 10,000,00
Manufacturing Cost 3,000,00
Shop fittings 145,000
Refreshments 70,000
Employee training 40,000
Advertising and promotion 175,000
Bills 30,000
Gross Profit: 240,000
Tax (15%) (150,000)
NET PROFIT (90,000)

Why this Income Statement is a Profitable


• In this income statement there is a huge expense of shop fittings which

once installed are permanent. It is a kind of investment because if at some
future time we have to vacate the shop the present price of the fittings
will be included in the offer of purchase or rent.

Page 35 of 39

• A huge chunk of our funds has gone into advertising. At the initial stages
advertising is required to create awareness and to make people intrigued.
Once we have established our clientele and have gained our market share
the expense on the promotion will decrease and we will be able to
generate more profit.

• There is also the expense of employee training which is also once, so the
expense will not be present in the income statement of the next 6 months.

• The sales estimation is the least one, maybe after seeing the quality of our
merchandise the sales will be more than expected.

• We have only suffered a loss of Rs 60,000. Whereas most of the shops

that have been operating for 2-3 years are suffering much worse losses
than us, so we are in a way more beneficial than them.

• The wages of the designer will be a percentage of the profit, so we need

not to worry about that.


(For the next three months)

Page 36 of 39

Revenues (Rs.)
Sales 3,900,000
Manufacturing Cost 15,00,000
Refreshments 85,000
Wages and salaries 3,00,000
Carriage inwards 66,000
Advertising and promotion 4,35,000
Bills 3,00,000
Gross Profit: 1,214,000
Tax (15%) (5,85,000)
Profit after Tax
Designer’s wages (20%) (125,800)
NET PROFIT 503,200

Main Differences from the Income Statement of

the First Quarter:
• The expenses have reduced dramatically and we have been able to
generate a sizeable profit.

• The expense on advertising has reduced as predicted above.

• Our sales would also have increased owing to the fact that people are
aware of our product.

• We have been able to actually pay the designer this time.

• It gives us a prospective that we will be able to improve further in the

coming days.

Page 37 of 39


Assets Amou Liabilities+ Amou

nt Capital nt
(Rs.) (Rs.)
Cash in Hand 5,00,000 Account Payable 80,000
Cash at Bank 3,00,000 Salaries Payable 45,000
Account 3,75,000 Notes Payable 1,21,800
Notes 75,000 Capital 70,00,000
Plant & 2,500,000 Net Profit 5,03,200
Building 3,000,000
Furniture & 1,000,000
Total 7,750,000 Total 7,750,000

Page 38 of 39


Page 39 of 39