Refulgent Group:

Submitted By,
Abaid-ul-Rehman
Kiran Noor

5004
5030

Submitted To,
Mr. Farooq Jamal

Department of Management Sciences

National Textile University
Faisalabad

TABLE OF CONTENT

Executive Summary

06

Business Plan

07

Product & Services

08

Market Research

11

Current Market Situation

13

Marketing Segmentation

13

Competitive Review

15

Marketing Plan

17

Marketing Strategy

19

Pricing

25

Pricing Approach

26

Pricing Objective

27

Adv & Sales Promotions

29

Manufacturing & Operations

31

Action Program

31

S.W.O.T Analysis

33

Division of Recourses

35

Budgeting

36

Milestone

37
3

 Reference

38

To
OUR BELOVED
PARENTS
Whose prayers, sympathy,
affection and guidance are
always with us all the time.

COMPANY PROFILE

Owners:

Abaid Ul Rehman & Kiran Noor

Name of Business
& Address:

Elegant shoes (pvt) Limited

Small Estate Industry Area, Faisalabad.

Form of Business:

Private Limited Company

Statement of Financing
Needed:

Rs.10 million

Product Name:

ELEGANT SHOES

Business Operation:

Full time venture,9:00 a.m. to 11:00 p.m.

Business Description:

Supplier of quality shoes

Target Market:

Faisalabad.

E-mail:

elegantshoes@gmail.com

Employees:

30

EXECUTIVE SUMMARY
Feelings dont need words, but expression is obligation!!! This plan was
something imperative for us. The factual reason for the development of this plan
was to bring the magnificence of our ancient civilization and culture, back, which
not only had a rich heritage but was even artistic. Our aim is not only to provide
quality top changeable shoes with ceaseless style but to promote our own
culture, our tradition our customs and to fill the colors in the way of wearing. The
range we aspire to offer encompass to provide a variety of shoes i.e. chapels &
and sandals.
We have providing the service of customization to our customers, different styles
from the culture of our four provinces. We have designing those shoes according
to their choice. Shoes have available in both forms i.e. chapel and sandals.
Shoes have different sizes as per desire of customers.
Name of the shoes have elegant shoes as name and our slogan designed to
move you. We have only one supplier for all our purchasing which is known in
marketing terminology as System Selling. Our Customers wont have to
explore the sphere out of city. Weve preplanned the promotion campaign and the
budget well follow. For promotion and advertising, we have use brochures and
cable advertisements. Operations and management plan is also defined. As
name is on outlet and small scale business, so its management and Operation
plan are not much complicated. Research is very important before starting any
business, so weve also conducted a survey through which we came to know the
demand level, and some most important variables. The main idea behind our
business plan was to provide ease and convenience to female because it is
observed that this is considered an important factor and after results of survey it
is also proven right that women give much preference to the factor of
convenience while shopping. We have developed a comprehensive finance plan
for the project, which is one of the main elements for success of the ventures. It
has started with capital of Rs.10 millions.
In the start we have focus on big city of the Pakistan Faisalabad for its launching
with our own outlets with manufacturing unit in Faisalabad as it is known as the
Manchester of the Pakistan and is more attractive for foreigner. In the long run
we have produced our product in Faisalabad.
We have use value based pricing strategy to capture the market. We have use
different medium for promotion like, Electronic and Print Media.
Our entrepreneurial team is new to this market but have very strong skill and
knowledge about the process of the product.
The industry has potential to be profitable within a short period. No guarantees
are expressed or implied regarding the success of the venture described in this
business plan.

BUSINESS PLAN
GENERAL DESCRIPTION OF BUSINESS
The business we aimed to initiate is basically ladies shoes with changeable tops.
These types of shoes are not available in the current market. As we know that
Faisalabad is considered as the Manchester of Faisalabad, thats why we are
planning to start our business operations here. We have start with a
manufacturing unit at Small state industrial area Faisalabad. Outlets are going to
provide traditional ladies shoes. These are the first chain of retail stores where
customers have a variety in tops changeable shoes, Shoes have also be
available in two types i.e. Chapel & sandals. We plan to open our outlets at busy
centers at D-ground & Kohinoor plaza in Faisalabad. These markets have also
potential for this business; specifically these items are not available in market. In
the existing location, we should develop a themed dcor related to the purely
Eastern and Pakistani culture. Females of all age groups will definitely feel
attraction because outlets have variety of these two items according to all age
groups. All the females whether they are from any background have feel comfort
and ease to visit the store due to the presence of sales girls. We are going to
give some additional offer for our customers to have interchangeable shoes, after
sale service like free repairing of shoes.

PRODUCT & SERVICES

NAME OF BUSINESS:
The name of our business is ELEGANT SHOES which have represent that we
are providing our customers with such products which have according to our
traditional culture and also increase the grace of person with economy and style.
OUR VISION:
To give the variety of footwear for the women of modern era, that is affordable
accessible and reliable.
MISSION STATEMENT:
Elegant shoes aim to become recognized as the world's leading manufacturer
of high performance footwear, by conducting our internal and external
relationships according to three core values- Team work, Total Customer
Satisfaction and Integrity.
Elegant shoes set apart from its competitors by a number of distinct points
of variance. They are:
COMMITMENT TO DOMESTIC MANUFACTURING:
In a global economy where quality components come from all over the world,
Elegant shoes manufacture 100 % of its shoes in the Pakistan With a high-quality
labor force, unique modular teams that are continually challenged to offer
creative alternatives to foreign competition, and the confidence to be different,
Elegant shoes have able to survive and thrive, and take a leadership position in
an industry that has sent most of its production overseas.
EXTENSIVE WIDTH-SIZING:
Elegant shoes recognize that feet come in all shapes and sizes, and that the
shoes that fit better, perform better. Therefore, the company should offers all inline styles in up to five different widths, from narrow 36 (6) to 40 (10).

TECHNOLOGICAL INNOVATION:
Elegant shoes recognize that no one technology meets the needs of every
individual. That is why we have developed the elegant shoes Suspension System
- a system of technologically advanced components that address a variety of foot
needs. The company's have continued commitment to the enhancement of the
Suspension System positioned elegant shoes as an industry leader in
technological innovation.
ENDORSED BY NO ONE:
Elegant shoes have support grassroots modals, and Team Elegant shoes stands
as testimony to that. However, the company has not use high-profile modals to
sell shoes, as we strongly believe that the real "heroes" of the brand are the
products, not endorsers. Rather than line the pockets of celebrity endorsers,
elegant shoes have to focus on research and design, manufacturing.
GOALS AND POTENTIALS OF THE BUSINESS:
Like every business, we have definitely certain goals which we want to achieve to
make our business successful.
To earn maximum profit.
To provide the customers comfort while shopping like no one should face
inconvenience regarding sales persons as sales girls have there to deal with the
customers.
To provide ease and variety to the customers so that they can buy according to
their choice.
To achieve maximum market share.
To provide shoes with a mixture of traditional and modern styles.
VALUES OF THE BUSINESS:
Our business is stand on some particular values that include:
We have considered our customer to be always right and our customers are
respectable for us.
Employees have paid in time and no discrimination have made.
We have tried to provide friendly environment to our customers and also
employees.
Fair price have charge.
Uniqueness of Product or Service:

MAINLY DEALING:
Shoes have available in two varieties:
Sandal
Chapel

LOGO:

SLOGAN:
Change at every Step
She walks in beauty
Worn by the world's most precious feet
LOCATION:
In the start we are premises for both our manufacturing and also for our outlets
for a short period of time and then we will purchase our own manufacturing
premises ands out lets.
INSURANCE:
We have introduced new term in this business as Product insurance, which made
us distinct from other manufactures. Product insurance means that if any harm
occurs to the customer due to our product we should pay all the cost of her
treatment.

10

MARKETING RESEARCH& ANALYSIS

AFFECT OF SHOES ON YOUR PERSONALITY

1.

Name of the respondent:

2.

What is your age?

a). Less than 10 years

_______________________

b) 10-15 years

c) 15-20 years

d) Above 20
3. Are you satisfied with the quality and cost of currently available shoe
brands?

4.

a) Strongly Agree

b) Agree

c) Somewhat agree

d) Disagree

e) strongly disagree

If yes, why are you satisfied with current show brand?

Factors

Strongly
Agree

Agree

Somewhat Disagree

Strongly
Agree

Prices
Quality
Attractive
Advertisement
Any other
5.

How much shoes you purchase in Two months?

a). One

b) Two

c) More than two

11

6.

Do you think shoes affect any bodys personality?

a) Yes b) No

7.

8.

Are you satisfied with the existing price of shoes?

a) Strongly Agree

b) Agree

d) Disagree

e) strongly disagree

c) Somewhat agree

Are you satisfied with the advertising campaign of your current

available brand?
a) Yes b) No

9.

c) Any other

c) Any other

Would you like to buy elegant shoes from elegant shoe store?
a) Yes b) No

c) Any other

10. Would you like to have one sole with different changeable tops at
affordable cost and better quality?
a) Yes b) No
11.

c) Any other

In which season you purchase the shoes most?

a) Summer b) Winter

12.

Income of the people per Month?

a)
b)
c)

Rs 5,000 to Rs 10,000
Rs 10,000 to Rs 15,000
Rs 15,000 to Rs 20,000

12

CURRENT MARKET SITUATION

Whenever we are talking about the shoes, the first thing comes into mind, that
shoes are not stylish for ladies ,the current marketing situation of shoes does not
remain comfortable and stylish because different types of shoes are available in
market. Our shoes have a very different style that is not available in the market.
These shoes will provide high level of relaxation and satisfaction to gain market
share in this dynamic environment, our company must carefully target specific
segment with features that deliver value by each customer.
MARKET HIGHLIGHT:
The Pakistani shoes industry remains sustainable. The annual sales of shoes are
increasing very vastly. It is because every one wants to go out to the market
because every one wants to wear out new stylish shoes.
MARKET REVIEW:
In Pakistan different shoe companies are providing their product like ECS, Stylo
and Comely, but our company will provide unique style of ladies shoes. Our
shoes consist of two parts the sole and the top (upper) separately. Such shoes
are not available in the market.

MARKET SEGMENTATION
MARKET SEGMENTATION:
First of all we have launched our product only in big city of Pakistan Faisalabad.
First we made segment of this city. After making these segments we evaluate
each segment to analyze, which segment is beneficial for us. We made on below
mentioned basis.

GEOGRAPHIC
DEMOGRAPHIC
PSYCHOGRAPHIC
Behavioral

Geographic Segmentation:
In geographic segments we have decided to launch our product in Faisalabad,
we made divisions in Faisalabad d-ground & Kohinoor plaza. With this
segmentation we can easily understand the need wants and demand of the
people of Faisalabad.
Demographic Segmentation:
In demographic segmentation we have divide ladies according to their ages and
life cycle. We have divided our customer regarding to their ages as children
teenagers twenty plus, thirty plus and so on more than sixty years. But we have
analyze that ladies of twenty plus are more interested in our product

13

Age Group:
a) 5-10 years
b) 10-15 years
c) 15-20 years
d) Above 20
Gender segmentation:
We need not to make the search on gender segmentation because our product is
only for female.
Income Segmentation:
We easily made the division according to the income of the people. Through the
income segmentation we divide the people into different levels of groups
regarding their income. Such like
Rs 5,000 to Rs 10,000
Rs 10,000 to Rs 15,000
Rs 15,000 to Rs 20,000
Psychographic Segmentation:
To analyze, the psyche of ladies of Faisalabad we divide them in social classes
according to their status and personality. According to social class following are
the five types which are available Faisalabad.
Lower upper class
Upper middle class
Middle class
Lower middle class
Lower class

For making best marketing structure we set a responsible price which suits for
lower upper and upper middle class.
Behavioral Segmentation:
Behavioral segmentation divides buyers into groups, based on their Knowledge,
Attitude, Uses, or Responses to a product. We also believe like many marketers
that behavior variables are the best starting point for building the best market
segmentation. In Faisalabad we see the behaviors of the people with the help of
the questionnaire. After filling the questionnaire we easily determine the values
like Occasions, Benefits, User Status, User Rates, Loyalty, Readiness stage, and
Attitude towards the product.
Many of the people want a shoe like elegant shoes. But the problem is that no
Edible company focuses on these needs, wants, and demands of the people.

14

Competitive Review:
If we make a close look to the Edible industry then see that a lot of companies
which facilitate the people by providing such types of products. There are lot of
big and small companies which compete each other. Each and every of them
want to defeat their competitors. For this purpose they facilitate their customers
more than others. Now the problem is that we are launching a new product in the
summer season. Many of the companies launch their types of products in the
summer season. It means these companies are as a hurdle for our Sauce. For
this purpose we made a strategy discussed later in the plan.
Our Key Competitors:

15

Industry Competition
In Industry there is not only one firm or company who produce the shoes. It
means there in no monopoly but there is perfect competition. Perfect competition
means that many firms and companies are working as the competitors of each
other.
Now if we see the competitors of elegant shoes then we see the name ECS first.
Why the ECS first? In answer to this question we can say ECS is the largest
selling company of Shoes in Faisalabad. We can see that ECS made many
Shoes like chapel sandal pumpies etc.
On the other hand if we see the other types of companies like STYLO also made
the good sale. These companies also produce same like ECS but there is a little
different variety.
It means we have to face lot of problems at the time of launching of elegant
shoes. There is already much competition and we also be with them in near
future after introducing elegant shoes.

Competitive analysis
The Competitive framework of Sauces and their companies is
Framework
Competitive
Company &
Brand Name

Product
Name

STYLO

Chapel

650

Sandal

850

Chapel

700

Sandal

950

ECS

Price in Rs

Overall
Market
Share
%26

%42

16

MARKET PLAN
OBJECTIVES AND ISSUES:
Every Company has objectives and issues regarding their product. Different
companies have different objectives like some companies want to increase their
sale, some want to maximize their profits, and some want to increase their
market share value etc
We also have some objectives and issues according to our product. For this
purpose we made a three year strategy in which we define our objectives clearly.
Our objectives are divided into market terms. These objectives are.
MARKET OBJECTIVES:1ST YEAR OBJECTIVES:
In 1st year we want to capture 20% market share value. For this purpose we are
promoting our sales. Our satiations made forecasting and said that we will
capture the required level of market share after promoting the sales volume.
2ND YEAR OBJECTIVES:
We will capture the 35% of market share value of market industry in the 2nd year.
For this purpose we will launch 1 new product having same brand. We will follow
this strategy if we get 20% share value of footwear market in the 1st year
otherwise we will change our strategy. We will start work on it after launching.
3RD YEAR OBJECTIVES:
We want to capture 60% of Footwear market share value in 3rd year. It is
compulsory for us to increase our sales by launching new products in the same
brand, to capture the required level of market share.
In 3rd year we will completely change our strategy. We will launch Boots in the
winter season. It might be the best way to achieve the required level of market
share.
SALES OBJECTIVES:
As we already discussed in the market objectives that we have increase sales
year to year. We cannot tell perfectly that how much sales could be made within
our strategic year but our target is 5 millions.
PROFIT OBJECTIVES:
We are committed to earn 30% profit on sales in 1st year. For this purpose we
will reduce our cost and maximized our profit. Our company will commit to attain
our objectives and goals in defined time period. All the objectives and goals are
supposed to be a great challenge for us.

17

Key Issues
Market Competition
There is a sound competition in Shoes market. It is very difficult to entre into the
market with a new product in this lot of competition between STYLO and ECS. It
is a great issue for us.
Sound Brand Images of Our Competitors:
Each and everyone know about our competitor`s brand. People have lot of
awareness of their brands. Another great issue for us is that they have strong
brand image as compared to Elegant Shoes. It means we have to face a lot of
problems while entering in the market.
Heavy Promotion of Competitors:
Our competitors already made heavy promotion of their brands and products. To
compete our competitors we have to make a heavy promotion otherwise we fail
to achieve our objectives.
Permanent Customers:
Our competitors already have lot of customers. Those customers who believe in
our competitors and a good position in their mind. It is because our competitors
provide them the things that they want.

18

Marketing Strategy
Our marketing strategy is based on these three elements
Segmentation.
Targeting.
Positioning.
These three elements are defined in detail below
Segmentation:
We segmented the market on the following basis
Evaluating Market Segments:Segment Size and Growth:Segment Structural Attractiveness:Company Objective and Resources:Level Of Competition: Substitute Product: Power Of Buyers:-

Power Of Suppliers:Evaluating Market Segments:

First of al we must evaluate the various segments and we will decide how many
and which segment we can serve best. Here we evaluate target market
segments.
Segment Size and Growth:
Before selecting any target market first we will evaluate segment size and
growth. We will first collect and analyze on current segment sales, growth rates,
and expected profit from segment. We will be interested in that segment which
have right size growth.
Segment Structural Attractiveness:
We also need to examine major structural factors that affect long run segment
attractiveness. A segment may be less attractive if it already contains many
strong and aggressive competitors. The existence of many actual or potential
substitute products may limit prices and profit that can be earned from that
segment. The relative power of buyers also affects attractiveness.

19

Company Objectives and Resources:

After evaluating segment size, growth and attractiveness we will evaluate
company objectives and resources. Some attractive segments may be dismissed
quickly because they did not match with company long run objectives or
company may lack of skills and resources needed to succeed in attractive
segment. We will access that our objective may fulfill in this segment or not. Our
resources will meet the requirements of the segment or not.
Level of Competition:
We will evaluate the level of competition in the segment. Competition may be
less or more in the segment. There may be pure competition, monopolistic
competition, oligopolistic competition, or pure monopoly in the segment.
Substitute Products:
We will evaluate the substitute products in the market regarding our product.
There may be some substitute products in the segment which affect the demand
of our product.
Power of Buyers:
We will also evaluate the power of buyers in the segment. We will also access
the per capita income of our buyers rather they can purchase our products or not.
Powerful Suppliers:
In this we will evaluate the suppliers in segment that they are powerful or not.

20

Targeting
After evaluating different segments, now we will must decide which and how
segments we will target.
A target market will consist of buyers who share common needs or
characteristics that we will decide to serve.
Undifferentiated Marketing:
We will not select undifferentiated marketing because we will not enter in the
market with one offer for all customers. In undifferentiated marketing the
difficulties arises in developing a product or brand that will satisfy all consumers.
The companies which select mass marketing often face trouble competing with
more focused firms that do a better job of satisfying the needs of specific
segment and niches. Due to this we will not select undifferentiated or Mass
marketing.
Differentiated Marketing:
Using differentiated marketing strategy we will decide to target several market
segments and designs separate offer for each.
By offering product and marketing variations to segments, we will hope for higher
sales and a stronger position within each segment. We will develop stronger
position within several segments which will create more total sales than
undifferentiated marketing across all segments. We will satisfy the needs of each
segment according to their requirements and wants.
In differentiated marketing the cost of business also increases. It is so much
expensive to produce goods according to need of an individual segment. The
promotion costs also increases to give aware about product to segments
separately. But we are committed to achieve our market objective and especially
we want customer satisfaction. For this purpose we will select differentiated
marketing.
Concentrated Marketing:
We will not select concentrated marketing because we have so enough
resources to meet the needs of an individual segment. Through selecting
concentrated marketing segment we will not achieve our objectives.

21

Local Marketing:
We also select Local Marketing to satisfy the needs and wants of local customers
groups, cities, neighborhoods, and even specific stores. We will do Local
Marketing with differentiated marketing.

Considerations when Choosing Target Market Strategy.

Considerations include

Company Resources
The degree of product variability
Product life cycle stage
Market variability
Competitors marketing strategies

Choosing a Differentiation and Positioning Strategy

Differentiation Tools:
Differentiation is a set of meaningful differences to distinguish the company
offering from competitors offerings. Our brand will be a specialized Industry for
the Edible market products items with the state of the art technology. It has huge
plant for processing and manufacturing the Edible market products like Shoes,
Our brand will emphasize on the following tools:

1. Product Differentiation:
Form:
Our product is shoes which is used for wearing in normal life. In our promotion
we will focus on product differentiation. Through our promotion we will tell our
customers main differences of our product from our competitors. We have a shoe
in the market which is a multi purpose.
Performance Quality:
We made the best quality product its because it is a new product and also for
getting more and more response, and to gain the best level of goodwill in
Faisalabad. It is a valuable shoes for females living in Faisalabad. The standard
of shoes is quiet match with the high level of Shoes
Durability:

22

Our product is completely durable but we give our customer 4 month warranty. .

2. Service Differentiation:
Customer Consulting:
We will arrange a customer consulting program which will be telecast on some
well known TV channel. Through this program we consult with our customer and
ask some questions regarding our product. We will try to solve the problems of
our customers.

3. Personnel Differentiation:
Companies can gain strong competitive advantage through having better trained
people. Our Brand will have an edge over its competitors in the personnel
differentiation because its personnel have competence to serve its customers,
are friendly, respectful with its customers. The personnel performance is credible
because of their commitment with the customer.

Positioning Statements:
Save your moments and enjoy your moments
Make your life so easy and comfortable

Level of Positioning:
Basically there are three level of positioning through which we will position our
products in the customers minds. For positioning of our product we will use these
three levels.
1- Positioning by Attributes
2- Positioning by Benefits
3- Positioning by Values
Positioning by Attributes:We will position our product on the basis of attributes and features of our product.
We will focus on attributes and features of Elegant shoes which it contains.
Through our positioning we will try to set and fix the features of Elegant shoes in
the minds of our customers. In positioning we will focus more on the features and
attributes of our product.
Positioning by Benefits:
We will also focus on the benefits of the product when we will position our
product. Through positioning we will tell our customers how many benefits they
can get from our product. Our product has main benefit that it is a multi purpose
product which we will target in positioning of our product.
Positioning by Values:

23

We will also position our product on the basis of customer values. Like this, If you
want to look gorgeous than use Elegant shoes.
Reason:
Our product lies in FMCG category; due to this our main focus will be on two
levels, Attributes and Benefits. For FMCG, these two levels are very beneficial.
We will talk on values but little bit, because in FMCG category value is not
concerned more. FMCG category is lying in convenient goods, in this type of
goods values have not so enough weight age. Values are mostly concerned in
shopping goods and special goods. So due to this our main focus will be on two
levels Positioning by Attributes and Positioning by Benefits.

24

PRICING
Price is amount of money which we have charge from our customers in return.
FACTORS TO CONSIDER WHEN SETTING PRICE:
During setting the price we have consider these factors.
1-Internal Factors
2-External factors
1. INTERNAL FACTORS:
During setting the price we have first consider internal factors, like
Marketing objectives
Marketing mix strategies
Cost
Organizational consideration
MARKETING OBJECTIVES:
When we have set the price of our product then from internal factors we have
consider the following factors.
Survival
Current profit maximization
Market share leadership
Product quality leadership
MARKETING MIX STRATEGIES:
We have carefully coordinate price with other marketing mix elements. We have
used target costing to support product positioning strategies based on price.
COST:
During setting the price we have access the cost, variable cost, fixed cost and
total cost.
ORGANIZATIONAL CONSIDERATION:
We will created price setting department which have set the prices.
2. EXTERNAL FACTORS:
After considering the internal factors we will access the some external factors as,
1-Nature of market and demand
2-Competitive costs, prices and offers

25

3-Other environmental elements

NATURE OF MARKET AND DEMAND:
Before setting the price we have access the nature of market and demand. We
have assessed that which type of market is existing. Rather there is pure
competition, Monopolistic competition, Oligopolistic competition or pure
monopoly. After accessing these types of market then we have set our price.
We find that there is a perfect competition.
COMPETITORS COST, PRICES AND OFFERS:
We have also access the cost per unit, prices and offers of our competitors. We
have access the pricing strategies of our competitors. We have access that what
is per unit cost of our competitors and what prices they are charging from
customers. We also access the competitors offers related to price. After
accessing these factors we have set our price.
OTHER ENVIRONMENTAL ELEMENTS:
Before setting the price we access the economic condition of Pakistan. We have
also access the inflation rate in Pakistan. We have also access the market
condition like boom, recovery or recession.
We have evaluated the Govt restrictions regarding price.

PRICING APPROACH
VALUE BASED PRICING:
We have choose value base pricing, we have charge fairly low price for a high
offering. Value pricing says that the price should represent a high-value offer to
consumers. Value based pricing uses buyers perception of value, not the seller
cost as the key to pricing.
We set its target price based on the customer perceptions of the product value.
The targeted value and price then drive decisions about product and what cost
can be incurred. As a result, pricing begins with analyzing consumer needs and
value perceptions, and price is set to match consumer perceived value.
Value pricing is not a matter of simply setting lower prices on ones
products compared to competitors. A matter of re-engineering the companys
operations to become a low- cost producer without sacrificing quality, and
lowering prices significantly to attract a large number of value-conscious
customers.

26

REASON
During the past decades, marketers have noted a fundamental shift in consumer
attitude toward price and quality. Many companies have changed their pricing
approaches to bring them into line with changing economic conditions and
consumer price perceptions. More and more marketers have adopted value
based pricing strategies, offering the just right combination of quality and good
service at fair price. Due to this changing economic environment we will choose
Value Based Pricing.
Break Even:
It is the point where we will cover our total revenue and our total cost in terms of
units and volume. It can be verified by the following formula
Break Even Volume = Fixed Cost / Price Variable Cost
We will struggle to get our break even point to cover our cost in terms of units
and sales.

Our Prices schedule

Company & Brand Name Product Name
Elegant Shoes
Chapel
Elegant Shoes
Sandal

Price in Rs
500
750

Pricing Objectives
There are many general pricing objectives which include survival, current profit
maximization, market share leadership, product quality leadership and
relationship building. From these objectives we will select two pricing objectives
which are very clear
1-Market Share Leadership
2-Product Quality Leadership
Market Share Leadership
Within this price we want to capture great market share. Our product price is
reasonable. It is not too much expensive. People of middle class easily afford its
price. We set such normal price of our product because we want to capture
market share. Through this price we will capture the market share.

27

Product Quality Leadership:

We believe in quality. Within this price we will make sure the quality of our
product. We will not compromise with quality. Our product is quality based
product. We will charge from our customers by giving them superior quality. In
the market we are assured to get product quality leadership.
Reason:
Reason is that we have marketing objectives of first three years. In this objective
we mention that we want to capture high market share in first three years. So we
select the market share leadership objective.
We select the product quality leadership because we are promised to give
quality, satisfaction and value to our customer.

28

MANAGING ADVERTISING AND SALES PROMOTION

DEVELOPING AND MANAGING ADVERTISING PROGRAM:
Ads are cost effective way to disseminate message, whether to build brand
preference or to educate people. Most companies use an outside agency to help
create advertising campaigns and select and purchase media. Our company
have contract with some agencies to develop advertising campaign for Elegant
shoes. These companies have guide us what should be the next move and also
giving them feedback regarding the market and competitors. We have make
contract with these three advertising Agencies.
Star Advertising Agency
Asian Advertising Agency
Asiatic Advertising Agency
ADVERTISING OBJECTIVES
Advertising objectives can be classified according to whether their aim is to
inform, persuade, or remind.
SELECTING SPECIFIC VEHICLES
The media planner will search for the most cost effective, dominant, and frequent
vehicles within each chosen media type. The planner will have to rely on media
measurement service that will provide estimate of audience size, composition,
and media cost. Our Company is a customer oriented company; its aim is to
serve maximum number of customers. For advertising its products we will chose
advertising vehicles that are cost effective, covering large number of audience.
ELECTRONIC MEDIA
The electronic media will be only Radio and Television. In Radio we will
advertise in FM 90, FM 101, FM 89, FM 103 and Radio Pakistan. In Television
we will use PTV, Geo Television (Cable),.
PRINT MEDIA
The print media will Newspapers (Front Quarter page), i.e. Jang, The News,
Dawn, and Magazines (Quarter page) i.e., Family magazine, Khwateen Digest,
Sunday magazine.

29

DECIDING ON MEDIA TIMING

We will have to advertise Elegant shoes on TV 3 times in a day and almost 5
days a week in first three months. The ad will go on air in the prime time
broadcasting like Drama hours; it will also be advertise daily in the mid break of
KHARBANAMA. Instant Tea Pack will also be advertised in the sports matches
like Cricket Matches which are very keenly seen in our community.
ADVERTISING BUDGET
In this advance age, business cannot be successfully done without
advertisement and promotion. Advertisement and promotion are life blood of an
organization. So to make our business quite successful we will have to make
advertisement and promotion. So for this purpose we want too much budget.
REASON
We have selected these tools because these are essential for advertisement and
promotion. These are the basic tool for the advertisement. All our competitors are
using this tool for their advertisement and promotion. These tools are directly
affect on behave of customers. Customers mostly communicate with these media
channels. These tools are the source where customers get information about
new different products which are introducing in the market.
WEB SITE
Our website include brief introduction of our product its features and complete
information about the packaging and distribution channel.
www.elegantshoes.com.pk

30

MANUFACTURING AND OPERATION

We will start our business with 05 machines for TRP & PU soles and we will also
arrange machinery for sheet sole and heat machines are also required. We have
to purchase a building in which we have to install all these machines.
MANUFACTURING PROCESS
Our product will start from the designer who will cut the specs of the design and
also the sizes. We will use TRP sole for our product for style and durability. After
design of the product we will arrange upper in different style and shapes
according to the requirement of the customers. We will use heavy and reliable
glue for the sole to grip hard for 02 hours and then put that sole in front of heat
for 01 hour, so that it will make the strong grip.

Action Program:
Here we are showing the action plan which will guide us in performing our
actions
Actiities

Aug Sep

Oct

Nov

Dec

Jan

Feb

Mar

April May June

Launch
Elegant Shoes
promotion
Outlets
Sponsor
sports

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July

Explanation:
After making the plan of Elegant shoes, we will make its Action program that how
we will perform our activities. In Action Program we will implement our marketing
strategies. We will assign duties to each employee regarding his specialization.
Promotional team will start its work of promotion. Our top management will
handle each department. Our main Head office will be in Faisalabad, our CEO,s
office will be in Faisalabad.
Launching Time:
We will launch Elegant shoes in the summer season.
Promotion:
We will promote our product before launching and we will promote it whole the
year.

32

SWOT ANALYSIS OF ELEGANT SHOES

In a SWOT analysis you identify strengths, weaknesses, market opportunities for
your company, and threats to your business.
STRENGTHS:
Our quality and differentiation is our main vigor!!! Our architecture should be
another depicter of our essence to create an antique stroke well not only
provide our customers their quality demanded and designing but the
atmospherewed be the pacesetters in the city to endorse our culture and art at
this extent.
Convenient shopping facilities for women, as dealers are only females.
Availability of shoes with the blend of traditional culture and current fashion.
WEAKNESSES:

No brand name in the beginning.

We have not the product line.

We have less market share value as compared to or competitors.

General perception about shoes is that these are not very much durable.

We have less budget as compared to our competitors.

We have less technical resources.

OPPORTUNITIES:

Well have certain opportunities in the region were focusing. We may

increase our products to a long extent. There might be a long range of
children outfits, and many more things which can be made by the spare
material. Hence the demand of shoes is so sky-scraping and many striking
decorative items might be made with the traditional tinge there is further
range of home accessories that might be grappled!!! There in no any
product in the market having the features of Elegant Shoes.

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THREAT:

There is a great threat of designs, which are our main dynamism, to be

copied with a cheap material and stumpy finishing and resulting in a low
price. But imaginative intelligence doesnt fuss!!! Were creating
something spanking new each moment and our moments might not be
worn-out.

Suggestions for Weaknesses and threats:

First of all the company has to reduce its weaknesses and then move on
to the threats .There are some suggestions or some positive or negative to
reduce the burden of weaknesses and threats. These ideas or
suggestions are

First the company has to create a brand and then focus on it

by advertise more and more to get the best positioning level in the minds
of the general public. If company create a strong brand image then it is
very easy to remove the weak point

Second things are threats that our competitors are strong. They have
strong brand image. The company has to make the Quality level, Design,
Packaging, and label of Elegant shoes same like its competitors. We do
not mean to same like that but there will be a slight difference. Such like
the design of shoes have a very light difference, Packaging is of same
color, and label is with the same text type.

34

Division of Resources:

Total Investment

Fixed cost

10 million
66 lack 75 thousand

o Land + machinery

53 lack

o Fixture + maintenance + building 12 lack 55 thousand

o Staff

1 lack 20 thousand

Variable cost

Raw material

Adv. Cost

5 lack

Labor + utility bills + others

2 lack 50 thousand

22 lack 50 thousand
1.5 million

35

Budgeting
Budgets:
Expected Income Statement

Marvels & Co

Expected Income Statement

PARTICULARS

Rs

SALES expected

11950000

LESS: sales return allowances

600,000

Sales discount

179250

Net sales

11,170,750

Less Cost of merchandise sold

96, 00,000

Gross profit

1570750

Tax @ 16%

251320

Net income after tax

1319430

36

Milestones

Mile Stone

Start date

End Date

Manager

Department

Marketing

24/12/2010

24/01/2011

Abaid-ul-Rehman

Marketing

08/01/2011

18/01/2011

Kiran Noor

Marketing

07/01/2011

22/01/2011

Abaid-ul-Rehman

Marketing

12/01/2011

10/02/2011

Outside firm

Marketing

Plan
completion

Website
completion

Advertising
Campaign1

Advertising
campaign2

37

References:
Sir Farooq Jamal

(NTU Faisalabad)

Philip Kotler

(Principle Of Marketing)

Journal of Marketing
Journal of Advertisement
McKinney Quarterly
Websites:
www.mickinsey.com
www.wikipedia.com
www. ecsehsan.com
www.styloshoes.com
Survey from different people

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