MARKETING MANAGEMENT

Term Project

Sir Faisal K. Qureshi

Wednesday, 3:00pm – 6:00pm

Submitted by:
M. Zubair (7971)
Nida Zafar (7980)
M. Umer (8028)
M. Arsalan (7989)
Mehla (8117)
Ahsan Bham (8106)

Wednesday, December 16, 2009

Letter of Authorization
Wednesday, December 16, 2009

Dear Reader:

As authorized by our teacher Sir Faisal K. Qureshi, we decided to introduce a

new product named BRIO Energy Chocolate Bar.

This report contains complete information about the product and the

company’s strategy to achieve success. Also included in this report is a

detailed analysis of the company’s position in the market and the products it

will be manufacturing. All information is presented in a very simple manner,

for the interest of a common reader.

This report consists of genuine and complete source of information on both

the companies. You may contact us for further queries or comment us on our

work.

Sincerely,

M. Zubair (7971)
Nida Zafar (7980)
M. Umer (8028)
M. Arsalan (7989)
Mehla (8117)
Ahsan Bham (8106)

ii
Letter Of Transmittal
Wednesday, December 16, 2009

Sir Faisal K. Qureshi

Faculty Member, Marketing Management
Iqra University, Defence View
Karachi

Dear Mr. Qureshi:

We are submitting here our term report on the launching of a new product
named BRIO Energy Chocolate Bar. Initial pages of this report also contain
the brief information about company’s background and the product it is
offering.

All the information provided in the report is comprehensively discussed with

a satisfactory background of valid facts and figures.

If there are any questions or queries you have about the material presented in
this report, we will be extremely glad to appear before you.

Sincerely,

M. Zubair (7971)
Nida Zafar (7980)
M. Umer (8028)
M. Arsalan (7989)
Mehla (8117)
Ahsan Bham (8106)

iii
Acknowledgement
Dear Reader:

With the blessings of ALLAH the almighty, the report enclosed has reached

its stage of final completion. This report is a result of exhaustive and much

enthusiastic work. We extend our heartiest thanks to Sir Faisal K. Qureshi,

for conducting this course and making it interesting and knowledgeable,

without her efforts and co-operation the report would not have been possible.

We also thank for her confidence and trust she had in us, importance of which

can in no way be under estimated.

We are equally grateful to Iqra University for providing us the opportunities

to pursue our endeavor. We also appreciate the students of Iqra University,

who assisted us in providing us all the necessary information and feedback

that we required for completing this task.

We hope readers of this report can complement the depth of the study and

efforts put into it.

Thanking You

Sincerely,

M. Zubair (7971)
Nida Zafar (7980)
M. Umer (8028)
M. Arsalan (7989)
Mehla (8117)
Ahsan Bham (8106)

iv
Table of Contents
1. Introduction..................................................................................................................1

1.1. Brand Name...........................................................................................................3

1.2. Logo.......................................................................................................................3

2. Mission Statement........................................................................................................4

2.1. Vision....................................................................................................................4

3. SWOT Analysis...........................................................................................................6

3.1. Strengths................................................................................................................6

3.2. Weaknesses............................................................................................................7

3.3. Opportunities.........................................................................................................8

3.4. Threats...................................................................................................................8

4. Ansoff’s Product-Market Expansion Grid.................................................................10

5. Competitors Analysis.................................................................................................11

5.1. Direct Competitors..............................................................................................11

5.2. Indirect Competitors............................................................................................11

5.3. Market Share of Competitors..............................................................................12

5.4. Competitive Advantage.......................................................................................13

5.5. Perceptual Map....................................................................................................14

6. Target Market.............................................................................................................15

6.1. Age:.....................................................................................................................15

6.2. Use:......................................................................................................................15

6.3. Usage pattern:......................................................................................................15

6.4. Geographic Location:..........................................................................................15

v
7. Marketing Mix...........................................................................................................16

7.1. Product:................................................................................................................16

7.2. Place (Distribution):............................................................................................16

7.3. Price:....................................................................................................................17

7.4. Promotion:...........................................................................................................18

7.5. Promotional Mix:.................................................................................................19

8. Promotional Budget...................................................................................................21

8.1. Media allocation:.................................................................................................21

8.2. Media Schedule Charts........................................................................................22

9. Financial Projections..................................................................................................25

9.1. Estimated Demand...............................................................................................25

9.2. Company Sales Forecast......................................................................................25

10. Conclusion...............................................................................................................27

Table of Figure

Figure 1: Ansoff's Product-Market Expansion Grid..........................................................10

Figure 2: Market share of Competitors..............................................................................12

Figure 3: Media allocation based on sales volume............................................................21

Figure 4: TV Channels on which Ads will be televised.....................................................22

Figure 5: Radio Channels on which Ads will be aired.......................................................23

Figure 6: Advertisement hoardings in different areas........................................................23

vi
Figure 7: Magazines and Newspapers through which promotion will be done.................24

Executive Summary
Our product is classified as “new-to-the-world” product as its competitors may include both

the company’s manufacturing chocolate bars and also that manufacturing energy-providing

edibles but our product is only one of its kinds to be both a confectionary item and an energy-

booster.

Our target market consists of youth and professional adults because our product is what helps

them to take back their energy-zapped afternoons after their school or college and offices.

Initially, we have allocated a large promotional budget understanding the need to make the

target consumers aware of the brand and product itself. Keeping in mind that our target

market belongs to Pakistan, we have designed our advertising campaign to convey our

concept efficiently as well as effectively.

We do not expect to make huge profits in the first year but we are sure that if we successfully

convey our concept and make our product stable in the market, enormous profits follow in the

long-run.

vii
 Page |1

1. Introduction

“BRIO” is a new confectionery product from its company that is ideally located in SITE

Karachi, the largest industrial estate of Pakistan. BRIO Company is a small-scale

manufacturer catering to high-priced segment. It is established to manufacture high quality

confectionery products and establish a strong brand name in the chocolate industry in

Pakistan.

We have the most sophisticated process technology to produce one of the best quality

chocolate in the market today. We realize the importance of efficiency and creativity to

achieve growth in a competitive environment and keeping this in mind we have introduced

“BRIO” – an energy chocolate bar that is a major source of revitalizing energy among our

target consumers. The slogan is ‘GET MORE GO’ due to its high energy content. With BRIO

you can give your energy a crunchy edge and enjoy every bite full of quality chocolate.

Although the market for such products is small, but by developing a clear concept of an

interesting product like BRIO it is predicted that there is a fair chance for profits to be earned.

Such products are usually not successful in our market because firstly, the needs of the

customers are not identified or catered in most efficient way. The consumers need to be made

aware of the benefits and use of energy revitalizing products such as “Brio” properly so that

the concept is not misstated. Secondly, they are usually not directed to the right target market

segment. So through our marketing efforts and advertising programs/strategies we aim to

achieve these objectives with BRIO’S launch in the market.

 Page |2

We have decided to allocate a total budget of Rs. 15M, which is our own personal

investments and borrowing a loan of Rs. 7.75M. Also, our company is a private limited

company which includes six entrepreneurs whose inputs are as follows:

Mr. Muhammad Umer: Rs. 3M

Ms. Nida Zafar: Rs. 3M

Mr. Muhammad Zubair: Rs. 2.5M

Mr. Muhammad Arsalan Sheikh: Rs. 2.5M

Ms. Mehlan Rs. 2M

Mr. Ahsan Bham: Rs. 2M

Capital investment of Land & Building, worth Rs. 12.5M, for setting up the plant was already

bought by one of the entrepreneurs so no rent has to be paid. Machinery costs Rs. 6M,

promotions were allocated a budget of Rs. 2M ATL and BTL activities. Research and

development expense was Rs. 0.5M. A stand-by generator costing Rs. 1.5M has also been

installed keeping in view the current electricity crisis. Rest is miscellaneous including labor,

management, transport and distribution. Along with adequate amount left aside for working

capital and future investments. Further details have been discussed in the concluding part of

the report alongside the demand and sales forecast for the next three years with a profitability

analysis.

The company also aims to establish a diversified portfolio of products in future if ‘BRIO’

(energy) chocolate bar is a success.

 Page |3

1.1. Brand Name

We are a newly established company launching our product that is a chocolate bar named as

“BRIO”. The Italian word Brio means “Energy”. We have selected our brand name “Brio” as

our product is not only an ordinary chocolate bar but an “energy-booster chocolate bar”. Our

new energy-booster chocolate bar satisfies two needs states, that is, Hunger and Energy. This

quality is what makes our product different from all other available alternatives.

1.2. Logo
 Page |4

2. Mission Statement

Our mission statement is dedicated to provide the best chocolate (energy) bar to its

consumers that would keep them filled with energy throughout the day, giving them a unique

experience of our quality service provided to them by anticipating and meeting their needs.

“BRIO” aims to bring a change in consumer taste and lifestyle preferences.

It is our intension, as a business to provide quality confectionery that enhances customer

loyalty and our brand image.

2.1. Vision

Within a year BRIO wants to attain a significant market share and profits by providing its

customers one of the best energy chocolate bars in Pakistan through its marketing efforts and

creative advertising programs.

We plan to follow a group of policies that are designed to maintain a good reputation/brand

image in the market and to ensure that the company operates in a way that meets or exceeds

the requirements of our customers, all marketing operations and has an overall beneficial

impact on the environment.

Our mission statement emphasizes that with the launch of BRIO we should fulfill few

objectives to achieve success quickly:

 Creating more awareness among customers about food or drinks

that revitalizes energy in their bodies

 Explain clearly the uses/ benefits of BRIO

 Ensure availability of BRIO in all its target segments

 Maintain ethical values and avoiding ethical dilemmas

 Page |5

 Continuing to provide good quality and Integrity in order to

encourage repurchases which would lead to maintaining brand

equity in future.

 Fulfill social responsibility with honesty

Our company policy is inclined to achieve all these objectives and work in accordance with

our mission statement.

 Page |6

3. SWOT Analysis

3.1. Strengths

3.1.1. The unique selling proposition:

Ingredients of BRIO such as milk chocolate, vitaminB1, peanuts and almonds deliciously

blend in together are to give a mouthwatering affect on the consumers in addition to the fact

that it’s a healthy snack which gives an energy boost. Hence the products itself is distinct and

will tempt the consumers to buy.

3.1.2. The organized distribution network:

BRIO’s another strength is its organized distribution network. We primarily distribute our

product through wholesalers and retailers. We also distribute our product to canteens and

cafeterias of almost all schools, colleges and universities that fall in our geographic location.

Our qualified sales person makes it possible for BRIO to be available at the right place and in

the right time. Our distribution network makes sure that there is no reported product shortage

and there is adequate supply when demanded.

3.1.3. The trained and skillful personnel:

Our company has been successful in recruiting qualified and experienced personnel who

eventually serves as a great strength. The staff being able to coordinate well with each other,

meeting deadlines and accomplish tasks efficiently and effectively adds up o the company’s

overall success.
 Page |7

3.1.4. Adequate Capital:

Although BRIO is a newly established company but it does have enough capital investment

and cash flow for the budgets that will enable us to achieve success in every possible way.

3.2. Weaknesses

3.2.1. Restricted target market:

Our target market is SEC A and SEC B which will not allow us to cater to SEC C which has

a high proportion of teenagers and children throughout the country.

3.2.2. Pricing strategy:

Our company uses a penetration pricing strategy that is, setting lower prices to increase

demand for the product. As we have priced a standard bar of BRIO of Rs.45 and a small-size

bar for Rs. 25 and strong energy providing ingredients are costly thus it may not enable us to

reap high profits in the beginning unless its bulk buying.

3.2.3. Geographically limited market:

Our company caters t the limited market of Pakistan. Products such as chocolates and energy

boosters are seen to be more successful in the international markets. Pakistan being a

developing country still comparatively has a smaller market. Also people, from our target

segment, hesitate in accepting and consuming any such product especially if it is local. They

doubt the quality because of the home-country image they have.

 Page |8

3.3. Opportunities

3.3.1. No direct competition:

Our biggest opportunity is that none of the competitors has yet positioned a product similar to

BRIO that is an energy-boosting chocolate, so far. It is going to be a new concept with a “Get

More GO” theme and hence opening new doors to success.

3.3.2. Attracting various total consumers consumer base:

Though our target market is youth and professional adults, we assume and foresee many

middle aged working people eventually buying BRIO as their complementing mean for

energy too because people who work are usually out of time to have their proper meals and

needs energy to complete their tasks.

3.4. Threats

3.4.1. Hurdles in gaining market share:

With present well established competitors such as Cadbury and Candyland in the

confectionery industry it is not that easy to not only penetrate the market but also to attract

the consumers and hold the consumer attention in the longer run. Tactful promoting idea will

have to be applied all along our marketing campaign which could be costly.

3.4.2. Political situation:

Any sort of law and order situation in the country and political instability like the recent

threats and associated strikes related to them especially in Karachi as our Manufacturing

factory is situated here, could halt the production and the functioning of the business.
 Page |9

3.4.3. Substitutes:

Emergence of substitutes could turn the tables around for us. In this rapid pace of

development any other competitor in the Industry such as Candyland could immediately

come up with an identical product such as BRIO. Also, present substitutes that are the

energy-boosting products (such as: various energy drinks) available have already gained

consumers trust, the possibility of substitution is relatively higher in the long run.
 P a g e | 10

4. Ansoff’s Product-Market Expansion Grid

Present New
Products Products

Present Market Product

Markets Penetration Development

New Market
Markets Development Diversification

Figure 1: Ansoff's Product-Market Expansion Grid

Marketing strategy we are going to use in relation to the Ansoff’s grid is the diversification

strategy.

The market is new for the company and no such product exists in the market of Pakistan. So

for innovation of a new product in the new market the whole process is to be followed from

the idea generation and screening, testing and commercialization. Depending on exhaustive

promotional strategies with a greater focus on attracting consumer, company will need to

create achievable objectives which will strengthen consumer base and eventually a stable

market for future products of the company as well.

 P a g e | 11

5. Competitors Analysis

The market for confectionery in Pakistan increased in 2000-2005, at an average annual rate of

8.5%. The leading company in the market in 2005 was Kidco manufacturers. The second-

largest player was Candyland with Cadbury Schweppes in the third place.

Then, market for Confectionery in Pakistan increased in 2002-2007, at an average growing

annual rate of 7.3%. The leading company in the market, in 2007, was Candyland which is

still continuing to progress at a rapid rate. The second-largest player was Kidco

Manufacturers with Cadbury Schweppes plc in third place.

Currently in the unique market where BRIO is being placed, there is no direct competition

present in the local industry. However, imported products exist in the market fortunately such

stocks are kept on demand basis and selective premium stores charging a premium price.

Preliminarily our analysis considers Candyland’s ‘Sonnet’ chocolate bar as our main

competitor. Company aims to capture its market completely because as sonnet was launched,

the bar did not properly cater to the consumers needs by explaining the uses and benefits of

an energy chocolate bar clearly nor were they able to capture a large market.

5.1. Direct Competitors

 Cadbury Chocolate Bars

 Candyland’s Sonnet Bar

5.2. Indirect Competitors

 Redbull energy drink

 Rooh afza
 P a g e | 12

 Energile

5.3. Market Share of Competitors

Market Share
Others
Candyland 18%
28%

Rooh Afza
22%

Cadbury
32%

Figure 2: Market share of Competitors

From the figure illustrated above we can infer that the highest market share is of Cadbury

mainly, due to their diversified portfolio. Candyland has the second largest market share,

although it also has a wide variety of confectionery items but they are not so compatible with

Cadbury when it comes to quality and popularity. Rooh Afza on the other hand has the third

largest market share and this was mainly achieved from the popular dairy milk chocolate that

was sold out to even the lower class and lower-middle class consumer segment at a

comparatively lower price prevailing in the industry, making it more attractive product.

Otherwise it is a foreign merger and is not exactly a very direct competition for BRIO. Rest

of the confectionery market comprises of competitors that are international and other local

Pakistani firms that are still striving hard to achieve a major competitive share in the market.
 P a g e | 13

5.4. Competitive Advantage

The Competitive advantage of BRIO is its Unique Selling Preposition (USP) as an “energy

booster chocolate bar.” Additionally, our product can have a highlighting attribute of serving

as a snack bar. Pakistan's market has so far not come across many unique confectionary

items. Our main direct competitor is Candyland's Sonnet Bar which failed to convince the

consumers and could not achieve success due to lack of persuasive skills of the marketing

team. The TVC of Sonnet chocolate bar even though showed a cricket match scenario in

which a player after having Sonnet chocolate bar becomes totally energetic but the message

was vague because the product itself was not positioned as an energy provider.

We have positioned BRIO as the ultimate energy providing Chocolate Bar. Our marketing

campaign is entirely based on this theme from Radio, TVC, Print ad etc. Our below the line

marketing also completely promotes BRIO as a chocolate energy bar. Our marketing

campaign is based on the concept of 'Super Heroes'. We have portrayed in the promotions

that a normal individual after eating the BRIO Bar turns into a Super Hero, irrespective of the

gender, color etc. As our target market is mainly kids and teenagers hence the idea is likely to

be well accepted and successful.

As discussed earlier, our major competitors are only the international products which are not

commonly available in the local market. Therefore, our target market has been observed to

consume international chocolate bars more than the local ones. In that case selected

population, Snickers is considered to be taken by many young individuals for instant energy;

however, Snickers is not positioned as an energy bar. Making our product as a high quality

energy snack we intend to capture greater market share where we might be able to attract

greater volume of consumer who will prefer buying our product. Thus we are to market

BRIO to meet the local as well as international competition, thus a considerable amount was
 P a g e | 14

set aside for Marketing budgets initially. In addition we have portrayed and promoted Brio

keeping in mind both direct and indirect competitors. Thus our TVC and print ad even though

shows a chocolate bar but give an effect of heroic energy seen by the indirect competitors

such as Red Bull earlier before. Therefore our competitive advantage lies of our unique skill

of covering all the aspects of competition but urging the consumer to buy the product.

5.5. Perceptual Map

Energy Provider

BRIO

RED BULL

Dairy Milk
ENERGILE

SONNET
ROHAFZA

Drink Chocolate

Jubilee

NOW

Non-Energy Provider
 P a g e | 15

6. Target Market

6.1. Age:

Teenagers (College Students) 13 – to – 19

Adult (University Students) 20 – to – 26

Professionals & Sportsmen 27 – to – 45

6.2. Use:

BRIO is used as a snack. It is not in any case a meal replacement. To meet consumer needs

and help millions of Pakistanis take back their energy-zapped afternoons, BRIO is

proclaiming the post-lunch, pre-dinner hour between 2:00pm and 3:00pm which is the ‘Re-

Power Hour’.

6.3. Usage pattern:

Our target consumers use it to boost their energy level and also to dilute the hunger between

their meal intervals. It is primarily used as a snack bar chocolate.

6.4. Geographic Location:

BRIO, initially plans to cater the three main cities of Pakistan:

City Places
Defence Housing Authority, Clifton, Gulshan-e-
Karachi Iqbal (All private institution, i.e. School, Colleges,
Universities)
Defence Housing Authority, Model Town,
Lahore Gulberg, (All private institution, i.e. School,
Colleges, Universities)
Islamabad Defence Housing Authority, Sector F-6, 7 ,8 ,10,
11, Korangi Town, Wapda Town (All private
 P a g e | 16

institution, i.e. School, Colleges, Universities)

7. Marketing Mix

7.1. Product:

Our product is a chocolate bar that not only provides taste but also boosts up energy level.

New BRIO Energy-booster Bar satisfies Two Need States, Hunger and Energy.

7.1.1. Product Ingredients:

Milk Chocolate (20% - sugar, cocoa butter, full milk powder, cocoa, emulsifier: lecithin),

peanuts, sugar, salt, guarana, dextrose, glucose syrup, invert sugar syrup, caramel (4.3 % -

sugar, humectants: glycerol, dietary fiber).

7.1.2. Benefits Ingredients:

Ingredients used in the product are all imported and have several benefits. The first benefit

ingredient is “Peanuts”. Peanuts are high in fiber and provide energy according to a scientific

research. It is packed full of roasted peanuts caramel and milk chocolate. Secondly, B-

vitamins added to the great tasting nougat provides consumers lasting energy and hunger

satisfaction. Thirdly, herbal plant powder known as “Guarana” is included in the ingredient

which has no side effects and is an energy booster. The plant origins from Portuguese, made

popular by Brazilians.

7.2. Place (Distribution):

Initially, we are catering to two cities of Pakistan namely:

R Karachi
 P a g e | 17

R Lahore

R Islamabad

Because these cities happen to have large portion of SEC A and SEC B as compared to the

other cities and also the population is more educated and aware to adopt or accept such

product easily.

7.2.1. Distribution Route:

a) Manufacturer-Wholesaler-Retailer-Consumer:
We manufacture the product and sell it in bulks to the wholesalers that in turn re-sell it to the
retailers. Retailers then sell the product in desired quantities (bundle or individual pieces) to
the final buyers.

b) Manufacturer-Retailer-Consumer
We also sell the manufactured product directly to the retailers who re-sell it to the final
buyers.

c) Manufacturer-Consumer
The ways in which we directly distribute the product to the final buyers are through
campaigns and stalls at universities, colleges shopping malls like Liberty Mall and Park
Towers along with stadiums and parks.

7.3. Price:

7.3.1. Competitors’ products pricelist:

d) Direct competitors:
Half-Size Full-Size
(Rs.) (Rs.)
Candyland’s Sonnet Bar 5 10
Candyland’s Now 15
Mitchells Jubilee 5 10
Cadbury Chocolate Bar 25
e) Indirect Competitors:
Standard
(Rs.)
Red bull (Can) 100
 P a g e | 18

Roof Afza (Bottle) 65

Energile (Packet) 75
 P a g e | 19

7.3.2. Cost Distribution:

f) Full Size Bar:

(Price Rs. 45)

(Rs.)
Raw Material 28
Labor 4
Profit Margin 5.2
Retail Price + Sales Tax (21%) (37.2 + 7.8) =
45
g) Half Size Bar:
(Price Rs. 25)

(Rs.)
Raw Material 16
Labor 2
Profit Margin 2.7
Retail Price + Sales Tax (21%) (20.7 + 2.6) =
25

7.4. Promotion:

7.4.1. Short-term Promotional Objectives:

Our first short term promotional objective is to create Brand Awareness among our target

market for that will make it easier for them to accept and actually buy our product and gain

market share. If people are aware of your brand, it makes you stable in the market too.

Secondly, attracting a large consumer base is another short term goal to achieve. The more

the consumer knows about your product the more is the urge to try and then eventually buy.

As the demand will increase, the market share or market for the product will increase.

Lastly, to attain the Consumer’s Attention. In the cluster of products available, promotions

are essential to attract consumer’s attention and differentiate your product from other

available substitutes.
 P a g e | 20

7.4.2. Long term Promotional Objectives:

The main long-term objective of any promotional activity is to Increase Sales of the product.

In the same way, our promotional activities are guided to increase sales of our product.

Promotions are designed in ways to encourage sales that ultimately add up to Profit

Maximization. It is the goal of any company to achieve and so is ours.

After successfully attracting it is of utmost importance to hold the consumer’s attention. Our

promotional activities make sure that our target consumer remembers our product and can

recall it easily when making a buying decision.

As consumers remember and recall your product, your Brand Equity builds up. We object to

attain Brand Equity to enhance our customer loyalty which in future will help us to charge a

higher-price for our product and not just gain but also retain our market share in case of fierce

competition.

As stated above, Increase in Market Share will help us to stand severe market competition &

also to eventually become the market leaders.

7.5. Promotional Mix:

We adopted the following promotional mix:

7.5.1. Below-the-line Activities:

We have had our campaigns going on in different famous market places where we perceived

to have found and directly interacted with our target consumers, that is, kids and teenagers

from SEC A and SEC B. We had or stalls set up at The Forum and Park Towers where we

made our target consumer taste the product and give their feedback both on the quality and

the concept.
 P a g e | 21

Secondly, the campaigns that we carried out in various schools and colleges included

activities among kids and teenagers requiring energy (such as races etc.) and then rewarding

them with BRIO merchandise.

Both of the activities based on our overall marketing theme and our product’s concept.

7.5.2. Above-the-line Activities:

We paid a considerable amount of attention towards designing our above-the-line activities.

These activities include an introductory promo creating an appeal among the viewers and

listeners. These types of activities will lure the consumer in bonding with the product.

We used TVCs, print media (Newspaper, Posters etc.) and radio advertisements. These

medium of communication with the customer will guarantee a higher demand of the product

and will also create awareness among them as well. It will also be helpful to anticipate what

is being expected and what necessary steps are needed to be taken for a more favorable

outcome.

Celebrities’ representation is also being planned to give the product a better image. National

heroes such as Cricket players are expected to be a part of such a campaign.

 P a g e | 22

8. Promotional Budget

8.1. Media allocation:

Other Print
20% 17%

Radio
5%

Televsion
58%

Figure 3: Media allocation based on sales volume

 P a g e | 23

8.2. Media Schedule Charts

8.2.1. Media selection: Television

the Musik MTV

12% 14%

GEO
Geo Super 12%
19%

HBO
17%
Aag
21% Wikkid
5%

Figure 4: TV Channels on which Ads will be televised

We have selected the channels such as MTV, THE MUSIK, Aag, HBO, Geo Super, etc.

because these channels are famous among our Youth (teenagers) which is also our target

market. WIKKID, Aag, and The MUSIK serves our large age-bracket, that is, teenagers from

12 yrs – almost 23 yrs. Our target audience from 24 yrs – 35 yrs watches and like our rest of

the selected channels, that is, Geo, Geo Super, and HBO.
 P a g e | 24

8.2.2. Media selection: Radio

Fm91 Fm96
35% 14%

Fm 89
51%

Figure 5: Radio Channels on which Ads will be aired

We have selected radio stations such as FM91, FM89 and FM96 which are youth based

stations. These channels represent the generation X, which mostly consists our target market.

RJ’s also have a great fan following; therefore, listeners are also influenced with them.

8.2.3. Media selection: Billboards

Others
7%
Gulshan-e-Iqbal
15% Shara-e-Faisal
36%
36%

Clifton
42%
42%

Figure 6: Advertisement hoardings in different areas

 P a g e | 25

8.2.4. Media selection: Print

YOUNG NATION
3%

DAWN
97%

Figure 7: Magazines and Newspapers through which promotion will be done

The YOUNG NATION is a magazine for teenagers it’s a weekly magazine our advertisement

is more likely to reach our target audience via this magazine. We are also advertising in

DAWN as it has a higher circulation rate as compared to other English language newspapers.
 P a g e | 26

9. Financial Projections

Based on the market research carried out by the company, suitable estimation of demand and

necessary financial projections has been done. Necessary data is provided in the annexure to

support this information. Financial evaluation, based on projected sales volume and necessary

cost taken into account, shows that the project is a profitable venture.

Working Capital of Rs. 2.75M has been employed with a cash balance of Rs. 0.28M and a

12% growth rate of increase in yearly projected revenues. The company comes in a tax

bracket of 35%. The analysis is based on a 3-years venture, the scenario represents that the

project will be liquidated after its tenure and all assets will be disposed.

After 3-years, if the project seems feasible to continue, owners of the company will have to

make decision of restructuring. It might even include resolutions related to creating a

portfolio and public ownership as well.

9.1. Estimated Demand

The demand of the product won’t be completely reflected in the company’s sales forecast in

the initial years. As there will be an initiation in the production process, some discrepancies

are expected therefore demand might not be efficiently met due to several reasons which will

also be tried to overcome. As the production level will rise in the coming years of operations,

demands will also rise gradually if everything goes as per planned.

9.2. Company Sales Forecast

In the initial year of business the annual sales revenue forecast is expected to be .64M units,

with a Price per unit of Rs. 30, it aggregates a Net Revenue of Rs. 19.2M. With an expected

sales growth of 16% annually the sales volume in units will be raised up to a million units in
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the end of third-year. These estimates are taken based on the research that has been carried

out by the sales team. Keeping in mind the potential consumer base for the product and the

frequency of use these figures have been derived.

Cash Flows statement based on the company’s sales forecast has been provided in the

annexure with a detailed chronological pattern. Profit earned through the annual sales

recorded, will be allocated to pay off debt and allocate the increase in the working capital

based on the increase in annual sales forecast.

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10. Conclusion

For generating this report, our team efficiently utilized as a guideline, the much informative

concept and skills of the Marketing Management course in order to achieve the goal of the

task assigned to us. This incorporated coming together as a group and firstly deciding on

what type of business venture should be undertaken, and then deciding on the type of

ownership for it. A thorough market need analysis was then done so as to study the different

customer behaviors and their preferences regarding the proposed service which would be

offered to a certain market segment. Competitors too, were scrutinized carefully and a

location to launch the product at was selected, based on both qualitative and quantitative

determinants. Then, responsibilities within the organizational hierarchy were decided upon

and it was seen to that the required inventory and financial resources are properly listed so as

to prevent any miscommunication with the respective suppliers. Also, an efficient pricing

strategy assisted in calculating and organizing the financial requirements of the business.

We believe that within a short time span, ‘BRIO chocolate energy bar’, although initially a

small-sized enterprise is sure to reap in delightful profits. Once the product attains its desired

position in the market, we plan to expand our portfolio both geographically as well as into

new categories of product such as energy drinks, energy biscuits as well as energy products

for old age. And by the time competitors do think of applying this idea, we believe that we

would have captured a loyal target market, by providing highest of quality and results, finally

actually launching the idea into the market and opening up ways for its bright future.
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Annexure