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c Marketing Management

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Marketing Plan: PURE COLA
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G ntents
1 Preface ............................................................................................................................................. 6
2 Business Plan ................................................................................................................................... 7
2.1 Company Summary .................................................................................................................. 7
2.2 Company Ownership ................................................................................................................ 7
2.3 Start-up Summary .................................................................................................................... 7
2.4 Our Mission ............................................................................................................................. 7
2.5 Our Vision ............................................................................................................................... 7
2.6 Goals and Objectives ................................................................................................................ 8
2.7 Business Philosophy ................................................................................................................. 8
2.8 Industry Situation ..................................................................................................................... 8
2.9 Company strengths ................................................................................................................... 8
3 Marketing Plan ................................................................................................................................ 9
3.1 Situational Analysis .................................................................................................................. 9
3.2 Company Analysis ................................................................................................................... 9
3.3 Marketing Research and customer analysis ............................................................................... 9
ü  ................................................................................................................................ 10
3.4 Market Demographics ............................................................................................................ 20
3.5 Industry Analysis ................................................................................................................... 20
3.6 SWOT analysis ...................................................................................................................... 20
3.6.1 STRENGTHS:................................................................................................................ 20
3.6.2 WEAKNESSES:............................................................................................................. 21
3.6.3 OPPORTUNITIES: ........................................................................................................ 21
4 Target market and Segmentation .................................................................................................... 22
4.1 Segmentation strategy of Pure Cola ........................................................................................ 22
4.1.1 Demographic Segmentation ............................................................................................ 22
4.1.2 Psychographic Segmentation .......................................................................................... 23
5 Marketing Mix of our product ........................................................................................................ 23
5.1 Product ................................................................................................................................... 23
5.2 Price ....................................................................................................................................... 24
5.3 Promotion .............................................................................................................................. 24
5.4 Place ...................................................................................................................................... 24
5.5 Distribution Channels ............................................................................................................. 24

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6 Pricing Strategies and Programs ..................................................................................................... 25


6.1 Which factors we used to switch the customers? ..................................................................... 25
6.2 How we develop pricing strategy? .......................................................................................... 25
6.3 How we implement ³Price Cues´? .......................................................................................... 25
6.3.1 When we use price Cues? ............................................................................................... 25
6.4 How we set the price? ............................................................................................................. 26
6.5 How we analyze competitors Cost, price, and offers? .............................................................. 26
6.6 Selecting a Price Method ........................................................................................................ 26
7 Creating Brand Equity.................................................................................................................... 27
7.1 Why launch new brand in market? .......................................................................................... 27
7.2 How we create brand equity in market? .................................................................................. 27
7.3 Brands Elements..................................................................................................................... 27
7.4 Leveraging Secondary Association ......................................................................................... 27
7.5 How we decided for brand extension?..................................................................................... 28
8 Advertisement decisions of Pure Cola ............................................................................................ 28
8.1 ADVERTISEMENT OBJECTIVE ......................................................................................... 28
8.2 Setting of Advertising Budget ................................................................................................. 28
8.3 Advertisement Media ............................................................................................................. 28
9 Financials ...................................................................................................................................... 29
9.1 Advertisement Budget ............................................................................................................ 29
9.2 ROI on Advertizing Budget .................................................................................................... 30
9.3 Monthly Sale forecast for TWO years ..................................................................................... 31
9.4 Pro Forma Income Statement .................................................................................................. 32
10 Bibliography .............................................................................................................................. 33
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{ 

Since this is our last session in UMT so we are deeply indebted to our teachers for providing us such a
great platform of learning especially we are extremely grateful to ½    
for providing us the requisite information and guidance trough out the MSBF.

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   { your kind support and immense knowledge gave us inspiration to work hard
and according to the degree requirements. Without your generosity of sprit, it would not have been
possible for us to carry our studies in MSBF. This is our last session in University and it would be apt
saying that all the steps having a ting of prosperous acquisition are directed in your guidance. You are a
light house who provided the light to make us trade on the path of our upcoming career, keeping pace
with the developing world. We extend our deepest thanks for your scholarly endeavor to teach us.

Thank you sir for being our Resource person, we promise that we will try our level best to be like you²
smart, interesting, engaging, positive, confident, yet unpretentious, well-informed and easy to understand,
thinking with your heart as well as your head with sensitivity and insight.

God bless UMT, God Bless you

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Students of MSBF

University of Management and Technology

 

Resource Person: Marketing Management

University of Management and Technology

Respected Sir,

Here is the project on the Marketing Management. In this project our target is to launch a product
& implement all market segments on it. Our product name is ³Pure Cola´. This is basically a soft
drink/ carbonated soft drink (CSD). In this project we explain that how we launch the product,
marketing activities, promos, brand & branding, pricing, identify the competitor, sales
promotions & advertisement. These are all market segments & tools which we implement on our
product.

This project was very interesting. We enjoyed a lot during the work on this project. We are
thankful to you that you assign us such an interesting project.

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Pure cola (PVT) limited will sell soft drinks (Pure cola, Pure Lemon, Pure Orange and Pure Diet)
as its primary products in addition to Juices for 10 different flavors.

Pure (PVT) Limited has been around for many years, beginning with the business of Rice
production then enters in biscuits, and now planning to enter in soft drink business with a name
Pure Cola (PVT) Limited

Because Pure (PVT) Limited has already delivering value added products in Rice, and Biscuits
to its valued customers so we are sure that due to delivering valued and quality products with an
excellent customer care Pure cola will get a good market share and develop taste in his customers
very quickly.

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Pure cola will be known for selling Soft drinks with 4 different flavored syrups to children and
other all age people in Pakistan

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Pure cola will be owned its two Directors as Pure Cola (PVT) Limited

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Start-up costs will be approximately Rs 100 Million which will include facility construction
including inventory, mandatory company registration fee, and other expenses associated with
opening this business. To start business Debt to equity ratio will be 70:30

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Our purpose is to refresh people by delivering value added and unique products

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-c People: Be a great place to work where people are inspired to be the best they can be.
-c Portfolio: Portfolio of quality beverages brands that anticipate and safety people¶s
desires.
-c Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
-c Profit: Maximize long- term return to share owners while being mindful of our overall
responsibilities.
-c Productivity: Be a highly effective, lean and fast moving product.

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Pure cola endeavor to achieve the highest level of customer satisfaction in relation to products
provided by the company. This is further achieved by ensuring that the highest quality standards
are adopted on all levels of manufacturing and production, for guaranteed 100% customer
protection when using the product.

Furthermore the company is committed to maintaining good employment opportunities and


working conditions for all employees, to build a reputable organization culture. This concerns
promotional and sales staff, management and the like. The primary financial goal of pure cola
product is to gain 10% market share over the first 5 years

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oney plays vital role for every person living in the world. Our business Philosophy is to
delivering best quality and uniqueness to our customers by spending fewer prices as other
companies providing same products in market.

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Through our Research and development department we come to know that due to global
changing in weather and culture market size of soft drink industry is increasing continuously.

In Pakistan there are mainly 6 companies in soft drink business. So due to growing demand and
fewer companies we can get good market share in industry in very little time by providing value
added and unique taste

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Since we are in the business of FMCG since 10 years and specifically in the business of beverage
industry from last 3 years

Economies of scope are the main strength of our business that helps us to start and get success in
soft drink business, and we have unique organizational culture, committed employee efficient
distribution network

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Our company is new to market; we are new into soft drink industry. We are committed to make a
difference in the soft drink industry of Pakistan which our unique products with high quality
ingredients, reasonable price and ease of availability

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Our COMPANY will operate from Pure Cola (PVT) Limited 10 Km Multan roads Lahore;

We will not hire top level positions our existing Heads will take extra charge and get extra
benefits and perks.

We will supply our product to major retailers, wholesalers and distributors who will distribute
our product to the end consumers.

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For the launching of our product, we conduct a survey through a questionnaire for check the
market potential and analyze customer & consumer demand.

In today¶s society, people are looking to lead better, healthier lives, Pure cola seeing this trend
will produce, diet drinks that have the same great taste as their regular drinks while still being
low fat or low calorie drinks, such as diet Pure cola, or Diet Pure Lemon .

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Current Facilities & Preferences

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Our objective of this question is to determine the target areas. Where the people use soft drinks
more frequently

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The research finding are shows 67% people use soft drink in the residential areas & 33% people
are those who use soft drinks in public areas.

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-c a) Coca Cola
-c b) Pepsi
-c c) Amrat Cola
-c d) Others__________

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Check the consumers most like brand in the market.

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The research shows that 48% people use Coca Cola, 27% people use Pepsi, 10% people use
Amrat cola, & 15% people use other brands.

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Check the pack size which people most like to use.

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The research shows that 40% people use 250ml RGB (REGULAR GLASS BOTTLE) bottle,
10% people use 330ml Can, 30% people use 400ml bottle, & 30% people use 500ml pet.

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The objective of this question is that we want to check how many people use soft drinks in
morning, afternoon, evening, & night.

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The findings shows that 20% people use soft drinks in morning, 40% people use in after noon in
lunch time, 10% people use before evening, 10% people use in night, & 20% people use in late
night.

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The objective is that we want to check that how many people use daily, weekly, twice in a week,
& monthly.

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The result shows that 46% people use soft drink on daily bases, 27% are use once in a week,
12.3% people use twice in a week, 9.5% people use once in a month & 5.2% people use once in
a year.

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We check how much people spent on soft drinks.

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The research shows that 33% people want to spent less than Rs.10/-, 41% people want to spent
B/W Rs.10 to Rs.13/- , 20% people want to spent Rs.13 to rs.15/- & 6% people want spent more
than rs.15/-.

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The purpose is that how many people use new company soft drinks. This helps us to launch our
products.

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The results shows that 39% people want to use new company soft drinks, 47% people does not
want to use & 14% people sometimes want to use new company soft drinks.

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The purpose of this question is that we want to check the availability of soft drink. How far the
drinks are available from consumer. Purpose is that we available our product on door step of
consumer.

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The result shows that 51% people live less than half mile of stores, 33% people live half to two
miles of stores, & 16% people live over two miles.

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The objective is that we want to check how many people go on stores for shopping daily bases.

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The result shows that 47% people go on store for daily bases, 22% people go twice in a week, &
17% people go once in a week, & 14% people go once in a month.

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The objective of this question is that we want to check the age groups that are most likely to use
the soft drink.

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The result shows 41% of users are teen agers, 34% people are B/W 18 to 30 years old, 18%
peoples are 30 to 50 years old, & 7% peoples are over 50 years.

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 c Market Dem graphics


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Ëc POPULATION 176,242,949 (July, 2009 EST.)


Ëc GROWTH RATE 1.828%
Ëc BIRTH RATE   27.74 births/1,000 population
Ëc DEATH RATE: 8 deaths/ 1,000 population
Ëc NET MIGRATION RATE  1.24 migrant(s) / 1,000 population
Ëc 0-14 YEARS   37.2% ( male: 33,739,547 / female: 31,868, 065)
Ëc 15-64 YEARS   58.6% (male: 52, 849, 607 / female: 50, 378, 198)
Ëc 65 YEARS AND OVER  4.2% (male: 3,475,927/female: 3,931,605) 

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Ëc POPULATION   176,242,949 (July, 2009 EST.)
Ëc CHILDREN    37.2% (65,607,612)
Ëc ADULTS    62.8% (110,680,572)
Ëc CHILDREN EQUITY  60% (14,643,619)
Ëc ADULT EQUITY   40% (27,802,960)
Ëc TOTAL TARGET MARKET 42,446,579

c {.$
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats inside a company, project, or a business venture. It involves
identifying the internal and external factors that are favorable/ unfavorable for business to
succeed.

  c STRENGTHS:
 
Our competitors are others beverages companies such as Gourmet & Amrat.
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We get to know our customers, one by one. Our direct sales force maintains a relationship.
 
We develop new products in market as such our competitors have good market worth.

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  c *EAKNESSES:
  
The competitor¶s stores have better economics. Their per-unit costs of selling are quite low. They
aren't offering what we offer in terms of knowledgeable selling, but their cost per square foot and
per dollar of sales are much lower.
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Our competitors can afford low prices, discounting & promos to achieve the sale volume.
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Take one look at their full page advertising, in color, in the Sunday paper. We can't match them
easily

  c RTUNITIES:
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Our beverages are in small business, and even in home offices. At the time of starting our aim is
to achieve local areas market as TGS, PSV, LGS, FFR, LFS, CR & etc.
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As our target market needs more service, our competitors are less likely than ever to provide it.
Their business model doesn't include service, just selling the products because they are well
reputed brands.

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There will be volume buying and selling of our product as our competitors, by all accounts does
not need support, training, and connectivity services, etc. As people think of the products those
terms, they think they need our service orientation less.
    
Large price oriented stores such as International modern trade, Cash & carry¶s & Modern
General Stores. Our competitors have huge advertisements in the newspaper for customers about
their products.
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c Target market and Segmentati n

This is the process of evaluating each market segment¶s attractiveness and selecting one or more
segments to enter.
After evaluating different segments, the company must now decide which and how many
segments it will target, because buyers have unique needs and wants, a seller could potentially
view each buyer as a separate target market. Ideally, then, a seller might design a separate
marketing program for each buyer. There are three types of market segments.

-c Undifferentiated marketing. (Mass Marketing)


-c Differentiated marketing. (Segmented Marketing)
-c Concentrated marketing. (Segmented Marketing, small segment)

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Pure Cola will serves its products using mass marketing technique, which obviously falls in
undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are
minor factors on which we can say that the Pure cola will segments its products and then targets
the customers somehow. These factors are as follows.

Pure segments more in urban and suburban areas as compare to rural. 35 % population resides in
urban areas and 65% population lives in rural areas in Pakistan. Pure Cola is focusing on urban
areas as people there are more inclined towards such beverage while people in rural areas are
more inclined drinking lassi and desi drinks.

  c Dem graphic Segmentati n 

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Pakistan is considered to be a young country i.e. average age of Pakistani population is less than
38 years. Thus targeting young generation can be a beneficial marketing strategy for soft drink
companies. In fact this is the case, all the major brands like Coca Cola, Pepsi, and Gourmet
mainly target younger generation in Pakistan.
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Pure cola will target both genders with its wide variety of drinks. This market is relatively large
and is open to both genders, thereby allowing greater product diversification.
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Pure cola will introduce its economy pack, and that¶s how they focus family and groups.
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Pure Cola will segment different income levels by packaging. Like for small income people it
has small returnable glass bottle, for middle people it has non returnable bottle and for higher
income people it has coke tin.

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  c sych graphic Segmentati n


All psychographics variables the social class, lifestyle, occupation, level of education and
personality, Pure Cola will segments everyone, but again it is their packaging which is different
for different consumers.

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A company has to make promotional strategies keeping in view the customer level. If the
percentage of education is high in a country then through advertisements people can be made
well aware of their product and can convey their message easily. Promotion and education has a
direct relationship.

[c Marketing Mix  r pr dct


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There are 4 P¶s of marketing mix which we implement on our products.
-c Product
-c Price
-c Promotion
-c Place

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-c Pure cola,
-c Pure lemon,
-c Pure range
-c Pure Diet

Ëc ü
 
We maintain quality for all consumers.

Ëc , 
We design bottle in RGB (REGULAR GLASS BOTTLE).

Ëc è  
Our brand name is ³pure Cola´

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It will provide in the pack of 24 bottles.

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It will provide in 250 ml RGB (REGULAR GLASS BOTTLE) pack.

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Price of our product is Rs.12/- per bottle.

Ëc ,
 
We will provide discount as per market conditions.

Ëc  
We provide allowances to our retail & wholesaler customers.

Ëc ½ ½ 2 


 
Payment receives in cash bases and credit will be given to only Wholesalers

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We will get or purchase shelves in big departmental stores and display our products in those shelves in
that style which show our product clearer and more attractive for the consumers.

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Sale promotion officer of the Pure Cola positions their freezers and their products in eye-
catching positions.
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Company will also do sponsorships with different college and school¶s cafes and
sponsors their sports events and other extra curriculum activities for getting market share.

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Place is a major factor. We sale our product in general market. In these market includes super
stores, wholesalers, cash N carries, super market, & departmental stores. We will cover these
places through advertisement e.g. print media & electronic media.

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Pure cola will makes two types of selling
Ëc Direct selling
Ëc Indirect selling
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In direct selling we will supply our products in shops by using our own transports. In this
type of selling we will get more profit margins.
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Our whole sellers and agencies are there to cover all area. Because it is very difficult for
us to cover all area of Pakistan by our own so we have so many whole sellers and agencies to
assure their customers for availability of Pure Cola products.

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c ricing Strategies and r grams

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Customers switching is a big problem. We will use these factors which help us to retrieve our
customers.
-c Pricing
-c Inconvenience
-c Core service
-c Matching Competition activities
-c Resolve Ethical problems

!c  #    -


We will include all of our direct & indirect expenses, taxes, premium, salaries & wages and all
others miscellaneous expenses. These are all the factors which help us to determine the price.

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We implement price cues to our business on these stores where the customers frequently move
for buying.
Price Cues factors are these which we implement:-
A)c Left to right pricing
B)c Odd number discount perception

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We use left to right price cues on high volume high image accounts e.g. cash & carry. Left to
right price system is (Rs.11 vs. Rs.12).

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We use the odd number discounting system such as discount of Rs.2/- per bottle.

  c *hen we se price Ges?

We use price cues when


A)c Customers purchase item infrequently
B)c Customers are new


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We use left to right price system when the customers purchase is infrequently.

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We used odd number discounting perception system on price cues.

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We use these methods to determine the prices

A)cSelect the price Objective


B)cDetermine demand
C)cEstimate cost
D)cAnalyze competitor price mix
E)c Select pricing method
F)c Select final price

We use two ways to set the prices

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Our main objective are to determine the prices are survival in market, maximum profit, maximum
market share, maximum market skimming, & products quality leadership.

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We set the price by determine the demand in market.

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For analyzing the competitor price we should consider the nearest competitor price. For this we used
these methods.

-c We evaluate competitor customers worth


-c Valuate the compotator price
-c Check the compotators offers to customers
After evaluate the compotator, than we decide whether it can charge more, the same, or less than the
compotator.

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After evaluate the competitor price. Calculate our price we use this method

Unit Cost = Variable Cost+ Fixed Cost/Units ready for sales

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'c Greating Brand Eqity 

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We launch new brand in market because we will change the taste of customers & consumers
according their needs. Now in 21st century new generation wants something new. So as per the
new generation demand we introduce this brand that will attract this generation. This is because
the brand is equity of a business. So, we want to build good market share, brand equity & high
return through this brand.

'!c    5


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Brand equity is the value of any brand. We create a different brand name, which develop our
brand equity in the market. For this purpose we develop a brand symbol which identify to
consumer that is our brand & in other activities we develop a URL, symbol, logos, packaging,
signage, & flags on shop, which identify that pure cola is a brand.

' c è0 
We develop these types of brands elements which will

-c Memorable
-c Meaningful
-c Likable
-c Adaptable

'c #{    


In the process of leveraging secondary association, we will build our brand equity from different
activities such as

-c   
Through concerts we engage new generation. New generation is just like a master hand to develop
brand equity.

-c  
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CP is a big factor to develop brand equity. We use here pull strategy, which is use to pull the
consumer. We introduce buy six bottles get one free.

-c ,
 
We use discounting strategy for both our customers and consumer. We say to our customer/
consumers, if you purchase full packs of 12 bottles we will give you the discount of Rs.2/- per bottle
which is Rs.24/- per case.

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If pure cola will be creates good reputation in market or a valuable asset by introducing a host of new
products under their strongest brand name than we will be decide to introduce in more packs such as:

-c 500ml
-c 1.5ml
-c 2.25ml

c Advertisement decisi ns  re G a


The field of advertisement is one area where Pure Cola will always emphasize.

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Creating awareness about company and its Products

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We have to spend more in start but later ½ure cola sets its advertisement budget on the basis of
competitor based budgeting. Major competitor of Pure Cola is gourmet and as Pure realizes that
gourmet has increased its advertising budget, straight away pure cola will plan to do the same so
that they can compete in advertising department as well.

 c #  


Pure Cola Company will advertise its products mainly through electronic media that includes
Television, Radio and Internet as well. Moreover leading newspapers of Pakistan are also the
targeted by Pure for advertising. So we can say that Pure will not only uses electronic but print
media for advertisement as well.

Pure Cola Company will use different mediums c


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